Mars Investment Express: Coin An Unlocking 16 Million BNB Next Week, May Face Selling Pressure

Disclaimer: This article aims to convey more market information and does not constitute any investment advice. The article only represents the author's viewpoint and does not represent the official stance of Mars Finance.

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Key points of this issue

1. Data pivot:The correlation between Bitcoin and other crypto asset prices significantly decreased in the second quarter; The crypto secondary market surged, with Coin An setting a record monthly trading volume of $60 billion in June and unlocking approximately 16 million BNB next week

2. High energy events:Facebook has sparked the Libra effect, with multiple central bank executives and former executives speaking out intensively

3. Dehydration research report:The FOMO3D team is about to launch a new game, Just. Game, to decipher the gameplay and profitability of the game

4. Black Horse Reminder:EGT, a game concept coin backed by Egret technology, rose strongly by 432% in one month

1 Data Perspective | Interpreting Key Data and Understanding the Big Market

In the previous issue of the Mars Investment Bulletin, we pointed out that,Due to the demand for hedging and institutional allocation of assets, most counterfeit currencies other than Bitcoin did not record the same increase in the current round of Bitcoin's rise.In the latest report released by the Coin Security Research Institute on July 5th, quantitative analysis also indicates this trend.

The Coin Security Research Institute pointed out that Bitcoin exhibited a high average correlation with other crypto assets in the first quarter of 2019, but its correlation significantly decreased in the second quarter. During this period, Bitcoin prices increased by 300%, with a market share of over 60%, reaching a new high for the year.

Overview of the correlation of crypto assets in the second quarter of 2019 (Mars Finance APP note: red indicates weak correlation; blue indicates strong correlation); Image source: Coin Safety Research Institute

The Coin Security Research Institute also pointed out the reasons for the low correlation between BNB, LINK, BSV, and Bitcoin (mainly driven by events):

BNB: The coin security chain is online, and BNB converts from ERC-20 token to the original token of the coin security chain, releasing the information about the upcoming opening of margin trading, opening a new French currency exchange worldwide, etc LINK: Google's smart contract platform and MaticNetwork have reached a partnership with LINK BSV: Mainly driven by rumors and the delisting of large exchanges such as Coin An.

At the same time as the global cryptocurrency market is soaring, the performance of Coin An in the second quarter is impressive,Expected net income is between $100 million and $150 million, with a record transaction volume of $60 billion in June This is the best financial quarter in the history of Coin An.Other key financial information includes

As part of the annual employee stock ownership plan, Coin An will distribute $539 million worth of newly unlocked BNB16 million to team members next week; 2. US users account for about 20% of the total traffic of Coin An, but starting from September 12th, they will no longer be able to trade on Binance.com. However, Coin An Holdings' US subsidiary is already in preparation.

2 High energy events | industry hotspots known early on, seizing investment opportunities

1. Facebook triggers the Libra effect, with multiple central bank officials commenting intensively

Facebook has been publishing the Libra white paper for almost a month, and discussions about it are still ongoing. In the early stage, the market paid more attention to the impact of Libra on Facebook's business revenue, privacy data protection, and the obstacles Libra will face in regulation. However, recently, the focus has shifted more to the discussion of "super sovereign national currencies". There are voices accelerating the launch of central bank digital currencies and countries issuing their own Libra like products internationally, and the International Monetary Fund (IMF) has also proposed the issuance of a super sovereign digital currency. The concept of Libra has also had a significant impact on the People's Bank of China and the Chinese financial system.

• Zhou Xiaochuan (former Governor of the People's Bank of China): Libra foreshadows the emergence of a more globalized strong currency in the future

On July 9th, at the seminar on "Reform and Development of China's Foreign Exchange Management", former President of the People's Bank of China and President of the China Financial Society, Zhou Xiaochuan, stated that there may be a more international and globalized currency in the future, which is a strong currency, leading to exchange relationships between major currencies and it. However, "this thing may not necessarily be a Libra, but based on the trend in recent years, there will be many institutions and personnel trying to establish a currency that is more conducive to globalization." Zhou Xiaochuan said, "To engage in cryptocurrency, one should refer to the Hong Kong Monetary Authority's currency issuance experience, which is a 100% reserve manual. That is, for every 7.8 Hong Kong dollars issued, issuing banks need to deposit 1 US dollar as a reserve, which is similar to the current concept of stable currency.

• Wang Xin (Director of the Research Bureau of the People's Bank of China): The State Council has officially approved the research and development of the central bank's digital currency

Wang Xin revealed that in order to promote the research and development of the central bank's digital currency, the central bank has specially established the Central Bank's Digital Currency Research Institute, which closely cooperates with local governments in cities such as Shenzhen to conduct systematic research and development. He also reflected on "a few years ago, we (the central bank) adopted a very strict attitude towards virtual currencies and virtual assets", stating that traditional cash will inevitably become less and less, and that the shift from physical cash to digital cash is a huge challenge and an interesting topic. He said, "Even for Libra, it is only a plan in itself, but we can have academic discussions and deductions.

