Cryptocurrency and ICO market analysis from the Digital Rating Agency (DigRate), April 2018 | Digital Rating Agency
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Cryptocurrency and ICO market analysis from the Digital Rating Agency (DigRate), April 2018

April was the month of the cryptocurrency market recovery after a negative trend that has lasted the entire first quarter of 2018. The growth driver of the market overall capitalization was positive news from the financial market giants and the end of the US deadline for filing tax returns.


The Bitcoin price has increased by 35% during the month, and Ethereum showed a higher recovery rate - 73% growth. There also was a strong recovery in the Ripple, Bitcoin Cash, EOS, Golem, Matchpool and others prices.


The ICO market demonstrated a twofold decrease in the amount of funds raised during the ICO in April 2018 as compared to March 2018, according to ICO GLOBAL MARKET STATS.


Reasons that influenced the market dynamics in the reporting month can be found below in the monthly report by the first professional dIgital rating agency (DigRate)’s analysts.


The general dynamics of the cryptocurrency market (from 01.04.18 to 30.04.18)


The crypto asset market recovered throughout the month after a protracted three-month fall. The aggregate cryptocurrency capitalization has increased by 79.77% and amounted to $ 438.584 billion as of April 30, 2018. The maximum monthly capitalization value has reached $ 439.896 billion (April 29) after a strong correction in the first quarter of 2018, and the minimum value was $ 243.967 billion (April 1). The growth for the reporting month was 80.31%.




*Information provided by coinmarketcap.com




Bitcoin's market capitalization has increased by 34.94%: from $ 118.705 billion to $ 160.182 billion.

The altcoins market also showed a positive trend, and most of the coins from the first twenty went into the "bull" trend.


The total altcoins capitalization (excluding Bitcoin) has increased by 98.08% from $ 145.166 billion (April 1) to $ 278.176 billion since the beginning of the month, outperformed the Bitcoin's capitalization increase by 63.14%. This demonstrates clearly that the price of the top altcoins is recovering much faster than the Bitcoin price.



*Information provided by coinmarketcap.com


The consolidated DRI index (market capitalization index cleared of "dead" and non-traded coins) has increased by 60.0% from its minimum value, equal to 218.91 (01.04.2018), to 350.27 (01.05.2018). The value of the index is equal to the capitalization in USD billion.





*Information provided by DRI DigRate


The price of predominant currency - Bitcoin - has increased by 34.5% in April (from $ 7,003.06 to $ 9,419.08). The price of the second currency on the capitalization - Ethereum - has increased by 73.41% (from $ 397.25 to $ 688.88) from 01.04.2018 to 30.04.2018. It should be noted that Ethereum demonstrated a higher recovery than Bitcoin.


*Information provided by coinmarketcap.com


Bitcoin market dominance has decreased by 8.41 percentage points (from 44.95% to 36.54%). And the Ethereum dominance has increased by 0.74 percentage points on the contrary (from 14.84% to 15.58%).




*Information provided by coinmarketcap.com


The decrease in the Bitcoin’s popularity in comparison with altcoins during this month continued due to active growth and faster recovery of its main competitors, such as Ethereum, Ripple, Bitcoin Cash, EOS (which replaced Litecoin from the fifth line of the cryptocurrency rating for total capitalization in April). The aggregate dominance of altcoins, excluding the top 10, increased by more than 5%.


Top 5 by growth and fall in the cryptocurrency price


The top 5 projects by growth and fall in the cryptocurrency price were determined during April 2018. The analysts of the Digital Rating Agency (DigRate) took into account only cryptocurrencies with an average daily turnover of at least $ 1 million.


Top 5 growth leaders



#Token name
TickerVolume (24h)
Price (30.04)
growth %
1EOS
EOS$3 247 580 000
$18,29
338,84%
2Golem
GNT$56 826 600
$0,600844
324,47%
3Matchpool
GUP$5 480 160
$0,465428
303,28%
4Basic Attention Token
BAT$7 039 850
$0,417813
235,60%
5FirstBlood
1ST$297 375
$0,335010
223,81%


The EOS token, whose price rose more than three times during the month, has become the undoubtful leader. Such a sharp increase in the audience's interest in the project was ensured by several positive news. Firstly, the launch of its own blockchain platform EOSIO 1.0 in June, which will create and use decentralized applications. The EOSIO Dawn 3.0 testnet was published on Github recently. Secondly, the interest of the largest mining pool AntPool in participation in the competition for the role of EOS block producers, as well as the Bitfinex’s interest in the creation of its decentralized platform based on the EOS blockchain.


