DFX Raises $5 Million to Bring Foreign Exchange to the Blockchain 

DFX, a decentralized foreign exchange protocol optimized for stablecoins, raised more than $5 million in seed funding from Polychain Capital and True Ventures.

Participating investors include Boost VC, Hex Capital, Lemniscap, CMS Holdings, Castle Island Ventures, FBG Capital, DeFi Alliance, Divergence Ventures, and SRC Capital and strategic advisors Noah Jessop, Daniel Que, Nemil Dalal, Russell Verbeeten, and Michael Dunworth.

DFX aims to bootstrap liquidity and garner more adoption of non-USD-based stablecoins, beginning with liquidity mining launching with three foreign stablecoins: CADC, EURS, and XSGD. The company will provide the most competitive interest rates for liquidity of CADC, EURS, and XSGD currency pairs. The goal is to release a decentralized exchange optimized for foreign stablecoins using FX feeds supplied by oracles.

“We are on a mission to build the infrastructure to enable on-chain FX swaps that minimize slippage, optimize capital and maximize utility,” said Kevin Zhang, core contributor at DFX. “We’re creating a new market for non-USD currencies and opening up DeFi applications to a global audience that use these currencies.” Other team members include DeFi veterans Henry Chan, Adrian Li, and Kendrick Tan, who have worked on numerous other Ethereum projects in the space. They have come together to build an inclusive protocol around a global community.

“We’re excited to support the talented DFX team as they expand the suite of stablecoins available in the DeFi ecosystem. By bringing FX into the DeFi space, we believe DFX will enable dozens of novel applications. Ultimately, we believe DFX is well-positioned to become a core piece of DeFi infrastructure,” said Niraj Pant, partner at Polychain Capital.

Many DeFi users living outside of the U.S. have to take on USD risk when depositing, collateralizing, and pooling liquidity. DFX provides options for those seeking to diversify their risk outside of USD using their native currency. As much as USD is generally considered the global reserve currency, most of the world still transacts with their own native currency in a day-to-day manner. DFX wants to ensure they have the option to leverage and utilize DeFi.

“We like to invest in co-founding teams who have worked together successfully before and who are driven by a greater mission,” said Adam D’Augelli, partner at True Ventures. “Kevin and the DFX team have both, in addition to deep ties to the Ethereum community. They’re fast-moving, sharp, community-focused, and looking to solve a high-impact problem in this space. We’re excited to partner with them early on.” 

“Kevin and Henry have built one of the largest fiat on/off ramps in Canada and are now leveraging that experience to build DFX,” said Ali Saheli, founder at Hex Capital. “We believe DFX will be a crucial building block in making DeFi truly decentralized by onboarding new users from all over the world with their native currencies.” 

About DFX

DFX is bringing more foreign stablecoins into its ecosystem to create a network of fiat-backed stablecoins. The team is on a mission to build the largest on-chain FX network with the most liquidity and coverage — and the best prices.

Disclosure: One or more members of Crypto Briefing’s management team invested in DFX. 

DeFi exchange protocol DFX raises $5M in seed funding led by Polychain Capital

Polychain Capital has bet on a new DeFi exchange protocol looking to boost the adoption of stablecoins in DeFi.

Veteran cryptocurrency investor Polychain Capital has joined a funding round in DFX Finance, a new decentralized finance exchange protocol optimized for non-U.S. dollar stablecoins.

DFX raised more than $5 million in seed funding from Polychain and True Ventures to create a new blockchain-powered market for stablecoins and open up DeFi applications to a global audience. Announcing the news Wednesday, DFX said that other investors included industry players like Hex Capital, CMS Holdings, Castle Island Ventures, and DeFi Alliance.

DFX is currently being developed by contributors from major crypto projects and firms like the Ethereum Foundation and ConsenSys. The platform is looking to provide a solution for DeFi users residing outside of the United States who often have to take on U.S. dollar risk when depositing, collateralizing and pooling liquidity.

As such, DFX will debut liquidity mining launching with three foreign stablecoins, including the Canadian dollar-pegged CADC, euro-based EURS, and the Singapore dollar-pegged XDGD. As the platform grows, DFX will add more stablecoins, and plans to allow DFX token holders to vote for new coins they'd like to add to the platform. 

In order to enable liquidity mining, DFX is using major U.S. dollar-pegged stablecoin USD Coin (USDC). “We leverage USDC in the heart of DFX as all of our non-USD stablecoins are paired with USDC,” core DFX contributor Kevin Zhang told Cointelegraph.

Niraj Pant, partner at Polychain Capital, believes that DFX has solid potential to become a major player in DeFi industry:

“By bringing FX into the DeFi space, we believe DFX will enable dozens of novel applications. Ultimately, we believe DFX is well positioned to become a core piece of DeFi infrastructure.”

Amid the DeFi industry steadily gaining momentum, Polychain Capital has been actively investing in various DeFi projects. Earlier in February, the company participated in a $1 million funding round for Manta Network to help the startup build a fully private decentralized exchange on Polkadot.

How ethbox Can Help Generate Passive Income

ethbox offers a number of unique safety and privacy features to help those sending and receiving cryptocurrencies on the Ethereum blockchain. These features make ethbox the pinnacle of transacting ETH securely across the globe. However, this isn’t all ethbox is good for. Backed by its own deflationary token, $EBOX—ethbox offers a number of great ways for holders to generate a passive income. Let’s have a look at how:

Multiple sources of income with EBOX

Holders of EBOX can grow their wealth passively in a number of ways. While nobody is suggesting you give up your day job straight away, the growth in value of many cryptocurrencies has seen many people forge a better financial outlook. You’ve probably seen how much Bitcoin and even Ethereum have gone up in the last few months and years—but they aren’t the only tokens you can generate a viable income with.

