We are on the cusp of accelerated Blockchain growth and adoption by industries and consumers

The named entities or Blockchains set forth below do not represent recommendations to purchase or in any way reflect investment advice. One of the key variables that is critical for deciding to invest is missing. That variable is the current valuation of each token or asset vs the overall market, and a reasoned forecast of future performance vs the market. What is presented below attempts to inform and to encourage research, to learn about each, and to come to an opinion of whether any of them or all of them strike you as being an important participant in the future development of digital asset platforms.

May 20, 2019

Dear Crypto enthusiast and/or curious mind:

Right now is the most exciting time for Bitcoin, Ethereum, and Blockchain based businesses. The market is expanding with established corporations joining the start-ups and early believers. I am as enthusiastic as I have ever been. I truly believe we are on the cusp of a rapid expansion of participants and education within the Blockchain sphere.

Over the past eight weeks I have heard speak or met with the co-founder of Ethereum, the CEO of Loopring, the CEO of Quantum, the CEO of Celsius, and the CEO of Polymath. The progress being made is significant and the leaders are aggressively developing their technologies and are partnering with many industry participants.

I am most excited by Binance. Binance or BNB is the largest centralized exchange and the most engaged with the community. Their reinvestment in their business is dramatic. They have now launched a decentralized exchange, a blockchain incubator, and a charitable foundation to help the economies in Africa (you should listen to the Binance podcast with Helen Hai, it is inspiring)
https://www.youtube.com/watch?v=H3n2Z8K8qZ4

The BNB token price is now at $29 per token, giving BNB a market capitalization of $4.2 Billion. It has increased in value by over 400% this year. To give you an idea of how this enterprise operates, two weeks ago the centralized BNB exchange was hacked for $40 million of Bitcoin. The cause was due to token holders not protecting their passwords and enabling criminals to access their accounts. In response, BNB has redesigned their controls against hackers and have made all affected accounts whole by covering their losses. The behavior of BNB management is the best in the industry. A personal letter from the CEO, “CZ”, provided a recap of the event and the actions and decisions made during the period of the Hack (I have posted it on the website for readers to access under Market Reports and Charts). The letter conveys the deep sense of community and care behind the actions taken by the BNB team. I am proud to be a part of the community that supports Binance.

Bitcoin is presently at $8,000 per coin. I expect it to challenge $20,000 before 2019 is over. Microsoft is now building a decentralized platform based on the Bitcoin blockchain. The level of adoption of the value quality and free movement of BTC across borders in near instantaneous transactions (when compared to the multiple days delay in the traditional banking system) is creating a tidal wave of adoption in the Blockchain world.

Ethereum has risen by roughly 80% so far this year. It is the platform of choice for businesses who want to build a smart contract system within their enterprise solutions. JPMorgan has adopted the Ethereum blockchain in their launch of the JP Morgan coin.

Zilliqa is a blockchain that just proved the value proposition of blockchain within industry. In Asia they partnered with WPP and Pepsi and ran a marketing campaign on their blockchain vs a traditional campaign. The blockchain campaign yielded a 28% better reach with consumers than the traditional methodology that is negatively impacted by BOTS and other false click-throughs that defeat the effectiveness of digital marketing.

DAI, is a stable coin that is matched to be equal to the US Dollar. Deposits of DAI are paying anywhere between 7% and 14% on your deposits. It is a vehicle to move fiat currency (Cash) into crypto to capture returns that are not available in the traditional banking world.

Polymath has brought in a professional CEO to run the business. I listened to him this past week and it is clear that the Polymath vision is now honed and the business is prepared to make significant progress in the Security Token industry. They have partnered with one of the founders of Ethereum, and are building a Security Exchange protocol called PolyMesh. The software platform will enable other enterprises to develop security token initiatives as well as serve as an investment bank type advisor to businesses that wish to register their tokens for public offerings of securities. Imagine the average person now being able to buy 1/1000 of a share of Amazon or Google or any other stock, bond, piece of art, real estate, etc. It is happening.

I recently purchased the HTC Exodus mobile phone. It was the first blockchain enabled phone and was soon followed by the launch of the Samsung S10, the second blockchain enabled phone. This past week, HTC announced they have partnered with Kyber Network (“KNC”) to enable token swaps on the Exodus phone through the KNC platform which gives investors the ability to move value from one blockchain enterprise to another. I used this new platform on my phone and easily exchanged Ethereum tokens for KNC tokens and for Polymath tokens. It was simple, fast and secure. The speed of adoption in the mobile phone sector is accelerating. Apple must follow this trend from a competitive perspective.

