guide
On the 29th of this month, Coinbase Custody announced that it began to support Tezos Staking, which also pushed the Staking Economy (which can be translated as equity economy) from behind the scenes to the foreground. As a heavyweight player in the blockchain field, what is the purpose of Coinbase's frequent efforts in the asset management field?
Summary
Summary
Topic: Staking is based on the PoS (Proof of Stake) consensus mechanism, the behavior of exercising the relevant rights and interests of the Stake held. Staking Economy is a business model in which Stake holders obtain income through actions such as pledge, voting, delegation, and lock-up. At present, the main operation mode is that the pass holder entrusts the pass to a trusted third party (including wallets, trading platforms, professional service providers, etc.), and the third party acts as a blockchain project node or supporting force to obtain the project on its behalf Token inflation rewards, the handling fee is 5%-25%. Its annualized rate of return is about 7%-150%. The higher rate of return of PoS projects is the main selling point of service providers, but at the same time, they also face the risk of balance between the security of token storage and income, fierce market competition in the later period, and token depreciation.
Market: The rebound continues, and the market is gradually picking up. The total market value of digital tokens this week was US$143.1 billion, an increase of US$3.44 billion or 2.5% compared to last week; the average daily trading volume was US$32.48 billion, an increase of 4.2% from last week, and the average daily turnover rate was 23.2%. It was up 0.9% from last week. The current price of BTC is $4098, with a weekly increase of 1.8% and a monthly increase of 6.4%. The current price of ETH is $142.5, with a weekly increase of 3.9% and a monthly increase of 4.7%. This week, the BTC balance on the exchange was 810,000, an increase of 7,600 from last week. The balance of ETH on the exchange was 9.012 million, an increase of 64,000 from last week. There is a strong willingness to allocate mainstream tokens on the floor, and market confidence is recovering at an accelerated pace.
Risk warning: regulatory policy risk, market trend risk
Risk warning: regulatory policy risk, market trend risk
text
text
1
On the 29th of this month, Coinbase Custody announced that it began to support Tezos Staking, which also pushed the Staking Economy (which can be translated as equity economy) from behind the scenes to the foreground. As a heavyweight player in the blockchain field, what is the purpose of Coinbase's frequent efforts in the asset management field?
1.1 Staking Economy
Feature: Opportunities of PoS
Staking is based on the PoS (Proof of Stake) consensus mechanism to exercise the relevant rights and interests of the Stake held.
Staking Economy is a business model in which Stake holders obtain income through actions such as pledge, voting, delegation, and lock-up. Generally speaking, depending on the number of tokens held, the annualized rate of return is between 7% (such as Dash) and 150% (such as Livepeer). At present, the main operation mode is that the pass holder entrusts the pass to a trusted third party (including wallets, trading platforms, professional service providers, etc.), and the third party acts as a blockchain project node or support force on behalf of Obtain the inflation/block rewards of the project token, with a handling fee of 5%-25%.
Market demand is the main driving force behind the birth of Staking Economy.
On the one hand, the total market capitalization of the token market is relatively high, while the rights and interests of many stakes are still unexercised. The total market capitalization of the token market once reached a high of 813.9 billion US dollars in early 2018, and after twists and turns, it is currently stable at around 143.6 billion US dollars. This volume exceeds the GDP of 70.3% of countries in the world. And it is estimated that there are more than 20 million participants in the global token field, and there is a large market space for asset custody services. EOS, known for its DPoS (a variant of the PoS consensus mechanism), although it ranks in the forefront of market popularity and market capitalization, the degree of exercise of its token rights is low, only 35.73% (as of March 30, 2019), theoretically The loss of unexercised tokens on the Internet exceeded 6.427 million EOS, or about 27.19 million U.S. dollars.
On the other hand, the PoS consensus mechanism is gradually recognized, and the market prospect is broad. Lubin, the founder of ETH, which currently ranks second in market value, proposed that the consensus algorithm of ETH will transition from PoW to PoS. Popular blockchain projects such as Cosmos, Polkadot, IOST, Cardano, and DFINITY have adopted the PoS consensus mechanism. In addition, at least 70 blockchain projects have adopted the PoS consensus mechanism, with a total market value of 3.9 billion US dollars. According to Staked.us investors, about 25% of blockchain projects will adopt the PoS consensus mechanism in 2019. It is conservatively estimated that Staking will generate US$2.5 billion in revenue.
1.2 The layout of the new track is accelerating, and benefits and risks coexist
The mining of the potential of PoS seems to have endowed the blockchain with a new mode of operation. Service providers of PoS projects have begun to emerge. The higher rate of return is their main selling point. Risk of market competition and token devaluation.
