Banking Sector Bleeds in 2020 While DeFi Records 900% Growth

In 2020, we saw the Oracle of Omaha, Warren Buffett selling all his positions in banks that included; Goldman Sachs, JPMorgan Chase, Wells Fargo, and others.

Given that the banking sector of Dow Jones, Nasdaq, and S&P 500, all three remain under losses, negative 35% returns YTD, it makes sense that even Buffett has jumped the ship.

In the current environment of ultra-low interest rates, banks are struggling to remain profitable.

But while centralized financing is suffering, Decentralized Finance (DeFi) has emerged in the crypto market as the latest craze which is seeing explosive growth.

The DeFi Boom

On January 1st, 2020, the total value locked in the DeFi sector was $680.9 million, which has now grown to $6.67 billion in just eight months.

The total market capitalization of the top 100 DeFi coins is close to touching $14 billion, as per CoinGecko. The biggest gainers of this sector this year include LEND (6,280%), REN (1,300%), KNC (835%), YFI (789%), LINK (650%), and SNX (480%).

The blockchain underpinning majority of the DeFi development, Ethereum is also up 209% YTD. Also, a record 4.6 million Ether are locked in these DeFi protocols along with 47.8k BTC.

“From a portfolio standpoint I want to be long the asset that is driving the market with real demand. ETH is a newer trade than the traditional trade of BTC vs central banks printing money,” said trader CryptoISO.

“Rocket Fuel” for DeFi Growth

The DeFi sector is seeing a new wave of financial experiments which is tokenizing everything from money, debt, mortgages, to insurance.

As Asheesh Birla, SVP of Product at Ripple notes, “We’re seeing a melding of the old world and new. It’s only a matter of time before banks offer custody services, acquire companies with those capabilities, and potentially even offer crypto lending as they see consumer interest in DeFi.”

Decentralized exchanges, with no central operator, in the crypto world, are already giving centralized exchanges a run for their money. Fiat-backed stablecoins have been providing the fiat on and off-ramps while enabling global consumers to access the USD without a bank account through the likes of Tether (USDT).

But within this sector, a new wave of Yield Farming is what is taking DeFi world by storm. It is basically serving as “rocket fuel” for the current growth cycle in DeFi, states Delphi Digital in its latest report.

Yield farming is generating the most returns on your crypto assets, and since people started chasing high yields, many ‘experiment” projects have cropped up in this really short period. It started with Compound and only grew from there to the likes of Yearn.Finance (YFI), Balancer, YAM.Finance, the Curve-Ren-Synthetix mix, and so much more.

But Not Without the Risks

As we reported, the skyrocketing Ethereum transaction fees are pricing out smaller layers and making DeFi increasingly a game of whales.

Another big question is: Are these governance DeFi tokens, that are at the heart of DeFi’s explosive growth, really that decentralized? According to the Token Daily report, the distribution of these tokens might not be that different from the ownership structure of JP Morgan or Bank of America.

For starters, the investors of these DeFi projects control a “disproportionately large amount of votes,” such as more than 13% of the voting power for Compound is controlled by the top 10 addresses.

Also, “In yield farming, funds and wealthy investors, aka whales, are maximizing their benefit/share of governance tokens using recursive provisioning of liquidity. This ultimately leads to a concentration of these tokens into the hands of a few players/farmers.”

Although with liquidity mining as with Yearn.Finance, a new dynamic of money distribution is being added; large gatekeepers still have a big influence on the protocol, which could be even more concentrated than the centralized options.

Moreover, all this craziness will inevitably invite “difficult legal questions and regulatory scrutiny,” said Jason Somensatto, senior counsel at 0x Labs. But in the end, he hopes, it will leave a “healthier ecosystem.”

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Author: AnTy

Coinbase Building Relationships with Law Enforcement; CEO Advises to Use Privacy Coins

San Francisco-based cryptocurrency exchange Coinbase is selling its blockchain analytics software to the U.S. Secret Service, a part of the U.S. Department of Homeland Security, as per the official public records. The contract was first spotted by TheBlock.

