Editor's Note: The original title is "A Good Way for Heaven, Who Will the SEC Say?"
SEC rushed to the Telegram blockchain project TON main network is about to go online, the placard of Gram is about to be on the market circa, playing a steady supervision of the punch, how will this affect Telegram and even the encryption market?
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Topic: SEC, the guardian of investors?
The SEC has been closely monitoring the first-time issuance activities in the United States or against US nationals, and has been characterized as a securities issue that requires compliance with the Securities Exchange Act. Recently, the SEC has settled with EOS's parent company Block.One and Siacoin's parent company Nebulous, and then stared at Telegram. Telegram's blockchain project TON faces a more difficult dilemma than EOS and Siacoin: TON's Pass Gram has not yet entered the market, and Telegram is an internationally renowned encrypted chat software that has a large influence on investors. Information disclosure issues. The SEC has prosecuted projects such as EOS, Siacoin and TON, indicating that it has gradually carried out “autumn accounting” supervision. The SEC's final ruling on Telegram may have a demonstration effect on other star blockchain projects. Compliance seems to be an important theme in the encryption market this year. The speculation in the name of the blockchain will gradually disappear, and quality projects will become more and more standardized along with the encryption market.
The rebound is weak and the shock is down. The total market value of digital certificates this week was US$22.91 billion, down 3.0%; the average daily trading volume was US$53.65 billion, down 6.0%; the average daily turnover was 23.8%, down 1.3%. The current price of BTC is US$7973, a decrease of 4.2%. The average daily turnover of BTC this week is US$15 billion, and the average daily turnover rate is 10.2%. The current price of ETH is US$173.6, a decrease of 4.9%, and the monthly decline is 17.9%. The average daily trading volume of ETH is 7.3 billion US dollars, and the average daily turnover rate is 37.7%. This week, the exchange's BTC balance was 864,100, a decrease of 0.13 million; the exchange's ETH balance was 9.25 million, a decrease of 200,000. In the BICS secondary industry, the market value of the project services and the number of certificates fell significantly.
Output and heat: ETH mining difficulty and attention drop. The difficulty of mining this week is 13.008T, which is the same as last week. The average daily power of this week is 93.85EH/s, down 4.56EH/s from last week. The difficulty of mining this week is 2407, which is 66% lower than last week. The calculation power is 191.8TH/S, which is 3.1TH/S higher than last week.
Industry: The application scope of blockchain technology is gradually expanding. Audit company Ernst & Young launches blockchain solution for public finance management; Singapore Shipping Association establishes blockchain-based electronic registry; Russian Alpha Bank and Commerzbank conduct cross-border payment pilots on blockchain; CIMB Singapore Branch Use the blockchain platform to complete trade finance transactions.
Risk warning: regulatory policy risk, market trend risk
1 Topic: SEC, the guardian of investors?
On October 12, 2019, the US Securities and Exchange Commission (SEC) announced the “Emergency Action and Temporary Restriction Order” for the Telegram Group and its subsidiary TON Issuer, and the Telegram's borrowed blockchain project TON issued by the Gram Description For "illegal securities sales."
1.1 Dedicated SEC
The SEC wrote on its official website that the SEC's mission is to protect investors and maintain a fair, orderly and efficient market. In response to the first-time certificate issuance activity that has arisen in recent years, the SEC has opened a special webpage for relevant knowledge popularization and risk warning.
The SEC has been keeping a close eye on the first pass issue in the United States or against US nationals. In 2017, the encryption market ushered in a big bull market. At that time, the first pass issuance activity was extremely hot. The SEC initiated the first lawsuit against such activities on September 30. Regardless of its size and influence, whether or not the SAFT (Simple Agreements for Future Tokens) has been drafted, has Form D been submitted to the SEC as long as it is not registered with the SEC and is suspected of harming US investment. The interests of the people may be investigated by the SEC.
1.2 TON faces a more difficult situation than EOS and Siacoin
The SEC has always characterized the first pass issuance activity as a securities issue, requiring it to comply with the Securities Exchange Act. Recently, the SEC has reached a settlement with the two companies, and then stared at Telegram.
On September 30, 2019, the SEC announced a settlement with Block.one. The EOS issued by Block.One raised billions of dollars in funds from June 2017 to June 2018, but did not register the securities sales activities as securities issued in accordance with US federal securities laws. Block.one agreed to pay a $24 million civil penalty, settled with the SEC, and was granted a significant exemption for future business.
