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Daily: CME Bitcoin Options, Telegram & SEC, Tron & Poloniex
November 13  |  3 min read

Daily: Test for Trend

BeQuant Analytics, a daily cryptocurrency market analysis contributor

Ethereum bucked the recent trend and underperformed Bitcoin, even as the amount of ETH locked in the DeFi ecosystem continued to grow. Almost 2.5M ETH is now locked across various dapps and Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) is widely expected to accelerate this trend. Despite the downbeat sentiment, the futures curve remains in contango and the delta is showing little evidence of collapsing, which suggests that leveraged names are still bullish. The hash rate is back below 100 quintillion hashes per second but it is worth remembering that daily fluctuations should be taken with a pinch of salt and it will take some time for a new trend to establish itself following the 7% downward adjustment in mining difficulty. The Ethereum network, which is due to undergo the Istanbul hard fork in early December, is edging back to full capacity and currently sits at 80%. The broader market may have traded somewhat mixed and China exposed assets such as NEO (NEO) and VeChain (VET) rallied over 10%. As a guide, since President Xi announced China's push for blockchain, NEO has gained almost 70%, whereas VeChain has rallied almost 110% in just over two weeks.

In other news, derivatives exchange CME Group has announced it will launch options on its bitcoin futures contracts in January. In a notice on its website on Tuesday, the Chicago-based exchange said that as long as it gets the green light from regulators, options will go live on Jan. 13, 2020.

Telegram has asked the New York Southern District Court to throw out accusations by United States regulators that its in-house cryptocurrency is a security. In a filing on Nov. 12, Telegram’s lawyers accused the US Securities and Exchange Commission (SEC) of abandoning just practice in its criticisms. The SEC had previously argued Telegram was engaging in the sale of unregistered securities when it sold its GRAM tokens to vetted investors. Despite the pressure, investors rejected a refund of money paid.

Finally, Justin Sun, founder of crypto platform Tron, said he is part of the investor group that recently acquired Poloniex from fintech firm Circle, after denying his involvement initially. Speaking at a joint Tron-Poloniex event live-streamed over Twitter on Tuesday, Sun said Tron was among several investors in the exchange, but the exchange is operated independently from his company. Founded in 2014, Poloniex was acquired by Circle in early 2018 for $400 million. The exchange, which once commanded more than 50 percent of exchange transactions, has seen its volume steadily dwindle in recent times. Before its recent dispersal, Poloniex had little more than 1% of the exchange market. Tron (TRX) has been one of the better-performing assets this morning, up just over 4%.

Thank you for reading,

The BeQuant’s Analytics team