Bitcoin Market Looking for New Lows After Elon Musk’s Pump & Dump

While the endorsement from Tesla CEO and Bridgewater Associates founder is “bullish” for the leading crypto, Ray Dalio says the idea of “a church that one is devoted to determining one’s investment position on Bitcoin” is discomforting.

Bitcoin had a wild Friday as we pumped and dumped beautifully.

What looked like a change of Bitcoin market trajectory turned out to be nothing more than a short-lived pump.

This pump was propelled by the world’s richest person, Tesla CEO Elon Musk, who changed his bio to “bitcoin” that followed up with “In retrospect, it was inevitable.” This tweet was also put in block 668197 mined by yhc5t3.

It turned out to be just like the Xi pump back in October 2019 when Chinese President Xi Jinping’s call for China to accelerate the development of blockchain technology sent BTC above $10,500.

Now, the market is expecting Bitcoin to go back to testing the lows. Already Bitcoin is down more than 7% and dropped under $33,000. Trader Benjamin Blunts is calling for the incoming of new lows at “sub 28k.”

Besides this short-lived pump, Musk taking Twitter CEO Jack Dorsey’s route also resulted in others doing the same. These individuals include Reddit founder Alexis Ohanian who is also busy “staking sats,” Anthony Scaramucci of SkyBridge Capital, YouTuber MrBeast, crypto exchange Gemini founder Tyler Winklevoss and other Bitcoin enthusiasts all having simply “Bitcoin” in their Twitter bio.

“Bitcoin is the signal and it’s getting louder,” commented Michael Saylor, CEO of MicroStrategy on this.

Another positive momentum for Bitcoin came from Bridgewater Associates founder Ray Dalio this week, who turned positive on the cryptocurrency. Mike Novogratz called this endorsement from Musk and Dalio “bullish” for Bitcoin, stating:

“BTC is a store of value. All stores of values are belief systems. And we are getting new converts to the church at an accelerating rate. Stay long.”

However, Dalio was quick to chime in to say that he doesn’t call himself “a convert to the church of an accelerating rate,” rather he would be interested in the response to his assessment of Bitcoin and knowing “what am I missing?”

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Exchanges Can’t Handle the Growing Demand

While Musk tweaking his Twitter bio presented the market a pump opportunity, trading platforms couldn’t keep up with the demand they are seeing even since WallStreetBets got on the Dogecoin train and took the road to crypto space after Robinhood paused trading in some of the hot stocks on Thursday such as GME.

Robinhood also temporarily disabled the features that allowed users to buy cryptos instantly. However, the popular retail platform doesn’t offer the ownership of cryptos, rather just buy and sell opportunity through IOUs.

“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers,” said a Robinhood spokeswoman.

As we reported, users then moved on to crypto exchanges but like every other time they couldn’t keep up with this much demand.

Binance said the risk of new users put its system under stress, with its CEO Changpeng Zhao noting that user sign-ups and trades jumped to a record high as well, forcing the exchange to briefly suspend withdrawals.

“We almost ran out of DOGE coin addresses,” Zhao told Bloomberg. “Our system couldn’t generate new addresses fast enough to match new users coming in. It’s crazy.”

US-based Coinbase also reported that “due to a technical issue, we are experiencing degraded service where some trades may not be able to be completed.”

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Author: AnTy

World’s Largest Hedge Fund Manager, Ray Dalio, Is Warming Up to Bitcoin

In his latest Reddit Ask-Me-Anything (AMA) session, the founder of the world’s largest hedge fund Bridgewater Associate, Ray Dalio, touched upon Bitcoin, in which there have been tons of questions.

“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives,” replied Dalio to a question whether Bitcoin is a potential answer to the issue that the global new world fiat monetary system has become because of central bank money printing which in turn has increased inequality in the US. According to Dalio, Bitcoin has both,

“similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth.”

Talking about Bitcoin relative to gold, Dalio has a strong preference for the asset that central banks will want to hold or use in exchanging value while transacting.

However, the thing is, an investor must diversify his investment portfolio, and Bitcoin can be one. He said,

“It could serve as a diversifier to gold and other such storehold of wealth assets.”

“The main thing is to have some of these type of assets (with limited supply, that are mobile, and that are storeholds of wealth), including stocks, in one’s portfolio and to diversify among them.”

Cash is a bad alternative

These positive remarks towards bitcoin came after Dalio said last month that he may be missing something about the digital asset and that he would “love to be corrected.”

“Looks like @RayDalio has been contemplating bitcoin. Definitely seems like he’s coming around,” commented analyst Mati Greenspan on this new development.

During the AMA, Dalio further talked about the flood of money in the market that is lifting the prices of most assets, which are distributing wealth in such a way that it is “threatening to the value of our money and credit.”

“With the amount of money out there, and cash being such a bad alternative, there’s no good reason that stocks couldn’t trade at 50x earnings,” said the hedge fund manager, which, to be honest, also holds true for Bitcoin but at a larger percentage.

“It is important to diversify well in terms of currencies and countries, as well as asset classes,” he said, adding, “I want excellent diversification at this time.”

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Author: AnTy

Michael Saylor’s MicroStrategy Buys Another $50 Million (2,574) in Bitcoin

  • Founder Michael Saylor discloses MicroStrategy purchased another $50 million in Bitcoin
  • The tech company now owns over 40,824 BTC

MicroStrategy is known as a platform for business analytics, guiding other enterprises in their efforts to transform their own brands. The brand originally launched in 1989 with founder Michael Saylor, signing McDonald’s as their first major client in the early 1990s. In recent years, the company launched MicroStrategy 2020 as a way to use machine learning technology and augmented intelligence for business strategies.

Now, Saylor has announced another change – another massive investment, adding to the companies Bitcoin holdings. In a tweet on Friday, Saylor explained that the company purchased $50 million in Bitcoin, which amounts to 2,574 bitcoins. At the time of the purchase, the average cost per Bitcoin was $19,427.

This purchase is not the first time that the company has added Bitcoin to the company’s financial assets. In August this year, the company turned to Bitcoin as it experienced fewer returns during the coronavirus pandemic that was detrimental to the economy. At the time, MicroStrategy purchased 21,454 BTC for $250 million in Bitcoin, the average price was much lower at about $11,635. A little over a month later, they purchased another 16,796 BTC for $175 million. With today’s purchase of 2,574 BTC, the company owns just over $766M with bitcoin current hovering at $18,770.

Not only is the company extremely bullish on the top cryptocurrency, but Saylor has become a beacon in recent months, spreading the word of bitcoin to his peers. He even disclosed that he owns 17,732 BTC personally, worth over $332M.

Saylor’s faith in Bitcoin was recently discussed with Marc Friedrich. The CEO doesn’t believe that Bitcoin is in early the same position as it was even five years ago, making arguments against it irrelevant. With the massive growth since 2017, Saylor compares the asset to the career of Lebron James.

“…Lebron James played basketball from age 9 to 18, and he was talented but erratic and volatile. But then he grew up and from age 18 to 28, he destroyed everybody and everything in his way,” Saylor remarked.

Large transactions of Bitcoin – i.e. anything above $100,000 in value – have increased significantly amongst institutional investors in the last few months. Analysts say that there have been many factors to influence the investment, but Saylor and other investors believe that Bitcoin will remain to be a store of value in the market.

To view the disclosure that Saylor revealed in the tweet, here.

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Author: Krystle M

CNBC’s Mad Money Host, Jim Cramer, Says ‘Not Too Late for Bitcoin’ Even at $19,000

Jim Cramer, the founder of The Street, took to Twitter to share with its 1.4 million followers that it is a good time to jump into Bitcoin. Cramer said,

“It is not too late for Bitcoin.. great alternative to gold… which I have always believed in.”

The host of CNBC’s Mad Money comments came when the largest digital asset is trading above $19,000, a level last seen during the peak of the December bull run. BTC is just inches, not even 5% away from its all-time high of $20,000.

While millennials are already into cryptocurrencies big time, boomers may make an entry into the market too.

Bitcoin is up 168% YDT, with the majority of these gains, nearly 80%, coming in these last two months.

Unlike BTC, which is strengthening its digital gold narrative, the precious metal itself is having a rough past few months. Ever since hitting a new high above $2,000 in August, the gold price has been on a decline. Up only 18.7% year-to-date, the bullion is down -3.74% this month, dropping to the $1,800 level today.

While gold is getting sold off, BTC continues to climb up, inching that much closer to its new ATH. As we reported recently, analysts at Deutsche Bank said that Bitcoin is seeing increasing demand to be used to hedge dollar risk, inflation, and other things for which previously gold has been used.

Bitcoin whales are the one that is busy accumulating bitcoin currently. In the short-term, a much-anticipated pullback could make an entrance, with the number of accumulation addresses falling.

However, going by the narrative that the rally is largely driven by professional asset managers, “this means that Bitcoin will play a more active part in portfolio construction, going forward,” said Denis Vinokourov of Bequant.

Talking about its implications for Bitcoin, he said it would make “its once cherished non-correlated asset appeal (…) unclear, but it makes sense that if more institutions hold it, the more likely it will become correlated to traditional assets.”

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Author: AnTy

Yearn Finance Creator Andre Cronje Reveals New DeFi Project DeriSwap

  • Andre Cronje, the founder of the famous decentralized finance (DeFi) project Yearn Finance, has announced the launch of a new project.

Earlier today, Cronje shared a blog post confirming the launch of DeriSwap, a protocol that consolidates different parts of DeFi.

How DeriSwap Works

DeriSwap combines multiple DeFi services such as swaps, options, futures, and loans. Cronje believes his new project could improve capital efficiency in DeFi and allow for more interactions between assets. Cronje explained in the announcement,

“DeriSwap allows for a consolidated, capital-efficient market for Trading, Options, Futures, and Loans, allowing LPs to keep their exposure and enjoy additional fees and rewards.”

Cronje offered scant details about the new platform and what it entails. However, he pointed out that the swap contract is a standard Uniswap x * y = k, which allows Liquidity Providers (LP) to swap two assets that make up a pair. For example, if LPs provide ETH-BTC as liquidity, traders can swap these assets for one another, allowing LPs to earn trading fees.

The protocol uses the Time Weighted Average Price (TWAP) oracle, with Cronje confirming that it takes readings every 30 minutes. Such operation allows for real-time metric readings, which should improve the protocol’s operational efficiency.

Cronje plans to release more details about the protocol after the audit. Since the launch (and exponential growth) of Yearn Finance and its native YFI token, he has been pretty passive, choosing to speak mostly through his work.

Last month, Cronje launched the Keep3r Network, much to the excitement of investors. The network functions as a decentralized marketplace for technical jobs. Along with its native token, KPK, Keep3r aims to provide crypto projects with access to the specialized labor and technology they need to run.

The project’s documentation explained that it supports tasks that are as “simplistic as calling a transaction, or as complex as requiring extensive off-chain logic.” Employers can also pay contractors with KP3R tokens from the fees they earn by yield farming ETH and KRP on Uniswap.

Cronje’s Midas Touch

Despite the lack of a formal launch or much fanfare, Keep3r immediately attracted buzz once it dropped.

A few opportunistic traders with their trading bots immediately injected funds into the platform and began trading KP3R on Uniswap, causing its price to rise from $1 to $2,000 even on thin volume.

However, Cronje redeployed the platform’s contracts several times while conducting tests, causing the KRP price to drop to $100.

At press time, KP3R trades at $275.63, with a market cap of $51.5 million. This is monumental for an asset that is still in beta and is less than a month old.

It’s unclear whether DeriSwap will have any tokens associated with it. However, if it does, then it won’t be so surprising to see a post-launch surge.

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Author: Jimmy Aki

SoftBank CEO Sold his $200M Bitcoin Investment in 2018 Because He Couldn’t Stop Price Watching

Every Bitcoiner knows this feeling.

And we can relate to Masayoshi Son, the founder, and chief executive of SoftBank.

But what we can’t relate to is that he still does not understand Bitcoin.

At the DealBook Online Summit on Tuesday, Son, who has made billions from his bets that involves an early investment in Alibaba, said he was convinced by a friend to invest “1% of his personal assets” into bitcoin, as such investing “about 200 million.”

But much like any crypto community member, he would spend five minutes each day looking at BTC prices fluctuating, he said. He was stuck tracking the movement of his Bitcoin investment and found it to be “distracting [his] own focus on [his] own business.”

This led him to sell his stake in BTC in 2018, and according to him, he lost an estimated $50 million, which could actually be closer to $130 million.

“I feel so much better,” Son said.

If he had kept patience and held on to his BTC investment, Son’s investments would have been getting ready to turn into billions. After the bear market of 2018, Bitcoin has been gradually entering the bull market, which came in full force in 2020, especially in the Q4 of this year.

Two days ago, BTC/USD jumped to nearly $19,000, a level not seen since the Bitcoin bull market’s peak in December 2017. The digital asset is now just inches away from hitting a new all-time high.

While personally, Son couldn’t keep up with the bitcoin volatility, he still believes the “digital currency will be useful,” adding, “But I don’t know what digital currency, what structure, and so on.”

Son also missed the opportunity to be an early investor in Tesla and Amazon. In the case of Amazon, despite speaking with its founder and CEO Jeff Bezos about a 30% stake in the company before it went public. But of course, he didn’t take it, “I’m so stupid!” he said. He rather made a big mistake by pouring billions in WeWork.

While talking about the missed opportunities during the Summit, Son said his philosophy is “I would rather accept my stupidity and my ignorance — my bad decisions — so that I can learn from my mistakes,” he said. “It’s better to accept them, so I become smarter.”

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Author: AnTy

FTX CEO Made the Second-Largest Contribution of $5.2 Million to Joe Biden Campaign

Sam Bankman-Fried, the founder and CEO of cryptocurrency derivatives exchange FTX, has contributed $5.2 million to the US Democratic presidential candidate Joe Biden’s campaign.

Banman-Fried is the second highest contributor to Biden’s campaign after Michael Bloomberg, who contributed $56 million. The financial data firm founder who also ran briefly for his personal bid for the Democratic presidential nomination accounted for almost three-quarters of the total $79.5 million, which came from 100 donors.

According to the Associated Press, Biden is currently leading the race with 264 electoral votes, just six electoral college points away from securing the 2020 presidential election, compared to Donald Trump’s 214.

The donations came from organizations’ PACs that means the individual members, owners, employees, or individual’s immediate families as the organization themselves are prohibited from donating.

Other top continuators to Biden, in the same range as Bankman-Fried, has been Renaissance Technologies and the largest shopping mall operator in the US Simon Property Group.

The $74 billion US quant hedge fund RenTec actually has been eyeing the bitcoin futures market as per its regulatory filing.

Banman-Fried made the donation through its trading firm Alameda. Commenting on this, one trader said, “If it’s good for crypto and US laws around trading crypto, I couldn’t care less.”

Adam Cochran on FTX CEO

“There’s a common misbelief that Republicans are “better” for crypto than Democrats. Ask anyone who works on crypto policy in DC & they’ll tell you that’s not true,” said Jake Chervinksy, the General Counsel at Compound Finance.

He further noted how it was under Trump that crypto first gained global significance, but he said he’s “not a fan” and “his administration’s policies have reflected that view.”

It has also been during President Trump’s term that the IRS added the infamous “do you own crypto” question. Chervinksy believes, “Democrats can be convinced to support a de minimis tax exemption for crypto spending since it advances financial inclusion.”

Moreover, there are many aspects of the technology such as consumer protection, financial inclusion, disintermediation of Wall Street, and “Big Tech” that are attractive to Democrats.

“Soon, we’ll have a chance to convince President Biden of how valuable crypto can be to the USA. I’m optimistic!” he added.

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Author: AnTy

Alibaba Founder Jack Ma: Digital Currencies are the Future of Financial System

Alibaba Group founder Jack Ma talked about digital currencies, potentially playing an important role in building the financial system of the future. Ma at the Bund Summit in Shanghai said,

“Digital currency could create value, and we should think about how to establish a new type of financial system through digital currency.”

He said the future vision of a financial system in the next 30 years might have digital currencies at its “very important core.”

“Digital currency may redefine currency.”

Ma criticized global financial regulation during the event. According to him, they stifle innovation and, as such, urged for a system that focuses on development.

“After the Asian financial crisis, the risk control highlighted in the Basel Accords has been” regulators’ priority, he said adding that now the world “only focuses on risk control, not on development, and rarely do they consider opportunities for young people and developing countries.”

Comparing the Basel Accords to a club for the elderly, Ma said they are used to solving financial systems operating for decades. But China is still a “youth” and needs more innovation, he said.

Ma’s speech came just hours after Ant Group set the price of its Shanghai listing. The IPO, which is also planned to be in Hong Kong, is one of the most anticipated and on course to become the “biggest in history,” surpassing Saudi Aramco’s record $29 billion share sale last year by raising $34.1 Billion at aa valuation of $310 Billion.

Ant Group Biggest IPO Record - CNN
Source: CNN

Retired from all his corporate roles, Ma, who is still the face of Alibaba and Ant, said the IPO’s share price had been decided on Friday but didn’t disclose the figure.

At the event, which hundreds of bankers and regulators attended, Ma said the Ant Group offering was a “miracle” because, for the first time, a big tech company set prices outside New York.

“We didn’t dare to think about it five years ago, or even three years ago. But the miracle just happened.”

Ma said China’s financial system is dominated by big state banks and needs an inclusive, sustainable, and green system that uses new technologies like big data, cloud computing, and blockchain.

“Innovation always comes with a risk, there will be no risk-free innovation … the biggest risk is that you try to minimize the risk to zero.”

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Author: AnTy

FinCEN Penalizes ‘First’ Bitcoin Mixer, Helix, for Violating Anti-Money Laundering Laws

The Financial Crimes Enforcement Network charged Larry Dean Hamon, the founder, and CEO of bitcoin mixer Helix and Coin Ninja, for violations of the Bank Secrecy Act.

FinCEN imposed a penalty of $60,000,000.

Currently, he is being prosecuted in the US District Court for the District of Columbia on the charges of money laundering and operating an unlicensed money transmitting business, Helix, from 2014 to 2017.

FinCEN argues that as per its 2013 Guidance, exchangers and administrators of digital currencies are money transmitters under the BSA and obligated to register with it. As per the 2019 clarification, the same rules extended to the mixers of virtual currencies.

FinCEN’s report says between June 2014 to December 2017, Helix conducted more than 1,225,000 transactions with at least 356,000 BTC transactions.

“Mr. Harmon operated Helix as a bitcoin mixer, or tumbler, and advertised its services in the darkest spaces of the internet as a way for customers to anonymously pay for things like drugs, guns, and child pornography.”

The bitcoin mixing service allegedly laundered tens of millions of dollars in crypto for darknet markets like Agora, Abraxas, Hydra, Hansa, and Wall Street Market. Former darknet giant AlphaBay allegedly also had close ties to Helix as it laundered $27 million in Bitcoin for the now-defunct marketplace.

Besides circumventing BSA’s requirements, they failed to collect and verify customer names and addresses of over 1.2 million transactions. Helix also deleted the minimal customer information it collected, and Harmon was also engaged in transactions with fraudsters, narcotics traffickers, counterfeiters, and other criminals.

This action, which FinCEN said to be the “first” one against a bitcoin mixer, is the first time such activity is called “crime” by the Department of Justice (DOJ), which could mean further troubles for services using obfuscation to make bitcoin not traceable.

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Author: AnTy

YFI Founder Andre Cronje ‘Still Building’ the DeFi Project that Got Hacked for $16 Million

Amidst the craze and shift toward non-fungible tokens (NFT), DeFi sweetheart yEarn’s founder Andre Cronje’s latest project saw rug pulled on $16 million.

The project was Eminence Finance (EMN), an unreleased and unfinished gaming multiverse project whose smart contracts were deployed last night but without any announcement.

But nothing remains out of the sight of crypto, especially the DeFi degens, more so when Cronje is involved.

The community soon discovered the project that had zero information available about it except for the two tweets subtweeted by Cronje, who, in his explanation, today, said the project is “at least ~3+ weeks still away.”

The twitter account of eminence.finance already has over 5,900 followers.

As is natural in high-risk DeFi projects, people rushed in with their funds to get in on a new YFI-related project. In a matter of a few hours, $15 million funds were used to mint EMN tokens.

Liquidity soon hit the largest DEX Uniswap, and the EMN-ETH market saw volume rising to millions, still at $11.7 million. Meanwhile, the price of EMN that went to $0.00003739 has crashed to $0.00003052.

And just as is normal in the DeFi world, an attacker exploited the unaudited code and swept away with all the $16 million.

The exploit was a “simple one” – “mint a lot of EMN at the tight curve, burn the EMN for one of the other currencies, sell the currency for EMN.”

The hacker sent $8 million of the stolen funds to Cronje’s deployer account, all of which yEarn treasury will be refunding to the holders after he received “a fair amount of threats.”

Despite the debacle, Cronje hasn’t given up on the project and is still building Eminence Finance.

“I am also going to continue deploying test contracts. I have over ~100 deployed contracts, of which probably >half have vulnerabilities. Please wait for official announcements,” he said today.

Trader and economist Alex Kruger noted that the hack losses are small in comparison to the 20% crash in YFI, following the news, currently trading at $25,275, “where the real damage was inflicted.”

“Price will likely recover fast, markets have short memories for this sort of events. Hopefully there are some lessons in there for everyone involved,” he added.

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Author: AnTy