EOS (EOS) Leading the Altcoin Rally to New Highs

EOS (EOS) is currently leading the altcoin rally with an unprecedented zeal and excitement. The price rose all the way from $4 even to surpass its previous high of $18.8, to the surprise of many. It made a new high around $23.5 before correcting. Currently, the price trades around $17. What interests most about EOS is the fact that it is perhaps the only coin that has not only fully recovered from the recent correction but also made a new high! The price action looks extremely bullish on the EOS/BTC chart and eyes further gains with room for a short term correction.

EOS just recently introduced EOSIO Dawn 4.0 which was the big catalyst in pushing its price past the previous all time high. Institutional interest in EOS is also on the rise as a more efficient and scalable Ethereum (ETH) competitor. Their team is also one of the most active on social media and frequently updates their Twitter account. They have also gained some following on Facebook recently. EOS is one of those coins that went into coma after its ICO. It was completely on the sidelines and hence ignored by many analysts and investors. There was a lot of hype around its ICO though and those who participated in the ICO and sold last week would have made a killing.

With Ethereum (ETH) in trouble over its possible status as a “non compliant security”, coins like EOS and Ethereum Classic (ETC) have made impressive gains even while Bitcoin (BTC) was in the red. EOS particularly has a lot going on at the technical side currently and it would not be surprising to see Ethereum (ETH) style gains on EOS during 2018. If Bitcoin rises and stays above $10,000, this would give altcoin investors a lot of confidence. One thing we have seen in 2018 is an astronomical increase in the number of altcoin trades which has also led to a decrease in Bitcoin dominance. Most such investors believe that altcoins have a lot more potential for higher gains compared to Bitcoin (BTC). As such, they only look up to Bitcoin for the general direction of the market. When things look stable for Bitcoin (BTC), money flows into Bitcoin at much faster pace. The same is also true of money going out of altcoins as soon as things start to look bad for Bitcoin.

The recent altcoin rally, led by EOS shows that many cryptocurrencies are due for a bull run against Bitcoin. It usually happens around May-June during which time most altcoins reach new highs.  The current scenario points to a pending rally for most altcoins to rise to new highs just like EOS. Some coins like TRON (TRX) and Stellar (XLM) are already half way there. Normally, this would be happening at a comparatively slower pace but this year also coincides with a major bullish scenario for Bitcoin (BTC) projecting its price at $100,000 and higher. The pace of this year’s altcoin rally also indicates that a 2013 style scenario is very much possible which should yield 10x+ returns on most altcoins.

 


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Author: Fakhan
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The Most Likely Next Coinbase Listing

A Coinbase listing is the crypto equivalent of the Holy Grail for the community behind a token. Aside from the obvious benefits – including an exponential spike in the price and volume for any coin lucky enough to make the grade – Coinbase listings expose tokens to a much wider audience, increasing the long-term prospects of mass adoption.

The purpose of this article is to provide an analytical framework for decision-making. Investing purely on the speculation of a listing on any exchange is very short term focused and may be suited for investors with higher risk tolerances, but a Coinbase listing has five immediate benefits for any coin:

Liquidity: GDAX, the trading app owned by Coinbase for professional crypto traders, is a top 8 exchange globally in terms of volume per day. A listing provides immediate liquidity in a cryptocurrency market that does over $310 billion in volume per day.

Access: Over 85% of GDAX’s volume is on USD pairs. It gives a market opportunity to exchange fiat for cryptocurrency, and Coinbase is arguably considered the most responsible platform to do so. Coinbase has been described as the platform you’d share with your grandmother to get into cryptocurrency for the first time due to their exceptional Ux design. There are few avenues for a green, inexperienced, non-technical investor to buy cryptocurrency for the first time, and Coinbase is often the place they are directed.

Familiarity: Having USD pairs makes it easier for your average investor to conceptually understand their investments. People are more familiar with pricing assets in dollars versus satoshis (the smallest denomination of bitcoin), and therefore they are more comfortable using USD as their baseline. For example, buying Cardano (ADA) at $0.35 USD per coin is conceptually easier to interpret than buying ADA at 4000 satoshis.

Advertising: A listing will inherently attract the attention of all mainstream crypto media outlets. In addition, since Coinbase is generally a new investor’s first interaction with crypto, it gives a new group of crypto investors an introduction to the currency. It’s also a cyclical effect that benefits from word of mouth marketing.

Legitimacy: Coinbase aims to be the most trusted cryptocurrency company in the space according to their Chief Compliance Officer, Mike Lempres. A fundamental component of reaching that goal is compliance, and a listing on Coinbase confirms the integrity of a coin to the public. They’re a trusted entity and it’s expected that they’ve done their due diligence in the process of listing.

Let’s take into consideration four examples that show the short-term influential power that Coinbase has over the market.

