How to analyze a token #3 – the framework

In the first two parts we presented the possibilities of token classification with regard to different aspects. In order to get a complete picture of a token, a combination of these different points of view is useful. Untitled INC achieves this with the Token Classification Framework.

The first two parts of this series have shown that a token can be viewed from different angles. In the case of the Distributed Lab framework, you could already see that the overall picture of a token is very multifaceted.

Bitcoin news: This approach is deepened in the Token Classification Framework of Untitled INC

Untitled INC is a think tank whose members are located in Berlin, Frankfurt, Munich, Vienna, Zurich, Tokyo and San Francisco. Bitcoin news focuses on the Distributed Economy and the Blockchain like explained in this review. The goal of one of the projects was a framework for a more precise classification of tokens.

The presented approach wants to classify a token by considering five dimensions:

the target of the token (crypto currencies like Bitcoin, network tokens like Gnosis, investment tokens like DigixDAO)
the utility of the token (usage token for access to services or network itself such as Bitcoin, work token, which give individual users the right of active participation in a system such as REP and hybrid token such as DASH)
the legal status (utility token like STEEM, security token like SPiCE or crypto currency like Litecoin)
the technical level (At which level is the token implemented? Is it blockchain-native like ether, a non-native protocol token like a REP or associated with a dApp or application like WIZ by Gnosis?)
the underlying value (Where does the value of the token come from? Is it asset-backed like Tether, does it have a value coming from the whole network like Bitcoin or can it be compared to a stock like DigixDAO?)
A complex image of a token can now be characterized along these five dimensions.

Bitcoin news about archetypes of tokens

If one examines different tokens for this Bitcoin news, one notices that some patterns occur several times. Bitcoin news tokens often feed their value from the network. In contrast, investment tokens are often covered by an asset or can be compared to a stock. Specifically, the Untitled INC team has named the following use cases:

Crypto currencies are used as a means of payment or store of value. They are not issued by a central authority. They can be mined (or acquired via another consensus mechanism), as long as the total quantity has not been generated by pre-mining or something similar.
Tokenized assets can give users access to classic assets such as gold or the like, so that even the smallest shares of gold can be traded. The price of the tokenized assets is not only subject to the mechanisms of supply and demand, as is the case with crypto currencies. The problem is that a central entity controls these assets. Accordingly, tokenized assets stand in a certain contradiction to the ideals of crypto currencies.
Platforms can also be organized as tokenized assets. Unlike the assets addressed, they are not owned by a single entity. The value of a tokenized platform is given by the whole network.
Finally, tokens can also be part of a project, as is the case with The DAO or various ICOs. Security tokens can lead to payouts on the one hand and give the token holders a say on the other. One problem is that such tokenized shares count as securities in different countries and are treated accordingly.
Token in a larger context
So far the Token Classification Framework corresponds to the approach of Distributed Lab or is only a slight extension of it. Untitled INC goes one step further and considers the different levels of blockchain systems. A distinction is made between the Governance Layer, the Token Layer and the Technology Layer.

The governance layer includes aspects such as the decision as to which legal form the project should have behind the token, how far token holders are integrated or how to organize the network. This also includes the question of how to make decisions within the system or how to regulate governance processes beyond the chain.

The token layer is described by the type of the token, i.e. by the previously used token layer.

The Escalation: Bitcoins First Hard Fork

By mid-2017, the fronts had hardened to such an extent that no agreement was in sight. The SegWit site had been retrofitted with the UASF (User Activated Soft Fork). Here, the full nodes in the Bitcoin network signaled that they would only support SegWit after August 1, 2017. As a result, the Ver and Wu camp took the helm into their own hands and decided on a hard fork. On August 1, 2017, the two sides parted ways. Bitcoin (BTC) activated SegWit and Bitcoin Cash (BCH) decided not to use SegWit, but increased the block size to eight megabytes.

Since then, little has changed technologically at Bitcoin (BTC). SegWit is active and allows new address formats and the Lightning Network. The block size was abolished, but now there is a block weight. This is around four megabytes. Effectively the space on the blockchain has been increased, but primarily the Transaction Malleability has been fixed. So the BTC community decided for the conservative way of the Soft Fork.

