Update No 4 of September 1, 2020

Crypto currencies in general

The crypto market continued its rallye in August, although not at the same pace as in the previous weeks and with slight losses in the last days of August.

Source: https://www.tradingview.com/symbols/CRYPTOINDEX-CIX100/

This is due to investor profit taking, not a sign of panic, but an expression of well-considered investment strategies and thus a sign of the maturity of the market that has consolidated. A massive downward trend is therefore unlikely, the basic data of the crypto market are rather stable, even positive. The strongest indication of this is the still rising market capitalisation, which increased by 12% in August.

Source: https://coinmarketcap.com/charts/

Institutional investors in particular are rushing to crypto-currencies to hedge against inflation-prone assets such as normal currencies. Unprecedented monetary easing around the world, skepticism about traditional assets is growing. The fear of a devaluation of the dollar is driving more and more wealthy people into the crypto market.

Financial institutions are also registering the trend. After JP Morgan, Goldmann Sachs is now also working on its own digital currency, an in-house token. Fidelity Investments, one of the largest U.S. asset managers, has applied to the U.S. Securities and Exchange Commission (SEC) for the introduction of another crypto-financial product.

Even the International Monetary Fund (IMF)  considers it necessary to position itself in the light of market data and republishes a 2-year-old  explanatory video (https://twitter.com/IMFNews/status/1297640002604527621 ) on Twitter, highlighting the transformative potential of cryptocurrencies such as Bitcoin, Ethereum and XRP. The IMF compares Bitcoin, Ethereum and XRP directly with the advantages and disadvantages of the traditional financial system and concludes that cryptocurrencies in one form or another could be “the next step in the evolution of money.”

In addition, new data from Google Trends show that retail investors are increasingly interested in the crypto market. There is a massive increase in the search volume for the term “buy crypto”; non-krypro-savvy investors are obviously impressed by the gains of the last few months and are interested in getting involved here.

The overall market situation is also reflected in the Fear & Greed Index, which measures the emotions and sentiment of the crypto market. He has been consistently greedy for the past two weeks.

Source: https://alternative.me/crypto/fear-and-greed-index/

The growing relevance of the crypto market is also demonstrated by the recent work programme of the European Commission. In this way, the publishers of crypto-assets are to be obliged to publish a standardized securities prospectus. Exceptions should only be made for low-volume issues and for those aimed at professional investors. The desirable objective is to create a stable European crypto market that protects consumers and investors without choking off new financial products based on blockchain technology.

Our portfolio

Overall performance

The CoinAnalyst portfolio has grown by 94% since its launch at the end of April.

The absolute top coins are ChainLink with 328% growth, Ethereum with 117% and Bitcoin with 53%.

In August, the portfolio showed a 22% increase.

Our recommendation is to realize the profits now and adjust a favorable moment for re-entry.

Coin of the month: Cardano (ADA)

Cardano is a coin with a current market capitalization of  €2,687,053,253. The current daily trading volume is  €431,542,588. The ratio is therefore 16%. There are about 26 billion coins in circulation.

Highest price in the last 12 months: €0,12  (July 2020), lowest price: €0.02  (March 2020). Volatility is 163.67 points (source: Bitgur).

Source: CoinMarketCap

Cardano is an open source blockchain project based in Switzerland, founded by Jeremy Wood and Charles Hoskinson, who both previously worked on the Ethereum project, but have separated from Ethereum because of different goals. Cardano has been launched in September 2017, financed by an ICO, and is supported by a predominantly academic workforce that relies on innovative and scientifically based technologies.

Cardano is often referred to as a third generation cryptocurrency. The first generation, such as Bitcoin, introduced a decentralized money system. The second generation, like Ethereum, relied on DApps, on decentralized applications, especially in the DeFi sector. The third generation, like Cardano, focuses on improving the deficits of its predecessors, especially through new developments such as a multi-layered architecture that offers greater scalability, greater security and greater robustness.

Cardano’s primary goal is to create a blockchain infrastructure that allows the operation of financial applications that can be used by millions of consumers worldwide on a daily basis. For this purpose, the blockchain operates with two layers, a base layer that allows users to transfer Cardano tokens, and a computing layer that enables the creation and execution of smart contracts. Cardano is not just trying to launch another crypto-currency, but wants to create a complete smart contract network that allows users to easily and conveniently transfer money in compliance with different country-specific financial and currency regulations.

The project is still under development, the second layer is not yet completely programmed. Cardano is currently working on the integration of Oracles (independent of ChainLink) and will start the third phase of development in the fall as planned: the creation of smart contracts, the development of decentralized applications and the creation of assets on the blockchain.

ADA, the Cardano token (which cannot be mined but only purchased), can already be used as a means of payment. Thanks to a partnership with payment service provider Bidali, ADA can be used as a means of payment in the form of vouchers at over 1200 stores, including Amazon, Nike and Starbucks.