Category: Crypto News

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Compound Crypto News Kucoin Market Analysis NEAR Protocol Trading

Top 3 Coins to Watch Today: KCS, NEAR, COMP – June 23 Trading Analysis

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. KuCoin Token (KCS)

KCS is the native token of KuCoin, launched in 2017 as a profit-sharing token that allows traders to draw value from the exchange. It was issued as an ERC-20 token running on the Ethereum network and was supported by most Ethereum wallets. The total supply of KCS was set at 200 million, and there is a planned buyback and burn until just 100 million KCS remain. Sooner or later, as the KuCoin decentralised trading solution goes live, KCS will be the native asset of KuCoin’s decentralised financial services as well as the governance token of the KuCoin community in the future.

KCS Price Analysis

At the time of writing, KCS is ranked the 46th cryptocurrency globally and the current price is US$10.53. Let’s take a look at the chart below for price analysis:

Source: TradingView

KCS has been trading through a massive range during Q2, with the price showing mild bullishness from last week.

Bulls bought near $9.50. The weekly level and daily gap near $10.23 could prompt buyers to step in again as the price challenges the swing high and resistance around $13.50. A strong move and acceptance above this level may reach for the swing highs at $14.75 and $15.66, which mark another area of resistance.

However, rejection from the current area may send the price down to retest support near $10.00. Relatively equal lows around $9.78 provide a rich target for a stop run. Sustained bearishness may reach the low near $8.90 and possibly as low as $7.14 into higher-timeframe support.

2. Near Protocol (NEAR)

NEAR Protocol is a decentralised application platform designed to make apps usable on the web. The network runs on a Proof-of-Stake (PoS) consensus mechanism called Nightshade, which aims to offer scalability and stable fees. NEAR uses human-readable account names, unlike the cryptographic wallet addresses common to Ethereum. NEAR also introduces unique solutions to scaling problems and has its own consensus mechanism, called “Doomslug”.

NEAR Price Analysis

At the time of writing, NEAR is ranked the 25th cryptocurrency globally and the current price is US$3.36. Let’s take a look at the chart below for price analysis:

Source: TradingView

During Q2, NEAR has retraced 70% from its highs to support at the retracement of around $3.10.

The price shifted market structure to run to the consolidation lows near $3.40, just under the monthly open. A continued bearish trend in the market may create support just below, between $3.00 and $2.70.  

On the other hand, if the current resistance breaks, the price might find resistance near $4.83 and $5.14, whereas mid-Q2 buyers may still be trapped in longs.

3. Compound (COMP)

Compound COMP is a DeFi lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform. When a user deposits tokens to a Compound pool, they receive cTokens in return. These cTokens represent the individual’s stake in the pool and can be used to redeem the underlying cryptocurrency initially deposited into the pool at any time. These COMP tokens can be bought from third-party exchanges or can be earned by interacting with the Compound protocol, such as by depositing assets or taking out a loan.

COMP Price Analysis

At the time of writing, COMP is ranked the 99th cryptocurrency globally and the current price is US$39.29. Let’s take a look at the chart below for price analysis:

Source: TradingView

After rallying over 55% from its Q1 low, COMP is encountering resistance near $57.43.

This resistance and the monthly open at $40.13 currently have the price trapped. The swing high and resistance near $49.27 provide a likely target before any major bearish market shift, with continuation through this resistance possibly reaching for short stops and resistance near $62.55.

The daily gap at $35.12 could provide support, while the area beginning near $30.49 could see more substantial interest from the bulls. A longer-term bearish shift in the marketplace will likely reach the relatively equal lows near $28.48, possibly finding a floor at possible support beginning near $24.71.

Learn How to Trade Live!

Join Dave and The Crypto Den Crew and they’ll show you live on a webinar how to take your crypto trading to the next level.

Where to Buy or Trade Altcoins?

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.

Categories
Bancor Crypto News DeFi

‘Bancor’ DEX Pauses Impermanent Loss Protection Amid ‘Hostile Market Conditions’

DeFi pioneer protocol Bancor has paused its impermanent loss protection (ILP) function, citing “hostile market conditions”:

In a June 20 blog post, the Swiss-based DEX was quick to point out that the ILP pause is strictly a temporary measure to protect the protocol and its users: “[This] should give the protocol some room to breathe and recover. While we wait for markets to stabilise, we are working to get IL protection reactivated as soon as possible.”

