Market Crash? FTX Gets Clearance to Liquidate Over $3 Billion in Crypto Assets

Leonardo Perez
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Market Crash? FTX Gets Clearance to Liquidate Over $3 Billion in Crypto Assets

This ruling gives FTX permission to trade, stake and hedge its digital assets.

It is no secret that the cryptocurrency market is particularly volatile. The announcement of a major liquidation plan could trigger a panic sell-off that would cause prices to drop sharply. By avoiding prior public notification, FTX may attempt to minimize this risk.

Collapsed cryptocurrency exchange FTX received approval from the US Bankruptcy Court this week for the District of Delaware to sell and invest its cryptocurrency holdings, valued at more than $3 billion, to settle its debt to the creditors, leading some analysts to believe the funds will be dumped into the market. Judge John Dorsey gave the green light, side-stepping two previous major concerns against the plan.

FTX’s cryptocurrency assets are believed to exceed $3.4 billion. An attorney, on behalf of FTX’s ad hoc client committee, seconded the motion. Meanwhile, a representative of the unsecured creditors stated that all parties were interested in speeding up the procedure.

As previously reported, a recent court filing revealed that the estate of the once-giant cryptocurrency exchange, which filed for bankruptcy in November after collapsing due to a bank run, has revealed assets totaling approximately $7 billion.

Of these assets, the exchange’s holdings include $1.16 billion in Solana tokens ($SOL) and $560 million in Bitcoin ($BTC). The documents also detail billions in payments the company made to top executives, including founder Sam Bankman-Fried.

More Insights

On September 11, user @StackerSatoshi posted on X the following:

“A new filing by FTX provides an updated look into what coins they hold. These are their 10 largest holdings which make up ~72% of their crypto. The additional ~28% are made up of 400+ other tokens.”

Filings reveal that the company has secured $1.5 billion in cash, on top of the $1.1 billion it had as of Nov. 11. It has $3.4 billion in cryptocurrencies, valued at the end of August, without taking into account its collection of over 1,300 lesser-known tokens, including MAPS and serum (SRM).

FTX’s liquidation of its digital assets could significantly impact the cryptocurrency market. However, popular cryptocurrency analyst Lark Davis noted that up to $50 million in digital assets can be sold per week and that FTX must notify its activities in writing. On September 13, Davies posted the following on X:

“FTX has received court approval to sell off its crypto assets. This includes

A fat billy of SOL (about 85% vesting, 15% liquid)

Half billy of BTC all liquid

200 milly ETH all liquid.

Some other stuff

– Can sell is 50 million per week.

– Must give written notice

= Nothing Burger.”

The cryptocurrency market, the analyst added, is capable of absorbing $50 million of additional selling pressure per week, which could significantly reduce or even nullify the impact of FTX sales on the market.

Another Expert’s Opinion

The sales come at a time of economic uncertainty, with well-known economist Peter Schiff recently revealing growing concerns regarding the stability of the US dollar. He pointed out that “there is going to be a massive crisis” that will cause “the economy to plummet.”

Schiff suggested that investors should escape from the US dollar as “there will soon be an avalanche with a rush to get out of the dollar.” The US national debt has ballooned to more than $33 trillion, and for Schiff the repercussions of this will soon become apparent when interest on it becomes the largest government expense.

By Leonardo Pérez

Self-custody Will Normalize Crypto Tax Payments, According to Recap

Audy Castañeda
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Self-custody Will Normalize Crypto Tax Payments, According to Recap

According to Dan Howitt of crypto tax service provider Recap, people should be able to pay taxes pseudonymously. Cryptocurrency investors can protect themselves from collapses of major cryptocurrency companies by holding their own cryptocurrencies. Several regimes are working on new decentralized financial tax regulations that provide investors with enormous returns.

The collapse of major crypto companies last year made investors realize the harsh reality of cryptocurrency custody. Not only did customers lose access to their cryptocurrencies on the exchanges when they failed, but investors also became responsible for complying with tax laws overseen by the Internal Revenue Service (IRS) even though they did not possess the keys to their cryptocurrencies.

Just a few weeks ago, the US Treasury Department proposed new laws to detect crypto tax evaders and make it easier for compliant citizens to file returns. Under the tax bill, exchanges must report gross revenue from transactions. Later, they would have to report the cost basis, or how much customers paid for the assets they later sold. The difference between the investor’s cost base and the price at which he sold the assets would constitute taxable income.

Despite their best efforts, investors who hold cryptocurrencies in non-custodial wallets have historically faced nightmares trying to track profits that span multiple decentralized finance (DeFi) applications. Having service providers help track transactions isn’t always helpful, as different providers can present wildly different results, says tax expert Clinton Donnelly.

