Ethereum Longs Pushing Strong with Many Factors Backing Them But Shorts are also Strong

While altcoins are surging, the second-largest cryptocurrency has been relatively silent, not as much as bitcoin but pretty subdued still.

But things might change for Ether as well as the traders bet on an uptrend.

ETHUSD longs on Bitfinex have reached yet another all-time high. These longs have been surging for more than two years, since March 2018. Earlier this year, they went parabolic. In the past five months, they spiked more than 200%.

The notional value of ETH longs was $308 million in mid-March, which has now risen to $444 million.

In 2020, ETHUSD shorts also jumped but at a higher percentage than the longs at 393% in the past six months. But unlike longs, they are still far away from its all-time high in December 2018, as per TradingView.

For now, Ether is in the green barely while trading at $241. In the past seven days, it has spiked 7% and 89% YTD. Experts are expecting Ether to outperform Bitcoin in the near future.

Also, Ether’s implied volatility is moving up, and total open interest on futures is now near its peak.

Analyst Pentoshi also notes, “We are seeing the largest bullish divergence ever in regards to daily active addresses and price in Eths history. With DeFi, + 2.0, I can’t help but think the next year is going to be wild.”

Potential Ether Drivers

The seven-day moving average of the number of active Ether addresses has peaked to 405,014 — the highest level in two years, May 2018.

Active addresses are the unique addresses that are active as a sender or receiver on the network. While this week, this number is slightly down from last week, it is still up 115% from Jan. 30 low of 180,750.

This increased activity could be the result of Ethereum-based Decentralized Finance (DeFi) platforms and stablecoins, especially the daily USDT transaction on the network, which has increased by more than 400% this year.

Already, close to a record, 3.1 million ETH are locked in various DeFi projects. Moreover, $60 million worth of BTC moved to Ethereum last month, and Wrapped Bitcoin is responsible for about 75% of this growth.

Amidst this, the Dapp report shows Ethereum users doubled compared to the first quarter, and DeFi application Compound was the one responsible for this, which pushed the volume over $10 million in Q2 2020.

This heightened demand is expected by many to fuel Ethereum’s bull run.

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Author: AnTy

Litecoin Mimblewimble Testnet on Track to September Launch

While sharing the June progress, Grin developer David Burkett who is working on Mimblewimble implementation to the Litecoin network, said the testnet launch is coming by the end of Q3, which is in September 2020.

In June, Burkett wrote very minimal implementation supporting MW transactions as the existing LTC mempool logic ended up being quite a bit more complex than the developer initially thought. As such, it will be revisited after the testnet launch.

Additionally, code was written to support mining extension blocks; however, they need a lot more testing, and a few “edge cases are still left to be handled.”

Talking about his concerns on the way they were storing mimblewimble block data in a separate database, Burkett shared with the community that “It was originally designed this way to be a clean separation from the existing code, to facilitate merging future bitcoin commits.”

Separated databases, however, are a “bad idea,” he said, because then they don’t have the ability to make atomic updates. This leads to problems, some that can be exploitable by remote attackers.

As such, Burkett has decided to take more time to modify the code for serializing and deserializing MW blocks & transactions to disk. But he didn’t need to make any changes to the existing block storage format thanks to the groundwork laid down as part of the Segwit enhancement. He said,

“As a result, upgraded nodes can successfully save extension block data to disk the same place they’ve always saved blocks, without having to introduce an additional database.”

However, the side effect of the changes is that it was relatively straightforward to add support for sharing mimblewimble transactions over the p2p network — the first step toward July’s goal of handling MW data.

Still, the big plan for the summer remains the same, and Initial Block Download will be happening in July, followed by Chain reorg logic in August. This means activation logic and testnet launch is coming in September.

With the MW upgrade, the idea was to enhance the scalability and privacy of the Litecoin network, much better than the likes of Zcash and Monero, said Litecoin realtor Charlie Lee, in an interview last month.

“It does privacy and scarcity very well compared to other implementations,” he had said at that time.

The development part is making good progress, and Litecoin has also been recording an increase in wallets.

But this 7th largest cryptocurrency by market cap is not doing well price-wise.

