Taraxa Wants to Put Every Informal Transaction on the Record, Unveils Details About the Upcoming TGE

Taraxa Wants to Put Every Informal Transaction on the Record, Unveils Details About the Upcoming TGE

PRESS RELEASE. The Taraxa Foundation, a non-profit body supervising research and development of the Taraxa project, announced a public sale kicking off on March 4 at 6 PM PST. The token sale follows the launch of Taraxa’s public testnet and the release of a flagship application, with the main purpose of distributing TARA tokens to community members and funding ongoing technology and community development. Participants will be required to provide documentation and verify their eligibility in order to participate. The offer is not being made within the United States or to any U.S. persons (as defined under U.S. federal securities laws).

TARA token purchasing options and allocation

The token sale will take place from March 4 till March 15, with pre-registration starting at 6 PM PST on March 4. This is the first public sale held by the company after the 2018 private rounds led by Fenbushi Capital (an early investor in Ethereum), KuCoin, and LongHash Ventures. Through the sale, investors will be able to purchase TARA tokens, with the price ranging from $0.008 to $0.012 with different locking periods. All options will be offered simultaneously, and participants will be able to purchase any combination of the options. The minimum check size across all options is $1,000. Any unsold tokens will be allocated back into Community and Ecosystem development.

How to participate

The latest information can be found on Taraxa’s token sale information page. On the technical side, Taraxa is working with Tokensoft, the same Silicon Valley platform that has helped The Graph, Avalanche, and Findora to launch their token. Registrants will need to go through a KYC process in compliance with relevant regulations and rulings.

A blockchain ledger purpose-built for audit logging

Taraxa is a public ledger platform purpose-built for data via audit logging to track informal transactional agreements started in 2018 in Mountain View, CA, by two Stanford graduates, Steven Pu and Justin Snapp. Taraxa’s protocol features a slew of innovations, such as extremely high logic processing throughput, low inclusion latency, and low finalization without sacrificing security or decentralization. The core team hails from Stanford, Princeton, Berkeley, and Brown, with a balance of technical & business backgrounds from Qualcomm, EMC, Cadence, and Monitor Deloitte.

Public Sale Information Website: https://token.taraxa.io/

Company Website: https://www.taraxa.io

Media inquiries: media@taraxa.io

Partnership inquiries: partner@taraxa.io

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Crypto Fever Back in South Korea, Average USD 7B Per Day Transacted

A new report from South Korea appears to show that the latest rush in bitcoin (BTC) and altcoin investment in the country is “now higher than three years ago,” and that it’s not all about the new wave of Korean “crypto moms” – younger folk are also laying down some serious capital in their investments. Crypto “fever,” as it was termed by the South Korean

First regulated Maltese project to integrate blockchain-based AI services with Belgian retail chain

The first Malta VFAA-regulated blockchain project VAIOT this week signed a deal with one of the leading retail shop networks in Belgium, SupraBazar, to use its blockchain-based AI voice commerce solution within the retail e-commerce platform.

The integration, expected to be fully rolled out by Q3 2021, will begin with a Proof of Concept project of integration with the Suprabazar.be online platform. It will then be followed by a pilot implementation of SupraBazar’s branded blockchain-backed Intelligent Virtual Assistant, after which it will follow internal and end-user testing. Once the successful internal testing phase is completed, SupraBazar will begin the full launch of the program for the general public.

SupraBazar’s intention is to boost its online sales and improve the user experience with the help of the VAIOT Sales and Customer Service Assistant. This Voice Commerce solution will be personalized for the retail network and will allow its customers to make purchases using voice, in both SupraBazar’s existing digital channels and in the new intelligent mobile customer service channel.

One of SupraBazar’s in Flanders
One of SupraBazar’s in Flanders

SupraBazar’s CEO, Geert Vanhalst, commented about the partnership that the company is “pleased to have the opportunity to introduce a Voice Commerce solution, which will be an ideal complement to our existing e-commerce sales”. The family firm, whose history spans over 55 years, is seeing around €50m in annual revenue and expects online sales to grow even more as a result of this partnership.

An exciting first

This is the first commercial implementation for VAIOT’s blockchain-based AI assistant. Christoph Surgowt, CEO of VAIOT said in an official press release shared with Cryptoslate that the team is “very pleased with the fact that the first commercial deal for our AI Assistant, supporting SupraBazar’s sales, has been concluded. It  will allow us to actively participate in the fast-growing Voice Commerce market.”

The company integrates blockchain and its own AI developments with the IBM Watson Assistant. This combination is the underlying technology behind the AI that can sell and distribute products and services via voice or text without the help of humans. The AI provides a secure way to identify and suggest solutions.

VAIOT combines AI and Blockchain technologies to create innovative solutions like its AI assistant that can help in all kinds of businesses from retail to car insurance. VAIOT believes that with its token economy, the end-user doesn’t need to know anything about the underlying technology or tokens to benefit from it, while still positively influencing the network.

John deVadoss, president of NGD Enterprise, shared with CryptoSlate that the mix between blockchain technology and machine learning have the potential to enable AI applications that are both not privacy intrusive and not susceptible to the single-vendor Byzantine Faults.

Innovation hand-in-hand with regulation

VAIOT’s brief but exciting history began when the Malta Financial Service Authority (MFSA) authorized the first regulated public sale of the VAI tokens back in September 2020. The public offering was oversold by more than 10,000 people who staked more than $95m to get allocated in the Refundable Strongholder Token Offering (rSHO).

The rSHO of the VAI Tokens that started on 8 February allocated 2.5 million tokens and raised a total €250,000. Not long after in February 2021, the project was listed on UniSwap.

Just a little over two years ago, then Prime Minister Joseph Muscat highlighted how Malta was poised to fulfill its “Blockchain Island” ambition by setting up fast-track licenses and audit solutions. Despite this promise, relatively few startups were able to receive regulatory approval on the island.

The post First regulated Maltese project to integrate blockchain-based AI services with Belgian retail chain appeared first on CryptoSlate.

John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

Tech entrepreneur and former anti-virus tycoon John McAfee has been indicted by the U.S. Department of Justice (DoJ) on money laundering and fraud charges. The United States Attorney for the Southern District of New York and the FBI unsealed the indictment charging McAfee and his associate Jimmy Watson with securities fraud.

John McAfee Indicted by US Law Enforcement for Fraud and Money Laundering Tied to Crypto Schemes

According to a press release published by the DoJ on March 5, John McAfee has been indicted for a number of charges tied to his cryptocurrency operations and his so-called “McAfee Team.” The Federal Attorney, FBI, and DoJ also charged McAfee’s alleged partner Jimmy Watson, who purportedly served as an “executive adviser” to McAfee’s alleged cryptocurrency squad.

John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

McAfee and Watson have been charged with “conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, wire fraud conspiracy and substantive wire fraud, and money laundering conspiracy offenses stemming from two schemes relating to the fraudulent promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities,” according to the DoJ announcement published on Friday.

Last Friday, Janice McAfee (John’s wife) was requesting legal assistance from a lawyer from Tennessee. One that can work with her husband’s Spanish lawyers and they need to have a strong understanding of cryptocurrency, she said. But this was seven days before John’s indictment on Friday, and she hasn’t spoken on the indictment formally on social media. Federal prosecutors say that John McAfee leveraged his social media presence to engage in “age-old pump-and-dump schemes.”

US Prosecutors Discuss McAfee ‘Tweeting to Hundreds of Thousands of His Twitter Followers’

Manhattan U.S. Attorney Audrey Strauss discussed how McAfee’s Twitter account held a strong amount of evidence.

“As alleged, McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception,” Strauss said. “The defendants allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives,” she added.

Strauss and U.S. prosecutors claim the ostensible McAfee team allegedly took in over $13 million from investors. “Investors should be wary of social media endorsements of investment opportunities,” Strauss warned during the announcement.

After the DoJ published the indictment against Watson and McAfee, the news went viral on social media. “John McAfee did nothing wrong,” one person tweeted on Friday evening. Others jokingly discussed McAfee’s famous million-dollar BTC bet he had going for a while.

“We were promised something John Mcafee never delivered,” one person teasingly tweeted sharing screenshots of McAfee’s humorous wager. The charges against McAfee and Watson derive from investigations that took place in 2017 during the crypto bull run and expanded in 2018 prosecutors note.

