Bitcoin price started a short term rebound and broke the $3,400 resistance level against the US Dollar.This week’s followed major bearish trend line was breached with resistance at $3,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is now approaching a few important resistances, including $3,475, $3,500 and $3,516.Bitcoin price recovered nicely from the $3,340 swing low against the US Dollar. However, BTC price is still below a few key hurdles near the $3,475 and $3,500 levels.Bitcoin Price AnalysisRecently, bitcoin price formed a decent support near $3,360 against the US Dollar. The BTC/USD pair started a short term rebound and moved above the $3,400 resistance zone. Buyers managed to overcome selling pressure above the $3,400 and $3,420 pivot levels. The price climbed above the 50% Fib retracement level of the last slide from the $3,560 high to $3,345 swing low. It opened the doors for more gains and the price spiked above $3,450 and the 100 hourly simple moving average.More importantly, this week’s followed major bearish trend line was breached with resistance at $3,440 on the hourly chart of the BTC/USD pair. The pair tested the $3,475 resistance area, where sellers emerged. Besides, the 61.8% Fib retracement level of the last slide from the $3,560 high to $3,345 swing low acted as a resistance. The price is currently consolidating gains near $3,440 and the 100 hourly SMA. On the downside, there is a decent support formed near $3,420. There is also a connecting bullish trend line formed with support at $3,410 on the same chart. Therefore, buyers could protect declines below $3,400 if there is a downside correction.Looking at the chart, bitcoin price made a nice upward move above $3,400. Having said that, the price is still trading below a few important resistances, including $3,475, $3,500 and $3,516. Unless there is a daily close above $3,516, the price remains at a risk of a fresh drop.Technical indicatorsHourly MACD – The MACD is likely to move back in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.Major Support Level – $3,410Major Resistance Level – $3,516
Archives for January 30, 2019
The total crypto market cap rebounded nicely and tested the $114.00B resistance level.Bitcoin cash is up more than 7% and it broke the $115 and $116 resistance levels.EOS price is gaining momentum and it could test the $2.40 resistance level.Stellar (XLM) is correcting higher, with resistances near the $0.0900 and $0.0940 levels.Tron (TRX) is currently flat above the $0.0270 support level, with range moves.The crypto market started a solid rebound from lows. Bitcoin (BTC), BCH, Ethereum, EOS, ripple, stellar (XLM), tron (TRX) and other major altcoins gained momentum, with positive moves.Bitcoin Cash Price AnalysisBitcoin cash price formed a solid support near the $110 level and later corrected higher against the US Dollar. BCH/USD gained traction and broke $115 and $116 resistance levels. The price is currently trading just below the $120 resistance level.Going forward, there are chances of more gains above the $120 and $122 resistance levels. On the downside, the main supports are $116 and $115.EOS, Stellar (XLM) and Tron (TRX) Price AnalysisEOS price tested the $2.20 support level recently and later started a decent recovery. It broke the $2.25 and $2.30 resistance levels, and now it seems like the price might climb towards the $2.40 resistance level.Stellar price broke the $0.1000 support level recently and moved into a bearish zone. XLM tested the $0.0820 support and it is currently correcting higher. However, there are many hurdles for buyers on the upside such as $0.0900 and $0.0940.Tron price is currently consolidating above the $0.0270 support level. TRX needs to surpass the $0.0280 and $0.0285 resistance levels to start a fresh upward move. If it fails to move pas $0.0285, there is a risk of a downside move towards the $0.0265 support level.Looking at the total cryptocurrency market cap hourly chart, there was a solid recovery above the $108.00B and $110.00B resistance levels. The market cap even broke the $112.00B resistance and tested the $114.00B zone, where sellers emerged. In the short term, there could be a downside correction, but there are many supports near $111.00B and $110.00B. Therefore, dips in bitcoin, Ethereum, EOS, ripple, LTC, bitcoin cash, XLM, TRX, and other altcoins remain supported.
