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

ICO and cryptocurrency market analysis, May 2018

04.06.2018

ICO and cryptocurrency market analysis, May 2018

Analysts of the Digital Rating Agency has analyzed the situation on the crypto market during the month and now present to your attention the most significant news and important trends that have been influencing the market.


The cryptocurrency market was in a downward trend during May, and the total market capitalization indicators returned to the values of the beginning of the last month.


The Bitcoin price has decreased by 23.55%. The price of the second currency – Ethereum – has decreased by 31.12%. It is noteworthy that Ethereum and top-20 altcoins showed a higher rate of decline compared to Bitcoin.


The amount of funds raised during the ICO has increased by 33.29% compared to April 2018, according to the ICO GLOBAL MARKET STATS. The number of ICOs has also increased by more than 25% compared to the previous month. The greatest interest of the audience was caused by infrastructure projects, as well as projects related to advertising and commerce and financial projects, however, this distribution was also typical for the previous month.


Read below about the reasons that have been influencing the dynamics of the market in May in the monthly report by analysts of the DIgital Rating Agency (DigRate).


The general dynamics of the cryptocurrency market (from 01.05.18 to 31.05.18)


The crypto assets market was in a downward trend almost the whole month. As of 31.05.2018, the total capitalization of the cryptocurrencies has decreased by 30.21% from its maximum monthly value of $ 472,268, registered on May 6, to $ 329.590bn. Thus, the total capitalization of the crypto market reversed almost all the growth of the previous month, and dropped to the values recorded in early April.




*Provided by coinmarketcap.com


The Bitcoin’s market capitalization has decreased by 23.34%: from $ 169.156bn to $ 129.672bn.

The altcoins market also showed a negative dynamics, and most of the coins from the top 20 went into the bear trend.

The total capitalization of altcoins (excluding Bitcoin) has decreased by 32.85% since the beginning of the month from $ 303,503bn (registered on May 6) to $ 203.787bn. The drop in altcoins was faster than the drop in bitcoin prices by 9.51%. This trend clearly demonstrates that the prices of major altcoins are more exposed to market conditions than the Bitcoin’s.

*Provided by coinmarketcap.com


The DRI index (DigRate Index is an evaluation of true cryptocurrency market capitalization cleared of "dead" and non-traded coins) has decreased by 29.87% from $402,64bn (06.05.2018) to $ 282,36bn (31.05.2018).

*Provided by DRI DigRate

The price of predominant currency - Bitcoin - has decreased by 23,55% (from $9940,14 to $7598,57). The price of the second currency on the capitalization - Ethereum - has decreased by 31,12% (from $834,36 to $574,64). It is noteworthy that Ethereum showed a higher rate of decline compared to Bitcoin.

*Provided by coinmarketcap.com


Bitcoin's dominance has increased by 3.13% (from 35.75% to 38.88%). The Ethereum’s dominance index has also increased by 1.62% (from 15.69% to 17.31%).


*Provided by coinmarketcap.com


An increase in the popularity of Bitcoin and Ethereum compared to altcoins was due to the fact that most altcoins are more sensitive to market conditions, so the capitalization of altcoins has been declining faster.



Тop-10 gainers and losers


The top-10 gainers and losers were determined during May 2018. We took into account only cryptocurrencies with an average daily turnover of at least $ 1M.


Тоp-10 gainers


The unconditional gainer was Storiqa token, the price has increased by more than seven times thanks to the news about the launch of the MVP beta version and the listing on several exchanges at once. The reason for the increase of Primas tokens was the placement of the Primas app in the AppStore. Lympo tokens increased due to announcements about future listing on Bitfinex. The growth of Bodhi tokens was caused by the upcoming airdrop of BOE token (the integration of BOT tokens into the Ethereum network) to all BOT holders. Delphy project's tokens went up due to the announcement of the launch of the app version, adapted for the Chinese market. True Chain tokens have increased due to launch of a new light version of its wallet. Listing on Binance caused the growth of Theta Token. Datawallet tokens price was pushed up by the announcement of partnership with Liveen. The reason for the growth of the CyberMiles tokens was the message about the listing on Rfinex Exchange. And, finally, Bibox BIX tokens’ growth was caused by the increase in trading volumes within the platform by listing of such tokens as INSTAR, Red Token, Libra Credit and PCHAIN.