Crypto Investors Can Use Self-Custody Until It Comes into Effect

It is important to start balancing the need for disclosure with the privacy that cryptocurrency enthusiasts crave. This is according to the CEO and co-founder of crypto tax software company Recap, Dan Howitt.

Additionally, it is essential to educate users on how to set up their crypto self-custody, which, for the most part, has proven too daunting, leading investors to give up autonomy for the sake of usability.

Tracking profits and losses can also require a lot of work, although self-custody is the only way to preserve cryptocurrencies’ censorship-resistance goals and protect against future crashes, according to Howitt.

With more education, self-custody can help clients obey crypto tax laws without revealing sensitive information. But first, an introduction to why DeFi transactions are so difficult to trace.

Regulators Could Force Data Collection in Case of Noncompliance

Danny Chong, CEO of Tranchess, a DeFi yield platform, recently told BeInCrypto that DeFi needs regulations to shape its future. But is the delivery of private information the price we have to pay?

The proposed US Crypto Asset National Security Enhancement Act of 2023 requires parties that control or have invested in a DeFi protocol to collect customer information. It would also give the Treasury additional powers to pursue money laundering carried out outside the traditional financial system.

International anti-money laundering bodies, such as the Financial Action Task Force (FATF), recommend anti-money laundering rules that European Union regulators saw fit to include in their cryptocurrency legislation, the Currency Markets Bill. Cryptoassets (MiCA).

MiCA, which will go into effect in 2024, requires exchanges to register parties on both ends of the transaction. It will do so regardless of the amount exchanged.

Nevertheless, until MiCA and other laws come into effect, it’s unclear how popular the service will be. From a technical point of view, Recap could theoretically be affected by changes to the Ethereum blockchain.

By Audy Castaneda

“Environmental Concerns” Resurface Against Bitcoin Mining

Leonardo Perez
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“Environmental Concerns” Resurface Against Bitcoin Mining

Another week passes by for the Bitcoin mining business amid new challenges from environmentalists against one of the industries most attacked by the green lobby in the US.

This week, attacks against Bitcoin mining for alleged environmental pollution saw a revival in the United States. However, now the sector has greater clarity, which shows that it complies with ESG standards. The latter was admitted by the Center for Alternative Finance at the University of Cambridge. Its specialists recently admitted to having exaggerated in their measurement of mining consumption.

In any case, environmental groups seem dissatisfied and this week some of the most combative ones were reborn in New York. Following are the three most important news of the week in the mining environment.

New York Crypto Company Renews and Revives Environmental Concerns

Environmentalists are putting pressure on New York authorities to deny permit renewal for a Bitcoin mining facility in North Tonawanda. They allege the operation threatens quality of life and undermines the state’s climate goals. Earthjustice joined local residents in this effort, highlighting concerns about energy consumption, noise pollution, and greenhouse gas emissions.

The company in question, Digihost, operates on the site of a former power plant and claims to be part of the climate solution. However, critics argue that it plans to emit more than 300,000 metric tons of greenhouse gas emissions annually. Despite this, some recent reports have shown that Bitcoin miners can have a positive impact on the network.

Activists began a letter-writing campaign calling for the permit to be rejected. They argue that cryptocurrency mining relies on fossil fuels rather than clean energy.

Implications of the Hut 8 Merger with US Bitcoin Corp

Hut 8 Mining is in the process of merging with US Bitcoin Corp in an “all-share merger.” This merger aims to bolster Hut 8’s Bitcoin mining capacity and further diversify its revenue streams. In this way, this could make it the company with “possibly the most diversified business model among its public counterparts.”

The operation, whose shareholder voting period ends this month, will lead to the creation of Hut 8 Corp. based in the United States and listed on the Nasdaq and the Toronto Stock Exchange. The merger has been supported by advisors and could be completed by September 30 if all necessary approvals are obtained.

This merger is seen as a strategic move for Hut 8, as it will allow it to diversify its operations and expand its mining capacity. Additionally, Hut 8 plans to leverage US Bitcoin Corp’s managed infrastructure and hosting operations as part of its diversification strategy.

Bloomberg Analyst Considers Pollution Accusation Against Mining Exaggerated

According to Bloomberg analyst Jamie Coutts, carbon dioxide equivalent emissions from Bitcoin mining have decreased by 37.5% since their peak in 2021, reaching 60.9 megatons. This contradicts the common belief that Bitcoin is a huge energy consumer and contributes to climate change. China’s mining ban likely led miners to turn to renewable energy sources, which contributed to this decline.

Coutts argues that rather than being a burden on decarburization, Bitcoin could be beneficial. This considering that mining promotes the transition to renewable energies. He also notes that some previous estimates of Bitcoin’s energy consumption, such as that from the Cambridge Center for Alternative Finance, did not take into account off-grid energy sources and miners’ shift to cleaner sources.