Amazon has just filed a patent for a proof of work blockchain platform.

Facebook is expected to issue its own token (an assumed stable coin) on the WhatsApp service. Additional collaborations are being hinted at to enable permissioned activity to off-ramp to public blockchains.

Jaguar Land Rover just announced it is partnering with IOTA, the internet of things peer-to-peer service for rewards that incentivize its car owners to provide data on their driving patterns. The ability to pay tolls or simply bank the token rewards for intelligence generated by your own behavior is a key return of control to the owner of the data. The benefit to future driverless car technology is a key component of interest in this initiative.

There is so much more I could write, but you get the picture. The under-the-covers adoption and build-out of the crypto-sector is moving rapidly, unnoticed by so many, yet the investing opportunity will be coming to every neighborhood. Wall Street brokerage firms are launching crypto-trading solutions, and the appetite in this area will only grow, ultimately causing institutions to allocate foundation funds, pension funds, insurance funds, etc to this emerging successful sector.

The China/Asia based platforms that are trailing from a price appreciation perspective will one day be a source of great opportunity. I met with Loopring, QTUM, and listened to Ontology and NEO. They are building fast, and when Chinese investors get government approval to invest in Blockchain businesses the market there will move higher very fast. It must be noted that China has the greatest number of patents and has made the largest financial investment in Blockchain technology. I believe it is only a matter of time before we are rewarded for our patience with these investments.

That about covers it. Learn and build on your understanding in this sector as it just may change the world.

Tom

An Important Day for BTC as it joins ETH and LTC

An Important Day for BTC as it joins ETH and LTC

For the first time in a year, the price of BTC has positively crossed two important technical hurdles. On April 2, 2019 the closing price of BTC exceeded its 200-day MVA. This was preceded by LTC and ETH doing the same (LTC began the recovery process crossing its 200-day MVA back on February 18, 2019). The second important positive cross is occurring today, as the 50-day MVA price of BTC has just exceeded the 200-day MVA price. This is called the golden-cross, as it portends higher prices in the future.

Beyond, these “Big Three”, the overall constructive price performance over the past eight weeks of the general crypto-market is even more positive. The percentage price increase of Alt-tokens in the market is higher than the price rise in BTC, ETH, and LTC. Add in higher volumes, and the crypto-market is behaving in a very constructive manner, as accumulation is once again rising.

Best,

Tom

Bitcoin

Ethereum

LiteCoin

Update on Emerging Blockchain Platforms

The named entities or Blockchains set forth below do not represent recommendations to purchase or in any way reflect investment advice. One of the key variables that is critical for deciding to invest is missing. That variable is the current valuation of each token or asset vs the overall market, and a reasoned forecast of future performance vs the market. What is presented below attempts to inform and to encourage research, to learn about each, and to come to an opinion of whether any of them or all of them strike you as being an important participant in the future development of digital asset platforms.

Update on Emerging Blockchain Platforms

The infrastructure build within the Blockchain world is young and filled with new ideas. Some of the entrepreneurs will fail but some will succeed and become the next Google, or Facebook, or Microsoft.

As I research and seek out the winners that lay among the ideas that will never mature, my enthusiasm and belief in the Blockchain technology platform only grows. There are real winners emerging.

Currently there are six newly added enterprises that I find compelling. They are:

1. Blockstack
2. Quant
3. Tomo
4. ChainLink
5. Enjin
6. Celsius

Blockstack

will be the first SEC approved security token. It has filed a $50 million Registration Statement with the Securities and Exchange Commission to sell security tokens to the public. Their founders include PHDs from Princeton University, and they have developed, with $50 million of backing from Venture Capital entities, a comprehensive blockchain platform and web browser that supports contracts and an array of decentralized APPS (applications) that are business and consumer focused.

QUANT

is UK based. Their management team are technologists from the computer security world. They have developed a software licensing platform for business that enables businesses on one blockchain platform to migrate to another blockchain with ease and simplicity. They have designed their platform with banking and oil & gas corporate clients as initial targets.

TOMO

is a Singapore based blockchain. They have an inter-operable platform across blockchains with a focus on the gaming industry and decentralized APPS. They utilize a 150 Node platform in a proof of voting stake environment. Staking rewards on an annual basis exceed 10%.

ChainLink

is based out of the Grand Cayman Islands. It has a close connection to Cornell University. Contracts within the blockchain world need to validate that conditions are met to execute the provisions of the contract. ChainLink provides the bridge to data resources that reside outside the blockchain that are critical verification sources. Think of a music sale that triggers within a smart contract payment to all parties at time of sale (artist, writer, producer, etc). This smart contract must link to a validated external source to verify the sale took place. ChainLink provides that connection.

