This Token Metrics newsletter revolves around crucial market data and some popular stories of the past week.

TOP PERFORMING TOKENS:

Top performing tokens from 07/19/2019 to 07/26/2019 were:

WORST PERFORMING TOKENS:

Worst performing tokens from 07/19/2019 to 07/26/2019 were:

ROI OF RECENT IEOs:

ROI of recent IEOs until 07/24/2019:

UPCOMING IEOs:

Upcoming IEOs for the month of July are:

WEEKLY TECHNICAL ANALYSIS:

Currently, Bitcoin is shifting lower after hitting and being rejected from the 10.7k - 11k resistance zone.

We expect Bitcoin to reach the 9.4k - 9.6k support zone soon where we could witness the following scenarios:

Scenario 1 (most likely): We would see a rejection (the stronger the better) at the support zone, therefore, bringing Bitcoin back on track toward the recent highs at 13k+.

Scenario 2 (less likely): We would see a break through the support zone, Bitcoin, therefore, targeting the 7.5k support.

Scenario 1 is the most likely to occur as we have to take into account that on the daily timeframe we are in a bullish trend, therefore opening a long position at support has a higher rate of success.

A word of caution about the decrease in volume, not a seasonal abnormality, but a decrease in the liquidity bears more risk to an immature market where some whales could force the market to move according to their own and therefore hard-to-predict interests.

Status: short-term bearish, medium and long-term bullish.

THE WEEK THAT WAS:

THE HIGHLIGHT OF THE WEEK:

The Ethereum dev fund dilemma

Ethereum EIP 2025 proposes 0.055ETH per block as inflation for the next 18 months to fund the developers. Though there is not too much consideration signaled by the Ethereum community regarding this matter, a few have expressed their opinion through Github, Twitter, etc.

We believe that this is not such a good idea. There are multiple reasons for this hypothesis. The said addition of inflation is to cover development costs for ETH 1.x for which Ethereum has already raised money through ICO. Ethereum has been infamous for delaying launches of upgrades to its protocol. In this light, a bonus for developers who have not shipped the product on time does not bode well for ethereum. The delays also mean that there is no accountability. How these finds will be disbursed is not known.

Miners’ compensation has been recently reduced from 3 ETH per block to 2 ETH per block as a decision to tame the inflation. Increasing inflation now to cover development costs is unfair to miners.

Lastly, as the Ethereum foundation has also given grants to other projects it seems that there are enough resources with EF. In that case why add extra inflation to the system? We believe that monetary supply alterations should be the last resort to fund development after all the other avenues of funding the development have been explored.

NEWS:

1. Facebook indicates that it’s willing to do whatever it takes and wait as long as it is needed for regulators to get on-board with Libra

Why is this important?

We believe that Libra is a very crucial development in cryptoassets as it accelerated the revolution. When more and more people are exposed to Libra, it is imperative that they start realizing the importance of censorship resistance and decentralization. This will expose a large number of people to bitcoin and other worthy contenders. As Andreas Antonopoulos says, there will be the money of the government, the money of corporates and money of the people. And the Libra development will make people understand the distinction.

2. Venezuela bitcoin volume surges

Why is this important?

Yet another week saw a surge in volume in Venezuela’s local bitcoin. Though Venezuela had become the poster boy of every crypto evangelist as they went on stating Venezuela’s hyperinflation as a perfect example for bitcoin’s use case, we believe the reality has a different story to tell. Yes, bitcoin could have a heck of demand in a country like this where hyperinflation is rampant. But, the infrastructure in the country is not ready for people to adopt bitcoin. This rise in volume is important because it showcases some development in the country’s infrastructure.

3. The SEC spreads joy through Pocketful of Quarters

Why is this important?

The SEC gave clearance to Pocketful of Quarters (PoQ) a go-ahead to sell their tokens on the Ethereum blockchain without registering them as tokens. This will bring cheer to companies planning to raise money through the ICO route. This helps projects understand the guidelines clearly as to what qualifies as a security and what doesn’t. Projects can try to mimic the features or PoQ to obtain clearance for token sale from the regulators.

4. Cryptocurrency mining is an official industry in Iran

Why is this important?

We believe this sets a president for other countries pondering on mining activity. Other countries could also follow suit and legalize mining with certain conditions instead of banning.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. Its principal has advised and invested in many blockchain companies. A complete list of his disclosures, advisory roles and current holdings can be viewed here: https://ianbalina.com/pages/transparency.