crypto news

German Asset Management Giant DekaBank To Offer Bitcoin And Crypto

DekaBank, one of Germany’s largest asset managers, has selected Swiss crypto services provider Metaco to offer bitcoin related products to its clients.

  • German finance giant DekaBank will offer bitcoin products to its institutional customers.
  • The firm has partnered with Swiss service provider Metaco to build its new suite of offerings.
  • DekaBank is the leading provider of securities services and capital market solutions to the German Savings Banks Finance Group.

One of Germany’s largest asset managers will offer bitcoin and cryptocurrency to its clients.

DekaBank, which has over 360 billion euros ($390 billion) is assets under management (AUM), has selected Swiss crypto services provider Metaco to underpin and orchestrate its digital asset custody and management operations, per a Tuesday press release.

DekaBank is a key provider of securities services in Germany, offering a broad range of services including custody, asset management and capital market solutions to the German Saving Banks Finance Group. The new partnership will enable DekaBank’s extensive network of savings banks to access bitcoin and cryptocurrency services through a regulated and intuitive investment vehicle.

«Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate,» said Andreas Sack, DekaBank’s product owner for digital assets custody, per the press release. «Today we make another important step towards laying the foundation for giving our institutional investors and millions of people in Germany access to this transformational opportunity.»

In July 2021, DekaBank was reportedly considering investing in bitcoin following a new German law that would let institutional funds, so-called Spezialfonds, put up to 20% of their holdings in BTC and other cryptocurrencies.

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Crypto Advice: 8 Of 10 High Net Worth Individuals Seek Guidance On Bitcoin

Institutional investors and high net worth (HNW) individuals’ adoption of crypto has dwindled because of the 2022 bear market. But before the start of the bear market, 2021 saw the rise of millionaires and institutional investors putting capital on the asset class.

However, even though the market environment is hostile in the last half of 2022, institutional investors and HNW individuals still have some faith in digital assets.

According to recent news, big investors are returning to bitcoin as a result of the recent market rally. This is evident as majority of millionaires have asked their financial advisors for guidance in investing in digital assets.

82% Of Investors Seek Knowledge On Crypto 

DeVere Group, a financial consultancy company, recently surveyed individuals with 1 million to 5 million euros of investable assets and they found out that 8 out of 10 high net worth individuals have asked about how to invest in virtual assets. This is surprising considering that 2022 saw some of the biggest bankruptcies and collapses in the industry.

Major breakdowns of institutions like Three Arrows Capital and FTX have shaken the market and the trust of institutional investors and HNW individuals. According to Nigel Green, the CEO of DeVere Group, even the seemingly conservative group wants to either increase exposure or include bitcoin in their portfolio. 

This means a lot for crypto and Web3 projects as more traction in the world of HNW individuals could also boost interest in institutional investors.

With digital asset ETFs already existing for investors, we might see more acceptance of digital currencies in the traditional financial space. However, this may be already happening as major financial entities also dive deep in crypto with their own digital asset investment vehicles. 

What Does This Mean For Bitcoin? 

The main argument against investing in crypto is its volatility and being unregulated asset class that exists outside of the law. This may seem a big contention, but the world of finance has evolved with countries even regulating digital assets, giving investors a  sense of security. 

The most recent rally of cryptocurrencies is also a sign that major investors are returning to pour capital in the market. With regulation coming around the corner, it may boost investor confidence and trust in the world of crypto. 

As 2023 moves forward, we should expect bigger capital inflows to the crypto industry as acceptance increases. With the growing popularity of top assets like Bitcoin, this reality is not far from happening.

Meanwhile, according to data from asset manager CoinShares, the last seven days saw the largest weekly rise in digital asset investment product inflows since July of last year, at more than $117 million.

Joseph Edwards, investment adviser at Enigma Securities, shares his thoughts on this:

“For the most part, people are more confident than they were a month ago in crypto.” 

This may indicate that bitcoin and other digital currencies are gaining ground in the broader market, analysts said.

At the time of writing, Bitcoin is trading at $22,850, down 0.6% in the last seven days.

Featured image from Forbes

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Names of People Who Posted SBF’s Bond Should be Made Public, US Judge Rules (Report)

Judge Lewis Kaplan in Manhattan reportedly ruled that the names of the two individuals who allowed Sam Bankman-Fried (SBF) to stay at his parents’ house under a $250 million bond should be made public. 

The former CEO of FTX faces several charges, including fraud and money laundering. His trial date is set for October 2, 2023.

  • According to a report by Reuters, Judge Kaplan ruled in favor of many media outlets, such as Bloomberg, CNBC, and The Washington Post, who insisted that the identity of those people should be disclosed.
  • The names will remain under seal until at least February 7 because “the question presented here is novel and an appeal is likely,” the magistrate outlined.
  • After spending a brief time in a Bahamian jail, the authorities extradited Bankman-Fried to the US, where he was expected to see the prison cell from the inside.
  • However, a New York federal judge ordered that he could live at his parents’ house under a $250 million bond. The 30-year-old must wear an electronic monitoring bracelet and is not allowed to leave the Northern District of California.
  • His attorneys previously declined to reveal the names of the sureties that enabled the bond, arguing they will suffer similar harassment as his parents.
  • The lawyers claimed that Ms. Fried and Mr. Bankman have recently received “a steady stream of threatening correspondence, including communications expressing a desire that they suffer physical harm.”
  • In addition, three mysterious men drove their vehicle into a metal barricade outside their house in California. Upon leaving the scene, they said: “You won’t be able to keep us out.” 

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Top 5 AI Cryptos Worth Investing In This February

There are numerous new cryptocurrencies that make use of the most recent advancements in artificial intelligence (AI) technology; however, only a select few of these AI-based cryptocurrencies are performing better in terms of their applicability and potential.

AI cryptos are currencies that enable blockchain systems for artificial intelligence. To use the platforms and reap the benefits of its integrated artificial intelligence, users must spend digital tokens.

AI and cryptocurrencies are currently two of the most fascinating technologies. As a result, an increasing number of AI-based cryptocurrencies and related projects are combining with the new technology to create creative products with practical applications.

We have examined the performance and recent developments of some of the top AI cryptos investors should monitor this February.

Top 5 AI Cryptos In The Market Today

SingularityNET (AGIX)

SingularityNET (AGIX) is our top pick for today’s AI cryptos list. SingularityNET is a decentralized Artificial Intelligence (AI) platform built on the Ethereum (ETH) and Cardano (ADA) smart contract blockchains (ADA).

The value of SingularityNET (AGIX) is anticipated to climb by 2007% by the end of 2025, hitting $0.62. Data from DigitalCoinPrice indicates that all technical indicators are optimistic.

SingularityNET has gained by 276% over the past 30 days, but declined by 7.6% over the past week.

Coingecko data indicate that AGIX is trading at $0.1713 at the time of writing.

Numeraire (NMR)

Numerai is an Ethereum-based platform that enables developers and data researchers to explore and design more reliable machine learning algorithms for stock market investments.

Numeraire (NMR) is Numerai’s native currency, permitting network-wide transactions. It is presently trading at $16.14, down from its 2019 high of $135.

Numerai, which was established in late 2015 in San Francisco, claims to be the first hedge fund to introduce a cryptocurrency to the market.

Fetch.ai (FET)

Fetch.ai’s FET token has risen 212% versus the US dollar over the past month. Despite a 24-hour decline of 6.56%, FET has gained 1.51% during the last seven days.

The Fetch.ai team said that the project develops “autonomous agent technology” for peer-to-peer applications with AI and automation features.

At the time of writing, FET is trading at $0.26, a decrease of 5.73% in the last 24 hours, per data from DigitalCoinPrice.

Ocean Protocol (OCEAN)

Ocean Protocol (OCEAN), a blockchain-based AI project, was trading at $0.3462, up 130% against the US dollar in the last 30 days.

The highest price ever reported for OCEAN was $1.93 on April 10, 2021. The current price is 82% less than the all-time high price of the token.

The World Economic Forum (WEF) has recognized Ocean Protocol as a technological pioneer for its ambitious plans to unleash data on a massive scale through the monetization of encrypted data.

Artificial Liquid Intelligence (ALI)

Rouning up our top 5 AI cryptos is the Alethea Artificial Liquid Intelligence Token. ALI is the native ERC-20 token that regulates, incentivizes, and rewards the diverse iNFT Protocol stakeholders.

ALI is trading at $1.83 at the time of writing, a decrease of 6.31% over the last seven days, according to data from Coinbase. In the previous 24 hours, ALI fell 9.35%.

ALI has a current market capitalization of 6,56 billion. A high market capitalization indicates that the market places a high premium on the asset.

Featured image from Cryptominded

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TRON Academy Sponsors Princeton Blockchain Club and Partners with TRON Climate Initiative

[PRESS RELEASE – Geneva, Switzerland, 30th January 2023]

TRON Academy has become the official sponsor of the Princeton Blockchain Club, the premier blockchain-focused student organization at Princeton University, whose goal is to build a vibrant and diverse network for Web3 natives on campus. TRON DAO is thrilled to be engaged with such a prestigious institution and such an innovative club with a kindred focus on educating the next generation of blockchain developers.

TRON Academy continues to expand its empowering presence on a growing number of college campuses, including a recent workshop at the University of California at Irvine. Blockchain at UCI is an ecosystem for blockchain education, development, and networking at UC Irvine and surrounding areas. They collaborate with industry leaders to host events with blockchain companies in pursuit of identifying efficient and practical blockchain technologies as well as helping students in Orange County develop the necessary skills for a blockchain career. Thursday and Friday, January 26 and 27, 2023, Blockchain at UCI hosted the TRON DAO team for a workshop focused on the basics of Web3 and the potential development opportunities available in the TRON ecosystem.

TRON Academy also recently launched a research competition in collaboration with the TRON Climate Initiative. Ambitious and creative university students who are passionate about a more sustainable blockchain future are invited to submit their work. Interested student groups should conduct research then write papers exploring the environmental impact of blockchain technologies as well as suggesting any potential eco-friendly strategic solutions. Winning teams will have the opportunity to have their research paper published on the TRON Climate Initiative website and receive funding for their organization’s efforts.

Here are the details about the competition:

TIMELINE:

  • January 27, 2023 _ announce and start accepting early submissions
  • February 2023 _ officially accepting submissions from higher-ed student organizations
  • March 2023 _ follow up and check in on TRON Academy organizations’ progress
  • April 2023 _ review and judge TRON Climate Initiative research papers
  • May 2023 _ hold a virtual event to announce winners and award prizes

PRIZES:

Prizes will be awarded to ten winners in tiered distribution from first through tenth place. The total of prizes distributed will be 7,000 USDD.

  • 1st Place: 1,500 USDD
  • 2nd Place: 1,250 USDD
  • 3rd Place: 750 USDD
  • 4th through 10th Place: 500 USDD
  • Grand Total: 7,000 USDD

REQUIREMENTS:

  • All papers must be submitted in English and adhere to standard academic formatting guidelines.
  • Teams must consist of a minimum of three members and a maximum of five members.
  • Teams must be registered as students at a college or university and provide the contact information of an administrator or faculty sponsor (at least provide proof of current school attendance/registration).
  • All papers must be submitted via the TRON Climate Initiative website by the deadline provided.
  • All papers must include a thorough and accurate analysis of the current state of blockchain technologies and their environmental impact.
  • All papers must also include a comprehensive exploration of potential strategies and eco-friendly solutions that could be implemented to reduce environmental impact.
  • All papers must be original, unpublished works and must not have been submitted to any other organization or competition (teams can build on and expand previous research and writing, however).
  • The student team members must write all content submitted for this competition (no faculty-written content).

