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Will The Ethereum Crash Continue?

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Ethereum crash
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At the moment of writing this, the crypto markets are experiencing the usual decline as we transition from the weekend into the week. The weekends are historically known for low trade volume, therefore, it was a surprise when Ethereum (ETH) managed to dig itself out of a hole from its Wednesday levels of $171. The weekend should have caused ETH to fall further. But it survived the weekend only to start declining yesterday, Monday the 17th of September.

The King of Smart contracts is currently valued at $199 and looks once again to retest more levels below $200 with the additional FUD that ICOs were cashing out on their funds due to a bear market. The latter rumor might be true but the ICOs cannot be blamed for wanting to pay employee salaries, pay operation costs and even perhaps buy some office coffee. These are the regular costs of running a startup. As a matter of fact, Ethereum should be thriving if they are paying for their expenses using the digital asset. Many employees in the crypto-space actually prefer being paid in crypto.

But we are digressing. The first evidence that the Ethereum crash might continue is the fact that it has lost all the massive gains it had achieved last week and leading into the weekend. At one time, we all thought $250 was a possibility.

There could be hope around the corner for its network congestion issues might be a thing of the past with the first demonstration of sharding in Berlin this past week. Sharding is a concept of dividing the processing of transactions amongst shards or groups of nodes in the blockchain network. This then means that a transaction need not be validated by the entire network to process thus increasing the throughput of the Ethereum network.

Vlad Zamfir, the Ethereum core developer who demonstrated sharding on the network at the EthBerlin event last week, had this to say about the development:

We’re still working on the integration but check back in a week and it should be something where we have instructions and you can follow the instructions and get it running on your computer.

Why Is Sharding Important

We need to remember that the chief reason many traders were shorting Ethereum in the markets and expecting it to fall, is the fact that it is slowly being eclipsed by faster networks such as those of EOS, Tron and Zilliqa. The reported transactions per second (tps) – or throughput – of these networks are as follows:

Ethereum is clearly lagging behind. And with more and more DApps being created for the finance and gaming industry, we get to understand why faster transaction time is relevant. With sharding on Ethereum, HODLers and traders can once again reignite their bullish sentiments about ETH.

Another reason why the Ethereum crash will likely continue is the fact that the recent comments by many crypto-experts who confidently stated that the recent decline of Bitcoin to $6,200, was the final one before a total market recovery, might just be wrong.  One such analyst and expert is the ex-fund manager and Billionaire investor, Michael Novogratz, who had this to say in a September 13th tweet:

I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble.

Looking at the charts once again, BTC is currently valued at $6,290 and looks ready to sink some more as we approach the September 30th SEC deadline for the CBOE sponsored Bitcoin ETF. If history is to go by, the chances of the SEC approving it are slim and we could be headed for tough times that will include Ethereum dropping some more in the markets.

Check out the latest video from our Editor In Chief on the Crypto Rich show!

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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Aluna.Social
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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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