CZ Says BNB Burns Not Priced In after 2.2 Million Binance Coin Taken Out of Circulation Forever

  • Binance burns $38.8 million worth of B&B and raking in a profit of $194 million 4Q19
  • CEO changpeng Zhao, CZ is “mystified” that BNB is down 54% from its ATH but isn’t worried much

Today, the world’s leading cryptocurrency exchange Binance conducted its 10th BNB burn which has been the second biggest burn in USD terms, at $38.8 million, and the 3rd highest burn in terms of BNB, at 2.2 million BNB.

This 10th quarterly burn, Binance said represents the first full quarter that factored in the performance of its most recent new products, margin trading and an increasing roster of fiat-to-crypto options.

4Q19 was also the first full quarter of Binance Futures operations that “hit the ground running.” The daily trading volumes of its bitcoin futures surpasses its spot exchanges. Just this week, Binance launched three out of its nine perpetual contracts.

Although in the last quarter, Bitcoin price lost 10.30% of its value, Binance still made a profit of $194 million, up from $185 million made last year and any of 2019’s quarter, on the basis that Binance burns its native tokens worth 20% of its profits every quarter.

In the recent quarters BNB is in fact, “slowly but surely” decoupling from the core operations of the exchange, Binance CEO, Changpeng Zhao said.

Scarcity and Increasing Demand making a Bullish Case

The BNB burn event is common knowledge but according to CZ, it still isn’t priced in.

This means the available information about Binance to burn 100 million BNB isn’t already reflected in its price.

Given that burn means the supply is cut down, Binance is creating a scarcity of BNB while constantly finding means to make BNB more usable as CZ said about BNB’s utility, “We began 2019 with 30+ use cases, and we ended it with 200+.”

Binance is doing everything to increase the demand for BNB while the regular burns keep on tightening the supply, which is bullish for BNB price.

However, BNB price hasn’t been able to feel the effects. The event didn’t have any effect on the price as BNB is currently trading at 17.95, down 0.20% in the past 24 hours, as per Coincodex. The ninth largest cryptocurrency, however, is up over 30% YTD.

CZ is actually “mystified” about the fact that BNB is down 54% from its all-time high (ATH) at $39.45 but he isn’t worried about it much because he sees it as a “long-term play.”

The CEO ensures that 2020 is the year of adoption and intends to be “a major player in bringing that widespread adoption worldwide.”

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Author: AnTy

Bitcoin SV Price Falls Hard After Craig Wright’s Lawyer Reveals He Has No Private Keys

BitcoinSV, (BSV)’s value took a drastic plummet by 17% yesterday evening after the news broke that Craig Wright was unable to show proof that he has the keys for the $9 billion dollars worth of Bitcoin that he claims to own, Cointelegraph reports.

According to market data from Coin360, BSV owners had a challenging 24 hours after weeks of gains. This came after latest details emerged in Craig Wright’s court process.

Craig Wright was unable to prove that he was the real Satoshi Nakamoto as he failed to provide the keys to the Bitcoin linked to Nakamoto. Wright had claimed that BSV’s BTC’s hard fork, was the ‘real’ Bitcoin. The claim by Wright caused BSV’s value to rise to an all-time high at $436.

During Wright’s ongoing multimillion-dollar court battle, to determine his identity, the evidence provided did not show the courts proof of ownership of the private keys. Wright’s lawyer Andres Rivero confirmed that the documents handed over to him by Wright had no private keys, as reported by Decrypt media outlet.

Prior to this information being made public, BSV price had already started its downward fall from its highest value to $262, at press time, which is a 40% fall from its peak that occurred on Jan.15.

Although Bitcoin’s price has surged in recent days, the value of BSV now appears not to be tied to Bitcoin’s, but seems more to react from claims by Wright.

The court details led to a frenzy on social media commentators with some posting memes to show fake Bitcoin transactions being shared in different platform.

Following this newest development, BSV is no longer listed as the 4th largest per market cap, which it had overtaken from Bitcoin Cash(BCH), a fellow Bitcoin hard fork. In the last 24 hours, Bitcoin Cash compared to USD has gained about 7%.

Among the top twenty cryptocurrencies, it is only Dash which has lost as much as 15% like BSV after a sudden surge in January.

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Author: Joseph Kibe

India’s Supreme Court Continues To Hear Case Against RBI Cryptocurrency Ban

The Reserve Bank of India had issued a circular in April 2018, which imposed a banking ban on crypto service providers. The circular prohibited banks from offering their service to all crypto-related service operators in the country. The banking ban was then challenged by the Internet and Mobile Association of India (IAMAI) in the supreme court whose hearing has been going on for over a year now.