The Bitcoin formula split

Bitcoin formula went the way of larger blocks and the less conservative way of hard forks says onlinebetrug. It was agreed within the BCH community to carry out a hard fork twice a year. In May 2018, this plan was applied for the first time. The block size in BCH found its new limit now at 32 megabytes. In addition, some OP codes were reactivated for the protocol. The hard fork went smoothly, the conflict seemed to be solved…

… until August 2018 arrived. The specifications for the next Hard Fork, in November 2018, caused great controversy within the BCH community. As in the previous year, two camps were formed. On the one side were Roger Ver and Jihan Wu with their ABC protocol. On the other side was Craig Wright aka “Satoshi Nakamoto” and Coingeek CEO and billionaire Calvin Ayre with Satoshi Vision (SV). In the following months a lot of mud flew from both sides – especially from the Wrights. A civil war was on its way.

When November 15, the day of the hard fork, came, the Bitcoin trader network split again

At first, Faketoshi said they didn’t want a split. Instead, they threatened a 51 percent attack and wanted to wipe out the ABC chain. This Bitcoin trader battle went down as the Bitcoin trader scam in the still young history of the crypto currency. The end result was a chainsplit. So today there are two different coins. One is called Bitcoin Cash (which is the ABC faction). The other coin follows the vision of Craig, pardon, Satoshi and is therefore also called Bitcoin SV (Satoshi Vision).

Well thought, bad done? – Coinbase wants to offer customers more decentralisation

The Coinbase crypto exchange researches blockchain-based identity management. According to Coindesk, a team of 17 is working on the development of a decentralized app (dApp) that will give Coinbase customers more control over personal data. However, the implementation is still lacking.

An all too well-known battle cry of the Blockchain enthusiasts is “Be in possession of your own data”.

Identity management is and remains the use case for Bitcoin trader technology

Personal Bitcoin trader data is no longer stored as usual on central company servers, but remains on a Bitcoin trader blockchain and is thus effectively under the company’s own control. The advantage: On the one hand, the companies cannot make a mess of the data and on the other hand, data theft or loss is largely excluded. In short: The single point of failure is eliminated.

Now Coinbase is also researching such a blockchain solution. As Coinbase manager and head of the 17-member task force, B Byrne, told Coindesk, the team first wants to identify in which areas more decentralization is desired.

The Bitcoin exchange recently asked a small number of its customers about the dApps they were using.

“I look at dApps and which of our customers uses which dApps. That’s probably a good indicator of what kind of activities [our customers] want to do on an on-chain basis, Byrne told Coindesk.

Crypto trader in a different way

A possible application case for more decentralization in crypto trader IT is the storage of KYC data (“Know Your Customer”).┬áThis could considerably simplify the registration processes for the various Coinbase products and grant more customers access to the Exchange.

At the same time, however, the US crypto exchange is realistic. The decentralized identity management via blockchain is not an egg-laying wool milk sow. Although there are interesting areas in which an application seems to make sense, the company does not want to invest large sums in development, according to the report.

Byrne says that, in all honesty, a complete decentralization of customer data is hardly compatible with the regulatory requirements of the tax authorities.

So it remains with the focus team and the credo: Somewhere there is already a meaningful application case for the blockchain technology.

Venezuela to propose common oil currency to OPEC

Venezuelan President Nicolas Maduro wants to warm the members of the Organization of Petroleum Exporting Countries OPEC for a common crypto currency. This was reported by Al-Jazeera on Tuesday. The model could be his own controversial digital currency Petro, announced in December, which is held with the oil reserves of the crisis-ridden country. Whether Maduro’s proposals will fall on fertile ground with oil producers is questionable.

When the Petro’s advance sale starts in less than two weeks, this should only be the beginning – at least if you go to Nicolas Maduro. Venezuela’s president announced on the South American country’s radio this week that he wanted to launch a common oil currency for the OPEC states.

“I will officially propose to all OPEC members and oil producers to introduce a common oil-secured crypto-currency mechanism, the 55-year-old describes his vision. According to Maduro’s ideas, oil producers could thus issue a currency with stable values, secured by common oil, modelled on petroleum.

Securing with the Bitcoin profit of others?

Such an OPEC Petro would be a real coup for Maduro. OPEC, based in Vienna, represents Venezuela as well as the oil-rich Gulf states. The association is thus responsible for an estimated 45% of Bitcoin profit production. In addition, 75 % of the world’s oil reserves slumber in the soils and waters of the member countries.

