Professional Documents
Culture Documents
BLOCKCHAIN
2018
Register for Consensus 2018!
1. EXECUTIVE 4. INVESTMENT
SUMMARY 5. GOVERNMENT
2. PUBLIC & REGULATION
BLOCKCHAINS 6. SENTIMENT
A. BITCOIN E. XRP
B. ETHEREUM F. ZCASH SURVEY
7. COINDESK
C. BITCOIN CASH G. MONERO
D. LITECOIN
3. ENTERPRISE A. Research
BLOCKCHAINS Framework
Bitcoin & cryptocurrencies make historic moves: ICOs and VC hit new highs:
- $3.23bn for ICOs and $200mn for VC. However,
- After uncertainty around fork ends, bitcoin’s price
forks were the largest token generating event of the
breaks free and topples multiple milestones.
year with $44bn created.
Meanwhile, BTC dominance shrinks to all time lows.
Sentiment Survey:
Key metrics up across public blockchains:
- 81% did not go into debt to buy crypto. Of those
- Hashrate, >1MB Bitcoin blocks, ethereum that did, 52% already paid it back. 94% check prices
blockchain transaction records, all time valuations at least every day.
Data Source: CoinDesk
- Bitcoin dominance falls below 40% after a rebound above 50% early
in the quarter.
.
- Many cryptocurrencies reached all time highs, notably BTC at
almost $20k and ETH at almost $1k.
- CryptoKitties’ popularity slowed down the ethereum network but
showed promise for future developments.
- Bitcoin Cash solidifies within the top 10 market cap with a hashrate
that surpassed BTC’s for one day in November.
Data Sources: CoinDesk, Image
Notes: Expanded upon in Section 2: Public Blockchains
- Hyperledger lost CME Group, Deutsche Borse Group, R3, and about
15 other members.
- Bitcoin futures see high interest but low volume, with small
traders going long and large traders going short.
- The CFTC approved CME & Cboe’s launch of bitcoin futures contracts.
Aggregate market cap breaks $600bn: Bitcoin dominance falls below 40%:
- Public blockchain assets rallied 3x, - Bitcoin ceded it’s +50% Q2 to Q3 comeback.
over $75bn in value over the quarter.
Some fees rise, but BTC’s fees soar: Ripple grew ~300x YTD:
- Fees generally increased but BTC saw record- - All major cryptocurrencies are up approximately
breaking fees and congestion in Q4. 1,000%.
1200%
1000%
800% 707.3%
600%
400%
200%
$500
$300
301% Visa ≈ $250 billion
Gold ≈ $8 trillion
$200
Oct. 1:
$149.1bn $448.8bn
$100
$0
Oct-17 Nov-17 Dec-17
100%
Percentage of Total Cryptocurrency Market Cap Bitcoin: 38.70%
Ethereum: 11.92%
Bitcoin Cash: 6.97%
90% Litecoin: 2.06%
Ripple: 14.52%
Dash: 1.33%
80% NEM: 1.52%
Monero: 0.88%
IOTA: 1.61%
70% NEO: 0.80%
Others: 19.68%
60%
50%
40%
30%
20%
10%
0%
Jan ’17 Feb ’17 Mar ’17 Apr ’17 May ‘17 Jun ’17 Jul ‘17 Aug ‘17 Sep ’17 Oct ’17 Nov ‘17 Dec ‘17
20000%
15000%
10000%
5000%
0%
January February March April May June July August September October November December
2017
Data Source: Coincap, Coinmetrics, CoinMarketCap
Notes: Average day over day price movement (absolute value)
Quarter BTC ETH BCH LTC DASH XMR ETC ZEC Total
1,000,000 Q1 '16 201,633 20,242 4,453 1,582 580 20,242 248,733
Q2 '16 220,659 40,895 5,519 1,184 434 40,895 309,586
Q3 '16 218,831 45,109 3,432 1,549 1,038 21,324 291,283
800,000 Q4 '16 260,987 42,908 3,455 1,238 1,600 14,658 3,186 328,032
Q1 '17 286,052 58,291 3,345 3,118 2,720 19,890 2,561 375,975
Q2 '17 290,845 154,176 11,707 4,893 2,796 27,524 4,033 495,974
600,000 Q3 '17 242,180 315,631 12,391 21,808 5,910 3,835 34,614 5,399 641,768
Q4 '17 319,085 589,171 23,209 51,328 8,915 5,358 42,597 7,129 1,046,791
400,000
200,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
'09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 '17
$14.00
Average Cryptocurrency Transaction Fees
Quarter BTC ETH BCH LTC DASH XMR ETC ZEC
$12.00 Q1 '16 $0.08 $0.01 $0.05 $0.04 $0.07
Average Transaction Fees ($)
$4.00
$2.00
$0.00
Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17
100%
Q4 - Global Google Search
90% Trends
Traffic Relative to Maximum in Period (%)
80%
70%
60%
50%
Oct-17 Nov-17 Dec-17
40%
30%
20%
10%
0%
Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17
$600
Aggregate Market Cap ($, billions)
$500
$400
$300
$200
$100
$0
Oct-17 Nov-17 Dec-17
Data Source:
Bitcoin Bitcoin
Historical Market Cap Q4 2017 Market Cap Dec. 31:
$350bn $350bn $224.9bn
$300bn $300bn
$250bn
$250bn
$200bn
$200bn
$150bn
$100bn
$150bn
$100bn
Oct. 1:
$71.6bn 214%
$50bn
-
$50bn
-
$153.3bn
4/28/13
7/28/13
10/28/13
1/28/14
4/28/14
7/28/14
10/28/14
1/28/15
4/28/15
7/28/15
10/28/15
1/28/16
4/28/16
7/28/16
10/28/16
1/28/17
4/28/17
7/28/17
10/28/17
Oct Nov Dec
2017
Dec. 17:
Bitcoin nearly
$25,000 hits ATH of Dec. 20:
$20k Youbit exchange
hacked
Nov. 28: Dec. 28:
$20,000 Bitcoin South Korea crackdown
hits ATH on cryptocurrency trading
of $10k
Nov. 8:
SegWit2x
$15,000 Oct. 24: postponed Nov. 15: Dec. 18:
Square Cash testing CME futures
Bitcoin Gold
buying and selling open
Oct. 12: hard fork
of bitcoins
Bitcoin hits
$10,000 ATH of $5k Dec. 10: Dec. 22:
CBOE futures Coinbase temporarily
open & crash halts trading
website
$5,000 Nov. 12:
bitcoin’s
Oct. 12: Oct. 31: Nov. 28:
hashrate falls
Jamie Dimon CME & CBOE
below bitcoin
announce futures
$- insults Bitcoin cash’s for 1 day
