MAY 14 — MAY 21 2021

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 In this week’s report…

WELCOME • When everything was on fire, some high-

VORTECS™ assets remained a safe haven

Welcome to the latest issue of the VORTECS™ Report.

• Weekly strategies testing results: ALL 42
strategies outperform the basket of
Well, this has happened: a dramatic meltdown in the crypto market altcoins
saw most digital assets shed dozens of percent of their value
overnight following Bitcoin’s major correction earlier this week. • How exactly do NewsQuakes™ affect
asset prices? Examples of NQ’s influence
Retail panic that manifested in massive exchange inflows, as well as on sentiment and trading volume
the failing market infrastructure completed the ominous picture. Yet,
when the skies cleared after Wednesday’s bloodbath, it became • New category of NewsQuakes™: Elon
apparent that it wasn’t the end of the digital asset world, not even the Musk’s tweets!
start of a major bearish cycle, most likely.
• Altseason analysis: for the first time, the
It was very noticeable that some tokens scores emerged as winners, ball is on Bitcoin’s ground
largely unscathed by the market-wide slump… when traded against
Bitcoin rather than measured in USD. Remember you can change the • Exclusive interview with Chainalysis’
base currency denomination in the top-right corner of Markets Pro. Philip Gradwell

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 THE HIGH SCORE TABLE
In the week that saw the crypto market’s Coin Weekly % change
flash crash, some of the largest gains were
MATIC 80.67%
made by a number of high- VORTECS™
assets that proved to be a wise investment ONE 22.19%
choice for those waiting out the storm.
RUNE 12.93%

As Markets Pro has been around only during SOL 11.65%

the 2021 bull cycle, some users have been
AAVE 10.21%
wondering whether the VORTECS™ indicator
is useful during the periods of decline or GRT 9.44%
sideways market. Because the algorithm is
IQ 8.64%
trained on 2.5 years of history that included
ups, downs, and periods of stasis, the ENJ 7.52%
insight that model provides can bring value
even when the crypto market is trending ALGO 7.51%

down – as this week’s showing of high-

AGI 6.69%
VORTECS™ assets illustrates.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 Top Performers
Polygon (MATIC) paid little attention to
the wider market’s misfortunes as it was
headed to its new all-time high at $2.18.

Propelled by the rapid expansion of the

DeFi ecosystem and the number of
decentralized applications emerging on
the Polygon platform, the token saw
several consecutive price spikes, each
coming after a string of 90+ V-scores.

For half of the day on May 15, MATIC held

a record-shattering score of 99 (second
red circle in the graph), followed by the
price running up to the ATH.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 Markets Pro Top Performers
Harmony’s VORTECS™ score first flashed
dark green at the end of last week, and the
first upward drive followed some three
days later (first and second red boxes).

Another sequence of 80+ scores occurred

during this rally, suggesting that the
conditions around the coin looked
historically favorable for another leg,
which followed the next day (third and
fourth red boxes).

Thanks to these pumps, ONE came out of

the rough week with 24% against the
dollar and almost 50% against BTC.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 Markets Pro Top Performers
Solana’s VORTECS™ scores were in the seventies in
the first half of the week, suggesting that the
algorithm detected a historically bullish outlook, yet
there were still some inconsistencies in subsequent
price action in the past.

At the end of May 16, when the first round of the

rally brought the coin to the local peak of $51, the
model reported seeing a promising pattern with
even higher confidence (red circle in the graph).
Solana’s next move was to break its previous
ceiling and reach $58. Note that in this graph
Solana’s price is shown in satoshis – a view that
you can switch to using a toggle button between
USD and BTC in the upper right corner of Markets
Pro interface.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

AVERAGE VORTECS RETURNS
A straightforward measure of the algorithm’s
performance is the average value change that the
assets reaching a certain V-score mark show after
crossing the threshold.

The table on the next page presents average
returns made by coins after they cleared a score of
80, 85, or 90.
Each asset could only yield one observation per
day, i.e. if a coin went from 79 to 81, then back to
79 and then to 80 once again in a few hours, only
its first entry to 80+ would count.
While the group of assets that cleared the bar of 80 clearly
illustrates the effects of the market’s temporary fallback
this week, the more exclusive 85 club had average net
positive returns on 6 and 12-hours timeframes. Stellar
performance by the three highest scoring coins – MATIC,
ONE, and SOL – ensured that the average returns of this
group were positive on every time threshold.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

AVERAGE VORTECS RETURNS
Time after score 80 85 90

2 hours -0.34% -2.22% 0.8%

6 hours -2.0% 0.39% 6.29%

12 hours -3.92% 0.65% 3.31%

24 hours -6.05% -1.26% 2.68%

48 hours -2.59% -0.58% 8.78%

Occurrences 36 11 5

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 This week, we are bringing back score and time-based
weekly VORTECS™ strategies to further highlight the
model’s performance against the market.

Weekly VORTECS™ ROI: Score-based As a point of reference, Bitcoin was down 20%, and the
basket of top 100 alts lost 29% of value over the week.

All automated VORTECS™-based strategies

outperformed the alts, while 14 score-based and 10
time-based ones yielded better results than BTC. Of
those, 15 allowed the testing bot to increase the value
of its holdings.

Please note that these fully automated strategies are

designed to provide VORTECS™ performance
benchmarks and are not meant to be replicated by
human traders.