A common currency would secure Venezuela against possible resistance from abroad, which would only be directed against Caracas. Maduro has his back to the wall. His economy crawls, the luck of the experiment “Petro” is questionable.

While the domestic opposition is going on the barricades, which Petro calls “illegal” and an “illegal loan of the state oil reserves”, one thing, especially on the part of the USA, is by no means desired. And this is witnessing how Venezuela is circumventing international financial sanctions.

An OPEC petroleum will not be allowed and, in case of doubt, every lever will be used to prevent it. It is true that the organization once displaced the Americans as world market leaders and is currently trying to dictate the oil price to the displeasure of the USA by cutting production. Moreover, the US influence on OPEC’s competitors is still large, especially in foreign policy terms. OPEC engine and world market leader Saudi Arabia are regarded as close allies of Washington.

In the fight against the Bitcoin profit

In December last year Maduro announced the Bitcoin profit based on oil reserves. With this currency, the country should profit from the continuing crypto boom, find its way out of the economic crisis – and consequently break the chains of international sanctions with the help of Bitcoin profit according to onlinebetrug. With a current galloping inflation rate of 2,900 %, Venezuela has been in an ever faster downward spiral since last year. Food is in short supply and public order is falling apart. The International Monetary Fund even forecasts Venezuela an inflation rate of 13,000 % by the end of the year.

The Petro advance sale, on the other hand, could be a first financial injection. This will start in just under two weeks. Last week, the president announced this with the signature of the Petro White paper and published new details for the first time. The Petro is to be used in the future with the help of passports and identity papers and thus bind citizens directly to the state in their financial management.

“The Petro will have a huge impact on how our access to foreign currencies will look like and how we will buy the goods and services we need from anywhere in the world,

so Maduro on Venezuelan television.

As was announced today, he wants to be re-elected in an early election on 22 April. Only his name will be put to the vote so far. According to estimates, this could also remain so against the will of the opposition.

Bitcoin rate over 800 EUR – To the moon? No, to the stars!

The current upward trend is gaining speed, so the price is currently at 840.58 EUR (877.33 USD).

Again the price rose continuously throughout the week. Since 21 December, this rise has been steeper.

Today, on December 22nd, the price rose again, so that it now stands at 840.58 EUR (877.33 USD).
Wow – only yesterday we were jubilant that the price had risen above 800 dollars, today the price rises significantly above 800 euros. We are experiencing a price rally that last took place at such heights two years ago. With the breakthrough of 800 dollars, one of the great resistances of the price was broken, on which Bitcoin still gritted its teeth in June. Of course, this has given the share price an enormous boost, so that – depending on the exchange – it has already reached historic highs.

As an example, the long-term price development of the Bitcoin code

With the exception of a short spike on 6 November 2013, the Bitcoin code established at the beginning of 2014 was broken through. On other Exchanges it is not yet so clear, but with all modesty one can say that also there this Bitcoin code is currently being shaken.

Bitcoin has long since left the “To the Moooon! moon” behind him and the flight continues. That’s also what the indicators say.

The MACD (second panel from above) is still positive. Just the rush of this morning has pushed the MACD line (blue) clearly over the signal (orange). The MACD is therefore bullish overall.

Of course also the RSI is bullish (When in the last weeks was it actually bearish?). At 94, it is overbought as never before this year. Of course this is a signal for caution, but the price developments over the last few months have taught us that overbuying is not an immediate sign of a price fall.

The Bitcoin code remains positive

So that’s everything very, very positive. Of course we see that we are in a rally and have to see what happens when it is over (then a good moment would have come for Bagholder to bring her Bitcoin code home), but all signs are bullish for now.

Looking at different time scales has always been worth it, just to see if the trend is confirmed in the long run. And yes, he thinks so: “On the 240-minute chart, we see last month’s development:

The price has actually always risen. Yes, he tested the EMA100 trend twice, but otherwise it just went up. Here, too, we can see that in the last few days the share price has increased in speed.

The indicators are also positive here, whereby both the very strong discrepancy between MACD line and signal and the astronomical height of the RSI speak for a consolidation soon.

Money laundering at Shapeshift? The reaction of the stock market

According to a report in the Wall Street Journal, 88.6 million US dollars of illegally acquired funds were channelled through 46 different crypto exchanges via Bitcoin & Co. The report published on 28 September focuses in particular on the allegedly anonymous platform Shapeshift. According to the report, a total of nine million US dollars had been washed on the stock exchange. Now Shapeshift is defending itself with a public statement.