The layout of the new track has accelerated, and domestic and foreign companies have started one after another. In February this year, blockchain investment institutions Pantera Capital and Coinbase completed $4.5 million in financing for Staked.us, a startup that provides services for PoS projects. Other similar institutions include Stake capital, P2PValidator, Cryptium Labs, Figment, StakeWith.us, etc. Domestic institutions are not far behind, including Huobi Mining Pool, Cobo, Wetez, and Hashquark, all of which earn income by serving as project nodes or node service providers.
How to balance the safe storage of certificates and the acquisition of rights and interests. There are currently two ways to store tokens, hot storage and cold storage. Hot storage means that the token storage address/wallet is connected to the Internet in some way, and there is a danger of being hacked; cold storage means that the token stores the private key in a completely offline manner, such as paper, hard disk, etc. In the Staking Economy, ensuring the security of token storage is the top priority, while higher yields are the biggest selling point of service providers, so how to balance the relationship between the two has become a top priority. Coinbase Custody assures its customers that all tokens will be stored in cold storage, and will also provide Tezos with a deposit of 10% of the storage value on behalf of customers to ensure the security of users' assets and the acquisition of rights and interests.
At present, the market is not saturated, and staking is expected to have a higher rate of return, but with the continuous emergence of participants, intensifying competition is inevitable. According to Diar, as of March 18, 2019, the rate of return of some PoS projects Staking is between 3% and 30%, with an average of 10%. If Livepeer’s 154% rate of return is added, the expected rate of return of Staking will increase by at least 6% points. In the long run, the rate of return on asset investment is gradually declining.
2
In the early days of the Staking Economy, how to choose a reliable entrusted service provider and whether the inflation/block income of the token will outperform the decline of the token are all risks. Recently, it is not uncommon for token wallet projects to run away. Investors need to be extra cautious when choosing entrusted service providers; the way PoS projects obtain Staking income is mainly to lock tokens to obtain inflation income or verify transactions to obtain blocks Chain rewards, both methods have the risk that the rate of return of the project token is lower than the volatility of the token price.
Market: The rebound continues, and the market gradually picks up
2.1 The overall market: the rebound continues, and the market is gradually recovering
The total market value of digital tokens this week was US$143.1 billion, an increase of US$3.44 billion or 2.5% compared to last week. This week, mainstream tokens have steadily entered a rebounding upward channel, and the overall market continues to warm up.
The average daily turnover of the digital token market was US$32.48 billion, an increase of 4.2% from last week, and the average daily turnover rate was 23.2%, an increase of 0.9% from last week. This week, mainstream tokens fluctuated greatly within a day, with active trading, and the market sentiment gradually changed from panic to greed.
This week, the BTC balance on the exchange was 810,000, an increase of 7,600 from last week. The ETH balance on the exchange was 9.012 million, an increase of 64,000 compared with last week. There is a strong willingness to allocate mainstream tokens on the floor, and market confidence is recovering rapidly.
The market value of USDT is 2.03 billion US dollars, a decrease of 1.07 million US dollars from last week. This week, the token market is relatively optimistic. The mainstream tokens continue to rebound slightly. The market value of USDT has risen steadily, showing a slight premium.
2.2 Core Token: Significant Growth
The current price of BTC is $4098, with a weekly increase of 1.8% and a monthly increase of 6.4%. This week, the average daily trading volume of BTC was 10.10 billion US dollars, and the average daily turnover rate was 14.3%. BTC continued to rebound this week, leading mainstream tokens to steadily enter the upward channel. As for whether a trend reversal can be formed, it will take time to confirm.
The current price of ETH is $142.5, with a weekly increase of 3.9% and a monthly increase of 4.7%. This week, the average daily trading volume of ETH was 4.60 billion US dollars, and the average daily turnover rate was 31.5%, which was significantly higher than last week. In the later period, there is a high probability that ETH will link with the BTC market and enter the rebound stage.
The current price of EOS is $4.28, with a weekly increase of 17.4% and a monthly increase of 21.3%. This week, the average daily trading volume of EOS was 2.01 billion US dollars, and the average daily turnover rate was 55.4%. The EOS market has performed strongly recently, once leading the rise of mainstream tokens. In the short-term market outlook, it is a high probability event that EOS will follow BTC and enter the rebound market steadily.
The current price of XRP is $0.31, with a weekly decline of 1.2% and a monthly decline of 1.7%. The average daily trading volume of XRP this week was $730 million, with an average daily turnover rate of 5.7%. XRP’s recent performance has been relatively sluggish, and it has been slow to respond to the general rise of mainstream tokens. Although the market has signs of linkage with BTC, the strength is obviously insufficient, and the market outlook will likely continue this situation.
This week, the monthly volatility of major tokens has generally dropped. The monthly volatility of BTC is 6.4%, down 4.7% from last week; the monthly volatility of ETH is 12.4%, down 8.6% from last week; the monthly volatility of EOS is 23.7%, A decrease of 4.3% from last week; the monthly volatility of XRP is 7.0%, a decrease of 8.8% from last week. This week, the volatility of mainstream tokens in the market has dropped slightly, so pay attention to the short-term price risk.
