Crypto Market News – “This Week in Crypto” May 8, 2020
Another week of crypto market news covering central banks, Libra, and altcoin news. Insight into CoinMetro BizDev, and how to shape for the future — all in This Week in Crypto!
Crypto Market News Highlights
1. [14:16] Liquity, a new Ethereum-based lending protocol, promises a fully redeemable stablecoin
Kevin will make fun of this one when it actually happens.
The idea of DeFi — Decentralized Finance — is a great one. Kevin likes it, and thinks it can be used for many things in the future. But it might be somewhat centralized, unless we can make a system that can absolutely survive through any crisis and without any human interaction, and even with the eyes of the regulator on them. So much so, that the regulator needs to adapt the way they do business, in order to service the underlying DeFi community. We’re not there yet. However, Kevin does think we have the potential to get there.
But statements like this, “fully redeemable” — if it is a stablecoin pegged to an asset, you should have the assets somewhere. So it should be redeemable.
DeFi is going to grow. Yet, it’s going to fall on its face a couple more times, before we get to the point where we can really hang our hats on it. It’s not a broken system, but it has many broken pieces that need to be fixed. Look what happened with the Covid crisis. We had things almost exploding, like MakerDAO. Because the theoretical mechanism that they built, didn’t really work that well in the real world.
2. [16:15] Binance Praises Libra, Says It Will Revolutionize Payments
Well, guess who wants to list Libra. That’s a pure business move. Kevin can’t begin to say what’s in CZ head, but anybody looking at Libra — the reason why Libra is so attractive, is that 2 billion user accounts are tied to it. So you become the test pilot exchange for Libra, 2 billion users behind you. So of course you’re going to say you like it, especially being unregulated like Binance.
Libra will become a thing. But it’s not going to be any different from PayPal, venmo, it’s just going to be a digital version in a DLT. It’s not going to add substantial more benefit for society, but it’s going to give Facebook the ability to potentially monetize 2 billion user accounts. So, that in itself, even if it’s not innovative, is big.
Curious to learn what’s stalling Libra? Read CoinMetro’s take on Libra 1!
3. [23:55] Justin Sun Takes on the Stablecoin Industry with New USD-pegged TRX Token
Well, the first words in that sentence were “Justin Sun”. This means it’s probably a marketing ploy. It may either never launch, launch poorly, or launch and he’d say it’s getting used, but not really.
We don’t necessarily need another crypto influencer with a stablecoin. What we need is a stable company or government or institution, that can actually back an instantly redeemable stablecoin, that can actually be used for more than settlement between exchanges or nefarious tax evasion, or moving money across borders where there are sanctions.
We do need more reliable stablecoins, but we need them to be made by reliable people and institutions.
Check out our Medium post to read more crypto market news!
Live Questions – CoinMetro updates and Crypto Market News
Branding and Marketing
[39:38] How is the rebranding push going?
Rebranding is coming along. The guy who did our illustrious t-shirts designs did also do some test illustrations for us. We just got on another UI/UX designer. So rebranding is going along. We’re testing a few different people to see who can really refine the brand.
Join CoinMetro’s Telegram channel for sneak peeks of the rebranding and more discussions on crypto market news!
[47:59] How is marketing going?
We started testing with Google in the US. We spent under a €1000 so far on test-ads. Kevin hasn’t looked on the test data yet. But Kevin will have a report on this after 15-30 days. The copy and things are going to change quite frequently to find the best ROI. We are moving forward.
[34:40] When is the T-shirt store coming online?
Kevin has a basic store online, and we have some products worked out through a supplier. They are generally drop shipped, for the most part. Kevin has been testing the quality. So far, so good. Kevin has some socks and a few other things coming in the next week, and once the quality has been gauged of these different supplies, then we’ll be able to push it online.
[40:25] How big will CoinMetro be in Europe and worldwide if your plans work out?
Sky’s the limit. If you look at the size of Binance, Coinbase, they’re big players — in a massively small market. The market is going to expand. Theoretically, sky’s the limit. We could be 5 times as big as they are right now.
Timing is important. But being first is in many cases not the best thing to be.
[53:58] Can CoinMetro become big in the US, given the fact that they have so many exchanges there?