Ripple price rallied recently and broke the $0.3000, $0.3150 and $0.3250 resistances against the US dollar.There was a break above two bearish trend lines with resistance near $0.2920 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair traded above the $0.3320 level and it is currently correcting gains towards the $0.3210 support.Ripple price jumped back sharply in the bullish zone against the US Dollar and Bitcoin. XRP/USD is trading with a positive bias and dips remain supported near $0.3200.Ripple Price AnalysisAfter forming a solid support base near $0.2800, ripple price started a strong recovery against the US Dollar. The XRP/USD pair rallied and broke many important resistances such as $0.3000 and $0.3150. Buyers were able to clear the 61.8% Fib retracement level of the slide from the $0.3175 high to $0.2776 low. It opened the doors for more gains and the price settled above $0.3150 plus the 100 hourly simple moving average.More importantly, there was a break above two bearish trend lines with resistance near $0.2920 on the hourly chart of the XRP/USD pair. The pair surpassed the $0.3200 and $0.3250 resistance levels to move into a positive zone. The recent price action was positive above $0.3300 and the price formed a new weekly high at $0.3338. It is currently correcting lower towards the $0.3240 and $0.3210 supports. The 23.6% Fib retracement level of the recent wave from the $0.2827 low to $0.3338 high is near $0.3215 to act as a support. Moreover, there is a connecting bullish trend line in place with support at $0.3210 on the same chart.Looking at the chart, ripple price is placed nicely in an uptrend above the $0.3200 and $0.3210 support levels. There could be a short term downside correction, but the price remains supported above $0.3150. On the upside, the key resistances are $0.3320, $0.3350 and $0.3420 in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD has reduced most of its bullish slope, signaling a downside correction.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently moving lower towards the 70 level.Major Support Level – $0.3210Major Resistance Level – $0.3320
ETH price recovered recently and broke the $105, $106 and $109 resistance levels against the US Dollar.Yesterday’s highlighted important bearish trend line was breached with resistance near $106 on the hourly chart of ETH/USD (data feed via Kraken).The pair is now placed nicely above the $106 level and it could recover towards the $113 or $114 level.Ethereum price started a short term correction against the US Dollar and bitcoin. ETH/USD remains supported for a recovery towards the key $114 resistance level in the near term.Ethereum Price AnalysisAfter trading as low as $101, ETH price started trading in a range above $103 against the US Dollar. The ETH/USD pair formed a couple of breakout patterns with resistance near the $105 and $106 levels. Finally, there was an upside move and the price broke the $106 resistance. Buyers pushed the price above the 50% Fib retracement level of the last drop from the $115 swing high to $101 swing. Moreover, the price traded above the $106 level and the 100 hourly simple moving average.Besides, yesterday’s highlighted important bearish trend line was breached with resistance near $106 on the hourly chart of ETH/USD. The pair spiked above the $109 and $110 resistance levels and later corrected lower. It is currently testing the 23.6% Fib retracement level of the recent wave from the $103 low to $111 high. However, there are many supports on the downside near the $107 and $106 levels. More importantly, the 100 hourly simple moving average is near the $107 level. The 50% Fib retracement level of the recent wave from the $103 low to $111 high is also near $107.Looking at the chart, ETH price may dip a few points in the short term, but it remains supported near $107 and $106. It seems like the price could recover towards the $113 and $114 resistances, where sellers are likely to emerge.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is about to move back in the bearish zone.Hourly RSI – The RSI for ETH/USD is placed nicely above the 60 level, with positive signs.Major Support Level – $107Major Resistance Level – $114
The NEM Foundation, a community-funded nonprofit established to promote the NEM blockchain, is planning layoffs across its entire 150-person staff in the wake of severe budget cuts and ahead of an imminent restructuring, CoinDesk has learned.
