10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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By Teeka Tiwari on October 19, 2017
In February 2017, I wrote to you about a tiny Chinese crypto project then valued
at just $5 million.
Just a year earlier in 2016, the project’s value was $25 million.
That meant the coin had shed 80% of its value.
At the time, it was a diÕcult decision to recommend it. The chart looked ugly. But the idea was
compelling. My research convinced me the coin had long-term value.
When I recommended it, I told you I thought it would become China’s preeminent blockchain
development tool.
I said you could make 100 times your money on it.
And so, we bought it at 13 cents.
Eight days after recommending this crypto, the price collapsed to 8 cents. Its total market cap
slumped to just $3 million.
To anyone looking at just the price, it looked like a disaster.
I never did Ònd out what was behind that drop. But I am forever grateful to the shortsighted
people who sold their coins to my subscribers for pennies.
Just six months later, Neo (then Antshares) rose 60,760% from its lows.
It would go on to hit a high of $50. That was a gain of 41,605% for Palm Beach ConÒdential readers
who bought in at 13 cents.
Three Ex-Government Agents Just Created the
Ultimate “Privacy Coin”
Here’s How We’ll Make 7,000% Gains Over the Next 12–24 Months Buying It10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 2/26
This month, I’ve found a similar situation to Neo before it shot up.
Earlier this year, the coin was trading as much as 170% higher. It’s up o× its lows… but the trading
is still lackluster.
Volume and sentiment is low. And just like my original recommendation of Neo, the market cap is
tiny at just $16 million.
On top of all of that, the price chart looks ugly.
But just like Neo, this idea is compelling. And my B.I.T.S. system is screaming “buy” (more on that
below).
A Big Announcement
A dream team of ex-government agents have come together to create what I believe will become
the world’s most widely used privacy coin.
But it’s more than that.
It’s a full-blown privacy platform.
The platform allows for globally secure payments with built-in anonymous messaging. You can
also publish documents and store data anonymously.
And developers can use the platform to build and launch their own privacy apps.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Outside a small number of people, this coin is virtually unknown. But over the last six months,
some of the brightest minds in crypto have been quietly rallying around this project.
Charles Hoskinson is the former CEO of Ethereum. He’s a close advisor of the project. And he has
a team of developers working on it right now.
The main core technical team developer is the same guy who leads the payments engineering
team at the $31 billion vacation rental behemoth Airbnb.
The project has attracted a Òerce following of developers and community members that number
over 1,000.
In the next few weeks, the project is about to make a big announcement.
The announcement will make this privacy coin the most secure network in the world. More
secure than current leaders Monero, Zcash, and Dash.
When this announcement is made, investor money will Óood into the coin.
We want to own this before that announcement is made. (More on that below.)
Short term, I think we’ll see this one double over the next few weeks.
Within one to two years, I expect this coin to have a $1 billion to $2 billion market cap.
That would take the price from around $7 per coin to between $250 and $500 per coin.
That would turn a $400 investment into $14,300–28,500. Or a $1,000 investment into $35,700–
71,400.
At Palm Beach ConÒdential, we call this asymmetric-risk investing. It’s the strategy we use to take a
trivial sum of money and convert it into life-changing wealth. Thousands of my subscribers have
already done this.
If you are new to ConÒdential, welcome. It’s your turn to get a crack at a 50-bagger.
I want you to remember that just like Neo, this idea will be wildly volatile. We might double in
price right out of the gate. We could just as easily drop 50% next week.
And I’ll tell you it doesn’t matter…
When you take a small position size, you can safely ignore volatility and focus on the big picture.
And the big picture for this idea and its future are bright.
Be sure to check out the resources we’re constantly adding to our Crypto Corner. If you
have questions about anything cryptocurrencies, chances are you’ll Ònd the answers there.
There, you can access our research on web-based wallets, hardware wallets, and other
cryptocurrency services.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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The Dream Team: Mercenary Mathematician,
Nuclear Sub OÕcer, NASA Hacker
This idea was born from the meeting of three ex-military guys who wanted to create a “more
secure, anonymous version of bitcoin.”
To do that, they combined their expertise in the military, intelligence, and cryptography Òelds.
In his own words, project leader Rob Viglione is a “mercenary mathematician.”
He’s a former U.S. Air Force oÕcer with experience in satellite radar, space launch vehicles, and
combat support intelligence.
He also was a private U.S. military contractor embedded in Afghanistan. There, he used
mathematical algorithms to map out the likely locations of improvised explosive devices (IEDs).
Rolf Versluis is a graduate of the U.S. Naval Academy. After graduation, he was commissioned as
an oÕcer of a nuclear submarine.
Joshua Yabut is a former cybersecurity expert at NASA and former National Guard executive
oÕcer. His job was to break into government and corporate networks. By all accounts, he was
excellent at it.
A year ago, these three men joined forces. They saw a world becoming increasingly hostile to
individual freedoms and decided to do something about it.
