Your weekly dose of insightful market analysis and trending stories.
The Highlight of the Week
Argentina reiterates the macro bitcoin investment thesis
On Sunday, the government of Argentina announced extraordinary measures to “ensure the normal functioning of the economy, to sustain the level of activity and employment and protect the consumers.” Argentina has imposed restrictions on various entities to hold the domestic currency. Commodity exporters have to withhold the product for at least two weeks before they receive permission to sell abroad. To maintain currency stability individuals cannot convert Peso more than USD 10,000.
Does the IMF support this? Yes, they do, Argentina being one of the biggest borrowers, IMF has skin in the game to support the government’s decision.
Argentina’s economy has contracted by about 5% in the first half of 2019 and inflation running at 22% in 2019.
For the wealthy in Argentina, who make more than $10k in a month, it is natural to seek other avenues of storing their wealth. Probably the most obvious alternative is bitcoin.
As of now, there is no evidence that the 7% jump in bitcoin’s price is due to Argentina. However, this form of government control and wealth destructive inflation is a reminder for people across the world that such chaotic financial conditions could be one bad election away. Bitcoin is Government neutral, censorship-resistant investment which could prevent wealth deterioration.
Top News From Last Week
Litecoin and the hash-rate woos
Litecoin hash-rate dropped from a recent high of 523TH in July by around 40% to 309TH in the last week. It is especially important because the reward halving did not have any impact on the price. The price dropped over 30% from the recent high of around $100. The decreased hash-rate indicates that miners either do not want to operate in losses or do not have confidence in the project in the long term.
Dropping hash-rate is even more concerning in the light of reducing difficulty level. There have been talks around Litecoin’s stagnant development. Lowered hash-rate may be a reflection of the same concern shared by the miners.
One of the primary reasons for the stagnant development is the lack of funding. Unlike other prominent projects, Litecoin does not have full-time developers. Though Charlie Lee recently reiterated that he would continue to fund the development until the Litecoin Foundation becomes self-sufficient, it has not yet reflected in the development.
Binance launches Binance X, a platform for developers
One of the biggest challenges of decentralized systems has been to attract top-notch developer talent to build the ecosystems. There are a couple of reasons for Bitcoin and Ethereum to have nurtured the most number of developers. First, they have been around for quite some time, and the novelty of decentralized systems attracted devs. Second, companies have been built around bitcoin that benefit from bitcoin’s growth. These companies have enough incentives to support developers to work on bitcoin.
Binance Chain is new and will probably take time to attract developers organically. This new platform will help Binance get quality developers on-board. Binance launches new products at warp speed. Just last week Binance announced venturing into the lending business.
Top Performing Tokens
Top performing tokens from AUG/24/2019 to AUG/30/2019 were:
Worst Performing Tokens
Worst performing tokens from AUG/24/2019 to AUG/30/2019 were:
ROI of Recent IEOs
ROI of recent IEOs until AUG/28/2019:
Tokens with Most Volume
Tokens with the most volume from AUG/23/2019 to AUG/29/2019 were:
DISCLOSURE: Token Metrics Media LLC is a regular publication of information, analysis and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.
Token Metrics Media LLC does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Token Metrics Media LLC registered as an investment adviser or broker-dealer in any jurisdiction.
Information contained herein is not an offer or solicitation to buy, hold or sell any security. The Token Metrics team have advised and invested in many blockchain companies. A complete list of their advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/