The U.S. Secret Service is a federal agency that investigates financial crimes.

The contract was awarded by the U.S. Department of Homeland Security (DHS) for four years. Signed on May 9, 2020, the contract, which is worth $183,750, will end on May 11, 2024.

Last month, as we reported, Coinbase was looking to sell its analytics software to two other U.S. government agencies — the DEA and the Internal Revenue Service (IRS). But they haven’t contracted any rewards, and these contracts are now “inactive.”

Well, it Helps Build Relationships with Law Enforcement.

Coinbase Analytics, previously known as Neutrino, an intelligence agency acquired by Coinbase in 2019, has been the center of controversy for its involvement in the Italian spyware firm Hacking Team.

After the latest news of Coinbase selling its software became public, its co-founder and CEO Brian Armstrong took to Twitter to share that the reason behind the acquisition was “we don’t like sharing data with third parties when we can avoid it.”

He also shared how the acquisition didn’t go very well, and since then, they have parted ways with some of the company’s team members to rebuild it in-house that helped the company “recoup costs.”

This software helps Coinbase “build relationships with law enforcement, which is important for the industry, especially if you want more fiat in the world to flow into crypto over time,” Armstrong said.

He echoed the company’s comments about the software compiling just “publicly available data” and “organizing it to make it more useful.”

And if you Want Privacy, use Privacy Coins

According to Coinbase CEO, privacy coins, which he is a fan of, are there “if people want true privacy.”

Coinbase is about maintaining “relationships with both the traditional financial world and the new crypto world.” This bridge is the “only way we’re going to get to a truly crypto-to-crypto economy which can have all sorts of new improvements (including better financial privacy),” said Armstrong.

But the crypto community remains wary of the exchange, and Armstrong’s explanation didn’t help bring their anger down.

However, Jake Chervinsky, General Counsel at Compound Finance, argues that there is no point in wanting financial privacy from public blockchains because analytics services are here to stay.

“Don’t expect the Constitution or the courts to protect your privacy either: the prevailing view is that there’s no right to privacy in bitcoin transactions under the 4th Amendment (for now). The only person responsible for protecting your privacy is you,” he said.

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Author: AnTy

Bitcoin to Roar Higher on PayPal Selling BTC? Time to Buy the Rumor

Yesterday, the news of fintech giant PayPal planning to roll out cryptocurrency buying and selling for Paypal and Venmo got the crypto market excited, and bitcoin went up to $9,800.

Reportedly, the company plans to build in wallet functionality for users to store their crypto in the app as well. The service could be rolled out as soon as in the next quarter.

To source liquidity, Coinbase, which has a relationship with PayPal going back to 2016 and Bitstamp, are the likely contenders.

The 300 million users base of PayPal is the reason behind this excitement as the online payments company would immediately broaden the potential investor base of cryptos. Also, Venmo comes with 50 million users, the largest consumer finance application in the US.

PayPal is also the company that froze WikiLeaks accounts, which then went the Bitcoin route. So, “It only took a decade for this to come full circle,” said developer Jimmy Song.

PayPal supporting Bitcoin no doubt will be “amazing for adoption,” but Jesse Powell, CEO of crypto exchange Kraken, warned, “don’t expect PP to change their policies on account closures. They’re still a centralized choke point, and the government will continue to commandeer the financial system for extrajudicial sanctions. Not your keys.”

On being countered by crypto exchanges being the same thing, Powell advised, “don’t leave more coins on Kraken than you need for your activity,” either.

“If we get a legit government order to close your account and hand over the coins, you can say goodbye to your precious savings. Great thing about crypto is you can self custody,” Powell said.

“Buy the Rumor, Buy the News, Sell the Implementation”

For now, the news of PayPal and Venmo looking into selling crypto-assets directly to their customers is based on some industry sources, and there is no knowing if it will be true.

