Value DeFi Exploited Yet Again This Week? TVL Collapses by 80% Days After $10M Exploit

Value DeFi Exploited Yet Again This Week? TVL Collapses by 80% Days After $10M Exploit

$829 million have been wiped out from the project’s TVL, and withdrawals are halted, while Value DeFi reports “one single large withdrawal from one user caused the balance of the vault to be off.”

Audited decentralized finance project Value DeFi saw the total value locked (TVL) in it crashing by 80% in a single day.

On May 4th, the project had almost $1 billion in TVL, which went from nearly $865 million on Friday to the current $180 million, as per Defi Llama.

The project, which was initially launched on the Ethereum mainnet in August 2020, had recently expanded to Binance Smart Chain (BSC). The project offers features like automated market maker (AMM) and decentralized exchange (DEX) aggregator (vSwap).

According to the BSC project, Value DeFi is handling just over 9k transactions and nearly 3.5k addresses interacting with the project.

There is currently $10.18 million in TVL in the protocol, while less than 24 hours back, $839M was reported.

On Friday, the project announced on Twitter that they are taking additional steps to protect its users and, as a first step, implemented a new 12hr timelock on all critical functions for vFarm.

This improved security update came after earlier in the week. Its vStake profit-sharing pool for vBSWAP was exploited resulted in a loss of $10 million user deposits in that pool due to losing a line of code by “human error.”

“All other pools and funds are SAFU,” it reported in the post mortem of the incident.

At the time, the VALUE team said part of the Reserve Fund would be spent to buy the insurance and further proposed two approaches to help affected users.

All vBSWAP within the Reserve Fund (2802.75 vBSWAP) and 205,659 BUSD from the ValueDeFi deployer will be used to compensate all users at the pool. The remaining 4540 vBSWAP will be minted and either used to compensate all affected users immediately or in two parts.

But it seems like just days after the exploit; something else is going on with the project as its TVL sees such a crash. Trader @depression2019 noted that VALUE seems to be hacked and its pools drained for well over $100 million that could make it the “biggest hack in DeFi history.”

“For those wondering why they can’t withdraw from the WBNB vSafe, your funds are safe; we only disabled deposits and withdraws after noticing one single large withdrawal from one user caused the balance of the vault to be off. There is something wrong with the Alpaca strategy, and we are currently working with Certik and the Alpaca team to resolve the problem. Until then, we will continue working on solutions for all affected users during today’s exploit,” reads the pinned message on the project’s Telegram while the community members berate the project for rug pulling them several times.

This project lost $7 million late last year after they bragged about their “flash loan protection.”

Unlike the last time, the price of the VALUE token fell over 21% this time and is currently trading at $3.86, down 91.7% from its all-time high of $46.90 in Sept. 2020, as per CoinGecko.

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Author: AnTy

One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory

Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.

Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.

After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.

While anything can happen in the market, we are far from topping out based on past performance.

As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).

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As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.

Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.

One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.

Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.

As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.

Bitcoin’s market capitalization is actually just 10X away from flipping gold.

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When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 3.60% Ethereum / USD ETHUSD $ 2,523.06
$90.833.60%
Volume 32.2 b Change $90.83 Open $2,523.06 Circulating 115.48 m Market Cap 291.37 b
3 h European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain 3 h Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move 4 h Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)

With ‘Ethereum-Killers’ racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 6.43% Solana / USD SOLUSD $ 27.85
$1.796.43%
Volume 221.45 m Change $1.79 Open $27.85 Circulating 270.02 m Market Cap 7.52 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale 3 d BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’
BNB 0.93% Binance Coin / USD BNBUSD $ 544.29
$5.060.93%
Volume 4.59 b Change $5.06 Open $544.29 Circulating 154.53 m Market Cap 84.11 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News 1 d Binance Is Listing A Tokenized Stock of Coinbase, CZ says ‘Rooting for $COIN’
ADA 1.61% Cardano / USD ADAUSD $ 1.48
$0.021.61%
Volume 5.34 b Change $0.02 Open $1.48 Circulating 31.95 b Market Cap 47.39 b
6 h Cardano Releases Plutus Smart Contract Language in Preparation for Alonzo Hard Fork 6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 6 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.

