Crypto Expert Prediction for 2019: The Promises of 2017 Set to Lead Crypto Growth in 2019
No one wants to relive the bear year of 2019 but many experts and traders are optimistic that this year will bring good fortunes. Fred Wilson, a veteran crypto investor is convinced that the fulfillment of the promises of 2017 will lead the next bull run. The world’s largest cryptocurrency exchange Binance is planning to launch at least one project per month on its token sale platform – Binance Launchpad. Crypto heavyweight Circle facilitated Over-the-counter (OTC) trades worth over $24 billion in 2018.
The crypto market bleeds for the second day running after the majority of the top 100 digital assets recorded losses of varying degrees. The flagship cryptocurrency Bitcoin is down 1.67 percent in the last 24 hours while Ether surged 1.28 percent. Ether has now reclaimed its second spot as the world’s second most valuable cryptocurrency by market capitalization.
Tether is slightly trading above the $1 mark. Tron, the tenth largest cryptocurrency is up 1.33 percent. Chainlink is exchanging hands for $0.438259, a spike of 24.76 percent in the last 24 hours. Overall, the market has only lost $1.2 billion in the same period.
Circle’s OTC Crypto Trading Desk Registers Volume of $24 Billion in 2018
Crypto major player Circle announced via a blog post on Jan. 3 that their Over-the-Counter (OTC) crypto trading desk clocked more than $24 billion in trades in 2018. This is a significant step in the industry as OTC trading volumes are rarely publicized.
The crypto heavyweight claims to have facilitated 10,000 OTC trades across 36 different assets from more than 600 parties.
“Circle Trade has become a core liquidity provider to the entire crypto ecosystem — including miners, exchanges, project developers, and founders — and to the new crypto asset investor base of VCs, crypto funds, hedge funds, and family offices all around the world,” said Circle in the blog post.
The company also says that despite the difficulties of 2018 brought about by the crypto winter, its customer retention remained strong as pointed out in the facts below:
- Over 30 percent of the company’s customers buy unique collections, often on an ongoing basis
- Over 30 percent of purchases on Circle Invest are recurring
- Recurring trade volume is in doubling mode since September
The company made significant inroads last year after onboarding a record number of new institutional clients and grew the trading operations to 24/7 coverage in major crypto markets such as the U.S, Europe, and Asia.
With regards to the new year, the company said, “Looking to 2019, anticipate improved account and asset integration across Circle products, and expect Invest to evolve toward crypto utility and to enable powerful ways for customers to use their holdings beyond investing alone.”
DX.Exchange partners with Nasdaq to sell tokenized shares of major tech companies
The Nasdaq-powered startup DX.Exchange announced on Jan. 3 that it is planning to allow its clients to indirectly buy shares of major listed companies on its token-based platform.
The Estonian-based startup will launch its trading platform on Jan. 7, giving is clients access to buy crypto tokens representing shares of tech firms traded on the Nasdaq stock exchange – the second largest stock market in the world by market capitalization and only behind the New York Stock Exchange (NYSE).
The startup’s clients can buy the tokenized shares using cryptocurrencies or fiat currencies. DX.Exchange will make use of Nasdaq’s engine to facilitate the trading of digital securities and curb market manipulation.
Speaking to CoinDesk, the COO of the startup Amedeo Moscato said the customers will not be directly buying any shares but rather, representations of company shares in the form of tokens.
“Henceforth, when they become a token holder, they own stocks or portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth,” he said.
The startup has an agreement with MPS Marketplace Securities Ltd. – the company that will actually buy real-world stocks based on customer demand and generates ERC-20 tokens to mimic the shares.
The MPS is licensed by Cyprus Securities and Exchange Commission while DX.Exchange falls under the supervision of the European Union.
MPS will for now only purchase the shares in a few select tech companies that include AlphaBet, Apple, Amazon.com, Baidu, Facebook, Intel Corporation, Microsoft Corporation, Netflix, Nvidia, and Tesla.
Binance Launchpad to launch at least one token per month in 2019
Binance’s exclusive platform for token launch, Binance Launchpad is planning to launch one token per month in 2019, starting with Tron’s BitTorrent and Fetch.AI.
Binance, the world’s largest cryptocurrency exchange in the world announced the token sale platform on Jan. 3.
“The Binance Launchpad token launch platform helps blockchain projects raise funds and increase their reach across the crypto ecosystem. We do this by offering a project’s tokens to up to more than 10 million Binance users*. With this platform, we grant our users the chance to be part of potentially game-changing projects,” said Binance in a blog post.
