THE

crypto
MAGAZINE
nurse
VOL. 5
THE BITCOIN CASH DRAMA
AKA THE CRYPTO HASHWAR
THE CRYPTO MARKETS CYCLE
THE MAIN REASON WHY
BITCOIN DUMPED IN 2018
FUNDAMENTAL ANALYSIS:
ZILLIQA (ZIL)
 cryptomedics.IO

tent s
con

intro
THE BITCOIN CASH DRAMA
AKA THE CRYPTO HASHWAR
THE CRYPTO MARKETS
CYCLE
THE MAIN REASON WHY
BITCON DUMPED IN 2018
FUNDAMENTAL ANALYSIS:
ZILLIQA (ZIL)
OUTRO

intro
Welcome to the 5th edition of
our “Crypto Nurse Magazine”.
Unfortunately, the whole year
of 2018 has been very
bearish for the crypto
community. It was bound to
happen and you had known it
beforehand if you are
experienced in investing. The
bears totally took over the
market, shorting everything
with leverage. But even such
a bloodbath can be positive
as it was a perfect time to
learn how to use market to
your advantage and grow
your Bitcoin portfolio. We
hope we have taught you how
to do that in our premium
groups.
In today’s episode you will
find our take on why Bitcoin
dumped in 2019, a nice write
up on Zilliqa (which is fact is
another Fundamental
Analysis after a few months),
market cycle article and our
take on the recent HashWar.
When it comes to the market
sentiment, we are still in a
bearish territory but there are
some indicators that promise
a bright future for the whole
crypto industry. The decision
on Bakkt may be postponed
for another indefinite period
of time. Yes, this potential
Bakkt approval may bring
some big money into the
crypto in the long run, and
especially bring some futures
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
cryptomedics.IO
by damian, jonny, trajan and robin
backed in real Bitcoin (read
our magazine to know why it’s
important).
Times have changed since
December 2017 and Bitcoin is
now being played by the big
boys. The last thing you
wanna do is to head your
Bitcoin over to them. So, are
you man enough to handle
your financial future by
yourself or do you wanna
someone handle it for
yourself again. If you like the
latter, just go bank to the
banks and never come back.
This is a good time to
accumulate your favourite alt
coins (head to CM ELITE for
more info on them gems) and
grow your Bitcoin position.
Remember, whatever you do,
grow your BTC. One day, you
will understand.
Stay tuned and read
carefully!
Your CryptoMedics team
3
 CRYPTO
E
TH SHWAR
HA
*Disclaimer this is not
financial advice, we think
bitcoin cash could be a scam,
however, there is a potential
for gains with Bitcoin SV
(BSV)*
Bitcoin Cash emerged on
August 1, 2017 after
departing from Bitcoin’s
(BTC) original blockchain via
a hard fork.
The separation happened in
an attempt to manage BTC’s
scalability problem. A part of
the Bitcoin community, lead
by Roger Ver, rallied for
increasing Bitcoin’s block
size. Specifically, they
wanted to see Bitcoin thrive
as a transactional currency,
not an investment asset,
citing Satoshi Nakamoto’s
whitepaper and its parts
about anonymous transac-
tions. After meeting resist-
ance from the rest of the
community, a hard fork
turned out to be the only
option for BCH to be
created.
Twice a year, the BCH
network performs hard forks
as part of scheduled
protocol upgrades. The
latest hard fork, scheduled
for Nov. 15, was disrupted
by a competing proposal
that was not compatible with
the original roadmap. As a
result, BCH community was
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
split into three fractions:
Bitcoin ABC, Bitcoin Unlimit-
ed, and Bitcoin SV.
Bitcoin ABC (Adjustable
Blocksize Cap) represents
the “conservative wing” party
which aims to preserve
Bitcoin Cash from radical
changes. It is lead by Roger
Ver, among others, and has
strong supporters repre-
sented by Bitmain, as well as
major exchanges Binance,
Coinbase, and others.
Their wing believes that the
basic structure of BCH is
“sound,” and “does not need
any radical change.” Never-
theless, Bitcoin ABC’s
roadmap leaves some room
for further development of
the network and minimizing
transactions costs, which
seems to be its main priority.
Bitcoin SV (Satoshi’s Vision),
on the other hand, was
founded on August 16 —
not long before the fateful
hard fork — by a blockchain
development firm affiliated
with Craig S. Wright, who has
previously declared himself
as Satoshi Nakamoto. It is
supported by niche news
outlets like CoinGeek,
CalvinAyre and Bitcoin.org.
The “reformers” attempt to
restore “the original Satoshi
protocol” by changing the
THE BITCOIN CASH DRAMA
current BCH structure.
Specifically, that would
involve entirely overwriting
the network scripts of
Bitcoin ABC and increasing
the block size of BCH from
32MB to a maximum of
128MB to increase network
capacity and scale.
There is also a “neutral wing”
represented by Bitcoin
Unlimited, whose leaders
have proposed a compro-
mise solution called “Bitcoin
Unlimited’s strategy for the
November 2018 hard fork.”
Essentially, that proposition
suggested the ability to
change both Bitcoin ABC
and Bitcoin SV, thus empow-
ering miners with their vote
during the hard fork.
From November 15 to 26
the Bitcoin Cash network
underwent a hash war.
On November 15, miners
backing both implementa-
tions started the fork
process. As a result, at
approximately 1:00 pm EST
the first ABC block was
found by the mining pool
Bitcoin.com at block height
556767. Several minutes
later, at 1:22 pm EST, SV
miners processed block
556767 on a separate chain.
Thus, the BCH blockchain
was split into two block-
chains, BCH ABC and BCH
cryptomedics.IO
SV respectively.
To assert BCH ABC’s
dominance, its ally Jihan Wu,
co-founder of Bitmain,
allegedly mobilized some of
his mining force. Roger Ver’s
mining pool Bitcoin.com also
reportedly announced that it
will be redirecting hash
power from BTC to BCH
ABC, albeit only for one day.
In response, Craig Wright of
Bitcoin SV argued that only
continuous mining would
determine the winner.
“Continuous competition
until one dies as we do not
stop,” he announced on
Twitter. BCH’s overall
hashrate has risen from 9.54
percent to 15.43 percent
over November 10 —
November 17 period, which
covers the major part of the
hard fork battle. Conse-
quently, BTC’s hashrate
decreased seven percent
during those days, falling
from 90.46 percent to 84.57
percent. That illustrates that
indeed, a considerable
amount of mining power
had been shifted from BTC
to BCH during the peak time
of the conflict. That in turn
could have affected BTC
price, as per Wright’s
threatening comment
mentioned above, and
hence the overall crypto
market.
4
 CRYPTO
E
TH SHWAR
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BSV increased the block size
from 64 MB to 128 MB.
Supporters, including Calvin
Ayre, the founder of
CoinGeek, and Craig Wright
from nChain, said it was the
only solution for creating
scalable payments that
remain on the network –
‘on-chain’. Originally a
proposal for Bitcoin Cash,
not everyone agreed with
SV. Most notably, Roger Ver,
from Bitcoin.com, and
Bitmain’s Jihan Wu,
proposed their own rival
implementation, known as
Bitcoin ABC. When the hard
fork happened, ABC, which
had a larger share of the
hashing power, became the
preferred implementation.
Within a week, most
exchanges and data
aggregators had accepted
ABC as Bitcoin Cash. But
followers of SV stayed on
their own network. Bitcoin
SV became its own
independent blockchain
network, currently valued at
over $1.7bn.(CryptoBriefing)
The original Bitcoin Cash
was created in response to
slow transaction times and
high fees affecting Bitcoin.
Various solutions had been
proposed, but without
consensus across Bitcoin
mining pools and exchanges,
a group largely composed of
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
Chinese Bitcoin miners and
spearheaded by ex-Face-
book developer Amaury
Sechet and long-term
Bitcoin supporter Roger Ver
decided to break away and
form their own version of
Bitcoin. In the months
following the split, both
Bitcoin (now referred to by
some Bitcoin Cash support-
ers as “Bitcoin Core”) and
Bitcoin Cash grew exponen-
tially in value. Bitcoin hit an
all-time high just shy of
$20,000 on December 17,
while Bitcoin Cash soared
briefly above $4000 on
December 21. As Bitcoin
Cash cloned the Bitcoin
blockchain up to the point of
its creation, Bitcoin holders
held both cryptocurrencies
on a one-to-one basis.
Those who held Bitcoin prior
to the hard fork thus
benefited from two massive-
ly appreciating crypto assets.
Other Bitcoin offshoots
followed, most notably
Bitcoin Gold, but these have
had a far lesser impact than
Bitcoin Cash. Bitcoin Gold
peaked at $474 on Decem-
ber 21, coinciding with
Bitcoin Cash’s all-time high.
Bitcoin Gold has virtually
flatlined since the summer
of 2018, with a value
between $20 and $30.
The Bitcoin Cash civil war
pits two camps against each
THE BITCOIN CASH DRAMA
other: Bitcoin Cash ABC, led
by original proponent Roger
Ver and others including
Bitmain co-founder Jihan
Wu; and Bitcoin Cash
Satoshi Vision (SV), led by
Craig Wright. The “Satoshi
Vision” tag refers to Wright’s
claim that he is Satoshi
Nakamoto, the mysterious
creator of the original
Bitcoin. Wright’s many
detractors have taken to
calling him “Faketoshi” in
response to this.
Bitcoin Cash increased
Bitcoin’s block limit to 32MB,
with consensus-drive yearly
forks built into the protocol.
Just as Bitcoin Cash originat-
ed as a contentious update
to Bitcoin, SV began as a
controversial proposal that
would push Bitcoin Cash’s
block size to 128MB. SV also
aims to make it easier to
implement the type of smart
contracts pioneered by
Ethereum.
Bitcoin Cash ABC was quickly
declared the winner by
many observers, recording
higher transaction through-
put and trading at around 4x
Bitcoin Cash SV’s value.
As for exchanges, a raft of
major exchanges have
anointed ABC with Bitcoin
Cash’s BCH ticker. According
to a post on the /r/bch
subreddit, exchanges
cryptomedics.IO
referring to Bitcoin Cash
ABC as BCH include
Coinbase, Huobi, Kraken,
Bittrex, and a majority of
Korea’s largest cryptocurren-
cy exchanges. Binance and
Poloniex have taken a more
cautious stance, launching
BCHABC and BCHSV trading
pairs in the wake of the split.
By October 2019, Wright
claims the new Bitcoin Cash
will be capable of processing
10,000 transactions per
second.
The results of the hash war
was BTC fell from the 6300
levels to the 4400 levels and
at one point dipping below
4000 USD. XRP overtook
ETH as the #2 currency in
terms of marketcap.
Powerful mining pools
connected to Roger Ver and
Jihan Wu have diverted hash
power from Bitcoin to rally in
defense of Bitcoin Cash ABC.
Wu predicted this would
have catastrophic
short-term consequences
for Bitcoin’s US Dollar value.
After reaching a new ATH
December in 2017, it was
inevitable that BTC would be
on a slow decline and that
2.9-3k was the bottom.
The hash wars just acceler-
ated the process. It has
caused the bear market
afflicting all cryptocurrencies
to grow even deeper.
5
 CRYPTO cryptomedics.IO