While Bitcoin has obviously been generating the most news—it actually only provides one source of income. The only real way you can make money with Bitcoin is because of a growth in the value of the coin. Those gains will only be realized when any holdings are sold. With EBOX, there are multiple ways to grow your wealth, including when simply holding the token. In other words, you can realize gains without selling the coin, making it a more viable passive income generator than many other tokens.

Staking with EBOX

Staking generates a passive income for EBOX holders for 4 years. 18% of the total EBOX token supply will be held back and reserved for staking rewards. This will help generate a sustainable income for all EBOX holders and stakers.

Shared payouts from EBOX fees

While the fees for ethbox users are progressive and competitive, EBOX token holders will also benefit from shared payouts. 25% of all fees taken will be shared out between EBOX holders—a unique benefit that sets this token apart from many others in the crypto space.

Growth in the value of EBOX

If you simply want to buy and hold EBOX, the value of your holdings should continue to grow over time. The prospects for the growth of EBOX are great, making it a viable investment, especially when you bear in mind the other revenue-generating options EBOX gives.

As with other cryptocurrencies, EBOX can be bought and held for either short or longer periods. While your funds won’t be realized until you sell, this can be supported by the other passive income streams available with EBOX.

In this article, you can see some key reasons for the future growth of EBOX

It’s worth remembering that the future growth of EBOX is strong because of the additional revenue streams the token brings, not just alongside them. As more and more people see the benefits of EBOX, more will buy—driving the price up over time. 

ethbox discounts

Every EBOX token holder also gets a discount and reduced service fees for every ethbox transaction. That means if you’re using ethbox to secure your transactions, you’ll pay lower fees if you’re an EBOX holder. Over time, lower fees really do add up—so you’ll be earning by saving with ethbox and EBOX. This is especially useful if you send large amounts of cryptocurrency more frequently.

As you can see, there are a number of key reasons why EBOX could be one of the best tokens around for generating income, both in price growth and via a variety of different passive income streams.

Crypto on-ramp hits Opera browser following Simplex integration

Integration with payment processor Simplex means Opera browser users now have another route from fiat into crypto.

Users of the Opera browser will now be able to purchase cryptocurrencies from directly within the web application following a partnership with Simplex. Founded in 2014, Simplex is an European Union-licensed fintech company that provides access to over 50 cryptocurrencies, and a principal member of the Visa network.

The Opera browser was one of the first to integrate cryptocurrency usage into its core functions, supplying in-built wallets for Bitcoin (BTC), Ether (ETH) and Tron (TRX). Now users will be able to move from fiat to crypto with the same ease.

Simplex’s technological infrastructure is used by numerous well-known cryptocurrency exchanges, such as Binance, Kucoin, OKEx, and others. The firm has partnered with over 350 crypto institutions since its launch, supplying access to cryptocurrencies via debit and credit card purchases.

The Opera browser’s focus on privacy sees it come with a free built-in VPN, and in 2020 it became the first browser to allow access to the decentralized web “.crypto” URLs, in combination with Unstoppable Domains.

A Simplex representative told Cointelegraph the integration was in response to user demand, and that in-browser Know Your Customer checks can be completed in minutes. 

Opera is currently the fifth most used browser in the world taking up around 2.5% of the market share behind Chrome, Safari, Firefox and Microsoft Edge.

Microstrategy Bought the Bitcoin Dip, Adding 19,452 BTC at $52.7k Each

Microstrategy Bought the Bitcoin Dip, Adding 19,452 BTC at $52.7k Each 2

In brief:

  • Microstrategy has announced the purchase of 19,452 BTC for a total of $1.026 Billion
  • The company bought the Bitcoins at an average of $52,765 per BTC
  • Microstrategy now holds 90,531 Bitcoins at an average entry of $23,985 per Bitcoin
  • Square had earlier announced its purchase of 19,452 BTC for $170 Million

The CEO of Microstrategy, Michael Saylor, has announced that the company bought an additional 19,452 Bitcoins for a total of $1.026 Billion. Mr. Saylor also explained that the average price of each Bitcoin was $52,765 thus hinting that the company probably bought the latest Bitcoin dip.

According to the official announcement, Microstrategy now holds 90,531 Bitcoins at an average entry of $23,985 per BTC, exclusive of fees and expenses.

Michael Saylor went on to explain that accumulating Bitcoin was at the core of the company’s vision in addition to its software business.

The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin.

The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value.

We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin

Square Buys $170 Million Worth of Bitcoin

Mr. Saylor’s announcement of Microstrategy purchasing 19,452 BTC comes a day after Square announced that it had purchased $170 million worth of Bitcoin. Square, the parent company to CashApp, bought approximately 3,318 Bitcoins adding to its October 2020 purchase of 4,709 Bitcoins.

The team at Square went on to reveal that both purchases of Bitcoin represent approximately five percent of the company’s total cash, cash equivalents and marketable securities as of December 31st, 2020.

Square’s vision of accumulating Bitcoin is also aligned with that of Microstrategy. Furthermore, the company believes that cryptocurrencies are an instrument of economic empowerment that provides individuals with a means of participating in the global monetary system as well as securing their own financial future.

MicroStrategy purchases another $1 billion worth of Bitcoin, now owns 90,000 BTC

CEO Michael Saylor said the firm didn't intend to slow down the rate of its Bitcoin acquisitions after buying another $1 billion worth of BTC.

Business intelligence firm MicroStrategy increased its Bitcoin (BTC) holdings by 27% on Feb. 24, after purchasing an additional 19,452 coins, taking its total BTC haul to 90,531 Bitcoin.

Announced on the company’s website on Wednesday, the coins were reportedly purchased for approximately $52,765 per coin, equating to an outlay of just over $1 billion.

