Institutional investors have sold at least 236,000 bitcoin since the UST/LUNA collapse in early May, which roughly translates to over US$5.3 billion.
It All Started With Terra
According to Vetle Lunde, an analyst from Arcane Research, institutions have offloaded 236,237 BTC since May 10, most of it forced selling triggered by the Terraform Labs collapse, which caused contagion all over the crypto industry:
236,237 BTC.
That’s the amount of known selling of bitcoin since May 10th by large institutions. Most of the selling is related to forced selling, and some is not. pic.twitter.com/wNLjgvvFmn
However, Lunde says it’s likely things are worse than what he’s reporting and the dollar value could be way higher than US$5.3 billion:
Most of the selling of the 236,237 BTC mentioned in this thread has been forced selling, and it’s likely been worse than what this thread covers with underwater retail and institutions capitulating.
Forced Selling Infects Bitcoin Miners
At the same time, Lunde reports, Tesla sold 75 percent of its bitcoin holdings – around 29,060 BTC at an average price of US$23,209. Moreover, the forced selling spread to Bitcoin miners who reportedly had to dump all of their BTC holdings generated in May, an effective doubling of the usual 20 percent to 40 percent:
BTC public miner sales. Source: Arcade Research
Shortly after the CPI (Consumer Price Index) sparked June’s broader market downturn, 3AC’s massive liquidation threw more fire into a market that was already burning. The infamous hedge fund now owes crypto lenders over US$3.5 billion.
Lunde ended his Twitter thread stating that the past two months’ capitulations, chapter 11 bankruptcies and July’s relief rally indicate contagion is getting resolved. “Less uncertain times ahead,” he concluded.
Steve Vallas, the CEO of Blockchain Australia, has announced via a LinkedIn post that he will step down from his position, leaving the company without an immediate replacement.
Vallas will officially depart Blockchain Australia on July 29, after originally declaring he would step down as CEO in a LinkedIn announcement posted three months ago.
In both his resignation posts, Vallas recognised his board (past and present), making special mentions of those who had played key roles during his time at Blockchain Australia. He also shared some kind words regarding the mission of his company and the industry:
The future of the blockchain industry is extraordinarily bright and it’s been a privilege to play a part in this development.
Steve Vallas, original resignation announcement
Vallas’s initial resignation post stated that the “formal search for a new CEO [would] begin shortly”. However, Blockchain Australia has yet to find a suitable replacement for Vallas, leaving the position vacant on his exit.
Blockchain Australia was not Vallas’s only duty. He remains deputy chair of the National Blockchain Roadmap Steering Committee, as well as vice chair of the ASEAN (the Association of South-East Asian Nations) Blockchain Consortium. He also holds a position on the ASIC Digital Finance Advisory Panel, advising on financial and regulatory technology matters.
Blockchain Australia Operations
Blockchain Australia has taken multiple influential steps toward improving the sector over the past two years. In February 2021, the organisation terminated the membership of Gold Coast-based cryptocurrency Qoin. The reasoning behind this was outlined in a Notice of Member Disciplinary Resolution, which stated that Qoin had been targeting retail merchants across Australia.
Following this, Blockchain Australia began seeking “safe harbour” for crypto businesses as regulatory uncertainty ran rampant. The organisation petitioned for clarity regarding the regulatory framework for cryptocurrencies in Australia and, alongside industry-related partners, it recommended a set of regulations to the federal government with hopes of addressing these issues.
Yuga Labs, creators of the Bored Ape Yacht Club NFT collection and ApeCoin, are facing a class-action lawsuit brought by international law firm Scott+Scott for allegedly falsely promoting Bored Ape NFTs and ApeCoin as securities with guaranteed returns, but which actually plummeted in value over the past three months.
Case Hinges on Whether NFTs Are Deemed Securities
The proposed class-action lawsuit claims that Yuga Labs used celebrity promoters and endorsements to “inflate the price” of BAYC NFTs and the ApeCoin token. The suit also alleges that Yuga Labs promoted growth prospects and potential massive returns on investments to “unsuspecting investors”. The suit claims:
After selling off millions of dollars of fraudulently promoted NFTs, Yuga Labs launched the ApeCoin to further fleece investors.
Scott+Scott class-action lawsuit
It adds: “Once it was revealed that the touted growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology), retail investors were left with tokens that had lost over 87 percent [of their value] from the inflated price [peak] on April 28, 2022.”
