BLOCKCHAIN: SATURNUS - LIQUIDITY PROVIDER IN THE CRYPTO MARKET

Jumat, 25 Januari 2019

SATURNUS - LIQUIDITY PROVIDER IN THE CRYPTO MARKET

Introduction
Today, the status of gold as a standard of value goes into digital field. Bitcoin digital gold. Bitcoin is limited in quantity, requires mining costs and is used as payment instrument. The launch of Bitcoin has led to the emergence of software in the industry based on the blockchain technology and the emergence of Bitcoin analogs, offering to solve actual problems or expanding infrastructure for using Bitcoin. Due to the fact that the share value of the total Bitcoins is estimated at 50% capitalization of a crypto market, others digital assets are called “Altcoins”, implying "an alternative asset Bitcoin»

Problem of the crypto marketThe lightning-fast growth of the capitalization of the young crypto market to a value over 800 billion USD was replaced by a tendency of a long fall to values below 200 billion USD. The total cost of crypto assets decreased by 75%. Some assets have lost up to 90% of the value, and some are excluded from list of exchanges.
During the fall of the market, investors lost about 600 billion USD of their crypto assets. In a prolonged staying of crypto market on the bottom, the prices of some assets continue to update the minimum. The owners of such assets gradually lose faith in the market's ability to grow and begin to get rid of depreciating coins and tokens, aggravating the market situation. Lack of secondary demand for crypto assets forces teams of blockchain startups, which were considered hopeful until recently, to turn off any work at their products. With the complete lack of support for asset liquidity by traders, project founders and exchanges, these markets are doomed to extinction.

Reasons of the current crisis
The main reason why the market capitalization has fallen by 70% is obviously inflated capitalization. Due to the peculiarity of calculating the capitalization of crypto markets by rating providers (Coinmarketcap), the values presented in these ratings are not true. Capitalization of assets is calculated by multiplying the number of active coins by the current average market price for one coin. The number of actively circulating coins also cannot be taken as true, because the number of units of some assets in the hands of just a few investors reaches 80-90% from all issued coins.

Properties required for the markets development
Markets evolved according to economic laws. Each exchange asset to attract money to the the market must have some qualities, the combination of which attracts or repels investors and traders.

Money leaves the crypto markets
Today, the market capitalization of cryptocurrency is estimated at about 200 billion USD (November 2018). Our team believes that even this amount is too high, as mentioned above. In early January 2018, the capitalization estimate was over 800 billion USD. Where did the 600 billion USD go - 75% of the maximum capitalization amount?

Based on the blockchain data, there are companies that conduct crowdfunding fees, we assume that some of the money from the lost 600 billion USD has never been in this market. The evaluation of the total market capitalization is conditional, and the transparency of the ICO is doubtful. Therefore, no one will ever know the real numbers and we do not undertake call ratings.

View on the near future of bitcoin markets
Studying in practice the crypto markets of different levels of liquidity, the Saturn Black team hypothesizes:
Further decline expects most of crypto markets. Probably in 5 years, up to 90% of the trading crypto instruments in the market may disappear, for the following reasons:

• Practical uselessness of technology and competition
• Bankruptcy of companies beneficiaries of assets
• Strengthen government regulations
• Thefts and technical failures

Most crypto players believe that the rise of Bitcoin price is inevitable. And since Bitcoin will go up in price, crypto market in general will also go up. Indeed, such an interconnection is real and the rise in prices of most of the represented assets is directly related to the growth of Bitcoin. But, as in any market, the prices of only popular instruments, that attract crypto players, are rising.

Market Capacity covered by Saturn products
We have already mentioned above that the market has lost 75% of capitalization in less than a year. The cost of lost capitalization is 600 billion USD.
At the beginning of November 2018, the share of capitalization of the crypto market, represented by Bitcoin is more than 50%, and the total share of the TOP 10 liquid crypto assets is another 30%. Together with Bitcoin, the share of the leaders of the crypto market accounts for 80% or 160 billion USD of the current capitalization amount of 200 billion USD.

The total share of the rest 2,000 low-liquidity assets is 20% or 40 billion USD - today they cost so much in the amount of 99.5% of crypto assets. Based on the fact that the market continues to fall, our team assumes a further decrease in the liquidity of markets and asset prices, as a result of this process. So, the proposal to exchange low-liquid impaired assets to the XSAT token with a working infrastructure for the safe trading of multiple crypto assets will increase the relevance for hundreds of thousands of holders or 99.5% of market players.