Bitcoin Decoupling from The Stock Market is Here as BTC Eats Up Altcoin and DeFi Market

Bitcoin 2, everything else 0.

This is the tally after Bitcoin continues to move up following yesterday’s jump above $11,800.

Today, the leading cryptocurrency actually hit $12,000 on Bitfinex, last seen on Sept. 1st.

Since yesterday, BTC/USD has jumped over 5% on the back of $1.7 billion in real trading volume.

Interestingly, altcoins are not following this move up; as a matter of fact, they are recording losses, which means money is flowing out of the altcoins and into Bitcoin.

“Bitcoin about to consume the entire DeFi market and all the alts in the greatest consolidation crypto has/will ever see,” noted analyst Mati Greenspan.

Among the top cryptos, Chainlink is down the most, 5.43%; however, according to IntoTheBlock data, the number of LINK holders keeps on growing to hit a new record of 249.55k.

Ether is also down about 3% to just under $373.

“Eth is really lagging now but I think this recent move was probs some derivs bears tryna get out of their underwater btc shorts by nuking alts lol, waiting for eth derivs to give me more market info but honestly might actually punt an eth long soon,” said trader Loomdart.

DeFi tokens are experiencing even more severe losses between 5% to 15%, and in the past week, it has been up to 35%.

Besides altcoins, everything else is also not feeling as good or as bullish as BTC.

The equity market started with greens but soon dropped with S&P 500 trading at 3,448. The same is the case for tech-heavy stocks Nasdaq at 11,532 and Dow Jones Industrial Average at 28,370.

Unlike yesterday, today, gold is making some moves as it rises to $1,910. The USD Index actually went under 93 and is currently trading around this level.

“The decoupling is upon us. Makes sense that BTC will continue to be correlated in short timeframe trading; but not in the longer timeframes. BTC is a safehaven, just that “risk-on” (meaning it’s very new) is skewing this fact,” said on-chain analyst Willy Woo.

Meanwhile, for Bitcoin, the ongoing spike in the price is resulting in millions in liquidations, with the largest single liquidation order happening on Bitmex-BTC value $5.57 million.

The good thing for the Bitcoin market is that the BTC exchange balance continues to fall ever since March 15th. During this period, the net outflow has been 450,000 BTC, and the total exchange balance has reached the lowest point since November 2018.

On the other hand, the number of addresses holding at least $1 worth of BTC topped 24 million for the first time last week.

Additionally, institutional sized traders on CME, although don’t make up much of the open interest (OI), were only holding long positions last week. Overall, CME futures OI rose sharply yesterday, adding nearly 1,500 contracts on the October expiry.

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Author: AnTy

Crypto Exchange Coinbase Is ‘OK being Political’ About One Particular Area

San Francisco-based cryptocurrency exchange Coinbase is losing about 5%, about 60 of its employees following its mandate barring political activism at work.

Chief executive officer Brian Armstrong shared this on Thursday in a blog post where he said these employees had accepted an exit package offered to employees who are bothered by the policy. The number is further expected to grow.

“There are a handful of other conversations still ongoing, so the final number will likely be a bit higher,” Armstrong said in the post.

He further added it was “reassuring” that minority groups at the company haven’t taken the exit package disproportionately.

In late September, Armstrong told employees that generous severance packages are offered to those who don’t want to comply with the prohibition on activism at work — the latest rules are basically designed to make the company apolitical.

In his latest blog, however, Armstrong clarified, “We have just made a decision to not engage in broader activism as a company outside of our mission.”

This means conversations about current events related to work are permitted, and employees are allowed to be political about this one particular area – cryptocurrencies.

This is because “it relates to our mission,” Armstrong added.

This clarification came after Twitter CEO Jack Dorsey called out Amstrong for his move, which he said is in direct opposition to what bitcoin and cryptos stand for.

“We are political about one thing: our mission,” which includes Bitcoin, crypto, economic freedom, and other unmentioned things, Armstrong replied to Dorsey at that time.

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Author: AnTy

Riot Blockchain Targets 2.3 EH/s Hashrate by June 2021; Adds 2,500 Bitmain S19 Pro Miners

Riot Blockchain announced on Oct 6 that it would be expanding its S19 Pro Antminer fleet following a recent purchase of 2500 units from Bitmain. The firm also highlighted progress in previous S19 Pro miners’ orders [1,000 in April, 1,040 in May, 1,000 in July, and 8,000 in August] and an update on their deployment. Currently, Riot’s deployed hashrate capacity stands at 519 PH/s; they are now looking to quadruple this to 2.3 EH/s by June 2021.

