Daily Cryptocurrency News – 18th November 2018

Here are the most important headlines of the cryptocurrency space for November 18th, 2018

Switzerland’s First Bitcoin-Cryptocurrency ETF Just Got Approved

Switzerland, one of the most powerful countries from the economical point-of-view, managed to get the first Bitcoin-cryptocurrency ETF approved. After creating the first digital identity pilot on Ethereum blockchain, the country launched their first crypto related ETF. The Bitcoin ETF – with the ticker $HODL – was offered by Amun Crypto. Switzerland’s first Bitcoin ETF will be live on Switzerland’s Six Swiss Exchange next week.

Six is Switzerland’s leader on stock exchanges, and also the 4th largest one in Europe. As FT reported, the ETF “[…] has been designed to track an index based on the movements of five leading cryptocurrencies.”  48% of the ETF will be placed into Bitcoin, 30% into XRP and the rest of it into Bitcoin Cash, Ethereum and Litecoin. The ETF has been created according to the expected standards, giving institutional investors a new way to invest into crypto. Hany Rashwan, Amun’s top executive declared:

The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments

 

As Switzerland approved the first Bitcoin related ETF – It could possible lead the way for a USA approved Bitcoin ETF in the short future. The crypto markets gained around $4 Billion in the last 24 hours and some people are preparing for a possible short term bull run.

Bitcoin 2018 Evolution – The Similarities Between 2014 & 2018 in Crypto

2018 wasn’t the best year for cryptocurrency investors nor for the short term hodlers. Most of the people that managed to get a profit in 2018 are the Bitmex traders which took advantage of the bear market and short the Bitcoin’s price. But a reddit user called boppleton did a comparison between the price of bitcoin in 2014 and the one from 2018.

As we may see from the image, the graphs looks almost the same. This leads us to the question, will the history repeat itself? Bitcoin in 2014 had a bad year as the Mt Gox hack took place and a lot of investors lost their interest in the cryptocurrency space. Afterwards, the price dropped a lot, finishing the year in the $300 zone – a massive pull-back from the $800+ value.

The evolution in 2015 wasn’t great either. The price reached values close to $200, but finished the year with a value above $400. From that point on, Bitcoin started growing. until this year. The drop from 2014 was perfectly justified, but in 2018 doesn’t feel like it. However, the history can repeat itself. It will probably take a few more months – but we could see a small Bitcoin bull run at the beginning of 2019.

A big issue for Bitcoin in 2017 were the high fees. There were some times when a transaction had a cost of $50. Now, its not the case. The network is working properly and the Lighting Network is getting better day by day. Right now, Binance recently paid $7 for a transaction of $600 millions. And using other cryptocurrencies like XRP or NANO could lead to a lower transaction fee, but exchanging those funds for liquidity would be harder. This transaction was also the largest unspent transaction output existing today and it proves the usability of the Bitcoin’s network.

As you may know, the bitcoin network’f fees are based on the computer resources require to store the information, not the amount paid. Therefore, someone could sent $1 billion from point A to point B and pay around $10 for it.

CNBC’s Ran Neu-Ner Talks About Buying Ripple 

The host of CNBC Africa’s “Crypto Trader” just made a bold statement while talking about the “Bitcoin Cash Civil War”:

“These hash wars highlight why everyone should dump BTC and BCH and just put all their money into XRP!”

Of course, he didn’t this on air. The ‘joke’ was made from Ran Neu-Ner’s personal account. Ran is also the co-founder of the Onchain Capital, “a fund management business that offers eligible investors professional portfolio management services within the emerging Blockchain and CryptoAsset class,”. This probably came as a result of his earlier poll. The poll was created to check which is the favorite cryptocurrency of his followers. And he managed to get an unexpected result.

As you can notice, XRP is the most wanted cryptocurrency right now – leading BTC by 13%. And it’s not even a surprise, as XRP stole the #2 spot from ETH,according to CoinMarketCap, and was almost unaffected by the recent price drop. Could this be the start of the new Ripplemania or has CNBC done it again?

Who knows. We don’t.

Has the ICO Model Fallen? With Over $30 Billions Invested, Most of ICOs Don’t Have a Working Product

Sam Gellman have a great point of view here. There were a lot of money invested in ICOs – and we can barely see any results. There are only a few ICOs that have a working product. Let’s get to a few examples :

  • Binance Coin (BNB) – Great use-case, great cryptocurrency with a real value. The BNB is commonly used to reduce the fees on the Binance exchange platform and will soon be used to power the Binance Decentralized Exchange. Also, a lot of merchants starts to use BNB to accept cryptocurrency payments. Moreover, Binance is doing quarterly BNB deductions, where they burn a certain amount of BNB from the existing supply – reducing the inflation over the long term.
  • Oyster Pearl (PRL) – The CEO did a ‘scam-exit’ and dumped the price right a few days until the cryptocurrency should have been listed on Binance. They don’t have a working product and their community suffered a loss of funds – that they won’t get refunded for.

Moreover, SEC recently requested two ICOs to refund the money earned in the ICO to their investors – AirFox and Paragon. They added that the two token sales were ‘unregistered security offerings’ and the investors should be refunded.

“We wish to emphasize, however, that market participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain.

A bear market is sometimes useful in crypto. Especially to filter the good projects from the bad ones. For the cryptocurrency industry to move forward, the under-performing projects need to disappear.

Other Important News

If you’ve missed yesterday’s news, you can read them here: Daily Cryptocurrency News – 17th November 2018

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