TOPIC SUGGESTIONS:

  • Exploring the Potential of Carbon Offsets in the Blockchain Industry
  • Analyzing the Impact of Different Consensus Mechanisms
  • Examining the Renewable Energy Potential of Blockchain Technologies
  • Investigating the Impacts of Data Centers on the Environment
  • Harnessing the Power of Blockchain for Sustainable Development
  • Evaluating the Benefits of Decentralized Cloud Storage Solutions
  • Examining the Impact of Blockchain on the Global Carbon Footprint
  • Analyzing the Possibilities of Blockchain-Powered Eco-Friendly Supply Chains
  • Assessing the Benefits of Blockchain-Based Renewable Energy Trading
  • Exploring the Potential of Regulatory Policies to Support Sustainable Blockchain Solutions

Be the first to know all that’s happening with the TRON Climate Initiative and the TRON Academy program by subscribing to the TRON DAO newsletter. If you have questions about the competition, please send an email with the subject line “Climate Research Competition” to press@tron.network. If you are interested in learning more about TRON Academy, fill out this inquiry form.

About TRON DAO

TRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps.

Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network has gained incredible traction in recent years. As of January 2023, it has over 138 million total user accounts on the blockchain, more than 4.7 billion total transactions, and over $11.2 billion in total value locked (TVL), as reported on TRONSCAN. In addition, TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin across the globe, overtaking USDT on Ethereum since April 2021. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. In May 2022, the over-collateralized decentralized stablecoin USDD was launched on the TRON blockchain, backed by the first-ever crypto reserve for the blockchain industry – TRON DAO Reserve, marking TRON’s official entry into decentralized stablecoins. Most recently in October 2022, TRON was designated as the national blockchain for the Commonwealth of Dominica, which is the first time a major public blockchain partnering with a sovereign nation to develop its national blockchain infrastructure. On top of the government’s endorsement to issue Dominica Coin (“DMC”), a blockchain-based fan token to help promote Dominica’s global fanfare, seven existing TRON-based tokens – TRX, BTT, NFT, JST, USDD, USDT, TUSD, have been granted statutory status as authorized digital currency and medium of exchange in the country.

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Solana (SOL) Is The Biggest Opportunity This Cycle, Venture Capitalist Claims

Solana (SOL) Is The Biggest Opportunity This Cycle, Venture Capitalist Claims

Chris Burniske, a co-founder of Placeholder VC, a venture capital firm that invests in decentralized networks and Web3 services, laid out his bull case for Solana in a new episode of the Bankless Podcast.

The analyst was one of the few Solana’s proponents who believed in the network’s potential, even after the FTX collapse and the SOL price crash to $8.05 on Dec. 29, 2022. In the podcast, Burniske reiterated his bullish stance for Solana as a network, as well as the SOL token and its price.

Why Solana Is Having The Biggest Bull Case

According to Burniske, Solana is at an early stage at this point, like Ethereum was in 2018. Even though Ethereum is currently “a much harder asset,” Solana is “on the path to harden its asset and will continue to do so.”

When asked if the SOL token will follow a similar path as Ether, which has become a form of money with its decreasing supply, the analyst said:

Yes. I expect an evolution. When I look at SOL’s inflation, and Placeholder has an internal tracker, it is 6% annually which is quite low from a yielding perspective for the people who are putting up capital.

The reason for this is the current inflation of Solana to its peers. While ETH clearly tops the list with 0-1%, Solana ranks second with 6%, while other networks like Near with 20% and Avalanche with 22% have significantly higher inflation.

“The reason why this is super relevant is that valuation of proof of stake assets finds their footing around those yield rates, and I am not denying that ETH has the best setup and it’s the most mature,” Burniske elaborated.

He further explained, “But the lower the yield is that basically implies to me the lower risk the validators views the asset is having and so they will tolerate lower rates of inflation.” This is an indicator of the strength of the network.

While other networks require inflation rates twice or three times as high to retain their validators, Solana requires much less monetary incentive.

In terms of fees, only Ethereum can stand up to Solana as well. As Burniske elaborates, on a 24-hour basis, these are $15,000 for Solana, which is double that of Avalanche, triple that of Filecoin, and 6-7 times that of Cosmos Hub, with Ethereum, again boasting “100x” in fees, as the analyst acknowledged.

One metric that Burniske didn’t mention, but is still very noteworthy, is daily active addresses. As the chart below shows, Solana ranks first with 451,200 daily active addresses, followed by Ethereum (373,200), Polygon (346,100), NEAR (64,700), Avalanche (39,900), and Aptos (15,000).

Is SOL Price Undervalued?

Based on fundamental strength, Burniske believes Solana is the most undervalued ecosystem. The Placeholder VC co-founder explained that in every bear market, his company picks one or two assets and builds an “aircraft carrier strategy” around that ecosystem, and in the last bear market, it was ETH and Bitcoin.

“What I mean by aircraft carrier is if you take Ethereum, we buy a bunch of the core ETH assets and then venture fund around it, to really get to know that ecosystem. […] And then you can pick the best teams,” Burniske explained and revealed that Cosmos and Solana are those two assets currently.

Burniske also had a tip for the podcast’s listeners. While explaining that Solana’s venture stage valuations are right where Ethereum’s 2018/2019 valuations were, he revealed, “One that your user could check out is Tensor Trade, an NFT trading platform. Its closest analog would be Blur within Ethereum.”

At press time, the SOL price stood $23.76, seeing a rejection at the crucial resistance level of $26.13.

Solana SOL USD price

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Dogecoin Jumps 8%, Bitcoin Slips Below $23K (Market Watch)

After failing to overcome $24,000 yesterday, bitcoin took a serious dive and dropped by over $1,500 at one point.

Most altcoins are in the red today as well, as they were yesterday. However, Dogecoin emerges as today’s top performer, following news on the Twitter front.

Bitcoin Below $23K

As CryptoPotato reported earlier today, January 2023 is en route to becoming the asset’s best-performing month in over a year. This is because BTC stood below $17,000 at the start of the year and has skyrocketed by roughly 40% in the following 31 days.

It was even higher yesterday when the bulls initiated another impressive leg-up that resulted in coming inches away from $24,000. This became BTC’s highest price point since mid-August 2022.

However, the bears were quick to remind of their presence and pushed bitcoin south almost immediately. In the following hours, the cryptocurrency fell to $23,000 and kept plunging to an intraday low of $22,400 (on Bitstamp).

Despite recovering some ground since then, BTC still struggles below $23,000. Its market cap is down to $440 billion, and its dominance over the alts has taken a minor hit and is now at 42.4%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

DOGE Pumps 8%

Most altcoins charted impressive gains at the end of last week, but the trends have changed now. Ethereum went well above $1,600 during the weekend, but two consecutive days of price drops have pushed it to $1,570 as of now.

Ripple, Cardano, Polygon, OKB, Solana, Polkadot, and Avalanche are also slightly in the red from the larger-cap alts.

Binance Coin, Shiba Inu, and Litecoin are among the few exceptions with insignificant gains. Dogecoin, however, stands out as today’s top performer. DOGE is up by 8% as Elon Musk hinted that Twitter could soon integrate crypto payments.

The cumulative market cap of all crypto assets, though, has seen over $15 billion gone in a day and is down to $1.040 trillion on CMC.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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Alameda Sues Voyager in Attempt to Recoup Loan Repayments

The FTX Group’s bankruptcy proceedings have seen their fair share of surprising, if not downright hilarious, moments.

A motion filed on the 30th of January continues in the spirit of prior ones, seeking to absolve FTX Leadership of all responsibility.

Loan Repayment Requested

Earlier this year, Voyager Digital was forced to file its own Chapter 11 bankruptcy case. At the time, FTX made Voyager a buyout offer, which was refused. SBF then lashed out at the latter, accusing it of attempting to squeeze more money out of customers via bankruptcy proceedings.

Voyager Digital returned the favor, claiming that SBF made false assertions about the bankruptcy case, and blasted him for going public with the details of the proposed deal.

However, times have changed, and the FTX Group is now in the hot seat along with Voyager. As part of the firm’s efforts to repay customers, Voyager has requested the repayment of its loans to FTX.

According to the filing, the sum repaid adds up to $445.8 million, spread across three payments: a $3.2 million interest one made in August, as well as $248.8 million and $193.9 million loan repayments in September and October, respectively. Now, FTX wants that money back.

Accusing Voyager of Failing to Do Due Diligence

Since the loans were repaid shortly before FTX went bankrupt, lawyers for the FTX Group have filed a motion requesting the repayments be returned to Alameda. The filing also claims that Alameda’s bankruptcy is partly the fault of Voyager and other firms, who allegedly neglected to carry out due diligence and misused customer funds. Pot, meet kettle.

“The collapse of Alameda and its affiliates amid allegations that Alameda was secretly borrowing billions of FTX-exchange assets is widely known. Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager (…) who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly. (…) To that end, Voyager lent Alameda hundreds of millions of dollars worth of cryptocurrency in 2021 and 2022.”

To sum it up, Alameda’s lawyers appear to be stating that the misconduct at Alameda was at least partly fueled by Voyager, who enabled the SBF-founded company to continue flouting its own rules.

As a result, FTX Group lawyers see the repayment of their debt to Voyager unfavorably and request that the money be returned to Alameda’s pockets.

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XRP Lawyer Scores Crucial Victory For Ripple And Crypto

Even though the legal battle between Ripple and the U.S. Securities and Exchange Commission was not heard yesterday, Ripple, XRP, and the entire crypto industry won an important partial victory in its fight against the SEC’s overreaching regulation by enforcement, thanks to attorney John E. Deaton.

In yesterday’s appeal hearing, the SEC sought an affirmation from the New Hampshire district court judge issuing a broad, vague injunction against the sale of the LBRY token, in which the token itself becomes a security, bringing secondary market sales under the SEC’s jurisdiction.

This could not only be disastrous for XRP sales on the secondary market but for all cryptocurrencies, except Bitcoin, which has already been declared a non-security by the SEC. In a recent video for Crypto Law TV, Deaton – who is also representing 75,000 XRP holders in the SEC vs. Ripple case – covered what happened in the courtroom.

“We all know that the SEC likes to have maximum law enforcement capabilities available. That’s why we got involved,” he said, further reporting that the judge did a great thing. “He basically looked over to the SEC and said, you agree with him […] Everybody was imagining that … Do you agree with Deaton?”

This showed that the judge was willing to put his November 07, 2022, ruling into proper perspective. At that time, he granted summary judgment in favor of the U.S. Securities and Exchange Commission and classified every sale of the LBC token over a six-year period as an investment contract without detailing the nature of the transactions.

This opened a door for the SEC to move closer to its goal of getting legitimacy through ruling to get the legitimacy of regulatory oversight of the secondary market as well. Yesterday, however, the judge made it clear that the ruling was being misinterpreted by the SEC.

Related Reading: Ripple Hits New UNL Decentralization Milestone, Here Are The Participants

The judge said that the SEC needs to commit to something and described two examples. The judge explained one example in which LBRY sold its LBC token to an investment club that held it in cold storage – a direct sale. The judge said that he considers this to be an offering of an unregistered security and the SEC agreed.

The second example he gave was of the secondary market. Deaton reported:

And then the judge said but if Flipside sells it to someone else on the secondary market, independent of LBRY, you have to agree that my order does not apply to this scenario. And that’s the victory that we got. The SEC had to concede it on the record, in real time.

Remarkably, the judge turned to Deaton afterward and told him: “amicus, I’m going to make it clear that my order does not apply to secondary market sales.”

This Is Why The Victory Is Crucial For Ripple And XRP

The judge committed that he would make clear in the final remedy that he is not ruling on the secondary market. The SEC has openly admitted in court that it does not consider secondary sales to be securities. This is a huge partial victory for the entire crypto industry, but also Ripple, as Deaton further commented:

This hearing today if you think we are getting regulations by congress soon, then the ruling is irrelevant because congress will give us clarity. If we’re not going to get any clarity from congress, there’s not going to be some regulation that says something that defines a security, […] then this hearing was extremely important.

At press time, the XRP price stood at $0.3955, down 3.8% in the last 24 hours. With this, XRP is following the general sentiment in what is likely to be a risk-off move ahead of tomorrow’s FOMC meeting.

