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Major Coins See Mixed Signals, Gold Reacts Positively to US Federal Reserve Decision

Cryptocurrency markets ares seeing mixed signals, with U.S. crude reaching $60 for the first time in around four months.

Wednesday, March 20 — cryptocurrency markets are seeing mixed signals today after moderate growth yesterday. Most top coins are slightly down, with Bitcoin (BTC) trading at around $4,060 at press time.

Market visualization from Coin360

Market visualization from Coin360

BTC is down around 0.13 percent over the last 24 hours, and is trading at around $4,063 at press time. The leading digital currency has seen low volatility during the day, having dropped to as low as $3,993, while the intraday high reached $4,079.

As reported earlier today, multiple respondents have filed comments with the United States Securities and Exchange Commission on the latest proposed rule change for the VanEck/SolidX Bitcoin exchange-traded fund (ETF). Among the seven comments filed thus far, six strongly urge the regulator not to approve the VanEck/SolidX proposal.

Bitcoin 24-hour price chart. Source: CoinMarketCap

Bitcoin 24-hour price chart. Source: CoinMarketCap ​​​​​​​

Ethereum (ETH) is down by 0.83 percent on the day, trading at $139.11 at press time. Today, the second largest coin saw $136.85 as its lowest price point, with a high of $140.02.

Ethereum 7-day price chart. Source: CoinMarketCap

Ethereum 7-day price chart. Source: CoinMarketCap

Ripple (XRP) is also down a slight 0.23 percent, trading at $0.318 at press time. The altcoin’s weekly chart is showing its price increasing by 1.05 percent.

Ripple 24-hour price chart. Source: CoinMarketCap

Ripple 24-hour price chart. Source: CoinMarketCap

Of the top 20 cryptocurrencies, Ontology (ONT) is the biggest winner on the day, up by almost 15.32 percent and trading at $1.29 at press time. Monero (XMR) is up by 1.83 percent over the day and is currently trading at $55.94.

Total market capitalization of all 2,115 coins on CoinMarketCap is around $140.9 billion at press time, dipping as low as $139.4 during the day. The daily trading volume of all cryptocurrencies is around $32.8 billion.

Total market capitalization 7-day chart. Source: CoinMarketCap

Total market capitalization 7-day chart. Source: CoinMarketCap

Oil prices have seen a surge today, with U.S. crude reaching $60 for the first time in around four months, according to CNBC. West Texas Intermediate (WTI) is up over 1 percent on the day, trading at around $60.12 to press time, while Brent has gained around 1.15 percent and is trading at $68.39 at press time.

Gold price reportedly increased by 0.64 percent today to $1314.9 per ounce after the United States Federal Reserve decided not to raise interest rates. At press time, gold is up by 1.85 percent and is trading at around $60.12.

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Could Bitcoin (BTC) Follow Gold’s Long-Term Chart?

Bitcoin Could Very Well Have Bottomed

A Twitter user going by “CabSav” recently drew attention to something he noticed in regards to gold’s long-term chart and Bitcoin (BTC)’s ongoing market cycle. In the chart seen below, which compares the two commodities over the aforementioned time frames, it becomes immediately apparent that they look somewhat similar.

In gold’s case, it spiked in the late 1970s, amid global turmoil and President Nixon’s decision to pull the U.S. dollar from the Gold Standard, reaching a peak during that time, before falling for years until the 1990s. In the case of Bitcoin, BTC peaked (as you know) at $20,000 in late-2017, falling to $4,000 where it sits just fifteen months later.

While these two cycles may seem nothing alike, both of them contained a similar lull, where the assets’ prices stabilized prior to one final drawdown. Following the last bout of capitulation, gold began to rally, reaching new all-time highs heading into 2008’s Great Recession.

So, if Bitcoin, known to many as digital gold, follows the historical trend established by its tangible counterpart, BTC could begin to rally, well, just about now.

There are some caveats to this analysis though. First off, the scaling of this is different from chart-to-chart. Gold fell from a ~$800 peak to $250, while BTC fell from $20,000 to $3,150. More importantly, is the multiple time frames that the chartist harnessed. Gold’s cycle was over multiple decades, while Bitcoin’s was not much more than a year.

As some have deemed this analysis moot due to the nuances aforementioned, here’s a similar bit done in the same vein.