What do you think about the U.S. indictment against Watson and McAfee? Let us know what you think about this subject in the comments section below.

Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”

Bitcoin and Ethereum are down from their recent 2021 highs, but compared to their traditional market counterparts, have shown more resilience during the recent “royal macro beating.”

Here’s why one top economist and investor says this is incredibly bullish for the two titan cryptocurrency assets.

Royal Macro Beating Can’t Take Down Bullish Bitcoin And Ethereum

This week, the stock market plunged, and precious metals saw a sharp selloff as the macro environment remains uneasy globally. Yet somehow, amidst a “royal macro beating”, Ethereum and Bitcoin have held up comparably well.

Economist and trader Alex Kruger says the resiliency is “bullish” for Bitcoin and Ethereum. The two top crypto assets have been in an uptrend for a full year now, and the recent macro jitters have been the first major bump in the road since.

Related Reading | “Wonderful” Shark Tank Investor Shifts Portion of Portfolio To Bitcoin and Ethereum 

Bitcoin exploded from lows around $4,000 to $58,000 per coin at the high, while Ethereum fell to under $100 and has risen to $2,000 since. The more than 10x rise, however, might be nowhere near the finish line, and holding up so well here could be the catalyst that sends the cryptocurrencies higher through the resistance level.

bitcoin and Ethereum macro beating

Ethereum and Bitcoin have held up extremely well compared to the S&P 500 and gold. | ETHUSD on TradingView.com

The Changing Of The Guard To Crypto Is Underway

The stock market is on thin ice, and precious metals cannot be upgraded or updated, and have limited use in the future as a store of value compared to cryptocurrencies.

The digital gold narrative has been working, and the steepness of the gold selloff above shows how effective the narrative has been. Crypto prices holding up so well while gold plummets, could send even more capital flowing out of metals and into the scarce digital asset.

Related Reading | Mark Cuban Slams Peter Schiff: Gold is Dead, Bitcoin and Ethereum Are Today

Profit-taking in the currency overheated stock market will want to follow the money, wherever the grass is greener and profits are consistent. If that place is the crypto market, the flood gates of capital could finally be coming that helps to push Bitcoin to prices of hundreds of thousands of dollars per coin, and tens of thousands of dollars per Ether.

The nascent technologies are only now coming into their own as financial assets, and institutional investors have begun to recognize the shift from traditional assets, to digital ones, and the ones who have been early thus far have been the most profitable.

Will Bitcoin and Ethereum continue to hold up this well, or will they ultimately succumb to the continuing macro beating going on across markets right now?

Featured image from Deposit Photos, Charts from TradingView.com

3 million active users help lift Audius (AUDIO) to a new all-time high

Audius price hit a new all-time high after the decentralized music streaming platform surpassed 3 million active users and developers hinted at future NFT integrations.

As blockchain technology increasingly becomes part of the mainstream conversation, its integration with today's most used technologies is bound to increase. This means that it's only a matter of time before video streaming, digital music and social media see gradual blockchain integrations take place. 

Audius (AUDIO) is one project that is chasing the first-mover advantage in the music streaming sector. The music-sharing and streaming protocol facilitates transactions between creators and listeners, making it relatively effortless for users to distribute and monetize audio content. 

The project has received increasing attention for its approach to decentralizing the music industry and on March 2 the team celebrated reaching 3 million monthly active users. 

Data from Cointelegraph Markets and TradingView shows that the price of AUDIO surged 108% since the start of March from a low of $0.38 to a new all-time high of $0.79 on March 4 as the altcoin's trading volume spiked from $3 million to a record $55 million.

AUDIO/USDT 4-hour chart. Source: TradingView

Staking incentives drive user adoption

The first major increase in users followed the project’s October 2020 launch and the activation of staking on the Audius platform in December. This enabled AUDIO holders to earn a 7% yield for tokens that were staked on the network while they listening to music and interacted with the protocol.

By the end of January, the platform had 1.8 million active users and a total of 122 million AUDIO tokens staked on the network. These figures have since increased to 3 million users and a total of 182.5 million staked AUDIO as the platform continues to integrate new features that incentivize community involvement.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AUDIO on Feb. 28, prior to the recent price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. AUDIO price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ score for AUDIO hit a peak of 69 on Feb. 28, just before the start of a prolonged uptrend in price which was further identified by a VORTECS™ score of 80 on March 1. After pulling back over the next 3 days the score again spiked to 70, just hours before a significant rise in the price of AUDIO.

On March 5, the project revealed its plans to integrate non-fungible tokens (NFT) into the protocol as part of its effort to offer a full-service decentralized platform and expand its user base.

NFTs have become a hot topic in the cryptocurrency sector in recent months, and their integration into the AUDIO platform is likely to bring a renewed wave of interaction from users.

As blockchain technology continues to become more prominent in mainstream society, Audius appears well-positioned to become a leader in the streaming music space thanks to a rapidly expanding user base and a growing list of incentives that entice users to stay active on the platform.

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.

$1 Million per BTC in 10 Years: ‘In Terms of Dollars Bitcoin Is Going to Infinity,’ Says Kraken CEO

$1 Million per BTC in 10 Years: 'In Terms of Dollars Bitcoin Is Going to Infinity,' Says Kraken CEO

While bitcoin prices have been coasting along between $46k to $48k during the last three days a number of proponents are still bullish about the crypto asset’s long-term value. On Thursday, Kraken CEO Jesse Powell said that he thinks bitcoin could easily reach a million-dollar valuation per coin. “When you measure it in terms of dollars, you have to think it’s going to infinity,” Powell insists.

Bitcoin to Infinity and Beyond

During the last few weeks as bitcoin (BTC) prices saw a climactic rise above the $58k handle a number of crypto proponents and analysts think BTC could region six-digits in USD value. There have been a lot of calls suggesting BTC will reach $100k this year and even people who say it could hit $200 to $350k per unit.

After bitcoin touched an all-time high (ATH) on February 19, 2021, on Thursday the CEO of the cryptocurrency exchange Kraken told Bloomberg reporter Lynn Thomasson that he believes the leading asset could make it to $1 million someday.

$1 Million per BTC in 10 Years: 'In Terms of Dollars Bitcoin Is Going to Infinity,' Says Kraken CEO
In 2011, Kraken founder Jesse Powell visited the offices of the bitcoin exchange Mt Gox after the Japanese company’s 2011 security breach. Powell told Bloomberg that he started working on Kraken as a replacement for Mt Gox when he started the exchange ten years ago. Ten years from now, Powell thinks bitcoin could tap a $1 million per unit price tag.

Not too many people call seven-digit BTC prices but Jesse Powell, Kraken’s CEO said; “We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity.”

The founder of the San Francisco trading exchange said that “true believers” think BTC could replace all the global currencies. “The true believers will tell you that it’s going all the way to the moon, to Mars, and eventually, will be the world’s currency,” Powell detailed in his recent interview.

Powell also disclosed that the company Kraken is considering an initial public offering (IPO) next year following the footsteps of the popular crypto exchange that’s also located in San Francisco, Coinbase.

Kraken Research: ‘Long-Term Trends Show We Are Still Far Away From a Major Market Cycle Top’

Kraken also published a February 2021 market recap on Friday, which looks at a number of key takeaways. A few of them being, BTC’s Logarithmic Regression Retracement data, bitcoin’s price returns, and volatility, alongside other digital assets in the crypto economy.

“Historic price action shows that bitcoin bull market corrections typically retrace between 70-90%,” Kraken’s researchers wrote on Friday. “When examining long-term trends, our analysts conclude we are still far away from a major market cycle top.”

Powell is also optimistic about BTC’s steady rise and the leading crypto asset’s value against the U.S. dollar. “[The U.S. dollar] is only 50 years old and it’s already showing extreme signs of weakness, and I think people will start measuring the price of things in terms of Bitcoin,” Kraken’s Powell concluded.

What do you think about the Kraken CEO’s prediction that BTC could reach a million dollars per unit? Let us know what you think about this subject in the comments section below.

Law Decoded: Closing remarks on the future of crypto law, March 5

The final Law Decoded moves away from specific news to reflect on the biggest legal issues facing crypto.

Editor’s note

Ladies and gentlemen, it is bittersweet to welcome you to the final installment of Law Decoded, at least with yours truly at the helm. Though someone may pick this newsletter back up at some point, there are no plans to do so now.

