Ripple Continues to Rebound, While Most Major Cryptocurrencies See Mild Wave of Red

Saturday, Nov. 17: crypto markets have seen another mild decline, with losses across the top 20 coins by market cap reaching 4 percent over the past 24 hours.

In contrast, Ripple (XRP), which is still holding strong as the second coin by market cap, continues to see sufficient gains as of press time, according to data from Coin360.

COIN360

Market visualization from Coin360

After seeing a small rebound yesterday, the largest cryptocurrency Bitcoin (BTC) is very slightly down over the past 24 hours. As of press time, Bitcoin is down less than 1 percent on the day and trading at $5,560. The major cryptocurrency has seen some volatility during the day, with its price declining to as low as $5,490, while its intraday high reached $,5,616.

According to Bloomberg’s research arm Bloomberg Intelligence, the cryptocurrency market “drama” is “just starting,” with analysts predicting that Bitcoin’s price would take a further dip to as low as $1,500. Such a decline would mean a 70 percent drop from current market levels, while Bitcoin has already lost more than 60 percent of its value over the year.

BTC

Bitcoin 7-day price chart. Source: Cointelegraph’s Bitcoin Price Index

Ripple, which overtook Ethereum (ETH) in terms of market share on Thursday, Nov. 15, continues to hold its place as the top altcoin, with a market cap of $19.9 billion, while Ethereum’s market cap amounts to about $18 billion as of press time.

Ripple is also the leader in terms of daily performance, with its price up almost 6 percent to trade around $0.49 at press time. The coin is, however, still well below its price point of $0.52 before the market dip Nov. 14.

XRPRipple 7-day price chart. Source: CoinMarketCap

Ethereum has been hovering above the $170 price point over the day, down just slightly over the past 24 hours and trading at $173 by press time.

Total market capitalization of all cryptocurrencies is slightly on the rise, recovering from Wednesday’s drop and hovering around $183 billion. Daily trade volume has continued to drop, currently amounting to $13.5 billion after reaching $25 billion on Nov. 15.

total

Total market capitalization chart. Source: CoinMarketCap

Recently, CoinShares CSO Meltem Demirors argued that one of the reasons the market has been seeing volatility this week was that institutions are “taking money off the table” in anticipation of Bitcoin Cash’s  (BCH) recent hard fork. Other industry experts agreed that the fork is causing uncertainty in the markets.

The Bitcoin Cash hard fork took place on Nov. 15, the day after crypto markets have suffered a notable decline. The update of the BCH network has caused multiple suspensions of Bitcoin Cash trading and withdrawals across global exchanges.

The protocol upgrade has divided Bitcoin Cash supporters into two groups who disagree about how the network should be updated – Bitcoin ABC and Bitcoin SV. According to BCH community-backed statistics website Coin.Dance, Bitcoin ABC is currently slightly ahead of SV in terms of hashrate and proof of work by press time.

Bitcoin Cash is seeing some of the largest losses across top 20 coins at press time, down 4.29 percent, and trading around $385 at press time, according to CoinMarketCap.

In a note to clients yesterday, Nov. 16, Wall Street analyst and cryptocurrency bull Tom Lee cut his end-year Bitcoin price target nearly in half, lowering it from $25,000 to $15,000.

HODL: World’s First Crypto ETF Goes Live Next Week

The crypto community will finally welcome the first Exchange Traded Product (ETP) to be listed on a traditional stock exchange early next week, and it is happening in Switzerland.

The landmark derivative was designed by a crypto startup, Amun AG, and will start trading on Six Swiss Exchange, Europe’s Fourth largest Stock Exchange with a market cap of over $1.6 trillion.

Speaking in a report about the new product which was recently approved by Swiss regulators, Amun CEO, Hany Rashwan expressed confidence that the new ETF will open the door to mainstream crypto involvement.

He said that the product would be a good fit for institutional investors who shy away from crypto because of its volatile nature and lack of regulation. Also, retail investors who up to this point have not traded cryptocurrencies because of “local regulatory impediments.”

Inside the Crypto Exchange Traded Fund offered by Amun

The new offering by the startup is scheduled to trade under the ticker “HODL” and will track the largest cryptocurrencies by a market cap which include Bitcoin (BTC), Ethereum (ETH), Ripple XRP, BCH (ABC), and Litecoin (LTC).