Will History Rhyme? BTC Could Hit $20,000 By Early-2021

Under the Rhythm Trader handle, prominent trader Alec Ziupsnys and his team recently drew attention to the eerie lines that can be drawn between 2014 to 2016’s market cycle and the one seen today.

Ziupsnys, who has risen to prominence for incessantly touting the merits of Bitcoin over centralized financial institutions, noted that if BTC truly follows a multi-year cycle of boom and busts, there’s a likelihood that the cryptocurrency has already bottomed.

By the same token, Rhythm Trader explains that if a long-term floor has been established and market cycles are followed to a tee, BTC could begin to slowly but consistently move higher, eventually establishing in a new all-time high in early-2021. This would line up with analysis from Cane Island Crypto, per previous reports from Ethereum World News.

Cane Island Crypto, the creator of Network Value to Transactions (NVT), a popular fundamental measure used for cryptocurrency valuation models, recently took to Twitter to explain that when BTC isn’t “manipulated by jack leg exchanges,” it remains in a perfect parabolic trend. Giving his point further credence, he posted a chart, which showed that since BTC started trading at sub-$1, it has held a consistent uptrend, save for a few nuances here and there that came after a significant drawdown.

Extending the trend, the Texas-based analyst determined that if Bitcoin’s implied price for 2019’s end will be $7,800, 2020’s end will be $15,426, and so on and so forth. The Cane Island investment manager noted that if Bitcoin continues to hold this line, by the end of 2022, BTC will be valued at $52,321 and just under double that just 12 months later.

Photo by Gian D. on Unsplash

The post Could Bitcoin (BTC) Follow Gold’s Long-Term Chart? appeared first on Ethereum World News.

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Paxos’ Precious Metal-Backed Cryptocurrency to Launch This Year, CEO Says

Chad Cascarilla, CEO of blockchain trust company Paxos, has revealed that the company’s gold-backed cryptocurrency will be launched in 2019.

Blockchain trust company Paxos’ digital token backed by precious metals will be launched “definitely this year,” said Paxos CEO, Chad Cascarilla in an interview with Fortune’s Balancing the Ledger on March 11.

During the interview, Cascarilla was asked whether Paxos is working on a gold-backed coin, wherein he replied that “it is something we will see definitely this year.” “We are excited about the concept of being able to take a commodity, and I think precious metals are really obvious ones, and gold is probably the most obvious and being able to tokenize it,” Cascarilla added.

In order to implement the concept, Paxos has to ensure it holds the amount of inventory “in the real world” equal to the one registered on blockchain. Cascarilla explained:

“In order to put something in a blockchain, you have to make sure you have the right amount of inventory in the real world versus what is in the blockchain. How you do with a gold token is how much gold do you have in a vault equals how many gold tokens outstanding.”

Cascarilla said that the firm’s status as a financial institution allows the firm to utilize the banking system to ensure that they hold backing assets “in the real world” that correspond to the number of assets on a blockchain. While the company is planning to launch its precious metal-backed coin this year, Cascarilla said that Paxos has not set the exact date yet.

Speaking about Paxos Standard (PAX) — the firm’s Ethereum (ETH)-based stablecoin backed 1:1 by the U.S. dollar and launched last September — Cascarilla stated that it differs from other stablecoins in that it is fully audited, highly regulated and approved by the New York State Department of Financial Services (NYDFS), and relatively liquid.

Initially founded in 2012 as Bitcoin (BTC) exchange itBit, the startup later rebranded as blockchain-focused firm Paxos. Paxos holds a trust company charter in the state of New York, which gives it some of the same privileges as a bank, including the ability to take custody of mainstream financial assets. Last May, Paxos reportedly raised $65 million from investors to bolster its operations.

Last December, Cointelegraph reported that PAX exceeded $5 billion worth of transaction volumes. At the time, the coin had been used in $5,245,958,124.65 worth of transactions, with a market cap of over $174 million (as of press time, down to $113), of which the trust company had redeemed “over $136 million.”

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WSJ: Bitcoin (BTC) Trading In Step With Gold Amid Dow Jones Tumult

Bitcoin (BTC) Trading [Somewhat] In Step With The Volatility Index

Although Bitcoin (BTC) remains just hundreds of dollars away from its yearly low, the flagship crypto asset has regained boatloads of volatility in recent weeks. Some days throughout the past weeks have seen BTC, along with its altcoin brethren, swing by double-digits.

