Your dose of crypto news and analysis from @BTO and @Goldfinger

After two straight weeks of double digit percentage losses across nearly the entire cryptosphere, this week brought some solace.

gif hat tip Equity.Guru

It was looking like we were on the verge of a major breakout, with Bitcoin up from US$7,400 on Sunday to nearly US$9,200 on Wednesday, and big names publicly singing its praises:

But... FUD:

Financial Times

There was a lot of confusion when the Binance / Japan news first broke, and not a lot of detail on what was going on. And Binance's CEO was making statements like the following on Twitter, suggesting "no big deal":

It turns out that Japan’s top securities regulator has indeed issued a formal warning to Binance that it needs to comply with licensing requirements in order to continue operations, but at the end of the day, in the crypto world a physical address is not all that important. So, surprise! Just a couple of days after the initial negative news broke, Binance announced that they are setting up shop in Malta, where they will create a fiat-to-crypto exchange, and all with significant support from the government there. This was the PM of Malta on Twitter this morning:

Click here for the official announcement from Binance.

Since this announcement, cryptos have again been on the rise, but seem to have lost a bit of the momentum they had earlier in the week. Let’s see how some of the major cryptos fared overall (close UTC time last Friday to today):

  • Bitcoin trading around US$8,625, up +3.4% on the week
  • Ethereum trading around US$526, down -12.6% on the week
  • Bitcoin Cash trading around US$1,000, up +2.5% on the week
  • Litecoin trading around US$162, down -1.6% on the week
  • Stellar trading around US$0.23, up +1.1% on the week
  • Dash trading around US$415, down -2.5% on the week
  • Monero trading around US$211, down -2.1% on the week
  • Ethereum Classic trading around US$18.54, up +4.3% on the week
  • ZCash trading around US$249, up +5.3% on the week

WTF did I miss this week in crypto?

Carney On Eve of G20: Cryptos Don't Pose Risks to Financial Stability https://www.coindesk.com/financial-stability-board-downplays-crypto-impact-on-global-finance/

In a letter published on March 18, Financial Stability Board chairman Mark Carney, who also leads the Bank of England, said that the organization doesn't see the tech as a threat - at least at this juncture. Carney wrote: "The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system." For more, see here.

Coders Interest in Ethereum at All-Time High According to Google Trends https://www.trustnodes.com/2018/03/18/coders-interest-ethereum-time-high-according-google-trends

Interest in coding smart contracts is at around all-time high according to google trends, with China interestingly topping the list. While searches for Ethereum have fallen, for smart contracts and many other ETH related terms, they remain at their highs.

Another Wall Street Firm Hops on the Bitcoin Bandwagon https://bitsonline.com/wall-street-firm-bitcoin-bandwagon/

Wall Street trading firm Jane Street Capital, which trades approximately $5.6 trillion USD across its 56,000 products annually, is now eyeing off bitcoin. As reported on Business Insider, the company recently included bitcoin in its list of asset classes. Jane Street Capital is a major global player in quantitative trading, with a focus on technology and a reputation for secrecy.

Kevin O'Leary: NYC hotel wants to use a $400 million cryptocoin offering to sell ownership like a stock https://www.cnbc.com/2018/03/19/kevin-oleary-new-york-city-hotel-hopes-to-launch-400-million-dollar-coin-offering.html

"Instead of a stock, a share, it's a coin. With a smart contract approved by the SEC," says the "Shark Tank" investor and O'Shares chairman. "You will be an owner of a third of this hotel. If it works, it will be the first of its kind," O'Leary says.

Bittrex to Cut Listing of 82 Altcoins from its Exchange https://www.financemagnates.com/cryptocurrency/exchange/bittrex-cut-listing-82-altcoins-exchange/

Good riddance. Time to clean up the shitcoin mess. The majority of the delisted altcoins had broken blockchains, were abandoned by developers, or were designed as scams.

Bermuda Drafting ICO-Friendly Legislation to Draw Crypto Businesses https://www.coindesk.com/bermuda-drafting-ico-friendly-legislation-to-draw-crypto-businesses/

"The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda." No surprise here. Watch all the traditional financial services-focused tax havens jump aboard the crypto/ICO ship. 

CryptoKitties Raises $12 Million from Andreessen Horowitz and Union Square Ventures https://betakit.com/cryptokitties-raises-12-million-from-andreessen-horowitz-and-union-square-ventures/

CryptoKitties, which was founded by Vancouver-based Axiom Zen, has raised $12 million USD, according to a report from Bloomberg. The round was led by Andreessen Horowitz and Union Square Ventures.

