A board displaying stock prices is seen at the Australian Securities Exchange (ASX) in Sydney, Australia, February 9, 2018. REUTERS/David Gray
The Australian Securities Exchange’s blockchain replacement for clearing system CHESS (Clearing House Electronic Subregister System) has been delayed for a fifth time, with tech consultants Accenture engaged to conduct an independent review.
The review is at the behest of new ASX CEO Helen Lofthouse, who succeeded Dominic Stevens on August 1.
Helen Lofthouse, newly appointed ASX CEO. Source: asia.nikkei.com
“More development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application,” an ASX spokesperson said this week.
Five Years, Five Delays
The latest delay comes less than six months after the fourth setback in March was blamed on Digital Asset (DAM), the New York-based firm building the software. At that point the upgrade had already cost a rumoured A$187 million since DAM began development of the project in late 2017.
The CHESS replacement underwent initial testing in December 2021, with the clearing and settlement system at that point set to go live in 2023. ASX has now revised that prediction to late 2024 “at the earliest”, with a more specific date to be determined following Accenture’s review, which is expected to take 12 weeks and will be released publicly.
The review will closely examine the CHESS application software provided by Digital Asset, though the blockchain platform provided by VMware and other infrastructure that underpins the CHESS replacement system will not be included in the review.
Potential Conflict of Interest?
Curiously, Accenture is an investor in Digital Asset, contravening the stated purpose of the review – which is an independent set of eyes. On the other hand, the two parties need to be seen to work together for the review to succeed.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Harmony (ONE)
Harmony ONE is a blockchain platform designed to facilitate the creation and use of decentralised applications (DApps). The network aims to innovate the way decentralised applications work by focusing on random state sharding, which allows creating blocks in seconds. Harmony was expected to introduce cross-shard contracts and a cross-chain infrastructure by the end of 2021.
ONE Price Analysis
At the time of writing, ONE is ranked the 118th cryptocurrency globally and the current price is US$0.02215. Let’s take a look at the chart below for price analysis:
ONE bulls have had to endure a 80% drop since early Q2 until the price set a low and began a range in June.
Currently, the price is aggressively moving toward possible resistance, beginning near $0.02851. Stops above the swing high at $0.03215 might be the target before a downwards retracement. Multiple old lows mark this resistance, which is near the 77.6% retracement level of a recent significant bearish swing.
If the price continues through this high, it could be reaching for an inefficient area near $0.03542. Moving to this level would run bears’ stops above the swing high at the same level. A more substantial rally might reach an old swing high and inefficiently traded area between $0.03725 and $0.03938, which surrounds the yearly open.
If the price stays above the weekly low of $0.02035, this price could support a run above the $0.01965 swing high. Just below, at $0.01844, bulls might eye the consolidation high as more substantial support. This zone contains the 9 and 40 EMAs.
A deeper retracement might retest the accumulation area between $0.01735 and $0.01670. If this level breaks, bears may be targeting an inefficiently traded area on higher timeframes beginning near $0.01450. This area overlaps the 47% extension of a recent significant bearish swing.
2. Avalanche (AVAX)
Avalanche AVAX is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is also low-cost, and green. Any smart contract-enabled application can outperform its competition on Avalanche. AVAX is the native token of Avalanche. It is a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche.
AVAX Price Analysis
At the time of writing, AVAX is ranked the 14th cryptocurrency globally and the current price is US$23.18. Let’s take a look at the chart below for price analysis:
AVAX‘s gains in Q2 ended with an almost 78% retracement as the rest of the altcoin market dropped after May. Bulls stepped in near the 62.8% retracement of Q2’s move, creating a consolidation that ended with the bullish impulse to resistance near $26.30.
With the 9, 18 and 40 EMAs stacked bullish and a bullish higher-timeframe trend, it’s reasonable to anticipate retracement to possible support before further bullish expansion.
Near the 40 EMA, a broad zone from $20.35 to $19.00 could see interest from bulls before further expansion. Bears might capitalise on any sharp moves down in Bitcoin, aiming for possible support near the 75% retracement, at $18.10, and potentially lower to a higher-timeframe support zone between $16.60 and $15.32.
