The words blockchain and cryptocurrency have become ingrained in the lives of traders and investors all around the globe. Though the audience interested in cryptos has been a mixed bag for a decade or so, today cryptocurrencies receive the attention of mainstream media. Both institutional and retail investors are actively investing in crypto.
This sector is developing rapidly and the constant growth of Bitcoin and other digital currencies is stirring up public interest. The last two years in the cryptocurrency market have been viewed as a huge success. Industry leaders agree that 2019 will be at least as innovative as the previous couple of years. The mass adoption of blockchain triggered an uprise of new players and new trends. Let’s get some insight on what trends are influencing the crypto currency industry in 2019.
Crypto Is in Trend
It is impossible to ignore the fact that cryptocurrencies infiltrate numerous areas of state-of-the-art financial services. Blockchain technologies provide vast opportunities for safe and transparent transactions, which is why we should expect large investments in the improvement of blockchain technologies, making transactions even more protected and less susceptible to fraud.
We should expect the increased interest in crypto, especially in stable coins, i.e. the cryptocurrencies holding a stable value that can be used as hedging tools to stabilize the potential volatility of crypto assets.
The top cryptocurrencies already in the market will get bigger. Among the most successful cryptos in terms of value are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
The interest in "Ripple" technology will rise as it combines the finance and cryptocurrency worlds. Ripple can be used both as a coin and a payment system, helping financial institutions transfer funds locally and internationally. The system implies easier peer-to-peer transactions, as this hybrid crypto coin/payment system does not require third parties to verify transactions. Ripple shows high activity in the market having signed several international agreements with international banks to introduce this technology into the work of those banks. Most analysts agree that in 2019 the demand for Ripple will increase and banks will invest in crypto technology more than in previous years.
The number of educational resources will increase. This is another field of possible investments – providing educational materials (such as webinars, online seminars and tutorials) can entice more new investors in the market. We can expect the rise of communication platforms and the development of new mobile trading platforms. Moreover, schools and universities will launch specialty courses and educational programs to teach future accountants, bookkeepers, and CPAs how to deals with cryptos.
Analytical tools used for trading and investing should also improve. Though there are plenty of websites offering tools and programs for market trend analysis, there are a lot of possibilities to improve those tools to make more accurate predictions.
Taking into account the popularity of cryptocurrencies and their infiltration into the world of real banking, we should expect regulatory standards to be updated. More and more businesses deal with crypto and legislative systems are forced to react to the fast changing reality. Some limited progress can be observed already – the SEC now has more oversight to shut down illicit initial coin offerings (ICOs), and cryptocurrencies are classified as property, not currency by the IRS – at least for now.
The demand for Security Token Offering (STO) will also increase. These will substitute the Initial Coin Offerings, which lost the market because of ICO spammers and some regulations adopted all around the globe. STO can be regarded as a legal entity of ICO crowd funding programs, and this provides more security for investors. Taking into account that STOs are recognized by financial regulations (for example, by the Securities and Exchange Commission or SEC for traders in the United States), it is quite possible they will replace ICOs soon.
The market of crypto is still evolving and providing chances for those who can offer something new and promising – not surprisingly, the new players are trying to steal market shares from the established market participants. Who are they and how successful are their attempts?
New Players – Who and When
The success of Bitcoin, which increased its price from $371 in January 2016 to $13,000 by December 2017, has inspired numerous crypto currencies to follow. Some blossom and some bite the dust – that’s a fact of life in every business. Bitcoin was a pioneer in digital currency domain based on blockchain technology using digital ledgers to confirm and verify transactions.
One of the most known new players in this market is Tron crypto. The idea underlying TRX cryptocurrency is the creation of a social ecosystem ensuring direct connection between its creators and content consumers. As a cryptocurrency, Tron ecosystem represents a blockchain network consisting of peer nodes. The TRX token was released after its initial coin offering (ICO) in August 2017, when ICO was forbidden in China.
