Bitshares smartcoins and cryptogeddon

Yep, yep! Lets have a look at the smartcoins while cryptogeddon plays out. For those unfamiliar: smartcoins are fixed value assets traded on the Bitshares exchange. They can be anything the issuer like them to be, but the two by far most popular mimics US dollars and Chinese yuan.

And it looks like the crypto masacre has hit them with a hammer! Not really. The market capitalization has slowed down considerably. And probably the reason is weary investors that want to see the bottom in bts before entering new margin contracts. Understandable. There has also been huge margin calls. So up the collateral when entering short positions. Personally I keep enough liquid funds to exit the positions if needed.

As usual, I like to look at market capitalization since it has more relevance to the bts supply:

BitCNY

BitCNY is at approx 66 million usd, down from 80.5 millions last week.

bitUSD

BitUSD is at 26 million usd compared to 27 millions last week

what to make of it

I read in one of the forums today that the Chinese flee the market this time of year. They do it to give money as gifts for their new year celebration. It certainly is a good explanation in the drop seen in yuan. And in bitcoin for that matter. I'm not 100% sure if it would have such a dramatic impact as we see now.

Personally I think it will be over pretty soon and the demand for smartcoins increase again. They are a godsend when everything else is in freefall.

Play safe and don't margin with little collateral!

note:

All numbers and graphs are from coinmarketcap. They might differ from other sources.