MicroStrategy Incorporated CEO Michael Saylor said the firm’s focus was now two-fold: grow its analytics software enterprise, and buy more Bitcoin. 

Saylor said, “The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin."

In the six months since MicroStrategy announced its first $250 million investment in Bitcoin, the company has gone on to spend in excess of $4 billion on the digital asset. Saylor said there was no plan to stop buying BTC any time soon.

“The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin."

The value of MicroStrategy’s purchase exceeded the figures previously floated by the firm, which announced it would raise $900 million to buy more Bitcoin on Feb. 17.

Phong Le, president and chief financial officer at MicroStrategy, said the Bitcoin purchases would help enhance awareness of its brand as a software business, while also acting as a sign of faith in the Bitcoin network.

“We believe our bitcoin strategy, including our bitcoin holdings and related activities in support of the bitcoin network, is complementary to our software business, by enhancing awareness of our brand and providing opportunities to secure new customers," he said.

MicroStrategy Buys Another 19,452 BTC at Average Cost of $52,765 per Bitcoin

On Wednesday (February 24), Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR) announced details of its latest Bitcoin purchase. According to the company’s press release, the software firm that many uniformed retail investors think of as a sort of unofficial Bitcoin ETF due to the large number of bitcoins it holds in its corporate treasury, it “purchased an additional […]

MicroStrategy’s Bitcoin Stash Surpassed USD 4.5B And They Want More

One of the most bullish non-crypto companies, US-based software developer MicroStrategy, confirmed that it recently acquired BTC 19,452, increasing its stash to BTC 90,531 (USD 4.5bn). In their latest deal, the Michael Saylor-led company spent USD 1.026bn (inclusive of fees and expenses) paying an average price of approximately USD 52,765 per BTC, the firm said. Now,

Square Adds 3318 Bitcoins to its Cryptocurrency Reserves

Square, Inc., a California-based financial service and mobile payment company that makes software and hardware payments products has announced to purchase 3,318 Bitcoins for around $170 million. This is the second major investment of the company in the world’s most speculative digital asset. Previously the company bought $50 million worth of Bitcoin in October 2020 to enhance …

MicroStrategy buys another 19,452 Bitcoins for $1.026 billion

Further increasing their Bitcoin holdings, publicly traded company MicroStrategy has now acquired an additional 19,452 Bitcoins worth about $1.026 billion. The company’s CEO Michael Saylor broke the news on Twitter and said that MicroStrategy purchased the asset for $52,765 per bitcoin.    As of 24 February, the firm holds about 90,531 Bitcoins to date, making it […]

CoinShares Launches Ethereum-Backed ETP Worth $75 Million

One of Europe’s largest crypto investment firms, CoinShares, is launching a physically-backed exchange-traded product (ETP) focused on Ethereum.

New ETP Gives Exposure To ETH

CoinShares’ latest ETP is listing on the SIX Swiss Exchange under the ticker ETHE and already has around $75 million in assets under management (AUM).

The ETP product will track the underlying asset, ETH, and will be traded as a security whenever the stock exchange is open.

Each unit of ETHE is backed with 0.03 Ether and provides investors with passive exposure to Ethereum’s native asset.

“In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum,” said CoinShares’ Chief Revenue Officer Frank Spiteri.

CoinShares currently manages over $4 billion in assets on behalf of clients ranging from retail investors to institutional customers.

Earlier in Jan 2021, CoinShares launched a physically-backed product (Ticker: BITC) on Bitcoin as well.

In the last year, the cryptocurrency sector has seen demand shifting from being retail investors to institutions, letting products such as derivatives like ETPs gain tremendous popularity.

In fact, in Jan alone, AUM across all crypto ETPs increased 95% to a record $35.9 billion from the previous month, as per a report by research firm CryptoCompare.

Bitcoin Still Above USD 50K, Ethereum and Altcoins Gain Momentum

Bitcoin price remained stable above USD 48,000 and it even settled above USD 50,000. BTC is now facing hurdles near USD 51,500 and USD 52,000. It is currently (12:30 UTC) trading above USD 50,000 and the bulls could possibly attempt a break above USD 52,000. Besides, most major altcoins are gaining bullish momentum. ETH broke the USD 1,665 resistance and it even spiked above USD 1,700. XRP/USD is

MicroStrategy Completes Another $1 Billion Bitcoin Buy

MicroStrategy, the company, spearheaded by one of Bitcoin’s biggest proponents, MicroStrategy, has just confirmed the purchase of another 19,452 BTC.

  • In an announcement published today, February 24th, MicroStrategy, the largest independent publicly-traded business intelligence company, has revealed the purchase of 19,452 bitcoins.
  • The company paid approximately $1,026 billion in cash for the BTC.
  • The average price at which MicroStrategy executed the trades is approximately $52,765 per coin, which includes the expenses and fees.
  • With this, the company now sits on approximately 90,531 bitcoins, currently worth just shy of $4.6 billion.
  • This equates to 0.43% of the total supply of Bitcoin that will ever be in circulation.

Speaking on the matter, Saylor said:

The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin. […] The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.

  • The move was somewhat expected. As CryptoPotato reported earlier in February, the company revealed its price to offer convertible senior notes to raise money and buy Bitcoin.

Binance Tests New IEO Format With AC Milan Fan Token

Today, major crypto exchange Binance tested its new initial exchange offering (IEO) format with the sale of AC Milan Fan Token (ACM) built on the Chiliz blockchain. The sale, hard-capped at USD 1 million worth of BNB coins, was oversubscribed by 1,484x, the exchange said. 27,414 participants committed BNB 5.7m (USD 1.57bn) in order to obtain 205,128 ACM at USD 4.875 price

CoinShares launches new physically-backed Ether ETP

Digital asset manager CoinShares is listing its second cryptocurrency exchange-traded product on the SIX Swiss Exchange.

