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Week 4 Recap

What. A. Bloodbath. This week was easily the worst week for the portfolio since its inception. Hours after last week's update, China's central bank and other Chinese regulatory bodies declared that Initial Coin Offerings (ICO's) are illegal and that ICO related fundraising activities must cease immediately. Money raised via ICO's thus far must be paid back to investors unless the ICO meets certain requirements. So far it appears that offering opt-in refunds is good enough for regulators for the time being.

NEO, an up and coming cryptocurrency based in China that has been hyped for its goal of working with Chinese regulators to achieve legitimacy, announced voluntary refunds to anyone who wanted one from their two ICO rounds. NEO is attractive because many believe that foreign businesses operate at a significant disadvantage in China if they aren't majority owned by Chinese citizens/interests. Given that NEO is a Chinese start up, it was expected to be a crypto leader in China.

While this move wasn't particularly surprising (China's ICO scene is rife with scams, money laundering, and corruption), it still caught the crypto community by surprise. To give you some context on the explosion of ICO popularity in China, here's a quote from the WSJ:

There were 43 ICO platforms in China as of July 18, according to a report by the National Committee of Experts on the Internet Financial Security Technology. Sixty-five ICO projects had been completed, the committee said, raising 2.6 billion yuan ($398 million), Bloomberg reported. Then in July and August alone, the market went boom as China has a habit of doing sometimes. Chinese tech firms raised $766 million in crypto-currencies in local ICOs in just 8 weeks, according to Shanghai Security News.

Following this announcement, cryptocurrencies across the board dropped 10+% in a matter of minutes. Cryptocurrencies with heavy ties to China, such as NEO, dropped as much as 50% overnight. Most crypto's held a bit of a rally in the days that followed this announcement, only to get hammered back down on September 8th with another announcement out of China: domestic exchanges would be banned from trading in ANY virtual currencies. Over the Counter (OTC) trades would still be allowed but domestic exchanges would be completely banned from virtual currency trading. This triggered another route in prices, resulting in another 10+% drop. It's unclear when these rules will take effect.

So that's week 4. The portfolio is now resting around its initial starting value. The only currency to partially withstand the onslaught this week: LISK!

Week 4 Results

This week's "winner" (let's call it this week's survivor instead) is LISK with a gain of +1.06 USD (4.5%) and the biggest loser was ByteCoin with a loss of -5.49 USD (29%). Details below:

week4_summary-2

week4_positions

week4_usd_percent

week4_usd

Here are the same diverging bar charts showing absolute gain and percent gain, but baselined againsnt BTC. You can see that Bitcoin shows $0 gain for the week, and 0% increase:

week4_btc_percent

week4_btc

week4_balance

If you can't tell which currency is floating near the top because this chart is hot garbage, it's LISK!

week4_multiline

Symbol Name Quantity Price September 3rd September 10th Week Change
AEON AEON 12.4 0.794 9.78 9.85 0.07
BCN ByteCoin 8500 0.001581 18.93 13.44 -5.49
BTC Bitcoin 0.00248323 4282.74 11.38 10.64 -0.75
BNT Bancor Network 3.42 2.33 9.71 7.97 -1.74
DASH Dash 0.035 326.15 12.44 11.42 -1.03
DCT Decent 8.221 0.7281 9.45 5.99 -3.47
DNT District0x Network 47.75 0.05859 4.36 2.80 -1.56
DOGE DogeCoin 6000 0.001586 12.85 9.52 -3.34
EDG EDG 11 0.6296 8.43 6.93 -1.51
EOS EOS 7.524 0.7564 9.63 5.69 -3.94
ETC Ethereum Classic 0.701 15.56 13.56 10.91 -2.66
ETH Ethereum 0.029 303.86 10.15 8.81 -1.33
LSK Lisk 3.31 7.46 23.63 24.69 1.06
LTC LiteCoin 0.2 67.92 15.85 13.58 -2.26
MAID MaidSafeCoin 20 0.6006 13.39 12.01 -1.38
NXT Nxt 94 0.08912 10.06 8.38 -1.68
OAX OpenANX 5.587 0.5242 4.06 2.93 -1.13
PLBT Polybius 1.346 6.06 8.35 8.16 -0.19
PPC PeerCoin 5.618 1.58 10.56 8.88 -1.69
QAU Quantum 59.229 0.2042 13.56 12.09 -1.47
SC SiaCoin 1400 0.00681 12.07 9.53 -2.53
SNC SunContract 112.863 0.04315 5.17 4.87 -0.30
STRAT Stratis 1.844 5.94 12.02 10.95 -1.07
STX Stox 4.167 0.938 4.88 3.91 -0.97
XDN DigitalNote 3700 0.002326 9.94 8.61 -1.34
XEM NEM 38 0.26 11.40 9.88 -1.52
XMR Monero 0.12 113.8 15.01 13.66 -1.36
XRP Ripple 62 0.2181 14.24 13.52 -0.71
ZEC ZCash 0.04 219.91 10.50 8.80 -1.70
ZRC ZR Coin 7.808 1.19 12.02 9.29 -2.73
ZRX 0x Protocol 28.066 0.2526 8.20 7.09 -1.11
Totals: 345.58 294.77 -50.82

Want to follow along?

If you're Canadian and want to try the same thing, I use QuadrigaCX to purchase bitcoin, ethereum, or litecoin to then transfer to an exchange that supports all these alternative currencies. Funding your account is relatively easy as you can use Interac Online to fund your account instantly. I used HitBTC to buy all 31 currencies.

Click here for details about this experiment and what the rules are.

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