Two Top Cryptocurrencies with the Worst Serial Market Performance

After the crypto winter of 2018, digital assets started recovering last year and continued the behavior into 2020.

Although still far from their all-time highs, the top cryptocurrencies have made a major recovery from their lows.

However, there are a few top cryptos that are still struggling and experiencing the worst performance. XRP and EOS are the top two cryptocurrencies that aren’t doing well. Both XRP and EOS have lost the most against BTC in 2020 so far.

The third-largest cryptocurrency dropped to a new low last month which has the digital asset to lose its position to Tether (USDT) at times. XRP/USD is currently trading at $0.20, up only 5% YTD but down almost 20% against BTC.

Source: TradingView – XRP’s 1-year price performance

In the past seven days, it recorded 7.32% losses, the biggest loser among the top 65 cryptos. In the past year as well, XRP didn’t fare well with 54% losses but several crypto joined the digital asset in these losses such as Bitcoin Cash (43%), Litecoin (59%), BNB (47%), XLM (40%), Tron (56%) and others.

XRP is also down a whopping 94.82% from its all-time hit in January 2018.

Amidst the poor price performance, the liquidity of XRP/MXN on Bitso rose to a new record of 37 million on May 31, as per Liquidity Index Bot. Similarly, a new all-time high of 15.6 million was tracked on the Australian payment corridor XRP/AUD.

Recently, Towo Labs, founded in 2019 to focus on developing the infrastructure for XRP Ledger (XRPL) and Interledger protocol released the XRP Toolkit V2. Using this Toolkit, trading orders can be executed on decentralized exchanges, XRP escrows can be created, and a connection to the XUMM wallet can be established.

Moreover, one of the amendments to XRP Ledger, Checks that was introduced in February 2018 with the 0.9.0 release may now become a reality that a UNL validator has removed a veto. This amendment is similar to paper checks and works with both XRP and any other issued currency on the XRPL.

A compliance move, it will let users exchange funds asynchronously and know the source of funds received.

EOS is another cryptocurrency not performing well, down 88% from its peak. Currently, EOS/USD is trading at $2.6, up 0.94% but down 23% against BTC.

The price of EOS, the record-breaking ICO of $4.2 billion, is now only down over 5% in the past month but also in the past year by 66%, the biggest loser among the top 40 cryptos.

Source: TradingView – EOS’s 1-year price performance

Yesterday marked the second anniversary of EOS mainnet going live.

“Happy 2nd Birthday EOS. I’m humbled and thankful to be a part of this talented global community that underpins the most performant and aligned public blockchain in the world. This year is going to be the best yet,” celebrated Brendan Blumer, CEO of Block.one, the company behind EOS.

Reportedly, Multicoin Capital that invested in EOS and shared in its thesis at that time that “decentralization requires tradeoffs in both economics and performance” has now gotten out of its position because “the governance process didn’t work.”

“I honestly have no idea what’s been happening with eos over the past year but thought they were still backing it. Still in the top 10 but going to drop out soon,” said analyst Ceteris Paribus.

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Author: AnTy

Raging Protests Across America Historically Bodes Well for Stocks; What About Bitcoin?

Coronavirus cases in the US are slowing down, rising by the slowest pace of 1.1% in five days after over 1.8 million reported cases and more than 106,208 deaths so far.

“Market upside ultimately depends on the path of the virus and the success of reopening,” wrote Credit Suisse Chief U.S. Equity Strategist Jonathan Golub on Monday.

The stock market opened higher only for Dow Jones to then drop by 0.38% along with the S&P 500 (currently above 3,000) and Nasdaq by 0.38% and 0.29% respectively.

When it comes to reopening the opening, Chicago which is hit hard by violent protests over a police custody death may delay its reopening.

Grappling with protests and cold war with China

The death of an African American at the hands of the police in the United States has set off mass protests against police brutality.

A chorus of criticism has erupted in many parts of the world alongside the unrest in the US over the death of 46-year old George Floyd last week.

Chinese officials and state media seized this news to compare these protests to the pro-democracy movement in Hong Kong, accusing Washington of hypocrisy.

Beijing repeatedly blamed “foreign forces” for inciting and diving Hong Kong protests.

The US administration has been vocal in support of Hong Kong’s pro-democracy movement. In response, Lijian Zhao the foreign ministry spokesman on Monday urged the US to protect the lawful rights of the minority and eliminate racial discrimination.

