Global Digital Assets News

With the halvening upon us, it has been an exciting week. 

Clients are cautiously looking at the market and adjusting their portfolios, waiting for the shoe to drop and the effects of the halvening to really be felt by the market. Luckily, our clients are receiving constant post-halvening market updates. If you want a copy of your own post-halvening analysis then make sure to sign up for our investor newsletter ‘The Digital Asset Digest’ here as we will be providing our readers with a free analysis next Tuesday! 

Internship Opportunities at GDA

Thankfully, during this week we have been able to kick off a project that means a lot to GDA, our internship program! We believe expanding the blockchain ecosystem with well trained and educated people is invaluable to the growth & adoption of blockchain, and we are excited to do our part!

We have built our internship program to develop the blockchain industry leaders of tomorrow and give them the platform they need to grow their skills and network within the blockchain industry. 

The intern program will be during the summer months (June-August) and the fall months (September-November). If you are interested in applying to GDA’s internship program send your CV & cover letter to info@gda.capital.

We are looking forward to working with our incoming interns, and we are excited to introduce them in the coming weeks to the GDA family!

Hoping everyone is staying safe!

THE HALVENING IS UPON US.

Yes, after much hype, the infamous bitcoin halvening has come and gone. The next 210,000 blocks will now yield 6.25 bitcoins per block reward.

Does this call for a hooray? Not Yet. Before we get too excited, we need to see how this will impact the market, and only time will tell.

Our analysts will be glued to their monitors sifting through the candlesticks to find new trends to bring to you. So make sure you tune in next week for our post-halvening analysis. Until then, enjoy this week’s volume 6 of ‘The Digital Asset Digest’. As always, we will be touching on all things crypto. Enjoy!

market summary

Bitcoin – Bitcoin closed at $9,895 on Friday morning, up 12.4% for the week just days before the third halving. The surge seemed to have been constrained to Bitcoin alone as opposed to the cryptocurrency market as a whole. Ether was completely unmoved for the week and XRP closed down 0.18%.

Indices – The S&P 500 was up 3.5% for the week as increased optimism surrounding the coronavirus and U.S. – China trade relations drove returns. These returns were largely driven by gains in energy and information technology, with WTI futures rebounding a stellar 25.1%.

Commodities – Gold was up slightly, again crossing the $1,700/oz mark. Silver, on the other hand, boasted an impressive 5.9% return.

Bonds – Treasury yields were more or less unmoved for the weekend, with the 10-year yield rising 5 bps for the week. Despite the rally in equity markets, fear continues to be the prevalent sentiment, and the market will be watching coronavirus figures closely as the U.S. and countries in the EU begin to lift lockdown restrictions.

Billionaire Paul Tudor Jones: ‘My bet is it will be bitcoin’ as the best inflation hedge
Source: MarketWatch

“Billionaire investor Paul Tudor Jones made a prescient call on bullion in 2019; now he’s saying that bitcoin, the controversial digital currency, reminds him of gold in the 1970s, and may be the best hedge against inflation in the age of coronavirus. The famed hedge-fund investor, writing in a recent research note, cited unprecedented money-printing and stimulus measures by the Federal Reserve and the U.S. government amid the COVID-19 pandemic as key reasons behind his newfound appetite for the world’s most prominent cryptocurrency.”

Bitcoin mining markets heat up: Ebang’s $41M deficit, Bitmain’s alleged 2020 revenue
Source: Bitcoin.com

“Bitcoin mining is feverishly hot these days, especially just before the great Bitcoin reward halving that will take place on or around May 12, 2020. During the last six months, there’s only a handful of ASIC mining rig manufacturers and all of them stem from China. This includes companies like Bitmain, Ebang, Strongu, Innosilicon, Microbt, and Canaan. There are a few other manufacturers, but the firms are not nearly as sizable as these six businesses. Just recently, the company Ebang filed for a $100 million initial public offering (IPO) in the U.S. and the company will await a decision from the SEC. Although, the firm’s prospectus shows that Ebang suffered from some losses in 2019, and it may reflect the IPO’s initial raise.”

Bitcoin miners sell BTC months after halving, on-chain data suggests
Source: CoinTelegraph

“Bitcoin’s third halving is less than a day away and the cryptocurrency community remains divided on whether the price will rise or drop after the event. Interestingly, on-chain data from previous halvings suggests that after the halving Bitcoin price may not see an immediate drop. Google Trends data shows that searches for the halving have already surpassed previous all-time highs, and the crypto community has been issuing a variety of price estimates for the post halving price.