Currently trading at $41.42, the digital asset is down 2.57% YTD, the third biggest loser among the top twenty cryptocurrencies. LTC is also down 89% from its all-time high of $373.

According to analyst Mati Greenspan, “the slow and dangerous decline resembles a slippery slope.”

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Author: AnTy

Cardano Founder Fires Shot at Ethereum; “I’m Ready to Fight & We’re Gonna Win This”

A version of Daedalus for the Shelley testnet is released while 56% of the addresses holding ADA are in profit.

It was in last month that Cardano prices started showing signs of life after a long time. The price of the cryptocurrency jumped more than 50% to climb to nearly $0.90 in early June.

Since then, the market has slowed down and ADA is currently trading at $0.080 but still up 139% YTD and at the tenth spot by market cap.

However, the cryptocurrency is still down a whopping 94% from its all-time high of $1.33.

These gains in the past month have been on the back of the announcement of much-anticipated Shelley’s launch date.

As the Shelley hard ford approaches, Cardano continues to show signs of strength. At its current prices, 56% of the addresses holding ADA are “In The Money” which means if those addresses were to sell their position today, they would make a profit.

Also, 53% of ADA holders have been holding for more than a year, as per IntoTheBlock.

First version of Daedalus for Shelley testnet

This week, IOHK released a version of Daedalus for the Shelley testnet which is designed exclusively for stake pool operator testing. It will eventually be the wallet that ADA holders will use on the mainnet and it’s just one of the many releases that are to come.

The latest news came just two weeks after the Shelley testament was opened to all stake pool operators.

The Haskell-optimized wallet comes only with basic functionality that allows stake operators to create, delete, and restore Shelley wallets. One can also transact on the network.

For now, Daedalus is only available on IOHK’s GitHub repository as the company is looking for feedback for the following version of Daedalus that will be released during the Shelley rollout with new features like delegating stake and checking rewards.

All that we’ve been working on are coming together

A day after the Daedalus wallet release, Charles Hoskinson, founder of Cardano and CEO of IOHK talked about the upcoming Cardano conference in July where they will be sharing the roadmap and what’s to come.

“I think people are gonna be very pleasantly surprised about our progress… we have a few surprise announcements that we’re kind of holding in our back pocket that we’re super excited about,” Hoskinson said in the interview with Messari.

They also have papers coming out soon where they have solved the proof of stake problem to get parity with proof of work. Also, they can make the protocol faster and layer the protocol with different capabilities like sharding if wanna go down that road “but it’s not even necessary.”

Hoskinson who is also the co-founder of Ethereum, which he doesn’t like to be referred to just acknowledged, fired shots at the second-largest network saying the “biggest lie ever told” in crypto space is that “Ethereum has achieved the network effect consensus.”

“They say we’re the dominant platform which is like saying you’re the biggest fish in a very tiny pond next to the ocean,” Hoskinson said.

According to him, everyone is still fighting and no one has won. To win, one has to solve real problems and think in terms of utility and experiences and what is actually going to help your user, he said. Adding,

“I’m ready to fight and I think we’re gonna win this one, all the things we’ve been working on for five years are just coming together all at once.”

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Author: AnTy

Grayscale is Not Buying Record Bitcoin, It’s Just Ripping Off Retail investors

Ever since the coronavirus pandemic began, bitcoin has been on a rollercoaster ride. While the BTC price has been trying to push higher, in May, miner rewards were cut into half to 6.25 BTC.

After miner inflow was reduced by 50%, there have been reports of Grayscale’s GBTC Bitcoin Trust buying the digital currency at record pace.

Currently, GBTC shares are trading at a premium of 20% to Bitcoin with each share cost $10.76 where each share represents 0.00096070 BTC which means one BTC is worth $11,200 here while Bitcoin is trading on spot exchanges just under $9,400.

Grayscale’s Ethereum product ETHE is trading even at a higher premium of 750%, 46% above ETH’s ATH.

A FINRA-approved investment vehicle, Grayscale held more than 300,000 BTC prior to the March 12 crash. Recently, it was revealed, the crypto hedge fund Three Arrows Capital has become the qualified investor to hold more than 6% of Grayscale Bitcoin Trust (GBTC) shares.