• Zhu Min (former Vice President of the People's Bank of China and President of the National Institute of Finance): Libra is different from Alipay. Its core concept is currency

On July 1st, at the 2019 Annual Meeting of New Leaders of the World Economic Forum (Summer Davos), Zhu Min stated that the core concept of Libra is currency and cross-border, which combines the policies that central banks need to consider with the functions of commercial bank payments. "We should not take Libra's emergence lightly, as it will have a significant impact on the existing financial system, monetary system, and even future reserve system

• Yao Yudong (former director of the Financial Research Institute of the People's Bank of China): Libra can be issued by commercial institutions or across borders, but it must be included in the supervision of the central bank

On July 7, at the 2019 China Wealth Forum with the theme of "Wealth Helps Shipping Trade Financial innovation", Yao Yudong, former director of the Financial Research Institute of the People's Bank of China, said that digital currency based on blockchain is an inevitable trend. Technological innovation is unstoppable, but it is only an effective supplement to fiat currency and will not replace it. This is an inevitable demand for global human economic development. Libra is a public product that can be issued by commercial institutions or across borders, but must be included in central bank regulation.

• Mu Changchun (Deputy Director of the Payment and Settlement Department of the Central Bank): Libra's reserve asset mechanism design poses a risk of downward currency fluctuations

Mu Changchun said that Libra creates a convertible digital currency that flows freely across borders. Libra's reserve assets include cash deposits and government bonds, and Libra's reserve assets do not pay interest to users. The interest will be used for system operating costs, dividends, and system upgrades. This structure is a bit like a money market fund or shadow bank like a depository institution, and the profit requirements are relatively high. He suggested that Libra is likely managed by financial institutions, entering the institution's balance sheet, and financial institutions use funds on the asset side. Although the focus of fund utilization is on stability and low risk, the safest government bonds currently often have negative returns. It is not easy to make profits through active asset management, which increases the risk of Libra reserve asset impairment and leads to downward currency fluctuations.

3 Black Horse Reminder | Revealing Potential Currencies and Opening up Investment Space

1. Egretia (EGT) - Game Concept

Currency Introduction:Egretia (click to download the white paper) is a blockchain game development toolkit incubated by Egret Technology, which provides development tools, technical support, and community operation and maintenance. Egretia's goal is to bring 200000 developers of Egret Technology and 1 billion mobile devices into the blockchain world. At present, Egretia has successfully combined existing HTML5 technology and tools with blockchain to create a complete blockchain game development workflow. Through the Egretia blockchain game development workflow, developers can easily and efficiently create blockchain games without paying attention to the complex underlying technology implementation of blockchain, and facilitate the flow of virtual assets between games.

The Egretia ecosystem also includes the game open platform, crowdfunding platform, game digital asset exchange and incubator, which will provide players, content providers and channels with comprehensive blockchain solutions and services, provide a more open environment for the circulation of upstream and downstream resources of the game, and build a perfect game ecosystem.

Historical performance:EGT has been online for trading for just over a year. Since breaking the high of $0.01199 since its launch on June 7th, EGT has shown a unilateral upward trend for most of the time, with only a brief pullback from June 13th to 17th, June 27th, and June 29th to July 2nd. From the daily K-line chart, there is still room for EGT to rise, but the volume has weakened.

Risk reminder:It is necessary to be cautious of a significant retreat in currency prices in a short period of time. The long-term price of EGT needs to pay attention to the maturity of the blockchain gaming industry, the adoption of Egeria, community popularity, and how many 40 million monthly active users of Egret Technology can migrate to become encrypted asset users.

4 Dehydration Research Report | Insight into the Truth of the Industry and Explore High Profitability

1. MulticoinCapital: Three core investment themes in the multi billion dollar cryptocurrency market

Core viewpoint:OpenFinance, Web3, and GlobalState FreeMoney will be investment themes that will last for 10 years or even longer, with a potential market value of trillions in 2019 US dollars. These three major investment themes are in a progressive relationship, with open finance being the first to develop.Although Ethereum is currently the market leader in this area, we do not take it for granted that it will win, but rather manage the investment portfolio in a probabilistic manner.

Open finance

The key innovation of open finance lies in the modularity of basic financial elements.

Through the basic elements of modular finance, open finance commoditizes trust - an example of modular finance in reality is that open finance protocols are modular and are called by higher-level applications, typically combining protocols and applications. These protocols are not aimed at the end user market, do not provide customer service, and do not deal with local laws. They are only a piece of code grown on the blockchain. This can be compared to how email is built on open source protocol suites such as SMTP and TCP/IP, and displayed in browsers through HTML/JS.

