The Daily Bit: August 14, 2018

 

 

 

 

Issue #156 | August 14th, 2018
 

THE DAILY BIT

 

 

 

 

 

Tweet Of The Day

There’s a story here …
1-month performance in USD:
> Bitcoin -3%

> Ethereum -41%
> Ripple -37%
> Bcash -29%
> EOS -36%

– @alistairmilne

 

 

BITCOIN (BTC)  |  -4.69%  |  $6,147.57


ETHEREUM (ETH)  |  -16.33%  |  $268.61


RIPPLE (XRP)  |  -13.22%  |  $0.26538


BITCOIN CASH (BCH)  |  -14.15%  |  $501.00


**STELLAR (XLM)  |  -8.44%  |  $0.21818


EOS (EOS)  |  -14.05%  |  $4.43

*As of 9:15am

Ethereum hit 11-month lows…
Litecoin hit 11-month lows… 
Ripple hit 8-month lows… 

The market plummeted another ~$30B, dropping below the $200B threshold.

What’s causing the meltdown? Alex Krüger (@Crypto_Macro) has a thread for that:

“At current prices, top 5 PoW coins (BTC, ETH, ZEC, BCH, LTC) are creating about USD 22 million in coins every day, USD 8 billion a year. BTC represents 56% of that total, while ETH represents 30%. Given current depressed prices, can be assumed ALL are being sold. #mining

Part 2 through 10 is <<here>>.

 

 

 

WORD ON THE STREET

 

 

 

 

MLB Swings @ Collectibles 
Sheesh, did August 13th show up to work? By all definitions, the markets were a bloodbath – thankfully there are sporting events to distract from the carnage. And draft day for the latest attraction was yesterday.

Well… sort of. The “sport” is a blockchain-based card game called MLB Crypto Baseball. It builds upon CryptoKitties, the OG collectibles which led to the first marketplaces for non-fungible (read: unique) digital goods that use blockchain as a backbone.

But times have changed since digital cats
The game’s developer, Lucid Sight, partnered with Major League Baseball to create cards for players. With hordes of fans already drawn to physical cards, digital collectibles offer professional sports organizations an innovative way to engage with their fans. 

The starting lineup

  • 500 digital players per team
  • 30 professional teams
  • *does math*… 15,000 total cards

Picture this: Aaron Judge steps up, cocks his bat, and hits a SLUG out to left field. The two-seam fastball was a bad choice. Home run.

At least two groups win here. (1) The Bombers notch on a run, and (2) digital Aaron Judge’s owner receives a special giveaway. And if the Yanks pull off a W, giveaways are in the cards for owners of digital Yankee’s as well.

There’s a problem… dApps tend to splutter out.
While we think digital collectibles will become a hot commodity, scarcity alone doesn’t cut it. You need a market of folks who are willing to buy buy buy.

Take ‘Magic: The Gathering’. The mythical card game had a whopping 20 million players back in 2015 – more than 1,900 times the daily dApp frequenters. So in the hands of a free market, it’s easier to capture value over the long term. Then it’s simply a matter of identifying what makes trading cards valuable.

Fortunately, Jeff @ Axie Infinity did the field work. By his count, the plugs that make MTG cards valuable look to be the same as digital collectibles:

  • Scarcity
  • Utility
  • Aesthetics

So was it reasonable that the “Alpha Black Lotus” was valued at $15k a pop? Well… yeah. It was (1) scarce (1,100 total); (2) had utility (the card was banned from tournament, for pete’s sake), and (3) was a looker.

MLB Crypto Cards don’t feel as “tout naturel”
That’s French for “all natural”, but it’s neither here nor there – we just can’t shake the feeling that the pricing of MLB cards comes off as too artificial:

  • 30 cards released per hour
  • Cards priced @ $20 each
  • If a batch sells out in the hour, prices rise by 35%

Not to mention that MLB playoffs are conveniently weeks away. Call us haters, but until digital collectibles gain more traction, we question their ability to capture and store value over the LT as well as their physical counterparts.

But regardless… the idea is a cool test run, and other sports are sure to follow. We’re calling dibs on the Jamal Adams/Sam Darnold collectibles when NFL rolls out their version.

 

 

 

OTHER NEWS

 

 

 

 

(1) Taking Tesla private is one way that Saudi Arabia can diversify away from oil. Investing in digital currencies is another potential pipeline, but regulators warned citizens to steer clear due to their release of negative emissions.

If inhaled, side effects may include: signing of fictitious contracts; high regulatory, security, and market risks; the transfer of funds to unknown recipients/entities/parties.

(2) Coinbase Index Fund annual management fees were slashed by 50% “to attract investors who are familiar with lower-fee index funds in other asset classes”.

What that suggests: (1) institutional money isn’t flooding the market, (2) short-term sentiment (< 12 months) is in the gutters, and (3) fee-based services could be racing to zero to remain competitive.

Don’t forget that institutions have all the time in the world. Now that Coinbase effectively caved, we’re wondering if funds will try to push fees lower than 1% before onboarding.

(3) John McAfee got himself a brand new gig… as the CEO of Luxcore. Per the Luxcore blog“McAfee will leverage both his extensive business acumen and considerable social profile to drive real and sustainable growth in the Luxcore project.”

With a market cap slightly north of $5 million, Luxcore keeps a low profile – an optimal candidate for McAfee’s notorious “promotional” skills. Let’s just hope that future tweets advocating the use of LuxCoin (LUX) aren’t priced at $105,000 a pop.

(4) South Korea is putting $4.4 billion towards a spending plan to accelerate the spread of promising technologies… like blockchain. Expect more ideas, more jobs, and more educational programs through 2022 and beyond.

Brain Fuel

  • 2 min read: Top-Down Demand (Jill Carlson)
  • 7 min read: The Business Model of Crypto-Wallets (Ouriel Ohayon)
  • 8 min read: An Overview of Government Backed Cryptocurrencies and How They Will Change the Blockchain Landscape (Genson C. Glier)
  • 9 min read: What’s eating crypto? A tale of Bitmex, sh*tcoins and opaque valuation (Jonathan Cheesman)


 
 

 

 

 

 

 

THAT’S ALL FOR TODAY!

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