NOTABLE MOVES  

• U.S. Core Retail Sales m/m at 0.7% vs expected 0.5%. Retail Sales m/m at 0.8% vs expected 0.6%. Philly Fed Manufacturing Index at 12.9 vs expected 20.1. U.S. Treasuries gave up early gains, returning yields to their unchanged marks. The benchmark 10-yr yield finished flat at 3.12%. USDJPY down -0.04%, $113.57.
• Press reports indicated that Italian League economic adviser Borghi is making waves about Italy possibly leaving the eurozone if the Italian League wins a majority in the next election. Euro up 0.12%, $1.1324.
• Brexit secretary Dominic Raab, and several other ministers, resigned a day after UK Prime Minister Theresa May received cabinet approval for her draft withdrawal statement. The resignations put pressure on May’s leadership position and the fate of the Brexit plan in the British Parliament. U.K. Retail Sales m/m at -0.5% vs expected 0.2%.Sterling dropped -1.77%, $1.2766.
• WTI crude rose for the second straight session, adding 0.5% to $56.44/bbl, though is still well-off its October 3 high of $76.90/bbl. Also, the EIA’s weekly crude oil inventory report showed that U.S. crude stockpiles rose by a higher-than-expected 10.3 million barrels last week. USDCAD down -0.50%, $1.3173.
• Aussie Employment Change at 32.8K vs expected 19.9K. Unemployment Rate at 5.0% vs expected 5.1%. Aussie up 0.47%, $0.7271.
• S&P 500 up 1.06%, 2,730.20. Nasdaq up 1.78%, 6,890.45. Nikkei down -0.20%, 21,803.62.
• U.S.-China trade optimism and strength from tech stocks, particularly Apple (AAPL 191.41, +4.61, +2.5%), contributed to the broader market overcoming its morning struggles. More news surrounding U.S-China trade developments helped fuel an afternoon rally. A Financial Times report suggested that China and the U.S. are trying to reach a trade truce ahead of the G-20 meeting at the end of the month. This should not be seen as anything particularly new, though, since similar reports were out earlier in the week. Commerce Secretary Wilbur Ross chimed in, and believes the G-20 meeting will be a ‘big picture’ meeting and he does not expect a deal by the end of the year. Nevertheless, the positive response caught some participants off guard and probably prompted some short-covering action. The trade-sensitive industrials sector finished with gain of 1.3%. Apple showed some resiliency after entering the session with a monthly loss of 14.7%. Morgan Stanley defended the stock, saying that it is currently a buying opportunity; the company also sees a price target of $253/share and is ‘Overweight’ on the stock. Also within the tech space, chipmakers put on a good showing, as the Philadelphia Semiconductor Index gained 3.3%, extending its winning streak to three sessions.  Of note, Warren Buffet’s Berkshire Hathaway (BRK.B 217.38, +1.35, +0.6%) disclosed that it initiated new positions in some financial companies including JPMorgan and also increased its positions in Bank of America and other notable financial companies. In earnings, Dow components Wal-Mart (WMT 99.54, -1.99, -2.0%) and Cisco Systems (CSCO 46.77, +2.44, +5.5%) reported upbeat reports but finished mixed. Wal-Mart beat earnings estimates and raised its 2019 fiscal year guidance, and Cisco beat top and bottom lines estimates. Nvidia (NVDA 168.45, -33.94, -16.77%) plummeted as much as 16% during after-hours trading Thursday after the company missed on revenue due in large part to an inventory overhang for mid-range gaming GPUs.

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

The government of South Korea’s Gyeongbuk province has launched a “Blockchain Special Committee” with the goal of creating a blockchain hub in the region, inviting 40 domestic and foreign experts in the industry to consult on the project. Gyeongbuk province will work with the special committee, composed of domestic and international experts, to preemptively respond and establish strategies, in order to nurture the blockchain industry. The Committee’s establishment is not the region’s first venture into blockchain. This summer, the province’s government announced plans to issue its own local cryptocurrency, dubbed Gyeongbuk Coin, which will reportedly be accepted by merchants across the region.