The newly elected president of the NEM Foundation, Alex Tinsman, told CoinDesk Wednesday the Singapore-based NEM Foundation now intends to submit a funding request to the NEM community fund for 160 million tokens (worth roughly $7.5 million), money that would be used to rescue the organization from the verge of bankruptcy.
NEM tokens are listed under the XEM ticker with a circulating supply of 9 billion, according to CoinMarketCap. At press time, XEM is the world’s 18th largest cryptocurrency by market capitalization.
“Basically we realized we had a month to operate, due to the mismanagement of the previous governance council,” Tinsman, who took over the non-profit in January, said in an interview.
As a result, the foundation’s 202 members – people who undergo identity checks and pay an annual $50 membership fee – will be asked to vote on the funding request in February after it’s published on Thursday. The number of layoffs will be determined by how much funding the community approves, Tinsman said.
NEM’s XEM token launched in 2015 under the guidance of former foundation president Lon Wong. The cryptocurrency is primarily used for transaction and service fees on the NEM blockchain. The full launch of the platform’s native engine software, called Catapult, is scheduled for June 2019. In the meantime, NEM pilot projects have often focused on use cases such as voting.
Indeed, Tinsman herself was elected in a process that used NEM’s platform.
Tinsman said the foundation spent roughly 80 million XEM between December 2017 and January 2019, primarily on marketing. (Wong did not respond to requests for comment about the foundation’s spending.)
“We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet,” Tinsman said.
According to a longtime NEM user, a developer who asked to stay anonymous because he worked directly with departed leadership, Wong faltered when he used his visibility at the foundation to promote “sketchy” initial coin offerings such as Ecobit and ProximaX.
The ProximaX token sale reportedly raised more than $33 million in 2018 and the company’s website lists Wong as the CEO. The anonymous developer said “the community felt this was a breach of faith,” adding there is still a great deal of work to be done in order to encourage developers like himself to actually use the blockchain.
“There’s not a whole lot of people working on this platform. Even though it’s easy, the community isn’t really there unless you go to Japan,” the developer said. “We need more developer traction on this platform.”
Tinsman, a former communications executive at the foundation before 148 registered members elected her to lead the nonprofit, is embarking on a much more disciplined roadmap for 2019.
She said teams will be given specific budgets and required to perform more open-source documentation of their progress making tools for the NEM ecosystem.
“The community will also be voting on these [funding requests] and which ones we should be moving forward with,” she said.
Tinsman further plans to monetize the foundation’s activities in 2019, including enterprise training and affiliate marketing, to reduce the nonprofit’s reliance on community grants.
She described the restructuring as a “positive step,” adding:
“It’s really exciting to me that NEM has a strong suite of tools and a community that is moving forward to change the future. And now we can support them in meaningful ways.”
NEM conference booth image via the NEM Foundation
A new token backed one-to-one with bitcoin is now live on the ethereum blockchain.
“Wrapped BTC” (WBTC) officially launched its ERC-20 token Wednesday evening. The project was first unveiled in October as a joint initiative between decentralized exchange startups Kyber Network and Republic Protocol, as well as cryptocurrency custody company BitGo.
As stated on the project’s website, the aim of WBTC is to bring “greater liquidity to the ethereum ecosystem including decentralized exchanges and financial applications.”
At the time, BitGo CTO Benedict Chan described WBTC as possessing both “the stability of bitcoin and the flexibility of ethereum,” likening the new crypto asset to traditional bank notes (the kind that were once redeemable for gold). While volatile compared to the U.S. dollar, bitcoin is the most liquid and stable of cryptocurrencies, he noted. While volatile compared to the U.S. dollar, bitcoin is the most liquid and stable of cryptocurrencies with the highest market capitalization, he noted.
Now listed on cryptocurrency market data site CoinMarketCap, as of early Wednesday evening there was a reported 72.4214 WBTC on the ethereum network, slightly over-collateralized with 72.4216 BTC (roughly $250,000) locked in custody on the bitcoin blockchain.
