CryptoAM: 67xx, Mulvaney <3 Crypto, and TaTaTu

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Blockchain: the final frontier. These are the stories of the readers of CryptoAM. Their life-long mission: to explore strange new technologies. To seek out new use cases and new things to tokenize. To boldy decentralize what no person has decentralized before!

3 things you need to know:

One: TaTaTu (Who?) completes third largest ICO ever. TaTaTu, a company which seemingly no one has heard ever heard about, completed a $450M private token sale. TaTaTu is a social network on the blockchain which rewards users for consuming content. When ads run, users will get paid directly, not the content provider.

  • Lambo Movie: Believe it or not, a bio-pic on the founder of Lamborghini is being co-financed and co-produced by TaTaTu .

  • Backers: Participants in the ICO reportedly include Block Tower Capital and Lady Monika Bacardi (of the liquor company).

  • Read more…

Two: Trump official wants to find a sweet spot for crypto regulation. Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, spoke at the Future of Fintech conference.

  • "We knew at an early point in bitcoin that as with any developing financial technology we needed to find that sweet spot … if Mt. Gox became a regular occurrence it dramatically undermines confidence in the markets and prevents innovation. And if we over-regulate and discourage people from entering the marketplace, that has bad consequences too."

  • Good stuff: US Government officials have really impressed me in recent months. The promise of crypto does not seem to be lost on them, or if it is, they stay silent on the matter. I anticipate when the SEC inevitably rules some peoples favorite ICO a security, there will be backlash, but they are genuinely just trying to protect the consumer (Wait, did he just shill the SEC??).

  • Read more…

Three: EY and Microsoft are developing a blockchain solution for content rights and royalty management. Microsoft intends to deploy this in the gaming sector first. If consumers buy branded in-game items in a game like Halo, those transactions would be recorded on the blockchain, royalties are automatically calculated, and the data would be viewable by all relevant parties with a stake in the transactions.

  • Protocol: This system is run on JPMorgan’s Quorum Blockchain framework and hosted on Azure cloud blockchain infrastructure. Obviously it’s a permissioned chain, the solution mainly aims to tackle transparency and inefficiencies in exiting processes, it does not need to be trustless.

  • "Deploying this blockchain solution will allow us to efficiently manage high volumes and automate processes, while at the same time improve partner satisfaction and enhance compliance. Smart contract technology is far more flexible and scalable than any prior solution for managing business agreements. We look forward to deploying this solution across our gaming ecosystem and exploring additional blockchain applications for other finance processes at Microsoft."

  • Read more…

Also in the news:

What I’m reading today:

Here’s an interesting post by Chris Burniske about flow & relexivity in the crypto-markets

As everyone already knows, crypto is a relatively illiquid market and it’s a market filled with retail investors. This has significant impact on the market dynamics and flow!

Net inflows and outflows from the crypto-markets affect the overall health of the market much more than than inflows/outflows from the traditional markets because of these reasons. The main reason for this is the high reflexivity of the crypto-markets. The article goes on to calculate that any dollar in/out of the crypto markets adds anywhere from a $29-$42 to the overall market cap

Reflexivity is best thought of as an internal feedback loop, where price action and investor perception become self-reinforcing. As a result of reflexivity, trends can become self-re-inforcing as people start to attribute more value to price action than to the fundamentals. (anyone who’s been on crypto-twitter knows this is definitely the case).

Reflexivity in the traditional markets is dampened by the fact that the assets being trading have true fundamental value, and there are lot’s of players making sure that they trade around fundamental value. This is not so in the crypto markets mostly because of 1) the majority of volume coming from retail investors and 2) the complicated nature of valuing crypto-assets.

This is an important read for any investor in crypto that wants to up their macro game. Seeing events ahead of time and realizing that they will have an effect on the market due to reflexivity will give you an edge. Calculating net outflows/inflow based on certain events can give you probabilities & price targets that are useful for trading these markets.

The article goes on to talk about how tax selling in Q1 of this was caused a large part of the massive correction due to reflexivity. As investors saw the markets drop due to tax selling, they themselves exited the markets. I personally read this section with a critical eye because it assumes that tax selling was the only downwards price pressure, and doesn’t take into account general profit taking. Still, it’s a great read!

Around the corner:

Tell us what we should add!

Market Outlook:

Hello friends. Here is the exact same graph as yesterday because we are in the exact same position. 20D EMA still acting as support, and looking towards 6.65k and 6.8k to tell us what’s next. There is too much uncertainty to make short term trades, but this day is likely a good entry point for the next couple of months.

It’s definitely not alt-season yet.

Here’s a reminder on what these criteria mean

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