Paul Tudor Jones: Bitcoin Rally in its “First Inning,” Compares it to Investing in Apple & Google

“I like bitcoin even more now than I did then,” said billionaire hedge fund manager Paul Tudor Jones who made a bullish bet on Bitcoin this year in May with an investment of 1-2%, calling it the best inflation hedge.

According to PTJ, the ongoing rally, which has Bitcoin breaking into a new 2020 high to $13,300 after PayPal announced support, is just getting started.

“I think we are in the first inning of bitcoin, and it’s got a long way to go,” Jones said on CNBC’s “Squawk Box” on Thursday.

The reason behind the longtime trader’s love for the leading digital currency is the unprecedented quantitative easing from the Federal Reserve, which he believes is setting the stage for inflation. And it is going to make a comeback.

“The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade,” Jones said.

Much like many others, the founder of Tudor Investment Corporation compared putting money in Bitcoin to investing in the largest tech companies Apple and Google.

“Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it.”

“It’s like investing with Steve Jobs and Apple or investing in Google early.”

Jones, who is known for predicting the 1987 stock-market crash, also said that a Democratic win in the 2020 elections might also result in an initial pop in equity markets because “you’re going to get a massive fiscal stimulus, you’re going to get a big boost to the economy.”

But warned bonds and stocks could come under pressure because of Biden tax plan as “there’s an inverse relationship — it’s loose, but it’s clearly there — between stocks multiples and capital gains tax,” he added.

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Author: AnTy

Coinbase Turned Over Info on 1,914 Users; 96.6% Were Criminal-based Law Enforcement Requests

As part of its commitment to be a trusted venue, Coinbase has released its first Transparency Report.

Much like other financial service providers and technology companies, Coinbase says it received requests from the law enforcement and government agencies seeking information and financial records in connection with civil, criminal, and other investigative matters in the form of subpoenas, search warrants, court orders, and other formal processes.

Because these requests are valid under the applicable laws, Coinbase must respond, wrote Paul Grewal, Chief Legal Officer at the San Francisco-based exchange, that currently serves over 38 million customers worldwide.

As per the report, the exchange received requests for information on 1,914 customers during the first six months of 2020. 58% of this request was from US agencies, and 16% was from state or local authorities like FBI, HSI, DEA, SEC, IRS, DOJ, and others.

Of the request, the majority, 96.6%, were criminal, while the rest was a civil or administrative type.

Overall, 90% of all requests came from just three jurisdictions — the US, UK, and Germany.

Coinbase Transparency Report
Source: Coinbase

“Great to see this transparency from coinbase. After some controversy re: privacy, this is a strong step forward,” said Jake Chervinsky, General Counsel at Compound. “Also worth noting, this comes from new CLO Paul Grewal (who I still think of as Judge Grewal), an extremely well-respected tech lawyer & big asset to the company.”

Coinbase also noted in the report they have been pushing back when appropriate; back in late 2017, they won against IRS over customer policy.

“I hope they’re pushing back on inappropriate gag orders as well,” said Jerry Brito, executive director of Coin Center, a DC-based crypto think tank.

“Glad to see Coinbase publishing a transparency report, joining companies like Kraken. Hopefully this becomes an industry standard,” he added.

More Reading: After US Secret Service, Coinbase Strikes a Deal with IRS to Sell its Data

Also Read: #DeleteCoinbase Trending After the Coinbase’s Deal with DEA & IRS Becomes Public

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Author: AnTy

Stocks & Gold Getting Hammered But Bitcoin Fundamentals Do Not Support A Crash to $7k

In another red day of the week, Bitcoin dropped to about $10,150 level. Just like the weak price performance, with BTC currently trading around $10,415, volume remains extremely low too, at just above a billion dollars.

During the red market, the market saw popular stablecoin USDT having two separate all-time high outflows from exchanges. “In both cases for these historic spikes, it appears that they foreshadowed large market-wide dumps a few days after they occurred,” observed data provider Santiment.

Moreover, September has also been the highest cumulative month of funds moving to exchanges since March as the market continues to get a beating.