They want to give people back control over their privacy. Here’s what they wrote in their white
paper for the project:
We live in a hyper-regulated and surveilled world where billions of individuals are
deprived of basic human rights, such as property ownership, privacy, free association,
and access to information. The technology now exists to solve some of these problems…
These three men come from a unique background in government. No one I’ve met in the crypto
space has a better understanding of the government’s security apparatus than they do. They
understand nation-led security threats at a deeper level than any other privacy coin team in the
world.
That’s why instead of just building another privacy coin, they built an entire privacy ecosystem.
Your Privacy is Under Assault
Everywhere we look, our privacy is under attack.
In an increasingly online world, governments can see what we read, with whom we talk, and what
we do with our money.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Take Turkey, for instance. That country’s government has jailed people for downloading certain
apps.
In 2016, a military coup tried to topple the government. The plotters used a smartphone
messaging app called ByLock to coordinate the attack.
In retaliation, the Turkish government jailed nearly 75,000 citizens for downloading the app. Even
if they had nothing to do with the coup.
Think about that.
And don’t think this is just something that happens abroad. Your privacy is under assault in the
United States, too.
According to former FBI director James Comey, you have no right to privacy at all.
“There is no such thing as absolute privacy in America; there is no place outside of judicial reach,”
Comey said at a Boston College conference on cybersecurity back in March.
Apparently, in the eyes of the FBI, no corner of your life is sacred. It can look at it all.
That’s why it should have been no surprise when we discovered the National Security Agency
(NSA) has been monitoring all of our communication for years.
But it doesn’t stop there. Governments also want complete oversight of our personal wealth.
Here’s why…
In the West, governments are drowning in debts they can’t pay back. The only answer is to assault
our wealth with new taxes.
But you can’t tax what you can’t see. And that’s one of the reasons many governments fear
cryptocurrencies.
Unlike Òat currencies, governments can’t easily steal cryptocurrencies when a crisis hits.
That’s what European Union member Cyprus did during its banking crisis in 2013. The
government conÒscated up to 30% of its depositors’ money in some cases.
With cryptocurrencies, you control your own private key. That means no one can take your
wealth from you. Governments hate this.
It’s not just national governments targeting citizens’ wealth.
The International Monetary Fund (IMF) is an international organization with 189 country
members. In 2013, it proposed a global 10% wealth tax on all citizens with a positive net worth.
As governments struggle to bridge funding gaps, we expect more and more outrageous attempts
to seize your wealth.
Long story short: The world is becoming a smaller, less private place.
Whether it’s the NSA listening in on all our calls, or the Turkish government cracking down on
privacy apps, or the IMF trying to tax your wealth, governments are trampling over citizens’ rights.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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This has led to the rise of “privacy” coins.
Privacy coins are cryptocurrencies that seek to hide your identity. They are designed so
governments can’t track how much you have or what you buy.
When I Òrst started looking at privacy coins a year ago, the entire market was under $200 million.
Today, it stands at over $4 billion.
That’s a 1,900% increase.
Two of the top 10 most valuable cryptocurrencies are privacy coins Monero and Dash. We own
both and have done quite well.
As of this writing. we’re up 923% and 111%, respectively. But as good as Dash and Monero are at
protecting privacy, they focus on small niches.
In my research, I’ve found only one project that provides a much broader level of privacy that the
future will demand.
A New Way to Shield Transactions
The name of this project is ZenCash (ZEN).
ZenCash has about 2.2 million coins outstanding. Just like bitcoin, there will never be more than
21 million ZenCash coins.
Here’s the background on ZenCash…
ZenCash shares a similar history to the $2.2 billion privacy coin giant Dash. (Dash is currently the
sixth largest cryptocurrency in the world.)
What many folks don’t know is that Dash went through a long, winding road before becoming the
powerhouse it is today.
Dash started as a clone of bitcoin… but with privacy. Its original name was Darkcoin. It then
“forked” (spun o×) into XCoin, and then forked again into Dash.
Each change brought further reÒnements to the underlying protocol.
We’ve seen ZenCash follow a similar path.
ZenCash started as a clone of Zcash.
Zcash was the Òrst cryptocurrency to use a form of cryptography called zk-snarks.
A detailed explanation of zk-snarks is beyond the scope of this report. The bottom line with
this technology is that it allows for something called “shielded transactions.”
A shielded transaction hides the identity of the sender, the receiver, and the transaction
amount.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Zcash is a brilliant project, but it has problems. One of the biggest is how the mining reward is set
up.
For the Òrst four years of Zcash’s existence, 20% of the mining reward went to its original
development team. This didn’t sit well with certain developers. So, they forked Zcash and created
a new coin called Zclassic.
Zclassic stripped out the founders’ reward and gave miners 100% of the mining fees.
Scrapping the founders’ reward was a step in the right direction… but it didn’t go far enough.
Zclassic still had a fundamental weakness… It was dependent on the goodwill of the community
to keep developing it.
It had no funds of its own to ensure constant development and improvement.
That’s when Rob Viglione, Rolf Versluis, and Joshua Yabut decided to “fork” Zclassic and create a
better version: ZenCash.
