KuCoin, BitMax, Synthetix emerge as top 2019 exchange coin plays

In the wake of Binance’s imminent closure of client accounts from the United States, who had made up a lion’s share of Binance’s users, altcoin platforms KuCoin and BitMax are best positioned for growth in the exchange sector for the remainder of 2019.

Asymmetric upside potential exists for the Synthetix Network Token, since the Synthetix Exchange solves for the liquidity problem faced by decentralized exchanges. Instead, synthetic assets (e.g. sUSD, sBTC, sETH, sBNB) are exchanged directly on Ethereum’s blockchain. The cost to execute a trade is the gas price.

Binance and “BAM Trading Services” (perhaps Bitwise Asset Management Trading Services) announced a partnership to start “Binance-US” on June 13. The development cut short Binance’s run past the all-time high near $35 per unit.

BNB shed almost 15% of value in USD before bouncing off the reaction low @ ~31.50.

There are some who think Binance-US will suffer from problems similar to Bittrex and subsequently not be a very good platform to trade on. The result is a sizable chunk of U.S. crypto traders looking for places to find the next 10x gem shitcoin.

Exchanges are natural gateways into the crypto capital markets for retail traders, large fund managers, quant strategy funds, and miners.

A very natural consequence of higher crypto asset values and increased trading volume over time is that fees for exchanges grow.

They are demonstrably profitable entities in a crypto-space that’s long on promises and rhetoric and short on ready-to-use mainnet products. As the crypto-sphere’s audience size expands, exchanges benefit during bull periods when FOMO is the rage and bear markets when liquidating and capitulation is common.

KuCoin Shares and BitMax tokens performed after Binance sustained a drawdown.

A position in BitMax was up 28% to 54% as of time of writing June 17.

BitMax.io is a Torque Ventures project.

The KCS/USD trade provided 18% to 40% percent upside.

KuCoin and BitMax do not restrict market participation based on geographic origin. Use this link for a 10 percent discount on fees at BitMax. Use this invite link to get situated on KuCoin.

The 2019 cryptoasset market uptrend led by the Bitcoin’s price appreciation is an instance of a rising tide lifting all boats. As cryptoasset values grow relative to the Dollar there is a natural upsurge of demand to trade the top 10 cryptoassets and the rest of the altcoin field. Therefore, the demand for exchange tokens is unlikely to have reached potential upside as long as the Bitcoin’s price has not peaked.

Centralized exchanges carry risk. The intermediary can be regulated, and therefore costs to operate on these platforms are vulnerable to growth.

The promise of decentralized finance has been tempered by liquidity restrictions. Synths minted by SNX holders enables unlimited liquidity for onchain interactions.

The Synthetix Network generated significant momentum in Q2.

Synthetix’s Total Volume Locked (TVL) increased several multiples in USD terms since May 1.

Volume on Synthetix Exchange exceeded $1 million over a 24-hour period more than once during the week June 10-June 17, when $3.72 million in volume occurred.

In the last 24 hours Ethereum accounts conducted $744,040.96 of volume on Synthetix Exchange.

Synthetix Network’s TVL exceed Lightning Network’s TVL by a multiple approaching 2 as of June 17.

SNX appreciated proportionally to utilization of Synthetix Network.

SNX/USD appreciation closely tracked TVL and Volume growth, with upside between 212% and 367% in fewer than 50 days.

Lightning Network’s TVL in BTC terms decreased 16 percent between May 1 and June 17.

The number of unique LN channels connecting for the first time is dropped -12 percent during the period May 1-June 17 (source: BitcoinVisuals.) Network Capacity decreased approximately 9% over the last 30 days to $8.76 million (source: 1ML).

The mainnet Synths launched in December 2018, so asymmetric upside continues to exist as the Synthetix Network matures. KuCoin is the primary centralized exchange where SNX are available for sale with minimal slippage.

ETH: 0x7F2f1c0496f9945D47175be1E504f50493997f4C

BTC: 3EtmvgAbSqLaHmUafhhe2TqppvCcnwQyth

Published at Tue, 18 Jun 2019 04:03:57 +0000