Coinmarketbook Gauges Cryptocurrencies by Buy Support Rather Than Market Cap

A lot of cryptocurrency enthusiasts and market observers reference websites that measure the digital asset economy by market capitalization. Now there’s a new data website, Coinmarketbook.cc, that calculates a cryptocurrency’s buy support based on order books held on various exchanges.

Also read: US Law Enforcement Wants Surveillance Tools for Privacy Coins  

‘Market Cap is a Lie’

There are many analytical websites that record the data of the largest digital assets by value and most of them focus on the total market valuation of each currency. Sites like Satoshi Pulse refer to the total U.S. dollar value of the number of coins that are in circulation. For instance, the price of bitcoin cash (BCH) is about $140 per 1 BCH, with a circulating supply of over 17 million coins, giving the currency a market valuation of around $2.46 billion. That places bitcoin cash markets in the fifth position among 2000+ digital assets within the crypto-economy. But Coinmarketbook measures the value of digital assets in an entirely different way, because it instead focuses on buy support for cryptocurrencies and determines the value of each coin in this manner.

“Market cap is a lie and buy support tells the true story,” Coinmarketbook explains on its front page. “Buy support ratings separate investments from gambles and buy support analytics determine if the current price will hold.”

Coinmarketbook Gauges Cryptocurrencies by Buy Support Rather Than Market Cap
These are the top seven cryptocurrencies according to Coinmarketbook.

Coinmarketbook is quite different than data sites that show market caps. At the time of publication, bitcoin core (BTC) was still No. 1 on Coinmarketbook’s list, as it had a buy support rating of around 100 percent. Things get drastically different from standard market-cap sites from there, as BTC is followed by ether with 21.68 percent buy support, eos at 8.73 percent and ripple at 8.65 percent, with litecoin rounding out the top five at 3.78 percent.

The statistics also show how buy support is gauged by the number of markets a coin is listed on. For example, BTC is listed on 25 markets, but other coins have upward of 35 market listings.

Market Data Variance

Coinmarketbook lists a lot of markets, but it doesn’t quite match the amount of exchange data used on sites like Coinmarketcap.com and Satoshi Pulse. For example, Coinmarketbook lists a total of 16 markets, including exchanges such as Bitmex, Bithumb, Huobi and Bittrex. However, the site is missing information from the top BCH exchanges by volume today, which include Binance ($12.4 million), Coinbase ($4.1 million), Hitbtc ($4 million), Kraken ($3.5 million) and Poloniex ($1.4 million). This is clear to see on Coinmarketbook’s website. However, the creator of the site recently said on Twitter that more exchange data is on the way.

Coinmarketbook Gauges Cryptocurrencies by Buy Support Rather Than Market Cap
Coinmarketbook lists buy support for bitcoin cash, but the site is missing a lot of exchanges that trade BCH.

Coinmarketbook is following the lead of a handful of other analysis sites that rank cryptocurrencies according to different criteria, such as fair market value and “honest” global trade volumes. Coinfairvalue.com, for example, is a platform that evaluates fair market value rather than focusing on speculation.

The creator of the Honest Coinmarketcap spreadsheet, meanwhile, believes that global cryptocurrency trade volumes are often blown out of proportion. Trade volume figures for specific coins such as BTC and ETH are exaggerated by as much as 80 percent, while volumes of digital assets like BCH and XRP are off by 43 to 70 percent, he claims.

Deceptive Order Books

Given that it is missing data from a number of exchanges, Coinmarketbook should probably add more analytics to become more accurate. Cryptocurrency enthusiasts should also take assessments based purely on buy support and order books with a grain of salt. Order books can be misleading, as not all of the buy and sell orders on exchanges are real.

Coinmarketbook Gauges Cryptocurrencies by Buy Support Rather Than Market Cap
Bitstamp’s BCH/USD order book on Dec. 5, 2018, at 11:00 a.m. EST. Order books are good to observe, but traders should remember that some orders are mere bluffs that won’t be executed.

Many order books on trading platforms have plenty of orders, but good traders know that some of them are bluffs. An individual may place an order to buy or sell an asset, but that doesn’t mean he or she will execute the deal when the time comes. Some traders use phony orders to make the market move or trend in certain ways, which is why assessing a coin by this kind of so-called support can be misleading. Traders do use order book depth charts for some clues down the road, but depending on them entirely to make trades can be very risky.

