In this article, we are going to discuss coinbase‘s recent move to a new office in San Francisco (Hi neighbor), the current exchange industry, and Brian’s position on the 2018 bear market.

Nothing should be considered investment or financial advice. Enjoy the ride.

Crypto Exchange Industry

There is about to be a huge market gap once Binance fully blocks U.S. traders in September. Coupled with this, Circle and Poloniex have also decided to move their companies to Bermuda due to regulatory uncertainty in the United States districts. Even companies that allow U.S. investors will still bar certain states from participating, namely New York. With the growing pressure on exchanges to conform or leave, exchanges that stay are soon to explode with new users searching for liquidity.

The first on the list will clearly be Coinbase, one of the largest U.S. based exchanges left on the market. Coinbase is a premier exchange with one of the most widely used crypto to fiat and fiat to crypto trading pair systems. Most recently, the company decided to move to a new office in San Francisco preparing for the upcoming bull market cycle that should spark in the next few years. The entire process took over 18 months for the move which means this has been in the works for a while.

The previous bull run definitely left an impact on the Coinbase team, and made them resolve to build a bigger and better office for their surging company. In addition, Coinbase has over 1 million customers which means there is no rooms for error anymore. With the rest of the exchanges leaving the U.S. market, all the focus for success will be on this company during the next surge in the market. Failure is not an option.

Bear Markets Are Good for Crypto

Previously, Brian Armstrong, the CEO of Coinbase, stated that the bear market was actually a good thing for the industry. The bear market gave companies time to adjust and build infrastructure for the coming cycles. Entering into the 2017 bull run, the growth in the industry was exponential and exchanges could not keep up. Coinbase is taking this new methodology literally by opening up a new office, adding new coins to their platform, hiring a slew of engineers, and building out new networks and regulatory focused partnerships.

Efficiency will be key moving forward for the crypto industry. As the market grows, mistakes and platform crashes will become less acceptable and tolerated. Last market cycle just about every exchange had to completely close sign ups and registrations for new accounts due to the lack of staff and accessibility. Not to mention the platform crashes prevented investors from capitalizing on trades during high volume days resulting in negative user experiences. Although, if these problems are fixed during the bear market to make new users have a better experience in the future, it will be good for the whole industry.

In addition to internal growth, the bear market cleanses the pool of assets and projects separating the long-term companies from the get rich quick schemes thinning the market. Any project that did not survive the most recent bear market did not do a very good job of reserving funds and anticipating the volatility of cryptocurrency. Cleansing the market of older projects continually makes room for new and better projects to come to the top of the investment charts and push adoption to new all time highs.

Nothing should be taken as financial or investment advice. Enjoy the ride.

Robin Lee, the founder and CEO of the Sharia compliant fintech company HelloGold based out of Singapore, says investors should start to hedge into gold as the markets shift. Historically, Bitcoin and the rest of the market should now turn to retrace after their massive gains since April targeting the $8,500 level. Instead of simply shorting your assets into a stablecoin, Robin suggests investors learn to hedge into the gold market to combat standard inflation.

Gold has always been a stable commodity to hedge against any market decline globally or domestic. The main purpose of the gold is to do more than just hold the cash value of your wealth. Traditionally, most investors are 50% cash and 50% investments. Holding cash is not a bad decision, but people could be maximizing their returns by holding a percentage of those cash reserves in gold for the time being as gold has historically out preformed or stayed levek with the rate of inflation on average.

HelloGold Solution

HelloGold (HG) is one solution to this problem for Malaysian investors. Currently, HG has over 100,000 investors utilizing its platform using its first gold investment vehicle product. In the future, the company does want to offer other services or commodities to invest in, but right now they are focused on capitalizing on their recent approval as a Sharia compliant company and product. This basically enables the product to be offered in the Middle East and more specifically, Dubai, the investor hub of the world.

Definition of “Shariah compliant”. An act or activity that complies with the requirements of the Shariah, or Islamic law. The term is often used in the Islamic banking industry as a synonym for “Islamic”—for example, Shariah compliant financing or Shariah compliant investment.

