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Recently, the Korean trading platform Bithumb Global revealed that its compliant stable token will be available soon. Binance, the leading trading platform, will also issue stable tokens "within a few weeks to one or two months", 100% pegged to the British pound. With the intervention of token trading platforms, the world of stable tokens may have to go through another "bloody storm".
Summary
Summary
Topic: Currently, Tether is the stable token with the largest market share and the highest support from trading platforms. All major trading platforms store more than half of the mainstream stable tokens, among which Binance stores more.
The trading platform issues stable tokens, which can improve the security of its assets. If the fiat currency-anchored stable token model is adopted, it can also obtain a certain income. However, the current market structure of stable tokens is difficult to break quickly, and the use of trading platforms’ own stable tokens may affect a certain number of customer groups. In addition, regulatory intervention in the field of stable tokens is still a top priority.
Market: The momentum of consecutive gains has slightly decreased, and the callback has become the main theme. The total market value of digital tokens this week was US$256.7 billion, a decrease of US$16 billion or 5.9% compared to last week; the average daily trading volume was US$73.96 billion, a decrease of 13.8% from last week, and the average daily turnover rate was 28.7%. It was down 3.2% from last week. The current price of BTC is 8,044 US dollars, with a weekly decrease of 6.2% and a monthly increase of 34.5%. The current price of ETH is 250.9 US dollars, with a weekly decrease of 6.4% and a monthly increase of 46.8%. This week, the BTC balance on the exchange was 788,700, a decrease of 31,600 from last week. The balance of ETH on the exchange was 7.9033 million, a decrease of 28,500 from last week. There is a strong willingness to allocate mainstream tokens on the floor, and market confidence is gradually recovering. In the BICS secondary industry, the market value of operating platforms has shrunk significantly, and the number and market value of project service tokens have both increased.
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Risk warning: regulatory policy risk, market trend risk
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1 Topic: The Business Experience of Stable Tokens
1.1 The stable pass is "one super and many strong", and the trading platform is the main storage party
Currently, Tether is the stable token with the largest market share and the highest support of trading platforms. As of February 2018, Tether is still the only option in the field of stable tokens. From March until now, with the gradual expansion of market demand, Tether's competitors have begun to appear. The past when Tether dominated the world is no longer, and the market structure of stable tokens has become "one super and many strong". From the perspective of trading platform support, Tether has the highest support among mainstream trading platforms, with PAXOS and TrueUSD ranking second and third.
Trading platforms store more than half of the mainstream stable tokens, among which Binance stores more. At present, the main storage addresses of stable tokens are major trading platforms, and more than half of the mainstream stable tokens are concentrated in the addresses of trading platforms. As one of the top exchanges, Binance stores the most mainstream stable tokens.
1.2 Trading platforms issue stable tokens: benefits and risks coexist
The trading platform issues stable certificates, which can improve the security of its assets. Since most of the current mainstream stable tokens are stored on major trading platforms, the security and compliance of mainstream stable tokens are extremely important. Some time ago, the capital risk broke out in USDT. As the most accepted stable token in the industry, major trading platforms have announced the launch of other stable tokens to hedge against the possible risks of Tether.
If the trading platform adopts the fiat currency anchor stable pass model, it can also obtain a certain income. Currently, the main mode of stable tokens is the fiat currency anchor, that is, the number of tokens issued corresponds to the anchored fiat currency 1:1. The trading platform adopts the fiat currency anchor model, which can obtain certain interest income. According to Bloomberg News, Tether's bank statements show that since the beginning of this year, it has earned about $6.6 million in interest income, in addition to its fees for deposits and withdrawals of fiat currency.
Regulatory intervention in the field of stable tokens is a top priority. At the current stage, issuers of fiat currency-anchored tokens generally have relatively large credit flaws, and regulatory intervention is the only way. Regardless of Tether, PAXOS and TrueUSD, there is a problem of insufficient strength. Even if the stable token is issued by a leading trading platform, compared with the three major note-issuing banks of the Hong Kong currency bureau model, it is possible in terms of capital scale, operating history and professional level. There are major deficiencies. In the future development process, the fiat currency-anchored stable pass can only increase its own credit level by gradually improving auditing, supervision and issuer qualifications.
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2 Market: pullback consolidation as the main theme
2.1 The overall market: the momentum of consecutive gains has slightly decreased, and the callback has become the main theme
The total market value of digital tokens this week was US$256.7 billion, a decrease of US$16 billion or 5.9% compared to last week. This week, the rising momentum of mainstream tokens has gradually weakened, and it is currently entering an adjustment period, and the overall market is being corrected for the rapid rise in the previous period.
The average daily turnover of the digital token market was 73.96 billion US dollars, a decrease of 13.8% from last week, and the average daily turnover rate was 28.7%, a decrease of 3.2% from last week. This week, mainstream tokens fluctuated greatly within a day, trading was active, and the market sentiment was relatively optimistic.
This week, the BTC balance on the exchange was 788,700, a decrease of 31,600 from last week. The balance of ETH on the exchange was 7.9033 million, a decrease of 28,500 from last week. There is a strong willingness to allocate mainstream tokens on the floor, and market confidence is gradually recovering.
The USDT market cap is $3.26 billion, an increase of $119 million from last week. This week, the token market is relatively optimistic, and mainstream tokens continue to fluctuate. USDT has a slight premium.
