 QUOTE OF THE DAY  |
| "The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton |
Happy Monday! We hope you have a great start to the week. Each Monday is a fresh start to set the tone for the rest of the week so focus up Brewers.
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Blockchain Brew Team
| COIN | PRICE | 24H |
|
| BTC | $7,535.67 | -2.5% |
|
| ETH | $597.944 | -3.7% |
|
| XRP | $0.652266 | -2.23% |
|
| BCH | $1,119.47 | -3.23% |
|
| EOS | $13.5561 | -9.71% |
|
*Information as of 9:30 AM EST
A Closer Look at Correlation in the Markets Shows Fear Drives Markets
CROSS-COIN CORRELATION
- In a lengthy analysis tweeted by popular crypto analyst, @CryptoRae, he revealed his results from cross-coin correlation
- Cross-coin correlation is calculated by averaging the correlation for every coin pair in a given sample
@CryptoRae found a disturbingly high correlation across the mid to high cap cryptocurrencies at this time from his calculations:
POSSIBLE CORRELATION CAUSES
- Though @CryptoRae provides quite the overview, he does not provide possible reasons behind these conclusions
- Some analysts theorize that FUD and FOMO are the biggest causes of mass correlation because those emotional factors affect the entire crypto market
- Other analysts argue that it is actually manipulation by exchanges or large traders that play a role in determining market trends and thus correlation
WHAT TO DO
- Though it is unclear what is actually causing the markets to be so correlated at this point in time, @CryptoRae offers his investing advice at a time like this
- Since cross-coin correlation is so high recently, @CryptoRae advises investors to concentrate wealth in "high conviction setups" because "when alts truly come back, it will be easy to make up for lost time"
- In conclusion, though theories are circulating about the markets, the best action for traders is to research, create their own conclusions, and then act on them
Chinese Internet Behemoth Announces Its 'Super Chain' Protocol
BAIDU
- Baidu is a Chinese based internet services and products company, that is known as the 'Chinese Google' as it is the main search engine used in China
- Baidu is currently ranked as the 4th most popular website by the Alexa Internet rankings
'SUPER CHAIN' PROTOCOL
- According to a report coming from China News Weekly, Baidu has revealed its 'Super Chain' protocol with the goal of reducing mining energy consumption
- Earlier this year, Baidu launched its Blockchain-as-a-Service product and the 'Super Chain' protocol will be another addition to its service
- 'Super Chain' will be able to “insert and remove consensus mechanisms to solve the current energy consumption problem” and also “compatible with the development system of Bitcoin and Ethereum”
- This development further shows China's and Chinese companies' dedication to investing in the development of blockchain technologies even as cryptocurrencies are banned within the country
New York Proposes a Cryptocurrency Task Force
NY & CRYPTO
- New York has been arguably the most strict and involved stated in cryptocurrency regulation
- The state is famous for its BitLicense regulation which banned cryptocurrency trading platforms in the state, unless the business was licensed
- The BitLicense has only been given out to a handful of cryptocurrency exchange platforms
TASK FORCE
- New York's next step in cryptocurrency regulation may be the creation of a task force
- The task force would consist of nine members to would be in charge of reporting to the governor, temporary president of the senate, and the speaker of the state assembly by 2019 about the impact of regulations on the crypto industry, the issue of taxes on cryptocurrencies, and the transparency of the industry
- Also, the task force would study other regulators' moves, reviewing "laws and regulations on digital currency used by other states, the federal government, foreign countries, and foreign political and economic unions to regulate the marketplace”
Unconfirmed: Microsoft Acquired Crypto Code Haven GitHub
GITHUB
- GitHub is a popular tool used by cryptocurrency developers to publish code and update open source projects
- It has been instrumental for transparency in an environment where a select few are developing the code for billion dollar cryptocurrencies
BOUGHT BY MICROSOFT
- Yet unconfirmed, many rumors are circulating that an announcement of the acquisition could be as early as today
- If acquired, it is also not clear yet how much GitHub was bought for as the last known company valuation was in 2015 when the developer platform was valued at $2 billion
REASONS TO BUY
- Many are pointing to the CEO, Satya Nadella, as the reason for the GitHub acquisition
- Since Nadella took over in 2014, Microsoft has been increasingly interested in open sourced projects such as PowerShell, Visual Studio Code, and the Microsoft Edge Javascript Engine
- In addition, Microsoft developers are a top contributor to GitHub with over 1,000 Microsoft employees actively pushing code to the website
Lisk (LSK)
LSK/BTC, LSK/ETH, LSK/USDT market transactions will be enabled on June 4th at 16:00 HKT.
Today in Crypto is powered by coinmarketcal.com
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