State of the Market November 2019 Contents

3 Main News of the Month Finance and Regulations Business Technology Market Others

8 Market Performances:Top 25 9 Daily Average Returns 10 Wallets Dominance 11 Daily Average Volatility 13 Market Cap to BTC 14 Average Daily Trading Volume to BTC 15 Average Spread&Rank Change 16 Market Sentiment 17 Newly Listed Cryptocurrency 18 Mining Difficulty & Profitability 19 Total H Rate and Staking Rewards 20 Inflation Rate & Emission 21 Active Addresses and Transactions 22 Publications and Academia 26 Trends and Market Thoughts 27 About

State of the Cryptocurrency market October 2019 News Review November 1st to 7th

Finance and Regulations Market

Republic of Azerbaijan will complete its Customers of United States branch of Binance can now based digital identification system by the end of purchase with their debit cards. 2019, which will be adopted in the first quarter of 2020. On November 6, China has revised their stance Binance will assist Ukrainian government with regarding cryptocurrency mining on the PRC creation of cryptocurrency regulations. territory, allowing mining farms to operate legally. Shanghai municipal government announced partnership with 6 major banks on creation of blockchain alliance. Cryptocurrency derivatives exchange, BitMEX, accidentally leaked all of their user email Government of Malta signed a MoU with T- addresses by not putting them under blind copy Systems, parent company of Deutsche Telecom. (bcc).

Huawei partnered with the People's Bank of China for strategic cooperation in research on .

Erdogan, President of Turkey, stated that the government is planning to issue their Central Bank Digital Currency in 2020. On November 4 2019, Stellar Lumens announced completion of a 50% supply burn, representing 55 Uk has released cryptocurrency tax regulations for billion of XLM . businesses for security tokens and utility tokens.

The European Union is not planning to issue its own digital currency, but rather focus on regulating stable coins. North Korea has been spotted trying to create a shipping and logistics firm in Hong Kong in order to launder stolen cryptocurrencies.

Business Technology

The Token Taxonomy Initiative backed by IBM, Volvo will be tracking cobalt with blockchain Microsoft and Intel are planning to standardise technology for its electric car batteries. construction of tokens. China is developing blockchain-based smart city inter- Global will freeze all US user account on communication infrastructure. November 13. Harbor, a digital platform for digital assets, has received license from the SEC to transfer ownership for security tokens.

State of the Cryptocurrency market October 2019 !3

November 8th to 15th

Finance and Regulations Market

Tassat, NY-based fintech firm, received CFTC volumes surge in Argentina and Venezuela after approval to issue Bitcoin derivatives. their Central Banks ban purchases.

Tunisian Central Bank denies claims regarding OKEx has launched BTC futures contracts margined issuing its CBDC. with the USDT .

Chinese central bank is reported to plan a large After PayPal announcement of withdrawing from scale cash management trial by restricting large Pornhub platform, (XVG) price surged by 33% cash deposits starting by Hebei province, and trading volumes by 160%. potentially a step ahead scaling its digital RMB implementation.

China's Inner Mongolia regulators to dispatch Standard Chartered, international banking group, special units to clean up mining companies which's joins Enterprise Alliance. business scope is "irrelevant to the real economy”.

Since Libra is under scrutiny by the SEC, People booking accommodations on Airbnb can Facebook is considering an alternative option now use bitcoin and receive 3% back, if they are such as Facebook Pay. using Fold app.

Business Technology

Tencent is planning to build a virtual bank after HK Ant Financial, subsidiary of e-commerce giant Alibaba, regulators approve the license. started testing its own blockchain for SMEs.

UPS will utilise blockchain technology in supply chain to track beef to Japan.

Satoshi Nakamoto's rumours resurface after 50 hard of Nov15 is not addressing BTC transaction to Grin with a personalised mining manipulation due to poorly structured difficulty message from a Bitcoin mined in 2010. algorithm despite heated debates within the community.

