Trader View - June 11, 2018

OSL Trader View - June 11, 2018

$BTC turnover slipped under the $4bn handle over the weekend alongside hash rate slipping from an all-time high of 42.15 EH/s to 32.6 EH/s. Overnight, $BTC broke $7200 and has been trading sideways since.

The CFTCs request for trade data set the backdrop for a soft market. Presumably an extension of efforts to reign in unfair trading practices, the regulator requested the data from CME & CBOE. CME did not have the data – nor did the exchanges that contribute to the price for futures contract cooperate. The knee jerk reaction from CME refusing to comply with the request can surely be an alarm bell in itself but it doesn’t at all look like an issue… at all.

CME combine BTC price quotes from Kraken, Bitstamp, Coinbase & itBit and from this, the price of a CME BTC future is derived. The problem was not that they didn’t want to comply with the regulator but rather, the exchanges were reluctant to pass it on to the company responsible for the live price stream: a British trading platform. That changes the narrative completely but then again what are details when it comes to spreading FUD eh?

A hack is a hack however you cut it but Coinrail is does not appear to be an exchange that moves the dial. It may be the 7th biggest in Korea but daily volume printed was less than $3mn. What concerned me was the fact that the notional amount of the hack: W40bn ($37mn). Over 12x daily turnover on coins that in complete honesty, I’d never heard of until this incident. $NPXS, $ATX, $NPER. If they were willing to hold onto this alt-coins with notional values disproportionately bigger than their daily turnover, they either had massive alt-coin transactions or are not the best at managing working capital. Sure hope they have insurance or were telling the truth when they promoted security by keeping 70% of inventory in cold storage.

Some interesting headlines from the regulators.

SEC Chairman Jay Clayton believes crypto assets are not securities and sees them as potential substitutes to sovereign currencies. He also thinks ICOs are securities. By intentionally being vague in regards to when a security (ICO) exactly loses that distinction, the SEC may have given themselves an out as to how they plan to deal with the ICOs that have already been distributed.

Monetary Authority of Singapore MD Ravi Menon had a few things to say as well. After confirming crypto assets would not be governed by securities & futures regulations as they do not fit the definition of securities, they still expected anyone launching an ICO to come speak to them if they thought they were pushing a security. The MAS however did sign off on a laissez faire tone by affirming no plans to regulate as an international financial hub, they see the correct approach being market participants and forces to find middle ground.

The South American exchanges are fighting with the gloves off. Buda (Columbia) & OrionX (Chile) – exchanges in their geography had their bank accounts shut down without warning. The latter filed suit against the six banks that did so saying it was a breach of contract. Will be grabbing my popcorn for the rest of this show.

Separately three luxury apartments in Budva, Montenegro transact were sold at 420 BTC (US$3.2mn); England based crypto asset mining platform Argo gets the greenlight from the UK Listing Authority to go public (Latest correspondence with implied a US$53mn valuation and; SBI finally debuts their much delayed exchange VCTRADE in Japan.

Blast from the past Kodak has managed to get four NBA teams and two NHL teams to endorse their comeback attempt. The once-balling-now-obsolete photo company will be airdropping coins to users that upload images & videos with their partner teams. See how that goes…

May trend be your friend… Happy trading!

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