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

ICO and cryptocurrency market analysis, June 2018

10.07.2018

ICO and cryptocurrency market analysis, June 2018

Analysts of the Digital Rating Agency present the most significant news and important trends influenced the market in June 2018.


The crypto market was in a downward trend during June, and the indicators of total market capitalization returned to their minimum values registered in early April.


Bitcoin price decreased by 17.13%, the price of Ethereum - by 28.25%. Ethereum and the majority of altcoins showed a higher rate of decline compared to Bitcoin.


In June 2018, the ICO market showed an increase in the amount of raised funds compared to the previous month by 85%, according to ICO GLOBAL MARKET STATS. Such gap was due to the TaTaTu project, which raised more than a third of the total. The greatest interest of the audience was caused by infrastructure projects, as well as the projects related to advertising and commerce, media and finance. $ 1717M were collected in total in June, $ 575M of which belong to the gainer of the month - the TaTaTu project from the Media category.


Read below about the reasons that influenced the dynamics of the market in June in the monthly report by analysts of the Digital Rating Agency (DigRate).


The general dynamics of the cryptocurrency market (from 01.06.18 to 30.06.18)


The market of crypto assets was in a smooth downward trend the whole month. The total market capitalization decreased by 30.14% as of June 30, 2018  from its maximum monthly value of $ 354,997, registered on June 3, and amounted to $ 248.441bn. Thus, the total capitalization of the cryptocurrency market fell to its minimum annual values, registered in mid-April.




*Provided by coinmarketcap.com


Bitcoin's market capitalization decreased by 16.79%: from $ 132.216bn to $ 110.004bn.

The market of altcoins also showed a negative dynamics, and most of the coins from the top twenty went into the "bearish" trend.

The total altcoins capitalization (excluding Bitcoin) decreased by 34.33%: from $ 222.045bn registered on June 3 to $ 145.797bn. The dynamics of the decrease in altcoins capitalization outperformed the corresponding dynamics of Bitcoin more than twice. This trend shows that the price of altcoins is more affected by market conditions, and investors are more likely to trust Bitcoin at critical falls.



*Privided by coinmarketcap.com


The DRI index (market capitalization index, cleared of "dead" and non-traded coins) decreased by 25,82% from its maximum value of  $302bn (03.06.2018) to $224bn (30.06.2018).



*Provided by DRI DigRate


The price of the dominant currency, Bitcoin, declined by 17,13% (from $ 7752,14 to $ 6424,15). The second currency on capitalization, Ethereum, decreased by 28,25% from $ 622,04 to $ 446,27. Ethereum demonstrated a higher rate of decline.



*Provided by coinmarketcap.com


Bitcoin’s dominance increased significantly by 5.42% (from 37.33% to 42.75%). The index of Ethereum’s dominance remained practically unchanged, fluctuating between 17.25% and 17.70%.




*Provided by coinmarketcap.com


The increase of Bitcoin’s popularity was due to the fact that most altcoins are more sensitive to market conditions, so the capitalization of altcoins declined faster.


Тоp 10 gainers and losers


The top 10 gainers and losers were determined during the June 2018.  The analysts of the Digital Rating Agency (DigRate) took into account only cryptocurrencies with an average daily turnover of at least $ 1M.


Top 10 gainers:




Top 10 losers:


Token name

Ticker

Volume (24h)

Price (30.06)

Fall %

1

WaykiChain

WICC

$4 213 090

$0,472462

−74,15%

2

All Sports

SOC

$2 526 200

$0,049994

−68,95%

3

Lympo

LYM

$1 410 460

$0,036169

−68,23%

4

Skycoin

SKY

$7 980 040

$6,98

−67,39%

5

Delphy

DPY

$2 016 080

$0,703898

−63,87%

6

PCHAIN

PAI

$1 659 630

$0,064952

−61,08%

7

Tezos

XTZ

$11 122 700

$2,21

−55,86%

8

Republic Protocol

REN

$1 190 690

$0,044048

−54,55%

9

APIS

APIS

$27 930 700

$0,005228

−53,48%

10

Fusion

FSN

$4 781 370

$2,69

−52,02%



Objective reasons for a stronger decline in the price of these tokens compared with the general market decline were not revealed.