While no official complaint has been filed in a US federal court, Scott+Scott is currently seeking impacted investors who suffered losses on BAYC NFTs and ApeCoin between April and June this year.
The key to the success of this suit is whether or not the court decides if NFTs are securities, in which case Yuga Labs would have failed to make the necessary disclosure and registration obligations that come with offering securities. Thus far, the Securities and Exchange Commission (SEC) has refrained from labelling any NFT as a security as it would likely bring the broader art market under its purview.
In the following month, BAYC committed what could be described as a “minting fail” where over US$157 million in ETH was burned as part of the launch of its “Otherside” metaverse.
According to the latest update of this saga from Business Insider, Howells had two identical hard drives stored in a drawer in 2013. One was blank and the other contained some 8000 BTC, worth US$552 million at one stage.
He intended to throw the blank one away, but mistakenly disposed of the one containing bitcoin, which ended up at the local municipal dump. Despite his best efforts, he has repeatedly been denied access, with local authorities arguing it would be too expensive and detrimental to the environment.
James Howells. Source: Business Insider
A ‘Needle in a Haystack’
After various failed attempts, Howells has now devised a new approach, backed by US$11 million in venture capital, which he hopes to present to the council in the coming weeks.
In short, he intends to sift through 110,000 tons of garbage through a combination of human sorters, robot dogs, and an artificial intelligence-powered machine trained to look for hard drives on a conveyor belt.
There are apparently two versions of his plan, depending on what council approves. The more costly version would take three years and cost US$11 million, whereas a scaled-down version would cost US$6 million over 18 months.
Howells has assembled a team of specialists across a number of key fields, including AI-powered sorting, landfill excavation, waste management, and data extraction.
Example of a robot dog to be used by Boston Dynamics. Source: Business Insider
The unfortunate Bitcoiner has committed to ensuring the environment is protected, saying he did not want to damage it in any way, adding: “If anything, we want to leave everything in a better condition.”
Council Stonewalls Proposals
In rather typical bureaucratic fashion, a representative of the council told Business Insider: “There is nothing that Mr Howells could present to us that would make the council agree”, adding: “His proposals pose significant ecological risk, which we cannot accept and indeed are prevented from considering by the terms of our permit.”
If successful, the recovery team will enjoy 30 percent of the proceeds, with Howell and the investors retaining 30 percent apiece. The balance would then be shared among each of Newport’s 150,000 residents.
In the absence of council approval and as a last resort, Howell is prepared to go to court to gain access to the dump, saying: “I’ve been reluctant to go down that route in the past because I’ve not wanted to cause problems”, stressing that he instead “wanted to work with Newport City Council”.
Richard Hammond of Top Gear fame has interviewed Howells in a fascinating short documentary. It is well worth watching to uncover the lengths a person will go to when faced with the prospect of losing life-altering wealth:
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. Uniswap (UNI)
Uniswap UNI is a popular decentralised trading protocol known for its role in facilitating the automated trading of decentralised finance (DeFi) tokens. Uniswap aims to keep token trading automated and completely open to anyone who holds tokens while improving the efficiency of trading versus that on traditional exchanges. Uniswap creates more efficiency by solving liquidity issues with automated solutions, avoiding the problems that plagued the first decentralised exchanges.
UNI Price Analysis
At the time of writing, UNI is ranked the 19th cryptocurrency globally and the current price is US$6.41. Let’s take a look at the chart below for price analysis:
UNI‘s 70% retracement from its Q2 highs set a low near $3.80 during its consolidation that began in early June.
Relatively equal highs near $6.80 could be the current target if the price breaks through resistance beginning near $6.97. Bullish continuation might reach through the next significant swing high near $7.20 into the daily gap near $7.50.
If bullish strength continues, the zones just below the monthly open near $7.88 and $8.23 could halt any retracement.
A bearish shift in the market might seek the relatively equal lows near $5.90 into possible support near $5.62. If this down move occurs, the swing low near $5.32 and possible support near $4.93 may be the primary objective.
2. Dogecoin (DOGE)
Dogecoin DOGE is based on the popular “Doge” internet meme and features a Shiba Inu as its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme.
DOGE Price Analysis
At the time of writing, DOGE is ranked the 10th cryptocurrency globally and the current price is US$0.06089. Let’s take a look at the chart below for price analysis:
DOGE marines continue holding the price, printing nearly 29% gains during June.
The consolidation near $0.06015 is likely to provide support as the price continues exploring new highs. However, a set of relatively equal lows near $0.05829 provides a tempting target for a stop run into probable support near $0.05460.