If the higher-timeframe recovery trend resumes and the current resistance near $30.64 breaks, the wicks near $34.14 and the new monthly highs may see profit-taking.
3. VeChain (VET)
VeChain VET is a blockchain-powered supply chain platform. VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem that solves some of the major problems with supply chain management. The platform uses two in-house tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. The idea is to boost the efficiency, traceability, and transparency of supply chains while reducing costs and placing more control in the hands of individual users.
VET Price Analysis
At the time of writing, VET is ranked the 34th cryptocurrency globally and the current price is US$0.02903. Let’s take a look at the chart below for price analysis:
VET‘s 50% move during late March ran into resistance near $0.08450, at the 35% extension of the Q1 swing.
An old high and the 18 EMA have provided support near $0.02383 and may give support again on a retest. This area also has confluence with the 55% and 68.9% retracements of November’s swing.
Just below, near $0.02143, the 50.8% retracement of the current Q1 swing might also mark an area of support.
If the market turns bearish, $0.02032 is unlikely to be revisited but could see interest from bulls during any deeper retracement.
An area near $0.03348, at the 50% extension of the last week swing, could see some profit-taking if bulls break the current resistance near $0.03728. Above, old consolidations near $0.04025 and $0.04472 may also provide some resistance before another round of price discovery.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
To make matters worse, the company has also been forced to lay off 25 percent of its staff after performance failed to match expectations.
Additional Cybersecurity and Consumer Protection Violations
The New York State Department of Financial Services (NYDFS) has issued details of the penalties. Additional to its anti-money-laundering failure, Robinhood is to be penalised for cybersecurity and consumer protection violations.
The platform’s cybersecurity program was found to lack sufficient resources to address risk. Its crypto division had also failed to transition from a manual transaction monitoring system to one more adequate for its user size and transaction volume, in a timely manner.
NYDFS Superintendent Adrienne Harris has spoken publicly about Robinhood’s shortcomings:
As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance – a failure that resulted in significant violations of the department’s anti-money laundering and cybersecurity regulations.
Adrienne Harris, NYDFS Superintendent
Unfortunately for Robinhood, the bad news does not stop there. On August 2, the company released a message from Vlad Tenev, its CEO and co-founder, announcing that the company would be forced to cut almost a quarter of its staff.
Ironically, considering Robinhood’s cybersecurity program was found to be inadequately staffed, overhiring in 2021 in anticipation of growing retail engagement with stock and crypto markets was blamed for the layoffs. Performance failed to match expectations, and Robinhood is bracing for approximately US$30-40 million in cash restructuring charges from employee benefits costs and severance.
One Ordinary Year Follows Another
Last year saw Robinhood also make the news multiple times for all the wrong reasons. In July, the crypto trading app was fined US$70 million for misleading its customers.
Then in October, Robinhood experienced a 78 percent decline in its Q3 crypto revenue. User growth in investment apps had skyrocketed as retail investors piled into stocks and crypto in the wake of the March 2020 Covid-19 financial meltdown. As a result, memecoins were receiving a lot of attention and Robinhood’s exposure to DOGE was blamed for the drop.
In a report from Bloomberg, cybersecurity firm Mandiant has claimed that North Korean citizens are plagiarising online resumes and pretending to be from other countries as they attempt to fraudulently obtain remote, freelance employment at crypto firms.
The warning from Mandiant follows a similar alert issued by the US government in May that North Koreans were seeking to infiltrate tech companies for malicious purposes.
Fake Employees Aim to Aid Regime’s Fundraising
According to Mandiant researchers, North Korean citizens have been copying resumes found on professional networking websites such as LinkedIn and Indeed, claiming to have skills relevant to working on crypto projects.
In one case, a suspected North Korean applicant claimed to have published a whitepaper about the Bibox crypto exchange. In another, the applicant claimed to be a senior software developer at a blockchain consultancy firm.