“Still, the headline itself is more than enough to add fuel to this massive risk-on rally. So in the words of Louis Jordan. … Let the Good Times Roll,” wrote analyst Mati Greenspan in his daily newsletter.

Though a rumor currently, speculation around Facebook launching Libra started similarly in February 2019. And when the social media giant announced the launch in June, “the market roared higher,” said economist and trader Alex Kruger.

He also pointed out how several pieces of news paid handsomely in the past two years in the crypto space. In 2017, ETF rejection, China banning bitcoin, CME futures launch, the likes of CFTC sending subpoena Bitfinex and Tether, and fake news of ETF confirmation was such news. Then in 2019, we saw the market reacting to Libra and Chinese President Xi Jinping supporting blockchain technology.

Instead of ‘Buy the Rumor, Sell the News,” the right thing to do is ‘Buy the News’ as well, and ‘Selling the implementation’ is best, he said.

“Crypto going mainstream! This would be massive and should help prices run over those pesky call sellers,” Kruger said.

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Author: AnTy

Bitcoin (BTC) Price Analysis (February 26)

Key Highlights

  • BTC/USD market has fallen under selling pressure after a line of range movements.
  • One of the vital bearish restraining points at $9,000 has been breached downward.
  • If the BTC/USD market sellers continue to hold-strong below the $9,000, further declines are imminent.

Bitcoin (BTC) Price Analysis

• Major supply zones: $10,000, $10,500, $11,000
• Major demand zones: $8,000, $7,500, $7,000

Today’s BTC/USD market trading sessions have changed into seeing bearish pressures. And, that has led to having a new look of trading ranges marked by a difference of $500 in-betweens.

The BTC/USD market bulls have failed to restrain the bearish forces that resurfaced from February 14 until now. The US dollar continued to exert forces and broke down a strong value at $9,000 line that ought to have been the restraining zone. The price now closely approaches a lower point at $8,500.

Bitcoin (BTC) Technical Indicators Reading

There is still much to look from the BTC/USD downward-moving forces as the two trading SMAs point to the south direction. The 14-day SMA is underneath 50-day SMA. And, they are a bit far from the trading line of the crypto-market. That indicates that the market is still under selling pressure. The stochastic Oscillators have dipped into the oversold region with their hairs conjoined within. They may soon start a consolidation movement around or within the oversold region.

Conclusion

As the vital technical market value at $9,000 mark has breached southward, the BTC/USD market bears are in control of this crypto-economy. The price depression is on a high mote, and if the bears hold on to their positions below the $9,000 value, there’ll be every possibility of witnessing another lower point around the $8,000 demand zone.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Reports of Avast Antivirus Software Selling Data Signals Users To Move To Privacy Browser Brave

Avast, an antivirus software utilized by millions of individuals across the world has been selling very sensitive and personal web browsing data to various global firms, a fresh investigation conducted by PCMag and Motherboard indicate, Decrypt reports.

The investigators relied on documents from Jumpshot, a subsidiary of Avast. The antivirus software used in different personal computers and other gadgets, collects data which is passed on to Jumpshot for repackaging into different products which can be sold to various clients. Google, Microsoft, Home Depot, McKinsey, Yelp, Pepsi and Conde Nast are some of the largest clients of Avast.

The client companies parted with millions of dollars for different types of products that comprise of ‘all clicks feed’ that basically spies on the user behavior, their clicks as well as movement from one website to the other.

Avast says it has over 400 million users who are active every month while Jumpshot has data from over 100 million devices per month. Although Avast says it collects data from willing users, which is then passed on to Jumpshot, majority of the users indicated that they were not privy to Avast selling their browsing data or history to other firms.

Brave as the Solution

Following the revelation, Avast users expressed their fury with different twitter users calling the antivirus a malware while others calling on the immediate removal of the program. Online privacy intrusion is not a new phenomenon as just a few years ago the Cambridge Analytica scandal dominated the headlines. However, there is a solution.