    1. Litecoin (LTC): Coinbase added support for LTC on May 3rd, 2017. In the next 5 days LTC jumped approximately 57%.
    2. Bitcoin Cash (BCH): Went up over 300% in one day once it was added to Coinbase. This infamous hour of trading saw BCH priced at $8500 on Coinbase and as low as $3800 on other exchanges, such as Binance.
    3. Ripple (XRP): XRP listing rumours are very common, but the coin still hasn’t been listed. Information surfaced that Ripple offered to pay Coinbase to list their coin and they declined. The latest rumour in early March saw XRP spike almost 20%.

Every Telegram channel and Reddit page has someone arguing that their coin is going to be the next listing on Coinbase, but it’s important as an investor to use an analytical lens when making financial decisions.

There are rumours every day, and with the recent announcements of the launch of Coinbase Ventures, added support for ERC20 tokens, the acquisition of Earn.com, filing Form D paperwork with the SEC to sell regulated securities, and high-profile hires to scale their team, speculation of the next coin listing has been extremely rampant.

Below is a framework that investors could use to educate themselves and empower their own decision-making on what they think the possibilities are for the next Coinbase listing.

These questions contain objective and subjective variables for investors to answer, and different investors may come to different conclusions, but it establishes a structure to avoid the erroneous noise that crypto media is famous for.

The weighting of each criteria can be changed based on personal preferences.

These are the important criteria that an investor needs to ask:

  • Does the coin meet the GDAX framework?
    • Coinbase announced their listing requirements for a coin in Q4 of 2017, but the company still retains full and absolute discretion for listing or delisting any asset, so meeting the requirements is just step 1 of the framework. These requirements include: strong alignment with Coinbase’s mission and values, engineering and product quality, short & long term operating expectations, ability to scale, liquidity, global exchange representation, token demand, and economic incentives to encourage for participating parties.
  • Is the coin considered a security?
    • The asset cannot be classified as a security in accord with US Securities Law. However, Coinbase has filed to become an SEC licensed exchange, and if that does happen I assume they will change their framework to accommodate coins that are classified as securities.
  • Does the asset meet compliance obligations?
    • These obligations include an Anti-Money Laundering Program.
  • Is the coin an ERC20?
    • Coinbase added support for ERC20 tokens in late March. Allocating resources on a task like this suggests that the next listing could likely be an ERC20, but this is not definitive. It’s important to evaluate whether or not the coin has plans to move to their own mainnet in the near future (such as EOS).
  • Does the token reward users for participation?
    • When Coinbase acquired Earn.com, Brian Armstrong, Coinbase’s CEO, tweeted about his interest in investing in platforms that directly rewards users for participation.
  • Are there any Y-Combinator connections?
    • Coinbase is a Y12 alumni and Y-Combinator has a strong alumni network.
  • Are there any employee relationships?
    • Charlie Lee, creator of Litecoin, was the former Director of Engineering at Coinbase. Personal connections to Coinbase are definitely considered to be an added bonus when considering the chance of a listing.
  • Any other considerations?
    • Some other important considerations are geography and the fact that Coinbase announced last month that listings will not merely be according to the market capitalization of a coin, which means it’s likely that coins over a certain threshold all have an equal playing field when evaluating their probability of being listed. There is also no reason that Coinbase only needs to add only 1 asset at a time, and there could potentially be a bundle of ERC20 coins listed.

Based on this framework, the three most probable token listings: 0x (ZRX), Augur (REP) and Quantstamp (QSP).

0x could be the most probable listing. 0x meets the digital asset framework, it has been rumoured that 0x executives have visited the Coinbase office (and their offices are an 8-minute drive from one another in San Francisco), both 0x and Coinbase filed for Form D paperwork with the SEC back-to-back within 2 weeks time, Coinbase could use the 0x protocol to exchange its ERC20 tokens, 0x is an ERC20 token, and they are a top-50 market cap coin.

To top that off, 3 out of 4 of 0x’s advisers listed on their website are ex-Coinbase employees: Fred Ehrsam was a co-founder, Olaf Carlson-Wee was the first hire, and Lina Xie was a project manager.


ICO of the week:
Vanywhere.com:
Working product – ✅
Major player involved – ✅
Experienced team – ✅
Active community and social channels – ✅
Potential of mass adoption – ✅


It may seem strange to list a coin on their platform that could be perceived as a future competitor as Coinbase, but in the announcement of Coinbase Ventures, the company announced that they may “invest in companies that ostensibly look competitive with Coinbase”. Coinbase Ventures investments may not be directly correlated with listings in their exchange, but they also mentioned that they would like to invest in projects that are in everyone’s interest to see the ecosystem innovate by taking a long-term view of the space.

It seems as though Coinbase lists a new coin approximately every 9 months based on the timeline history of listings. With that in mind, one may believe the listing could be soon – but don’t keep your hopes up.

Dan Romero, General Manager of Coinbase, indicated that the company wants to increase its offerings, but the regulatory uncertainty when classifying security and utility tokens is keeping them from rushing into anything. It’s almost certain that no coins will be added until the SEC develops a framework to classify tokens.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Andrew Macdonald
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