ExtStock is a cryptocurrency exchange based in the U.K. founded in 2018. The company boasts over 20,000 traders and claims that its API can process up to 1,000 applications per second, making it a useful platform for high-frequency traders and scalpers. XT is ExtStock’s proprietary cryptocurrency that fuels the exchange. It’s an ERC-20 token whose main use is to pay for trading commissions on ExtStock. ExtStock also pays 100XT for every trader that registers through a referral link after passing KYC verification.

XT went through the first stage of its IEO on January 15, where it sold 100 million XT tokens in less than a minute. The token went through the second stage of its IEO in March, although they were unable to offload all of its tokens (92% of tokens offered were sold). The company claims that this was caused by a sharp collapse of quotes. A third and final stage is in the works, although for the time being, it has been postponed indefinitely.

Despite the success of its token, the company suffers from several allegations of fraudulent activity. No record of a founder can be found on its website, nor can any employees be traced on LinkedIn. Lisk reported in a tweet that several of its users had issues withdrawing funds from the exchange and cautioned users to be cautious. ExtStock has also been accused of inflating volume by quoting a higher price on BTC to induce transfers from users. In May, Cointelligence reviewed the exchange and rated it a scam.

XT currently trades at $0.27 with a market cap of $164.9 million. Please note that these token highlights are not a recommendation. We highly encourage readers to engage in their own due diligence before purchasing tokens.

Top Gainers


Top Losers


Cryptocurrency Weekly Market Performance

Indices and Commodities

The Security Trilemma and the Future of Bitcoin
Source: CoinDesk

“The imminent halving of the “block subsidy” exposes a fundamental threat to Bitcoin. Whenever a new block is added to the blockchain, a quantum of new bitcoins is created and paid to the miner adding the block. As miners compete for this subsidy, they drive up the system’s difficulty, making it harder for so-called 51% attacks to succeed. But the subsidy is set to diminish over time, halving very soon to 6.25 bitcoins per block, so that the total supply of coins will eventually reach 21 million. And as the subsidy shrinks, Bitcoin could fall victim to 51% attacks, just as smaller cryptocurrencies already have.”

Technical Review and Market Summary

Indicators are pointing towards a bearish continuation this week. During last week’s Technical Review, we forecasted that indicators were pointing towards a bearish reversal and cautioned traders to watch for when BTC’s RSI crossed below 70. On Saturday, RSI finally crossed, triggering our prediction. Optimism surrounding the halving was clearly short-lived, as traders pushed BTC down from 9.5K to almost 8K in the span of a single day. Now that Bitcoin is in freefall, we predict that it’ll be a while before BTC finds support. In the meantime, we are bearish and will be sitting on the sidelines until a more positive signal starts to emerge.

Finally, a week of sustained gains in the non-crypto markets! Last week we said it was comfortable to see traders adjusting to operating in a COVID-19 world. Now, after last week’s market performance, I think they might be getting more than comfortable. However, the bearish sentiment towards Bitcoin, even in the midst of the halvening is troubling. Is the market truly disinterested, or are retailers just slow to react? 

Make sure to check out our post-halvening analysis next week to find out!

Welcome back to GDA’s official industry newsletter. Today we’re going to be talking about the GDA ecosystem, but if you didn’t get the chance to read the latest edition of our financial-focused newsletter, The Digital Asset Digest, we encourage you to. You can also sign up to receive your own weekly market insights here.

Our goal as North America’s first blockchain-focused merchant bank is to provide projects with the financial, technical and strategic resources they need to address real-world problems through blockchain, and ultimately bring their tech to the market at scale. 

To do this, we have been expanding the GDA ecosystem by consistently adding to our partnership network. This gives us a full suite of technical and financial capabilities across all key geographies. This week we will be summarizing all of these key partnerships and explaining how we plan to leverage these relationships as we move into the month of May.

In this era of misinformation, some of our client’s most critical needs are reliable media channels. Scarce media regulation has caused a lot of for-profit entities to jump into the crypto space, completely disregarding factual reporting and journalistic integrity.

Originally GDA planned to circumvent this by cultivating strong relationships with ethical publications. However, it organically blossomed into so much more. With the singular goal of bringing objectivity to crypto, Timestamp Magazine was born. As an online-only publication, Timestamp Magazine is a blockchain-agnostic magazine that reports on all blockchains and decentralized projects.