Interestingly, a report from the Wall Street Journal’s in-house crypto expert, Paul Vigna, has claimed that BTC has begun to trade in step with gold, accentuating how Bitcoin is likely the second coming of the orange(ish) precious metal.

Purportedly citing data from market analytics firm Excalibur Pro, the WSJ noted that while Bitcoin’s correlations to other asset classes are often non-existent, they remain “measurable.” More specifically, according to a scale that ranges from -1 to +1, BTC is currently trading at a 0.84 correlation to gold. This figure was gathered by market data pushed out over the past five days.

Using the same scale, Excalibur calculated that Bitcoin is trading at a 0.77 correlation to the Chicago Board of Options Exchange’s VIX index, which measures market volatility across equities (namely publicly-tradable stocks).

Explaining why the latter statistic, which highlights crypto’s correlation with the so-called “fear gauge” of the centralized financial realm, is pertinent, Vigna laid out a pertinent catalyst. The journalist drew attention to quantitative easing (QE) enlisted by global economic heavyweights, namely the U.S. Federal Reserve, that have “flooded global markets with liquidity,” while also decreasing benchmark interest rates to spur investments into riskier assets. As put by Vigna, “there is no riskier asset than a rebel currency (BTC).”

And with the Dow Jones, S&P 500, and Nasdaq all recently falling victim to the tumultuous action that Bitcoin faces every day, it becomes apparent why VIX has begun to line up with BTC’s fluctuations in value.

Alex Kruger, a prominent pro-Bitcoin economist, also made a statement about the relationship between QE and BTC in a recent Twitter thread. Kruger, based in Manhattan, New York, explained that QE was “partially responsible” for the birth and success of BTC. More specifically, the presence of QE sparked hate towards centralized bankers, while essentially encouraging consumers to siphon money into nascent/risky investment opportunities, such as cryptocurrencies and emerging markets.

But with QE starting to move away from the public spotlight, maybe volatility in the cryptosphere will begin to ease, especially Bitcoin’s value proposition as digital gold becomes realized.

Digital Gold

As mentioned earlier, in the recent influx of chaos into global markets, BTC’s price action has eerily begun to match up with that of gold. Although this could just be a coincidence, some have seen this as a sign that Bitcoin is truly becoming the digital embodiment of gold.

Per previous reports from Ethereum World News, Bobby Lee, the co-founder of BTCC and the brother of Litecoin’s Charlie Lee, took to Twitter to drop a few ‘knowledge bombs’, as it were. Likely referencing Bitcoin’s claim-to-fame as the digital equivalent of gold, and humanity’s de-facto go-to store of value, Lee explained that all BTC in circulation (market capitalization) is now one-hundredth the value of gold, a purported $8 trillion.

Keeping this relatively small valuation in mind, and his thoughts that Bitcoin’s unique nature as a scarce, borderless, uncensorable, and transparent store of value, the “defender” of Bitcoin alluded to the fact that over time, BTC could oust gold. And this most recent bout of correlation may be the beginning of Bitcoin’s trek to overtake the precious metal.

Title Image Courtesy of Michael Steinberg via Pexels

The post WSJ: Bitcoin (BTC) Trading In Step With Gold Amid Dow Jones Tumult appeared first on Ethereum World News.

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WSJ: Bitcoin Trading at Strong Correlation with Gold as Traditional Investors Step In

A Wall Street Journal has suggested that Bitcoin’s correlation with “traditional” assets markets has been high in recent days.

A Wall Street Journal (WSJ) article published today, Dec. 28, suggests that Bitcoin (BTC)’s correlation with traditional assets markets has been high in recent days.

Citing data from research firm Excalibur Pro Inc., the WSJ states that the top cryptocurrency has traded at a 0.84 correlation to gold over the past five days, where -1 indicates complete inversion and +1 perfect correlation. Moreover, Bitcoin has traded at a 0.77 correlation to the Chicago Board of Options Exchange’s Volatility index (VIX), a benchmark index for the United States equity market volatility.

While the WSJ frames the strong correlation between traditional markets and what the article dubs as the rebellious first cryptocurrency, Bitcoin, as something of an unexpected twist of fate, the article also offers several explanations as to why the pattern may have formed.

The first is the reported influx of institutional money into the crypto space, with the WSJ citing the growth of Grayscale Investments’ over-the-counter exchange-traded fund (ETF), the Bitcoin Investment Trust, as a prime example.

