Bitcoin Trading Like a ‘High Beta’ But Social Sentiment Remains Subdued

After a somber start of the week, Bitcoin is all set to end it on a higher note.

In the late hours of Thursday, the leading digital currency started recovering and went above $10,800. Since then, we have been keeping around $10,700 in the green on the back of just over $1 billion ‘real’ trading volume.

Altcoins are also feeling the gains with YFI around $29,500 and more cryptos in green than red.

According to trader @SmartContracter, however, over the next few days, a decline from $11,200 will signal the start of a move down and “not the end of it.” “Will be looking to short 10.9k and only longing if 11.2k is taken out again although I suspect it wont,” he said.

Many still expect that a move below $10k might not come, given that during the last bull market, the flagship cryptocurrency kept holding its weekly 21 EMA.

What’s disappointing is BTC’s weighted social sentiment for Twitter, “which measures the positive/negative ratio of comments multiplied by the overall frequency of comments.”

It is currently sitting at a 2-year low, showing a clear pattern of non-believers in the community after the crypto market experienced an aggressive retracement over the past few days.

However, “this level of negativity can often lead to a positive rally, as we’re seeing thus far today. Markets most commonly follow the path of least expected,” noted crypto data provider Santiment.

Still, it’s worth mentioning that the upcoming US Presidential elections, in early November, spells uncertainty and volatility across the markets. All the markets are acting like the same, whether it’s stock, gold, bond, or crypto.

“It’s really all the same at the moment. Crypto is simply trading like a high beta, and Defi like the highest beta of them all,” said trader and economist Alex Kruger.

But bitcoin’s correlation with the equity market is short-term, which many believe will soon end. The number of bitcoin entities, which is organic growth as opposed to hedge funds and whale trades moving capital in and out of BTC as they trade and hedge positions, continues to grow that will make sure of it.

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Author: AnTy

Ant Group Launches Blockchain-Powered Cross-border Trade Settlement Platform ‘Trusple’

Ant Group, owner of mobile payment app Alipay, launched a blockchain-powered platform for cross-border trade settlements this week. The move came ahead of its IPO, which it plans to list in Hong Kong and on Shanghai’s STAR Market next month simultaneously.

The 16-year old giant, which is backed by e-commerce conglomerate Alibaba Group, is seeking to raise about $35 billion in the dual IPO to become the world’s largest IPO by surpassing oil giant Saudi Aramco’s billion last December.

Previously known as Ant Financial, Ant was rebranded this year as a tech firm due to tighter financial regulations.

Ant is known for submitting the most number of blockchain patent applications globally, over the past two years. The technology saw a surge in interest after President Xi Jinping said last year that the country should accelerate its development.

Its new platform, “Trusple,” is based on Antchain, the company’s blockchain technology.

On this platform, buyers and sellers upload their orders, which automatically generate smart contracts with information like logistics. The banks then process payments using Antchain.

The users of the platform could also include vendors that sell to other businesses through marketplaces like Alibaba’s overseas e-commerce site, AliExpress.

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Author: AnTy

IRS to Revise Form 1040 to Make it Harder for Traders to Escape Crypto Tax Obligation

The Internal Revenue Service is planning to change the 2020 tax form and make sure all taxpayers report about their cryptocurrency transactions.

The standard 1040 form will be altered by adding the following questions on the front page:

At any time during 2020, did you sell, receive, send, exchange or otherwise acquire any financial interest in any virtual currency? And the taxpayer is required to check the box “Yes” or “No.”

“This placement is unprecedented and will make it easier for the IRS to win cases against taxpayers who check ‘No’ when they should check ‘Yes,’” says Ed Zollars, a CPA with Kaplan Financial Education.

The Wall Street Journal first reported the adjustment on Friday, noting that the question was previously, in 2019, in a spot that not all taxpayers had to fill out. But now it has been moved just below the taxpayer’s identity.

With this, the IRS is stripping any excuse for ignoring the rules. This also means, whoever fails to pay the taxes they owe on crypto transactions can be subject to penalties and, in some cases, even criminal prosecution.

“Primarily based on what we’re seeing, individuals are beginning to get scared,” said Chandan Lodha, the chief working officer of Cointracker, a software program firm promoting crypto tax-prep providers.

The tax agency has been focusing on virtual currency transactions for some time now. Just earlier this month, the IRS issued guidelines clarifying how cryptos are treated for tax purposes when received in exchange for certain services. An individual has to report the digital currency as ordinary income for receiving it through a crowdsourcing platform in exchange for providing a service, as per the memorandum.

In late August, it had also been affirmed that taxpayers must declare their cryptos as income, which were obtained for “microtasks.”