Speaking to Bloomberg, Mandiant principal analyst Joe Dobson said the North Korean applicants were seeking to gain access that allowed them to influence an organisation’s direction:
It comes down to insider threats; if someone gets hired onto a crypto project and they become a core developer, that allows them to influence things, whether for good or not.
Joe Dobson, principal analyst, Mandiant
Fellow Mandiant analyst Michael Barnhart said a central objective for the North Koreans applying for these jobs was to gather insider information on emerging trends in the crypto market, which could allow the North Korean regime to benefit through illicit fundraising efforts to skirt Western sanctions:
These are North Koreans trying to get hired and get to a place where they can funnel money back to the regime.
Michael Barnhart, principal analyst, Mandiant
Mandiant said the North Korean applicants were mainly located in China and Russia, and presented themselves as being South Korean, Japanese and in some cases American.
North Korea’s Troubled History With Crypto
The North Korean regime has used crypto-based crime as a source of revenue for some time. According to Chainalysis, the regime stole almost US$400 million worth of crypto in 2021 alone – a staggering 2.4 percent of the nation’s total GDP.
In April this year, the regime-backed Lazarus hacking group was believed to have been behind the US$625 million hack of the Ronin Network.
In a related story, around the same time former Ethereum developer Virgil Griffith was sentenced to 63 months in prison and fined US$100,000 by a US Federal Court judge for illegally travelling to North Korea in 2019 to teach citizens how they could use crypto to evade US sanctions.
Bitcoin permabull Michael Saylor has stepped down from his role as chief executive at MicroStrategy, a business intelligence firm he founded 23 years ago, to focus on his work in Bitcoin.
He joins Jack Dorsey, another tech billionaire who, since leaving Twitter, has shifted focus almost exclusively to Bitcoin:
Hmm….billionaire CEOs stepping down to work exclusively on #Bitcoin. Bullish much… 🔥
In MicroStrategy’s Q2 results presentation, the company announced that Saylor would step down from his role as CEO but would assume a new role as executive chairman. The presentation made reference to the company’s bold treasury strategy, and identified the key role that Saylor would play going forward:
MicroStrategy became the first publicly traded company to adopt bitcoin, a revolutionary financial technology, as its primary treasury reserve asset. As Executive Chairman, Mr Saylor will focus primarily on innovation and long-term corporate strategy, while continuing to provide oversight of the company’s bitcoin acquisition strategy as head of the Board’s Investments Committee.
MicroStrategy presentation
Saylor commented that splitting the roles of chairman and CEO would enable the company to better pursue its two corporate strategies, namely acquiring and holding bitcoin, and growing its enterprise analytics software business:
As Executive Chairman I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while [current president] Phong [Le] will be empowered as CEO to manage overall corporate operations.
Michael Saylor, MicroStrategy, executive chairman
Company Continues to Make Positive Strides
Given that 2022 has been a bear market of “historic proportions”, it was inevitable that much of the focus would be on MicroStrategy’s macro strategy – to buy and hold bitcoin.
It’s little surprise then that one of the more notable elements of the Q2 results was a US$917.8 digital asset impairment charge, up significantly since US$170.1 million in Q1.
Since first purchasing bitcoin in August 2020, the company has acquired a total of 129,699 BTC at an average price of US$30,664 per coin, and has continued at an unrelenting pace, recently buying up another 421 BTC at just over US$20,000 apiece.
Naturally, mainstream financial media have been quick to criticise the strategy, particularly in relation to its leveraged position. Chief financial officer Andrew Kang, however, confirmed that 85,000 BTC were unpledged or unencumbered. “We have more than sufficient collateral for any price volatility,” he said.
Despite the company’s position being underwater, Saylor remains undeterred in his commitment, saying: “MicroStrategy is in a category of one; we are the largest corporate holder of bitcoin in the world. Our strategy is buy and hold for the long term, and that’s it.”