Important news of the reporting period (June 2018)


The leading news story of this month was John Griffin and Amin Shams, professors of the University of Texas, investigation of manipulations with Tether cryptocurrency. Market makers used Tether for artificial Bitcoin price pumps in 2017. The professors cite the dynamics of the Bitcoin price in the last few months to prove their point. This year’s sharp changes in the price almost coincide with the release of USDT coins. So firstly, there is a release of a new unbacked Tether coins to support the Bitcoin price, and then the cryptocurrency goes to the company's dollar reserve. Previously, Tether was repeatedly blamed for non-transparent emission of new tokens. The company got on the radar of the CFTC in last December. The regulator intends to open an investigation into USDT's linkage to manipulation at the Bitfinex. But the epic continues: the Chinese company SlowMist, specializing in the search for vulnerabilities in the blockchain environment, reported this week that it found an error that allows users to double-convert USDT without actual withdrawal of funds. Because of the risk of a re-write-off attack, SlowMist recommended crypto exchanges to suspend operations with USDT tokens and make sure there is no vulnerability on their platforms.


A lot of disputes and discussions are caused by the ban of ads related to cryptocurrencies by Google. Many experts call it "unethical," as the company has plans for issuing its own cryptocurrency, and ban is a method of unfair competition. The company has not reacted to such criticism.


It was restless again in South Korea. The Bithumb exchange, based in Seoul, sixth in the world among largest crypto exchanges, according to CoinMarketCap, and second in terms of the crypto exchange in South Korea, suspended its work and withdrew its funds after losing its cryptocurrency in the amount of $ 30M as a result of hacking on June 20. The management of Bithumb immediately stated that the company would cover all losses so that users were not harmed. We remind that recently, another South Korean exchange Coinrail has also been hacked, losses were estimated at more than $ 37M.


It has not been that long since the launch of EOS Mainnet, but the community already calls into question its decentralized nature. EOS network was frozen due to an unknown problem, and later 21 manufacturers of the network blocks froze 7 accounts supposedly owned by thieves who stole funds with phishing and other kinds of attacks. The main arbitration forum (ECAF) to resolve disputes in the EOS network, sent out another request instructing block manufacturers to freeze another 27 accounts.


More detailed information on important news of June 2018 is placed in the end of the report.



The ICO market analysis, June 2018


134 ICO were finished, 37 (27,61%) of which failed to collect the softcap. There were no projects 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 raised funds was $ 1,717bn.



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

Index

Total for May

Total for June

Total ICOs / $ million

147/927,8

134/1717

Active / $ million

75/926,8

97/1717

Failed / $ million

71/-

37/-

Dead / $ million

1/1

-/-


Compared to the previous month, the number of ICOs was less for 13 projects (8,84%), and the amount of collected funds was more by $ 789,2M (85,06%). Such an impressive amount was raised mainly by the TaTaTu project, which managed to attract $ 575M, that was more than 33% of the total amount of funds raised in this month.


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

In total, $ 818,3M were collected by the five largest projects, 70,2% ($ 575M) were collected by the TaTaTu project with a record for raised funds in the Media category.



Project name

Ticker

Raised, $million

TaTaTu

TTU

575

tZERO

tZERO

114,6

HybridBlock

HYB

47,8

4New

FRNC

41,5

FANTOM

FTM

39,4

Raised in total by top-5


818,3


The second place with $ 114.6M is occupied by the tZERO project, which will allow investors to trade and issue both traditional and "tokenized" shares of a new type. The third place is taken by the platform for trading HybridBlock. The list of leaders is closed by 4New project (a project that allows to receive energy for mining from processed waste) and FANTOM (an infrastructure platform for solving the problems of scalability and velocity of transactions), with $ 41.5M and $ 39.4M, respectively.



Scam of the month

  1. Money Trade Coin — the Mumbai police arrested a fraudulent gang after they deceived people by promising super profits. "Flintstone Group" has been working under the cover of a real estate company from 2016 and has been offering investments in cryptocurrencies. However, investors reported violations to the police after the company failed to secure the promised profit. Subsequently, the police raided the office of the firm. Unfortunately, the main suspects by that time fled the country, as a result, investigations were suspended.

