Dear EWMCI Community,
After a brief period of stability, the crypto roller-coaster just keeps going! It seems that geopolitical, macroeconomic, regulatory, and a wild mix of other factors keep randomly influencing markets across the board - from precious metals to stocks and bonds, to cryptocurrencies. The relatively recent introduction of exchange traded funds (ETFs) representing "paper equivalents" of major cryptocurrencies resulted in increasing entanglement between dominant fiat markets (e.g., Wall Street, Dubai, Singapore, London, etc.) and large-caps like Bitcoin, Ethereum, or Litecoin.
There continues to be increased rate of both "rug pulls" and genuine "exchange default" events -- A phenomenon we previously noted in our periodic Ecosystem Updates. These occurrences appear to be associated with "market tops" and in many cases result in "exit scam" activity. Two parallel issues contribute to the general public being vulnerable to asset losses -- [A] The "flight to Bitcoin" where users liquidate various altcoin holdings with a plan to ultimately withdraw and convert the resultant Bitcoin into fiat assets; and [B] The entrance of new, often naive investors into the market, resulting in sudden concentration of liquid assets within various crypto exchanges. When the above factors are combined with general economic challenges around the world, secondary events (e.g., "rug pulls" or "exchange defaults") often follow. As always, please use extreme caution when entrusting any third parties with your funds / assets.
General EWMCI Ecosytem Updates: The past quarter was fairly busy for our teams and very eventful for our Ecosystem. Perhaps most importantly, vast majority of the EWMCI Alliance projects maintained relative stability despite significant market fluctuations during the past several months. We are also please to announce that all of our legacy indices (Gold Index, Silver Index, Bronze Index, EWX-18 Index, and Stock-to-Flow Index) were updated and re-balanced, with some significant changes within and between different capitalization tranches. To actively and effectively support EWMCI Index followers, we continued our work to ensure that there are ample wallet and exchange options available to end-users. In terms of wallet and multi-wallet support, we continue to work on updates and upgrades with our partners at Gemmer, Wally.ID, and Komodo wallets.
After a turbulent first half of 2025, exchange support and relationships have been more stable, with FreiExchange, FreiXLite, XredX, and Komodo Wallet providing the much needed end-user services. Following a cyber attack, the XeggeX exchange has recently announced insolvency. Our team was recommending continued caution regarding XeggeX since January of this year, hopefully helping our followers limit / minimize any losses. It is also important to recognize that Komodo Wallet atomic swaps have now been enabled across various open source iterations of the Komodo Wallet, and the penetration of these open source platforms is increasing. We continue to support Komodo and its open source platform, and greatly appreciate Komodo Team's commitment to ongoing open source development. Our long-term partner FreiExchange, including FreiXLite, continues to be dependable and reliable. We are also growing the number of EWMCI markets and pairs on XredX, with excellent community feedback thus far. Work is ongoing to develop new exchange relationships to ensure that the overall Ecosystem has ample opportunities to grow and develop further.
Index Performance Summary: Most of our tracking indices (Large-cap, Mid-cap, Small-cap, EWX-18, Stock-to-flow, and Draper Index) continue to show recovery following the recent market duldrums. As mentioned above, index re-balancing is now complete for the second half of 2025, with next planned re-balancing in early 2026 (still tenative). More recently, Bitcoin reaching its new highs spilled into broader crypto markets, especially as long-term altcoin holders exhausted their "dump" supplies and new users now entered the intermediate-to-long term altcoin space (on average, HODL-ers tend to hold on to their newly acquired coins for 18-24 months). For the smaller-cap-heavy indices technical bottoms have now been completed and new support levels established, corroborating the above observations. As for Bitcoin "The King" and the broader "Large Cap Index" -- The new highs may indeed indicate that we are looking for a higher range target, possibly with an opportunity to establish a significantly higher, inflation-adjusted support/resistance zone.
The overall relative stability of the Index-based approach is something that our team continues to highlight. Even during the most volatile market swings of the recent past, EWMCI indices continued to offer much lower day-to-day volatility while continuing to generally follow the broader market. This makes the Index-based approach much more suitable for long-term HODL-ers who look more for "sustainable growth" rather than "quick trade" approaches. In terms of fiat and crypto market coupling, this continues to be a significant new trend, with traditional liquidity crunches increasingly resulting in crypto "dumps" to raise short-term capital. As the number of crypto-based exchange trading funds (ETFs) increases, we expect this trend to continue and potentially become even more pronounced.
Data / API Platform: We continue the work on our highly accurate and EWMCI Index specific data / API platform. Our current focus is to increase the number of data sources and to enhance the reliability (e.g., exclusion of spurious data inputs) of aggregated data, with goal of providing the most accurate data for all EWMCI index positions and beyond. Diversification of contributing data streams continues, and will allow us to provide both enhanced accuracy and much needed redundancy and robustness for the end-user. Our price aggregation algorithm ensures that data sources of higher reliability receive greater weight than those considered to be less reliable.
Important Coin Project Updates: The Digitalcoin (DGC) community vote is now completed, with unquestionable majority of participants voting for transition to PoS-based block generation methodology using the most recent Bitcoin codebase. Significant majority of the community also voted in support of the proposed 95% reduction in block rewards for Digitalcoin. Work is now proceeding on "next steps" including the most optimal transition scenario, with community preference for preserving the entire chain history. This will be the priority of the software development team tasked with this important code upgrade.
The Unitus (UIS) transition to primary PoS (featuring supplemental, wallet-based PoW) block validation method is proceeding very well. The ongoing swap-patform-based 1:1 exchange from OLD Unitus to NEW Unitus will be discontinued in the next few months. For users who still have OLD Unitus in their wallets, there is ample time to exchange the old coins for new coins; however, we encourage everyone to complete this process as soon as possible, especially since the old chain UTXOs are no longer tradeable on exchanges. In the very near future, we will also be transitioning all Gemmer and Komodo Wallet users toward transactions strictly limited to the NEW Unitus chain.
Finally, Diminutive Coin (DIMI) community successfully completed transition to a new blockchain. The old-to-new chain swap for user balances is now concluded and implementation of exchange-based transitions will be taking place this quarter. The completion of this important chain upgrade provides DIMI community with much needed code stability, eliminates known exploits associated with the old chain, and provides a sustainable platform for the foreseeable future.
As the EWMCI Ecosystem continues to grow and develop, we will provide the community with ongoing important updates and summaries on periodic basis. For real-time information, please visit our website, join our Discord, and follow our X (Twitter).
Cheers,
S / EWMCI.info
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