However, the issue of Bitcoin’s energy consumption is still controversial. Consequently, some estimates suggest that the industry remains a large consumer of fossil fuels.

By Leonardo Pérez

Bias Remains Negative on Bitcoin and Ethereum Ahead of Crucial Fed Meeting

Audy Castañeda
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Bias Remains Negative on Bitcoin and Ethereum Ahead of Crucial Fed Meeting

The uncertainty could end in the coming days, as a significant economic event for all global markets will take place this week.

The Federal Reserve will meet on Wednesday night and although the market almost certainly anticipates that the Fed will refrain from raising rates, the event is likely to significantly impact BTC and ETH.

According to CME’s FedWatch tool, investors are pricing in a 98% probability that the Federal Reserve will not raise rates this week. On the other hand, almost a third of market participants expect the central bank to resume rate hikes at its next meeting scheduled for November 1.

In this context, the details of Jerome Powell’s statements on Wednesday, as well as the new forecasts The Federal Reserve’s economic forecasts and the dot plot should help clarify these expectations.

Should the Fed suggest that it will raise rates again before the end of the year, the dollar should benefit. to the detriment of Bitcoin. If, on the other hand, the details provided by the Fed lead investors to believe that the rise in US rates is over, bulls should take control of the cryptocurrency.

As for specific news from the world of digital assets, traders will remain attentive to any new comments on the various BTC and ETH ETF proposals, cash currently being investigated by the SEC, the case of the sale of cryptocurrencies from the bankrupt platform FTX, which was at the origin of the market crash.

The cryptocurrencies observed last Monday will also have to be monitored, although the company has clarified that it will be careful not to impact the market with these liquidations.

From the point of view of technical analysis, it is worth noting that Bitcoin and Ethereum continue to show underlying bearish trends.

Will Bitcoin React Late to this Important Bearish Signal?

The cryptocurrency sent a particularly important negative signal last week, when its 50-day moving average crossed below its 200-day moving average, a signal commonly known as a “death cross.”

However, this signal has so far had no effect. However, it is not uncommon for BTC to rise immediately after recording a death cross, only to then crash a little later validating the signal with a time delay.

The cryptocurrency is currently in contact with a bearish trend line extending from the July peak, implying a risk of an imminent return to the decline.

In this case, the $26,000 and $25,000 areas will be the first potential supports to consider. If Bitcoin takes the upward path and manages to cross the aforementioned trend line (currently at $27,000), the next key hurdle will be the $28,000 area.

Can Ethereum Stay Above $1500 This Week?

The ETH/USD price presents a similar profile to that of Bitcoin, except that its death cross signal was recorded a week earlier, and that it has already partially produced its effect, resulting in a low of $1,530 last week, the lowest in 6 months.

In the immediate future, the cryptocurrency faces potential support at $1600 after which last week’s low will be in sight, ahead of the key threshold of $1500.

If ETH takes the upward path, the $1,700 threshold and the 50-day moving average at $1,711 will form the first hurdle to watch, before the August peak at $1,745.

By Audy Castaneda

Crypto Marketing Ads Can Increase Attention by 65%

Leonardo Perez
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0
Crypto Marketing Ads Can Increase Attention by 65%

A new study highlights the effectiveness of pre-bid optimization, showing a 65% increase in attention scores. Crypto marketers can leverage this method to improve audience engagement and build trust. Pre-bid optimization also promotes environmental responsibility by reducing carbon emissions by 28%.

In crypto marketing, companies continually look for strategies that catch the attention of users and ensure they get the best value for their advertising budget.

As cryptocurrencies and Blockchain technologies gain traction, understanding how to effectively market within this industry becomes paramount.

Increased Ad Attention by 65%

A recent study reveals a technique that could be a game-changer for cryptocurrency advertisers and marketers. A new report from MAGNA Media Trials and Adlook has presented some compelling findings.

MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies for agency teams and clients.

According to MAGNA’s report, when video ads were optimized before a programmatic bid, a staggering 65% increase in attention was seen, measured through Adelaide Attention Unit (AU) scores.

The AU metric leverages deep learning to measure the likelihood that an ad will attract attention, evaluating hundreds of quality signals, eye-tracking data, and results. This pre-bid optimization model contrasts with the conventional post-bid method, where campaigns are improved after the bid. This traditional approach allows advertisers to measure viewability and positioning of content for subsequent ad placements.

On the other hand, the novelty of pre-bid optimization lies in its ability to consider the AU metrics of individual impressions even before the ad appears on a web page, to subsequently boost attention metrics and guarantee an investment more economical advertising.

Pre-bid is specifically tailored for header bidding, a process where publishers offer their ad inventory to multiple demand sources simultaneously, allowing them to compete in real-time. Post-bid, on the other hand, is a way for publishers to directly connect with multiple demand partners and run simultaneous auctions to get their best bids — after the ad server delivered the creative.

