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

Bitcoin perma-bull Tom Lee says the pain is almost over!!! He theorizes that the sell-off we've experienced in 2018 is because the crypto-riche are in the midst of raising fiat to the tune of US$25 billion to pay their tax bills. This is based on an estimated US$92 billion in taxable gains from cryptocurrencies enjoyed by U.S. households in 2017.

The unfortunate side-effect for those who arrived late to the crypto party -- and those who dumped their crypto wealth into now-tanking alt-coins, or forgot to set aside some fiat to pay the taxman -- is this:

With US tax day around the corner (April 15), Lee predicts a return to the black thereafter. Let's GO!!!

The above chart is also a reminder of the remarkable run up in 2017 that preceded the pain of 2018 -- bring me back! But if we look back further for some historical context -- as Binance's CEO did on Twitter on March 31 (see below table) -- we're reminded that we're still 6-7x where we were a year ago, and you'd be hard pressed to find any asset with annual returns anywhere near these:

This week, Bitcoiners celebrated Satoshi Nakamoto's birthday. To register for a P2P Foundation profile, one must put in their birthdate. Nakamoto’s birthday isn’t public, but people around the world followed his page every day to find out when his age changes. The result: April 5, 1975, a date that mashes together two important points in American history. On April 5, 1933, President Franklin D. Roosevelt issued an executive order making it illegal to own gold in the country:

It wasn’t until 1975 that these measures were abrogated, enabling US citizens to own gold once again. [credit: https://cryptovest.com/news/satoshi-nakamotos-birthday-coincides-with-law-on-confiscation-of-gold-in-the-united-states-and-its-abrogation/]

Let’s see how some of the major cryptos fared overall (close UTC time last Friday to today):

  • Bitcoin trading around US$6,890, down -3.8% on the week
  • Ethereum trading around US$370, down -6.1% on the week
  • Bitcoin Cash trading around US$606, down -12.9% on the week
  • Litecoin trading around US$113, down -4.3% on the week
  • Stellar trading around US$0.19, up +2.4% on the week
  • Dash trading around US$286, down -7.9% on the week
  • Monero trading around US$164, down -5.0% on the week
  • Ethereum Classic trading around US$13.19, down -8.3% on the week
  • ZCash trading around US$175, down -7.6% on the week

WTF did I miss this week in crypto?

Crypto Exchange Coinbase Adds Support for Ethereum-Based Tokens https://www.bloomberg.com/news/articles/2018-03-26/crypto-exchange-coinbase-adds-support-for-ethereum-based-tokens

The San Francisco-based company said it will support Ethereum’s ERC20 technical standard on its platform in the coming months, according to a blog post the firm published Monday. ERC20 is the technical standard used to build Ethereum-based tokens, such as EOS, Qtum, OmiseGo and Bancor. There are more than 50,000 ERC20 token contracts, according to Etherscan website.

“I Do Now Believe That Fixed Supply is Worth Considering” Says Vitalik Buterin https://www.trustnodes.com/2018/04/02/now-believe-fixed-supply-worth-considering-says-vitalik-buterin

Vitalik Buterin, ethereum’s founder, has seemingly opened a debate on quite a complex matter following a meta-joke on Aprils fools that might actually not be a joke at all. “I do now believe that fixed supply is worth considering,” Buterin says, providing three initial arguments in favor of it: “With ASICs, PoW issuance fails at making coin distribution more egalitarian. With PoS, PoW issuance not needed for security. With rewards coming from rent and other burned fees, can have rewards without issuance.”

Antigua and Barbuda Government Paves the Way for Cryptocurrency Exchange https://bitsonline.com/antigua-barbuda-crypto-exchange/

The government of twin-island country Antigua and Barbuda is planning to establish an exchange that would facilitate cryptocurrency trades in the country. Similar to many other small nations, the island country wants to cash in on the crypto craze. The exchange looks likely to be set up with the counsel of Canadian-Antiguan gambling tycoon Calvin Ayre.

