Category: Crypto News

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Audius Crypto News ICP Market Analysis The Sandbox Trading

Top 3 Coins to Watch Today: AUDIO, ICP, SAND – August 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. Audius (AUDIO)

Audius AUDIO is a decentralised music-sharing and streaming protocol that facilitates direct transactions between listeners and creators, giving everyone the freedom to distribute, monetise, and stream any audio content. Audius aims to align the interests of artists, fans and node operators through its platform powered by its native AUDIO token. Artists can upload music, stored and distributed by content and discovery nodes, that fans can listen to for free.

AUDIO Price Analysis

At the time of writing, AUDIO is ranked the 122nd cryptocurrency globally and the current price is US$0.2989. Let’s take a look at the chart below for price analysis:

Source: TradingView

AUDIO has been consolidating between approximately $0.509 and $0.282 since early May 2022. The high end of this range, from $0.496 to $0.563, could provide significant resistance. A rally to this level would partially fill an area of inefficient trading on the monthly, weekly, and daily charts. It would also run bears’ stops above the summer’s consolidation.

The swing high near $0.440 could provide a closer resistance. If the price can reach this level, it will run bears’ stops above the recent sharp move downward. It’s also near the June monthly open.

The closest resistance may be an area between $0.352 and $0.377. This level shows buying before August 11’s run on bears’ stops, contains the 40 EMA, and has inefficient trading on the daily chart.

Currently, the price is testing possible support near $0.306. At this level, bulls rejected bears in mid-June near the bottom of inefficient trading on the monthly chart. The price has already swept some bulls’ stops as it creates relative equal lows. 

These relative equal lows may suggest that this level will later break. Yet, in the short term, it could prompt a rally toward resistance.

If the price breaks down from its consolidation range, $0.215 may provide the next higher-timeframe support. Here, the weekly chart shows accumulation before early 2021’s rally.

A sustained downtrend could reach $0.077 or below, where the monthly chart shows inefficient trading. Higher-timeframe support below this level is unclear due to a lack of historical price action.

2. Internet Computer (ICP)

The Internet Computer ICP is the world’s first blockchain that runs at web speed with unbounded capacity. It also represents the third major blockchain innovation alongside Bitcoin and Ethereum. The Internet Computer scales smart contract computation and data, runs them at web speed, processes and stores data efficiently, and provides powerful software frameworks to developers. By making this possible, it enables the complete re-imagination of software, providing a revolutionary new way to build tokenised internet services, pan-industry platforms, decentralised financial systems, and even traditional enterprise systems and websites.

ICP Price Analysis

At the time of writing, ICP is ranked the 35th cryptocurrency globally and the current price is US$6.22. Let’s take a look at the chart below for price analysis:

Source: TradingView

ICP has consolidated since mid-May and is approaching the bottom of this range. An area near $5.95 could provide support. It’s below relative equal lows, offering bears an attractive target, and shows inefficient trading on the daily chart.

A run to this level may drop slightly lower, near $5.54, to touch the midpoint of accumulation on the weekly chart. No historical price action exists to suggest support below this area. The 50% extension on late July’s bullish impulse could hint at possible support and a bearish target near $4.25.

The closest resistance might exist between $7.17 and $7.60. This area shows inefficient trading on the daily chart above the midpoint of the recent drop. It also contains the 18 and 40 EMAs. If the price does break through this level, it could retest the August monthly open near $8.99. Bears rejected bulls here on all timeframes.

A more substantial rally may run bears’ stops above relative equal highs near $9.80. This potential move could reach into an area of inefficient trading on the monthly and weekly charts above, up to $11.28. Stronger resistance might begin near $10.24, where the daily chart showed brief distribution on May 10.

3. The Sandbox (SAND)

The Sandbox SAND is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs), the Sandbox creates a decentralised platform for a thriving gaming community. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform.

SAND Price Analysis

At the time of writing, SAND is ranked the 38th cryptocurrency globally and the current price is US$1.02. Let’s take a look at the chart below for price analysis:

Source: TradingView

SAND has also been consolidating since mid-May and is retesting its range lows. An area between $0.9798 and $0.8995 offers the highest odds of holding if bulls want to keep the price in its range. This area near the range’s lows is the upper half of accumulation on the weekly chart. It also ran stops under early May’s swing low. 