Major European digital asset manager CoinShares is expanding its product portfolio with a new physically-backed Ether (ETH) exchange-traded product, or ETP.

Called CoinShares Physical Ethereum (ETHE), the new investment product is launching with around $75 million in assets under management. Announcing the news Wednesday, CoinShares said that each unit of ETHE is backed with 0.03 ETH at launch.

The news comes shortly after CoinShares launched its first cryptocurrency ETP, CoinShares Physical Bitcoin (BITC), in January 2021. Similar to BITC, the new ETH ETP will be initially listed on SIX Swiss Exchange. The new product intends to provide investors with passive exposure to Ethereum’s native asset at a base fee of 1.25%.

According to an announcement by Bloomberg, Nomura Holdings-backed digital asset custodian Komainu will serve as custodian for the new CoinShares’ product. Established in partnership with CoinShares, the custodian has already been servicing BITC as well.

ETHE is now listed on Bloomberg with an opening price of $47.30.

Source: Bloomberg

SIX Swiss Exchange is one of the world’s biggest exchanges providing its trading platform for various cryptocurrency ETPs, including 12 diversified crypto-asset ETPs by Swiss crypto ETP issuer 21Shares. The company is the first exchange in the world to receive regulatory permission to approve cryptocurrencies as underlying instruments for derivatives.

Cryptocurrencies Are a Major Concern Says RBI Governor as India Contemplates Crypto Ban

The Reserve Bank of India’s issues with the cryptocurrency space continue as the nation’s central bank has expressed “major concerns” about its development and potential impact on the country’s economy.

Simultaneously, though, bank representatives have confirmed that the world’s second most populated country is looking into launching a digital rupee.

Crypto is a Major Concern, RBI Says

It’s no secret that India’s central bank has had issues with the cryptocurrency industry for years. The RBI prohibited its clients from working with any digital asset representatives in 2018, which was regarded as an all-out ban.

Although India’s Supreme Court ultimately lifted this decision in 2020, the RBI has taken every opportunity to highlight potential problems coming from bitcoin or other crypto assets. The latest set of such issues came from the current governor of the bank – Shaktikanta Das.

Cited by Bloomberg, the 63-year-old said that the RBI had sent all these “major concerns” to the Indian government. Although he failed to disclose their precise nature, he has previously indicated that the alleged usage of cryptocurrencies in illegal activities and money laundering have raised many red flags.

Governor Shaktikanta Das. Source: FinancialExpress
Governor Shaktikanta Das. Source: FinancialExpress

Das’s comments come amid discussions within the Indian government to institute a ban on private cryptocurrencies. If accepted, the proposed legislation will essentially make the entire industry illegal within the nation’s borders.

Going for a Digital Rupee

While the RBI and the government explore a way to ban private cryptocurrencies, both parties are heading down the road of launching a central bank digital currency (CBDC).

Das confirmed the speculations saying that the bank is “very much in the game” in developing and launching the digital form of the rupee. The bank hasn’t set a date for releasing it, but Das said that the project is “receiving our full attention.”

With its plans to roll out a digital currency, the RBI has joined other nations with similar intentions. Perhaps no other central bank is more advanced on this matter than the People’s Bank of China.

The world’s most populated country has taken its CBDC testing to the people with several trials in different regions. The latest and largest one, reported by CNBC, will occur in the southwestern Chinese city of Chengdu.

Citizens can join through a lottery for one of 200,000 vouchers, each worth between $27 and $37. Consequently, the total handout will be 40.2 million yuan ($6.2 million).

Standard Bank Group Partners with Hedera Hashgraph

Hedera, a public Hashgraph network and Governing Council, has partnered with Standard Bank Group, the largest African Bank in terms of assets, to bind the loose ends that exist in cross-border trade processes. The cross-border trades are still beset with lengthy settlement periods, asymmetry of relevant information between multiple parties involved in a transaction, which …

Bitcoin Cash, Ontology, Dash Price Analysis: 24 February

After market leaders Bitcoin and Ethereum recaptured key levels on their respective price charts, the broader altcoin market flashed green as capital poured back into the crypto-market. While BTC regained the $50k-price level, ETH climbed past the $1,500-level again. As expected, alts such as Bitcoin Cash, Ontology, and Dash took positive cues from these developments […]

Bitcoin price recovers above $50,000 as Square buys $170M worth of BTC

TL;DR Breakdown

  • Square acquires $170 million worth of Bitcoin.
  • Bitcoin’s price has reversed to hit a high above $50,000.
  • Bitcoin Liquidation becomes a concern for analysts.

Bitcoin price rises

After Bitcoin price made an all-time high, the price took a huge dip on Monday to about $47,000. The crash extended to the following day as the price dropped further to hit a low at $45,000. The drop was linked to the comments from the U.S. Treasury Secretary when she referred to Bitcoin as very inefficient. 

However, bitcoin has made a huge recovery following the news of Square going bullish on Bitcoin. Square, a Paypal rival, had earlier this year acquired about $50 million worth of Bitcoin. The payments firm has bought the dip on Bitcoin today at $53,125.

The firm bought an additional $170 million worth of Bitcoin. At the moment, the total worth of Bitcoin purchased by the company so far now stands at $253 million. The total Bitcoin in Square’s custody is about 5% of its last recorded cash reserve, cash equivalents, and marketable securities.

The market has reacted to the purchase as Bitcoin price to an intraday high and then retraced. A report reveals that the shallow correction could drive more institutions traders to buy more Bitcoin. It further stated that the only drivers that could make that happen right now are high inflation and devalued currency.