Major Russian Art Gallery Tretyakov Launches Blockchain-Based Art Patronage Project

The prestigious State Tretyakov Gallery in Moscow, Russia, is launching a blockchain-based art patronage scheme. The project, dubbed “My Tretyakov,” allows individuals or enterprises to make a private donation to contribute to the digitization of an item from the gallery’s collection, thereby become the artwork’s patron. According to a press statement from the gallery – the donation amount is still under discussion. The system randomly selects which storage unit (electronic copy of an object of art) will be considered digitized using this cartridge, and links the name to the object. The connection of the name or company name to the digitized exhibit is fixed using blockchain technology. My Tretyakov initiative represents a new form of public involvement in art.

Spanish Telecoms Operator Partners With IBM to Manage International Calls With Blockchain

IBM and major Spanish telecommunications firm Telefónica have partnered to apply blockchain technology to managing international mobile phone call traffic. The collaboration aims to streamline certain Telefónica business processes and address various challenges in the field, including the reliability and transparency of information registered from different networks when routing international calls. The project will also help Telefónica identify fraudulent activity as well as address issues like dispute resolution, commercial loss due to uncollected revenues, or discrepancies in information. Telefónica plans to use the IBM Blockchain Platform for tracking the certainty and traceability of each international call and related data, such as origin, destination, and duration. The platform will be applied in building a network of peers consisting of operators, service providers, vendors, and other parties. IBM subsequently confirmed the partnership with Telefónica.

  NOTABLE MOVES  

• U.S. CPI m/m inline at 0.3%. Core CPI m/m inline at 0.2%. Japanese Prelim GDP q/q inline at -0.3%. USDJPY down -0.22%, $113.56. The 2-yr yield lost two basis points to 2.86%, and the 10-yr yield lost three basis points to 3.12%.
• Italy stuck to its 2019 budget with a 2.4% deficit target and a growth forecast of 1.5%. The EU Commission is expected to give an update on Italy next Wednesday, Nov 21st. German Prelim GDP q/q at -0.2% vs expected -0.1%. Euro up 0.19%, $1.1312.
• In Brexit news, UK Prime Minister Theresa May announced that her cabinet has approved the draft withdrawal agreement, but that draft is still subject to British Parliament and EU approval. The 585-page draft withdrawal agreement has now been published, alongside a shorter statement setting out what the UK and EU’s future relations will look like. U.K. CPI y/y at 2.4% vs expected 2.5%. PPI Input m/m at 0.8% vs expected 0.6%. Sterling up 0.08%, $1.2984.
• Chinese Fixed Asset Investment ytd/y at 5.7% vs expected 5.5%. Industrial Production y/y at 5.9% vs expected 5.8%. Aussie Wage Price Index q/q inline at 0.6%. Aussie up 0.21%, $0.7233.
• Aussie Wage Price Index q/q inline at 0.6%. Aussie popped in early Asian session on the back of strong numbers. Employment Change at 32.8K vs expected 19.9K. Unemployment Rate at 5.0% vs expected 5.1%. Aussie up 0.21%, $0.7233.
• S&P 500 down -0.76%, 2,701.58. Nasdaq down -0.89%, 6,769.87. Nikkei up 0.16%, 21,846.48.
• Stocks rallied at the open after the October CPI reading showed consumer prices rose 0.3% as expected last month, but soon fell back amid continued Apple (AAPL 186.80, -5.43) weakness and following a regulatory reminder from Congresswoman Maxine Waters. Waters, who is set to take over the House Financial Services Committee this January, vowed that the days of weakening regulations will be coming to an end. Waters’ comments should not be seen as a surprise though, as it was understood this would likely be the case following the midterm election results. Apple dropped -2.8%, extending its monthly losses to -14.7%, after being downgraded to ‘Neutral’ from ‘Buy’ at Guggenheim on Thursday.
• Chip stocks, however, extended Tuesday’s rebound, pushing the Philadelphia Semiconductor Index higher by 0.4%. In earnings, Macy’s (M 33.22, -2.57) fell -7.2% despite beating profit estimates and raising its earnings guidance for its fiscal 2019 year. Cannabis stocks Canopy Growth (CGC 34.30, -4.18, -10.9%) and Tilray (TLRY 102.34, -9.21, -8.3%) also dropped after reporting. Canopy missed revenue estimates, while Tilray beat earnings estimates but its revenue was at the low end of its upside pre-announcement.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