Taking advantage of the rose-tinted glasses or maybe the graduation goggles that are in effect for this final newsletter, I will be shaking up the format. As last week’s Law Decoded focused on a few long-standing stories in crypto, this week, I wanted to get thematic.

As I will no longer be guiding you through the weekly changes in crypto law, I wanted to give you some idea of how I see the overall situation shaping up. There are plenty of major laws in motion and courts in session, but I’m going to be zooming back from those to present you with what I find to be the three issues to watch in crypto law. These are also predictions and opinions, so bear in mind that they are mine, not those of Cointelegraph as a whole. And, as always with the future, I could very well be wrong.

Certainty and securities

Prediction: The role of securities regulators, especially the U.S. Securities and Exchange will continue to determine the fate of new token issuance. And, it may take a while, but the SEC and other securities regulators are going to start kicking back at some but not all DeFi projects, as soon as they can figure out how.

Situation: High-profile legal actions against firms like Telegram, block.one and Ripple has scared many would-be token issuers out of the market. Less dramatic than these clampdowns have been the quiet tentative successes. Developers like the Filecoin Foundation and Blockstack seem to have found ways of not only raising money to develop tokens according to SEC exemptions but also of decentralizing those tokens to the point where the SEC has, for now, not stepped in when those firms stopped filing registration statements for those tokens.

Formalizing the process of token decentralization will help new developers enormously, whether it is by classifying tokens in statute or adopting a safe harbor à la Hester Peirce. Likely incumbent chairman Gary Gensler will not indulge securities issuance masquerading as decentralized tokens. We will not see another 2017. Optimistically, however, Gensler is clearly interested in formalizing the market, which means clear rules of the road.

Meanwhile, publicly traded companies like Square, Tesla and Microstrategy are increasingly becoming oblique means for stock market investors to get exposure to Bitcoin’s price movements. BTC ETFs in Canada and vast market interest in the U.S. mean that it’s only a matter of time before the SEC greenlights one in the U.S. Slowly but surely, tokenization of securities continues.

As for DeFi? The commission is going to be hashing that out for years. I predict with low confidence and the hope of being wrong that there will be attempts to hold programmers legally accountable for DeFi code.

The wealth of CBDCs

Prediction: Central bank digital currencies are going to move forward. Some will launch more quickly, but the ones that have actual significance as peer-to-peer payment mechanisms will take significantly more time, if they ever happen at all. Distributed ledger technology will need to do some serious upgrading if it’s going to play any role in this transformation, which I am not confident it will.

Situation: CBDCs had been mostly on the back-burner for some time. To crypto advocates, they were a hypothetical use case. To monetary authorities: unnecessary techie mumbo jumbo. Interest waxed and waned at various points, with the involvement of tech giants in digital payments adding brief moments of pressure to central banks to update old systems. But those moments would fade.

The COVID-19 pandemic, however, exposed the flimsiness of existing payment rails in a way that everyone could see. The need to get money into the hands of citizens alongside the sudden fear of spreading disease via in-person contact and, especially, the contaminant of cash pushed the CBDC concept to the top of the agenda for many of the world’s largest central banks.

CBDC development is going to remain a critical subject of conversation and development for the foreseeable future. It is, however, riddled with misconceptions and unconfirmed assumptions. None of the five great monetary powers — the issuers of the dollar, the euro, the yen, the yuan and the pound — have committed to specific features of their prospective digitization, nor even whether they will launch at all. Will CBDCs be bearer instruments? How anonymous will they be? Where will transaction data go? Will they be accessible to banks, businesses, citizens, or the world? Will they run on distributed ledger technology?

People are touchy to any changes to their money. If true self-settling currency ever hits the market, it will do so slowly. Of those five major currencies, the Chinese yuan has seen the most “digitization,” which has attracted the crypto world’s attention. But to all appearances, that currency bears none of the hallmarks of what the crypto world professes to want to see. The digital yuan seems designed to be just another third-party payment app except that the Chinese government is that third party.

CBDCs will be an interesting trend to watch in coming years. But don’t hold your breath. The public’s memory of not getting their checks for months will fade as the pandemic subsides. Along with it, so will broad political pressure.

All about AML

Prediction: Smart anti-money laundering rules are good for the world. The next few years of AML may not be good for crypto. The biggest economies have either tried to ban crypto entirely or have made major strides in deputizing fiat gateways — namely exchanges. The crypto industry has largely accepted this. But coming rules are going to get more intrusive.

Situation: In its much-repeated origin story, Bitcoin emerged when the global financial system was unraveling. Satoshi’s timing in pushing a means of moving power away from monetary authorities and financiers alike was perfect.

On the flip side, the subsequent decade saw a surge of attention on all of the devilish ways the powerful and corrupt have squirrelled away illicit gains all over the world, using financial instruments. The 2010s saw successive waves of mass leaks of dirty finance and offshoring — and this was after the U.S.’s “War on Terror” had expanded authority to pursue financial flows in the name of countering terror financing.

In response to, say, the Panama Papers, the public rightly reacted with outrage. Policymakers rightly set out to cut down on interjurisdictional money laundering. And crypto got rolled into these massive policy shifts and legislative packages, despite never coming close to UBS or Mossack Fonseca or Vancouver’s real estate market as a vehicle for money laundering.

But while it is not fair to slur Bitcoin as a money laundering mechanism, it’s obvious that lack of KYC has been extremely lucrative for a number of not-good actors in the crypto world. This is especially true of exchanges. It was the Paradise Papers that exposed that BitFinex and Tether are run by the same people, a fact they would clearly prefer to have kept hidden. It was only as Malta was trying to get its corporate registry in line with EU expectations that it outed Binance for lying about its registration on the island. Which is not even to mention how reckless the executives at BitMEX were.

As the EU rolls out AMLD5, and the U.S. starts demanding owner names for firms registered anonymously, the crypto world has already shifted its party line. Fewer and fewer industry voices are arguing in favor of fully law-agnostic Bitcoin, likely because many of these big players and, especially, exchanges profit by replicating the sins of the traditional financial world. Speaking in generalities, the consensus has been to center legal responsibilities like know-your-customer on fiat gateways. Which is what the Financial Action Task Force is already asking for, so in some ways this is just accepting the inevitable.

As governments have gotten more comfortable with managing exchanges, there have been pushes to go further. Most famous is the U.S. Treasury’s attempt to get info on transactions between exchanges and self-hosted wallets. Those rules are still in process and, pessimistically, some are going to stick.

I don’t foresee governments having any power over fully peer-to-peer transactions on, say, the Bitcoin network unless there has been some major operator error on the part of the wallet owner. But, pessimistically, I can envision a world of whitelists and blacklists, where it gets harder and harder to move between fiat and crypto without giving up all kinds of personal identifying information along the way. It’s not what I would call likely, at least not for several years, but it’s not impossible.

99% gone in 60 seconds: How a Polkadot trader may have crashed DOT futures

Polkadot (DOT) futures at Binance flash-crashed by 99.5%, potentially generating an $8.3 million profit for the 'trader’ if they used this clever strategy.

On March 5, Polkadot (DOT) experienced a flash crash at Binance perpetual futures which resulted in the contract trading as low at $0.20. While this could have been an honest fat-finger trading mistake, a number of indicators point to a planned-attack.

While no hard evidence will likely ever emerge, the open interest increase just 24 hours ahead of the event indicates that an attacker could have generated a $8.3 million profit by manipulating Binance's matching engine.

DOT perpetual futures on Mar. 4, USD pricing. Source: Binance

As shown above, during the 3-minute candle, $20.4 million worth of DOT contracts traded. Although the swift downside move was a 99.5% flash crash, it did not result in cascading liquidations.

Futures contracts liquidations are calculated using the price of spot exchanges. Thus, a flash-crash exclusively on futures prices would not impact most traders. According to Binance:

"The Price Index is a bucket of prices from the major Spot Market Exchanges, weighted by their relative volume."

As per Binance's support website, Polkadot coin-margined futures index price is composed of Kraken (DOT/USD), Binance (DOT/USD), Binance (DOT/BTC), OKEx (DOT/BTC) and Huobi’s (DOT/BTC) market.

It is worth noting that this specific contract is coin-margined instead of the more liquid Tether-settled one. Cointelegraph recently analyzed those differences, stating that the Tether-based contract "doesn't need an active hedge to protect collateral (margin) exposure, thus it's a better choice for retail traders."