ENJIN

is a South Korean based company. They are part of the new Samsung S10 phone release, providing a game based blockchain platform for mobile gaming. ENJIN’s game platform has over 20 million users.

Celsius

is a UK based company. Their co-founder developed Voice over Internet Protocol in the 1990s, and has now built the platform to move money over the internet instantaneously through a banking platform for crypto-assets. They accept crypto-deposits and pay interest on those deposits, and they make loans in both crypto and fiat currencies.

Bitcoin price and the 200 Day Moving Average

Over the last 4 days the BTC closing price has exceeded the 200 day MVA for the first time in a year. The MVA price is $4,598 which is now support for the current price. Next stop is the cross of 50 day MVA over 200 day MVA. They are $600 apart with the 50 Day trending up, having closed the gap that existed in June 2018 of $2,500. Step one is done, with the current price above the 200 day MVA. Now we anticipate the 50 and 200 Day cross. Strength begets Strength.

Bitcoin

LiteCoin and Ethereum Price and Volume strength

This week, as of Thursday 11:00 AM EST, has seen a significant increase in crypto-assets, including currencies and blockchain platforms. The combination of double digit price increases with very high volume represents a strong positive for the market, as the movement reflects strength and a deepening participation in ownership. I have previously noted that the strength in LiteCoin was something to watch closely. It led the market as the first CC to have its daily price cross the 200 Day Moving Average of Price (this occurred on February 18, 2019). It continued to strengthen as I added to my position, anticipating it would continue to rise and challenge the the cross-over point where the 50 Day Moving Average of Price would cross and move above the 200 Day Moving Average. The cross occurred on March 16, 2019 at a LiteCoin price of $58.13 per coin. Today the price of LiteCoin is $86.33.

The current charts of LiteCoin and Ethereum are below. It is time to pay close attention to Ethereum. On April 2,2019 its closing price exceeded the 200 Day Moving Average at a price of $141. Today its price is $161.29. It is tracking toward the cross-over of the 50 day and 200 day MVAs. The spread between the two moving averages is currently $13.42. I expect ETH to move higher to challenge that cross-over point. If it breaks above that point, it will likely continue to advance on strength.

LiteCoin

Ethereum

The three charts of Price movement: Bitcoin, Ether, and LiteCoin

The change in price over time of any asset provides insight. In periods of quiet accumulation we see less spikes higher and a more steady pace of modest price rises. BTC, ETH, and LTC are all displaying this type of price movement. Of particular note in this phase of price discovery is the current price trend vs the 200 Day Moving Average of price, and the pattern of the 50 Day MVA vs the 200 Day MVA. As you can see with LTC, the current price went above the 200 Day MVA back on February 18, 2019. This presaged a confirming move of the 50 Day MVA exceeding the 200 Day MVA on March 16, 2019. The underlying environment of gradual and steady price increases is not confined to LTC as the other charts show. Should ETH and BTC continue on their gradual and steady price increases that lead to current prices above the 200 Day MVA (ETH is very close to this cross-over point), further accumulation at higher prices would seem likely.

LiteCoin

Ether

Bitcoin

Three Crypto Investment Lists: The Favorite Ideas, The Favorite Builders, and The High Risk/Reward Gambles

The named entities or Blockchains set forth below do not represent recommendations to purchase or in any way reflect investment advice. One of the key variables that is critical for deciding to invest is missing. That variable is the current valuation of each token or asset vs the overall market, and a reasoned forecast of future performance vs the market. What is presented below attempts to inform and to encourage research, to learn about each, and to come to an opinion of whether any of them or all of them strike you as being an important participant in the future development of digital asset platforms.

 

The Favorite Ideas

 

Set forth below are my top ten Favorite Ideas for investment consideration based on the companies actual performance to date and the meaningfulness and achievability of their stated goals and objectives:

1. Binance
2. Quant
3. ChainLink
4. Bitcoin
5. Ethereum
6. LiteCoin
7. Ontology
8. ENJIN
9. Celsius
10. Kyber Network

I highly recommend that these business platforms be researched to assess whether they fit within your own personal view of the future. I am happy to respond to any direct questions from readers as to why I view any of the above as My Favorite Ideas.

 

The Favorite Builders

 

Set forth below are my top ten Favorite Builders for investment consideration based on the need for their platform and the growth in delivering their solutions:

1. Bitcoin
2. Ethereum
3. Litecoin
4. Binance
5. NEO
6. Ontology
7. ChainLink
8. Celsius
9. 0X
10. Basic Attention Token

I highly recommend that these business platforms be researched to assess whether they fit within your own personal view of the future. I am happy to respond to any direct questions from readers as to why I view any of the above as My Favorite Builders.

