August 2018


 

Cryptalgo Development Status

 

ALGOTRADER: the development and testing are progressing in accordance with our timeline. We have started a process with one of the top-4 accounting firms in which they will review our results and write an official report which we will be able to share with prospective investors.

NEW PARTNERSHIP: Cryptalgo has entered into a strategic partnership with Rosenblatt, a UK law firm based in the City of London. The partnership will see Cryptalgo and Rosenblatt collaborating to help clients entering cryptocurrency markets. Rosenblatt supplies a comprehensive range of legal services to its clients and has a wealth of experience in overcoming the complexities of cross-border and cross-jurisdictional activity. Cyptalgo will assist Rosenblatt with its well-established technical expertise in cryptocurrencies.

SUPER-EXCHANGE: we have upgraded and re-framed our brokerage and order execution system. The new product, called Super-Exchange, will provide users with single account trading against the global cryptocurrency market, a real time aggregated order book of the global market, best execution, institutional grade trading tools and capabilities such as VWAP/TWAP orders, basket orders, trade from charts and more. We are also planning to add to the system a full trade life-cycle management system, including risk management and post trade processing.

 

 

 

Cryptocurrencies Market Update

 

Cryptocurrencies gave back their July gains, finishing August with a global market capitalisation slightly above USD 200 billion (for the top 200 coins), a -28% decline from last month. Putting aside Tether (which is a stablecoin), the most resilient currency in the top ten was Bitcoin which dropped -19%; its market dominance rose to 55% (from 48% last month). Bitcoin was trading around USD 6,700 on August 26th, posting a USD -1,500 decline. The list of the ten largest cryptocurrencies by market capitalisation was broadly unchanged. Tether rose to 8th position from 10th as its price – pegged to the US dollar – did not move compared to other coins; Monero joined the ranks in tenth place, replacing IOTA.

Data source: www.coinmarketcap.com

Taking a step back and looking at year-to-date performances, it is fair to say that the cryptocurrency bubble has burst. Last year’s market frenzy of day traders and speculators looking to make quick profits is behind us, and we do not foresee that it will return. Cryptocurrency investors who remain in the market are largely sophisticated and experienced participants with strategies for the longer term. The fallout from the above are lower market volumes, lower volatility, and a price of Bitcoin – for example – that is unlikely to flare back up to USD 20,000 in the short term. Having said this, BTC/USD has tested the support level of USD 5,800 three times this year (in February, June and again in August). Each time the price has bounced back with increased trading volumes. As long as this support holds we see further potential to test higher levels over the coming months (with a first resistance around USD 7,800).

Data source: www.coinmarketcap.com, Bloomberg

There were 38 successful ICOs in July raising a total of USD 417 million, a -28% contraction compared to June. The largest project – Cryptosolartech – raised USD 60 million. The number of successful ICOs increased from 34 to 38.

Data source: Token Data

Cryptocurrency Market News

 

Bitmain Technologies is hoping to raise USD 18 billion for an IPO in the coming months according to documents obtained by CoinDesk. One of the most valuable cryptocurrency companies, Bitmain closed a USD 1 billion pre-IPO financing round led by China International Capital Corporation on July 23 at a $15 billion valuation, nearly two times cryptocurrency exchange Coinbase’s $8 billion valuation. The profit of Bitmain reached USD 1.1 billion in Q1 2018 and is estimated to reach at least USD 2 billion for 2018. The company posted USD 100 million profit in 2016 and USD 1.1 billion in 2017, according to CoinDesk.

According to a Bloomberg article published August 6th, Goldman Sachs is considering a plan to offer custody for crypto funds. A formal offering from an institution like Goldman Sachs would provide a credible backing for crypto funds and could pave the way for more investors to bet on the asset class.

Coindesk reported on August 22nd that the SEC had rejected nine bitcoin ETF proposals, including proposals from ProShares, Direxion and GraniteShares. The agency cited once again that some of the proposals had failed to address concerns about the possibility of market manipulation of the cryptocurrency’s price on exchanges. 

In a recent blog post published August 30th, Yahoo Finance announced that it is now allowing its users to trade four cryptocurrencies (BTC, ETH, LTC and Dogecoin) through an iOS app.

Business Insider reported that the CBOE is planning to launch futures on Ethereum (ETH). CBOE will reportedly base its ETH futures on Gemini’s underlying market; the operator also based its Bitcoin (BTC) futures on the New York-based crypto exchange run by the Winklevoss twins.

Kingdom Trust, the Kentucky-based cryptocurrency custody firm announced that it had obtained insurance coverage for the digital assets it holds via the marketplace of Lloyd’s of London. Currently, Kingdom Trust has US$12 billion of assets in its custody and more than 100,000 clients. Lloyd’s will protect investors against theft and loss due to natural disaster.

 

 

Disclaimer: the information contained herein is being furnished for discussion purposes only and may be subject to completion or amendment through the delivery of additional documentation.  This communication does not constitute an offer to sell or the solicitation of an offer to purchase any security, future or other financial instrument or product. Information is presented as of the date and, if applicable, time indicated. CRYPTALGO does not accept any responsibility for updating any such information. Any historical or simulated results presented herein should not and cannot be viewed as an indicator of future performance. Market views and opinions are current opinions only. CRYPTALGO is not an adviser as to legal, taxation, accounting, regulatory or financial matters in any jurisdiction, does not act as fiduciary or financial, investment or commodities trading advisor for any of its counterparties, and is not providing any advice as to any such matter to the recipient.  The recipient should discuss such matters with the recipient’s advisers or counsel and make an independent evaluation and judgment with respect to them.

Past performance may not be a reliable guide to future performance.

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