The second place with the 3.2 times exchange rate growth is taken by the Golem project. The cryptocurrency has increased sharply after the large exchange Upbit added the possibility of trading the GNT against the South Korean won. Representatives of the Golem project reported the launch of the beta version of network on the official twitter account on April 10.


The growth of the Matchpool GUP token may have been due to the news that the founders of the project are launching the Fund0x cryptocurrency fund, which will airdrop the GUP tokens to all users of the Matchpool platform. This statement appeared in the official twitter account of the project.


Objective reasons for the price increase of FirstBlood and Basic Attention Token projects have not been found.



Top 5 fall leaders

#Token name
TickerVolume (24h)
Price (30.04)
fall %
1Dragon Coins
DRG$2 366 410
$0,599421
−57,92%
2Ormeus Coin
ORME$1 692 660
$1,31
−53,54%
3Nimiq
NET$149 362
$1,32
−50,37%
4Verge
XVG$81 726 000
$0,071788
−36,25%
5AMLT Token
AMLT$242 418
$0,047675
−30,50%


The reason for the fall in Verge quotations was the announcement of a partnership with PornHub, that Verge’s investors took rather negatively, as the earlier token exchange rate was growing on speculation about the impending large-scale partnership, and many investors had expected that this partner would be Amazon, not PornHub.


Objective reasons for the price fall of Dragon Coins, Ormeus Coin, Nimiq and AMLT Token have not been found.



Important news of the reporting period (April 2018)


Positive news from major international financials (Barclays, Citigroup, Saxo Bank, JPMorgan) and technology companies (Huawei, IBM) have prevailed during the month. In addition, there have been a number of positive reports about Ethereum, Bitcoin Cash, Ripple, Game.com, OmiseGo and EOS. The tax period has ended in the United States, that puts pressure on large investment funds. However, negative news continues to come from the financial regulators of various countries (Japan, China, the United States, the EU, India, Iran, Pakistan). More detailed information on important news for April 2018 is available in the table of important news at the bottom of this page.



ICO Market analysis, April


110 ICOs have ended from April 1 to April 30, 2018, 52 (47%) of which did not collect softcap, another 3 (2.7%) were in the Dead category: these are projects that do not have a running website, or projects whose leaders were prosecuted or are now under investigation on fraudulent activities. The total amount of collected funds for April was $ 618.9 million, $ 1.6 million of which belong to Dead projects.


The number of ICOs and collected funds for March and April 2018



Index
Total for March
Total for April
ICOs pcs. / $ million
189/1399
110/618,9
Active pcs. / $ million
88/1386
57/617,3
Failed pcs. / $ million
95/-
52/-
Dead pcs. / $ million
6/12,9
3/1,6


The number of conducted ICOs was less for 79 projects (41.79%) compared to the previous month, and the amount of collected funds was lower by $ 781 million (55%).


Negative statistics on the payback of ICO advertising campaigns for the I quarter of 2018 forced the founders of projects to postpone the launch of their ICOs in order to find the most suitable time for entering the market.



Top 5 projects by the amount of raised funds, April 2018


$ 288.54 million were collected by the five major projects in total, 46% of which ($ 133 million) were collected by the Basecoin project (the project creates a "stable" token that will not be subject to volatility due to binding to a group of digital assets).







Top 5 projects by the amount of raised funds, April 2018


Project name
TickerRaised, $ million
Basecoin
Basecoin
133,00
MOOVER
MOVE50,92
Nexo
NEXO50,10
AIRCOIN
ACT27,99
NeuroChain
NCC26,53
Raised in total by top 5

288,54


The Basecoin project ($ 133 million) has become the most successful project in terms of raised funds in April. The second and third place ware shared by projects that managed to attract $ 50 million: MOOVER (sale or purchase of unused mobile data) and Nexo (instant crypto overdrafts (short-term loans) within Credissimo company).


The fourth place was occupied by the infrastructure AIRCOIN project (ecosystem for the creation and deployment of decentralized applications), which attracted about $ 28 million. The NeuroChain project (extended blockchain designed to improve performance and capabilities of distributed systems) closes the list with the result of $ 26.5 million.


Scam of the month


The most notorious scam projects in April 2018 are:


  1. Pincoin and iFan (Vietnam) - from $ 100 to $ 660 million. Two ICOs were conducted by one Modern Tech company classified as a multi-level marketing scam. 32 000 investors were affected.

  2. Centra Tech (USA) - $ 32 million. Multilevel marketing based on the investment program. Robert Farkas and Raymond Trapani, founders of Centra Tech Shoomb Sharm,  are accused of misappropriating $ 32 million "obtained by selling unregistered securities" by SEC.