In a moment, I’ll explain to you the changes the team made that will make ZenCash the No. 1
privacy coin in the world.
Before I do that, I want to show you what’s wrong with the privacy coins we have right now.
The Four Problems With Current Privacy Coins
The world’s privacy coins are each solving small parts of the overall privacy problem.
Zcash wants to keep your transactions and wealth secret.
Dash wants to be a commerce coin with optional privacy.
Monero wants to be untraceable digital cash.
Each of these coins has done great work in its relative niche… but each has fundamental
drawbacks.
Drawback No. 1: Inadequate Funding Model
Monero’s funding model relies on developers donating their time to the project. They are not
paid to improve Monero. Perhaps that’s why there still isn’t a user-friendly mobile wallet.
Zcash’s funding model is only in place for the Òrst four years. After that, Zcash is expected to rely
on the “community” for further development.
Only Dash has truly sustainable long-term development funding through its treasury model.
Dash’s design sends 10% of the mining reward into a treasury to pay for ongoing development.
For long-term success, a privacy coin must have a self-funding model.
Drawback No. 2: Not Fully Secure
Privacy coins aren’t as anonymous as advertised. To our knowledge, no cryptocurrency today
employs end-to-end encryption.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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End-to-end encryption is a system of communication. In this system, only communicating users
can read the messages they send and receive. No eavesdropper can access the messages.
Without end-to-end encryption, anyone monitoring the network could see all traÕc across all
blockchains.
This means governments could track down the origin of transactions and identify users.
Here are two examples of so-called untraceable coins getting traced…
In 2016, federal law enforcement agents seized nearly 12,000 Monero coins.
And this year, law enforcement agents seized nearly 3,700 Zcash coins from the late Alexandre
Cazes, the alleged leader of dark market drug purveyor AlphaBay.
Obviously, the government did not publicize how it was able to track down these “untraceable”
coins. But it makes sense that the lack of end-to-end encryption could have played a role in
unmasking these transactions.
While you and I have no interest in running an illegal drug bazaar, there are many legitimate
reasons to want privacy. For instance, do you want everyone to know exactly what you buy or
what causes you support?
The government has a history of persecution based on political beliefs.
In 2013, news broke that the IRS had targeted organizations aÕliated with the Tea Party.
Let’s say you want to give money to WikiLeaks, a website that publishes secrets and classiÒed
information from anonymous sources.
If you donate publicly, the government could use that information to deny you a security
clearance or federal job. Even private sector jobs could discriminate against you.
What if you want to give money to a pro-life or a pro-choice charity? Either choice could lead to
employer and/or social discrimination.
The point is there are lots of legitimate reasons to keep your Ònancial transactions secret.
Without end-to-end encryption, you can’t be sure you are safe.
Drawback No. 3: Easily Blocked
As governments become more fearful of cryptocurrencies, they’ll try to block your access to
them. We’re already seeing this in China and Russia.
China has shut down its domestic crypto exchanges. The Russian central bank has said it will
block access to all cryptocurrency trading websites.
Governments will enforce these bans by making Internet Service Providers (ISPs) keep a list of
banned sites.
You literally will not be able to connect to these sites. Dash, Monero, and Zcash have no way to
overcome this type of government blocking.
This is a huge Óaw in today’s leading privacy coins.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Drawback No. 4: They Only Handle Payments
Dash, Monero, and Zcash are primarily designed to handle the transfer of money.
Zcash o×ers something slightly di×erent with its private messaging function.
Dash also has unique o×erings like “instant send,” which allows you to receive money instantly.
The privacy coin of the future must be able to do more than move money.
It must have built-in messaging.
It must allow anonymous data publishing and storage.
It must have end-to-end encryption and be unblockable.
And of course, it must be able to handle the anonymous transfer of money.
None of the current privacy coin leaders have all of those functions… except ZenCash.
Why ZenCash Will Become the Most Widely Used
Privacy Coin
Earlier, I told you ZenCash is the brainchild of three ex-military men.
This is important because if you believe in the saying “it takes a thief to catch a thief,” then you’ll
understand the value these military insiders bring to a privacy ecosystem.
Throughout their careers, these founders have had ringside seats to how governments really
operate.
That’s why they shed their government careers and devoted their professional lives to the
creation of a total privacy platform.
The ZenCash team has designed a platform that will plug the holes that plague the current
privacy coins.
Plug No. 1: Robust Funding Model
Developing software costs money… lots of money.
Traditional software Òrms rely on issuing stock, sometimes bonds, and on rare occasions, actual
earnings to fund their operations.
Typically, cryptocurrency projects rely on community donations of time and skill.
Relying on the goodwill of others is not a long-term scalable solution.
The other problem with relying on a community of developers is that a small group of folks ends
up steering the project.
This results in a centralized development team, which can lead to a weaker project.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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We like decentralized development teams. In that model, the community votes on which aspects
of development get priority.
When you have a funding mechanism that the community votes on, it ensures the best ideas and
the most committed developers are getting the money they need to keep improving the project.
ZenCash has solved this problem by using a “Treasury Model.”
