SFOX Inc., which operates as a cryptocurrency prime dealer, released the Crypto Volatility Report for March 2019. The report predicted that BTC’s price uncertainty could drive volatility high. BTC’s price surged by 25% in just two days from $4,089 to $5,089 without a concrete explanation, the report claimed.
Taking into account the 2017 rally as a substantial indication, SFOX detailed that the sharp price movements of the largest crypto asset, not induced by specific reasons, could potentially generate higher uncertainty in the market, which in turn would push volatility upwards.
The report elaborated that the volatility movements exhibited by top altcoins like LTC, BCH, and ETH were not related to Bitcoin and stated,
“.. that the industry at large may be growing beyond BTC.”
Bitcoin Cash [BCH] rallied 18% in two days. Despite the reason speculated behind the spike being a certain announcement associated with the chain’s hard fork by the end of this year, the report cited that it did not seem to be an evident cause for the abrupt spike.
The report went on to say that the BCH rally in March was most likely one of those “spooky rallies” that could not be directed to any specific reason as the asset recorded a significant trading volume at LBank during the month. This was the same trading platform that came under scrutiny for “potentially faking a significant fraction of their alleged trade volume”.
Litecoin’s [LTC] rally and subsequent price doubling for 2019 was attributed to its adoption spree, lower fees, efficient transactions, an exploration of private transactions, and the approaching LTC halving, mentioned the report. According to the SFOX, LTC’s volatility decreased substantially with prices residing to the range of $55 – $61.
Ethereum Classic [ETC] became more volatile from the beginning of the month. The report cited,
“This may be a function of increasing uncertainty about the future of this particular blockchain: on the one hand, ETCLabs’ renewed focus on Dapp development [especially Dapps focused on the Internet of Things] has some believing that ETC may be a currently undervalued platform for powering the next evolution of internet technologies.”
The latest 51% attack on ETC, and Anthony Lusardi resigning from prominent ETC roles were also believed to be the cause of volatility.
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Zcash’s revolutionary blockchain hits first fork in the road; Adamant Capital Founder questions move
Zcash, the privacy-centric cryptocurrency project, swiftly stole the Libra’s limelight and switched the debate from payments and fiat-backing to blockchain technology and scalability. Lofty ambitions of Zcash aside, the Electric Coin Company’s [ECC] new blockchain has not convinced everyone in the community just yet.
Tuur Demeester, Founding Partner at Adamant Capital, shared his opinion on Zcash’s new crypto-adventure, much to the dismay of the larger ZEC community. He detailed a list of points surrounding the new project which, in his opinion, “sound horrible.”
Citing a report by Decrypt Media, Demeester highlighted flaws with respect to scalability, similarities in the crypto’s roadmap with other projects and the issue of “sharding.”
Nathan Wilcox, in the aforementioned report, had stated that the new blockchain was developed to make ZEC available to 10 billion customers by 2050; hence, the noted infrastructural improvements to the network. Coupled with the prospects of introducing sharding to “speed up transactions,” a switch was necessary.
Demeester’s primary issue with Zcash’s new blockchain is the introduction of a new coin, following the “implicit admission” that the coin they had, ZEC, was “never scalable” and a jibe at the privacy aspect of it, which the coin’s backers tout often. The lack of privacy transactions usage was described by many as one of the “biggest problems” for Zcash. This was because by default, transactions on Zcash are not set to “private,” unlike Monero [XMR]. In fact, less than 2 percent of all transactions are “fully anonymous.”
The Adamant Capital Founder highlighted its roadmap similarities with Ethereum, especially on the subject of sharding in the blockchain.
Finally, the report, citing Wilcox’s words, said that the ECC and the Zcash Foundation will stop receiving funding from mining rewards in 2020, while not mentioning how the development funding for the new project will come about. Demeester, in his final point of criticism, mentioned this as a “subsidy for ZEC Foundation.”
His full reply stated,
This sounds horrible to me:
– entirely new blockchain (new coin)
– implicit admission that $ZEC was never scalable, and that opt-in privacy doesn’t work
– roadmap has “a lot of similarities with ETH”
– “sharding” panacea
– subsidy for ZEC foundation https://t.co/R5vLXtKOCP
— Tuur Demeester (@TuurDemeester) June 23, 2019
Josh Swihart, VP of Marketing and Business Development at ECC, hit back at Demeester, calling the criticism “wrong and biased.” He said,
“Wrong and biased take. It’s a recognition that bitcoin doesn’t scale and that scalability and privacy are complimentary. Did you watch the session?”
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