$16bn
$14bn
$12bn
$10bn
$8bn
$6bn
$4bn
$2bn
-
January April July October January April July October
2016 2017
100%
USDT
% of Aggregate Trading Volume
KRW
80%
60%
JPY
40%
USD
20%
USD
0%
October November December
2017
Global Daily Bitcoin Exchange Trading Volume Global Daily Bitcoin Exchange Trading Volume
USD JPY CNY EUR KRW PLN HKD USDT USD JPY CNY EUR KRW PLN HKD USDT
100% 100%
80% 80%
CNY
60%
CNY 60%
JPY
JPY
40% 40%
2017
$16bn Gemini
$14bn 9.53%
- Bitfinex
$12bn - Coinbase
$10bn Bitsamp Bitfinex
- Bitstamp
$8bn 15.72% 45.94% - Gemini
$6bn - Kraken
$4bn
Q3 2017:
$2bn
Bitfinex: 44.92%
- Coinbase
24.74% Bitstamp: 17.18%
2017
Coinbase: 16.81%
Gemini: 12.97%
12m 1600bn
Average Hashrate QoQ Average QoQ
Quarter (TH/s) Growth Difficulty Growth
1400bn
10m
Q1 2016 1.06m 94% 139.82bn 98%
Q2 2016 1.39m 31% 188.36bn 35%
Q3 2016 1.59m 14% 216.75bn 15% 1200bn
Difficulty
6m Q3 2017 6.76m 54% 885.87bn 52% 800bn
Q4 2017 10.89m 61% 1421.24bn 60%
600bn
4m
400bn
2m
200bn
- -
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Average Daily
Bitcoin Transaction Fee Growth
(Average $ per transaction) Quarter Bitcoin Transaction Fees QoQ Change
$14.00 $13.20
Q4 2013 $0.19 125.8%
Q1 2014 $0.15 -19.6%
$12.00 Q2 2014 $0.10 -35.3%
Q3 2014 $0.09 -4.9%
$10.00 Q4 2014 $0.06 -40.8%
Q1 2015 $0.04 -32.8%
$8.00 Q2 2015 $0.04 2.9%
Q3 2015 $0.06 42.8%
$6.00 Q4 2015 $0.06 12.4%
Q1 2016 $0.08 36.4%
$4.00 Q2 2016 $0.13 51.9%
Q3 2016 $0.18 36.5%
$2.00 Q4 2016 $0.24 37.9%
Q1 2017 $0.62 156.4%
$0.00 Q2 2017 $2.41 288.5%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q3 2017 $3.21 32.9%
2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017
Q4 2017 $13.20 311.7%
Data Source: Blockchain
Average Daily
Bitcoin Transactions Quarter Bitcoin Transactions QoQ Change
Q4 2013 60,280 22.9%
Q1 2014 63,991 6.2%
350,000 Q2 2014 62,639 -2.1%
319,085
Q3 2014 67,260 7.4%
300,000
Q4 2014 82,724 23.0%
250,000 Q1 2015 95,344 15.3%
Average # per day
1.00
Hit all time high of almost $1k: Network Hashrate continues rise:
- Ethereum skyrocketed, along with other - Hashrate grew by about 40% continuing the
cryptos, especially in December. growth trend.
Ethereum Ethereum
Historical Market Cap Q4 2017 Market Cap
Dec. 31:
$90bn $90bn $68.9bn
$80bn $80bn
$70bn $70bn
$60bn $60bn
Oct. 1:
$50bn $50bn
$28.6bn
141%
$40bn $40bn
$30bn $30bn
$20bn $20bn
$10bn
-
$10bn
-
Oct Nov Dec
$40.2bn
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 2017
Dec. 15:
$900 ETH on
Bloomberg
$800 Terminal
Dec. 4:
$700 Nov. 28: CryptoKitties
CryptoKitties slow down
Oct. 16:
$600 Byzantium launches transactions
Hard Fork Nov. 7: Dec. 12:
Oct. 18:
$500 Sberbank Parity wallets Reaches
freeze $150m ATH of
joins EEA $500
$400 Dec. 11:
UBS launches
$300 ethereum
project
$200 Oct. 11:
CoinShares announces
$100 European exchange-
traded note for ether
$-
Oct Nov Dec
Data Sources: CoinDesk, CoinDesk ether price page
Global Daily Ether Exchange Trading Volume Average Daily Ether Exchange Trading Volume
$1800m
$5.0bn $1.6b
Total Daily Trading Volume ($, billions)
$4.0bn $1400m
$1200m
$3.0bn $1000m
$800m
$2.0bn
$600m
$400m
$1.0bn
$200m
- -
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
90%
80%
Relative Share of Total Trading Volume
70%
60%
50%
40%
30%
20%
10%
0%
January February March April May June July August September October November December
2017
Data Source: Coincap, Coinmetrics
Global Daily Ether Exchange Trading Volume Q4 2017 Ether Exchange Trading Volume
Share of Volume Across Currencies
KRW USD BTC CNY EUR USDT JPY
KRW USD BTC CNY EUR USDT JPY
100%
% of Aggregate Trading Volume
90%
BTC EUR
80% 4.3%
41.4%
70%
BTC CNY
60%
0.3%
50% USDT
40% 3.9%
30% USD
20% KRW
16.3% JPY
10% KRW 0.5%
0% USD
October November December 33.3%
2017
Q2 2017: Q3 2017:
BTC: 31.6% BTC: 19.6%
USD: 25.5% USD: 28.9%
KRW: 29.5% KRW: 36.9%
Data Source: CryptoCompare
Ether Exchange Trading Volume (BTC) Ether Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
Binance Bitfinex OKEX Poloniex HitBTC Coinbase Bitfinex Gemini Kraken Bitstamp
100% 100%
Share of Total Volume (%)
60% 60%
40% 40%
20% 20%
0% 0%
October November December October November December
Ether Exchange Trading Volume (BTC) Ether Exchange Trading Volume (USD)
Share of Total Across Exchanges Bitstamp Share of Total Across Exchanges
Poloniex 6.57%
30.53% HitBTC Coinbase
Kraken
13.30% 5.42%
34.83%
OKEX
6.95%
Gemini Bitfinex
Bitfinex Binance 11.24% 41.94%
20.07% 29.15%
Q4 2017:
BTC: 319,085
$-
Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Hashrate Growth
(Average GH/s per day)
140,000
122,516
120,000
100,000
80,000
60,000
40,000
20,000
-
Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
9/30/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
9/30/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17
10/8/17
10/15/17
10/22/17
10/29/17
11/5/17
11/12/17
11/19/17
11/26/17
12/3/17
12/10/17
12/17/17
12/24/17
12/31/17
Herfindahl-Hirschman index (HHI)
Bitcoin: 2080
Bitcoin Cash: 2640 While the BCH hashrate started off near BTC, it generally stayed
below except in November during Postponement of Segwit2x.