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Author: AnTy

Alameda’s Beef with Reef Finance, A Case of “Trust” and “Misunderstanding”

This week, besides the on-chain war over who is responsible for the movement of 18,969 BTC on the Gemini crypto exchange, the market saw another drama unfold when Alameda Research, a trading firm by Sam Bankman-Fried, the CEO of popular crypto exchange FTX, said they do not affiliate with or endorse REEF.

This resulted in the prices of the REEF falling about 32% to $0.0384 from its ATH on the day at $0.057460, as per CoinGecko. The token is currently trading above $0.040.

According to Adam Cochran of Cinneamhain Ventures, “There isn’t some sneaky backroom plot here.” There was just some “misunderstanding” between both parties. “The irony here is that crypto may be trustless, but investing in crypto and managing OTC trades is all about trust and reputation,” Cochran said.

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REEF is the governance token of Reef Finance, a Polkadot-powered liquidity aggregator and yield engine which is listed on Binance and Huobi.

On Monday, the Reef team shared what exactly went down between them and Alameda, with whom they engaged in September regarding raising funds to bootstrap the platform.

While at the time Alameda passed on the opportunity to invest, this month, their investment arm reached Reef for a strategic investment of $80 million. In response, $20 million worth of tokens were sent to market-maker, wrote the Reef team.

“As previously stated, Alameda secured investment in Reef Finance token for $20M at a 20% discount to create various long-term synergies with Serum and Solana,” led by Alameda’s VC team member Brian Lee, reads the official account of what went down from Reef’s side.

As per Alameda, the $20 million tranche “represented a settlement and not the culmination of a $20m trade.”

These $20 million worth of tokens were then offloaded to the Binance exchange by Alameda. “We could not understand why Alameda, our long-term strategic investor would offload their tokens immediately after purchase to Binance,” said the team.

But Alameda says, “it is not true that Alameda immediately sold all of the REEF,” although it is not relevant for the terms of the deal. According to Cochran,

“As a market making trade desk, they spread their tokens out to trade and maximize them. It’s impossible to tell if “they were dumping them” just by an onchain transaction.”

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So, the cross-chain DeFi operating system decided not to go forward with the additional $60 million because of their “doubts” around Alameda’s interest. The team said Alameda then “threatened” to delist the Reef token from FTX; the exchange later deleted the tweet regarding the same.

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Reef claims “additional threats and legal ramifications” were also thrown around, which were later deleted.

Reportedly, the deal was based on “trust,” and no legal contract for the transaction was offered by the Alameda team, which the latter says is commonplace in crypto, and they have done so before as well.

Also, “All agreements on terms are “contracts” something doesn’t need to be a written legal contract to be a “contract.”

Denko Mancheski, CEO at Reef Finance, is currently promoting #BoycottFTX.

“This action hurt retail investors and should be a cautionary tale akin to the Wall Street Bets GameStop saga. The actions of one centralized entity such as Alameda and FTX should not and can not influence the future of a community-driven project like Reef,” said the team adding that it will launch its next products on the Reef chain and seek less centralized alternatives to work with.

Meanwhile, Bankman-Fried said because at times one team has “way more reputation to lose than another…that creates an asymmetry in PR fights.”

“Definitely fucked that one up,” he added.

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Author: AnTy

Bitcoin Sell-Off Over? Bullishness Continues to Permeate the Market

This week, the price of Bitcoin has been on a rollercoaster ride. We started with a dump right after hitting a new all-time high last Sunday at about $58,350.

Following the drop, we made several attempts to go back up but only to end up lower and yesterday, we went down further down to $44k.

As of writing, BTC is seeing some relief trading around $46,800 but that’s to be seen if the upward momentum will continue or take us only lower. Trader TheCryptoDog said,

“At this point my assumption is we don’t go lower from here. That can change at the drop of a hat (we’ll see what happens to macro on Monday), but looking at this now I would be more surprised to see BTC sink.”

