The regulator, the EU has toughened stance against the cryptocurrency derivatives

The European securities and markets authority (ESMA) has toughened its position on contracts for crypto-currency derivatives.

The regulator of the EU agreed to temporarily set a limit of leverage for “contracts for difference” (CFD) associated with cryptocurrencies, up to 2:1. This means that retail investors will need to initially pay at least 50% of the value of the CFD.

A contract for difference (CFD) is an agreement between two parties to exchange the difference between the value of the asset at the time of opening the position and its value when closing the position.

In January, the regulator has started consultations with the public, stating that the volatility of crypto-currencies as an underlying asset for CFD is a serious problem for the protection of investors.

With initial limits of leverage 5:1 when investors could pay from just 20% of the total cost of CFDs, ESMA has moved on to the idea of reducing leverage to 2:1 or even 1:1. The organization also has considered a ban on the distribution, marketing and sale of these products.

In its press release, the regulator noted that cryptocurrencies still remain for him a matter of concern, and in the future do not exclude the adoption of more stringent measures for the protection of investors.

“Because of the specific characteristics of cryptocurrencies as an asset class, the market of financial instruments providing access to them, such as CFD, will be closely monitored and ESMA will assess the need for more stringent measures,” — said in a statement the regulator of the EU.

We will remind, earlier it was reported that ESMA has made cryptocurrency and ICO to the list of their top priorities in 2018. Jointly with other EU regulators, components of the European Supervisory authorities (ESA), the organization has issued a warning to investors about the risks associated with cryptocurrency trading.

The head of the European Central Bank (ECB) , Mario Draghi (Mario Draghi) said that financial institutions in the Eurozone “without enthusiasm” are cryptocurrencies, unlike the public.

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Guide: Cryptocurrency options

Many investors, including cryptocurrency, unaware of the existence of the options on the digital currency. However, they can be a great way to play price changes, limiting risks. Here’s what you need to know about cryptocurrency options.

How cryptocurrency options

Technically cryptocurrency options are designed the same as any other. The main difference is related to the lack of regulation of the cryptocurrency space. At the moment, many leading financial institutions believe digital currencies are new, untested and unstable. As a result, the trade CryptoStream — including options — remains largely outside investment and financial mainstream.

And yet cryptocurrency options do exist. And they give investors a new, potentially lucrative way to participate in the cryptocurrency market.

The advantages of option trading

A call option gives the investor the right to buy or sell cryptocurrency at a predetermined price within a specific period. It is important that the option does not oblige you to buy or sell, and gives you the opportunity to make a transaction at any time prior to the expiration date.

Traditional financial markets options are used to limit the risks and make a profit. Buyers of options hope that the price of the asset will rise or fall by the deadline. It is important that the potential loss is limited to the amount of premium paid.

How to work cryptocurrency options

Options trading is different from trading in cryptocurrencies. In the ordinary course of trade an investor can buy or sell coins and tokens at any time. It is obvious that he hopes to sell the cryptocurrency more expensive than bought.

Options this is not the case. They operate within a limited, predetermined period of time. And the price of the underlying asset already fixed.

Depending on the position, the investor hopes that the bitcoin will rise or fall in price against a fixed price. This must occur before the expiry of the option.

Now that you know the basics, let’s move on to some important notions and concepts from the world of options trading that you need to know.

A call option

A call option gives the holder the right to purchase cryptocurrency at a predetermined price before the deadline.

Buying a call, the investor hopes that the bitcoin will rise in price over a given period of time. If that happens, he can buy it at the price of the option (which in this case will be below market) and immediately sell on the exchange at a higher cost.

A put option

Unlike a call option, a put gives the owner the right to sell cryptocurrency at a predetermined price within a certain period of time.

In this case, the investor hopes that the cryptocurrency will become cheaper. If that happens, he will be able to sell it at a price much above the market, making a profit.

The future of cryptocurrency options

It is important to note that some exchanges already offer scriptoption. However, the sector of derivatives linked to digital currencies, is still at an early stage of development.

The growth of interest from influential financial institutions such as Goldman Sachs (the Bank is considering creating a cryptocurrency securities), you can expect increased availability and prevalence of scriptoptions.



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Russia is in second place in the world by number of capturadora

The specialists of the Belarusian marketing Agency BDCenter analyzed the 30 most popular cryptocurrency exchanges and came to the conclusion that the largest number of users of these platforms based in the United States, Russia and China. Fourth and fifth place in the number of capturadora occupied Vietnam and Turkey.

Under the scope of the analysts got Binance, Okex, Huobi, Bitfinex, Upbit, Zb.com, Hitbtc, Coinbase, Kraken,Bitstamp, Bittrex, Gate, Poloniex, Gemini, Coinsbank and other exchanges.

BDCenter data show that the average age of the trader in China is 20-30 years in the US — 30 years. In Russia 50% of traders are in the age of 25-40 years old, and 30% — from 18 to 25 years.

Analysts also cite data Japanese financial services Agency (FSA) in April. FSA statistics shows that in Japan is more than 3.5 million cryptocurrency traders. Most of them men aged 20 to 30 years.