Big Savings on Crypto Marketing

Crypto marketers, in particular, could take advantage of this method to strengthen their strategies. In an industry where public perception, trust and awareness are crucial, capturing and maintaining consumer attention becomes vital. In fact, this novel approach offers cryptocurrency traders a way to reach and engage their target audience more efficiently.

In the broader digital advertising market, the implications of this study are far-reaching. Advertisers witnessed an 18% cost savings in CPM for display ads that underwent pre-bid optimization. Additionally, pre-bid optimized video ads saw a 42% drop in costs per full video.

Advertisements that Protect the Environment

As the urgency to reduce the carbon footprint intensifies, the integration of emissions data into this optimization process indicated a 28% drop in emissions per impression. These advances highlight that efficiency does not have to come at the expense of the environment.

The content where these ads appear also shows a clear domino effect. Pre-bid optimization reduces reliance on made-for-advertising (MFA) websites, known for their low-quality content and high carbon emissions.

The industry’s move away from these sites, motivated by a desire for quality and responsible investment, underscores a shift in priorities. This paradigm shift in ad optimization emphasizes the importance of strategic foresight in the programmatic space. Therefore, crypto advertisers can ride this wave and ensure their campaigns capture attention in the digital age.

By Leonardo Pérez

Paradox in the Cryptocurrency Market: Millionaire Hacks vs. The Integrity of an Anonymous Miner

Audy Castañeda
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0
Paradox in the Cryptocurrency Market: Millionaire Hacks vs. The Integrity of an Anonymous Miner

The cryptocurrency market has been involved in a recent paradox between million-dollar hacks and acts of integrity.

In today’s fast news, there is information related to unfortunate million-dollar hacks in recent days in the cryptocurrency market. In addition, the integrity story of an anonymous Bitcoin miner who returned an overpayment of a fee to Paxos is added.

Lazarus, the North Korean Hacking Group, Has Stolen Almost $240 Million in Cryptocurrencies

Elliptic, a blockchain surveillance company, presented a surprising report revealing the activities of the infamous North Korean hacker group known as Lazarus, which in recent months has intensified its attacks.

This group has been linked to five major cryptocurrency attacks in the last three months. The most recent of these, according to blockchain data, affected the global cryptocurrency exchange CoinEx, which was hacked this week with an estimated value of $70 million.

In total, Lazarus, originating from North Korea, is estimated to have stolen almost $240 million in cryptocurrency in the last 104 days.

Mark Cuban Victim of a Surprising Cryptocurrency Hack

Mark Cuban, the famous investor and owner of the Dallas Mavericks, has unfortunately been surprised by the theft of almost USD 900,000 in cryptocurrencies. These have been hacked from one of their online wallets. Blockchain researcher Wazz was the first to notice this hack on September 15, when he detected suspicious activity in the wallet that Mark Cuban had not used in months. Wazz post on X read like this: “Lmao, did Mark Cuban’s wallet just get drained? Wallet inactive for 160 days and all assets just moved.”

Bitcoin Miner Takes Integrity Act and Returns Extra Commissions Accidentally Paid to Paxos

Recently, a Bitcoin miner received a commission of 19.8 BTC, shortly after realizing an error when he saw how a Bitcoin transaction paid more than $500,000 in commissions to transfer just $2,000. While the average network rate was just USD 2.

Speculation immediately ran high, with some suggesting the transaction could have been the result of a simple mistake. How to copy and paste data into the commission field without proper review.

However, the Bitcoin miner returned the funds to the blockchain infrastructure company, Paxos. After the company claimed it had made the costly mistake. This story reminds us that, even in the midst of so many hackers and digital thefts, values ​​such as integrity and responsibility remain fundamental.

As @mempool posted on X on September 15, “F2Pool have sent the 19.82108632 BTC fee overpayment back to Paxos.”

Binance.US’ Brian Schroder Did Not Resign, But He Has Taken a Break

Changpeng Zhao has clarified what has been happening with Brian Shroder, CEO of Binance.US, amid speculation. CZ noted that Shroder is taking a “deserved break” after a successful time at the company.

Cz’s post on X explains it further:

“There has been some speculation regarding recent management changes at @BinanceUS. Brian Shroder is taking a deserved break after accomplishing what he set out to do when he joined two years ago. Under his leadership, http://Binance.US raised capital, improved its product and service offerings, solidified internal processes, and gained significant market share, all of which helped to build a more resilient company for the benefit of customers. We are grateful for his contributions.”

Binance.US has recently come under the spotlight due to the resignation of several high-level executives amid regulatory lawsuits. In a statement on Twitter on September 15, CZ asked everyone to “ignore the FUD” around the changes in senior management.

By Audy Castaneda

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