One caveat is March, the month which in the last six out of seven times have been a red one with an average drawdown of over 14%.

Unlike BTC, Q1 is good for Ethereum which five out of six times ended with significant greens, already it is up 102% YTD despite the losses. This week, it went down to $1,350 during this recent sell-off, even lower than the previous ATH of $1,420.

Bitcoin’s lack of direction, right now, is turning out good for altcoins, leading to a 15% to 30% uptrend. The total market cap has also recovered to $1.455 trillion, adding more than $100 billion in the past 24 hours.

All This Bullishness

While the price action in the market isn’t’ looking bullish, the developments in the market certainly suggest so.

For starters, the first Bitcoin ETF debuted on the TSX last week, Purpose Bitcoin ETF (BTCC) continues to see demand and now holds more than 10,000 BTC.

If we look at the premium on the Bitcoin product of the world’s largest digital asset manager, Grayscale which went negative this week, but is expected to be just short-term noise, could actually turn out to be bullish.

Started in late Sept. 2013, “Outside of 2013-2014 this has only occurred 4 times. With fees of 2% and a current discount of 2.5%, BTC can be bought inside the trust cheaper than at market,” noted one analyst.

“Like the last 2 times, does the bull continue?” he added.

Bitcoin miners are also sending bullish signals as they stop their selling and start accumulating BTC. For the first time in two weeks, Miners Position change has turned positive.

The Spent Output Profit Ratio (SOPR) indicator, which is the price sold / price paid, is another one that has gone back to level 1, indicating the bottom on the sell-off.

Not to mention, money-making exchange Coinbase has announced its public listing and got more than $100 billion valuation. This would make the company CEO, Brian Armstrong who previously worked at Airbnb to get rich and join the world’s 500 richest people.

Even more bullish is the news that the House passed its $1.9 trillion coronavirus relief package early on Saturday, which will now head to the Senate. Democrats are rushing to approve more aid before unemployment programs expire on March 14.

This time, payments of $1,400 will be made to most individuals, along with the same amount for each dependent. $1,200 stimulus check from last time invested in Bitcoin at the time is currently worth $8,500 and surpassed $10,000 last week.

And just like the last stimulus package, this could propel the market higher.

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Author: AnTy

Bitcoin to Move Out of Consolidation Phase; Indicator Signals Downward Trend Is Losing Strength

  • Bitcoin is back to aiming for $40,000, as the digital currency moves upwards this week, but still remains range-bound between $30k and $40k.

According to Bloomberg, the GT Vera Convergence Divergence Indicator, which detects trend fluctuations, is signaling that the bear trend of the cryptocurrency may now be coming to an end.

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While Bitcoin is ranging, altcoins and DeFi tokens are taking this as an opportunity to pump hard. The total cryptocurrency market cap has also flown past the $1 trillion mark to $1.15 trillion.

Ether hit a new ATH above $1,765, but it’s DeFi tokens that are the real stars of the show. In 2020 so far, the notable gainers include COVER (8,251%), BAO (4,160%), ALPHA (1,134%), BADGER (1,036%), ROOK (533%), AAVE (466%), and CRV (416%).

However, all these gains can soon move into Bitcoin and take the leading crypto above $42,000 to new highs.

Institutions have also been piling into Bitcoin, with Grayscale buying 643.44 BTC this week. Bitcoin also continues to be moved out of the exchanges. This on-chain analyst, Willy Woo, speculates that could be the result of Michael Saylor holding a conference for companies, which was attended by more than 1,000 executives, to help them make a shift to Bitcoin just like MicroStrategy.

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Moreover, as we reported, PayPal that started supporting cryptocurrencies back in October, saw an exceptional response from its users.

“The volume of crypto traded on our platform greatly exceeded our projections,” PayPal CEO Dan Schulman said on the company’s fourth-quarter earnings call. “We’re excited to build on this early success by allowing customers to use their crypto balance as a funding source. … We hope to launch our first international market in the next several months.”