The ETF is designed to automatically allocate client investments into the best performing cryptocurrencies in other to guarantee profitability over the period that they buy in.

HODL ETF’s components. Source: ft.com

At the time of writing this report, the fund consists of nearly 50% of Bitcoin and 30% of XRP, which is arguably the best performing crypto this year. There are smaller chunks of 20%+ split among the other altcoins.

CEO Hang Rashwan believes that starting with an index basket that allows traders get exposed to various cryptos is the right way to start and also hope that more trackers will be added for each crypto in the future.

Not in the United States

While some members of the industry have kept a close eye on when the U.S SEC will approve a Bitcoin ETF, it is unsurprising that such a derivative product has been rolled out in a country with regulatory clarity around cryptos.

As mentioned in the report, Switzerland was chosen as the right destination for Amun’s index fund after the startup considered over “23 countries.”

There is even a little chance that the U.S was in that number because of the regulatory uncertainty which the SEC has created around the new asset class.

So while we continue to look forward to the time when a crypto ETF goes live on a U.S stock exchange, we’ll take some time to savor the latest victory in Switzerland.

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Data Research Firm: 96 Percent of Companies That Exist Today Will Fail in 10 Years

Anyone involved in marketing knows the adage as old as advertising itself: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” The reality may be worse though – not just a half, but an absolute majority of marketing budgets is wasted on customers that don’t generate enough profitability, says Peter Fader of the Wharton school of economics at the University of Pennsylvania.

The rise of big data and analytics technology promises to change that situation. Today, decision-makers are increasingly able to tell a wasted marketing budget from an effective one.

Nevertheless, few companies have what it takes to tap into big data riches, and the consequences may be dramatic. Singapore-based data science firm DATAVLT says that 99 percent of corporate data is wasted and never used to draw knowledge from it. Only one percent of the data companies collect and store is ever analyzed. This, according to DATAVLT, will cause as much as 96 percent of businesses that exist today to fail in 10 years.

Worldwide, big business is coming to realize the importance of data analytics. According to a 2017 Gartner study, “Out of 13 marketing capabilities, chief marketing officers [polled by Gartner] allocate 9.2 percent of their total marketing expense budget on marketing analytics — the most of any capability.” Only a couple of years earlier, analytics occupied 4th place in terms of marketing spending.

In absolute numbers, spending 9.2 percent of a marketing budget of, say, $10 million is $920,000, and not an uncommon price tag for data analytics projects. Amazon spends $7.2 billion on marketing worldwide, and data analytics is Amazon’s core competency. Data science truly becomes the secret weapon of large corporations to cut costs and anticipate customer expectations.

Smaller businesses in danger

But what kind of insight can $5,000, which is 10 percent of a marketing budget of, say, $50,000, buy? Right now, not much. “If you do not have five to six figure budget, you will not get anything of value out of the data”, said DATAVLT’s co-founder Michelle Yeo to Cointelegraph.

According to PayScale, a median data analyst salary in Shanghai, China, is around $14,000 a year. In Singapore, the same skill set is worth about $33,839 a year, without bonuses. This is a bare minimum expense required even to be able to analyse data with at least some sophistication. Expensive analytical tools add even more to the price, without any break-through results guaranteed.

DATAVLT says that if their predictions are correct, the first candidates for extinction are small and medium businesses.

Affordable intelligence

Despite the doom and gloom, DATAVLT sees an opportunity for itself. The company targets its affordable Software as a Service (SaaS) data analytics product specifically to smaller and medium business, seeing the most potential demand in the Asia-Pacific region. It bets on blockchain as a cost-cutting tool. Even with a share less than 0.01 percent of the current market, DATAVLT plans to achieve a revenue of about $50 million in seven years.

In essence, DATAVLT’s platform crosses all available and relevant customer data, for example, services consumption, communication and behavior, with different external and open data sources. The engine takes into account economical, sociological, and anthropological information, and then correlates the data with behavioural inputs like profiling, tonality, and sentiment. The result of this correlation is data which is much deeper and analysis that is more meaningful, the company says.

“It is about empowerment. In an age where the norm is for large corporations to dominate, we can build something inclusive where independent brands can thrive and play a role in building the community together as an alternative. For that to happen, we actually have to help each other out”,  says Michelle Yeo.

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