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Cryptocurrency Market Analysis February 23, 2018



cryptocurrency price analysis

Regulators – Boogeyman of the Cryptoworld

The cryptocurrency world has been shaken for the past couple of months by the measures, which governments have been taking in order to regulate this market. China has stopped the activity for the local exchanges and prohibited external transfers to foreign exchanges. The SEC has had crypto discussions and the IRS is working with Chainalysis to scan for tax evaders. Many countries have banned ICOs and are strongly against investments in such vehicles. Japan – the one with already existing regulations – is knocking on the doors of exchanges in order to strictly monitor their activity. These examples could easily be listed in a couple more pages.

Although right now everyone looks at regulations as killing crypto businesses and investments, from our point of view this is a misconception. In a decentralised world, some of the power is given back to individuals, yet it does not make the environment safer because there will always be actors trying to benefit in an illicit way from the trust of other people. ICOs serve as an example. In 2017 thousands of ICOs have been launched, with many good ideas backed by experienced teams, which most probably will reach their targets and provide promised services according to their whitepapers. But these are few and far between. Many ICOs have just been launch for startup founders to get their hands on easy money. 

The trend clearly shows ERC20 token to be most commonly used in creating new ICOs. These can be easily built in just several minutes by a medium experienced developer. Such tokens do not bring added value to the crypto space but due to lack of regulations and supervision, they are released and millions of dollars will be lost by their owners, without the possibility of being recovered.

Despite the sentiment that regulating a decentralised economy is seemingly a drawback, it shall bring stability and trust towards the remaining tokens. Most governments, if not all of them, are supporting the innovative technology underlying cryptocurrencies. However, they also have the obligation to fight with money launderers, tax evaders, and scammers in order to protect bona fide investors. Understandably, regulators take a slow and measured approach to cryptocurrencies.

Bulls or Bears?

As per the usual, markets tend to panic when an external factor is expected to have an impact on the environment, though it is not fully understood by the masses, and the price dips. This is what happened to bitcoin and altcoins in late December 2017 and January 2018.

Due to regulatory risks, bans, and smart money selling their coins, a sell-off started on the crypto market. The price of bitcoin plunged from close to $20,000 to $6,000, providing a huge discount for whales to come into the market. As all the headlines were showing “Anonymous investors buys 400 millions USD worth of bitcoin”. Nobody with access to this kind of funds would invest as much in a low probability investment opportunity, or we are wrong?

Nevertheless, many analysts and investors all over the world have expressed their opinion that blockchain technology has the potential to disrupt a big number of classical business models. The crypto asset market is still in its early development stage. A new regulatory environment will pave the way for more smart money to enter this market. A new passion to have better control over finances and less trust in centralised institutions adds up to a strong list of arguments, which reinforce the idea that the crypto market, still dominated by bitcoin, is poised to continue its rally.

Price Analysis


The price action of bitcoin (BTC) vs USD shows that after hitting the $20,000 Resistance, the price started a corrective move inside a descending channel, which stopped at $6,000, a four-month low. Currently, we can say that the main trend of the price is downward, by looking at LH and LL (Lower Highs and Lower Lows). The rally which has brought back the back towards $12,000 has met a strong resistance area built on a convergence of previous resistance levels and trend line. A drop from here back to retest the local support from $9,000 is more likely than a breakout from this channel. The fundamental uncertainty is still fueling bears and the accumulation area has yet to be developed. A retest of $9,000 or even lower of $7,500 support area could gather enough buying power for bulls to come back and break above $12,000, aiming for new highs above $20,000.


Ethereum (ETH), as well as other altcoins, followed pretty much the same path as BTC, though it has not corrected as much. It hit its all-time high in January and the dip stopped at around $600 per ETH. This is considered a strong support area for the future price action of this pair. A rally brought the price back to the $1,000 resistance area which worked as a charm, since the price was reflected and now is on a downwards move, targeting the $750 local support. We are expecting this pair to act very similar to BTCUSD and build an accumulation area before breaking above the downtrend line.