For those paying attention, this shouldn’t be a surprise. He made it clear in his interview with Laura Shin last year:
NFT market activity remains strong according to a Nansen report which has found that US$2.7 billion was spent on NFT minting in the first half of 2022 alone. This figure is the product of activity from more than 1 million unique wallet addresses:
1/ Market participants spent 963,227 $ETH (approximately $2.7b) on minting NFTs in the first half of 2022.
So what did the NFT projects do with the money they raised? 🤑
Industry-leading blockchain data and analytics platform Nansen found that most of these transactions occurred through OpenSea. Its report highlights a shift in crypto users’ priorities yet again, with NFT creators now choosing to retain and reinvest funds into the ecosystem, indicating they have become more mature and conscientious.
This latest report was built off the back of the past report, utilising similar parameters: projects that had primary sales revenue exceeding 20 ETH between January 1 and June 30, 2022:
GM anons. Here's the NFTs market roundup. Shoutout to @nansen_ai and @hildobby_ for the data below.
NFT weekly volumes in USD are still very low (down ~97% from the top) but seem to be bottoming out recently. pic.twitter.com/lbpG9ZMwLN
A total of 28,986 NFT collections were minted and sold on Ethereum during the first six months of 2022. Of these, Pixelmon-Generation 1, Genesis Box, World of Women Galaxy, Moonbirds and VeeFriends Series 2 accounted for 8.4 percent of overall minting.
To the best of Nansen’s knowledge, half (50.7 percent) of the funds raised by these creators stayed with NFT projects, while 45.7 percent circulated to non-entity wallets. It should be noted that Nansen does not have the capacity to track transactions to other counterparties.
Overall, in comparison to the previous report’s results, improvements in the utilisation and productivity of the NFT minting sector are clearly visible.
Nansen research analyst Louisa Chloe wrapped up the data:
Reflecting on the on-chain results of this study, we maintain our conclusion that the minting sector of the NFT market remains healthy with the rise in average mints per unique wallet address … on-chain evidence of NFT collections reinvesting primary sales revenue into NFT demonstrates that builders and creators within this marketplace are looking at the long-term impact of their projects and making decisions that will support that growth.
Louisa Choe, Nansen
Recent NFT Developments
Last month saw two exciting new announcements for the NFT sector within just two days. Firstly, OpenSea expressed its excitement about a “multi-chain future”, thanks to the introduction of the Solana launchpad. The platform will reportedly guide users through the process of pre-mint activity, and will permit list minting and post-mint and secondary sales. This means creators will be able to mint new projects from scratch with ease.
Meanwhile, Australia has its first NFT gallery. Situated at Baringa, near Caloundra on Queensland’s Sunshine Coast, the gallery aims to create a hub for digital artists and tech enthusiasts within the popular holiday region.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Filecoin (FIL)
Filecoin FIL is a decentralised storage system that aims to “store humanity’s most important information”. The project was first described back in 2014 as an incentive layer for the Interplanetary File System (IPFS), a peer-to-peer storage network. Filecoin is an open protocol backed by a blockchain that records commitments made by the network’s participants, with transactions using FIL, the blockchain’s native currency. The blockchain is based on both proof-of-replication and proof-of-space-time.
FIL Price Analysis
At the time of writing, FIL is ranked the 32nd cryptocurrency globally and the current price is US$8.64. Let’s take a look at the chart below for price analysis:
FIL has dropped 80% from its Q2 highs. It found support near $5.20 before starting a consolidation range. This level, near the lows, could continue to provide support. A year-long consolidation from 2019 to 2020 pivoted around this level many times. It’s also near the middle of the last down candle before 2020’s massive rally. A retest of this level would run bulls’ stops under swing lows formed in late June and early July.
The price is testing a closer area of possible support near $8.00. Bulls rejected bears many times in early July at this level. It’s also in the upper part of July’s swing low candle. The closest resistance is likely near $8.95. This area, up to $9.30, shows inefficient trading on the daily chart. It also contains the 9 and 18 EMAs.
