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After a Catastrophic Week, Crypto Markets Rally Forth Into the Green

August 9: The summer crypto rollercoaster continues, as the market sees a healthy rebound into the green after sustaining major losses yesterday.

On August 8  total market capitalization had shrunk to $219 billion –– its lowest level since mid-November 2017. In today’s upward bounce, virtually all of the major cryptocurrencies have posted gains, as data from Coin360 shows.

Market visualization from Coin360

Market visualization from Coin360

Bitcoin (BTC) is trading at a solid $6,500 at press time, up around 3.2 percent on the day. The leading cryptocurrency shot up around $300 within the space of two hours earlier today, from $6,229 to $6,528. Having since slightly corrected downwards, the coin is nonetheless trading $330 higher at press time than its 24-hour low at $6,144. Bitcoin’s weekly losses however remain at a stark 14 percent, with a more modest 3.5 percentage loss on the month.

Bitcoin’s 24-hour price chart

Bitcoin’s 24-hour price chart. Source: Cointelegraph Bitcoin Price Index

While today’s sprightly uptick may assuage some edgy crypto nerves, Dogecoin creator Jackson Palmer has been eyeing the recent plummeting markets, which many attributed to U.S. regulators’ announcement August 7 that they would be delaying their decision over whether or not to approve a high-profile BTC exchange-traded-fund (ETF).

In a thread of tweets this morning, Palmer pointed to data showing declining daily transaction rates for Bitcoin, Ethereum (ETH) and Ripple (XRP), as well as a downtrend in decentralized application (dApp) usage, as more noteworthy indicators of the “fragility” of the space.

More optimistically, Litecoin (LTC) creator Charlie Lee said in a tweet today that he considers the bear market to be “the best time for people to work on adoption.”

Ethereum (ETH) is currently trading around $363, up around one percent on the day to press time. The altcoin’s intraday spike closely correlated with that of Bitcoin, as it jumped up from $352 to $367 within two hours. Ethereum’s losses on its weekly chart remain at around 11 percent, with monthly losses pushing 24 percent.

Ethereum’s 24-hour price chart

Ethereum’s 24-hour price chart. Source: Cointelegraph Ethereum Price Index

On CoinMarketCap’s listings, all of the top twenty coins by market cap, except one, are in the green, seeing solid gains within a 1 to 9 percent range.

Cardano (ADA) is the strongest performer among the top ten, seeing around 8 percent in growth to trade at $0.12 at press time.

Stellar (XLM) and EOS (EOS), and IOTA (MIOTA) are also seeing solid gains, all up 4-7 percent on the day.

Among the top twenty coins by market cap, Ethereum Classic (ETC) is the only alt in the red, the first day it has seen losses after a strong bull run all week that defied the wider bear market. After riding a wave of positive momentum triggered by news of its August 7 listing on popular U.S. crypto exchange and wallet service provider Coinbase, the alt has dropped slightly by around 2 percent today to trade at $15.04 at press time.

Ethereum Classic’s 7-day price chart

Ethereum Classic’s 7-day price chart. Source: CoinMarketCap

Tezos (XTZ) –– ranked 18th –– is up a bullish 6.22 percent on the day to trade at $1.65 at press time. This strong growth comes despite the project’s latest setback in an ongoing securities class action against its controversial $232 million Initial Coin Offering (ICO) in an American court this week.

Tezos’ 24-hour price chart

Tezos’ 24-hour  price chart. Source: CoinMarketCap

Total market capitalization of all cryptocurrencies is around $228.6 billion at press time, up over $9 billion from yesterday’s aforementioned $219 billion low.

7-day chart of the total market capitalization of all cryptocurrencies

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

As the dizzying vagaries of the crypto markets leave some reeling, a team of financial experts from Yale University have this week suggested a system of factors to predict price trends in major cryptocurrencies.

They found that cryptocurrencies “have no exposure” to most common stock markets, nor to returns of currencies and commodities and macroeconomic factors. Instead, they identified crypto-specific patterns, including a “strong time-series momentum effect” among major assets such as Bitcoin, Ethereum and Ripple, as well as a correlation between price and investor attention, which they deduced via social media and search engine trend analyses.

Commenting on this “investor attention,” Pantera Capital CEO Dan Morehead today said that crypto markets have recently witnessed something of an overreaction from investors in response to short-term news, such as the SEC’s Bitcoin ETF delay.

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EOS Blockchain Back Up and Running Again After Yesterday’s ‘Pause’

The recently launched EOS blockchain has resumed operations today, June 17, after “pausing” due to technical issues on June 16, according to the EOS network monitor.