Тop-10 losers

#

Token name

Ticker

Volume (24h)

Price (31.05)

fall %

1

Gifto

GTO

$8 133 370

$0,233121

−63,25%

2

Red Pulse

RPX

$1 316 360

$0,058610

−62,09%

3

Apex

CPX

$1 791 050

$0,132958

−59,03%

4

Genaro Network

GNX

$1 972 290

$0,276659

−58,93%

5

Substratum

SUB

$4 562 930

$0,409968

−55,12%

6

Ignis

IGNIS

$1 080 180

$0,088236

−54,63%

7

Po.et

POE

$2 921 750

$0,028405

−54,41%

8

SmartMesh

SMT

$2 273 770

$0,049826

−54,37%

9

Verge

XVG

$12 620 500

$0,039809

−52,38%

10

Kyber Network

KNC

$14 929 400

$1,290000

−50,57%



Objective reasons for such a dramatic fall were not revealed.



Important news for the reporting period (May 2018)


The news background was quite positive during the month despite the market drop. Although news from regulators of South Korea, Thailand, Taiwan, Japan, Britain and Portugal had a positive effect, this was not enough to change the market situation. For example, the development of ICO legislation has began in South Korea, although it was completely banned eight months earlier. The regulatory framework in which the tax authorities refused to previously imposed VAT on individual holders of cryptocurrency came into effect in Thailand this month.


The negative impact on the market could have been made by well-known financiers such as Gary Cohn, Warren Buffett, Nick Colas and Joe Davis about the disappointing prospects for Bitcoin. The market could been pushed down by the investigation of the South Korean prosecutor's office against the largest crypto exchange Upbit on financial fraud. Although, after an audit of the exchange, violations were not identified, the market did not respond to the resolution of this situation. Another negative factor was the refutation of plans to open a platform for crypto trading by Barclays’ CEO Jes Staley. "51% attacks" conducted in Bitcoin Gold, Verge and Monacoin do not influence the market positively.


More detailed information on important news of May 2018 is placed in the table below.




The ICO market analysis, May 2018


147 ICO were finished, 71 (48%) of which failed to collect the softcap, another 1 (0.68%) was 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 amount of raised funds was $ 927.8M, $ 1M of which belong to Dead projects.




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

Index

Total for April

Total for May

Total ICOs / $ million

110/618,9

147/927,8

Active / $ million

57/617,3

75/926,8

Failed / $ million

52/-

71/-

Dead / $ million

3/1,6

1/1


Compared to the previous month, the number of ICOs was more for 37 projects (25.17%), and the amount of collected funds was more by $ 308.9M (33.29%). Such statistics show that despite the fall in the total capitalization of the market, many people are still optimistic about its potential.



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




In total, $ 305M were collected by the five largest projects, 38.6% ($ 118M) were collected by the Orbs project (an infrastructure network designed to manage large-scale consumer applications).



Project name

Ticker

Raised, $million

Orbs

ORBS

118

Videocoin

VID

50

DCC

DCC

49

Hycon

HYC

48

Patron

Pat

40

Raised in total by top-5


305


The second, third and fourth places with a separation of $ 1M from each other were occupied by projects that managed to attract about $ 50M: Videocoin (decentralized network for the distribution of video content), DCC (distributed public bank blockchain) and Hycon (infrastructure platform based on the technology of directed acyclic graph). The list of leaders is closed by Patron (platform for the promotion of brands in social networks).


Scam of the month


ZeroEdge is the operator of online gambling which announced the second round of its ICO, despite the many reports that it conducts fraudulent activities. The results of the investigation appeared on Medium.com saying that the casino itself and Zerocoins are frauds.