If the price breaks through this level, it may aim for bears’ stops above $9.62. Even if it doesn’t reach these stops, the area between $9.90 and $10.25 could provide a bearish setup. Here, bears rejected bulls near the bottom of an area of inefficient trading on the weekly chart.
If the market turns more bullish, a rally beginning in this range may be aiming for the new monthly highs, near $10.39. This level is near the bottom of an area of inefficient trading on the daily chart.
2. Ethereum Classic (ETC)
Ethereum Classic ETC is a hard fork of Ethereum that launched in July 2016. Its main function is as a smart contract network, with the ability to host and support decentralised applications (DApps). Its native token is ETC. Since its launch, Ethereum Classic has sought to differentiate itself from Ethereum, with the two networks’ technical roadmaps diverging further with time. Ethereum Classic set out to preserve the integrity of the existing Ethereum blockchain after a major hacking event led to the theft of 3.6 million ETH.
ETC Price Analysis
At the time of writing, ETC is ranked the 19th cryptocurrency globally and the current price is US$36.94. Let’s take a look at the chart below for price analysis:
During July, ETC broke several swing highs that could be the signal for a new bullish trend. Last week’s break of the most recent swing low could suggest some downside in the short term. It formed probable resistance near $40.32 and may target the swing low and possible support near $33.90.
The swing low and possible support near $30.21 could be the second bearish target if the move down continues. The relatively equal lows near $29.00 and possible support underneath near $27.45 could provide more substantial support.
The last swing high near $43.52 gives a near-term target if the bullish continuation continues. However, resistance beginning around $47.80 could cap this move. A break of this resistance might continue to probable resistance near $53.03 and reach above the cluster of relatively equal highs near $58.49.
3. Chainlink (LINK)
The Chainlink Network LINK is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors, and more. The company focuses on ensuring that decentralised participation is guaranteed for all node operators and users looking to contribute to the network. Chainlink allows blockchains to securely interact with external data feeds, events, and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.
LINK Price Analysis
At the time of writing, LINK is ranked the 24th cryptocurrency globally and the current price is US$7.51. Let’s take a look at the chart below for price analysis:
LINK‘s early Q2 trend retraced near $5.70 into the consolidation that began the impulse before bouncing to $8.42. This consolidation could provide support again, although bears would first have to push the price through possible support near $7.90.
The market’s structure may be shifting bearish, with $7.10 likely to provide some resistance if this is the case. A sustained bearish move could reach the swing low near $6.70 before finding support near $6.27.
However, the bullish higher-timeframe trend may prevail, with relatively equal highs near $8.37 potentially giving an attractive target to lure the price over the monthly open. If so, the price could reach for the midpoint of the Q1 wick near $9.18.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Former China-based crypto exchange Huobi Global is free to offer its services Down Under after successfully registering as a digital currency exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC):
BIG NEWS!👏
🇦🇺 We are proud to announce that #Huobi Group has registered as a digital currency #exchange provider with the #Australian Transaction Reports and Analysis Centre (@AUSTRAC), a steady and solid step into the market.
After also obtaining licences in New Zealand and the United Arab Emirates in June, Huobi is now eyeing a move into the US market. An American subsidiary, HBIT, was established last month and Huobi has already received a Money Services Business licence with the intention to launch full exchange services in the US down the line.
Following China’s most recent crypto crackdown in late 2021, Huobi was forced to relocate to Gibraltar. The company has since opened offices in Japan and South Korea, though it has struggled to obtain a foothold in Thailand, having to shut down after failing to comply with Thai Securities and Exchange Commission regulations.
Last month, Huobi was given permission to operate in Dubai. The Hong Kong Securities and Futures Commission also granted the exchange a trading licence two weeks ago.
Huobi Starts With OTC Services in Australia
In Australia, Huobi will initially offer fiat to cryptocurrency trading. Lily Zhang, the company’s chief financial officer, stated that the local office would concentrate on OTC services:
We have always made security and compliance our highest priorities, as we believe that only under this principle can we grow alongside the industry to provide professional and secure services to our users.