The rest of the crypto market is currently in a mix of reds and greens.

Among the top cryptos, ETH was hit the hardest, which fell under $320. This makes sense, given that DeFi tokens continue to lose.

Notable DeFi losers include Hakka (-25%), PERP (-18.50%), CREAM (-14%), CRV (-10%), SWRV (-7%), and YFI (-5%). A handful of them, however, are still recording gains such as YFL (+37%), UNI (+21%), SUSHI (+12%), DOT (+3%), and SNX (+2%).

However, losses might not be over yet as trader Qiao Wang expects this DeFi winter to be an extended one, bearish for 3-6 months over a two-year bull market.

He also noted, “Bulls like to blame negative external factors for killing the bull market. That’s the wrong way to look at it. When the market is depressed, no negative catalyst can crash it even more. When the market is overheated, the tiniest negative catalyst can spook it.”

Following the Macro

According to on-chain analyst Willy Woo, who says fundamentals don’t support bitcoin going down to $7k with a liquidity gap present in 10.8k-11k, this pullback wasn’t the result of the “usual movement of coins on-chain.” Rather the sell-off was fueled by coins on exchanges.

“Without large volumes of coins moving from wallets, I cannot see sufficient sell-side supply to push prices down with much gusto,” he said.

Woo attributed BTC’s downwards move to stocks looking weak and USD gaining strength over the past weekend.

Compared to other asset classes, Bitcoin is actually holding up quite well.

Bitcoin wasn’t the only one that had a bad day; stock markets dumped just as hard. As trader and economist Alex Kruger noted, “Two catchy phrases for today: Risk happens fast (and) Macro matters.”

The market had recovered from last week’s losses when the S&P 500 fell 2.5%, and Dow Jones slid 2.3% on Wednesday.

But it was Nasdaq that was hit the hardest by nearly 3% after data showed domestic business activity slowed down in September. Twitter stocks, however, were the exception.

Gold got hammered as well, down 3.7% since yesterday, falling to $1,850 level. “The support that it’s worked so hard to build at $1,900 is toast, as we see a rather well-defined downside breakout,” noted analyst Mati Greenspan who says the precious metal can reach as far as the 200 DMA, currently at $1,721, if the greenback continues its climb.

The US dollar is testing fresh highs and continues to “gradually reassert its dominance.”

As such, “If traditional markets shit the bed, BTC will likely do so as well. If traditional markets start bouncing, BTC will likely outperform,” said analyst DonAlt.

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Author: AnTy

Crypto Exchanges FOMO into DeFi, Binance Takes on Ethereum

Everyone wants a piece of decentralized finance (DeFi), which is growing like crazy. Crypto exchanges, especially, are taking a special interest in the sector.

This week, OKEx announced that with the latest upgrade of its OKxChain network, it had become the most decentralized exchange powered public chain. Huobi also jumped in and added ten more members to its DeFi team, which is “a consortium of centralized and decentralized financial services providers.”

Binance has already been going deeper in DeFi, announcing a $100 million fund and launching Binance Smart Chain (BSC).

In this growing competition of CEXs in DeFi, OKEx CEO Jay Hao recently called out Binance Smart Chain for not being decentralized.

“Built on BSC, BakerySwap caused huge losses for many retail investors <12h after mining began, which led to protests against BSC in China & elsewhere,” said Hao adding, “Those financial losses are a result of blind trust in Binance.”

“I strongly condemn Binance’s irresponsible behavior, which damaged the crypto community’s trust and caused DeFi to regress. Trust is hard to build but easy to tear down. For the sake of users’ interests & Crypto development, pls stop these tricks and BUILD the real DeFi,” said Hao.

Binance Marching Ahead

The leading spot exchange ERC20-based stablecoin has been gaining traction lately, seeing its volume surpassing Circle and Coinbase’s USDC Coin (USDC). In the past week, over $100 million worth of Binance USD (BUSD) has flowed into the exchange.

But it was actually USDC whose supply has doubled since the beginning of August. In just two months, USDC’s supply went from 1 billion to 2 billion, while it took two years for its supply to go from zero to 1 billion.

Binance has also taken the road to yield farming, the heart of DeFi mania, which helped its BNB token return to life.

“This is a good way to participate in the yield farming craze in a relatively low risk way,” said a researcher from Crypto fund The Spartan Group. For BNB, it means a constant demand for staking/holding making it an attractive asset to own, he said.

The exchange also introduced Binance Launchpool, which attracted many DeFi projects and away from Ethereum, the center of the DeFi world on which most of the projects are built on.

Binance CEO Changpeng Zhao noted that while BNB’s market cap is still 10% of ETH, the transaction volume of BSC is 40% of the Ethereum network. Recently, he also noted that while BSC is 100% EVM compatible, it also has 20x lower fees and no congestion, to attract more developers and projects.

“Did a quarter of users move already? Or is this just demand that was curbed due to high fees? Looks like the later as ETH tx count didn’t drop much. Growing, not taking, the pie,” he said.

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Author: AnTy

Another Wave of DeFi Euphoria Coming? Chinese Users Withdrawl from CEXs to Farm Yield

Decentralized Finance (DeFi) has been growing like crazy, hitting $9.5 billion until positions winded and DeFi tokens went down like stones.

During the recent market correction, DeFi tokens were hit the hardest, which makes sense given that they have been rallying hard, leaving non-DeFi tokens in the dust.

The pullback resulted in wiping out $2 billion of the total value locked (TVL) in DeFi. Currently, $7.8 billion are locked in these protocols with Uniswap, Aave, Maker, Curve Finance, attracting over $1 billion each.

The DeFi market seems to be slowly getting back to its feet, which could be further propelled by China.

China Onboards the DeFi Train

Earlier this month, the number of unique searches for DeFi on WeChat surged to about 1 million.

“DeFi is getting started in China now,” said Molly, head of marketing at Hashkey Hub. She noted how only a few WeChat groups were discussing trading and farming DeFi tokens, but for the past few days, more and more people are getting into it.

SushiSwap, a clone of popular DEX Uniswap whose creator sold his share of tokens and handed over the project to FTX CEO Sam Bankman-Fried, particularly is getting a lot of attention.

“I’ve got invited to 6 Sushi groups today,” she shared, adding that many groups are also working together and forming a “farming fund” and planning their own projects altogether as well.

And Exits the Centralized Platforms

While DeFi is gaining traction in the country, an initiative about taking down the centralized exchange (CEXs) by withdrawing the funds from them is also spreading in the crypto community of China. Overall, the ETH reserves of exchanges have fallen nearly 11% from May high, as per CryptoQuant.

“The “withdrawal movement” is widely spread, but the actual impact is uncertain. Exchanges are also starting to defend, such as the crazy listing of DeFi coins to make users to gamble in the secondary market, and helping users with yield farming,” noted Colin Wu of WuBlockchain, a local media channel.

As we have seen the market, from Binance, OKEx, Huobi, to FTX, everyone is riding the DeFi mania.

As the Chinese community launched the “coin withdrawal campaign” using the popular on-ramp USDT and further deleting their accounts entirely, many exchanges experienced “difficulties in withdrawing coins and shutdowns.”

Bringing a New Wave

The popularity of the yield farming, because of exorbitant percent of the rate of returns, and the recent nearly 35% drop in the price of Ether is driving Chinese crypto users. Many of them are buying the dips on exchanges then transferring them on DeFi protocols for farming.

All this activity led the daily Ethereum transaction fee to reach new highs. Daily ETH fees actually skyrocketed to a record $17.1 million earlier this month. This has made mining Ether profitable, which has increased the hash rate on the network considerably, noted Arcane Research.

This is resulting in the stock of Ether and other DeFi cryptos on the cryptocurrency exchanges “falling frantically,” said Wu.

It is possible, a new wave of DeFi mania may start soon, this time led by the new users in China, especially if they are just getting started.

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Author: AnTy

DeFi Growth is Out of Control, Pushing the Centralized Crypto World Behind

DeFi fire is getting bigger and bigger.