VeChain (VET) has been over-performing this month after announcement of the use of its blockchain to track tea traceability in Chinese province, posting +15% over the last month. The head of digital currency research of PBoC said that they will provide anonymity to those JPMorgan developed a new tool aiming at managing who require it. cash and collateral workflows faster.

Infant formula ingredients will be tracked on IBM's Food Trust with Nestle and Carrefour.

State of the Cryptocurrency market October 2019 !4

November 16th to 22nd

Finance and Regulations Market

The Chinese province of Zhejiang reported to have Maker DAO updated its migration plan to a processed $6 billion in medical billing through multicollateralized (MDP) contract for instead of AntFinancial (Alibaba) . the current CDP contract in a blog post on November 18. The amount of Chinese patents related to blockchain since 2009 is over 3 times what has been submitted More than 32,000 Chinese companies have recently in the US. announced developing blockchain technology when official numbers are bellow 10% the amount, mostly to Binance and Bithumb offices in Shanghai have been attract investments. raided and closed by Chinese police. Bithumb denied the operation sating it was a routine Gatehub wallet service has been under attack and lost inspection. 1,4 million users KYCs which have been shared online by hackers. EU has opened a €400M blockchain fund to catch up with China and the US. Cryptocompare removed Binance from top10 exchanges ranking this month due to security concerns.

Elliptic, the cryptocurrency and forensic analysis firm The US Internal Revenue Service (IRS) estimated that 400M$ in XRP tokens are related to illicit announced launching an investigation on activities. Bitcoin ATMs regarding tax compliance. Yahoo finance partners with CMC and add 118 coins to its listing.

Business Technology The CSO of ConsenSys announced the creation of Aligned Capital, a blockchain investment fund A US researcher from Dragon-fly Capital has allegedly looking at managing a $50M fund. cracked 96% of transactions history of privacy-centric cryptocurrency GRIN by exploiting a flow in Visa is developing a large scale blockchain- MimbleWinble protocol spending 60$/week for an powered system for private data treatment to AWS cloud based server. GRIN developers denied it improve transparency without disclosing results to as "unsubstantiated" in a following statement. third parties.

The German airlines company Hahn Air is the first to German marketplace Deutsche Boerse and issue tickets on blockchain, the company Swisscom have performed a security tokens to announced in a statement on Nov 18. cash tokens swap in a proof of Concept on Nov 19 using Corda and . Bison Trails, one of the founding member of Libra association raised $25,5M . Shenzhen local government has made a list of 39 illegal crypto exchanges going against the trading ban at risk of incoming crackdown.

State of the Cryptocurrency market October 2019 !5

November 23rd to 30th

Finance and Regulations Market

Beijing based crypto exchange BISS raided by Bittrex has denied having contacted the Ukrainian authorities on Nov 18, 10 people arrested. government for helping developing the local cryptocurrency industry. After postponing its end of the year debate regarding crypto ban earlier this month, India At least 5 Chinese cryptocurrency exchanges have announced being working on a National Level suspended operation after recent crackdowns earlier Blockchain framework to promote the tech in the this month. country.

Saudi Arabia and United Arab emirates have been discussing establishing an interbank digital currency to facilitate clearing and settlement

The EU has opened a new €110 million investment fund to invest in new tech such as AI and Blockchain.

French central Bank is advocating a blockchain- based settlement platform within Europe.

Business Technology

Ripple Lab injected another $20 million in Latest update of bitcoin core client released on Nov 25. Moneygram for a total of $50 million. EOS New York reported that 6 of the main POS blocks Big four accounting firm KPMG has launched its producers was managed by a single entity, raising own blockchain platform, KPMG Origins in concerns towards centralisation. Australia , China and Japan aiming at improving supply chain processes. obtained a patent aiming at automatically spot and reports non compliant trading accounts. The Cardano foundation released ADA payment gateway on Nov 27 to allow merchant to accept ADA and settle it in 35 fiat currencies.

IBM has filled a patent for solving package theft during deliveries by drones using blockchain.