Every 2.5 minutes, 12.5 ZenCash gets mined. Under its Treasury Model, 88% of the mining reward
goes to the miners. The ZenCash Foundation Treasury gets 8.5%.
(I’ll explain where the rest goes in a moment.)
Right now, 7,200 new ZenCash gets mined each day. Of that, 612 coins (8.5%) go to the ZenCash
Foundation Treasury.
At current prices, that’s $4,284 per day… or $1,563,600 each year.
Now, remember: ZenCash is only at $7 right now. As the price starts rising, we’ll see the treasury
allocation rise along with it.
This model ensures that ZenCash will have a steady supply of capital to pay for its ongoing
development without having to engage in dilutive coin o×erings.
This funding model means ZenCash will always have the money needed to keep growing and
improving.
Plug No. 2: End-to-End Encryption
Earlier, I mentioned that ZenCash is on the cusp of a major announcement that will bring in a
Óood of new investors.
It has to do with end-to-end encryption.
As of this writing, there is not a single cryptocurrency that o×ers end-to-end encryption.
ZenCash is about to Òx that with a solution it calls “secured nodes.”
According to the white paper, secured nodes “ensure the system remains distributed, resilient,
and secure. By enforcing encrypted communication between nodes, and between nodes and
wallets, Zen protects against eavesdropping […]”
As I mentioned earlier, end-to-end encryption helps thwart government e×orts at linking network
traÕc to users’ identities.
As regimes such as China and Russia’s become more hostile to cryptocurrencies, this service will
become a must-have option.
The secured node network is being beta-tested right now. It will go live in two to four weeks.
Right now, there are 170 test secure nodes. The founders estimate they will have 1,000 secured
nodes by the end of the Òrst quarter of 2018.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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They expect such rapid growth because anyone operating a secured node will be entitled a share
in 3.5% of the mining reward.
We think this is a very smart way of ensuring the ZenCash network stays highly distributed and
secure.
Plug No. 3: “Domain Fronting”
As I write this, Russia’s central bank has announced it will block its citizens from accessing
cryptocurrency websites.
As already mentioned, China has shut down its domestic cryptocurrency trading platforms.
The founders of ZenCash have long known this day would come. That’s why they built “domain
fronting” into ZenCash.
With domain fronting, you can make a domain (website) you’re trying to access look like
something else.
For instance, if you are in Russia and want to access a ZenCash wallet, domain fronting would
make your network request look like you were going to an approved website.
Here’s another way to think about domain fronting…
It’s like having a plane ticket that says you are Óying to London. This lets you pass the security
checkpoint. Except once you’ve passed security, the ticket changes and lets you Óy to Cuba
without anyone knowing.
ZenCash is the only privacy coin we know of that will have domain-fronting capability. As more
governments become hostile to cryptocurrencies, this is another feature that will be critical to a
privacy coin’s success.
That’s why we expect the global demand for domain fronting to soar, and ZenCash along with it…
Again, as of this writing, ZenCash is the only privacy coin that o×ers domain fronting.
Plug No. 4: Full Privacy Platform
ZenCash is more than just a way to send and receive money anonymously. It is a full privacy
platform that other developers can build upon.
So instead of having to build your own privacy platform from scratch, you can build applications
on top of the ZenCash system.
Here are some of the di×erent applications you’ll see launch on the ZenCash platform.
ZenTalk is a secure communications network that allows you to broadcast a message from
one person to many people. Think of it like an encrypted invitation-only Twitter feed.
ZenPub is a platform that will let you publish and store documents anonymously.
ZenHide is the domain fronting service. ZenHide will give users the ability to
circumnavigate crypto-commerce blocking.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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On top of all that, ZenCash includes the ability to send and receive money anonymously (or
publicly if you wish). Plus, you can use it as a one-to-one private messaging system.
In addition, ZenCash can work with other blockchains (that means it’s interoperable).
Let’s say you want to set up an Ethereum smart contract but handle the payment via a ZenCash
shielded address.
In the future, you’ll be able to do that.
This rich set of features makes ZenCash more than just a privacy coin.
It’s a privacy platform… and platforms are incredibly valuable.
This is because platforms attract other developers. And more developers equate to more apps,
which equate to more users.
More users equal more demand for ZenCash, and that, my friends, equals much higher prices
ahead.
What Is B.I.T.S. Saying?
B.I.T.S. is designed to automatically alert us to ideas when investor sentiment is low. We call
this buying at the bottom of the fear curve. You can read how the system works here.
B (Business Value Ratio): The business value ratio measures the daily dollar value of all
transactions compared to the total value of the cryptocurrency. When the business value
ratio dips below its average, it’s a sign the crypto token is cheap.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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We can see that the business value ratio is below its baseline (dotted black line). This tells us
we are buying in when sentiment is low. We call this buying in at the bottom of the fear
curve.
I (Insiders): When the business value ratio is Óashing, I go to my insiders.
Everyone on the ZenCash development team is well respected within the crypto
community. Just as important, the core team has a history of previous success.