If the downtrend resumes, the price may reach as low as $0.3827. This area shows inefficient trading formed on the weekly chart as July 2021’s rally kicked off. The price has not yet indicated that it will head for this level.

Inefficient trading near $1.2026 may provide the first resistance. This area contains the 18 and 40 EMAs and overlaps with old swing lows.

Bears rejected bulls in late July and early August near $1.3384. This area, just above the August monthly open, could provide resistance again.

An area of inefficient trading from $1.5373 to $1.6298 offers an attractive target to bulls and could provide significant resistance. Reaching this gap would allow bulls to run many bears’ stops above the summer’s range highs.

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.

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Avalanche Axie Infinity Cosmos Crypto News Market Analysis Trading

Top 3 Coins to Watch Today: AXS, ATOM, AVAX – August 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. Axie Infinity (AXS)

Axie Infinity AXS is a blockchain-based trading and battling game that is partially owned and operated by its players. The Axie Infinity ecosystem has its own unique governance token, known as Axie Infinity Shards AXS. These are used to participate in key governance votes and give holders a say in how funds in the Axie Community Treasury are spent.

AXS Price Analysis

At the time of writing, AXS is ranked the 44th cryptocurrency globally and the current price is US$14.39. Let’s take a look at the chart below for price analysis:

Source: TradingView

AXS‘s relatively small 20% range could suggest that a recovery is setting up in August. Aggressive bulls could look for entries at the most recent area of support formed near $13.34. However, equal lows near $12.32 make a tempting target for a stop run into this support. This move could reach support near $11.90. 

A decisive move to the downside could run stops below the second set of relatively equal lows near $10.80, possibly reaching support at an old swing high and a daily gap near $10.00.

A recent level near $18.84 provided resistance and caused a swing high to form near $22.88, offering first targets. A move through this high may arrive at new monthly high levels near $24.40 and $26.13.

2. Cosmos (ATOM)

Cosmos ATOM bills itself as a project that solves some of the “hardest problems” facing the blockchain industry. It aims to offer an antidote to “slow, expensive, unscalable and environmentally harmful” proof-of-work protocols, like those used by Bitcoin, by offering an ecosystem of connected blockchains. ATOM tokens are earned through a hybrid proof-of-stake algorithm and they help to keep the Cosmos Hub, the project’s flagship blockchain, secure. This cryptocurrency also has a role in the network’s governance.

ATOM Price Analysis

At the time of writing, ATOM is ranked the 26th cryptocurrency globally and the current price is US$10.60. Let’s take a look at the chart below for price analysis:

Source: TradingView

ATOM has been consolidating in a range around Q1 2022’s high. Q2 2022 saw the start of a smaller range inside this larger range. Near the current price, $10.00 or $8.60 could support at least a small move upward. This area is near the local range low, inefficiently traded, and the site of a stop run.

Just above the current price, the 9, 18 and 40 EMAs may provide resistance near $11.86. This level saw consolidation before last week’s downward move.

A move back toward the local range highs could reach possible resistance near $12.65, where bears rejected the recent rally. This level is just above the May monthly open.

A more extended move by bulls may reach the larger range’s rejection area near $13.81. However, a move this far is less likely unless the overall market rallies.

Below the higher timeframe’s range, $8.25 to $7.80 could provide more substantial support to start a longer-term bullish trend. This level is near the 78.6% retracement of the July 2021 to September 2021 rally, shows inefficient trading on higher-timeframe charts, especially between $7.05 and $6.70, and provides a reasonable stop run target.

3. 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 15th cryptocurrency globally and the current price is US$22.83. Let’s take a look at the chart below for price analysis:

Source: TradingView

AVAX‘s gains in Q2 ended with an almost 80% 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 $27.30.

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 $21.35 to $19.30 could see interest from bulls before further expansion. Bears may capitalise on any sharp moves down in Bitcoin, aiming for possible support near the 75% retracement, at $17.10, and potentially lower to a higher-timeframe support zone between $16.70 and $15.22.

If the higher-timeframe recovery trend resumes and the current resistance near $29.64 breaks, the wicks near $35.14 and the new monthly highs may see profit-taking.

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.