NOTABLE MOVES  

• U.S. Unemployment Claims in line at 214K. In its statement, the FOMC said it expects further gradual rate hikes that are consistent with sustained economic growth, strong labor market conditions, and inflation near its symmetric 2% target over the medium term. The Fed’s statement didn’t derail expectations for another rate hike in December, which would be the fourth hike in 2018. Consequently, the yield on the Fed-sensitive 2-yr Treasury note jumped four basis points to 2.97%, its highest level since June 2008. Also, the benchmark 10-yr yield added two basis points to 3.23%. USDJPY up 0.38%, $113.96.
• German Trade Balance at 17.6B vs expected 18.2B. Euro down -0.51%, $1.1368. The EU convenes on November 23rd to discuss Britain’s exit from the European Union and according to a times political report, an agreement could be made as early as next week. Sterling down -0.46%, $1.3066.
• S&P 500 down -0.25%, 2,806.83. Nasdaq down -0.62%, 7,158.59. Nikkei up 1.82%, 22,486.92.
• The market retreated on Thursday, on the heels of FOMC’s decision as the expectations for yet another hike in December remains intact. The benchmark index traded slightly below its flat line leading up to the Committee’s statement release, and sharply dropped to session lows before recouping some losses. In the latest batch of Q3 earnings reports, lower guidance overshadowed better-than-expected profits for many names. For instance, Perrigo (PRGO 62.88, -12.26, -16.3%), Qualcomm (QCOM 58.05, -5.16, -8.2%), Wynn Resorts (WYNN 99.02, -14.97, -13.1%), Square (SQ 75.23, -7.46, -9.0%), and D.R. Horton (DHI 34.22, -3.37, -9.0%) all beat earnings estimates but barred significant losses after lowering profit or revenue guidance below consensus.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Japan’s Shinsei Bank, Nippon Wealth Form Business Alliance with Blockchain Startup ConsenSys
Japan’s Shinsei Bank has signed a Memorandum of Understanding (MoU) with blockchain startup ConsenSys to widen its exploration of the technology’s applications for finance. The MoU entails a business alliance between Shinsei Bank, Hong Kong-based restricted license bank Nippon Wealth, Singaporean private equity fund Tribay Capital, and ConsenSys. The alliance between the four entities will focus on exploring the use of ConsenSys’ decentralized applications (DApps) to develop new financial products and services, with Nippon Wealth spearheading a study of blockchain infrastructure and protocols for the banking sector. The alliance means that Tribay Capital will become a new shareholder of Nippon, with Shinsei Bank nonetheless remaining its majority shareholder, retaining 50 percent of shareholder rights.

BBVA Puts $150 Million Syndicated Loan on Ethereum Blockchain
Spanish banking giant BBVA has completed a pilot that put a syndicated loan for $150 million on the blockchain.Tthe bank arranged the loan for Red Electrica, Spain’s national electrical grid operator with co-lenders Japan’s Mitsubishi UFJ Financial Group and France’s BNP Paribas. In a traditional syndicated loan process, banks rely on faxes to share complex information, which not only delays the process, but is also expensive. Blockchain is seen as a means to help banks exchange information at near real-time, reducing the loan process from a couple of weeks to a day or two. Cutting out manual processes also slashes operational costs. The BBVA planes to conduct more blockchain pilots for syndicated loans in the future. The bank has explored blockchain tech in the past, as well.