Lily Zhang, CFO, Huobi Global
Since it was founded in 2013, Huobi has been delivering digital asset services to more than a million customers worldwide. That number is set to expand exponentially should the US open its doors.
Nomad has suffered an exploit resulting in the loss of up to US$190 million worth of crypto assets. Nearly the entire fund has been drained from the bridge, leaving only US$651.54 left in the wallet:
1/ Nomad just got drained for over $150M in one of the most chaotic hacks that Web3 has ever seen. How exactly did this happen, and what was the root cause? Allow me to take you behind the scenes 👇 pic.twitter.com/Y7Q3fZ7ezm
Nomad, a token bridge that allows transfers of tokens between the Avalanche, Ethereum, Evmos, Milkomeda C1 and Moonbeam blockchains, is still investigating the incident. Some of the funds lost in the attack were taken by so-called “white hat friends” who removed the funds with the intention of safeguarding them.
The first transaction came at 9:32 pm UTC when someone managed to remove 100 Wrapped Bitcoin tokens, worth about US$2.3 million, with holdings of Wrapped Ether and the USDC stablecoin also subsequently affected.
It was later confirmed by security firm PeckShield that as much as US$190 million worth of cryptocurrencies were taken. Blockchain data suggests that transactions may have been constructed to make it appear that multiple actors were involved:
Nomad bridge getting actively hacked. WETH and WBTC being taken out in million-dollar increments. Withdraw all funds if you can, still $126m remaining in the contract that's likely at risk pic.twitter.com/oDo7oT1glW
In January this year, cross-chain protocol ‘Multichain’ reported an attack in which hackers managed to exploit various vulnerabilities in the protocol, stealing over US$1 million. When the Multichain team announced the hack, it prompted attackers to steal more funds, raising the total amount lost to roughly US$3 million.
NFTiff – the newest collaboration transforming CryptoPunks into jewellery – marks high-end brand Tiffany and Co’s latest partnership, with the new project renewing interest in CryptoPunks and driving a 248 percent spike in sales volume:
We’re taking NFTs to the next level. Exclusive to CryptoPunks holders, NFTiff transforms your NFT into a bespoke pendant handcrafted by Tiffany & Co. artisans. You’ll also receive an additional NFT version of the pendant. Learn more: https://t.co/FJwCAxw8TN#NFTiff#TiffanyAndCopic.twitter.com/pyKlWejHv4
CryptoPunk Owners Can Buy Up to Three Diamond Necklaces at $50k Apiece
The partnership will enable CryptoPunk owners to purchase up to three diamond-encrusted necklaces for 30 ETH (approximately US$50,000) each from August 5. Each Punk pendant will be set in 18-carat gold (yellow or rose) with 87 different attributes and 159 colours available for the custom designs.
The project was first promoted in April by Tiffany & Co vice president Alexandre Arnault, who revealed his own rose gold and enamel CryptoPunk to the delight of onlookers. The Punk featured sapphire and Mozambique ruby-coloured glasses, and yellow diamond earrings:
Based on the social media reaction, the community appears genuinely excited about the partnership following details of its launch, regardless of the hefty price tags.
The announcement of NFTiff appears to have rekindled interest in CryptoPunks. A 1,400 ETH (US$2.3 million) trade volume was recorded in the wake of the news, representing a 248 percent increase on the previous day, according to OpenSea data. The value of the broader CryptoPunks collection had also risen by 5 percent in the previous 24 hours at the time of writing.
CryptoPunks’ Recent Successes
CryptoPunks had been gaining a small amount of collector interest prior to the Tiffany and Co collaboration. CryptoPunk #4464 notably reversed NFT market trends in mid-July by selling for a massive 2,500 ETH (approximately US$2.6 million). CryptoSlam identified this as the single-largest NFT sale from the previous 30 days, despite typical winter market lows.
CryptoPunks also proved they make good loan collateral as MetaStreet, a liquidity routing and scaling solution for the NFT collateralisation platform, allowed a loan of US$8 million to be collateralised by 101 CryptoPunks.