The sector has been growing like crazy throughout 2020 but it has been and the last two months has been simply explosive as the total value locked in the protocol went from just $1 billion to surpassing $4 billion.

And now in this month, it has been getting out of control as the TVL that was at $4.188 billion on August 1st has exceeded four big levels in this short span of time.

Currently, TVL on DeFi has reached a record $8.68 billion, as per DeFi Pulse.

And Aave (LEND) is currently dominating the DeFi space which along with Maker, Curve Finance, and Balancer have a market cap of more than $1 billion each. Popular Yearn Finance protocol is not far off followed by Synthetix, Compound, and Uniswap.

DeFi mania also has Binance and FTX offering DeFi futures with leverage to bet on the decentralization. Also, crypto broker Voyager Digital is getting on the DeFi by offering interest payouts on the likes of LINK, KNC, and BAT.

Amidst this, the liquidity on Uniswap more than doubled in the past 24 hours to over $650 million. The volume on the DEX has also risen to $250 million, which is already more than some of the popular centralized exchanges such as Kraken, KuCoin, Gemini, Binance.US, Bitfinex, and Poloniex, as per CoinGecko.

Uniswap is leading in DEX volume, with its 7-day volume reaching for $1.5 billion. Curve, Balance, 0x, and Kyber follow Uniswap but don’t come even close to it.

Monthly DEX Volume Dune Analytics
Source: Dune Analytics

DeFi space is very fast-paced, a lot more than crypto, which works to a great degree faster than the traditional finance.

Every other day, a new project enters the sector.

This time it is Sushi which was launched this week. SushiSwap is the “evolution” of Uniswap that has added community-oriented features, such as Sushi token, to improve the design of the protocol.

Already, the project has more than $357 million locked in it while its token SUSHI, much like any other DeFi token, is trading at $1.19, down 99.3% from its all-time high of $168.9 set just yesterday.

“SUSHI’s liquidity pool is equivalent of approx x2 liquidity of Coinbase on ETHUSD pair. A food item that came online today, now has twice the liquidity of an 8 billion valuation regulation-compliant exchange on the 2nd biggest cryptocurrency,” noted analyst CL.

Another project launched no more than a dozen days before is Meme Protocol, which saw nearly $500,000 locked in just 24 hours. Over 89% of the Uniswap liquidity is locked in this protocol.

Still, according to some, this might be a humble beginning for the DeFi sector which could grow to $5 trillion.

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Author: AnTy

DeFi Has Grown 993% YTD, But it is a Modest Beginning for What’s to Come – Trillions!

Decentralized Finance (DeFi) is growing like crazy — the total value locked in the sector has reached a record of $7.38 billion, and the market cap of the top 100 DeFi projects has climbed to almost $15 billion.

The project dominance in the space is also changing as new projects gain traction. For a long time, Maker (MKR) was ruling the market, but in the past few months, the likes of Compound (COMP), Curve Finance, Yearn Finance, and Synthetix have been rapidly approaching the top.

For now, Aave (LEND), which is seeing institutional interest picking up as large transaction volume hit an ATH of $148 million, is leading with 20.50% dominance.

However, this could be just a humble beginning, as per Techemy Capital, a boutique investment management company who foresees a road to $5 trillion locked in DeFi.

According to them, putting the data on a log scale overlaying it with major protocol developments provides a “clear S-curve.”

Techemy TVL in Defi
Source: Techemy

A part of the crypto world since 2012, Techemy Capital has been building and investing in DeFi since 2017. In its initial thesis in 2016, it talked about the first wave of capital inflow with ERC20 standard and that “We’re at the cusp of a multi-decade wave of ‘digitising value.’”

Last year, their updated thesis saw actual utility evident in DeFi to break the classic bitcoin four-year cycles with a projection of $5 billion TVL by the end of 2020, which has already been achieved a couple of weeks back.

As it turns out, their original DeFi thesis wasn’t bullish enough given the exponential growth the sector is seeing as DeFi’s usefulness breaks out.

