Coinbase Wallet Users Can Now Earn Interest From DeFi DApps Directly In The App

The Coinbase Wallet has just integrated with decentralized finance (DeFi) apps in order to allow its users to lend crypto assets and track the growth of their interest straight from the wallet app.

As an announcement made by Coinbase on Wednesday says, Coinbase Wallet users are already putting millions into DeFi platforms through the wallet’s Dapp browser and WalletLink. Still, Coinbase wants to make their experience even more enjoyable. Until now, they didn’t have the option to compare rates from different providers, nor were they able to see the total of their balance with these providers with out leaving the app itself.

What Does the New Feature Bring?

According to the Coinbase announcement, the new wallet feature allows users who own a Coinbase wallet account to interact with lenders such as dYdX and Compound, which are both DeFi platforms. They can choose their coin and a smart contract provider in order to invest as much crypto as they want into one of the DeFi products.

As said before, they can view how much interest they’re earning and their total balance without having to exit the wallet. iOS users will have the new feature this week, while Android users will still have to wait a few more weeks.

DeFi Products Are Risky

Coinbase wanted to warn investors about the fact that DeFi products are quite new and present a risk. Caution was advised when using them. Here’s what the announcement reads exactly:

“Before you get started, please be aware that DeFi lending apps are relatively nascent and come with risks.

DeFi apps are programs running on the blockchain, and like any computer code they can potentially have bugs that cause you to lose money. Returns are not guaranteed and your deposits are not insured.”

Basic information and the definitions of minimum collateral or contract’s assets under custody are being provided for the wallet’s users to know better what contracts to choose. However, they’re still advised to do their own research in order to understand how the apps work and the risks they’re about to take.

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Author: Oana Ularu

Bitcoin Jumps on the News of The Fed Launching “Unlimited QE”

Just like last weekend when the price of bitcoin reacted immediately to the US Federal Reserve slashing interest rates to zero and restarted the QE program, today bitcoin jumped on the back of unlimited QE news.

Bitcoin was trading under $6,000 only to jump to $6,629 in under an hour. However, we are back around $6,300, up 5.83% in the past 24 hours.

Despite the stimulus, the stock market opened lower with the Dow Jones Industrial Average slipping 1.8% and S&P 500 fell 2.9%. Gold, however, headed higher on Monday to $1,524.96 an ounce after the Fed unveiled an aggressive round of additional stimulus.

“US stocks gave back all gains since the start of Trump’s presidency,” noted economist and trader Alex Kruger.

No Limit

The Fed said on Monday that it will launch several programs to help markets function more efficiently amidst the coronavirus crisis.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation’s first priority is to care for those afflicted and to limit the further spread of the virus,”

the Fed said in a statement.

“While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

Fed President James Bullard predicted the US unemployment may hit 30% in the second quarter and an unprecedented 50% drop in GDP because of the shutdown to combat the coronavirus (Covid-19).

Among the initiatives is a commitment to continue its asset purchasing program, a new chapter in Fed’s “money printing.” Other initiatives include unspecified lending programs to support eligible small-and-medium sized businesses.

“We are now in QE infinity, again,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Free Money, Not Free Lunch

The Fed has been injecting billions of dollars in the economy and considerings trillions more as the coronavirus cases around the world surge over 353,000 and at least 470 people die in the US.

With the shorter-term MMT announced, “the government can now spend all it wants,” said Kruger. This the economist said is “how free money looks like. But there is no such a thing as a free lunch.”

“Society pays for this. Via inflation. The price to pay is inflation in the long run. Inflation expectations are popping and the long end of the treasuries curve is already pricing it in,” said Kruger.

And this is why the crypto industry is so excited. Already, Bitcoin is looking like it might be decoupling, and according to on-chain analyst Willy Woo, we would get more confirmation of this in the coming weeks.

He explains that in a flight to safety, traders first exit risk-on leveraged positions to pile into USD, which has been soaring all this time. Once the assets have crashed against USD and fear peaks, comes the time to hedge in assets ahead of rise in their value as it happened in 2008 in gold and Woo says would happen to BTC in 2020.

It’s the first time that Bitcoin is going through a crisis and there is no knowing how it will perform. Currently, it is acting like a risky asset with charts having a bear flag, however, the fundamentals are strong and bullish while the stock-to-flow model cointegration is being followed nicely.