The fund has amassed more than 21 million GBTC shares, worth nearly $259 million or just over 20,230 BTC.

Retail Investors getting Ripped Off

Since halving, Grayscale has been gobbling up 50% more BTC than has been created. The news excited the crypto market given that bitcoin supply in the market has already cut down and with Grayscale consuming all the Bitcoin that is being created in the market and more, this should drive the prices up.

But that’s not really the case!

According to Ryan Watkins of Messari Crypto, Grayscale actually bought way less, just 31% of all new bitcoin mined since the halving.

This is because of the in-kind purchases. “~80% of the money it reportedly pulls in do not make up for any buy pressure,” because they were ‘in-kind’ purchases. Basically, these institutional investors can hand out their own BTC in order to ‘buy’ the GBTC shares.

GBTC shares are available to accredited investors and are created using cash or cryptocurrency with a year lock-up period, to be reduced to 6-month, which means initial investors can sell their shares to the public on secondary markets after the period is over. Watkins explained,

“When there are a lot of buyers and few sellers, investors in the secondary market can push the price of the shares well above the value of the underlying cryptocurrencies.”

“Since no new shares are being created, no new cryptocurrency is actually going into the trust, creating a premium to the underlying. This can create a significant arbitrage opportunity for accredited investors who can create new shares in the primary market.”

21shares, previously known as Amun, also shared in its report that buying bitcoin at these premiums makes sense if one is an institutional investor and creates shares at NAV but retail investors are simply getting “ripped off.”

Given these high premiums on products, it is unlikely that savvy or institutional investors are buying them. It’s the retail investors that are buying GBTC shares to get exposure to Bitcoin through their brokerage accounts or 401Ks.

It’s the “institutional and accredited investors that create GBTC are able to resell at large markups” and of course, Grayscale is benefitting from retail overpaying, said Lanre Ige of 21shares.

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Author: AnTy

Bitmain Co-founders Now Fighting Over the Bitcoin Mining Machines’ Shipment

After the halving last month, the bitcoin hash rate is recovering while China’s rainy season is helping with the cost.

On one side, miners are ramping up their efforts with Hut 8 looking to raise $5.6 million to upgrade its BlockBox miners and the second-largest bitcoin mining pool partnering with BlockFi which will provide it capital.

On the other side, the management drama at Bitmain is halting a Shenzhen subsidiary of the company from shipping bitcoin miners to its clients, as per BlockBeats. The subsidiary is owned by Beijing-based Bitmain which is responsible for manufacturing and packaging its bitcoin miners for delivery and pick-ups.

Just at the beginning of this month, Bitmain announced the release of Antminer T19, a cheaper bitcoin mining machine.

The reports of halting the machine deliveries came after company co-founder Micree Zhan Ketuan, who was once exiled, returned to the company in early June.

His rival Jihan Wu is now taking legal action against Zhan’s orders as per the statement issued on June 9.

Zhan, who was ousted by Wu last October earlier this month, sent out a letter to Bitmain employees to announce his return to the company. He called for staffers to return to the office and talked about leading the company to an IPO as soon as the company’s market cap pushes to over $50 billion in the next three to five years.

According to BlockBeats’ video footage, Zhan forcefully entered the Beijing office of Bitmain with his group of private guards.

Bitmain is already facing stiff competition from MicroBT and these latest developments could further reduce the mining giant’s already waning dominance in the bitcoin mining market.

Meanwhile, Bitcoin miners dominance in China, based on hashrate distribution, has fallen from 75.6% in September 2019 to 65.08% by the end of April, as per Cambridge University’s Centre for Alternative Finance.

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Author: AnTy

Bitcoin’s Correlation with Stocks Still Elevated, Most Likely to Increase Further

Bitcoin is up over 31% YTD while trading around $9,650 but its correlation with the stock markets is still elevated.

The correlation first climbed to new highs during the March sell-off. But while the US stocks and bitcoin are still correlated, the percentage of movement is not.

