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ENS domains surpass BAYC’s trading volume: Nifty Newsletter, Aug 31–Sept 6

NFT trading platform OpenSea announced that it will not be supporting any forked NFTs that may show up after the Ethereum Merge.

In this week’s nonfungible token (NFT) newsletter, read about OpenSea and its commitment to the Ethereum Merge. Check out a project that aims to introduce Web3 to the opera scene and how ENS domains surpassed Bored Apes in  trading volume. In other news, learn about how the NFT giveaway of Rug Pull Finder was exploited. And, don’t forget about this week’s Nifty News roundup featuring how American actor Bill Murray’s wallet was attacked after his NFT drop. 

OpenSea says marketplace won’t support forked NFTs post-Merge

NFT platform OpenSea has announced that it will not be supporting NFTs on Ethereum forks ahead of the upcoming Merge. The marketplace noted that it will only focus on supporting NFTs on the updated proof-of-stake (PoS) blockchain.

The team highlighted that if there are any forked NFTs, they will not be reflected in its marketplace. Additionally, the team mentioned that it’s preparing to face any potential issues that may happen because of the Merge.

Continue reading…

NFT micro-philanthropy gives a new voice to the opera

Blockchain has made its way to the opera through a project called Living Opera, which focuses on combining Web3 technologies with classical music. The project aims to provide a new way for opera singers to skip traditional processes such as finding grants and endowments.

In an interview, the project’s CEO Soula Parassidis told Cointelegraph that they have also released the Magic Mozart NFT collection to pay tribute to a dice game to randomly generate music attributed to influential composer Wolfgang Amadeus Mozart.

Continue reading…

Ethereum domain names top Bored Apes on OpenSea’s weekly chart

Ethereum Name Service (ENS) domains have outperformed the popular Bored Ape Yacht Club (BAYC) NFT collection in terms of the seven-day trading volume metric at the NFT marketplace OpenSea.

The project’s daily trading volume also increased from 120.7 Ether (ETH) to 1044.6 ETH and the price of ENS increased by 167% as the volume went up. At the moment, there are over 2 million ENS listings on the NFT marketplace.

Continue reading…

NFT watchdog Rug Pull Finder gets its own NFT giveaway exploited

The NFT watchdog that’s committed to identifying Web3 fraud had its NFT giveaway exploited, allowing two attackers to mint 450 NFTs instead of one per wallet. The team admitted that the exploit was due to a flaw in their smart contract that was pointed out by an anonymous source 30 minutes before the mint went live.

To fix the situation, the Rug Pull Finder team offered one of the hackers a bounty of 2.5 ETH in exchange for 330 of the NFTs, and the attacker accepted the trade. Ironically, the free NFT mint was titled Bad Guys and depicted artworks of scammers that run loose on the blockchain.

Continue reading…

Nifty News: Bill Murray’s wallet hacked, FIFA’s tokenized highlights, Muse tops charts and more…

The NFT drop by American actor Bill Murray was robbed by hackers who to 110 ETH from the total 119.2 ETH generated by the charity effort. Fortunately for Murray, his wallet security team was able to stop the exploiters from taking his other NFTs. Meanwhile, FIFA has started to follow the steps of the NFT collection NBA Top Shot by announcing a project that tokenizes in-game highlights as digital collectibles.

Continue reading…

Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.

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Bitcoin is pinned below $20K as the macro climate stifles hope for a sustainable BTC bull run

BTC bulls have a chance to profit from this week’s $410 million options expiry, but the factors pulling down equities markets reduce the chance of Bitcoin changing its trend.

Bitcoin (BTC) crashed below $19,000 on Sept. 6, driving the price to its lowest level in 80 days. The movement not only completely erased the entirety of the 32% gains accrued from July until Aug. 15, it also wiped out $246 million worth of leverage long (buy) futures contracts.

Bitcoin price is down for the year but it’s important to compare its price action against other assets. Oil prices are currently down 23.5% since July, Palantir Technologies (PLTR) has dropped 36.4% in 30 days and Moderna (MRNA), a pharmaceutical and biotechnology company, is down 30.4% in the same period.