On October 2, 2019, the SEC announced a settlement with Nebulous, the parent company of the well-known distributed cloud storage project Siacoin (SC). Founded in 2014, Siacoin was the first blockchain cloud storage project to be launched. It raised $120,000 through the issuance of SC and currently has a market capitalization of $43 million. Nebulous agreed that the SEC would confiscate the $120,000 it raised and pay $100,000 in civil penalties and interest.
On October 12, 2019, the SEC stared at Telegram, claiming that the company's blockchain project TON issued the pass of Gram as "illegal securities sales," saying it was not in accordance with the Securities Act of 1933. Registration requirements for registration, failure to disclose information on project operations, financial status, risk factors, etc. to investors in accordance with securities laws.
In January and March 2018, Telegram sold Gram twice using a simple future agreement and submitted Form D to the SEC. The sales of 2.9 billion Gram raised a total of $1.7 billion, of which 1 billion were sold to 39 US investors raised $424.5 million.
TON faces a more difficult situation than EOS and Siacoin. On the one hand, TON's pass Gram has not yet entered the market, and EOS and SC have been circulating in the market for nearly 2 years; on the other hand, Telegram is an internationally renowned encrypted chat software, which has a great influence on itself. Investors' information disclosure issues, while EOS and Siacoin's parent company are start-up blockchain companies, there is no such problem.
According to the agreement of the TON team and investors, Gram needs to be issued before October 31, 2019, otherwise investors such as Sequoia Capital have the right to request the withdrawal of investment. TON has started to contact private equity investors to ask if Gram can be extended.
At present, the District Court for the Southern District of New York has postponed the SEC hearing on the TON project and its Gram ban until February 18-19, 2020.
1.3 The SEC's ruling on Telegram may have a demonstration effect on other star projects
When TON was hot in early 2018, it raised $1.7 billion in cash from 175 investors (not a cryptographic certificate such as BTC), which had a big impact on the encryption market.
With the rise of blockchain technology, thousands of projects have been created through initial public offerings. The SEC has prosecuted projects such as EOS, Siacoin and TON, indicating that it has gradually carried out “autumn accounting” supervision. In addition, the SEC's final ruling on Telegram may have a demonstration effect on other star blockchain projects.
For example, IPFS (Filecoin), which became popular in 2017, received angel round investment from well-known investment institutions such as Sequoia Capital and USV, and then raised funds for the public, raising a total of 200 million US dollars. IPFS, also known as the Interstellar File System, is a distributed file system based on blockchain technology, which is said to "subvert the HTTP protocol."
Another example is Dfinity (DFN), which was famous in 2018. It has received investment from well-known investment institutions such as Polychain Capital, Multicoin Capital, and Distributed Capital, raising a total of $195 million through three rounds of financing. Dfinity is committed to creating an infinite expansion supercomputer that can be used by people around the world, and even Vitarek, the founder of Ethereum (ETH), has given the project a high rating.
At present, the development progress of the two projects has been postponed repeatedly, and the main network failed to go online as scheduled.
Compliance seems to be an important theme in the encryption market this year. The speculation in the name of the blockchain will gradually disappear, and quality projects will become more and more standardized along with the encryption market.
2 Quotes: weak rebound, shock down
2.1 Overall market: shock down
The total market value of digital passes this week was $22.91 billion, a decrease of about 3.0% from last week's decline of $6.8 billion.
The average daily trading volume of the digital pass market was US$53.65 billion, down 6.0% from last week. The average daily turnover was 23.8%, down 1.3% from last week.
This week, the exchange's BTC balance was 884,100, a decrease of 0.13 million from last week. The exchange's ETH balance was 9.25 million, a decrease of 200,000 from last week. The exchange's BTC and ETH balances have decreased, and the selling pressure on the market has weakened.
The market value of USDT was $4.12 billion, a decrease of $39.49 million from last week. At present, the enthusiasm for funds entering the market has rebounded, and the USDT premium has increased.
2.2 Core Pass: XRP rises against the trend
The current price of BTC is US$7973, a weekly decline of 4.2% and a monthly decline of 21.8%. The average daily trading volume of BTC this week was 15 billion US dollars, and the average daily turnover rate was 10.2%. BTC oscillated down this week.
The current price of ETH is $173.6, a weekly decline of 4.9% and a monthly decline of 17.9% . The average daily trading volume of ETH this week was 7.3 billion US dollars, and the average daily turnover rate was 37.7%. ETH and BTC fell by the same amount.