The audit of the investment attractiveness evaluation results


The experts of the first professional agency for the evaluation of digital assets DigRate made the following changes as of 30.04.2018 as the results of revision of investment attractiveness evaluations and the quality of projects:


  1. Edenchain: the investment attractiveness score has been increased from 4.6 to 4.9, the Quality Rate has been upgraded from Medium to High due to the launch of the E-Edge web platform.

  2. JURY.ONLINE: The Quality Rate has been downgraded due to the ICO time shift until April 30, 2018.

  3. Scorum: The Quality Rate has been downgraded due to the roadmap stages implementation changes. (the listing of the token on exchanges was scheduled for March 2018, tokens are still not traded).

  4. DreamTeam:  The Quality Rate has been downgraded due to the shift in timing and the change in the roadmap.

  5. MicroMoney: The Quality Rate has been downgraded due to the lack of information from the project team about the implementation of the roadmap; the last activity on GitHub was more than 6 months ago, links to the project's software products are not active.




Top-5 projects, May 2018


Analysts of the first professional rating agency for the evaluation of digital assets DigRate selected  the 5 most promising ICOs of May 2018.


1. Hedera Hashgraph (Blockchain), pre-ICO starts in May 2018. DigRate score — 5,1 / 7,0.


Hedera hashgraph is the platform for implementing a new form of distributed consensus to ensure secure collaboration and online transactions for people who do not know each other.


2. GoChain (Blockchain), pre-ICO starts on May 1, 2018. DigRate score — 4,8 / 7,0.


GoChain is a scalable, high-performance and low-cost blockchain system that aims to create a cryptocurrency with the advantages of a decentralized network, but with characteristics of classic payment systems.


3. OneLedger (Blockchain Service), pre-ICO starts in May 2018. No DigRate score.


OneLedger is a cross-platform business protocol that seeks to consolidate different types of business and enable all types of business applications to connect to different blockchains.


4. Keep network (Blockchain Service), pre-ICO start is unknown. No DigRate score.


Keep network is an off-chain data storage to ensure privacy and interactivity dealing with personal data.


5. NuCypher (Blockchain Service), pre-ICO start is unknown. No DigRate score.


NuCypher helps developers of decentralized applications protect their data in a blockchain with decentralized re-encryption of the proxy server.



Conclusions


April 2018 was the month of the cryptocurrency market  recovery after a negative trend that lasted the entire first quarter of 2018.


The growth driver of the market overall capitalization was positive news from the financial market giants: Barclays, Citigroup, Saxo Bank, JPMorgan, Huawei, IBM, Soros and Rockefeller funds and positive reports about top altcoins: Ethereum, Bitcoin Cash, Ripple, EOS. An important role in changing the price dynamics of the cryptocurrency was acted by the end of the tax period in the United States. At the same time, the negative news background from the financial regulators of Japan, China, the United States, the EU, India, Iran continues to deter the entire cryptocurrency and ICO market.


The price of predominant currency - Bitcoin - has increased by 34.5% in April (from $ 7003.06 to $ 9,419.08). The price of the second currency on the capitalization - Ethereum - has increased by 73.41% (from $ 397.25 to $ 688.88) from 01.04.2018 to 30.04.2018. It should be noted that Ethereum demonstrated a higher recovery than Bitcoin.


The dynamics of the altcoins price recovery (Ethereum, Ripple, Bitcoin Cash and EOS) outstrips Bitcoin, which is why the index of the main currency dominance has declined over the past month.

Growth leaders of the altcoins market in April 2018 were the EOS, Golem and Matchpool projects, the price of tokens has increased several times. Synereo, Nimiq and DigixDAO are in the top three losers of the month.


The ICO market showed a twofold decrease in the amount of funds raised during the ICO in April 2018 compared to the previous month (March 2018), according to ICO GLOBAL MARKET STATS. The greatest interest of investors was caused by infrastructural projects and projects from the financial sphere, however, the same was in the last month. $ 618.9 million was raised in April  in total, $ 133 million of which is a share of the leader of the month - the Basecoin project.


Negative statistics on the payback of ICO advertising campaigns for the I quarter of 2018 forced the founders of projects to shift the timing of their ICOs in order to find the most suitable time for entering the market.