Ripple XRP USD price

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Bitcoin Sees Best Month Since Oct 2021 as Exchange Flows Normalize: Glassnode

Bitcoin has added 38% to its USD value since the beginning of the month when it was priced at around $16,846. This has made January the asset’s best-performing month since October 2021, when it notched up 41%, according to Glassnode.

The current rally was “fuelled by both historic spot demand and a sequence of short squeezes,” the analytics firm noted in its weekly report on Jan. 30.

It also reported stabilization in exchange flows following the FTX collapse and panic exodus from centralized exchanges.

“We also note that initial impulse of exchange outflows, in the aftermath of FTX have calmed to neutral, and are now balanced by newly motivated inflows.”

Bitcoin Exchange Movements Normalize

Glassnode also noted that Bitcoin on-chain transactions spiked by over 50,000 per day over the past week. “We cannot see a corresponding increase in exchange deposits or withdrawal counts,” it added.

Exchange-related transactions accounted for 35% of the total, a metric that has been declining since May 2021. Even though exchange flows have normalized since the FTX collapse, the amount of BTC held on them is still in decline.

The total balance of Bitcoin stored on trading platforms is around 2.25 million BTC, the report said. This represents 11.7% of the circulating supply and is at a multi-year low last seen in February 2018.

Glassnode added that the total amount of BTC flowing into and out of exchanges was around $625 million per day in both directions. This shows that exchange flows are now evenly balanced following the turmoil of late 2022, when it was largely outflows.

“Today, exchange net-flows have returned to neutral, reflecting a cooling down of outflows,”

Most of the exchange activity for the month has been whales (addresses with more than a thousand BTC), it noted. In January, whales contributed between $185 million and $215 million to total exchange inflows and outflows.

BTC Price Outlook

BTC prices have taken a dip today, dropping 3% to $22,887 at the time of writing, according to CoinGecko. The asset came close to $24,000 on Jan. 30, but resistance proved to be too strong there.

Bitcoin prices have remained sideways for the past seven days but are up 8% in the past fortnight. Most of the gains in this rally were made in early January, hinting that it may be running out of steam.

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Breaking News – Why Alameda Research Is Suing Voyager Digital For $446 Million

The messy FTX narrative took an intriguing turn on Tuesday when FTX’s sibling firm, Alameda Research, slapped another bankrupt cryptocurrency lender, Voyager Digital, with a lawsuit.

Reuters reports that Alameda is attempting to recover approximately $446 million given to Voyager prior to its own bankruptcy filing. The payments are related to crypto debts secured by Alameda from Voyager prior to the latter’s bankruptcy filing in July.

In a court filing, FTX asserted that it paid Voyager almost $249 million in September and approximately $194 million in October on behalf of Alameda. In August, FTX also made a $3.2 million interest payment, court documents show.

Alameda Wants The Money Back

According to court records seen by Bloomberg, Alameda is attempting to recover the monies under bankruptcy laws designed to ensure that no creditor is favored over another.

Due to the proximity of those loan payments to the crypto exchange’s own bankruptcy declaration, those funds are subject for recovery and might be used to reimburse other FTX creditors, FTX’s complaint documents disclosed.

Legal counsels representing the Sam Bankman-Fried-led FTX claims that Voyager contributed to the downfall of the exchange by “knowingly or irresponsibly” diverting customer cash to Alameda. Incidentally, FTX had sought to acquire Voyager before it went belly up in November.

According to the court filings, Alameda referred to Voyager as a “feeder fund.” In addition, court documents reveal that little to no due diligence was conducted prior to investing retail client funds.

What’s A ‘Feeder Fund?’

A feeder fund is a form of investment fund into which hedge fund investors place their capital, which is then transferred to a master fund. The master fund, not the feeder fund, is eventually used by the hedge fund’s investment advisor to invest in the market.

FTX stated that Voyager’s business model was that of a feeder fund. It sought individual investors and placed their money in bitcoin investment funds such as Alameda and Three Arrows Capital with little or no due research.

On Monday, Alameda’s attorneys filed the following complaint in bankruptcy court:

“Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager and other cryptocurrency ‘lenders’ who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly.”

Clawing Back $446 Million, Plus Legal Fees

In its complaint, Alameda stated that Voyager had offered the company credit in a variety of digital currencies. Alameda stated that it intends to pursue the $446 million in damages on top of any further compensation, which might include legal fees.

The failure of FTX, formerly a $32 billion cryptocurrency exchange empire, has broken investor faith in cryptocurrencies. Market participants are attempting to determine the depth of the harm and how it will affect the sector in the coming years.

FTT Token Price Drops

Its founder, Sam Bankman-Fried, has been charged with fraud, and numerous high-ranking sidekicks, including Alameda Research CEO Caroline Ellison, have pled guilty to fraud.

Bankman-Fried, who is presently under house arrest at his parents’ home in California and is slated to stand trial in October, has denied all of the charges thrown against him.

Meanwhile, FTX’s native cryptocurrency FTT was trading at $1.90, retreating by nearly 5% in the last 24 hours at the time of writing, according to monitoring by Coingecko. In the last two weeks, FTT has lost around 24% of its value.

Featured image by Digital Dealer

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Digital Asset Inflows Hit $117M Last Week, Largest in Six Months

Digital-asset products saw inflows totaling $117 million last week, according to the crypto investment firm CoinShares. This marks the largest inflow recorded since July 2022.

Subsequently, the total asset under management (AuM) increased to $28 billion, recovering by 43% since the lows of November.

  • Bitcoin-tied investment funds alone recorded $116 million in inflows last week. Minor inflows into short-bitcoin of $4.4 million were also noted during the same time frame.
  • Strong inflows came as Bitcoin climbed above $23,000 after surging by well over 40% year-to-date.
  • Despite the market recovery in the past few weeks, investors are still cautious, preferring select investments. This trend was indicated by the continued outflows for the 9th consecutive week in multi-asset investment products that added up to $6.4 million.
  • Altcoins such as Solana, Cardano, and Polygon recorded inflows, while Bitcoin Cash, Stellar, and Uniswap saw minor outflows.
  • The report also found that inflows associated with blockchain equities stood at $2.4 million. However, gauging across providers demonstrated a “polarized sentiment.”
  • The report further said that investment product volumes were up by 17% compared to the YTD average and are improving. Data shows that $1.3 billion were traded for the week.
  • A similar trend was seen by the broader digital asset market, which witnessed average weekly volumes surge by 11%.
  • Germany dominated with the largest inflows in terms of geography, recording $46 million. Trailing behind was Canada, the United States, and Switzerland, with $30 million, $26 million, and $23 million in inflows, respectively.

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Dogecoin Price Prediction: Doge Could Rally Further To $0.10

Dogecoin Price Prediction: Doge Could Rally Further To $0

Dogecoin is gaining pace above the $0.088 resistance against the US Dollar. DOGE could rise further if there is a close above the $0.093 resistance.

  • DOGE gained pace and traded above the $0.088 resistance against the US dollar.
  • The price is trading above the $0.088 zone and the 100 simple moving average (4-hours).
  • There is a crucial bullish trend line forming with support near $0.0868 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
  • The pair could rise further if there is a clear close above the $0.093 resistance.

Dogecoin Price Eyes More Gains

After forming a base above the $0.080 zone, dogecoin price started a steady increase. DOGE was able to slowly climb higher above the $0.082 and $0.085 resistance levels.

There was a clear move above the $0.088 resistance zone to move further into a positive zone. However, the bears were active near the $0.092 and $0.093 resistance levels. The price is now consolidating gains above $0.090, unlike bitcoin and ethereum (correcting lower).

Doge price is trading above the $0.088 zone and the 100 simple moving average (4-hours). There is also a crucial bullish trend line forming with support near $0.0868 on the 4-hours chart of the DOGE/USD pair.

Recently, there was a minor decline from the $0.0948 high. It traded below the 23.6% Fib retracement level of the upward move from the $0.0844 swing low to $0.0948 high. On the upside, the price is facing resistance near the $0.0925 level. The first major resistance is near the $0.0930 level.

Dogecoin Price Chart

Source: DOGEUSD on TradingView.com

A clear move above the $0.093 resistance might send the price towards the $0.098 resistance. Any more gains might send the price towards the $0.100 level. A clear move above the $0.100 resistance could open the gates for an increase towards the $0.112 level.

Dips Supported in DOGE?

If DOGE price fails to gain pace above the $0.093 level, it could start a downside correction. An initial support on the downside is near the $0.090 level.

The next major support is near the $0.088 level or the 61.8% Fib retracement level of the upward move from the $0.0844 swing low to $0.0948 high. If there is a downside break below the $0.088 support, the price could decline further. In the stated case, the price might decline towards the $0.086 level and the trend line.

Technical Indicators

4-Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.088, $0.0860 and $0.0820.

Major Resistance Levels – $0.092, $0.093 and $0.098.

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Ethereum Price Won’t Go Down Quietly: Key Supports To Watch

Ethereum Price Won’t Go Down Quietly: Key Supports To Watch

Ethereum started another downside correction below $1,600 against the US Dollar. ETH is trading above $1,550, but it might face resistance near $1,600.

  • Ethereum is correcting gains from the $1,650 and $1,660 levels.
  • The price is now trading below $1,620 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support at $1,575 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could attempt a fresh increase if there is a clear move above the $1,600 resistance.

Ethereum Price Starts Correction

Ethereum price made another attempt to clear the $1,660 resistance zone. However, ETH failed to surpass the $1,660 and started a downside correction, similar to bitcoin.

There was a move below the $1,640 and $1,620 support levels. There was also a break below a major bullish trend line with support at $1,575 on the hourly chart of ETH/USD. The pair even spiked below the $1,550 level and traded as low as $1,530.

Ether price is now trading below $1,620 and the 100 hourly simple moving average. There was a minor recovery wave above the $1,550 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,659 swing high to $1,530 low.

An immediate resistance is near the $1,580 level. The next major resistance is near the $1,600 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the downward move from the $1,659 swing high to $1,530 low.

Ethereum Price

Source: ETHUSD on TradingView.com

An upside break above the $1,600 resistance zone could start a decent increase. In the stated case, the price may perhaps rise towards the $1,660 resistance. Any more gains might send ether towards the $1,720 level.

More Dips in ETH?

If ethereum fails to clear the $1,600 resistance, it could continue to move down. An initial support on the downside is near the $1,550 level.

The next major support is near the $1,515 level. If there is a break below $1,515, the price might drop towards the $1,450 support. Any more losses might call for a retest of the $1,320 zone in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,515

Major Resistance Level – $1,600

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Bitcoin Price Hints At Potential Correction, Buy The Dip?

Bitcoin Price Hints At Potential Correction, Buy The Dip?

Bitcoin price started another downside correction below $23,250. BTC remains at a risk of more downsides before the bulls appear near $22,200 or $22,000.

  • Bitcoin started a downside correction and traded below the $23,500 zone.
  • The price is trading below $23,200 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $23,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could decline further towards the $22,000 support unless it climbs above $23,250.

Bitcoin Price Starts Correction

Bitcoin price gained pace for a move above the $23,500 resistance zone. BTC even climbed above $23,800, but it struggled to clear the $24,000 resistance zone.

A new swing high was formed near $23,950 and the price saw a downside correction. There was a clear move below the $23,500 and $23,200 support levels. Besides, there was a break below a key bullish trend line with support near $23,000 on the hourly chart of the BTC/USD pair.

A low is formed near $22,519 and the price is now correcting losses. Bitcoin price is now trading below $23,200 and the 100 hourly simple moving average.

It is trading just above the 23.6% Fib retracement level of the recent decline from the $23,950 swing high to $22,519 low. An immediate resistance is near the $23,000 level. The next major resistance is near the $23,200 zone or the 100 hourly simple moving average.

Bitcoin Price

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $23,950 swing high to $22,519 low is also near the $23,250 zone, above which the price might start a strong increase. In the stated case, the price may perhaps rise towards the $23,650 level. The next resistance could be near the $24,000 level. Any more gains might send btc price towards the $25,000 level.

More Downsides in BTC?

