Tether has recovered from a mid-October sell-off to trade near parity with the U.S. dollar once more.
The crypto market’s dominant stablecoin had fallen to 86 cents, with speculation surrounding tether’s dollar reserves. Despite fears that the stablecoin may see further selling, the price has since recovered to $0.9921. according to data from Coinmarketcap.
The recovery in tether had been helped by further transparency regarding the dollar reserves, however a recent announcement has stated that the 500 million tokens have also been removed from circulation. The timing of this move suggests that tether are burning tokens in excess of their stated reserves. This could be part of a plan to produce a more transparent audit.
The redemptions and growing competition in the stablecoin market are still signs of discomfort for tether.
Ripple has released its Q3 2018 XRP Markets Report, which shows that XRP sales doubled in Q3, largely due to institutional buying.
Total sales of XRP was $163 million up from $73.5 million in Q2. Institutional sales accounted for the majority with $98 million, from only $16 million in Q2. The increase is largely down to the hype and release of the xRapid product.
XRP had traded in a tight correlation with the overall crypto market but was underperforming until the September rally on the xRapid news.
Another interesting chart highlighted the growing importance of South Korea and Malta. The latter surprisingly accounted for, “two-thirds of digital asset trading”. Koreans have increased their trading volumes as the emerging markets have struggled in the global risk sell-off. Although Malta has been a strong supporter of blockchain technology, the European nation only has a GDP of $12bn. A large portion of the volume may be from institutions and startups who have moved to the regulation-friendly island. Malta’s moves to adopt cryptocurrency has seen the country attract the name “Blockchain Island”.
Ripple’s XRP has struggled to see follow-through on xRapid. This is due to the small number of companies that have signed up so far. XRP has consolidated the recent rally but a further advance cannot be ruled out.
Basic Attention Token (BAT) has been soaring in the last ten days as traders anticipate a possible Coinbase listing.
BAT has moved from lows near $0.17 to trade at highs around $0.30. The move has extended recently, following the addition of 0x to the Coinbase exchange. The cryptocurrency exchange had talked of “exploring” five coins in the past apart from 0x: Stellar Lumens, Cardano, ZCash and BAT. BAT has moved to number 31 in the list of coins by market cap but is still valued at more than 50% lower than its nearest competitor on the list in ZCash.
Basic Attention Token is a project that aims to decentralize the digital advertising market. The token is created on the Ethereum platform and can be exchanged between publishers, advertisers and users. The goal of the project is to eliminate middlemen, trackers and fraud.
The BAT token works alongside the Brave browser , which is an open-source, privacy-focused browser that blocks trackers and also contains a ledger system that captures user attention to reward publishers.
The token’s utility is derived from — or denominated by — user attention.
Worldwide Digital Ad Spend 2010-2018
The Basic Attention token currently has 1 billion tokens in circulation, so the current price represents a market cap of $280 million. Global digital ad spending is currently over $550 billion so there is a huge market for the project to pursue.
Maximum control of the digital ad world would make BAT tokens worth $550. This figure should be adjusted for share of the market. Even a 5% share of the ad market would give BAT a valuation of $25 – 100x its current valuation.
In a recent article we highlighted the “Coinbase effect” that led to a 30% rally in 0x after it was officially listed on the cryptocurrency exchange.
The Coinbase rally and the rumour rally that preceded it led to big gains for 0x speculators. We mentioned that 0x was spotted on the exchange’s reporting section days before the coin was announced for Coinbase Pro. The rally seen in 0x has led to another bout of FOMO and the four coins that we noted in our article are all showing gains today.
Coinbase had previously mentioned that they were exploring the possibility of five coins. These coins were: Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA), ZCash (ZEC) and of course, 0x (ZRX). The four remaining coins are likely seeing gains from speculative buyers who are hoping to predict the next listing rally.
Coinbase has recently adopted a new listings policy, which allows project founders to complete an application form to be considered for a potential listing. The move came following criticisms over the previous selection policy, requests from users that they wanted more coins to trade, and more importantly to catch up to the growing competition from rival exchanges. With a new improved listings policy and a lofty valuation to keep up with, you can expect to see another coin listed more quickly than they have in the past.