Inflationary pressure and fear of a global recession have driven investors away from riskier assets. By seeking shelter in cash positions, mainly in the dollar itself, this protective movement has caused the U.S. Treasuries’ 5-year yield to reach 3.38%, nearing its highest level in 15 years. By demanding a loftier premium to hold government debt, investors are signaling a lack of confidence in the current inflation controls.

Data released on Sept. 7 shows that China’s exports grew 7.1% in August from a year earlier, after increasing by 18% in July. Furthermore, Germany’s industrial orders data on Sept. 6 showed a 13.6% contraction in July versus the previous year. Thus, until there’s some decoupling from traditional markets, there’s not much hope for a sustainable Bitcoin bull run.

Bears were overly optimistic

The open interest for the Sept. 9 options expiry is $410 million, but the actual figure will be lower since bears became too overconfident. These traders were not expecting $18,700 to hold because their bets targeted $18,500 and below.

Bitcoin options aggregate open interest for Sept. 9. Source: CoinGlass

The 0.77 call-to-put ratio reflects the imbalance between the $180 million call (buy) open interest and the $230 million put (sell) options. Currently, Bitcoin stands near $18,900, meaning most bets from both sides will likely become worthless.

If Bitcoin’s price remains below $20,000 at 8:00 am UTC on Sept. 9, only $13 million worth of these call (buy) options will be available. This difference happens because the right to buy Bitcoin at $20,000 is useless if BTC trades below that level on expiry.

Bears aim for $18,000 to secure a $90 million profit

Below are the four most likely scenarios based on the current price action. The number of options contracts available on Sept. 9 for call (bull) and put (bear) instruments varies, depending on the expiry price. The imbalance favoring each side constitutes the theoretical profit:

Between $17,000 and $18,000: 0 calls vs. 4,300 puts. Bears completely dominate, profiting $130 million.Between $18,000 and $19,000: 0 calls vs. 5,050 puts. The net result favors the put (bear) instruments by $90 million.Between $19,000 and $20,000: 700 calls vs. 1,900 puts. The net result favors the put (bear) instruments by $50 million.Between $20,000 and $21,000: 2,050 calls vs. 2,200 puts. The net result is balanced between bulls and bears.

This crude estimate considers the put options used in bearish bets and the call options exclusively in neutral-to-bullish trades. Even so, this oversimplification disregards more complex investment strategies.

For example, a trader could have sold a put option, effectively gaining positive exposure to Bitcoin above a specific price, but unfortunately, there’s no easy way to estimate this effect.

Related: Bitcoin price hits 10-week low amid ‘painful’ U.S. dollar rally warning

Bulls have until Sept. 9 to ease their pain

Bitcoin bulls need to push the price above $20,000 on Sept. 9 to avoid a potential $130 million loss. On the other hand, the bears’ best-case scenario requires a slight push below $18,000 to maximize their gains.

Bitcoin bulls just had $246 million leverage long positions liquidated in two days, so they might have less margin required to drive the price higher. In other words, bears have a head start to peg BTC below $19,000 ahead of the weekly options expiry.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Voyager Digital assets auction set for Sept. 13 after being rescheduled from August

The centralized crypto lender rejected an had offer from FTX after it filed for Chapter 11 bankruptcy reorganization in July after 3AC defaulted on a loan and its debts topped $1 billion.

Bankrupt centralized crypto lender Voyager Digital filed a notice Tuesday with United States Bankruptcy Court for the Southern District of New York informing the court of its intention to hold an auction of its remaining assets. The auction is proposed to take place on Sept. 13 at the Manhattan office of Digital Voyager’s investment banker Moelis & Company, with a hearing to approve the results on Sept. 29. Offers for the lender’s assets have already been submitted.