It is noted that 50% of users of exchanges have completed higher education in Economics or mathematics. According to the study of the eToro platform in 2017, 82% of traders are beginners, 11% of traders with an average experience level, and only 7% advanced.

«All exchanges more than 70% of traders are men. The exception on the exchange exx.com where the percentage of female audience is higher and 52,67%», — the report says.

Experts also found that the most expensive listing price of amount of cryptocoins on Huobi ($3.5 million), Bibox and Binance ($1 million). Most popular cost of listing is 10 BTC. 13 exchanges of 30 has its own token, the report says.



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WAX tokenserver trade in-game assets

Decentralized platform WAX, which became the technical and ideological continuation of the work of the largest trade platform for virtual items OPSkins, reported on their plans for tokenization trade in-game assets.

The WAX platform was developed by the founders OPSkins to service more than 400 million players, collecting, buying and selling virtual items. Using a simple stock widget WAX, players will be able to enter the world market, where all transactions will be confirmed through the mechanisms of trust of the blockchain.

Now the market of virtual assets is represented by hundreds of individual areas, each of which operates in its local segment. The downside of globalization is largely restricts the development of the industry, and many projects are already looking for a solution to this problem.

The founders of the site OPSkins, one of the pioneers of the trading game the assets came from to create their own Protocol for decentralized exchange. The project is called WAX — Worldwide Asset Exchange (eng. World Asset Exchange). According to the developers, the new decentralized platform will bring together all market participants: sellers, buyers, appraisers, Trustees and all other elements in one ecosystem to collect everything related to the transfer of assets transactions within the network.

Instead of a complex multi-level process API use and bots, the ecosystem of WAX will offer sites parties a simple mechanism to operate the network and receive commissions.

According to the creators, among the guarantors and the smart contracts platform WAX will use a rating system to further motivate conscientious behavior of the network participants.

According to the roadmap of the project by the first quarter of 2018, the developers intend to launch a test version of the network, and the third quarter is scheduled to launch a prototype. Full release is scheduled for late 2018.

More information is available on the project website.

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Rating Agency DigRate assessed the prospects of the project Playkey

Agency for the evaluation of digital asset DigRate conducted an analysis of the project Playkey and has assigned a A2 rating: moderately high probability of long-term investments and average sensitivity to market conditions.

According to the description, Playkey is the first cloud gaming service on the blockchain, which will allow gamers to play demanding games at any time, anywhere and on any device connected to the Internet, and miners – earn on granting access to their facilities.

Playkey for several years works at the market of cloud gaming and is a leader in the number of users connected right holders, infrastructure and other parameters. The project is now committed to the decentralization of infrastructure by incorporating high-efficiency equipment on private miners. It is expected that this will allow the company to increase the number of users, reducing the cost of services for them and to make the system more stable and functional.

For the calculations between the players-users, miners, providers and the company Playkey involved in the development and maintenance of architecture, will use tokens open source PKT (Play Key Token).

The interest of the miners, according to Playkey, to earn two to three times more money than it brings in mining cryptocurrency, but with less risk. Prices on hardware will have a direct correlation with the level of demand for the company’s services and the final cost of the token will be determined in consultation with the community of miners.

Nevertheless, experts remain doubts about the motivation of the miners to give up their power under a cloud gaming is, getting paid in RKT. Already exist and will be a new alternative players who work for Fiat money and offer a competing service. Playkey command expects a constant struggle for market share, otherwise the tokens unpopular platform will cease to be in demand, says DigRate.

Some questions from the experts is also studying the legal part of the project, in particular regulatory risk and determination of the percentage of contributions to the Fund Playkey of the earnings of the miners.

Recall that the team DigRate has conducted an analysis of a number of ICO projects, including GoldMint, Privatix, XRONOS, Robomed, MicroMoney, BitClave and Biocoin.

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The robbers who attacked the bitcoin brokers in Singapore, expects corporal punishment — #DeCenterDaily

Mastercard hired 175 new developers, including for the creation of blockchain projects.

Exchange of cryptocurrency will be monitored in the framework of the law against money laundering and financing of terrorism.

The Ministry of Finance developed a draft law «On digital of financial assets» was submitted to the Duma on March 20. April 9, the government Commission on legislative activities considered opinion on the draft law compiled by the Ministry of Finance, Ministry of justice, Ministry of communications, Ministry of economic development and the Bank of Russia. According to the document, the exchange of cryptocurrencies in the Russian or foreign currency on the equivalent of 600,000 rubles or more, should be subject to mandatory exchange controls. Rosfinmonitoring believes that operators engaged in the exchange of cryptocurrency, it is necessary to include the organizations referred to in article 5 of the 115-FZ, thereby obliging them to adhere to all national standards to prevent money laundering (under the law against money laundering and terrorism financing, the mandatory control is already applied to «traditional» banking transactions in the amount of 600,000 rubles). The Cabinet also drew attention to the need to tax the profits from transactions with cryptocurrencies and make the appropriate changes to the legislation. Ministry urged to clarify how will be the taxation of mining and what are the accounting rules for cryptocurrency trades. According to Anatoly Aksakov, at the end of the meeting, the government supported the bill and agreed to modify certain provisions for the second reading (the bill came into force, it must pass three readings in the state Duma, and also get the approval of the Federation Council and the President of Russia). President RAKIB Yuri Pripachkin noted that, according to the current version of the bill, transactions with bitcoin can be subject to standard control of banks and Rosfinmonitoring, which the miners will seek to convert mined coins into foreign currency abroad.