E
TH SHWAR
HA THE BITCOIN CASH DRAMA

The Hash Wars have proven

that the market was on a
slow decline. We are now
closer to the end of the bear
market than earlier thought
and thanks to the hash wars.

However, we think that BSV

will be strongly promoted in
2019 as the “real Bitcoin”
using the “real and fast
crypto used as a currency
with use case”. BSV has real
strong support and real
financial backing, therefore,
it is one of the most interest-
ing coins to watch in 2019.

We will keep you updated

whenever we find out
something of value.

The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO 6

 cryptomedics.IO

CYCLE
THE the crypto markets cycle

Investing in financial markets

can be an emotional
roller-coaster and the bitcoin
market is no exception. When
it comes to investment,
human emotions tend to
oscillate between two
extremes – fear and greed –
and the constant balancing
act between the two creates a
cycle of market emotions.

For years, traders and

investors alike have studied
the cycle of market emotions
with the help of a chart
known as the “Wall Street
Cheat Sheet.”

Karen Bennett, writer at

cheatsheet.com, has the
created the amazing chart (on
the right) showing the
psychology of a market cycle.
It describes the most
common emotions people
experience as the market
fluctuates. These human
emotions drive our financial
markets much more than the
market fundamentals.

The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO 7

 cryptomedics.IO

CYCLE
THE the crypto markets cycle

Let’s talk about those
phases in details
Stage 1: Hope (or shall we
say” A new hope”)
‘Hope’ is the first sign of
recovery after “the serious
disbelief” stage. The market
is showing positive signals
for a new bull run. However,
investors are still careful.
Small amounts of money are
being invested.
Stage 2: Optimism
Optimism defines the
second stage where prices
are rising as new capital is
being invested. This stage is
reached when the market
has been in a sustained
uptrend for many months.
The market has a positive
outlook, and therefore many
investors are comfortable
investing money at this
stage.
Stage 3: Belief
As time goes by, the
optimism turns into belief.
This stage of ‘belief’ is
defined as one of the first
signs of a bull market.
Investors seek new
opportunities in the market.
Stage 4: Thrill
Searching for alternative
investment options can be a
good idea if you know what
you are doing. People easily
get caught up in feeling
thrilled as they select
random projects because
they believe nothing can go
wrong. Everything is running
up.
It is important to keep track
of your excitement level as
being overexcited is a clear
sign for closing a position.
Stage 5: Euphoria
The end of a huge run-up is
defined by euphoria. Human
emotions are taking over,
nothing can stop us now, it’s
all puppies and sunshine.
There is only one direction –
up. In this phase of the
bull-run, the “stupid money”
jumps onboard the train,
this kind of money is the first
to leave. At this stage, expect
the press to report about
the bull market, and you get
the “meet the new young
millionaires” articles. At this
stage, the smart money is
taking profit throughout the
parabolic movement.
Stage 6: Complacency
At this stage, the bull-run is
stagnating as people’s lofty
expectations are not met.
The first signs of a reversing
market start to pop up. This
is a very dangerous stage as
people think the
complacency stage is just a
short break before the
bull-run continues. Many
investors are ill-prepared for
the upcoming market
reversal.
Stage 7: Anxiety
Finally, people become
aware that this bull-run can’t
go on forever. They see the
market is reversing, losing
value and money. The fear
of losing lets traders delay
the realization of a loss,
which then turns into much
greater losses.
Stage 8: Denial
However, the value of your
investments continue to
drop, and many investors
refuse to sell hoping for an
even bigger correction
upwards. Investors act
defensively as they are
convinced they have
invested their money wisely.
However, generally, almost
no coin is able to come out
scot-free. When there is rain
everyone gets wet.
Stage 9: Panic
The market continues to
decline as a bear market has
become the new reality.
Investors try to save their
funds by desperately selling
their investments, as they
are afraid to lose everything.
Often we see a major sell-off
happening at the panic
stage.
Stage 10: Depression
People lose all hope and
their belief in the existing
market conditions. The
market is at its lowest point
in the current cycle (as will
be noticed afterward). This is
where stabilization and
consolidation start building
again. This stage can take a
very long time.

In general - These 10 stages repeat over time and define a market cycle. Not every market cycle will follow this exact chart and
the exact time it takes. However, it should give you some valuable insights into the psychology of market cycles. All markets go
through cycles over the short-term. The duration and amplitude of these cycles are partially defined by risk (which is very high for
the crypto market). However, market cycles are hard to predict. But, we know that markets will not continue up indefinitely or fall
to zero (in legitimate markets). In the past, they have always “reverted to the mean.”