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Author: AnTy

China State-Owned Media Covers Crypto as 2020’s Best Performing Assets Driven by DeFi & Weak Dollar

In an unusual coordinated report on Friday, several Chinese state-owned media covered cryptocurrencies, calling them the best-performing assets of 2020.

The country’s top broadcaster, China Central Television (CCTV), ran a three-minute-long news clip, highlighting crypto assets rallying 70% this year.

“Cryptocurrency has undoubtedly become the top-performing investment” among several other global assets, said the report.

The clip also mentions DeFi and the weak dollar as the two reasons for the crypto bull market this year.

“China is just getting started on DeFi…” said a researcher at crypto fund The Spartan Group who noted the retail investors are likely to go for early DeFi projects in China like DODO and MCDex and the blue chips UNI, YFI, COMP, and MKR that also has a Chinese community.

CCTV also covered ETH being the top performer and fear of inflation driving the growth along with the central banks experimenting with CBDCs as a bull case for cryptocurrencies but government regulations being a major uncertainty.

“There is another following coverage today on CCTV2 abt PBOC encouraging accelerating DCEP adoption and enlarging beta test cases. So previously, coverage on ‘cryptoasset’s top performance’ seems to be related to this DCEP bull narrative in general,” noted Dovey Wan of Primitive Crypto.

A Bullish Affair

All of this got the Chinese crypto community’s attention, who shared the clip on WeChat as a bullish signal.

CCTV’s crypto reporting came after state-owned news agency Xinhua which also published an article titled, “Cryptocurrency is this year’s ‘No. 1 asset’” a day before. Prior to its digital version on Xinhua, the same article appeared on one of the longest-running state media, Cankaoxiaoxi, in print form.

Such a rare coordinated effort is at odds with China’s stance on crypto speculation, but trader Qiao Wage said it is a “misconception” that the Chinese government has always been “hostile” towards Bitcoin and crypto.

“If there was a parallel financial system that could rival the dollar-based system, they would love to be part of it. What they are hostile towards is fraud and speculative craze,” he said, adding, “I do agree with the view that they are against capital flight using crypto, which is pretty obvious.”

Yesterday, the South China Morning Post also reported of at least 1 trillion yuan ($145.5 billion) worth of funds moving out of China into gambling activities every year, aggravating the country’s economic and financial security risk, as per Liao Jinrong, the director-general of the International Cooperation Department under the Ministry of Public Security.

“The volume and speed of cross-border capital flows are unprecedented,” Zhu Min, head of the National Institute of Financial Research at Tsinghua University, was quoted by the People’s Daily mouthpiece this week.

“This will not only result in sustained fluctuations in major world currencies, but will also lead to higher volatility in global financial markets. Therefore, we must be prepared for potential risks,” he said.

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Author: AnTy

Crypto Exchange Gemini Makes an Aggressive Move, Adds 15 Hot DeFi Tokens

DeFi is all the rage in today’s crypto world, and no one wants to be left behind, especially cryptocurrency exchanges.

Over the past few months, we saw these exchanges rushing to DeFi space – in the fastest ever listing of these tokens, a complete U-turn from the past few years when crypto projects had to approach them or even pay them to get their tokens listed.

Coinbase has already jumped the altcoins and DeFi mania, this time, it’s Gemini which defines DeFi as a “warm ray of sunlight shining down on us during the winter of our financial discontent.”

According to the exchange’s official announcement, “the Decentralized Finance (DeFi) revolution is coming into bloom, and it presents the possibility of permissionless, bankless, alternatives to the legacy financial system.”

The promise of DeFi is apparently “aligned” with Gemini’s “ethos” of giving its customers “greater choice, independence, and opportunity.”

While the exchange says these new tokens make up some of the major building blocks of DeFi, still, it warns that they present “unique risks,” and the listing doesn’t endorse the protocol and “makes no recommendation that” customers participate in the DeFi ecosystem.

Up until today, Gemini’s list of cryptos was extremely limited. A meager nine coins were available on the exchange for trading viz. BTC, ETH, LTC, BCH, ZEC, BAT, LINK, DAI, and OXT.

But on Friday, Tyler and Cameron Winklevoss-founded crypto exchange has made an aggressive move and extended this list to 15 more coins.

“We are proud to be the first regulated platform to offer trading and custody support in the State of New York,” for a total of 24 cryptos.

The exchange announced new support for the most popular DeFi tokens, including Balancer (BAL), Curve (CRV), Ren Network (REN), Synthetix Network (SNX), Uma (UMA), Uniswap (UNI), and Yearn.finance (YFI) which are available for both trading and custody.