Bitcoin liquidity concerns

Analysts have raised concerns about the liquidity problems of Bitcoin. One of the analysts to have raised the issue is Ben Lilly, a crypto economist. He noted through a publication that companies like MicroStrategy are acquiring Bitcoin to drive the price higher.

He added that retail traders construed the move from these large institutions as an indication to hold. More buyers are now collateralizing Bitcoin at DeFi pools to earn rewards. This pointsout that the available supply of Bitcoin is gradually dropping.

Analyst Who Accurately Called Bitcoin’s Biggest Crash Outlines BTC’s Potential Trajectory, Analyzes State of XRP

A veteran trader who built a reputation in the crypto space after calling the start of Bitcoin’s last bear market is mapping out key price levels for the flagship cryptocurrency.

Peter Brandt is unveiling his buy zone for the leading crypto asset to his 428,400 Twitter followers, based on the depth of corrections of the previous bull market.

“10% correction has been met – might be all we get. A 20% correction would be to $46,693. A 30% correction would be to $40,856. A 35% correction (avg of 30%+ corrections in 2015-17 trend) would be $37,938. Jan high at $41,986 would be logical spot to buy.”

According to Brandt, Bitcoin’s plummet below $47,000 on Monday bodes well for the sustainability of the bull market.

“That may be enough to make the market healthy again. This is called getting rid of the late FOMO buyers.”

Source: Peter Brandt/Twitter

Brandt adds that the excessive bullishness experienced by market participants recently suggested that a pullback was on the horizon. He cites the laser ray eye trend on Twitter, where big crypto personalities like MicroStrategy CEO Michael Saylor and CoinShares executive Meltem Demirors, used laser-eyed profile photos to cheer on BTC’s ascent to $100,000.

“I was looking for some clue that a more meaningful correction in BTC was coming due. The convincing evidence was the Bitcoin eyes. Unbridled exuberance is always dangerous and usually quite predictive.”

As for XRP, Brandt continues to distance himself to the crypto asset that he believes is “going to be a buster.” While the veteran trader believes the digital asset is a security, he says it might be interesting to some traders as XRP constructs a bottom structure.

“I do not trade OTC (over the counter) securities. If I did trade such securities, XRP would be of interest. Inverted H&S contingent upon pattern completion. XRP is a security issued by Ripple Labs.”

Source: Peter Brandt/Twitter
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Analyst Who Accurately Called Bitcoin’s Biggest Crash Outlines BTC’s Potential Trajectory, Analyzes State of XRP appeared first on The Daily Hodl.

Bitcoin Futures Trade Volume Hit an ATH of $294B as BTC Dipped to $45k

Bitcoin Futures Trade Volume Hit an ATH of $294B as BTC Dipped to $45k 4

In summary:

  • Bitcoin futures trade volume hit a new all-time high of $294.19 Billion as BTC fell below $45k
  • The majority of the trade volume was witnessed on Binance followed by Huobi and OKEx
  • Bitcoin is once again above $50k
  • BTC still has two more hurdles this month in the form of the expiry of Bitcoin futures and options this Friday, and the monthly/weekly close on Sunday

The month of February continues to be a month of firsts for Bitcoin. To begin with, Bitcoin posted a new all-time high of $58,369 before dropping by the largest daily dip to date, of $10,750, to $47,619. The latter price area would hold for a while in what looked like a double only for Bitcoin to dip further to $44,800 – Binance rate.

Bitcoin Futures Trade Volume Hits All-time High of $294.19 Billion

Amidst all the price action, the total trade volume of Bitcoin futures contracts also hit a new all-time high of $294.19 Billion. This milestone was captured by the team at Bybt.com who shared it via the following statement breaking down the trade volume at individual exchanges, as well as a chart for demonstrating the new all-time high.

As the price of #Bitcoin fell below 45K, the volume of crypto futures reached a record high. A total of 294.19 billion US dollars.

1) Binance :$103.43B

2) Huobi :$75.89B

3) OKEx :$45.08B

4) Bybit :$28.79

5) FTX :$17.28B

6) bitmex:$9.88B

Bitcoin Futures Trade Volume Hit an ATH of $294B as BTC Dipped to $45k 3

Bitcoin Battles to Retain $50k with 2 More Hurdles Left in February

At the time of writing, Bitcoin is trading at $51,100 after recovering from the earlier mentioned dip to $44,800. The news of Tether and Bitfinex settling with the NY Attorney General came at a much-needed time as yesterday’s Bitcoin’s freefall seemed not to have a floor for many crypto traders.

However, Bitcoin’s woes are not over as the King of Crypto faces the following two hurdles that could provide additional selling pressure for BTC.

  • Bitcoin futures and options expiration on Friday, February 26th
  • The monthly and weekly close on Sunday 28th February

Therefore, $50k is once again the psychological support zone to watch as Bitcoin attempts to close the month of February on a strong note.

World’s First Bitcoin ETF Records Stellar Growth, AUM Crosses Half A Billion Dollars

World’s First Bitcoin ETF Records Stellar Growth, AUM Crosses Half A Billion Dollars

The world’s first Bitcoin exchange-traded fund (ETF) launched in Canada last week to a great reception by investors. It set the record for the best-performing ETF in Canada and one of the top five ETFs in North America. As Glassnode now reveals, it has shown no signs of slowing down, growing by 37% yesterday.

While U.S companies have been applying for a BTC ETF license for years now, it was the neighboring Canada that beat them to it. Purpose Investments Inc. launched the ETF on Thursday under the ticker BTCC. Immediately after it launched, it attracted a flurry of interest from investors, trading close to $400 million in two days.

As on-chain market analysis platform Glassnode now reveals, the BTCC ETF has started off the week positively. Its holdings are now at 8,288 BTC, adding 2,251 BTC, or 37%, on Monday alone.