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Australia Crypto News Surveys

UN Urges Developing Countries to Curb Crypto Expansion

The United Nations trade body has urged authorities in developing countries to help ensure the prevention of widespread crypto use. The motivation? Vast crypto usage could jeopardise a nation’s monetary sovereignty:

‘Curb your Crypto’

The UN Conference on Trade and Development (UNCTAD) has asked that the governments of developing countries work to prevent widespread crypto adoption. This follows the explosion of crypto use during the Covid-19 pandemic, which also increased the social risks and costs of digital assets in developing nations:

Three related policy briefs were released between June and August detailing the high costs of unregulated crypto, the public payment systems responding to financial stability and security risks, and how crypto can undermine domestic resource mobilisation in developing countries.

While UNCTAD acknowledges that crypto can facilitate remittances, it highlights its role in enabling tax evasion via illicit flows. As a result, UNCTAD has published a set of policy actions and urged authorities to help “curb the expansion of cryptocurrencies in developing countries”.

Global Variations in Crypto Adoption

The adoption rate of crypto across the globe has been varied, to say the least. Some countries have embraced it wholeheartedly while others have slipped behind. Australia is in the latter category. Only 3.4 percent of Australians own crypto, according to new data from UNCTAD, placing the country last in a list of 20. Ukraine and Russia topped the chart with 12.7 percent and 11.9 percent respectively.

However, in 2021 global crypto adoption increased by 880 percent over the previous year. This data derived from a Chainalysis report that named Vietnam as the leader of the crypto adoption ‘race’. It also noted that the keenest adopters tended to be those in developing nations, suggesting higher crypto comprehension in such regions.

Categories
Bored Ape Yacht Club Crypto News Cryptocurrency Law NFTs Social media

Bored Ape Defies NFT Downturn, Sells for $1.5 Million

A cashed-up Bored Ape Yacht Club (BAYC) enthusiast has just paid a huge 777 ETH (US$1.5 million) for a single Ape, defying the current market downturn.

Crypto millionaire and BAYC superfan Vis.eth purchased Bored Ape #5383 for its gold fur, after already spending millions on Otherdeeds:

https://opensea.io/assets/ethereum/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/5383
Bored Ape #5383.

Median Price Hits Two-Month High

The Ape purchased this week by Vis.eth is the 285th rarest in the BAYC collection, notable for its gold fur and red checked shirt. The purchase pumped the median price for the collection, pushing it to a new two-month high of 441 ETH.

Vis.eth’s purchase of Ape #5383 netted a 500 percent profit for its previous owner, who originally bought it for 95 ETH. The “metaverse mogul” is no stranger to these purchases, having already spent millions on Otherdeeds from Yuga Labs’ Otherside project, and some CryptoPunks:  

The monthly volume for the NFT marketplace has been at abysmally low levels during the crypto winter. Total sales for July were a meagre US$675.53 million in comparison to January’s US$5.63 billion:

https://www.theblockresearch.com/data/nft-non-fungible-tokens/marketplaces
The difference a crypto winter makes to NFT sales.

Eventful Year for Yuga Labs

Yuga Labs has been stuck between a rock and a hard place of late, with both the media and the courts snapping at its heels. In late July, a class-action lawsuit was filed by international law firm Scott+Scott over allegations that it falsely promoted Bored Ape NFTs and ApeCoins as securities with guaranteed returns, despite their value actually plummeting in the subsequent three months.

Prior to the lawsuit, Yuga Labs faced damning allegations of racism which rocked the industry. Philip Rusnack, aka Philion, posted a lengthy YouTube video identifying supposed alt-right connotations among the memes, language and symbols used in Bored Ape Yacht Club (BAYC) collections. This led to the trending ‘BURNBAYC’ hashtag, which was circulating on Twitter at the time.

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Australia Coinbase Crypto News

Sydney Uni Finds Insider Trading Occurs in 10-25% of Crypto Listings

A group of Australian researchers at the University of Technology in Sydney have released a report claiming that between 10 and 25 percent of Coinbase listings since 2018 involve insider trading.

‘Systemic’ Insider Trading

The report alleges that insider trading is “systemic” in the crypto sector, suggesting that up to 25 percent of Coinbase listings in the past four years have involved insider trading, to a lesser or greater extent.

Professor Ester Felez Vinas, Professor Talis Putnins, and PhD candidate Luke Johnson analysed crypto listings between September 2018 and May 2022, and claim that this resulted in some US$1.5 million in profits. Perhaps more telling is the fact that identified cases have yet to be prosecuted.

