Your weekly dose of insightful market analysis and trending stories.
The Highlight of the Week
Stellar Airdrop: If it appears to be too good to be true, it is!
Stellar announced that they would be airdropping 2 billion tokens. We disagree with the media agencies that maintained that this airdrop is worth ~$120 million. We believe that this is lazy journalism. Stellar's current supply is ~20 billion tokens and the price at the time of announcement was ~$0.06. Therefore everyone arrived at a figure of $120 million by multiplying those numbers. However, it begs the question - if someone is adding 10% of the circulating tokens to the existing supply, how can you expect the price not to drop? Valuing airdrops in this manner is misleading the community according to us. These are just marketing gimmicks and are unwarranted. With 10% more tokens airdropped, we expect the equilibrium price to fall by the same margin or even more. Therefore, one must take all such airdrops with a pinch of salt.
Airdrops are an excellent way for companies to generate community engagement without spending a colossal amount on marketing up-front. However, it may not be beneficial for users all the time. There are some genuine companies/projects that conduct airdrops to generate awareness; but there are some scams who want to get access to users' information such as names, emails, phone numbers, social media accounts, driver's license, and so on. They sell this information to hackers who wish to carry out social engineering attacks. Therefore, users should be careful about which airdrops they want to participate. It might seem like free money, but at times, it may come with a lot of hidden costs.
Top News From Last Week
Santander issued a $20 million bond on public Ethereum blockchain
Issuing a bond on Ethereum is not a very complicated process, according to the experts. However, managing the end-to-end process on the blockchain was not done before. Santander has tokenized not only the bond but also cash-flows associated with the quarterly coupon rate along with the cash for the bond. The cash is held in an escrow and will only be released once the issuer underwrites the bond and instructs the blockchain to do so.
This bond sale by Santander marks as the first "real-world" use case of the Ethereum blockchain.
ECB cuts rates. Why it could be not so good?
Another day, another stimulus package announced by a central bank. Europe's central bank head Mario Draghi announced that the key interest rate cut by 0.1% to -0.5%. And the central bank is set to buy bonds worth 20 billion Euros from November. This rate cut could act as set-back for trade talks with the US. Trump was prompt to take it to Twitter, and the decision gives him room to criticize the EU of actively depreciating Euro against the dollar.
While the store of value narrative for bitcoin is in the air, such incidents will help reinforce the need for a stateless currency. It is interesting to see how the US reacts to the latest rate cut by the ECB.
ETH Classic carried out a hard fork called Atlantis
Ethereum classic successfully carried out a hard fork called Atlantis. This hard fork allows Eth classic to increase interoperability with Ethereum. The idea behind Atlantis is to incorporate EIPs accepted already by Ethereum; this ensures the interoperability of the two chains.
Another major upgrade included is the Atlantis fork is the use of zk-SNARKs. In a nutshell, zk-SNARK is a way to prove ABC to a verifier without revealing ABC itself. This hard-fork allows the system to remove the need for interaction between the prover and the verifier.
Top Performing Tokens
Top performing tokens from SEPT/07/2019 to SEPT/13/2019 were:
Worst Performing Tokens
Worst performing tokens from SEPT/07/2019 to SEPT/13/2019 were:
ROI of Recent IEOs
ROI of recent IEOs until SEPT/11/2019:
Tokens with Most Volume
Tokens with the most volume from SEPT/06/2019 to SEPT/12/2019 were:
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