Data uncovers the planned 'attack'

For an attacker to set up this trade, the first step would be building a leveraged long position while simultaneously creating short exposure using another account.

To create a flash crash while risking the minimum amount possible, preferably, this event should take place not more than a couple of days ahead of the planned ‘attack’.

DOT/USD perpetual futures open interest. Source: Binance

As depicted above, DOT/USD perpetual futures open interest grew from 1.92 million DOT to 3.34 million some 30 hours ahead of the flash crash, equivalent to a $47 million increase.

To differentiate the attack from a regular leveraged-long, one should track the long-to-short ratio. To maximize gains from the flash crash, the attacker would have created a substantially higher short leveraged amount, thus impacting the long-to-short ratio.

DOT/USD perpetual futures long-to-short ratio. Source: Binance

The data above shows that the average 4.25 ratio favoring longs was severely impacted during the open interest increase. This would confirm the theory of a coordinated attack.

How the trade is executed

By holding a considerably larger net short position when both accounts are combined, the attacker would profit from a flash crash. All this entity needs to initiate the event is to market sell the net long position. This move would trigger a substantial sell order, crashing the futures contract. Meanwhile, the other account, previously net short, would score big.

762,000 DOT contracts traded during the 3-minute flash-crash candle at a $26.73 average price. Considering the change in the long-to-short ratio, the attack most likely created a $30 million long position. Meanwhile, the secondary account held a $10 million net short exposure.

Although far from the 99.5% price crash, this 19% drop from $33 likely generated a $9.5 million gain for the account holding the $10 million short exposure if 5x leverage was in play. On the other hand, the collateral lost for the $30 million long position amounts to $1.2 million is 25x leverage was deployed.

It is important to emphasize that holders of Binance DOT futures contracts were unlikely affected by the flash crash. Therefore, the attackers' net long account should be holding a negative balance, which the Binance insurance fund will likely cover.

The above calculations are mere speculations based on exchange-provided data. As previously mentioned, it is unlikely that hard evidence of this attack will ever surface.

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.

Five Crypto Projects Are Going Mainstream This Month, Says Altcoin Daily’s Austin Arnold

Altcoin Daily founder and trader Austin Arnold says five crypto projects are going mainstream in March thanks to new business developments.

First up on Arnold’s list is Ethereum (ETH). The trader cites the announcement that Amazon Web Services (AWS) has made Ethereum available on the Amazon Managed Blockchain.

Amazon says the move will make it easier for developers to utilize the leading smart contract platform.

“With this launch, AWS customers can easily provision Ethereum nodes in minutes and connect to the public Ethereum main network and test networks such as Rinkeby and Ropsten. With Amazon Managed Blockchain, customers get secure networking, encryption at rest and transport, secure access to the network via standard open-source Ethereum APIs, fast and reliable syncs to the Ethereum blockchain, and durable elastic storage for ledger data.”

Arnold’s next pick is the supply chain management tool VeChain (VET), citing the news that one of the largest aluminum companies in the world, the Norway-based Hydro, has initiated a pilot service built on VeChain to document product claims.

Third on Arnold’s list is the cloud-based wallet Curv. He points to news reports citing anonymous sources who say that payments giant PayPal is in the process of purchasing Curv.

“This could be big in my opinion as a fundamental green flag for the space, and by the way, the altcoins that PayPal supports. Big green flag for them as well.” 

Arnold’s next pick is the Theta Network (THETA), a decentralized video delivery network. The trader points to news that Sony’s European subsidiary plans to run a node on the Theta Network.

And last on Arnold’s list is the custody service Hex Trust, which announced this week that it launched the first fully licensed custody services for non-fungible tokens (NFTs).

The company states that the massive popularity of NFTs and their big upsurge in prices calls for a secure way for investors to hold them.

“With the NFT market surging and prices of NFT’s climbing into the millions of dollars for a single collectible, it has become urgent to provide collectors and institutions with the ability to safely custody and insure their valuable assets. The Hex Safe platform has been upgraded to fully integrate NFTs on multiple blockchain platforms and token standards including Ethereum and their ERC-721 and ERC-1155 token standards.”

I

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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 Five Crypto Projects Are Going Mainstream This Month, Says Altcoin Daily’s Austin Arnold appeared first on The Daily Hodl.

Traders speculate that Bitcoin’s price may continue to trade sideways for now

CryptoWendyO and Cheds weigh in on where Bitcoin's price could head next.

Bitcoin’s price has declined in recent days. While it has rebounded from its weekly lows, the asset's trajectory remains uncertain says CryptoWendyO, a crypto trader on Twitter.  

“The daily timeframe is not looking great as we are having trouble sustaining $50K,” she told Cointelegraph on Friday. “I am feeling like we will get a run to $51.6[K].”

She added:

“From there I would be cautious as rejection could lead back to the $50K -$45K range. A break down there could be a swift wick to $42-38K with a glorious recovery. Invalidation would be a sustained consolidation at $52K.”

After hitting record highs of approximately $58,360 in February, Bitcoin (BTC) dropped down to roughly $43,015 in subsequent days, based on TradingView data. The asset then rebounded up to about $52,660, before continuing its downward price action below $50,000. Bitcoin is trading at roughly $49,020 at time of publication.

Cheds, a trader on Twitter holding his CMT level I certification, expects “more consolidation from BTC above that key 42k level,” he told Cointelegraph on Friday. He also tweeted a chart of his range expectations.

“The big question is if the recent 27% correction is enough to bring us to a new high,” Cheds said. “In the meantime we will watch a tightening range on the daily of lower highs and higher lows.”

A number of technology stocks have also suffered price decline recently.

Forget BTC; Several Crypto Stocks Are on Fire

Who says that bitcoin and the stock market aren’t correlated? Following bitcoin’s meteoric rise beyond the $50,000 line a few days ago, it looks like several crypto-based stocks are potentially following in the asset’s footsteps and are now trading at new highs for the year.

Crypto Stocks Have Been Firing on All Cylinders

Bitcoin has been on a serious roll as of late. In fact, it can be said that the currency has been on a bullish run for almost a year now, having shot up to about $9,000 in May of last year after hitting a new low before the $4,000 mark. Still, things took a heavy turn in October when the currency shot up to about $13,000 from its previous $10,000, and it’s been reaching new highs ever since.

There has also been a heavy argument over the years that both bitcoin and the stock market are correlated, and that when one goes up or down, the other is likely to follow suit. As we’re seeing right now, this argument may have some truth behind it, as several crypto-related stocks are boosting themselves and crossing some impressive price lines.

Some examples include KR1, a London-listed digital investment company. The firm has seen its stock shares spike by an impressive 800 percent in just the last three months. The company has built its reputation off investing in alternate currencies such as Ethereum and Polkadot, and now it looks like those investments are starting to pay off as everyone is eager to get their fingers on crypto.

In a statement, George McDonaugh – the managing director of the London-based enterprise – said:

KR1 was set up to allow investors access to the crypto economy via a publicly-listed company. Cryptocurrency stocks are outperforming the underlying assets because of the infrastructure that allows people to invest in public stock, such as 401Ks and ISAs. If you can tax-wrapper something as explosive as crypto, that makes a lot of sense in a lot of investor’s eyes.

We have also witnessed many crypto mining stocks shoot up in the past few months. Marathon Digital Holdings in Las Vegas, Nevada is up by around 500 percent since December, while Riot Blockchain in Colorado has also shot up by around 400 percent.

Perhaps even more impressive is the currency share price of The9, based in Shanghai, China. The company has seen its stock rise by as much as 1,500 percent since late last year.

Some Previous Bets Are Being Cashed In

McDonaugh chimed in further, claiming:

There could be every possible shade of despair if digital assets fall by 90 percent again. It will mean we can start allocating capital again. Right now, we’re riding the success of projects we bet on during the 2018-19 bear market. We need to make sure we’re best positioned to take advantage of the tailwinds and we’re able to work harder if we enter a slow down.

The post Forget BTC; Several Crypto Stocks Are on Fire appeared first on Live Bitcoin News.