As per the article, the trust saw $51 million in assets under management (AUM) during its first year (2013). By the end of 2017, in the midst of the crypto market bull run, AUM had surged to around  $3.5 billion. As of recently — due to the so-called “crypto winter” — the trust reportedly retains about $900 million AUM.

Another factor proffered is venture capital (VC) investment. The WSJ reports that whereas in 2013, VC investment in Bitcoin and the blockchain sector was at around $96 million, this grew to $500 million in 2016 and to over $2 billion in all-time VC crypto investment through the end of 2017. The WSJ gives no fresh data for 2018.

As the article notes, a pull factor for traditional capital into crypto is the building of trading services and infrastructure with high regulatory compliance; the advent of crypto futures trading, and attempts to gain broad acceptance for crypto-based ETFs.

As reported, the crypto space continues to undergo far-ranging transformation; major developments on the horizon include the launch of the Bakkt Bitcoin futures exchange from Intercontinental Exchange, the launch of investment giant Fidelity’s digital assets business, and the continued influx of stalwart investors such as Yale, Harvard and Stanford Universities.

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Analysis: “Uncanny” Correlation Between The Long-Term Bitcoin And Gold Charts

“Uncanny Pattern Resemblance”

Since Bitcoin’s inception a decade ago, many have likened this decentralized digital asset to gold, with some dubbing Satoshi’s brainchild as a form of “digital gold.” This connection may be drawn due to the fact that the two individual assets are both stores of value, divisible, durable and secure.

Although there are similarities between the two assets that are as clear as day, as recently pointed by Nunya Bizniz, a lesser-known cryptocurrency proponent, there might be an “uncanny” line that can be drawn between the price action of gold and its digital counterpart.

On Thursday, Bizniz took to Twitter to bring up two separate charts, with the first being gold’s 43-year price history and the BTC’s price action throughout the entirety of its nine-year lifespan. Putting the charts (which are logarithmic/non-linear) side-by-side, it becomes apparent that there are clear parallels, or as Bizniz puts it, “uncanny,” even though the two stores of values may be inherently different at their core.

As seen in the tweeted image (above), the price action of both markets have seen similar bouts of exponential increases and subsequent ‘cooldowns’, leading some to ask if BTC is following in the footsteps of gold in some manner.

In a tweet posted just days after the original, the user brought up a zoomed-in chart of the two assets to back up the belief that they could be correlated. According to the tweet, if BTC is really following gold’s path, that could mean that the price of the foremost crypto asset could move under the ever so important $5,800 support level over the next few months.

However, as covered by Ethereum World News, Gabor Gurbacs, the director of digital asset strategy at VanEck/MVIS, claims that BTC could be worth upwards of $20,000 if it can succeed in a role as a primary form of digital gold. Gurbacs explained his prediction, stating:

Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside. Bitcoin is used as digital gold today. It’s a de-risk asset.

CryptoOracle Executive: Bitcoin Is Functionally Better Than Gold

Postulated price correlation aside, there are many that think that Bitcoin is actually superior to gold, as it has certain functions that make it an appealing investment, while also being functionally better than the yellow metal that humans have come to love over the course of written history.

As reported by Ethereum World News previously, Lou Kerner, co-founder and partner at CryptoOracle, “the first community-first crypto VC,” recently spoke with CNBC to reveal that Bitcoin may actually one-up gold in certain areas. Speaking on CNBC’s “The Coin Rush” segment, which holds a focus on cryptocurrencies and blockchain technologies, Kerner noted:

Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So we now we have something (Bitcoin) that we think may be functionally much much better. So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.

While the crypto asset proponent didn’t mention any specific drawbacks of gold or positive aspects of Bitcoin, it could be assumed that he sees Bitcoin’s ease-of-use, immutability, digital nature as reasons why some forward-thinkers would see value in the use of BTC.

Image Courtesy of Michael Steinberg @ Pexels

The post Analysis: “Uncanny” Correlation Between The Long-Term Bitcoin And Gold Charts appeared first on Ethereum World News.

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CryptoOracle Co-Founder: Bitcoin Is Functionally Better Than Gold

“Some Gold Users Will Likely Switch To Bitcoin”

Gold is one of the most valuable metals on Earth, with humans finding value in such an element for thousands of years. Over the course of gold’s history, it became a great way for individuals and groups to store value across a variety of settings, countries, and eras. However, with the advent of the internet and the subsequent introduction of Bitcoin, some proponents of digital technologies believe that gold’s time as the primary global store of value might be up.