The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO 8


CYCLE
THE
Where are we now?
Since December 2017, the
bitcoin market has arguably
gone through “complacency,”
“anxiety”, “denial and ”panic”.
In this interpretation, the
denial stage, it could be
argued, lasted for five months
as BTC’s repeated support of
$5800-6000 offered hope
that the broader market and
altcoins with strong
fundamentals would recover
lost ground before the
year-end.
Those hopes, however, were
shattered as BTC nosedived
below $6,000 on Nov. 14,
pushing the bitcoin market
into the “panic” stage, causing
investors to look for an exit
with no price floor in sight.
The price of bitcoin has since
fallen nearly 50 percent from
the $6,000 mark, trading at
an average price of $3,327
according to CoinDesk data at
press time. More importantly,
trading volumes jumped
more than 30 percent
month-on-month in
November. That high-volume
sell-off likely indicates many
weaker hands have left the
market.
The argument for capitulation
not having set in yet is that it
is usually a single extreme
selling event, short in
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
duration but backed by a
surge in sell volume and
subsequent buy volume.
As recent as Nov. 1, bitcoin
suffered just that and it
seems panic is still the most
likely candidate for bitcoin’s
current stage in its market
cycle, at least until a break
below the psychological price
level of $3,000 incites
capitulation. However, there
was a healthy rebound for the
market while the whole CMC
went to approx. 135 bln USD
with Bitcoin reaching 4100
USD on some exchanges.
What’s next?
The result of capitulation is a
lengthy period of sideways
price action and misery felt by
investors.
So this leaves us studying the
market cycle after recent
violent price drops, searching
for visual cues of a
“bottoming out” of the current Like billionaire investor
bear trend.
And by having examined the
different cycles it’s safe to
assume bitcoin is close, but
not quite there.
The first stage after
capitulation is ‘anger,’ when
investors look for some
reason for the horrific losses
they’ve just experienced.
Finally, reality sets in for
the crypto markets cycle
investors who then shift from
feeling anger to “depression”
in regards to the financial
state they are left in and this
is when the bottom hits.
When all hope in the market
is lost in the eyes of the
public, the market quietly
starts to pick up a bid. At this
stage, investors have been
emotionally battered to the
extent they will not believe
any rally from here on out can
be sustainable.
Although it may be hard to
grasp, this point of what
seems like utter disaster can
be seen as the point of
maximum financial
opportunity and minimum
risk. With all the sellers now
out of the market,
accumulation at basement
prices can begin, which
eventually provides the
energy for the start of the
next market cycle.
Warren Buffett famously said,
be “fearful when others are
greedy and greedy when
others are fearful.”
Bottom Line
While crypto bears are still
harping the demise of Bitcoin,
this comparison reveals that
the cryptocurrency is in good
shape. Bitcoin appears to
have already hovered around
cryptomedics.IO
a bottom and things are
looking rosy even after
November selloff. Yet, we
would bet that there is still
another dump incoming - that
would drive us below 3k area
for Bitcoin and above 50 bln
CMC for the whole market.
That would be the real
bottom which would be
followed by anger and a
longer period of
consolidation. Especially, with
rumours of another Bakkt
delay.
These are key steps to
understand market cycles:
• Market cycles are a natural
thing, accept it.
• Cut out emotions as they
can become your worst
enemy.
• Look for both positive and
negative catalysts that can
trigger a new phase.
• It’s hard to pinpoint exact
beginning and end points.
• Market cycles help analysts
make better decisions.
• Buy low, sell high. As simple
as that.
That would be all for today,
folks.
This article was based on online sources:
Wikipedia
Investopedia
www.cheatsheat.com
https://hacked.com/bitcoin-update-2018-a
nd-2014-bear-market-comparison/
https://www.coindesk.com/panic-mode-wh
at-a-wall-street-chart-tells-us-about-bitcoin
s-price
https://cryptopotato.com/what-are-crypto-
market-cycles/
9

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People are looking to
blame someone when
they lose money….
Sometimes they are right,
sometimes they are not.
This is nothing new. Feel free
to read about the Great
Depression when you get a
chance. A lot of people start
pointing fingers when they
find themselves reduced to
the next economic class
below, but they are
extremely reserved when
they move in the other
direction. This is normal
human psychology. Are you
actually considering the
validity of the conspiracy
that Wall Street is packed
with a bunch of evil bankers
trying to undermine the
system. Is there anything
valid to this theory? Let’s find
out.
Since Bitcoin began trading
actively, it has plunged by
70% or more on four
separate occasions. Each
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
time, people wrote its
obituary. And each time,
Bitcoin rose from the dead,
rising by an average of
6,300% from low to peak.
Now, Bitcoin has declined by
more than 80% again,
setting the stage for another
major price rise likely to
begin in 2019 to the scene.
However, there is one
important difference this
time.
The futures market
Let’s talk about “paper
Bitcoins”. Wait, what? Aren’t
Bitcoin only present in the
blockchain and you can’t
have them in a printed
form? Well, you are right.
The notion of “paper
Bitcoins” is something
coined up for the sake of
argument.
“Paper Bitcoins” are
becoming increasingly
popular among institutional
investors, and they have the
potential to ruin the Bitcoin
the main reason why bitcoin
dumped in 2018
market (and they almost
have already).
They are almost equivalent
to printing Bitcoin, and
perhaps the best example of
"paper Bitcoins” are the
Bitcoin futures on CME and
CBoE in Chicago. Billions of
USD is flowing through the
Chicago Bitcoin futures
markets, and these are all
backed by cash and settled
for cash, with no actual
Bitcoins backing them. That
is very important! Yet, any
money invested into these
Bitcoin futures is diverted
away from the spot market
(the exchanges), and
therefore reduces Bitcoin’s
spot demand and price long
term. Furthermore, “paper
Bitcoins" sort of “inflate”
Bitcoin’s supply above 21
million coins, which is
obviously quite bad for
Bitcoin’s price. Here is lesson
number one from
economics: inflation is
always bad for the money
spending power and is
cryptomedics.IO
instigated only by banks for
their financial system that
was created long time ago
(and constantly perfected to
their advantage - if you want
to know more, educate
yourself about Fractional
Reserve Banking and how
banks make money out of
thin air).
Having done research, we
realised without any doubt
that CME has caused the
Bitcoin bear market of 2018.
The launch of Bitcoin
Futures on CME on 17
December 2017 coincided
exactly with the end of the
rally and the beginning of
the crash. The opening price
on CME was USD 20,650,
and by the end of that same
day Bitcoin was at USD
19,055. The bottom line is -
17th December 2017 was
the day where the Bitcoin
market went from positive to
negative.
10

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CryptoMedics warned
about this - we said this
was the day that Bitcoin
stopped being “the people’s
coin” and started being “the
banks’ tool.”
CME Bitcoin futures contracts
are 5 Bitcoins each, and
settled once a month. The
volume of Bitcoin futures has
been rapidly increasing, as
Bitcoin dives lower and lower,
and this is not a coincidence.
The higher the volume of
Bitcoin futures, the more
paper Bitcoins that are
printed.
In Q3 2018, on average
757,950 paper Bitcoins were
traded per month. While the
spot market volume is much
higher than this, the printing
and trading of this many
paper Bitcoins per month
has a massive impact on
diluting the Bitcoin supply
and diverting demand away
from the spot markets. In
the global financial markets
Bitcoin is no longer as
scarce, since anyone can
deposit money at CME and
print paper Bitcoins and
trade them, even if every
actual Bitcoin in the world
was being HODLED.
If you do not believe us
regarding the connection
between the CME Bitcoin
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
futures and the decline in
Bitcoin’s price, the Federal
Reserve issued a statement
during May 2018 affirming
that CME ruined Bitcoin’s
price. Apparently the
introduction of futures
markets to other asset
classes in the past has also
caused a long term price
decline. The Federal Reserve
says that before Bitcoin
futures launched optimists,
i.e. Bitcoin lovers that
actually cared about Bitcoin,
were in control, and
pessimists, i.e. the
establishment that hates
Bitcoin, had no mechanism
to bet against Bitcoin’s price.
Once Bitcoin futures
launched, people that did
not like Bitcoin could bet
the main reason why bitcoin
dumped in 2018
against its price as much as
they wanted to via short
selling.
Implicitly, the Federal
Reserve is saying that if
Bitcoin futures did not
launch on CME, then Bitcoin
would have rose well beyond
USD 20,000. The launch of
the CME Bitcoin futures was
such a powerful action that
it immediately halted the
rally, as institutional
investors began short selling
mass amounts of Bitcoin,
while diverting demand away
from the spot markets and
printing Bitcoins
simultaneously.
CME is in control of COMEX
and COMEX acts to suppress
cryptomedics.IO
and devalue the global price
of gold at the expense of
everyone else in the world
who holds gold, by issuing
360 times more paper gold
than the physical gold they
have.
The CME Bitcoin futures are
far more malicious than
COMEX, since clients cannot
have their Bitcoin delivered
under any circumstances,
unlike the gold futures which
have a delivery option.
Further, it seems COMEX at
least keeps the gold price
stable or slightly devaluing,
while the Bitcoin futures on
CME are going full steam
ahead to crash Bitcoin’s
price as far as possible.
11

