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Here Is How Market Liquidity Is A Better Way Of Ranking Cryptocurrencies Than Market Capitalization

Ranking cryptocurrencies based on their market capitalization does not do justice to the popular coins that are moving huge volumes per day through trading. Market cap is simply a product of the circulating supply of a coin and its current value. This means that a lot of other statistical data is left out including a coin’s market liquidity. The latter is defined as the extent to which the crypto market, allows assets to be bought and sold at stable prices. This then brings us to the concept of trade volume.

If a coin is experiencing high trade volume, this demonstrates investor interest in the underlying project represented by the digital asset. Conversely, if a digital asset has a low trade volume, there is not much interest in the project. The coin might have a high market cap but there aren’t actually many sellers and buyers, just a large percentage of holders.

With the assumption that trading volume acts as a proxy for market interest, we thought it would be an interesting exercise to test whether strong positive and negative outliers could be found when comparing a coin’s market capitalization with its 30-day trading volume.

The base hypothesis is that if a coin trades more of its market cap in volume, it’s a sign of a lively marketplace and high interest in the coin. Such markets allow for the quick purchase and sale of assets by individual firms without causing a drastic change in the asset’s price. However, if a coin’s trade volume is a small percentage of its market cap, it’s far more prone to intense fluctuation as there are often not enough buyers or sellers to cover major market moves. A better illustration of this can be found in the infographic below.

What this means for institutional investors is actually quite significant. Projects that trade at a low ratio to their market cap won’t be able to support high volume movements, as individual orders will have the ability to cause 10-20% price changes. This means whales will struggle to either buy or sell large amounts of low-volume coins at the prices they initially enter their trades with.

We found that several of the most established coins, such as Bitcoin (BTC) and Ethereum (ETH), traded at a volume similar to their market cap over the course of a month. This was expected. It shows relative stability and balance in interest from investors. However, there were significant differences when other coins with a lower market cap were explored.

Coins like IOST, Nebulas (NAS) and EOS have a considerably higher trade volume when compared to other top coins. IOST’s trading volume topped out at a whopping 7 times its market cap. (Note: We excluded Huobi Token (HT) as it is used to buy and sell other cryptocurrencies on the Huobi Exchange. This in turn could have skewed the data).

Conversely, coins like RChain (RHOC), Augur (REP) and NEM had extremely low liquidity. We found that it would take 14 months of trading to cover the equivalent of RChain’s market cap. Surprisingly, seemingly popular projects including Stellar and XRP came in on the low end of our research, which may point to an imbalance between the brand awareness and the actual interest in owning and trading the coins.

In conclusion, ranking cryptocurrencies using market capitalization does not entirely give a clear picture of what is being traded in the markets and its volume. A more inclusive approach would be to examine how long a digital asset takes to trade the equivalent of its market cap. This in turn would provide information as to what digital assets are more liquid than others. In the case of IOST, it has proven to be more liquid than the prominent cryptocurrencies of Bitcoin and Ethereum.

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IOSToken (IOST), Ethereum Classic (ETC) and NANO are Top Performers In The Last 24 Hours

The cryptocurrency markets are showing some signs of much needed life following the Bithumb hack that rocked the crypto-verse early Wednesday morning. Many crypto traders noted that Bitcoin (BTC) managed to hold its own this time round during the hack. The King of Crypto only decreased in value by 1.3% and has since continued to rise to current levels of $6,769: an increment of 1.72%.

With the stability of Bitcoin (BTC), the total market capitalization has increased by around $10 Billion from levels of $282 Billion only yesterday, to current levels of $290 Billion. It is a huge step forward in the much needed market recovery.

In the past 24 hours, a few major cryptocurrencies have led the rest in impressive gains.

IOSToken (IOST) is one of the digital assets that has performed well in the last 24 hours. The token had earlier peaked to levels of $0.033 before settling to current levels of $0.0313. IOST has increased by 6.42% in the last 24 hours and helped the crypto markets gain the much needed volume for a recovery.

IOST performance in the last 24 hours. Source, coinmarketcap.com

Ethereum Classic (ETC) has also been doing pretty well since Coinbase added the coin to its list of digital assets on the platform. The coin is currently trading at $17.09 and up 13% in the last 24 hours. Nano (NANO) has also shown tremendous improvement in the last 24 hours. The coin is currently up 10% in the same time period and currently trading at $2.97. Basic Attention Token (BAT) is also outshining the rest with a 12.55% increment in the last 24 hours. The token is currently valued at $0.277.

Summing it all up, the cryptocurrency market seems to be experiencing a recovery that might be tested as we inch closer to the weekend. The hacks on both Coinrail and Bithumb seemed to have not scared away all the investors in the crypto-verse.

Dr. Robert Statica, who is an expert in cyber security as well as cryptocurrencies and blockchain, was asked by Ethereum World News about the effects of the two hacks on the future of the crypto-markets. One question many crypto-traders have been asking, is if the repeated hacks will scare the institutional investors from making an entry into the industry.