Bitcoin has long been likened to gold, with many analysts and industry on-lookers alike drawing connections between the inherent nature of the two assets. Some have even called this emerging asset “digital gold,” due to the similarities it shares with the “original” gold.

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Yet, Lou Kerner, a co-founder and partner at CryptoOracle, has come out to vehemently state that Bitcoin actually may one-up gold in certain areas and qualities, while still complementing gold for its importance to human history. Speaking on CNBC’s crypto-focused “The Coin Rush” segment, Kerner stated:

Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So we now we have something (Bitcoin) that we think may be functionally much much better (than gold). So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.

This statement highlights two interesting points about Bitcoin’s role as a form of “digital gold.” Firstly, that Bitcoin may be inherently better than gold. While the CryptoOracle executive did not mention any specific values/features, it can be assumed that he sees Bitcoin’s ease-of-use, immutability, digital nature, and more as a reason(s) why some would prefer to use it over gold.

Secondly, the fact that the foremost crypto may begin to eat at the market share that gold has carved out for itself over thousands of years. As reported by Ethereum World News, Gabor Gurbacs, the director of digital asset strategy at VanEck/MVIS, claims that Bitcoin could be worth upwards of $20,000 a piece if the asset can succeed as digital gold. Gurbacs explained his prediction, stating:

Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside. Bitcoin is used as digital gold today. It’s a de-risk asset. Basically if someone wants to outlay systematic risk, then one would go to access gold or digital gold.

Back to the aforementioned CryptoOracle co-founder, who closed off his segment on CNBC, comparing Bitcoin to the “so-called” junk bond, as both assets were not accepted upon their arrival. In the case of the junk bond(s), it took 40 years to become a normal tradable asset/contract on the market. As Kerner alludes to, for Bitcoin, it might be much of the same, as it may take years to convince those who are hesitant to change that cryptocurrencies (and blockchain) are the next big thing.
Image Courtesy of Michael Steinberg @ Pexels


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South Korea: Police Raid Firm Whose Alleged Crypto Scam Promised Investors Shipwreck Gold

South Korean police have raided the office of a local firm whose alleged crypto scam promised investors the spoils of a sunken Russian warship, The Korea Herald reported August 7.

The Seoul Metropolitan Police Agency reportedly sent 27 investigators from its white collar unit to to collect evidence from the premises of Shinil Group in Yeouido, western Seoul, and seven other locations on Tuesday.

In mid-July, Shinil had released submarine footage of what it claimed was the wreckage of the Dmitrii Donskoi, an armored Russian cruiser that sank in 1905 in the midst of the Russo-Japanese war, alleging it had been found beneath the waters off Ulleung Island, east of the Korean peninsula, The Korea Herald writes.

Meanwhile, Shinil’s Singapore-based affiliate is said to have enticed investors to purchase the firm’s own cryptocurrency, Shinil Gold Coin, based on the rumored value of the shipwreck. The company allegedly exploited circulating claims that the ship had gone down with 200 tons of gold worth 150 trillion won (around $134 billion).

At a subsequent press conference, Shinil admitted the reports were unverified, adjusting the figure to 10 trillion won (around $9 billion). At the same time, the firm is alleged to have submitted an internal document to the maritime ministry for excavation approval that estimated the spoils at just 1.2 billion won (around $1 million), The Korea Herald writes.

The firm allegedly further promised investors that the value of the Shinil Gold Coin would skyrocket from its current 200 to 10,000 won (around $0.18 to around $9) by the end of September.

According to a local news report August 1, Shinil Gold Coin has raised 60 billion won (around $54 million) in investments from around 100,000 investors since its launch. Shinil CEO Choi Yong-seok been banned from leaving the country as the investigation continues.

As Cointelegraph previously reported, authorities are also pursuing the head of the firm’s Singapore-based affiliate, Yu Ji-beom, who allegedly created a crypto exchange dubbed Donskoi International and spread posts about the shipwreck on social media. According to his acquaintances, Yu has previously been convicted of real estate fraud and has fled to Vietnam to elude the investigation.

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Bitcoin Will Flash Dump then Moon, Says Veteran BTC Analyst Willy Woo

Veteran digital analyst, Willy Woo, correctly predicted back in late May, that Bitcoin (BTC) would test levels below $6,000 before any signs of recovery would be seen in the markets. Back then, he did not see BTC holding the $7,000 price level and had this to say:

I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.