 

The High Risk/Reward Gambles

 

Set forth below are my top ten Favorite High Risk/Reward Gambles for investment consideration. These entities and platforms are listed here based on their actual performance to date and the meaningfulness and achievability of their stated goals and objectives:

1. LYMPO
2. PolyMath
3. Morpheus
4. PlayChip
5. Deep Brain Chain
6. The Key
7. Augur
8. Tomo Chain
9. Loom
10. Travala

I highly recommend that these business platforms be researched to assess whether they fit within your own personal view of the future. I am happy to respond to any direct questions from readers as to why I view any of the above as being worthy of further research and understanding.

Tom

It is time for the Blockchain and related Crypto-assets to enter the Arena

This a revised document that includes new additional information added on March 10, 2019 to the March 9, 2019 update

Connolly Financial Advisors, LLC

This document does not serve as a recommendation of any specific asset or as an advertisement. This document represents an update on events underlying the crypto-environment, with links to websites of various companies and to relevant media announcements. The writing below has been sanitized to enable publication for education purposes only.

 

My perspective on the Crypto-eco system
Prepared by Thomas J Connolly
March 10, 2019

THE MAN IN THE ARENA
Excerpt from the speech “Citizenship In A Republic” by Theodore Roosevelt  delivered at the Sorbonne, in Paris, France on 23 April, 1910

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. “

 

 

Executive Summary

The past month has shown strong industry announcements such as new Mobile phones from HTC (the EXODUS), and Samsung (the S10), that are Blockchain enabled with Crypto wallets and connected trading platforms.  A few Crypto-assets have more than doubled in value, such as Binance and ENJIN.  LiteCoin has increased by +20% and has now crossed over its 200 Day Moving Average.  There are clear signs of positive momentum and greater consumer adoption.

2018 was a year of investment and building out platforms for the future, and the early days of 2019 are revealing broader successes from those investment efforts. The acceleration of Blockchain technology into all industries is happening, and the ability to transfer value (effectively money) within the BlockChain eco-system on a global scale is being recognized as a critical component of cross-border commerce. This is one of the most exciting times because it is not about the price of Bitcoin, it is about the adoption of technology and being alive as this evolution accelerates. We are witnesses to one of the great leaps in finance, industry, commerce, and the next generation of the power of the internet.

Perseverance is what Roosevelt praised, even in the face of pain and loss, for it is the power of belief, of not giving in to those that doubt the ultimate victory, that brings change that is good and which advances society to a new platform of connectivity, of borderless sharing of ideas, of equality and the recognition that every person has something to contribute that is valuable to our world.

 

Tom

 

 

 

Crypto-Assets of Particular Interest

The links to the websites of interesting platforms are as follows:

  1. BNB https://www.binance.com/en
    1. Largest Crypto Exchange generating $500 million in annual profit during the 2018 Bear Market. Market value has doubled during the past month.
  2. Quant (QNT) https://www.quant.network/?utm_source=coincodex
    1. Has created the software to link multiple Blockchains thereby facilitating corporate entitie to take advantage of integrating prior blockchain platforms with the newest most powerful emerging platforms
  3. ChainLink (LINK) https://chain.link/
    1. This is the bridge between Smart Contracts and external data sources (Oracles) that provide the necessary information to validate terms of the Smart Contract have been met.
  4. DragonChain (DRGN) https://dragonchain.com/?utm_source=coincodex
    1. US based interoperable platform and incubator of emerging projects
  5. ONT https://ont.io/
    1. China based Blockchain directed at authentication of digital assets and identities. Strong relationship with Microsoft is a clear positive.
  6. NEO https://neo.org/
    1. China based Blockchain that is similar to Ethereum. Smart contracts and decentralized business platform for the future smart economy on the internet.  Gaming is now a key component of their platform.
  7. POLY https://polymath.network/
    1. A Security Token platform to facilitate the securitization of assets in compliance with government regulations. If STOs take off, PolyMath should be dead center in the toolbox of this potential wave of new investment opportunities.
  8. ZRX https://0x.org/
    1. A software platform that serves as the backbone of decentralized exchanges built on the Ethereum blockchain
  9. LYMPO https://lympo.io/
    1. A health and exercise platform
  10. LRC https://loopring.org/
    1. A software platform that serves as the backbone of decentralized exchanges built to support multiple blockchains, including Ethereum, NEO, QTUM, etc