TD Bank Considers Public Blockchain for Asset Tracking https://www.coindesk.com/td-bank-considers-public-blockchain-for-asset-tracking/

In a patent application published last week, TD Bank outlined how it could use a public distributed ledger to help point-of-sale computers track transactions. In the scheme, computers would create blocks of data in which information about the assets being sold, their value in a given currency and the transactions themselves would be stored. Filed in September 2016, it's not clear if the bank has pursued the idea further than the application. However, it's a notable indication of interest, as big bank blockchain work has generally been confined to private or permissioned ledgers.

China's Sinochem Completes Gasoline Export Over Blockchain System https://www.coindesk.com/chinas-sinochem-completes-gasoline-export-over-blockchain-system/

Chinese petrochemical giant Sinochem Group has succeeded in utilizing blockchain technology to carry out a gasoline export. In earlier simulations utilizing the technology, the group indicated that digital bills of lading and smart contracts could streamline crude oil transactions, "optimizing 20-30 percent of financing costs."

Here’s What It Costs to Get John McAfee to Promote Your ICO https://www.ccn.com/heres-what-it-costs-to-get-john-mcafee-to-promote-your-ico/

Answer: $105,000 per tweet. Not a bad gig if you don't wind up in jail.

Coinbase launches the Coinbase Commerce API https://medium.com/@coinbasecommerce/announcing-the-coinbase-commerce-api-75f917f7eed9

The Commerce API is intended to make it easier for merchants to implement crypto payments into their own e-commerce applications. Instead of building crypto payment buttons manually, merchants can now automatically generate these for incorporation into their platforms.

South Korea's Capital Is Planning to Launch Its Own Cryptocurrency https://www.coindesk.com/south-koreas-capital-is-planning-to-launch-its-own-cryptocurrency/

The South Korean city of Seoul is developing its own cryptocurrency - the "S-Coin" - to be used in city-funded social benefits programs, says its mayor.

A Report Suggests Indians More Hyped About Ethereum Than Bitcoin https://bitsonline.com/indians-ethereum-bitcoin/

In India when it comes to cryptocurrency popularity, ethereum, the world’s second largest cryptocurrency by market cap, has outranked bitcoin. According to a report from Jana — one of the largest free internet providers in emerging markets — ethereum has topped bitcoin as the most searched cryptocurrency in a period of five months.
But this may be all for naught, with the Reserve Bank of India announcing yesterday that "entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies]". Interestingly, RBI also hinted in the same news release that it is looking into the creation of a digital Rupee.

Electronics Giant Foxconn to Build Sirin Labs' Blockchain Phone https://www.coindesk.com/electronics-giant-foxconn-to-build-sirin-labs-blockchain-phone/

After rumours of Huawei being in talks with Sirin Labs to build a blockchain-ready smartphone, it has been confirmed that Foxconn will be stepping up to the plate to do so. The phone will reportedly feature an app store for distributed apps (dapps), secure storage for crypto wallet keys, and a means for simple conversion between tokens.

First Bitcoin Lightning Network Android App Hits Google Playstore http://bitcoinist.com/first-lightning-network-android-app/

The Lightning Network (LN) has gained its first user mobile app in the form of ACINQ’s Eclair wallet, which debuted April 4. The first of what will ultimately be many LN-based apps and tools for end users, in my opinion.

Hacked Coincheck Exchange to Accept Takeover Bid, Report Says https://www.coindesk.com/hacked-coincheck-exchange-accept-takeover-bid-report-says/

Japanese cryptocurrency exchange Coincheck, which was the victim of a major heist in early 2018, is to accept a takeover offer from online brokerage Monex Group. When the rumour of this takeover was first leaked, Monex, which is listed in Japan, saw its share price soar, with its market cap quickly surging $200 million up to $1 billion.
The news of the takeover was again confirmed today, with an added tidbit of information: Monex hopes to launch an IPO of Coincheck shares at a future date - a move that would be a first for a Japanese cryptocurrency exchange.

Vitalik Buterin and Joseph Poon Call Out Craig Wright at Deconomy 2018 https://bitcoinmagazine.com/articles/vitalik-buterin-and-joseph-poon-call-out-craig-wright-deconomy-2018/#1522794207

Deconomy, an international blockchain forum, took place in Seoul, South Korea, from April 3 to 4. Among the event’s many speakers was Craig S. Wright, chief scientist at nChain, who in 2016 controversially proclaimed himself to be Satoshi Nakamoto, the inventor of Bitcoin. Ethereum co-founder Vitalik Buterin was also a featured speaker at the event, and during Wright’s comments, Buterin tweeted that the scientist was “crazy". In the Q&A period that followed, he hilariously asked, to hefty applause, “Why is this fraud allowed to speak at this conference?” Video proof below:
Joseph Poon chiming in at the end, saying "I wrote the lightning network whitepaper and still didn't understand your talk",  is also classic. lol
Vitalik's surly streak continued on Twitter today, hilariously trolling TRON founder Justin Sun for having plagiarized the Ethereum white paper:

Bitmain Confirms Release of First Ethereum ASIC Miners https://www.coindesk.com/bitmain-confirms-release-first-ever-ethereum-asic-miners/

Bitcoin mining hardware firm Bitmain unveiled its long-rumored Ethereum mining tech on Monday. The Antminer E3 is set to ship this July, according to Bitmain's website, at a price of $800 per unit. It's release has everyone wondering if the Ethereum community will take the same path Monero is heading down and fork to kill the ASIC. Or will this merely pave the way for speedier adoption of Proof-of-Stake (Casper) rendering the ASIC rigs useless? In any event, the specs suggest that with the ASIC you are merely getting the equivalent of a regular GPU mining rig in terms of hashrate and power usage (see here), so I wouldn't expect the release to impact operations of GPU mining firms, until perhaps Bitmain is able to improve the specs in a second generation ASIC -- if one is ever released.
UPDATE: I'm hearing that the Ethereum community has adopted a hard fork proposal today and that, for now, it is scheduled to occur on block 5,550,000, which is about 30 days from now. You can review the proposal here: https://github.com/ethereum/EIPs/blob/master/EIPS/eip-969.md 

Japan Unveils Guidelines for Allowing Initial Coin Offerings https://www.bloomberg.com/news/articles/2018-04-05/japan-plans-first-step-toward-legalizing-initial-coin-offerings

Japan is moving toward legalizing initial coin offerings, even as countries such as China and the U.S. restrict the fundraising technique because of their risks for investors. “ICOs are groundbreaking technology, so if we can implement good principles and rules, they have the potential to become a new way to raise funding,” said Kenji Harashima, a researcher at Mizuho Research Institute.

George Soros Prepares to Trade Cryptocurrencies https://www.bloomberg.com/news/articles/2018-04-06/george-soros-prepares-to-trade-cryptocurrencies-as-prices-plunge

Soros called cryptocurrencies a bubble in January. Now his $26 billion family office is planning to trade digital assets.

Coins and tokens and stocks, oh my!

[Note — Net change and % change figures are from the close last Thursday (markets were closed on Friday )to the close today.]

HIVE Blockchain (TSXV:HIVE) — $HIVE — Last at $1.17; Net Change: -$0.09; % Change: -7.1%

Great news out from HIVE both last week and this week. The first piece of news came on March 26, with the company announcing a major land grab in Norway. The company will be acquiring Kolos -- the owner of a 64-hectare property in Ballangen, Norway, with access to existing infrastructure that could see HIVE scale up what could be the first giga-farm -- with a supply of more than 1.0 GW, or 1,000 MW, of hydroelectricity. With news like this — https://www.coindesk.com/hydro-quebec-suspends-new-mining-operations/ — becoming the norm, on top of heightened scrutiny of fossil fuel usage in crypto mining, companies like HIVE who are lining up significant access to green power now will benefit greatly down the road, in my opinion. HIVE now has access to a huge pipeline of clean renewable energy with this Norway acquisition (and ownership of a large piece of land), and lots of runway/options to expand there for the foreseeable future.

This week, the company also announced the timely completion of Sweden Phase 2, which is now online, representing a 65% increase in online power capacity.

The only problem? The continuing slide in crypto prices and overall sentiment, which needs a hefty bounce-back to spur on HIVE's and other crypto-focused pubcos share prices.

However, one good piece of news for HIVE that just broke moments ago relates to the Ethash ASIC miners that Bitmain announced would be shipping this summer. My sources are telling me that the Ethereum community has agreed to a hard fork to kill the ASIC miners, and that this will take place in approximately 30 days. These same sources tell me that Bitmain probably had these ASICs operating for the last few months, which likely contributed to the ~40% increase in hash rates in this period. When the hard fork bricks that equipment, the result will be reduced network hash rates. If true -- VERY GOOD news for HIVE in my opinion.

Other crypto/blockchain-related stocks riding the wave:

  • HashChain Technology (TSXV:KASH) — $KASH — Last at $0.215; Net Change: -$0.025; % Change: -10.4%
  • Mogo Finance (TSX:MOGO) — $MOGO — Last at $3.57; Net Change: +$0.13; % Change: +3.8%
  • Overstock (NASDAQ:OSTK) — $OSTK — Last at US$35.85; Net Change: -US$0.40; % Change: -1.1%
  • Neptune Dash (TSXV:DASH) — $DASH — Last at $0.21; Net Change: -$0.035; % Change: -14.3%
  • Riot Blockchain (NASDAQ:RIOT) — $RIOT — Last at US$6.64; Net Change: +US$0.02; % Change: +0.3%
  • MGT Capital (OTC:MGTI) — $MGTI — Last at US$1.24; Net Change: -US$0.04; % Change: -3.5%
  • Global Blockchain (TSXV:BLOC) — Last at $0.39; $BLOC — Net Change: +$0.025; % Change: +6.8%
  • BTL Group (TSXV:BTL) — $BTL — Last at $4.74; Net Change: +$0.69; % Change: +17.0%
  • NetCents Technology (CSE:NC) — Last at $0.94; $NC — Net Change: -$0.17; % Change: -15.3%
  • eXeBlock Technology (CSE:XBLK) — Last at $0.235; $XBLK — Net Change: -$0.005; % Change: -2.1%
  • BIG Blockchain Intelligence Group (CSE:BIGG) — $BIGG — Last at $0.38; Net Change: -$0.10; % Change: -20.8%
  • 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

Total crypto market capitalization sunk back below US$250 billion this week which means that we have seen a ~70% decline in total crypto market value since the peak on January 7th:

In one sense a nearly US$600 billion value destruction in the span of just three months is incredible and disastrous all at the same time. However, when one puts into perspective that total crypto market cap is just now back to where it was on Thanksgiving 2017 (US Thanksgiving which fell on November 23, 2017), it helps one to understand that the frothy retail driven blow-off move which took place primarily in December 2017 has simply been erased. Remember, it was just after Thanksgiving that Coinbase began reporting that it was opening 100,000+ new accounts per day. It was this mad rush to chase an already hot market which resulted in parabolic blow-off moves across the crypto sector.

There is no doubt that cryptos are mired in a bear market currently, however, there are signs that Bitcoin and some of the larger cryptos could be in the early stages of forming a long term bottom.

Bitcoin has been forming a potentially bullish falling wedge pattern since the beginning of March. Moreover, an important support/resistance layer between $5,400 and $6,600 offers strong potential support from which the #1 cryptocurrency can rally once big players have accumulated a sufficient amount. 

We will want to see a daily close above $7,500 to become encouraged that the falling wedge has indeed resolved to the upside - this pattern would target a move up to at least $10,000 once confirmed higher. 

The #2 crypto, Ethereum, is also testing a major area of previous resistance which could now become support:

Remember that US$300 was a big level at which Ether consolidated for quite some time before launching on a $1,000+ rally. I view $300 as a very strong level to trade 'against' i.e. risk 20% with a solid chance of making 100%+ in the event of a market turn. 

Finally, a coin not in the top 20 caught my attention this week. Verge (XVG) has formed a rounding bottom pattern and has a chance to rally 100%+ in the event of a breakout above major support/resistance at $.08:

This chart has excellent potential and the fact that Verge has diverged significantly from the crypto sector is a notable bullish divergence. I took a starter position in XVG this week and will be monitoring it closely over the coming weeks. A green shoot in a sea of red. 

Funny things we saw this week

Those were the days...

Bitcoin Explained:

... and the sequel:

The Bitcoin Miner's Daughter

Must be a king...

Scammers.

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