Kraken Research Team Reveals Next Likely Peak For The Bitcoin Price

NexTech Acknowledges Bitcoin As An Attractive Store Of Value, Unveils $2 Million Investment Plans

Bitcoin’s next peak may fall between $75,000 and $306,000 if the market imitates the same pattern recorded in 2011. This is according to Kraken’s new research which bullishly suggests that the Bitcoin bull run is still ongoing, although there’s an equal chance that Bitcoin could continue blinking red.

Bitcoin could skyrocket to $75,000

According to a logarithmic growth curve which is useful for measuring the previous resistance and support levels, Bitcoin could record a new high of $75,000 says the research.

While bullish for the market, this signals an overbought asset. Although Bitcoin is nearing resistance, the curve suggests that Bitcoin is still far away from reaching overbought territory. Bitcoin’s recent retracement below $50,000 signaled a potential crash to lower lows, precisely because speculations trailed the scenes that Tether’s case with the SEC could close bullish channels for the asset. However, with the new research, analysts’ predictions of a possible up climb above $50,000 may not be very far away.

Bitcoin at $306,000 is a blooming possibility

Should a historical crash follow, Bitcoin could drop to $30,620. And if Bitcoin finally hit the highly anticipated price of $100,000, with an additional $2,000, then $30,620 remains the nearest support for the asset. On the flip side, a massive correction could send Bitcoin to never-before-seen highs of $306,000. From another angle, Bitcoin could make a downward correction to $221,000.

Excerpts from the piece reads:

“if one were to assume that Bitcoin corrects -70% this market cycle, BTC would need to be trading at $102k to fall down the log growth curve’s support (30,620) 385 days from month-end. Meanwhile, a -90 correction implies a price of $306k and an -86% correction, or the average retracement of prior market cycles, implies a price of $221k.”

Meanwhile, analysts are speculating a slow and steady recovery for the asset. Last month, pundits predicted a retest to $44,000. But a possible decline could follow and send Bitcoin to $30,000. This was according to Josh Rager, who added that the preceding market pattern could see Bitcoin surge upwards from there. His tweet read

“Keeping an eye on the $44ks – tested once but a break below there likely sends price back down to $40k and if price makes way to $40k – you know it’s going to wick in the mid to upper $30ks Could bounce here – but going to take it level by level/day by day.”

Kraken Research Team Reveals Next Likely Peak For The Bitcoin Price
BTCUSD Chart By TradingView

At a press time price of $49,000, Bitcoin is headed for a retest at $50,000, and as the analyst predicted, the momentum required to stay afloat cannot be achieved in a day. In the near term, external activities from the traditional market scenes could potentially give Bitcoin a much-needed upward push.

Hacker Peforms $3 Million Attack On Paid Network

The DeFi protocol Paid Network has been exploited via a vulnerability that allowed an attacker to create millions of new tokens.

Millions Dumped By Hacker

Around 18:10 UTC on Mar. 5, an unknown hacker exploited a token minting function and created over 59.4 million PAID tokens, worth $166 million at the time of the attack.

Soon, the hacker moved on to selling the illicitly-created tokens on Uniswap. He successfully sold about 2.5 million PAID tokens for approximately 2000 ETH (equivalent to $3 million).

The flood of new tokens into the market instantly crashed the price of the PAID token from $2.80 to $0.40. The hacker’s wallet address still contains more than 56 million PAID tokens, worth about $24 million.

Updates On the Way

Even though the development team has denied an “inside job,” critics in the community have speculated that a founder could have carried out the attack. To support that accusation, they allege that some functions can only be called by certain addresses.

To prevent any further damage, Paid Network has announced that it is pulling liquidity from the vulnerable contract. The team is also planning to create a new smart contract to restore token balances.

In another tweet, Paid Network has promised it will publish a detailed report on the hack soon.

Disclaimer: At the time of writing this author held Cosmos.

NFT hype will calm, but the concept won’t disappear, MEW founder speculates

Nonfungible tokens are all the rage right now, but how long will the fanfare last?

Nonfungible tokens, or NFTs, have gained significant traction in the crypto space in recent months, with some tokens selling for millions of dollars. Even though the current excitement over NFTs will eventually simmer down, the concept will live on, according to the CEO and founder of MyEtherWallet, Kosala Hemachandra. 

“NFT is currently a hot topic, but I’m sure the hype around it will soon die down,” Hemachandra told Cointelegraph. “Similarly, ERC-20-based tokens were a hot topic in 2017 because of ICOs, now it’s not news to anyone, as people use those tokens daily.”

All non-fungible tokens are provably unique, and therefore distinct in value. They can not be interchanged one-for-one with another asset of their kind, because each NFT contains verifiably distinct characteristics. These differences affect each token's rarity (and sometimes their utility within an ecosystem), even if they appear to be superficially similar at first glance.

“The value of an NFT is purely based on how much a person who is interested in it is willing to pay,” Hemachandra said, adding:

“If someone is really interested in an NFT sold in 2021, I’m sure that person will pay any amount to buy it in 2030. That’s why we cannot say that 2017 cryptokitties aren’t valuable now. I’m pretty sure even now some people’d love to get hold of some of those unique items for a higher price if the current owner is willing to sell.”

CryptoKitties, the first functional NFT implementation, were notably popular in the crypto space back in 2017.

The NFT scene also resembles initial coin offerings, or ICOs, in 2017, according to Nadav Hollander, co-founder of Dharma. “NFTs feel like they're going to play out a lot like ICOs — 6-9 months of increasingly high-value and nauseatingly cynical sales, followed by a multi-year crash,” he tweeted on Feb. 24.

Hemachandra sees big potential for the NFT niche, although he questioned the rationale behind the market's current hype. "Is it the ownership or the status of ownership? Right now the appeal of NFT’s is the status of owning one," he said, adding: 

"NFTs are hot in the same way lambo’s are hot to bitcoin purists. I think this current version of non-fungible tokens will continue to evolve into bigger and broader use cases. Things like real estate and proof-of-ownership of tangible property; wherever NFTs can help execute legal actions. That is when things will start to get really interesting."

John McAfee Indicted by Department of Justice

Eccentric entrepreneur John McAfee is in more trouble with U.S. authorities over an alleged “pump and dump” scheme and ICO.

McAfee Charged With Fraud

McAfee has been indicted on charges of fraud and money laundering by the U.S. Department of Justice (DOJ).

The United States Attorney for the Southern District of New York said in a statement today that McAfee was charged with “conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, wire fraud conspiracy and substantive wire fraud, and money laundering conspiracy offenses.”

McAfee allegedly used Twitter to promote altcoins in “pump and dump” schemes. McAfee was also charged with promoting ICOs without disclosing that he was paid to do so. Jimmy Watson, a member of McAfee’s crypto advisory team, has also been charged.

“As alleged, McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme that earned them nearly two million dollars,” FBI Assistant Director William F. Sweeney Jr. stated.

Additionally, Sweeney suggested that McAfee and Watson used the same social media to promote sales without disclosing the fact that they were compensated to do so.

McAfee Controversy Continues

McAfee is best known as the founder of the computer security firm McAfee Corp., but he has become infamous for his alleged ties to the drug trade and his zealous attitude toward cryptocurrency.

Last year, he was sued by the U.S. Securities and Exchange Commission for allegedly promoting crypto ICOs dishonestly. He was also charged with tax evasion by the DOJ.

He is currently in prison in Spain due to those charges.

Disclaimer: the author held BTC, ETH, UNI, DOT at the time of writing.

Price analysis 3/5: BTC, ETH, ADA, BNB, DOT, XRP, UNI, LTC, LINK, BCH

Selling pressure from global equities markets continues to weigh on Bitcoin price as traders endeavor to flip the $50,000 level back to support.

Analysts expect the U.S. economy to stage a strong recovery in the second half of this year as coronavirus vaccines are distributed and economic activity begins to increase. As growth picks up, inflation concerns are also on the rise. Speculation is rife that the U.S. Federal Reserve may have to adjust its dovish stance to hold down interest rates. 

In anticipation, the 10-year U.S. Treasury yield has jumped from about 1% at the start of the year to 1.626%. This has resulted in profit-booking in assets considered as risky and as equities pullback, a temporary pause may be put on Bitcoin’s (BTC) rally.

Daily cryptocurrency market performance. Source: Coin360

The drop in investor sentiment has also hurt the stock prices of MicroStrategy and Tesla who have each invested in Bitcoin recently. MicroStrategy’s stock price has plunged by over 50% from its all-time high at $1,315, even though the price of Bitcoin is currently only down about 20% from its all-time high.