 

2019 expected market moving events

There are many anticipated events in 2019 that will serve to deepen the penetration of Crypto assets into the broader community.  A few examples are as follows:

  • • BAKKT
    Bakkt, which intends to leverage Microsoft cloud solutions to create an open and regulated, global ecosystem for digital assets. The new company is working with a marquee group of organizations including BCG, Microsoft, Starbucks, and others, to create an integrated platform that enables consumers and institutions to buy, sell, store and spend digital assets on a seamless global network. It has recently been revealed that Starbucks will begin accepting Crypto-currencies at their stores in connection with this investment.
    • BTC ETF
    It is expected that during 2019 the United States Securities and Exchange Commission will approve an ETF for trading on U.S. exchanges of a security backed by Bitcoin

    • Stable Coins
    A number of coins are being issued that are backed by Fiat currencies (every crypto Stable coin will be backed dollar for dollar by the designated Fiat currency)

    • Gaming
    Multi-player games and betting game platforms are a focus of the crypto world given the high value of transactions that take place online. The Blockchain is a perfect vehicle for these types of large consumer-based interests.

    • Lending
    Loans in crypto currencies and Fiat loans collateralized by crypto currencies are gaining traction in the market as a new form of financing

    • Interest earning deposits
    Interest earning deposits are expanding to include more crypto assets. Interest rates of between 3% and 7% are currently being paid for deposits of Bitcoin, Ethereum, LiteCoin, etc.

    Articles that present important developments in the Crypto Industry sector:

    • Here’s What You Need to Know About Facebook’s Own Stablecoin

    https://medium.com/okex-blog/heres-what-you-need-to-know-about-facebook-s-own-stablecoin-890bbed04c7d

     

    • Fidelity Digital Assetsis now live with its cryptocurrency custodial solution and will provide it to “a select group of eligible clients” as the firm is working towards becoming a go-to service provider for institutional investors in the world of cryptographic and blockchain-based finance.

    https://news.bitcoin.com/fidelitys-cryptocurrency-arm-starts-offering-institutional-investor-services/

     

    • JP Morgan to issue its own crypto-coin, the JPM Coin, for use by its corporate clients

     

    https://www.theblockcrypto.com/2019/02/14/j-p-morgan-is-using-ethereum-to-launch-a-digital-u-s-dollar-heres-what-it-means-for-blockchain/

     

    • Binance records $446 million profit for 2018

    https://www.theblockcrypto.com/2019/02/06/analysis-binance-brought-in-446-million-in-profits-in-2018-despite-the-bear-market/

     

    • Celsius records $630 million in loans in 2018

    https://www.forbes.com/sites/rachelwolfson/2019/02/05/leading-cryptocurrency-platform-completes-over-630m-in-crypto-loans-in-six-months/#7e7af15c526d

     

    • One of the largest publishers in the world addresses the paywall and transaction costs by utilizing a blockchain wallet

    https://cryptobriefing.com/digital-publisher-stellar-payments/

     

    • Wyoming accepts Bitcoin as money

    https://ambcrypto.com/wyoming-senate-passes-bill-recognizing-bitcoin-btc-and-other-cryptocurrencies-as-money/

     

    • A forecast from the former CEO of NASDAQ that by the year 2022 all securities will be tokenized

    https://ethereumworldnews.com/what-will-happen-if-the-508-trillion-global-market-is-tokenized-as-projected-by-former-nasdaq-ceo/

     

    • Harvard, Stamford, MIT and Yale have included Crypto in their Endowment portfolios

    https://www.ccn.com/breaking-harvard-stanford-mit-have-all-invested-in-cryptocurrency-funds/

     

    • New Hampshire and Indiana follow Ohio in tax collections using crypto-currencies

    https://ambcrypto.com/us-states-new-hampshire-and-indiana-introduce-bills-for-taxes-to-be-paid-in-cryptocurrencies/

     

    • QTUM Blockchain becomes Amazon Web Services partner in China

    https://www.coindesk.com/amazon-web-services-china-partnering-blockchain-qtum

     

    • Robinhood, a mobile application that enables you to trade stocks on your phone has been given a New York license to trade crypto-assets. New York is the most stringent state in regulating trading of crypto-assets and is a model for other states, this approval opens many doors for Robinhood and crypto trading.

    https://ambcrypto.com/cryptocurrency-exchange-robinhood-conferred-bitlicense-by-new-york-regulators/

     