Data Sources: Bitinfocharts, Blockchain, Fundstrat
$50bn $50bn
$40bn
$40bn
$30bn
$30bn
$20bn
$10bn
$20bn
Oct. 1:
$7.2bn
457%
-
$10bn
$32.9bn
Jul-17
Aug-17
Aug-17
Aug-17
Aug-17
Sep-17
Sep-17
Sep-17
Sep-17
Oct-17
Oct-17
Oct-17
Oct-17
Oct-17
Nov-17
Nov-17
Nov-17
Nov-17
Dec-17
Dec-17
Dec-17
Dec-17
-
Oct Nov Dec
Global Daily Bitcoin Cash Exchange Trading Volume Average Daily Bitcoin Cash Exchange Trading Volume
$1400m $1.3b
$4.5bn
Total Daily Trading Volume ($, billions)
$2.5bn $800m
$2.0bn
$600m
$1.5bn
$1.0bn $400m
$.5bn
$200m
-
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 -
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Global Daily Ether Exchange Trading Volume Q4 2017 Bitcoin Cash Exchange Trading Volume
Share of Volume Across Currencies
USD BTC USDT KRW EUR ETH JPY
USD BTC USDT KRW EUR ETH JPY
100%
% of Aggregate Trading Volume
90%
80% USDT KRW
70% 2.0% 31.8% EUR
1.3%
60%
50%
ETH
40% 1.7%
30%
20% BTC JPY
10% 42.6% USD 19.8% 0.9%
0%
October November December
2017
Q3 2017:
KRW 44.3%
BTC 36.4%
USD 15.6%
Data Source: CryptoCompare
Bitcoin Cash Exchange Trading Volume (BTC) Bitcoin Cash Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
HitBTC OKEX Bitfinex Bittrex Binance Bitfinex Coinbase Bitstamp Kraken HitBTC
100% 100%
Share of Total Volume (%)
60% 60%
40% 40%
20% 20%
0% 0%
October November December October November December
Bitcoin Cash Exchange Trading Volume (BTC) Bitcoin Cash Exchange Trading Volume (USD)
Share of Total Across Exchanges HitBTC Share of Total Across Exchanges
Bitfinex
Bittrex
Binance 8.17% Bitstamp
23.07% 0.68%
16.26% 13.81% Bitfinex
Kraken 73.39%
6.14%
20,000 200,000
17,002
15,000 150,000
10,000 100,000
5,000 50,000
0 0
Q3 17 Q4 17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Q4 2017:
BTC: 319,085
Bitcoin Cash Transaction Fee Growth Bitcoin Cash Transaction Fee Growth
(Average $ per transaction) (Average $ per transaction)
$0.19 $0.80
$0.70
$0.19
$0.60
$0.50
$0.18 $0.40
$0.18
$0.30
$0.20
$0.10
$0.00
$0.17
Q3 17 Q4 17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Litecoin Litecoin
Historical Market Cap Q4 2017 Market Cap Dec. 31:
$20bn $20bn $11.8bn
$16bn $16bn
$12bn $12bn
$8bn
$8bn
$4bn
$4bn
Oct. 1: 304%
$2.9bn
-
-
$8.9bn
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Oct Nov Dec
Global Daily Litecoin Exchange Trading Volume Average Daily Litecoin Exchange Trading Volume
$250m
$700m $223,576,813
Total Daily Trading Volume ($, billions)
$500m
$150m
$400m
$300m $100m
$200m
$50m
$100m
- -
Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Global Daily Litecoin Exchange Trading Volume Q4 2017 Litecoin Exchange Trading Volume
Share of Volume Across Currencies
USD BTC USDT KRW EUR ETH
USD BTC USDT KRW EUR ETH
100%
% of Aggregate Trading Volume
90% USDT
80% 3.0%
70% EUR
KRW
60% BTC 3.5%
15.0%
35.6%
50%
40% ETH
30% 0.5%
20%
10%
0% USD 42.2%
October November December
2017
Q3 2017:
USD 39%
KRW 34%
BTC 23%
Data Source: CryptoCompare
Litecoin Exchange Trading Volume (BTC) Litecoin Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
OKEX Binance Poloniex Bitfinex Coinbase Coinbase Bitfinex Bitstamp Kraken HitBTC
Share of Total Volume (%)
Litecoin Exchange Trading Volume (BTC) Litecoin Exchange Trading Volume (USD)
Share of Total Across Exchanges Share of Total Across Exchanges
Kraken
2.05%
Bitfinex Coinbase HitBTC
30.95% 20.87% Bitstamp 3.50%
5.98%
OKEX
Bitfinex Coinbase
5.33%
29.91% 58.56%
Poloniex
27.89% Binance
14.97%
40,000
120,000
30,000
80,000
20,000
40,000
10,000
0 0
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17
Q4 2017:
BTC: 319,085
$0.16
$0.60
$0.12
$0.40
$0.08
$0.20
$0.04
$0.00
$0.00
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17
XRP XRP
Historical Market Cap Q4 2017 Market Cap Dec. 31:
$60bn $100bn
$82.3bn
$50bn
$80bn
$40bn
$60bn
$30bn
$20bn $40bn
Oct. 1:
$10bn
$20bn $7.6bn 971%
-
- $73.6bn
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Oct Nov Dec
Global Daily XRP Exchange Trading Volume Average Daily XRP Exchange Trading Volume
$1200m
$5.0bn $1.1b
Total Daily Trading Volume ($, billions)
$800m
$3.0bn
$600m
$2.0bn
$400m
$1.0bn
$200m
-
Oct-17 Nov-17 Dec-17 -
Oct-17 Nov-17 Dec-17
Global Daily XRP Exchange Trading Volume Q4 2017 XRP Exchange Trading Volume
Share of Volume Across Currencies
USD KRW BTC EUR USDT ETH AUD
USD KRW BTC EUR USDT ETH AUD
100%
% of Aggregate Trading Volume
90%
EUR
80% 4.1%
70% BTC
42.6% USDT
60% 0.0%
50%
ETH
40% 2.2%
30%
AUD
20% 0.7%
10% KRW USD 24.9%
25.4%
0%
October November December
2017
Q3 2017:
BTC: 41.7%
KRW 36.8%
USD 15.9%
Data Source: CryptoCompare
XRP Exchange Trading Volume (BTC) XRP Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
HitBTC Binance Poloniex Bittrex Bitfinex Bitfinex Bitstamp Kraken Poloniex Bittrex
100% 100%
Share of Total Volume (%)
60% 60%
40% 40%
20% 20%
0% 0%
October November December October November December
XRP Exchange Trading Volume (BTC) XRP Exchange Trading Volume (USD)
Share of Total Across Exchanges Bittrex Share of Total Across Exchanges
8.47%
Bittrex Bitfinex Poloniex
25.08% 9.69% 13.54%
Kraken Bitfinex
Poloniex HitBTC
5.94%
36.79% 4.73% 51.99%
Binance Bitstamp
23.71% 20.06%
Q4 2017:
BTC: 319,085
ZCash ZCash
Historical Market Cap Q4 2017 Market Cap
$3bn $3bn
Dec. 31:
$2bn $2bn
$1.4bn
$2bn
$2bn
Oct. 1:
$1bn
$1bn
$.6bn
$1bn
$1bn
123%
-
$.8bn
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
-
Oct Nov Dec
Global Daily ZCash Exchange Trading Volume Average Daily ZCash Exchange Trading Volume
$200m
$450m
Total Daily Trading Volume ($, billions)
$300m
$120m
$250m
$200m $80m
$150m
$100m $40m
$50m
- -
Oct-17 Nov-17 Dec-17
Global Daily ZCash Exchange Trading Volume Q4 2017 ZCash Exchange Trading Volume
Share of Volume Across Currencies
USD BTC KRW ETH RUB
USD BTC KRW ETH RUB
100%
% of Aggregate Trading Volume
90%
80%
70% KRW
60% 21.6% ETH
1.4%
50%
BTC
40% 50.4% RUB
30% 0.1%
20%
10% USD 26.4%
0%
October November December
2017
Q3 2017:
BTC 55.7%
USD 40.8%
ETH 3.3%
Data Source: CryptoCompare
ZCash Exchange Trading Volume (BTC) ZCash Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
100% 100%
Share of Total Volume (%)
ZCash Exchange Trading Volume (BTC) Bittrex ZCash Exchange Trading Volume (USD)
Bittrex Share of Total Across Exchanges 9.63% Share of Total Across Exchanges
22.04% Kraken
Bitfinex
4.62%
Binance 16.46% Poloniex
11.01% 16.41%
Bitfinex
HitBTC HitBTC 56.27%
50.49% 13.06%
5,000 12,000
4,000
8,000
3,000
2,000
4,000
1,000
0 0
Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Oct-17 Nov-17 Dec-17
Q4 2017:
BTC: 319,085
$0.16
$0.60
$0.12
$0.40
$0.08
$0.20
$0.04
$0.00
$0.00
Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Oct-17 Nov-17 Dec-17
Monero Monero
Historical Market Cap Q4 2017 Market Cap Dec. 31:
$8bn $8bn $5.1bn
$7bn $7bn
$6bn $6bn
$5bn
$5bn
$4bn
$4bn
$3bn Oct. 1:
253%
$3bn
$2bn $1.4bn
$2bn
$1bn
-
$1bn
$3.7bn
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
-
Oct Nov Dec
Global Daily Monero Exchange Trading Volume Average Daily Monero Exchange Trading Volume
$240m
$600m
Total Daily Trading Volume ($, billions)
$201m
$160m
$400m
$120m
$300m
$80m
$200m
$40m
$100m
-
-
Oct-17 Nov-17 Dec-17
Global Daily Monero Exchange Trading Volume Q4 2017 Monero Exchange Trading Volume
Share of Volume Across Currencies
USD BTC KRW EUR ETH
USD BTC KRW EUR ETH USDT
100%
% of Aggregate Trading Volume
90%
80%
KRW
70% EUR
21.4%
60% 2.1%
50%
ETH
40%
BTC 1.5%
30% 52.2%
20% USDT
10% USD 22.7% 0.0%
0%
October November December
2017
Q3 2017:
BTC 49.1%
KRW 25.7%
USD 21.8%
Data Source: CryptoCompare
Monero Exchange Trading Volume (BTC) Monero Exchange Trading Volume (USD)
Share of Total Volume Across Exchanges Share of Total Volume Across Exchanges
HitBTC Poloniex Binance Kraken Bitfinex Bitfinex Kraken HitBTC Bittrex Poloniex
100% 100%
Share of Total Volume (%)
60% 60%
40% 40%
20% 20%
0% 0%
October November December October November December
Monero Exchange Trading Volume (BTC) Monero Exchange Trading Volume (USD)
Share of Total Across Exchanges Poloniex Share of Total Across Exchanges
Binance 11.35%
Kraken Bittrex
8.89% 7.58%
Bitfinex 3.72%
15.68%
Poloniex
31.96% HitBTC Bitfinex
18.62% 56.68%
HitBTC
Kraken
39.76% 5.77%
Data Source: CryptoCompare
5,000 10,000
4,000 8,000
3,000 6,000
4,000
2,000
2,000
1,000
0
0
Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Oct-17 Nov-17 Dec-17
Q4 2017:
BTC: 319,085
$4.00 $20.00
$3.00 $15.00
$2.00 $10.00
$5.00
$1.00
$0.00
$0.00
Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Oct-17 Nov-17 Dec-17
Blockchain for Enterprise Market Expected to Grow: We.Trade joins the ecosystem:
- Annual revenue for the enterprise blockchain will increase - 9 banks set up joint venture aiming to ease European
from approximately $2.5bn worldwide in 2016 to $19.9bn domestic and cross-border trade with DLT built by IBM.
by 2025, with a CAGR of 26.2%.
The MultiPlatform Working Group will work to make the ethereum platform available on
Member multiple operating systems and physical hardware. The current version works well on
Fees: $25k certain operating systems, but the group will work toward advances which will make the
platform universally adoptable.
Now 100+ members, recent About 15 members left, will leave, • The National Settlement
additions include: or downgrade their membership. Depository (NSD), the central
They include: depository for Russia's largest
securities exchange group, has
announced it is testing a new
commercial bond trading
platform built on top of the
Hyperledger blockchain
consortium's Fabric software.
• Oracle Corporation opened its
annual conference announcing
building their Blockchain cloud
service on top of
the Hyperledger Fabric project.
• Quilt, Interledger protocol,
joins Hyperledger
Member Fees:
Premier: $250k a year.