In the latest hearing which began on the 14th of January, the judges asked both the counsels to start the arguments fresh and from the beginning. The three-day proceedings saw the prosecution side explaining to the bench judges that the banking ban imposed by RBI was not under their jurisdictions.

The prosecution was headed by Mr Ashim Sood who noted that the RBI circular was bad mainly for three reasons,

  • Malice in law. RBI doesn’t have the power to ban but acted to ban Crypto on effect.
  • Colourable exercise
  • Ultra Vires – without authority.

Mr. Sood also pointed out the flawed analysis by RBI which in its circular claimed that since crypto assets are volatile and risky, it should not be allowed to be regulated. Sood explained that the same risk is involved in stock trading also and effectively lies under the domain of Security and Exchange Board of India (SEBI).

Mr. Sood also clarified that nobody wants to make cryptocurrency as a legal tender which has been a strong defence against legalizing cryptocurrencies. Mr. Sood explained that these digital assets can be used as a medium of exchange and store of value. He explained,

“Some people would find value in it and some people would exchange it. It is a technology which should be given free play. Casino chips are useful to the people who are inside the casino […] When I come out of [a] casino, its use ceases to exist but then some people may exchange it and it holds a value for the interested people. So likewise there is no obligation to use VCs [virtual currencies] as a medium of exchange.”

The current court proceedings in the RBI vs IAMAI is being seen as one of the most fruitful proceedings in the case which has been going on for over a year now. However, given the state of Indian judiciary it won’t be a big surprise if the case takes longer than what many had anticipated.

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Author: Rebecca Asseh

Cryptocurrencies Decentralized Structure Makes Terrorist Financing Difficult To Track: Chainalysis

Chainalysis has released their conclusions from a study, that has helped the firm establish that extremist groups are coming up with new ways to help finance their actions. Many of these new ways involve the use of different cryptocurrencies.

Quicker and Far-Reaching Financing

On Friday 17th January 2020, Chainalysis, the blockchain analysts were able to identify AQB (also known as Izz ad-Din al-Qassam Brigades) which is a well known terrorist organization and Hamas military arm as one of the foremost established cases of extremists using digital assets to finance their operations.

According to the analysts, AQB was using a website to come up with new BTC addresses for all donors wishing to send them funds. Included on the website was a detailed how-to-video providing a step by step explanation on how to donate money to their cause and retain their anonymity.

Equated to earlier such efforts, AQB was this time around not only able to raise more funds and increase their donor numbers, but they also managed to do so in a much shorter duration period. This unfortunately isn’t first time that crypto has been linked to criminal acts, including hate crimes, and Ponzi schemes.

In similar past studies, Chainalysis research has managed to track up to $2.8 billion worth of BTC linked to criminal organizations and criminal enterprises being held by various exchanges. Close to fifty percent of this haul–$1.4 Billion in BTC—was transferred by leading exchanges Huobi and Binance.

Response from Law Enforcement Organizations

Cryptocurrency funded criminal acts have managed to grab the attention of government organizations and other officials who have insisted that digital assets require additional oversight.

In 2019, Steve Mnuchin, the Treasury Secretary spoke at a FATF gathering (Financial Action Task Force) and commended the global regulatory standards that were being put in place to assist in fighting crypto-relating delinquencies. Steve noted that:

“The FATF will make sure that virtual asset service providers do not operate in the dark shadows […] This will enable the emerging FinTech sector to stay one step ahead of rogue regimes and sympathizers of illicit causes…”

FATF comprises of a congregation of more than two hundred countries and which have demanded that cryptocurrency exchanges put in place measures that will make it easier to identify client transactions and identities.

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Author: Daniel W

Swiss Crypto-Friendly SEBA Bank To Raise An Additional $96.5M 2 Months After Getting License

SEBA, is the famous crypto bank which obtained its regulatory license last year in November from the Financial Market Supervisory Authority (FINMA). The crypto asset bank is looking to raise a secondary capital of 100 million Swiss Francs which is equivalent to $95 million US Dollar, reported Financial News London.

SEBA and its competitor Sygnum were among the very first and one of its kind crypto banking service providers to receive a regulatory clearance from FINMA. The crypto bank in question had massive success with the first funding round as well where they raised $103 million and this is the reason they are quite confident of their secondary fundraiser.

The crypto bank which was officially launched just six months ago is already planning to expand in 9 countries including Singapore, Hong Kong, UK, Italy, Germany, France, Austria, Portugal, and the Netherlands. Although Seba hasn’t launched any branch in these countries, the institutional investors can still open their account with the crypto bank.