“US House Speaker Nancy Pelosi once called the violent protests in Hong Kong ‘a beautiful sight to behold.’… US politicians now can enjoy this sight from their own windows,” wrote Hu Xijin, editor-in-chief of nationalist tabloid Global Times.

Zhao also threatened with “counter-attacks” on the US for reversing Hong Kong’s special custom status.

This house of cards will come toppling down very soon

The stock market enters June on a higher trend despite multiple challenges ahead. S&P 500 rallied over 36% off its March 23 low despite a global pandemic, political and civil unrest, and economic and earnings downturn. Art Hogan of National Securities noted,

“At the levels we’re at, I wouldn’t be surprised to see the market take a pause and pull back.”

“We can say we’re slowly reopening and there’s going to be economic activity but it’s hard to defend valuations with so much unrest that we’re seeing going on in this country this weekend.”

But others believe protest won’t materially impact markets which is historically correct. As a matter of fact, stocks have risen while riots flared up. For the riots to have a major impact, there needs to be an expectation of long-lasting riots “otherwise they are noise as far as asset prices go.” Analyst Mati Greenspan said,

“Already hearing analysts with bated breath getting excited about buying stocks now because the #GeorgeFloyd protests will unleash additional monetary stimulus from the FederalReserve.”

“This house of cards will come toppling down very soon.”

According to Goldman Sachs analysts as well, the “remarkable journey” of US stocks is likely to stop, with its year-end target at 3,000, because of “numerous medical, economic and political risks dot the investment landscape.”

What about Bitcoin?

The world’s leading digital currency is trading around $9,550, up 0.80%. May marked the “highest monthly close on BTC in over 7 months.” So far, in 2020 BTC/USD is up 30.58% and nearly 50% in Q2 of 2020.

However, the June 1 candle has opened into resistance and it needs to “confirm itself above this structure” otherwise be ready for rejection and risk distribution.

If the stock market takes a hard hit, bitcoin could also be in danger of some extent of sell-off.

Historically, however, April, May, and June have been good months for bitcoin price performance which combined with investors preferring to hold their coins, institutional investors flocking to the digital currency and Federal Reserve’s balance sheet surpassing $7.09 trillion for the week ending in May 20 works in favor of bitcoin.

In the current global backdrop of social unrest, bitcoin — a decentralized, deflationary asset that is censorship-resistant and unseizable offers a great alternative.

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Author: AnTy

Chinese Devs to Use Telegram’s Open-Sourced TON Blockchain To Launch Their Own Network

  • Chinese TON developers announce the launch of their variation of the TON blockchain after successive launches by TON Lab’s Free TON platform and New TON.
  • This comes shortly after the global messaging app, Telegram’s CEO Pavel Durov, backed out of the open-source blockchain project.

In an official announcement from the Chinese TON project, the third “fork” from Telegram’s abandoned TON blockchain is set to launch. The company aims to follow through with  Telegram’s vision of a decentralized blockchain project after Pavel’s move to pull the messaging app firm out of the $1.7 billion ICO project.

After a long and tough legal battle with the U.S. Securities and Exchange Commission (SEC), Telegram called it quits in the TON project. The $1.7 billion ICO will be partially redistributed to investors over the next year and further withdrawing their appeal lawsuit from the federal courts.

The abandonment by Telegram, however, does not stop the building process given the blockchain’s open-sourced build. The China TON Blockchain developers, led by founder, Tooz Wu, aim at “starting the TON Blockchain testnet in the first step, and recruit more nodes and developers to join the network”. The published announcement further reads:

“We also aim at testing the network, and then redesigning network rules that are more adapted to the current context, and invite more people to experience and use TON.”

A Battle for the Betterment of TON

The launch of Chinese TON opens up a competitive field as it battles for subscribers with TON Lab’s Free TON and New TON. Speaking on the latest announcement co-founder and CEO of TON Labs, Mitja Goroshevsky, believes more communities working on the project improves development rather than stifle it despite extra competition. He said:

“The technology is open for everybody and anybody can launch it. […]Users will decide which has the most technical depth, which is better [and] more decentralized.”

However, Chinese TON developers do not share the same feelings towards Free TON with a tweet from a top developer calling the token a “shitcoin.”

Telegram’s off the TON project

While the open-source development goes on smoothly, Telegram’s investors in the GRAM token ICO are threatening to sue the company.

In April, the company announced they will be calling off the project and redistributing 72% of the investment to U.S. customers immediately and overseas investors are given an option to wait a year to receive 110% of their investment.

Pavel, however, warned investors and users against any private developers and platform claiming partnerships with Telegram.