As a result, the researchers argue that due to the growing perception of insider trading, it may have the result of scaring away potential investors and “impede adoption of cryptographically secured ways of representing securities and other financial instruments”.

In reaching their findings, the team examined 146 Coinbase listings and tracked their prices 300 to 100 hours before each new listing went live on the exchange to look for abnormal trading patterns of said assets on KYC-free decentralised exchanges.

From visual inspection, we note that there is an evident run-up pattern prior to the listing announcement starting at -250 hours.

Report findings

The report adds that “the run-up continues until the listing announcement event, where we see a jump in price because of new information entering the market and traders reacting to the news”. It concludes by saying that the “run-up pattern we observe is consistent with the run-ups in prosecuted cases of insider trading in stock markets”.

Irresistible Temptations

The report comes as little surprise as evidence mounts that insider trading is increasingly becoming a feature within crypto exchanges, particularly those that are less selective with their listings.

We saw it last year in the NFT space, as one senior executive at OpenSea was found to be front-running listings, and more recently a Coinbase employee was charged for doing the same.

Whether in traditional or crypto markets, human nature remains the same. When people have access to asymmetrical information capable of yielding profits, the temptation to take advantage is often too great to resist.

Categories
Crypto News Cryptocurrency Law Zipmex

Embattled Crypto Lender ‘Hodlnaut’ Applies for Creditor Protection

Hodlnaut has become the second Singapore-based crypto lender to seek a protection order from creditors after filing an application with the Singapore High Court to be placed under judicial management:

Hodlnaut Joins Vauld, Zipmex in Unholy Trinity

Following in the wake of Vauld, which was granted a three-month protection order earlier this month after it too suspended withdrawals without notice in July, Hodlnaut’s application will temporarily safeguard the lender from any legal claims.

Hodlnaut and Vauld join crypto exchange Zipmex, also based in Singapore, in securing temporary creditor protection. Earlier this week, Zipmex successfully won its own three-month moratorium until December 2 to enable it to formulate a funding and restructuring plan.

Hodlnaut hopes that being put under judicial management will allow it too to devise a recovery plan to avoid liquidating customer assets.

What Is ‘Judicial Management’?

Judicial management is a law in Singapore under which financially troubled firms are given the opportunity to rehabilitate themselves. The court appoints a judicial manager who temporarily takes over from the company’s managing director.

The appointment of a judicial manager can take up to a few months. Until the court confirms who that might be, the company may apply to appoint an interim judicial manager to act on a temporary basis in the same capacity. Hodlnaut has nominated Tam Chee Chong, director of the financial consultancy firm Kairos Corporate Advisory, as its interim judicial manager.

With almost four decades’ experience in a corporate finance advisory capacity, Chong has performed the role of judicial manager in a range of companies that have undergone restructuring:

With [Chong’s] experience and track record, we [Hodlnaut] believe he will be able to execute our recovery plan and restructure the business effectively.

Hodlnaut announcement
Categories
Crypto News Enjin Coin EOS HedgeTrade Market Analysis Uniswap

Top 3 Coins to Watch Today: EOS, ENJ, UNI – August 19 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. Eos (EOS)

EOS is a platform designed to allow developers to build decentralised apps. The project’s goal is relatively simple: to make it as straightforward as possible for programmers to embrace blockchain technology and ensure the network is easier to use than rivals. As a result, tools and a range of educational resources are provided to support developers who want to build functional apps quickly. EOS also aims to improve the experience for users and businesses. While the project tries to deliver greater security and less friction for consumers, it also vies to unlock flexibility and compliance for enterprises.

EOS Price Analysis

At the time of writing, EOS is ranked the 40th cryptocurrency globally and the current price is US$1.45. Let’s take a look at the chart below for price analysis:

Source: TradingView

EOS has plummeted nearly 75% from its April 2022 highs and almost 90% from its May 2021 all-time high.

The closest resistance overlaps with the 8 EMA near $1.60, where the daily chart shows inefficient trading. This level rejected the price’s first retest on May 13.

Slightly higher, $1.78 offers the next noteworthy resistance. This area was inefficiently traded and overlaps with the last significant swing low in mid-March.

Last week, the price bounced from support near $1.30, which could provide support again. This level shows inefficient trading on the monthly chart and is near the midpoint of September 2017’s accumulation.