-Islamic Markets

Although HG is surging in adoption, the original purpose of the project was one with a heart felt cause. The main purpose of HG is to offer an investment vehicle to the undeserved populations of the world.

Gold is an incredibly valuable asset to have in your portfolio, regardless of how much money you have to invest.

-Robin Lee

These countries are known to have hyper inflation which can quite literally diminish someone’s life savings over night. This has happened multiple times for countries like Malaysia, Turkey, Venezuela, and many more. The effects of hyper inflation most of the time are life altering for everyone in the country. Companies have to turn to almost any means of trade or exchange and individuals are left with little choice than to work for the rest of their lives to make up for their financial damages. By giving these countries citizens an option to hedge their savings into gold, this could prevent the devastation of hyper inflation on an entire population.

Should Investors Turn to Gold

Robin Lee is the former CFO of the Gold Council which handles one of the largest gold reserves in the world. He has also been apart of the SEC commission of Malaysia for multiple years. It is a safe bet that he knows what he is talking about when he discusses gold. He can be considered an expert on the topic.

Therefore, if Robin thinks now is a good time to hedge into gold, then investors may want to do some research on the topic. Speculatively, the world markets could soon go through a very harsh recession. Since 2008, almost every market around the globe has seen immense growth, and the world wealth levels are at all time highs never seen before in the history of the world. This is great, but how will the crypto market respond when the tides turn? What goes up, will usually come down at some point.

A common belief among the crypto community is that when the market goes south, investors will hedge into Bitcoin and crypto assets as a means to escape the collapsing economy structure. The problem with this line of thinking is, it has never happened. You see, Bitcoin came into existence after the last stock and housing market crash in early 2009. The crypto market has never experienced a global economic melt down, and how it will preform, is pure speculation. Therefore, if the markets decided to turn, it would be wise of most investors to have an “escape plan” for a percentage of your portfolio. Traditionally, this would mean investing in commodities similar to gold, silver, and platinum.

From an economic stand point, Bitcoin should preform the same way as physical commodities, but no one knows. It is basically anyone’s guess at this point, and only time will truly tell how the crypto market fairs during the next global meltdown.

Since the last major bull run, almost every major entrepreneur has commented or formed a stance on blockchain and cryptocurrency. Gary Vee, the CEO of VaynerMedia, is no different in this respect. Previously, Gary was known to be weary of the crypto market and completely bullish on the blockchain movement. To note, Gary admittedly invested in Bitcoin and Ethereum in 2014 himself with a small amount of $25,000.

His most prominent advice to investors and developers in this industry: stay patient.

Along with this message of patience, Gary has made made an example out of people that lost everything investing in the height of the 2017 bull run from FOMO. Additionally, Gary will occasionally quote multiple successful entrepreneurs as well that turned their profits and invested everything into crypto only to lose almost everything in the severe bear market following the December and January surge of 2017 and 2018 respectfully. Although, even with the 10,000 DMs he has of people complaining about this same instance, Gary has a positive outlook these days on the industry.

Gary Vee Likes Blockchain

Ever since Gary started to really learn about the industry and not solely on the price movements of digital assets, his perspective has shifted. In mid 2018, Gary was back promoting blockchain at a convention in Las Vegas, Nevada professing the future of the industry in the macro ways he understood it. Most recently, he was on Innovation and Tech today in March, 2019 speaking on his outlook on the industry.

I am unbelievably bullish on Blockchain technology. I don’t know if Bitcoin or some of the other coins are going to be the currency that wins, but this would be like somebody saying to me, do you believe in the internet?

-Gary Vee

It is known that when Gary starts to discuss things on stage or in public, there is probably a reason behind it. Like his occasional plug for Wine Library, his sneaker line, or simply AI and Voice technology, there is probably a reason Gary is talking more and more about blockchain. The first clear reason would be because it is a hot topic that has plenty of ears turned into it. The second reason could be because he has invested into a project or hedged back into some of the digital assets.

Between the two options, Gary will most likely invest in projects and companies before he directly invests in digital assets. Although, from multiple sources it seems there is no clear record if he has done so at this point in time, mid 2019.