If bitcoin price fails to clear the $23,250 resistance, it could continue its downside correction. An immediate support on the downside is near the $22,650 zone.

The next major support is near the $22,500 zone. A downside break below the $22,500 level might send the price towards the $22,200 level. Any more losses might send the price to $22,000 in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $22,500, followed by $22,200.

Major Resistance Levels – $23,000, $23,250 and $23,800.

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Why Binance Opened 90% Of Accounts Closed For An U.S. Investigation

Following the collapse of the crypto exchange FTX, most global regulators intensified their watch on crypto-related activities and platforms like Binance. As a result, some have opened investigations on most of the crypto industry’s prominent crypto exchanges and trading platforms. 

Crypto exchange Bitzlato has been under investigation by the United States Department of Justice (DoJ). The watchdog has unveiled some incriminating facts regarding money laundering activities on the platform. Subsequently, the US DoJ charged the crypto exchange’s founder and majority owner for unlicensed money transfers.

According to a recent report from FinCEN, the leading crypto exchange Binance is noted as the most significant Bitcoin counterparty for Bitzlato.

Some huge transactions from Bitzlato used Binance as their landing custody after trying to conceal the source of the illicit funds. Hence, Binance has been closing some accounts on its platform related to Bitzlato’s probe into money laundering, as noted by some users. 

Customers Lament About Their Blocked Accounts

Following the account blocks on Binance, some Russian-speaking customers complained on Telegram. The users created a Telegram group chat on January 18 to complain about their inability to withdraw funds from their accounts on the exchange platform. They noted that Binance implemented the measure without warning users.

Over 1,000 users are affected by the measure. The users believe their accounts were blocked due to the recent US Department of Justice enforcement action against Bitzlato. 

Some users have been expressing confusion and outrage regarding the action against this crypto exchange. However, most members have confirmed using Bitzlato and Binance accounts to complete some transactions. 

One of the chat users stated that it makes no sense to close accounts related to Bitzlato. He noted that “unless proven guilty, actions should not be taken based on mere accusations,” as in the case of Bitzlato. Other members of the group chat classified the measure as “unlawful.”

Binance Unlocks 90% Of Previously Blocked Crypto Accounts

A spokesperson for Binance confirmed that the exchange’s measure to close accounts was related to the Bitzlato investigatory case. In addition, the representative noted that Binance’s compliance and investigation team suspended several accounts of customers from many countries with the CIS and Eastern Europe. 

Further, the spokesperson noted that the measure was temporary as the exchange unlocked 90% of the blocked accounts. Binance has notified the users about the decision to re-open their accounts with all funds intact.

However, the representative stated that less than 20 accounts are still blocked. The exchange has released all the necessary law enforcement documentation for affected users.

Additionally, Binnace directed its users to the exchange’s policies to understand some reasons that could lead to an account being blocked by the platform. Such knowledge will help users avoid illegal transactions on the trading venue. 

90% Of Blocked Crypto Accounts On Binance Amid Bitzlato Investigation Now Open

Binance’s CEO Changpeng Zhao (CZ) has indicated the vigorous efforts of the exchange to block illicit fund transfers on the platform. For example, on January 16, CZ reported how Binance was instrumental in freezing the accounts of a group of hackers and helping the Huobi crypto exchange to recover 124 BTC.

Featured Image from Pixabay, tookapic | Charts by TradingView.

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Binance Taps Mastercard to Introduce Crypto Prepaid Card in Brazil (Report)

The world’s largest cryptocurrency exchange – Binance – joined forces with the multinational financial services giant – Mastercard – to launch a prepaid card in Brazil. 

The partners previously rolled out such a feature in Argentina.

  • As reported by Reuters today (January 30), the Binance card is still in beta testing and should be available to users in the following weeks. 
  • It comes as a result of the exchange’s goal to “broaden the connection between traditional finance and crypto.”
  • Binance said Brazil is among its key markets, while new and existing customers will be allowed to use the card in every shop that employs Mastercard’s payment services.
  • The entities teamed up last summer for a prepaid cryptocurrency card in Argentina, which provides up to 8% cashback in BNB for specific purchases. 
  • Clients can withdraw a maximum of 45,000 pesos ($241) per day or up to 180,000 pesos ($964) per month. Daily purchases are limited to 90,000 pesos ($482), while monthly buys cannot exceed 360,000 pesos ($1,929).
  • The prepaid cards launched in Brazil and Argentina could boost the interest in digital currencies and improve financial inclusion in the region.
  • Despite being the largest financial market in South America, tens of millions of Brazilians lack access to basic monetary services. On the other hand, locals are among the global leaders in cryptocurrency adoption, with 41% of the surveyed admitting they are HODLers.
  • The situation is similar with its South-Western neighbor – Argentina. Digital assets, specifically bitcoin and stablecoins, have become increasingly popular due to the country’s political turmoil, galloping inflation, and general financial issues. 

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Bitcoin Spiked to $23,960, But Traders Are Not Very Greedy

Bitcoin Spiked to $23,960, But Traders Are Not Very Greedy

Sentiment data reveals that the Bitcoin price upwards trend from November lows to as high as $23,960 on January 30 was marked by “sober” traders.

Bitcoin Traders Are Not Greedy

Per the Fear and Greed Index, the 40% surge of BTC prices to January highs is unlike other periods in the coin’s boom and bust cycle. When BTC rose to bottom-up from November lows following the FTX contagion, the Fear and Greed Index spiked to a maximum of “55”.

Although this is still “Greed,” indicating a possible Fear of Missing out (FOMO) amongst traders, it is suppressed compared to the 2018 to 2019 cycle.

By overlaying the sentiment index’s reading with BTC prices over months and years, it is clear that the spike to spot levels was approached with caution and even levels of risk management.

Fear gripped the market in late 2018 when prices sank below $4,000. However, once prices began turning around ahead of the Bitcoin halving in 2019, traders doubled in droves, forcing the index reading to “69”, the Greed territory, from “21.”

Even after a minor retracement, the index’s reading was persistently above the “60” mark throughout late Q4 2018 and H1 2019, pointing to general confidence by traders and investors.

Bitcoin Price on January 30 (2)
Sentiment and Bitcoin Correlation

A big part of BTC’s price action is shaped by how market participants perceive prevailing market conditions. Hype can trigger demand, and prime volatility as billions of dollars pour into Bitcoin. The crypto space is new and still needs a regulatory framework.

Crypto regulations are being developed and improved across the board. Complex products, including Exchange-Traded Funds (ETFs), may be approved months ahead. Whether they are given the go-ahead depends on the availability of monitoring tools aimed at preventing price manipulation.

The former United States Securities and Exchange Commission (SEC) Chair, Jay Clayton, cited the absence of sufficient monitoring tools as one of the reasons for rejecting the launch of an ETF tracking the spot price of Bitcoin.

Traders are confident Bitcoin has turned the corner, shaking off the bears of November. However, considering the state of the general economy and inflation readings, BTC and crypto prices remain in a precarious position.

Beyond macroeconomic factors, the surge of BTC prices is at the back of decreasing stablecoin deposits to cryptocurrency exchanges. Historical data shows a direct correlation between stablecoin issuance and BTC prices.

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Bitcoin Soars In Nigeria As Government Promotes Digital Cash

Bitcoin (BTC) has seen an exponential increase in demand in Nigeria as the country’s central bank encourages the population to switch to digital cash. As a result, the price of Bitcoin has escalated tremendously above global market levels. 

The cost of one Bitcoin on Nigeria’s Crypto exchange NairaEx is currently trading at around 17.6 million Naira, Nigeria’s currency, equivalent to $38,200 U.S. dollars. This represents an increase of almost 60% compared to Bitcoin’s current price of $23,150 as of this writing. 

Nigeria Bets On Bitcoin And Digital Assets Adoption 

The Bitcoin pump in this Nigeria’s cryptocurrency exchange comes after the country’s central bank began limiting over-the-counter (OTC) cash withdrawals by individuals and corporate organizations per week. 

This withdrawal limit policy only allows Nigerians to withdraw a maximum of 20,000 Naira (NGN), worth about $43, from the country’s ATMs per day, and with a limit of 100,000 NGN, worth $217.

The letter published in December 2022, in which the Central Bank of Nigeria redesigned its policy regarding cash withdrawal limit, has resulted in a premium being added to the price of Bitcoin in the African country. 

This measure aims to allegedly eliminate money laundering and reduce inflation in the African country, which in the last report of Nigeria’s inflation rate was 21.34% in December 2022. It fell slightly from a peak of 21.47%.

The Central Bank of Nigeria also gave Nigerians until January 24 to exchange their old higher-denomination banknotes for the new currency. This measure caused unrest in the population; people reported that the deadline was too short, which led to an extension. 

Nigeria’s Long Relationship With Crypto Assets

The Central Bank of Nigeria has come a long way in embracing digital currencies. In 2021, the Central Bank issued a circular to all financial institutions to stop providing services to crypto exchanges. It also called for the closure of accounts of individuals and companies that actively use cryptocurrencies and trade in digital assets.

A few months later, Nigeria planned to pass a law recognizing Bitcoin and digital assets as capital for investment. This industry has generated a lot of interest and alternatives to diversify capital and provide solutions to economic problems in different countries.

This law was implemented after the country’s central bank failed to introduce a Central Bank Digital Currency (CBDC). This digital asset, called the e-Naira, was poorly accepted and adopted by the population last year, with an adoption rate of 0.5%.

Nigeria has also been in talks with Binance, the world’s number one crypto exchange, to develop an economic zone to support crypto and blockchain businesses in the region.

Bitcoin has begun a correction as of press time, falling 4.6% in the last 24 hours. And 0.1% down in the last seven days in the global markets. Investors expect the Federal Open Market Committee (FOMC) meeting tomorrow to have an impact in the price action. 

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Sorare Partners With The Premier League For a Fantasy Football Game

On January 30, Sorare, a Paris-based startup specializing in blockchain-based fantasy football games, announced its partnership with the Premier League, the top tier of English football leagues. The collaboration will launch digital cards featuring Premier League players for the Sorare game.

Sorare’s fantasy football game is currently valued at $4.3 billion, and the terms of the multi-year agreement with the Premier League have not been disclosed. However, it is estimated to be worth more than the initial £30 million deal that was announced in October 2022.

Sorare - Premier League Announcement. Image: Twitter
Sorare – Premier League Announcement. Image: Twitter

Besides football, Sorare also offers NFT trading cards for basketball and baseball fans thanks to its partnerships with the NBA and the MLB, respectively. Both options feature all the clubs affiliated with those leagues. But football fans have way more options to choose from, considering that Sorare offers over 300 officially licensed football clubs, according to its main site.

Such a major roaster includes major European leagues, so users can compete with global football legends such as Lionel Messi, Cristiano Ronaldo, or Gerard Piqué.

Sorare Users Can Choose Any Premier League Player

Thanks to this new partnership, Sorare users will be able to choose some of the biggest stars of English football, such as Tottenham Hotspur’s Harry Kane or Manchester City’s Erling Haaland, as their licensed players to collect and trade.

“Football fans around the world can now collect, buy, sell, and trade officially licensed digital cards featuring every player from across the Premier League’s 20 clubs — building and competing with custom teams to win big rewards, just like a professional club owner.”

Sorare’s new endeavor is a free NFT game that lets users choose eight players and participate in free competitions twice a week, competing against managers from different countries for rewards based on the real-life performance of their players.

The Premier League Wants to Keep Evolving Football

Richard Masters, CEO of the Premier League, stated that the English football league “is always looking for ways to engage with fans”. The partnership with Sorare will allow the Premier League to continue to evolve in an industry that is growing rapidly and already has millions of players worldwide.

Masters added that they hope to continue collaborating with Sorare to bring the Premier League closer to its fans, even if they are not physically present at the football field.

“Sorare’s digital cards and innovative online game represent a new way for them to feel closer to the Premier League whether they are watching in the stadium or from around the world. We believe that Sorare are the ideal partner for the Premier League and we look forward to working closely together.”