  2. Coinone — after a 10-month investigation conducted by the cybercrime unit, the South Korean police department confirmed that it would continue to pursue the Coinone cryptocurrency giant on charges of illegal gambling. The company has been providing services for margin trading without the appropriate permission of the authorities.

  3. Syscoin — the developers of Syscoin cryptocurrency reported that the account of one of the token creators was hacked. Hackers exploited the vulnerability and downloaded the virus to Github. The Syscoin team warned that users who downloaded the 3.0.4.1 client installer for Windows from June 9 to June 13 may be victims of the attack.

  4. Turcoin — according to reports in local media, the Istanbul-based company Hipper Inc. has attracted investments through the launch and sale of the national cryptocurrency Turcoin. Launched by Mehmet Aydın and Sadun Kaya as a "competitor to bitcoin" the company attracted the attention of Turkish celebrities. The company promised customers a monthly income of 250 Turkish liras for investments of 1500 lire and an annual income of about 3000 before executives fled the country with depositors' funds. Another partner of Hipper Inc. - Mohammed Satiroglu - rejects charges in his address.

  5. Bitkoex — information leakage at the Bitcoex exchange has jeopardized $ 620,000 of users funds. According to CoinDesk Korea, employees of the South Korean exchange launched in May, published in social networks information about how many Karma (KRM) is available for 19 users of the platform. The report says that the leaked information contained users email addresses, as well as wallet addresses and private keys to the KRM token accounts, which allows anyone who has this information to access the user's assets.



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 30.06.2018 as the results of revision of investment attractiveness evaluations and the quality of projects:


  1. Morpheus Labs: the investment attractiveness score has been increased from 5.2 to 5.3 due to partnership with QuarkChain and NEM Foundation.

  2. Serenity: the investment attractiveness score has been increased from 5.0 to 5.1 due to partnership with ARUM Capital and DominionFX.

  3. JURY.ONLINE: the investment attractiveness score has been increased from 5.0 to 5.1 due to partnership with Indacoin.

  4. Sparkster: the investment attractiveness score has been decreased from 5.6 to 5.4 due to the postponement of the ICO.

  5. Solve.Care: the investment attractiveness score has been increased from 5.3 to 5.4, the Quality Rate has been upgraded due to conducting safety audit of the smart contract.

  6. Koios AI: the project was canceled due to marketing problems. The evaluation of the project is not valid.



Top 5 projects, July 2018


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


1) Fysical (Data Service), ICO starts in July 2018. No DigRate score.

Fysical is a decentralized platform that allows customers to share their location data. Data providers will be able to monetize their location data, for example, traffic readings or shopping visits, while maintaining data transparency and control.


2) Iryo Network (Healthcare), ICO starts in July 2018. No DigRate score.

Iryo Network creates a decentralized network for storing and processing medical data. Data security will be ensured by the use of technology of zero-knowledge proof, which is resistant to hacker attacks.


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

FIC Network is a blockchain platform that will allow users to create tools of fixed income, as well as invest their cryptocurrency assets in these tools - loans, bonds, credit default swaps, futures, etc.


4) Moonlight (Recruiting), ICO starts in July 2018. No DigRate score.

Moonlight is a recruiting platform on the NEO for hiring professionals in the field of blockchain development. The platform will have a built-in algorithm for matching candidates based on their skills and a set of professional qualities. These skills and experience will be fixed in the blockchain and present a reliable CV of the specialist.


5) Carry Protocol (Retail), ICO starts in July 2018. No DigRate score.

Carry Protocol is a platform that unites sellers and consumers into one ecosystem in off-line mode. Using Carry Protocol, sellers will be able to create their own tokens, working as loyalty points. Consumers can also earn these points by simply providing their phone number or other useful information about themselves when making a purchase.