Rolf Versluis used to work for Cisco. Not only that, he’s already built a company before and
sold it. That means Rolf has hands-on operational experience.
Rob Viglione has a deep background in mathematics, business, and the military.
William Wolf is a member of the core technical team. He currently leads the payment
engineering team at Airbnb.
(I found out later that Joshua Yabut is pursuing other opportunities and is no longer on the
team. We don’t see this as a negative as it’s usual for some team members to leave.)
In addition, ZenCash snagged Charles Hoskinson as a special advisor. Charles is the former
CEO of Ethereum. Charles can work with just about any project he wants. The fact that he
chose ZenCash speaks volumes about the project.
T (Technicals): We use technical analysis to tell us when the selling is over. The Relative
Strength Index (RSI) measures how strong a cryptocurrency is based on its previous trading
history. If today’s price is higher, the RSI moves up. If today’s price is lower, the RSI moves
down.
The RSI is just about to break out and give a buy signal.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 14/26
S (Social Media): Our research has shown that before a cryptocurrency takes o×, we always
see a surge in “chatter” on our social media tracker.
We can see that our social media “chatter” indicator has broken above the baseline but
hasn’t taken out the old highs yet. Social media mentions are starting to pick up steam but
haven’t given a clear buy signal yet.
Bringing It All Together
The question in front of you is simple.
Do you believe that a self-funding, globally decentralized, end-to-end encrypted messaging
system that can also store data, publish data, and send and receive money in total secrecy is
worth more than $16 million?
Collectively, Monero, Dash, and Zcash are worth $4.1 billion.
Over the next Òve years, ZenCash could be worth more than all of them combined.
Over the next 12–24 months, we think you’ll see ZenCash grow into a $1–2 billion market cap.
If it does that in a year, the coin will rise to approximately $250–500. (That’s based on a future
coin count of 4 million outstanding.)
If it takes two years to hit the $1 billion–2 billion valuation, the coin count will be about six million
coins outstanding. That will give us a potential price of $125–250.
Today we can buy it for about $7.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Here’s How We’re Playing It
I expect a lot of volatility out of ZenCash. So, here’s how we are going to handle it.
We will buy just a half-sized position Òrst. That means if you normally put $1,000 in a crypto
trade, just put $500 into ZenCash for now.
We’ll buy the second half on the Òrst 50% pullback from the high after we buy.
So that means if we get in at $7 and it goes to $20 and then drops to $10, we’d buy the second
position at $10.
I used the same strategy with Monero. It worked beautifully.
We bought the Òrst position at $9.40. Monero then ran to $15.04. When it dropped to $7.52, we
put on the second piece. And as you know, we went on to make a combined 1,522% return.
To repeat, our game plan is to buy a half-position now and the second half on the Òrst 50%
pullback from the high after we buy.
Don’t worry about tracking ZenCash every day. We’ll send you an email as soon as the second buy
signal is triggered.
Remember: Because these trades have massive upside, you can keep your positions small and
still make signiÒcant gains. If you’re a smaller trader, we recommend putting $200–400 ($100–200
today) into each trade or $500–1,000 ($250–500 today) if you’re a bigger trader.
Action to Take: Buy ZenCash (ZEN)
Buy-up-to Price: $20
Stop Loss: None
Buy it on: Bittrex
Store it on: Swing Wallet (see video below)10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Important Note: We always recommend that you take possession of your coins in your own
wallet in which you control the private key. However, we recognize some people are
uncomfortable using wallets. In that case, you may choose to keep your coins on the exchange.
Please be aware that we consider that to be very risky.
Where to Be Invested Now
How to Prepare Now for Upcoming Bitcoin Hard Forks
By Teeka Tiwari and Greg Wilson
A lot has happened since early September. At that time, the cryptocurrency markets were making
new all-time highs and bitcoin reached nearly $5,000.
The rally didn’t last. Soon thereafter, China banned initial coin o×erings (ICOs) and JPMorgan CEO
Jamie Dimon called bitcoin a fraud. Bitcoin fell 40%. The overall cryptocurrency markets lost 44%
of value.
The volatility is why we’re always advocating rational position sizes. You don’t need big positions
to make big proÒts in cryptocurrencies.
And rational position sizing helps you e×ectively deal with price swings.
The volatility is unlikely to end. In fact, we have two potential hard forks coming up for bitcoin
that could bring more.
For those who have been with us a while, we’ve been through this before.
But if you’re new to cryptocurrencies, a hard fork is like a corporate spino×.
For example, in 2013, Abbott Labs spun o× AbbVie, the biopharma segment of the
company. The result was two companies, each trading under a di×erent symbol.
The last bitcoin hard fork was August 1.
That’s when Bitcoin Cash (BCH) “spun o×” (forked) from bitcoin (BTC). We sent out alerts,
both before and after, detailing how to handle the hard fork.
We’ll continue to do the same going forward whenever there is a hard fork for any of the
cryptocurrencies in our core portfolio.
The Òrst potential hard fork is called Bitcoin Gold. It’s a project from Jack Liao, CEO of
cryptocurrency mining company LightningASIC.