A new study by Jupiter research reveals that the food industry could save up to $31 billion in food fraud and waste within 5 years using blockchain.

BNY Mellon has join blockchain Marco Polo consortium on R3 for trade finance and expect to go live very soon.

State of the Cryptocurrency market October 2019 !6 November 14, 2019

BRICS members (Brazil, Russia, India, China and South Africa) discussed the creation of a cryptocurrency to facilitate international trade between them during the 11th national BRICS Summit held in Brazil on the 14th of November. November 20, 2019

3 major Chinese firms have set up a $1 billion fund called "Global Digital Bank consortium blockchain investment Fund.”

November 27, 2019

Crypto exchange Upbit experienced a hack losing Tron, XLM, BTT, and 342,000 ETH for a total estimated over 60M$. Inside theft suspected. November 29, 2019

German banks have been allowed by national Parliament to offer, sale and store digital currencies starting from January 1, 2020.

State of the Cryptocurrency market October 2019 !7 Top-25 Market Performances

Check the Online Dashboard

State of the Cryptocurrency market October 2019 !8 Daily Average Returns to BTC (DARBTC)

Returns this month are correlated to a bear market for bitcoin (-0,61% DAR), which has witnessed an acceleration at mid month. and COSMOS are significantly over performing bitcoin (+1,7% and +1% respectively) and are the only ones with Maker DAO (+0,3% to BTC) that have negative net returns over the month. Huobi Token underperformed and eventually lost 3 seats in the ranking. The average DAR for the top 25 cryptocurrencies was at -0.38% in November.

Daily Average Return (DAR)

State of the Cryptocurrency market October 2019 !9 100 Richest Wallets Dominance (% of total supply)

% of Wealth distribution among main addresses remains BTC BCH LTC BSV BTG heavily centralised, driven (but not only) by top addresses exchanges cold wallets. Top 10 5.7% 9.9% 10.5% 7.5% 5.6% 19.3%

Since top 100 wallets include biggest exchanges, Top 100 15.1% 27.6% 41.5% 24.4% 16.3% 34.2% this information remains relatively limited to have a clear overview of the real wealth distribution but Top 1,000 35.0% 49.1% 62.1% 45.1% 30.5% 51.3% gives an indication relatively to main movements from and to such exchanges. Top 10,000 57.9% 69.5% 76.2% 68.5% 91.0% 68.8%

monthly average m-o-m change y-o-y change

BTC 14.6% 0.1% -22.7%

BCH 41.7% -0.9% -5.6%

LTC 27.2% 0.5% 5.4%

DASH 16.3% 0.9% 14.8%

BSV 24% -1.2%

BTG 33.7% 1.5% 0.2%

State of the Cryptocurrency market October 2019 !10 Daily Average Volatility (DAV)

Daily Average Volatility to BTC (DAVBTC)

State of the Cryptocurrency market October 2019 !11 Daily Average Volatility

The daily average volatility in November for the top 25 basket has been at 2,65%, a similar level to what has been observed last month (2,7%). Tezos observed the highest DAV (4,23%), followed by Maker (4,1%) and ATOM (4,05%). Both USDC and USDT have similar volatility levels (close to 1%), followed by LEO (1,45%) and tailed by both ETH and XRP (2,1% and 2,06% respectively).

Name DAV Name DAV

Bitcoin 1.8% 2.7%

Ethereum 2.1% UNUS SED LEO 1.5%

Ripple 2.0% Chainlink 3.2%

Bitcoin Cash 2.7% COSMOS 4.1%

Tether 1.0% TEZOS 4.2%

Litecoin 2.4% Huobi Token 2.8%

BNB 2.6% NEO 3.4%

EOS 2.6% IOTA 2.3%

Bitcoin SV 3.3% Maker DAO 4.1%

Stellar 3.0% Dash 2.2%

Tron 2.8% USD Coin 1.0%

Cardano 2.6% 2.4%

Ontology 3.8%

State of the Cryptocurrency market October 2019 !12 Market Cap to BTC

In terms of dominance, Ethereum is losing ground compared to bitcoin at 10% this month (versus 12,9%) last month but also XRP (6% versus 8%) and USDT (2,2% versus 2,7%). It is basically the overall trend with all altcoins losing ground compared to BTC which remains quite stable in terms of global domination (at about 66%), indicating that altcoins other than the top ones have been over performing the market this month.

