ICO and cryptocurrency market analysis, July 2018 | Digital Rating Agency

ICO and cryptocurrency market analysis, July 2018

03.08.2018

ICO and cryptocurrency market analysis, July 2018

Digital Rating Agency analysts present the most significant news and important trends that influenced the market in July 2018.


Having started in the second half of the month, the cryptocurrency market began to recover, and the total market capitalization indicators reached the March values.


The price of Bitcoin increased by 26.73%, Ethereum, on the contrary, decreased by 1.27%. It is noteworthy that the capitalization of the altcoins market for the month has not changed. The recovery of the market was largely due to the growth of Bitcoin capitalization.


According to the ICO GLOBAL MARKET STATS, the volume of funds raised in the ICO market in July 2018 decreased by 63.71% compared to the previous month. Such a strong difference in raised funds is due to raised funds of the project TaTaTu, which in the previous month managed to raise $ 575M. There were no projects with such impressive raised funds in July, and the maximum amount of raised funds per month for one project was $68.9M. The greatest interest of the audience was traditionally caused by infrastructure projects, as well as projects related to mining and alternative energy. $ 623M was raised in July in total, and the leader of the month on raised funds was the mining company Cryptosolartech, which uses solar energy for its work.



The general dynamics of the cryptocurrency market (01.07.18 - 31.07.18)


The market entered the stage of an uptrend in the second half of the month. The total capitalization of the cryptocurrency increased by 16.11% from its minimum value for the month of $243.968bn, recorded on July 13, to $283.287bn as of July 31, 2018. Thus, the total market capitalization in July broke the downward trend that prevailed since the beginning of this year, reaching the values registered in March.




*Provided by coinmarketcap.com


Bitcoin’s market capitalization increased by 29,83%: from $105,778bn to $137,335bn.

The altcoins market could not demonstrate such impressive results: since the beginning of the month, the total capitalization of altcoins (excluding Bitcoin's capitalization) increased by only 0.78%: from $144.767bn to $145.900bn. The growth dynamics of altcoin capitalization turned out to be almost 40 times lower than the corresponding dynamics of Bitcoin. It can mean that in the moments of uncertainty, investors are more likely to trust the most popular currency, which has already proved its worth.



*Provided by coinmarketcap.com


The DRI index (market capitalization index, cleared of "dead" and non-traded coins)  increased by 11.26% from its minimum value for the month of $ 213bn (July 13, 2018), to $ 237bn (July 31, 2018).



*Provided by DRI DigRate


The price of Bitcoin increased by 26.73% (from $6307.05 to $7993.22). Ethereum price decreased by 1.27% (from $445,18 to $439,49) during the month.



*Provided by coinmarketcap.com


Bitcoin market dominance increased significantly by 7.01% (from 41.45% to 48.46%).  The Ethereum dominance index decreased by 2.10% (from 17.73% to 15.63%).



*Provided by coinmarketcap.com



Top 10 gainers and losers


Top 10 gainers and losers of July were identified. The analysts of the Digital Rating Agency (DigRate) took into account only cryptocurrencies with an average daily trading volume of at least $ 1M.


Тop 10 gainers:




Тop 10 losers:


Token name

Ticker

Volume (24h)

Price (31.07)

Fall %

1

Seele

SEELE

$1 018 738

$0,079585

−62,35%

2

Selfkey

KEY

$4 185 374

$0,011350

−56,67%

3

Tezos

XTZ

$3 577 160

$1,92

−56,50%

4

GameCredits

GAME

$2 526 200

$0,295277

−54,01%

5

All Sports

SOC

$2 526 200

$0,026226

−52,04%

6

Tripio

TRIO

$1 000 404

$0,005220

−51,59%

7

Achain

ACT

$5 270 094

$0,060127

−48,43%

8

Storiqa

STQ

$1 190 690

$0,002948

−48,05%

9

Bezant

BZNT

$1 652 440

$0,038192

−47,18%

10

XMax

XMX

$1 381 370

$0,001331

−47,02%



Important news of the reporting period (July 2018)


The world's largest exchange fund (ETF) BlackRock, under whose management are $6.3T, indicated its interest in cryptocurrencies. We remind you that CEO of BlackRock Larry Fink criticized Bitcoin and called it "money laundering index" just six months ago. Now the press secretary of the fund said the company plans to integrate blockchain technology into its business model for several years. This exact news could be the reason for the strong growth of Bitcoin price in July. Another critical factor of the market growth was the appointment of the crypto enthusiast David Solomon to the position of President of Goldman Sachs. It was another sign of the strengthening of institutional participation in the cryptocurrency market, which immediately had a positive impact on its capitalization.