2.2 Core Token: The increase was relatively large in the early stage, and it entered the correction stage in the later stage
The current price of BTC is 8,044 US dollars, with a weekly decrease of 6.2% and a monthly increase of 34.5%. This week, the average daily trading volume of BTC was 21.40 billion US dollars, and the average daily turnover rate was 14.9%. BTC fell one after another in the first half of this week, leading mainstream tokens to enter a correction period, and there were signs of a rebound in the second half of the week.
The current price of ETH is 250.9 US dollars, with a weekly decrease of 6.4% and a monthly increase of 46.8%. This week, the average daily trading volume of ETH was 9.06 billion US dollars, and the average daily turnover rate was 33.6%. In the later period, there is a high probability that ETH will be linked to the BTC market.
The current price of EOS is $6.66, with a weekly decrease of 21.8% and a monthly increase of 36.0%. The average daily trading volume of EOS this week was $3.62 billion, with an average daily turnover rate of 56.9%. There is a high probability that the EOS market will be linked with BTC in the market outlook.
The current price of XRP is $0.42, with a weekly decline of 3.5% and a monthly increase of 40.7%. The average daily trading volume of XRP this week was $1.98 billion, with an average daily turnover rate of 11.2%. There is a high probability that the market outlook of XRP will be linked to BTC.
This week, the monthly volatility of major tokens generally rose. The monthly volatility of BTC was 27.1%, an increase of 2.0% from last week; the monthly volatility of ETH was 29.3%, an increase of 1.1% from last week; the monthly volatility of EOS was 38.4%, An increase of 5.4% from last week; the monthly volatility of XRP is 35.9%, an increase of 1.3% from last week. This week, the volatility of mainstream tokens in the market has risen significantly, so pay attention to short-term price risks.
2.3 BICS industry: the market value of the operating platform has shrunk significantly, and the number of project service tokens and market value have both increased
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries, the market value of operating platforms has dropped significantly, from 18.2% to 17.5%. From the perspective of the change rate of market capitalization proportion, the market capitalization proportion of healthcare, project services, and stable pass industries has a relatively high growth rate, which increased by 36.2%, 16.9% and 10.2% respectively compared with last week; non-bank finance, retail e-commerce and The proportion of market value of operating platforms has dropped significantly, down 5.87%, 4.16% and 3.74% respectively from last week.
The BICS secondary industries with the most obvious increase in the number of tokens this week are project services and performance optimization, which have increased by 22.2% and 13.3% respectively compared to last week; the BICS secondary industries with the most obvious decline in the number of tokens this week are non- Banking finance and supply chain, compared with last week, decreased by 20.0% and 14.3% respectively. No significant changes occurred in other industries.
The investment value is gradually emerging, and you can consider light storage allocation of mainstream tokens. At present, the continuous warming of the market has become a consensus, 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.
The investment value is gradually emerging, and you can consider light storage allocation of mainstream tokens. At present, the continuous warming of the market has become a consensus, 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.
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3 Output and popularity: double increase in computing power, stable public attention
This week, according to GoogleTrends, the search popularity of the term Bitcoin was 13, and the search popularity of Ethereum was 9, which remained stable compared with last week.
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4 Industry news: Former head of the US SEC law enforcement department: SEC will soon crack down on IEO; the president of the Brazilian House of Representatives ordered the establishment of a committee to review token supervision issues
4.1 The former head of the US SEC law enforcement department: SEC will soon crack down on IEO
According to CCN news, John Reed Stark, head of the enforcement department of the US Securities and Exchange Commission (SEC), said that BTC has no practical use except for crimes such as money laundering, terrorist financing and ransomware ransom. At the same time, due to insufficient and inconsistent international regulatory policies for the encryption industry, the market has spawned "an increasing number of global dangerous criminals." He said that the US Securities and Exchange Commission will soon crack down on IEO (Initial Exchange Offerings), and that IEO is just another fake investment scam.
4.2 The president of the Brazilian House of Representatives ordered the establishment of a committee to review the issue of token supervision
As Cointelegraph reported, the president of Brazil’s Chamber of Deputies has ordered the creation of a committee to consider the issue of national token regulation. On May 30, the Speaker of the House of Representatives, Rodrigo Maia, had asked for the creation of a special committee to provide an opinion on Bill 2303/2015, which seeks to regulate BTC and other tokens in Brazil. The committee will consist of 34 members in accordance with the "Rules of Procedure". The notice also noted that Federal Vice President Aureo Ribeiro proposed two projects on token regulation.
4.3 Marshall established a special fund to support its national token
According to Cointelegraph, the Republic of the Marshall Islands (RMI) recently established a non-profit organization "SOV Development Fund" to support the government's plan to develop and implement the national token Sovereign (SOV). The fund will be fully independent with a board of seven directors, two appointed by the government and two nominated by SFB Technologies. It is reported that SFB Technologies is developing the blockchain infrastructure of SOV.
4.4 Bloomberg: India will consider imposing 1 to 10 years in prison for those who hold, trade and mine tokens
According to Bloomberg News, India may consider imposing sentences of one to ten years in prison for investors, traders, and miners of tokens. The claim is said to be part of the 2019 draft of the Ban on Token Regulations Bill. Additionally, any offenses related to such conduct are cognizable and non-bailable. However, such punishment will be based on the seriousness of the crime and the actual or expected gain of the offender. The draft bill also introduces a 90-day time limit for all tokens to be disposed of by holders. However, after the news was released, some people questioned the authenticity of Bloomberg's report and believed that they should wait for the official notification from the government.
4.5 Lagarde, Managing Director of the International Monetary Fund: In the attitude towards the future of fintech, prudence is indispensable