State of the Cryptocurrency market October 2019 !13 Average Daily Trading Volume to BTC

Regarding liquidity, USDT is still at high demand with 123,4% the trading volume of bitcoin, increasing 1,3% since last month. USDC, the 2 remains far behind (1,2%). Ethereum is still the third most liquid digital asset at 41,5% liquidity to BTC (lost 3% since October) followed by at 16% (+0,8%). BCH and EOS both gained 1% liquidity to bitcoin compared to October.

State of the Cryptocurrency market October 2019 !14 Daily Average Spread (DAS)

Daily spreads have been particularly high for Tezos (9,1%), Maker (8,6%), ATOM (8,5%) and ONT (7,9%) offering large windows for profits (or loss) for daily traders betting on them. Bitcoin itself still has a relatively low DAS at 3,8% (4% in October) as for ETH and XRP (4,2% each from 4,8% and 4,9% respectively). Stablecoins and LEO keep posting more stability.

Rank Change

State of the Cryptocurrency market October 2019 !15 Market Sentiment

High interest about bitcoin is still related in countries with instability and/or relatively high inflation/interest rates (Nigeria, Ghana, Venezuela). Singapore, Estonia and Turkey rise up in the ranking following recent news about friendly regulation (Estonia), CBDC adoption (Turkey) and intensified activity regarding cryptocurrencies (Blockshow Asia in Singapore mid- Nov). Tweets statistics Tweets per day Ticker Daily Change M Change Y 40000 BTC 17555,5 2,1% -34,1% ETH 3715,1 -2,8% -47,2% 30000 LTC 1030,9 -6,4% -28,0% BCH 406,7 -0,2% -64,0%

20000 XRP 5728,5 -9,1% -2,5% EOS 696,5 -9,4% -58,6%

10000 ETC 79,5 -17,6% -37,0% BNB 79,5 -17,6% -37,0% November 2019 TRON 2957,1 -28,0% -81,1% 0 18 16 USDC 3,7 -92,5% 10/18 11/18 12/18 01/19 02/19 03/19 04/19 05/19 06/19 07/19 08/19 09/19 10/19 11/19 14 DASH 525,6 -15,5% -42,5% Google trend: Bitcoin 12 10 NEO 598,0 39,6% 2,1% 100 8 90 XLM 29,8 369,5% -30,3% 80 31/10 07/11 14/11 21/11 28/11 70 CHAIN 384,2 -35,3% 60 ADA 410,6 4,3% 3,1% 50 40 BSV 158,7 -19,8% 30 Google trends: 20 104,7 9,0% -47,0% 10 • -15,2% year on year ATOM 309,7 -12,3% 0 XMR 330,2 34,7% -13,1% • -2,5% since last month 12/2014 12/2015 12/2016 12/2017 12/2018 12/2019 ALGO 23,8 65,6% ONT 58,1 7,5% Google and tweeter searches for bitcoin and ethereum are lightly decreasing since the BTT 94,1 -64,7% last few month, even though we are observing a rebounce in interest regarding the bitcoin Bitcoin: Interest by country halving with a +10% monthly increase since march for the topic. Regarding tweeter, most Rank Country MoM rank change of the cryptocurrencies are also following a similar trend except for XLM which saw a 1 Nigeria nc +370% increase in the amount of tweet, most likely correlated to the burning of 50% of 2 Ghana 1 the XLM supply which had also created a massive surge in Stellar’s price in the following 3 Austria 1 days. 4 South Africa 1 5 Switzerland nc 6 Germany 1 7 Cyprus -1 8 Netherlands 1 9 Estonia 19 10 Slovenia 3 11 Singapore 45 12 Australia 4 13 Venezuela -2 14 Brazil -6 15 Canada 3 16 Turkey 8 17 Portugal nc 18 Ireland -4 19 Kenya 2 20 United Arab -5 21 United States -2 22 Belgium nc 23 New Zealand -3 Overall interest levels still remains limited compared to historical highs 24 Spain 1 25 United Kingdom 1