Apart from being a platform for offering tokens, Binance Launchpad will also offer full advisory services for projects that will benefit from the exchange’s insights and experience. The launchpad ensures that the projects focus on developing their products and increasing adoption.
All prospective projects that want to go on the Binance Launchpad first have to go through a stringent review process to determine if they meet Binance’s required standards which are:
- Mature-stage project development
- Readiness for large-scale adoption
- A committed and strong team
- Potential to improve the wider crypto ecosystem
The token sale works on a first come first serve basis where users can buy a certain amount of each project’s tokens.
“Each user can contribute up to a certain maximum amount in each token sale round — an amount that will vary from project to project — to give more users a chance to participate in each sale. The rates of exchange for the token sale will be locked in usually the day prior or on the day of each token sale, and locked-in rates for each session will be announced promptly,” said Binance.
New York creates a crypto task force
Assembly Member Clyde Vanel published a Facebook post on Jan. 2 stating that New York became the first state in the U.S. to set up a “cryptocurrency task force to study how to properly regulate, define, and use cryptocurrency.”
Governor Andrew Cuomo signed into law The Digital Currency Study Bill last week, setting in motion the creation of a task team consisting of members appointed by the Governor, Senate, and Assembly.
The task force will be made up various stakeholders including technologists, consumers, institutional and small investors, academics, and large and small blockchain enterprises. The panel has until Dec. 15, 2020, to submit a report focusing on digital currency, cryptocurrencies, and blockchain technology.
Assemblyman Vanel who serves as Chair of Subcommittee on Internet and New Technologies said, “New York leads the country in finance. We will also lead in proper fintech regulation. The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.”
Vanel said that there were several instances of cryptocurrency exchanges getting hacked in the early days and resulted in people losing their holdings. In response to these compromises, the New York State Department of Financial Services launched the controversial BitLicense to protect New Yorkers on exchanges.
“Cryptocurrencies and blockchain technology will, without a doubt, greatly impact finance and many other industries across the globe for years to come. New York’s cryptocurrency task force – the first of its kind in the nation – shows how our state is leading the way in studying and understanding these technologies to ensure they can thrive in a responsible and effective way, further solidifying New York’s position as a global hub for smart innovation,” said Julie Samuels, the Executive Director of Tech: NYC.
TrueUSD Stablecoin Issuer lands former Coinbase executive
Vaishali Mehta, a former senior compliance manager at Coinbase from November 2017 to November 2018 has left the exchange to settle at TrustToken as the firm’s head of compliance, according to her LinkedIn profile.
The hire was confirmed by TrustToken, the issuer of the TrueUSD stablecoin. This shows great potential for the young market if employees can switch jobs from a company as big as Coinbase to settle at smaller startups.
Coinbase has lost a number of people to several startups. In October, Adam White, the fifth-ever employer of the cryptocurrency exchange joined Bakkt – a crypto arm of the Intercontinental Exchange (ICE) – to assume the role of Chief Operating Officer.
Mike Lempres, a former chief policy officer at Coinbase left the company to join venture capital firm Andreessen Horowitz in which he is an investor.
TrustToken had a busy year in 2017. After launching its stablecoin, the company raised $20 million in venture funding from investors such as BlockTower Capital, Danhua Capital, Andreessen Horowitz, and more.
At the time of writing, TrueUSD is trading at $1.01 and has a market cap of $207 million.
Promises of the past will drive crypto growth in 2019, says veteran crypto investor
In his annual prediction for 2019, Fred Wilson, the co-founder of Union Square Ventures says that good things are to come in the crypto market.
In his words, he said, “I think we are in the process of finding the bottom on the large, liquid, and lasting crypto-tokens. But I think that process could take much of 2019 to play out. I expect we will see some bullish runs, followed by selling pressures taking us back to retest the lows. I think this bottoming out process will end sometime in 2019 and we will slowly enter a new bullish phase in crypto.”
His bullish prediction rests on the notion that promises made in 2017 will come to fruition this year. He is optimistic that there will be a number of bullish runs during the year.
“I think we are in the process of finding the bottom on the large, liquid, and lasting crypto-tokens. But I think that process could take much of 2019 to play out. I expect we will see some bullish runs, followed by selling pressures taking us back to retest the lows. I think this bottoming out process will end sometime in 2019 and we will slowly enter a new bullish phase in crypto,” he said.
The veteran crypto investor is concerned that the sector could be harmed by “misguided regulators” who will target high-quality projects and slow their growth. He warned that there will be failures from scams, hacks, and more.
“But that is always the case with a new emerging technology that allows anyone to set up shop and get going. Permissionless innovation produces the greatest gains over time but also comes with the inevitable bad actors and actions,” he said.