What do you think about Coinmarketbook.cc and how it evaluates coins by order book buy support? Let us know in the comments section below.  


Images via Shutterstock, Coinmarketbook.cc, and Bitstamp.


Need to calculate your bitcoin holdings? Check our tools section.

ConsenSys to Embrace Startup Roots to Be ‘Lean and Gritty’ Amid Ethereum Downturn

/latest/2018/12/consensys-to-embrace-startup-roots-to-be-lean-and-gritty-ethereum/

ConsenSys to Embrace Startup Roots to Be ‘Lean and Gritty’ Amid Ethereum Downturn

The Ethereum-focused blockchain development company ConsenSys is revamping its organizational structure and business criteria, its founder Joseph Lubin said in a surprise Friday night mass email last week, according to exclusive reporting from Breakermag which is owned by a Lubin-co-founded company.

ConsenSys, based in New York City but employing over 1,100 people in 29 countries, seems to be suffering from lack of funds just as many other projects in the industry – no doubt a consequence of the 2018 bear market that continues to make new lows on an almost weekly basis. Ethereum (ETH) is down well over 90% since all-time-highs of $1,400-ish.

We’re going to get a lot more rigorous in terms of milestones and timetables.

ConsenSys is trying to make up for the presumed shortfalls by attracting new investment from venture capital funds, according to Breakermag. Framed in this context, a change in strategy is perhaps appropriate.

A New-ish Consensys

CryptoGlobe recently reported on Lubin’s exuberant comments at Devcon4 describing a flat organization, in which “Consensys members self-organize – nobody tells anyone what to do,” creating a need for “new ways of taking responsibility and assuring accountability.”

Breakermag says that these sorts of philosophies will not go away. However, the new policies in Lubin’s letter are clearly, at least in some measure, a departure from previous management attitudes. He told the news outlet that “We’re going to get a lot more rigorous in terms of milestones and timetables […] dissolving projects if we’ve come to the conclusion that our earlier assumptions were incorrect.” Notably, layoffs are not out of the question according to Breakermag.

Projects operating under ConsenSys’ umbrella will be judged on three new criteria going forward. These are: a project’s creation of “social good,” a so far undefined criterion; benefit to the Ethereum ecosystem; and, perhaps tellingly, return on investment.

In addition, Lubin described five “pillars” which will make up the company’s philosophy. These are a “culture of excellence and accountability”; the continuing development of Ethereum core software; continued funding of dApp development from ConsenSys funds; a renewed emphasis on selling blockchain services to companies; and public outreach and education about blockchain.

Lubin hopes that these measures will help his venture “retain, and in some cases regain, the lean and gritty startup mindset that made us who we are.”

There should be little surprise that ConsenSys is hurting. For an ecosystem that is still valued in the billions even after 2018’s eye-watering losses, the most used dApps on its platform besides exchanges – are still only in the hundreds of daily users. The Ethermon dApp game, inspired by Pokemon, is the most used at time of writing but has fewer than 400 daily users.

CryptoGlobe research reported on the worryingly low daily active users of dApps in August 2018. Since then numbers have not improved, however, valueations of most dApps have dropped in line with the declining Ethereum price.

Ethereum price over 1 year

Indian State to Boost Local Blockchain Ecosystem With Mentorships, Events

The Indian state government of Andhra Pradesh wants to build a community of blockchain startups in the region.

The Andhra Pradesh Innovation Society (APIS) announced it was partnering with the Eleven01 Foundation to develop a blockchain talent pool and support startups building with the nascent technology, the two announced Wednesday. Eleven01 is a local provider of native blockchain protocols.

APIS is tasked with developing “an exceptional technology startup ecosystem,” according to a press release. As such, the partnership is aimed at using events, activities and mentorship programs to “nurture talent and develop a community” of startups within the state.

In a statement, J.A. Chowdary, IT advisor and special chief secretary to the chief minister of Andhra Pradesh, said “we truly appreciate what the Eleven01 team is trying to do and we are happy to associate with them to bring advanced development and innovations with regard to the blockchain realm in the state.”