While PayPal is also investing in its crypto business unit, several crypto funds are being launched as well. Not to mention the retail investors from the traditional markets also see the appeal of the crypto market. So much so, much like CT, now Jim Cramer is suggesting Gamestop take the Bitcoin route. Cramer tweeted,

“Bitcoin! Genius!!! Gamestop needs to be a 5000 store bitcoin palace!!! I cannot believe how brilliant that would be… They can sell stock buy a ton of bitcoin, and just hold on. Call it Bitstop. Or Gamecoin. Wow!”

Moreover, one of the reasons for Bitcoin getting stuck in a consolidation phase, according to Ed Moya, senior market analyst at Oanda Corp, could also be a strengthening dollar ever since the start of the year.

But with the Senate passing the motion to progress Biden’s $1.9 trillion stimulus bill, USD isn’t expected to keep up with this strength for long. This, combined with the money to flow into the market, is further expected to push the prices of assets higher.

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Author: AnTy

Bitcoin Is Weathering A Lot of FUD This Week; What’s the Market Saying?

This week, Bitcoin is fighting several ‘fear, uncertainty, and doubt’ all at the same time.

The week started on a red note, as the price of the digital asset declined by 28.5%, and the market got a buy the dip opportunity. On the downside, $30k is of importance, whose breach could trigger “could trigger a much sharper correction.”

However, it didn’t take long for BTC to recover, and we were back at $40,000 in the middle of the week.

Now, into the weekend, Bitcoin is holding around $37,000 BTC -0.43% Bitcoin / USD BTCUSD $ 36,130.40
-$155.36-0.43%
Volume 57.14 b Change -$155.36 Open $36,130.40 Circulating 18.6 m Market Cap 672.11 b
7 h Kraken Halts XRP Trading; DOT Replaces the Digital Asset as 4th Largest Crypto Asset 8 h Bitcoin Is Weathering A Lot of FUD This Week; What’s the Market Saying? 1 d Bitcoin Donations Made to Those Involved in Capitol Riot a Month Prior: Chainalysis Report
, taking a breather and giving altcoins the chance to rally.

Nothing Stopping it from Going to zero

While the broad crypto market is enjoying an uptrend, Bitcoin is weathering a lot of skepticism and the same old FUD.

First, the UK financial watchdog issued its stapled investment warning that customers investing in cryptocurrencies should be ready to lose everything.

”Cryptocurrencies are not sustainable,” chimed in Peter Branner, the CIO at APG Asset Management. “Bitcoin is not backed by a central bank. It only has a value if people gives it value.”

Even UBS Global Wealth Management is taking inspiration from the Financial Conduct Authority (FCA) issuing a warning of losing all your money.

“There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment,” authors including Michael Bolliger, the chief investment officer for global emerging markets, said in a report Thursday in response to rising client interest.

While in the short-term, institutional adoption, limited supply, and market momentum can prop up the prices, regulatory intervention is a risk in the long term, the strategists wrote, citing the UK banning crypto derivatives. UBS Wealth said,

“Investors in cryptocurrencies must therefore limit the size of their investments to an amount they can afford to lose.”

Renewed Interest

When this wasn’t enough, the market itself found some FUD to keep things interesting. Mt. Gox saga renewed with CoinLab making a deal so that creditors can claim 90% of BTC owed to the exchange.

But while there is only 0.23 BTC available to every Bitcoin the creditors lay claim to, the users have been waiting for 7 years with nothing so far. Though it “should be bearish news short term,” the rehabilitation plan deadline has been postponed several times.

Amidst this, whether Tether is 100% backed remains a constant presence in the market, which only got heavy with Deltec Bank announcing that they hold a large position in Bitcoin for their clients, which Tether says has nothing to do with them.

“The amount of USDT printed by Tether is dwarfed by the amount of USD printed by the state,” argues Balaji S. Srinivasan, and that even if USDT fails, bitcoin has seen several 80% to 90% drawdowns, and there are other stablecoins available with long term people here to “advance freedom, privacy, and decentralization (and) that doesn’t change.”

But while the FUD created some uncertainty, there has been just as any good news. Grayscale is back to buying Bitcoin with an increasing premium for starters — presenting $23k as “a strong floor.”