Gary’s Biggest Fears For Blockchain

With the immense power that comes with decentralization, Gary has one main question: Will Russia, China and America Accept Blockchain? Blockchain takes away the leverage these largest countries have in the world over finance, infrastructure, and governance. Countries like Iran are searching to build their own cryptocurrency to get around the hold America has on the Dollar globally.

In addition, countries like America, India, and China are building internal mental laws, as Gary puts it, to support nationalism and promote internal wealth in order to preserve their unions. Ironically, these sentiments are in direct conflict with the basis of the decentralized movement and stand against the overall purpose of blockchain itself. In addition, Europe recently launched their data protection system through GDPR which will be just about useless once a decentralized network is in place.

Gary Discussing Blockchain

To get a better idea of his perspectives, check out this video from 2018 when Gary directly addressed Blockchain and the over arching picture of where he thinks the industry is leading to. His largest concern is the impact blockchain will have in revolutionizing the world from the inside out disrupting multiple countries and their control over the world economy by de-leveraging currency.

Nothing should be considered investment or financial advice. Enjoy the ride.

Ripple never stops growing no matter which way the market is moving. Currently, the XRP token is struggling to maintain steady price levels which is correlated with the rest of the market as Bitcoin retraces. Although, you would not think that with all of the hype around this project.

The company behind the project, Ripple, does not seem to mind the market turbulence at all by continually pushing new partnerships and hiring the best available people on the market. Recently, Ripple bought a share of the company Moneygram which now enables the use of xRapid and other products across all of their clients. On July 19, Moneygram established a partnership with Sentbe which also meant a partnership with Ripple. This partnership made Sentbe, Moneygram’s first virtual agent based in South Korea.

The collaboration between Sentbe – which has accumulated billions of Korean Won worth of transactions as of July 2019 – and MoneyGram aligns with MoneyGram’s goal of providing consumers with an expanded range of digital money transfer options. Sentbe is a financial technology startup based in South Korea, making cross-border person-to-person money transfer easier, faster, and cheaper through innovative technology. Licensed as a financial institution in South Korea, Sentbe strives to provide financial opportunity and equality through disrupting the inertia of traditional finance.

-Yahoo Finance

In short, Sentbe will focus on offering remittances to their client pool by utilizing the xRapid product. Specifically, Sentbe will utilize the product to settle transactions in XRP which is great for bag holders and will boost trade volume inevitability over the long-term.

XRP Is Not Centralized

Besides the recent partnership, there has been a substantial amount of FUD floating around the market. The FUD was concentrated on the question: is the Ripple network centralized.

Previously, since there were limited users using Ripple’s products, the network was technically centralized. Over time, the network has grown through new partnerships, developments, and institutional use. Therefore, the network supporting the XRP token is no longer centralized. For every client that joins the Ripple network, they will usually become a node as well. This continual growth of companies trying to utilize Ripple will ultimately also decentralize the product which they are using making it more safe and secure in the long run.

For those that want to dive in more, check out this site that will show XRP network topology. Currently, there are over 1,000 nodes globally verifying the network and enabling fast and near fee-less payments and money transfers.

Image Via XRPCharts

This is an animation of the over 1,000 nodes currently securing the network. To break it down even further, there is another site that describes the nodes per location with the United States leading in rankings. We are going to check out XRPCharts’ world map to see the placement of nodes around the globe.

As anyone can see, there are plenty of nodes running on the XRP network, and there is very little chance of anyone one group of nodes gaining the network at this time. As the partnerships and use cases continue to grow, the XRP network will get more and more secure providing a nice decentralized layer to near instant and near fee-less international transfer of money.

In this article we are going to discuss the recent Bitcoin price movements, what could be effecting these movements, and why a whale may want to pump the Bitcoin price right now.

Nothing should be considered as financial or Investment advice. Enjoy the ride.

Bitcoin Price Movement

This week, Bitcoin dipped below $10,000 for the first time since mid June. The amazing run Bitcoin has been on since the start of April has lead to almost massive gains for those that bought near the bottom between $3,000 and $4,000 per Bitcoin. Many people believed heavily that Bitcoin would not even surpass the $6,400 dollar resistance level on the way up, but as we saw that was not a problem for the old veteran.