Bitcoin’s correlation to the S&P 500 is currently reading just under 0.5. Despite being an extremely high figure for the bitcoin market, “it still does not indicate a particularly significant relationship,” wrote analyst Mati Greenspan in his Quantum Economics newsletter.

For starters, it is nowhere near the level it was at the start of the crisis. The Bitcoin market has also seen increasing involvement from institutional players as seen in the volume and the introduction of new structured products hedge funds can use to access the market.

As such, “the more big money is involved, the more managers of large portfolios will see it within the context of the traditional markets and use it as a tool to hedge their investments, which seems most likely to only increase the correlation from here,” he said.

Moreover, when it comes to ROI which unlike price is adjusted by risk the asset is exposed to, Bitcoin is leading among stocks and gold. The higher the ROI the better and Bitcoin wins it with higher returns at all times compared to the others.

Over the last month bitcoin markets have been behaving irregularly. In May, macro investor Paul Tudor Jones jumped in Bitcoin right after the digital currency went through its third halving. The same month Goldman Sachs had a client call where they said bitcoin is not an asset class and they do not recommend it as a suitable investment to its clients.

Despite all this, bitcoin did its own thing and ended the month at $10,000, up from the opening price of $8,800.

“The assessment that bitcoin price remains uncorrelated, even with splashy industry news is mostly accurate,” said Michael Moro, CEO of Genesis Capital.

Interestingly, the month of May also saw the largest amount of US bankruptcy filings since 2009, the Great Recession.

About 27 companies reported at least $50 million in liabilities sought court protection from creditors. Year-to-date is another highest since 2009 with 98 bankruptcies filed by companies.

The turmoil in the global markets and economies may be motivating more people to explore digital currencies, according to Catherine Coley, CEO of Binance.US.

“As we are all stuck at home, more stimulus packages are being sent out through USD while digital currencies, like BTC, untied to the traditional banking system, appear more attractive as Americans look for additional ways to build their financial health and diversify their assets,” she said.

In the coming week, the US Federal Reserve’s two-day meeting is a big event for markets with more details on stimulus and a possible new program expected.

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

Bitcoin S2F Model Prints the First “Red” Dot Marking the Start of the Bull Market

In 2020 so far, Bitcoin is up 30% while trading at $9,500, starting June with 0.76% losses.

In May, BTC went through ups and downs and made several attempts to take over the $10k level. But overall it remained in the range of $8,500 and $10,000 which continued to get tighter.

After 10.58% of losses in the first quarter of 2020, in the second quarter so far, we are up 48.56%.

As per the Relative Strength Indicator, bitcoin is currently neutral at a reading of 55, the same as market segments with the Crypto Fear and Greed Index having a reading of 50.

However, the good thing is the popular stock to flow model has printed the first red dot, indicating we are at the beginning of a bull run.

The updated S2F chart which has been expected since the third block reward halving last month points to the starting of the next 18-months bitcoin price cycle with its top at $100,000 by the end of 2021, as analyst PlanB has previously pointed out.

However, along the way, bitcoin will go though some pullbacks as occurred in the previous cycles as well.

As we reported, there are a number of factors working in favor of a new bull market. The institutional interest is growing, with Grayscale consuming more bitcoin than what is being created while supply is already entering the market at half the pace it was before halving.

Bitcoin investors are also preferring to holding than looking to sell their BTC in the near future.

No $1 million for Bitcoin

While Bitcoin is making its way to a new bull market, John McAfee, the eccentric billionaire who predicted in 2018 that bitcoin would reach $1 million by the end of 2020 or he will “eat my dick on national television”, dismissed it this weekend.

“What idiot could believe such nonsense?” said the 74-year-old about his prediction which is “the most crippled crypto-tech.”

He called out people to “wake up” on twitter adding “If Bitcoin ever hit $1 mil, it’s market cap would be greater than the GDP of the entire North American Continent.”

“Whale Fucking is a thousand times more likely to make its way onto the Olympics Stage,” than Bitcoin skyrocketing 10,426% from its current level, stated McAfee.

As a matter of fact, the first bitcoin rally from late 2012 to 2014 was 10,000%. However, the percentage of gains has been dropping after that with every bull run.