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Author: Lujan Odera

Crypto Payment Processor BitPay Sees More Use in Stablecoins than Layer-2 Solutions

  • Rising fees on the Bitcoin blockchain after the halving will not set BitPay, a crypto payments startup, into using layer 2 payment channels such as the Lightning Network or Liquid Bitcoin.

Bill Zielke, BitPay’s Chief Marketing Officer, revealed on Thursday this week that the company was not planning to integrate the layer 2 Bitcoin channels. Bill explains that Bitcoin transactions dominate the customers’ preference hence no rush to switch despite the fees reaching highs of $7 after a 256% spike earlier in the month.

The company switched from being a Bitcoin-only payment service, where merchants can accept crypto and convert it directly into fiat currency options including the dollar, euro, and British pound. Users can currently pay across selected merchant stores in North America and Europe using multiple cryptocurrencies including Bitcoin Cash (BCH), XRP, Ethereum (ETH), and stable coins including Binance dollar (BUSD) this April.

According to Zielke, Bitcoin currently holds over 95% of all the transactions on the platform with BCH coming in second with about 2% of the total volume transacted. Despite the skyrocketing Bitcoin fees since the halving, the BitPay’s CMO says the company will not be switching to Lightning Network and other Layer 2 solutions due to unsystematic risks they pose. He said,

“Lightning Network and the Liquid sidechain are not in our current plans or roadmap but we are always evaluating new and innovative alternatives and collecting customer input on use cases, importance, and priority.”

The current lockdown state across countries due to the COVID-19 virus is seeing more people spend time online shopping and BitPay aims to increase the use of crypto in day to day spending. Stablecoins have witnessed impressive growth in the first half of 2020 and the lack of volatility on these assets makes them ideal for spending.

Bill said the company is focusing on the stablecoin market following the addition of several stablecoins on the platform this year including PAX, BUSD, USDC, and GUSD.

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Author: Lujan Odera

Maker (MKR) is the Latest Crypto Pumping on Coinbase Pro Listing Announcement

Last week, OmiseGo (OMG) saw the “Coinbase Effect” after the US-based cryptocurrency exchange announced its listing. Following the support, they even airdropped OMG to users who didn’t receive the tokens in 2017.

This week the latest cryptocurrency to enjoy this effect is Maker (MKR).

Today, Coinbase Pro announced the launch of Maker and the digital currency has already soared over 35% to $465. In 2020, so far, MKR has recorded negative returns of 7.42%.

Maker is supported on Coinbase Pro and starting Monday, June 8, it will start accepting inbound transfers of MKR. Trading will begin for MKR/USD and MKR/BTC 9 AM Pacific Time (PT) the following day but only “if liquidity conditions are met.”

This isn’t the first time Coinbase has launched support for Maker. Back in April 2019, Coinbase Pro added support for MKR along with EOS (EOS) and Augur (REP) but “due to limited liquidity,” trading for the cryptocurrency couldn’t proceed.

The 26th largest cryptocurrency will now be once again available in all Coinbase supported jurisdictions except for New York.

The ERC20 token is a utility and governance token of the Maker system that manages another ERC20 token, the DAI stablecoins.

Back in June 2019, Coinbase also added DAI as the first stablecoin to its Earn Program which joined EOS, XLM, ZEC, BAT, and ZRX.

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Author: AnTy

Bitcoin Pizza Day Celebrates its 10th Anniversary; 10,000 BTC for Two Pizzas is Now Worth $90M

May 22 is known as the Bitcoin Pizza Day after computer programmer Laszlo Hanyecz paid 10,000 bitcoins for two delivered Papa John’s pizzas in 2010.

Being one of the earliest well-known purchases in the history of Bitcoin makes it an iconic day. Those 10,000 BTC that has been offered for two large pizzas worth $40 is now worth about $90 million.

Hanyecz organized his pizza offer on bitcointalk forum,

“You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!”

In his first television interview with CBS News last year, Hanyecz shared,

“I honestly thought it would be really cool if I could say, ‘Hey, I just traded this, you know, open source internet money for a real world good.”

But Hanyecz didn’t stop after the first real-word transaction that involved cryptocurrency, he continued spending Bitcoin.

He minted and spent about 100,000 BTC in all, which would have been now worth more than $900 million, much of it on pizza, Hanyecz shared on “60 Minutes.”

2nd post by Hanyecz for another “open offer.” He also got the pizza on May 22nd.