Dr. Statica would offer his opinion on the above issue by saying the following:

Institutional investors are familiar and comfortable with a certain level of risk. But definitely they will think twice before putting all their money into a single exchange. Anywhere between 2-5 exchanges is probably a safer place to be.

He is also the CEO and President of BLAKFX: an advanced blockchain project that has the potential of changing the lives of almost 3 Billion people that are currently unbanked. The project will do this by allowing them to enter the world’s economy, banking and payment systems.

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IOSToken (IOST) Partners With Alibaba Cloud (Japan), Simplifying Blockchain On The Cloud

The IOSToken (IOST) project is making major strides with the recent partnership with Alibaba Cloud’s computing company in Japan known as SB Cloud. The latter was co-founded by one of Japan’s largest Telecom Operators, Softbank, and Alibaba.com. SB Cloud’s main aim is to provide cloud computing services and solutions for Japanese Companies. The company also caters for start-up and Multi-national companies in the country.

IOST Co-founder, Sa Wang (second from left) and SB Cloud Director Yao Meng (left one) and other executives. Source, IOST

This is why the partnership is significant in that IOST will have a platform to showcase blockchain technology on the cloud. Blockchain and cloud computing is a recent on-demand trend that many companies are exploring. Another company adopting the trend include American cloud computing giant, Amazon Web Services (AWS), that launched Blockchain Templates back in April. The aim of AWS in this endeavor, is to make it easier for developers to create blockchain projects by using pre-set frameworks on AWS that support both Ethereum’s and the Linuz Foundation’s Hyperledger Fabric.

The reason for this AWS analogy, is to relay the magnitude of the SB Cloud and IOST partnership. SB Cloud will provide IOST’s blockchain technology and products to the business enterprise users it serves. By having blockchain technology on a cloud computing platform, users will have access to a flexible, cost effective avenue to quickly launch and use IOST’s blockchain technology in a short period of time.

IOST blockchain technology can not only help traditional industries solve the pain points of IT construction effectively, but also save time – as earlier mentioned – and cost. IOST blockchain technology will also solve the waste caused by equipment expansion since the network is decentralized. Another benefit of decentralization, is that IT equipment failure, will not affect the entire network as was seen with the VISA services outage in Europe just a few days ago.

This is why the partnership between IOST and SB Cloud will be a powerful combination of blockchain and cloud computing technology to the level of competing with AWS. With the partnership, IOST will also have a ready launchpad to expand in Japan: a country known to have over 3.5 Million cryptocurrency traders and HODLers.

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Here Is Why IOSToken (IOST), Zilliqa (ZIL) and Tron (TRX) are Fan Favorites In Q3 of 2018

The second quarter of 2018 is coming to a close and we only have 22 days till the second half begins, and with it, the third quarter of 2018. The past few months since December, have been an exciting time for the crypto-verse with events such as the market peaking, then dipping like never seen before; to projects like Tron (TRX) overcoming FUD as well as Zilliqa (ZIL) introducing sharding. IOSToken (IOST) has also emerged during this time period, as the solution to the internet of services question and how to make it more secure and scalable for online services.

All three projects and cryptocurrencies have been identified as possible Ethereum ‘killers’, but now let us focus on these three and why they should be on our radar as we inch closer to Q3 of this year.

So what exactly is IOST?

The IOST project has been closely followed by its loyal fans since last December and has gathered a lot of following amongst the Crypto-community. The vision of the project is to build a secure and scalable blockchain for smart services. When complete, the IOST ecosystem will be capable of hosting different kinds of services as well as innovative new business models that weren’t previously feasible.

It will achieve this through providing the aforementioned scalable, secure and decentralized blockchain platform that will be the preferred choice of Decentralized Application developers who will use it to create, innovate and build their next big ideas.

The project is impressively building a strong and vibrant IOST community that will be essential in building a successful blockchain infrastructure moving forward. The project has gained significant growth internationally in not only China, but also San Francisco and Singapore. The latter office recently welcomed new experienced members to the team.

What about Tron (TRX) and Zilliqa (ZIL)?

Tron and Zilliqa are both very ambitious projects in the crypto-verse. Tron aims at decentralizing the web on the blockchain and to become the choice platform for Decentralized Applications in the process. It also aims at becoming the most secure, stable and scalable platform; and to recapture top 6 coin glory again according to market capitalization.

Zilliqa on the other hand aims at transforming the way smart contracts are writen by introducing the Scilla programming language as well as the concept of Sharding to further scale transactions on the platform. This is a welcome revolutionary vision by the team at Zilliqa.

So why have these three cryptocurrencies and projects on your radar in Q3?