Timestamp in no way receives any direction or oversight from the rest of GDA, it operates as a completely separate entity. What Timestamp provides GDA, is the same thing it provides every other company in the industry; peace of mind. From now on, GDA no longer needs to spend hours on discovery and due diligence on new media partners. We are now working with the industry’s most reliable publication.

If you are interested in exploring any media opportunities with Timestamp Magazine, kindly reach out to the editor here.

In early May, GDA and Accubits Technologies launched a joint venture. Accubits is a blockchain and artificial intelligence systems integration firm, specializing in enterprise and large-scale businesses. Based in the United States, this joint venture greatly expedites the speed at which Accutbits can bring their technology to new markets such as Canada and Europe. Moreover, this joint venture creates a phenomenal opportunity for GDA clients to get access to some of the industry’s best integration services.

If you have a decentralized application or blockchain project that needs third-party expertise, let’s get in touch here.

Back in April, we announced a partnership with MarkChain. A France-based marketing firm focusing on blockchain and decentralized application projects in Europe. 

The partnership creates natural synergies as each firm can tap into each other’s investor network and expand their respective operating regions. With the combined capabilities, GDA can provide a global umbrella of marketing, capital markets, and product development services.

If you are interested in how we can help your project from the ground up, let’s get in touch here.

gda ecosystem

Last, and arguably the most exciting announcement was last week’s partnership with DigitalBits (XBD)

DigitalBits is a protocol layer blockchain built to support consumer digital assets, specifically branded currencies. As technology continues to innovate the way brands interact with users, GDA thinks it is critical that blockchain is at the forefront of this disruption.

Considered the 2nd generation of stablecoins, XBD’s branded currencies create a new form of engagement between brands and consumers, improving market intelligence, allowing companies to create more targeted marketing campaigns and develop stronger insights into consumer needs.

We are particularly proud to circle back to this announcement because DigitalBits has just secured funding from Alpha Sigma Capital (ASC) to help increase the institutional adoption of branded cryptocurrencies, a huge milestone on their strategic roadmap.

Concluding Remarks

Although COVID-19 has been a tumultuous time for everyone around the world, we have taken this time to buckle down and work on our business. We now boast the internal capabilities, and external relationships to work with founders from any part of the world to help them realize their decentralized dreams. 

If you or anyone you know is ready to take their project to that next level, let’s get in touch.

Market assessment as we move into May

Welcome back to the fifth edition of ‘The Digital Asset Digest’. Last week, we provided our network with an exclusive halvening analysis, ensuring all of our readers have the information they need to make educated decisions about the upcoming halvening and how it relates to their portfolio. As we jump into a new month, our focus today will be to provide a complete market assessment and look into how various asset classes have performed over the past few months. 

Digital Assets – Bitcoin closed at $8,800 Friday morning, surging 17.6% for the week and reaching a two-month high after a month of consolidation. Much of the week’s gains were driven by a steep rally Wednesday where the coin rose 12.7%. Ether trailed slightly, posting gains of 13.0% while XRP rose 11.8% over the same period.

Indices – The S&P 500 closed down 0.21% for the week following the biggest monthly gain in more than 30 years in April, driven by tech earnings and the reemergence of trade tensions between the US and China. This is somewhat contrasted by the S&P/TSX Composite, who managed to scrape by with a 1.4% return over the same period.

Commodities – WTI crude jumped 16.8% in one of its most volatile periods in history as the recent agreement between major oil producers to cut production officially came into play. Gold fell slightly as investors sold risk-off assets to catch the rally in the equity markets.


GDA joins DigitalBits Ecosystem to bring Branded Cryptocurrencies to Enterprise

Source: CoinSpeaker

“Global Digital Assets (GDA), the first merchant bank in North America with a specific focus on blockchain and digital assets, announced today that it will be joining the DigitalBits ecosystem to further enterprise adoption for branded cryptocurrencies. GDA, in collaboration with other ecosystem participants, will provide the infrastructure necessary for consumers, merchants, brands and payment providers to benefit from branded cryptocurrencies, inclusive of the emerging subcategory of branded stablecoins.