Green bars represent strategies that performed better

than Bitcoin; blue bars stand for those that
outperformed the alts but not Bitcoin.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 Score-based scenarios, like Buy 80/Sell 70 dictate that the
testing algorithm enters a position at the first VORTECS™
value (80 in this case) and holds the asset until it drops
below the second value (70 in this case). If multiple assets
have a score of 80 at one time, the algorithm splits its
Weekly VORTECS™ ROI: Time-based holdings equally between these coins. Here you can get
further information on testing methodology.

Green bars represent strategies that performed better than

the altcoin basket; yellow bars stand for those that
outperformed Bitcoin but not the alts.

Thanks to the splendid runs by 90 and 85-scorers, both

score-based and time-based strategies that relied on this
group of coins kept their portfolios above water even when
pretty much everything less was sinking fast.

In the time-based domain, it would pay off to stay calm

and hold on to the 90-VORTECS™ lifeboats for longer
periods of time, as Buy 90/Sell after 168, 48, and 96 hours
were the most lucrative examples.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

Markets Pro NewsQuakes™

When a coin is already rallying and then a potentially price moving

NewsQuake™ comes in, how do you tell whether it had boosted the
momentum, or had gone unnoticed?

The interplay between the NewsQuakes™ and some of the components that
go into the VORTECS™ score formula can help untangle this.

On the next page is the graph from the TIE’s SigDev platform (separate
from CTMP) that charts MATIC’s price this week against the coin’s daily
sentiment score.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

 Late on May 14, two announcements came out –
both listed among this week’s most
consequential NewsQuakes™ - spreading the
word of Polygon’s upcoming listing on Kraken
Markets Pro NewsQuakes™ (first red circle). We can be quite confident that
their effect did not simply coincide with the
coin’s already ongoing rally.

Note how the social sentiment around MATIC

gets a major boost immediately after the
NewsQuakes™ hit – marking their independent
impact that also manifested in further price hike.
MATIC added further 54% immediately after the
announcement.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

Markets Pro NewsQuakes™
Another winning NewsQuake™ this week
pertained to the launch of Cardano staking on
Kraken. The peak return it generated
amounted to more than 36% for ADA within 72
hours. As visible in the graph, one of the
indirect avenues through which the news
influenced the price was a sharp uptick in
trading volume.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

Markets Pro NewsQuakes™

• A somewhat unexpected testament to the NewsQuakes’™ lightning speed came this

Thursday during the weekly Q&A with Cointelegraph’s Jay Cassano and the TIE’s
Joshua Frank. While explaining the NewsQuakes™ functionality to new users, Josh
reached for the Markets Pro dashboard for a sample NQ, which turned out to be the
news of the start of SUSHI trading on Kraken, scraped from the exchange’s blog.

• It turned out that the announcement was not yet up on Kraken’s Twitter – a venue
where most traders learn such news. Indeed, the tweet came only after further 20
minutes – time that CTMP subscribers could use to beat the market.

• In other news, in addition to three types of market-moving events captured by the

NewsQuakes™ algorithm, a new category is now live: Elon Musk’s tweets mentioning
digital assets!

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

ALTSEASON ANALYSIS
In a reversal of the weeks-long trend, the Altseason indicator, which
measures how favorable historic conditions look for Bitcoin
compared to the top 100 altcoins, tilted heavily to the left this week.
What this suggests is that previous crashes like the one this week
were followed by alts taking a bigger hit and taking a longer time to
recover as traders had become wary of the riskier altcoin
investments.

Indeed, the chart visualizing BTC and altcoins’ relative performance

this week demonstrates that alts, on average, experienced a deeper
decline than Bitcoin and were slower to recoup the losses. We might
see this dynamic play out similarly in the next couple of weeks.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

EXCLUSIVE INTERVIEWS
For this week’s exclusive interview, Joshua Frank hosted Philip Gradwell,
Chief Economist at blockchain analytics firm Chainalysis. In a perfectly
timed appearance, Philip provided a much-needed voice of calm and
reason in the immediate aftermath of this week’s market crash. In a must- “Institutions are not sellers, but they
watch interview furnished with data-driven insight and digestible charts, are more cautious buyers than they
Gradwell discussed some of the hottest topics of the day: were in the past.”

• How was this crash different from all previous ones?

• Is this the start of the new crypto winter?
• Which asset is more concentrated – BTC or ETH?

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

MARKETS PRO & TRADINGVIEW
CTMP products create the most value when used in conjunction with other analytical tools.

Technical analysis is one technique that many of our users rely on in their trading. We are happy to announce that
we have made using VORTECS™ alongside TA easier than ever with the integration of TradingView, the foremost
TA social platform! You can now overlay the VORTECS™ score with your favorite TA metrics in a single chart,
taking your trading game to the next level.

While on a coin’s page, you can now toggle between the original Price vs. VORTECS™ chart and the new
TradingView chart. To add the VORTECS™ score to the TradingView chart, just search under the indicators tab.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.

DISCLAIMER
Cointelegraph is a publisher of financial information, not an investment adviser. We
do not provide personalized or individualized investment advice. As a condition of
using Markets Pro you acknowledge and agree that no Content published or
otherwise provided as part of any Service constitutes a personalized
recommendation or advice regarding the suitability of, or advisability of investing
in, purchasing or selling any particular investment, security, portfolio, commodity,
transaction or investment strategy. Cryptocurrencies are volatile investments and
carry significant risk. Consult your financial advisor before making financial
decisions. Full terms and conditions.

© 2021 COINTELEGRAPH MARKETS PRO CONFIDENTIAL.