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bitcoi
ETFs
The entire crypto space has
been exuberant that a
Bitcoin exchange traded
fund (ETF) would have been
an incredible thing for the
market, and this could true
for physically backed Bitcoin
ETFs like VanEck SolidX and
the Winklevoss Trust.
However, a further 5-10
Bitcoin ETFs were proposed
to the SEC that were cash
settled and not backed by
Bitcoins, and many of the
crypto news sites failed to
make the distinction
between cash settled ETFs
and physical ETFs, and acted
as if the rejection of cash
settled ETFs was bad news,
when it was actually good
news. If the first Bitcoin ETF
that comes into existence is
cash settled it would be a
catastrophe. All of that
money from institutional
investors that the crypto
markets have been waiting
for would end up in the
pocket of the company
running the ETF, and
theoretically would not
increase Bitcoin’s price at all,
no matter the volume of the
ETF. Further, the paper
Bitcoins printed for such an
ETF would drastically
increase Bitcoin’s supply and
trash its price.
The point is, Bitcoin lovers
need to investigate any sort
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
of Bitcoin futures, ETF, or
index fund thoroughly
before getting excited about
it. Financial instruments that
are directly backed with
Bitcoin are a good thing, but
financial instruments backed
with cash can do long term
damage to the market. It
could endlessly suppress the
price.
The crypto space was
rightfully excited about the
launch of physical Bitcoin
futures on Bakkt on 12
December 2018, but it was
delayed until 24 January
2019 at the earliest.
Something in the
government (or we should
say “the banks” that they
report to) is stopping
physical Bitcoin futures, only
leaving the cash settled
futures in Chicago for the
foreseeable future.
Essentially, the government
has approved the paper
Bitcoins in Chicago, which
reduce Bitcoin’s price long
term by diverting demand
and increasing supply, but
are simultaneously
disapproving of futures
backed by actual Bitcoins.
CryptoMedics suspect that
the government is not going
to allow any sort of
Bitcoin-backed financial
instrument to be approved,
since that would cause
Bitcoin to gain too much
the main reason why bitcoin
dumped in 2018
value and threaten the USD’s
dominance. The government
will be happy to approve
more paper Bitcoins though,
since that undermines
Bitcoin’s value. Therefore,
crypto enthusiasts need to
be very careful to do
research before getting
excited about any newly
approved Bitcoin financial
instrument in the future,
since it will very likely be
paper Bitcoins.
One does not have to look
further than the gold market
to see the end result of
printing paper assets. Gold is
one of the few things in the
world that can be used as a
currency and gain value long
term relative to inflationary
fiats, IF there were not
tremendous paper markets.
The price of gold has been
falling since the middle of
2011, from USD 1,900 to
near USD 1,200 currently.
This is due to the saturation
of the gold market with
paper gold on the COMEX
futures exchange; note this
is CME, the same exchange
issuing unlimited amounts of
paper Bitcoin! There is 360
times more paper gold
printed than the physical
gold backing the contracts.
Massive amounts of gold can
be printed at will by COMEX,
as if it was paper money, and
this has prevented the gold
industry from being a
cryptomedics.IO
serious threat to the USD.
This is why the government
allows this, even though it is
tantamount to stealing from
all the people who hold gold
in the world.
CME, once again the same
people that have ruined the
gold market via COMEX, now
has permission to print as
much Bitcoin as it wants.
Bitcoin Futures on CME
launched on 17 December
2017, the very same day
Bitcoin’s price began to
crash from its peak near
USD 20,000. It is quite
obvious that the launch of
Bitcoin futures on CME was a
coordinated attempt to ruin
the price of Bitcoin. CME has
been printing Bitcoin at will,
and stealing from everyone
else in the world that holds
Bitcoin.
One more note, do not be
surprised that if when
Bakkt’s Bitcoin futures finally
come, that they are cash
settled futures. Bitcoin
zealots will need to read the
fine print and act
accordingly.
12

n dump
bitcoi
Is there any chance to
change this trend?
NASDAQ plans to launch
bitcoin futures 2.0. Since it
will be settled with bitcoin (at
least that’s what it was
supposed to be) and not
paper bitcoin, it can have a
very positive impact on
Bitcoin price. However,
Bitcoin wasn't designed for
this and all this regulation
and Wall Street and banks
getting involved will be a
short term thing. In a few
years once adoption has
taken over, you will see
people start to learn the
difference and the ability of
controlling everything
themselves and not needing
the banks etc, and the
people will quickly see that
the government doesn't
have to be part of their
crypto finances and people
will start learning how to
take the control back.
Bakkt is the second solution
that can turn the tide. Read
our take on it here:
https://medium.com/@crypt
omedics/bakkt-the-game-ch
anger-for-the-crypto-industr
y-must-read-d5783b3e9b28
Regulation will be tolerated
for adoption and then it will
go back to why it was
designed as Bitcoin was
designed to free the
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
everyday man from the
control of the government
and the rich. All the other
blockchains will stick around
but Bitcoin has thousands of
developers working on it for
the original reasons. True
Bitcoin adopters don't want
regulation. Only those
wanting to get rich want it
and fair play to them. Get
yourself rich and enjoy your
life but you'll quickly realise
that you too don't want
regulation the second the
government puts you in jail
for not paying taxes on every
single trade you made since
you first got in it. Even if you
profited once and lost
everything before you
cashed out of your final
currency.
Summary
We need to add that there
are also different reasons for
the price correction than
futures. It's not a crash, it's
just gone back to the price
before it was before massive
FOMO kicked in and while it
should have stopped at
$7000 it went down further
because weak hands exited.
Then Bakkt and others
tanked the price to
accumulate by taking
advantage of the fear.
Will there be another bull
run like in 2017 any time
soon?
the main reason why bitcoin
dumped in 2018
Definitely no. That crazy boat
has sailed off and is never
coming back. But the next
bull run is bound to happen,
however, it will be slower but
will last longer. Yet, we
cannot tell if we cross ATH
any time soon. In fact, even
CryptoMedics have different
opinion on that matter. We
even made a bet on the
Bitcoin price inside the team.
But that’s under one
condition - that no major
recession and financial crisis
happen, because such an
event would turn the world
on its head again. But what
what crisis are we talking
here?
The current geopolitical,
economical and social world
situation (nationalism,
populism, the growing
wealth gap in so many
countries, migrants in
Europe, rioting etc) show
many similar patterns and is
so shockingly mirrored to
what happened in 30s of XX
century. This means that
investors who have invested
in real estate, stocks and
crypto are going to see
massive gains when the next
world crisis occurs. And it will
occur soon, no question
about it, because that’s how
the capitalistic economies
are manipulated - in cycles.
Remember that the great
2008 recession resulted in
cryptomedics.IO
central banks purchasing 15
trillion dollars in assets,
driving up prices of said
assets and creating trillions
of dollars of wealth that
concentrated in the top
percents of population of
Western countries. The
wealth gap now is very
similar to what it used to be
in the 30s and it will most
definitely lead to another
recession. We just don’t
know when it will happen.
Some indicators point to
2020 when finally the
governments admit that
“Ponzi scheme” of the
generous welfare state and
open borders can no longer
co-exist (Western Europe or
USA specifically) and there is
not enough money to cover
obligations and promises
made.
Moreover, keep your eye on
US economy as it’s bound to
crash due to its incredible
domestic debt…. That can
lead to two things: mass
crypto adoption and/or
disappearance of cash
forever. We know for a fact
that the latter is the plan of
bankers and governments,
so such a crash would
greatly justify a sudden
“upgrade” to the system….
13