A decidedly bearish shift in the market could reach probable support near $0.05098, near the monthly open.
Almost no resistance lies overhead, although low-timeframe traders can use the resistance below recent highs near $0.06384 as a first target. Beyond this level, extensions near $0.06723, $0.07354 and $0.08169 give reasonable higher-timeframe targets.
3. Enjin Coin (ENJ)
Enjin Coin ENJ is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. Enjin’s flagship offering is the Enjin Network, a social gaming platform through which users can create websites and clans, chat, and host virtual item stores. Enjin Coin is a digital store of value used to back the value of blockchain assets such as non-fungible tokens (NFTs).
ENJ Price Analysis
At the time of writing, ENJ is ranked the 70th cryptocurrency globally and the current price is US$0.5357. Let’s take a look at the chart below for price analysis:
ENJ spent Q2 ranging between 30% over and 20% below. The price is currently consolidating between adjacent resistance and support at $0.5145 with no clear higher-timeframe trend. A strong move over the monthly open could signal a run to resistance beginning near $0.6395.
This move would likely target the swing high at $0.6512 and relatively equal highs near $0.7049. A sustained bullish trend could reach up to the monthly high near $0.7432.
Bulls may see a sweep of the relatively equal lows near $0.4832 as a chance to buy at a discount. If this level fails to hold, the next significant area for the price to find buyers is likely near the consolidation around $0.4435 and $0.4050.
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.
A joint report published by Boston Consulting Group, Bitget and Foresight Ventures predicts global crypto adoption could surge to 1 billion by 2030, with the US leading the adoption wave:
‘Plenty of Growth to Come’
Only 0.3 percent of US individual wealth is held in crypto, which is significantly lower compared to 25 percent held in equities. This suggests there’s still room to drive substantial crypto adoption and cryptocurrency exchanges will play a key role in that growth, according to the report:
Crypto exchanges play a key role in the Web3 ecosystem by providing access, liquidity, and infrastructure. With competition intensifying, crypto exchanges must adapt to the dynamic market situation and transform their strategy to beat the competition.
Crypto adoption report
One of the main drivers of crypto adoption was institutional companies hoarding massive amounts of crypto assets and offering crypto-related products between mid-2020 and early 2021. Since then, investment banks such as Morgan Stanley and JPMorgan have offered clients some form of crypto product/service, such as exposure to BTC funds and blockchain-based assets.
LatAm and APAC Offer High Market Potential
The report also outlines that Latin America and APAC are the two most attractive regions for crypto exchanges to expand on, given their high market potential and regulatory laws.
Australia ranked fifth in a recently published list of countries with the most crypto-friendly economies, while Germany and the US topped the table. Australia made the top five due to its proliferation of ICOs, exchanges and transaction volumes, and universities offering crypto and blockchain education courses.
Animoca Brands has established an alliance with other prominent Web3 companies this week to create a new decentralised autonomous organisation (DAO) to prioritise users’ asset ownership capabilities.
The company behind smash hit metaverse game ‘The Sandbox’ has teamed up with a number of blockchain-based metaverse creators to establish the Open Metaverse Alliance for Web3 (OMA3). The DAO so far consists of popular names including Alien Worlds, Splinterlands, Dapper Labs, Upland, Star Atlas and, most notably, Decentraland. However, Animoca intends to invite many other creators on board.
Finer Detail Yet to be Revealed
The fine print of how this new DAO will operate, such as governance rules and voting power allocation, is yet to be revealed. However, it has been stated that OMA3’s main goals are to solve key challenges of the metaverse, such as the preservation of freedom of information owned by users:
We believe in a metaverse without restraining walls, where individual platforms are interconnected and fully interoperable … Users will immutably own these assets and transfer them to any OMA3 virtual worlds freely, without needing the platform’s permission.
OMA3 statement
This alliance would seem to be competition for the ‘Metaverse Standards Forum’ (MSF), which was announced earlier this week. Founded by big names in tech, such as Microsoft, Meta, Sony and Alibaba, all the companies in MSF are known for restricting user information usage and creating barriers when it comes to transfers.
OMA3 will set out to develop its infrastructure to ensure the metaverse operates as a unified system where digital assets and data are controlled by users, not platforms. Users of this infrastructure will own their assets and should be able to transfer them freely across the OMA3 world without requiring platform permission.
Animoca’s Recent Movements
‘Be Media’, an Australian digital marketing agency, sold a large stake of its company to Animoca Brands in April 2022. Animoca’s purchase is believed to be part of its incursion into Australia, as it hopes to induct more companies into Web3.