General memberships: $5,000 to $50,000
Now 100+ members, recent • Corda v2.0 released • Finastra , R3, and 7 leading
additions include: • Corda 2.0 delivers the addition banks are creating an online
of Observer Node functionality. marketplace to drive
This feature allows transactions transparency and efficiency in
to be forwarded to third parties the syndicated loan market
such as relevant regulators for • R3 and 22 of its member banks
addition to their vaults have developed a solution that
• Corda is a platform for smart leverages distributed ledger
contracts focused on privacy technology (DLT) to enable
and security fast, efficient and cost-effective
• Codebase developed with 50 cross-border payments
financial services and tech • Emali launches training course
firms for R3’s Corda DLT Platform in
• Open-source release of Hong Kong and Southern
platform occurred in 2016 China
• R3’s Corda has become one of
the first DLT solutions
R3 Loses available to users of Amazon
Ripple
Web Services (AWS)
Lawsuit
Data Sources: R3, CoinDesk
Members Projects
Projects Interoperability
Members Projects
Now 10+ members, including: • Aiming to ease European domestic and cross-border
trade we.trade is building a distributed ledger framework
that connects a buyer, sellers, banks and intermediaries
to simplify transaction management and tracking
• The consortium will create a new business entity in the
Republic of Ireland, jointly owned by the eight founding
banks, that will manage and distribute the offering
• Banco Santander, Deutsche Bank, HSBC, KBC, Natixis,
Rabobank, Societe Generale and UniCredit are the 8
founding members banks
• The commercialization of the platform is expected in Q2
2018. From February 2018, test clients of the founding
banks will be able to use the platform. Onboarding team
has been formed to welcome new banks to the platform
• IBM provides the cloud-based system powered by
Joint venture rather than
Hyperledger Fabric 1.0
consortium. Founding • Nordea becomes the ninth banking member in December
members get equity.
Token sales raise 16x over VC: ICOs less spectacular in ETH:
- Total raised by ICOs hits $3.23bn in Q4, with VC - Less spectacular when denominating in ETH with
amounting to $200mn. +56% vs. +146% for USD (Q3 to Q4).
$5,000
Cumulative ICO Cumulative VC
ICO VC
Cumulative Quarterly Funding ($, millions)
$4,500
$4,000
$3,231mn $200mn
$3,500
Top ICO Deals: Top VC Deals:
$3,000
Sirin Labs - $157.9mn BitGo - $42.5mn
$2,500 Polkadot - $144.6mn BitPay - $30mn
Qash - $107.3mn OKCoin - $27.2mn
$2,000
$1,500
ICO COMSA - $95.4mn Abra - $16mn
$1,000
$500 Q2 Q3
$0 VC ICO VC ICO VC
October November December $797mn $235mn $1,316mn $156mn
2017
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker
Notes: Deals under $100,000 excluded, $ amount at time raised, $ amount at time raised, including only fundraisers ending in 'Q4 2017’ (10/1/17 – 12/31/17)
ICO Funding
(in ETH) +56% ETH +146% USD
8m 7.522m
7m
4m
3m
2m
1m
-
Q2 2017 Q3 2017 Q4 2017
VC
10/10/17 Maecenas (ART) 15.40 11/17/17 B2BX 8.81 12/15/17 MediBloc (MED) 25.64
10/10/17 Wolk Pre Sale 11.77 11/17/17 Oracles Network (POA) 13.37 12/15/17 Naga (NGC) 62.66
10/11/17 Airswap (AIG) 24.55 11/18/17 MicroMoney 10.54 12/15/17 Protos (PRTS) 5.72
10/11/17 DomRaider 49.09 11/19/17 Qbao (QTUM) 9.80 12/16/17 Coinlancer 11.86
10/11/17 LAToken (LAT) 19.36 11/19/17 Quantstamp 53.64 12/16/17 Nebulas (NAS) 60.00
Q4 2017 VC
10/12/17 doc.ai (NRN) 13.75 11/20/17 UTRUST 21.00 12/17/17 Neufund (NEU) 14.90
Date Project VC Round ($m)
10/12/17 Ties.Network (TIE) 8.29 11/21/17 Science Blockchain (SCI) 12.27 12/17/17 SophiaTX 23.47
10/19/17 The Sun Exchange $1.60
10/13/17 Streamr 27.00 11/21/17 Time New Bank 14.38 12/19/17 Bread 20.02
10/23/17 Abra $16.00
10/16/17 Change Bank (CAG) 15.83 11/24/17 Flixxo (FLIXX) 5.10 12/19/17 CommerceBlock 8.82
10/26/17 Orchid Labs $4.70
10/16/17 Credit Protocol 15.30 11/24/17 Mercury Protocol (GMT) 7.62 12/19/17 MiniApps 5.30
11/16/17 PayStand $6.00
10/16/17 Eidoo 27.22 11/24/17 Starbase (STAR) 8.92 12/20/17 Aditus 7.10
11/27/17 LibraTax $7.80
10/16/17 HEROcoin 8.17 11/25/17 CyberMiles (CMT) 34.37 12/20/17 AppCoins 17.10
11/29/17 Digix Global $1.25
10/16/17 Paragon 94.58 11/26/17 trade.io Pre-sale 11.29 12/20/17 indaHash 42.72
12/4/17 Coinsquare $10.50
10/17/17 Dovu 9.09 11/29/17 12/20/17 Selfkey Pre-sale 15.84
Datum (DAT) 7.42 12/6/17 BitPay $30.00
10/17/17 Request Network (REQ) 33.17 11/29/17 WAX (WAX) 45.36 12/22/17 PROPS 25.00
12/11/17 Origin $3.00
10/18/17 Ambrosus (AMB) 32.51 11/30/17 Crypto 20 (C20) 34.93 12/22/17 Qlink 32.17
12/11/17 Brontech $0.93
10/22/17 COBINHOOD (COB) 13.38 11/30/17 Esports 5.84 12/22/17 SingularityNET 32.85
12/11/17 BitGo $42.50
10/23/17 11/30/17 12/23/17 Hdac 20.00
UnikoinGold (UKG) 31.59 EthLend (LEND) 16.74 12/12/17 Bitwise $4.00
10/25/17 BLOCKv (VEE) 21.07 11/30/17 Genaro Network (GNX) 11.61 12/24/17 Zen Protocol 46.37 12/13/17 Colu $14.50
10/27/17 Polkadot (DOT) 144.59 11/30/17 Paycent 15.53 12/25/17 INS Ecosystem 45.76 12/14/17 Coldlar $10.00
10/28/17 Etherparty (FUEL) 31.87 11/30/17 Presearch 20.50 12/25/17 Uttoken 30.85 12/15/17 OKCoin $27.20
10/28/17 Swarm Fund 5.37 11/30/17 WaBi 11.50 12/26/17 Sirin Labs 157.89 12/15/17 MakerDAO $12.00
10/30/17 Aeron 5.35 12/1/17 Betmaster (BETM) 5.24 12/26/17 TokenPay 28.68 12/19/17 Radar Relay $3.00
10/30/17 Cryptopay (CPAY) 18.03 12/1/17 Blockstack (STX) 50.00 12/27/17 CanYa 8.34 12/19/17 dYdX $1.00
10/31/17 ATLANT (ATL) 6.63 12/1/17 DMarket (DMT) 16.18 12/27/17 Jibrel Network 30.00 12/22/17 Coinify ApS $4.80
… … … … … … … … … Total $200.78
ICO VC
All-Time Blockchain Funding
Cumulative VC Cumulative ICO
$6.0bn
$5.0bn
$5.68bn $2.15bn
$4.0bn Top ICO Deals: Top VC Deals:
Filecoin - $262m 21 - $116m*
Tezos - $232m R3 - $107m
$3.0bn Sirin Labs - $157.9m Coinbase - $100m
Bancor - $153m Digital Asset - $60m
$2.0bn
$1.0bn
VC
-
ICO
Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
$40.00
$30.00
$20.00
$10.00
$5.25
$0.00
Forks ICOs
Summary:
• Low Volume
• Institutional
shorts
• Retail longs
• First contracts
settle without
problems
CFTC approved bitcoin futures: Bitfinex & Tether became targets of US regulators:
- The US Commodities & Futures Trade Commission gave - US regulators subpoena crypto exchange Bitfinex and
approval for CME & Cboe to launch bitcoin futures Tether.
