The cryptocurrency and crypto token market marked a decrease of 21 % to a total market capitalization of 370 billion dollars in the evening between Saturday and Sunday. It is likely that the crash was caused by the news of regulations from governments and regulatory organizations. Earlier this week, the Japanese government fined some exchanges, and the SEC called for the exchanges to register.
One ether was traded between $ 650 and $ 870, marking a decrease for the week of 20%. The price of one Bitcoin fell by 23 %, with its lowest point for the week at $ 8,513.
A plausible scenario exists where we find ourselves at the end of the bear market. It is likely that the next bull run will be a considerable one since the development of the infrastructure of the technology and the projects has been going at full speed, but the prices do not reflect these events.
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Recently, the ICO market has become increasingly more difficult. A major part of the new projects do not achieve their “SAR”, which dictates the lower prices when they enter the market. The tendency is strong and seems even more serious than the one we witnessed in November 2017. This could be caused by a number of factors.
On the one hand, we are in a bear market. On the other hand, the cryptocurrency exchanges are ever more cautious when listing new cryptocurrencies or crypto tokens. The participants in ICOs cannot easily trade with their new tokens or covert them into ETH. This creates the environment for slowing down the ICO market, their new projects having difficulties in raising money and the assets of some investors are locked in old ICOs.
All this raises the bar for each crypto project higher, which will in turn have a positive effect in the whole crypto market.
Coinbase Index Fund
The first index of Coinbase will offer GDAX customers the opportunity to invest in all cyptocurrencies and crypto tokens listed on the exchange. If the exchange lists a new asset, then it will be automatically added to the formation of the index. This way, the players on the exchange will be able to invest in more than one asset simultaneously, diversifying the risk.
Mt. Gox still dictating the market?
Last week some information was spread claiming that one of the trustees of the bankrupt exchange Mt. Gox has influenced the character of the market in the last three months with his actions. This happened after Nobuaki Kobayashi sold large quantities of Bitcoin in a few runs. It is interesting to note that the days of the operations coincide with the starting days of the several large corrections we witnessed in the last few months. At present, 400 million dollars worth of Bitcoin and Bitcoin Cash have been sold.
Daimler AG with their own crypto project
The German automobile giant Daimler AG, known for their brands Mercedes-Benz and Smart, introduced their own digital currency Mobicoin at the Mobile World Congress 2018 in Barcelona. The project, which started this February, was created to reward the drivers who exhibit eco friendly driving habits. The next few months will be in testing for the next three months, and 500 drivers will take part in it.
The Mobicoins won will grant their owners discounts for Mercedes merchandise and free tickets for races, for example. It is yet not clear if they will be convertible to fiat currency.
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