Eleven01 Foundation’s president & chief product officer, Ramachandran Iyer, echoed Chowdary’s comments, saying:

“We visualize India to be a blockchain-hub and the support from the state here brings us a step closer to achieving that. Together, we will contribute towards the development of the best blockchain-ready talent pool and innovations in the state.”

Eleven01’s blockchain protocol was built in association with Indian IT services giant Tech Mahindra. The platform was announced back in August, and aimed at strengthening the blockchain ecosystem in the country.

Wednesday’s move is just the latest blockchain-focused effort by the government of Andhra Pradesh. Earlier this year, the state signed a Memorandum of Understanding with Covalent Fund to start a blockchain ecosystem, as well as launch a blockchain university with a $10 million initial investment.

In October last year, the state was also working with startup ChromaWay on a land registry pilot that uses blockchain to track the ownership of property.

Andhra Pradesh image via Shutterstock 

Bitfinex, Ethfinex Add Four More USD-Backed Stablecoins

Cryptocurrency exchange Bitfinex and its spin-off Ethfinex have added support for four new major USD-backed stablecoins, according to an blog post published Dec. 4.

Per the announcement, both exchanges have introduced stablecoins USDC, True USD (TUSD), Paxos (PAX) and the Gemini dollar (GUSD) in a bid to keep the platforms “agnostic.” The four new stablecoins join the already supported Ethereum-backed coin DAI and the industry stalwart, Tether (USDT), all to be traded against USD.

Explaining the move as an effort to provide an “unbiased meeting place” for crypto traders, the exchanges note that deposits and withdrawals for the newly added stablecoins are limited to verified traders within their platforms, while trading verification status does not affect trading.

The move follows the introduction of direct USDT-fiat trading in late November, through the addition of USDT/USD and EURT/EUR trading pairs on the Bitfinex platform. That update was made in conjunction with the launch of direct 1:1 redemptions of USDT to fiat on Tether’s platform.

The move from Bitfinex and Ethfinex places them into the ranks of major digital currency exchanges actively listing stablecoins on their platforms. Last month, major crypto exchange Binance announced it would list Circle’s USD-pegged stablecoin USDC, subsequently renaming its USDT Market into a combined Stablecoin Market (USDⓈ).

In October, top crypto exchanges OKEx and Huobi both added four USD-backed stablecoins at once.

‘Market Cap is a Lie’ – Bitcoin Buy Support Dwarfs Ethereum, Altcoins

Bitcoin king News

‘Market Cap is a Lie’ – Bitcoin Buy Support Dwarfs Ethereum, Altcoins


Bitcoin buy support is a superior metric to coin market capitalization for measuring the future of Bitcoin and altcoins, according to a new monitoring resource.


‘Market Cap Is A Lie’

CoinMarketBook, deliberately named to shadow the current ‘go-to’ directory for cryptocurrency statistics Coinmarketcap, launched in October – but its mission is markedly different.

“Market cap is a lie. Buy support tells the true story,” developers claim on its main page.

Buy support rating separates investments from gambles.

As the landscape among major cryptocurrencies continues to change dramatically within short timeframes, an increasing number of industry pundits have complained that market cap alone paints an unreliable picture of a coin’s true ‘value.’

As Bitcoinist reported, many have issued calls to disregard the metric altogether and focus instead on fundamental technical indicators.

Bitcoin Buy Support Leaves Altcoins In The Dust

For CoinMarketBook’s creators, that narrative is no different, even as Bitcoin leads practically every cryptocurrency into lows not seen in more than a year.

Focusing on buy support, which they explain as being the “sum of buy orders at 10% distance from highest bid price,” the resource ranks assets in a similar format to Coinmarketcap.

The positions in those rankings, however, conspicuously departs from its illustrious predecessor.

Bitcoin, at number one, maintains a ‘buy support rating’ – the “amount of buy support relative to BTC (compares any coin buy support to BTC buy support)” – of 100 percent.

Second is Ethereum, which has a rating of 19.3 percent, while Ripple also makes the top three, scoring 8.4 percent.

