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Negative from hackers and optimism from Davos Capitalization is melting

Jan 28, 2019

The week began with the fall of all TOP-10 cryptocurrencies, with more than $1 billion capitalizations. It is worth noting that due to a strong decline in prices, the number of “billionaires” decreased. Cardano (ADA) has lost its position among “billionaires”. According to the popular service CoinMarketCap, the ADA capitalization is $985 million. Therefore, if the price increases by less than 0.2%, Cardano will become a “billionaire” again.

TRON (TRX) remains the leader over the last 7 days, having added about 12% in price, even considering a decrease by more than 11.5% in the last 24 hours. Stellar (XLM) -13.5%, Bitcoin SV (BSV) -11.7% and Cardano (ADA) -11% were among the outsiders.

While there is a general decline in prices of TOP-10 cryptocurrency, TRX shows steady growth. It can be explained by the increasing popularity of this platform among developers.

The news that the number of dApp applications on TRON significantly exceeds the dApp based on EOS and Ethereum provides support for TRX. The price of this cryptocurrency has more than tripled since the end of November 2018, having increased from $0.011 to $0.035. Currently, TRX is trading at $0.0275, that is, two and a half times more expensive than the set low in 2018.

World Economic Forum in Davos

There is no doubt that the forum is one of the most important economic events at the international level. At this forum, all the most important economic activities, trends, and prospects are discussed. The fact that much attention was paid to cryptocurrencies, indicates not only their popularity but also their influence on the world economy.

Brad Garlinghouse, the CEO of Ripple, said that his company is trying to change the financial infrastructure of the whole world. He also noted that Ripple is not a competitor for Ethereum. However, he notes that XRP and ETH are constantly fighting for the second place of TOP cryptocurrencies. At the moment, XRP is the second cryptocurrency by capitalization but significantly lags behind ETH in terms of trading volumes.

The statement of the head of Circle serves as another positive signal for the cryptocurrency market. Jeremy Allaire said that in the digital age, humanity will not be able to survive without cryptocurrency. The CEO of the Nasdaq Stock Exchange, Adena Friedman, also notes the fact that digital assets are taking an active part in building the future global financial system.

Based on this, the future is almost impossible without cryptocurrency and blockchain technologies. However, many experts note that these technologies are at the initial stage of development.

Vulnerability of systems

The most important conditions for the functioning of any financial system are its reliability and security. Today it is difficult to consider the cryptocurrency market as safe, since almost every week appears information about various hacker attacks on cryptocurrency exchanges, wallets, and miners, etc.

LocalBitcoins, a popular platform for the physical buying and selling of bitcoins, has confirmed that it has undergone a phishing attack. The damage is not significant, less than 8 BTC or $28 000.

However, even the fact of the attack on the p2p exchange is a fundamental negative factor for the cryptocurrency market in general. Moreover, last week, there was information about another hAnt virus that affects ASIC miners.

Antminer S9 and T9 have already suffered from the virus, and the recently appeared on L3 Antminer model falls into the risk zone. Representatives of the Litecoin network noted that they are trying to fix the problem. However, it is difficult to do due to the high activity of users, contributing to the rapid spread of the virus.

It reduces the trust to the cryptocurrency market. Therefore, the activity of sellers is increasing, returning most of the cryptocurrencies to the “red zone”.

Institutional investors

The Global Blockchain Business Council (GBBC) conducted a survey of institutional investors at the World Economic Forum in Davos. 26% of respondents want companies to actively report on their plans and intentions associated with the blockchain. Considering the relatively high percentage of interest, large investors may continue to consider cryptocurrency and blockchain technology as a potential direction for investment. Moreover, many investors are planning to include blockchain experts on the boards of directors of their companies in the nearest future.

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