The crypto banking service providers currently support five major cryptocurrencies on their platform which includes Bitcoin, Ethereum, Stellar, Litecoin and Ethereum Classic. The crypto bank also offers a range of banking services to make crypto transactions and handling quite easy. They offer SEBA wallet app, e-banking services, and SEBA card along with the provision for crypto to crypto and crypto to fiat conversion as well.

Switzerland is a Crypto Heaven

Switzerland is considered among the most crypto-friendly countries on earth due to progressive and user-friendly regulations. This is the reason it has become the alternate choice for many crypto service providers who fails to obtain regulatory clearance in their native country. Switzerland was the choice for Facebook to register their nascent crypto project Libra as they were aware of regulatory scrutiny back home in the United States.

Given Seba’s rapid expansion plans, a significant portion of the funds raised from the second funding round could be utilized towards that aspect.

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Author: James W

Open Interest on CME Bitcoin Futures Outgrowing BTC Price

  • If BTC closes above the 200-day moving average, just above $9,000, we could see $10k
  • Institutional investors leading the way for a new bull market, Open interest on CME jumps 100% since the start of the year
  • Investors also preferring CME to Bakkt & CME traders more bullish than other platforms

Up over 21% in 2020 to date, Bitcoin is off to a great start of a new year. The leading cryptocurrency is currently trading at $$8,883 as per Coincodex, after hitting $9,000 level yesterday after two months.

Trading volume is also keeping up with this burst of bulls, with the volume jumping above $1 billion and even going to $2 billion levels.

With the descending channel seemingly broken, the next resistance for bitcoin is now looking to be the 200-day moving average, just above $9,000. If BTC closes above this level, it’s a possibility we would finally see $10,000. This is a level where a lot of trading activity happened historically.

If the 200-day MA gets rejected, the next Point of Control (POC) lies around $8,000, which is a likely support level for now.

Institutional Investors Leading the BTC Bill Market

However, what’s interesting is that institutional investors seem to be leading the way for a new bull market.

Lately, the activity on CME has been seeing a rise which has been actually outgrowing BTC. Open interest is at about $240 million at CME which is nearly $100 million more than the last time the bitcoin was the same price level.

The bitcoin futures volume registered on CME Group is also much higher than in October. This year, it has been touching between $500-$700 million several times while in December, we were below $500 million.

These levels of volume and open interest wasn’t recorded the last time BTC pushed up, suggesting a fundamental change in investor sentiment on CME.

Institutional Investors Prefer CME to Bakkt

On Jan. 13, CME launched BTC options and from day one, it crushed Bakkt. In the growing options market for Bitcoin, CME ended with $2.2 million traded on the first day. This figure has been significantly higher than Bakkt’s $0.52 million daily volume. However, it is still much lower than retail-oriented Deribit, a dominant force in the BTC options market.

For now, institutional investors are preferring CME than Bakkt. When it comes to BTC futures volume, Bakkt has been oscillating between $25 million to $50 million since December. Although Bakkt has been making new highs in open interest as well, it has only reached $10 million as opposed to $240 million on CME, as per the data provided by crypto analytics firm Skew.

BTC Premium rates on CME Continue Upwards

Over the last week, the bitcoin futures premium rates continued its upward movement. While the premium rate for January contracts have been decreasing as their expiry date comes closer, March contacts have seen an increase of 0.5 p.p this week.

June futures contracts, the month after the halving in May, are also on a premium of more than 4% as investors stay bullish on BTC in the first half of 2020.

CME traders are, in fact, more bullish than other platforms, with an annualized premium rate of 13.5% for the March contracts, up about 2 percentage points than other platforms on average.

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Author: AnTy

Here’s How DeFi’s Smashing Growth Puts a Trillion-Dollar Case for Ethereum

  • Total USD value locked in DeFi surpasses $800 million creates “a new paradigm for global finance” with one common theme Ether
  • The trillion-dollar case for ETH puts in a crazy number for Ether price but at one point $1 billion was crazy as well
  • Caveat Emptor: No Fed to bail you out here and “on a long enough timeline its very likely that many will get rekt” – Mati Greenspan of Quantum Economics

Decentralized Finance or DeFi for short is one of the fastest-growing sectors of the crypto industry.

After a massive upswing in 2019, 2020 is promising to be another great year. Already the total value in USD locked in DeFi has surpassed $800 million. To date in 2020, this amount has surged over 22%, after the price of cryptocurrencies surged in the past 15 days.