Voyagers, we want to let you know that multiple bids were submitted as part of the company’s restructuring process. As a result, an auction is scheduled for September 13th. (1/3)

— Voyager (@investvoyager) September 7, 2022

The auction was originally scheduled for Aug. 29. In order for an auction to be held, multiple parties must show interest in the acquisition of Voyager Digital’s assets. On July 22, FTX made an offer to buy all Voyager Digital assets and digital asset loans, with the exception of loans to Three Arrows Capital (3AC). That offer was labeled “lowball” by the lender and rejected within days.

Related: Maven 11 launches $40M lending pool on Maple as borrowers turn to DeFi

Voyager suspended trading, deposits, withdrawals and loyalty rewards on July 1 and announced July 5that it was going into Chapter 11 reorganization, a form of bankruptcy, with over $1 billion in debts. The company said customers with cryptocurrency in their accounts would receive “a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.”

Voyager Digital’s bankruptcy came days after the company issued a default notice and was exploring legal remedies against Three Arrows Capital, which owed it 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC). Voyager Digital assured customers then that it would continue servicing their accounts. It also engaged Moelis at that time.

In August, the court allowed Voyager Digital to pay “key” employees – the ones the company said were crucial to its continuing operations – bonuses totaling $1.9 million, despite objections from investors. At the time of writing, Voyager Token was selling at $1.07, up 38.92% in 24 hours.

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Price analysis 9/7: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

Bitcoin and select altcoins have dropped to critical support levels and the strength of the rebound lacks strength, increasing the risk of further downside.

After trading near the $20,000 level for several days, Bitcoin (BTC) turned down sharply and dropped below $19,000 on Sept. 6. The fall was not limited to the cryptocurrency markets as the United States equities markets also closed lower on Sept. 6.

Risky assets have been facing selling pressure in the past few days as investors are worried that the Federal Reserve could continue with its aggressive tightening policy. 

The CME FedWatch Tool shows that the probability for a 75 basis point rate hike in the September meeting has risen to 80% from 69% a week back. This extended the rise in the U.S. dollar index (DXY), which closed above 110 on Sept. 6.

The U.S. equities markets and the cryptocurrency markets are attempting a relief rally on Sept. 7 but the recovery is likely to sustain only after the DXY shows signs of topping out.

Daily cryptocurrency market performance. Source: Coin360

Although the bear market has been brutal, it is an encouraging sign to see that venture capital firms have continued to plow money into cryptocurrency and blockchain companies. According to a KPMG report released on Sept. 6, the total investments in the first half of 2022 by these firms hit $14.2 billion, which comes after the record $32.1 billion investments made in 2021.

What are the critical overhead resistances in Bitcoin and altcoins that need to be crossed for the bullish momentum to pick up? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s tight range trading between $19,520 and $20,576 resolved to the downside on Sept. 6. The bears pulled the price to the strong support zone between $18,910 and $18,626.

BTC/USDT daily chart. Source: TradingView

If the price rebounds off the zone, the BTC/USDT pair could rally to the breakdown level of $19,520. The bears will attempt to flip this level into resistance. If they manage to do that, the likelihood of a break below the support zone increases.

That could sink the pair to the vital support at $17,622. A break and close below this level could signal the resumption of the downtrend. The downsloping 20-day exponential moving average (EMA)($20,427) and the relative strength index (RSI) near the oversold territory indicate that bears are in control.

The first sign of strength will be a break and close above the 20-day EMA. Such a move will indicate that bulls are attempting a comeback.

ETH/USDT

Ether (ETH) rose above the moving averages on Sept. 6 but the bulls could not clear the overhead hurdle at $1,700. The bears sold aggressively and pulled the price back below the 20-day EMA ($1,597).

ETH/USDT daily chart. Source: TradingView

The bears will try to build upon the advantage and sink the price below the neckline of the head and shoulders (H&S) pattern. If they succeed, the ETH/USDT pair could drop to $1,422 and then to the important support at $1,280. The pattern target of this bearish setup is $1,050.

Alternatively, if the price bounces off the neckline, it will suggest that bulls continue to view dips as a buying opportunity. The pair could then consolidate between the neckline and $1,700 for some time. A break and close above $1,700 could clear the path for a possible rally to $2,030.