Despite the price of bitcoin skyrocketing, Hanyecz isn’t really phased out about his deal as he told the NY Times in 2014,

“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool. No one knew it was going to get so big.”

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Author: AnTy

Professional Money Managers Loading Up on Bitcoin Post Halving

After making yet another attempt towards $10,000, Bitcoin failed to take over this important level and is currently trading under $9,500.

Interestingly, the world’s leading cryptocurrency is challenging the downtrend experienced after the 2017 bull run.

But this time a lot of factors are in bitcoin’s favor. For starters, bitcoin looks to be decoupled from the stock market.

Also, this week, the 7-day average “real” trading volume pushed to the highest levels of 2020. This week followed last week’s volatile but solid volume.

The last time bitcoin price was at this level was in July 2019, when the BTC price peaked at $13,900.

CME Captures Market Share

This week, the regulated market CME really shone as well. Over the last month, CME bitcoin futures saw significant growth in terms of open interest. Prior to the March crash, CME accounted for 4%-8% of all the open interest in the bitcoin futures market.

But this crash made a visible trend shift that has CME gaining the market share as it now accounts for 15% of OI. Arcane Research noted,

“This growth may indicate that professional money managers have loaded up on bitcoin following the market crash, seeking to allocate cash into a provably scarce asset class.”

Excluding Paul Tudor Jones’ $75 million worth of OI on CME bitcoin futures, still $400 million is held by other investors.

However, open interest in OKEx bitcoin futures has dropped which means traders are taking profits on their positions. As we reported, the bitcoin options market has surged to an all-time high this week.

Deribit remains the biggest player in the options market with its OI steadily fluctuating between 80% to 90% of the total market. CME that used to play a minor role now accounts for about 1-2% of total OI after recording over an 11% increase on Thursday.

Fast and strong growth

When it comes to the Bitcoin network, the 40% crash in bitcoin hash rate in the days following the halving that reduced mining profitability to half had some miners moving back to bitcoin forks.

Meanwhile, Network Value to Transaction ratio indicated bitcoin price might be about to enter a period of “fast and strong growth.”

Source: ArcaneResearch

NVT ratio measures the BTC price relative to the value transferred over the network. Over the past three years, the ratio exceeding 10 could indicate a fast and strong pace growth as seen in 2017, 2019, and 2020 and above 12, it could be a local top.

Also, network traffic must increase for the price to continue rising and in USD terms, network traffic is rising sharply.

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Author: AnTy

CoinMarketCap Finds the Solution to “Fake/Suspicious” Volume

In 2019, it was reported that 95% of the bitcoin trading volume is fake.

About a month after that, CoinMarketCap said they are “working hard to build constructive solutions to address volume concerns.”

Now, a year since the report came, CoinMarketCap has found the solution to tackle this issue.

Over a month after the leading spot exchange Binance acquired CMC in a $400 million deal, the crypto data tracker has exchanged the “volume” criteria for ranking cryptocurrency exchanges with the web traffic category.

à la ‘If you don’t have a solution, change the question!’

Real Volume? Remove suspicious volume!

Interestingly, the day Binance acquired CMC, the exchange was ranked 15th with a reported volume of $6.7 billion. However, the adjusted volume, a metric to exclude data that is “skewed or potentially suspicious,” reported just over $2 billion.

But this metric is now removed from the site.

And based on the new metric, Binance got the top spot!

“What did you think was gonna happen? Six weeks in and binance acquisition of CoinMarketCap already being abused to manipulate the rankings,” called out analyst Mati Greenspan.

Greenspan has been against Binance’s decision to acquire CMC from the start which he said is “buying out the ranking site in order to manipulate your way to the top.”

Source: CoinMarketCap

According to Binance founder and CEO Changepeng “CZ” Zhao, the new rankings are “better than before,” and he finds it useful as “I can finally have a clear view of the field and see who the real upcoming exchanges are.”

With the new metrics, “We strive to maintain a high standard for data transparency and integrity in our industry,” he said.

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Author: AnTy

BTC is in A ‘Bullish Consolidation’ While Whales Are in ‘Solid Accumulation Mode’

After the success of April, which Bitcoin ended with 34% gains, the digital asset has been fairly flat so far this month. Currently, BTC/USD is trading over $9,300.

These price gains came while the major central banks have been busy printing money and total assets on the Federal Reserve’s balance sheet increased by nearly 55% to $6.7 trillion in less than two months.

Macro Bullish: Re-accumulation

According to Glassnode Network Index, which is high, the recent price action for bitcoin was backed by strong network fundamentals.