According to their latest thesis, it is the “infrastructure” that grows DeFi, and its usefulness has emerged in the order of stablecoins, DEXs, lending, automated money markets (AMM), derivatives, and Layer2 scaling. The last two have been maturing now. It says,

“As new infrastructure & DeFi protocols take hold, they replicate segments of traditional finance, and the value locked in DeFi grows.”

The global derivatives are valued at $1 quadrillion in notional value; they can crossover from traditional markets along with tokenized real-world assets.

But there are tech contractions in the path and “nature doesn’t tolerate bottlenecks,” so, layer2 and scalability solutions are just a matter of time, for which pressure and incentives both are too high.

“DeFi is on a path to consume all assets, financial or otherwise, both inside and outside of crypt.”

And this sector will grow to trillions because “it is acting like a vortex, sucking in anything that enters its gravitational field.”

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Author: AnTy

Why Isn’t Bitcoin Breaking Above $12,000?

Bitcoin hasn’t been doing anything new. Just like the past three weeks, we are back to moving upwards to mark a green start of the week. However, ‘real’ volume is really low at just about $1 billion.

Over the weekend, BTC/USD went down under $11,400 and has now made its way back above $11,800. Nothing the market hasn’t already seen several times in August. With the last week of the month in, it’s to be seen if we will make a repeat of, breaking above $12k only to crash back down, or something different would happen before we move onto the last month of this quarter.

According to trader Don Alt, “$11000 remains the main draw.”

“Still pretty clean, price keeps retesting resistance on the way down. Once one of these actually gets broken, I think there is a good chance $12100 gets tested again, I wouldn’t bet on that happening though,” he said.

It’s Time to Range

Bulls, however, remain strong with BTC not breaking below $11,000 this month, except on August 2nd right after breaching the $12,000 level for the first time in a year. As we reported, the last time bitcoin breached these levels; it took less than a month to make a new ATH.

Bitcoin’s uptrend that started ever since the critical break of $10,500, “remains technically intact,” according to the technical analyst, Crypto Yoda. He said, “it is to be expected that we are currently trading in consolidation before uptrend resumption,” as bulls need to protect the last low around $11,100.

In case we drop below this level, the market would enter a trendless phase with a key level of interest around $10,500.

“There are, however reasons to believe that we may be in the process of morphing into a trading range,” he added.

August started around $11,300, and we are about 4.4% up this month. The close of the last week was also the prior resistance that held for multiple years, and now this level $11,685 is holding as support so far, noted trader Josh Rager.

“If the daily can stay above $10,500 and weekly about $11,500 – should be a continuation to upside,” he added.

Money is Flowing In

While the bitcoin market has been pretty uneventful for the past few days, we are seeing some interesting signs of accumulation and new money entering the market.

“Smart money net short new all-time-high. Retail net long new all-time-high,” reveals the CME COT report for the week ending August 18.

Retailers surely don’t care as the number of addresses with a holding period of fewer than 30 days, classified as “traders,” has increased in the last two months to reach a 12-month high at 3.12 million addresses that are holding, in total, 1.94 million BTC.

“New Money has been flowing into Bitcoin,” states IntoTheBlock about this development.

Interestingly, those addresses with a balance of over 1,000 BTC, worth more than $10 million, have also hit a new record high. This means whales are just as invested in accumulating BTC as the retail.

Capital Flight

A significant trend seen in the market is the capital flight, with over $50 billion of crypto moved from China-based digital wallets to other parts of the world in the last year. According to Chainalysis, it is possible Chinese investors are transferring more money than allowed — Chinese citizens can only buy up to $50,000 of foreign currency a year — out of the country.

Economic turmoil could have prompted this capital flight as the yuan has been losing its value, the same as equities.

These crypto holders are using the stablecoin Tether (USDT) to move their money — more than $18 billion worth of USDT has moved from East Asia addresses, but not all of this is capital flight.

“Cryptocurrency could be picking up some of the slack,” the report said.

Part of this activity could also be China-based miners converting their newly minted BTC into Tether and sending them to international exchanges to trade during the period of high volatility.

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Author: AnTy

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market.

With 8.61% losses In 2020 so far, XRP has now beaten EOS to become the biggest loser among the top 25 cryptocurrencies. XRP is down over 26% against BTC YTD.