EOS is currently at $2.89, up 7.9% for the week and 29.3% for the month. The average daily trading volume of EOS this week was 1.5 billion US dollars, and the average daily turnover rate was 52.2%. EOS fell more.
The current price of XRP is $0.30, with a weekly increase of 8.8% and a monthly decline of 6.0%. The average daily turnover of XRP this week was 1.6 billion US dollars, and the average daily turnover rate was 12.4%.
The monthly volatility of the main pass this week was basically unchanged . The monthly volatility of BTC was 15.6%, which was the same as last week. The ethical monthly volatility was 24.3%, down 0.9% from last week. The EOS monthly volatility was 31.0%. Last week, it fell by 0.6%; XRP monthly volatility was 21.9%, down 1.8% from last week. This week, the volatility of the market's main circulation certificate is basically unchanged, with only a slight decline.
2.3 BICS industry: the market value of project services and the number of certificates have dropped significantly
In the secondary industry of BICS (Blockchain Industry Classification Standard), the market value of the payment and settlement industry decreased from 72.1% to 71.4%. From the perspective of the change rate of market value, the market share of other data and storage industries increased at a higher rate, up 26.0% and 20.0% respectively compared with last week; the market value of retail e-commerce, project services and performance optimization decreased. Obviously, it fell by 11.7%, 9.6% and 8.9% respectively from last week.
The BICS secondary industry with more obvious increase in the number of passes this week is data & storage, stable pass and pass certificates, which increased by 25.0%, 21.4% and 11.1% respectively compared with last week; The obvious BICS secondary industry is professional services, project services and retail e-commerce, which decreased by 21.4%, 18.8% and 9.1% respectively compared with last week.
2.4 Market view: shocks down, but the long-term upward trend has not changed
This week, the main circulation certificate, in addition to XRP, you are rising, mostly in a downward trend of volatility, verifying that last week's judgment "is in the down channel, may enter a larger range of shocks." This situation may still continue.
Long-term investors can gradually increase their positions. In the long run, the BTC production is approaching, and the market bad news is gradually digested. Although it is repeated in the short term, the breakthrough is just around the corner, and the bull market logic remains unchanged. The decline in the price of the main circulation certificate provides a better opportunity for long-term investors to get on the train.
3 Output and heat: ETH mining difficulty and attention double drop
The difficulty of ETH has declined, and the average daily computing power has not dropped. The difficulty of mining this week is 13.008T, which is the same as last week. The average daily power of this week is 93.85EH/s, down 4.56EH/s from last week. The difficulty of mining this week is 2407, which is 66% lower than last week. The calculation power is 191.8TH/S, which is 3.1TH/S higher than last week.
This week, Google Trends's Bitcoin entry search heat was 9, which was the same as last week. The Ethereum entry search heat was 5, down from last week.
4 Industry News: The application scope of blockchain technology is gradually expanding
4.1 Audit company Ernst & Young launches blockchain solution for public finance management
According to Cointelegraph, Ernst & Young, one of the four major audit firms, launched a blockchain platform, OpsChain, for public funding to increase transparency. The OpsChain Public Financial Management (PFM) system tracks public budgets and expenses. PFM can track the public funds of the government in different state agencies, and can also make public funds expenditures correspond to the final results to judge the effectiveness of the policy. Ernst & Young has tested public funds on the tracking blockchain in several cities, including Toronto, Canada.
4.2 Singapore Shipping Association establishes blockchain-based electronic registry
According to Businesstimes, the Singapore Shipping Association is working with the International Chamber of Commerce (ICC) and Singapore technology start-up Perlin to establish a blockchain-based International Ship Electronic Registration (IERS) system, which they expect will "significantly improve the current cumbersome ship registration and Renewal process."
4.3 Russian Alpha Bank and German Commercial Bank launch cross-border payment pilot on blockchain
According to Ledgerinsights, Russian Alpha Bank (ALFA) and Commerzbank launched a cross-border payment pilot on the Marco Polo blockchain trading network, targeting Novolipetsk Steel (NLMK) and Vesuvius, Russia's largest steel producers. GmbH Engineering establishes an end-to-end trade finance and supply chain financing solution.
4.4 CIMB Singapore Branch uses blockchain platform to complete trade finance transactions
According to Ledgerinsights, CIMB Singapore Branch said it has completed trade finance transactions using iTrust's blockchain and Internet of Things (IoT) platform. The transaction involves financing dairy products imported into China and is expected to have an annual cash flow of up to $100 million.