Facebook has decided not to block the advertising of digital currencies, but the popularization of ICO projects and binary options will continue to be banned. Restrictions were introduced in the winter of 2018, but there was a revision of the advertising policy in the direction of simplifying the conditions in July. Removing the ban on advertising digital currencies positively influenced the state of the market.

The US Internal Revenue Service (IRS) has set up an international task force to investigate crypto crimes. The new coalition, called "J5", includes federal agencies of five countries: Australia, Canada, the Netherlands, the United Kingdom and the United States. The agencies will cooperate in intelligence and criminal investigations "to reduce the growing threat to tax administrations created by cryptocurrencies and cybercrime," and to prevent transnational tax crime and money laundering.

The government of South Korea, known for its ambiguous attitude to the cryptocurrency, officially recognized the currency exchange as regulated financial institutions and banks. Local publications reported that financial regulators gave a precise definition of the Cryptocurrency Exchange ("Cryptocurrency Exchange and Brokerage") to allow trading platforms to work with the support of local authorities. Local analysts said that the government's decision would attract large investors. South Korean authorities will also change the existing rules to facilitate the development of decentralized applications and blockchain, like Ethereum and EOS.

The government of Iran blocks cryptocurrency exchanges to control the outflow of capital. The country was severely affected by the sanctions imposed by the administration of Trump. $2.5bn was withdrawn from the Iranian economy to buy Bitcoin due to the hyperinflation of the national currency at the beginning of July. This was reported by the chairman of the parliamentary economic commission Mohammad Reza Pourebrahimi. He also talked about working on the national cryptocurrency to circumvent the sanctions, which were reinstated following the cancellation of the nuclear deal with the US.

The Philippine Economic Zone CEZA granted licenses to three cryptocurrency exchanges. We remind you that the Government of the Philippines announced in April that 10 cryptocurrency trading platforms would be able to work in the economic zone to create additional jobs and stimulate the economy. CEZA requires companies to invest at least $ 1M over two years and pay $100,000 as a license fee, as well as $100,000 in the form of a registration fee. Under the terms, licenses must be updated yearly, and fees are not refundable. According to CEZA, already 70 companies applied for work in the economic zone.

The market was positively affected by the launch of a mobile application by the Japanese giant LINE with the support of 30 cryptocurrencies. The application will work on the basis of the BITBOX crypto exchange developed by LINE, adapted for 15 different languages and available worldwide. However, at the moment the application supports only crypto-to-crypto trading pairs without the possibility of trading in fiat. The news from Japan does not end there: almost two years after the first announcement of the launch, the world's first cryptocurrency exchange owned by the Bank finally began operating. Japanese financial giant SBI Holdings officially announced the launch of its trading platform, called VCTRADE, in July. During the pre-launch last month, the platform offered only XRP trading. To date, the exchange added the support for Bitcoin and Bitcoin Cash trading pairs against the yen.

The largest currency exchange in terms of trading volume Binance plans to enter South Korea, one of the world's largest crypto markets. The exchange is already in the process of hiring regional managers and intends to create three to five local companies in 2018. The planned Binance exit to the South Korean market will occur just at the time when regulators review the regulation of the cryptocurrency sector and partially legalize the ICO. Also, the exchange announced it was entering the African market with the launch of the first crypto exchange in Uganda less than a month ago.

The world's third largest crypto exchange Huobi with a daily trading volume of about $ 823M opened trading on HBUS service in the US. In addition to directly cryptocurrency trading, the new platform will also provide traders with market data reviews for 22 platform-supported currencies. HBUS already accepts requests for account verification from US residents. The partnership is strategically vital for Huobi since it will open access to the client base in the US. Along with the company in the US, Huobi confirmed the auction was opened on a new platform in Australia. Huobi announced the launch of the P2P platform for residents of India, including trading pairs with Indian rupees later this month. The company promises not to charge transaction fees for the exchange of BTC, ETH and USDT in India. Recall that in June, the Singapore exchange confirmed its intention to open an office in London, and launched a platform in Australia with 10 Crypto-currency pairs against the Australian dollar in early July. Huobi is also considering opening branches in Toronto, San Francisco and São Paulo.

Another important news, which few people paid attention to, but of great importance for the whole market concerns the American exchange Coinbase. The SEC officially approved the exchange to work as a broker and authorized the listing of security tokens in mid-June. This decision opens the way for new money on the crypto market and, by the importance, perhaps surpasses the news about the interest of the largest stock exchange in cryptocurrencies.

