In this piece I will expose why I believe more than $3 billion of all cryptoassets’ volume to be fabricated, and how OKex, #1 exchange rated by volume, is the main offender with up to 93% of its volume being nonexistent. I’ll endeavour to prove it by analyzing publicly available data.
What other factors directly influence your portfolio performance? Besides data availability, transformation and analysis, the most important and decisive factor is the role emotions play.
“The best investors are emotionless towards an asset”.
How many times have you heard this? It’s so further from the truth it hurts.
Well, not as much as Phineas Gage got hurt that’s for sure. This gentleman was a factory worker who lived during the 19th century and I will use his case as an example that, the best investors are not the ones who are emotionless, but rather the ones who can actually use emotions in a positive way during the decision-making process.
Our dear Phineas suffered a tragic event that would change his life forever, as one day while he was at work a metal bar pierced through his skull damaging his brain. Although Phineas recovered and was able to regain motor skills, his pre-frontal cortex was destroyed rendering him incapable of making decisions. His behaviour was heavily affected and his personality completely changed. Because his emotional connection to his past experiences was damaged by the accident, he became incapable of making decisions, even the most basic ones.
Antonio Damasio, a renowned Portuguese physiologist who deeply studied Phineas case published quite interesting findings. The one that I find the most important for this article is that emotion and reason are so deeply connected it’s impossible to separate one from the other.
Each decision we make is connected not only to a mental emotion associated to memories, but also to a physical feeling. That’s why we do learn from experience, mostly from mistakes: the worse, the better. If we lose that connection we become incapable of making decisions.
How can we leverage the role of emotion in the decision-making process?
That is the million dollar question isn’t it?
The financial authorities are preparing a plan to allow initial coin offerings (ICOs), digital token-based fundraising rounds, for domestic investors, to advance blockchain-based technologies, according to sources familiar with the issue.
“The financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met,” said a source asking for anonymity as he wasn’t authorized to speak to the media.
The plan, if implemented, will be a major reversal as last September the government banned ICOs, claiming cryptocurrencies were neither money, nor currency or financial products.
Despite this, the administration has yet to implement the ICO rule and hasn’t forced companies to return ICO funds. It also continues to let local investors put money into foreign ICOs and digital currency exchanges operating within the country.
Kang Young-soo, who oversees cryptocurrency trading policies at the Financial Service Commission (FSC), said the country’s top financial policy regulator has yet to decide whether to allow ICOs in Korea for domestic investors and companies.
“There are many speculating about the possibility of allowing ICOs. The FSC has acknowledged a third-party view regarding the issue, but there’s nothing that we can say officially at the moment,” Kang said.
Another source familiar with the country’s tax code said he expects the order banning ICOs would only be reversed after the country fixes the legal groundwork for crypto-trading.
“Various scenarios such as the imposition of value-added tax, a capital gains tax, or both on trade; and the collection of corporate tax from local cryptocurrency exchanges, as well as the initiation of authorized exchanges with licenses are being discussed,” said the source. He added that allowing ICOs should involve local banks, the justice and finance ministries, and the tax agency to create transparency. This will allow the government to track the history of capital inflow into ICOs.
ICOs are used by startups to raise funds with digital currencies which work through blockchain technologies. In Korea, some startups used ICOs as they require little paperwork, letting companies solicit money directly from investors rather than relying on banks or venture-capital firms (VCs).