The United Arab Emirates announced the blockchain strategy to 2021.

His Highness Sheikh Mohammed bin Rashid al Maktoum, Emir of Dubai, Vice President and Prime Minister of the UAE, has announced plans to implement blockchain-the UAE strategy 2021, the success of which the country should become a world leader in the blockchain industry. The strategy has laid down the principles of happiness of the citizens, enhance government efficiency, as well as the expansion of legislation and global entrepreneurship. According to the plan, the introduction of technology will significantly save the time and money required for transmission of documents up to 11 billion dirham ($3 billion) a year. His Highness believes that the use of the blockchain will increase the quality of life in the UAE and the level of happiness of the population: «By 2021, 50% of government transactions at the Federal level will be carried out using the blockchain. Technology will save you time, effort and resources and will enable people to carry out most transactions in a timely manner — as required by their work and lifestyle,» said Sheikh Mohammed. The government will also support University courses on the technology of the blockchain. Crypto-entrepreneur, managing partner of Full Tilt Capital Anthony Pompliano supported this policy, saying that «the virus is spreading, and even the government caught the wave».

Zcash for completed another ceremony, «Powers of Tau», approaching to implement the hard forks.

Based on anonymous cryptocurrencies is the zcash for Protocol Zero Knowledge Proof (the proof with zero disclosure). To create and confirm the evidence you need to set the public parameters. But if an attacker discover the algorithm for their task it will be to create your own false evidence. Because zcash for holds closed the ceremony, «Powers of Tau», which narrow the circle of participants generates a random code for the record. Participants then get rid of the «toxic waste,» breaking the computers that generated the data. Shaun Bowe, a member of the zcash for Foundation, announced the completion of another ceremony in newsletter: «All participants did a great job, I am very pleased with the variety and openness of the ceremony. Many members of the crypto community took part or watched what was happening.» The event was attended by about 90 participants, each of which used a unique method to generate «cryptographic toxic waste», — reported on GitHub zcash for Foundation. The ceremony was held in the eve of the second of the two hardforce planned for this year, Sapling (first hardwork, Overwinter, is also not yet implemented and should be held on 25 June). Sapling adds a zcash for support of new functionality, including the way disclosure of information about payment transactions between blockchains and tokens zcash for release. In January, during one of the previous ceremonies, «Powers of Tau», the developers used to generate random numbers of the Chernobyl nuclear waste. Edward Snowden recently revealed that zcash for is the most interesting cryptocurrency, because «its performance privacy is really unique.»

The robbers who attacked the bitcoin brokers in Singapore, awaiting corporal punishment.

The crime was committed on 8 April. The two brokers agreed to meet with the alleged sellers of cryptocurrency. However, during a personal meeting, they never received bitcoin, but instead lost $365,000. The police were able to quickly identify the personality of criminals, and now they are threatened by imprisonment from 5 to 20 years and at least 12 strokes of the cane.

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The results of the week — #DeCenterWeekly

«Look at APTLD and me. Yes, I’m on a horse»

32,000 Indians signed a petition against the ban of cryptocurrencies.

Thursday, April 5, Central Bank of India has decided to prohibit transactions with cryptocurrencies: financial institutions are required to cease associated with cryptocurrencies activity for three months. On the same day cryptologist India made a petition, sending it to the Central Bank and the Prime Minister, with an appeal not to smother developing technology, and to create a legislative framework that will enable it to grow and make a positive impact on the economy. To date, the petition on the website change.org signed by more than 32,000 Indians. The document’s authors draw attention to the fact that the local cryptocurrency exchanges are trying strictly to adhere to the standards and many are already enhance KYC standards. The petition also mentioned the plan of the Central Bank to issue its own cryptocurrency. The protesters said that the current CEO of Microsoft and Google have Indian origin and in favorable environment could create a local Internet company, hinting that the next generation «technical geniuses» can go on their way. To similar risks and appealed to the Chinese crypto-businessman Kai Wensheng criticizing the restrictive policy of his country, and saying that China may miss the «new Amazon». Earlier, in December, a petition in protest against the announced restrictions were citizens of South Korea, and recently it became known that the Tax administration, the Ministry of justice and the financial regulators of the country to discuss the opportunity to cancel the ban on ICO. The mayor of Seoul said that after the «terrible resistance» on the part of society the government is «seriously thinking» about possible exemptions.

Shanghai police broke the blockchain conference.

Thursday, April 12, in China had to go through the conference of the Global Fintech & Blockchain China Summit in 2018. However, around noon local time, the police interrupted a morning session, and ordered all participants to leave the event. The official reasons for intervention are at the moment specified, but, according to the assumptions that appeared in the media and on Chinese social network Weibo, the conference program was claimed to ICO project, which investors lost a lot of money. They filed a complaint with the police. The provider, PTP International, has denied the rumors, saying that the event is fully consistent with Chinese law: «We’re still investigating the reasons for the suspension, and at the moment the police refers to the security threat. We think through possible compensation to the participants. The conference was held in accordance with Chinese regulations and did not include any presentation. ICO» — said in a PTP International.