In the past seven days, XRP/USD dropped 3.22% and 14% in the past month.

Post COVID-19 crash hasn’t been a good time for XRP as such it’s performance during this period pales in comparison to the strong recovery made by Bitcoin (BTC) and Ethereum (ETH) since the March sell-off.

Last month wasn’t good for either BTC or ETH, which moved in a “flat tandem,” but it was worse for XRP, which struggled and lost “14% of its already heavily drained market cap,” noted Arcane Research while trying to answer “Is XRP dying?”

Source: Arcane Research

XRP was flat in Q2 of 2020 with just +1% gains while Bitcoin with +44% and Ethereum +70% gains outpaced the digital asset by big margins. While stablecoins, DeFi innovations, and Proof-of-Stake anticipation has been driving Ether higher, “interest into XRP has died off as XRP struggles to recover since the crash.”

XRP’s poor performance particularly started in Q2 because it did start 2020 strong. It was after the markets crashed in March that “the three musketeers have seen vastly different growth trajectories,” and XRP has been simply a disappointment.

XRP also lost its 3rd spot to Tether (USDT) last quarter, and some are expecting it to drop out of the top 10 list altogether.

At the beginning of this month, Ripple unlocked 1 billion XRP from escrow in different stages.

Ripple is a “No Brainer”

Bitcoin proponent Anthony “Pomp” Pompliano, the co-founder of Morgan Creek Digital, recently shared his views of XRP, which he believes won’t benefit from Ripple’s success as a payment protocol.

“To me, if Ripple is successful, that doesn’t mean XRP has to be successful,” said Pompliano.

In the latest episode of his “The Pomp Podcast,” Pompliano talked about how Ripple excels as a blockchain-payment company with over 350 financial institutions and banks as its partners, but he remains unconvinced if this success is reflected in XRP. He said,

“What I don’t understand, and I think where I choose to not engage on the XRP side, is I don’t understand why people are buying it, speculating on future price movements.”

But Ripple’s mission as a software company that wants to build better software for banks is a “no-brainer,” which makes sense and is a “venture capital bet,” he said.

“I’m jealous I didn’t invest in Ripple in the seed round,” added Pompliano.

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Author: AnTy

OOC Oil & Gas Consortium Successfully Tests Blockchain Management System for Wastewater

The Offshore Operative Committee (OOC) Oil & Gas Blockchain Consortium, comprising of companies like Royal Dutch Shell, Equinor, ConocoPhillips, Exxon Mobil Corp, and Repsol has successfully completed pilot blockchain management program to automate payment, reduce costs and time for transporting wastewater, reported Reuters.

The water haulage program would streamline the process of transferring wastewater and other by-products produced during oil and natural gas extraction. The blockchain pilot automatically measured the volume of by-products and generated invoices in real-time.

The blockchain management system has been developed in partnership with blockchain software developer firm, Data Gumbo. The pilot run ended in late January and turned out to be a success as it reduced the amount of time that was required to transport the wastewater from ‘90-120’ days to ‘7 days’.

The blockchain pilot also reduced the need for human intervention significantly from 16 steps to 7 steps. The automation process also ensured that 85% of volume data on the network gets automatically validated due to the information provided by other parties involved on the network. They are confident that soon, they would be able to verify 100% of the data on-chain.

Rebecca Hofmann, the chairman of the 10-company consortium, was quite happy with the pilot run and lauded blockchain technology for bringing efficiency in their work process. She said:

“The results of this pilot prove that non-manned volume validations can trigger automated payments to vendors, and showcase the opportunities that exist for blockchain to reduce costs, increase efficiency, provide transparency and eliminate disputes in the oil and gas industry.”

The pilot wastewater management system was undertaken in partnership with Nuverra Environmental Solutions, who managed the water disposal of oil wells. The blockchain management system was tested on 5 Equinor wells located in North Dakota, and all five wells returned high efficiency with the use of blockchain.

The OOC Blockchain Consortium now plans to implement the system with its mainstream production sites.

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Author: Silvia A