Leveraging a technology known as “atomic swaps” to facilitate cross-chain cryptocurrency trades, users on ethereum can request WBTC from certified “merchants” after undergoing necessary anti-money-laundering and know-your-customer (AML/KYC) identification procedures.
Playing a key role in the exchange and liquidation of new WBTC tokens, merchants are defined in the technology’s white paper as “the institution or party to which wrapped tokens will be minted to and burnt from.”
According to the WBTC team, there are presently eight merchants to facilitate conversion between WBTC and BTC. These include: AirSwap, Dharma, ETHfinex, GOPAX, Kyber Network, Prycto, Ren and Set Protocol.
How users receive WBTC tokens. Image courtesy of Kyber Protocol.
Traded on exchanges
In addition, a number of cryptocurrency exchanges have already procured part of the initial WBTC inventory and will be able to support its live supply directly on their respective platforms, according to a WBTC press release.
As well, several financially-focussed decentralized applications on ethereum, including bZx, Compound and dYdX, will allow “immediate usage” of the new token.
As such, despite the concern expressed by the creator of ethereum, Vitalik Buterin, on Twitter over the centralized nature of this token swap system, the press release states:
“The fundamental design of WBTC and the continuing commitment of all member to openness will form the essential building blocks for a transparent process framework and governance structure … WBTC will remain a firmly community-led initiative.”
A $5 National Gold Bank Note issued by the First National Gold Bank of San Francisco, California, image via Wikimedia Commons.
Even with the declining price of Bitcoin, the “9/11 papers hacker group” has received a significant sum of the flagship cryptocurrency. At current prices, their address has received more than $42,000. In case you missed it, the hackers claim to have acquired a treasure trove of damning documents. Documents related to the most notable foreign terrorist attack on US soil ever (those of September 11, 2001, for our younger and non-US readers) are only one part of the library.
9/11 Papers Hacker Group is Financially Motivated
The hackers first requested that insurance companies and others they claim are incriminated in the documents to pay them off. They have stated multiple times that they are out for money. For one thing, they’re not Americans. The 9/11 attacks do not have the same public interest to them as it might to an American group of hackers. For another, their goal is to enrich themselves. That the public will allegedly have a great deal more information about the 9/11 attacks, as a result, is seen as a side-effect.
Failing that, they leaned on the public to provide upwards of $1 million in Bitcoin for the full release. Peeling the layers like an onion, each new donation takes the public closer to whatever revelations may be in store.
Banned from social media sites in quick succession, they retreated to the blockchain-based Steem platform. Steemit.com, the most popular portal to the Steem blockchain, later banned them from the site.
Impossible to Fully Censor Content on Steem
Steem is not a censorable platform, however. An alternative version of Steemit called Busy.org has yet to ban their posts. In addition to Bitcoin donation, the relative popularity of their posts has earned them thousands of dollars worth of Steem.
A few weeks back, they released the second tier of documents.
Hello, world. As you’re well-aware, we designed a compensation plan that would allow for the public crowd-funding of our organisation in order to permit the public disclosure of our “9/11 Papers” in the interest of the public. Part of this plan was to create a tiered escalation plan that would result in multiple layers and milestones (which we’re calling checkpoints) to ensure the powers at be are being properly bent over a barrel. We’ve said it before, and we’ll say it again: we’re financially motivated, and you (the public) has spoken to us in our language (internet money, specifically Bitcoin). Remember, continuing to fund our wallet will continue to keep us motivated to help break the truth to the world by open-sourcing what we’re calling the “9/11 Papers”. To create a bit more buzz, we’ve decided to continue forward and release the decryption key for Layer 2.
Donations have continued to flow in, sometimes in excess of 1 BTC. One donation was over 3 coins.
Donation amounts and cash-outs seem to have tapered off a bit. The last donation was in the amount of around $35. The last time they withdrew funds from the wallet was a couple of days ago for just over $300. The money went to a different address than the previous withdrawal, which went to 38xFTqA28c62Lpjcce8hpDGgbk1huwyiY1. They appear to be practicing half-decent financial hygiene by not re-using addresses outside of their stated donation address.