Platform trade power Golem launched the main network.

Golem gathered during ICO in 2016 820,000 ether ($8.2 million at that time and about $340 million today), two years later introduced the beta version of a core network, which in the white paper is described as «a Copper Golem» — the first stage of the project. In the current format of service based on the Ethereum blockchain, allows computers to «rent» the unspent energy of the Central processor unit (CPU) and create computer-generated images (CGI) using Blender (including animation, visual effects, interactive 3D applications and video games). Interface, is directly linked with Blender, allows you to purchase computing power for the Golem token — GNT. This release «a Copper Golem» is intended to test the technology in real market conditions with real money. BY Golem connects providers of computing power with the «buyer» and directs the provider smaller tasks, which are then combined in P2P networks and presents in a single image, says CEO Golem Julian Zawistowski. In 2016 Golem represented one of the first generations of Ethereum applications: «to Underestimate the complexity of what we want to create a characteristic overall development and particularly for the blockchain,» says Zawistowski, explaining the prolonged work on the project. According to the white paper, next, more advanced versions should be a «Clay Golem», «Stone Golem» «Iron Golem». Simultaneously with the release of the core network team announced the launch of the bounty program that will encourage developers about detected bugs.

Gemini launches auction of blocks for bitcoin and ether, and may implement a patented system that adds security to the transaction.

Thursday, 9:30 am et, the cryptocurrency exchange, owned by bitcoin billionaire brothers Winklevoss, has launched bidding for blocks of two leading cryptocurrency. The new option is designed primarily for institutional investors: the minimum threshold is 10 bitcoins and 100 air. Trading blocs are designed to provide «an additional source of liquidity,» enabling them to make large transactions outside of the basic books of orders. Also, thanks to the new function, buying or selling large amounts of the cryptocurrency will not have a significant influence on its course. As explained by the exchange, «any user can place an order by specifying the type of transaction (buy or sell), amount, minimum filling volume and price limits». Market makers will only receive information about the transaction amount, minimum amount and an upper limit: if they decide to do the deal, the block is filled. «In accordance with our obligations to maintain a fair, transparent and regulated trading of the warrants for the units in electronic form are immediately transferred to the participating market makers that will provide best execution of the transaction and the pricing for program participants,» — said on the website of the exchange. Also this week, the company Winklevoss IP, LLC received a patent for the creation of a system to increase the security of transactions. Authors Andrew Lucus, CEM Paya and Eric Weiner describes «software for secure transaction processing in cloud computing». The new development uses a combination of standard cryptographic techniques, including hash functions and digital signatures, and are likely to be used on the stock exchange Gemini.

Kadena raised $12 million in the framework of SAFT.

Platform smart contracts Kadena will Martino and Stewart Popjoy (formerly the leading developers of blockchain-project JPMorgan) on Thursday announced the completion of the second investment round in which participated Multicoin Capital, Devonshire Investors (a subsidiary of Fidelity Investments), SIG, Asimov Investments and SV Angel. Popjoy said that the funds raised will go to create a technical ecosystem platform Chainweb. Earlier, in January, in a private placement SAFT Kadena attracted to the creation of Chainweb $2.25 million. The developed Protocol uses the model of parallel blockchains, which allows you to distribute tasks without overloading the network. In this circuit are connected on the principle of Merkle tree and thus interact, being in the same blockchain system. «Apps like crypto-kittens can work on their own 5-6 circuits, and larger events such as the ICO, will be held on a different circuit, while not slowing each other,» said Popjoy earlier. Run the test network was scheduled for August, and the release of the core network Chainweb to be held in December. However, as said Popjoy, by this time yet «to settle a number of issues». In particular, Kadena intends to release a number of tools that will be made publicly available and tested by users. For safety Popjoy emphasizes the need of formal verification in which «computer proves mathematically that the network has no vulnerabilities»: «the blockchain regularly turning to formal verification, usually after the major bugs in Ethereum» he said, Recalling the bug Parity, and noting that the smart contracts are often responsible for huge amounts of money.

Stabilini Basecoin and Carbon has successfully completed the investment rounds.