Huobi Opens Office in Russia, Plans Startup Accelerator and Mining Hotels
Huobi Global Senior Director Edward Chen and Andrei Grachev, head of the Russian office, announced the launch date during the Blockchain Life conference in Saint Petersburg this week. The branch will provide 24-hour online support and maintain a call center with Russian-speaking account managers. Huobi, which is currently the third-largest cryptocurrency exchange by daily trading volume, plans to establish an accelerator for blockchain projects. Huobi’s office will also launch an educational program that will focus on cryptocurrency and distributed ledger technologies. The exchange will cooperate with leading Russian universities and other organizations on the initiative. Students will be trained in the specifics of digital asset management and taught about the automated and algorithmic trading services offered by Huobi. The Singapore-based company also intends to participate in the development of so-called mining hotels in Russia. The news about the Russian office comes after Huobi’s recent announcement of plans to expand its operations into new cryptocurrency markets around the world, including Africa, South Asia and the Middle East.

• U.S. Total outstanding consumer credit increased by $11.0 billion in September after increasing an upwardly revised $22.8 billion (from $20.1 billion) in August. The report reflects a deceleration in credit expansion that could contribute to concerns about the U.S. economy hitting/nearing peak growth. U.S. Treasuries finished roughly flat with the 10-yr yield unchanged at 3.21%. Japanese Average Cash Earnings y/y at 1.1% vs expected 1.2%. The G7 currencies had a subdued showing in light of the midterm elections. USDJPY up 0.11%, $113.57.
• German Industrial Production m/m at 0.2% vs expected 0.0%. Euro up 0.05%, $1.1433. Brexit-related headlines kept coming, but the Irish border issue remains unsolved.  Sterling up 0.22%, $1.3127.
• Canadian Ivey PMI at 61.8 vs expected 50.9. WTI crude lost 0.9% to settle at $61.65/bbl, extending its recent decline to nearly 20.0% from its four-year high last month. The Energy Information Administration reported a weekly crude inventory build of 5.8 million barrels last week, marking the seventh consecutive week of stockpile builds. USDCAD down -0.05%, $1.3117.
• RBNZ kept the official cash rate at 1.75% (expected). The central bank expects to keep it at this level into 2020. “No. We are not taking a rate cut off the table,” Orr cited. “I think it would be pointless to do that, to remove an option. What we are saying is we are very data dependent, data-driven around how our projections unfold. The risks to the downside remain,” he said. Despite Orr’s comments, the market is now sees a 54% chance of a rate hike in March 2020 versus 28% prior to today’s statement. N.Z Inflation Expectations q/q at 2.0%. The FX market did not react much to RBNZ as Kiwi was already up 0.62% on the day, at 0.6780 (mainly due to yesterday’s strong employment numbers)
• S&P 500 up 2.12%, 2,813.89. Nasdaq up 3.07%, 7,203.13. Nikkei down -0.28%, 22,085.80.
• Wednesday’s stock market advance follows the conclusion of U.S. congressional midterm elections that produced a split Congress. The prevailing assumption in the market was that a newly divided Congress would preserve market-friendly policies, namely the tax cut and deregulation efforts. Trump also mentioned on Wednesday bipartisan efforts to work with the Democrats in the House on infrastructure, trade, and lowering drug costs. Health care companies rose with the belief that a split Congress would also make it unlikely that it will fully repeal the Affordable Care Act. On a related note, heavily-weighted health care component Humana (HUM 353.98, +22.17) jumped 6.7% after it reported above-consensus earnings and raised its guidance. Apple (AAPL 209.95, +6.18, +3.0%), Microsoft (MSFT 111.96, +4.24, +3.9%), Visa (V 144.78, +3.99, +2.8%), and MasterCard (MA 208.24, +9.09, +4.6%) all provided the sector a much-needed lift.
• Within the consumer discretionary group, Amazon (AMZN 1755.49, +112.68) carried the sector with an impressive gain of 6.9%. Amazon announced Wednesday it has launched Amazon Music for Mexico. Additionally, Amazon announced Alexa’s launch for Mexico. Beginning in mid-November when Echo devices ship, customers will be introduced to new voice features in Spanish with Alexa.
• Of note, pot stocks surged after Attorney General Jeff Sessions resigned his post effective immediately per Trump’s request.  Sessions was an influential critic of legalizing marijuana and served as roadblock to advance the national conversation. Well-known cannabis companies Tilray (TLRY 139.60, +32.74) and Canopy Growth (CGC 46.07, +3.48) rose 30.6% and 8.2%, respectively. Cannabis stocks were already on the rise after several more states voted to legalize recreational or medical marijuana. Michigan became the 10th state to legalize its recreational use, and Utah and Missouri passed initiatives to join 31 other states that already legalize its medical use.

