CRYPTO MARKET UPDATE 30 April 2018

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1 CRYPTO MARKET UPDATE 30 April 2018 The upswing move in the crypto market continued last week with major winners EOS (+65% in 7 days) and TRON (+72% in 7days) in top-10 by market cap companies. The market may lose a bit of its confidence after the rally, staying sideways The Council of State of France cut the tax rate on cryptocurrency sales Malta and Belize are countries with the largest crypto trade volumes; proving a supportive crypto regulation Australia s securities regulator updated ICO and crypto guidelines Nasdaq would consider becoming a cryptocurrency exchange Goldman Sachs hired Cryptocurrency Trader in response to Clients demand Date 30 Apr 2018 Crypto MktCap 24H Volume $430 bn $30 bn BTC dominance 37% Research Analysts: Marina Alekseenkova Marina.Alekseenkova@nkbgroup.io David Arvay David.Arvay@nkbgroup.io This report is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. All market prices, data and other information contained in this document has been prepared from sources believed to be reliable, but we give no representation or warranty that the information is complete, accurate or current. Past performance is not a reliable indicator of future performance. Not for further distribution. Investments in cryptocurrencies associated with essential risks, including risk of losing 100% of value. Not for the distribution in countries where digital assets are recognized as illegal. *Pricing as of 12:30 GMT 30/04/2018.

2 Bitcoin Ethereum Ripple Bitcoin Cash EOS Cardano Litecoin Stellar TRON NEO IOTA Monero Dash NEM VeChain Tether Ethereum Classic Qtum OmiseGO ICON Binance Coin Lisk Bitcoin Gold Aeternity Nano Zcash Bytom Steem Verge Bytecoin Ontology % % -1% -1% -2% 4% 8% -3% 1% 0% 7% 1% % 16% 15% 18% 11% 18% 12% 9% 4% 1% 2% 24% 15% 9% 27% 66% 73% 97% % 2 MARKET MOMENTUM The recovery of the crypto market continued. Bitcoin stays above $9,200/BTC and Ethereum $690/ETH. Top winners last week among top-40 crypto assets by market capitalisation were EOS (+66%), TRON (+73%), Aeternity (+115%) and Ontology (+97%). Figure 1. The performance and market capitalisation of top-40 cryptocurrencies (by MktCap) % % % % % MktCap, $mn 7D performance, % Source: coinmarketcap.com, as of 30 Apr 2018 as of 12:40 BST Figure 2. Best performing digital assets* (7 days) Figure 3. MktCap of best performing digital assets* AurumCoin NANJCOIN FedoraCoin Primecoin True Chain Aeternity All Sports Mixin MedicCoin ODEM Rentberry Ontology ZClassic TomoChain REBL Mooncoin CyberMiles BridgeCoin Banca Smartlands TRON 115% 152%201% 110% 108% 105% 103% 99% 91% 96% 97% 91% 73% 79% 79% 88% 90% 73% 225% 266% 408% AurumCoin NANJCOIN FedoraCoin Primecoin True Chain Aeternity All Sports Mixin MedicCoin ODEM Rentberry Ontology ZClassic TomoChain REBL Mooncoin CyberMiles BridgeCoin Banca Smartlands TRON Source: coinmarketcap.com, *) MktCap>$10mn Source: coinmarketcap.com, *) MktCap>$10mn

3 3 Figure 4. Worst performing digital assets (7 days) Figure 5. MktCap of worst performing digital assets UpToken Decision Token indahash Refereum LUXCoin Game.com FirstBlood Oyster Propy Etheroll Bitcore Debitum Switcheo XPA Karma SmartCash SHIELD Dent Ormeus Coin Bitcoin Private -39% -40% -19% -20% -21% -21% -21% -21% -21% -22% -23% -23% -23% -23% -24% -25% -25% -27% -28% -29% UpToken Decision Token indahash Refereum LUXCoin Game.com FirstBlood Oyster Propy Etheroll Bitcore Debitum Switcheo XPA Karma SmartCash SHIELD Dent Ormeus Coin Bitcoin Private Source: coinmarketcap.com Source: coinmarketcap.com Among the factors which affected the performance last week, are following: Lack of bad news and even positive regulatory update from France, allowed the crypto market go higher last week. More blockchain-related activity from well-established institutions like Nasdaq and Goldman Sachs create positive moon of crypto market participants. Ethereum stays close to $700/ETH, which is a positive sign for new projects fundraising activity.