What Is ‘Impermanent Loss’ and How Does It Work?

In DeFi, impermanent loss happens when a user provides liquidity to a liquidity pool and the ratio of deposited assets later changes, potentially leaving investors with more of the lower value token. The bigger the change, the more users are exposed to impermanent loss.

The problem, says Bancor, is that many DeFi projects seem to ignore the issue, which ultimately results in inaccurate APR (annual rate of return expressed as a percentage) numbers reported by some protocols.

Insurance by Any Other Name

Bancor’s impermanent loss protection (ILP) feature imposes a cost on a protocol, similar to the insurance cost incurred by an insurance company.  This cost is offset in two ways:

  • ILP is funded by Bancor’s protocol-owned liquidity – the protocol stakes its native token BNT in its pools and uses the earned fees to compensate users for any impermanent loss; and
  • when earned trading fees are greater than the cost of impermanent loss on a given stake, the protocol is effectively burning excess BNT.

It seems not all investors approve of this modus operandi, however:

Elsewhere in the troubled world of DeFi this week, crypto lenders Babel Finance and Celsius have been forced to pause withdrawals and transfers due to what they respectively deemed “unusual liquidity pressures” and, echoing Bancor, “extreme market conditions”.

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Crypto News Korea Terra

South Korean Prosecutor Bans Terra Employees From Leaving the Country

Former employees of Terraform Labs have been reportedly prohibited from exiting South Korea as investigations into the company continue following last month’s Terra USD collapse.

Developers and other former staff have been unable to leave the country as prosecutors have imposed a departure ban on key personnel involved in the project:

Former Employees Knew Nothing of Travel Embargo

On June 20, the newly reconstituted Financial and Securities Crimes Joint Investigation Team announced a travel embargo had been put in place to prevent “persons of interest” in the case from leaving the country. The move could also be seen as preparation for additional investigative activities such as search and seizures, as well as subpoenas to be served on other prospective defendants.

One of Terra’s former developers, Daniel Hong, confirmed via Twitter that Terraform Labs employees had received an exit ban from the South Korean government. According to Hong’s tweet, none of the employees was notified to avoid any possibility of destruction of evidence as the investigation continues.

The move comes only weeks after South Korean authorities targeted Terraform Labs staff for questioning and moved to freeze the foundation’s assets.

Hong shared his dismay at the ban, stating that it shows employees are being treated as criminals, which he described as “unacceptable”.

Categories
Bitcoin Crypto News ETFs

ProShares Launches First Short Bitcoin ETF

ProShares, a global exchange-traded fund (ETF) provider, has launched an ETF enabling investors to bet against bitcoin, otherwise known as “going short”:

Profiting Off Bitcoin’s Decline

The ProShares Short Bitcoin Strategy ETF, scheduled to commence trading under ticker symbol BITI on June 22 on the New York Stock Exchange, enables investors to “short sell” bitcoin.

Unlike most investments which speculate on the price appreciating, short selling involves the opposite – betting that the asset in question will decline. In a statement, ProShares CEO Michael Sapir commented that conditions were ripe for the product:

As recent times have shown, Bitcoin can drop in value. BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings.

Michael Sapir, ProShares CEO

BITI purports to deliver the inverse of the performance of the S&P CME Bitcoin Futures Index, and it will obtain exposure through Bitcoin futures contracts.

The launch is rather timely, given bitcoin’s recent unprecedented decline below 2017’s previous all-time high. Since November last year, the overall cryptocurrency market has shed US$2 trillion from its market capitalisation, peaking at US$2.9 trillion and currently hovering around US$900 million.

Bitcoin 1 month performance (USD). Source: Coinbase

SEC Drags its Heels on Spot Bitcoin ETF

Despite other jurisdictions such as Canada and Australia having multiple spot bitcoin ETFs, as the world’s largest financial market the US is yet to get one of its own. The US regulator, the Security and Exchange Commission (SEC), has repeatedly denied spot bitcoin ETFs, citing “market manipulation” as one of several reasons for failing to approve one.

