The big winner this week was Litecoin – it was up 33%. This is probably due to people buying Litecoin as a hedge against the uncertainty in Bitcoin before the August UASF. At one point during the week, Litecoin was the cryptocurrency with the highest trading volume. However, Bitcoin also rose 5% in a relatively uneventful week.
Ether dropped 6% last week. There are different reasons – ICOs selling off the Ether that they raised, investors taking profit, etc. However, I believe the biggest reason is due to a decline in new money coming in.
When Ether price was going up, new investors rushed in because they don’t want to miss out. But after Ether faced a sharp correction, investors, especially the newer ones, realized that it is not free money and there are risks involved, so the inflow of new money declined substantially. I believe this is going to continue for a while and we may not see the strong momentum again anytime soon.
Winner of the week – Veritaseum (VERI, a research company on crypto) (+123% during last 7 days)
- Didn’t seem to have any particular catalyst for the run-up, but the trading volume was really thin ($1 million a day on EtherDelta), so prices can be very volatile. I am surprised that it is the token with #2 largest market cap, ahead of Gnosis and Golem
Loser of the week – Bytecoin (BCN, coin with anonymity & data protection) (-38% during last 7 days)
- Poloniex temporarily disabled deposits and withdrawals of BCN.
Developments in the Cryptocurrency World
A boring investor’s guide to cryptocurrency investing: https://www.reddit.com/r/ethtrader/comments/6l163r/a_boring_investors_guide_to_cryptocurrency/
South Korea is looking to legalize cryptocurrencies: https://www.ethnews.com/south-korea-will-introduce-legislation-to-legalize-cryptocurrencies
Vitalik sharing some criticisms of Ethereum: https://www.reddit.com/r/ethtrader/comments/6lgf0l/vitalik_drops_the_mic_on_rbtc/dju1y8q/
Great article on cryptocurrency adoption and price theory: https://medium.com/@mcasey0827/speculative-bitcoin-adoption-price-theory-2eed48ecf7da
IRS narrows tax evasion investigation on Coinbase users: https://www.ethnews.com/irs-narrows-john-doe-summons-on-coinbase-in-a-win-for-users
Bitcoin getting more institutional investor coverage on Wall Street: http://www.cnbc.com/2017/07/07/strategist-tom-lee-weighs-sees-bitcoin-going-as-high-as-55000.html
Enterprise Ethereum Alliance announces support for blockchain consensus algorithm Integration: https://entethalliance.org/enterprise-ethereum-alliance-announces-support-blockchain-consensus-algorithm-integration/
Articles From Crush Crypto
Analysis of district0x ICO: https://crushcrypto.com/analysis-of-district0x-ico/
Analysis of Aventus ICO: https://crushcrypto.com/analysis-of-aventus-ico/