    • One of the needs of the Bitcoin platform is to be able to process transactions with greater speed during times of peak demand. The Lightening network is being designed to sit on-top of the BTC Blockchain and will manage the high volumes off-chain or not within the BTC Blockchain.  As Blocks of data are filled, they are re-entered into the BTC Blockchain as completed blocks subject to verification, resulting in thousands of transactions processed per second on the BTC Blockchain, targeting millions of TPS in the next generation release.

    https://www.investinblockchain.com/bitcoin-lightning-network-accelerated-growth/

     

    • Futures Contracts for future delivery of Bitcoin, that require physical delivery of Bitcoin is coming and this will drive demand for BTC ownership to ever higher levels.

    https://www.ccn.com/nasdaq-to-launch-bitcoin-futures-2-0-in-early-2019/

     

    • Head of the New York Stock Exchange indicates Crypto-assets are here to stay

    https://www.ccn.com/unequivocal-yes-nyse-chair-says-bitcoin-and-crypto-are-here-to-stay/

     

     

    Closing Thoughts

    The Crypto asset class is one of the higher-risk sectors that one may invest in.  Many leaders in the financial and regulatory world believe the sector will fail and that the activity in 2017 and 2018 represented a bubble and a bust that will not be recovered.  I believe this is a short-sighted view (pun intended). The growth in capital committed to developing and expanding the Blockchain technology is validating the reach and potential of this technology.

    The number and talent of the brightest minds in engineering, computer science, and the financial industry that are moving ever more deeply into this sector is dramatic.  The most desperate plea coming from the crypto eco-system is for more engineers and computer scientists.  There is an unrelenting demand for the best and the brightest.

    Across the globe, Blockchain companies are holding workshops for developers in an effort to uncover the next critical discovery, the next idea that will springboard the Crypto and Blockchain sector into the mainstream.  Today, there are more brilliant people investing their time and effort in the future of this technology than there has ever been.  I have faith in what they are doing and recognize that our world of border driven tensions is pushing us to find solutions that diffuse the tension for the betterment of the people of the world. Trade wars represent the approaches of old thinking and old thinkers, whereas the next generation of the internet as a platform for distributed technologies that bring all of us closer together in common initiatives is our next chapter.  We have a great book to write that will change the world, won’t you join us?

     

    Best regards,

    TJC

     

     

    Ethereum’s price is trending toward its 200 Day MVA

    On February 18, 2019 LiteCoin’s price crossed its 200 Day Moving Average. This is often a very bullish signal for higher prices in the future. At that time, LTC was priced at $47.34. Since that date, the price has increased by roughly $10, or 20%. The chart of LTC is located within the Market Reports and Charts banner in the menu above.

    The next major crypto-currency that is approaching this notable cross of the 200 Day MVA is Ethereum. The chart below as of March 8, 2019 shows the general upturn and the closing of the gap between the 50 and 200 Day MVA, and the proximity of the daily price to the 200 Day MVA. We should pay attention to this movement in price, as ETH is only $30 below its long-term trend line. A cross would be a bullish price signal.

    My perspective on the Crypto Eco-System

    Connolly Financial Advisors, LLC

    This document does not serve as a recommendation of any specific asset or as an advertisement. This document represents an update on events underlying the crypto-environment, with links to websites of various companies and to relevant media announcements, and has been sanitized to enable publication for education purposes only.

    My perspective on the Crypto-eco system
    Prepared by Thomas J Connolly
    January 31, 2019

    Charles Dickens: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way…”

    Executive Summary

    It has been a brutal twelve months with no signs of a lessening on the downward pressure on prices. Given the price declines in the overall crypto-asset market, companies that raised capital in late 2017 and early 2018 and did not convert the BTC or ETH that was raised into fiat currency are finding their treasuries are limited and many will face bankruptcy. Similar to the internet exuberance of 1999 and early 2000, the euphoria is followed by a hangover. How long this period of malaise continues is only a guess, but it will not likely end until a spark of intrigue emerges that captures the mindshare needed to bring greater numbers of consumers into the demand curve for crypto-assets. That event is out there. I believe this. The strong and well financed companies and foundations are advancing technological innovation, and it is only a matter of time before that spark ignites, and a fire emerges that burns hot.

    2018 was a year of investment and building out platforms for the future. While the prices of coins fell dramatically during the year (ex. BTC from approx. $20,000 per coin to $3,000 per coin), the global expansion and deeper penetration into business and society showed significant strides.