BNB/USDT

BNB turned down sharply from the 20-day EMA ($282) on Sept. 6 and broke below the critical support at $275. This completed a bearish H&S pattern.

BNB/USDT daily chart. Source: TradingView

Generally, after the breakdown from a major support, the price returns to retest the level. In this case, buyers will try to push the price back above $275. If they manage to do that, several aggressive bears may get trapped. That could result in a short squeeze and the BNB/USDT pair could rally to $308.

On the other hand, if the price turns down from $275, it will suggest that bears have flipped the level into resistance. That could start a decline to $240 and if this support also gives way, the next stop could be the pattern target at $212.

XRP/USDT

The bulls pushed XRP above the overhead resistance at $0.34 on Sept. 6 but the bears trapped the aggressive buyers and pulled the price below the immediate support at $0.32.

XRP/USDT daily chart. Source: TradingView

A minor positive is that the bulls have not allowed the price to sustain below $0.32. The long tail on the Sept. 7 candlestick shows buying at lower levels. If the price sustains above $0.32, the XRP/USDT pair could extend its range-bound action for some more time.

Contrary to this assumption, if the price turns down from the current level and sustains below $0.32, it will clear the path for a possible decline to $0.30. The bulls are likely to defend this level with all their might.

ADA/USDT

Cardano (ADA) closed above the 50-day simple moving average (SMA) (0.49) on Sept. 4 and the bulls defended the level on Sept. 5. Buyers tried to extend the relief rally on Sept. 6 but met with a wall of selling near $0.51.

ADA/USDT daily chart. Source: TradingView

The price turned down sharply and broke below the moving averages. Both moving averages are flattish and the RSI is just below the midpoint, indicating a range-bound action in the near term. The ADA/USDT pair could oscillate between $0.44 and $0.51 in the next few days.

The bears will have to sink the price below $0.44 to open the doors for a drop to the crucial support at $0.40. Alternatively, if the price turns up from the current level and breaks above $0.51, the pair could rally to the downtrend line.

SOL/USDT

Solana (SOL) rallied to the 20-day EMA ($33) on Sept. 6 but the bulls could not overcome this barrier. This suggests that the sentiment remains negative and traders are selling on rallies.

SOL/USDT daily chart. Source: TradingView

A minor positive is that the bulls have not allowed the price to dip below the immediate support at $30. If the price turns up from the current level, the bulls will again try to drive the SOL/USDT pair above the 20-day EMA. If they succeed, the pair could rally to the 50-day SMA ($38).

On the contrary, if the price turns down and breaks below $30, the pair could extend its slide to the vital support at $26. The bulls are likely to mount a strong defense at this level because if this support cracks, the pair could resume its downtrend.

DOGE/USDT

The bulls attempted to push Dogecoin (DOGE) above the 20-day EMA ($0.06) on Sept. 6 but the bears sold the rally aggressively and pulled the price below the immediate support at $0.06.

DOGE/USDT daily chart. Source: TradingView

Buyers are attempting to push the price back above $0.06 on Sept. 7. If they succeed, the DOGE/USDT pair could again rally to the overhead resistance at the 20-day EMA. This remains a critical level to watch out for in the near term because a rally above it could push the price to $0.07.

Contrary to this assumption, if the price turns down from $0.06 or the 20-day EMA, it will suggest that bears are selling on rallies. That could increase the possibility of a drop to the strong support at $0.05.

Related: Bitcoin price hits 10-week low amid ‘painful’ US dollar rally warning

DOT/USDT

Buyers attempted to push Polkadot (DOT) above the moving averages on Sept. 5 and 6 but the bears defended the level aggressively as seen from the long wick on the candlesticks.

DOT/USDT daily chart. Source: TradingView

The 20-day EMA ($7.38) is sloping down and the RSI is in the negative territory, indicating advantage to sellers. If bears sink and sustain the price below the immediate support at $6.79, the DOT/USDT pair could slip to the crucial support at $6. The bulls are likely to mount a strong defense at this level.