State of the Cryptocurrency market October 2019 !16 Newly Listed Cryptocurrencies

Date Added Name Ticker Date Added Name Ticker

30.11.2019 VERA VERA 19.11.2019 LOLTOKEN LOL

30.11.2019 Demeter Chain DMTC 19.11.2019 Kuverit KUV

29.11.2019 Guider GDR 19.11.2019 Bispex BPX

29.11.2019 TAGZ5 TAGZ5 19.11.2019 Digital Gold GOLD

28.11.2019 Aerotoken AET 12.11.2019 TurtleNetwork TN

27.11.2019 Dollar International DOLLAR 10.11.2019 ebakus EBK

27.11.2019 Share Token SHR 10.11.2019 Project WITH WIKEN

27.11.2019 Eureka Coin ERK 10.11.2019 Kappi Network KAPP

27.11.2019 Joule JUL 10.11.2019 Yap Stone YAP

27.11.2019 Folgory FLG 10.11.2019 Anchor ANCT

26.11.2019 Fortem Capital FCQ 10.11.2019 MargiX MGX

23.11.2019 Suterusu SUTER 09.11.2019 HyperExchange HX

23.11.2019 MesChain MES 08.11.2019 VNDC VNDC

23.11.2019 Multi-collateral DAI DAI 07.11.2019 DMme DMME

23.11.2019 Precium PCM 07.11.2019 Newscrypto.io NWC

22.11.2019 CAPITAL X CELL CXC 07.11.2019 Know Your Developer KYD

21.11.2019 FirmaChain FCT 06.11.2019 BeatzCoin BTZC

20.11.2019 Ormeus Ecosystem ECO 06.11.2019 Lukiu LKU

20.11.2019 CUTcoin CUT 06.11.2019 Secrets of Zurich SOZ

20.11.2019 Tellor TRB 06.11.2019 BenePit Protocol BNP

20.11.2019 Vinci VINCI 05.11.2019 Safex Cash SFX

20.11.2019 Nervos Network CKB 05.11.2019 Bitball Treasure BTRS

02.11.2019 CryptoBoss Chain CBC

02.11.2019 INLOCK ILK

02.11.2019 LINKA LINKA

State of the Cryptocurrency market October 2019 !17 Mining Difficulty and Profitability

In November 2019, mining difficulty was remaining relatively stable for Bitcoin, Dash, Ethereum and Ethereum Classic with mining profitability dropping in BTC and DASH, but increasing in ETH and ETC. Mining difficulty dropped significantly in Litecoin (-30.3%), while its mining profitability has increased by 42.1%. Mining difficulty also dropped in XMR (-6.7%) with growth in mining profitability (8.3%). Bitcoin Cash and Bitcoin SV showed minor change in mining profitability, however their mining difficulty increased by 8.2% and 20.9% respectfully. The opposite can be observed in Dash, which has a decrease in both mining difficulty and profitability (-1.17% and -1.12%)

State of the Cryptocurrency market October 2019 !18 Total H Rate and Staking Rewards

Mining activity has been on the rise for Bitcoin SV (+20.85%), Ethereum Classic (+1.32%) and Bitcoin Cash (+7.8%), an indication of miners’ confidence in these cryptocurrencies. On the other hand, Bitcoin (-3.86%), Dash (-1.12%), Ethereum (-5.38%), Litecoin (-28.95%) and Monero (-7.57%) lost mining power compared to October.