“Subindices increased steadily through April, but liquidity is trailing – leaving room for volatility. Increased growth in liquidity would build strong foundations for a bullish scenario.”

The current price action that has the flagship cryptocurrency range-bound could be a “bullish consolidation” or “re-accumulation,” as per IncomeSharks, crypto analyst adding,

“As long as our near range holds I’m pretty confident in this larger wedge breaking upwards towards $9,600. Still in a bull market until I see a reason that we aren’t.”

Even bitcoin whales, entities that are holding over 1000 BTC, are also busy accumulating the digital asset. There are currently 1996 addresses with 1000-10,0000 BTC, as per Bitinfocharts. On-chain analyst Willy Woo said,

“Whale population spotted increasing in the wild. They’ve been in solid accumulation mode since January unperturbed by the COVID crash. This is macro bullish.”

Volatility Down But Volume’s Up

Currently, despite the flat price, “volumes remain elevated, as if something is happening under the surface,” said analyst Mati Greenspan.

Though common for volumes to rise along with volatility, they tend to die down once the action is over.

Last week, on spot exchanges, volume exploded to over $4 billion and the real volume is currently around $1.2 billion. This solid boost has the daily volume, 7-day average once again above $2 billion.

On the institutional front, the open interest on CME has surged to a new yearly high, the highest level seen since the price peak in 2019. Bakkt’s bitcoin futures volume was also as high as $30.5 million on Thursday.

Coming onto the bitcoin blockchain, things have started returning to normal. The estimated transaction value in USD spiked all the way up to $3.18 billion last week and then returned to normal levels.

The Million Dollar Question

Bitcoin has a good start of May, having breached $9,000 multiple times in less than a week.

As per Santiment’s NVT price prediction model for Bitcoin, it is showing a good semi bullish start to May. This indicates that the token circulation, the number of unique tokens being transacted at least once in a given day, is exceeding the average levels expected at bitcoin.

But the million-dollar question currently is how the bitcoin price will behave in these five days leading up to next week’s halving. Santiment noted,

“In general, prices tend to behave in the manner that the crowd least expects more often than not.”

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Author: AnTy

Bitfinex Applies for 3 Subpoenas to Help Recover $880M in Crypto Capital’s Frozen Funds

BitFinex seeks subpoenas from U.S courts to depose U.S based banks after its payment processing firm, Crypto Capital, had its funds frozen in 2019. According to the subpoenas sent to Colorado, Arizona, and Georgia, Tether’s sister company, iFinex, looks to the federal courts to intervene in the release of over $800 million in its funds held in the U.S bank accounts after its payment processing firm accounts were seized by international authorities.

BitFinex Requests Bank Records From U.S Affiliated Banks

Bitfinex aims to obtain a court order that asks the banks that stored funds for Crypto Capital including SunTrust Bank in Georgia, Bank of Colorado, ABT & Trust in Arizona, to release their bank records. This allows BitFinex to prove the company held funds in Crypto Capital’s bank accounts in Poland, Lisbon, London, and across other countries that seized the company’s assets.

The statement from BitFinex reads,

“Crypto Capital subsequently transferred funds between and among various banks, including in Europe and the United States.

In the U.S. alone, Applicant has information that Crypto Capital used accounts held not only at SunTrust, but also Bank of America, Bank of Colorado, Citibank, Enterprise Bank & Trust, HSBC, Stearns Bank, Wells Fargo, TD Bank, and US Bank.”

As the global banks across the world shut its doors for BitFinex given the regulatory requirements regarding crypto, the exchange chose Crypto Capital to process its payments. The exchange claims to have deposited over $800 million in the bank accounts over the years. Now under investigation under criminal charges for AML compliance, the exchange cannot access their funds.

This is the second wave of subpoenas sent out by the exchange after October 2019 filed in Californian courts. The court granted the exchange a testimony from a former TCA Bancorp executive on the Crypto Capital accounts. The exchange was also successful in obtaining a court order in Arizona to check Crypto Capital accounts too.

The Freeze: Crypto Capital

BitFinex’s payment processing bank, Crypto Capital, saw its accounts frozen in 2019 after the President of the company, Ivan Manuel Molina Lee, was charged in Poland for being part of an international money-laundering ring. Ivan is accused of helping drug cartels and mobsters to launder over $360 million on its exchange.

Notwithstanding, Crypto Capital’s, Oz Yosef, is also in trial on conspiracy to commit bank fraud, actual bank fraud and plans to operate an unlicensed money transmitting business.

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Author: Lujan Odera