n dump
bitcoi
What can we do then?
As usual, educate yourself.
This is your greatest asset.
And when combined with
experience, it makes you
almost invincible. Stay with
CryptoMedics, we will guide
you on your way.
Is crypto here to stay?
Definitely. Blockchain is
hiring (even Facebook is
hiring for it) on LinkedIn like
crazy, banks are turning to
blockchain. Soon, you will
see stable coins on top of he
blockchain that will be
pegged to national
currencies. ICOs will be
gone, replaced by STOs
(Security Tokens Offerings),
many assets will be
tokenised and standardised
as securities. Bitcoin itself
will always be remembered
as the “crypto grandfather”
and will be used as a store of
value or means of financial
settlements for the big boys.
Just accumulate it for the
future.
Last but not least
“Banking was conceived in
iniquity and was born in sin.
The Bankers own the earth.
Take it away from them, but
leave them the power to
create deposits, and with the
flick of the pen they will
create enough deposits to
The crypto nurse MAGAZINE • vol. 5 • cryptomedics.IO
cryptomedics.IO
the main reason why bitcoin
dumped in 2018
buy it back again. However,
take it away from them, and
all the great fortunes like
mine will disappear and they
ought to disappear, for this
would be a happier and
better world to live in. But, if
you wish to remain the
slaves of Bankers and pay
the cost of your own slavery,
let them continue to create
deposits.” ~ Sir Josiah Stamp
(1880-1941) President of the
Bank of England in the
1920's, the second richest
man in Britain, speaking at
the Commencement
Address of the University of
Texas in 1927.
http://www.greatthoughtstreasury.com/author/josiah-stamp-josiah-charles-stamp-1st-baron-stamp-lord-stamp
Doesn’t the bolded quotation above refer to Bitcoin perfectly?
You are in CryptoMedics not only to make money. You have joined us to get educated, to be
immune to manipulation, to understand the market, to understand how the money works and
how it is controlled.
Stay with CryptoMedics.
*the article was based on on various online articles, namely:
http://genesisblocknews.com/the-bitcoin-futures-on-cme-are-definitely-the-reason-for-bitcoins-price-crash/
http://genesisblocknews.com/paper-bitcoins-have-the-potential-to-ruin-the-bitcoin-market/
Wikipedia
Investopedia
14
 CryptoMedics

2018
https://cryptomedics.io
https://t.me/cryptomedics
 cryptomedics.io

ZILLIQA IN A NUTSHELL

Zilliqa is a new blockchain DAPP platform that is designed to scale in an open, permission-less distributed network
securely. The core feature that makes Zilliqa scalable is sharding — dividing the network into several smaller component
networks (called shards). Along with its use as a utility token, it also supports smart contracts.

TOKEN ECONOMY

FUNDAMENTAL ANALYSIS: ZILLIQA (ZIL)

Market Cap: $111.374.885 USD

Current Price: $0,013821 USD
ICO Token Price (presale/crowdsale): no presale/0.0008 USD
Exchange: Binance, BitMart, CoinZest, Huobi, DigiFinex
Total Tokens: 21,000,000,000 ZIL
In supply: 12.599.999.804 ZIL
Soft Cap: (ICO only) N/A
Hard Cap: (ICO only) 22,000,000 USD
Token type: Utility-token
ICO token sale ended: 4th of january 2018

Website: zilliqa.com

WHAT PROBLEMS DOES IT SOLVE?

On a very shadow level Zilliqa solves the disadvantages of todays centralized applications (facebook, whatsapp,
instagram etc.) and tries to implement advantages of decentralized applications which are the following:

1. It Is Fault Tolerant
As there is no single node controlling the data transaction and data records in the P2P decentralized network, there is no
single point of failures in DApps. Its distributed nature supports this very strongly.

2. No Internet Censorship
It controls and prevents internet Censorship violation as there is no central controlling authority owning this DApps
network. So if someone tries to manipulate with data sets in their favor it is practically not possible. Any government
authority if tries to block any DApps, it will be not be possible as app doesn’t lie on any particular I.P address being
decentralized in nature.

3. Enhanced Trust on The System

As no single entity own the apps it helps user to have confidence and trust on the DApps system against the data theft
and manipulation.

(https://medium.com/swlh/understanding-dapps-decentralized-applications-8f3668ebdc9a , 20/12/2018)

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 cryptomedics.io

On a deeper level Zillliqa tries to solve one of the main issues of decentralized applications (DApps) which is scaleability.
As of now, decentralized applications are slow as they are unable to process enough transactions per second that would
allow them to run applications the size of facebook, Instagram etc.. Zilliqa adresses this issue by an innovative technology
called “sharding”.

This graphic visualizes the current issue:

Cryptocurrencies Transaction Speeds Compared to Visa & Paypal

Zilliqas Solution
GPUs are only running at full load for a small fraction of time as Proof of Work is only used to establish identities. Making
Zilliqa one of the more eco friendly POW blockchains. By creating groups of nodes, Zilliqa has invented a method of
running parallel computer functions while maintaining a single blockchain.Zilliqa also provides a secure and efficient
smart contract layer to enable secure-by-design smart contract programming and verification. This solution is now
focused on Programmatic advertising. Programmatic advertising is a term used to describe computer-based
automated buying, selling, placement and optimization of digital advertisings. In the United States alone, programmatic
spending in 2017 is estimated to be US$32.5 billion. This solutions is being co developed with their partner mindshare,
read more about them in the “Progress to Date” section under Anchor Dapp.

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 cryptomedics.io

MICRO ANALYSIS

Impact
Unlike other dapp platforms, increasing the pool of miners linearly increases the speed of transactions. The more nodes
hosting the network, the more sharding that occurs, which results in faster transaction speed, capable of processing
transactions in parallel. Making Zilliqa one of the potentially disruptive projects in the industry thanks to its hybrid
POW/PBFT protocol. Read more in the competition section below. In general, we believe that Dapp platforms - Zilliqa is
one of those- have a bright future and can set a new standard for applications. Current applications (e.g Whatsapp,
facebook, instagram etc.) are fully centralized which means that they can only be changed by the company who owns
the application. Assuming, facebook would not be a centralized application but a decentralized application, this would
take away Facebook Inc. as a central power and give the power to the users by acting as a open source network. While
Facebook can instantly change their application without any democratic voting process and against the willingness of
their users, a decentralized application needs a consensus between the network of the developers and network
participants. Examples for decentralized networks are Bitcoin and Ethereum. There are three types of DApps:

Type 1: DApps that run their own blockchain

Type 2: DApps that use a type 1 blockchain
Type3: DApps that use the protocol of type 2

Obviously, Type 1 DApps are the most promising from an investment perspective as those are the ones that deliver the
infrastructure for other DApps. Wish to learn more about DApps? Go here:

https://medium.com/swlh/understanding-dapps-decentralized-applications-8f3668ebdc9a

As stated before, Zilliqa is a type 1 blockchain and has to compete against many other projects building similar
solutions. It can be assumed that only a few projects will succeed and set the new standard for blockchain
infrastructures. As we are still in the infancy stage of DApps and cryptocurrencies, it is extremely speculative to rate the
potential impact of these kind of projects. The rate of adoption will finally depend on the development progress, the
timing, scaleability as well as the marketing. Especially, the scaleability factor speaks for Zilliqa and could be one of
thedriving factors of their success.

Team & Advisors

Xinshu Dong, CEO of Zilliqa, has previous experience in blockchain research and development with Anquan, a
proprietary scalable and secure blockchain. Anquan is primarily deployed for financial and ecommerce applications
and is in many ways a precursor to the Zilliqa project. As Lead Engineer of Anquan, he brings both his blockchain
knowledge and leadership experience to the Zilliqa team.

Christel Quek (CMO), is an all-star member of the Zilliqa team. Co-Founder of BOLT, a live TV and gaming service (over
3M users in Kenya, Southeast Asia and Latin America), Christel also led Brandwatch‘s first office in the Asia-Pacific and
served as former Head of Content at Twitter for their International Markets. Christel’s impressive track record as a
business leader in the tech industry is a strong point for this project.

Other core members of the team include Prateek Saxena (CSA), research professor of computer science at National
University of Singapore, whose focus is blockchain and computer security. Yaoqi Jia(Blockchain Architect), another NUS
scholar and Juzar Motiwalla (Strategist), a venture capitalist responsible for investments in Asia and Silicon Valley, sure
up the tech development and business ends of the Zilliqa ICO even further.

In August 2018 Yiling Ding, formerly with Google, joined Zilliqa as their Chief Marketing Officer. Yiling will be joined Zilliqa
to apply her incredible marketing talents towards strategy, partnerships, and driving enterprise and consumer
adoption of our platform as they gear up for public release towards the end of 2018 / early 2019 and developing a suite
of tools, applications, wallets, and more, to be used by the first companies and developers using Zilliqa’s technology.

Advisors:
On board as an advisor is Loi Luu, the founder of Khyber. He is a frequent speaker at Bitcoin and Ethereum workshops
such as DevCon2, EDCON and an influencer in the crypto space.