Total H Rate

Staking Rewards

The best cryptocurrency to stake in November among those stakable of the top 25 is Cosmos (ATOM) with 13% annual return, while Stellar (XLM) provides the lowest stacking return at 1% annually. It is relevant to note that among top 25 cryptocurrencies, eight are POS: TRX, XLM, NEO, EOS, XTZ, DASH, ATOM and ADA.

State of the Cryptocurrency market October 2019 !19 Inflation Rate and Emission

Monthly inflation rates lost 0.02% this month for BTC (from 0.31% to 0.29%); 0.01% for both Bitcoin SV and Bitcoin Cash (0.31% to 0.30%) but stays stable for litecoin (0.33%).

Name Inflation Rate Emitted

Binance Coin 0.13% 248,119

Bitcoin 0.29% 53,075

Bitcoin Cash 0.30% 53,938

Bitcoin SV 0.30% 54,038

Litecoin 0.33% 209,763

Ethereum 0.35% 378,745

Tezos 0.44% 3,221,528

Dash 0.56% 51,107

Ethereum classic 0.68% 792,125

USD Coin 24.41% 112,876,149

State of the Cryptocurrency market October 2019 !20 Active Addresses and Transactions

Active Addresses

Bitcoin still dominates the landscape regarding the overall number of daily active addresses and for which the metric jumped up by 3.6% since last month. UNUS SED LEO (LEO) saw the largest decline in terms of active addresses this month at -32.7%. Cardano (ADA) posted the largest growth (+37.9%), a value close to the change of its onchain transactions.

Blockchain Transactions

On chain transactions are declining sharply this month for NEO (-44.7%), Tron (-41.7%) and LEO (-30.4%). EOS, which is by far leading the amount of onchain transactions (4.5 Million of transactions a day in average) due to his DApp market, dropped by 13.8% during November. TRX, which used to be its closest follower, is taken over by Ripple, which post a massive +102.7% increase.

Ticker Tx/AA TRX 12.7 BTC 0.4 ADA 0.4 ETH 2.5 LEO 1 XRP 306.3 LINK 1.4 HT 1.6 BCH 1.2 NEO 11.6 USDT 2.2 DASH 0.2 LTC 0.4 XTZ 6.6 BNB ETC 0.1 BSV 7.2 MKR 2.6 XLM 6 USDC

State of the Cryptocurrency market October 2019 !21 Reports Published by Institutions and Firms

Academia

Google scholar blockchain-related publications in November: 1012

Bitcoin-related in November: 348 Relevant academic papers: Finance & Economics

“Short Term Prediction on Bitcoin Price Using ARIMA Method” Wirawan and al, Published 28 October 2019, IEEE. Using an ARIMA autoregressive model combined with a MAPE predictive model, the authors concludes that next day returns can potentially be predicted with enough accuracy to obtain positive returns.

“Price Prediction of Cryptocurrency: An Empirical Study” Liuqing Yang, Xiao-Yang Liu, Xinyi Li, and Yinchuan Li, Published 1 November 2019, Journal of Computer Science. The study examines price-forecasting models based on entropy of cryptocurrencies and stocks, finding that cryptocurrencies are more difficult to predict than stocks.

“The changing accounting landscape” Sean Stein Smith, published 16 November 2019, Future of business and finance book series. In this article, the author reviews how the development of blockchain technology may have an impact into accounting traceability through accounts management, automatisation and processing cash flows.

“Cybersecurity and Insurance” Sean Stein Smith, published 16 November 2019, Future of business and finance book series. The author reviews how an increasing network and data security through blockchain technology may reinforce security levels (password protection, data access…) in the insurance sector and benefits operations.

“Implication and trends for financial services” Sean Stein Smith, published 16 November 2019, Future of business and finance book series. A review of the benefits of blockchain in the financial sector regarding ethic, financial markets, trading and the implications it may have on traditional finance

“Blockchain and Accounting Governance: Emerging Issues and Considerations for Accounting and Assurance Professionals” Sean Stein Smith and John Castonguay, published 1 November 2019, Journal of emerging technologies in accounting. The paper explores the impact of blockchain for organisations and auditors regarding accounting practices and the construction of financial statements.