contracts.
South Korea saw higher levels of regulation: Russia moved to define regulatory environment:
- Q4 was filled with consternation that eventually ended in - Russian bill submitted which will determine the procedure
an increase in regulatory measures on trading. for issuing, taxing, buying and circulation of
cryptocurrency.
Nov. 28 – New York Department of Financial Services awards 4th ever BitLicense to
bitFlyer.
Dec. 1 – CFTC gave green light to CME and Cboe to list bitcoin futures.
Dec. 22 – Belarus legalizes cryptocurrencies and ICOs – tax-free for five years.
Dec. 28 – Russian bill submitted which will determine the procedure for issuing, taxing,
buying and circulation of cryptocurrency.
Nov. 15 – Supreme Court of India issues notice to Reserve Bank seeking regulation
of bitcoin.
Dec. 25 – Israel regulator seeks to ban bitcoin firms from stock exchange.
SPOTLIGHT STUDY
2% Africa
92% bought cryptocurrency in 2017,
68% in Q4, 51% in Q3, 34% in Q2, 24% in Q1
Male Female
86% owned over 3 unique digital assets, 97% 3%
2% never owned
94% check prices at least daily, 56% every day, 37% < 18 18 – 25 26 – 35 36 – 45 46 - 55 56 – 65 66+
every hour, 5% a couple times a week 1% 9% 39% 29% 15% 6% 2%
Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey
feel positive about the current state agreed with the postponement of
69% of bitcoin, down 18% from last
quarter
75% SegWit2x, with 33% citing BCH as
an existing market alternative.
80% $15,000
60%
$10,000
40%
$5,000
20%
0%
No, I became active in 2010 No, I became active in 2011 No, I became active in 2012 No, I became active in 2013 No, I became active in 2014 No, I became active in 2015 No, I became active in 2016 Yes
I have never
I have never owned
owned ether
bitcoin
12%
10%
Yes No, I used to but I sold all of it I have never owned bitcoin Yes No, I used to but I sold all of it I have never owned ether
Yes No, I used to but I sold all of it I have never owned XRP Ripple XRP I use both interchangeably
How much money do you hold in cryptocurrencies Do you own any other cryptocurrency?
(approximate $ value today)?
2%
30% 27%
Yes
25% 6%
6%
20% 16%
14% I have never owned a
15% 12% 12%
10% cryptocurrency besides bitcoin,
10% ether or XRP
3% 4%
5% 1% 1% No, I used to but I sold all of it
0%
Which other coin(s) do you own besides BTC, ETH, and XRP?
35%
30%
25%
20%
15%
10%
5%
0%
Litecoin Stellar Neo Bitcoin Cash Cardano IOTA Monero
0% 37.3%
Yes, in Q4 2017 Yes, in Q3 2017 Yes, in Q2 2017 Yes, in Q1 2017 No 40%
30%
Did you sell any cryptocurrency in 2017?
60% 52.8% 20%
50% 40.2%
40% 10% 5.2%
29.8%
0.7% 0.3%
30%
16.4% 0%
20% 11.2%
Every day Every hour -- I'm A couple times a A couple times a Hardly ever
10% compulsive week month
0%
Yes, in Q4 2017 Yes, in Q3 2017 Yes, in Q2 2017 Yes, in Q1 2017 No
54.0%
60%
84.3%
40% 60.9%
65.6%
20% 36.6%
8.8%
0%
Enterprise Ethereum Alliance Ripple Hyperledger R3's Corda
Do you believe the values of cryptocurrencies, including bitcoin and ether, are in a 'bubble'?
25%
23%
20%
20%
17%
15%
13%
11%
10%
10%
7%
5%
0%
Extreme yes Moderate yes Slight yes Neutral Slight no Moderate no Extreme no
Q3: Q4:
38.7% yes 49.6% yes
Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey 49.7% no 39.4% no
State of Blockchain – Q4 2017 | 124
Community Was More Bullish on ETH Than BTC in Q4
Alts Shown Positivity with +23.8% Saying They Will “Go Up A lot”
100%
21.3%
34.1% 30.2%
80%
45.1%
57.6%
69.2%
60% 36.8%
31.1% 41.6%
40%
42.2% 18.2%
14.5%
35.6%
20% 24.5% 15.6%
9.4% 12.7%
5.3% 7.7%
4.1% 2.5% 10.9% 10.9% 2.4%
3.2% 1.7% 4.9% 2.0%
0% 2.2% 2.3%
Bitcoin Ethereum Ripple Litecoin Bitcoin Cash All cryptocurrencies combined
The CME and Cboe derivatives contracts were Institutional capital began to flow into Bitcoin in 2017, Do you think the regulated derivatives trading
announced and went live in Q4. Were you surprised and more importantly with the derivatives contracts from of BTC on the CME and Cboe paved the way
by this development? CME and Cboe in Q4. Do you believe this is a good thing or
a bad thing for Bitcoin?
for first digital asset-based ETF in 2018?