Liao’s goal is to decentralize bitcoin mining. Right now, it takes massive investment in specialized
equipment to mine bitcoin. Liao sees this as a risk to bitcoin’s long-term future.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 17/26
If everything goes to plan, the hard fork will happen on October 25. And Bitcoin Gold trading
would start around November 1.
While Bitcoin Gold has its critics, it recently spoke to Bitcoin.com and indicated the hard fork will
go through as planned.
The second hard fork is the second half of SegWit2X, the scaling agreement made at the
Consensus conference in May this year. The planned date is November 18.
In the Òrst half of the upgrade, bitcoin added SegWit to its network. The second half of the
upgrade is intended to increase the block size from 1MB to 2MB.
Unlike Bitcoin Gold, SegWit2X continues to lose support. Most recently, bitcoin mining company
F2Pool withdrew from the agreement. That’s signiÒcant because F2Pool is tied as the third largest
bitcoin mining pool.
It’s now a possibility the parties involved may abandon the SegWit2X hard fork.
We’ll continue to update you.
In the meantime, there are steps you can take now to prepare for any hard forks.
The most important thing to do is store your bitcoin where you control the private keys. That
means moving your bitcoin o× exchanges like Coinbase or Bittrex and into wallets such as Jaxx or
Blockchain.info or hardware wallets like Ledger or Trezor.
It’s also best not to transact your bitcoin around a hard fork. Wait until we give the all-clear sign
that it’s safe to transact your bitcoin.
Finally, keep your eyes out for alerts from Palm Beach ConÒdential. We’ll be with you every step of
the way.
Action to Take: Buy bitcoin (BTC) up to $7,500.
Ether (ETH)
Ethereum had a hard fork recently as well. It happened on October 16 as part of Ethereum’s
planned upgrade called Byzantium.
With this hard fork, you don’t need to worry about a coin split, like what happened with bitcoin
(BTC) and Bitcoin Cash (BCH) this August. Ethereum’s hard fork was not contentious and had
consensus support. The hard fork was step one in a well-known Ethereum upgrade plan called
Metropolis.
You do not need to move your ether anywhere speciÒc or cease trading.
Action to Take: Buy ether (ETH) up to $400.
Neo (NEO)
When we published last month, NEO was trading at $17, still smarting from the Chinese ICO ban
news. At the time we recommended holding on, as the volatility was normal in the cryptocurrency
market. With the news out of China now a memory, NEO is back around $30.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 18/26
Right now, NEO is working on NEP-5, a token standard for the NEO blockchain. It’s similar to
ERC20, which is the token standard for Ethereum. This is important, as it provides a template for
developers to create tokens on the NEO blockchain. ERC20 led to a Óurry of ICOs on Ethereum
and we expect the same for NEO and NEP-5.
Action to Take: Buy Neo (NEO) up to $22.
Gas (GAS)
We expect NEO to become the de facto blockchain operating system for Chinese developers. And
that’s why we believe GAS, which buys computational power on the NEO blockchain, is the most
undervalued crypto asset in the world.
Whether you want to write smart contracts, register assets, or build dApps on the NEO
blockchain, you will need to pay in GAS.
Here’s the thing: It will take 22 years for GAS’s full supply to hit the market. A short supply and
growing demand will send GAS prices higher.
Action to Take: Buy Gas (GAS) up to $30.
Steem Power (STEEM)
This past month, CEO Ned Scott announced a new Steem-based protocol called Smart Media
Tokens. This has the potential to be a game-changer for the Steemit platform.
Smart Media Tokens allow anyone, even with no coding knowledge, to launch their own token for
just $1. And they can do it without having to use steemit.com or the Steem cryptocurrency,
except to buy in.
That means any content platform will now have the ability to monetize user-generated content
with Smart Media Tokens. For example, a fashion blog could reward outside content creators,
forum participation, and comments with its own Smart Media Token. Users can then cash out
their Smart Media Tokens in Steem’s internal market or use them for more products and services.
Today, monetizing digital media is largely dependent on ad revenue. That’s about to change with
Smart Media Tokens. We think this will further Steemit’s lead in the decentralized content space.
Action to Take: Buy Steem Power (STEEM) up to $2.50.
Peerplays (PPY)
Peerplays continues to work toward launching Bookie, its sports betting platform. Peerplays now
plans to introduce two Bookie products.
The Òrst Bookie app is designed for professional bettors and will be released as a desktop
application. It will enable users to trade both sides of the bet. In other words, you can be the
house or lay the bet.
The second Bookie app is for casual bettors. It won’t have all the features of the professional
product, but it will o×er a sleek interface that allows for easy betting. This version will Òrst be
released as a mobile application.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 19/26
The Bookie app products are slated to launch in the Òrst quarter of 2018.
Action to Take: Hold Peerplays (PPY).
Ripple (XRP)
Ripple’s Òrst conference, Swell, is October 16–19 in Toronto. Former Federal Reserve Chair Ben
Bernanke will be the keynote speaker. It’s interesting that Swell will happen at the same time as
Sibos, the annual banking conference for SWIFT, the network banks currently use. Ripple is
presenting at Sibos as well.