“Blockchain Technology and its Impact on the Global Economy” Burcu Sakız and al, published 22 November 2019, International conference on EurAsian economies notes. Keeping in mind that data is quickly becoming a very valuable resource, this paper explores the emerging landscape for blockchain technology focusing on the economics.State of the Cryptocurrency market October 2019 !22 “Digital Economy and Anti-Corruption: New Digital Models”

Sidorenko and AA, published 25 November 2019, EDP Science, Sustainable development. The authors consider the use of blockchain to create anti-corruption compliance digital model aiming at improving governmental structures and private organisation but also social problems and crime prevention.

Technology

“Difficulty Scaling in for Decentralized Problem Solving” Philippopulos and al, Published on 1 November 2019, Cornell University computer science. The authors propose a different approach to POW based on DIPS (Difficulty based problem solving) that could be an easy to implement solution for reducing large energy consumption in Bitcoin mining without compromising on security.

“Utilization of blockchain for mitigating the distributed denial of service attacks” Singh and al. Published 15 Nov 2019. Survey paper, Wiley. The paper explores the use of blockchain technology to counter DDOS attacks and secure the web, IoT devices and AI.

“Quantum Blockchain using Weighted Hypergraph States” Banerjee and al. Indian Institute of Science and research, published 18 November, Indian Institute of Science and research The researchers use a quantum weighted hypergraph states to build a quantum blockchain protocol on IBM’s qbit structure and discuss the security, effectiveness and limitation of this protocol.

“Blockchain-Based Electronic Voting System for Elections in Turkey” Bulut and al, published on 21 November 2019, IEEE. The authors review a particular blockchain application as a fair voting system and explore the case study of its application in Turkey.

“Blockchain-Enabled 5G Autonomous Vehicular Networks” Rahmadika and al, published 22 November 2019, IEEE. The article explores the use of blockchain in IoT and especially its application to LTE networks and connectivity before assessing its advantages regarding the security of 5G networks especially when it comes to autonomous cars.

State of the Cryptocurrency market October 2019 !23 Relevant Patents

“System and method for reducing fraud in trade insurance and financing” Inventor: Maureen LEDESMA, Jardeleza MANIPON, Yroen MELGAR. Assignee: Vesl Pte Ltd. Published 14 November 2019. System and method for providing trade insurance and finance using communication with a database managed through a blockchain.

“Blockchain data processing method, apparatus, device, and system” Inventor: Xuming Lu, Hushen Wang Assignee: Alibaba Group Holding. Published 14 November 2019. A request for transitioning a state of a contract stored at a blockchain system is received at a plurality of blockchain nodes of the blockchain system

“Systems and method for tracking enterprise events using hybrid public-private blockchain ledgers” Inventor: Jenny Lin, Perry Haldenby, John Lee, Paul Chan Assignee: Toronto Dominionbank. Published 14 November 2019. Computerized systems and methods for generating secured blockchain-based data structures that track occurrences of events across fragmented and geographically dispersed lines-of-business of an enterprise

“Service data storage method and apparatus, storage medium, and electronic device” Inventor: Rui GUO, Maocai LI and al. Assignee: TENCENT Technology (Shenzhen). Published 14 November 2019. Methods and apparatuses for storing service data through a distributed blockchain.

“Object Identification For Groups Of IoT Devices” Inventor: Ned M. Smith, MARK Kelly and al. Assignee: Intel Corporation Published 14 November 2019. An IoT device identify on a network coalition group registered on a blockchain to verify its identity.

State of the Cryptocurrency market October 2019 !24 Publications by companies and firms

“Blockchain in the integrated energy transition” Published by Dena (German Energy agency) on February 2019. 84 pages The report reviews the applications of blockchain technology in the energy sector and provides use cases.