According to Sorare’s statement, the platform will launch new gaming features, including specific Premier League competitions and draft-based gameplay, and capped-mode competitions.

 

 

 

 

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What’s Next For Solana As Bulls Face Rejection At $25?

What’s Next For Solana As Bulls Face Rejection At $25?

The Solana price has been trading extremely close to its immediate price ceiling of $25, and the coin has been struggling below the level above. SOL price moved smoothly from the $20 mark to $26, but the bulls got tired at $26, which caused the coin to dip 7.7% on the daily chart.

Over the last week, SOL has noted no considerable price movement. The technical outlook for SOL indicated that the price was inclining toward bullish momentum. Demand for the altcoin was still upbeat despite a downward movement in the buying strength.

Buyers still outnumber sellers on the chart. If demand remains consistently in the positive zone, the SOL might end up challenging the $26 mark. As Bitcoin travels into the $24,000 zone, altcoins can be expected to move upward.

If buying pressure notes a downtick further, the coin can fall in value before it jumps back above the $26 mark. The market capitalization of SOL increased, which meant that demand was on the upside for Solana.

Solana Price Analysis: One-Day Chart

Solana

SOL was trading at $23 at press time. The coin moved to the $26 mark, but the bulls gave up then. Since then, SOL has dropped below the $25 mark. Solana has to flip the resistance level into a support level; failing to do so, Solana might fall to the $20 level, as that was the altcoin’s nearest support line.

Overhead resistance for the coin stood at $26, allowing it to move close to $28. The amount of Solana traded in the last session was red, which indicated that the coin noted a fall in buying strength.

Technical Analysis

Solana

SOL has been in the overbought zone for some time now, and buyers continue to dominate the market despite a slight fall on the daily chart. The Relative Strength Index was at 60, and despite the downtick, the indicator displayed that buyers exceeded sellers in the market.

On that same note, the Solana price moved above the 20-Simple Moving Average line (SMA), which meant that buyers were driving the price momentum in the market. SOL was also above the 50-SMA (yellow) line, indicating that the altcoin was still bullish.

Solana

Demand and accumulation remained high on the chart, and the Chaikin Money Flow suggested the same. Chaikin Money Flow reads the capital inflows and outflows at a given time; the indicator was above the half-line, which meant that capital inflows were more than capital outflows.

The Moving Average Convergence Divergence (MACD) indicates the price momentum and trend reversals. MACD formed red signals tied to sell signals for the altcoin.

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FTX-Linked Charity Under Scrutiny By UK Regulator, What’s Coming?

A UK regulator is investigating the Effective Ventures Foundation, a charity connected to failed crypto exchange FTX, as its founder Sam Bankman-Fried, was a significant contributor to the foundation.

Bankman-Fried, who made a name for himself for his Robin Hood persona, charitable acts, and political donations, hit the headlines in April 2022 when he announced his intention to give away his wealth. But in November 2022, his company FTX went bankrupt. As a result, the Charity Commission in England and Wales has opened an inquiry into Effective Ventures.

FTX’s Bankruptcy Puts Effective Ventures’ Assets At Risk

The Effective Ventures Foundation and its affiliates are registered in England, Wales, the Netherlands, and the U.S. and provide support to organizations aligned with their goals.

The inquiry’s objective is to assess potential threats to the assets of Effective Ventures and ensure that the trustees fulfill their duties, as well as examine the relationship between trustees and donors.

The Interim CEO of Effective Ventures, Howie Lempel, stated that the charity would continue cooperating with the inquiry. He also stated that the trustees have thoroughly evaluated the financial state, and the charity does not depend on FTX-related funds for future operations.

The Charity Commission stated that FTX’s bankruptcy is a “serious incident” due to the significant funding the exchange’s philanthropic foundation provided to its efforts. According to the Commission, there is no evidence of wrongdoing from trustees:

The inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities.

John Ray III Seeks To Recoup Charity Payments

While on the one hand, the bankrupted exchange gave money to charities, FTX owes billions to big firms and its users. While some charities have returned donations, others are reluctant.

The new FTX CEO and the agent in charge of the bankruptcy proceeding, John Ray III, urges others to follow suit. Ray and FTX warn of potential legal action against those who do not voluntarily return donations from the previous CEO.

The company enabled the following email as a contact for those looking to return the funds: FTXrepay@ftx.us. In an official statement, the crypto exchange and the new management stated:

Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee.

Alignment Research Center, a non-profit focused on machine learning, voluntarily returned $1.25 million to the new FTX management, believing that the funds morally belong to FTX customers, if not legally.

FTX Donations Under Scrutiny During Bankruptcy Proceedings

Charities receiving funds from FTX in the US were reportedly impacted during the exchange’s bankruptcy proceedings. FTX made significant donations to various groups and causes.

Some political campaigns have promised to return FTX and other Bankman-Fried-related funds. Still, it is uncertain if businesses and investors will be legally obliged to repay the company’s debtors.

Nevertheless, FTX’s new management seeks to retrieve donations from bankrupt firms to various charities and politicians. As of September 2022, the bankrupt firm had donated $160 million to over 100 non-profit organizations.

FTX article btcusd chart

The Widening Reach of the FTX Debacle

The Charity Commission began investigating the charity organization on Dec. 19, 2022, following the legal process outlined in the Charity Act of 2011.

FTX, its subsidiaries, and affiliates declared bankruptcy in November 2022, raising concerns about centralized crypto exchanges. Since its downfall under the leadership of Sam Bankman-Fried, new information previously kept secret is being exposed.

As per the reports, Australian regulators monitored FTX for six months before its collapse. FTX was operating with a suspended Australian Financial Services Licence, which it obtained through acquiring a locally regulated non-crypto company.

Featured image from Pixabay and chart from TradingView.com.

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BlockFi Wins Approval to Arrange Auction for Mining Business

Bankrupt crypto lending platform BlockFi received court approval to put its Bitcoin mining business up for auction. 

The company plans to sell its equipment as fast as possible, to take advantage of currently favorable market conditions.

Selling While They Can

BlockFi lawyer Francis Petrie told US Bankruptcy Judge Michael Kaplan on Monday that the company has already received bids for many of its assets, and expects more to come, according to BNN Bloomberg. This comes a week after the company agreed to sell $160 million in loans backed by its Bitcoin mining hardware – some of which were already under collateralized 

“We’ve received substantial interest in the market for bidding purposes and current volatility in the cryptocurrency market, which means we need to act quickly,” said Petrie. Bitcoin’s price rose from under $17,000 to above $23,000 in January, bringing the average Bitcoin miner back into the profit zone, according to Glassnode

BlockFi’s saleable assets include its ASICs – computer hardware specifically designed to mine Bitcoin in a cost-effective manner. Celsius – a rival crypto lender that went bankrupt last summer – has also been selling its mining equipment as part of its restructuring process, with plans to sell tens of thousands of additional machines. 

Bids for BlockFi’s assets are due by Feb 20. An auction will be held a week later, with BlockFi to return to court in March to examine any proposed deals. 

ASIC prices plummeted last year alongside Bitcoin’s price, due to the yield generated by such machines being directly correlated to the value of the coins they produce. Like Bitcoin, ASICs were frequently used as collateral for loans to purchase even more equipment, creating a vulnerable setup for cascading liquidations when the market unwound. 

Core Scientific – one of North America’s largest Bitcoin mining firms – announced plans to shut down 37,000 Bitcoin mining rigs earlier this month, whose energy costs were partially subsidized by Celsius. The miner placed some blame on Celsius for its own bankruptcy in December. 

BlockFi filed for bankruptcy shortly after the collapse of FTX and Alameda Research in November, to which the lender had over $1.2 billion in cumulative exposure

Capitalizing on the Collapse

While numerous other major miners – including Iris Energy and Argo Blockchain – struggle under the circumstances, other firms have chosen to capitalize while mining machines are going for cheap. 

Bitcoin technology firm Blockstream announced a $125 million raise last week dedicated to expanding its fleet of mining and hosting services. Grayscale also announced a mining fund in partnership with Foundry last October, intentionally released during a so-called “shakeout” phase for the mining industry to scoop up low-cost equipment. 

Analysts are still somewhat torn on whether Bitcoin’s January gains are a deceptive “bull trap,” or if they mark the beginnings of another Bitcoin bull market. Amid the confusion, on-chain data shows that investors who were once underwater are taking profit while they can, adding sell pressure to the market. 

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NYDFS Probes Gemini Over Claims Concerning the Earn Program (Report)

The New York Department of Financial Services reportedly launched an investigation against Gemini, alleging that the cryptocurrency exchange told its 340,000 Earn users they were FDIC-protected.

The program, which provided clients up to 7.4% APY on their holdings, went down after the platform’s partner – Genesis – halted withdrawals and filed for bankruptcy.

The NYDFS Targets Gemini

As reported by Axios, New York’s regulator started investigating the Winklevoss-led trading venue for misleading Earn customers that their assets were backed by the Federal Deposit Insurance Corporation. Federal law forbids anyone from “implying that an uninsured product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance.”

Gemini previously revealed that the firm’s deposits at outside banks are protected and not its own products. However, Earn clients said they could not find the difference, hence the confusion. Todd Phillips – a former senior attorney at the FDIC – agreed that the communication between the crypto platform and its users could indeed cause some sort of misunderstanding:

“Is it skeezy? For sure. Is it illegal? I don’t know. I can’t really say.”

Gemini and Genesis introduced the Earn program in 2021, which amassed nearly 350,000 users in the following years. The FTX crash, though, crippled Genesis’ operations and the mutual offering. Gemini Earn investors had their assets frozen, but the exchange vowed to use “every tool available” to refund them. It set a creditors’ committee to help with the task and maintained that Genesis owes approximately $900 million to users. 

It remains uncertain how the latter will repay its debt since it filed for Chapter 11 bankruptcy protection earlier this month.

Gemini’s Other Problems

The US SEC recently filed a complaint against Gemini and Genesis for allegedly selling unregistered securities to retail investors in the States. Chairman Gary Gensler said the charge’s goal is to show that cryptocurrency lending platforms and intermediaries must abide by the American laws. 

Gurbir S. Grewal – Director of the SEC’s Division of Enforcement – believes the recent termination of the Earn program highlights the necessity for such investigations. He also urged affected users to contact the SEC’s Whistleblower Program.

Gemini has also put its name on the long list of crypto companies that dismissed staff for various reasons, with the market downturn being the primary one. It recently laid off 10% of its total workforce, citing unfavorable macroeconomic factors and “unprecedented fraud” within the industry.

The firm made another 10% staff reduction in July 2022.

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Polygon (MATIC) Could Rally To $1.30 If It Breaches This Price Level

Polygon (MATIC) Could Rally To $1

The MATIC price started to depreciate on its daily chart after it met its immediate resistance of $1.124. In the same time frame, the coin fell by almost 6%. Over the last week, however, MATIC registered sharp gains as it appreciated by nearly 13%.

The MATIC price currently stands at a critical point, as a break above the immediate resistance mark will help the altcoin to propel its price considerably. The technical outlook of the altcoin continues to side with the bulls despite the recent fall in price.

This also means that bullish momentum hasn’t died down yet. The buying strength has remained strong over the last week, but the coin has seen a slight buyer downtick on the daily chart. Accumulation, on the other hand, has remained positive.

MATIC must secure its local support at the $1.112 level for the coin to continue moving up. By the indicators, buyers could step in as MATIC is headed for another bull run before the price retries again. The altcoin is trading 60% below its all-time high, secured in 2021.

MATIC Price Analysis: One-Day Chart

MATIC

Polygon (MATIC) was trading at $1.116 at the time of writing. Over the last week, the coin has breached several critical resistance levels. It is now stuck under its immediate resistance of $1.122; moving above that level will help MATIC to rally by almost 15%.

The nearest support for the coin was $1.109, but MATIC has to immediately topple the $1.122 mark to secure $1.120 as its support level.

A fall from the $1.109 price will drag the altcoin to $0.99. The amount of MATIC traded in the last session was still green, indicating buyers dominated the market.