Remarkably, investors in the US now have the option to invest in bitcoin futures, as well as bet against bitcoin, but they still cannot invest in an ETF tracking its price:

Commentators on Twitter appeared baffled by the decision, describing it as “intentional”, with others saying it was unequivocally clear that the SEC had an agenda:

The news comes in as Grayscale remains committed to converting its Grayscale Bitcoin Trust into an ETF, and just yesterday, Bloomberg reported that Anthony Scaramucci’s SkyBridge was scheduled to file for a spot bitcoin ETF this week.

Pressure is mounting on the SEC. How much longer can it continue to deny a spot bitcoin ETF? The longer the situation persists, the more difficult it is to argue that its decision-making isn’t political.

Categories
Crypto News Harmony Horizen Market Analysis SushiSwap Trading

Top 3 Coins to Watch Today: ZEN, SUSHI, ONE – June 22 Trading Analysis

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. Horizen (ZEN)

Horizen ZEN is an interoperable blockchain system, supported by a decentralised node infrastructure. Its sidechain platform focuses on scalable data privacy, and as such enables businesses as well as developers to build private or public blockchains using the unique sidechain technology known as Zendoo. Horizen claims to be completely decentralised, fully customisable with privacy features, and supports low costs associated with building blockchains with configurable revenue models and an unlimited number of tokens and digital assets.

ZEN Price Analysis

At the time of writing, ZEN is ranked the 135th cryptocurrency globally and the current price is US$14.90. Let’s take a look at the chart below for price analysis:

Source: TradingView

ZEN saw an energetic run during Q1, climbing approximately 75% before cooling off into resistance beginning near $31.85 pinned down last month’s attempt to rally, which is likely to retest possible support near $16.14.

A deeper marketwide retracement could take out the relatively equal lows below the weekly open and support near $14.23. This move may offer entries near probable support between $13.47 and $11.78.

However, more bullish market conditions may prompt a rally to the relatively equal highs near $17.67 into resistance beginning at $21.46. If the price reaches this level, the last high at $24.58 gives the next likely target before price discovery begins.

2. SushiSwap (SUSHI)

SushiSwap SUSHI is an example of an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralised exchanges that use smart contracts to create markets for any given pair of tokens. SushiSwap aims to diversify the AMM market and also add features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI.

SUSHI Price Analysis

At the time of writing, SUSHI is ranked the 145th cryptocurrency globally and the current price is US$1.20. Let’s take a look at the chart below for price analysis:

Source: TradingView

After retracing nearly 80% from its Q1 highs, SUSHI set a low near $0.9210 as it formed its current range.

Last week, the price swept highs near $1.37, which now also marks the previous monthly high. Relatively equal daily highs near $1.43 provide a reasonable target, although resistance beginning near $1.55 could cap the move. A break of this resistance is likely to target the swing high near $1.64 into higher-timeframe resistance beginning near $1.72.

The current area near $1.20 could provide support, although bulls may be more likely to buy around the price fractal near $1.14 if a retracement reaches this level. A break of this area could continue down to sweep the low near $1.00 into possible support beginning near $0.8702.

3. 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 89th cryptocurrency globally and the current price is US$0.02878. Let’s take a look at the chart below for price analysis:

Source: TradingView

ONE bulls have had to endure a 79% 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 $0.03621. Stops above the swing high at $0.04135 might be the target before a downwards retracement. Multiple old lows mark this resistance, which is near the 78.6% retracement level of a recent significant bearish swing.

If the price continues through this high, it could be reaching for an inefficient area near $0.04472. 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 $0.04875 and $0.05038, which surrounds the yearly open.

If the price stays above Monday’s low of $0.02695, this price could support a run above the $0.02935 swing high. Just below, at $0.02554, 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 $0.02425 and $0.02280. If this level breaks, bears may be targeting an inefficiently traded area on higher timeframes beginning near $0.01980. This area overlaps the 37% extension of a recent significant bearish swing.

