Late June 2022 Crypto Boost
SwissOne Capital
SwissOne Capital is a niche asset manager with a focus on institutional grade crypto and blockchain investment funds.
Why are bear markets so useful to the development of crypto and blockchain based ecosystems? The simple answer is that they weed?out the rubbish.
The 2018 bear market brought upon the death and re-birth of the ICO. Incredible amounts of money were?raised for early venture pitch decks that barely resembled a business model from?just about every Tom, Dick and Harry.
In fact, billions were raised for promises of things laid out that never materialised. The market wisened up?- it stopped accepting ICO's at face value. By the end of the bear market the ICO, as we knew it, was dead. Projects without a legitimate foundation, verifiable team members, acceptable realistic use cases, pathways to adoption, significant existing and real followers/users, and funding breakdowns?(the list goes on) were doomed before they even started.
In 2022, it is a "same same but different" scenario. This time it has all to do with?GOVERNANCE.
The crypto market at large?has recently experienced a governance crisis. Yes, the problems?may have only popped up on a handful of projects to date but the impact on the confidence of the community at large has?been tremendous represented by the recent massive drop in?alt coin?prices. Until certain standards have been set to mitigate these single points of failure the market will struggle to attract the capital required to keep up the momentum.
Decentralisation is at the core of the crypto and blockchain movement. However, many projects lack the governance protocols or distributed ownership to ensure that the well-known risks associated with centralisation and many forms of fraud that?traditional finance has sort to overcome?resulting?in a "mutton dressed up like lamb" scenario. In order for decentralisation to work it must be an upgrade on?centralisation, not the same thing dressed in different clothing.
When investigating?decentralised finance on a public immutable ledger like Ethereum, that immutability; the fact that it’s unchangeable, is a key feature. For something like Ethereum to have any legitimacy, it needs to be permanent. If you can make users?$ETH tokens disappear based on a chain halt or attack or governance vote, complete confidence is lost and the user will?no longer keep those funds there; it ruins not only the legitimacy of the protocol but wrecks the fundamental value proposition of cryptocurrency itself.?
By analyzing the distribution of ten major DAOs’ governance tokens, it was found?that, across several major DAOs, less than 1% of all holders have 90% of voting power.
Where were the independent parties providing input on the Luna Foundation protocol upgrades or features? Why were the critics not take into account? How are individual wallets being taken over inside a protocol when a minority passes a vote to do so??Governance that can simply nullify a previous promise by a?vote is almost equivalent to no governance at all. Examples of all this shenanigans include?(but not limited to): The Juno Whale, Rari Fuse Exploit, Yield Guild SAFT cancellation, the Solend Account Takeover.?
A lot needs to be achieved inside the "decentralised"?crypto and blockchain ecosystem when it comes to governance and the change has already begun. This week Polkadot ($DOT) has taken actions as a first mover and unveiled a new on-chain governance model. In the future, much much more has to and will be asked of layer 1, layer 2, and layer 3 protocols in terms of governance. It is time for the crypto industry to leave its teens and mature into an adult where certain realities exist that should not be avoided but solved. We believe changes in this narrative are critical to bring an end to the current bear market cycle and setup a safer landscape for investors.?
Bitcoin Technical Outlook: The market did indeed hit our forecast number of $19k but managed to go further to the next support level at $17.5k since the previous Boost. That means the bottom is not yet in or at least remains unconfirmed.?Technical Analysis (TA) becomes far less useful when fundamental drivers are significantly at play, like forced liquidations, low volumes, significant loss in confidence. Therefore, the best stance to take in markets like these is to?wait for market confirmation of a bottom rather than being preemptive?by?trading.?The chances of "having your face ripped off" are?so much?higher.
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Why SwissOne Capital?
SwissOne offers seamless access in to the Crypto Asset ecosystem via traditional market channels. Offering the Top 50?Crypto Assets momentum-weighted,?SwissOne brings you direct and sensible exposure to this uncorrelated and high growth asset class. Operating with institutional-grade?European financial service providers, there is a safe and secure passage from traditional markets into Crypto Assets.
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TOP RESEARCH &?ARTICLES
领英推荐
CoinDesk:?How 2022 Differs From 2018
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COIN FOCUS - Hedera?(HBAR?- $0.07;?ATH - $0.57)
WHY
Hedera is a decentralized public network where developers can build secure, fair applications with near real-time consensus. The platform is owned and governed by a council of global innovators including Avery Dennison, Boeing, Deutsche Telekom, DLA Piper, FIS (WorldPay), Google, IBM, LG Electronics, Magalu, Nomura, Swirlds, Tata Communications, University College London (UCL), Wipro, and Zain Group.?
Ordinarily, this list of ownership would raise concerns over the decentralisation of the network, and rightly so. However,?Hedera addresses decentralization concerns by separating governance from consensus. Hedera's governance design assures no single company, small group of developers, or node operators has undue influence or control over the network.
The council’s role is to manage the software development (to ensure it is aligned to members requirements), voting on changes, ensuring funds are allocated correctly and safeguarding the network’s legal status in various jurisdictions.?
WHAT
Hedera is the only public ledger that uses hashgraph consensus, it claims to be a faster, more secure alternative to blockchain consensus mechanisms. Hashgraph, created by Leemon Baird Hedera's co-founder and Chief Scientist, works efficiently to verify transactions while maintaining a high level?of security to prevent malicious attacks.
Hashgraph achieves high-throughput with 10,000+ transactions per second today and low-latency finality in seconds from its innovative gossip about gossip protocol and virtual voting. Once consensus is reached, the transaction is immutable and available on the public ledger for everyone to transparently see.?
Hedera makes notable design trade-offs differentiating it from other platforms. For example, the network supports high transaction speeds for its HBAR cryptocurrency, but allows only approved nodes to participate in determining transaction history.
By restricting the number of nodes involved in key functions like timestamping and transaction ordering, Hedera Hashgraph is able to quickly achieve finality, reducing the likelihood changes to the state of transactions might later be made.
The Hedera team argues this gives businesses a needed guarantee, as they can be confident when making decisions based on this data.
HOW
Hedera Hashgraph’s most unique feature is its data structure for grouping transactions called a hashgraph, which claims to process more transactions more cheaply than existing blockchains.?The Hashgraph is a patented algorithm where all nodes are constantly communicating their information with each other, and was originally designed for private use.?
To ensure all the computers in its distributed network agree on its transaction history, Hedera Hashgraph uses the Hashgraph consensus mechanism, powered by two types of nodes.?Consensus nodes determine transaction ordering and history, while mirror nodes relay this information to other stakeholders throughout the network.?
This differs from how most traditional blockchains achieve consensus, in which the state of the blockchain is determined by users who propose blocks to be added to the chain in a market competition open to anyone.?As a result, Hedera Hashgraph claims to offer features that combine the advantages of both public and private blockchain networks.
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