According to the announcement, the newly purchased Bitmain S19 Pro miners were acquired at the cost of $ 6.1 million with delivery and deployment scheduled for December. Notably, this operational expansion comes barely a month since Riot ordered 13,100 S19 Pro miners, delivery for these is slated for the first 6 months of 2021.

With this aggressive scaling, Riot, a Nasdaq listed firm, is looking to take the lead in the Bitcoin mining space. As far as stats go, this will be the first listed Bitcoin mining firm to achieve a hashrate above 2 EH/s. The blog announcement reads,

“As far as the Company is aware, no other publicly traded bitcoin mining company has disclosed a hashing capacity exceeding 2 EH/s.”

Riot anticipates that it will have deployed up to 22,640 miners by the end of June 2021. However, this year’s target is 9,540 miners, which will boost the firm’s hashpower by 14% to 842 PH/s. Going by these developments, the race for Bitcoin mining domination seems to have taken the next level as industry titans play catch up with the latest BTC mining difficulty.

Other than scaling its mining fleet, Riot recently moved its Antminers to the Coinmint data center domiciled in Massena, New York. The facility provides cheaper electricity for Riot’s mining operations, given that its geographical location has abundant wind power and hydroelectricity.

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Author: Edwin Munyui

Is Bitcoin’s Store of Value Narrative Really in Danger with its Correlation with Stocks on Rise?

While Bitcoin is holding $10,000 firmly, it did slide to nearly $10,400 on Friday following the news of President Donald Trump testing positive for coronavirus.

And so did the stocks by 1%. This has been because of Bitcoin’s correlation with the S&P 500, which is just above +47%.

This, according to some means, BTC is “a mature, highly-correlated asset that does poorly during episodes of political uncertainty.”

While gold did exactly the opposite of Bitcoin’s, uptrending to $1,917 and its one-month correlation with BTC declining to -20% down from the peak of +76.3% on Sept. 19, as per Skew, today, the precious metal moved back under $1,900.

Bitcoin, meanwhile moved above $10,550 today, trading in the green.

Also, as trader Qiao Wang said, “Bitcoin is up 44% in the single most politically uncertain year of my life outperforming virtually every single macro asset class.”

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The markets, in general, are uncertain and directionless ahead of elections in the first week of November, which means October is expected to be choppy.

“We need more clarity on the election cycle and additional stimulus to help get things moving again in equities — and also in Bitcoin,” said Meltem Demirors, chief strategy officer of CoinShares. “Bitcoin has stayed range-bound despite a slew of positive news, largely because there is not enough inflation due to weak aggregate demand. We need Bitcoin’s behavior to match its narrative before we see a breakout.”

For the leading cryptocurrency, in the last few days, several incidents curbed its upside but didn’t drag it on the downside either. The third biggest $281 million KuCoin exchange hack and CFTC bringing criminal charges on popular crypto derivatives platform BitMEX only added pressure to the market sentiments, which have turned to “fear” this month.

In the near term, bitcoin is expected to stay range-bound. But an environment of limited upside for equities and bonds could benefit the digital asset, as per Bloomberg Intelligence analyst, Mike McGlone.

“Bitcoin is unique due to its limited supply, which unlike most assets isn’t influenced by prices, tilting the bias toward appreciation,” said McGlone. Moreover, it “appears as the leader in the early days of a paradigm shift toward digital money and stores of value. It may fail, but we see that as unlikely.”

He further said the coin is “growing up fast,” with many of its adoption indicators positive.

Over the past three months, the long-term supply bands in HODL waves that show BTC supply shift over time have been growing, signaling Bitcoin’s use as a store of value – a positive sign for the long-term health of the network.

The percent of BTC supply held for at least one year also continues to grow, going to its highest level since 2012 at over 63% on Sept. 30th. Additionally, the number of addresses holding at least 0.1 BTC had a noticeable uptick since March, suggesting more users might be joining the largest network.

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Author: AnTy

US House Lawmakers Pass Two Key Blockchain Legislation; Bills Headed To Senate

Following a two-week debate in the U.S. Congressional House, the Consumer Technology Act, which covers the Digital Taxonomy Act and the Blockchain Innovation Act, passed on Tuesday. The Act will now head to the Senate for debate.