McAfee actually long maintained his $1 million prediction for bitcoin only to say in January this year that it was “a ruse to onboard new users” adding, “It’s an ancient technology. All know it.”

This time he had this to say, “Are you one of the persons who did not see the absurd humor in it?”

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Author: AnTy

Chainlink’s Gas Consumption Keeping ‘Rock Solid’ at 1% Despite the Jump in Feeds & Nodes

The 12th largest cryptocurrency by market cap is currently seeing gains of 3.53% while trading at $4.24, with the rest of the crypto market.

It is one of the top cryptos that is up over 120% in 2020 so far in comparison to Bitcoin’s 30% return.

These gains also coincide with the slight uptick in its daily active addresses. These addresses have been trending up since the past year, as per the Santiment data.

Source: Santiment

The LINK holders also don’t have any intention of selling their tokens in the near future. The top 1% of LINK holders has actually grown by about 25% in the past year.

The holders are withdrawing from exchanges. In December 2017, it saw its biggest transfer to exchanges from 8.6 million to 125 million LINK.

Since a year back, it has been on a constant decline, currently around 70 million. They are either hoarding them or using them in Chainlink smart contracts for off-chain data which has grown by 1.3% YTD.

Chainlink is a decentralized network that provides price feed data to other blockchain networks. It basically provides a solution to the “oracle problem” through off-chain data.

This Ethereum-based platform has been consuming 1% of all gas since mid-March. The percentage of block space gas being consumed by a protocol shows just how much stress an application is putting on Ethereum’s bandwidth.

At Chainlink’s mainnet launch, when it was just with a single price feed (ETH/USD) and three nodes, it consumed 0.33% of Ethereum’s daily available bandwidth. Over 2019, it rose to 3.5% as the price feed spiked to two including BTC/USD with each having 21 oracle nodes.

During Black Thursday, this peaked at 6% when ETH fees skyrocketed only to now remain “rock solid” at 1% despite there now being over 30 price feeds. This could be because of “Chainlink networks moving to a deviation based schedule,” shared ChainLinkGod and CryptoSponge.

In order to create a sustainable oracle network, rewards paid to Chainlink nodes need to be higher than the costs spent by them in delivering the external data on-chain.

Now, because the Ethereum gas fees have been higher than normal lately, the profitability of these nodes has been declining.

Source: ChainLinkGod

Each price feed pays a different amount of LINK rewards to nodes depending on the security of a particular network.

And out of all the price feeds, ETH/USD and BTC/USD are the highest paying ones, which are in high demand by DeFi applications and contain higher levels of decentralization than most networks.

Initially, 33.33% of the total daily payments were paid to the Chainlink core team’s node which has since dropped to just 1.34%.

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Author: AnTy

DigiByte Skyrockets Up 285% In Last 30 Days, ‘No Surprise DGB Outperforming, It’s Undervalued’

The top performer among the top cryptocurrencies, DigiByte (DGB) is enjoying 13.75% gains today while trading at $0.0247. This level was last seen in September 2018.

This jump in the altcoin’s price has it gaining entry into the top 30 cryptos by a market cap of $317 million.

A modification of Bitcoin protocol, this cryptocurrency is up over 813% since the March sell-off during which DGB saw a decline of 66%. In March 2020, DGB made a fresh low from the 2018 peak and since then has been on an uptrend.

Currently, up 345% YTD, DGB is still down 83% from its all-time high of $0.141.

Comparing this ongoing rally to the 2017 and 2018 bull rally that added $1.6 billion to DGB’s market cap, DigiByte co-founder Jared Tate said, this one is different with a bigger network and ecosystem.

“DigiByte is not being manipulated, no P&D. We’re seeing sustainable organic growth. No large stake by a single entity, but a true distribution of wealth,” said Rudy Bouwman, co-founder and of DGB and Vice Chairman of DigiByte Foundation.

“What is happening now, should not come as a surprise. We all know DGB is undervalued and therefore now outperforming,” he added.

These gains have been achieved despite the cryptocurrency not being listed on top exchanges like Binance, Coinbase, Gemini, and others.

In the past, Tate had accused Binance and Coinbase of foul play and asking for money to list their cryptocurrency, which DGB couldn’t provide because of having zero funds as a decentralized project.