Now, the challenge is for the bulls to keep Bitcoin above $10,000 long enough for the altcoins to pump and support these new prices levels. Currently, altcoins are moving in the wrong direction with many seeing decreases greater than the drop in Bitcoin price. Likewise, the altcoins also refused to pump as much as Bitcoin on the way up.

This decoupling of the direct movement for Bitcoin and the altcoins has lead many bag holders confused and frustrated as the market moves without reaction from many projects.

Bitcoin Back to $10,000

Most importantly, Bitcoin started to fall organically as buy pressure subsided over the past several weeks. Out of not where, a large whale made an outlandish purchase on Binance that moved the price around $1,000 pushing Bitcoin back over the $10,000 level. This move was dramatic, because a majority of the market expected Bitcoin to continually retrace downward. This movement upward seems to only be predicted by the Bitcoin Longs.

Traditionally, when there is a surplus of investors holding one position over the other, there will be a sharp price movement in the other direction forcing liquidation. This liquidation of positions enables the exchanges to capture investors assets and burn through some of the market, churn and burn tactics. This creates room for new investors, moves the market, and increase volume short-term.

Outside Speculation From Congressional Hearings

It would not be far-fetched to assume the congressional hearing over Facebook’s proposed digital asset, Libra, had a impact to the recent Bitcoin price movement. Ironically, the discussion on Libra has directly lead to congress discussing and projecting their opinions over all crypto assets, namely Bitcoin. Due to this and the fact that multiple representatives have praised Bitcoin’s immutability, utility, and social impact, new investors could be actively entering the market creating a sharp decrease in OTC supply once again.

Any large investor looking to buy Bitcoin would naturally try to obtain Bitcoin over the counter as to not move the market during the purchase. This enables the investor to buy their Bitcoin in bulk and preferably at market price. When there is a large purchase on an exchange, they run the chance of inflating the price during the purchase and paying more than they originally intended.

Market Manipulation

The other side of the coin could negate everything stated above. There is still prevalent market manipulation causing a majority of the price movements in the industry. A whale could easily be propping up the market to get new money to FOMO into cryptocurrency once again. This would effectively inflate prices to new highs as seen now and set the market up for another flash crash. Investors should be very weary if the market position moves to majority short on Bitfinex and Bitmex.

This purpose of a movement on the market like this could be for multiple reasons:

  • Inflate prices to sell off a large amount of BTC at higher prices
  • Pump the market to increase net worth and their portfolio leverage. Think debt to equity ratios and lending profitability
  • Setting up for a flash crash to bring altcoins and potentially Bitcoin to new all time lows by hyper inflating the price short term

Other reasons for keeping the BTC price up could include:

  • Keep Bitcoin price high for trading fees and exchange profitability
  • Miners hoarding supply to artificially increase price and drive demand to increase mining profitability
  • Organized pumps to create speculative healthy market periods during congressional meetings

Whatever the reasoning behind the constant pump and level support, these movements are not natural. Given Bitcoin historically experiences wild swings of volatility, investors should not FOMO into the market. The best course of action, speculatively, is to continually dollar cost average in and ride out the waves.

In this article we are going to cover some of the enterprise developments from a Deloitte report, the Congress hearing on Libra, and I will leave you with an amazing video to watch from one of the congressmen at the hearing.

Nothing should be considered financial or investment advice. Enjoy the ride.

Enterprises Enter Blockchain

Most investors in the market will already know about the big names similar to IBM, Microsoft, Facebook, and Amazon all researching and developing on Blockchain tech. Although, from the bigger fish’s influence, other enterprises around the world are starting to catch on.

Based on a Global Blockchain Report for 2019 from Deloitte, the industry is growing faster than before. More companies are finding utility for blockchain technology, and 53% of companies surveyed now see blockchain as a vital part of their business from the same 43% a year prior.