Technical Analysis

MATIC

The altcoin was overbought twice this year; hence, a minor price correction is expected from the altcoin. The Relative Strength Index was parked above the 60-mark despite the tiny downtick due to the fall in price. It also meant that buyers overpowered sellers in the market.

Similarly, MATIC moved above the 20-Simple Moving Average line (SMA), suggesting that buyers were driving the price momentum in the market.

The coin was also above the 50-SMA (yellow) and 200-SMA (green), implying prolonged bullishness on the chart. This could mean that altcoin could cross above the immediate resistance, causing the price to soar higher.

MATIC

The other technical indicators have also indicated an upcoming price increase. The Moving Average Convergence Divergence (MACD) indicates price momentum and a reversal of the same. MACD formed green signal bars, which were tied to buy signals.

Bollinger Bands suggest that price volatility and fluctuation have increased as the bands have widened in anticipation of upcoming price volatility. This also indicated that the coin was moving toward another rally.

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This Level Could Be Crucial For Bitcoin, PoW Pricing Model Suggests

The Bitcoin difficulty per issuance, a proof-of-work (PoW) pricing model, might provide hints about the following crucial level BTC would have to clear.

Bitcoin Approaches Difficulty Per Issuance Model 2.0 Level

As pointed out by an analyst on Twitter, the BTC price is almost double the cost of production now. The “difficulty per issuance” is a Bitcoin PoW pricing model based on two metrics: the mining difficulty and the issuance.

The mining difficulty is a mechanism of the Bitcoin network that sets the computing difficulty for miners to mint new coins and insert blocks on the chain. The difficulty exists because the BTC network was configured to keep its supply production around a constant value.

Whenever the Bitcoin hashrate, a measure of the total amount of computing power connected to the blockchain, changes its value, the rate at which miners produce new blocks also fluctuates. As the network is set to prevent this, it adjusts the difficulty exactly as much as is needed to counter these fluctuations.

Because the difficulty is dependent on the hashrate in this way, it encapsulates all the mining-related expenses that miners incur and can thus be used to estimate production costs.

The difficulty per issuance model is based on this idea. To calculate the cost of 1 BTC, the model divides the difficulty term with the “issuance,” the total amount of new coins added to the circulating supply.

Now, here is a chart that shows the three essential levels of this model and where Bitcoin stands in relation to them:

Bitcoin difficulty per issuance

As displayed in the above graph, the Bitcoin price was under the difficulty per issuance 1.41 level a while back (the middle line). This level represents a kind of average cost of production for the BTC miners.

The bottom line gives a lower bound estimation for the cost of production, while the top line gives an upper bound. The chart shows that BTC never touched the lower bound in this cycle.

With the latest rally, BTC has broken above the 1.41 level and is now approaching the 2.0 level (the upper bound). In the past, Bitcoin has remained between these two levels for extended periods during a few different instances.

Usually, bull rallies have taken place after Bitcoin has successfully broken out of this zone in the past. So, if the crypto’s price manages to go beyond this level, it might be a positive sign for investors.

However, the coin being rejected from the difficulty per issuance 2.0 level is just as real a possibility as there is historical precedence for it. Now it remains to be seen how the price will react once it retests this line (assuming it even does one in this rally).

BTC Price

At the time of writing, Bitcoin is trading around $23,100, up 1% in the last week.

Bitcoin Price Chart

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Musk’s Twitter Payment System Will Prepare for Potential Crypto Integration

Elon Musk is moving ahead with plans to bring payment functionality to Twitter, bringing another revenue stream to the struggling social media giant. 

Though the technology will primarily be fiat-focused, it will be built so that crypto-functionality can be added in the future.

Twitter and Payments

As reported by the Financial Times on Monday, Esther Crawford – Twitter’s Director of Product Management – has been working with a small team to map out the architecture for bringing payments to the platform. She is now the chief executive of Twitter Payments LLC.

The company has also been applying for state regulatory licenses across the U.S. to become eligible for the task, after registering with the U.S. Treasury as a payment processor in November. It hopes for complete US licensing within a year, and then expand internationally. 

Musk has previously shown interest in bringing a suite of payment services to Twitter, ranging from peer-to-peer transactions to debit/ credit cards, creating an “everything app” that facilitates payments, commerce, and messaging. It would even allow people to buy products directly through the platform. 

He’s even teased adding a Dogecoin payment option to Twitter – though no plans of the like have been confirmed yet. 

According to The New York Times, an early Pitch Deck to investors last May showed that Musk planned to reign in $1.3 billion in payment revenue from Twitter by 2028. It represents another move by Musk to make Twitter more profitable, including placing verification behind a paywall and cutting thousands of employees from the business. 

Before Musk took over, Twitter was already exploring both tipping and e-commerce features. Lightning-based Bitcoin tips were included in these updates, with Ether tips and NFT support following soon after. 

Dogecoin Spikes Again

Following the Financial Times’ reporting on the subject, Dogecoin briefly spiked to a daily high of $0.091, before dwindling back to $0.086 within a few hours. 

Dogecoin has a history of reacting to Elon Musk-related news, whether or not it’s related to the specific meme coin. The digital currency surged 22% ahead of Musk’s takeover of Twitter, as he was moving into Twitter HQ. 

Musk has previously suggested that Dogecoin is better than Bitcoin at handling transactions, due to its larger block size limit, and faster block speed. He also regularly interacts with the meme coin’s creator, Billy Markus, over Twitter. 

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Cream Finance Exploiter Moving Funds Over 16 Months After Hack, Here’s Why

Cream Finance Exploiter Moving Funds Over 16 Months After Hack, Here’s Why

The Cream Finance exploiter is moving funds, more than 16 months after hacking the DeFi protocol, stealing over $136 million of various crypto assets.

Cream Finance Exploiter Transfers Funds

According to CertiK, a blockchain analytic platform, the exploiter moved 365.69 ETH, worth roughly $600,000 at spot rates, to a new address. The amount is part of the over $136 million tokens stolen in late October 2021.

Funds were moved to another address. It is not yet clear what the hacker intends to do with the $600,000. Cream Finance is a blockchain-agnostic DeFi protocol deployed on Ethereum, Fantom, Polygon, and the BNB Smart Chain (BSC).

It was forked from Compound, a competing lending platform, and remains open source. Cream Finance offers a wide range of services, including lending, yield farming, and token exchange. CREAM, the governance token of Cream Finance, is changing hands at $12.83 when writing on January 30.

Cream Finance CREAM Prices on January 30

In crypto, addresses holding stolen funds are always marked and therefore tainted. It makes it hard for hackers to launder stolen funds on centralized exchanges or other platforms without being identified. The decision by platforms to join hands to combat money laundering from crypto and DeFi hackers is bearing fruits.

These platforms, mostly centralized exchanges like Binance, Coinbase, or Huobi, allow users to purchase fiat currencies, including the USD, JPY, or Euro, and are compliant with applicable know-your-customer (KYC) and anti-money laundering (AML) rules. This means agents trying to launder funds through these portals can be mapped out in the real world and prosecuted.

By picking out this transfer, CertiK is updating the crypto and DeFi community that the perpetrator of the hack is still active and trying to shuffle funds through various addresses. However, considering the transparent nature of underlying blockchains, including Ethereum, it is easy to track transactions despite the sender’s private identity. Any mistake on the hacker’s end can lead to their IP address being uncovered or their identity decrypted, bringing them to the custody of law enforcement agents.

To counter this possibility and conceal their tracks, hackers use crypto mixers like Tornado Cash. Despite the United States Treasury Department banning citizens from using mixers like Tornado Cash, users prefer the tool. Many users are hackers wishing to cash out the funds anonymously.

DeFi Under Attack

In late October 2021, Cream Finance was hacked for over $136 million. The hacker targeted the protocol’s v1 lending market, siphoning several ERC-20 tokens and CREAM governance tokens. Through a series of flash loans, the attacker manipulated the protocol’s yield, allowing for borrowing more assets than collateralized.

The attack was the protocol’s third in 2021, questioning the security of DeFi dApps against determined attackers, some of whom might be sponsored by governments like North Korea. In mid-January, Lazarus Group, a hacker cell associated with North Korea, attempted to launder $63.5 million.

However, Binance and Huobi picked out their transfers and froze assets. Funds were part of the amount stolen from the Harmony Bridge hack.

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This Unknown $20 Million Transfer In MATIC Caused A Price Drop?

According to on-chain analysis data released today by Blockchain service Lookonchain, a Polygon whale moved considerable funds in this network’s native token MATIC. The funds were sent to trading venues, thus making the price of the token drop by nearly 6%. The unknown whale wallet transferred $10.43 million in MATIC to another unknown wallet in the Binance exchange.

Two weeks ago, on January 16, the same Polygon whale wallet transferred a similar amount in MATIC to an unknown wallet to Binance, thus causing the coin’s value to plunge by 8%.   

Is The Price Of MATIC In Danger?

In digital assets, the term “whale” indicates ownership of crypto coins in huge quantities. Although crypto whale transfers don’t guarantee immediate downside price action, they can be a good indicator of what might occur to the value of specific cryptocurrencies in the future.

The MATIC whale’s transfer from a personal wallet to an exchange suggests the investor is preparing to liquidate the assets. Polygon whales were not the only ones who transferred significant funds this month. Whale Alert, a Blockchain platform that tracks the activities of crypto whales, on January 20, identified whales that suddenly moved over $363 million in Bitcoin and XRP after BTC surged its value to the $21,000 level.

The 2022 bear market continues despite the spike in positive market sentiment. Despite the bullish trend since the beginning of 2023, cryptocurrencies could still see price consolidation and fresh crashes to support levels. 

MATIC Price Action

At the time of writing, Polygon was trading at $1.1, down 5.11%, with a trading volume of $530 million in the last 24 hours. With a market cap of $9 billion today, MATIC was ranked the 10th largest cryptocurrency, according to Coinmarketcap.

The MATIC chart shows that the RSI is 63.76, meaning MATIC is in the bull territory

MATICUSDT price chart on TradingView

However, the Bollinger band shows that the crypto price is mean reverting, which signals a weakening bullish trend. This indicates MATIC is in the consolidation phase, meaning the token lacks buying interest. The outer bands appear to try to widen as the price moves, showing that volatility may increase as the price seems to have the potential to move down strongly.

As per the chart, if MATIC rallies in the next few days, it may soar its value to the resistance level of $1.2. However, if the crypto retreats its price, it may rest at the support level of $0.7, as shown in the chart.

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Justin Sun Wants Tron (TRX) to Become Legal Tender in 5 Countries This Year

Tron’s Founder – Justin Sun – said one of his primary targets is to see TRX becoming an official payment method in five different countries by the end of 2023. 

He believes one of the nations to embrace the asset could be his homeland China.

The ‘Ambitious Goal’

In a recent Twitter thread, Sun raised hopes the native token of the Tron blockchain – TRX – could be accepted as legal tender by “at least” five nations this year. He posted the flags of Dominica and Sint Maarten, hinting they could be the first on the list.

The cryptocurrency exchange Huobi – where Sun serves as a member of the Global Advisory Board – partnered with Dominica in November last year to launch a national token on the Tron network. 

Rolando Brison – leader of the United Peoples Party of Sain Maarten – recently revealed that the government had made its first steps towards enforcing cryptocurrency regulations and making TRX legal tender:

“Allowing cryptocurrency to continue totally unregulated in St. Maarten is extremely risky, and we have to be proactive.

Hence I use my right of initiative to bring this law with Tron Protocol at the forefront, with possibilities later for other blockchains to be incorporated; this too can be done in line with other countries like St. Kitts, who I know are also working on their own legal tender legislation.”

Sun described the potential move as an “ambitious goal,” which could become a reality with “hard work and dedication.” He added that it could also pave the way for the future mass adoption and employment of cryptocurrencies.

Tron’s Founder went even further, saying the world’s most populous country – China – could “eventually” make TRX legal tender. Recall that the domestic authorities banned all cryptocurrency operations in 2021.