The Digital Taxonomy Act and the Blockchain Innovation Act were introduced to the House by the Congressional Blockchain Caucus chairperson, Rep. Darren Soto. The two were then rolled into the broader Consumer Technology Act (HR. 8128), a program that mandates the Consumer Product Safety Commission to research and develops artificial intelligence solutions to enhance consumer protection and product safety.

The Soto-backed acts will work under the same goals of consumer protection. The latter aims at using blockchain technologies to fight fraud while the former will protect consumers from cryptocurrency and digital asset scams and fraud. Both bills introduced by Soto aim at enhancing U.S.’ blockchain research and development while keeping consumers safe. Soto wrote in a statement,

“The bill [Digital Taxonomy Act] directs the Federal Trade Commission to produce a report that would detail how the FTC protects consumers from unfair and deceptive acts or practices and provide further recommendations.”

Additionally, the Digital Taxonomy Act, if passed, will authorize additional power to the Federal Trade Commission (FTC) to “prevent unfair or deceptive acts or practices relating to digital tokens and transactions relating to digital tokens.”

The Blockchain Innovation Act, on its part, directs the Department of Commerce (DOC) to carry out a study on how blockchain technologies can be used to enhance trade and commerce – and how to reduce fraud across the commerce industry. The report, conducted in consultation with the FTC, will be submitted to the House Committee on Energy and Commerce and Senate’s Committee on Commerce, Science, and Transportation.

The statement on the passing of the blockchain bills further praised the potential that blockchain offers to commerce and trade in the U.S. Soto said,

“The study mandated by the Blockchain Innovation Act is a starting point meant to give government agencies a chance to make recommendations before any bills pass with a regulatory effect.”

“These recommendations will perform an educational function to Members of Congress and will pave the way for more actionable blockchain-focused legislation.”

The Consumer Technology Act was introduced to the house by Congressman Jerry McEnery (D-CA), referred to the Committee on Energy and Commerce.

Also Read: ‌Financial Firms & Law Enforcement Find Crypto More Risky Than Opportunistic

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Author: Lujan Odera

Decentralized Storage Network Filecoin to Launch Mainnet on Oct 15th; Raised $200M In 2017

Three years following its successful initial coin offering (ICO) approximated at $205M, Filecoin has finally confirmed that its long awaited mainnet launch is set for mid next month.

In a blog post from the team, the decentralized storage platform stated that the mainnet will be rolled out on Oct.15. The firm also revealed that the network will go live at block 148,888.

The platform is designed as a blockchain rival to Amazon Web Service as well as Cloudflare. The platform conducted one of the most successful ICO’s in history raising $205 million.

Dubbed decentralized dropbox, Filecoin is seeking to end the overreliance on the third-party hosting services used by companies such as Microsoft or Amazon. This will be advantageous to users as their content will not be monitored, like is the case with Dropbox, all information within the Filecoin platform will be encrypted making monitoring impossible.

The upcoming launch will end speculation in regards to years of delay. The firm had forecasted that its testnet would be launched by the end of 2018 while the mainnet was set to go live by 2019. The team then revised its estimation saying that the testnet was to be launched in the spring of last year while the mainnet would be launched by end of last year.

Filecoin was finally able to release its testnet in December last year. At that moment, the firm explained that the mainnet was set to be launched in March this year. Now, almost an year after the launching of the testnet, the firm has announced the mainnet will be launched mid next month.

All signs show that Filecoin is set to meet the expectations. On Aug. 24, the team released an incentivized testnet which is a sign that the platform is at the final stages of its design and development.

However, the team is facing challenges as an infuriated group of miners as well as venture capitalists in China are threatening to fork the platform before it can be officially launched. The group are of the view that they might be underpaid if the mainnet goes live. Protocol Labs, the firm behind Filecoin, had earlier released a paper stating that about 80% of miners could be rendered unprofitable.

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Author: Joseph Kibe

65% Vote For ‘Zero Compensation’ For MakerDAO Vault Owners Who Lost $8M On Black Thursday Crash

  • MakerDAO votes against compensating vault owners following the Black Thursday crash in March of this year.
  • Over 65% of the votes cast opted for zero compensation.

A vote completed on Sept. 22 after two weeks of community participation, MakerDAO protocol, a decentralized lending platform, decided not to compensate vault owners who lost up to $8.83 million in the Black Thursday crash on March 12.