Intangible Labs, the creators of «stablon with algorithmic Central Bank» Basecoin, from March 22 to April 3 grossed $125 million during tocancel system SAFT (under assumptions of experts, this is the ICO has recently caught the attention of the SEC). It was reported to the SEC on attraction of the specified sum from 225 investors. Basecoin intends to avoid the inherent volatility of the cryptocurrency due to its availability of other digital assets: oracles will track the prices of these assets, and the Protocol needs to adjust the number of tokens so that the price Basecoin remained stable. In addition to the «base coins» startup engaged in the development of «underlying bonds» and «underlying shares» — a cryptocurrency which will support Basecoin, helping the Protocol to manage the «money supply». The project is supported by many large funds, including Andreessen Horowitz, Pantera Capital, Polychain Capital and the Digital Currency Group. Co-founder of Coinbase Fred Erasmus took Basecoin meaningful for the ecosystem project: «it is clear To me that the developers of the crypto-industry are interested in… stable coin,» said Erasmus during the Token Summit II in San Francisco. On Thursday the completion of seed funding round, said another project stablon — Carbon — collected $2 million from such funds as General Catalyst, Digital Currency Group, FirstMark Capital, Plug and Play Ventures and The Fund. As Basecoin, Carbon refuses used in the Tether model reinforcement Fiat, replacing its algorithmic monetary policy. «If we create a mechanism that is now used by the Federal reserve Bank, but make it decentralized, we would not need to trust a Central authority. We can just trust the code,» explained co-founder of Carbon Connor Lin. The Carbon system consists of two tokens: stablein, the price of which must equal $1, and «credit token», which ranges in value, offsetting changes in demand. When the price falls stabilini, an auction is held, during which anyone can give their token, thereby reducing money supply and raising the price, and receive a «credit token». In the future, when the price rises above $1 and offer will increase, the holders of «credit token» will receive a new stabilini and this whole process is entirely performed by the algorithm.

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Laws Tokeneke

Takenaka — the education system of the token pricing policy is one of the most discussed topics on the stock market. In this connection, Fred Krueger, founder of WorkCoin and PhD from Stanford University in mathematical methods of operations research and statistics, conducted a detailed analysis of the current cryptocurrency market brought eight key laws on which is based the modern model takenouti.

In the work of Krueger as an example, is regarded cryptocurrency ether, and are used to calculate the following variables:

 TS (Total Supply) — the Total number of available tokens: 97,000,000 esters.

 P (Price) — the Current rate of token: one ETH is $834.

 The HT (Hold Time), the Time that the ecosystem participants can hold a token (share). For example, the value 0.1 will fit, if the average ecosystem members hold the token a little over a month (one tenth of a year).

 TV (Transaction Volume) = volume of transactions per year, calculated in U.S. dollars. Consider the case when the market place transaction of $100 million per year, and assume that they all come with the token. In this case, TV = 100,000,000. In the case of broadcast TV = $1 trillion.

 GTV (Growth in Transaction Volume) = the Growth in the transaction volume for the year. It is desirable that the value of the TV has increased to the extent possible. The rate of growth of 100% or more means that in the market there are new participants who need the token. The figure of 0% indicates that the token corresponds to a balanced price that will rise.

 TT (Transaction Time) = Time of the transaction. How much time is spent on executing a transaction with a token.

 TMCAP (Token Market Cap) = Market capitalization token = TS x P.

 R (Ratio of Transaction Volume to Transaction Market Cap) = TV / TMCAP = the ratio of the volume of transaction in the year the market capitalisation of transacti. For example, for air the value is about 0.1.

R1 (R adjusted for Transaction Time) = R / TT. The value of R is adjusted in ratio with the time of the transaction.

 R2 (adjusted R for Hold Time) = R / HT. Second value of R is adjusted in proportion to the time during which the network participants hold the token.

Act 1: the Value of HT should be the maximum

According to the article Kyle Samani, is devoted to the problem of the velocity of circulation of tokens, there is no benefit in investing in tokens that ecosystem members hold a short period of time. For example, those tokens that are intended for the purchase of tickets for events. If the need for tokens to appear only on the condition that the holder must purchase a ticket and the ticket seller immediately to cash or exchange them for other cryptocurrencies, such tokens may not appear long-term needs in the market. Even assuming very high transaction volumes (TV).

Law No. 2: HT > TT

The time that the ecosystem participants can hold a token (HT) is not equal to the time required to conduct transactions (TT). It’s not the same. In the case of transactions with bitcoin, each requires a relatively short period of time (less than a day). However, in order to buy bitcoin for Fiat, sometimes it might be a week or even more. Therefore, the average user, who are constantly in need of bitcoins most likely will purchase them, if possible, for the future, so they’re always in the account. The same applies to air or any other useful Aldona.

Obviously, so there’s a good reason to hoard the tokens, especially if they are difficult to buy and sell. Moreover, altcoins can enter a small Commission when selling (whip) and to reward those participants that are involved in their accumulation (gingerbread).

Law No. 3: Takenaka based on variables that are not captured under white paper

Many people make erroneous conclusions about the projects in detail does not paint plan tokeneke in their white paper. As the Law No. 2 economic many accessory options you can use after the launch of the ICO. The fact that the company did not plan their usage in advance, does not negate their existence.

Act 4: After complete startup of the token, the value of R should be much lower than 10

At the time of writing Ethereum was about one million transactions per day, at a ratio of $5,000/transaction. This net income equal to $5 billion a day, or forecast to exceed $1.8 trillion per year by extrapolating the current values. So, at the moment of maximal activity of the Ethereum network processed transactions worth $23 billion per day.

With a market capitalization of $81 billion in the network occur transaction by the formula R = TV / TMCap when the ordinal value of 0.1. Which leads to a value that is less than 10.

In the ecosystem, the annual income of which is equal to $10 million under $100 million turnover in tokens, the pressure to increase the rate of tokens is extremely low. On the other hand, if the annual income is 10 times higher market capitalization, as is happening in Ethereum, it is likely that the rate of the token will grow.