Firstly, all three projects solve the issue of scalabilty that has been plaguing the Ethereum platform. Both Zilliqa and IOSToken introducing sharding which is the division of the mining network into smaller shards each capable of processing transactions in parallel. However, with IOST sharding, the project introduces Efficient Distributed Sharding which makes the shards sufficiently large and strongly bias-resistant via a combination of a client server randomness scavenging mechanism and leader election via cryptographic sortition.

With respect to Tron, the MainNet will achieve 2,000 transactions per second which is 80 times faster than that of Ethereum.

Secondly, the Tron MainNet is currently live and testing will be complete by the 24th of June and just in time for the third quarter of 2018. The ZIL MainNet is also scheduled for launch in the third quarter of 2018. With respect to IOST, the MainNet is still in development with regular updates by the team as we complete the second quarter of 2018. All these projects have dedicated team members who will ensure the MainNets are released as scheduled with products that were promised in their whitepapers.

Thirdly, all these three projects are lucky in that they were founded and initially based in China and Singapore. Both TRON and IOST have their roots in China with Zilliqa has its roots in Singapore.

Therefore, the projects stand to benefit from the recent embracing of Blockchain Technology by the Chinese Government as outlined by the Chinese president, Xi Jinping who was quoted as saying:

A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications.

This statement by President Jinping is the much needed motivation for any blockchain project in the region. China had initially placed a ban on cryptocurrency trading and ICOs. These statements by President Jinping are a clear indication that we are at the cusp of a change in attitude by the Chinese government towards the industry and possibly embracing it completely.

With respect to the crypto-market value of IOST, TRX and ZIL, all three are decently priced at under a dollar. IOST is currently valued at $0.038; ZIL is valued at $0.12; and TRX currently trading at $0.057 at the moment of writing this. With three projects having exciting road-maps in addition to the factors outlined above, the value of these digital assets is sure to go up as soon as their MainNets are 100% operational.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The 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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Zilliqa (ZIL), EOS, NEO and IOST; the Ethereum Competitors Gaining Ground

Ethereum (ETH) is the pioneer platform for smart contracts. The team and project has weathered so many storms in terms of FUD, security issues on the platform and congestion on the network due to Crypto-Kitties. One event that almost toppled the Smart Contract giant, was the discovery of vulnerabilities in the smart contracts on the platform. The research that was carried out, noticed around 34,200 smart contracts that were vulnerable to exploitation by rogue hackers or even ETH miners.

Concurently, there were 4 other projects tackling the industry of smart contracts and have been working tirelessly to improve on what was started by Ethereum.

Zilliqa (ZIL) is one such project with smart contract capability. It also solves the scalability issue that caused the Crypto-Kitty debacle by introducing sharding. This concept divides the mining network into shards that can process transactions in parallel. As the network grows, so does the through-put in terms of transactions per seconds.

ZIL has been doing tremendously well in the markets since its introduction. Only a month ago, ZIL was priced at $0.038. Now the token is valued at $0.162 – a gain of 326% – as ZIL fans anticipate the release of the MainNet version of the platform later this year.

EOS (EOS) is also hot on the heels of Ethereum, not only in the smart contract industry, but also in terms of market capitalization. EOS is slated to release the MainNet of its blockchain at the beginning of June. This has propelled the token to the number 5 spot on coinmarketcap.com, and edging out Litecoin in the process. Although the difference in marketcap between ETH and EOS is a cool $60.63 Billion, EOS can gather enough momentum to catch up to ETH with the release of a solid MainNet.

Neo (NEO) is a third project that is gunning for Ethereum’s dominance in terms of smart contract capability. The selling point for NEO is that developers do not need to learn a new programming language as is the case with Ether’s solidity. The developesr can use C#, Java and other mainstream programming languages.

Based in China, NEO has had some brilliantly good days in the crypto-markets by having a taste of greatness when it peaked to a value of $194 on January 15th. It is currently valued at $68 and up 5.90%. NEO currently has a new project at hand called the NNS (Neo Name Service) that will allow for the replacement of wallet addresses with words or phrases. Users can also create .neo domains that can be used instead of public keys as a receiving address when making NEO transfers.

The underdog in this list and the least known is IOStoken (IOST). The cool thing about IOST is that it also offers smart contract capability and sharding just like Zilliqa. But that is where the similarities end. IOST has the added aspect of being able to run on light weight infrastructure such as smart phones. This means it is also gunning for IOTA, which has similar IoT capabilities, as well as Ethereum. This is some cool stuff.

The IOST project defines itself as the Internet of Services that offers a secure and scalable infrastructure for online services providers. It has a high throughput that has been rumored to run up to 100,000 TPS made possible through the sharding capability of the network.

IOST is currently under 10 cents and trading at $0.06 at the moment of writing this and up 6.54% in 24 hours.

In a nutshell, Ether can be credited as being the pioneer of smart contracts and being first in market with this respect. But there are four equally capable projects that are gunning for the spotlight in that industry. Time will be a factor as to which of the above four projects will make an impact similar to, or greater than Ether in the Crypto-verse. .

[Photo source, the-blockchain.com]