Censorship Breeds Interest
The response of mainstream media sites to the hackers’ publicity campaign seems to have fueled interest within the general public. Steemit.com never provided any reasoning for their banning of @thedarkoverlord. As we speculated in our article on the subject, there are some things within the Steemit terms of service that provide for such a ban:
The Steemit terms of service, like most social media sites, has a “god clause” which allows them to terminate users whenever they feel like it […] However, TheDarkOverlord’s posts may violate the terms of service clause regarding illegal activity […]
One particularly interesting aspect of this doxxing is that no one has yet come forward to fully debunk the claims made, or cited inaccuracies in the documents already released. As journalists, we have to ponder the possibility that they’re telling the truth.
Featured Image from AP Photo / Kelley Sane
A financial professional paid $10 to his bank for making more than six saving withdrawals. Later, he admitted that using Bitcoin could have been cheaper.Short the BankersPat Chirchirillo, a financial advisor at Philadelphia-based McAdam Financial, found a 3,233% different between the cost of withdrawals in banks and Bitcoin. From the look of it, he overreached his withdrawal limits, per a Federal rule called Regulation D which limits per saving account withdrawals by month. As a result, his bank – Bank of America – charged him a $10 fee as an act to ensure that Chirchirillo uses his savings account for just saving.However, he took the opportunity to compare the banking system with cryptocurrencies like Bitcoin.“Bank of America just charged 10 dollars because I made more than [six] transfers between savings and checking this month,” tweeted Chirchirillo. “[Six] transfers with crypto would cost about 30 cents. That’s 3,233% more expensive.”Bank of America just charged 10 dollars because I made more than 6 transfers between savings and checking this month. 6 transfers with crypto would cost about 30 cents. That’s 3,233% more expensiveLong Bitcoin, short the Bankers @APompliano #disruption #RentSeekingMiddlemen— Pat Chirchirillo (@PatChirchirillo) January 30, 2019“Long Bitcoin, short the Bankers,” he added.Comparing Regulation D with Cryptocurrency ProtocolsRegulation D is a way of the Fed to ensure that people practice savings more than spendings. The protocol also warrants that banks have a proper amount of currency reserves. This law applies only to people with savings accounts and excuses checking account holders. Like always, breaking it lands a penalty/fee on the concerned savings account holder.On the other hand, a common cryptocurrency protocol such as that of bitcoin does not cater to the Federal securities laws. Its entire purpose is to settle and record payments over a decentralized network, using a native token which can be Bitcoin, Ether, XRP, or even a stablecoin. In it, the transactions are entirely peer-to-peer. For every settlement that occurs in a cryptocurrency network, users voluntarily add a fee for miners to speed-up their transaction confirmation time.Also, in cryptocurrency networks, each transaction consists of inputs which determine how much resources it would require to get verified. For instance, sending 1 Bitcoin which has four inputs would require fee than sending 1 Bitcoin which has one input.75 Bitcoin Transactions in $10In retrospective, cryptocurrencies are much more accessible than banks. Using a bitcoin network, it would take Chirchirillo as low as 75 transactions to pay a $10 fee. In the case of banks, as mentioned above, it just took six.Banks are still considered too expensive. It is never a piece of good news when 1.7 billion people still do not have access to essential financial services. The Financial Clinic, a business coaching nonprofit, recommended its customers to rely on alternative payment mechanism than banks. The clinic’s executive director Mae Watson Grote had told New York Times in 2014:“When I sat down and looked at my clients’ bank statements and saw that they had paid $110 in fees, I often ended up sending them to the check casher instead.”Only now, in 2019, a financial advisor sent people to cryptocurrencies instead.