Notable Moves

• U.S. JOLTS Job Openings at 7.01M vs expected 7.09M. Japanese Household Spending y/y at -1.6% vs expected 1.6%. U.S. Treasury yields inched higher with the 2-yr yield adding two basis points to 2.92% and the 10-yr yield increasing one basis point to 3.21%. In midterm elections, results will not be made clear until the early hours (EST), most polls show the Democrats regaining control of the House, while Republicans are expected to retain majority control of the Senate. USDJPY up 0.13%, $113.34.
• German Final Services PMI at 54.7 vs expected 53.6. E.U. Final Services PMI at 53.7 vs expected 53.3. Euro up 0.30%, $1.1441. In Brexit, the Times reported that the Union is preparing to offer an “independent mechanism” which allows Britain to end a temporary customs arrangement with the bloc. While not a final solution, it will be enough to break the stalemate in negotiations, and grant a deal split by March next year. Sterling up 0.55%, $1.3114.
• RBA shrugs off falling house prices, weak inflation to keep rates on hold at 1.5% (expected). On the flip side of weak inflation and falling house prices, the jobs market remains strong with the unemployment rate falling to 5%, the lowest level since early 2012, and the economy is growing in line with the RBA’s forecasts. The RBA retained an upbeat stance in its post decision statement noting: “Forecasts for economic growth in 2018 and 2019 have been revised up a little.” Aussie up 0.44%, $0.7243.
• N.Z. Employment Change q/q at 1.1% vs expected 0.5%. Unemployment Rate at 3.9% vs expected 4.5%. The fall was completely unexpected by economists, who had generally been forecasting a figure of about 4.5% and inevitably there will be questions as to whether this is a ‘rogue’ result, though Stats NZ has immediately defended the veracity of the data, saying they are “confident” of the result and by stating that large changes in the rate – both up and down – have occurred before, while labour market figures tend to lag other economic indicators. The number was particularly impressive because the participation rate rose 0.2% QoQ to 71.1 percent in the September quarter. Kiwi up 1.17%, $0.6740..
• S&P 500 up 0.63%, 2,755.45. Nasdaq up 0.75%, 6,988.85. Nikkei up 1.14%, 22,147.75.
• In earnings, results were mostly positive with CVS (CVS 77.90, +4.21) climbing 5.7% after it reported above-consensus profits. Eli Lilly (LLY 105.90, -4.24) also beat earnings estimates but lost -3.9%, while Booking Holdings (BKNG 1949.46, +78.34) gained 4.2% despite missing earnings estimates. Booking’s results were above its prior guidance, though. Health care company Mylan N.V. (MYL 36.43, +5.06) after it surged 16.1% after it reported better-than-expected earnings.
• WTI crude dropped -1.5% to settle at $62.19/bbl after Trump granted temporary waivers on Monday to eight countries that import oil from Iran. The decision fueled an already weakening oil market that has seen crude prices decline nearly -20.0% from its recent four-year high in October. Despite the drop in crude, the oil-sensitive energy sector ticked higher by 0.3%, although it was down as much as -0.8% intraday.