The biggest contributor to this growth is Maker which has a 56.67% dominance. The growth in Total Value Locked (TVL) has pushed the amount of DAI locked above 500 million. The curve of DAI locked in DeFi has been steepening lately, with 13 million added since Jan. 1st. Just a month ago, this number was 30 million and now at 60 million, it has grown by 65%.

Ethereum: A new, alternative, permissionless & trustless system

Maker’s dominance means, DeFi is dominated by Ethereum, with ETH locked in Defi exceeding $3 million.

Initially, it was largely comprised of two projects, MakerDAO and Bacon but since then we have seen the explosion of Uniswap, Compound, and InstaDApp. Synthetix is another one seeing “absurdly” high growth.

Projects like these, Lucas Campbell of DeFi rate says, are creating “a new paradigm for global finance” which has one common theme, Ether. This he said means,

“Ether is trustless value supplying economic bandwidth for Ethereum’s permissionless money protocols.”

With Ethereum creating a new, alternative, permissionless, trustless system, it means there will be no shortage of future demand for ETH as an economic bandwidth. Campbell says the next decades are nothing short of exciting for the permissionless finance and proliferation of DeFi. Campbell notes:

“However, in order for Ether to successfully deliver permissionless, trustless finance to the world it will require a massive amount of economic bandwidth to support it.”

The Trillion Dollar Case for ETH

To build a trustless economy, you need a trustless value that is only possible with decentralized crypto-native assets that settle on-chain.

The total bandwidth of Ethereum however, is just about $19 billion, its market cap, and with this, it can’t even support a small nation-state economy. But Campbell argues there is no shortage of addressable market with $250 trillion of global debt, $542 trillion in derivatives, and $90 trillion of equity markets.

MakerDAO already has a goal of Dai to hit 1 billion in circulating supply by 2020 end. On the assumption that a country like Argentina adopts Dai as its primary currency for commerce as “the appetite for the Argentine Peso dwindles,” and if it is able to capture 51% of the country’s M1 supply, that would mean Ether price has to reach between $2,500 to $10,000 to provide a sustainable amount of economic bandwidth.

But that was just for Argentina, the ambitions are bigger. Campbell theorizes Dai competing with US Dollar which puts Ether price at $50,000.

These are “crazy” numbers but investor and Mythos Capital founder Ryan Sean Adams says at one point even $10 billion for ETH was crazy.

Although these numbers should be taken with a grain of salt, Adams says what needs attention is that,

“A trustless economy requires trillions in economic bandwidth. And that’s the trillion-dollar case for ETH.”

Caveat Emptor: No Fed to bail you out here

All of this is very ambitious and shiny but DeFi has its own issues. For starters, the sector is still “very much under construction and new economic models are currently being tested,” points out, Mati Greenspan, founder of Quantum Economics in his daily newsletter.

It isn’t too dissimilar to traditional finance but brings in a high level of transparency and is obviously devoid of any central banks, which “could make all the difference in the world.”

But another big question is the APR they offer on lending the crypto asset.

While the US Federal Reserve offers you 1.5% to lend money to a government in the bond market and the highest yield one can get is less than 7%, it is mostly negative in developed countries like Japan and Germany, so how come these projects offer as much as over 9%?

The thing is they are lending the same crypto-asset out many times and taking a fee from each of the transactions, much like what happens in traditional finance. But as Greenspan notes,

“the only difference is there’s no Fed to bail you out when things do turn sour and on a long enough timeline its very likely that many will get rekt.”

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Author: AnTy

This Uncannily Accurate Bitcoin Chart from Dec. 2018 Predicts a New ATH in 2020/21

  • Analyst ‘s post from Dec. 2, 2018, correctly predicts Bitcoin’s bottom and momentum in 2019

Bitcoin price is currently hovering around $9,000 after surging over 21% to date in 2020. With Bitcoin reward halving coming up in May 2020, investors are extremely excited to see if this historically bullish event will end up pushing BTC to the moon or as some commentators say a dump because halving is priced in.

According to an analysis posted by PentarhUdi on TradingView, Bitcoin price is onto a big rally that will see it hitting a new high by the end of this year. The post has garnered 133,200 views to date.

The analysis is his vision of Bitcoin’s future price dynamics in the context of the broken time log trend. “Bitcoin lost its huge momentum to stay in this trend,” which he said was going to happen sooner or later.

Because as Bitcoin and blockchain technology gets adopted, it starts losing its “blowing popularity,” and leave the straight-style log trend. But all the while it continues to grow in SQRT-style trend more smoothly.

Posted on December 2nd, 2018 when Bitcoin was trading just above $4,000, the analysis called for a local bottom between $1,500 and $3,000 in that month. The world’s leading digital currency won’t be breaking previous lower low at $159, obviously, but he said, “it should be 4-digits,” in the coming weeks. On Dec. 15, we hit the low at about $3,200 level.