In other news, CEO Brad Garlinghouse recently noted that over 100 customers have signed up for
Ripple. He also stated Ripple was prepared to use its $15 billion war chest to ensure its
advancement.
With a war chest of $15 billion and a market valuation of under $10 billion, Ripple is a buy.
Action to Take: Buy Ripple (XRP) up to $0.30.
OmiseGo (OMG)
OmiseGo recently completed its airdrop. As we wrote previously, the snapshot date was July 7.
That’s when OmiseGo took a “picture” of the Ethereum blockchain. OMG tokens were distributed
to all ETH holders with a balance over 0.1 ETH on the snapshot date.
The distribution of OMG tokens started the week of September 4. By now, all ETH holders as of
the snapshot date should have their OMG tokens.
If you held your ETH in a wallet such as MyEtherWallet, you should now see your OMG tokens.
If you held your ETH on a hardware wallet like Ledger or in a private wallet like Jaxx, we have
published instructions on how to move your OMG to MyEtherWallet.
Action to Take: Buy OmiseGo (OMG) up to $6.
Short-Term Cryptocurrency Portfolio
Iconomi (ICN)
Iconomi just announced its Òrst series of crypto fund managers to its Digital Asset Management
platform. It chose 12 managers from a pool of over 150 applicants worldwide.
One is William Mougayar, coauthor of The Business Blockchain (the other author is Vitalik Buterin).
He has over 30 years of experience in startups and venture capital. He’ll launch the William
Mougayar High Growth Cryptoassets Index on Iconomi.
Action to Take: Buy Iconomi (ICN) up to $1.25.
NEM (XEM)10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 20/26
This month, the NEM Foundation announced that ShapeShift will integrate the XEM token into its
platform. That gives XEM greater liquidity and makes it easier for users to exchange other
cryptocurrencies for XEM.
Action to Take: Buy NEM (XEM) up to $0.30.
Dash (DASH)
Dash continues its global expansion. This month, debit card provider Wirex added Dash to its
payment forms. Users can soon use Dash at over 40 million VISA-accepting merchants across the
world.
In other news, Dash was also listed on London-based bitcoin exchange CEX.io. The exchange has
over 1 million users and makes Dash more readily available across Europe.
Action to Take: Buy Dash (DASH) up to $140.
Bitshares (BTS)
In case you missed it, Bitshares is being delisted from Bittrex. It happened on October 13 and
Bittrex is giving users two weeks to move their coins. If you hold BTS on Bittrex, we suggest you
move it as soon as possible. You can Ònd our alert here.
You have two options. You can either transfer BTS to Poloniex. Or you can set up a Bitshares
wallet. Click here for instructions on how to set up a Bitshares wallet.
There’s also confusion regarding how to use the MEMO line when sending and receiving BTS.
When you send from an exchange to your wallet, it’s not necessary to Òll out the MEMO Òeld.
When you send to an exchange from your wallet or another exchange, Òll out the memo. Simply
click on the deposit Bitshares button at Bittrex or Poloniex and it will provide you both the MEMO
ID and the deposit address.
Action to Take: Buy Bitshares (BTS) up to $0.40.
Golem Network (GNT)
This past month, Golem released Brass Golem Alpha2 0.8.1, an upgrade to its testnet alpha.
It’s the next step to the Brass release, which will be the Òrst major release of the Golem Network.
When Brass is released, Golem will switch from the testnet alpha to the Ethereum network. And
that will open the platform to consumers.
We expect the GNT price to appreciate once Brass is released. The team has not given a speciÒc
date for the release, but we anticipate it will happen before the end of the year.
Action to Take: Buy Golem Network (GNT) up to $0.60.
Stellar Lumens (XLM)
Stellar is our most recent short-term cryptocurrency trade. We sent out the original alert
on October 5.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
http://palmbeachgroup.com/three-ex-government-agents-just-created-the-ultimate-privacy-coin/ 21/26
In the alert, we said, “Stellar is actively engaged with potential partners in Japan, Southeast Asia,
and the Middle East. We expect Stellar to make major new partnership announcements later this
year.”
Less than two weeks later, IBM announced a partnership with Stellar to improve the eÕciency of
cross-border payments.
That sent the price of Stellar Lumens soaring over 200% and we sent out a sell alert to lock in
proÒts. If you haven’t done so already, sell Stellar Lumens.
Action to Take: Sell Stellar Lumens (XLM).
(The Stellar Lumens symbol is XLM on Bittrex and STR on Poloniex.)
Stocks
Spark Therapeutics (ONCE)
As we’ve been detailing, Spark recently submitted its license application for voretigene
neparvovec (brand name Luxturna), its gene therapy for inherited retinal diseases.
This month, Spark went through an FDA panel review. That’s where panel experts raised
questions on the drug and heard from patients.
The panel voted 16-0 to recommend the FDA approve the drug. The stock popped on the news,
and we sold half of our position. You can Ònd the alert here.
Action to Take: Hold Spark Therapeutics (ONCE).