“Investors and consumers have trouble understanding Bitcoin’s value proposition. The former expects a cash flow, the latter expects magical payments UX. Both are disappointed by Bitcoin. Savers quickly fall head over heels in love with Bitcoin,”

said co-founder of the Satoshi Nakamoto Institute, Pierre Rochard.

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Author: AnTy

Best Case Scenario for Bitcoin is Govt’s Overspending & Losing Control: Economist

The price of the leading cryptocurrency is stuck at just about $5,100, keeping stable for now. Meanwhile, stock futures fell today and the markets remained highly volatile as the government’s response to the coronavirus fallout unfolds.

Stock Market Rose on Fed Stimulus

Futures on the Dow Jones Industrial Average fell 821 points, indicating yet another over 1000-points loss at Wednesday’s open. Nasdaq 100 and S&P 500 futures are also down. Futures contracts for the indices yet again went in “limit down” territory, triggering a circuit break after they hit a 5% loss.

On Tuesday, the markets rebounded from their deepest route since 1987 after the Trump administration’s massive fiscal stimulus plans had the investors hopeful. The White House is designing a fiscal package of over $1 trillion that includes a direct payment to Americans, financial relief to small businesses and the airline industry, allowing individuals and corporations to defer tax payments of up to $1 million and $10 million respectively.

Treasury Secretary Steven Mnuchin told Republican senators that unemployment could reach 20% if the stimulus package isn’t enacted.

Gold prices rose on Wednesday following the US Federal Reserve’s attempt to boost liquidity in the market. Spot gold rose by 0.7% to $1,538 per ounce while US gold futures were up 0.8%. Fed’s measures also supported the benchmark US 10-year Treasury yield which went up to a two-week high on Tuesday.

Bullish for Bitcoin in both the short and long term

Bitcoin that went up to $5,600 yesterday, is currently around $5,150, keeping above $5k.

“I hear people saying BTC is holding up well, yet no other asset (ex- some individual stocks and other cryptos) has dropped more than BTC,” said economist and trader Alex Kruger. According to him,

“Bitcoin did not behave like a store of value nor a safe haven” as it collapsed over 60% and there’s “nothing wrong in BTC moving up and down with risk assets in such a black swan event.”

However, he points out that those that are “ardently criticize governments’ economic aid packages” are doing so without realizing the fiscal stimulus is not only the reason for the stock market to jump but also for bitcoin. Kruger said,

“Those packages are bullish for the price of bitcoin in both the short and long term. In theory, the best case scenario for BTC is a world where governments overspend and lose control.”

Short-term holders got spooked

It is worth noting that gold also got sold-off aggressively during the past week’s carnage. It wasn’t anything new either as investors look to get their hands on cash just like they did in 2008. During that financial crisis, gold exploded after and Kruger like many others also believes “the same will happen with both assets (bitcoin and gold) this time.”

Also, with bitcoin, it is extremely important to note that long-term holders are confident in the crypto asset. The recent sell-off was because of the short-term sellers.

“The volatility certainly didn’t come from the >5y HODLers,” noted Unchained Capital. The vast majority of it came from “UTXOs 6 months old or younger.” The 3-5 year band was flat, totally apathetic, only .02%, or ~3,650 BTC from the >5y band moved. Another crypto analysis company Glassnode also noticed,

“Bitcoin HODLer Net Position Change has been positive during the recent price dump. This means long term investors have been accumulating discounted BTC and increasing their positions.”

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Author: AnTy

MakerDAO Community Approves USDC As DeFi Collateral Amidst Liquidity Concerns

The MakerDAO community has just approved the onboarding of USDC during its ongoing liquidity crisis. This situation was brought about by a $4.5 million discrepancy that arose in the past week when ETH saw its price plummet amid the bear market.

The news emerged that MakerDAO, a player in DeFi space, held official talks in regards to onboarding the USDC as alternative collateral. And has just now been approved.  According to them, this should help input more DAI liquidity into the DeFi realm marking USDC as the third collateral after ETH and BAT.

Notably, the DAI project is unsettled by its liquidity concerns that came about when their liquidators dubbed keepers were able to secure collateral liquidations auctions. This meant that they were not required to compensate the system with DAI for their debts hence resulting in the $4.5 million discrepancy on DAI books.

