What did we learn from the first quarter sell-off?
A research report from Chainalysis shed light on the spectacular sell-off since the beginning of the year. The report analyzes the behaviors of four profiles: speculators, services, investors, and lost Bitcoin. An interesting stats is how illiquid the asset actually is. According to Chainalysis, "Between 2.3 and 3.7 million bitcoin are lost, reducing market capitalisation by between 13% and 22%. Market capitalisation could be reduced by a further 35% if illiquid investor holdings are removed from the cap." How will the liquidity structure of this market evolve over time? Will the catalyst for change be technological (such as the growth of Lightning Network) or the result of adoption and (attempted) regulation?
December 2017 in crypto felt crazy - our @chainalysis research shows it really was. Long term investors cashed out $15 bn that month and another $15 bn since. Speculators who bought this bitcoin will shape the market for a long time https://t.co/X5s4kAhvmB pic.twitter.com/BzhbmllpDw— Philip Gradwell (@philip_gradwell) June 8, 2018
Technical & Updates
"Through three successful attacks of Zencash (a lesser-known cryptocurrency that's a fork of a fork of privacy-minded Zcash), the attacker was able to run off with about more than 21,000 zen (the zencash token) worth well over $500,000 at the time of writing."
"In addition to validating blocks of transactions, ticket holders can vote on-chain for proposed network changes. These changes are first considered through informal community discussions, then published as Decred Change Proposals (DCPs). All DCPs include clear documentation and motivation for the change, as well as code for a working and tested implementation."
"This team focuses on the Zcash consensus protocol current and future upgrades which include R&D, specification and interfacing with the ZIP process"
"According to Moxie Marlinspike, the founder of Open Whisper Systems, the non-profit behind Signal, this problem impacted messages sent within a particular time frame."
News & Commentary
"The cryptocurrency billionaire also addressed some of the controversy and conspiracy theories that have swirled around Bitmain. Below is a partial excerpt of Fortune’s interview lightly edited for brevity and clarity. (Read the rest of the interview here.)"
"Venezuela’s government, struggling to contain its extreme, world-leading inflation rate, is devaluing its currency by removing three zeros from the bolivar. Local citizens may be taking a different approach: As price increases run rampant, bitcoin transactions denominated in the nation’s currency have skyrocketed, according to Localbitcoins data."
Cryptokitties usage down 98.5% since its peak. Less than 200 DAU. pic.twitter.com/s7PpyBz5bo— nic carter (@nic__carter) June 8, 2018
Here’s the legal problem for Facebook. For several days, for 14 million users, the privacy explanation below was literally false. pic.twitter.com/Csp57rf6pq— Jonathan Mayer (@jonathanmayer) June 7, 2018