Western Union has issued a patent for a system for managing secure cash payments using cryptocurrency. The system offered by Western Union will use biometric verification to ensure transactions are authorized by the sender. This check can be performed in the form of a fingerprint scan, a custom voice pattern, or a scan of the retina. The patent application states the system can use such cryptocurrencies as Bitcoin, Litecoin or Peercoin. It is noteworthy that the application does not mention the XRP, cryptocurrency, which Ripple has developed specifically for money transfer companies like Western Union.


More detailed information about important news for July 2018 is placed in the table below.


ICO market analysis, July 2018


In the period from 1 to 31 July 2018, 106 ICOs were completed, of which 32 (30.18%) failed to collect the softcap. The Loandex project was in the category of Dead: these are projects that do not have a website running, or projects against whose leaders cases are initiated or an investigation is being conducted about fraudulent activities. The amount of general funds for July was $ 623M.


The number of ICOs and collected funds for June and July 2018:

Index

Total for June

Total for July

Total ICOs / $ million

134/1717

106/623

Active / $ million

97/1717

73/622,8

Failed / $ million

37/-

32/-

Dead / $ million

-/-

1/0,2


Compared to the previous month, the number of ICOs was less for 28 projects (20.89%), and the amount of collected funds - less by $ 1094M (63.71%). Such a strong difference in raised funds is due to the fact that last month's raised funds were largely formed at the expense of the TaTaTu project, which managed to raise $ 575M. There were no projects with such impressive fees, and the maximum amount of fees per month for one project was $68.9M in July.


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


In total, $171.6M was collected for the five largest projects in a month, 40.55% ($68.9M) of it fell to the share of the Cryptosolartech, a solar energy-using mining company.





Top 5 projects by the amount of raised funds, July 2018:


Project name

Ticker

Raised, $M

Cryptosolartech

CST

68,9

Sparkster

SPARK

30

TravelBlock

TRVL

25,2

Atlantis Blue Digital

ABDT

23,9

Liquidity Network

LQD

23,6

Raised in total by top 5


171,6


The second place with $ 30M raised funds was the Sparkster project, which allows you to create and manage decentralized applications without programming skills needed. The third place was occupied by the travel platform TravelBlock, raised $25.2M. The list of collection leaders in July is closed by Atlantis Blue Digital project (a project that allows you to trade larimaras - rare precious stones found so far only in one place on earth in an extinct volcano in the Caribbean) and Liquidity Network (an infrastructure platform that offers a solution for the Ethereum network, like the Lightning Network for the Bitcoin network), with fees of $23.9 and $23.6M, respectively.



Scam of the month


  1. Trezor — the Trezor hardware wallet team issued a warning that criminals attempted to access users' wallets with a phishing attack at the beginning of the month. Users of the service who wanted to visit the wallet website (wallet.trezor.io) were redirected to the fake TrezorWallet site. He confused users with a fake security message and suggested entering data for the access recovery procedure.

  2. Bancor — the Bancor Currency Exchange announced on Twitter it had detected a security breach and would investigate the incident on July 10. The vulnerability was used by hackers to steal 24,984 ETH (about $ 12M), NPXS worth $ 1M and BNT worth about $ 10M. Almost immediately, the stolen BNT tokens were frozen using a mechanism built into the Bancor protocol. However, stolen ETH and NPSX are still at risk. The exchange also said it works alongside dozens of crypto exchanges to track the stolen funds and complicate the cashing process for the kidnappers.

  3. KICKICO — a network of the project KICKICO, working on the protocol Ethereum, was hacked on July 27. Attackers managed to steal more than 70 million KICK tokens for $7.7M. Hackers got direct access to the platform’s smart contract by stealing a private key. Controlling access to a smart contract, criminals destroyed 40 existing addresses and created 40 new accounts with identical balances. Since the stolen funds were not destroyed, but simply reproduced, the total volume of KICK tokens remained unchanged. A few hours after the incident, the KICKICO team could regain access to its smart contract and replaced the compromised key with a private key of its cold wallet to protect the network and user funds. The team stressed that the owners of the 40 affected accounts would fully reimburse the losses.

  4. Sky Mining — Le Ming Tam, the head of the Vietnamese mining company Sky Mining, which promised an annual return of 300%, disappeared from the $ 35M owned by the company and investors in late July. The deputy head of the company Le Ming Hie formed an investor commission to assess the losses and remaining assets of the company. He claims that Le Ming Tam directly controlled the use of mining capacities and, probably, disappeared in the US. Le Ming Hie, himself and his colleagues, also considers the victims of fraud, as he stated to the police together with 20 investors.