Tesla, which had announced a $1.5 billion Bitcoin position on Feb. 8 has also seen its stock price plummet by over 34%. To stem the decline, longtime Tesla analyst Gary Black has suggested the electric car maker dump its Bitcoin holdings and instead use the proceeds for a stock buyback.

Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical support levels where buyers may step in and arrest the current decline.

BTC/USD

Bitcoin turned down from the $52,040.95 overhead resistance on March 04, which suggests that traders are lightening up their positions at higher levels. The selling has continued and the price has dipped below the 20-day exponential moving average ($48,087).

BTC/USDT daily chart. Source: TradingView

If the bears can sustain the price below the 20-day EMA, the BTC/USD pair could now drop to the critical support at $41,959.63 where buyers are likely to step in.

If the price rebounds off this support, the pair could trade between $41,959.63 and $52,040.95 for a few more days.

The flat 20-day EMA and the relative strength index (RSI) near the midpoint also suggest a few days of range-bound action.

Contrary to this assumption, if the price turns up from the current levels and rises above $52,040.95, it will open the doors for a rally to the all-time high.

On the other hand, if the bears sink and sustain the price below $41,959.63, the pair could drop to $37,000 and then to $28,050.

ETH/USD

Ether’s (ETH) relief rally from $1,289.09 on Feb. 28 hit a wall at the 20-day EMA ($1,593) on March 3. The moving averages are on the verge of a bearish crossover and the RSI is in the negative zone, indicating a possible change in trend.

ETH/USDT daily chart. Source: TradingView

If bears sink the price below $1,289, the selling could intensify and the ETH/USD pair could drop to the 50% Fibonacci retracement level at $1,220 and then to the 61.8% Fibonacci retracement level at $1,026.

Another possibility is that the pair rebounds off $1,289 and stays range-bound for a few more days. A breakout and close above $1,670 could result in a retest of the all-time high at $2,040.

ADA/USD

The bulls are currently attempting to arrest the pullback at the 20-day EMA ($1.07). This suggests that the sentiment remains positive and the bulls are viewing the dips in Cardano (ADA) as a buying opportunity.

ADA/USDT daily chart. Source: TradingView

The buyers will now try to push the price above $1.23. If they succeed, the ADA/USD pair may rally to $1.35 and then to the all-time high at $1.4852896.

However, the bears are unlikely to give up easily. The negative divergence on the RSI shows that the momentum is weakening.

If the current rebound fails to sustain, the bears will once again try to sink the price below the 20-day EMA. If they manage to do that, the pair could drop to $0.80 and then to the 50-day simple moving average ($0.72).

BNB/USD

The relief rally in Binance Coin (BNB) turned down from the overhead resistance at $265 on March 2. This suggests that traders may be using the rallies to close their long positions. The price has again dropped to the 20-day EMA ($211).

BNB/USDT daily chart. Source: TradingView

If the price rebounds off the 20-day EMA with strength, the bulls will once again try to drive the price above $265. If they manage to do that, the BNB/USD pair could start its journey to the all-time high at $348.6969.

But the 20-day EMA is gradually flattening out and the RSI continues to weaken. This points to possible range-bound action in the short term. The pair could consolidate between $189 and $265 for a few days.

A break and close below the $189 support could result in panic selling that can pull the price down to the 50-day SMA ($126).

DOT/USD

Polkadot (DOT) turned down from $38.68 on March 3, which suggests that traders may have booked profits during the relief rally. The altcoin has dropped to the 20-day EMA ($32.49) and the buyers are now attempting to defend this support.

DOT/USDT daily chart. Source: TradingView

A strong bounce off the current levels will suggest that the sentiment remains bullish and traders are buying on dips. If the bulls can push the price above the downtrend line, the DOT/USD pair may retest the all-time high at $42.2848.

On the contrary, if the price breaks and sustains below the 20-day EMA, it will suggest that the supply has exceeded demand. In such a case, the pair may extend its decline to the 50-day SMA ($24.89).

XRP/USD

XRP broke above the 20-day EMA ($0.467) on March 4, but the bulls could not maintain the momentum and thrust the price above the $0.50 overhead resistance. This attracted profit booking and the price has broken below the 20-day EMA today.

XRP/USDT daily chart. Source: TradingView

The XRP/USD pair could now drop to the 50-day SMA ($0.42) and then to $0.359. The flat 20-day EMA and the RSI just below the midpoint suggest a range-bound action for the next few days. The price may remain stuck between $0.359 and $0.50.

A trending move could start if the bulls push the price above $0.50. That could result in a rally to $0.65. On the other hand, a break below $0.359 may sink the price to $0.25.

UNI/USD

Uniswap (UNI) is in an uptrend and the bulls have been buying the dip to the 20-day EMA ($24.05). The bulls tried to push and sustain the price above $29 on March 4 but the higher levels attracted profit-booking.

UNI/USDT daily chart. Source: TradingView

The bears will now try to pull the price down to the 20-day EMA. If the UNI/USD pair again rebounds off this support, it will suggest that traders continue to buy the dips. The bulls will then try to push and close the price above $29. If they succeed, the pair could start the next leg of the uptrend that may reach $38.

Conversely, if the bears sink the price below the 20-day EMA, the pair could drop to $20. Such a move may result in a consolidation between $20 and $29. The trend will turn negative on a break below the 50-day SMA ($18.85).

LTC/USD

Litecoin (LTC) broke and closed above the $185.58 resistance on March 3, but the bulls could not build upon this strength as the price turned down and dipped back below the 20-day EMA ($184.43) on March 4.

LTC/USDT daily chart. Source: TradingView

The bulls are currently attempting to defend the 50-day SMA ($169.29) as seen from the long tail on today’s candlestick. If the rebound sustains, the bulls will again try to push the price above the $185.58 to $196.30 overhead resistance zone. If they succeed, the LTC/USD pair could rally to $205 and then to $240.

However, the flat moving averages and the RSI just below the midpoint suggest a possible range formation. The pair could trade between $152 on the downside and $205 on the upside. A break above or below the range could start the next trending move.

LINK/USD

Chainlink’s (LINK) relief rally turned down from $31.43 on March 3, which shows that traders are booking profits at higher levels. The altcoin has dipped to the 50-day SMA ($26.29) but the long tail on today’s candlestick suggests the bulls are trying to defend this support.

LINK/USDT daily chart. Source: TradingView

Buying on dips and selling rallies usually results in a range-bound action. The flat 20-day EMA and the RSI near the midpoint also suggest a balance between supply and demand. The LINK/USD pair could now consolidate between $24 and $32 for a few days.

A breakout of the range may result in a rally to $34 and a retest of the all-time high at $36.93. Conversely, a break below $24 could pull the price down to the critical support at $20.11.

BCH/USD

The bounce from the uptrend line stalled at the 20-day EMA ($537) on March 3, which shows the traders are selling on rallies. Bitcoin Cash (BCH) has again dipped to the uptrend line. The repeated retest of the support at short intervals tends to weaken it.

BCH/USD daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI in the negative territory suggest that bears are in control. A break below the uptrend line could sink the BCH/USD pair to $432.02 and then to the critical support at $370.

This negative view will invalidate if the price rises from the current levels and rises above $539. Such a move will suggest aggressive buying at lower levels. The pair could then rally to $631.71.

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.

South Korean Moms Are Taking the Lead in Buying Bitcoin Despite the Coronavirus Pandemic

South Korean Moms Are Taking the Lead in Buying Bitcoin Despite the Coronavirus Pandemic

As bitcoin prices keep exchanging hands above the $48k handle as of press time, South Korea notices a particular growing trend in a specific profile of crypto investors. A recent study revealed that a new era of “crypto moms” is emerging across the board in the country.

Millennials Are Lagging Far Behind, Says Study

Per Maeil Kyungjae, citing data from research firm Wiseapp, females aged 40-49 in the Asian country have been actively buying bitcoin (BTC) in recent weeks. The data was collected via major domestic exchanges such as Upbit and Bithumb.

The report calls this trend the “second boom” of cryptocurrencies in South Korea, as females surveyed were mostly mothers. According to the figures, over 30% of Bithumb and Upbit users belong to that age range, while 21% are over 50 years old.