The NSA Worked To “Track Down” Bitcoin Users, Snowden Documents Reveal https://theintercept.com/2018/03/20/the-nsa-worked-to-track-down-bitcoin-users-snowden-documents-reveal/

Snowden documents reveal the NSA worked to ”track down” Bitcoin users. Edward Snowden recently published papers showing that the NSA not only tracked transactions on the Bitcoin network, the organization further analyzed global internet traffic, collected user passwords and device identifiers. This was reportedly done to compromise the pseudonymity of users transacting Bitcoin. The Bitcoin monitoring operations were reportedly codenamed OAKSTAR and MONEYROCKET.

Tether Starts Printing Again, $300 Million Freshly Minted https://www.trustnodes.com/2018/03/21/tether-starts-printing-300-million-freshly-minted 

Tether has surprisingly begun issuing new tokens once more, with $300 million USDT printed Tuesday. That’s around two months after their printer went silent and after CFTC sent them a subpoena for an investigation that was seemingly received on January 23rd, the day the printer went silent.

OECD to G20: Crypto Tax Policies Need Global Clarity https://www.coindesk.com/oecd-to-g20-crypto-tax-policies-need-global-clarity/

The Organization for Economic Co-operation and Development (OECD), a global intergovernmental body, has called for agreement on new frameworks for the taxation of emerging technologies such as cryptocurrency. "Technologies like blockchain give rise to both new, secure methods of record-keeping while also facilitating cryptocurrencies which pose risks to the gains made on tax transparency in the last decade," the report argued.

Google Is Working on Its Own Blockchain Related Technology https://www.bloomberg.com/news/articles/2018-03-21/google-is-said-to-work-on-its-own-blockchain-related-technology

Google is working on blockchain-related technology to support its cloud business and head off competition from emerging startups that use the heavily-hyped technology to operate online in new ways, according to people familiar with the situation. Companies use blockchain and other so-called digital ledgers to securely record transactions and process other data over the internet -- a service Google could use, for example, to reassure customers that their information is protected when stored on the giant network of computer servers that power its cloud services.

France to create legal framework for cryptocurrency offerings https://www.reuters.com/article/us-france-cryptocurrencies/france-to-create-legal-framework-for-cryptocurrency-offerings-idUSKBN1GY0YE

France plans to create a legal framework for raising funds via cryptocurrencies and aims to become a leading centre for offerings in "bitcoin-style" digital currencies, its finance minister wrote on a news website.

TMX enters bitcoin market with new cryptocurrency platform https://www.theglobeandmail.com/report-on-business/tmx-enters-bitcoin-market-with-new-cryptocurrency-platform/article38331599/

TMX subsidiary Shorcan Brokers Ltd. said on Thursday it is building the first exchange-owned brokerage platform for cryptocurrency investors, and plans services that compile data on digital currencies and publish performance benchmarks such as indexes. The new platform is called Shorcan Digital Currency Network (Shorcan DCN), and is expected to debut in the second quarter of this year. It will initially focus on trading and data in the two most common cryptocurrencies, Bitcoin and Ether. 

‘Diet Bitcoin’: Brother of Drug Kingpin Pablo Escobar Launches Bizarre ICO, Claims He Met Satoshi https://www.ccn.com/pablo-escobar-brother-diet-bitcoin/

Twitter to prohibit range of cryptocurrency ads https://news.sky.com/story/twitter-to-prohibit-range-of-cryptocurrency-ads-11293387

Following Facebook and Google...

Israeli Regulator Outlines What Makes A Token a Security (Or Not) https://www.coindesk.com/israel-regulators-utility-tokens-not-securities/

Israel seems to be taking the lead on the international "crypto as securities" regulatory front. The Israel Securities Authority is recommending lenient regulations for initial coin offerings, including a clear definition of what separates a so-called "utility token" from a security. 

Entrepreneur Calls Bitcoin Cash ‘Bcash,’ ‘Scam’ to Canadian Parliament https://bitsonline.com/hamel-bitcoin-cash-scam/

...but may have only done so just to get attention and himself scam for donations. He had telegraphed that he would be making these comments on Reddit, asking for donations: “Spoiler : I’m gonna say ‘Bcash is a scam’ and it’s gonna be archived forever in the Parliamentary records (not a blockchain but still…) Donations are welcome : 1BiRhgxwHkBPB64MzAoefThtCDenqK416w Proof-of-Socks.”

Yahoo Japan is Launching a Cryptocurrency Exchange: Local Report https://www.ccn.com/yahoo-japan-will-launch-cryptocurrency-exchange-local-report/

Yahoo Japan is preparing to launch a cryptocurrency exchange, regional media sources say. Nikkei Asian Review reported on Friday that the tech firm — originally a joint venture between Altaba (formerly Yahoo!) and Softbank — will begin an acquisition of BitARG Exchange Tokyo in April and will spend the next year using BitARG’s technology to build a full-fledged exchange that will launch in 2019.

Steven Seagal-Backed 'Bitcoiin' ICO Hit with Regulator Warning https://www.coindesk.com/tennessee-warns-against-steven-seagal-backed-bitcoiin-ico/

How surprising...

Coins and tokens and stocks, oh my!