Alternatively, if the price turns up from the current level and rises above the moving averages, it will suggest strong buying on dips. That could push the pair to $9.17 and later to the overhead resistance at $10.

MATIC/USDT

Buyers defended the 50-day SMA ($0.87) on Sept. 5 and attempted to extend the recovery on Sept. 6 but the bears had other plans. They sold aggressively at $0.92 and pulled Polygon (MATIC) back below the moving averages.

MATIC/USDT daily chart. Source: TradingView

The 20-day EMA ($0.85) has started to turn down and the RSI is near 46, indicating that bears have a slight edge. Sellers will attempt to pull the price to the strong support at $0.75.

This is an important support to watch out for because a break and close below it could complete a bearish H&S pattern. If that happens, the MATIC/USDT pair could start a decline to $0.63 and thereafter to the pattern target of $0.45.

This negative view could invalidate in the near term if bulls push the pair above $0.93. The price could then rise to the strong overhead resistance at $1.05.

SHIB/USDT

The bulls purchased the dip in Shiba Inu (SHIB) on Sept. 5 but they could not sustain the price above the 20-day EMA ($0.000013). This indicates that bears are selling on every minor rally.

SHIB/USDT daily chart. Source: TradingView

The 20-day EMA has turned down and the RSI is just below the midpoint, indicating a minor advantage to bears. The sellers will attempt to sink the price to the psychological support at $0.000010 and then to $0.000009. Buyers are expected to defend this support zone with vigor.

Another possibility is that the price turns up from the current level and breaks above the moving averages. Such a move will suggest that selling dries up at lower levels. The SHIB/USDT pair could first rise to $0.000015 and later to $0.000018.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Binance US launches low-barrier Ethereum staking ahead of The Merge

Users can receive up to 6.0% APY with 0.001 ETH staking minimums, but risks apply.

On Wednesday, the U.S. subsidiary of cryptocurrency exchange Binance announced that it would introduce an Ethereum (ETH) staking program with annual percentage yields of up to 6.0%. Unlike direct staking on the Ethereum network, which would require 32 ETH, only 0.001 ETH would be required under the new service introduced by Binance US. Regarding the development, Brian Shroder, CEO of Binance US, said: 

“ETH plays a critical role in the broader Web3 ecosystem. As the Ethereum network continues to transition towards The Merge, we are thrilled to offer ETH staking with some of the highest APY rewards in the industry.”

The staking yields are in part boosted by features such as Binance US’ automatic restake, which enables the compounding of returns. However, users cannot unstake ETH at the moment, and rewards will not be distributed until Ethereum first transitions from a proof-of-work blockchain to proof-of-stake through the upcoming Merge upgrade scheduled for Sept. 15. Then, through a future “Shanghai Upgrade” contingent on successful Merge completion, users will then be able to withdraw their staked ETH.

Due to the complicated nature of the upgrade, there is no guarantee that the transition will be smooth. Users’ funds are, therefore, subject to risks such as prolonged return of funds or loss of principal if the upgrade fails. Binance US says it has no control over the manner and ultimate amount of staked ETH investors can receive back. At the time of publication, 21.6% of Ethereum nodes remain unsynced to The Merge upgrade. 

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What will drive crypto’s likely 2024 bull run?

Easing monetary policies, the decline of inflation, the change in Bitcoin’s mining difficulty, and growing confidence in DeFi are factors that point to a renewed surge for crypto prices.

Decentralized finance (DeFi) has seen tremendous growth since its inception, expanding by more than 1,200% in 2021 in total value locked (TVL) and surpassing $240 billion in invested assets. While DeFi has since dropped to around $60 billion TVL as a result of wider macroeconomic trends, such as rising inflation, the seeds are in place for DeFi to reconfigure the foundations of our financial infrastructure when the next market cycle comes. 

Historically, the return to a bull market develops over a four-year trajectory. This time, a recovery in 2024 is highly feasible due to the maturation of monetary policy and easing of regulatory headwinds, which can allow for reduced interest rates and enable the flow of funding back into the space.