Advisor Stuart Prior is a Fintech veteran with 20+ years experience in investment banking. He currently works on
corporate banking initiatives for the adoption of blockchain technology. With Zilliqa’s plan to take on the payments
market, having Stuart Prior on board will certainly be to their advantage.

Thanks to https://cryptobriefing.com/zilliqa-ico-review-zil-token-analysis/

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 cryptomedics.io

Product/Technology
Zilliqa’s version of mining only requires GPUs to run at full load for a small fraction of time, as Proof of Work is only used
to establish identities. Not only does this mean lower electricity consumption, it also means that miners will be able to
dual-mine Zilliqa and Ethereum.

POW allows to carry out sharding. A transaction in Zilliqa looks like this: a user initiates a transaction, which is then sent
to a shard.

Security:
With pBFT, if an attacker controls between 1/3 and 2/3 of the network, all the attacker can do is stall the network by
keeping it from being able to reach a consensus. It isn't until the attacker has control of 2/3 (66%) or more of the nodes
that he is able to subvert the network and do things like put invalid blocks on the blockchain (perform double-spend,
etc).

Zilliqa uses PoW also to prevent Sybil attacks (a type of network attack based on the attacker forging their identity).
Every new node who wishes to join the Zilliqa network has to first perform a PoW. Existing nodes in the network validate
the PoW and authorize the node to join the network. PoW serves as an entry ticket to the network. Only nodes holding
valid tickets can join the network. PoW makes it hard for any real-world entity to span multiple nodes.

Scaling:
Network sharding is the secret sauce that makes Zilliqa truly scalable. Imagine our example network of 1,000 nodes.
Zilliqa would automatically divide the network into 10 shards each with 100 nodes. Now, these shards can process
transactions in parallel. If each shard is capable of processing 10 transactions per second, then all shards together can
process 100 transactions per second. The ability to process transactions in parallel due to the sharded architecture
ensures that the throughput in Zilliqa linearly increases with the size of the network.

A comprehensive FAQ is found here: https://docs.zilliqa.com/techfaq.pdf

Link to source code: https://github.com/Zilliqa/Zilliqa

Token Economy
Tokens in the Zilliqa platform are called “Zillings” or ZILs for short. ZILs only give platform usage rights to the holders to
pay for sending transactions and running smart contracts. Zilliqa has a finite supply of 21 billion tokens, of which 60%
will be in existence at the TGE.

Before Zilliqa mainnet goes live, interim ERC-20 tokens will be generated and allocated to various parties, including
contributors, as detailed in the next section. These interim ERC-20 tokens will be issued to the initial holders and be
transferable within 2 weeks after the completion of the TGE. They are expected to be migrated to the Zilliqa mainnet as
ZIL tokens in 2018. We will use ZILs in this article to refer to both the interim ERC-20 tokens and the ZIL tokens on our
mainnet.

Branding
Marketing goals to drive adoption of Zilliqa’s platform:

Build Zilliqa’s credibility and reputation with PR, events, communications. This will create a pipeline of developers,
partners and investors for Zilliqa.

Ramping up their exposure with more educational content (both for developers and the broader audience) and media
coverage. Zilliqa will also be revamping their website to be more comprehensive in time for their mainnet launch in
January.

There have never been any bounties or aidrops, which is explained as not necessary so community is being created
organically, only with real investors.

To build its reputation Zilliqa has organised sponsored key conference (e.g. Consensus, SFBW), spoke at numerous
conferences (e.g. SFBW, Karois Summit, DELTA Summit) and expanded PR team to improve media and events exposure.
Building out key documentation Ran targeted workshops to gather dev feedback (e.g. Hackathons in Romania and
London) and hiring technical writing team to produce tutorials was also part of Zilliqa strategy. The project also puts
value to Education. It has attended key academic conferences (e.g) ISoLA), sponsored NUS CRYSTAL Centre to support
blockchain research and partnered with universities and student organizations (e.g. Future of Blockchain, Workshops in
CMU and Tsinghua).

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 cryptomedics.io

Community Branding
Drive developer adoption through education, outreach and removal of barriers to entry. Developer adoption is key for
driving real usage in the longer term.

Establish Zilliqa as a thought leader through education, academia engagement, and research. This is a long-term
investment, to train a new generation of developers for Zilliqa.

Zilliqa will be launching an interactive tutorial and walkthroughs in Q1. Making it easier for developers to build on Zilliqa
through improved tooling and extensive educational content. They are also in the process of exploring how they can
help developers in their grant program continue to grow.

NOTE: During the summer of 2018, Zilliqa launched the #BuildOnZIL campaign: an incubator program for startups.

Engaging their community through scaling up workshops and meetups across the globe. Zilliqa will also be holding
more regular AMAs and developer townhalls for better visibility for our community.

Expanding their university and student outreach initiatives, including establishing a student ambassador program.

Zilliqa is based in Singapore. And have built up cooperations with Japanese companies, developer communities, they
have an official Korean community and an unofficial Chinese community on Wechat. To their knowledge, we have
numerous supporter in South-East Asia countries as well.

Western/global community:

Forum: https://forum.zilliqa.com/ 96 followers

Slack: https://invite.zilliqa.com/ (opened only recently) 4 rooms 6381 followers
Gitter: https://gitter.im/Zilliqa/ (Dev-related topics) 8 Rooms 647 followers
Telegram: https://t.me/zilliqachat 26947 followers
Blog: https://blog.zilliqa.com/ 5.6k followers
Twitter: https://twitter.com/Zilliqa 53k followers
Reddit: https://www.reddit.com/r/zilliqa/ 9.6k followers

Communication and Transparency

PR of Zilliqa is superb, Admins are responsive on all platforms. Zilliqa proves to be a Dev friendly environment, which is
key to it’s success. Any question & concern is being addressed professionally. Zilliqa’s source code was revealed on
github early 2018.

https://github.com/Zilliqa/Zilliqa

Progress to date

Up to date Roadmap: https://zilliqa.com/about-us.html

More in depth review of the achieved milestones during 2018, link: A year in Review

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 cryptomedics.io

Zilliqa launched january 2018, and did its first testrun of nodes in february, then they conducted large-scale tests during
their current implementation, running stably with 600 DS nodes.

Almost One year later, they finally launched their Testnet v3 with Public Mining. Zilliqa reached 10k tps with 4 shards,
1000 nodes in their previous testnet. Testnet v3 also opens up Zilliqa’s far more eco-friendly and cost-effective version
of mining to the public for testing.

Portability to Zilliqa:

Scilla (https://scilla-lang.org/) is the smart contract language, Zilliqa has community developers working on transpiler
from Solidity to Scilla to ease projects which would like to migrate to Zilliqa from Ethereum. Ethereum has been working
on Vyper (a Phythonic language for EVM). However, it appears that Vyper has not received the attraction that it
deserves probably because of the popularity of Solidity among dApp developers. The Zilliqa team, on the other hand,
has already finished the first version of its own language – Scilla – that will go live with the mainnet. Scilla, unlike Vyper,
has not been designed to be a higher-level language. This means that Scilla can be a compilation target for other
higher-level languages. Hence, in the longer term as we develop support for higher-level languages to compile into
Scilla, we would actually be able to reduce the learning curve for developers and become more easy to adopt than
Vyper. We invite you to check out Section 5 of the Scilla design document (https://arxiv.org/pdf/1801.00687) that
compares Scilla with 13 other smart contract languages.

Zilliqa has been pushing for developers' adoption of Scilla from the begining and will continue working on that. We are
seeing a growing number of developers learning and using Scilla.

The Anchor DAPP: Anchor dApps refer to core applications eg, digital advertising Zilliqa is working on with Mindshare.
ZIL anchor Dapp releases by end of Q4 2018.

Other DAPP’s in development:

Thanks to the #BuildOnZIL incubator the following dapps have been in development:

Inmediate
Smart Contract Insurance transacted at lightning speed, full clarity, and at much lower costs than ever imagined.
website: http://inmediate.io/

Impetus One
Using behavioural economics to incentivize its users to complete fun missions.
website: https://impetus.one/

BOLT
Breaking the payment barrier to give users in emerging markets access to information and entertainment. website:
https://www.bolt.global/

Emont Frenzy
An epic underwater battle game from the makers of the Etheremon.
website: http://frenzy.emontalliance.com/#/

ZilWuxia
A Martial Arts themed MMORPG game.
website: http://www.zilwuxia.com/

Transactrain
A multi-industry full stack blockchain-powered supply chain management platform with integrated instantaneous
multi-currency payment facilities.
website: https://www.transactrain.com/

Partnerships and VCs

Mediamath: A leading digital media buying platform and services company based in New York, serving over 250B ad
impressions a day (more than the combined volume from top 10 stock exchanges globally). Mediamath serves over
4,000 clients in its portfolio.

Mindshare: Mindshare is a global media and marketing services company with 7,000 employees across 116 countries,
and global revenue at USD34.5B annually. Clients include Unilever, PepsiCo, GSK, Yum Restaurants, Dyson, Nestle,
American Express and others.

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Rubicon Project: Founded in 2007, Rubicon Project is one of the world’s largest advertising exchanges. The company
helps websites and apps thrive by giving them tools and expertise to sell ads easily and safely. In addition, the world’s
leading agencies and brands rely on Rubicon Project’s technology to execute billions of advertising transactions each
month. Rubicon Project is an independent, publicly traded company (NYSE:RUBI) headquartered in Los Angeles,
California.

Integral Ad Science (IAS): A global software company, headquartered in New York, that builds verification, optimization,
and analytics solutions, acting as leaders in viewability, brand safety and ad fraud.

Underscore CLT: Underscore CLT develops cryptographic ledger technologies to power real business solutions for
marketers and their partners

DMM: DMM is a Japan-based Internet conglomerate with a diversified group of businesses that includes online
shopping and video on demand service. The company manages DMM.com, an online entertainment site and its
subsidiary DMM.com Securities is the world's second largest forex company in terms of trading volume.

LayerX: LayerX is a joint-venture between Gunosy Inc (Listed on Tokyo Stock Exchange 6047) and AnyPay Inc. The firm
is focused on blockchain technology and providing services in the field of smart contract development / consulting,
smart contract auditing and other development/consulting relating to blockchain projects.

Infoteria: Infoteria, a leading enterprise software company in Japan (Listed on Tokyo Stock Exchange Section1: 3853).

Bluzelle: The high-security decentralized database that scales with your users. Zilliqa is collaborating with Bluzelle to
offer their end customers a new set of data services. Bluzelle also partnered with projects like NEO & 0x, and many more.

Genaro Network: The first smart data ecosystem with a Dual-Strata Architecture, integrating a public blockchain with
decentralized storage. On Apr. 24, 2018, Genaro and Zilliqa have announced a new partnership to improve the speed and
scalability of blockchain technology and ecosystems.

Token Distribution (since ICO)

Contribution Cap and Planned Use of Proceeds
1) 80% for Zilliqa’s research, development, and its operations (for approximately 3–4 years).
2) 15% to award Anquan Capital Pte. Ltd., the company that developed the core technology behind our scalable
blockchain and incubated Zilliqa.
3) 5% to award the founding team who have been developing Zilliqa.

Group 1: Mining Rewards Zilliqa will incentivize miners to grow the network using 40% of the total tokens (8.4 billion).

Group 2: Early & Community Contributions A maximum of 30% of the tokens (6.3 billion) will be distributed to our early
and community contributors after the TGE. Any excess tokens unallocated to any contributor after the TGE will be
burned, i.e., permanently destroyed.

Group 3: Company, Team, Agencies The remaining 30% of the tokens (6.3 billion) will be allocated to various parties

NOTE: The tokens in Group 3 are under a vesting plan. They will be distributed on a quarterly basis over a 3-year period.
The portion allocated to Bitcoin Suisse is an exception due to our commercial agreement with them. (Edited for
clarification)

Incentive for early supporters: We have agreed to reward these supporters with 10.0%–15.0% additional “bonus” tokens,
depending on negotiated terms.

Zilliqas
Token
Allocation

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Use of Funds
• 30% of the tokens (6.3 billion) will be allocated to various parties as detailed below:
• 10% (2.1 billion) goes to Anquan, which will continue to support the Zilliqa project.
• 12% (2.52 billion) goes to Zilliqa Research, a new entity leading the research, development, community engagement,
bounty programs and marketing for Zilliqa.
• 5% (1.05 billion) goes to the Zilliqa team, including founding members as well as future employees (Edited for
clarification).
• 3% (0.63 billion) goes to various agencies and advisors, including Bitcoin Suisse.
MACRO ANALYSIS
Regulations
The regulatory status of cryptographic tokens, digital
assets and blockchain technology is unclear or
unsettled in many jurisdictions. It is likewise difficult to
predict how or whether any governmental authority
may make changes to existing laws, regulations and/or
rules that will affect cryptographic tokens, digital
assets, blockchain technology and its applications. This
regulatory uncertainty implies to any blockchain
project in the industry as a whole. Regulatory aspects
include: Currency Regulation Risks, Risks Associated
with Crowd Sale, Taxation Risks, Capital Control Risks
and Anti-Money Laundering Regulations.
Is Zilliqa GDPR compliant?
Zilliqa is an open permissionless blockchain. Zilliqa
Claims they can't control the data that is put on the
blockchain. Thus not hold responsibility in the GDPR
policy. It’s up to the Dapp developers to embed a
function to protect personal data.
FYI:
Permission less: Permissionless Blockchains enable
Competition
Quote From FAQ: “To start with, competing in an open
source framework like in the blockchain space does not
make much sense. Since, the project is open source,
anybody is free to reuse the idea in another project. The
biggest problem in blockchains today is scalability.
There are several solutions to this problem. The beauty
is that each project provides its own solution and this
creates a healthy environment of learning from one
project and building another one. Each project usually
has its own strengths and weaknesses. Attempting to
compete with any blockchain whatsoever will take the
project nowhere. This will prevent us from adopting
smart ideas out there in our so-called competitors. Our
philosophy is that one needs to identify the strength of
the idea, follow it and be open to learning from other
projects.”
Either way, there are some key differences that give
Zilliqa a so called “Unfair Advantage” in relation to it’s
main competitor Ethereum (seemingly the competitor
to any Dapp platform).
Transaction rate: The Ethereum blockchain protocol
has a transaction rate of around 10 tx/s.
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cryptomedics.io
anybody to take an interest. The exchanges are
approved and handled by votes/agreement. A vote
does not rely upon having an earlier character of any
sort inside the record and no previous trust is expected
between taking an interest hubs.
Permissioned: permissioned blockchains limit access
regarding who can perform different activities on the
Blockchain. The exchanges are approved and handled
by the individuals who are as of now perceived by the
record and some level of prior trust is accepted and
demonstrated.
Source:
https://onekosmos.com/blog/permissioned-blockchain-
vs-permissionless-ledgers/
The General Data Protection Regulation (EU) 2016/679
("GDPR") is a regulation in EU law on data protection
and privacy for all individuals within the European
Union (EU) and the European Economic Area (EEA). The
GDPR was adopted on 14 April 2016, and became
enforceable beginning 25 May 2018.
ZILLIQA is currently 250 times of that.
Consensus: Ethereum uses PoW for consensus, ZILLIQA
uses pBFT for consensus. PoW in ZILLIQA is used only to
establish identities to prevent Sybil attacks. Once
identities are established, the network can reach
consensus on several blocks in a row. This makes PoW
more efficient as a new PoW is not required per block as
in Ethereum.
Smart contracts: ZILLIQA will also be different from
Ethereum in terms of smart contracts. The basic
difference comes from the fact that ZILLIQA’s
underlying smart contract language will not be
Turing-complete.
Finality: ZILLIQA’s consensus protocol gives finality. This
means that no confirmation is required. This is different
from PoW-based consensus in Ethereum where
temporary forks can occur and hence a certain number
of confirmations are required to have a cushion against
double spends.
23

