This Week in Crypto: Jan 14th - Jan 20th

social-trends

#1

Each day, our Social Trends tool calculates the top 10 trending words on crypto-related social media, including 100s of crypto subreddits, Telegram and Discord groups, private/hidden trader chats and more.

This is, essentially, a data-backed list of the biggest stories in crypto at any moment.

Still, we can’t tell why these words are important just by looking at the list.

Why is BQX trending? Has there been a big announcement or a pump and dump? Is the crowd reaction overwhelmingly positive, somewhat negative, or decidedly mixed? Without proper context, the words - by themselves - are hopelessly useless.

So with the help of our amazing community members, we’ve recently started investigating these daily lists of top trending topics, trying to explain and excuse their momentary ‘virality’. We publish the analysis each day on our forum.

Combining all our daily threads of the week, here are the biggest stories in crypto from Monday, January 14th, until today:

  • Breakout Coins

If you’ve been following our daily analysis of social trends for the past few days, you’d be forgiven for thinking you’re back to mid 2017.

The bear market is still in full swing, but on crypto social media it has been a week of breakout coins, small bull runs and unsolicited hype.

For us, it all started on Monday, when we saw Phx topping our list in 3 different time frames:

The coin reached a two-week-high $0.0106, and looked like this when it appeared on our list:

But that was just the beginning.

Over the next 7 days, over 20 different coins would find themselves among our top 10 trending words; all breaking out for no discernible reason, and becoming the biggest stories of the day in the process.

Here’s a partial list of the many suddenly-bullish altcoins that made our top 10 list:

-Phx
-Vlc
-Tnt
-Dlt
-Powr
-Qlc
-Vibe
-Lend
-Gto
-Rlc
-Mth
-Mda
-Arn
-Oax
-Rep
-Bqx/Ethos
-Bcpt
-Cloak
-DOCK

Why so many breakouts? Well, for one, there doesn’t seem to be a common pattern - not one immediately visible anyway. Our researchers are taking a deeper look at various on-chain and social activity for these and other coins as we speak, and we’ll have an in-depth analysis up on our blog in a few days - so stay tuned!

In the meantime, however, we’ve learned something pretty interesting (read: very valuable) about our new social tool: whenever one of these breakout coins showed up on our top 10 list, it was either peaking or just about to.

Revisiting the tickers a day or so later (once they were no longer ‘viral’) revealed a common pattern - sharp movement south, and a confidently bearish trend.

Further analysis and some backtesting is needed, but it would appear that the rise and fall of a breakout coin on our list coincides squarely with their rise and fall on the market. As such, we are seeing increasing value in using our Social Trends as a powerful tool for predicting the tops. But more on this another time!

  • Cryptopia (3 days on our list)

One of the biggest news of the week, the New Zealand-based crypto exchange suffered a security breach on Monday, resulting in ‘significant losses’, according to the company release.

While no official numbers have been released yet, estimates range anywhere between $2.5 and $3.5 million.

The site has been in maintenance mode since, and Cryptopia says it is cooperating with the NZ Police and High Tech Crimes Unit to try and identify the culprits.

While the hack occured on the 13th, not much has happened since. Binance has frozen some of the funds which were stolen from the NZ crypto exchange, with their CEO even expressing his disbelief on Twitter:

While some are trying to track down stolen funds, others are shouting “inside job” and “exit scam” at Cryptopia’s founders.

  • Grin (3 days on our list)

Grin, a new privacy-oriented cryptocurrency that leverages the popular mimblewimble protocol formally launched on Tuesday. It’s first 48hrs were…rocky.

The coin began trading at a high price of $261, before nosediving into oblivion soon thereafter, losing ~95% of its value in less than a day. That said, some have been quick to point out that a similar launch pattern was observed for other privacy coins including Monero, Zcash, and Ravencoin.

One of the popular aspects of grin is that there’s no pre-mine, founder’s rewards, or anything like that. It’s all fair game, good ol’ POW style. But of course - whoever has the mining equipment gets the worm!

  • Litecoin (3 days on our list)

LTC has gone down a peg or two on the list of top 10 crypto assets this past week, and is currently sitting at #8, right behind Tether.

Still, it wasn’t all bad news for Litecoin this week. Coingate, a prominent cryptocurrency payments platform, has now adopted the Litecoin’s Lightning Network to process cryptocurrency payments on its platform.

The first merchant to use the ‘Litening Network’ will be Surfshark, a VPN provider, tho Coingate hopes all 4,500 of their merchants will be interested in integrating Lightning to reduce friction on both sides.

  • Putin/Russia (2 days on our list)

Is Putin bullish on Bitcoin?

A Russian university lecturer with ties to the government recently said he believes that US sanctions will force the Kremlin to diversify its cash reserves into Bitcoin. According to some, Russia could buy as much as $10 Billion in BTC as part of its de-dollarisation efforts.

Is there some merit to this news? We doubt it. Governments are notorious late adopters, and tend to buy at the end of the trend. Also, following the initial rumours, a Russian official stepped forward a few days later to say no dice:

‘The Russian Federation, like any other country in the world, is simply not ready today to somehow combine its traditional financial system with cryptocurrencies’ said Elina Sidorenko, chairperson of the Russian Duma’s working group for managing risks of cryptocurrency turnover.

But perhaps even more importantly, do we even want this news to be true? Based on their track record, Russia’s investment strategy is a bona fide bearish indicator. They dumped USD right before it mooned. The bought billions of CNY right before it crashed. So if Russia was indeed considering a purchase of 10bn BTC, it’s unlikely it would fair well for the crypto market.

  • BOS (2 days on our list)

The BOS mainnet is now live.

The network is the newest addition to the EOSIO sidechain ecosystem, and will serve as a link to accelerate the development and evolution of IBC (Inter-Blockchain-Communication)

  • Coinstar (2 days on our list)

Now you can buy Bitcoin in kiosks across the U.S.

Coinstar (3 days on our list) an international coin counter has teamed up with Coinme, a US-based Bitcoin ATM company, to offer BTC-purchasing facilities in “thousands” of new locations. As part of the deal, Coinstar also invested an undisclosed sum in Coinme.

The company not did not disclose how many of its 20,000 kiosks would initially allow bitcoin purchases. The machines allow buying up to $2,500 in BTC.

  • Satellite (2 days on our list)

Blockstream, a blockchain technology company is launching a beta version of its Satellite API, aimed to help developers broadcast data via the company’s satellite network.

Users can utilize Blockstream’s satellites for encrypted messaging, and pay for the service via the Lightning testnet, meaning that broadcasting is free for the moment.

  • Bitmain

It’s not looking good for Bitmain.

The chinese mining giant is reportedly closing another overseas office, this time in Amsterdam, less than a month after the firm closed its operations in Israel. An additional report recently surfaced, claiming that Bitmain also halted its Texas mining operations, in the city of Rockdale, TX.

A Bitmain spokesperson said these are all part of a wider mission to “build a long-term, sustainable and scalable business.”

On January 10th, it was also reported that Bitmain’s co-founders, Jihan Wu and Micree Zhan Ketuan, are to step down as co-CEOs , as the company’s IPO continues to stall.


As always, visit SANbase to explore these and other trends in more detail!