CONCLUSION


The total capitalization of the cryptocurrency market declined during the month and lost 30.21% compared to the previous month. The price of Bitcoin decreased by 17.13%. The price of the second currency, Ethereum, fell by 28.25%. It should be noted that Ethereum, as well as almost all altcoins, showed a higher rate of decline compared to Bitcoin.


Quite strong increase in Bitcoin's dominance over altcoins was due to the fact that most altcoins are more sensitive to market conditions, so the capitalization was declining more rapidly. It can also be concluded that, at times of critical fall, investors are more likely to trust the already established and time-tested currencies, the most popular of which is Bitcoin.


Selfkey, ODEM and Monaco are gainers of June.  The price of their tokens increased by 158%, 78% and 42%, respectively. WaykiChain, All Sports and Lympo are losers of the month.


In June 2018, the ICO market showed an increase in the amount of raised funds compared to the previous month by 85%, according to ICO GLOBAL MARKET STATS. Such gap was due to the TaTaTu project, which raised more than a third of the total. The greatest interest of the audience was caused by infrastructure projects, as well as projects related to advertising and commerce, media and finance. However, this distribution was typical for the last month. The leader category was the Media due to the TaTaTu project. $ 1.717bn were collected in total in June, $ 575M of which belong to the gainer of the month - the TaTaTu project.


Important news for the reporting period (June 2018)

Date

News

Actual situation on the market

Impact on the market

01.06.2018

IOTA Partners With Norway’s Biggest Financial Group, Causing Price to Surge

Growth

Positive

01.06.2018

Ripple has concluded a partnership agreement with two payment services from Asia and South America

Growth

Positive

02.06.2018

The European Central Bank The Estonian Demolition of National Crypto Money Dreams

Growth

Negative

03.06.2018

Lisk Blockchain Halts on Failsafe Due to Unexpected Bug

Growth

Negative

04.06.2018

Microsoft to acquire GitHub for $7.5 billion

Fall

Negative

05.06.2018

Cryptocurrency Exchange Giant Coinbase is Officially Launching in Japan

Fall

Positive

05.06.2018

Bittrex tests USD pairs

Fall

Positive

06.06.2018

‘Real-World’ Ethereum-Based Blockchain Payments Trial a Success: South Africa’s Central Bank

Sideways

Positive

07.06.2018

Japanese I.T. Giant Fujitsu Unveils Blockchain Platform for Retailers

Sideways

Positive

07.06.2018

Mining Giant Bitmain’s CEO Wu ‘Open’ to Hong Kong IPO, Report Says

Sideways

Positive

08.06.2018

South Korean financial regulators have stopped investigating Bithumb

Sideways

Positive

10.06.2018

South Korean Exchange Coinrail Hacked

Sideways

Negative

11.06.2018

Regulation of Cryptocurrency: Canada

Fall

Positive

12.06.2018

Wells Fargo Bans Cryptocurrency Purchases on Its Credit Cards

Fall

Negative

13.06.2018

No, India hasn’t banned cryptocurrencies

Fall

Positive

15.06.2018

President Trump’s former Chief Strategist to start new cryptocurrency

Sideways

Positive

16.06.2018

The EOS stopped functioning for several hours due to an unknown problem

Sideways

Negative

18.06.2018

Blockchain Ireland: Irish Government Pushes For New Country Initiative

Sideways

Positive

20.06.2018

Breaking: South Korean Crypto Exchange Bithumb Hacked, Thieves Steal $30 Million

Sideways

Negative

21.06.2018

Bithumb Hack: $30M Lost, But Investors will be Compensated

Sideways

Positive

24.06.2018

Subsidiary Alibaba conducted the first money transfers using Blockchain technology

Fall

Positive

25.06.2018

Tether Releases $250 Million of USDT Tokens, Investors Await Crypto Price Jump

Fall

Negative

28.06.2018

New cryptocurrency rules in South Korea

Fall

Positive

28.06.2018

Abu Dhabi Regulator Introduces Regulations for Its Financial Center and Free Zone

Fall

Positive

28.06.2018

Mastercard received patent for anonymous blockchain transactions

Fall

Positive

30.06.2018

Payments Giant Qiwi’s Execs to Launch Russia’s First Crypto Investment Bank

Growth

Positive