Woo would also add that BTC was less likely to drop below $5,000 during that time period.

I don’t necessarily think we’ll fall through the 5000s… sure it’s a possibility but it doesn’t have to. It’s not a repeat, it’s not Mt Gox and Willybot pushing up price with faked orders, we aren’t detoxing from a scam bubble. Technically $5000s is a very strong support band

Sure enough, BTC fell to its lowest value this year on June 29th when it was valued at approximately $5,800 – $5,900. Three weeks later, BTC has been soaring at levels above $8,000 since last Tuesday, July 24th. However, these values have been short lived for BTC has dropped to the current value of $7,615 in a period of just 2 days.

The Flash Dump then Moon

Willy Woo has once again predicted that Bitcoin will probably continue to decline in value due to a flash dump. When this is done, BTC will moon just like Gold did during the Wallstreet Financial Crisis of 2008. Mr. Woo made this comments via twitter when he stated the following:

Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.

He would also add that its performance is contingent on institutional investors buying BTC.

Probably also contingent on how many institutional players are in the BTC market over that period. Normal retail HODLers won’t tend to have large leveraged positions to unwind from, apart from maybe mortgages.

The full tweet can be seen below.

Willy Woo has also advised how to trade in a bear market. He stated that:

When in bear, stay in USD as a base currency, then short (and long with extra care). When in bull stay in BTC and do vice versa.

Mr. Woo has on many occasions preferred to use the NVT signal/ratio to analyze the future of BTC. Standard NVT Ratio is simply the Network Valuation divided by the Transaction Value flowing through the blockchain and then smoothed using a moving average. NVT Signal then applies the moving average to only the transaction value. The signal is the work of Willy Woo and Dimitry Kalichki.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.


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Blockchain Platform to Allow Users to Trade Gold for Virtual Currencies

A company is creating an ecosystem where tangible assets such as gold can be traded for virtual currencies in a digital environment.

The platform, known as the Digital Gold Exchange (DGE for short,) says it has the goal of establishing a place where users can securely store their assets and trade with others “quickly, safely, and without intermediary intervention.”

It is designing a blockchain-based ecosystem which it hopes will allow individuals and companies to join – trading without borders wherever they are in the world.

Although gold is going to be a primary focus for the platform, DGE’s white paper says the company eventually plans to expand to other precious metals including diamonds, platinum and white gold. The company aims to make changing gold into tokens a fast experience, with conversion rates that are based on the official market prices listed on gold exchanges in South Korea and around the world.

According to DGE, one particular focus has been developing a trade system that is easy to understand, well designed and not too dissimilar from the payment processing systems commonly used on e-commerce sites – making its platform accessible and usable for customers from a range of age groups.

Partnerships established

Digital Gold Exchange says it has established partnerships with recognizable brands – and these agreements will result in a “stable and reliable ecosystem.”

According to the company, its first exclusive contract was signed in February with the Korea Gold Exchange 3M,  the country’s largest gold merchant.

In March, an agreement was reached with Happy Money, a brand whose gift cards can be used to make purchases on more than 500 brands in Korea. Under this deal, users will be able to exchange coins for these vouchers, which are accepted in book stores, restaurants, cinemas, music shops, coffee houses elsewhere.

The team behind the project says it is optimistic that these partnerships will continue to increase over the coming months.

The elements of the ecosystem

DGE says there are three main elements to its project. The first is a utility token known as TMTG, which stands for The Midas Touch Gold.

Although this token is not pegged to tangible assets such as gold, it can be used for purchasing other cryptocurrencies on the Digital Gold Exchange.

The ecosystem is also going to offer another token known as MDG. This can be bought on the DGE using TMGT tokens and is only tradable on this platform. Pegged to 1g of gold as a certificate, it can be traded to real gold at any time.

Finally, the platform tying these two tokens together is the Digital Gold Exchange, with a white paper describing it as having a “pivotal role in the ecosystem.”

A presale for its tokens was held in three stages throughout May and June, and this was followed by an initial coin offering which ran from July 10-25.

The company is aiming for its tokens to be listed on a number of coin exchanges over the coming months, beginning with IDCM on August 1 and Coinsuper Exchange on August 16. By February 2019, it is hoped that diamond trading will also commence.

DGE claims that its offering stands out from other forms of virtual money because its tokens “could bring value to the everyday lives of many people,” unlike firms that have launched cryptocurrencies without actually considering what they should be used for.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.