May 2018


Cryptalgo Development Status

 

ALGOTRADER: as mentioned last month we started trading live in April and so far our test runs look very promising. We have spent time addressing API functionality issues which occur when an exchange API does not respond as described in its documentation. We are successfully mitigating and compensating for those edge cases as we continue towards our goal of running ALGOTRADER in an ongoing, fully automated fashion.

Telegram channels: our main telegram channel is now public, with an active and growing member community. Please join on https://t.me/CRYPTALGO. You will be able to ask questions and discuss Cryptalgo’s product offering, including investment products, brokerage platform, as well as the upcoming public ALGO token offering.

GALAXY: we have been working with an industry partner on an API gateway to Cryptalgo’s GALAXY network and trade execution system. The API will allow the client to issue buy and sell block orders across connected exchanges to achieve best price execution in real time.

 

Cryptocurrencies Market Update

 

The ten largest cryptocurrencies suffered average losses of -29% in May. Monthly returns ranged from -15% (TRON) to -47% (Cardano). As is usually the case in bearish markets Bitcoin was relatively better supported compared to other cryptocurrencies and lost -22% with a market capitalisation of USD 125 billion at month end. Total market capitalisation across the first 200 coins fell to USD 318 billion, a -25% decline compared to last month, and the lowest level so far this year based on month end figures. In other major markets, currency prices generally declined against the USD during May, while global equities remained broadly unchanged (the MSCI Emerging Markets Currency Index was down -1.4% while the MSCI World Index was up +0.3%).

 

Data source: www.coinmarketcap.com

Bitcoin’s market capitalisation dominance rose back to 39% in May. Ethereum (18%), Ripple (7%) and Bitcoin Cash (5%) came next, while EOS (a coin launched only one yer ago and which ended its token distribution on June 1st) remains in fifth position (3%).

Data source: www.coinmarketcap.com

24-hour trading volumes declined significantly in May. The top 200 coins were posting daily volumes of USD 12.3 billion at month end, a -57% decrease from one month before. Bitcoin and USD Tether still dominate the 24-hour volume table, with daily turnovers of USD 4.1 and USD 1.9 billion respectively. Ethereum, EOS and Bitcoin cash ranked third, fourth and fifth.

Data source: www.coinmarketcap.com

Like in April, cryptocurrency volatility levels declined during May. At one point, Bitcoin’s one-month realised volatility reached 45%, a level not seen since early May 2017. The monthly trading range of Bitcoin fell to 3,242 USD, its lowest since October 2017.

 

Data source: Bloomberg

Finally, ICO demand hit a new record in May 2018 following Telegram’s successful private token offering which we discussed here. Total ICO funds raised in May reached USD 2.3 billion, exceeding the USD 2 billion mark for the first time. Telegram’s offering accounted for USD 1.7 billion which was closed in two rounds earlier this year.

Data source: Token Data

Cryptocurrency Market News

 

On May 3rd Telegram reported it had decided to scrap its public sale of tokens. The company stated that “it had brought in so much money from a small group of private investors that it is calling off a planned sale of cryptocurrency to the wider public.” A full article can bee seen here.

On the same day, the market became aware of a patent application by J.P. Morgan Chase for using distributed ledgers as a way to facilitate and reconcile financial transactions. J.P. Morgan outlines a system that uses distributed ledgers to record payments being sent from one bank to another using a peer-to-peer network. According to the bank, the tech’s use would provide “a unique system for recording transactions and storing data.”

Crypto Facilities, the UK fintech startup, and the CME group announced on May 14th that they are launching an Ether Reference Rate and and Ether Real Time Index, which will allow users access to a real time Ether price in USD and will be the basis for Ether futures traded by Crypto Facilities. Ether futures will be a useful tool for market participants to hedge their exposure to Ether coins.

A news announcement on May 16th confirmed that payment and crypto-trading firm Circle had received an investment from Bitmain, the Chinese crypto-mining firm. The new round led by Bitmain values Circle at around USD 3 billion. It also includes other notable names like Accel and Blockchain Capital. Along with the new funding round, Circle also announced their plans for a new stablecoin (Circle USD, or USDC) which would be pegged to the USD.

Earlier on May 15th, Thomson Reuters announced that it was launching a real time cryptocurrency tracker and a dedicated data feed service. The product provides real-time prices aggregated across six major exchanges.

Custody services for cryptocurrencies have recently been gathering attention from established service providers. For example, a new venture called Komainu was unveiled on May 15th, offering a dedicated secure digital asset custody solution for institutional investors. Japanese securities firm Nomura is a partner in the startup, alongside digital asset security specialist Ledger and investment firm Global Advisors Holding. On the same day, Coinbase announced the launch of Coinbase Custody in partnership with an SEC regulated broker-dealer. Later on May 23rd, Coinbase was in the news again to announce the launch of Coinbase Pro, which will replace GDAX from July onward. According to their blog post, Coinbase Pro is redesigned to be easier to use and designed for non-institutional accounts.

 

 

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.

Market Updates


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Industry Perspectives


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