2.3 Market view: Steady rise, confirming the strength of the rebound
This week, mainstream tokens have generally risen, and an upward channel is being built. The rebound market is likely to continue, and the strength needs to be confirmed. This week, the mainstream tokens rose significantly, and basically walked out of a good upward channel. However, due to the heavy selling pressure in the early stage, the magnitude and strength of this upward rebound still need to continue to wait and see to confirm.
3
The investment value is gradually emerging, and you can consider light storage allocation of mainstream tokens. At present, it has become a consensus that the market continues to warm up, good news is gradually released, and the halving of BTC is gradually approaching. According to our research and market performance, market warming is the general trend, and the investment value of mainstream tokens has gradually emerged. In view of the fact that the bull market cannot be accurately judged, at the current price, you can consider light storage allocation of mainstream tokens.
Output and Popularity: The computing power has dropped slightly, and the public attention has remained stable
The computing power of BTC decreased slightly, the difficulty of mining increased slightly, and the computing power and difficulty of mining of ETH both decreased. The mining difficulty of BTC this week is 6.379T, an increase of 0.310T from last week, and the daily average computing power of this week is 45.84EH/s, a decrease of 1.95EH/s from last week; the mining difficulty of ETH this week is 1791, a decrease of 51 from last week, The daily average computing power is 142.0TH/S, which is 4.7TH/S lower than last week.
4
This week, according to GoogleTrends, the search popularity of the term Bitcoin was 7, and the search popularity of Ethereum was 6, which remained stable compared with last week.
Industry News: Officials of the British Department of International Trade: British financial technology companies are targeting the Chinese market, looking forward to cooperation in the field of blockchain; Russia has removed content on cryptocurrencies from the delayed digital asset bill
4.1 Official of the British Ministry of International Trade: British financial technology companies are targeting the Chinese market and look forward to cooperation in the field of blockchain
In a recent interview with 21st Century Business Herald, John Crichton, First Secretary for Financial and Professional Services at the UK Department of International Trade, said that China and the UK have great potential for cooperation in the field of financial technology. relationship and expand more opportunities for business cooperation. Jon Robson found in his contacts with Chinese financial institutions and regulators that there is a huge demand for blockchain in the Chinese market. He believes that blockchain is expected to become an indispensable part of China's financial market in the future, and he looks forward to bringing British technology and experience to China and learning from China at the same time.
4.2 Russia has removed references to cryptocurrencies from delayed digital assets bill
According to TNW news, recently, several terms including "cryptocurrency", "smart contract" and "token" have been deleted in the delayed Russian digital financial assets bill. Earlier news, the State Duma of the Russian Federation has postponed the consideration of the "Digital Financial Assets" bill until April 2019.
4.3 India’s cryptocurrency ban may be lifted after hearing on March 29
According to CCN news, the lawyer of the Supreme Court of India had previously stated that the hearing on cryptocurrencies may be postponed to March 29. Some analysts believe that the ban on cryptocurrencies in India will disappear after this hearing. In India, the use of cryptocurrencies such as Bitcoin and Ethereum is not completely banned, as only local banks that cooperate with the Reserve Bank of India are prohibited from working with cryptocurrency exchanges. As such, some cryptocurrency trading may fall in a regulatory gray area, but it is not illegal for cryptocurrency traders to buy and sell bitcoin over-the-counter (OTC) and peer-to-peer p2p exchanges using cash, as long as local banks are not involved. While the Reserve Bank of India has been pursuing a blanket ban on cryptocurrency trading, which many government officials agree with, sentiment around cryptocurrencies appears to have begun to shift in recent months. Under the leadership of the finance minister, the Ministry of Economic Affairs has allegedly reached a consensus not to fully consider cryptocurrencies as illegal payments. According to the New Indian Express, an unnamed official said: "We have had two meetings. It is generally agreed that cryptocurrencies cannot be considered completely illegal." On the other hand, if the government is concerned about potential Money laundering risks, India may revoke the Reserve Bank of India's ban on banks engaging in cryptocurrency transactions.
4.4 Envion AG, an encrypted token mining company, is in bankruptcy liquidation to compensate investors
According to CCN news, the Swiss Financial Market Supervisory Authority (FINMA) ruled that Envion AG, an encrypted token mining company, illegally obtained 90 million public deposits from 37,000 investors through Crowdsale activities in 2018 without obtaining a statutory license. Dollar. The company is currently in liquidation to compensate investors. According to previous news, FINMA ruled that Envion’s Crowdsale project is illegal. The non-compliance includes: the conditions for issuing tokens did not treat investors equally; the prospectus failed to meet the minimum requirements; Envion did not have an internal audit department required by law.
4.5 IBM announced that it will build a blockchain medical data exchange platform