Important news of the reporting period (April 2018)



Date
News
The actual situation on the market
Impact on the market
03.04.2018
The Securities and Exchange Commission announced additional fraud charges stemming from an investigation of Centra Tech, Inc.'s $32 million initial coin offering
Market growth
Negative
03.04.2018
Google Bans Cryptocurrency Mining Extensions From Chrome Web Store
Market growth
Negative
04.04.2018
Liechtenstein to Avoid 'Excessive' Blockchain Regulation: Prime Minister
Market growth
Positive
04.04.2018
Chinese Petro Giant Sinochem Exports Gasoline using Blockchain Technology
Market growth
Positive
04.04.2018
Korean Watchdog Orders 12 Cryptocurrency Exchanges to Revise Customer Contracts
Market growth
Negative
04.04.2018
It’s Important to Try Using Cryptocurrencies, Says Japan’s Central Bank
Market growth
Positive
05.04.2018
India’s Central Bank To Stop Dealing With All Crypto-Related Accounts
Market growth
Negative
06.04.2018
SEC Considers Rule Change to Allow Bitcoin ETFs
Market growth
Positive
06.04.2018
Omise Signs Agreement With Major South Korean Banking Affiliate In Win For Adoption
Market growth
Positive
06.04.2018
Soros fund reportedly preparing to trade cryptocurrencies
Market growth
Positive
07.04.2018
Rockefeller firm confirmed its intention to invest in crypto startups
Market growth
Positive
08.04.2018
Pakistan’s Central Bank Prohibits Crypto Dealings with a Circular
Market growth
Negative
11.04.2018
Appearance of a new cryptocurrency regulator in the UK - CryptoUK
Market growth
Positive
13.04.2018
Alibaba Subsidiary Taobao Bans listing of Cryptocurrency and ICO Services
Market growth
Negative
16.04.2018
CME Group published the first report on bitcoin futures
Market growth
Negative
17.04.2018
The end of the tax period in the US
Market growth
Positive
17.04.2018
Barclays Launches Venture Capital Unit To Invest in Smart Contracts and Blockchain Tech
Market growth
Positive
18.04.2018
Citigroup opens a division for risk assessment of cryptocurrencies
Market growth
Positive
18.04.2018
Saxo Bank: Cryptocurrency market in anticipation of a new positive cycle
Market growth
Positive
19.04.2018
The European Union introduces the verification of the owners of cryptocurrencies
Market growth
Negative
19.04.2018
Batavia, a blockchain-based trade finance platform founded by banking giant UBS in partnership with IBM, has conducted its first live cross-border transactions involving corporate clients
Market growth
Positive
19.04.2018
China’s Telecom Giant Huawei Launches Blockchain-As-A-Service Platform
Market growth
Positive
20.04.2018
Update Casper FFG will reduce the level of inflation Ethereum to 2% per year
Market growth
Positive
21.04.2018
Antpool Begins Burning BCH Network Fees Increasing Digital Scarcity
Market growth
Positive
21.04.2018
JPMorgan, National Bank of Canada, others test debt issuance on blockchain
Market growth
Positive
21.04.2018
The price of bitcoin broke the mark of $9000
Market growth
Positive
21.04.2018
TRON will airdrop 30 million TRX for Ethereum users
Market growth
Positive
22.04.2018
Binance to Add “fiat To Crypto Exchange” Soon
Market growth
Positive
22.04.2018
Amazon Web Services Launches Ethereum And Hyperledger Fabric Blockchain Templates
Market growth
Positive
23.04.2018
Iran’s central bank prohibits banks from dealing with cryptocurrencies
Market growth
Negative
23.04.2018
The Chinese authorities report the blockchain of ICO-platforms in the country
Market growth
Negative
23.04.2018
Someone transferred $99 million in litecoin — and it only cost them $0.40 in fees
Market growth
Positive
24.04.2018
South Korean Gaming Giant Nexon Reported to have Acquired Bitstamp
Market growth
Positive
25.04.2018
Nasdaq CEO Blesses Cryptocurrency
Market fall
Positive
26.04.2018
More Than $140 Million in Bitcoin Moved from Mt Gox Wallets
Market fall
Negative
27.04.2018
CBOE: trading volumes of bitcoin futures reached new highs
Market growth
Positive
28.04.2018
US: SEC Official Says ICO Regulation Should Be ‘Balanced’, Congressman Suggests Ban
Market growth
Positive
30.04.2018
Japan Wants Cryptocurrency Exchanges to De-List Anonymous Altcoins
Market growth
Negative




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Rating scores express an opinion of Digital Rating Agency and do not have any fact-finding mission or recommendations to buy, own, sell any assets and take any investment decisions. Digital Rating Agency does not undertake any responsibility for any consequences, interpretations, judgements, recommendations and other actions directly or indirectly related to the rating score, the rating operations conducted by Digital Rating Agency, any summary and conclusions contained in the rating report and rating releases, or the absence of abovementioned. The only source, depicting the real state of the rating score, is official site www.digrate.com