For reference, the report had approximately 1,400 companies surveyed across 12 countries and 11 languages to finalize their findings. The top 5 industries currently surging and using this new tech are:

  1. Technology and Media
  2. Financial Services
  3. Manufacturing
  4. Retail, Wholesale, and distribution
  5. Professional Services

The top countries with companies that are looking to invest heavily into the technology with $10 million USD or more over the next 12 months are ranked:

  1. Luxembourg at 41% of companies surveyed
  2. Switzerland at 33% of companies surveyed
  3. Germany at 31% of companies surveyed
  4. UK and U.S. tied for 18% of companies surveyed

Although, one of the largest hindrances for this space is still the continual lack of regulatory clarity, and the difficulty to maintain compliance across all industries and borders. According to Deloitte’s pool of 1,400 companies, the largest barriers of entry for this industry are:

  1. Regulatory Issues (as expected)
  2. Implementing, replacing, or adapting existing legacy systems
  3. Potential Security threats

Even Twitters were taking to posting with some of this data as seen below.

Clearly, companies are moving into blockchain at a faster pace then previously in 2018. If 2019 and 2020 continue to swing up in digital asset prices and projects launch their main nets with scalibility solutions, we could potentially see another exponential growth cycle in early to mid 2020 that will shake even the traditional market frame.

Congress Discussing Facebook’s Libra Project

All over the market and in the news, people are reporting on the Facebook congressional hearing that took place today. To the surprise of many, most congressmen and women are open to learning about Libra, cryptocurrency, and the general purpose of digital assets. Some speakers have even gone as far as stating that Bitcoin is unstoppable and congress needs to jump on the train before it takes off.

Whether we want it or not, change is here. Digital currencies are here.

– Congressman McHenry

Other notable speeches quoted calling the altcoin market, a group of “shitcoins” with Bitcoin being the only legitimate candidate. This is common slang among the crypto community, but probably should not be said during a congressional hearing even to make a point. Although, most investors loved this and viewed it as breaching the invisible fourth wall standing between reality of the market and fictional congress utopia of understanding.

Tom Emmer Disposes Congress Foolery

Out of all the speeches given, one did stand out to myself and the Reddit community. Tom Emmer eloquently defended the cause for Bitcoin, condemned congresses lack of clarity on the market, and at the same time defended learning about Libra in an innocent way. Check out the video and let me know what you think in the comments below.



The crypto market never disappoints on the roller coaster of emotions it provides. I think most investors are going to go through withdraws once cryptocurrency matures in a few years and the price movements stabilize.

For this article, I want to discuss some the atlcoin prices currently in the market, what you might want to load up on (speculatively), and what could be coming up for the market.

Nothing should be considered investment or financial advice. Enjoy the ride.

Crypto Prices

Currently, the prices across the market are looking nice and red. Most investors probably cringe at this site, but the veterans know this is when you make the most money. There is tons of buying potential across the market letting people hedge into projects at near ICO prices. Specifically, let’s take a look at some of the projects investors might want to focus on during this dip.

Side note, if you are interested in what other people are targeting check out this reddit post for some laughs and potential projects that are not mentioned here.

Ethereum

Ethereum or ETH is a classic project with loads of potential right around the corner. Remember, ETH 2.0 is more than likely less than a year from being implemented. Once this takes place, there will be a drastic cut in supply entering the market, and a decrease in sell pressure as users start to stake their minimum 32 Ethereum on nodes to secure the network. Ethereum is always a good speculative hodl since this coin has massive first mover advantage, historical support, and plenty of developers around the world supporting the network.

Prices to enter this coin would have to be around $150 ~ $170 USD. Anything less than that would be a huge buy signal and free money in the long-term for smart hodlers.

Binance Coin

Binance Coin or BNB is another market favorite that is currently having a massive correction. Down almost 30% from its recent highs, BNB is a stable coin that should increase in use cases, be utilized on the Binance Dex, and have a continual decrease in supply from the Binance platform’s quarterly token burns. This asset is more risky then most completely decentralized digital assets due to its close ties with an exchange (think Mt. Gox), but has proven to yield massive returns in 2018 & 2019 when the rest of the market is barely staying afloat.

A good speculative price for this asset would be between $22 ~ $24 USD. This coin will more than likely not stay down for long regardless of the rest of the market. It tends to surge without any direct correlation to most of the other digital assets.