The network supports creation of applications and smart contracts, both for Google Play and App Store. The ecosystem integrates Bitcoin, Ethereum, EOS, and Qtum networks, and the TRX token was issued on the Ethereum platform by the ERC20 standard.
According to its creators, the TronClassic coin (TRXC) Wallet provides various social features to increase engagement among users which improves security of the decentralized network. It is possible to buy this crypto on a crypto exchange (a virtual platform with trading opportunities) or on an online currency exchange (a web site enabling the selling and buying of cryptocurrencies). Moreover, you can use crypto vouchers Tron to purchase this very crypto.
What about the value and the prospectives? TRONCLASSIC has a current supply of 1 000 000 000 000 TRXC with 465 107 478 370 TRXC in circulation. This cryptocurrency has experienced a spectacular rise and fall within the current year. It began its stunning growth on August 6, 2019 – overnight it grew by more than 1500 percent, but just after a few minutes the price of the coin fell again – the growth rate halted at plus 544 percent. The cryptobit.media analysts note that until the moment of rapid growth, there was little to no presence of the TronClassic coin in blockchain media.
At the moment of writing the last known price of TRONCLASSIC was $4.90e-7 USD and it decreased by 75.68% over the last 24 hours. The sales turnover of the coin suggests a high demand for this cryptocurrency, but there are still concerns about fake sales volumes. A recent Blockchain Transparency Institute (BTI) report showed that over 84 percent of sales in Tron and Ethereum markets are fake ones. They said volumes of these two coins were reached by means of wash-trading.
Another new player is Telegram’s cryptocurrency – the Gram. The new digital currency will operate with a decentralized structure similar to Bitcoin. The only official source of information is still the website, where you can download the technical white paper dated March 2019 and other technical documentation, and the code of the TON Blockchain Test Network Lite Client.
Telegram’s initial coin offering was made in early 2018. Telegram Open Network ICO raised $1.7 billion from big-name investors. And the investors were informed that the first batches of Telegram Gram coins would appear within the next couple of months. Users are supposed to store the coins in a Gram digital wallet built into Messenger to be offered by Telegram to all its 200+ million users around the world.
The cryptocurrency (Gram) can be acquired on Japanese Liquid cryptocurrency exchange, which on August 30, 2019 disclosed the public blockchain wallet address that now keeps all participating customer funds from Gram token sale in cold storage until Gram tokens are released and delivered by the seller, Gram Asia. On July 10 Gram Asia started selling rights to its Gram holdings at $4.00 per token; at that time the original sale price at Gram’s second ICO amounted to $1.33. Then, Gram’s total valuation reached $1.7 billion.
In its legal documents, Telegram promised its investors to deliver by October 31, 2019. A matter of public concern is whether Telegram Open Network will be compliant with regulations in place by the end of October. David Gerard, a cryptocurrency analyst and critic, doubts if the system will be really decentralized and how Gram coins will be “interfacing to the real world of actual money, and goods and services”, as Know-Your-Customer anti-money-laundering (KYC/AML) regulations and money transmission laws can be a big problem. The concerns that coins like Gram and Facebook’s Libra can be used by drug dealers and money launderers are quite widespread and the authorities in the United States are already quite aggressively disposed to some cryptocurrency projects for violations of securities laws.
Sources close to major investors predict that the Gram platform has a 10 percent chance of the market in areas such as cloud storage, DNS service (the system for receiving domain data), and VPN and anonymizer services. However, the actual token value will depend on whether the developers are able to comply with regulations and fully implement all the features they promised.
On June 18 Facebook announced launching an e-wallet Calibra for a new world cryptocurrency, Libra, to be launched in 2020. The cryptocurrency will be used across the social media network giant’s platforms, including Messenger, WhatsApp, and specialized apps – the above mentioned Calibra. The whitepaper says that Libra, “a stablecoin backed by various fiat currencies, consists of three elements: It will be built on a secure, scalable and reliable blockchain; backed by reserve assets; and will be governed by an independent Libra Association, headquartered in Geneva, Switzerland.” The whitepaper also explains that the intended target is primarily the share of the unbanked population (i.e., adult people "outside of the financial system with no access to a traditional bank") who, nevertheless, could afford a mobile device and internet access (estimated to be about half a billion people worldwide).