4 4 REGULATORY NEWS The Council of State of France cut the tax rate on cryptocurrency sales France s Council of State (Conseil d Etat) has changed the tax rate on cryptocurrency sales to a flat 19%, from 45% before, according to Le Monde. The reason for the change is a new classification of bitcoin, which now falls under the category of movable property instead of capital gains. The crypto mining earnings will be taxed as non-commercial profits, and income as a result of professional activity will be taxed as industrial and commercial profits, both are exceptions from the flat rate. Malta and Belize are countries with the largest crypto trade volumes The crypto exchanges located in Malta, Belize, Seychelles, the US, and South Korea, were identified by the Morgan Stanley research based on Coinmarketcap.com data as the largest venues in terms of crypto trade volume. The largest number of exchanges are located in the UK, Hong Kong, USA, Singapore, and Turkey. Favourable crypto regulation is the major factor for the crypto exchanges location, according to the study. Australia s securities regulator updated ICO and crypto guidelines The representative of Australia s Securities and investments (ASIC) said in a speech that the financial regulator updated on guidelines for ICO and cryptocurrencies. According to the regulator, the Australian corporate and consumer laws apply even if an ICOis created an operated from overseas. Australian regulator provided ICO guidelines last year, where it advised that ICO is a managed investment schemes, shares or derivatives offering, or non-cash payment facilities. CRYPTO MARKET NEWS The crypto exchange Coinbase has valued itself at $8bn The cryptocurrency exchange Coinbase valued itself at $8bn for the potential M&A with Earn, according to Recode. Coinbase offered its stock to Earn.com investors at a valuation c $8bn. Coinbase has bought Earn.com for $100mn. According to media sources, Coinbase generated c $1bn revenue in Coinbase raised $225mn in 8 funding rounds.the list of Coinbase investors includes Bank of Tokyo Mitsubishi UFJ, Draper Fisher Jurvetson, BBVA Ventures, Blockchain Capital, USAA, Andreessen Horowitz, Boost VC, Valor Capital Group, Queens Bridge VC, Emagen Investment Group, Vayner/RSE, Digital Currency Group, Union Square Ventures, Hard Yaka and others. Mt.Gox moved $165mn in BTC and BCH from its wallets Mt. Gox moved 16,000 BCT and 16,000 BCH from its cold wallets. The wallets are under Mt.Gox bankruptcy trustee. The amounts are moved in multiples batches of 2,000 BTC and BCH to various addresses. ZClassic s founder may have plans of another fork Rhett Creighton, the founder of ZClassic and Bitcoin Private, was officially criticied by Jackson Palmer for his way of creating new tokens via forks. Creighton was a founder of ZClassic as a fork of Zcash, and announced a mergeforkdrop with Bitcoin to create Bitcoin Private. Creighton now holds 1% of Primecoin and may launch Bitcoin Prime soon. ZClassic has $89mn Market Capitalisation that showed

5 5 96% increase in 7 days, while Bitcoin Private lost 40% to $692mn market cap over the last week. Both crypto assets are on our top-20 best/worst performance list. Tim Draper sees Bitcoin bigger than Tesla, Skype and Hotmail combined Draper compared Bitcoin to his previous investments in Tesla, Hotmail, and Skype over the weekend at an Intelligence Squared U.S. debate, where he stated that This is bigger than the internet. Binance in partnership with Ugandan Blockchain Hub, signs with Bermuda government The major exchange announced cooperation with Crypto Savannah to support economic transformation in the Country, and youth employment. Binance Group has also signed a memorandum of understanding (MOU) with Bermuda government. Binance plans to develop a global compliance base in Bermuda. It will spend $10mn on university level training for Bermudians in blockchain technology development and compliance training. Binance, cryptocurrency exchange startup with 200 employees has been able to surpass Deutsche bank, with more than 10,000 employees and a net profit of $146 million. Binance recorded a net profit of $200 million. Goldman Sachs hired Cryptocurrency Trader in response to Clients demand In last week market update, we mentioned some of the recent transitions from Wall Street to crypto and here we are again. Goldman Sachs hired Justin Schmidt as they has been planning to set up the crypto trading desk from December % of major financial institutions are aiming for crypto in 2018 According to a survey by Thomson Reuters, one out of five big financial companies plans to get involved in digital assets within A screen on Thomson Reuters Eikon data terminal says that bitcoin landing page is second-most trafficked landing page among all currencies behind Euro. Nasdaq would consider becoming a cryptocurrency exchange Adena Friedman, Nasdaq s CEO has admitted that over time, if it ultimately does morph into a regulated environment, it does give us an opportunity to participate as a marketplace, but I think that is a longer road and it does not have a certain path right now. Meanwhile, Nasdaq announced on surveillance deal with US cryptocurrency exchange Gemini to monitor trading of digital assets for potential market manipulation and fraud.

6 6 CRYPTOASSETS PERFORMANCE Top Performer of the Week: EOS Over the last week, EOS has been performing with gains over 80% from $11.2 to the new all-time high at $ Now it stays at $19.3. On the monthly time frame, performance is even more impressive with price soaring from $6. EOS recently announced the series of good news including the strategic partnership with Michael Cao and Winnie Liu for a $200 million fund and EOS Main-net launch, scheduled for early June. The BTC price bounced up to above $9200 during a week. During the week, BTC touched the 200-day moving average (red) from below and rejected it on extremely high volume. This is bearish action, however, the price has continued to drift upwards since. It may keep as further sideways action. Figure 6. Bitcoin price,usd Source: BCB Group

7 7 Litecoin rejected 200 day moving average followed by a bearish ascending wedge, making this is a 'sideways-down' picture. However, the wedge is having a flat top, which looks more bullish-like. Litecoin still depends on how Bitcoin will stay against its 200 day moving average, still remaining in a bear market before the BTC trend changes. Figure 7. Litecoin price, USD Source: BCB Group

8 8 Ripple printed a neat double top last week, which will be strong resistance when the price gets there again. Similar momentum picture to BTC and ETH, so it's unlikely to get that high short-term. Figure 8. Ripple price, USD Source: BCB Group

9 9 Ethereum has the dual-wedge setting, complicated only by ETH having made it over its 200 day. Since BTC hasn't made it and still determines market sentiment, ETH is among others in uncertain territory. Volume and RSI are looking non-committal. Figure 9. Ethereum price, USD Source: BCB Group

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