If this support breaks, bulls could find support near $1.24. This level is at the bottom of an inefficiently traded area on the monthly and weekly charts. It’s also the high point of October 2017’s accumulation range. However, eager bidders should be cautious as a move this low may be targeting bulls’ stops under the swing low at $1.12.

2. 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 75th cryptocurrency globally and the current price is US$0.6509. Let’s take a look at the chart below for price analysis:

Source: TradingView

ENJ spent Q2 ranging between 31% over and 23% below. The price is currently consolidating between adjacent resistance and support at $0.6045 with no clear higher-timeframe trend. A strong move over the monthly open could signal a run to resistance beginning near $0.7295. 

This move would likely target the swing high at $0.7612 and relatively equal highs near $0.8349. A sustained bullish trend could reach up to the monthly high near $0.9032.

Bulls may see a sweep of the relatively equal lows near $0.5532 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 $0.4835 and $0.4150.

3. 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 17th cryptocurrency globally and the current price is US$7.91. Let’s take a look at the chart below for price analysis:

Source: TradingView

UNI‘s 70% retracement from its Q2 highs set a low near $4.20 during its consolidation that began in early June.

Relatively equal highs near $8.00 could be the current target if the price breaks through resistance beginning near $8.67. Bullish continuation may reach through the next significant swing high near $9.35 into the daily gap near $10.50.

If bullish strength continues, the zones just below the monthly open near $10.88 and $11.35 could halt any retracement. 

A bearish shift in the market might seek the relatively equal lows near $6.90 into possible support near $6.12. If this down move occurs, the swing low near $5.20 and possible support near $4.80 may be the primary objective.

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
Crypto Art Crypto News NFTs

Justin Bieber and Paris Hilton Called Out for Shilling NFTs

US consumer watchdog group Truth in Advertising (TINA.org) has called out a list of 19 celebrities, including socialite Paris Hilton and pop star Justin Bieber, for shilling NFTs.

TINA alleges the promotion of NFTs on social media by big accounts creates a space that is “rife with deception”.

https://www.buzzfeednews.com/article/katienotopoulos/celebrities-warning-letters-nft-ftc
Paris Hilton (above) is on the list of NFT-shilling celebrities warned by TINA.

TINA Warns of ‘Undue Influence’

All 19 celebrities on the list have now received a letter from TINA reminding them that failing to “disclose material connections” on their promotions is in violation of US Federal Trade Commission guidelines.

Only 17 of the letters were sent out this week. Paris Hilton was one of those 17, having been extremely active about her NFT-related ventures of late. However, actor/producer Reese Witherspoon and Justin Bieber, an investor in the inBetweeners NFT project, received their letters in June. Bieber’s legal team has since denied wrongdoing yet vowed to update the posts.

The point TINA is working to make is that celebrities can unduly influence the value of collections in pitching them to impressionable would-be investors.

https://truthinadvertising.org/team/bonnie-patten/

When it comes to NFTs, some celebrities are able to take financial risks due to their wealth, but many vulnerable consumers don’t have that luxury … Consumers deserve to understand the full picture behind a celebrity endorsement so they can make fully informed decisions on whether or not to invest in NFTs.

Bonnie Patten, executive director, Truth in Advertising

There is immense volatility and financial risk for fans of celebrities who choose to invest in speculative digital assets without knowing all the details, TINA says. While the 19 letters dispatched serve as a gentle reminder, TINA suggests it will take the matter further if celebrities are not more careful about how they promote their NFT interests.

Who Else Got Called Out?

Also on the list of celebrities who received the notice were rapper Snoop Dogg and pop culture icon Madonna, both of whom have been well immersed in the world of NFTs of late. In September last year, Snoop revealed that he owned US$17 million in NFTs when he announced he was the creative mind behind the Cozomo de’ Medici Twitter account, explaining his reasoning in creating an alter ego.

And who can forget Madonna’s recent collaboration with artist Beeple on a collection of NFT ‘soft porn‘? The series featured multiple animated videos of “Madonna-as-mother” in virtual-reality simulations in which she “births” robotic centipedes, butterflies, and even a tree. It was a collection that left nothing to the imagination.