He explained in great detail about his dealing with Binance and not getting listed on the leading spot exchange.

He yet again most recently took to Twitter to share the “blatant deceit in the new & improved ranking of “mineable” coins” on CoinMarketCap, a crypto tracker site acquired by Binance in a $400 million deal for which the exchange has been receiving a lot of flak from the crypto community.

Founded in 2013, the altcoin is still available on over 100 exchanges such as OKEx, Bitfinex, Bittrex, Huobi, Upbit, and others. In the past 24 hours, more than $13 million worth of DGB exchanged hands, as per Messari and ranks 20th on the basis of this “real” volume.

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Author: AnTy

Crypto Market Finally Out of “Extreme Fear,” Altcoin Market Cap Pushing With No Sign of Stopping

In the past week, the overall market added $25 billion while in the past month, the market recovery saw the inflow of $36 billion.

Market sentiments are making a shift with the Crypto Fear and Greed Index finally out of the “Extreme Fear” after seven long weeks.

Crypto Fear and Greed Index
Source: Crypto Fear and Greed Index

The world’s leading cryptocurrency made a strong comeback as it jumped over $7,700. However, this didn’t spell more gains for altcoins.

Altcoins that have been enjoying gains while BTC was trading flat, slowed down after a hike in the price of bitcoin. Today, the market is either red or barely in the green.

“As is quite often the case, alts turn green for several days, bullish alt sentiment comes back only for them to get slammed down again by a significant BTC move,” said TraderXO.

Losers and Winners

When it comes to YTD gains, altcoins are leading with Bitcoin recording only +5% returns. Among the top cryptocurrencies, BSV (103%), Tezos (101%), Link (92%), Dash (92%), and Ethereum (50%) are leading the pack.

In the mid-cap cryptos, Kyber Network (261%), Hedera Hashgraph (153%), ICON (141%), Digibyte (139%), DigixDAO (118%), Steem (75%), and Enjin Coin (73%) are market movers.

Amidst this, out of nowhere in a typical altcoin fashion, HIVE jumped 500% in a week. Today, it climbed to its all-time high at $0.995 only to dump over 25%.

Earlier this month, Steem witnesses implemented a soft fork to freeze eight accounts collectively holding 17.6 million STEEM and were Hive network supporters. Angered by the acquisition by the Tron Foundation, a portion of the Steem community underwent a contentious split to build a new chain called Hive.

Now when it comes to the percentage since their ATH, Zcash is the biggest loser, down over 99% the same as Pundi X and Verge.

Other top cryptos doing extremely bad are Lisk (97.2%), IOTA (96.9%), Cardano (96.6%), NEO (95.7%), Dash (95.3%), Tron (95.2%), XRP (94.9%), XLM (93.3%), Monero (89.6%), Litecoin (88.2%), EOS (88%), VeChainThor (84%), and BAT (82%).

Bitcoin meanwhile is down only 61.5% since its all-time high. Also, since 2017 high, it made attempts to reach closer to this level.

Will altcoins return to form?

While bitcoin had three rallies in the past, each time making a new high, altcoins had experienced only one rally in 2017, as such, it is to be seen if they will make new ATH or end up being a failure.

“I can’t help but wonder if some of these 2017 bubble large caps simply never return to form,” said trader Jonny Moe.

An analyst with the pseudonym Pentoshi took to twitter to share why he is reducing his exposure to altcoins in favor of bitcoin.

He explained that with halving coming, the direction the BTC moves in, spike, or dump, altcoins will follow. With new CME contracts starting and altcoins following the same patterns while remaining coordinated, it’s best to stay away.

Also, altcoin pumps when bitcoin is near the .618 fibs are typically short-lived, he added.

“Being over-exposed to alts at this inflection point, seems risky,” said the analyst. He is cautioning to wait and manage the risk before jumping back in altcoins.

But not everyone is bearish on altcoins…

“Many of these Altcoin pumps won’t make sense. They will just keep going, with no explanation whatsoever. Don’t question it. Embrace the pump in its full glory,” said Bitlord.

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Author: AnTy