BTC Still the Only One

Bitcoin remains the only cryptocurrency embraced by nations’ authorities as legal tender so far. 

The first to do so was the government of El Salvador in 2021, which also started accumulating BTC on a macroeconomic level and introduced several projects related to it.

One of the world’s poorest countries – the Central African Republic (CAR) – followed suit last year. It recently appointed a committee of 15 experts to design a cryptocurrency regulatory framework.

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China’s Central Bank Continues Digital Yuan Expansion To 17 More Provinces

The rising adoption of digital assets has resulted in multiple countries adding support for digital currencies. Earlier today, China’s central bank, the People’s Bank of China (PBOC), announced the continued expansion of the country’s central bank digital currency (CBDC), the digital yuan.

The digital currency is currently undergoing a pilot program expanded to 17 more provinces across China. The country’s central bank said it is focusing on launching a system allowing consumers to “scan with one code.” The report noted:

The People’s Bank of China stated that in the future, it will continue to carry out innovative applications of digital renminbi to realize the interconnection between the digital renminbi system and traditional electronic payment tools, so that consumers can scan with one code, and merchants can also support various transactions without increasing costs as much as possible.

Two New Features Introduced Alongside

Alongside the CBDC pilot program’s expansion across China, the country’s central bank is also looking to improve the use cases of the digital yuan. It will introduce two core features, offline payments, and smart contract capabilities, to the CBDC. 

The offline payments feature, launched on January 23, will allow users to make payments without the need to access the internet. This will work via NFC (Near-field) technology that enables communication between two electronic devices over a distance of 4 cm or less to confirm payments.

The smart contract feature, on the other hand, which was introduced earlier this month on the e-commerce app Meituan allows users to win a daily prize of $1,312 that is divided among winners.

China To Enhance The Digital Yuan (CBDC)  Adoption

To increase the adoption of the CBDC right from the start, China announced plans to offer wealth management products that accept digital yuan payments in pilot provinces. A major investment bank such as China Galaxy Securities will offer these wealth management services to only a few customers. 

Notably, China’s central bank has since been expanding the establishment of the CBDC over the past year. The PBOC has already carried out nearly 30 “red envelope activities” in pilot areas to advance consumption and low-carbon travel and make the digital yuan a payment method with practical utility for consumers.

While the adoption of CBDC is only starting to warm up, digital assets have since become a notable investment. Over the past few weeks, investors have increased their bets on these assets, pushing the global market cap to $1 trillion and above for the first time in over five months. 

Total cryptocurrency market cap price chart on TradingView

Despite the minor retrace in crypto assets today, the global cryptocurrency market still stands steadily above the $1 trillion mark. It currently sits at $1.09 trillion, at the time of writing down by 1.8% in the last 24 hours.

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A Look at Cardano’s Overcollaterized Stablecoin Djed

Stablecoins have been one of the most controversial areas of the cryptocurrency industry. But this has not deterred industry leaders to bring about new pegged tokens built on a secure foundation.

The much-awaited Djed – which happens to be Cardano’s native overcollateralized stablecoin – is set to launch this week. Developed jointly by the layer 1 blockchain network, COTI, along with core Input Output Global (IOG) devs, the stablecoin is expected to benefit the overall Cardano $77.2 million DeFi market.

Djed’s Launch

The ADA-backed stablecoin would deploy on the mainnet following the completion of chain index syncing. The process takes around 14 days to complete and was started more than a week, according to COTI’s blog post.

At launch, Djed is expected to go live on more than 40 Cardano-based decentralized finance applications. Simultaneously, developers have also come up with a payment application called – DjedPay – enabling users to transfer the tokens to merchants and businesses.

Meanwhile, Djed and its Shen token will list on two Cardano-based decentralized exchanges (DEX) – MuesliSwap and MinSwap – after their issuance this week. For context, Shen is the reserve token meant to support Djed’s stability. It would rake in extra rewards when ADA holders stake their coins to mint the stablecoins, thereby fueling liquidity for the ecosystem.

Difference Between Djed and UST

The main utility of stablecoins is to keep away from the turbulence of pure-play cryptocurrencies. However, the infamous TerraUSD crash last May turned out to be not just another failed stablecoin experiment but also acted as a catalyst for the catastrophic turn of events that followed later that year.

Djed has been touted as the “first stablecoin protocol where stability claims are precisely and mathematically stated and proven.” Algorithmic stablecoins are typically partially undercollaterized. Djed, on the other hand, is expected to maintain stability by being 400% to 800% overcollateralized at all times.

The official site also revealed that the contract has enough money to buy back all the Djed stablecoins in circulation for $1 worth of the backing asset, thus maintaining the peg.

Aside from being fully backed and overcollateralized with a significant reserve ratio, Djed is also autonomous. This is in contrast to the Terra, where the network was halted at some point, and the BTC reserves were managed manually. However, Djed operation does not depend on decisions by a group of people, according to COTI’s Community Manager, Vlad Ovadenko.

Even as ADA will provide the external collateral, Shen will be used as liquidity to maintain the peg price if the former’s price fluctuates and the potential for insufficient ADA to pay Djed holders willing to cash out. As such, $1 worth of ADA always equals $1 worth of DJED.

Shedding more light on the revenue model, Ovadenko said,

“Terra LUNA holders earn money from seigniorage and have the incentive to encourage projects like Anchor, that artificially keep stablecoins out of circulation, promising future yield, $Shen holders earn money through mint/burn fees. In this way, there is an incentive to encourage stablecoins to remain in circulation and to be burned and minted frequently through the contract.”

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Shiba Inu Will Take 1,157,174 Years To Reach 100 Billion Tokens, Analyst Says

On Monday, 30 January, crypto YouTuber Jeff at OnTheChain.io revealed on Twitter the number of years it might take Shiba Inu to reduce its supply to 100 billion tokens.

The crypto analyst identified that Shiba Inu has a quadrillion tokens. He said if the crypto were to burn 1 million tokens per day, then it would take about 1,157,174 years to reduce its entire supply to 100 billion tokens.

Meanwhile, $XRP lawyer Jeremy Hogan commented on Jeff’s tweet by saying that “so, you’re saying it’s possible.” In other words, his comment appears to mean that it would be impossible and unrealistic for the crypto to take those years to burn its tokens to about 100 billion tokens.

Burning Will Be A Continuous Endeavor But Will Depend On Management

Shiba Inu, the second most valuable meme token by market cap after Dogecoin, was launched in 2020 when it began with one quadrillion tokens. Over the past two years, it has gradually burnt over 410 trillion tokens to reduce its supply as part of efforts to increase the value of the coins. However, there is still a lot more burning that has to be done for the token price to ever reach $1 or even $0.01.

Initially, Shiba Inu developers did not include the token burn in the crypto’s whitepaper. This means the burning was not planned at the beginning of the project. The first major Shiba Inu burn took place in June 2021 when Ethereum co-founder, Vitalik Buterin, burned 90% of the SHIB tokens sent to him (thus burning 41% of the Shiba Inu supply) to reduce the number of coins in use. That’s how the Shiba Inu community began committing themselves to burning SHIB tokens.

According to data released in October last year, it would take more than 25,000 years to burn the Shiba Inu’s value up to $0.05. Shiba Burn Tracker made such a calculation based on the rate of Shiba Inu burning, which took place in September when the crypto destroyed some 1.75 billion SHIB tokens in circulation.

On the other hand, Shib Burn Tracker also projected that for Shiba Inu to reach $1, it would take 25 years to burn 90% of the original SHIB supply based on the burn volume in September. But burning 90% of the original circulation would leave 100 trillion SHIB tokens remaining in supply.

Since SHIB only has a market capitalization of $5.7 billion, its developers would need to do more burning continuously for a few more years for a few billion tokens to remain in circulation.

SHIB Price Analysis

At the time of drafting this article, SHIB has a trading price of  $0.00001164 USD, down 3.42%, with a trading volume of $265,139,495 in the last 24 hours. The value of SHIB has declined by 1.64% in the past seven days.

The TradingView chart analysis below shows a relative bullying trend as buyers try to push the price up. The cryptocurrency is in the consolidation phase, though with a bullish leaning.

SHIBUSDT price chart on TradingView

The RSI stands at 62.09, which shows that SHIB is in the bull territory but is likely to experience a trend reversal or a correction in its price.

SHIB’s price bullishness may experience some corrections but may hold at the support level of $0.00001400, as indicated in the chart. If this level doesn’t hold, then the crypto is likely to see a retracement in price to a support level of $0.00000861 in the next few days.

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Gala Games Plans for Mobile Gaming, GALA To Be The Primary Token

Gala Games Plans for Mobile Gaming, GALA To Be The Primary Token

Gala Games, a blockchain-based gaming platform that rewards users with in-game and non-fungible tokens (NFTs), has released its plans for 2023.

Gala Games’ Strategy

Per a report shared on January 29, the objective of the platform this year is to continue supporting the broader gaming ecosystem, move to mobile, and carve out market share while anchoring its strategy on four key pillars, touching on sharing updates, conquering mobile, protecting utility, and remaining visible.

Gala Games has specified that all games within its ecosystem will use GALA as the primary token. GALA is the native currency of the gaming portal and gifts users to vote on proposals.

The platform leverages blockchain technology and aims to lead in the sphere. Over the months, including in 2022, when gaming activities contracted due to an extended bear market that saw crypto assets like Bitcoin and Ethereum more than half from their 2021 peaks, Gala Games continued to strike valuable partnerships.

To build on this base, Gala Games is setting aside over $300 million to support projects in the gaming ecosystem. Out of this amount, the platform has deployed 50% of the amount.

They revealed that they are still working with, among others, Gamedia, Artic 7, and Shiver Entertainment. Besides partnering with external game developers, Gala Games works with their internal game developers. Subsequently, the platform updated the community that they plan to re-launch Town Star in partnership with “The Walking Dead Empires.” In the same vein, several gaming titles will be launched in 2023 and 2024.

GALA Prices on January 30

Move to Mobile

This year, Gala Games added, they expect more intellectual property holders to join their growing ecosystem. Some of them include PokeGo and AMC. On January 23, Gala Games announced the acquisition of Ember Entertainment and its gaming portfolio comprising over 15 games. Together, these games have been downloaded over 20 million times since deployment.

On their plans to move to mobile, they will avail web3 games such as Meow Match and Aqua Blast to gamers. Meow Match, Gala Games added, will be the first to integrate a monetization strategy. The decision to move has been part of the Gala Games’ strategic plan over the years. As they do so, they said they expect to retain high quality, as expected by the over 2.8 billion mobile gamers, while enabling players to take charge of their digital assets.

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Twitter Prepping For Payments, Could Include Bitcoin And Crypto: FT

Elon Musk’s Twitter is preparing to add payments functionality that could potentially include cryptocurrency, inside sources told the Financial Times.

  • Twitter is prepping for payments, and bitcoin might be in the mix.
  • According to a Financial Times report, Elon is open to adding BTC and crypto to its Twitter payments vision.
  • While the “super app” vision would prioritize fiat, its future will likely include the alternative payment method.

Elon Musks’ Twitter has reportedly begun applying for regulatory licenses across the U.S. in apparent preparation to begin facilitating payments through the app.

People close to the company stated that Twitter “has started to map out the architecture needed to facilitate payments on the platform with a small team,” which could potentially include functionality for cryptocurrency payments, the Financial Times reported.

According to the FT source, Musk has stated that he wants Twitter to serve fiat payments first, but be made with the ability to enable cryptocurrency later on. This would not be the first time that Elon Musks’ businesses have facilitated bitcoin transactions. Musk has previously accepted bitcoin for his Tesla electric vehicles, but later retracted the ability due to concerns about renewable energy.

While there are no firm plans to implement this interoperability, Musk has firmly reiterated since his taking over of the social media firm that he wants to see it become more of a generalized “super app.” This multifunctionality approach would benefit greatly from the increased functionality of cheap, instantaneous payments using a platform like the Bitcoin Lightning Network.