No
This is bad 14%
for Bitcoin
Yes 26%
27%
25%
22.6%
20.6%
20%
15%
9.9%
10% 8.9%
5.3%
4.6%
5%
0%
Decentralized exchanges Privacy focused Asset management tools Computation Identity Storage Prediction markets
transactions
100%
17.1% 16.2% 15.0%
80% 39.2%
25.4% 22.5%
31.3%
60%
11.6%
15.6%
6.0%
20.6% 35.8%
40% 12.2%
16.0%
9.8%
20% 20.8%
12.3% 15.6%
12.5%
5.2%
6.8% 3.7% 8.0% 11.8%
1.9% 2.1%
1.8% 3.1%
0%
Q4 Q3 Q2 Q1
How would you rank the following positive aspects of bitcoin today?
4
3.2 3.2 3.0
2.8 2.7
3
0
It's a hedge against central bank monetary policy It's uncensorable and immutable It's digital gold with counterfeit protection It's a solution to privacy concerns and identity It's great for payments and as a medium of
theft exchange
Which of the following do you consider to be the most negative aspect of bitcoin today?
50% 44.5%
40%
29.8%
30%
0%
Transaction fees Scaling No traction as a consumer tool Complicated to use
Did you follow the lead up to the 2X fork? Do you follow the engineering progress of scaling
blockchains?
Uncertain I am uncertain why
8% this is important,
4.0%
No, 21.5%
No
33%
Yes
59% Yes, 74.5%
33.6%
30% 28.5%
26.4%
20%
11.5%
10%
0%
I thought the 2X fork was unnecessary after the I agreed with the postponement I was disappointed the fork was postponed I was happy and celebrated the postponement
creation of Bitcoin Cash (big blocks were
already deployed in the market)
If you were a bitcoin (BTC) holder when Bitcoin Gold (BTG) was created,
what did you do with your BTG?
35% 33.2%
28.9%
30%
25%
20% 16.9%
15% 11.9%
10%
5.5%
3.7%
5%
0%
Hodled until now Wait, what? Exchanged for BTC Exchanged for another Exchanged for ETH Exchanged for fiat
coin or a combination of
coins
100%
23.8%
30.4% 33.2%
80%
25.7% 68.9%
60%
38.3% 30.3%
15.3%
40%
13.1% 12.5%
13.4%
20% 21.9%
14.8% 11.7%
10.1%
3.7% 2.4% 7.7% 3.1%
2.6% 3.5% 2.0%
1.1%
0% 1.5% 2.7% 3.3% 1.3%
1.8%
Q4 Q3 Q2 Q1
Which of the following do you consider to be the most positive aspect of ethereum today?
50%
40.0%
40%
35.8%
30%
0%
The ethereum protocol The ethereum dapp ecosystem ICOs The Enterprise Ethereum Alliance
Which of the following do you consider to be the most negative aspect of ethereum today?
50%
40.7%
40% 33.9%
30%
18.9%
20%
6.5%
10%
0%
Potentially buggy smart contracts Scaling ICOs Transaction fees
Did you follow the ethereum What feature of ethereum's Byzantium hard fork do you think is
Byzantium hard fork in October? most important?
35%
29.2%
30% 26.4% 25.7%
25%
18.7%
Yes 20%
28.56%
15%
10%
5%
No 0%
Mining difficulty Privacy enhancements Faulty smart contract code Re-entrancy protection;
71.44%
adjustments to help that will allow zk-snarks management (malicious code that works
manage transaction times and ring signatures to be to alter and manipulate
during periods of high mobilized existing smart contract
volume code)
What did you think about the conversation around scaling blockchains
after ethereum set these record high transactions amid the CryptoKitties Did you follow the discussion surrounding the
craze? transaction volume limits of ethereum and
47.6% blockchain technology provoked by the
50%
popularity of CryptoKitties?
40%
34.9%
30%
No,
38.5%
20% 17.6%
Yes,
61.5%
10%
0%
This was positive, as scaling I have no opinion on this news This was negative, as it exposed the
solutions could be the result of limitations of blockchain technology
unexpected developments
If you have taken part in an ICO, what have you done with your
tokens since?
60%
48.9%
50%
39.1%
40%
30%
20%
10.5% 10.0%
10% 6.5%
4.3%
0%
I have not taken part in an I am still holding all my Sold them into bitcoin Sold them into ether Sold them into other Sold them into fiat
ICO ICO tokens tokens
How would you rank the importance of the following factors behind buying an ICO?
6.0
5.0
5.0 4.8
4.1
4.0 3.8
3.5
3.3
3.0
3.0
2.0
1.0
0.0
Use case Team Technological roadmap Crypto-economic viability White paper quality Token valuation and Social signals (buzz,
structure (price, advisors, partnerships,
allocation to team, future endorsements)
tokens, lock up, etc.)
When looking to buy small cap (<$1bn market cap) coins, what was the
primary reason for your purchase?
Did you buy any 'small cap' (<$1bn market cap) 80% 59.7%
coins this year? 60% 41.7% 38.9%
No, and I 40%
14.1%
have never 20%
tried or 0%
wanted to Investment (long-term Speculation (short- Interest (learning more I do not buy small cap
holding) term trade) about and using the coins
either, 20.2%
technology and product)
No, but I
If you have not bought a small cap coin, what has been the
Yes, 65.7% primary reason for your lack of participation?
have tried or
wanted to, 80% 57.6%
14.1% 60%
32.5%
40% 25.0% 20.8%
20%
0%
Uncertainty around I only buy coins from Lack of attractive projects I am unfamiliar with
projects and fear of losing exchanges that are where to buy these small
investment selective on what they list cap coins
How do you think ICO issuers should hold the funds raised in a token sale?
50%
44.5%
40%
30%
26.1%
24.4%
20%
10%
5.0%
0%
Both (more cryptocurrency than fiat) Keep all funds in cryptocurrencies Both (more fiat than cryptocurrency) Convert all raised and liquid tokens into fiat
What resources do you use to learn more about tokens or ICO projects?
100%
82.2%
80%
62.5% 62.0%
60%
39.2%
40%
29.2%
20.3%
20% 15.1%
9.9%
0%
Blockchain media sites Study white papers Reddit Twitter GitHub Watch for signals from Slack channels LinkedIn
like CoinDesk professional buy-side
of crypto-hedge funds
The number of cryptocurrencies exploded in Which will have a greater effect on the quality
2017. Do you think token diversification is of tokens or ICO projects, a sophisticated buy-
positive or negative for the industry? side of professional crypto-hedge-funds, or the
regulatory approach?