The method provides a stark contrast between Bitcoin and all others, with forks such as Bitcoin Cash scoring a fraction of the former’s rating at less than 1 percent.

The data stands out even compared to similar rating systems such as that employed by trading platform and research entity BitMEX, which gives Bitcoin a 54 percent result.

Fans have already come out in support of the concept, however, with Twitter user Mr. Hodl calling on followers to migrate to CoinMarketBook and abandon Coinmarketcap altogether.

What do you think about CoinMarketBook? Let us know in the comments below!


Images courtesy of Shutterstock, coinmaretbook.cc

Kava Introduces an Interledger Payment Rail to Complement Cosmos Network

Based on a Medium post from December 3, 2018, Kava Labs has recently partnered with Cosmos to deploy its inter-ledger solution payment streaming to Cosmos Zones. Kava labs inc. is a San Francisco-based venture-backed company working on payments innovations using blockchain technologies.

The Cosmos Network

Cosmos is a project built on Tendermint that incorporates the key developments to achieve cross-chain interoperability. The Cosmos PoS blockchain was designed with cross chain interoperability in mind and is capable of supporting different token assets. The Cosmos Networks is ruled by a network of “Zones” and “Hubs” to which the first ever hub will be the Cosmos blockchain and overtime, additional hubs will join in.

Cosmos is trying to establish a blockchain standard for communication capable of enabling easy and secure transactions between multiple chains. The architecture model presented by Cosmos consists of several autonomous blockchains (Zones) that are connected to the main blockchain (Hub).

Launching a Zone is pretty much like launching an ERC20 token on Ethereum. Zones can also function as the link between Cosmos and other blockchains such as Ethereum or EOS. Zones will be the primary vehicle in which other blockchains will interact with the central Cosmos Hub.

The Interledger Protocol (ILP)

Cosmos has also begun research into an Interledger Protocol (ILP) as a potential solution for interoperable payments and value transfer across different blockchains.

Other projects already presented solutions for interoperability and liquidity similar to ILP in different contexts. For instance, Ripple and the Bill & Melinda Gates Foundation were organizations that used the protocol in private networks. The biggest challenge for Kava and ILP, however, was to develop a public blockchain that was both commercially viable and scalable.

Kava was able to resolve the problem by implementing an ILP capable of linking to public blockchains like BTC and ETH. Kava also developed Interledger solutions that enable interoperability and liquidity between blockchains, wallets, and exchanges.

The partnership with Kava will give Cosmos projects the ability to have an open connection with a marketplace of services and users over Interledger. The goal is to turn this into a simple plug-in process for any project built on Cosmos.

By using Kava’s Interledger solutions, Cosmos will get one step closer to establishing an ecosystem and connect the broader blockchain community. Scott Stuart, the Kava CEO, commented:

“Kava has admired Tendermint for a long time and believes in the importance of building a blockchain framework for mass adoption. We are thrilled to help Cosmos extend its reach to new markets, providing the ecosystem with access to new users, liquidity, and services.” 

Cosmos sees Kava as key fulfill its plans of becoming the “Internet of Blockchain’s” and its vision of building a new token economy for the future.

Singapore Residents Targeted in Crypto Scams, $78,000 Lost Between September and November

Members of the Singapore public have been targeted by the online advertisements of scammers posing as crypto brokerage services. The victims have been duped out of around $78,000 between September and November of 2018.

Familiar Scam Plagues Singapore Residents

According to a report in domestic news source The Straits Times, Singapore authorities have been made aware of several cases of fraud in relation to a cryptocurrency investment scheme. The scam is stated to have earned its perpetrators around $78,000 between the months of September and November of this year alone.

The platform, which goes unnamed in the report, is advertised online using numerous paid online advertisements posing as articles. They often feature celebrities from Singapore who are wholeheartedly endorsing the service and how lucrative it is. Of course, such scams have been tried before and are reminiscent of those using fake testimonials from the stars of Dragons’ Den and similar formats broadcast in other nations.

The articles direct visitors to other sites through links posted. These pages then encourage those following the hyperlinks to request a call back if they are interested in investing in Bitcoin. They also portray investments in Bitcoin as being incredibly secure, virtually risk free, and essentially a guarantee of future riches.