Wind Wide Coin – Texas State Securities Board banned the activities of the cryptocurrency investment project Wind Wide Coin. The company has attracted potential investors with fake recommendations and support of famous people: actress Jennifer Aniston, Prince Charles and former Prime Minister of Finland M. Vanhanen.

Envion — the project is suspended, and the team sues M. Woosterman, CEO, because of fraudulent diversion of all project assets. ICO has attracted $ 100M  In January 2018. The CEO, secretly conducted additional emission of tokens using his powers, took personal control of all project’s bank accounts and disappeared.

HoweyCoin — the US Securities and Exchange Commission announced its plans to issue its own cryptocurrency and launched a website to promote fraudulent ICO HoweyCoin. It is assumed that such "teachings" will allow investors to identify fraudulent ICOs better.

ShipChain — the ShipChain token exchange rate dropped due to the statements of the Attorney General's Office of South Carolina that the company is obliged to stop distributing "unregistered investment contracts" that violate the securities law.

Bitcoin Gold — an unknown group of miners was able to conduct "51% attack" in the BTG network in order to steal funds from crypto exchanges.

Verge the SuprNova mining pool reported that blockchain of the Verge cryptocurrency also became a victim  of "51% attack" and because of this all the correct blocks are rejected.

Titanium Blockchain Infrastructure Services the SEC received a judicial authorization to freeze the accounts of Titanium Blockchain Infrastructure Services Inc., which managed to raise $ 21M during the ICO. Company’s President Mike Alan Stolleri is accused of false allegations of partnership with the Fed, PayPal, Verizon, Boeing, Disney and a number of other well-known firms.



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 31.05.2018 as the results of revision of investment attractiveness evaluations and the quality of projects:


  1. RoomDAO: the investment attractiveness score has been increased from 4.2 to 4.6, the Quality Rate has been upgraded due to the launch of MVP.

  2. DeHedge: the investment attractiveness score has been increased from 5.1 to 5.3 due to the partnership with CoinSwipe.

  3. Hedera Hashgraph: the investment attractiveness score has been increased from 5.1 to 5.4 due to the partnership with Yoti and Satori LIT Token.

  4. Atonomi: the investment attractiveness score has been increased from 4.9 to 5.1 due to the launch of system’s beta version.

  5. Edenchain: the investment attractiveness score has been increased from 4.9 to 5.0 due to the partnership with ROA Invention Lab.

  6. Taklimakan Network: the investment attractiveness score has been decreased from 5.0 to 4.9. because of failures in the site due to DDoS-attacks on the company's servers.




Тop-5 projects, June 2018


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


  1. FANTOM (Blockchain), pre-ICO starts on June 1, 2018. No DigRate score.

FANTOM is a blockchain platform based on a directed acyclic graph (DAG), which solves the problem of scalability and transaction confirmation time of the existing blockchain technology.


  1. FarmaTrust (Healthcare), pre-ICO starts on June 1, 2018. No DigRate score.

FarmaTrust creates a platform based on AI and analysis of big data, which will eliminate counterfeit medicines, improve efficiency in the pharmaceutical industry and allow to buy proven high-quality drugs via the Internet.


  1. Elysian (E-commerce), pre-ICO starts on June 4, 2018. No DigRate score.

Elysian is a decentralized e-commerce platform for creating sites on the blockchain with an improved security system and user-friendly interface.


  1. Casper API (Blockchain Service), pre-ICO starts on June 15, 2018. No DigRate score.

Casper API is a decentralized data storage system for DApps (decentralized applications) on any blockchain using smart contracts and allowing to create and manage large-scale DApps.


  1. Uchain (Blockchain), pre-ICO starts on June 20, 2018. No DigRate score.

UChain is another blockchain platform that facilitates the development of DApps. The platform will use the proprietary system of credit ratings and is aimed at the development of decentralized exchange.