Modular financial elements will bring step function level improvement to the innovation speed of all financial services.

Representative projects: August, 0x, MakerDAO, Compound, CyberNetwork, Dhama, etc

DeFi lock in value distribution. Source: DAppTotal

Ecological Map of Ethereum DeFi Project. Source: BlockGenesis

Web3

Web3 is based on the separation of data ownership and application logic, and in the future, data owners will not need to entrust their data to application providers.

In the Web2 model, internet companies control closed databases and have technical and legal control over user data. But in the Web3 model, users have access to their encrypted data on open source networks such as the Interplanetary File System (IPFS) architecture, and interact with other networks through encrypted signature information on a smart contract platform that serves as an open, programmable ledger.

As of now, hundreds of teams around the world are developing a Web3 protocol stack that supports data autonomy based minimum trust computing.

Representative projects: Tari, TheGraph, Keep, Livepeer, SKALE, SpringLabs, Starkware, Textile, etc

Borderless currency

There are three hypothetical paths to becoming a borderless currency: value storage (SOV), utility, and stable currency. The utility hypothesis is that the currency most likely to generate the maximum value, that is, the currency that people use as' currency 'in large-scale applications, will become a borderless currency.

2. Fomo3D team returns, how will the next wave of Dapp be played?

Core viewpoint:The Fomo3D development team TeamJUST has returned and released a new game "Just. name". The first round of internal testing started on July 8th, but the earliest release time for the official version of the game has not been announced yet. In the white paper, TeamJUST stated that Just.name is not an ICO, an exchange, based on probability, or an investment opportunity - it is a speculative technology based entertainment.

Differences and similarities between FOMO3D and Just. Game. Image source: DappReview

DappReview (click to follow Mars) extracted the game mechanics based on the white paper:

Purchase a gift box with an initial value of 0 after purchase. As the value of the gift box increases (similar to the concept of dividend rights), before the end of this game, the gift box can choose to actively open, withdraw double the current value of the income, and the box will disappear. Gift boxes can also be upgraded by consuming the value of the gift box to purchase more gift boxes. The old box still exists, but the value is reset to zero. Every time a box is purchased and opened, the countdown timer increases by 30 seconds (initially 12 hours). When the countdown returns to zero, the last 100 players who operate the box will be divided equally into a prize pool, and the last player who operates the box will receive additional rewards. All boxes are opened, and the user receives TRX of the current value in the box (not twice at this time). The game ends and the next round starts from scratch

Profit method:Understand the gameplay in advance and enter the game in a competitive position as soon as possible when going online on the main website; Promptly launch a replica disc to improve game parameters and become more aggressive; The game will be deployed on the TRON main network, and if a large number of players participate, there may be a huge amount of TRX locked into the contract.

Revenue Calculator:(It is recommended to download and use it on the computer, provided by DappReview for reference only):
https://share.weiyun.com/5MCOJ9V

5 Announcement Intensive Reading | Understand the intention of the exchange and identify trading opportunities

1. BitfinexIEO platform Tokinex is about to launch the second phase of project token sales

On July 16th at 11:00 (UTC time), the BitfinexIEO platform Tokinex will launch ultra io (UTA) token sales with a total amount of 5 million USDT. Ultra (click to view the white paper) is the next generation PC game distribution platform driven by blockchain. According to Bitfinex's description, Ultra is committed to enabling anyone to establish and operate their own game distribution platform or virtual commodity trading services, thereby challenging the current monopoly positions of Steam, Google, and Apple.

For developers, Ultra can better control the community and open up transparent new revenue streams, including advertising and instant processing of small payments. Players can also benefit by accessing exclusive content, earning UTA tokens, and more.

Intensive reading:The first phase project Ampleforth (AMPL) ended its IEO and opened secondary market trading on June 28th. The initial price of the IEO was $0.98, with a current return rate of 32.6% and a maximum return rate of 122.7%. The second phase project token UTA, as a game concept coin, can be a long-term focus, but the short-term IEO upside potential may not be guaranteed.

In the announcement, Bitfinex stated that "27% of Ampleforth IEO revenue has been used to continuously redeem outstanding LEO tokens", as well as "27% of past and future Tokinex revenue has been used to purchase LEO tokens". Due to IEO representing Bitfinex's liabilities and adopting a buyback and destruction model, LEO is bullish in the medium to long term. However, in the short term, LEO is still in a downward channel and is taking back its previous gains. This repurchase news has limited support for LEO.

Statement: This article is the work of the author who has settled on Mars and does not represent the official stance of Mars Finance. Please indicate the source, author, and link of this article for reprinting

Reminder: Investment carries risks and caution is necessary when entering the market. This information is not intended as investment or financial advice.