MakerDAO raised a vote in August to decide whether the wipeout on March 12 constituted a refundable action and what means of payment would be most applicable. In the just-completed vote, over 65% of the 87,899.67 MKR (8.4% participation) votes cast opted for zero compensation in both MKR and DAI tokens.

Only 18% and 15% of the remaining votes wanted partial compensation of the vault owners in MKR and DAI stablecoin. According to the MakerDAO protocol rules, 1 MKR represents one vote. Despite the decentralization, the pool of voters was still short – with only 38 unique voters participating – highlighting the overall issues facing DeFi governance at the moment.

During the March 12 market crash, Ethereum (ETH) – the most popular collateralization asset on Maker – dipped heavily to sub-$90 levels. Vault owners who stake their collateral in Maker to mint DAI stablecoin saw their overall collateral value dip as ETH crashed, causing under-collateralization. In effect, vault owners should be liquidated at $100, but the protocol’s oracles did not reflect the price causing some of the auctions of DAI to be executed.

Some orders as low as 0 ETH for DAI were executed, causing an $8 million wipeout for the vault owners who carried the burden of the collapse. The collapse caused a $4 million debt hole in Maker’s protocol leading to the very first debt auction in the decentralized finance industry.

The decentralized vote on Maker is the final nail on the coffin for vault owners who pushed for compensation through newly minted DAI or MKR tokens. However, the result of the vote shows MKR holders were not of the idea of diluting their MKR tokens by adding supply to repay the vault providers.

With the vote completed, MakerDAO is still fighting its battle in court with a $28 million class lawsuit opened over the Black Thursday meltdown.

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Author: Lujan Odera

The ‘Beast’ Yearn.Finance Launches a ‘Completely Decentralized Lending Protocol’

DeFi darling Yearn.Finance is praised and gained a cult-like following thanks to its innovative and decentralized approach.

Every other day, yEarn creator Andre Cronje announces something new that gets the community excited and YFI surging.

On another such day, amidst the renewed uptrend in DeFi tokens after last week’s overdue correction, YFI jumped 20% to $31,252 but still 18% down from its all-time high of $38,869, as per CoinGecko.

“YFI is a cash generation machine, while many coins from prior cycles are digital petrocks,” said trader and economist Alex Kruger, who recently called Yearn Finance “a beast.” He added,

“Andre is a lightning fast builder delivering useful products. Something spectacular to observe, and unique within crypto. And he has a team now.”

Latest Offering for the DeFi

Today, Yearn.Finance, which has over $800 million in TVL and is next in line to be the Unicorn, is one of the hottest protocols in the DeFi space, which optimizes the yield on pools. In recent times, they have tokenized debt and insurance and launched vaults that allow users to put crypto-assets in and earn yields.

On Thursday, Cronje announced StableCredit, “a new protocol for decentralized lending, stablecoins, and AMMs.”

To be made available in the coming weeks, the idea here is to completely decentralize the lending system with this protocol where users can provide any asset and create tokenized credit called StableCredit USD.

For instance, you provide x amount of USDC, and the protocol mints “x * USD value StableCredit USD” where the USD value of 1 USDC will be determined by USDC price oracle.

The USDC and StableCredit USD are provided into the 50:50 AMM; the automated market makers define the premium at which the user borrows or repay assets.

The StableCredit protocol then calculates the system utilization ratio, up to a maximum of 75%. The utilization ratio, which defines the amount of credit line the user can extend to borrow against, is created by AMMs.

In tokenized debt, anything over the credit line and you get liquidated.

Now, the utilization value of the supplied USDC is minted as StableCredit USD, which is “lending credit” that can be used to borrow other assets as well.

The community is, as expected, excited about the latest development. And although for now, as Cronje himself said, the DeFi space is experiencing a greed cycle with the governance “Ponzi” in the middle of it, developments like these will see that the protocols like Yearn.Finance, Aave, and Compound sustain in the long term when the greed ends.

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Author: AnTy

Crypto Community Bashes First-Ever STO IPO Advisors for Shilling INX

The first-ever Security Token Offering (STO) held its IPO for 130 million INX tokens on Tuesday following approval from the US Securities and Exchange Commission (SEC). The Ethereum-based token was for sale at a price of $0.9 per token.

The IPO came about a year after the project issued its preliminary prospectus, which could become the largest IPO to date in the crypto industry if it manages to raise its targeted $117 million (originally targeted $130M).

A startup with 14 employees has Israeli consulting firm A-Labs Finance and Advisory as its underwriting for public offering. A-Labs’ owner Doron Cohen is the founding partner of INX.

They were founded in 2017 by Shy Datika, the controlling shareholder (31%) and president of INX and Cohen, who, along with Triple-V, owns a 10% share of the company.

But the real event hasn’t been about the INX being the first STO, but the advisors of the project and in the middle of it is Casa’s Jameson Lopp, who received backlash from the crypto community for shilling a “shitcoin.”

“It enables non-accredited investors to get exposure to crypto exchange cash flows. It’s kind of like BNB except regulatory compliant,” is how Lopp explained the project.

Lopp is actually eligible to purchase 25,000 tokens at $0.01 per piece, which is 98.8% lower than the price it is currently available for the public.

“Don’t conflate permissionless altcoins that try to compete with bitcoin to this, a regulated security token for a specific company,” said Lopp who finds it “interesting because historically the most profitable businesses in the crypto ecosystem are exchanges,” and “this is a very different beast.”

200 million INX tokens have already been minted, out of which 35 million are reserved for the management, employees, early investors, and advisors. Another 35 million have been put into a reserve fund for acquisitions and other operational expenses.

Token holders are entitled to 40% of the adjusted operating cash flow, which is so far negative $4 million and advisors are set to make $225,000.

Bitcoin core developer and founder of Bloq argued that maximalists had made a U-turn as they advertise their Ethereum token sale after calling everything on Ethereum a scam.

Blockstream CSO, Samson Mow, who is also one of the advisors and eligible to buy up to 100k of INX’s at $0.01 per token said he first invested in 2018 and that “the plan is for the INX security token to be issued on Liquid via Liquid Securities, however that will take time and approval from regulators.”

The exchange is estimated to launch in Q1 2021 with listings and the token trading in Q2 of next year.

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Author: AnTy

OKEx Exchange Considers Delisting ETC After $5.6 Million Loss Due to a 51% Attack

OKEx will consider delisting Ethereum Classic (ETC) following the recent 51% attacks that saw the crypto exchange lose $5.6 million. This was prompted by a double-spend where the attacker created confusion by launching a ‘shadow chain’ and leveraging OKEx’s high ETC liquidity. A report released by the crypto exchange on August 15 details:

“As for why the attacker(s) chose OKEx in particular to purchase and trade their ETC, the most likely reason is liquidity. OKEx provides excellent ETC liquidity, seeing some of the largest ETC transaction volumes in the industry.”

ETC’s 51% Attack Via OKEx

As per the report, this attack was well orchestrated and had been in play since June, when the malicious actors created five accounts with OKEx. The crypto exchange went on to approve the KYC documents of these attackers, not knowing the underlying motive. Interestingly, all these accounts passed the platform’s level 2 and 3 KYC protocols, which attracted an increase in their withdrawal limits.

Having penetrated the OKEx ecosystem and gaining liquidity exposure to ETC, the attackers went on to deposit 68,230.02 ZEC into their OKEx accounts. These funds were then converted to ETC and withdrawn to multiple external addresses, totaling $5.6 million worth of Ethereum classic. With the funds already transferred, the attackers initiated the 51% attack, which took place in three stages.

“The whole operation can be broken into three stages: 1) the creation of a “shadow chain” or a secret, alternate chain to ETC’s mainnet, 2) the actual double-spend, and 3) the profound chain reorganization that resulted in losses to OKEx.”

OKEx Bares the Losses

OKEx has since clarified that the company bore the $5.6 million loss, according to its user protection policies, which means that ETC funds deposited with them remained safe. The 51% attack on the ETC blockchain took place twice, with the initial one being on August 1 while the second followed on August 6. OKEx was, however, only affected by the first attack since it had already halted ETC deposits and withdrawals.

The exchange noted that it took some short and long-term measures to prevent such a risk in the future. If not delisted, OKEx plans to increase ETC confirmation times should the community act on improving the security of this blockchain. According to the company’s CEO, Jay Hao, they are not in a rush to delist ETC given its significance in the platform’s liquidity:

“Given ETC’s popularity and standing, we are not rushing into delisting … However, they need to implement significant upgrades to the network to reduce the chances of another 51% attack happening.”

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Author: Edwin Munyui