“The ETF’s AUM has crossed half a billion USD, currently sitting at $564M,” Glassnode added.

In more good news for investors, Purpose announced that options for its BTCC ETF would begin listing today at the Montreal Exchange. Canadian financial services firm TMX Group would be in charge of the options. 

While announcing the options, Purpose CEO and founder Som Seif remarked, “This is great news for investors and a powerful display of innovation in motion. In less than a week’s time from when we launched Purpose Bitcoin ETF, we’re already seeing the infrastructure for options trading put into place by the TMX Group. Not only does this provide investors with more ways to gain exposure to Bitcoin, it also really cements the idea that Purpose Bitcoin ETF is the premier tracker of the cryptocurrency in North America.”

Canada Overtakes U.S as ETF Hub

Canada is intent on becoming the premier cryptocurrency ETF hub globally. Just days after Purpose launched its ETF, yet another Canadian company launched its own. Evolve Fund Group’s ETF debuted on Friday, but attracted less interest, garnering just $14.5 million. CI Global Asset Management has also filed a preliminary prospectus for a third ETF.

According to Seif, the CEO at Purpose, Canada is much more willing to embrace innovation than the U.S. This gives companies like his the confidence to launch innovative products, aware that they will receive regulatory support. 

He told Bloomberg, “Canada has proven that it has a process that leads to innovation and the systems to allow for it.”

Nate Geraci, the president of advisory firm ETF Store concurs. He believes that U.S regulators have lagged behind when it comes to innovative investment products. He remarked:

“It boggles my mind we still don’t have a Bitcoin ETF in the U.S. It’s understandable that there can be a difficult balance between embracing innovation and ensuring proper investor protections. However, given the existing Bitcoin products available to U.S. investors, a Bitcoin ETF would seem to strike that balance.”

Several firms have applied for a Bitcoin ETF license in the U.S, but the SEC has shut them all down. The latest to try its luck is NYDIG, a spinoff of Stone Ridge Asset Management. Under new leadership now following Joe Biden’s takeover, NYDIG believes the SEC could finally approve a Bitcoin ETF.

India’s Warren Buffett Wants Regulators to Ban Bitcoin and Focus on Digital Rupee

India’s Warren Buffett Wants Regulators to Ban Bitcoin and Focus on Digital Rupee

Indian billionaire Rakesh Jhunjhunwala, sometimes referred to as the Warren Buffett of India, says that the government should ban bitcoin. Calling the cryptocurrency “speculation of the highest order,” the billionaire investor stated that he will never buy bitcoin.

Billionaire Rakesh Jhunjhunwala Thinks Indian Government Should Ban Bitcoin

Rakesh Jhunjhunwala believes that the Indian government should step in and ban bitcoin, CNBC reported Tuesday. Jhunjhunwala, who currently manages his own investment portfolio as a partner at asset management firm Rare Enterprises, is sometimes known as the “Warren Buffett of India” and the “King of Bull Market.”

Jhunjhunwala was quoted as saying:

I think regulators should step in and ban bitcoin. And they should focus on the digital rupee.

The Indian government is planning to introduce a cryptocurrency bill in the current parliament session. The bill provides a regulatory framework for the digital rupee to be issued by the central bank, the Reserve Bank of India (RBI), but bans all private cryptocurrencies. The finance ministry recently confirmed that the bill is being finalized and would soon be presented to the cabinet for approval.

Meanwhile, the price of bitcoin has risen sharply over the recent months but has since retracted over the past few days. At the time of writing, the price of BTC stands at $50,630, which is more than a 73% increase since the beginning of the year, according to data from markets.Bitcoin.com.

The Internet and Mobile Association of India (IAMAI) emphasized last week that cryptocurrencies and the digital rupee can co-exist and that the central bank does not need to ban bitcoin in order to launch the digital rupee.

“Existence and use of crypto assets by Indian consumers open up a wide scope for Indian entrepreneurs to issue such currencies and it is likely that Indians who comprise 15% of global buyers will prefer an Indian crypto asset,” the association detailed.

Jhunjhunwala further said on Tuesday that he “will never buy bitcoin,” elaborating:

I think it’s speculation of the highest order. I don’t want to join every party in town. I think the hangover is much worse.

What do you think about Jhunjhunwala’s view on bitcoin? Let us know in the comments section below.

China is jointly exploring a cross-border digital currency project

TL;DR Breakdown:

  • PBOC joins three other central banks to pilot a cross-border digital currency.
  • The multilateral project is aimed at promoting the use of CBDC for cross-border transactions via blockchain.

The People’s Bank of China (PBC), which is currently testing its retail digital yuan, has reportedly set out with other central banks to explore a potential cross-border digital currency. This multilateral CBCD project with PBOC’s digital currency institute precisely includes the central banks of Hong Kong, Thailand, and the United Arab Emirates (UAE). The project will equally help other Asian central banks to improve their financial infrastructure for cross-border payments.

PBC joins a multilateral cross-border digital currency project

Reportedly, the cross-border digital currency project named “m-CBDC Bridge” was initially conceived and will be headed by the central bank of Thailand and Hong Kong. The main objective is to explore a potential central bank digital currency to improve cross-border transactions. With the PBOC and UAE central bank on board, the four institutions will study the application of blockchain technology to promote cross-border digital currency transactions.

As part of the project, the central banks will research a payment-versus-payment settlement of cross-border transactions of the CBDC. They will also explore how to facilitate foreign and domestic currency exchanges in cross-border trade scenarios using the distributed ledger technology. The central banks also mentioned that the cross-border digital currency project would help other central banks in Asia to facilitate better transactions.

“It will further build a favorable environment for more central banks in Asia and other regions to jointly study and improve the cross-border payment capabilities of the financial infrastructure to solve the problems of low efficiency, high costs, and low transparency in cross-border payments,” the Chinese central bank noted.