Brave, a crypto-friendly browser helps in protecting the user’s data and does not collect any browsing data. The program also blocks data harvesters or ad trackers meaning that you will not receive unnecessary ads while browsing. The program also allows users to remain anonymous online using Tor by hiding your location.

Recently, Brave was awarded the ‘Privacy-Focused Product of the Year’ during the Golden Kitty Awards for its effort to ensure that a user’s browsing data remains private and anonymous.

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Author: Joseph Kibe

Century and a Half Year Old UK Church Is On Sale for $1.5 Million with Bitcoin Payment Options

Rightmove, a major United Kingdom-based real estate website, is selling a 150-year-old church in the country for around $1.5 million USD (or $1.2 million GBP) and the vendor is accepting Bitcoin (BTC) as a method of payment.

According to the listing on the site, the church, which was converted into a seven-bedroom property, was created back in 1871. Known formerly as the St. Laurence’s Church, the property is based in County Durham.

The owner of the property has agreed to sell it for BTC, but the price needs to be confirmed during the time of the sale. At the moment, the property is worth 182.34 BTC, but the asset is very volatile, so it is pretty much expected that prices will change soon.

Bitcoin And The Real Estate Market

This is only one of several places that can be bought using crypto. Aston Plaza, for instance, provided several other properties. The company was focused on the Bitcoin-oriented real estate market and it paused its activities recently, but still offers some properties for sale.

One of the main issues that people find while trying to sell property with Bitcoin, is that there are not many people getting rich with BTC anymore. The market boomed in 2017 when several investors got rich, but despite the high gains this year, not everybody is using BTC to pay for real estate anymore. Fortunately, this has not stopped some companies from offering Bitcoin payments as an option.

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Author: Gabriel Machado

British Authorities Will Auction $600,000 Worth of Seized Bitcoin from Hacker

The police of the United Kingdom are currently selling $620,000 USD worth of Bitcoin (BTC) in an auction. According to the reports from London Economic, the money was seized from a criminal who was arrested for hacking companies in order to steal data from the clients. The money was obtained illegally, so the police confiscated it.

This is set to be the first time ever in which the authorities of the United Kingdom have sold cryptocurrencies in an auction. Other assets that belonged to the criminals will be auctioned as well. They include a Rolex watch, cars and diamonds.

According to the reports, the auction will occur at the Wilson Auctions house, which is based in Ireland. All of the auction processes will be made online, however. People interested in bidding can start today and the highest bidder will obtain them.

While this is the first time that the British police holds an auction to sell Bitcoin, it is not the first time that Wilson Auctions has. Back in March, the auction house sold around $400,000 USD worth of BTC that were originally seized by the Belgian police during an operation.

Selling Bitcoin in auctions is not a new practice. The first time that this happened was in the United States back in 2014, when Bitcoin was only five years old. The Bitcoin sold then was confiscated from Silk Road, an online black market in which people used crypto to buy drugs and other illegal goods.

Curiously, it was Tim Draper, a famous investor, who bought the Bitcoin at the time. He bought 29,656 BTC in which was probably a pretty profitable transaction considering how much prices went up since then.

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Author: Gabriel Machado

Custom Jewelry Maker Ben Baller Regrets Selling His Bitcoins At $1,000 Per

Ben Baller recently took to Instagram and told his 1.4 Million and said that selling Bitcoin at $1,000 was one of the biggest regrets of his life.

Ben Yang, also well-known as Ben Baller is a musician, actor, and jeweler. He founded Icee Fresh Jewels, which creates extravagant diamond-encrusted jewelry. Baller has attracted many client celebrities, such as Kayne West, Drake, Nas, DJ Jazzy Jeff, Snoop Dogg, Black Eyed Peas, Orlando Brown, Mariah Carey, and Joel Madden. He created a diamond-encrusted belt buckle for Michael Jackson.