However, the value of R is very rough to estimate the cost of the token because it does not include the variable values TT or HT.

Law No. 5: I guess, there must be a reason to BUY tokens, not just to earn

In the previous analysis, it was assumed that the ecosystems were annual income, in other words, tokens are not just issued, but bought new participants. But not all ICO are working on the same principle. Many new players of the stock market believe that all must be given the gift, including the tokens with zero revenue model.

However, this time hard enough to perform. So, until recently, STEEM schedule seemed pretty hectic.

The market capitalization of tokens in STEEM $1.6 billion March 16, 2017 dropped to $17 million. But then it happened:

After new highs in December STEEM market capitalization is $1 billion. In this connection the word «probably» appears in the title of the Law.

Law No. 6: Indicators R1 and R2 are much better than R to calculate the value of the token

If the ecosystem is the ratio of the volume of transactions (R) at $100 million a year, and the average transaction time (TT) equal to 0.1 per year, for each specific period of time accounts for $10 million. If market capitalization is $100 million, then R = 1 and R1 = 0.1, which means theoretically any of the 90% of tokens that are outside of transaction, can be sold to Finance a new ecosystem participants.

However, this formula ignores the value of HT. If the average HT is 6 months, then 50% of these tokens are existing members of the ecosystem. In this equilibrium, any increase will affect the price increase.

Law No. 7: the Growth is important. VERY.

In any equilibrium state, the increase in the number of transactions reflected in the increase in prices. In this case, it is necessary to consider many other factors, which are difficult to perform correctly and to calculate their value. But while in the ecosystem is a sufficient number of tokens involved either in transactions or in the possession of the participants, their price will rise. This factor may explain the crazy growth tokens STEEM.

Law No. 8: you Need to strive to ensure that your sellers become your buyers

The true goal of any ecosystem is to make all parties both buyers and sellers. This is true both for the ecosystem of Bitcoin and Ethereum, where users buy cryptocurrencies and send them. The marketplace requires that sellers found themselves buyers of tokens, instead of just trading them for Fiat or other cryptocurrencies. This law is directly linked to the Law No. 1: the participants want to keep cryptocurrency, thereby increasing the value of HT.

In conclusion

To make a good model of the price tokens is extremely difficult. However, you should pay attention to:

High growth (or potential high growth).

Measures to promote ecosystem participants who are willing to keep the tokens, or Vice versa — to introduce the long transaction processing time, so that was an incentive to hold tokens. Alternatively, you can encourage those who hold the token and enter the Commission for their removal.

Acceptable circulation transactions (or possibility thereof) in relation to market capitalization.

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The Japanese government will begin to regulate crypto-wallets

Despite a rather loyal attitude of financial regulators of Japan to the crypto industry, which recently has the status of a self-regulatory, local authorities continue to develop new control measures services, working with digital currencies. So, during the ninth meeting of the study group of the financial services Agency of Japan (FSA) devoted to cryptocurrencies, the financial authorities of the country discussed the terms of establishing legislation for the control of crypto-wallets. What caused this decision and how it will affect the operation of the stock market in Japan — read our material.

According to the current law on payment services in Japan, all companies providing services in the field of trade, digital assets, must be registered as a cryptocurrency exchange and to license the FSA. Today there are 16 licensed kryptomere. In March of this year licensed trading platforms have United in the Association of exchanges of virtual currencies (JVCEA) to get the status of «certified business associations in the field of financial calculations.» JVCEA is also responsible for settlement of all disputes and the creation of a regulatory framework responsible for monitoring the activities of local kryptomere. In October of this year, the chief financial regulator of Japan decided to provide this crypto-Association status of self-regulation.

However, due to the fact that crypto wallets do not provide services in the field of trading digital currencies, and simply manage assets, transferring them to the customers, their activity does not fall under the jurisdiction of neither the FSA nor JVCEA. «Crypto-wallets are similar to Bank account where you store the digital currency. These services and crypto currency exchange, work with a great volume of cryptocurrencies, but they do not obey the laws or regulators» — explained the position of the financial authorities, the local edition of Itmedia. However, the FSA understands that the purpose of cryptocurrency wallets to manage the settlement and, therefore, the main financial Agency of the country required a set of rules for the regulation of their activities.

During the session of the research group the main focus of FSA was accounted for by the service providers in the field of storing digital assets, and not on manufacturers of hardware wallets, and software developers, since many wallets are in the form of code without control of a person or company. The regulators noted the need to comply with the new legislative framework with international standards to prevent money laundering and financing of terrorism, which were developed by the Task force the financial action task force (FATF).

The implementation of the legislative draft

During the meeting, the study group FSA has separately considered the risks associated with use of services of storage of digital assets. According to the group, primarily the users of these services encounter cases of loss of funds during cyber attacks, the disruption of wallets and money laundering. In this connection the list of the control measures will include:

The establishment of internal control systems;

Managing cryptocurrencies owned by the service provider and its customers;

The audit of the financial statements;

The publication policy of the company in case of burglary;

The provision of reserve funds to compensate customers for lost funds.