This week, prominent U.S.-based crypto exchange Gemini revealed it had become the first-ever cryptocurrency exchange and custodian to successfully complete a System and Organization Controls (SOC 2) for Service Organizations Type 1 examination.
However, a survey by CoinDesk of 66 startups has found that the majority say they’ve managed to avoid serious setbacks or revisions to their product roadmap. Of the 45 who responded to the inquiry, 40 gave a generally positive prognosis about the coming year, though many came with caveats about further fundraising or hiring.
No one loves this market, the companies say, but it’s not making founders abandon their projects just yet.
Brayton Williams, a co-founder of Boost VC, told CoinDesk:
“The investment money is returning back to the norm of difficult to obtain. I think the ‘winter’ is greatly exaggerated. We are just back to normal behaviors.”
Boost committed to investing in 100 crypto companies back in 2014 and successfully reached that goal last year.
There were a variety of ways to go “long” on crypto yet avoid exposure. One dominant strategy: don’t do an initial coin offering (ICO). In short, the prevailing wisdom is companies should build for crypto without exposing their payroll and rent money to its volatility. One advantage to going the route of traditional fundraising: the money comes in fiat.
Doug Petkanics of Livepeer, a decentralized video transcoding project, told CoinDesk that Livepeer has kept most of its capital in fiat, and therefore hasn’t felt headwinds.
Petkanics wrote in an email:
“The market drop affects the general ecosystem and sentiment around the space that we’re working within. Projects don’t get a free ride in terms of blockchain tech being seen as cool or disruptive amongst the general public.”
But many of the high-quality teams that raised funds via ICO are also managing to survive. Ricky Li, founder of Altonomy, a trading firm and advisory, told his ICO clients to liquidate enough ETH so they would have at least two years of runway.
“A lot of people listened,” he told us. Those that did don’t care about the current market. Those that didn’t, well, not so much.
Li also advised crypto believers to move a large portion of ETH they raised into crypto indices, so they aren’t exposed to one asset. Some also bought options on their holdings in order to guarantee the price held in a certain range.
“We were expecting an extended downturn as we were around for the last bear market,” Matt Luongo, the project lead of Keep, told CoinDesk. Keep, a project from Fold for storing private data on blockchains, decided it would need to go beyond the protocol and build its first app as well, in order to spur adoption.
Trevor Koverko of security token firm Polymath told CoinDesk that his company went in with a good treasury-management plan and he’s been happy with the results.
“Our technical roadmap has been accelerated. We view the bear market as a blessing for quiet, heads-down, development-focused projects.”
There’s another way to make sure a company’s core ideas live on, of course.
One investor, Meltem Demirors, chief strategy officer at CoinShares, hopes market forces will rally to save the best parts of faltering companies. She wrote via email: “I do hope more companies decide to merge and join forces, especially if competing for the same wallet share, to build more cohesive user experiences and increase the chances of success.”
Additional funding should be there for companies that prove their worth, Demirors argued, adding:
“In this environment, most companies with a reasonable business model, some proven traction, and a reasonable valuation should be able to find support in various forms.”
There’s a strong “buy” rating on BUIDL right now.
Koverko and several founders told us the bear market has slightly improved employers’ bargaining position in terms of hiring blockchain engineering talent. As some projects wind down, there’s a broader talent pool available.
“We view this as a great time to pick up talent and build great technology, much like Google and Amazon got their head start during a bear market,” Josh Fraser of Origin Protocol wrote in an email.
It is worth noting, though, that not everyone said hiring is easier. Robert Leshner, CEO of the venture-backed Compound Finance has had a different experience. “Candidates are by default skeptical of blockchain right now,” he said.
Fortunately, Leshner has enough runway to make it for several years, he told CoinDesk. This is key because he expects his core early customer base to be crypto funds, and many of those are closing down.
For example, CoinDesk has confirmed that a token fund-of-funds, Apex Token Fund, that had announced its intention to raise $100 million in November ultimately never hit its minimum funding target. The failure to raise took down the vehicle created for the fund.