As BTC dropped fast, going from $6,400 to $3,200 in just over a month, he said it should bounce fast to retest the last $6,000 level and “log trend at around 10000-20000. 2019-2020 AD,” and “then it should fall back to ~6000 support. This should happen up to 2020 AD.”

Interestingly, he has been right this time as well with Bitcoin hitting $13,900 in June 2019 only to drop back to $6,500 level in mid-Dec. 2019. The next step he says is “Go to new highs. Beyond 2020 year.” Although the analysis calls for a $70,000 peak, he is calling for a new all-time high in 2020-21 without an exact figure.

In 2020 AD, he is expecting bitcoin to find its place in society and its price to become relatively stable in the mid-term but continue to slowly climb in the long term.

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Author: AnTy

Lawmaker Proposes Bill For State-Chartered Institution For Blockchain & Crypto Innovations

An Oklahoma lawmaker has come forward with the proposition of creating a financial institution chartered by the state and that functions as a central crypto depository for government agencies in the state.

Senator Nathan Dahm wants to provide an infrastructure backed by the government, for cryptocurrencies and blockchain-related technology. As reported by LegiScan, the bill should be introduced on February 3, meaning now it’s only in development. This is what the bill notes:

“This new financial institution shall be fully supported by blockchain technology and innovations. The new financial institution shall have the highest level of expertise with customer identification, anti-money laundering and beneficial ownership components. “The new financial institution shall be designed to seamlessly integrate into existing banking and financial institution regulations that protect consumers while limiting regulations that restrict innovation and technological advances for new financial products, data transmissions and recordkeeping.”

It Will Take Time for the Depository to Be Created

Even if it passes, the bill proposed by Dahm won’t have a depository being created to soon, as it would have to bring together the Department of Commerce and Oklahoma’s State Banking Department to coordinate their efforts and to make plans so that the strategy developed for it respects the law and meets the state’s requirements. Having this in mind, a report regarding the initiative has been scheduled to be released on July 1st, next year.

The State to Welcome Businesses That Work with Crypto

The bill is seeking to make the state as more welcoming for retail and other business’ to work with cryptocurrency and employ blockchain technologies, stating that:

“Oklahoma is committing to partner with innovative technology, help develop next generation financial products, and safely grow unique technical and financial sectors in this state.”

Senator Nathan Dham had filed a bill in February 2019, the bill will show when a digital token is a security. He also sponsored a piece of legislation that became a law in April 2019. This law establishes when a blockchain-secured contract or a record is in electronic form and should be an electronic record.

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Author: Oana Ularu

Block.One’s ‘Voice’ Social Network Has An Open Door Policy To Other Blockchains, Not Just EOS

During its June ICO, Block.one had indicated that its Facebook rivaling social network dubbed Voice, would be launched on the EOS network. However, plans seems to have changed as CoinDesk reports.

Voice has been touted as a different form of social media network which will have in-built crypto and have the capacity to deal with bots since each account will be verified. However, after the announcement in June, the firm went mum but in Dec, it announced that Voice will be launched on Feb. 14.

The announcement came with additional information like a FAQ page found on the Voice website which indicated that a private EOSIO software will be used to run the application. However, the firm was non-committal on whether Voice will be run on EOS saying that other blockchain networks can also be used.

The statement in the FAQ is contrary to a press statement made in June which indicated that the social network would run exclusively on EOS. Still in June, to indicate its commitment to run on EOS, Block.one had reserved a large space of RAM within the mainnet.

Asked to comment on the latest developments, Block.one spokesperson turned down the request.

It is important to understand that Block.one mostly develops software but they are mostly run by other firms. For instance, while it developed EOSIO software, it was launched by a group of organizations from different parts of the world to what is today known as EOS.

Despite the eminent uncertainty, the CEO of EOS Dublin, Sharif Bouktila, remains bullish that Block.one will use the EOSIO for Voice. He explained that if Block.one fails run its apps on the EOS it would raise eyebrows in the industry as who else is better suited to use the blockchain. He said,

“There hasn’t been a decision that I can see but if Block.one didn’t need to use the EOS mainnet for its apps it would raise serious questions as to why and who else should use it.”

EOS has been in the news for the wrong reasons in the recent past due to performance issues. There have been allegations companies running on EOS prioritize speculative profits rather than the technology. The revelation of EIDOS smart contract that paid users for the number of transactions made is just one of the many. These could be the reasons why Block.one is considering other blockchains.

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Author: Joseph Kibe