MKR holders to Initiate process

Naturally, the process would be initiated by the MKR holders ‘executive’ vote on the proposal. But according to the announcement, the foundation is already on course with technical preparations to facilitate the process.

This strategic move should be instrumental as it pushes the DAI back to $1. The cycle involves locking USDC, Minting DAI and then sell the USDC and so on in a bid to restore liquidity. It also affords vault owners the luxury of closing their vaults without enduring the setbacks as the DAI peg is quite high in comparison to USD.

There are however concerns that onboarding the USDC will reduce the so-called ‘purity’ of DAI, questioning its decentralized nature. If anything goes wrong, this will not only be a PR nightmare but also spike regulatory risks in case the US government becomes hostile to stablecoins backed by USD.

MakerDAO top leaders were quick to counter the sentiments that DAI would lose its decentralized nature after onboarding USDC. They insisted that the DAI is decentralized because there isn’t a central authority in the site to oversee functionalities.

“To say that DAI is not decentralized because of some of the assets that might back it would be erroneous”

A couple of things still require planning as they are yet to decide on the intended stability fee increase. The DAI team also needs a liquidation ratio that is evenly balanced which is lower than ETH but just low enough to not allow a single vault to mint all the USDC. Lastly, they need to think of a debt ceiling enough to provide the required liquidity but also without accruing additional risks.

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Author: Edwin Munyui

Bitcoin will be Just Fine, Here’s Why a 45% Crash is Still a Buy the Dip Opportunity

  • Bitcoin price crashed 45% in a single day and the volume went 10x the normal size
  • BTC bulls just betting that framework is correct, will boom like anything once the dust settles – Travis Kling
  • BTC is the only truly free market that doesn’t need govt intervention to stabilize – macro analyst

In a crypto carnage yesterday, Bitcoin price lost about 45% of its value, falling to one year low of $3,850. Currently, we are back above $5,200, nearing $5,500 but the market still remains fearful of what’s to come now, go another leg lower, range at current levels or make our way back.

As Michael Arrington, founder of TechCrunch, and CrunchBase noted, “This was like all of 2018 in one evening.”

Interestingly, this volatility saw a massive amount of BTC move on-chain. In blocks 621358 and 621259, over 200,000 BTC and 600,000 BTC moved respectively.

Since the price drop, 10k-100k BTC per block, 10x the normal volume, were moved.

“Too much panic and too little reason”

On Feb. 13, Bitcoin price climbed to 2020 high at above $10,500 but the black swan event coronavirus (Covid-19) and oil price war that rocked the global stock markets, experiencing their worst days since 2008 financial crisis and losing trillions of dollars in the process also hit the crypto market hard.

However, what had the digital asset in free-fall was the massive liquidations on the crypto derivatives platform BitMEX.

Interestingly, while Ethereum followed Bitcoin to deep losses, altcoins didn’t fall as hard this time.

There is bloodbath on the crypto street and investors are trying to maintain the confidence to buy the dip and according to some industry commentators it’s the right opportunity for that.

According to Edward Snowden, Wikileaks founder, and a bitcoin proponent, this has been too much panic leading the prices down which had him tempted to stack some sats.

Bitcoin Price cointegration with S2F Model Intact

Macro investor Dan Tapiero, Gold Bullion International co-founder also has some soothing words for the bitcoin investors and holders who point out within a day the digital asset lost about 45% of its value only to stabilize later in the day, that too without the help of central banks and government. Tapiero said,

“BITCOINERS: Hearing guys whine that btc is krap, not a hedge, not digital gold, it’s going to zero etc..stfu. Btc is the only true free market in the world. Btc is the only asset that can go down 50% in one day and doesn’t need govt intervention to stabilize. It will be fine.”

On the current market condition Travis Kling, former equities portfolio manager, now running crypto fund Ikigai feels once the dust settles and economic activity resumes, central banks inject trillions of new dollars, “off that bottom, there is no other asset on the planet that will move like Bitcoin.”

“Bitcoin is either antifragile or it isn’t. If it is, by definition it will come out of this stronger than it went in. There is a framework to evaluate “antifragility”. It’s not evaluated haphazardly, but with sound logic. So BTC bulls today are betting that framework is correct,” said.

To further boost your confidence, the bitcoin price is still following the stock-to-flow model.

“Doesn’t look like a real black swan to me, red dot still very much in the blue zone,” said the analyst on the digital asset being Black Swanned!

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Author: AnTy

Bittrex Global Rolls Out Ability To Buy Crypto With Credit Cards and Referral Program

Bittrex just made the announcement that it has introduced new features onto its platform, such as credit card support, mobile app upgrades and a referral program.

Bittrex Global users from the UK, France, the Netherlands and Germany will be offered the credit card support, while the exchange is trying to expand to users from all over the world. When it comes to the mobile app users, these will soon have the option of placing conditional trade orders like risk management stop-limit orders.

The Commission Price Structure Not Yet Disclosed

In spite of talking about the new share trading fees referral program, Bittrex didn’t mention anything about its program’s price structure for commissions. The company’s COO, Stephen Stonber, said the exchange has plans to launch some new features in the following months. Here are his exact words about this:

“We are continually working on ways to provide a better experience for users. An enhanced mobile trading experience is one of our top priorities and creating this new credit card gateway is an important way of lowering the barriers to digital asset trading for new and existing customers alike. These features are the first of many we have planned that will underline Bittrex Global’s ambition to provide the best and most secure platform for digital trading.”

Partner Biteeu Announces the Launch of Australian Exchange

The Bittrex-powered and Estonia-based company Biteeu also made the announcement of an Australian exchange launch. Biteeu is at the moment registered as a crypto exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC). It provides exposure to over 70 cryptocurrencies present on the market in Australia. Biteeu crypto purchases can be made through wire transfers or debit card in Australian dollars.

Bittrex’s Trading Volume Declined

Ever since the 2017’s high bull run, Bittrex’s share of crypto trading volume has continuously declined. As reported by CryptoQuant, the exchange attracted 40% cryptocurrency inflows of the entire market. Since February, the inflows are under 10%, whereas the Bittrex’s Bitcoin (BTC) inflows decreased from 88% to 2%. Currently, the exchange has a $45.6 million 24-hour volume, occupying the 90th place in the crypto exchanges top of exchanges with the largest trade activity.

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Author: Oana Ularu

AZ Congressman Gosar Updates ‘Crypto-Currency Act of 2020’ Bill To Provide More Clarity

The US congressman Paul Gosar just introduced the Crypto Currency Act of 2020 that aims to bring more clarity on which regulator should cover digital assets.

The bill proposal says digital assets should be divided in 3 categories: crypto commodities, crypto securities and crypto currencies. These 3 should be governed by the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC) and respectively the Secretary of the Treasury through the Financial Crimes Enforcement Network (FinCEN).

The Bill Initially Introduced in December

As a matter of fact, the bill (as first seen by CoinTelegraph) is an updated version of another one from December, and it’s now covering the definitions of smart contracts and decentralized cryptographic ledgers, both concepts with which they US regulators are struggling. It’s more explicit when it comes what primary and sole regulatory responsibilities mean too.

Gosar Presenting the Bill Solo

Not at all usual for the congressional practice, congressman Gosar doesn’t have a co-sponsor for the bill. His communication director explained that:

“Since this is such a niche issue, we worked with stakeholders and outside groups/experts to get a good sense of the kind of clarity that the industry needed. We chose to gather stakeholder support before working toward cosponsors.”

However, Erik Finman, the famous Bitcoin (BTC) investor wan involved in drafting the new bill. Finman mentioned there were a few participants bringing changes to it ever since December.

Many Draft Bills Introduced in 2019

2019 was a year that has seen many draft bills being introduced, mostly as a response to the Libra white paper from Facebook. Meanwhile, the initial version of Libra changed, probably after concluding the SEC has many regulations that could be interpreted in different ways.

The other most recent crypto-related bill is the Token Taxonomy Act, which was first introduced by Warren Davidson in 2018 and updated in April last year. Finman says he thinks the Token Taxonomy Act is now stalling and that Gosar’s new bill is “slightly bigger in scope.”

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Author: Oana Ularu

CoinDCX Is First Indian Crypto Exchange to Add Bank Transfer Support After RBI Ban Is Lifted

The Mumbai-based crypto exchange CoinDCX has added support for bank transfers, just a few hours after the ban on crypto imposed by the Reserve Bank of India (RBI) has been lifted.

On Wednesday, March 4, CoinDCX made the announcement that its users can use the Indian rupee to purchase cryptocurrencies. This makes CoinDCX the first Indian platform to support bank account transfers. The incorporation arrived in under 6 hours after the ruling made by the Supreme Court of India against the 2018 crypto ban imposed by the RBI. RBI wanted financial institutions in the country to no longer provide services to companies operating cryptocurrencies.

Crypto Enthusiasts in India Very Happy with the Ban Lift

The managing partner and founder of Ikigai Law, which is the law firm that filed a petition on behalf of Indian crypto exchanges and CoinDCX, Anirudh Rastogi, said the decision made by the country’s Supreme Court judges has grounds and that there was too little evidence to indicate cryptocurrencies are a threat to banks or the financial system in India.

He said the RBI ban wasn’t “proportionate to the risk sought to be addressed by such ban.” Sumit Gupta, the CEO and co-founder of CoinDCX, made a statement in which he expressed how he thinks the court verdict is probably a catalyst of the Indian cryptocurrency industry transforming completely.

Banking Integration, a First Priority for CoinDCX

Gupta also mentioned that his exchange’s first and most important priority was banking integration, as soon as people of India could once again make any investment in digital assets. Here are his further words on the matter:

“With renewed accessibility and convenience in purchasing cryptocurrencies, we believe that this change will have a dramatic effect in accelerating crypto adoption in India.”

It’s not yet known if the CoinDCX’s banking integration will bring the two entities together for now. No comments by the exchange have been made yet.

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Author: Oana Ularu

US House Financial Services Committee To Hold Digital Currency Hearing Next Month

Chairwoman Maxine Waters just released the March schedule for the US House Financial Services Committee with one interesting addition on March 24th.

The Subcommittee on National Security, International Development, and Monetary Policy will meet to discuss digital currencies in a hearing called “A Review of Domestic and International Approaches to Digital Currencies.” It will start at 2 pm ET, on March 24, which states the notice from February 21. Congressman Emanuel Cleaver will chair the subcommittee.

No Further Information Has Been Given

Further information on the hearing has yet to be released. Meaning that its mode of inquiry and witnesses are not yet known.

Speculation is that the hearing will include a discussion of Facebook’s Libra, especially since committee chairwoman Rep. Maxine Waters was strongly opposed in the past. She even asked before its launch, that Facebook put a stop to its work on the stablecoin.

Concerns Raised by Congress

Rep. Maxine Waters and US Fed Chairman Jerome Powell are not the only members of Congress to raise questions concerning Libra. In the past, Powell argued that it raises serious concerns about financial security, privacy, money laundering, and consumer protection.

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Author: Oana Ularu

If Bernie Sanders Becomes The 2020 US President; How Would That Affect Bitcoin?

The Nevada Democratic caucus just showed senator Bernie Sanders as the winner. While voting was coming to a close, it was revealed that Sanders was leading Joe Biden by far.

If he’s elected, the impact on cryptocurrencies such as the Bitcoin (BTC) would be major. The results of the Nevada caucus indicate he has a good chance at defeating President Donald Trump. Sanders is the most likely nominee, but Biden will stake his flagging campaign at the South Carolina event from next week too.

How Will the Economy Be Affected?

Whereas the President doesn’t have too much influence over the economy, Sanders came up with some policies that made economists doubt him. For example, he offered forgiveness for student loans, advocated medical care for single payers and promised to fight “corporate greed”. His policies can be called anti-Trump and socialistic, but he still gained a lot of sympathy from the Democrats.

However, these policies may greatly impact the Federal debt, causing the US dollar to become crippled. The more debts increase and consume from the GDP, the more the dollar is devaluing, which can lead to a spiral inflation and the destruction of the US economy.

The BTC Would Bounce

On the other hand, Sanders’ policies could have a positive impact on the BTC’s value. The more this digital currency decouples from the dollar and the US national currency devalues, the more BTC’s value increases. Such an example was given by Venezuela, where while the Bolivar was being tanked, digital currencies were being used more often for transactions. The use of BTC and DASH went through the roof because merchants looked for transfer methods that are stable when compared to the country’s currency.

In case this would happen in the US, new users would enter the market and cause cryptocurrency prices to go up as a result of increased usage. In other words, Sanders may bring only good for the BTC.

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Author: Oana Ularu