That bull market is likely to be driven by four factors: the taming of global inflation, renewed confidence in the sustainability of DeFi business models, the migration of at least 50 million crypto holders from the world of centralized exchanges to the world of decentralized applications (there are more than 300 million crypto holders worldwide today, mostly via exchanges), and, potentially, the next change in Bitcoin (BTC) mining difficulty.

Source: DeFi Llama

Everyone is wondering where users and developers should turn next for opportunities. Is the next cycle going to repeat the 2020 “DeFi summer,” only bigger and with more users?

A shift to economic sustainability

Startup founders can no longer rely on “magic internet money.” What this means is that the market is unlikely to revert to the levels of confidence that allowed DeFi protocol founders to reward early users with large amounts of protocol-generated tokens, thus subsidizing annual yields of more than 100% or even 1,000% on invested capital.

While DeFi protocol tokens will continue to have a role to play, the minting of these tokens is going to be under increased scrutiny. Market participants will be questioning whether the protocol is able to generate enough fees to fund its treasury and eventually retain (or invest) more value than what it is distributing to end-users via inflation or rewards.

Related: Bitcoin bulls may have to wait until 2024 for next BTC price ‘rocket stage’

Of course, this does not mean that DeFi protocols are expected to be profitable from Day 1. Web3 founders will need to consider the concept of unit economics, borrowed from Web2 and Silicon Valley. This will allow a tech-enabled business model to generate free cash flow in excess of operating and user acquisition costs once outsized early-stage investments are not required anymore.

In the world of DeFi, the concept of unit economics translates into an imperative to achieve capital efficiency for liquidity providers and market makers. Simply put, this means that a DeFi protocol must eventually be able to generate enough transaction fees to reward liquidity providers once it cannot rely on arbitrary protocol token inflation anymore.

What this means for decentralized exchanges

Decentralized exchanges (DEXs), also called automated market makers, have always been at the forefront of DeFi. For example, SushiSwap pioneered the concept of protocol-sponsored early adopter rewards and “vampire attacks” to incentivize liquidity providers to move away from Uniswap.

DEXs have historically not been capital efficient, requiring large amounts of liquidity from liquidity providers in order to power every dollar of daily trading volume in a decentralized manner. As liquidity pools generate low fees per dollar of liquidity locked, they relied on protocol-generated tokens to generate sufficient rewards for liquidity providers.

We are now seeing the emergence of more capital-efficient DEXs in a trend that is likely to be followed by every other DeFi vertical.

For example, Uniswap v3 allows liquidity providers to concentrate their capital to enable trading between specific price ranges only. This allows one dollar of liquidity to enable many more dollars of daily trading volume, as long as the prices stay within that range, and thus capture more transaction fees per dollar invested in liquidity without relying on protocol-generated token inflation.

Related: Crypto users push back against dYdX promotion requiring face scan

Another example is dYdX, a decentralized derivatives platform. As dYdX utilizes an order book to match buy and sell orders, it does not require regular users to commit liquidity in liquidity pools and relies instead on much more efficient professional market makers to act as counterparties to end-users.

Capital efficiency is the name of the game

The next wave of DeFi innovation is going to come from founders who are able to design decentralized business models that generate sustainable unit economics for liquidity providers and market makers.

The startups that will create these business models may not even exist today. As a result, we are seeing a proliferation of early-stage Web3 startup accelerators looking for the “next big thing” (for example, Cronos, Outlier Ventures or BitDAO).

In order for DeFi to continue accelerating growth among the next generation of Web3 users, founders and projects will need to continue to build a variety of options with different risk and reward profiles. With an increasing number of interoperable blockchains that offer high throughput and low transaction rates, developers are presented with a diverse array of options upon which to further develop DeFi and yield-generating decentralized applications. As Web3 moves toward a multichain future, competition will help foster innovation in order to deliver the best products for end users.