Dynacor Gold Mines (DNG.TO)
This month, Dynacor announced a partnership with PX Group, a gold reÒner and manufacturer
out of Switzerland.
Under the pact, gold produced by Dynacor will be marketed under the label PX Impact Gold for
resale to some of the world’s leading luxury jewelry and watch manufacturers. These
manufacturers want to purchase from traceable and socially responsible artisanal miners.
Dynacor gold meets these requirements.
Insiders continue to purchase shares as well. Both CEO Jean Martineau and Director Pierre Lépine
bought in September at prices ranging from C$2.01 to C$2.10.
Action to Take: Buy Dynacor Gold Mines (DNG.TO) up to C$4.
On Teeka’s Radar
Next month, I’ll Ònd myself back in Lisbon, Portugal, attending Web Summit 2.0. I’ll
be meeting up with a former energy derivatives trader who has partnered with one
of MIT’s leading minds on a solar blockchain project.10/19/2017 Three Ex-Government Agents Just Created the Ultimate “Privacy Coin” - Palm Beach Research Group
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Name Symbol Buy Date Curr Price Return Yield Stop Loss Action
Connecticut Water Service CTWS 01/08/2014 $63.02 91.8% 1.8% 17.5% Trailing Buy up to $35
Sandstorm Gold Ld SAND 07/22/2016 $4.41 -14.7% 0.0% 52.3% Trailing Buy up to $8
Dynacor Gold Mines DNG-T 08/19/2016 $1.97 -30.9% 0.0% 50% Trailing Buy up to C$4
Orezone Gold ORE-V 10/21/2016 $0.63 -16.0% 0.0% 50% Trailing Buy up to C$0.75
SPARK THERAPEUTICS ONCE 12/22/2016 $82.00 73.3% 0.0% 50% Trailing Buy up to $60
Invitae Rg NVTA 01/19/2017 $9.89 24.4% 0.0% 50% Trailing Buy up to $12
Name Symbol Buy Date Curr Price Return Yield Stop Loss Action
Ether ETH 04/18/2016 $290.64 3129.3% 0.0% None Buy up to $400
Bitcoin BTC 04/18/2016 $5151.44 1103.6% 0.0% None Buy up to $5,000
Monero XMR 09/15/2016 $86.54 922.9% 0.0% None Buy up to $60
SteemPower SteemPower 11/23/2016 $1.07 856.0% 0.0% None Buy up to $2.50
Lykke LKK 11/23/2016 $0.37 680.6% 0.0% None Buy up to $0.10
Neo NEO 02/16/2017 $28.66 22736.7% 0.0% None Buy up to $22
Peerplays PPY 11/23/2016 $4.14 219.9% 0.0% None Hold
Factom FCT 03/16/2017 $15.59 271.2% 0.0% None Buy up to $50
Storj STORJ 04/20/2017 $0.37 10.6% 0.0% None Buy up to $0.50
Ethereum Classic ETC 05/18/2017 $10.81 -3.0% 0.0% None Buy up to $25
Ripple XRP 05/25/2017 $0.22 -18.5% 0.0% None Buy up to $0.30
OmiseGo OMG 08/07/2017 $7.66 161.4% 0.0% None Buy up to $3.25
Gas GAS 08/14/2017 $20.00 -11.7% 0.0% None Buy up to $30
Name Symbol Buy Date Curr Price Return Yield Stop Loss Action
Iconomi ICN 05/22/2017 $1.30 38.7% 0.0% None Buy up to $1.25
NEM XEM 05/25/2017 $0.20 -14.1% 0.0% None Buy up to $0.30
Dash DASH 05/25/2017 $280.05 111.1% 0.0% None Buy up to $140
Wings WINGS 06/02/2017 $0.42 -6.4% 0.0% None Buy up to $0.50
Lisk LSK 06/02/2017 $4.86 273.8% 0.0% None Buy up to $1.50
Waves WAVES 06/26/2017 $3.68 -8.0% 0.0% None Buy up to $4
Basic Attention Token BAT 06/07/2017 $0.15 -42.3% 0.0% None Buy up to $0.35
Bitshares BTS 06/21/2017 $0.05 -84.5% 0.0% None Buy up to $0.40
Syscoin SYS 06/21/2017 $0.18 -11.6% 0.0% None Buy up to $0.30
Zcoin XZC 06/21/2017 $9.73 -39.3% 0.0% None Buy up to $20
Golem Network GNT 06/28/2017 $0.20 -63.5% 0.0% None Buy up to $0.60
MaidSafeCoin MAID 06/28/2017 $0.37 -22.5% 0.0% None Buy up to $0.50
Aragon ANT 06/28/2017 $1.56 -40.7% 0.0% None Buy up to $2.50
I’m looking forward to reporting back to you on that project.
I’ll also be spending time with a young couple I’ve written about before. They are very successful
cryptocurrency traders and have been a tremendous source for new ideas.
I’m also taking a one-week vacation. It’s the Òrst time in 20 years my wife and I will have gone on
vacation without the children.
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