    In the case of Bitcoin, the overall coin supply is limited to approx. 20 million coins. Think about that for a moment. There are over 7 billion people in the world. BTC and a few other value-based coins represent the ability to transfer value across borders in seconds, something the existing bank infrastructure cannot do. Additionally, the number of unbanked people in the world total 1.7 billion. These people transfer $400 billion to relatives across borders in slow and costly ways. The average fee for these transfers is 7.45%, with certain geographies significantly higher. The average fee to transfer BTC from Coinbase is 1.49%, and the fee structure in the crypto-world continues to decline.

    With only 20 million BTC serving the world, the demand potential for BTC is beyond what most think about. This demand will drive the price ever higher. Imagine only 100 million people adopted crypto-currencies as a way to move value across borders. That would mean each person, assuming equal proportional ownership, could only have one-fifth of a BTC. The demand potential will create scarcity, and with institutions such as pension plans, university endowments, insurance companies, and banking institutions entering the demand side as investors, the potential expansion in price given the limited supply should follow simple economic principles.

    Beyond the value transfer quality, there are coins representing blockchain platforms that are serving to create through smart contracts the digital asset derivatives of physical assets. The opportunity to have a fractional ownership in any asset in the world is compelling and is consistent with the “New Normal” of only owning what you will use (think AirBNB, Uber, WeWork, etc). Blockchain platforms and smart contracts will enable people to own a piece of the greatest art works in the world, the most luxurious homes, the greatest vacation destinations, precious metals, stocks in the largest companies in the world. The opportunities are endless.

    Existing businesses will be challenged by crypto-based competitors. A simple example is travel. Priceline serves the online world for hotel bookings, airline reservations, etc. Travala is the crypto-equivalent https://www.travala.com/ . They have a hotel, vacation, and airline reservation platform, all with the ability to pay for your travel and accommodations with crypto-currencies or their own coin. Participating hotels exceed over 500 at this time. The world is changing and being at the forefront of change is often exhilarating yet challenging. The early days are the most exciting, followed by the turbulent and the most fearful days of the journey as adjustments are made and corrections are deployed, with many new entrants dying off on the hard path to maturity. Eventually, the strong, the survivors, the innovators will find their place in society with broad acceptance and functionality. These are the assets to own now, the assets that will be the industry leaders in the world of tomorrow.

     

    A few of my investments are below. The strongest performer has been Binance, which is setting all time highs in Bitcoin price

    The links to the websites of each of the noted holdings are as follows:

    1. BNB https://www.binance.com/en
    Largest Crypto Exchange generating in excess of $500 million in annual profit

    2. PlayUp https://www.playchip.global/
    Australia based Global Sports betting and Fantasy Sports platform

    3. BTC

    4. ONT https://ont.io/
    China based Blockchain directed at authentication of digital assets and identities

    5. NEO https://neo.org/
    China based Blockchain that is similar to Ethereum. Smart contracts and decentralized business platform for the future smart economy on the internet

    6. POLY https://polymath.network/
    A Security Token platform to facilitate the securitization of assets in compliance with government regulations

    7. ZRX https://0x.org/
    A software platform that serves as the backbone of decentralized exchanges built on the Ethereum blockchain

    8. LRC https://loopring.org/
    A software platform that serves as the backbone of decentralized exchanges built to support multiple blockchains, including Ethereum, NEO, QTUM, etc

     

    2019 expected market moving events

    There are many anticipated events in 2019 that will serve to deepen the penetration of Crypto assets into the broader community. A few examples are as follows:

    BAKKT

    ATLANTA & NEW YORK–(BUSINESS WIRE)– Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges, clearing houses, data and listings services, announced today that it plans to form a new company, Bakkt, which intends to leverage Microsoft cloud solutions to create an open and regulated, global ecosystem for digital assets. The new company is working with a marquee group of organizations including BCG, Microsoft, Starbucks, and others, to create an integrated platform that enables consumers and institutions to buy, sell, store and spend digital assets on a seamless global network.

    The Bakkt ecosystem is expected to include federally regulated markets and warehousing along with merchant and consumer applications. Its first use cases will be for trading and conversion of Bitcoin versus fiat currencies, as Bitcoin is today the most liquid digital currency. The effort is designed to address evolving needs in the estimated $270 billion digital asset marketplace.

    BTC ETF
    It is expected that during 2019 the United States Securities and Exchange Commission will approve an ETF for trading on U.S. exchanges of a security backed by Bitcoin

    Stable Coins
    A number of coins are being issued that are backed by Fiat currencies (every crypto Stable coin will be backed by a designated unit of the associated fiat currency, such as dollar for dollar by the designated Fiat currency the U.S. dollar)

    Gaming
    Multi-player games and betting game platforms are a focus of the crypto world given the high value of transactions that take place online. The Blockchain is a perfect vehicle for these types of large consumer-based interests.