Cardano

Cardano or ADA is a crowd favorite across the market. Unlike the other two coins mentioned above, Cardano has yet to break out at almost any point in this year. Sitting currently around $0.05 per coin, this is only 2 cents above ICO price. The reason Cardano is on this list is also due to the important upcoming developments that are targeted to launch in late 2019. Specifically, Shelly should come to fruition enabling staking on the network for the first time. Similar to ETH, this will effectively cause a short lived spike in demand and without a doubt, drastically inflate prices. If not for the tech, speculators could potentially target this release for hedging back out of this asset and capturing gains.

Price wise, this asset is lower than anticipated at this point in the year. Speculatively, this coin could be bought all the way down to the ICO price of $0.03, and investors could reap massive gains once Shelly rolls out in Q4 this year.

People Choice: Monero

Monero or XMR is a privacy focused blockchain with a very large following. This project has withstood many market cycles and continually leads as one of the most widely used and adopted blockchains which utilizes anonymous transactions. The main reason this coin is on our list is simply because of the Reddit post mentioned above. Multiple people have commented that they are hedging into Monero, so with that in mind, we will add it to our list as the people’s choice coin.

For Monero, any price within the $58 ~ $65 range could be considered as heavy speculative buy signals. I am unfamiliar with the price movements of this coin entirely, but it seems a decent range to dollar cost average in at.

Crypto Market Direction

Do not worry if your crypto bags did not make it to the list of coins above. If you are currently in crypto, you are already aware of how the entire market mostly in aggregate. In particular, once Ethereum spikes in price, there will likely be a bull market break out across the entire market.

The market at hand though, is a rough and unpredictable one. We discussed the potential of new all time lows for altcoins if there was not a substantial surge to support the Bitcoin price break out. It seems we could be testing those waters in the next couple of weeks if things do not change. The way the market is looking, Bitcoin could retrace all the way back to $6,000 which was prior resistance on the way up to $10,000.

Most of the market seems to be betting on the $7,000 ~ $8,000 USD levels for Bitcoin, but as we know, the market is usually wrong. For that very reason, it could be assumed that these support levels will fail if the price breaches $9,000 in the coming weeks.

For this article, I want to review the market, review two different popular types of patents issued by the United States, and discuss company rankings for blockchain patents thus far.

Nothing should be considered financial or investment advice. Enjoy the ride.

Crypto Market

The market may be bleeding out, but the news and influence in the space is larger than ever before. clearly, news no longer directly effects the cryptocurrency scene. In terms of market efficiency, one could speculate the crypto industry is a semi-strong efficient market. This is league above the former market where any whisper of news could push the market into wide swings.

In today’s time, this is not necessarily the case. The market movements seem to be uninfluenced by constant FUD or glorified shilling. Trading crypto has become more difficult with the lack of predictability in the market. The general buy and sell levels still exist, but the days of massive 10x gains in a week seem to be long gone.

If you are trading, it would be wise to keep tighter stop losses, and make sure to capture gains quickly. As the price of Bitcoin grows, the time intervals between price deltas diminishes leading to shorter periods to effectively take profits.

Companies Fighting Over Blockchain

Outside of the immediate market, companies are hoarding blockchain patents. When ever any new market emerges, there is always ways to make money besides the traditional start up or speculation. In light of this, large companies will develop and create patents on different products or ideas, regardless if they will utilize them or not.

United States Patents

For those unfamiliar with patents, lets take a moment to go over the two most common types of patents issued by the United States of America.

The first type of patent is called a utility patent. A utility patent prevents others from manufacturing, selling, using or distributing your invention or product. Like most patents, these can last up to 20 years in some instances. Specifically, utility patents are granted to protect the function or utility of a product from other competitors.

The second patent we will review is a design patent. A design patent can be issued to protect the aesthetics, appearance, design, or shape of a product. Similar to the utility patents, design patents are specifically for new products that are unique and not obvious. Although, if a design patent is filled, the utility of the product is not protected. In addition, these patents last 14 years in most cases, and can be appealed to last longer.

Companies Seek Blockchain Patents

In total, there are around 6 patents the United Stated Patent and Trademark Office (USPTO) can issue. Now that we have that base knowledge of two types of patents, what are companies doing? Well, it is smart for large organizations to issue patents over just about anything they can get their hands on.