BLOCKCHAIN & CRYPTOCURRENCY NEWS

After ‘Negligible’ Mining-Related Sales, AMD Launches 8 New ‘Blockchain Compute Solutions’

AMD, a California-based semiconductor manufacturer, has partnered with seven major tech companies to produce eight new cryptocurrency mining rigs. the firm has partnered with Sapphire, ASROCK, ASUS, MSI, Biostar, TUL and Rajintek to issue eight different rigs boasting “Ultimate stability,” “24/7 performance” and “Enterprise-level quality.” The price for the equipment has not yet been specified at press time. According to AMD’s notice, partnership will bring new blockchain compute solutions to the market, designed to meet the various aspirations of “innovative blockchain platforms.” The move comes just a week after AMD released its third quarter 2018 financial report, where the company stated that the “blockchain-related GPU sales in the third quarter were negligible.

Deloitte Partners With Startup for Gov’t-Level Blockchain Identity Management

“Big Four” accounting firm Deloitte has partnered with identity management company Attest Inc. to develop a blockchain-based digital identity system. The collaboration will purportedly develop a digital identity offering for government-compliant identifiers that can be used by Deloitte’s clients based on Attest’s existing products. The first product, Attest Wallet, is a cryptographically secured identity storage like a cryptocurrency wallet and it will reportedly enable users to store digital versions of government and business IDs in one place and control access to stored information. The second solution is called Attest Enterprise and comprises two application programming interfaces (APIs), which allow users to verify their identity, authorize third parties and provide consent to others to manage their data on their behalf.

Thai Revenue Department to Track Tax Payments Using Blockchain

The Thai Revenue Department has revealed its plans to track tax payments using blockchain and maсhine learning and the blockchain will be used to verify the validity of taxes paid and to speed up the tax refund process. Machine learning, in its turn, will help reveal tax fraud and create more transparency. Ekniti Nitithanprapas, the Revenue Department’s director-general who has also been International Economic Advisor of Fiscal Policy Office for the country’s Ministry of Finance since 2015, did not reveal when exactly the Department’s experiment with blockchain was going to start or which particular solutions it would use. Allegedly, blockchain feasibility studies would refer to processing digital IDs, IP registration management, and security, along with smart contracts.