Also, according to the plans of financial regulators of Japan, in the period of transition to the new rules storage services cryptocurrency cannot add new service providers, customers, or crypto-currencies and tokens. Moreover, these services will be obliged to publish on the official websites of the status of their registration with the FSA. And those services, which will waive the registration will be closed. At the same time frame of the introduction of new rules not specified.

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Maria Stankiewicz: one should Not expect permanence and tranquility from the world of funds, including cryptocurrency

October 31 to the first digital asset Bitcoin was 10 years old. During this time, the cryptocurrency market from the ground up to over $200 billion, there was about 15,500 exchanges. These figures regularly increase interest, despite the ever-changing moods, does not vanish. One reason for this is that the cryptocurrency remains an effective method of earning. Trading on the stock exchanges of digital assets attract Fiat traders and other users, which are captured by the idea of getting a quick profit.

However, many users, especially if they have not previously encountered with trading, there are questions on the entrance to the cryptocurrency market. To explain the action on the exchange of digital assets we spoke with communications Manager crypto-platform EXMO Maria Stankiewicz that you need to start trading and how to cope with all the difficulties that preparing a volatile coin.

Before you start to discuss trading, tell us about your exchange. What has happened in your company?

As you know, today, to stay in place, you need to run, and to actively develop — you need to run very fast, especially in the cryptocurrency industry. We try constantly to change, to test new services and products and launch new stocks and enter new markets. In the summer of 2018, we have added 13 new cryptocurrency and 34 currency pairs, Turkish Lira added in addition to the other 5 Vietnam currencies, TradingView has launched graphics, a new system of kesbeke when the refund happens every day, hooked up a new payment system Mistertango, WebMoney, SWIFT transfers, start on the Turkish market.

As a new cooperation cryptocurrency exchanges, in particular, the entry into the Turkish market, to help the common trader earn more? Because at the moment Lira is the national currency of Turkey is not in the best condition.

We analyzed the situation and noticed that the entry into the Turkish market is primarily due to the fact that over the past six months the number of new users from Turkey increased by 3 times compared to the same period last year. Seeing the demand, our market decided to fully start in a new region by adding the Turkish Lira and making a version of the website and customer support in the Turkish language. Now we launched the promotion — 0% Commission for input and output of the Turkish Lira, which, of course, encourages traders to trade on our exchange. Various affiliate promotions (including payment systems, 0% Commission), adding a popular and interesting cryptocurrency, 100% kesbeke, regular airdrop, contests with coins allow you to not only retain existing traders and attract a huge number of new. Despite the market correction, registration go up, which means that the exchange is on the right track.

The industry is constantly evolving. What changes in trading crypto-currencies have occurred in recent years?

The major trend of 2018 — the arrival on the stock market whales are very smart professional investors, Fiat investment funds that previously avoided the exchange side. We tried to work with major industry players, sent them the requests for cooperation made them special conditions with reduced fees, because the volume of transactions are high. We come to the Russian and Asian funds, with them very interesting to work with. In addition, they affect the volume of trading of the exchange — they have increased. This is a big plus for users.

The second trend of cryptocurrency exchanges for ICO. Now for a listing of the queue stood more than 250 coins is too much. Such a large number can be attributed to the plume 2017, when there was a boom ICO, all have designed their tokens and wanted them to make a list of some of the exchange. Now a Scam is not so much because the euphoria has passed, users began to better understand the digital currency industry. Projects have become much better.

How is the listing of coins?

Initially, we, like all cryptocurrency exchanges, please fill in the questionnaire. Consideration of the application takes from 3 days to several weeks. Very important for us to be fully confident in the project.

We can distinguish 5 main criteria, which is the final conclusion to list a particular coin on the exchange or not.

Evaluation of the project from the point of view of the work done is interesting and promising idea, is there a working MVP (minimal working prototype), it looks like a roadmap, how moves work, respect for deadlines.

Evaluation of the project from the point of view of the community: what is common information field around the project, how are the threads on specialized forums.

Evaluation team: who is making our project was a successful project professional in team history. Most often we prefer to talk personally with the CEO of the project, to understand the motivations and plans of the team.

Project evaluation terms of market value — whether your business benefits and market needs?

Evaluation of the project in terms of a willingness to work on joint marketing and PR: for us it is important that we together can create interesting infopovod and lead your customers to our exchange and our clients — be interested in new and interesting coin.

What, in your opinion, the most important difference piatogo trading of cryptocurrency?

Anyway, let’s first define what an exchange. You need to understand that this is not a place where you can just passively watch your contributions when you have invested in any asset and expect its growth. For profit need to participate in trade, besides, it’s very interesting. It is encouraging that people are beginning to understand that the trading process requires knowledge and understanding of the main trends and existing dimensions.

Fiaty trading was formed decades ago. The first stock exchange was opened in the 16th century and still exist today, and cryptocurrency platforms for the modern world — a new phenomenon.

Strengths of cryptocurrency trading include:

Sudden emission impossible. The total quantity of a particular currency is known in advance, and no one is able to «turn on the machine and print a few million» for his own purposes;

Use of money can be directly, without intermediaries such as the Bank or the exchanger;

The cryptocurrency world is distributed by default. No single center, the organizer of the system, performance provides a huge number of casual users of nodes, where each node independently makes a decision about the (in)validity of transactions.