Goldman Sachs is now also looking to invest in digital assets. The report came after Anchorage became the first crypto firm to win a charter from the Office of the Comptroller of the Currency, whose big official called for regulators to be ready for DeFi — self-driving banks.

Not to mention the big stimulus coming, USD weakness, Fed Chairman informing that they have no plans to increase rates or stop asset-buying anytime soon, the macro environment is also in favor of BTC.

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Author: AnTy

Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021

This week, while other cryptocurrencies are still struggling to reverse their correction, DeFi tokens swiftly made a recovery, with SNX token hitting a new ATH above $16.50. For now, the 23rd largest cryptocurrency is trading around $14.80 SNX 2.17% Synthetix / USD SNXUSD $ 14.84
$0.322.17%
Volume 409.21 m Change $0.32 Open $14.84 Circulating 110.52 m Market Cap 1.64 b
4 h Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

Derivatives liquidity protocol, Synthetix is the blue-chip DeFi project with a market cap of $1.68 billion. Amidst this uptrend, Synthetix released its roadmap for 2021, painting a picture of a

“future where everyone in the world is connected to one another by handheld devices that allow them to hold, trade, and transfer every imaginable asset.”

The roadmap mentions Optimistic Ethereum, Synthetix V3, Synthetic Futures, Asset expansion, dApp Upgrades, and optionsDAO as its high-level priorities.

A complete re-architecture of the Synthetix contracts will be done for the first time since last 2018. Synthetix V3 will involve a new SNX staking mechanism so that SNX is always freely transferable, introducing eSNX, tokenized debt, continuous staking rewards, continuous vesting, and Keep3r implementation, among other features.

The transition to layer two scaling solution Optimistic Ethereum which will lower the gas costs and provide higher throughput, is one of the most exciting things to come. The combination of this with Synthetic Futures will allow projects to compete with centralized futures markets and provide a minimum of 10x leverage. Also, Synthtix will expand into equities.

In the options, sDAO will provide upfront funding based on certain conditions, and oDAO will enable several improvements over the existing binary options implementation.

⁩”As an investor in SNX, it’s great to see the aggressive roadmap here,” said one of the partners of crypto fund The Spartan Group. “This is how $SNX is getting to $10B.”

2021 will also involve a focus on acquisitions and expansion for Synthetix as the scale of the project grows.

“This year we finally take on CeFi, then we come for TradFi…” concluded Kain Warwick, the founder of Synthetix.

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Author: AnTy

Sushi’s Whirlwind Week Sees the Launch of Onsen; The ‘Future of Finance in 2021’

SUSHI reverses the 60% pullback while Onsen replaces the Menu of the Week. Anonymous dev 0xMaki shares future plans for the project.

DeFi project Sushi had a whirlwind journey and the same was reflected in its price action this week. On Wednesday, from the high of about $2.76, SUSHI prices crashed hard nearly 60% to the $1.16 level. But the next day Sushi was back above $2.6.

This crash was market-wide, although SUSHI reacted hard and fast both in terms of losses and then reversing them into gains. The news of SEC suing Ripple and its two executives, former and current CEO, over the alleged sale of an unregistered security offering was what pushed the cryptocurrency market down.

The red sea of Wednesday is already a field of green on Christmas. Just last week, SUSHI had hit $3.35, last seen in early September when the token was making its way down from the high of $12.47 on Sept. 1st.

As of writing, SUSHI/USD has been trading at $2.73.

With these greens came the official launch of Onsen, a new liquidity mining incentivization program, that is replacing the Menu of the Week.

200 allocation points have been set aside for the initial launch of Onsen which will require LPs to stake their SLP tokens in MasterChef to take advantage of the SUSHI rewards.