Argo Blockchain sees revenues soar 11x after mining 1,300 Bitcoin in 2019

Source: CoinDesk

“Argo Blockchain, a bitcoin mining firm listed on the London Stock Exchange, reported stellar 2019 earnings Wednesday. The company attributed its success to cutting off its consumer-facing arm and focusing on mining some 1,330 bitcoin (BTC) on the year. In its full-year results, Argo said 2019 revenue was up 11-fold from the year before, a dramatic spike from $948,000 to $10.7 million. Argo’s earnings before interest, tax, depreciation and amortization (EBITDA) came to $1.74 million, compared to a $4.56 million loss in 2018.”

China’s cyberspace regulators approve 224 blockchain ventures

Source: CoinTelegraph

“China’s Office of the Central Cyberspace Affairs Commission (OCCAC) has announced its third round of blockchain projects to receive approval from the country’s regulators. 224 distributed ledger technology (DLT) ventures have been added to the commission’s registry, which includes major tech firms Alibaba, Baidu and China Mobile. The news appears to have been broken by Twitter user ‘AliceolaCrypto’, who posted a screenshot of the OCCAC’s announcement on April 27. She wrote that of the 224 approved projects, approximately 40% hail from Beijing. Roughly one-quarter of projects will target the fintech sector.”

Older mining machines turn profitable again as Bitcoin rises ahead of halving

Source: CoinDesk

“With bitcoin’s price jumping to a two-month high above $9,000, even mining equipment thought obsolete is becoming profitable again, at least for a short time. According to the miner profitability index, tracked by mining pools PoolIn and F2Pool, older mining rigs, such as Bitmain’s AntMiner S9 or Canaan’s Avalon A851, can now generate a 10% to 20% gross margin at an average electricity cost of $0.05 per kilowatt-hour (kWh). For those that have adopted miner efficiency improvement methods, such as merging two S9s into one or lowering voltage to boost efficiency, gross margin could increase to as much as 30% to 40% at bitcoin’s current price.”

Ethereum 2.0 staking upgrade can trigger ETH price rally

Source: CoinTelegraph

“Ethereum 2.0 has dragged its feet. But when it does finally ship, it could provide the “largest economic shift in society” — or so it’s believed. The launch of ETH 2.0 is tentatively penned for July, transforming Ethereum from a no-frills proof-of-work protocol to a fully-fledged staking platform. After that, instead of competing against each other to solve puzzles, users who accrue the most wealth, or stake, will be in charge of validating transactions. It’s this fundamental development that some experts believe could catalyze a bull run for Ether (ETH).”

DigitalBits™ is an open-source project supporting the adoption of blockchain technology by enterprises. The technology (commonly known as branded cryptocurrencies) enable enterprises to tokenize assets on the decentralized DigitalBits blockchain; transfer & trade those tokenized assets on-chain; and enable fast payments & remittances.

Considered the 2nd generation of stablecoins, branded currencies create a new form of engagement between brands and consumers, improving market intelligence, allowing companies to create more targeted marketing campaigns and develop stronger insights into consumer needs. 

Forked from the Stellar Protocol in 2017, DigitalBits introduces key modifications to support brand and enterprise adoption and currently trades at $0.02 with a market capitalization of $7.8 million.

market assessment

Top Gainers

Top Losers

Cryptocurrency Weekly Performance

Indices & Commodities

market perspective

Opinion: A business crypto is dangerous and inevitable

Source: CryptoVantage

“It is only a matter of time before there exists a cryptocurrency that serves the interests of business. In early 2019, Facebook announced that it will be deploying a cryptocurrency called Libra. The mission statement of libra is to “Provide people everywhere access to safe and affordable financial services”. This is a noble goal, with 25% of the world living without reliable access to financial services. The problem though, is who has control over the financial system, and what sort of implications that has.”

Source: Trading View

Indicators on Bitcoin are signalling a bearish reversal over the upcoming week. In our Technical Review two weeks ago, we correctly forecasted that there was slight upwards potential as BTC traded between an ascending channel. Since the rally on Wednesday, BTC broke out and closed above the upper channel line. Along with the breakout, RSI closed above 70, indicating that BTC rallied too much too soon and that it may be overbought. Traders will be watching RSI closely given that the last time BTC crossed under 70 in February, the coin dropped 53%. We caution traders to trade diligently this week as the upcoming halving may skew the applicability of technical analysis.

It’s clear that COVID-19 is a long-term economic event. Its distress on the economy is clear, but markets can’t bleed forever. This week we saw some capital crawl back into the market and fight against the fear and uncertainty that plagued commodities and other key sectors in weeks past. Although we still have a long way to go, it is comfortable to see that traders and institutions alike are getting used to operating in a COVID-19-impacted economic environment.