In a statement mentioned by the news report, the Singapore authorities said that the scheme was being operated from outside of the country and that it was entirely unregulated by its financial regulator, the Monetary Authority of Singapore (MAS).

This exposes investors to even greater risk of being swindled by such scams since they are being operated from outside of the regulator’s legal jurisdiction and legal recourse will be very difficult to initiate.

Individuals with any further information on this or any other similar scam are being encouraged to contact the Singapore authorities on a police hotline (1800-255-0000), or at www.police.gov.sg/iwitness.

Related Reading: Move over Twitter: Crypto Scams Have Infiltrated Facebook

Scammers Prey on Nation’s Embrace of Blockchain and Crypto

Whether the suspicions of the Singapore authorities that the scam is being run from outside the nation is true or not is unclear. However, one thing is certain, the fraudsters, if domestic or otherwise, have picked Singapore for its ever-growing interest in digital assets.

As a nation, Singapore has been keen to explore the implications of cryptocurrency and its underlying technology, blockchain. Earlier this year, NewsBTC reported on plans to create a multi-storey centre devoted to the fintech innovation, as well as regulators helping to incubate blockchain startups.

More recently, Asia’s monetary elites were privy to an extended conference devoted to blockchain and cryptocurrencies. Forbes’s Asia wing sponsored the “Decrypting Blockchain for Business” event, which was held earlier this week.

It saw the likes of Changpeng Zhao of Binance and Tommy Lee of BTCC, amongst many other industry experts presenting on the opportunities, risks, and developments associated with the ever-expanding industry.

Featured image from Shutterstock.

Chile: Crypto Exchange Loses Ongoing Legal Battle in Supreme Court Ruling

The Chilean Supreme Court has ruled against crypto exchange Orionx, allowing a state-owned bank to close its account, local news outlet Emol reported Dec. 4.

The third chamber of the high court has revoked the decision taken in July that had guaranteed protection to Orionx and forced local state-owned bank Banco del Estado to reopen its account. The new judgement cited by Emol states that the bank acted correctly and did not violate any rules of the Chilean constitution.

In the decision, the judge also claimed that cryptocurrencies “have no physical manifestation and no intrinsic value.” The document states that they are controlled neither by government nor by a corporation, citing the characteristics as reasons for letting banks refuse services to the exchange. The court decision explains that the nature of cryptocurrencies prevents banks from receiving detailed information on transactions, customers and companies that interact with the assets.

In addition to that, the supreme court raised the question of the illicit use of cryptocurrencies, claiming that crypto was involved in money laundering and terrorism financing. Given all these considerations, the bank’s closure of Orionx’s accounts was found legal.

It was not immediately clear if the court’s decision is applicable to other two crypto exchanges that have filed complaints this year regarding similar closures.  

The litigation started in mid-April 2018, when local crypto exchanges BUDA, Orionx, and CryptoMarket (CryptoMKT) applied to an appeals court to confront two banks, private Itau Corpbanca and state-owned Banco del Estado, that had shut down their platforms’ accounts. BUDA’s co-founder and CEO Guillermo Torrealba claimed at the time that the banks’ decision to close accounts was “killing the entire industry.”

In April and in July, the Antimonopoly Court and the Court of Appeals consecutively ordered Itau Corpbanca and Banco del Estado to reopen the accounts of Buda and Orionx.

In May, the president of the Central Bank of Chile Mario Marcel announced the institution was considering elaborating a regulatory framework for cryptocurrencies, in order to manage the risks associated with crypto trading. In October, Chilean MPs introduced a resolution on blockchain adoption that did not focus on cryptocurrencies.

G-20 Summit Results: Crypto Is Important for Global Economy, Needs to Be Regulated and Taxed

Members of the Group of 20 (G-20), an international forum for the governments and central banks of countries with developed and developing economies, addressed cryptocurrencies in their recent declaration on sustainable development of the global economy.

Declaration summary: Crypto is important, but it needs to be put under scrutiny and tax regulations

On Dec. 1, the G-20 declaration titled “Building Consensus for Fair and Sustainable Development” was published on the official website of the Council of the European Union and the European Council. The document summarized the 13th gathering of G-20 nations that took place on Nov. 30 and Dec. 1 in Buenos Aires, Argentina.

The declaration addressed crypto regulation, albeit briefly: Cryptocurrencies are mentioned just once there, in the broader context of an “open and resilient financial system” that “is crucial to support sustainable growth.”

While recognizing the importance of the cryptocurrency industry for the global economy, the G-20 also noted that it will introduce Anti-Money Laundering (AML) and anti-terrorist measures per standards of Financial Action Task Force (FATF), an intergovernmental body formed to fight money laundering and terrorist financing:

“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”

Further, in the same segment of the declaration, G-20 participants expressed a positive stance on non-bank financial institutions, pointing out the potential advantages of technology in the financial sector, given that the tech innovators are managing associated risks:

“We look forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated.”

There is more crypto-related news coming from the international summit, however. On Dec. 2, Japanese news outlet Jiji reported that the G-20 countries have also called for the international taxation of cryptocurrency. According to the publication, the final text of a document cooperatively prepared by G-20 leaders outlines “a taxation system for cross-border electronic payment services.”

The article specifies that — under current laws — foreign companies that do “not have a factory or other base in Japan” cannot be taxed by the local government, while the G-20 leaders seek to “build a taxation system for cross-border electronic services.”

The Japanese news outlet also mentioned an estimated deadline for the system, saying that the final version of regulations, after considering proposals from each member state, is expected to be introduced by 2020. The issue will reportedly be discussed next year, when Japan will become the host of the summit and Japanese Prime Minister Shinzō Abe will take the position of G-20’s president.

Previous G-20 commentary on crypto

G-20 officials have previously maintained a ‘hands-off’ approach on crypto. In March 2018, after a call from France’s finance minister, Bruno Le Maire, the G-20 participants concluded the first public debate on virtual currencies.

The meeting resulted with a “firm” July deadline that had been put forward for “very specific recommendations” on how to regulate cryptocurrencies globally, despite the Financial Stability Board (FSB) — the group which coordinates financial regulation for the G-20 economies — resisting calls from some G-20 members to discuss regulating cryptocurrencies at the conference.

Moreover, many of the G-20 participants decided that cryptocurrencies needed to be examined further before making a concrete regulatory move, albeit some countries including Brazil stated that they won’t be following the G-20 recommendations.

Nevertheless, the G-20 members agreed that the FATF would have its standards applied to the cryptocurrency markets in the respective countries, a position they recently reiterated in Buenos Aires:

“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”

In July, a summary of provisional decisions made by the dedicated Finance Ministers & Central Bank Governors said that “technological innovations, including those underlying cryptoassets [sic], can deliver significant benefits to the financial system and the broader economy.” Nevertheless, the document also listed various related problems, including tax evasion and AML concerns:

“Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”

Still, the actual recommendations for how to approach the cryptocurrency sphere at the international level were not presented, and the deadline was pushed to October 2018:

“[W]e ask the FATF to clarify in October 2018 how its standards apply to crypto-assets,” the summary read. It is unclear if those recommendations have been presented to date, as there has been no information from the G-20 regarding that issue.

On Oct. 22, as the G-20 remained silent, Jeremy Allaire, the CEO of the Goldman Sachs-backed crypto investment app Circle, stated that crypto-related regulatory matters have to be addressed “at the G20 level.” Prior to that, on Oct. 19, the FATF said that by June 2019, jurisdictions will be obliged to license or regulate cryptocurrency exchanges and some firms providing encrypted wallets internationally as part of AML and anti-terrorism procedures.  

More international action

In separate news regarding international adoption and regulation of crypto technology, on Dec. 4, seven southern EU countries — including France, Italy, Spain and Malta — formed an alliance called the “Mediterranean seven” with the aim to promote the use of Distributed Ledger Technology (DLT) among governments, as per Financial Times. The EU, as well as Italy and France, are members of the G-20 alliance.

More specifically, the EU countries have reportedly signed a declaration stating that areas like “education, transport, mobility, shipping, land registry, customs, company registry, and healthcare” can be “transformed” and boosted with the use of DLT.

“This can result not only in the enhancement of e-government services but also increased transparency and reduced administrative burdens, better customs collection and better access to public information,” the declaration reportedly states.