Trimming the fat
Several companies still standing tell CoinDesk the time has come to cut back on more outward-looking expenses. Several firms told us about cutting back on events and public-relations expenses.
“We feel that it is a waste of time and money to travel all over the place while the audiences are small and dwindling,” Marco Peereboom of Company 0, which leads development on the Decred Protocol, told CoinDesk in an email.
Other companies told us that they’ve been cutting back on contractors, PR firms in particular. Compound Finance’s Leshner is seeing a similar diminished interest. “I get invited to a lot less conferences,” he wrote.
Beyond marketing, companies are getting more internally focused, as well. Nebulas was one company still holding on that has had significant cutbacks. A spokesperson told CoinDesk that it jettisoned some internal teams that were not seen as central to the mission. Erik Voorhees of ShapeShift sounded similar themes when he announced his firm’s contraction in early January.
Some companies have gone long on ETH and managed to keep going.
We recently wrote about Bee Token, a would-be competitor to Airbnb that’s now driving revenue through traditional fees, rather than the original plan: fostering growth in its token’s value.
Some companies used the power of smart contracts to give their ICO backers more power, but that cost them in flexibility during a bear market. For example, The Abyss, a crypto startup in the video-game industry, gave its backers the ability to vote on how much ETH to release to the team every month, a model first-conceived by Vitalik Buterin, who called it a decentralized autonomous ICO, or DAICO.
The upshot of this: they couldn’t sell the locked ETH for fiat if they wanted to, and – as the price of ETH plummeted – every new emission of funds was worth less than the one before it.
“Despite that, we managed to provide all the key deliverables in accordance with the project’s roadmap and declared timeline. All points were executed,” founder Konstantin Boyko-Romanovsky told CoinDesk in an email. He expects the winnowing of token companies to ultimately benefit the blockchain industry.
The Abyss currently employs 25 people.
Netflix challenger Flixxo has most of its funds in ETH, so the downturn hasn’t been easy. Still, its founder, Adrián Garelik, told CoinDesk that Flixxo believes there’s a rare opening in the streaming industry for a token-based business model.
“We feel there is a time-sensitive opportunity and we’d rather spend all our resources and take the opportunity than waiting for a better moment for crypto. It’s a bet, but we have a lot of confidence in our vision.”
Without additional funding, the company has one year to realize that vision, Garelik said.
Mild winter forecast
Peereboom was among the sources who compared today to the last major bitcoin contraction.
“It doesn’t quite feel like 2014 because ICOs raised so much money, but the space is not done consolidating,” he said.
New token sales aren’t over, either. TokenSoft, which helps companies conduct compliant offerings, expects to do a solid business this year. “We have several raises still ongoing and expect our clients collectively to raise more than $1 billion in 2019,” Stacy Orff-Whitfield, the company’s head of marketing, told CoinDesk.
To that point, crowdfunding platform Republic announced its intention to do a token sale in June, but that has remained on hold and may sit for some months more, CEO Kendrick Nguyen confirmed.
Once a token has been generated, the market raises another question.
Harmony COO Nicolas Burtey said his company faced the quandary of when to start pushing for token listings. “On one side, we really need to have our token to build our community,” he told CoinDesk. “On the other side, we presume that if we list the sell pressure might be high and will have a negative effect on the project.”
Random Crypto, a mining company headed by Josh Metnick, is expanding quickly. “Best time to mine is when difficulty stagnates and prices on gear are reasonable,” he wrote to CoinDesk. Coinmine, the company aiming to bring back home mining, gave CoinDesk a similar assessment.
Beyond mining, Williams, the co-founder of Boost VC, remains confident about the entire industry. He wrote:
“This ‘winter’ is 100X better than the 2014/15. People don’t think crypto is going to die. They are all just trying to time for when it comes back. In 2014/15, the conversation was all about if crypto survives at all.”
Snowflake image via Shutterstock