Learn How to Trade Live!

Join Dave and The Crypto Den Crew and they’ll show you live on a webinar how to take your crypto trading to the next level.

Where to Buy or Trade Altcoins?

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.

Categories
Australia Crypto Exchange Crypto News

Australian Exchange BTC.com.au Shuts Down Amid Market Volatility

The Australian-based crypto exchange BTC.com.au has announced it will be closing down by the end of this week, citing crashes in both the stock market and crypto market as the primary cause. 

As you have all likely seen and heard in the media this week, there have been multiple market crashes in both the crypto and stock markets, and sadly we have been very hard hit in this volatile climate and it is not possible for us to continue operating.

BTC.com.au statement

BTC.com.au says however it will keep its service alive until Friday, July 22 – giving users just over a month to prepare for its closure.

BTC.com.au Started Small, Had Recently Expanded Heavily

BTC.com.au started out in 2018 offering just a single cryptocurrency, Bitcoin (BTC). In the past year, as the crypto market boomed, the exchange expanded significantly, increasing its employee count five-fold.

In April this year, BTC.com.au announced the launch of its new full-fledged trading platform, adding support for several new cryptocurrencies and numerous other features.

Crypto Crash Puts Pressure on Exchanges

According to data from CoinGecko, since its peak last November the overall crypto market cap has plummeted close to 70 percent – falling from over US$2.9 trillion to under US$1 trillion. Many individual cryptocurrencies have seen even bigger declines, dropping 80-90 percent from recent highs. 

This degree of volatility can easily decimate heavily crypto-exposed businesses; unfortunately for BTC.com.au, the crypto winter hit immediately following its rapid expansion when it seems to have been particularly vulnerable.

Categories
Crypto News Stablecoins

UST Contagion Continues as ‘Magic Internet Money’ Stablecoin Depegs

Last month’s Terra’s UST collapse has caused a domino effect on several stablecoins in the market. This time, Abracadabra’s Magic Internet Money (MIM), another US dollar-pegged stablecoin, started de-pegging on June 18, falling to US$0.92 per token in nearly three hours.

The de-pegging started on June 17, around 7:00 am UTC. According to Twitter handle Autism Capital, an insider revealed that Abracadabra had accrued US$412 million in bad debt as a result of Terra’s UST meltdown “because liquidations couldn’t happen fast enough to cover the protocol’s MIM liabilities”:

Ripple Effect in MIM Curve Pool

Autism Capital shed some light on the founder of MIM, Daniele Sestagalli, who allegedly created more “bad debt” by letting his SPELL position get liquidated. SPELL is an Ethereum-based token that governs Abracadabra.

Accordingly, Wonderland, a crypto venture firm that shared team members with Abracadabra, withdrew US$50 million in USDC from the MIM Curve pool on June 17, causing considerable pain to the pool’s balance:

The thread further explains that Abracadabra decided to buy CRV instead of using funds from the MIM treasury to pay the debt. But Abracadabra took down its analytics dashboard to “upgrade it” and the timing of its dashboard shutting down was a mere coincidence.

Sestagalli refuted the allegations, stating that the MIM treasury has more funds to pay off debt. For proof he shared the treasury’s address, which currently holds over US$13 million.

Terra Domino Effect Persists

The collapse of Terra’s UST stablecoin not only affected investors worldwide but has also caused a domino effect on stablecoin projects. Soon after Terra’s meltdown, TRON’s algorithmic stablecoin USDD started losing its peg with the US dollar on June 7. To prevent a Terra-type fiasco, TRON announced that USDD would be overcollateralised by a ratio of at least 130 percent.

Before TRON and Terra, the Waves Protocol-backed Neutrino Dollar (USDN) also lost its peg to the US dollar, dropping more than 15 percent amid speculation of market manipulation.

Categories
Crypto News Cryptocurrency Law Dogecoin

Elon Musk Faces $258 Billion Lawsuit for Alleged ‘Dogecoin Pyramid Scheme’

Elon Musk, along with his companies Tesla and SpaceX, is facing a US$258 billion class-action lawsuit that claims they “are engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of Dogecoin cryptocurrency”.