The audit of the investment attractiveness evaluation results


The experts of the agency for the evaluation of digital assets DigRate made the following changes as of 31.07.2018 as the results of revision of investment attractiveness evaluations and the quality of projects:


  1. Liqnet: investment attractiveness score was increased from 5.2 to 5.3 due to the addition of four new advisers to the team.

  2. CyClean: investment attractiveness score was increased from 4.8 to 4.9 due to the addition of a new product - the CyClean scooter.

  3. BeEasy: investment attractiveness score was increased from 5.1 to 5.2 due to a new partnership with Ethen.market.

  4. DAV Network: investment attractiveness score was increased from 5.2 to 5.3 due to a new partnership with High Drone Chile.

  5. INS Ecosystem: investment attractiveness score was increased from 5.0 to 5.1 due to the listing of the token on OKCoin Korea.

  6. LALA World: investment attractiveness score was increased from 4.8 to 4.9 in connection with the launch of the mobile application in the UAE.

  7. Kickcity: investment attractiveness score was decreased from 4.7 to 4.2, the Quality Rate has been lowered due to the stoppage of the official website.

  8. Nuggets: investment attractiveness score was increased from 4.4 to 4.5 due to the addition of the former managing director Visa to the team.

  9. Thrive: investment attractiveness score was increased from 5.8 to 5.9 due to the listing of the token on Coinsuper.



Top 5 projects, August 2018


Analysts of the Digital Rating Agency (DigRate) selected 5 most promising projects, pre-ICOs and ICOs of which are scheduled for August 2018.


1. AERGO (Blockchain), ICO starts in August 2018. No DigRate score.

AERGO is a platform for creating and deploying large-scale decentralized applications. In addition to the standalone protocol, AERGO includes a multifunctional software layer that simplifies the connection to legacy corporate software.


2. Ankr Network (Cloud Computing), ICO starts in August 2018. No DigRate score.

Ankr Network — a distributed cloud computing service that is a decentralized analog of Microsoft Azure and AWS. The new consensus of the Proof-of-Useful-Work network provides a self-contained block structure. Instead of spending electricity and processing power on hashes, the PoUW consensus uses these resources to solve real problems provided by enterprises and consumers.


3. FIC Network (Real Business), ICO starts in August 2018. No DigRate score.

FIC Network — blockchain platform, which will give users the opportunity to create fixed-income instruments, and invest their crypto-currency assets in these instruments: loans, bonds, credit default swaps, futures, etc.


4. DxChain (Data Service), ICO starts in August 2018. No DigRate score.

DxChain — multichain platform for storing and processing large data sets using machine learning technology. The platform solves scalability by using three different circuits, each of which performs its functions: Master Chain (main chain) reduces the operations that occur in the Data Chain and the Computation Chain.


5. Neonexchange (Exchange), ICO starts in August 2018. No DigRate score.

Neonexchange - it is a platform for trade and exchange of cryptocurrency, combining the speed and convenience of trading operations with the security of the storage of assets. Speed is achieved through using off-chain technology for information processing and order processing, increased security is possible due to the developed smart wallet Chrome, which according to the project management combines the functions of MetaMask and Neon Wallet.



CONCLUSION


Within a month the cryptocurrency market showed signs of moderate recovery, and the total market capitalization increased by 16.11% compared to the previous month. The price of the dominant currency Bitcoin increased by 26.73% during July. The price of Ethereum, on the contrary, decreased by 1.27%. It should be noted the altcoin market showed much more modest results, and it increased by less than 1% during the month. A rather sharp increase in Bitcoin's dominance over altcoins over the course of a month suggests that in times of market uncertainty, investors are more likely to trust the already established and time-tested currencies, the most popular of which is still Bitcoin.


Metaverse ETP, KickCoin and Refereum are gainers of the month, the price of their tokens increased by 283%, 184% and 123% respectively. Seele, Selfkey and Tezos are losers of the month.


According to ICO GLOBAL MARKET STATS, the ICO market showed a decrease in the volume of funds raised compared to the previous month by 63.71% in July 2018. Such a strong difference in raised funds is due to the fact that last month's funds were largely formed at the expense of the TaTaTu project, which managed to raise $ 575M. There were no projects with such impressive raised funds, and the maximum amount of raised funds per month for a single project was only $68.9M in July. The greatest interest of the audience was traditionally caused by infrastructure projects and projects related to mining and alternative energy.  Unusual was the hit in the leaders in the raised funds for the month of the project Atlantis Blue Digital, which allows you to trade rare jewels with larimar, which can be found only on one square kilometer of land in the Caribbean.


Important news of the reporting period (July 2018):

Date

News

The actual situation on the market

Impact on the market

01.07.2018

The Abu Dhabi regulator issues “complex” rules for the regulation of crypto currency

Growth

Positive

02.07.2018

Philippines’ Economic Zone Creating Crypto Regulations, Licensing 25 Exchanges

Growth

Positive

02.07.2018

The Indian government will use the blockchain to finance farmers

Growth

Positive

02.07.2018

Warning! Trezor wallet undergoes phishing attack, team offers security advice

Growth

Negative

03.07.2018

Five Countries Launch An International Tax Enforcement Alliance For Crypto Crime Threats

Growth

Positive

05.07.2018

Spain’s Securities Regulator Undertakes a Blockchain Pilot

Growth

Positive

05.07.2018

Thai Regulator Publishes ICO Regulations; 7 Cryptocurrencies Approved

Growth

Positive

06.07.2018

South Korea is Officially Recognizing Crypto Exchanges as Regulated Banks

Growth

Positive

08.07.2018

Bitmain to Invest $50M in Opera Web Browser

Fall

Positive

10.07.2018

Decentralized Crypto Exchange Bancor Hacked, $12M in Ether Stolen

Fall

Negative

10.07.2018

Payment Service CoinGate Launches Bitcoin Lightning Network Pilot for 100 Merchants

Fall

Positive

11.07.2018

Huobi-Linked Cryptocurrency Exchange HBUS Launches in U.S. Market

Fall

Positive

11.07.2018

Bitmain-Backed Opera Web Browser Adds Built-In Ethereum Wallet

Fall

Positive

13.07.2018

American Express is Eyeing Blockchain for a Proof-of-Payments System

Fall

Positive

14.07.2018

Coinbase Exploring the Addition of Cardano, Basic Attention Token, Stellar Lumens, Zcash, and 0x

Growth

Positive

14.07.2018

MALTA LAUNCHES FIRST TWO-WAY BITCOIN ATM AS GLOBAL ACCEPTANCE RISES

Growth

Positive

15.07.2018

POLONIEX LAUNCHES ITS OFFICIAL MOBILE APP FOR ANDROID AND IOS

Growth

Positive

16.07.2018

Financial Stability Board Presents Report on Framework for Monitoring Crypto Markets

Growth

Positive

17.07.2018

Coinbase Spoke to U.S. Regulators About Acquiring Federal Banking License

Growth

Positive

17.07.2018

Future Flight: Boeing Will Use Blockchain Tech to Track Unmanned Air Vehicles

Growth

Positive

18.07.2018

Japanese Internet Giant GMO’s New Web Bank Will Use Blockchain for Payments

Growth

Positive

19.07.2018

Samsung Stores in the Baltic States Start Accepting Cryptocurrency Payments

Fall

Positive

20.07.2018

CoinMarketCap Removes Volume Requirements for Cryptocurrency Exchange Listing

Fall

Positive

21.07.2018

Google Lists Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) in Currency Converter

Fall

Positive

24.07.2018

Singapore Airlines Launches KrisPay, a Digital Wallet to Be Used with KrisFlyer Loyalty Program

Growth

Positive

24.07.2018

South Korean Mobile Telecom Giant Launches 2,500 Txns/s Commercial Blockchain

Growth

Positive

24.07.2018

US SEC Delays Decision on Direxion Bitcoin ETF Until September

Growth

Negative

25.07.2018

Bitwise Files For First Cryptocurrency Index ETF

Growth

Positive

26.07.2018

Iran Inches Closer to National Cryptocurrency in Plan to Evade US Sanctions

Growth

Positive

26.07.2018

Major Chinese Social Network Tianya to Launch Native Cryptocurrency Token

Growth

Positive

27.07.2018

KICKICO Suffered $7.7M Hack Attack, Says Will Return Stolen KICK Tokens

Fall

Negative

27.07.2018

Capital Goods Giant CNH Industrial Partners With IBM on Long-Term Blockchain Upgrade

Fall

Positive

29.07.2018

Thai Bond Market Association to Incorporate Blockchain Technology

Fall

Positive

30.07.2018

Smart Dubai, DIFC Partner To Improve Court System With Blockchain

Fall

Positive