Can we become big in the US? Yes. Doesn’t matter how many exchanges there are. How many banks are there in the US? How many banks in the US have more than $50-$100 million? Pretty much all of them. Even small ones. How many of those banks offer some type of security trading? Many. Many more than there are crypto exchanges! Those markets are larger than crypto right now, but the crypto market will grow.
[46:12] What’s new in Bizdev?
There’s a lot. Many Bizdev and fundraising calls. The focus is on payment gateways, banking, Banking-as-a-Service, bringing on additional products. Even DeFi products. We’re going back to the DeFi section and looking at different stablecoins. Even things like lending and staking to understand where we might be able to fit that. Also, our own CoinMetro bond and another that will be tradeable. The Japanese real estate bond which will be a construction-equity bond turning into a revenue-share token. So, this will then give access to utility tokens to those holders so they can actually use that property, which can be traded on CoinMetro. Kevin is envisioning something in that sandbox like a marketplace for things. “I got some tokenized days on a Japanese ski resort, this guy got a tokenized antique car”.
There’s a lot going on.
[48:53] Any update on USD?
Back and forth with the Banking-as-a-Service provider in the US. The providers that we are now contractually linked to here in the UK also have their eyes potentially on the USD market, though it may not happen until the end of this year, or until early next year.
We are also looking at another bank that provides something like a BaaS platform which potentially gives us access to USD. It’s on top of Kevin’s radar.
[57:23] How will you advertise XCM?
There is not really much of a need to advertise XCM. XCM is already built into the platform. It will become more and more built-in over time. Particularly, to where you need XCM or are acquiring XCM on the backend to use the services. So it’s about advertising the services.
XCM sells itself! Are you up-to-date on the XCM Ecosystem?
[28:19] Kevin you mentioned that you have funds to operate until August. Afterwards do you plan to reduce Operations cost (how large is the sum) and where did the fundraiser from last year go? Just Operation cost? Is there a new fundraiser planned? ~ MainAppearance5
According to our current burn rate, the end of August is roughly where our cash at hand would be zero. That doesn’t mean we’d have zero cash in August, but it means that based on today and the burn rate, we would.
Kevin is transparent with the community, and sometimes gets burned for that. A normal CEO would simply say that fundraising is ongoing, and we can manage the burn rate. Which is exactly what Kevin is doing. Fundraising is ongoing, and we can manage burn rate. But Kevin likes to be really honest, because most people don’t understand what running a company is.
Is new fundraising planned? It’s ongoing. In talks with five different groups. Calls every week for the past few weeks. We’ve been in this for quite some time, and now we are getting more in-depth.
[31:45] You said you’ll ramp up Marketing when you got the cost per New User to 5$. Will you get there by june to launch full Marketing? How much money per month will you then invest, also regarding the current funds situation? ~ MainAppearance5
The goal is to get user acquisition to $5. In this industry, most guidance you’ll find will say that user acquisition cost is $50-$100. That’s obviously 10-20x more than what Kevin quoted in the last AMA. The goal is $5.
Progress on user acquisition cost
Are we going to reach the goal? Well, maybe, maybe not. Kevin also explained that our monthly revenue, looking at the data from all the end of 2019, was roughly €5 per month. Now it’s €10. So it’s doubled. We’ve been able to double it, by way of launching additional products, and streamlining those products. And we will continue to raise the “per user monthly average revenue”. So, the goal is for the acquisition cost to not be more — in a perfect world, than one month of revenue. But up to 2-3 months worth of revenue.
[25:11] “Kevin Explains Crypto” Term: RSI (Relative Strength Index)
Now that you are up to date with crypto market news, let’s focus on crypto education.
RSI is a price indicator. Indicators are ways to look at past price movements. RSI is set to a period of time, like 30 minutes, 1 day, 1 year. And it compares for example 30 minutes vs the past 30 days.
Basically it compares the average over two time periods, if the asset relatively has strength, like it is going to go higher, or if it is weak, and going to go lower.
Curious to learn more about indicators? Check out CoinMetro’s guide on Trading Indicators, Best Indicators for Swing Trading, and Day Trading Crypto Tools!
Interested in learning more? Have a look at the video where Kevin explains “RSI”:
That’s a wrap for this week’s crypto market news with CoinMetro Founder Kevin Murcko! Please join us next week for more CoinMetro reports, Bitcoin news feed, Altcoin prices and Ethereum news! We’ll be live on CoinMetro’s Facebook and YouTube Channel at 1 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!
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