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Qume reaches $1M per day; trading insights


Satoshi&Co Daily Crypto Newsletter

November 5 · Issue #245 · View online

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Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website

It took us 14 months to build a product but it took barely 3 weeks to hit $1M in daily volumes for Qume. Many many thanks to all Satoshi subscribers that signed up and have started trading. Make sure you use your affiliate links when sharing with your friends. Next stop $5M a day and top 5 globally. Do not miss out on our free week of trading this week to celebrate crossing the $1M milestone.
Just broke A MILLION in daily volume . Not too shabby for our second week ;) #Qume #BitcoinExchange #CryptoDerivatives
Also btw check out our post on why our superior index design is attracting traders from other platforms.
Trading briefs by @ShreyasChari
Bitcoin has been exceptionally volatile since our last report from Mid September. We have seen moves from 10200 to 7500 to 9400 making a total of $4600 move over a month and a half. Quite a reversal in volatility from September when we highlighted volatility compression. Daily moves are averaging 4%+ from 2.5% in Sep.
We had mentioned Bakkt or other extraneous headlines (Libra for example) could return us to a higher volatility state and that is what transpired. Sep 23rd BTC made a large down move and spent most of October working and consolidating that move.
In this move the ratio of top 100 wallets to total has declined which points to greater dispersion amongst wallets i.e a more systematic accumulation rather than just whale accumulation. This is usually bullish.
NVT signal has successfully climbed back up and the last time it showed this form of trajectory, BTC roared higher. We would be optimistic once again of this happening as the large up move from Oct 25th has been similar to blow-off bottoms and happened on high volume. We expect to see a move past $10k again within a week or two.
Moving on to the derivatives markets, the perpetual swap fundings as well as futures markets premiums have expanded. The Dec premium of futures to spot is nearly 8% annualized. This had fallen to negative in the move below $8000 and served as a great indicator of stretched pricing in the downside. The presence of such a premium indicates bullishness amongst the mkt participants.
Derivatives market volume as mentioned before hit record numbers in the move up to nearly $20B on that day and has declined back to under $5B a day currently. Liquidity though has gotten tighter with Bitmex now at 46 bps width for $10M worth of BTC. During the rally predictably liquidity measures fell to nearly double of these numbers (i.e almost 1% wide for $10M USD size). This indicates liquidations via stop losses on Bitmex itself and could have been a driver for the violent move ($7500-$10200 over two days).
Meanwhile in Crypto Wonderland....
“OneCoin Lawyer On Trial”
The trial of a US lawyer accused of laundering some of the proceeds from the OneCoin cryptocurrency “scam” has begun in New York. Mark Scott is accused of routing approximately $400m (£310m) out of the US while trying to conceal the true ownership and source of the funds. Some is alleged to have ended up in Bank of Ireland accounts. Prosecutors claim he also spent some of the fraud’s proceeds on a yacht, three homes and a Ferrari car. They add that while the accused had earned hundreds of thousands of dollars a year in his role as a partner at a top-ranked law firm, this was “a fraction of the money he was paid to launder OneCoin fraud scheme proceeds”.
“Canadian Crypto Exchange Shuts Down”
Financial regulators in British Columbia, Canada are taking action against a cryptocurrency exchange that reportedly misappropriated user funds and has shut down. It has gone dark owing customers more than CAD$16 million (USD$12.1 million). Cryptocurrency trading site Einstein Exchange, based in Vancouver seemingly shut up shop at the end of last month, despite telling the British Columbia Securities Commission (BCSC) that it would be shutting down within two months, The Province reports. The exchange had tried to sell itself to a US-based investor, but the deal failed to come to fruition, and Einstein decided to close down. On October 31, a lawyer representing Einstein Exchange told the BCSC that it would shut down within 30 to 60 days due to “lack of profit.”
“Indian Govt Mulling Over Crypto Regulation”
State Bank of India’s (SBI) Chairman, Rajnish Kumar, has reportedly favoured the regulation of cryptocurrency in the country—a long debated issue. This was during a recent interview to a newswire agency, while attending International Monetary Fund (IMF) and the World Bank meetings in Washington, D.C., along with Finance Minister Nirmala Sitharaman. This statement comes in the backdrop of a draft bill ‘Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019’, which was submitted to the Finance Ministry in February. The Supreme Court is scheduled to hear writ petitions relating to this bill in January 2020 and is also addressing the Reserve Bank of India’s (RBI) banking restriction on the crypto industry.
“Congressman Introduces A New Bill To Protect Token Sales From SEC”
Following last week’s Congressional hearing with Mark Zuckerberg over Facebook’s Libra intentions, one lawmaker, Tom Emmer, has outlined his intention to introduce a new U.S. crypto bill that could provide token sales legal protection from SEC enforcement actions. The Republican Congressman for Minnesota said U.S. authorities should only apply securities regulations to cryptocurrencies that meet the traditional criteria of securities. Although most blockchain companies, particularly in the U.S., try their best to follow the rules, authorities are adept at moving the goalposts, he said. That created uncertainty that made it difficult for the blockchain sector to operate legitimately in the country.
Crypto Twitter Pick
Charlie Shrem
Huobi Bans United States Users Following Poloniex, Binance, Bittrex Bans; Forcing Traders to Use Venues With Less Reputation, Lower Liquidity, Lack of Variety, and Zero Anonymity via @_CryptoIQ
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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