[Note — Net change and % change figures are from the close last Friday to the close today.]

HIVE Blockchain (TSXV:HIVE) — $HIVE — Last at $1.54; Net Change: +$0.17; % Change: +12.4%

With the crypto market on the mend, so too was HIVE's stock price. And it faired much better than nearly all the other stories out there in the crypto/blockchain pubco space. No news this week to explain the surge. Oversold? First mover advantage still in play? See @Goldfinger's take on it in The CryptoTechnician Report below.

Other crypto/blockchain-related stocks riding the wave:

  • HashChain Technology (TSXV:KASH) — $KASH — Last at $0.265; Net Change: -$0.05; % Change: -15.9%
  • Mogo Finance (TSX:MOGO) — $MOGO — Last at $3.71; Net Change: -$0.48; % Change: -11.5%
  • Overstock (NASDAQ:OSTK) — $OSTK — Last at US$45.20; Net Change: -US$0.50; % Change: -1.1%
  • Neptune Dash (TSXV:DASH) — $DASH — Last at $0.27; Net Change: -$0.045; % Change: -14.3%
  • Riot Blockchain (NASDAQ:RIOT) — $RIOT — Last at US$7.50; Net Change: -US$0.79; % Change: -9.5%
  • MGT Capital (OTC:MGTI) — $MGTI — Last at US$1.74; Net Change: -US$0.05; % Change: -2.8%
  • Global Blockchain (TSXV:BLOC) — Last at $0.415; $BLOC — Net Change: -$0.06; % Change: -12.6%
  • BTL Group (TSXV:BTL) — $BTL — Last at $5.07; Net Change: -$1.63; % Change: -24.3%
  • NetCents Technology (CSE:NC) — Last at $1.24; $NC — Net Change: -$0.03; % Change: -2.4%
  • eXeBlock Technology (CSE:XBLK) — Last at $0.295; $XBLK — Net Change: -$0.02; % Change: -6.3%
  • BIG Blockchain Intelligence Group (CSE:BIGG) — $BIGG — Last at $0.47; Net Change: -$0.13; % Change: -21.7%
  • And a few others that have been getting some attention: 360 Blockchain (CSE:CODE) — $CODE; Atlas Cloud (CSE:AKE) - $AKE; Block One Capital (TSXV:BLOK) - $BLOK; Calyx Bio-Ventures (TSXV:CYX) - $CYX; ePlay Digital (CSE:EPY) - $EPY; LeoNovus (TSXV:LTV) — $LTV; LottoGopher (CSE:LOTO) - $LOTO; HealthSpace Data Systems (CSE:HS); Stompy Bot (CSE:BOT); Imagination Park (CSE:IP); Blockchain Power Trust (TSXV:BPWR.UN) - $BPWR-UN; CryptoGlobal (TSXV:CPTO) - $CPTO; DMG Blockchain Solutions (TSXV:DMGI) - $DMGI; Hut 8 (TSXV:HUT) - $HUT.

Follow @Evenprime’s crypto watchlist should you wish to track the now dozens of names apparently in the crypto/blockchain game.

The CryptoTechnician Report

After falling below US$300 billion in total market capitalization on Sunday, cryptocurrencies staged a rebound rally that lasted through Wednesday morning; the rebound saw Bitcoin rally up near previous support at $9,200 and Ethereum rise from a low of $452 on Sunday to a high of $590 on Wednesday. This snapback rally also saw total crypto market capitalization vault back above US$350 billion. However, nothing has really changed in the chart structures of the major cryptocurrencies:

Bitcoin could very well be in the midst of a bottoming process, however, we will only know this when a series of higher lows and higher highs are in place. Upside resistance currently exists at ~$9,200 followed by $10,000 - meanwhile, there is support near $8,000 then $7,200 followed by the February low at $6,000. 

Turning to the charts of crypto-related equities we find a couple of encouraging signs this week in the form of HIVE Blockchain (TSX-V:HIVE) and LeoNovus Inc. (TSX-V:LTV):

HIVE rose 12.4% on the week and snapped a brutal four week losing streak. Meanwhile, LeoNovus rose 34.3% for the week and ended the week with a 42.42% rally on the heaviest single-day volume since January. While the overall crypto sector continues to offer a decidedly bearish flavor, HIVE and LTV offer some green shoots from which the bulls can find some encouragement.

Both HIVE and LTV peaked in early November (long before Bitcoin and total crypto market capitalization peaked), perhaps the turn higher in these two stocks could presage a turn in the overall crypto sector....

Funny things we saw this week

lol-- this website changes the music and mood based if Bitcoin (and others) are bullish or bearish: http://cryptofeels.net/

When you HODL through a bear market

When altcoins try to imitate the King (aka BTC):

Tell em Rocky...

BITCOIN IS DEAD: EXIT ALL CRYPTO

Can't believe I hadn't ever seen this before -- from 2013: 

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