“Privacy Coins – Market overview” Published by Coinsflare on April 2019. 13 pages. The report reviews the technical specificities of the major privacy coins on the market.

“Powering the future of Finance through blockchain” Published by Everest Group on November 2019. 16 pages Introduce how blockchain can provide support in Finance and accounting to make better decisions.

“Many path lead to blockchain adoption and not two are alike” Published by Deloitte on November 2019. 36 pages From 3D printing to AI, Deloitte reviews sectors adopting blockchain technology and the path taken to implement it.

“Blockchain-enabled digital tokenization is poised to transform commerce” Published by KPMG on October 2019. 8 pages KPMG explores how blockchain can help to promote customer engagement through the emission of tokens to tokenize things from people, services, fidelity points, travel tickets, places… and how it might become an efficient marketing tool.

State of the Cryptocurrency market October 2019 !25 Trends and Market Thoughts Q&A with Sergey Ivanov and Arthur Meunier

Sergey Ivanov Arthur Meunier Founder & VP at FAS COO at FAS

Question: After president Xi Jiping has announced publicly that the Chinese government will support blockchain development last month, we saw a lot of mixed signals happening with recent crackdowns of Chinese-based exchanges and illegal mining farms but also thousands of companies making public announcements that they are involved into blockchain technology to attract investments. What are your thoughts on the question?

Sergey: Cryptocurrency exchanges have been illegal in China since 2017, and President’s Xi Jinping endorsement of Blockchain technology is in no way an endorsement of cryptocurrencies and its trade. The threat that the PRC’s government want to avoid in relation to cryptocurrencies is capital outflow from China. As for cryptocurrency mining, it was considered as “obsolete” and “backwards production technology”, and was panned to be eliminated as a part of the Catalogue draft released in April 2019, and actions towards its implementation started to occur. However, this month the final mention of the Catalogue was released, which did not stress elimination of cryptocurrency mining on the territory of the PRC.

Arthur: Based on my experience of China, policies and their enforcement is often unclear. Lot of guidelines are given orally through public announcements but do not necessarily translate into laws. I think the government positioning was overall mitigated with a lot of companies still exploring and developing the technology. The latest announcement of Xi Jiping has allowed to re-clarify China’s objectives: yes to the technology but no to fraud and speculation (trading).

Question: The Indian government has sent a lot of mixed signals during the last months. They were discussing a ban of cryptocurrencies but lately are talking about promoting adoption. How do you see this situation evolving?

Arthur: I think the Indian government was probably influenced by its Chinese neighbour in its approach regarding cryptocurrencies. It is reasonable to think that developing countries see cryptocurrencies as a threat to their national identity and financial stability as they already have difficulties to manage money outflows and monetary policies due to corruption combined with an important amount of unbanked individuals. Now that China is embracing blockchain with its plans of releasing a CBDC, I think India is reconsidering its own and might starts to explore the technology more in depth to identify potential opportunities.

Sergey: The potential of Blockchain technology is undeniable and even the most skeptical governments cant help but implement it in order to stay competitive. Indian government is no exception, and they probably were influenced by China’s public enforcement of the technology in the late October 2019. Nevertheless, it is too early to say how Indian government will handle the implementation of DLT, but we will continue to closely monitor the regulatory climate in India to better understand its stance on cryptocurrencies and Blockchain technology. State of the Cryptocurrency market October 2019 !26 FAS is established in Hong Kong and provides business development services to startups and companies willing to evolve in the exciting blockchain ecosystem. FAS offers include strategic development and tokenisation best practices, risk management and stress testing, strategic planning and IEO/STO preparation.

FAS can rely on a strong network of professionals from different areas and expertise and connect with investors and accelerators worldwide. Believing in decentralisation, we apply this ideal to our business strategy by having consultants available at any time all over the world. Thinking out of the blocks is our motto.

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Fintech Advisory Services Ltd. 2019 @all rights reserved www.fintech-advisory.com State of the Cryptocurrency market October 2019 !27