The EOS network monitor is currently showing that EOS block producers (BPs) – the equivalent of miners on the Bitcoin blockchain – are “producing right now.”

Yesterday, multiple sources reported an issue with the EOS Mainnet, or blockchain, that led to network operations “freezing” less than 48 hours after officially going live. The blockchain went live just under a week after candidates to become EOS BPs voted to go live on Saturday, June 9.

A Telegram channel of dedicated to tracking the status of EOS’s Mainnet reported yesterday that following the pause, Block Producers and “many Standby Nodes” had a conference call to detect and fix the issue. Around four hours later the Telegram channel reported that the Mainnet was live.

Regarding Saturday’s “pause,” Dogecoin creator and crypto commentator Jackson Palmer tweeted that the situation was “making it hard not to be critical” of the well-funded EOS protocol and the community that supports it.

On June 1, EOS completed its year-long Initial Coin Offering (ICO), raising an estimated $4 billion to become the world’s largest ICO to date. EOS is currently the 5th largest cryptocurrency, with a market cap $9.4 billion, according to CoinMarketCap. The coin is trading at $10.53, up just shy of 0.5 percent over the past 24 hours to press time.

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Dogecoin’s Creator Jackson Palmer: 2018 Is Shaping Up To Be The ‘Year Of The Fork’

Known to the crypto community as the creator of Dogecoin, Jackson Palmer,  product manager at Adobe by profession and coder by passion,  told Cointelegraph how he sees the future of the cryptocurrency, started as a parody and broke the $1 bln market cap in the beginning of 2018, shared his thoughts on the cryptocurrency community, and disclosed some plans for the future.

Being the one behind the idea of Dogecoin when it launched in 2013, however, Jackson made explicit his dislike for some parts of its community and culture in the following years. He started stepping back from the project in late 2014.

Cointelegraph: Looking back at the whole thing, can you tell if it was ultimately worth it?

Jackson Palmer: I started stepping back from Dogecoin and the community after a scammer, who I and others had been trying to call out as dangerous for a while, finally ran away with a lot of money from the community. Anyone who dared to raise suspicion of this character prior to that point would face a lot of criticism and negative energy online, myself included – so I’d already kind of been shouted out of the community in some sense.

This really taught me the power of greed and how many people are willing to see movements like cryptocurrency through rose-tinted goggles so long as they’re making money. Self-reflection and skepticism is at a low during these periods of mania. After our suspicions were unfortunately proven correct, I honestly just didn’t have a strong incentive to return to the fractured community in a meaningful way given everything I’d witnessed, so I stepped away entirely and handed over the keys to the Github repo etc.

Assessing whether it was “worth it” is hard… I think Dogecoin represents a good case study and hope it is utilized as a learning experience to reflect on for anyone in or newly entering the cryptocurrency space. If simply its existence or its story can help bring some more rational, fact-based thought to the hype-fueled crypto industry then I think that’s worth it.

CT: Despite not participating in the project directly anymore, do you still see a future for Dogecoin?

JP: I think we’re rapidly racing towards an over saturation of cryptocurrencies, crypto-assets and tokens, to the point that their value and inherent utility inversely approaches zero. 2018 is shaping up to be the “year of the fork” and with each fork of the original Bitcoin code I feel like every other crypto-token is slightly dissolved.

Even if just from a consumer perspective, it’s very confusing. Dogecoin is ultimately just another fork of the Bitcoin source code, which changed up the variables slightly. From a purely technological standpoint, anyone could fork that and “improve” it tomorrow by further tweaking the variables – so I think its “future” is the same as every other distributed ledger out there… pretty uncertain, easily disrupted and definitely not in a unique advantageous position to succeed.

CT: Any idea what the current core devs are working on?

JP: The devs are working on a new release that essentially brings the code base up to date with the Bitcoin code base, which Dogecoin has always ultimately been derived from. This release includes mostly under-the-hood performance and security improvements, which are important given the last major release was back in 2015.

New projects

As for Jackson himself, he is currently working as group product manager at Adobe and recently launched a YouTube channel where he uploads educational videos on cryptocurrencies and related topics.

“My YouTube channel is mostly a passion-project to try and share the learnings I’ve personally accrued over the years. With 2017 bringing back a resurgence in interest in cryptocurrency I was facing a lot of questions everyday from friends and strangers alike. Rather than repeat those conversations over and over, I’ve found it useful to record my thoughts and share them publicly in video format.