Five tokens that were previously supported for custody, Decentraland (MANA), Kyber Network (KNC), Maker (MKR), Storj (STORJ), and 0x (ZRX), are now available for trading as well.

On top of this, Keep Network (KEEP), Wrapped Bitcoin (wBTC), and tBTC (tBTC), three new coins altogether, have been added to its custody.

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Author: AnTy

Ethereum ‘Getting Ready for Spadina’ Testnet Next Week

The Spadina testnet of ETH 2.0 has been scheduled for genesis before the month ends, on September 29 at 12 pm UTC, as per the dev update.

The means, next week, a “dress rehearsal” Testnet for the community to practice sending deposits, launching beacon nodes, and validator clients starting from genesis.

For this, Eth2 Standard API definitions are complete, and implementation started, and voluntary exit implementation is ready. Prysm web UI beta testing, meanwhile, will be coming in the first week of October.

It is a small scale testnet that will last just three days with 1024 validators with the main net spec requiring 16384 validators to launch.

For the eventual launch of Ethereum 2.0, Spadina’s deployment was announced a couple of weeks back, following the Medalla testnet going live last month.

This mainet-configuration test network will run parallel with Medalla with the aim to practice the more difficult and risky parts of the process before reaching the mainnet.

ETH 2.0 is expected to go live later this year or early next year with its phase-zero launch, but not everyone is excited to stake.

Still, a good 65% of 287 respondents of the ConsenSys survey revealed earlier this year that they intend to stake 32 ETH.

However, the extremely high fees and congestion on the Ethereum network are making it unusable for the small players for now. As we reported, Coinbase will no longer be covering the gas fees for its users.

“The Ethereum gas price is high due to increased network activity, which means that we have to find avenues to either support this increase in activity, or to reduce it,” said Kosala Hemachandra, founder and CEO of MyEtherWallet (MEW).

According to him, this can be done by “increasing the block gas limit to a safe amount and also by utilizing existing layer 2 solutions.”

Just this week, Optimism took its first step towards its testnet with Synthetix, Chainlink, and Uniswap being the early adopters.

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Author: AnTy

KuCoin Hack: Exchange’s Insurance Fund to Cover User Loss “Completely,” Tether Freezes 33M USDT

The Singapore-based cryptocurrency exchange KuCoin released a statement regarding detecting large withdrawals on September 26, 2020, at 03:05:37 (UTC+8).

The exchange has reportedly lost $150 million worth of funds, although KuCoin hasn’t declared it yet but released “suspicious addresses,” which are constantly updated. As per the company’s internal security audit report, some BTC, Tether, ERC20 tokens, and other cryptos from KuCoin’s hot wallets were transferred out of the exchange.

Tether has already frozen all the stolen USDT, but the community isn’t supportive of the move. This isn’t even the first time they did so; one address in 2017, eight in 2018, seven in 2019, and 24 in 2020 so far has been frozen by the company.

“If you steal our Tether, we’ll steal it right back,” commented one trader on this move.

KuCoin assured that “the assets in our cold wallets are safe and unharmed, and hot wallets have been re-deployed.”

In a live stream, KuCoin CEO Johnny Lyu said one or more hackers “stole” the private keys to hot wallets but those cold wallets, that aren’t connected to the Internet as such considered more secure, were unaffected.

He also said the exchange is in contact with the police and that “all the loss will be covered by KuCoin risk provisions.”

The exchange has transferred the remaining crypto assets to the new hot wallets.

The Asian exchange that trades over 200 cryptocurrencies has a daily trading volume of about $100 million, as per CoinGecko. Following the security breach, its exchange token KCS fell by over 17% but has since recovered to above $0.90.

The trouble at the exchange first started when users complained about withdrawal issues. Initially, it was maintained that the platform was experiencing a system issue, and later, KuCoin’s admin team claimed that “transactions are simply pending,” and funds are SAFU.

While Liu said the amount lost is “small,” that might not be the case, many are pointing out that there could be over 1k BTC and tokens like ETH, LTC, Omni USDT, XRP, YFI, OMG, Maker, Ocean Token, Chroma, Gladius, Hawala, and others lost.

Currently, the investigation is going on, and a security review will also be conducted. Still, the exchange has said that any losses suffered by a user would be “covered completely” by KuCoin and its insurance fund.

As “The People’s Exchange,” we will take full responsibility and maintain transparency,” said the exchange in an official statement.

For now, the exchange has suspended the deposits and withdrawals service, which will be restored gradually once it ensures a safe state.

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Author: AnTy

Crypto Custodian, Anchorage, Adds Support for DeFi Tokens: BAL, NXM, AAVE, UNI, and YFI

Anchorage, the Delaware corporation headquartered in San Francisco, California, and digital asset custodian for institutional investors is diversifying its DeFi token options for its customers by providing support for five more DeFi tokens. The five new tokens to be added onto the platform include Balancer (BAL), Nexus Mutual (NXM), Aave (AAVE), Uniswap (UNI), and Yearn (YFI).

