Only 19% of bitcoin’s circulating supply is actively being traded on crypto exchanges, according to blockchain analytics firm Chainalysis. Around 60% of its supply is, on the other hand, being “held for long-term investment.”

Reddit has asked the Ethereum community for help in scaling the ERC-20 tokens it has started distributing in the r/Cryptocurrency and r/FortniteBR subreddits, in an attempt to scale the token distribution to its over 400 million users.

Bitcoin mining hardware manufacturer Ebang is looking to go public in the United States via an initial public offering (IPO) in which it plans to raise over $100 million.

Top stories in the Crypto Roundup today:

• Only 19% of Bitcoin’s Current Supply Is Being Traded, Chainalysis Reports
• Reddit Asks Ethereum Community to Help Scale ‘Community Points’ tokens
• Bitcoin Miner Maker Ebang Eyes $106 Million U.S. IPO

At the time of writing, bitcoin (BTC) is trading at $9,287.73 (-1.51%) with a daily Top Tier volume of $2.34 bn. As for ether (ETH), it is trading at $228.37 (-2.13%) with a daily Top Tier volume of $607.78 million. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 3,051.05 (-1.32%).

Only 19% of Bitcoin’s Current Supply Is Being Traded, Chainalysis Reports

Blockchain analytics firm Chainalysis has published a report saying only 3.5 million bitcoins, around 19% of the flagship cryptocurrency’s circulating supply, are used for trading. Per the report, out of the nearly 18.6 million BTC mined as of June 2020, the majority are being held long-term.

The firm found that roughly 60% of bitcoin’s current supply is held by entities that never sold more than 25% of the cryptocurrency they have ever received, and categorized these coins as being “held for long-term investment.”

Some of Bitcoin’s current supply, 20%, has not moved in five years or more, and Chainalysis called these as “lost Bitcoin.” The remaining fraction is used for trading and helps determine the price of the cryptocurrency. Around 340,000 people, throughout 2020, were trading BTC on a weekly basis, it found.

Out of these 340,000 traders, there are retail traders – considered those who deposit bitcoin worth less than $10,000 at a time – and professional traders. Retail transactions account for 96% of transactions made to exchanges, Chainalysis added.

Per Chainalysis, the bitcoin being held for long-term investment could end up being an important source of liquidity in the market.

Reddit Asks Ethereum Community to Help Scale ‘Community Points’ Tokens

Reddit has asked users on the r/Ethereum subreddit, which has over 466,000 subscribers, for ideas to help scale its recently launched Ethereum-based ‘Community Points’ tokens, that are being distributed in the r/Cryptocurrency and r/FortniteBR subreddits.

The Community Points are ERC-20 tokens rewarding users who contribute with quality posts and comments. Reddit is now seemingly looking to roll-out the feature to its over 400 million users, and as such announced “The Great Reddit Scaling Bake-Off.” Its post reads:

“In conjunction with the Ethereum Foundation, Reddit is inviting Ethereum scaling projects to show the community how your scaling solution can be used to bring Community Points to mainnet. Our goal is to find a solution that will support hundreds of thousands of Community Points users on mainnet today, and can eventually scale to all of Reddit.”

The scaling solution Reddit is looking for would still give users full ownership of their tokens. Community members have until July 32 to submit a proof-of-concept demo.

Bitcoin Miner Maker Ebang Eyes $106 Million U.S. IPO

Bitcoin mining hardware manufacturer Ebang International has disclosed more details on its initial public offering (IPO) in the U.S. The China-based firm filed a revised prospectus with the Securities and Exchange Commission (SEC) detailing it selected Nasdaq to list its shares under the symbol “EBON.”

Ebang has also disclosed it’s looking to raise $106 million in the IPO by offering 19.32 million shares between $4.50 and $6.50. It also added an additional underwriter, Prime Number Capital, which will join its other underwriters: AMTD Global Markets Limited and Loop Capital Markets.

In the document, Ebang pointed to additional risk factors, including increased regulatory scrutiny of Chinese firms in the U.S. and bitcoin’s volatile price. The document reads:

“Our results of operations have been and are expected to continue to be significantly impacted by the fluctuation of Bitcoin price, and in particular, significantly and negatively impacted by the sharp Bitcoin price decrease.”

Ebang noted it suffered losses and negative cash flows from its operating activities in the past, and may not achieve or sustain profitability in the future. It had net losses of $11.8 million and $41.1 million in 2018 and 2019, respectively.

This is Ebang’s second IPO attempt, as in June 2018 it tried to go public in Hong Kong, but the listing was never materialized. At the time it was looking to raise up to $1 billion.

Flipside Friday

The Flipside Crypto Disparity Ratio is a tool helping you find out which cryptoassets are under and overvalued. The crypto disparity ratio scores cryptoassets based on market capitalization and FCAS ratings, with a score over 1 showing it’s undervalued, and under 1 showing it’s overvalued.

POA Network (POA), a public sidechain based on the Ethereum protocol that will use Proof-of-Authority and allow organizations to build their own networks in their own validators and allow developers to deploy decentralized applications, tops the undervalued list with a score of 1.68.

XYO, an ERC-20 token used for a decentralized network of devices that anonymously collects geospatial data, comes next with a score of 1.49. It’s followed by the Raiden Network (RDN), an off-chain scaling payment solution to perform ERC20 compliant token transactions, at 1.42.

At the bottom comes Storj (STORJ), a decentralized cloud storage platform that allows anyone to rent their idle hard drive space and earn revenue with it.

On the overvalued side we have the Huobi Token (HT). an ERC-20 token that allows users to receive a discount on fees at the Huobi exchange, among other advantages. Next comes Monacoin, the once-popular cat meme cryptocurrency which has even been used to buy land in 2014, at 0.35.

It’s followed by Crypterium (CRPT), a cryptobank platform that leverages the ETH blockchain to provide an instant processing engine for fiat and crypto-based transactions. Next comes Metal (MTL),  a blockchain-based system utilizing Proof-of-Processed-Payments to identify users, rewarding them for converting legacy fiat currency into cryptocurrency, acting as a bridge to the cryptocurrency world

State of the Crypto by Top Tier Exchange Volume

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