The lawsuit alleges that Musk “falsely and deceptively claims that Dogecoin (DOGE) is a legitimate investment when it has no value at all”, although crypto Twitter is already talking down the suit’s chances of success:

Order Sought to Classify DOGE Trading as ‘Gambling’

Plaintiff Keith Johnson, a Dogecoin investor, has filed a complaint in federal court accusing the world’s richest man of racketeering for touting DOGE and driving up its price, only to later allow it to tumble. According to the complaint, “[the] Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading”, adding that “Musk used his pedestal as World’s Richest Man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement”.

Johnson argues that DOGE is “simply fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price”. The plaintiff is seeking to represent a class of fellow investors who have lost money by trading DOGE since April 2019 and claims US$86 billion in damages and treble compensatory damages of US$172 billion.

Additionally, Johnson is seeking an order to block Musk and his companies from promoting DOGE, and declaring that DOGE trading constitutes gambling under US and New York law.

Musk Tweets Ongoing Support for Dogecoin

Musk has famously joked that Dogecoin could become the world’s currency. In May, he announced that SpaceX would soon accept DOGE for merchandise and also discussed allowing payment in DOGE for some Twitter services, should he become the owner of the social media platform – which he has since acquired for a cool US$44 billion.

Musk, for his part, remains unrepentant:

Categories
Crypto News

‘Babel Finance’ Halts Withdrawals Citing ‘Unusual Liquidity Pressures’

Hong-Kong based crypto lender Babel Finance has halted redemptions and withdrawals on Babel products, naming “unusual liquidity pressures” as its justification for the pause.

Babel, recently valued at US$2 billion in its $80 million Series B funding round, has named limitations in on-hand asset availability as its main motivation for pausing withdrawals. Its action comes as crypto prices have dipped across the industry.

Babel Finance is taking action to best protect the interests of our clients … we are in close communication with all related parties and will share updates in a timely manner.

Babel Finance notice

With the crypto market at its lowest since December 2020, major fluctuations are putting pressure on all market participants. Many other lending platforms, including Celsius, Inverse Finance and Finblox, have also been halting or restricting their services.

While Babel cannot say how long its products will be suspended, it has “sincerely apologised” and stated its intentions to operate in the “best interests” of its clients.

Celsius Also Pauses Withdrawals

Celsius, another crypto lender, received a purchase proposal from competitor Nexo last week. This followed moves by Celsius towards insolvency, with the company blaming “extreme market conditions” for its decision to pause customer withdrawals.

Categories
Crypto News DeFi Solana

Solana DeFi Protocol Votes to Liquidate Whale’s Account to Protect the Network

The team at Solana-based DeFi protocol, Solend, recently liquidated a whale’s account, ostensibly to mitigate risks posed to the Solana network.

A vote was undertaken by the Solend community on whether or not to take temporary control of the whale’s account and liquidate its holdings through an over-the-counter (OTC) trade.

Among the major concerns was that with the price of SOL dropping to US$22.30, the whale’s account would liquidate up to 20 percent of borrows, estimated at around US$21 million, and in such event could have landed Solend with a significant amount of bad debt.

Potential Chaos Alert

Apparently, but for Solend’s actions, liquidations would otherwise have placed significant strain on the Solana network, and liquidators would be especially active and spam the liquidate function – which has been a known factor causing Solana to go down in the past:

Solend Forced to Take Decisive Action

Despite its best efforts, the team at Solend has been unable to contact the whale via on-chain messages to reduce the risk, forcing it to take decisive action:

Options presented to the community included doing nothing, which would present a systemic risk to Solend and its users. Allowing liquidations of this magnitude to happen on-chain is risky as the DEX liquidity isn’t deep enough to handle a sale of this size and could cause cascading effects.

The team at Solend decided that any action taken had a set of trade-offs to consider and it posed a vote to the community with two possible outcomes:

  • Vote Yes – enact a special margin requirement for large whales that represents over 20 percent of borrows and grant emergency power to Solend Labs to temporarily take over the whale’s account so that liquidation can be executed OTC; or
  • Vote No – do nothing.

Votes were cast and the community voted yes: