Your Ultimate Guide
to The Bear Land!
On January 1 2018, total capitalization of top-10 cryptocurrencies made up for $501 billion, and that number was growing rapidly — by the end of next week, it rose to $823 billion. Current situation is much less favourable, as top-10 total cap in December adds up to around 100$ billion.
There has been a lot of power struggle among top 10 cryptocurrencies, too: most notably, XRP knocked ETH out of the second spot by the end of the year. Moreover, Bitcoin Cash split into two assets and they both cluster in the top-10 now, while Tether, EOS and Tron squeezed out IOTA, Nem and Dash.
4 new assets entered Top-10 in 2018
Total capitalization of Top-10 assets decreased by 4,3 times
Top-10’s market share increased by 4%
Tether remains the only stablecoin in Top-100, moving from the 29th to 5th place
40% of Top-100 has been substituted with new assets
DEXes account only for about 0,04% of total trading 24h volume (...)
Curiously, DEX platforms built on EOS are steadily surpassing the ETH-based ones. It seems like it’s time to watch them closer.
#1 Tether (USDT) — ...
...by market cap
2ndby trade volume
#2 USD Coin (USDC, by Circle and Coinbase) — ...
#3 TrueUSD (TrustToken, TUSD) — ...
#4 Paxos Standard Token (PAX) — ...
#5 Dai (DAI, by MakerDAO) — ...
Tether trade volume has fallen from 98% to 70% of all stablecoins share throughout 2018
Total funds raised$8.27B
Number of ICOs1,180
Despite the ICO downtrend, total funds raised in 2018 significantly outweigh last year’s results. That is explained by the three abnormally large offerings of this year: Telegram, EOS, and TaTaTu.
An ICO is considered successful if the following conditions are met:
An ICO is considered a failure if at least one of these conditions are met:
If the soft cap, target, and hard cap are not stated, our experts will analyze the project and make sure the funds raised are sufficient to implement the business idea. Thus, if a company has collected the necessary funds to implement its roadmap, we deem it a success. If not, it is considered unsuccessful.
These terms are the key metrics in our reports:
41STOs in 2018 announced
5 STOs in 2018 closed
6 Still ongoing
The rest are unsuccessful or have not disclosed information
$262.2MTotal Funds Raised
At least 11 STOs postponed to 2019 among announced in Q3-Q4 2018
We have completed our analysis of the current state of the security token space and are happy to present our findings all packed within an interactive scheme, showcasing the major players and offering a corresponding timeline and activity-status filters.
Throughout the year, we monitored legal reviews and news regarding best jurisdictions for holding ICOs or, more lately, STOs. It seems like at this point everyone and their mom know about pros and cons of doing crypto business in Malta, Estonia or various states of the US. Hence, this time around we decided to focus on newer countries for compliant token sales and fundraising — so that you know where you might head to in 2019.
Free legal evaluation for your token offering
Catching up with other Baltic states like Estonia and Latvia, Lithuania is longing to become a major fintech jurisdiction — the country’s Ministry of Finance is in the process of establishing the legal basis for security token issuance. Moreover, it is also possible to contact local authorities and request a free evaluation of whether your token offering is binded by security regulation.
19% single tax rate for crypto-to-fiat operations
In 2019, Poland will roll out its crypto regulation framework. First, there will be a 19% single tax rate for individuals and legal entities dealing with crypto — however, they won’t have to pay it as long as fiat money is not involved. Additional tax 4% will be levied on crypto incomes exceeding 1 mln. Polish zloty (approx. USD 250k). Moreover, individuals will be obliged to mention their crypto operations in annual tax declarations.
Investor-oriented legal framework, ‘Fintech Bay’
Bahrain’s central bank has issued draft regulations on digital assets. They primarily focus on investor interests, technology standards, and cybersecurity risk management.
Moreover, Bahrain plans to establish the so-called ‘Fintech Bay’, a home to more than 30 companies who work with the blockchain technology, cryptocurrencies, and digital payments.
Additionally, Bahrain’s Institute of Banking and Finance has launched its own “Blockchain Academy.” The institute will provide courses in three areas of blockchain: development, implementation and strategy.
Incoming regulation for both digital assets and ICOs
Recently, Malaysia’s finance regulator and central bank issued a joint statement in which they confirmed they were finally “putting in place” legislation for digital assets and ICOs. The new legal framework will reportedly be introduced in Q1 2019. It seems like the country is taking the matter into their hands at last: Malaysia's finance minister Lim Guan Eng recently stated that anyone wishing to issue a new asset could only do so only with regulators’ blessing.
Licenses for crypto businesses
In August, the Dutch central bank executive stated that cryptocurrencies aren’t “real money,” but the regulator has no plans to ban them. Fast-forward few months, and the watchdog is preparing its regulatory framework that would require crypto-related businesses to obtain special licenses. The reasons behind the regulator’s move are usual: fighting money laundering and financing of terrorism.
To qualify for such license, providers will need to follow Know-Your-Customer (KYC) procedures and report unusual transactions. All of this data will be monitored by the Dutch central bank.
Interestingly, Security token issuance performed under supervision of the Dutch Finance Authority (AFM) will automatically be compliant with regulations of other European Union countries like Germany, France, Denmark, Sweden, etc.
This report has been brought to you by Algalon Capital — a digital asset management service and data intelligence platform. We build algorithmic models for any trend direction and length.
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