In a groundbreaking insider trading case against a former Coinbase employee, US regulator the Securities and Exchange Commission (SEC) has identified nine tokens in its complaint to be unlicensed securities:
Today we announced insider trading charges against a former Coinbase product manager, his brother, and his friend for perpetrating a scheme to trade ahead of multiple announcements regarding certain crypto assets that would be made available for trading on the Coinbase platform.
— U.S. Securities and Exchange Commission (@SECGov) July 21, 2022
Coinbase CEO Brian Armstrong took to Twitter saying that the company had received information earlier in the year about possible frontrunning and “immediately launched an investigation”:
As a result of our investigation we identified three suspects and provided this information to law enforcement. One person was a Coinbase employee who we terminated. Today, the DOJ has criminally charged this former employee and the two other individuals for this abusive conduct.
Brian Armstrong, CEO, Coinbase
Unregistered Securities Claim, Again
Earlier this year, Coinbase became the subject of a class-action lawsuit for selling 79 crypto assets alleged to be unregistered securities, and unfortunately for them, another claim appears likely.
This case, emanating from the SEC, alleges that those accused were frontrunning the public listing of as many as 25 digital assets, with nine being described as unlicensed securities. Consequently, they profited to the tune of some US$1.1 million.
Specifically, the claim referred to Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO.
Gurbir Grewal, director of the SEC’s Division of Enforcement, commented that they were less concerned with labels “but rather the economic realities of an offering”.
He added: “In this case, those realities affirm that a number of the crypto assets at issue were securities, and, as alleged, the defendants engaged in typical insider trading ahead of their listing on Coinbase. Rest assured, we’ll continue to ensure a level playing field for investors, regardless of the label placed on the securities involved.”
Caroline Pham, a commissioner at the US Commodity Futures Trading Commission (CFTC), said that the SEC’s actions constituted “regulation by enforcement” rather than addressing the question of whether or not certain crypto assets are securities “through a transparent process that engages the public to develop appropriate policy with expert input”.
It’s become increasingly self-evident that regulatory clarity is required on the question of whether crypto assets are unregistered securities, as is often alleged. Securities require adequate disclosure, and arguably that remains conspicuously absent in the vast majority of crypto projects.
However, on the bright side, one benefit of crypto – as highlighted in this case – is that it’s very difficult to conceal your trail if shenanigans are underfoot:
Two ex-employees of Coinbase & Opensea charged for insider trading in the past month. Both brought down by the immutable & transparent nature of the blockchain. There's something beautiful about that.
Let's hope it dissuades all future insider trading in crypto 💯
Singapore-based crypto exchange Zipmex has resumed withdrawals from its trade wallet but transfers and deposits from its Z-Wallet will continue to be disabled pending the outcome of discussions with two of its partners.
One Party Offers Bailout Terms
In a July 24 Twitter post, Zipmex also revealed that it had received an offer regarding a potential rescue deal. One party had offered bailout terms in a confidential memorandum of understanding (MOU), though Zipmex neither identified the party nor specified whether the offer might be an investment or a buyout proposal:
📢 Important Announcement 📢 Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex
On July 21, Zipmex halted all customer withdrawals on its platform, citing “financial difficulties” relating to two of its partners. The exchange disclosed a US$48 million exposure to Babel Finance and US$5 million to Celsius, two lenders that have defaulted on loans after accruing crippling losses in the crypto market.
“These discussions are ongoing, and we are evaluating our options based on the outcomes of these negotiations. Our loan to Celsius Network was minimal and we intend to write off this loss against our own balance sheet.”
The statement concluded:
Zipmex is exploring all available channels. This includes capital raises and internal restructuring. For the moment, Zipmex continues to operate the Trade Wallet, NFT platform, and other products as normal.
Zipmex official statement
Native Token Down 40%
Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits. The platform’s native token, ZMT, has declined by nearly 40 percent to US$0.343 from US$0.5637 on July 20, according to data from CoinMarketCap.
At the time of writing the exchange had seen nearly US$4 million in trading volume over the previous 24 hours, with almost 60 percent of all trades coming from ZMT.
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. Coti (COTI)
COTI markets itself as the first enterprise-grade fintech platform that empowers organisations to build their own payment solutions, as well as digitise any currency to save time as well as money. COTI is one of the world’s first blockchain protocols optimised for decentralised payments and designed for use by merchants, governments, payment DApps, and stablecoin issuers. The ecosystem has a DAG-based blockchain, proof-of-trust consensus algorithm, multiDAG, GTS (Global Trust System), a universal payment solution, and a payment gateway.