MKR, OMG, ESD, ANT, PNK, HEGIC, CREAM, PICKLE, DPI, CVP, YETI, ARCH, INJ, BOR, DUSD, DFD, BADGER, zLOT, INDEX, SWAG, JRT, DOUGH, SEEN, UWL, ICHI, ROPE, oBTC, mbBASED, DSD, nTRUMP, UST, FNX, BCP, YPIE, DEFI+L, BASE, DDX, MPH, FRONT, UOP, TRU, ALPHA, AKRO, and CRETH2 — is an exhaustive list of token that will be taking part in Onsen.

The Future Plans

DEX SushiSwap’s project lead, 0xMaki, recently shared his plans for the project that currently has more than $1 billion in TVL (total value locked).

The anonymous developer shared that SushiSwap users will soon get to borrow or lend and long or short an asset with the launch of BentoBox, which he said will be available in 2021. Developers will also be able to build on top of the protocol, he said.

“I think we are going to see the future of finance in 2021,” said 0xMaki in his recent interview with UniWhales.

BentoBox was recently revealed when YFI’s Andre Cronje announced the merge of SushiSwap and YearnFinance. In this partnership, 0xMaki said they both share the same goals and that both are “big proponents of decentralization.”

Cronje is “very good” who has a lot of good ideas, said 0xMaki adding, “pushing the idea to the finish line or maintenance is not his forte and that’s where we can come in and pick up the ball for him.”

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Author: AnTy

Is The SEC Lawsuit a Blessing in Disguise for Ripple & XRP Investors?

The Trump administration’s parting shot pushes XRP down 46% this week but small XRP addresses continue being created at a fast pace while trading is suspended on three exchanges.

A day after Ripple CEO Brad Garlingouse intimated the crypto community about the upcoming lawsuit against XRP over the sale of unregistered securities, the US Securities and Exchange Commission (SEC) did just that.

SEC has charged Ripple and its two executives, co-founder Chris Larsen and CEO Garlinghouse for raising more than $1.3 billion through “an unregistered, ongoing digital asset securities offering.”

Not just this, Ripple has allegedly distributed billions of XRP in exchange for non-cash consideration. Additionally, both Larsen and Garlinghouse “effected personal unregistered sales of XRP” totaling at $600 million.

“We allege that Ripple and its executives failed over a period of years to satisfy these core investor protection provisions, and as a result, investors lacked information to which they were entitled,” said Marc P. Berger, Deputy Director of the SEC’s Enforcement Division.

The SEC’s complaint is filed in the federal district court in Manhattan and charges the defendants with violating the Securities Act.

Immediate Effect

The legal case in itself will take years to come to a conclusion but in the immediate future, the price of the digital asset took a beating. This week, XRP has lost 46% of its value, currently trading at $0.354. XRP actually hit a new low against BTC which continues to surge higher and higher.

“Bag holders want to see .304 hold on a weekly close to establish topside HTF support,” said trader Mr. Anderson. Another trader, CryptoYoda noted,

“Tightening stops. worried about potential of XRP imploding if support doesn’t hold and the resulting repercussions in the overall markets. might be a non-event, just making sure I don’t stand on the beach when the tsunami hits.”

Since the news broke, while the number of large tier addresses is shrinking, small XRP addresses being created haven’t skipped a beat in its uptrend, as per crypto data provider Santiment.

And with this, the digital asset dropped one step and Tether retook the place of the third-largest digital asset by market cap.

In the meantime, 133,152,655 XRP (48,850,963 USD) has been transferred from the Ripple founder Jed McCaleb’s Settlement account to his wallet, noted Whale Alert.

Additionally, crypto exchange OSL has suspended all XRP trading services on its platform, effective immediately. The exchange is well known in Asia for its OTC services but isn’t much for retail exchange trading.

Two smaller crypto trading platforms, Beaxy and CrossTower have also halted trading for XRP already.

Is it Security?

After avoiding this level of intervention for years, SEC Commissioner Jay Clayton seems to be ticking off one last thing from his to-do list before his departure from the office.

“For XRP hodlers, this could be a blessing in disguise,” because the question of whether XRP is a security has been dangling over the early investors, wrote Mati Greenspan in his daily newsletter Quantum Economics.