A market approach
with a sophisticated
buy-side will be
37.1% more important for
Positive token and ICO
43.9%
project quality.
Negative A regulatory
62.9% 56.1%
approach will be
more important for
token and ICO
project quality.
China took the strongest regulatory tone on With several jurisdictions tackling exchanges with new
cryptocurrencies in 2017. This action will... regulations, how do you think the market will respond?
60% 80%
51.2%
47.1% 47.0% 63.6% 62.4%
60%
40% 47.7%
26.7% 35.4%
40%
20%
20%
5.1%
0% 0%
be a test on be temporary. be a gift to other cause other Other (please Exchanges will become Decentralized Some jurisdictions will Regulatory compliance
Chinese regulators parts of the world jurisdictions to specify) more and more exchanges will gain be entrepreneurial and is difficult, and signals to
themselves: the as China loses its follow China's lead. regulated traction as they are aim to lure exchanges regulate exchanges do
compliance they've position. much more difficult to and businesses with not always achieve
signalled will be regulate attractive regulatory desired results
difficult to achieve. regimes
How do you feel about the current overall state of Distributed Ledger Technology (sometimes called 'permissioned' or
'enterprise' blockchains)?
35% 33.0%
30%
24.3%
25%
20%
16.1%
14.9%
15%
10%
5.7%
4.0%
5%
2.0%
0%
Extremely negative Moderately negative Slightly negative Neutral or ok Slightly positive Moderately positive Extremely positive
Do you think DLT will gain traction With all of the attention cryptocurrencies got because of value increases,
in 2018 with projects going live? how do you think it affected the momentum behind DLT?
80%
61.1%
60%
15.5%
40%
Yes 21.3%
20% 12.6%
No 5.0%
84.6%
0%
DLT still needs time, so Had no effect, they are Slowed down public Slowed down public
cryptocurrency attention was a unrelated enthusiasm, but not corporate enthusiasm
good thing in that it took away enthusiasm
pressure and allowed proofs of
concept to be tested properly
With the rise in popularity of With all the developments in the industry Do you believe a central bank will
this year, do you think that mainstream
cryptocurrencies in 2017, do you hold Bitcoin on their balance sheet
public perception has finally made it over
think the industry moved away psychological hump of accepting that in 2018?
from its cypherpunk roots? something natively digital can be private
property?
Yes
31.5% 31%
48%
Yes 41.1% No
Yes
No No Not in 2018, but
59.0% 21%
68.5% one day
Did you use credit or buy crypto on If you bought on credit, did you pay
margin in 2017? back your debt already?
19.0%
81.0%
38.8%
Yes Yes
No No
61.2%
93.9%
How would you rank the importance of the following data points when buying any cryptocurrency?
7
0
Marketcap Exchange volume Number of On-chain Total future supply Transaction fees Total current Hash power Google trends
exchanges listing transaction volume of coins supply of coins
the coin
How do you measure the total value of your digital asset portfolio?
70%
60.1%
60%
50%
40%
30%
24.1%
20%
12.4%
10%
2.2%
0.8% 0.5%
0%
In US dollars In another fiat currency In Bitcoin In ether In another coin In XRP
Do you follow the Bitcoin Dominance percentage of total cryptocurrency market cap?
50% 46.8%
40%
30%
19.0% 18.4%
20%
15.8%
10%
0%
Yes No, I follow cryptocurrency market cap, but not No, I follow cryptocurrency valuations but not Yes, I follow Bitcoin Dominance and make
Bitcoin's share of the market cap industry market cap investments into alt-coins or bitcoin based on
this data point
17%
Yes
No
83%
If you realized important gains in cryptocurrency this year, what did you do with the gains:
90% 84.1%
80%
70%
60%
50%
40%
31.2%
30%
20%
12.6%
9.9%
10%
0%
Kept investing in cryptocurrencies Diversified into other assets Paid debt Gave myself a gift/bought a Lambo or Tesla
37.2%
Yes
No, I already owned one
57.7% No
5.1%
A public blockchain is an internet An enterprise blockchain is a distributed Many companies employ hybrid models
protocol that manages the distribution of ledger that provides: where they:
provably unique data that:
- Acts as a unit of account for - Consensus via trusted intermediaries, - Build on public blockchain
transactions on that ledger making digital currencies unnecessary infrastructure
- Incentivizes early adopters and - Solutions to clients who wish to use - Provide technology for permissioned
developers to use, support and verify cryptographic databases managed and networks
the ledger without the need for a shared by trusted parties
trusted intermediary
The majority of development work to date has been done using open-source tools and
public blockchains like bitcoin and ethereum
PUBLIC ENTERPRISE
ACCESS Open read and write Permissioned write and/or read
SPEED Slower Faster
SECURITY Open network Approved participants
IDENTITY Anonymous or pseudonymous Known identities
ASSET Native assets Any asset
We believe public blockchains will have the greatest impact on developing economies (reduced
need for trust) and the connected device, IoT economy (immutability, auditability)
STRENGTHS WEAKNESSES
PUBLIC ENTERPRISE
PROTOCOL
COMPANY
APPLICATION
The company layer crosses protocols and is heavily comprised of bitcoin related businesses,
while the application layer is dominated by ethereum applications
Notes: Numerous protocols are also maintained by open source communities, non-profits like the
Ethereum Foundation and consortiums like R3 and Hyperledger
ICO HYBRID VC
PROTOCOL
COMPANY
APPLICATION
ICOs rather than VC has driven the development of most public blockchain applications, as well
as numerous protocols and companies, a line which is becoming increasingly blurred
Notes: Numerous protocols are also maintained by companies like the Zerocoin Electric Coin Company, open source communities, non-
profits like the Ethereum Foundation and consortiums like Hyperledger
CoinDesk makes every effort to ensure the information used these slides is accurate and up to date. We cannot, however, accept responsibility for any
loss or inconvenience caused by reliance on the material contained here.
This presentation does not constitute financial advice or an investment recommendation in any way whatsoever. It is recommended you perform your
own independent research and/or speak with a qualified investment professional before making any financial decisions.
CoinDesk is owned by Digital Currency Group, one of the most active investors in the bitcoin and blockchain technology industry. Many DCG
investments are referenced in this report, and a full list can be reviewed at www.dcg.co. CoinDesk is run as an independent entity, and its editorial
team does not give preferential treatment to DCG investments when they are referenced in research reports or news posts. Numerous DCG portfolio
companies are referenced in this report.