CONCLUSIONS


The total capitalization of the cryptocurrency market has decreased and lost 30.21% compared to the previous month. The price of the Bitcoin has decreased by 23.55% during May. The price of Ethereum has decreased by 31.12%. It should be noted that Ethereum, along with altcoins from the top 20 in terms of capitalization, showed a higher rate of decline compared to Bitcoin.


An increase in the popularity of Bitcoin and Ethereum compared to altcoins was due to the fact that most altcoins are more sensitive to market conditions, so the capitalization of altcoins has been declining faster. That is why the percentage of dominance of the two most popular cryptocurrencies has risen.


The news background was quite positive during the month despite the market drop. Although news from regulators of South Korea, Thailand, Taiwan, Japan, Britain and Portugal had a positive effect, this was not enough to change the market situation. The negative impact on the market could have been made by well-known financiers such as Gary Cohn, Warren Buffett, Nick Colas and Joe Davis about the disappointing prospects for Bitcoin. Another negative factor was the refutation of plans to open a platform for crypto trading by Barclays’ CEO Jes Staley. "51% attacks" conducted in Bitcoin Gold, Verge and Monacoin do not influence the market positively.


Gainers of the May were Storiqa, Primas and Lympo, the prices of their tokens have grown by several times. In the top three losers of the month were such projects as Gifto, Red Pulse and Apex.


The ICO market showed an increase in the amount of funds raised during the ICO by 33.29% compared to April 2018, according to the ICO GLOBAL MARKET STATS. The number of ICOs has also increased by more than 25% compared to the previous month. The greatest interest of the audience was caused by infrastructure projects, as well as projects related to advertising and commerce and financial projects, however, this distribution was also typical for the previous month. $ 927.8M were collected in total, $ 118M of which belong to the leader of the month - the infrastructure project Orbs.



Important news for the reporting period, May 2018


Date

News

The actual situation on the market

Impact on the market

01.05.2018

SBI Launches Japan's First Bank-Backed Crypto Exchange

Market growth

Positive

02.05.2018

ASIC begins initial coin offering crackdown

Market growth

Negative

02.05.2018

Malicious Chrome Extension FacexWorm Spreads Through Facebook Messenger

Market growth

Negative

03.05.2018

Jes Staley denies plans to open a crypto trading platform

Market growth

Negative

03.05.2018

Goldman Sachs announced the launch of the Bitcoin futures trading service

Market growth

Positive

03.05.2018

South Korea Bill Pushes Legalization of New ICOs after 2017 Ban

Market growth

Positive

04.05.2018

Portuguese Parliament to Discuss Cryptocurrency Payment Regulations

Market growth

Positive

05.05.2018

PwC Purchases Stake In Blockchain-Service Provider VeChain, Will Integrate Platform

Market growth

Positive

06.05.2018

Japan's Financial Watchdog Sets Out New Requirements For Crypto Exchanges

Market growth

Negative

07.05.2018

Japan FSA to Introduce 5-Point Criteria for Crypto Exchanges

Market fall

Negative

07.05.2018

The billionaire investor and his longtime manager Charlie Munger, two of the world’s most successful investors, say they’d never invest in cryptocurrencies

Market fall

Negative

07.05.2018

Bill Gates: I would short bitcoin if I could

Market fall

Negative

08.05.2018

US Federal Reserve May Issue Own Cryptocurrency FedCoin

Market fall

Positive

08.05.2018

Norwegian Court Rules Nordea Bank Can Close Account of Crypto Exchange

Market fall

Negative

08.05.2018

Russian association of cryptocurrency and blockchain begins certification of crypto traders

Market fall

Positive

08.05.2018

New Bill in Colorado Encourages State to Adopt Blockchain for Data Security

Market fall

Positive

09.05.2018

Thailand’s National Stock Exchange Launches Blockchain Crowdfunding Platform

Market fall

Positive

09.05.2018

Bloomberg and Galaxy Digital Capital Management Launch Cryptocurrency Benchmark Index

Market fall

Positive

10.05.2018

$2.5 Billion Sent Out of Iran to Purchase Cryptocurrencies

Market fall

Negative

11.05.2018

New Huawei and Honor phones will have a pre-installed Bitcoin wallet

Market fall

Positive

11.05.2018

South Korea’s Largest Crypto Exchange Upbit Under Investigation for Fraud

Market fall

Negative

12.05.2018

IBM, Global Citizen Seek Blockchain Solutions for Humanitarian Aid

Market fall

Positive

14.05.2018

LG launches its own blockсhain service “Monachain” – media

Market fall

Positive

14.05.2018

Thailand: Legal Framework For Cryptocurrencies Comes Into Force

Market fall

Positive

14.05.2018

HSBC says it’s made the world's first trade finance transaction using blockchain

Market fall

Positive

15.05.2018

Taiwan: Taipei Bank Launches First Blockchain Payment System In The Country

Market fall

Positive

15.05.2018


The largest accounting firm in South Korea unveiled the results of the audit of the UPbit crypto-currency holdings, confirming that the exchange did not inflate its balance sheet and did not deceive investors

Market fall

Positive

15.05.2018

IBM to Issue Cryptocurrency Token on Public Stellar Blockchain

Market fall

Positive

16.05.2018

Earn Interest with Cryptocurrency: LedgerX Launches BTC Savings Account

Market fall

Positive

16.05.2018

JPMorgan Co-President Daniel Pinto: Cryptocurrency “Will Play a Role” in Future

Market fall

Positive

17.05.2018

Thailand Inches Closer to Cryptocurrency Taxation

Market fall

Positive

18.05.2018

Indian Supreme Court Upholds Central Bank’s Crypto Dealings Ban Until July Hearing

Market growth

Negative

18.05.2018

Switzerland Seeks a Study of Starting Its Own Cryptocurrency

Market growth

Positive

20.05.2018

Tether Mints $250M of New USDT Tokens, Rekindles Controversy

Market growth

Negative

21.05.2018

LMAX Exchange Group Launches Institutional Cryptocurrency Exchange

Market growth

Positive

21.05.2018

‘Decent Probability’ Bitcoin Price Goes to Zero: Vanguard Economist

Market growth

Negative

22.05.2018

World’s Fourth Largest Bank MUFG To Launch Own Cryptocurrency In 2018

Market fall

Positive

22.05.2018

Boston Stock Exchange Partners tZero to Launch Regulated Security Token Exchange

Market fall

Positive

23.05.2018

US Regulators eye ban on cryptocurrency derivatives

Market fall

Positive

23.05.2018

Russia’s Digital Economy Bill Supported by State Duma Committee in Move Towards Crypto Regulation

Market fall

Positive

24.05.2018

Bank of Ayudhya Tests Blockchain to Send Funds from Thailand to Singapore

Market fall

Positive

24.05.2018

Bitcoin Gold suffers losses of up to $ 18 M after attack of 51%

Market fall

Negative

24.05.2018

Singapore Warns Eight Unauthorized Token Exchanges

Market fall

Negative

25.05.2018

U.S. Launches Criminal Probe into Bitcoin Price Manipulation

Market fall

Negative

26.05.2018

Apple Just Added Ripple (XRP) to iOS Stocks Application, Propy to Accept XRP as well

Market fall

Positive

27.05.2018

World’s Largest Diamond Retailer Joins Blockchain Tracking Solution Pilot

Market fall

Positive

27.05.2018

Norway plans to issue a CBDC token from the Central Bank of the country

Market fall

Positive

28.05.2018

Online disputes about the Rothschilds involvement in the creation of their own cryptocurrency projects

Market fall

Positive

28.05.2018

Philippine banks link up to pilot blockchain for retail payments

Market fall

Positive

29.05.2018

The Bi-Platform team joined the working group of the expert council of PJSC Gazprom

Market fall

Positive

30.05.2018

UK Financial Regulator Launches 24 Cryptocurrency Investigations

Market fall

Negative

31.05.2018

Bittrex Set to Add USD Pairings

Market fall

Positive