Blockchain is modifying the banking system

Blockchain technology has proven useful in the banking system, especially for cross-border transactions. Last year, Cryptopolitan reported that an Islamic bank in Abu Dhabi city in UAE successfully completed a blockchain cross-border transaction, becoming the first Islamic bank to achieve that milestone.

China and UAE Central Banks Join “Multiple CBDC Bridge Study” To Enhance Cross-Border Payments

China and UAE Central Banks Join “Multiple CBDC Bridge Study” To Enhance Cross-Border Payments

The Central Bank of the United Arab Emirates (CBUAE) and the Digital Currency Institute of the People’s Bank of China (PBC DCI) have joined Hong Kong Monetary (HKMA) in partnership with the Bank of Thailand (BOT) in the second phase of the Project Inthanon-LionRock.

According to the official announcement by HKMA, the addition of CBUAE and PBC DCI to Project Inthanon-LionRock was followed by a project name change to Multiple Central Bank Digital Currency (m-CBDC) Bridge.

Inthanon-LionRock was initiated in 2019 by HKMA and BOT as a central bank digital currency project to study how DLT can be leveraged to increase efficiency in cross-border payments. A 2020 report indicated the successful completion of the project with recommendations for future aspects like legal, operational, and technical aspects for Central Banks in cross-border transfers.

m-CBDC for DLT-based Cross-Border Payments

The m-CBDC Bridge is strongly supported by the Bank for International Settlements Innovation Hub Centre in Hong Kong. The project will build on the experience gained from the successful study of Inthanon-LionRock and explore more capabilities of DLT.

This will involve the development of a proof-of-concept (POC) prototype that will facilitate real-time cross-border foreign exchange payment-versus-payment transactions in a multi-jurisdictions context and on a 24/7 basis.

“The m-CBDC Bridge project will also explore business use cases in a cross-border context using both domestics and foreign currencies.”

Additionally, m-CBDC is expected to set the stage for other Central Banks in Asia to join the study and adopt DLT capabilities in cross-border transfers.

“The m-CBDC Bridge Project will further foster a conducive environment for more central banks in Asia as well as other regions to jointly study the potential of DLT in enhancing the financial infrastructure for cross-border payments.”

m-CBDC to Streamline Cross-Border Payments

The outcome of the m-CBDC is expected to smoothen various points prone to friction in the cross-border transfer process including high transaction costs and regulatory complexities.

The participating Central Banks are also expected to consider the results of the PoC prototype for further utility study of the m-CBDC Bridge. This will in turn be used to evaluate potential use for cross-border fund transfers, capital market transactions, and international trade settlement.

Asia’s research into the capability of Blockchain-based systems and application in various industries is accelerating the region’s race to overtake the world’s economy.

Apart from financial applications such as cryptocurrencies and DeFi, Asian countries have put a lot of effort and resources into developing blockchain technology, making Asia the blockchain Hub of the World.

Tron’s (TRX) DeFi Ecosystem Exceeds $5.7B in Total Value Locked

Tron's (TRX) DeFi Ecosystem Exceeds $5.7B in Total Value Locked 2

In brief:

  • Total value locked in Tron’s DeFi ecosystem has now exceeded $5.7 Billion
  • Tron’s proposal 51 has increased investors confidence in TRX as the digital asset is now deflationary
  • TRX’s value has more than doubled in value since the beginning of the year

The Tron (TRX) Defi ecosystem has reached a new milestone in the form of total value locked. According to the project’s founder and CEO, Justin Sun, over $5.7 Billion is now locked on the various DeFi protocols on the Tron network. Mr. Sun shared this milestone with the crypto community via the following tweet.

Tron is Now a Deflationary Asset as a result of Proposal 51

Also worth mentioning is that Tron is now a deflationary asset thanks to the implementation of proposal 51 by the network’s Super Representatives. According to data provided by Tron community member Crypto Petrov, a total of 54 million Tron (TRX) has been burned forever since the proposal was implemented on the 10th of this month. Additionally, 4,906,000,000 TRX is now frozen thus reducing the circulating supply of Tron.

Proposal 51 was implemented by the Tron community to achieve the following.

Increase the current near-minimal fees for bandwidth and energy by 3,5 times in order to encourage higher freezing rate of TRX, diminish low-value transactions (spam txs), increase security, reduce TRX in circulation, and promote the increase of TRX’s value by eventually making TRX a deflationary asset.

Tron’s Value Has More Than Doubled Since the Beginning of the Year

The implementation of Proposal 51 has had a positive effect on the value of Tron (TRX). At the time of writing, TRX is trading at $0.048 after posting a local high of $0.064 on the 19th of this month.

Tron (TRX) opened 2021 at a value of $0.026 which means that it has increased in value by a factor of 1.84x when compared with its current value and by a factor of 2.46x when compared with its recent peak value.

With the new month of March only days away, chances are that Tron (TRX) will retest or exceed the local peak of $0.064 in the days and weeks to follow. However, as with all altcoins, the fate of Tron is very much tied to that of Bitcoin. Therefore, Bitcoin needs to provide the perfect environment for TRX to thrive.

3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction

Bitcoin recovered quickly from $44,800 to over $50,000 in under 22 hours and here are three key reasons why.

The price of Bitcoin (BTC) quickly recovered from around $44,800 to over $50,000 within merely 22 hours. 

Behind the rapid recovery are three major factors, including low funding rates, Square's $170 million Bitcoin purchase, and the spot market stabilizing.

Bitcoin futures funding rates substantially drop

Across major futures exchanges, including Binance, Bybit and Bitfinex, the funding rate of Bitcoin has dropped to 0.01%.