On the other hand, millennials are losing ground in holding cryptos, as the numbers unveiled that only 19% of the users are just aged 20-29. In contrast, teenagers are at the bottom with just 1.5%.

The “second boom” name granted by Wiseapp is not a cliche of the recent crypto bull-run. In fact, these numbers are the opposite of the ones seen between 2017 and 2018, despite there is an active pandemic hitting the country.

At that time, when the BTC frenzy in 2017 was also making the headlines, people aged 30 accounted for 30.7% of the crypto users in South Korea. Also, the 20s people were 24% of the South Korean crypto map.

Mature South Korean Crypto Investors Gained Experience by Trading Stocks

The local media outlet, who named the report “Mom is a BTC investor,” provided some reasons behind this shifting trend in the crypto demographics:

The reason why the age group leading the virtual asset transaction has changed is the painful experiences of the 20th and 30th generations who suffered a ‘great crash’ at the time. The 20th and 30th generations, who started investing in cryptocurrency in 2017-2018, suffered massive losses due to strong government regulations such as the real-name virtual asset transaction system.

And the “great crash” triggered a wave of so-called “crypto suicides” across the country. However, people aged 30-60 have increased their experience in investing with risky assets, thanks to the stocks trading, says the study.

Interestingly, Kim Mo, a female stocks manager, told Maeil Kyungjae a particular reason why she started to invest in crypto:

I started investing after seeing Tesla’s CEO and others invest in bitcoin. It’s a small amount right now, but I’m going to invest more by looking at the price trend.

What do you think about this “crypto” demographics study in South Korea? Let us know in the comments section below.

Redefining the Future of Global Finance with DeFi

Eddy Travia is the CEO of Coinsilium, a focused blockchain, DeFi, and crypto finance venture operator. ______ Decentralized, peer-to-peer, and borderless, digital assets and open networks offer a promising alternative to the way money and value has traditionally been transacted — but what is the true economic relevance of decentralized finance (DeFi), and how can it

Why Bitcoin could have a ‘historic quarter with relatively outsized returns’

Taking Bitcoin’s 2011 price performance into consideration, analysts believe that Bitcoin could see another rally by when Bitcoin will trade close to $75,000 and $306,000, with the former price target signaling the end of its fourth bull cycle.  According to crypto exchange Kraken’s February Market Recap and Outlook, Bitcoin has outperformed most cryptocurrencies with a […]

Ripple says no trouble in Asia despite SEC lawsuit

Ripple, the blockchain-based payments firm, is in trouble with US authorities but says its Asian business remains unaffected.

Ripple going strong

Payments firm Ripple claims it has not experienced any unwanted circumstances in the Asia Pacific region despite being pursued by the US Securities and Exchange Commission, as per a report today by Reuters.

Ripple was charged by the SEC last year in connection with alleged securities fraud regarding its sale of XRP tokens. Its founders, Chris Larsen and Brad Garlinghouse, were, in addition, named in the charge sheet for allegedly selling over $700 million of the tokens for personal gains.

The December 2020 lawsuit further alleged that Ripple indulged in token manipulation, unlicensed securities sale, paying to get listed on crypto exchanges, and paying for “fake” partnerships with several of its “partner” firms.

But despite all the charges, Ripple claims its Asian businesses are largely unaffected.

“It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in the Asia Pacific,” said Garlinghouse. He cited ‘regulatory clarity’ as the prime reason for continual operations in Asia and Japan.

Garlinghouse further added that he wasn’t aware of any crypto exchange outside the United States that halting XRP trading. “XRP is traded on over 200 exchanges around the world. It’s really only three or four exchanges in the United States that have halted trading,” he said.

He noted:

“We’re seeing the activity of XRP liquidity has grown outside the United States and continue to grow in Asia, certainly in Japan.”

US a ‘hindrance’

The Ripple co-founder had earlier stated that US regulators were tough on the crypto market and were losing ground to countries in the Far East—which are markedly fast about blockchain and crypto policies and attracted both funds and talent to the region.

Garlinghouse reiterated these thoughts on Thursday, stating US regulations were a “hindrance” to innovation. He added that Ripple had signed more than 15 new contracts with banks globally since the SEC brought its lawsuit.

The US case remains on track for a hearing in August 2021. Garlinghouse has largely kept quiet on the issue so far but claimed in January that the SEC’s “unproven allegations” were not representative of the Ripple business or the way XRP tokens are handled.

The post Ripple says no trouble in Asia despite SEC lawsuit appeared first on CryptoSlate.

Bitcoin, Ethereum, XRP Poised to Resume Uptrend

Extreme volatility levels in the cryptocurrency market have led to massive liquidations over the past few weeks. Despite the significant losses incurred across the board, data shows that Bitcoin, Ethereum, and XRP are about to resume their respective uptrends.  

Bitcoin Prime for New All-Time Highs

Bitcoin took a 12% nosedive in the past 36 hours after rising to $52,700. The downswing added credence to the thesis that BTC is creating an inverse head-and-shoulders pattern on its 4-hour chart. 

Coincidentally, the Tom Demark (TD) Sequential indicator recently presented a buy signal within the same time frame. The bullish formation developed as a red nine candlestick, suggesting that Bitcoin is bound for a bullish impulse. 

If validated, BTC could rise toward the head-and-shoulders neckline at $52,000 to complete this technical pattern’s right shoulder. A further spike in buying pressure around this resistance barrier could lead to a 17% breakout that sends Bitcoin to $61,000.

Bitcoin US dollar price chart
BTC/USD by TradingView

Microstrategy’s announcement that it once again bought the Bitcoin dip, adding another $10 million to its treasury, suggests that momentum is indeed building up for the uptrend to resume. 

That notion is further validated by the rising number of new daily addresses joining the network. On-chain analyst Willy Woo maintains that Bitcoin’s user count is “growing at insane rates,” similar to trends seen during the 2017 bull market.

As long as Bitcoin continues to hold above $47,000, all of these fundamental developments will continue to push prices higher. 

Rafael Schultze-Kraft, co-founder and CTO at Glassnode, maintains that this is a “very strong on-chain support” level, as roughly 500,000 BTC were moved at this price point. “[It is] important that we hold [$47,000], otherwise we could see low forties quickly before the next upwards movements,” said Schultze-Kraft. 

Ethereum Ready to Resume Uptrend

Ethereum is back in the spotlight after core developers agreed to add the blockchain’s crucial EIP-1559 proposal to the London fork in July.

Research coordinator Tim Beiko told Crypto Briefing that EIP-1559 could be thought of as an “ETH buyback” proposal. The update will see a portion of the gas fees on every transaction get burned, reducing Ether’s supply and essentially making it a deflationary asset.

The announcement comes at a time when Ethereum has been consolidating within a symmetrical triangle on the 4-hour chart. If market participants were to buy the news, this cryptocurrency could rise towards the pattern’s upper trendline at $1,570. 

A 4-hour candlestick close above this resistance barrier would be followed by a 21.50% move in the same direction, sending Ether to $2,000. This target is determined by measuring the height of the triangle’s y-axis and adding it to the breakout point.

Ethereum US dollar price chart
ETH/USD by TradingView

Transaction history shows that Ethereum sits on top of a massive support zone while resistance is weak.

Based on IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model, over 370,000 addresses previously purchased nearly 10 million ETH around $1,480. This demand wall could absorb any selling pressure, capping Ether’s downside potential.

Holders within this price range will likely do anything to keep their investments “In the Money”; they may even buy more tokens to allow prices to rebound. 

In/Out of the Money Around Price by IntoTheBlock
In/Out of the Money Around Price by IntoTheBlock

On the flip side, the IOMAP cohorts show little to no resistance ahead. The only considerable hurdle lies at $1,570, where more than 730,000 addresses are holding 3.70 million ETH.

Such an insignificant supply wall suggests that the bulls will not have trouble driving Ethereum’s price higher.

XRP “Unaffected” by Legal Uncertainty

While market participants are concerned about XRP being deemed a security by the U.S. Securities and Exchange Commission (SEC), Ripple continues to expand its services in Eastern markets, where there is reportedly more regulatory clarity.

“[The lawsuit] has hindered activity in the United States, but it has not really impacted what’s going on for us in Asia Pacific,” Garlinghouse told Reuters. He concluded that XRP is still traded on over 200 exchanges around the world, and that only “three or four” U.S. exchanges have halted trading.