Shapeshift is a crypto exchange founded in 2014 that allows users to exchange crypto currencies such as Bitcoin without giving their identity. It is possible to track the addresses of the transactions. But who is behind the addresses remains unknown.

Criminals have now apparently taken advantage of the Bitcoin news

To prove this scam, onlinebetrug spared no expense and effort and developed its own computer program that tracked the financial flows of over 2,500 users suspected by the journal of fraud. According to the Bitcoin news, these include mainly investment fraudsters and Ponzi schemes. With the help of Shapeshift, for example, they have converted their Bitcoin into Monero and can no longer be found. The Wall Street Journal criticises in the report that Shapeshift has still not abandoned its policy of anonymity.

This is how Shapeshift reacts: Massive criticism of the criticism
On October 1, Shapeshift reacted to the report in a public statement. According to the Crypto Exchange, the report is “peppered with inaccurate and sometimes even false data”. For over five months, the Bitcoin Exchange had been working with the financial journal, answering its questions and always being cooperative. Among the many topics discussed, however, nothing of the criticisms that the Wall Street Journal has now published has ever come up. In addition, nine million US dollars are only 0.15 percent of the trading volume of Shapeshift – too little to criminalize it.

Fraudsters convert Bitcoin formula to Monero

But even to this extent money laundering via onlinebetrug is not possible. The Exchange works closely with a large number of other crypto exchanges in order to prevent criminal energy. In return, even entire countries are on the Bitcoin formula list. Instead of withholding information about suspicious accounts for months on end, the Wall Street Journal could have provided Shapeshift with the necessary data to prevent possible crimes. This was apparently not the aim of the financial journal.

Moreover, Shapeshift doubts the competence of the authors, who are by no means fully involved in the topic. In the public statement, the Exchange goes into further accusations in detail.

The old attempt to criminalize anonymity
Of course it is desirable to put a stop to Ponzi schemes and fraud. However, the question arises as to which is the best way to do this. It seems to be much better to educate people about their machinations than to criminalise projects that want to promote privacy.

Too quickly the child is dumped with the bathwater and whole large projects are shorn over a ridge, as here in the case of Shapeshift. Especially since the general accusation that crypto currencies are mainly used for criminal purposes no longer has much to do with reality. The trend is clearly in the opposite direction.

Sentiment analysis for crypto currencies

The bon mot ‘there is no bad press’ does not apply to crypto currencies. EOS had a media presence on Twitter regarding the accounts frozen by block producers, but this was rather negative. Accordingly, it is helpful to follow the general mood on the social media around a crypto currency.

Scionanalytics offers first approaches for such a sentiment analysis

In this, the evaluation of the tweet is classified AI-supported. In a pie chart, the sum of the tweets within the last week is displayed. If you move the mouse over a section of the pie chart, you get a rough picture of the mood within the last week for a crypto currency:

As you can see, the opinion of the Twitter community regarding DASH has been rather positive. Of a total of around 43,000 tweeets, almost 5,000 are positive, while just under 1,400 are negative. The ratio between positive and negative tweets is therefore 3.6.

For EOS, for example, the picture looked somewhat less good last week thanks to the dramas affecting the block producers: Here the ratio is 2.3, so in relative terms fewer positive tweets were posted than at DASH.

An interesting project with optimization potential

In addition to these features, Social Coin Analytics tries to give AI-based price forecasts. Should the probability for such a forecast exceed a certain level, it will be displayed in the dashboard. The Iunera team continues to train the AI in order to make successively better predictions.

Social Coin Analytics from Iunera knows how to please. Data nerds can spend a lot of time studying the tweeting behavior for different crypto currencies.

As with many young projects, working with Social Coin Analytics results in a small wish list in your head. So it would be extremely useful if one could also look at longer time intervals. Furthermore, it would be great if you could also consider data from other social networks. Also important is a filter option in the time-dependent plot so that you can only look at the positive or negative tweets as a function of time. After all, it would be fantastic if you could watch the tweets yourself at certain times, as in the above example on June 24.

Nevertheless: The wishlist shows above all that you quickly get a desire for more when using it. An interesting tool, which one should pursue further.