The owner of Facebook, Whatsapp and Instagram became interested in blockchain technology not so long ago. The rise of the interest in this technology coincided with the large scale Cambridge Analytica scandal. Blockchain insiders, however, say that “Libra’s ‘blockchain’ isn’t, in fact, based on blocks, as it stores the transactions in a Merkle Tree-structured sequence, whose root’s hash is authenticated in a conventional blockchain manner. This generates a distributed versioned database, whose ledger states changes after every transaction”. Analysts’ views concerning Libra differ – some suppose this cryptocurrency can become a central global currency and get a key role in B2B play, some are worried about regulatory uncertainty, some think it is a Trojan Horse making people get used to digital money and paving the way to cryptocurrencies in the lives of the masses.
On the assumption that Libra is able to get through all challenges – both regulatory and technical – it can both disrupt the crypto world and transform the future of payments.
The extent of success of these newcomers to the market remains under wraps. There are simply too many factors impacting the situation to make a clear judgement.
What Can IT Developers Offer the Crypto Market?
The crypto market provides many opportunities for companies aside from creating and selling the coins:
- Companies can raise money for service platforms, which sell cryptocurrencies, including mobile trading platforms.
- Companies can create analytical tools and programs to predict market trends.
- Companies can develop communication platforms and educational apps to educate new crypto users.
- Companies can create blockchain advertising platforms and crypto tracking apps.
- Companies can even develop games built on blockchains and using tokens as in-game currency.
Innovative companies can create lots of new products in the market by involving well-established development companies experienced with blockchain technologies.
Our Experience in the Field
Archer Software has a large portfolio of Fintech projects closely related to blockchain technology and cryptocurrencies, embracing almost any application field mentioned above.
Among the projects developed for crypto trading is a project called Coinve.st – an investment tool MVP, which is a decentralized investment trading market for cryptocurrencies. The platform enables users to invest in hundreds of different cryptonized assets and indexes using only one wallet and one coin. The features include pulling real time data of the coins' exchange rates, storing trades in Ethereum through smart contracts, short and long trades, index investments, and ICO.
GoAndChange is another project worth mentioning. This Eastern Europe oriented platform aggregates exchange rates of the online and offline forex, digital and cryptocurrencies, and exchange options currently available on the market, provides trend analytics and prompts efficient exchange strategies. The system was developed as MVP and required code refactoring to improve quality, performance and security before the new features could be added. Our company has completed code analysis and refactoring, developed the requested features and built out the foundation for further system extension. Archer’s PM also helped to update the development process and improve deployment and QA procedures.
WeBuy is a blockchain based project aimed at effective on-demand advertising. It is an advertising platform that specializes in online-to-offline commerce. WeBuy is holding a Production Oriented Token Sale (POTS) event of WBY Tokens. WBY Tokens will be used by WeBuy merchants (sellers) to pay for advertising and may be used by WeBuy users (buyers) to purchase goods and services. By leveraging geolocation tools, WeBuy enables offline sellers to be in full control of their online ad budgets and streamline the digital traffic to their offline points of sales. The project is currently in beta-testing mode.
CodeDrop is a Blockchain Escrow App Prototype developed by our company to serve as an escrow holding and regulating the payment of the funds required for two parties involved in a given transaction. The app allows a customer to request specific scope of works and secure payment with the platform, and for a vendor to deliver and get the secured payment. The app uses an external Etherium payment control mechanism – a platform based on blockchain technology. The application has an intuitive and user-friendly interface, adapted for mobile devices and desktop applications.
To get more information about our portfolio, contact our managers. We’ll be glad to help you assess and evaluate your crypto project and develop a product that will bring success to your business.