Why would they do this? Simply, if a new company comes along and takes a product to market that you own the patent on, you can potentially seize their profits. On top of this, patents can be sold for large sums of money, or can be used as leverage to gain a market advantage over other competitors.

The top company that owns the most blockchain patents currently is none other than IBM. In general, IBM was granted over 9,100 patents in 2018 alone.

The second company behind IBM for the most blockchain patents is Bank of America, followed by MasterCard, Intel, and Alibaba Group. Surprisingly, Microsoft is further down the list than anticipated with their wide range of developers and influence in the space.

What is very odd is the fact that Walmart has more patents on blockchain technology then most of the other companies in America. It is not hard to speculate that Walmart will be looking to utilize these patents in the coming years for more than just supply chain management based on the aggressiveness of Walmart.

In this article, I want to discuss what lending platforms are, how they work, and what to watch out for. Additionally, we are going to dive into the most recent lending platform that potentially exit scammed, Novachain.

Nothing should be considered financial or investment advice. Enjoy the ride.

Bitcoin Lending Platforms

If you are new to the crypto scene then this is an important lesson for you. There was a surge of these lending platforms that really started to show up in late 2017 and early 2018. A lending platform is a business model where investors buy out tokens, lend them back to the same company as the market makers, and expect to get a residual passive income for the staked tokens over time.

In simple terms, people invest in a company and receive tokens for it like any other ICO or token sale. Then, they lock the tokens into the platform provided by the same company. The structure of locking your tokens up, then enables you for interest or passive income based off of the amount of tokens that are staked. The only problem is, most of the platforms that were even functional would only payout in the native token of the platform. This means there was almost zero liquidity for your interest and tokens since they were not traded on any major external exchange.

NovaLend or NovaChain

The formerly known lending platform, NovaLend, rebranded in mid 2018 to the now known company, NovaChain. The core team decided to change the name in order to get away from the negative sentiment of lending platforms and break into the trading bot market.

Do not be confused, NovaChain started as a lending platform. After a failed launch and troubled attempts to get the project running in the intense bear market of 2018, the project rebranded and changed direction. It was a great decision by the team, because the price of the token went from a mere $0.02 to around $1.50 in a few months after the shift. This was partially due to the lack of liquidity on sell orders and lacking an external exchange system.

Following the shift and success of the automatic trading bots, NovaChain decided to try their luck at producing a lottery game on their native platform. Novalitto was the name where players could gamble away crypto on a provably fair system through smart contracts on the Ethereum Blockchain. This project was short lived and soon they turned their full attention to passive income from more trading bots due to lack of interest in the gambling games.

NovaChain in 2019

Thus far in 2019, Novachain was off to a decent start. I actually kept up with their telegram channel and know many investors that had been with the project since its infancy. Throughout the dead heat of the bear market, the developers and team never showed signed of exit scamming, quitting the project, or wanting to run away with the investors money. They put tons of time into developing their platform and building out not only rigorous trading algorithms, but also ecstatically appealing dashboards.

Their newest launch was called the REX trading bot that was supposed to have higher yields or returns over time accompanied with more consistent trading across multiple exchanges. These bots were linked to Binance, Bittrex, Huobi, and many other top exchanges providing adequate liquidity. One other achievement was also the addition of an external exchange for trading the Novachain tokens that were earned over time.

Novachain Exit Scam

With all of this development and hard work paying off, there is no clear signs for why the team would exit scam at this stage in the game. The official telegram channel reads:

Dear Novachain Community

We were forced to close all telegram channels in order to create new accounts for.the future use we will communicate all the new channels here so stay tuned!

And no we did not exit scam we are here to stay!

Your Novachain Team

-Novachain telegram channel

If the team were to have exit scammed, they would have done it in 2018 after they had received the money. There was absolutely zero incentive for the team to spend over a year of their time building a well working product with design in mind to simply close shop. Especially with Bitcoin surging and the market recovering at this point.

Novachain Did Not Exit Scam?