Other Celebrities And Bitcoin

The Winklevoss twins are believed to have bought 120,000 bitcoins, or 1 percent of all the coins in circulation. That was in 2012 when Bitcoin cost just $10 each. At Bitcoin’s peak, their holdings were worth $2.34 billion. They’re now worth just $720 million, a loss of $1.62 billion. Having put in $1.2 million for that result, it’s unlikely that they’ll be crying too hard over their lost fortune.

In a resurfaced tweet, Tony Hawk, a legendary skater whose name graces countless video game names, claimed to have been HODLing the crypto asset for years now. Responding to a chart that accentuated the parabolic nature of Bitcoin’s chart, which then resembled a skate ramp, Hawk quipped that he’s been riding BTC for six years.

Grammy award-winning music artist Akon has said that Bitcoin deniers who claim that the asset lacks intrinsic value. He is bullish on cryptocurrency, he revealed, because it’s the people, not the vested interests of national governments that wield control over their value.

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Author: Sritanshu Sinha

Hyperion Technologies Buys Off Vanbex Despite Criminal Investigations Into Its $22 Million ICO

Canadian-based blockchain firm, Vanbex has confirmed selling its IP to Hyperion Technologies, a Canadian crypto brokerage firm, CoinDesk reports.

According to Lisa Cheng, Vanbex co-founder, the buy off means that the products, as well as business models under Vanbex, will continue to operate under Hyperion Technologies.

Hyperion Technologies CEO, Michael Zavet, praised the acquisition saying that it was a strategic business move that will allow his company to have a large market share.

According to the press statement issued, the FUEL token that was given during an ICO which is also subject to criminal investigations will be utilized to clear transaction fees, API integration as well pay for various services offered by both Hyperion Technologies and Vanbex.

After the announcement, some Vanbex investors questioned the move seeking clarification on what will happen to the token from the firm’s CEO Kevin Hobbs. In Vanbex’s Telegram account, some investors sought to know if the deal was legally binding saying that Hyperion Technologies should continue using the FUEL token.

However, CoinDesk reports that Hyperion Technologies, as well as Vanbex, did not respond to their queries on the fate of FUEL token.

As per the press release, Vanbex will now become a blockchain consulting firm and will help Hyperion Technologies to grow in the industry.

Months ago, Vanbex revealed that it was planning to sell some of its assets to sort out the negative publicity that was affecting the company.

The press release indicated that Cheng is poised to become the firm’s new CEO while Hobbs will lead the consulting business.

Vanbex has been under criminal investigation by Canadian police since May 2018 shortly after the Canadian tax agency started a tax probe. The Canadian government agencies have frozen Hobbs and Cheng bank accounts and their properties were confiscated in March. According to government agencies, Vanbex’s founders misused the $22 million that was raised during the ICO and did not deliver the product to the investors. The founders have denied the allegations and are fighting to clear their names in the Canadian courts.

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Author: Joseph Kibe

TRON Price Prediction: Long-term (TRX) Value Forecast – July 13

TRON-Weekly-Update-Shows-The-Rise-In-Their-dApp-Performance-Active-Users-Over-700K-Now

• The bears are in control of the long-term outlook.
• Traders may consider selling after pullbacks with bearish candle reversal pattern as confirmation

TRX/USD Long-term Trend: Bearish

Supply zone: $0.0500, $0.06000, $0.000
Demand zone: $0.01000, $0.00800, $0.00600

Tron long-term outlook is a down-trending market. The bears were back in control within the range after the bullish exhaustion at $0.03579 on 8th July. The break of the resistance of the two EMA confirmed the bears’ takeover as price fell further to $0.03106 within the range on 10th July.

The large bearish candle at $0.03190 broke the lower demand area as price fell to $0.02690 in the demand area on 11th July which is the low of the week.

Price is below the two EMAs crossover with the signal of the stochastic oscillator pointing down at 15% in the oversold region which suggest downward movement in price the days ahead.

$0.02400 in the demand area is a key demand area and may be retested as the bears continue the journey down south

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha