By Jason Pigeon, VARIO CEO and Founder
September 17, 2018
Well, it’s the Monday following an interesting week in the crypto world and I’ve done a summary of the stories that I thought were of most interest. Don’t forget to follow us on social media @VARIOmining to join the conversation.
Mike Novogratz calls the bottom.
Mike Novogratz, CEO of Galaxy Digital Capital Management, just called a bottom for all cryptocurrencies. With his tweet, Mr. Novogratz, a famous cryptocurrency investor, gives a snapshot of the Bloomberg Galaxy Crypto Index, and index that measures the performance of the top cryptocurrencies traded in USD. The index tracks the performance of crypto assets, like Bitcoin, Ethereum, Monero, XRP, Litecoin, and ZCash and was established earlier this year.
The tweet has gained massive traction. To back Novogratz’s claims, the markets have bounced back, with the total market cap surging by more than $13 Billion and the top 20 in the green on Friday*.
*according to CoinmarketCap.
Morgan Stanley latest to offer Bitcoin products to clients
Though it is yet to be confirmed by the institution, Morgan Stanley is rumoured to be planning to offer trading in complex derivatives that will be tied to the Bitcoin. Investors will be provided synthetic exposure to the Bitcoin price movements. This means that investors will be able to go long or short on the leading cryptocurrencies.
Morgan Stanley will be charging a spread for each transaction. Having already prepared to offer Bitcoin swap trading, this service could be launched once institutional demand is proven via an internal approval process.
As I have mentioned before in previous blogs – having institutional investors in the market is key to the future success of cryptocurrencies.
Ether Records Highest Trading Volume in a year
Daily trading volume for ethereum’s ether (ETH) token hit a 12-month high on Thursday.
The second-largest cryptocurrency witnessed a 24-hour trading volume of 850,000 ETH on Friday – the highest level since September 15, 2017, according to Bitfinex data.
Meanwhile, 24-hour trading volume across all exchanges currently stands at $2.33 billion, the highest level since July 18 this year, according to CoinMarketCap.
While high volume isn’t always a predictor of a market rebound, if trading volume increases, prices generally move in the same direction.
Crypto Market Cap to Hit $80 Trillion in 15 Years says Bitcoin King Tim Draper
Bitcoin investor and evangelist Tim Draper has predicted that the market capitalization of cryptocurrencies will increase by four hundred times in the coming one and a half decades.
Draper’s bold prediction isn’t as far-fetched as it may seem. He is equating the current state of the crypto market to the early days of the internet. Draper did, however, warn that the prices of bitcoin and other cryptocurrencies will first have to drop before rising (which we have seen).
The billionaire tech investor was addressing a private equity and venture capital summit in Singapore via video link when he said “The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here…The internet went after industries that were $10-100 billion dollar markets. Cryptocurrency will go after trillion dollar markets – these are finance, healthcare and insurance, banking and investment banking, and governments.”
We at VARIO tend to agree with Mr. Draper – disruption in those traditional industries will provide massive traction in the digital currency space.
All in all it was an interesting week in the news. We feel like the market is finally turning around, and as we all know, timing is everything. Watching this exciting market news feels great with the launch of our equity crowdfunding campaign just around the corner.
VARIO’s Coin of the Week
Each week we will highlight a coin we have our eye on and give a quick overview of why we think it is a high potential project. This week’s coin is taking on the counterfeit goods industry.
Coin for the week of September 17: VeChain
At time of writing
Market Cap: $798,862,514
24 hour volume: $15,847,587
Circulating Supply: 55,454,734,800
What it is:
VeChain is the world’s leading blockchain-enabled product management platform which revolutionizes how products travel through the supply chain. Using blockchain technology, VeChain makes it simple and secure for product manufacturers to collect, manage and share important product data with vendors and consumers throughout the lifecycle of a product.
A product on the VeChain platform is assigned a unique ID, which is stored simultaneously in the blockchain, and placed on the product with an NFC chip, RFID tag or QR code. At any point during the product’s life, the chip, tag or code can be interacted with, whether it’s a distribution or retail partner ascertaining batch membership, or a consumer learning more about a product’s authenticity. The company sees a broad range of applications, including brand protection, anti-counterfeit, and food safety.
Why we care:
Counterfeit goods are rampant worldwide and especially in Asia. Fake luxury goods are damaging to the real brands and counterfeit food products are highly dangerous.
VeChain has partnerships with China’s largest wine importers D.I.G. (an estimated 30,000 bottles of counterfeit wine are sold in China every hour), BMW (for storage of vehicle data and its secure, controlled provision to third parties), two of the world’s largest logistics companies (DB Shenker and Kuehne + Nagel), LVMH Moët Hennessy Louis Vuitton (one of the world’s largest luxury brands), and many many more.
Imagine being able to have an app on your phone that scans an RFID tag and tells you when, where, how, who made the product with traceability throughout its life cycle?
VeChain have a working product with real customers and massive strategic customers.
For that reason and the fact that we love coins that have small individual prices, VeChain is our star of the week.