Ken Timsit is the managing director of Cronos chain and Cronos Labs, the first Ethereum Virtual Machine-compatible layer-1 blockchain network built on the Cosmos SDK.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Cardano (ADA) eyes 15% rally despite Charles Hoskinson’s fear over ‘macro factors’

Cardano’s Vasil update is expected to be a bullish event, but macro fears are strongly countering the upside bias.

Cardano (ADA) will undergo a major network update called “Vasil” on Sept. 22, potentially making its blockchain more scalable and cheaper. Nonetheless, the news has failed to spark any decisive upside momentum in ADA’s market.

Macro factors weigh on ADA’s best upside scenario

In detail, ADA’s price has risen approximately 3.5% to $0.51 since the Vasil launch announcement, including a circa 14% rally followed by its near-perfect wipeout. In other words, traders initially bought the Vasil hype but were quick to exit markets, as illustrated by the price action below.

ADA/USD four-hour price chart. Source: TradingView

Cardano Founder Charles Hoskinson blamed “macro factors” for ADA’s underperformance despite the Vasil euphoria, noting that the crypto markets, on the whole, are “disconnected from reality.” He added:

“Cardano has never been stronger and frankly many other projects are also solid across the industry, yet you don’t see that reflected — just a sea of red.”

The statements appeared as riskier assets prepared for another deep plunge in the days leading up to the Federal Open Market Committee‘s (FOMC) meeting on Sept. 20 through Sept. 21.

Markets believe that the Federal Reserve officials will vote to increase benchmark interest rates by another 0.75% on Sept. 21. Overall, the U.S. central bank is looking to raise the rate to 3.75% to 4% by the end of 2022.

Fed’s dot plot. Source: Bloomberg

A high-rate environment could hurt Cardano and other top-cap crypto assets, given it will likely increase the appeal of cash-based instruments among investors.

Is a “mini” Cardano rally ahead?

From a technical perspective, Cardano looks ready to undergo a mini rally in the days leading up to the Vasil hard fork.

On the four-hour chart, ADA’s price tests a support confluence for a potential rebound move. This confluence is made up of a multi-week ascending trendline and a support bar highlighted in the chart below.

ADA/USD four-hour price chart. Source: TradingView

Suppose ADA rebounds from the confluence. Then, the ADA’s immediate upside target is around $0.50. This level is a meeting point of two resistance levels: a “multi-week descending trendline” and a “mid-level target” that has served as a price ceiling since mid-August.

Meanwhile, a break above $0.50 could have ADA bulls test $0.53 as their primary upside target, a level with a significant history as resistance. In other words, ADA could print a 15% gain ahead of the Vasil hard fork when compared to its today’s price.

Related: Cardano outranks Bitcoin in global top intimate brands in new report

However, ADA looks weaker on its longer-timeframe charts, with its three-day performance revealing the presence of a bearish continuation pattern dubbed a “descending triangle.”

ADA/USD three-day price chart. Source: TradingView

ADA risks dropping to $0.26 if it decisively breaks below its descending triangle’s lower trendline, as per rules of technical analysis. In other words, a nearly 40% price decline from current prices.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Thai SEC files police report on Zipmex, alleging ‘incomplete’ info for compliance procedures

The Cyber Crime Investigation Bureau in Thailand will now consider whether to pursue legal action against Zipmex following the SEC’s allegations.

Thailand’s Securities and Exchange Commission, or SEC, has accused crypto exchange Zipmex and its co-founder Akalarp Yimwilai of non-compliance with local laws and referred the matter to the police.

In a Wednesday announcement, the Thai SEC alleged Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act. The regulator claimed that both Akalarp and the exchange forwarded incomplete information outside of an approved timeframe without providing a “reasonable cause” or excuse.

“Such actions by Zipmex and Mr. Akalarp are considered to be non-compliance with the competent official’s orders, which is an offense and has a penalty under Section 75 of the Digital Assets Act,” said the regulatory body. “The SEC has accused Zipmex and Mr. Eklarp to the [Cyber Crime Investigation Bureau], to consider further legal action.”