COTI Price Analysis
At the time of writing, COTI is ranked the 185th cryptocurrency globally and the current price is US$0.1003. Let’s take a look at the chart below for price analysis:
COTI has been ranging since its swift collapse in early May. Bulls and bears are battling between adjacent support and resistance surrounding $0.1036. This proximity may cause more consolidation until a strong move shows the next direction.
The area of resistance showed inefficient trading on the weekly chart. Price has rebalanced this area, so bears are free to take the price lower. Meanwhile, the upper part of accumulation on the weekly and the 9, 18 and 40 EMAs form support below.
A break lower might reach for inefficient trading on the daily chart near $0.0941. This level saw accumulation before mid-July’s run on bulls’ stops. It’s also under the July monthly open and the high of previous inefficient trading on the weekly chart.
If the price breaks higher, an area near $0.1315 could provide the next significant resistance. A move to this level would rebalance early June’s fast drop. It’s also near the June monthly open.
Bulls’ stops under relative equal lows, near $0.07689, might be the next bearish target if the downtrend resumes. This level still shows inefficient trading on the monthly and weekly charts.
2. DeFiChain (DFI)
DeFiChain DFI is a blockchain platform built with the mission of maximising the full potential of DeFi within the Bitcoin (BTC) ecosystem. The software platform is supported by a distributed network of computers and is designed to facilitate fast and transparent transactions. The development team positions DeFiChain as an innovative blockchain project and offers solutions to problems like scalability, security, and decentralisation.
DFI Price Analysis
At the time of writing, DFI is ranked the 214th cryptocurrency globally and the current price is US$1.10. Let’s take a look at the chart below for price analysis:
DFI collapsed 84% from its April high before beginning an uptrend in early July.
Bulls broke the market structure to the upside on July 7. This break resulted in a 73% climb ending with a large spike on July 22. Inside this spike, $1.2568 could provide the first resistance. It overlaps with a small area of inefficient trading in mid-June and is near the 40 EMA.
A move higher might retest July 22’s high, near $1.3922. This area shows inefficient trading on the daily and weekly charts. It’s also near the top of inefficient trading on the monthly chart.
If the rally continues, bulls should find support near $1.0852. A narrow pocket under this level, from $1.0690 to $1.050, could provide more sensitivity. This pocket shows inefficient trading on the daily and overlaps with old highs. It’s also near the 9 and 18 EMAs.
If the downtrend resumes, a wide area from $0.7233 to $0.4132 might spawn the following bullish setup. This zone shows inefficient trading on the monthly chart.
Near its midpoint, around $0.5387, is the bottom of inefficient trading on the weekly chart. This level could provide sensitivity and be a target for bears.
3. Perpetual Protocol (PERP)
Perpetual Protocol PERP is a decentralised exchange (DEX) for futures on Ethereum and xDai. Traders can go long or short with up to 10X leverage on a growing number of assets such as BTC, ETH, DOT, and others. Trading is non-custodial, meaning traders always retain possession of their assets and on-chain. Perpetual Protocol utilises a virtual automated market maker (vAMM), which provides on-chain liquidity with predictable pricing set by constant product curves. Furthermore, Perpetual Protocol designed its vAMMs to be market-neutral and fully collateralised.
PERP Price Analysis
At the time of writing, PERP is ranked the 319th cryptocurrency globally and the current price is US$0.7525. Let’s take a look at the chart below for price analysis:
PERP has been in a downtrend for almost a year. In June, it set its all-time low.
Currently, the price is consolidating. The weekly accumulation high near $0.750 should support the price if bulls are buying. This retest would allow more buying as the price runs other bulls’ trailed stops under $0.757.
Yet, the closest resistance is nearby, at $0.783. This level is near the 9 and 18 EMAs, and also showed inefficient trading on the daily chart. This old inefficient trading may cause it to begin offering resistance.
If the closest support breaks, higher timeframes suggest that $0.628 might be the next support. This level is under the July open near the origin of the rally. Bulls rejected bears here in mid-June.
A drop to this level should make bulls cautious. It could mean that swing lows near $0.586 and $0.502 are the bearish targets.
If bulls do find support, they may be targeting a wide area from $1.026 to $1.170. This range shows inefficient trading on the weekly chart that the price may need to fill. It would also sweep bears’ stops over early July’s swing high into an old distribution area.
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.
