New ICO Fund and a look at Bitcoin Futures Expiry on CME
By: Drew Boswell
Tags: Ethereum, ICO, Wepower, Bitcoin, Chainfund Report

Originally written by fund manager and founder Yann Quelenn. Chainfund Reports are communicated to investors prior to publication on Medium.

The Chainfund Report 22/01/2018

21.01.2018 Share Prices — Extreme: $349.76, Dynamic: $355.30

Chainfund.ch Public Beta

We now have a website which is nonetheless still in Beta. You can access by clicking this link www.chainfund.ch. Feel free to give us any comment.

We are making progress on a lot of things (admin, our platform, fund management, social medias) but there is still a long way to go. Thank you for being here with us.

Thanks to Andrew we are on our way to have a Facebook, Twitter and Medium account.

Ethereum ICO Fund Launched

All info can be found here: https://on.chainfund.ch/ethFundCF

First of all thank you as we have already gathered a decent amount allowing us to launch our ICO fund. The deadline to participate is the 28th of January. The first ICO we will attempt to participate is WePower. I will talk more about it this week. We will also disclose within the next few days other ICOs that we are interested in as I am performing due diligence at the moment while managing our other portfolios.

Regarding markets

A lot of you guys have talked recently about VeChain and its strong increase. I believe the coin is overhyped everywhere on any social medias because of the future rebranding that will happen at the end of February but also with the excitement that came out the recent partnerships announcement. Markets are also more aware of the strong people within VeChain (ex COO & CIO of Louis Vuitton for example for the networks). Last but not least, the FOMO (Fear Of Missing Out) is still playing a strong role in the VeChain price increase. The project is however clearly solid.

In our portfolios, we have Waltonchain, a VeChain competitor, and it has recently won the Outstanding Blockchain Company award at the 1st Summit Forum of Blockchain in Southeast Asia. In my opinion, Walton will likely increase when the very dense Q1 roadmap will be accomplished.

When there will be a dip, I will add some VeChain to the Dynamic portfolio. Right now, downside risks on VeChain are way too important.

What about Bitcoin?

Speculation on Bitcoin future contracts (contract where a buyer agrees to purchase a Bitcoin at a later date) have pushed the price lower. CME contracts ended the 17th of January while first contracts on the CBOE are ending the next 26th of January.

Markets seem more aware that the high transaction fees are not sustainable over the long haul. However the Lightning Network, despite not being perfect (each node may be subject to attacks) may be a solution. There are also the RSK smart contract on the pipeline and the Lumino project is clearly showing that Bitcoin is NOT DEAD. Source:

https://www.docdroid.net/QHJX8Ml/luminotransactioncompressionprotocolltcp.pdf

However, competitors like RaiBlocks gain in intensity and sometimes it turns out that the “Store of Value” feature of Bitcoin is only what is being talked about the first digital currency in order to mask the current lack of scalability and the too high processing time.

Yet, Bitcoin is still the king of cryptos and the rise of Bitcoin Cash may be a threat for the first digital currency even though Bitcoin Cash is also far from perfect. Money is anyway going to continue flawing into Bitcoin throughout the year. Further dips are then happening as we see and should happen from time to time.

Getting below $8k is something that should happen before another strong leg higher. I recall that I believe that Bitcoin will still be there in 5 years and that no one can predict how long and how deep will be the dips. One should not forget that the Bitcoin network is so huge and the adoption rate is growing exponentially. There are now so many merchants worldwide accepting Bitcoin even if we know that it is not an optimal payments.

On top of that, any mainstream medias love to call for the Bitcoin death. According to me, they should rather call for the end of the stock market bubble created by low interest rates monetary policy by central banks. I often hear: “When the confidence will be gone, the Bitcoin will collapse”. This is actually what is going to happen for fiat currencies, in particular the US dollar. Crypto-currencies will largely benefit from it.

Talk to you next week,

Yann Quelenn