Market Update: May 1st, 2018

International News

The world’s largest cryptocurrency exchange declared their profits for the first quarter of 2018 and they were big. The company posted $200 Million in profits, while their evaluation has spiked to over $1 billion dollars in less than a year. Considering that Binance Coin (BNB) their current token is alone valued at over $15, the exchange has proven that it can attract significant waves of interested investors. Additionally, considering much of its current trading volume comes from Asia, the largest cryptocurrency trading portion of the world (over 40% of the estimated world’s cryptocurrency trading traffic), Binance is in an excellent spot to continue to benefit from the increasing popularity of cryptocurrency trading.

One of the elements of Binance that had users frustrated in the past was that they were allowed to purchase cryptocurrencies with fees that weren’t yet added on, sometimes doing so without recognizing the full extent of the additional (up to 8 decimal points) yet minimal fees in that cryptocurrency that weren’t shown prior and would be required to make the purchase. The frustrating part would be that you weren’t be unable to sell to certain decimal places worth of coins, leaving you with what is considered “dust,” or past purchases of cryptocurrencies too small to be sold. Binance has solved this problem by not allowing such purchases, and settling all past dust into usable Binance Coin on the exchange.

As CEO Zhao Changpeng continues to navigate this everchanging cryptocurrency environment, it will be interesting to see how the Binance addresses legality concerns, such as getting licensed with US regulatory agencies, when the time comes. On top of all the above Binance has established a $15 million investment pact with Bermuda, the British Overseas Territory in North America, through their Premier and Minister of Finance David Burt. Bermuda hopes to become a blockchain hub, and Binance hopes to continue the development of its brand and international use of exchangeable cryptocurrency.

 

US News

In the United States, many positive reviews have poured in from investment managers across the country in relation to certain cryptocurrency projects. As incoming blockchain projects see the need for legitimacy in the fast and likely soon to be regulated US cryptocurrency markets, currently existing emerging blockchain technology projects that have navigated the United States restrictions up to this point stand to be in an excellent position. Projects such as EOSIO (EOS) have been strongly reviewed as providers of a better system for quicker processing and signaling of transactions on the blockchain, an extremely lucrative concept to those that can implement their framework. For more information on that project reference our previous article on EOS Dawn 3.0.

NASDAQ’s correspondence has shown peaked interest in becoming a legalized exchange for cryptocurrency once the full regulation scale of cryptocurrencies is completed. While the SEC continues to uphold the classification of cryptocurrency as a commodity, the NASDAQ is in an experienced position to act as an exchange in the developing cryptocurrency market, and as one that could benefit from the implementation of blockchain technology to other elements of their exchange.

 

Price Snapshot and Look Ahead

April has been an eventful month, with Bitcoin nearly eclipsing the key $10,000 level before retracing towards key support around $8500.  The overall marketcap for the sector remains above $400B which is a positive.  Market-wide volume seems to have sustained itself over the past two weeks but not enough to break through to $500B.  At the current price of Bitcoin around $9,000 we are cautiously leaning towards selling and rebuying around the support 2 level below of $8,000.  If you’re looking for an entry point this is where we would look for buyers to come in to fuel another bull run over $10,000.  Check back Friday for an in depth review of some of the most popular alt-coins printing All-Time-High’s!

 

The next large-scale positive media event for blockchain projects will be the annual Consensus NYC taking place in the Big Apple from May 14-16th. It will be the who’s who of blockchain technology development.  If Bitcoin does slip to the $8,000 support level by then we anticipate plenty of positive hype leading into the weekend to spur buyers next week! 

 Finally on the home front, the STL team will be opening up registrations to our weekly newsletter next week.  If you’re interested in a market snapshot like delivered directly to your inbox we invite you to sign up!  Link will be posted at the top of the homepage on May 14th to coincide with the kickoff of Consensus!