Twitter previously tested “tipping” through the Bitcoin Lightning Network via Jack Mallers’ Strike, later adding the ability for users to add a Bitcoin address to directly receive their tips. 

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Can A Federal Reserve’s Counterattack Stop The Crypto Bull Run?

The crypto industry may be facing a major setback as the Federal Reserve (FED) appears to be losing control of the markets. This new status quo could lead to even more hawkish measures impacting the traditional and cryptocurrency markets. 

A report released on January 29 by Michael J. Kramer – founder of Mott Capital, suggests that the FED needs to “push back against the market before it’s too late.” Since the December Federal Open Market Committee (FOMC) meeting, financial conditions have eased dramatically. 

This easing of financial conditions has led to a rise in commodity prices, a drop in mortgage rates, a weakening dollar, and a rally in stocks and significant crypto assets, including Bitcoin, Ethereum, and others. 

According to Kramer, the February Federal Open Market Committee (FOMC) meeting will be crucial because the FED will need to roll back the current easing of financial conditions. In addition, the Mott Capital founder believes that these current market conditions are at the same level as when the FED began raising interest rates.

For Kramer, pushing back at this point maybe even more complex and trickier than when Fed Chair Jerome Powell gave his Jackson Hole speech. The financial institution has the challenge of restoring price stability by “softening” labor conditions. 

As a result, the Fed has been hiking interest rates. Their objective is to bring down inflation, leading them to use “forceful tools to bring supply and demand into a better balance.” 

Furthermore, according to Kramer’s report, investors know the FED is closer to the end of its hiking cycle than the beginning. The market also expects inflation to continue its downward trend. Thus, any aggressive measure by the financial institution could surprise the legacy and crypto market, causing more significant than expected losses. 

In his analysis, Michael J. Kramer says the FED has two options: raise rates by 50 basis points (bps), which could be a big surprise for the markets, or signal that financial conditions have eased too much, which could prolong the rate tightening cycle.

What Cards Does The FED Has Left Under The Sleeve

The FED’s options are limited at this point. Kramer claims the market does not believe the FED when it wants monetary policy to be sufficiently restrictive and is willing to endure the current market conditions to kill the inflationary impulses that still exist.  

For Kramer, the FED can go against the collective belief that it will only raise rates by 25 basis points and instead raise rates by 50 basis points. Powell could also deliver a more vital message than he did at Jackson Hole last year. 

Otherwise, the FED may need to raise the issue of possibly increasing the pace of quantitative tightening and balance sheet unwinding. In short, Kramer believes that anything other than the above options would suggest that the FED is comfortable with the current easing of financial conditions and is willing to let the market take control and drive monetary policy.

How Will The Crypto Market React?

The crypto industry has great expectations of the Federal Market Committee meeting this week and Powell’s speech. Digital assets are facing major resistance lines after the volatility spikes since the beginning of 2023. 

It seems like a race against time and government action to see how investors and prices react to potentially more hawkish measures. The crypto market’s capitalization has increased, and the tightening measures may result in another crash for cryptocurrencies.

Crypto Bitcoin

The vast majority of cryptocurrencies follow the price action of Bitcoin (BTC), and since the weekend, Bitcoin has suffered a slight correction. As of press time, Bitcoin has failed to gain higher territory, falling 1.6% in the last 24 hours, auctioning at $23,140, an 1.9% gain in the last seven days.

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What Is Happening With China and its Crypto Approach?

Last year’s industry-wide meltdown has haunted Asian firms as they cautiously plot their recovery. China was once a hotbed for crypto mining and trading. Even after announcing a blanket ban on all digital asset activities more than a year ago, there’s reason to believe that the country may make a comeback in the space.

Tron founder Justin Sun, who has a history of hyping the industry, also said China could embrace the asset class, especially after the implementation of a tax on crypto transactions, which he considers to be “a big step toward cryptocurrency regulation.”

Taxing Crypto

Some Chinese authorities have started levying a 20% personal income tax on the investment profits of individual crypto investors and Bitcoin miners. In an attempt to control crypto tax, many believe China could actually end up legalizing the asset class.

Crypto-related activities are illegal, which hinders taxation policies. To work around it, similar discussions have taken place in the past. Months after the ban, a subsidiary of the State Administration of Taxation in China published an article focusing on – “Preventing Tax Risks from Virtual Currencies.”

In fact, Chinese blockchain reporter Colin Wu said Huobi and other exchanges provided information to the Chinese tax authorities in January 2022 before it was acquired by Sun.

Aside from the FTX debacle, policymakers in the East Asian country have been vocal about concerns such as the wasteful energy footprint of crypto mining as well as the dangers of speculation in volatile assets. Crypto activity has seen a slowdown to a large extent but is far from dead, suggesting that trading restrictions imposed by Beijing have been largely circumvented by determined users.

Chainalysis’ revealed that China jumped up to 10th place in 2022 in the company’s Global Crypto Adoption Index after noting a strong usage of centralized services. This evidenced that the government’s move “has either been ineffective or loosely enforced.”

Hong Kong and Singapore’s Stance on Crypto Regulation

China’s ban on crypto raised fears of a ripple effect. But Hong Kong and Singapore are charting their own way.

Hong Kong has welcomed crypto firms in a bid to maintain its status as an international finance center with regulatory clarity in place. Virtual asset service providers looking to operate in the region will have to undergo a licensing procedure complying with AML guidelines and investor protection laws.

Hong Kong’s Securities and Futures Commission (SFC) will soon publish a list of crypto assets open to retail traders to limit retail investors to a few whitelisted cryptos.

Meanwhile, regulations in Singapore are expected to get more stringent for existing market players, especially after the high-profile implosion of firms registered in the city-state, such as Three Arrows Capital (3AC) and Terraform Labs.

The post What Is Happening With China and its Crypto Approach? appeared first on CryptoPotato.

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Mastercard And Binance To Offer Bitcoin, Crypto Card In Brazil

The new bitcoin and crypto-backed prepaid Binance Card is coming to Brazil, one of the exchange’s largest markets.

Mastercard and Binance have announced the launch of a bitcoin and crypto backed prepaid card in Brazil, Latin America’s largest economy. 

According to a blog post, the Binance Card is currently in beta testing and is expected to be widely available in the country in the next few weeks. The Binance Card is currently already available in many European countries.

The Brazilian version will «allow all new and existing Binance users in Brazil with a valid national ID to make purchases and pay bills with cryptocurrencies.» It will charge a 0.9% fee per transaction involving bitcoin, according to the blog, and there will be an offered 8% in cashback on select purchases, while allowing ATM withdrawals without fees.

Brazil is one of the company’s top 10 markets, according to Binance, and the card will allow new and existing users in the country to pay bills and shop with cryptocurrencies at Mastercard merchants. The launch of the prepaid card is part of Binance’s effort to «broaden the connection between traditional finance and crypto.» The card has already been launched in Argentina and is being rolled out in Brazil next.

Brazil is one of the largest potential markets in the world, simply by the numbers alone. According to estimates, over 10 million of the country’s population of approximately 214 million utilize cryptocurrency. Brazil has also experienced high inflation rates since the start of the pandemic similar to the United States, leaving citizens with an appetite for sound money. 

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Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan

Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan

Per a report from the Financial Times (FT), Twitter has been trying to find new sources of revenue, and crypto and Dogecoin (DOGE) could be part of a new strategy to achieve this objective. The company has submitted petitions for regulatory licenses in the United States to “turnaround the business.”

Last year, Musk acquired Twitter in a multi-billion-dollar deal. Since then, many advertisers have left the platform, negatively impacting the company’s revenue stream. The new CEO launched a subscription service and continues to seek an alternative to mitigate the company’s financial problems. 

In that sense, the social network is focused on enabling payments on its platform under the leadership of Esther Crawford, the Financial Times claims. These efforts are a “critical” element of a larger strategy to bolster the company’s revenue streams.

Peer-To-Peer Payments With Dogecoin?

The report claims that Elon Musk has publicly revealed his plans to roll out peer-to-peer transactions with bank accounts and debit cards on the network. These features are part of a “master plan” to build the “everything app,” as the report calls it. 

Like other social networks where users can message their contacts, shop, and make payments, Twitter would expand beyond its current services. In this context, cryptocurrencies could play a big role. 

Elon Musk is a big Dogecoin proponent, and any plans to incorporate payments on Twitter include the meme coin naturally. At least, this is the market’s perception of recent events. 

As of this writing, Dogecoin (DOGE) saw a 5% spike in its price action but has been unable to break above critical resistance. The meme coin follows the general sentiment in the market, recording losses during today’s trading session. 

A Twitter “super app” with Dogecoin payments could usher in a new adoption era for the cryptocurrency and potentially allow it to reclaim previously lost territory. DOGE recorded an all-time high in 2021 on the back of a campaign in its favor spearheaded by Elon Musk and other personalities. 

Dogecoin DOGE DOGEUSDT
Twitter’s Master Strategy

Furthermore, the FT report claims that Twitter already filed a registration as a payments processor with the U.S. Treasury. This application suggests that, if approved, the Twitter “super app” could materialize sooner than expected. 

The company is in pursuit of additional licenses, which will be “filed shortly,” according to the report. This stage precedes an international strategy to obtain the necessary licenses to take Twitter to the next level. 

According to Lucy Ingham, head of content at FXC Intelligence, quoted by the FT: “Twitter is already a platform on which payments happen, so it’s kind of a no brainer.”

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Ethereum Network Usage Skyrockets As ETH Hits Two-Month High

Despite the crypto market conditions, crypto assets and blockchains have continued to amass new highs pushing the global cryptocurrency market forward. In today’s news, Ethereum on-chain activity recorded a new high following the crypto market revival.

Various metrics under the Ethereum network have only continued to show a steady increase in the past few months. According to data from Etherscan, the total number of ETH transferred daily on the network surpassed 1 million once again in recent years, indicating that the network activity has not had any significant decline over the past three months.

Not only has daily transfer increased, but another metric, such as network usage in terms of addresses, has also surged. According to PrimeXBT’s recent report on Ethereum, the network has grown actively in use, recording a high of 92.5 million addresses over the weekend. 

Ethereum Network Continuous Growth

Ethereum, the second-largest crypto by market cap, has been a rival to the top crypto, Bitcoin. Since it emerged in the market, the Ethereum network has only continued to grow year after year with no significant retracement of any kind.

Over the past six months, the Ethereum network’s unique addresses have surged roughly 10%, reaching an all-time high of 221 million. Alongside its other metric growth, there has been a 140% increase in the number of daily verified smart contracts on the network since last year.

With the rapid adoption and birthing of new ecosystems in Web3, potential blockchains such as Ethereum have had significant boosts making the native token hold steadily with no drastic decline. According to crypto YouTuber Lark Davis, Ethereum has been fundamentally solid throughout the bear market.

“Ethereum is deflationary, provides high yields, has no sell pressure from miners anymore, is 99% more energy efficient, and has a thriving layer two scene as well as massive dev activity… all in a bear market. In summary, no one has enough ETH,” Davis tweeted on January 29.

Following Ethereum’s transition into the proof of stake (PoS) mechanism, the network has been expected to become a deflationary token, and so far, it has performed as expected. Data from Ultrasound Money shows Ethereum issuance is currently deflationary at -0.04% per year.

This indicates that the supply of circulating ETH is shrinking over time. The total supply of ETH, which was 120.5 million at the beginning of this year, has decreased by around 9,200 ETH, valued at approximately $15 million, at the time of writing.

Ethereum (ETH) Price Outlook

In the past few weeks, ETH has rallied significantly, reaching a 12-week (nearly three months) high — this was achieved in the early hours of January 30 after seeing an almost 3% increase to trade for $1,658. Over the past 30 days, ETH has increased more than 30%, breaking out of the $1,300 zone seen late last year. 

ETHUSDT price chart on TradingView

Meanwhile, as the cryptocurrency market is currently experiencing a retracement, ETH has also followed suit and is down 2.4% in the last 24 hours with a current market price of $1,573 at the time of writing.

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