Ripple (XRP), on the other hand, had a much more volatile and aggressive behaviour than our previously analyzed tokens. The price shot through the roof in a strong buy period, fueled by the Asian buyers, especial investors coming from South Korea, reaching a new high at $3.32 per XRP. The sell-off corrected 88.6 (Fibonacci retracement) of the latest rally, and the token is currently traded below $1 per token. A support area has been built around 75 cents per token, while the resistance level sits at $1.21 per token. Similar to the BTC and ETH, we consider an accumulation area is developing as we speak, providing time for bulls to regroup and push the market above the current resistance levels.

Buroka TechThis cryptocurrency market analysis is being presented by Buroka Tech. Buroka Tech is cryptocurrency-focused technology provider for financial institutions. 


New South African President Cyril Ramaphosa Proposes Pan-African Cryptocurrency



Pan-African Cryptocurrency

Cyril Ramaphosa, South Africa’s president, has given his full support for calls to have a single African currency adding that a digital one would be ideal. His statement was addressed to journalists during the African Union summit in Kigali, Rwanda.

The summit saw 44 countries sign a deal to institute the African Continental Free Trade Area (AfCFTA). “A single African currency was the natural next step,” Ramaphosa believes.

Although South Africa did not sign on the AfCFTA deal on Wednesday, as Ramaphosa still needs to get approval from domestic stakeholders, he went on to say: “Business people said doesn’t this beg for a single currency, and in my book it certainly does.”

Ramaphosa added that while previous proposals for a single African currency have been linked to ‘the Afro’ name as the name for the currency, he was not sure what the currency might look like and there are possibilities it may not take a physical form.

“We will begin to interface with the idea and notion of a single currency, possibly even a digital currency, and it’s possible that a digital currency will precede a real single currency,” Ramaphosa said.

The proposal of a single African currency was first suggested in 1991, with the Abuja Treaty, which laid out the establishment of the African Economic Community. Since then, African leaders have resisted the move to have a single African currency, sighting economic sovereignty as the reason. Ramaphosa, however, believes that this is changing.

“It may take time, it may take years, but it’s interesting that something that we never spoke about in the past, we are now talking about. Because people always had a sense of sovereignty around their own currency, feeling that their currency is about their sovereignty, their nationhood, but people are now thinking beyond the borders of their own nation.”

His sentiments come at a time when cryptocurrencies such as bitcoin have gained popularity in the past few years especially in countries such as South Africa, Kenya, and Nigeria, and both the private and the public sector are waking up to the benefits of cryptocurrencies and their underlying technology.

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Blockchain Technology

How CryptoCribs Could Economically Empower Africans



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Decentralised cryptocurrencies have gained a substantial amount of popularity among investors due to their high-profit potential in the past twelve months. However, the real power of the decentralised economy is that it can empower individuals in many never before seen ways by disintermediating central authorities.

An excellent example of a use case for decentralised digital currencies is the cryptocurrency-powered home sharing platform CryptoCribs, which enables homeowners to rent out spare rooms and apartments in exchange for cryptocurrency.

What is CryptoCribs?

CryptoCribsCryptoCribs combines the peer-to-peer element of the sharing economy with decentralised digital currencies to build the first “purely peer-to-peer electronic short-term rental system allowing rental payments to be sent directly from one party to another without going through financial and reputational intermediaries like Airbnb.”

“The CryptoCribs project has the mission of liberating rental markets, empowering individuals and building a strong community. To achieve this mission, we want to break up the different intermediation layers in a step-by-step process. While CryptoCribs plans to act as an intermediary initially, our intention is to progressively disintermediate ourselves,” the startup states in its whitepaper.

The house sharing platform currently offers several different locations, including listings in South Africa, and there is a review system in place so that hosts and travellers can view each other’s reviews. The platform has all the traits of an Airbnb for cryptocurrency users, which provides the hosts in different countries with a new source of revenue that is not controlled by a company that takes a share of the rental profits.

CryptoCribs’ Potential in Africa

In Africa, renting out spare rooms or apartments on CryptoCribs could become a new way of financially empowering the local population. The fact that CryptoCribs hosts are being in cryptocurrency directly means that no money is lost to the sharing economy platform nor is the value of the payments affected by fluctuations in the local currency. In light of the volatility of certain African currencies, this is a major selling point for choosing CryptoCribs over Airbnb as a host. 

Moreover, the intangible nature of digital currencies means that a government cannot physically remove the wealth of a citizen. This paradigm shift is a monumental step forward in the social contract, providing an additional layer of financial security to individuals. This enables hosts to confidently use bitcoin without the fear that the actions of their government will interfere with their wealth acquisition. 

The Many Benefits of CryptoCribs

Recognition at a Universal Level

Many bitcoin users are travelling the world, which has led to a rising demand for bitcoin-accepting services in the travel industry. CryptoCribs is, therefore, a welcomed addition to cryptocurrency-accepting accommodation.

Moreover, since cryptocurrency is not bound by the exchange rates, interest rates, transaction charges or other charges of any country, it can be used at an international level without experiencing any difficulties. This can potentially save a lot of money for both travellers and businesses.

The Elimination of Fraud

Cryptocurrencies cannot be counterfeited or reversed arbitrarily by the sender as is the case with credit card charge-backs. Africa loses billions from fraud every year, which drastically impacts the economy and hinders growth. However, through the use of cryptocurrencies instead of traditional payment methods, the chance of fraud is greatly reduced to the benefit of both the host and the renter. 


CryptoCribs can financially empower even those without access to bank accounts. There are approximately 2.2 billion individuals with access to the Internet or mobile phones who do not currently have access to a bank account. These people are primed for the use of digital currencies and they could start hosting immediately as they do not require a bank account or a Paypal account like it is the case for Airbnb. 

If you have a spare room or apartments you can rent out, you should consider CryptoCribs as it could provide you with a new source of income where you receive the entirety of the rental income and you alone have control over the payments made in cryptocurrency.

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Bitcoin Remittance Startup BitPesa Launches in Ghana



BitPesa Secures Funding

Nairobi-based bitcoin remittance startup BitPesa has launched in Ghana to continue the growth of its footprint in the West African region. The platform will enable Ghanaians to make low-cost global payments using their local currency, the Cedi.

BitPesa’s services will make it easier for Ghanaians to make GHS payments that will settle in more than ten currencies, including NGN, UGX, and ZAR. This move shows the company’s dedication “to facilitating intra-Africa trade by increasing the ease and speed of doing business in Ghana”.

Launched in Nairobi, Kenya in 2013, BitPesa, is a digital payment and foreign exchange platform that utilises the Bitcoin blockchain to boost the speed of business payments while lowering the transfer cost to and from frontier markets. With its best-in-class products and customer service, BitPesa seeks to significantly reduce the cost of payments from Ghana to other markets such as Nigeria, where it already has operations. Ghana was BitPesa’s “natural choice for expansion” since it is the second largest economy in the West African region after Nigeria.

BitPesa’s CEO, Elizabeth Rossiello, said in a company press release:

“We are constantly looking for ways to promote intra-African trade, so we’re very excited about our services in Ghana.”

“Ghanaians should be allowed to make global payments using their own currency and we are excited to facilitate this. We will continue to improve service offerings, compliance, and value for our new Ghanaian customers,” she added.

BitPesa’s platform makes it possible for businesses to make payments in multiple currencies and has operations in Kenya, Nigeria, Uganda, Senegal, DRC, the UK and Europe. Following the launch, Ghanaian customers will be able to buy and sell bitcoin on the online platform with businesses being able to make payments intra-Africa to Ghanaian mobile accounts. Currently, BitPesa is connected to two mobile networks in Ghana with more services expected to come with time.

The move comes weeks after BitPesa made its acquisition of TransferZero, a leading Madrid-based digital payments company, expanding its footprint in the Caribbean and Latin America markets.

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