High speed. Transaction often take only a few minutes;

The transaction cost is fixed and does not depend on the amount transferred. This is especially true for large transfers — the Bank would have to pay a percentage of the amount;

Logs of all transactions public. Therefore, all movements of money can be tracked: for example, when (hypothetical) payment of taxes with bitcoin, you can check where it went each paid Satoshi. It is very important from the point of view of fight against corruption;

Create a new wallet takes a couple of minutes;

Security. Bitcoins, and other cryptocurrency, you cannot block, you cannot take away through the courts or through pressure on banks;

Freedom. Cryptocurrency work anywhere there is Internet, ignoring any boundaries.

But there are weaknesses. These include:

The money supply of each currency is limited and can only be reduced, withdrawn from circulation money as a result of lost data is not replaced by new ones;

The lack (currently) of security of course. National currency secured by manufactured in the country goods and services, in national currency taxes and fees. It makes the national currency demand. The cryptocurrency world, in turn, secured solely by the demand for it;

High liquidity risk;

It is difficult enough to explain to users that never experienced the world of cryptocurrency, what it is and how it all works. Because of this cryptocurrency is not yet become the object of public use.

So, we are trying to talk about bitcoin and technology in an accessible and understandable form for everyone. What is the capital, in your opinion, need to capturadora to start?

To understand the basics of trading stop minimum capital. Much depends on the chosen strategy, from your preferred currency pairs from your own expectations. For example, in a pair XRP/RUB minimum size limit for entry is 15 Ripple — today it is 360 rubles, or about $5.5 at the current rate. Of course, with such a low Deposit to count on a considerable profit in the short term have hardly. If you have the desire to engage in the world of trading seriously, you may want to increase the initial Deposit, there is no upper limit. However, any business should be approached systematically, step by step.

Then how best to distribute assets to $1,000, up to $10,000 and more?

There is no fundamental difference. If your trading strategy is/technique is able to double your capital in 3-4 months — what difference in what currency will be increase? In General, diversification is desirable, but it is not the cornerstone of the trade.

At what point is best to enter the cryptocurrency market, given its variability? Not too late now to enter the industry?

Jonathan swift, Anglo-Irish writer and social activist, said that there is nothing more permanent than temporary. Therefore, one should not expect permanence and tranquility from the world of funds, including cryptocurrency. Should look for ways to make money from this volatility in this dynamics. The whole point of market entry is determined by your beliefs, your trading strategy to your character. For example, if you prefer medium term trading, then you will be protracted long-term movements, which are present on the market with surprising regularity. If you are closer to the soul of intraday trade (ranging from scalping to trade from levels of distribution or other methods), the volatility of the market and found the balances you will only benefit.

As rational (if possible) to behave in a bear market? And how to behave in a bull market?

Here the strategy is quite simple: to sell when the rate is falling, and buy when the rate is increasing. You should not try to expand the course with its asset — it is simply not enough.

In a bear market each of the next transaction must be at a price lower than the previous one; bullish — the opposite situation. Thus is formed the line or bears line the bulls, averaging the entry price.

Where and how can you take risks?

Risk management each trader determines his own. Despite the overall diversity of strategies in General, we can distinguish several features in common.

Do not sit up all day for the trade. Over time, mindfulness and concentration decreases, increasing the possibility of error;

Don’t put all your eggs in one basket — enter the transaction amount is not more than 30% of your Deposit. This is a basic rule for many investors and traders;

The amount of risk in each strategy needs to be in the range of 3:1.

What tests should count in the calculation of the dynamics of crypto-asset?

By exactly the same ones used on the Forex exchanges: fundamental and technical analysis. Fundamental largely based on the study of the financial and macroeconomic situation in the world, it is possible to decide on which currency to buy or sell in order to obtain long-term benefits. Technical analysis seeks to answer the question: when you need to buy or sell certain assets. It is based on the analysis of the different graphs, it is widely used mathematical methods.

Whether in cryptocurrency trading to rely on intuition and thoughts such as «I have a feeling that…»?

The feeling is usually based on extensive experience in a particular area. When a man does something specific for a long time, he on a subconscious level, postponed understanding and skills that are manifested later in the form of premonitions. This is the type of premonitions, which is trust, under its full responsibility. The other kind of judgments are thoughts such as «but I heard, and I said.» The decision on the basis of someone’s judgment — a common mistake, especially among novice traders. You should always think for themselves and take personal responsibility for their actions and their choices.

What, in your opinion, is the course?

Cryptocurrency is a long term investment. In fact, today the industry is much more healthy than during the last boom. In the beginning of 2018, we saw how the crypto bubble has burst, and the market remained a healthy project. The fact that people today lose interest in a large number of violas that have no real application and real-world community — it’s true. And this is great news! Hence, the focus of investors and users has shifted toward high-quality projects and products. And taking into account other healthy trends (active movement towards regulation and integration into the world of classical Finance), I believe that we are on the right track.

That is why you need to benefit from every situation on the stock market: how to earn money in a falling and rising market, to look at interesting projects, to buy interesting coins and tokens.

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