But that is if it is not deemed security because if it is XRP will be basically “useless,” making it difficult for anyone to use it for settling transactions. Jake Chervinksy, General Counsel at Compound Finance said,

“Alleging violations through present-day is a kill shot. Charging individual executives is remarkable. This is the SEC playing hardball.”

However, Messari founder Ryan Selkis, a known XRP antagonist believes the argument of XRP being security is “silly.” However much “unethically marketed and distributed” XRP was, “that still doesn’t mean it’s a security,” he wrote.

According to Selkis, USG is going to lose because they are outclassed on legal as Ripple has a lot of money to put into action, and USD should lose because the Howey test is broken, SEC’s restrictions on non-accredited investors is outdated and un-American, and because “it’s incumbent upon industry to self-police.”

Not to mention, regulators get to fine and tax Ripple, so no gain in killing a “domestic golden goose,” he said.

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Author: AnTy

Tether’s Exchange Supply & $900B US Stimulus Deal Offers Fuel to Bitcoin Bulls

After the monster weekly candle last week while being on track to beat 2Q17 to become the second-best quarter after 4Q17, today the market is in red but the bulls might not back down yet.

Last week was a wild one for Bitcoin.

The digital asset capped one of the biggest weeks with a monster candle that pushed us from about $18,950 to above $24,000.

There have been only a handful of times when Bitcoin BTC -4.74% Bitcoin / USD BTCUSD $ 22 930,0532
-1,086.88 -4.74
Volume 47.02 b Change -1,086.88 Open $22 930,0532 Circulating 18.58 m Market Cap 425.98 b
1 h Crypto Exchange EXMO Hacked; BTC, ETH, XRP, ZEC, USDT, and ETC Stolen By Attacker
recorded more gains than what we posted last week.

This quarter, which is still 10 days from its end, has recorded the third-largest quarterly gains of 121% beaten by 125.32% in Q2 of 2017 and of course the 10.13% gains in Q4 of the same year, as per crypto data provider Skew.

The world’s largest cryptocurrency made yet another new high early Monday, as it jumped past $24,300 following Tesla CEO Elon Musk’s Bitcoin meme and inquiry about “larger transactions” required to convert $100 billion of USD in Tesla’s balance sheet to BTC.

According to Hxro Labs, “With a break of 24k, it looks like the next such cluster of objectives lay in wait up around the $26,750-$26,650 area.”

But the weakness in the price of the digital asset seen last night and today has some feeling a bit cautious.

And, today the price of the Bitcoin went down to about $21,885 level and is currently trading around $22,800 in red.

Interestingly, amidst the ongoing bullish price action, the number of Bitcoin holders with 1,000 or more BTC continues its upward momentum. Unlike these multi-millionaires, addresses with under 1,000 BTC have been selling off their stash since Wednesday, the day BTC price breached the all-time high of $20k only to continue to break past several levels.

Meanwhile, the bullish sign for the Bitcoin bulls is the percentage of Tether supply on cryptocurrency exchange hitting a 4-month low on the weekend, as per Santiment.

At the same time, Congress reached a deal on the $900 billion coronavirus relief package. Congressional leaders announced the agreement on the bill on Sunday which will fund the government through Sept. 30.

“At long last, we have the bipartisan breakthrough the country has needed,” Senate Majority Leader Mitch McConnell, R-Ky., said on the Senate floor Sunday.

However, House Speaker Nancy Pelosi called the plan inadequate and that they would soon push for more spending after President-elect Joe Biden takes office a month later, on Jan. 20.

This relief plan includes direct payments of $600 to adults and $600 per child. These payments could make their way to Bitcoin, like the last time. The $1,200 check from last time is currently worth about $4,000 in Bitcoin.

The Democrats said it would put $240 billion into Paycheck Protection Program small business loans, and direct another $20 billion to small business grants and $15 billion to live event venues.

With all the money printing going on at “unprecedented levels,” Bitcoin price could see more action. According to Mike Belshe, the CEO of California-based cryptocurrency firm BitGo, BTC is “immune” to this money printing which is because the digital asset “got a level of scarcity that we really don’t have in any other market,” not even in gold, he said.

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Author: AnTy