0x has surged 30% after the token officially started trading on the Coinbase exchange.
The move had started last week with rumours of an addition for 0x and I noted in a previous article how Coinbase users had spotted ZRX listed in the reporting section of the Coinbase platform. This was followed by the initial rally to the $0.75 level. I noted then that, “Key resistance for ZRX will be around the $1.25 level.”
The price has blasted through the $1.00 level today but has since retreated to $0.98. There is potential for a follow-through rally and above $1.25 we have resistance at $1.75 and $2.25. Above the $2 level there is little resistance to stop a bull run in 0x. Today’s move will have been powered by large investors on the Coinbase exchange who wanted to diversify into ZRX and its $500 million market cap. The move on the “Coinbase effect” has propelled 0x to number 22 in the rankings, only $60 million short of ZEC in twentieth place.
It should also be noted that when Coinbase were “exploring” the option of another coin it considered Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA) and ZCash (ZEC). Traders should keep an eye on the reporting section aagain as Coinbase may follow up with another of those coins more quickly than they have done previously. The last coin added to Coinbase was Ethereum Classic in July, however the company has faced calls from users to add more coins and there is also growing competition in the exchange market so the company will not want to be left behind, especially after the company received further investment of $500 million from Tiger Global, in a deal that saw Coinbase valued at $8 billion.
Cryptocurrency markets are higher this morning after the Tether stablecoin slipped to 95 cents on the dollar on the Kraken exchange. The move lower in Tether across the board led to a strong volume spike in Bitcoin, which moved from $6,300 to blast through previous resistance at $7,250.
Monday’s sharp move lower in the stablecoin is significant because criticisms have been levelled in the past at the claims that is each Tether is backed 1:1 by the U.S. dollar. The move is also significant because new stablecoins have recently come onto the market, including the “USDCoin” created by Circle. Fears over the Bitfinex exchange being insolvent have also been swirling and Tether sees large volume on the Bitfinex exchange.
This could be the first crack in Tether that sees traders move to other exchanges and stablecoins.
0x has blasted higher as rumours of an imminent Coinbase listing appeared to be confirmed. Posting screenshots on a Medium article, users spotted that the ZRX coin had been added to the reporting section of the Coinbase platform.
ZRX was 16% higher on Monday as investors digested the news and anticipated a surge in volume through the addition to one of the largest and mainstream cryptocurrency exchanges.
The 0x protocol seeks to facilitate the the trading of any type of asset and have been prominent in gaming and prediction markets. In a Medium post in June, the project’s co-founder Will Warren stated their ambition to tokenize financial assets saying,
We envision a world in which all forms of value are tokenized on public blockchains. This includes fiat currencies, stocks, bonds, commodities, debt instruments, real estate, video game items, digital collectibles, software licenses, reputation and much more. …we can build a global financial system that is more efficient, transparent, and equitable than any system that has existed in the past.
ZRX has moved 50% higher from the September lows and is testing resistance near $0.80. Key resistance for ZRX will be around the $1.25 level.
ZRX may continue higher, however this rally highlights the short memory that traders often display. Despite an inital rally, Ethereum Classic (ETC) is 38% lower from its own Coinbase listing announcement in July, however we can give 0x the benefit of the doubt this time as the Ethereum blockchain has been under continued pressure with project’s like Tron surpassing Ethereum’s performance.
EOS has shrugged off allegations of corruption in its blockchain governance and the coin may rally soon.
The concerns over the EOS governance was related to claims that some block producers (BPs) were voting to keep each other on the network in return for rewards. Block.one released a statement which did not confirm or deny any wrongdoing but were keen to state that they take governance seriously,
“We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process.”
They added, “we extensively think about the future of decentralized governance and are committed to continually pushing thought leadership on optimal design.”
Despite the fuss, EOS has shrugged off the issue and the coin may soon mount a rally.
The price of EOS has bounced from the support at the April lows creating a potential double bottom. The blue line is monthly support and the coin may soon rally to test the resistance around the $8.00 level.