    Lending
    Loans in crypto currencies and Fiat loans collateralized by crypto currencies are gaining traction in the market as a new form of financing

    Interest earning deposits
    Interest earning deposits are expanding to include more crypto assets. Interest rates of between 3% and 7% are currently being paid for deposits of Bitcoin, Ethereum, LiteCoin, etc. The video link below is very important to watch. It will explain some key reasons why a new way of finance relationships based on blockchain technology is coming.

    https://www.youtube.com/channel/UC3yZY7UVs-zPKBuyNuPinbQ

     

     

    Articles that present important developments in the Crypto Industry sector:

    .  Binance records $446 million profit for 2018
    https://www.theblockcrypto.com/2019/02/06/analysis-binance-brought-in-446-million-in-profits-in-2018-despite-the-bear-market/

    Celsius records $630 million in loans in 2018
    https://www.forbes.com/sites/rachelwolfson/2019/02/05/leading-cryptocurrency-platform-completes-over-630m-in-crypto-loans-in-six-months/#7e7af15c526d

    • One of the largest publishers in the world addresses the paywall and transaction costs by utilizing a blockchain wallet
    https://cryptobriefing.com/digital-publisher-stellar-payments/

    Wyoming accepts Bitcoin as money
    https://ambcrypto.com/wyoming-senate-passes-bill-recognizing-bitcoin-btc-and-other-cryptocurrencies-as-money/

    • A forecast from the former CEO of NASDAQ that by the year 2022 all securities will be tokenized
    https://ethereumworldnews.com/what-will-happen-if-the-508-trillion-global-market-is-tokenized-as-projected-by-former-nasdaq-ceo/

    Harvard, Stamford, MIT and Yale have included Crypto in their Endowment portfolios
    https://www.ccn.com/breaking-harvard-stanford-mit-have-all-invested-in-cryptocurrency-funds/

    • New Hampshire and Indiana follow Ohio in tax collections using crypto-currencies
    https://ambcrypto.com/us-states-new-hampshire-and-indiana-introduce-bills-for-taxes-to-be-paid-in-cryptocurrencies/

    QTUM Blockchain becomes Amazon Web Services partner in China
    https://www.coindesk.com/amazon-web-services-china-partnering-blockchain-qtum

    Robinhood, a mobile application that enables you to trade stocks on your phone has been given a New York license to trade crypto-assets. New York is the most stringent state in regulating trading of crypto-assets and is a model for other states, this approval opens many doors for Robinhood and crypto trading.
    https://ambcrypto.com/cryptocurrency-exchange-robinhood-conferred-bitlicense-by-new-york-regulators/

    • One of the needs of the Bitcoin platform is to be able to process transactions with greater speed during times of peak demand. The Lightening network is being designed to sit on-top of the BTC Blockchain and will manage the high volumes off-chain or not within the BTC Blockchain. As Blocks of data are filled, they are re-entered into the BTC Blockchain as completed blocks subject to verification, resulting in thousands of transactions processed per second on the BTC Blockchain, targeting millions of TPS in the next generation release.
    https://www.investinblockchain.com/bitcoin-lightning-network-accelerated-growth/

    Futures Contracts for future delivery of Bitcoin, that require physical delivery of Bitcoin is coming and this will drive demand for BTC ownership to ever higher levels.
    https://www.ccn.com/nasdaq-to-launch-bitcoin-futures-2-0-in-early-2019/

    • Head of the New York Stock Exchange indicates Crypto-assets are here to stay
    https://www.ccn.com/unequivocal-yes-nyse-chair-says-bitcoin-and-crypto-are-here-to-stay/

     

    Closing Thoughts

    The Crypto asset class is one of the higher-risk sectors that one may invest in. Many leaders in the financial and regulatory world believe the sector will fail and that the activity in 2017 and 2018 represented a bubble and a bust that will not be recovered. They may be right.

    The counter to the position of a bubble and bust, is the number and talent of the brightest minds in engineering, computer science, and the financial industry that are moving ever more deeply into this sector. The most desperate plea coming from the crypto eco-system is for more engineers and computer scientists. There is an unrelenting demand for the best and the brightest.

    Across the globe, Blockchain companies are holding workshops for developers in an effort to uncover the next critical discovery, the next idea that will springboard the Crypto and Blockchain sector into the mainstream. Today, there are more brilliant people investing their time and effort in the future of this technology than there has ever been. I have faith in what they are doing, and I will remain committed to this asset class until proven wrong. I just do not think I am or will be proven wrong.

    Best regards,

    TJC