NOTABLE MOVES  

• U.S. Average Hourly Earnings m/m inline at 0.2%. Non-Farm Employment Change at 250K vs expected 194K. Unemployment Rate inline at 3.7%.The strong jobs report validated labor market trends that will keep the Fed on a tightening path. The CME FedWatch Tool indicated a 80.7% chance of another Fed rate hike in December, up from a 74.5% chance the previous day.  The Fed-sensitive 2-yr yield and benchmark 10-yr yield spiked seven basis points each to 2.91% and 3.21%. USDJPY up 0.43%, $113.20.
• German Final Manufacturing PMI at 52.2 vs expected 52.3. E.U. Final Manufacturing PMI at 52.0 vs expected 52.1. Euro down -0.19%, $1.1387. U.K. Construction PMI at 53.2 vs expected 52.0. Sterling down -0.29%, $1.2973.
• Canadian Employment Change at 11.2K vs expected 12.7K. Unemployment Rate at 5.8% vs expected 5.9%. Trade Balance at -0.4B vs expected 0.2B. WTI crude extended its recent downward trend, losing 0.9% to $63.20/bbl and reaching its lowest level since April.USDCAD up 0.17%, $1.3109.
• Aussie Retail Sales m/m at 0.2% vs expected 0.3%. Aussie down -0.10%, $0.7199.
• S&P 500 down -0.63%, 2,723.06. Nasdaq down -1.47%, 6,965.29. Nikkei up 2.56%, 22,243.66.
• Stocks fell on Friday following conflicting U.S.-China trade reports and softer-than-expected sales guidance from Apple (AAPL 207.48, -14.74, -6.6%). Futures rallied overnight on a Bloomberg report indicating Trump asked his cabinet to draft a trade deal, but stocks eventually fell into negative territory after White House officials denied the report. Director of the United States National Economic Council Larry Kudlow confirmed in a CNBC interview that the cabinet was not asked by Trump to draw up a trade plan for China. Later, as stocks traded at session lows, Trump reiterated his belief to reporters that the U.S. will reach a trade deal with China. This led stocks to cut their losses in late afternoon trading.
• In earnings, Apple raised some red flags after forecasting weaker-than-expected sales for the holiday quarter and announcing it will no longer provide unit-sales data for the iPhone, iPad, and Mac moving forward. The company did beat both top and bottom line estimates, EPS of $2.91 vs. $2.78 expected and revenues of $62.9 billion vs $61.46 billion expected. Exxon Mobil (XOM 81.95, +1.28, +1.6%) and Chevron (CVX 114.73, +3.56, +3.2%) rose after both reported above-consensus earnings.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Lawyer Invests $300 Million to Build Crypto City in the Nevada Desert
On Thursday, consumer protection lawyer Jeffrey Berns revealed plans to build a crypto city in the desert, claiming to have invested $300 million. He is the owner and CEO of Blockchains LLC, a company that bought more than 67,000 acres of land in northern Nevada for $170 million earlier this year. The comlex is meant to be a model for running a smart city with a decentralized blockchain infrastructure powering all interactions. The planned city will include residential units for thousands of people to live in, alongside shops for commerce. The area will also host an esports arena and a studio for creating music, movies and games. The company has also signed a Memorandum of Understanding with Nevada’s electricity public utility, NV Energy, agreeing to work together on energy projects powered by blockchain technology.

Israeli Projects Raised Over $600 Million via ICOs as of Q3 2018
According to report by cryptocurrency analytics firm One Alpha released Nov. 2., Israel-based projects have raised over $600 million through Initial Coin Offerings (ICOs) as of the third quarter (Q3) of 2018. Per the research, 140 blockchain-focused companies in Israel have attracted $1.3 billion in investment, wherein more than 60 percent of companies and 88 percent of funds are ICO-related. From Q1– Q3 2018, Israeli startups raised $606 million through ICOs, wherein the largest number of ICOs took place during Q2, and Q1 was the most profitable, with $315 million raised through crypto-asset offerings. The largest ICOs in 2018 include EOS ($4.2 billion), Telegram ($1.7 billion), TaTaTu ($575 million), Dragon ($420 million), and tZero ($328 million). Per the report, ICOs constitute less than 10 percent of the global venture capital funding volume.

Lack of Diversity in Ethereum Smart Contracts Pose Risks to Whole Ecosystem
A lack of diversity of Ethereum (ETH) smart contracts poses a threat to Ethereum blockchain ecosystem, according to research by a group of analysts from Northeastern University and the University of Maryland released on Oct. 31. The paper, entitled “Analyzing Ethereum’s Contract Topology,” claims that most Ethereum smart contracts are “direct- or near-copies of other contracts,” which represents a potential risk if a copied smart contract contains a vulnerable or a buggy code. To date, Ethereum smart contracts are “three times more likely to be created by other contracts” than by users. Considering the low diversity of smart contracts on Ethereum as a potential risk to its whole blockchain ecosystem, the researchers mentioned that Ethereum has become a subject of “high-profile bugs” several times, resulting in over $170 million worth of cryptocurrency being frozen. Multiple implementations of “core contract functionality” on Ethereum would eventually provide “greater defense-in-depth to Ethereum.”