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A Message from Alexander Höptner, CEO of 100x Group

It’s been two weeks since the last Crypto Trader Digest and in this short time span, we’re already seeing more history-making moments in crypto. Whether it was Coinbase catching the eyes of millions with its direct listing or another ATH for Bitcoin - the past few days alone have been exciting.

These developments will no doubt contribute to many more people considering the possibilities of crypto for the very first time - and that’s a great thing for our industry. A rising tide raises all boats. It’s worth remembering - whether we’re new to this space or of the more seasoned variety - the importance of #DYOR before making investments.

This notion and its importance is further delved into by Arthur in the latest edition of Crypto Trader Digest.

- Alex (@AlexHoeptner)

From the Desk of Arthur Hayes

Yes … I Read the Whitepaper

(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)

Humanity’s struggle to locate the easy button permeates all aspects of our existence. In the context of the financial markets, everyone wants to find that expert, newsletter, or secret trading program that if followed will lead to instant, risk-free and above-average sick GAINZ. Intrinsically, we all know that said button is a fleeting chimera one chases at one’s peril – and yet, I continually get asked “What coins should I buy”, “Is now a good time to buy”, “Does technical analysis work”, and on and on. I don’t offer such opinions even to my closest friends lest they erroneously believe I’m the oracle of the Kampong.
I recently became involved as a sponsor of the Tampines Rovers Football Club in the Singapore Premier League. A few of the footballers are into crypto and asked if they could pick my brain over lunch one afternoon.
The three players had all dabbled in day trading crypto with varying degrees of success. They asked all the standard questions I mentioned above hoping that I could offer the secret to crypto riches over a two-hour lunch. Unfortunately, I disappointed them, and asked them a lot of questions that made them think about why they were investing / trading, how much time they had to dedicate to their endeavor, and what their risk tolerance was. The coup-de-grâce, which served as inspiration for this essay, was when I inquired if any of them had read the Bitcoin whitepaper. None of them answered in the affirmative.

The reason the whitepaper is important isn’t because I’m a Bitcoin maxi, but because nearly all other blockchain and crypto projects borrow concepts from and benchmark themselves against ideas presented in that paper. Some projects may not borrow from Bitcoin’s whitepaper directly, but from another project that had borrowed from Bitcoin’s whitepaper (and so on). As a rule of thumb, almost every blockchain or crypto project takes a set of successful and proven concepts from a previous project, and either imitates them or attempts to build on them.

The scams imitate poorly and at the surface level. Scamcoins have all the buzzwords and a slick looking website — but if you actually take the time to read even a few sentences of their White or Litepaper, you should be able to instantly recognise that it’s a pile of cow dung (often because it’s either a shameless plate of copypasta, or completely unintelligible).  

The next 1,000 bagger projects imitate and then improve. Ethereum imitated Bitcoin in many ways, but offered a substantial improvement by creating a virtual decentralised computer that greatly expands the potential use cases for the technology underlying Bitcoin. Don’t you wish you bought some ETH in the pre-sale? I know I do - I publicly called it a shitcoin in a very early edition of this newsletter.

Ultimately, any new project needs to answer these fundamental questions to maximise its chances of success:
  • Why are we here at this moment trading this ecosystem of magic internet money?
  • What do we hope to achieve?
  • What about the current financial system are we trying to improve upon or replace?
If you don’t have a firm understanding of the “why” and the potential “how’s”, you cannot discern fact from fiction. With an ever expanding universe of digital coins to invest in, without a firm understanding of what the ideal outcome is, you will be at the whim of whatever the search algorithm serves up in terms of coin recommendations...

Click here to continue reading this edition of Crypto Trader Digest 

–  Arthur Hayes, Co-Founder of 100x Group (@CryptoHayes)

From BitMEX Research


The Blocksize War - Chapters Three and Four 

The continuation of The Blocksize War have been released on the BitMEX blog. This book covers Bitcoin’s blocksize war, which was waged from August 2015 to November 2017. On the surface the battle was about the amount of data allowed in each Bitcoin block, however it exposed much deeper issues, such as who controls Bitcoin’s protocol rules.

The full book is available on Amazon. Half of any profits from physical book sales will be donated to Médecins Sans Frontières, a charity that provides medical assistance to people affected by conflict, epidemics, disasters, or exclusion from healthcare.


Latest News from BitMEX

Enhancing the BitMEX Compliance Programme with Kharon

We’ve been steadily enhancing our compliance programme as the crypto derivatives sector evolves. The latest step comes in the form of a new partnership with Kharon, a research and data analytics company, to strengthen our customer due diligence process and enhance screening for OFAC-sanctioned entities and other related parties.

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No articles in this email should be copied or reproduced in whole or in part. The information contained does not constitute research or a recommendation. 

Neither HDR Global Trading Limited nor any of its affiliates make any representation or warranty as to the accuracy or completeness of the statements or any information contained in these articles and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. This is not providing any financial, economic, legal, accounting or tax advice or recommendations. In addition, the receipt of this email is not to be taken as constituting the giving of investment advice nor to constitute such person a client of the BitMEX trading platform.

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