Categories
Banking Celsius Crypto News DeFi

Celsius Has a $2 Billion Hole, on Track to be Out of Cash by October

Crippled crypto lending platform Celsius, which filed for bankruptcy in July, appears to be in an even worse financial position than previously thought, with papers filed this week revealing it may run out of money completely by October:

The papers filed in the US Bankruptcy Court for the Southern District of New York also showed that the lender holds US$2.8 billion less in crypto assets than it owes to depositors, leaving many users of the platform worried they may lose their deposits.

Celsius’ Books Don’t Make For Pleasant Reading

Celsius’ latest financial disclosure showed it had an opening cash balance of just under US$130 million in early August. The filing forecasts operating expenses and other costs to run to US$137 million over the next three months, meaning the lender will be in the red by the end of October.

The filing also showed that Celsius’ crypto liabilities to depositors exceed US$6.6 billion, while it only actually holds US$3.3 billion in crypto assets. 

The US$2.8 billion shortfall is largely due to deficits in the lender’s holdings of BTC, ETH and USDC. According to its financial disclosure, Celsius is more than US$2 billion short of BTC, over US$1 billion short of ETH and US$666 million short of USDC. These deficits are partially offset by its holdings of stETH, WBTC and its governance token, CEL:

Details of Celsius’ budget including its liabilities, deployment and assets, sourced from documents filed as part of US bankruptcy proceedings.

Could Celsius Sell CEL to Help Itself?

Celsius’ financial disclosure shows the lender holds 658 million of its CEL token of which 279 million are owed to customers, which leaves the lender with 379 million tokens. 

In the document CEL is valued at US$1 but the token has recently been the target of a social media-driven short squeeze, resulting in its price increasing significantly. According to CoinGecko, CEL was changing hands at US$2.45 at the time of writing – meaning Celsius’ CEL assets are notionally worth a lot more than the filing suggested.

So, what’s stopping Celsius selling its CEL tokens to help raise funds to pay its liabilities? Well, almost all circulating CEL is locked on Celsius itself. If the lender were to sell large quantities, the token’s value would likely collapse, leaving Celsius’ books in an even more dismal state.

In a cynical twist, crypto security firm Arkham Intelligence has evidence that it believes shows Celsius CEO Alex Mashinsky sold sizeable quantities of CEL via multiple transactions throughout May and August of this year. If true, this would mean the Celsius chief executive was actively dumping against the community-driven short squeeze to serve his own interests.

Categories
ASX Australia Blockchain Crypto News

ASX Tokenised Asset Trading Inches Closer to Reality

At last, progress towards tokenised asset trading by the Australian Securities Exchange (ASX) has taken a step forward rather than a step back. A test pilot has been successfully completed with the help of Zerocap, demonstrating how ASX-listed companies could store and trade on the exchange:

It’s Getting Closer

Thanks to Zerocap and its Synfini settlement project, the ASX was able to bridge its custody infrastructure to the platform for trial purposes. Doing so permits the trading and clearing of Ethereum-based tokenised assets.

This recent test pilot is only one part of ASX’s distributed ledger technology (DLT)-based settlement project. Synfini launched in November as a separate initiative from the blockchain-based CHESS (Clearing House Electronic Subregister System) replacement, an upgrade that has been the bane of the project’s existence for some time. The platform allows users access to DLT infrastructure, ledger services and data hosting, while also permitting them to build blockchain applications from it:

According to Zerocap CEO Ryan McCall, final legal approval has been given to launch Synfini asset tokenisation and trading services. He believes there is high interest from organisations who wish to explore tokenisation, along with trade bonds, carbon credits and funds.

https://www.linkedin.com/in/ryanmccall1/overlay/photo/

Thinking beyond Bitcoin, Ethereum and other crypto assets, the tokenisation of bonds, equities, property, carbon credits, private equity, and anything that’s essentially illiquid, there’s a strong value proposition here that we can essentially tokenise any asset and bridge that into the ASX ecosystem.

Ryan McCall, co-founder and CEO, Zerocap

McCall also has faith that Synfini will be a popular tool among a wide range of firms due to the platform’s user-friendly interface and refined variables.

Plagued by Delays

The ASX’s immersion with blockchain has previously been delayed a whopping five times. The most recent of these delays was blamed on issues with blockchain replacement for the clearing system CHESS, and was awaiting an independent review. A spokesperson for ASX stated that “more development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application”.

The delay to CHESS prior to this was blamed on the firm building the software. At that stage, the project was believed to have already cost ASX A$187 million.