The Bitcoin futures funding rate was consistently above 0.1% throughout the entirety of the rally from the $40,000s to $58,000.

BTC/USDT 4-hour price chart (Binance). Source: TradingView.com

When the futures funding rate is high, it means the market is overcrowded with buyers and the rally likely overextended.

This creates a major risk of a long squeeze, which can cause the price of Bitcoin to drop quickly in a short period.

With the funding rate back to 0.01%, the risk of a long squeeze is significantly lower and if a new uptrend ensues, the rally could be more sustainable.

BTC and ETH funding rates. Source: Bybt.com

Square buys $170 million worth of BTC

On Feb. 24, the U.S. payments giant Square bought $170 million worth of Bitcoin. This comes after purchasing $50 million worth of Bitcoin on Oct. 8 of last year. At the time, Square's chief financial officer Amrita Ahuja said:

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”

The additional purchase of Bitcoin by Square carries a significant meaning because it shows that the company is confident in BTC over the long term.

The price of Bitcoin is substantially higher than where it was in August of last year, which indicates that as its price rises, the confidence from institutions also increases.

Spot market is stabilizing

When the price of Bitcoin was correcting, the price of Bitcoin on spot exchanges, like Coinbase, was much lower than futures exchanges

On Feb. 23, for instance, Bitcoin was trading $600 lower on Coinbase at one point when the price was near $44,800.

When the price of Bitcoin initially recovered from $44,800 to $48,000, there were signs of a bearish retest.

John Cho, the director of global expansion at GroundX, said:

"We were expecting it, but didn't think it'd come this soon or this fast. A solid bounce from here would be ideal; but some potential retracement support regions I'm watching. My bias is towards the 40-41k region as it would fulfill a 30% correction from ATH."

Bitcoin price has recovered above $50,000 since, and that could have reduced the likelihood of a bearish retest and the potential for more downside.

In the near term, if Bitcoin continues to remain above $50,600, which has turned into a support area, the probability of a rally toward the next resistance level at $56,000 rises.

Lastly, such corrections are quite normal for a Bitcoin bull market cycle, as Cointelegraph previously pointed out. In fact, they were commonplace during the 2017 bull market, which had nine major pullbacks between 20–40%. But despite these reoccurring "severe" corrections, the price of Bitcoin still increased by 20 times from its previous all-time high during that year.

Alameda Research doubles down on Maps.me, invests $40 million in Oxygen

Alameda Research is going all-in on a travel app to jumpstart DeFi adoption

How much are 140 million users worth? 

After a $50 million direct investment in travel app Maps.me earlier in the year, Alameda Research has announced today a $40 million investment in decentralized finance protocol Oxygen, a Solana-based lending platform that will plug into the app. 

Similar to lending protocols such as Aave and Compound, “Oxygen will first offer borrow-lending services via pools, in which users will deposit their assets and leverage Serum’s on-chain infrastructure to lend according to their desired terms. Users can also simultaneously lend to generate yield while borrowing against their portfolios,” reads the announcement.

While the specifics are hard to come by on official channels, Oxygen also boasts a host of planned features including cross-chain integrations with Ethereum-native protocols like Aave and Yearn, options writing, and fully decentralized governance. The protocol is currently in the Alpha stage with the largest debt pool listed at $1,000.

Alameda Research was joined in the round by investment firms MultiCoin Capital, Genesis Capital and CMS Holdings. 

“Oxygen will be the most sophisticated and elegant risk management tool in DeFi – with a strong team, growing liquid ecosystem and large potential user base we believe this is the next step in mass adoption," said Alameda Research CEO Sam Bankman-Fried of the acquisition.

Users, users, users

The $40 million investment comes after a $50 million investment in Maps.me Alameda Research announced in January. Combined with the $20 million Oxygen CEO Alex Grebnev reportedly paid to acquire Maps, the team has now invested into the app at a rate of over $.78 cents for each of Maps’ reported 140 million users. 

While many in the crypto community found the initial investment puzzling — it remains unclear if users of a travel app want or need DeFi functionality — Grebnev believes the user numbers are key to unlocking long-term value:

“Currently, DeFi space has at most circa 1 million users. How much would the Oxygen/Maps ecosystem be worth if Maps.me’s 140 million registered users started leveraging the protocol / platform?”

Part of the user-focused strategy might be a result of Grebnev’s previous efforts with Oxygen. In 2018, he launched a peer-to-peer lending service with the same name, but demand and product-market fit failed to materialize. He lists a number of potential reasons:

“First, it was a business model that didn’t scale – non-custodial peer to peer borrowing / lending of individual assets with no matching engine. Second, the market went down 80% from the time when we started working till 6 months later when we were ready to launch. Third, institutional demand which everybody was expecting – didn’t come through. We decided to pause the project.”

Embedded (de)finance

With Maps.me and a new version of Oxygen looking to replicate prime brokerage services, Grebnev is hoping for a different outcome. He says that internal research indicates that 47% of current Maps.me users “want financial services.” He points to similar user-jacking efforts that are common among tradfi companies. 

“Embedded finance is a big theme. Take QuickBooks introducing bank accounts. Or Apple offering credit cards. Companies leverage their userbases to offer relevant financial services,” he said.

What’s more, in the context of tradfi user-acquisition, the aggregate $110 million Alameda Research and Grebnev have invested into the travel app may actually be a bargain:

“These transactions enabled us to build an ecosystem that integrates DeFi tools with a user base of more than 100 million registered users. It took PayPal 20 years and billions of USD to get to 300m users. It took Revolut 5 years and hundreds of millions to get to 12 million registered users.”

Oxygen’s OXY governance token is currently available to select presale participants. The token will have an IEO on March 11th, following which it will be available on FTX, BitMax, and Serum DEX, per Grebnev.