The addition of these tokens by Anchorage points towards the growing demand and market of deFi tokens. Defi has been a revolution for the decentralized space this year and has seen a massive rise in popularity, with demand always outpacing supply. Even if traders don’t quite understand it all.

The soaring popularity of the defi space is apparent when considering the following factors: the growing market cap of the space (the market cap grew from just short of a billion at the start of the year to over $16 billion at one point, currently resting on $10.82B) and the growing number of scams in the defi space.

W. Bradford Stephens, Co-Founder, and Managing Partner, Blockchain Capital, commented on the rising demand for trustees defi tokens, especially among the institutional investors and noted:

“When it comes to DeFi’s potential — for opening access to financial tools, for improving transparency, and for disrupting industry incumbents — we’ve really only just scratched the surface.

If the current wave of activity is any indication, the market itself is poised for huge growth in the coming years. We’re glad to see in Anchorage a continued commitment to supporting emerging protocols in the space.”

DeFi gained momentum because of its trustless nature, which promises to bank the unbanked and offer improvements over the centralized finances.

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Author: James W

Coinbase Wallet Targeted by New Trojan Malware Dubbed ‘Alien’

The Coinbase wallet is among 226 Android applications targeted by a recently discovered Trojan dubbed ‘Alien.’ This malware mostly targets the financial services space and is a by-product of the dreaded Cerberus Trojan. According to ThreatFabric, which discovered the malware, this specific strain had caused a lot of trouble in Google play to an extent where the team in charge had become complacent.

Alien is quite an advanced malware given that the malicious players behind it can steal user credentials, intercept notifications, and alter the state applications on the compromised device. ThreatFabric noted:

“Most importantly, it offers a notifications sniffer, allowing it to get the content of all notifications on the infected device, and a RAT (Remote Access Trojan) feature (by abusing the TeamViewer application), meaning that the threat actors can perform the fraud from the victim’s device.”

The blog highlights that the next probable moves by those running ‘Alien’ would be to improve the Random Access Trojan or build an ATS function for automation of the fraudulent process. Nonetheless, it points out that the number of new banking Trojans will undoubtedly increase and come with more advanced features.

“The last quarter of 2020 will probably come with some additional changes to the threat landscape, especially since the source code of the Cerberus Trojan has been made publicly available. In the coming months, we can definitively expect some new malware families, based on Cerberus, to emerge.”

With crypto space growing aggressively, Trojan attacks have become more common as fraudsters move to capitalize on the shaky security ecosystems. IT security firm Eset had also recently discovered a Trojan malware targeting crypto traders who use Apple’s MACOS. Other instances include a cryptojacking ‘shellbot,’ which targeted Linux users back in 2019.

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Author: Edwin Munyui

Barstool Sports Dave Portnoy Sold $1.25M Worth of his Bitcoin Stash But He Will Be Back

After buying the top and selling the bottom, Barstool Sports Dave Portnoy appeared on Anthony Pompliano’s podcast on “The Pomp Podcast” to discuss bitcoin and cryptocurrencies.

During his interview, he revealed that he bought $1.25 million worth of Bitcoin.

Despite this and getting a class on bitcoin from Winklevoss brothers, of which the crypto community wasn’t really supportive, Portnoy believes bitcoin is a “Ponzi.”

“It’s just one big Ponzi scheme…You get in, and you just have to not be the one left holding the bag,” said Portnoy. “It’s no different from the stock market. Everyone’s pumping their own [coin], alright.”

Pomp, however, did take care of trying to make him understand how “Bitcoin is stronger than anything in the world,” and nobody, not even the government, can hack it. “It’s got more computing power on it than anything,” said Pompliano.

The day trader who became popular during the coronavirus pandemic lockdown by trading anything and everything because “stocks only go up,” has “nothing” in crypto right now. He sold all his million-dollar stack of sats.

He didn’t know what was going on and couldn’t handle all that volatility. “There is no rationale why it is going up; I have no idea why it is going up or down,” he said.

Pompliano gave him the advice of being a HODLer, “You can’t look at it, because you’ve got weak hands. You’ll sell it.”

“The thing I miss the most is the memes,” Portnoy told crypto investor Pomp, sharing how crypto twitter made him go “these are kind of like my people.”

But he isn’t out for good, Portnoy said his “heart is crypto,” and he will be back. He doesn’t know when but he will; up until then, he is all about stocks.

Watch the full podcast here:

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Author: AnTy