In the process, we’ve built a fun community of people who are passionate about the technology behind cryptocurrency and I really enjoy their shared objective thinking and skepticism about all of these projects. The channel has brought people together in pursuit of education, and I’m really proud of that. Shout out to my subscribers and amazing supporters on Patreon!”

Crypto community

Jackson keeps following the crypto community and comments important events in his Twitter. Commenting about the way crypto industry has been developing in recent years Jackson mentioned how sad he was about the way it’s moving right now. “Sadly, I think many of the negative traits that were present in the space back in 2013 have only been amplified in the 2017-18 cryptocurrency community. The bulk of recent interest in the technology was not driven by its ability to solve real-world problems or provide actual utility to users – rather it was purely driven by the pursuit of making a quick buck. Obviously that’s not sustainable, but we’ve seen literally thousands of projects spun up to try and exploit the attention that greed has brought in.”

Several times Jackson even expressed his dislike how much the crypto community loves easy money – the spirit that seems to be stronger than ever these days.

“I think it’s critical that distributed ledgers and Blockchain technology move from being a novel technical solution in search of a problem to actually providing value back to society, outside of making a few early adopters rich.

This is going to require a large cultural shift in the community, a weeding out of blatant scams and a refocusing of development away from complex, shiny objects to simple, practical solutions to actual problems. The long-lasting, meaningful technologies in this world are those which better humanity, not those which put a few lucky kids in Lamborghinis.”

CT: And here comes the goofy question: are you a dog or a cat person?

JP: Dogs, definitely. Cats really seem to dislike me for some reason.

Jackson Palmer, along with other opinion leaders of the crypto industry, will be attending Global Blockchain Forum, which will take place in Santa Clara, US, on April 2-3, 2018. Cointelegraph will participate in the event as a media partner.

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Bitcoin’s Less Valuable Spawn: Top Six Most Ridiculous Altcoins

While Bitcoin may be the granddaddy of digital coins, it has spawned hundreds of alternatives. Some of them are getting close to contesting Bitcoin, such as Ethereum, and some have real world application and tweaks, like Ripple, Litecoin, and Dash.

However, the ICO boom has spread to the ridiculous and the absurd, birthing a host of coins that are either a parody, a joke, or just downright pointless. However, the nature of ICOs and the hype for anything Blockchain-related has seen some of these ridiculous coins rack up a fair amount of value.

Dogecoin

One of the more famous ‘pointless’ coins, Dogecoin is a meme coin based on doge, the Shiba Inu dog.

It was originally conceived as a joke: combining digital memes and digital coins. However, enough people enjoyed the concept that it soared in value shortly after release, hitting a market cap of $130 mln. Dogecoin was created by Jackson Palmer, a group product manager at Adobe, and Billy Markus, a software engineer at IBM, “without much real thought.”

WhopperCoin

WhopperCoin is a fairly recent release, and it was touted as proof that digital currencies were spreading into the mainstream as Burger King Russia decided to use the Blockchain for its loyalty program. Each time a customer spent one ruble, they would receive a WhopperCoin. Once 1,700 coins were accrued, they could be traded for a burger. Head of external communications at Burger King Russia, Ivan Shestov, opined:

“Now Whopper is not only [a] burger that people in 90 different countries love — it’s an investment tool as well.”

PotCoin

Potcoin had legitimate reasons for coming into existence, helping move the marijuana industry, which operates between being legal and illegal in different space, to a more global space.

The idea was that PotCoin could be used to facilitate transactions within the cannabis industry. PotCoin was the original, but since then more digital currencies have moved into the space.

Unobtanium

Fans of the film Avatar might be familiar with the premise that Unobtanium is based on, since it was inspired on the rare mineral in the Hollywood Blockbuster. Unobtanium was intended to be the rarest cryptocurrency in the world. Only 250,000 coins (UNO) will be mined over the next 300 years.

It current market cap sits at $11 mln.

Coinye

A true parody coin, Coinye was known as Coinye West, styled after the famous rapper, Kanye West. The cryptocurrency was quickly shut down in 2014 after West filed a cease-and-desist order, suing a large group of defendants for unspecified damages.

The lawsuit caused the coin’s developers to change the appearance of the coin’s logo to an even less flattering likeness of the rapper – styling it on South Park’s interpretation of West.

Putin Coin

The famous and enigmatic Russian President has spawned a following that extends to digital coin creators. Putin Coin has only been in existence since 2016, but it has managed to hit a market cap of $2.5 mln.