The good news is that the crypto stagnation in the 330–350b total market cap range are over. The bad news is that it’s the bottom that has dropped out, with crypto suffering losses of a truly cataclysmic scale. Total market cap has dropped below 300b and currently stands at 297b where the market appears to have found a support. Most of the losses were suffered over the past 36 hours. BTC has dropped to 6770 (-7.9%) and ETH has dropped to 528 (-9.0%) and yet are nowhere near the worst performers, demonstrating what an absolute bloodbath it’s been.
Altcoins have, as is typical, gotten decimated by the large drop. For the most part it was simply a question of which coins had the least losses. The only top 100 coin to turn a profit was Veritaseum (VERI +9.9%), which was probably just a partial recovery on the huge losses that coin has experienced in the short term.
A staggering 76 of the top 100 coins have suffered double digit percentage losses, which is an indication of how devastated crypto investors are right now. The leading lossmakers were Cryptonex (CNX -18.4%), WaykiChain (WICC -23.7%) and Skycoin (SKY -21.2%).
One of the possible reasons for the drop is a hack of a small Korean exchange named Coinrail. Coinrail was hacked for an undisclosed amount of NPXS, NPER and ATX. While an exchange hack may trigger FUD, it is important to keep in mind that Coinrail is a very small player (24h volume under 3m) and it would be a real stretch to characterize this as the sole trigger for the massive drop.
China’s largest state-owned newspaper has run an editorial column declaring a need for regulation of cryptocurrencies — something that would be a paradigm shift. There is a general sentiment that China do not want to fall behind the USA in terms of implementing crypto as a part of the economy as a whole.
The Thai SEC revealed some details as to crypto regulation, including the provision of enterprise licenses. ICO investing will be legal through seven crypto-THB pairs: BTC, ETH, BCH, ETC, LTC, XRP and XLM. A Thai SEC license will be necessary for all market participants including ICO issuers, digital exchanges, brokers and dealers involved with digital asset transactions. Increased regulatory clarity such as this is just what the crypto market needs to be a legitimate market for traditional finance moving forward.
Black Horse Group is a digital asset investment and advisory firm based in Hong Kong.