This leads me to my next conclusion and suspicion that Novachain did not exit scam and simply were hacked. The other telegram message on their official page reads:

Dear Novachain Community,

In order to apply a full restore we need to shutdown all our servers to be able to perform the full backup restore.

We have lost all our credentials from the hack, in order to be safe we need to change everything we had to be able to execute a new installation with new credentials.

We wil keep you posted on the progress on our official announcement channel.

Thank you for your patience,
Your NOVACHAIN Team

-Novachain Telegram Channel

Now, there is no proof that the team did not exit scam, and obviously no proof currently if they did. The only thing investors are left with is their last messages and the people that are connected with the internal team running the show.

The only other people that are being put to the test are the Youtubers that helped promote the product and platform. It is my full belief that none of the Youtubers that I have found meant any harm or had any reason to believe the platform would shut down.

Regardless of what did happen, there has been nearly no lending platforms that have successfully launched and provided what they claim they could. Let this be a stern lesson to all of the newer investors in this space, stay away from any type of lending platform, passive ROI structure, or traditional interest based staking away from your own wallets. Protect your crypto and make sure it is always safe, with you.

Crypto is once again top of the newsreels with countries all over the world starting to eye the price. Specifically, China has begun to build their own cryptocurrency for internal payment settlements, friction-less transfers, and daily transactions. Russia is not too far behind looking to build a similar project to potentially replace their foreign reserves similar to China.

In other news, Libra has been halted as Facebook seems to be facing unforeseen scrutiny from Congress. In light of this, Donald Trump even tweeted that if Facebook wants to become a bank, they will have to do it the traditional way. Additionally, he threw a bone to cryptocurrencys, namely Bitcoin, stating that they are thin air and worthless essentially. Little does Trump know, this was a huge buy signal for many investors.

Obviously, Trump is not wrong about the crime, but any currency could be used to illicit illegal activities. Just because a small group of people abuse Bitcoin and other cryptos does not mean the purpose of these new financial instruments is just that.

Traditional Finance

In other news, the traditional world is about to get a good indicator for the future of Bitcoin in finance. Bakkt will be launching their Beta testing of the physically settled Bitcoin futures for global use on July 22, 2019. Currently, there are over 30 countries that will be able to trade and speculate on the asset. In particular, these will be Bitcoin futures that are offered, which will open the door to more traditional derivatives down the line.

Let’s remember, Bakkt was projected to launch in December 12, 2018 before the massive dump of the market due to Craig Wright and his accomplices. This will be over 7 months from the initial launch date where we are only getting a closed Beta launch of the platform. The main delay is the ongoing regulatory uncertainty posed by the SEC, CFTC, and accompanying parties.

Robert Hackett, Senior writer for Fortune Magazine, has the right attitude. The launch of Bakkt is not a sprint, its a marathon, although most investors in the space might not treat it as such. It is very important for the entire industry that this platform is launched properly, fully regulated, and gains as much exposure as possible. With the recent launch of Libra, this should speed up the process forcing the U.S. regulatory bodies to come up more concrete solutions.

Traditional Derivatives

There is a large demand for the traditional vehicles like futures and derivatives on this market. For those who are unfamiliar with derivatives, these are the gold mine of large institutional money and financial wealth. Although In the case of Bakkt, there will only currently be two futures contracts enabled in the coming months as stated in their medium post.

Two futures contracts will be listed: 1) A daily settlement bitcoin future, which will enable customers to transact in a same-day market. And 2) a monthly bitcoin futures contract will enable trading in the front month and across the forward pricing curve.

Medium, Kelly Loeffler

Now, this is exciting news, but the real news will come after the launch if Bakkt starts offering widely adopted derivatives.

The key difference between derivatives and futures is that derivatives are financial instruments whose value depends on the value of another underlying asset whereas futures is an agreement, to buy or sell a particular commodity or financial instrument at a predetermined price at a specific date in the future.

Difference Between

This is important, because large investors and institutions heavily rely upon derivatives as well as futures for their trading needs. While futures are great for settling the agreement of price for a specific commodity real time, derivatives offer investors ways to hedge against the market or bet on volatility. Both of these financial instruments will open the doors to new money entering the space and driving Bitcoin closer to the moon than ever.