SharesPost Token Index down 71% from the start, but "less bad" than the Eth
The downward trend in the overall crypto market continued until November. The bitcoin cash fork event in mid-November and the start of a regulatory clampdown on Initial Coin Offerings (ICO) seem to have triggered high volatility and negative sentiment among cryptic investors. The Token SharesPost index that tracks the 15 most important market cap tokens, which fell from 57.51 to 28.52, a decrease of 50.4%, during the month of November 2018. This dive is comparable to the moderate gain, 2.5% recorded in October. Benchmarking the Index to the most popular cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) paint a story similar to the great reduction in value for the month. The index underperformed both around 13% and 7% respectively.
Overall, from the start, the Index outperformed ETH but underperformed the BTC. The index fell by 71.5% while ETH fell by 75% and the BTC by 36.75% from 1 July 2018. Holochain (HOT) is the only token that has had a positive growth of 25% during this period.
November component performance
Source: SharesPost Research; CoinMarketCap; Data as of 30 November 2018
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In November, each component of the index fell by more than 20 percent. While the global market showed a downward trend, the components of the index that decreased the lowest amount during the month of November were BAT, PPT and REP in order of classification. The Basic Attention Token (BAT) has enjoyed some (relative) prices since it was entered on Coinbase in mid-October. Zilliqa is on track to launch its Mainnet in January 2019 and OmiseGo has completed its first plasma iteration, designed to increase the speed of transactions on the Ethereum blockchain. Binance on the other hand was on an investment spree. The cyrptoexchnage has invested over $ 2.5 million in an Australian travel company and over $ 3 million in a US encryption desk.
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The worst components of the index during the month were WTC, LRC and NPXS. Each of the tokens lost more than half of their value during the month. The Waltonchain (WTC) probably recorded the biggest drop during the month, given the lack of information that the project makes available to developers, the project does not have a GitHub community.
Source: SharesPost Research; CoinMarketCap; Data as of 30 November 2018
Source: SharesPost Research; CoinMarketCap
Market commentary – BCH Hard Fork and doubts on the SEC chair
Bitcoin Cash (BCH) had a difficult fork or deviation in the protocol, resulting in two versions of BCH: BCHABC and BCHSV. It is interesting to note that BCH was born from a fork difficult by BTC in 2017. In the end, Bitcoin Cash ABC (Adjustable Block Cap) took the title again Bitcoin Cash while Bitcoin Cash SV (Satoshi Vision) is trying to emerge as a new token and is changing its name to Bitcoin SV. Craig Wright, the self-proclaimed inventor of Bitcoin, states that Bitcoin SV is more in line with the original intent of Bitcoin.
As already mentioned, the hard fork preceded a sharp slowdown in the digital capital market. The aggregate value of cryptocurrencies fell to around $ 130 billion by the end of the month. This figure compares with the high market at the start of this year of over $ 800 billion.
Despite strong price volatility, November was not entirely negative. In particular, the president of the SEC, Jay Clayton, hinted at the future approval of a digital ETF asset. During the Consensus Invest Conference, he outlined his remaining concerns in the ETF business category. Among those reserves, he targeted the lack of adequate market surveillance and the lack of a gold standard in custody. In general, the President wants to be sure that cryptographic markets can not be manipulated and that investors can not easily steal their investments in digital assets. As Clayton said, "these kinds of guarantees do not currently exist in all the places of exchange where digital currencies trade".
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