While Garlinghouse remains positive about Ripple’s legal stability, XRP is on the brink of a major bullish impulse. The seventh-largest cryptocurrency by market capitalization seems to have developed an inverse head-and-shoulders pattern on its daily chart. 

Although XRP is currently forming the right shoulder of the bullish formation, it can break out of that pattern. A spike in buying pressure that allows this altcoin to close above the pattern’s neckline at $0.66 could lead to a 74% upswing towards $1.16.

XRP US dollar price chart
XRP/USD by TradingView

Traders must wait for a daily candlestick close above the $0.66 for the inverse head-and-shoulders pattern to be validated. Failing to do so could lead to a downswing to the $0.39 support level. 

If XRP breaks below this critical support barrier, it will invalidate the bullish outlook and lead to a steep correction towards $0.20. 

Disclosure: At the time of writing, this author held Bitcoin and Ethereum.

Polkadot partners with IOST for cross-chain interoperability

Polkadot [DOT] has gained immense popularity among several crypto-circles lately since it focuses on interoperability. Its DOT token has been returning 298% year-to-date to investors, with its fundamentals gaining strength with a hike in mainstream adoption. IOST’s latest partnership with Polkadot for cross-chain interoperability is a development that highlight’s the project’s growing credentials. According to […]

Prepare For Liftoff: Bitcoin Loses Bear Market Trendline Against Altcoins

Aside from a few rare outliers, over the last several years, owning Bitcoin has been the better investment compared to other cryptocurrencies. Altcoins like Ethereum and others have only recently caught up, and BTC dominance has maintained the lion’s share of the crypto market cap.

However, dominance has lost an important trendline dating back four full years to the peak of the last bull market, and it could suggest a major turnaround is about to occur across the crypto market. Could this be the altcoin season crypto investors have been waiting for?

Bitcoin Dominance Loses Crucial Bear Market Trendline

At peak Bitcoin fever in 2017, interest turned to altcoins that were much cheaper per coin by comparison as investors searched for the next BTC.

Related Reading | Five Signs That Say Altcoin Season Hasn’t Even Started Yet

Those investors ended up learning the hard way that there is no replacement for Bitcoin. Altcoins plunged by as much as 99% in most instances, while Bitcoin wiped out only 84% of its gains by comparison. Both scenarios are now far in the rear view, and since then Bitcoin has a commanding lead.

bitcoin dominance altcoin season

BTC dominance has lost an important monthly trendline dating back to the top of the last bull market | CRYPTOCAP-BTC.D on TradingView.com

At the height of that fever, dominance reached as low as 35%, but has since remained around or above 63%. That key level was lost at the same time a pivotal trendline was, and now there could be no over-performance in Bitcoin for the next year or more.

The trendline in question dates back four years to the bull market peak, and has kept dominance supported ever since.

Altcoins Are Ready To Explode If Dominance Dives Further

Bitcoin dominance holds the key to unlocking the true potential of any altcoin season, which thus far the leading cryptocurrency by market cap has kept locked away for many years now.

bitcoin dominance altcoin season 2

A zoomed in view shows how many times BTC dominance tried to reclaim the line | CRYPTOCAP-BTC.D on TradingView.com

Losing the previous long term trendline resulted in some short term consolidation followed by a large move lower. A bearish retest of 70% BTC dominance failed, sending the important crypto market metric falling back lower to the second ascending trendline.

Related Reading | Altcoin Season Is Here: “Buy Crypto” Surpases Bitcoin Searches On Google

With the 63% level now lost also, BTC dominance should gravitate toward the mid-50% range, allowing altcoins to soar compared to Bitcoin for an extended period of time.

Altcoins could also theoretically hold up better in a wider correction, but that scenario is unlikely as the riskier assets typically are more volatile and react more sensitively to greater crypto market selloffs.

Featured image from Deposit Photos, Charts from TradingView.com

John McAfee faces more charges connected to money laundering and wire fraud

According to the United States Department of Justice, Manhattan Federal Court today charged John McAfee and his team’s executive adviser Jimmy Gale Watson Jr for fraud and money laundering conspiracy crimes.  McAfee has been charged with securities fraud, touting, and wire fraud among other offenses stemming from the fraudulent promotion of crypto that federal law […]

Survey: Most Bitcoin Investors Know Zilch About the Currency

Uh oh. It looks like many of the people who invest in bitcoin know little or nothing about it. What does that say about the industry?

Bitcoin Investors Don’t Always Seem to Know What They’re Doing

Bitcoin is shaping up to be one of the biggest and most popular assets in history. The currency is reaching unprecedented levels, and recently shot beyond the $50,000 mark for the umpteenth time, though it has since incurred a small dip that has brought it back down into the $48,000 range. Still, the asset has shot up by more than $30,000 in just the past few months alone.

Obviously, people are eager to get their fingers on it. With something rising so quickly, people want to take advantage of the currency, though it appears that at the present time, the main thing that’s driving bitcoin purchases is fear of missing out or FOMO as it’s so often called. The fact is that many traders and investors are not too familiar with the technical side of bitcoin, and thus are buying something that’s going right over their heads.

Survey company Cardify conducted a poll involving more than 700 separate investors between early and mid-February. During that time, bitcoin shot up by more than $10,000, boosting itself from $37,000 to about $47,000. According to the survey data, not even 17 percent of those who took part in the study fall into the “fully understand bitcoin” category. However, a whopping near-34 percent fall into the category of “zero knowledge.”

This is a scary thought for many reasons. For one thing, if people aren’t doing their research before getting involved in BTC, that means they’re simply buying and not thinking about the future. Thus, it can be argued that they may be doing irresponsible things to get their fingers on BTC, such as mortgaging their homes or taking out loans they can’t hope to pay back.

In addition, it’s likely that those who are buying it in such a way are not leaving room for volatility. At this stage of the game, analysts don’t care how high bitcoin spikes. The fact is that tomorrow, things could come to a sudden end. We’ve seen this time and time again, perhaps the biggest example being between 2017 and 2018.

A Fluctuating Price Can Do Some Damage

During the former year, bitcoin was on a roll and by the end of those 12 months, reached its then high of nearly $20,000 per unit. The following year, within just a month or two, bitcoin had lost more than half of that value. By the summer, it was trading in the $6,000 range, and by the end of the year, each bitcoin was worth only about $3,500.

Price swings are a huge problem, and those that don’t make room for them could potentially see a lot of their wealth vanish quickly and without warning.

The post Survey: Most Bitcoin Investors Know Zilch About the Currency appeared first on Live Bitcoin News.

IRS Answers Critical Question on Bitcoin and Crypto Tax Reporting for US Citizens

The Internal Revenue Service (IRS) is addressing critical questions related to the taxation of virtual currencies such as Bitcoin (BTC) in the US.

In a new FAQ resource, the agency clarifies that in its view, American taxpayers did not acquire a financial interest in crypto if they only bought – but did not sell – digital assets with fiat currency. This means that they do not have to answer “yes” to the crypto-related question on the 1040 form.

The IRS also says virtual currencies are treated as property, so transactions involving crypto assets will use the applicable tax principles.

US citizens who receive Bitcoin as compensation should treat it as ordinary income regardless if they performed the service as an employee or not. Meanwhile, virtual currency given as a bona fide gift is not treated as the recipient’s income unless sold, exchanged, or disposed of.

The IRS notes that a gain or loss should also be recognized in the sale of cryptocurrencies. To calculate the gain or loss, taxpayers should track the difference between the adjusted basis in the virtual currency and the amount of fiat money received in exchange for that digital asset.

“Your basis (also known as your “cost basis”) is the amount you spent to acquire the virtual currency, including fees, commissions and other acquisition costs in U.S. dollars. Your adjusted basis is your basis increased by certain expenditures and decreased by certain deductions or credits in U.S. dollars.”

Gains held for less than one year are considered short-term gains and taxed as ordinary income. The sale of virtual currencies held for more than a year and that earned profits, on the other hand, is taxable as a long-term gain.

“The period during which you held the virtual currency (known as the “holding period”) begins on the day after you acquired the virtual currency and ends on the day you sell or exchange the virtual currency.”

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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.

Featured Image: Shutterstock/Skorzewiak

The post IRS Answers Critical Question on Bitcoin and Crypto Tax Reporting for US Citizens appeared first on The Daily Hodl.