Scalability: Ethereum is exploring how to do PoS
securely and effectively in its future versions.
ZILLIQA takes a different approach with sharding for an
accelerated path to scalability. We will try to be
compatible with Ethereum wherever possible wrt
mining, smart contract language, etc.
Comparison to other existing blockchain platforms:
• NEO claims to be a permission-less network, whereas
in reality, they are a permissioned network. NEO is
centralized with the nodes being completely managed
by the NEO team. (based in China, a country infamous
for lack of social freedom)
• EOS goes the same way as NEO: the nodes are
completely under the control of the EOS team only
allowing trusted parties to act as nodes.
• IOTA through the DAG consensus (an alternative
consensus algorithm to blockchain) does allow
high-speed transactions, however DAG is not
completely proven as of yet, and there are several
challenges to be overcome. Blockchain is by far a more
secure and well-known technology.
Bitcoin Market
With Bitcoin (BTC) trading at under $4000, it is quite
clear that the bear market is far from over. However, like
all market cycles, the bear market won’t last forever.
This means that good projects that have held on
strongly all through, will thrive once the bear run comes
to an end.
In spite of dumping hard in the 2018 bear run, Zilliqa has
maintained positive progress all through.
The CME (operating an options and futures exchange)
may initially cause Bitcoin to move up or down, but in
reality, Bitcoin’s price is going to be more dependent on
events in the Bitcoin economy. To list a few:
1. Bitcoin / Crypto Community Politics
2. Institutional Investment
3. Government rules/regulations
4. Competing crypto-currencies
5. Major Bitcoin Conferences i.e.
Target Audience
Main Niche: Blockchain for the advertising world. Zilliqa
is already being tested by a very large advertising firm
called Mindshare. This is also referred to as the anchor
dapp described in the roadmap. Any other Enterprise
seeking for high Scaling Solutions, will likely choose
Zilliqa above Ethereum.
Hype & community
Due to Zilliqa’s strong community building effort, the
community is very much in favor of this undervalued
DApp platform. Zilliqa is unquestionable one of the
more hyped project in the blockchain industry which is
also manifested in their Telegram (25k+ members) and
Twitter (54k+ members) accounts.
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WHY ZILLIQA STANDS OUT:
• Sharding implemented NOW; not just mere promises
or vapourware.
• TX speeds increases linearly i.e the network's
throughput capacity increases as new nodes join the
network.
• Very Secure Network - Zilliqa has a very secure &
unique consensus algorithm Practical Byzantine Fault
Tolerance (PBFT).
• Environmentally friendly - With Zilliqa, Proof of Work is
only used to establish identity and one POW writes to
multiple blocks at a time (rather than 1 single one)
resulting in less energy used (vs Bitcoin or Ethereum)
and higher rewards for the miners.
• Lower Transaction Fees - Zilliqa’s unique POW + PBFT
algorithm allow for much lower transaction fees than
competing blockchains like Ethereum and NEO.
• Smart Contracts - Zilliqa includes a smart contract
layer (currently being built and due in Q2) on top of the
blockchain layer. This smart contract layer will include
a Scilla a Solidary-like language.
Last but not least, we have to mention Bitcoins market
cycle. Since 2018 we entered the last phase of the 4th
Bitcoin market cycle; the bear market. The highest
probability scenario is that the market cycle repeats
itself a fifth time.
To summarize, Bitcoin is the center of the crypto
economy in many ways, and with BTC trading pairs on
every exchange, the gravity of Bitcoin is hard to escape.
This only becomes more true when people start to “take
gains” or “cut losses” from alts to buy Bitcoin when it
goes on a run, and tend to “go to alts” or “go to
fiat/USDT” when Bitcoin stagnates or drops. However,
Lition will announce their public crowdfunding for Q1
without giving a concrete date. This gives them more
flexibility when it comes to the launch date as well as a
certain degree of control.
*Possible target industries that could profit from blockchain
infrastructure like Zilliqa are the energy sector, automotive
industry, healthcare industry, gaming and finance. This is just
a broad list which could be extended. Therefore, the target
audience is very big and cannot be limited to a single industry.
24

SWOT ANALYSIS
STRENGTHS
• Portability for dapps to Zilliqa platform with Scilla
• All-star team and partnerships
• Consistent community builders: strong PR & regular
updates
• Sustained developed of its technology during the
bear market
• Strong support for developers (read about their
#BuildOnZIL program)
• Informative: well developed FAQ & Whitepaper
• Unfair advantage (first mover) in the progress of
sharding on POW
• Maintains high security with high scalability
through sharding & hybrid protocol POW/PBFT
• Embedded smart contracts (read: scilla)
• Proven High throughput TPS (see testnet)
• Open Source Code on Github
• Constant commits on Github
• Undervalued (With all eyes on EOS, ETH & NEO,
Zilliqa is considered a underdog)
• Focused Market Target (Knows their Niche)
• Strong incentive for miners
• POW is the most proven & well trusted system to
protect against Sybil attacks
• Environmentally friendly
OPPORTUNITIES
• Dapps can in the future easily move from any other
competitive platform to Zilliqa
• Less competition among miners, more stability and
reduced mining costs are all significant advantages
of mining, which will increase scalability
• Mindshare will open a lot of doors to the
advertisement industry
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WEAKNESSES
• Launched during the crash of the market, which
could have had an impact on its reputation, slowing
and sabotaging community growth
• Competitive industry: With projects like Raiden and
Plasma in the pipeline, the Ethereum protocol will
have the means to address scaling issues that posed
a stumbling block.
• Lacks strong branding to penetrate this market,
and currently that is still something that Zilliqa
needs to work on in case they want to become an
authority of a high throughput, scalable & secure
DAPP platforms
• Suffered from a few delays (But this happens to the
best)
THREATS
• Government & regulations: GDPR compliance is still
unclear for data centric blockchain (where data cant
be removed from the chain), and might backfire
• Bear Market has a significant impact to the overall
market, and lots of projects might bleed to dead. Can
Zilliqa survive?
• As the project is open source, it will be capable of
being tested by independent parties.
• Blockchain might be replaced by other technologies
developed in the Distributed Ledger industry. Other
protocols such as DHT & DAG are on the horizon.
• Blockchain is prone to a 51% hacking attack.
• Quantum computing: experts are suggesting
quantum computing may render blockchain
obsolete.
• General business risks: Failure, competition, security
risk
25
 cryptomedics.io

Conclusion
Zilliqa certainly brings new air to the blockchain
industry, an industry which suffers from an impractical
reputation. It has the core ingredients of success: It’s
timing is certainly spot on, we need a scaling solution
as soon as possible. Its consistent in its operation &
progress, strategic in building a strong network of
partnerships & transparent to it’s community, getting
lots of favor by the people. It doesn't overpromise with
hallucinating TPS targets. And with a recent proven
Testnet, trust in Zilliqa only grew more. Branding might
need improvement in the near future, but is an overkill
in current market & sentiment, where the key to
success is product development & community building
with its direct peers, the dev community. We have to
keep an eye open for the GDPR policy though. A
blockchain which stores data from users on a global
network, data which can’t be changed or deleted, fails
to comply to such policy. This is the paradox of
blockchains tamperproof security protocol. It remains
unclear if Zilliqa can comply to that policy, given the
nature of it’s technology, however other companies like
Lition have already shown how to handle the issue.

Sources:

https://zilliqa.com/
https://www.valuewalk.com/2018/01/transactions-speeds-cryptocurrencies-stack-visa-paypal/
https://smartoptions.io/zilliqa-zil-the-next-big-thing/
https://medium.com/swlh/understanding-dapps-decentralized-applications-8f3668ebdc9a

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 cryptomedics.IO

ou tro by cryptomedics

conclusion
Thank you for reading this
month’s CryptoNurse. This
month’s issue was a bit
different (no new gem as
they are only presented to
ELITE) but the times are also
different. We are
approaching slowly the Bakkt
launch (which might be
delayed though) and we
already see some positive
moves in the market. This
Christmass pump by 40 bln
USD may be a taste of things
to come. However, we are
still bearish because it is
probably another bull trap
before we go below 3k.
One thing is always there:
grow your Bitcoin position.
You can do it yourself or you
can join us in ELITE. We’re
closing 2018 with
tremendous circa 800% ROI
for the past months.
Would you like to join us?
Check the Telegram bot:
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ot or contact @kapitankloze
(also on Telegram).
You can check our
recorded performance
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eadsheets/d/1CADWaz_fpka
xtOpSJJNPhrMeW5INVUHvCP
1pLAzig_I/edit?usp=sharing
Please read the Bitmex
guide carefully again, always
do your Due Diligence and This document is
stick to CryptoMedics for
more professional advice! and is the property of
CryptoMedics.
Great things incoming for
CryptoMedics in 2019! We Any reproduction,
are not allowed to tell you sharing or use for
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Stay tuned! and will be legally
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Yours,
CryptoMedics

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