ก.ล.ต. กล่าวโทษ Zipmex และผู้บริหาร ต่อ บช.สอท. กรณีไม่ปฏิบัติตามคำสั่งพนักงานเจ้าหน้าที่ https://t.co/VDTTcmaNsw

— ThaiSEC_News (@ThaiSEC_News) September 7, 2022

Zipmex responded to the SEC’s earlier request for information in a Wednesday blog post, saying it was “in the process of compiling relevant documents that belong to both Zipmex itself and Zipmex Pte. Ltd., an entity which is not under the regulatory jurisdiction of the Thai SEC”:

“Any disclosure of Zipmex Pte. Ltd.’s information must be carried out with the utmost care and consideration to ensure that regulations are fully complied with and standards such as data privacy are duly observed.”

The crypto exchange suspended withdrawals in July, citing a “combination of circumstances beyond [its] control.” At the time, Zipmex co-founder Marcus Lim denied reports the exchange was experiencing financial difficulties. However, the firm later filed for debt relief in Singapore and was granted more than three months of creditor protection following a decision from the country’s High Court. The exchange has until Dec. 2 to present a restructuring plan.

Related: Zipmex requests meetings with Thai regulators to discuss ‘recovery plan’

In a Sept. 1 message on its Facebook page, Zipmex said it will be holding an online town hall meeting for both English and Thai speakers on Sept. 14 with its financial and legal advisers. The firm operates crypto exchanges in Thailand, Australia, Indonesia and Singapore.

Cointelegraph reached out to Zipmex, but did not receive a response at the time of publication.

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Number of unique BAYC buyers plunged in August to second-lowest on record

Only 263 unique buyers purchased a piece of the popular NFT collection.

According to data from cryptoslam.io, the number of unique buyers for the nonfungible tokens (NFT) collection Bored Ape Yacht Club (BAYC) has fallen to 263 for the month of August, with 438 total transactions. These metrics were the second-lowest on record since the collection’s launch in April 2021. 

Since crypto winter began earlier this year, the average transaction value of BAYC NFTs has fallen to $106,456, compared to a peak price of $312,101 per ape collectible in April 2022. In May 2021, the collection saw the peak number of buyers and transactions, at 3,550 and 9,255, respectively.

An estimated $55 million worth of BAYC and CryptoPunks NFTs are at risk of liquidation due to users pledging them as collateral to take out loans denominated in Ethereum — the price of which has fallen drastically in value in recent months. Yuga Labs, the owner of both collections, is also facing a class-action lawsuit alleging that the firm “inappropriately induced” the community to buy BAYC NFTs at an “inflated price.” 

In the first half of the year, the BAYC community Discord was breached three times as hackers deployed sophisticated phishing techniques in attempts to access the lucrative NFTs. To date, the sale of BAYC NFTs has surpassed 850,597 ETH or $2.4 billion at current prices. Cointelegraph previously reported that asset trading platform OpenSea saw NFT transaction volumes plunge 99% from its peak. 

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Why Prince Philip of Serbia is bullish on Bitcoin (not crypto)

In an exclusive interview with Cointelegraph, Prince Philip Karageorgevitch, Hereditary Prince of Serbia and Yugoslavia, explains his reason for being bullish on Bitcoin

Philip Karageorgevitch, Hereditary Prince of Serbia and Yugoslavia, is a strong proponent of Bitcoin while he criticizes altcoins for being mere attempts to copy the original cryptocurrency. 

“People want to make fiat. They want to make money. And so they’re going to use Bitcoin’s technology, Bitcoin’s ideas and try to make them their own and try to ride that fad,”, he said in an exclusive interview with Cointelegraph.

Philip is convinced that Bitcoin is the only cryptocurrency that has the potential to fix one of the biggest problems affecting the world: the problem of money.

“The reason why the world’s in such a terrible shape is because of the money. People think, “Yeah, money corrupts,” but actually, no, money is corrupted itself and that needs to be changed,” he said. 

To understand more of Prince Philip’s views on Bitcoin and crypto, watch the full interview on our YouTube channel and don’t forget to subscribe!

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