Asia Offers Hope to Solana and Cardano Amid SEC Scrutiny

Audy Castañeda
-
0
<strong>Asia Offers Hope to Solana and Cardano Amid SEC Scrutiny</strong>

Solana and Cardano are listed as tradable digital assets in Indonesia. SOL and ADA experienced price recoveries despite persistent downtrends.

Solana [SOL] and Cardano [ADA] have found themselves embroiled in scrutiny from the US Securities and Exchange Commission. However, a ray of hope emerged from recent events in Asia, which could offer some relief for assets and their owners. While the regulatory situation in the US remains uncertain and unclear, the news from Asia brings a new breeze of optimism.

Solana and Cardano Find Relief in Asia

In a remarkable turn of events, Solana and Cardano were classified as securities by the US Securities and Exchange Commission. This caused a significant hit to their prices and left their future uncertain.

However, a recent development in Asia, particularly Indonesia, has shed a ray of hope on the situation. A WuBlockchain report revealed that the Indonesian government designated SOL and ADA as tradable assets. This signaled a contrasting outlook, as compared to the US.

This announcement from Indonesia brings several positive implications for Solana and Cardano. First, it would give cryptocurrency traders within the country the freedom to trade these assets without the same level of scrutiny that the US faces.

Second, it provided a degree of regulatory clarity that was previously lacking, which could encourage increased business activities. Surprisingly, the Indonesian government has listed 501 cryptocurrencies, encompassing the majority of assets classified as securities by the US SEC.

Furthermore, the Indonesian news offered renewed optimism for SOL and ADA and their respective headlines. It presented a favorable business environment and indicated a divergence of regulatory perspectives between different regions. This could affect the market dynamics of these cryptocurrencies.

Immediate reaction?

Analysis of the active user metric on DefiLlama showed interesting trends in user activity for Solana and Cardano. Starting with Solana, there was a notable increase in active users during May, although the numbers subsequently experienced a decline.

On average, the network maintained approximately 100,000 active users. Despite the news of the SEC’s involvement, which usually puts a damper on user engagement, engagement with Solana’s network remained relatively strong. So far, there were around 93,000 active users.

Shifting the focus to Cardano, the active direction metric on DefiLlama revealed a more fluctuating pattern. The number of active addresses experienced peaks and troughs over time. However, there has been a decline in active addresses recently, with approximately 48,000 active addresses registered.

Solana and Cardano Price Trend

Examining Solana’s daily time frame chart, a noticeable downtrend could be observed. However, there was currently a recovery underway, characterized by consecutive uptrends.

Recently, SOL was trading around $15.7, seeing a slight increase in value. Despite this positive momentum, the overall trend for the asset remained bearish, as indicated by its Relative Strength Index (RSI).

Similarly, a significant drop in its price could be observed on Cardano’s daily time-frame chart. However, like Solana, ADA was also currently in the process of price recovery.

So far, ADA was trading around $0.26, reflecting a slight increase in value. Despite the recent price rise, ADA’s RSI indicated that it was still in the oversold zone.

By Audy Castaneda

Bitcoin Mining: Weekly Roundup of Impact News

Audy Castañeda
-
0
<strong>Bitcoin Mining: Weekly Roundup of Impact News</strong>

This week, Bitcoin mining brought interesting news for the sector, among which the new increase in difficulty stands out.

Bitcoin mining has brought highly relevant news in the last 7 days, highlighting the collection of mining companies in Russia and the increase in the difficulty of the network. Despite the uncertainty generated by the ups and downs in the price of Bitcoin, the mining sector continues to be a fundamental pillar in the crypto ecosystem.

Below, are the five most outstanding news of the week in the field of Bitcoin mining.

New All-Time Peak in Network Difficulty

As expected, Bitcoin mining difficulty reached a new all-time high, despite challenging conditions facing the industry and the broader crypto market. Last Wednesday, the network difficulty experienced its most recent automatic adjustment at block 794.304, marking the third consecutive increase in complexity with an ATH.

Btc.com calculates that the next adjustment, which will take place in a little over a week, will also be an ATH. In this sense, it would be a growth of 1.18% that would leave the difficulty very close to 53 T.

Russian Miners Generated $4 Billion Annual Revenue

The Bitcoin mining sector brought a total equivalent of $4 billion to local Russian companies. This was announced by the country’s finance ministry during the St. Petersburg Economic Forum.

The representative of that portfolio in the forum, Ivan Chebeskov, quoted in specialized media, added that the taxes collected from the sector contributed $240 million to the budget.

Be that as it may, the business remains active in the country, and dozens of companies take advantage of the favorable conditions for their operations. Among these conditions, the low cost of energy, the low temperatures and the friendly policies of the authorities stand out.

Alert Issued by Marathon Digital

The Bitcoin mining company, Marathon, launched a recent alert about fraudulent activities. In particular, scammers would be taking advantage of the company’s name to offer mining services to private investors.

The directive asks people who have these types of agreements with fraudulent representatives to contact the authorities. In the statement, the mining company assures that it is in active cooperation with the authorities to provide all the necessary information.

Blockstream ASIC launch in 2024

Blockstream has announced a tentative date for its long-awaited Bitcoin mining machine. Therefore, the ASIC will be released during the second half of 2024 in an attempt to capitalize on the high demand for equipment after the halving.

The original launch date for this miner was 2022. Now, the company seems ready to bring its equipment to market, according to its CEO, Adam Back.

Bitmain S19 Teams Dominate the Hashrate

The global hash power of Bitcoin mining is led by Bitmain’s S19 teams. These are powerful machines capable of mining cryptocurrencies with considerable computing power, some of them up to 150 TH/s. This high hashrate allows them to be the fundamental piece in the world hash of that cryptocurrency.

Three models of this series encompass no less than 76% of all the computing power of the network of the most important digital currency. The Antminer S19j model alone is equivalent to 34.3% of the global hashrate, notes the report. In parallel, the S19 and S19 XP make up 28.1% and 13.7% in the same respective order.

By Audy Castaneda

Weekly Report: Bitcoin Whales Boost Trade Volume

Audy Castañeda
-
0
<strong>Weekly Report: Bitcoin Whales Boost Trade Volume</strong>

This week, the Bitcoin whales increased the volume of coin trading considerably, as compared to the previous week.

Over the past 7 days, Bitcoin whales are up 47.35% in trading volume compared to the week immediately prior. This is a positive sign since it improves the prospect of stability of the digital currency despite the complex circumstances.

The week ending June 11, amid the SEC’s crackdown on exchanges, the whales maintained a high average number of shipments to those platforms. In fact, more than 63% of all shipments back then were made to CEXs. This week, the percentage evened out slightly, but the volume picked up.

The latter says good things about the state of crypto market trading. On the other hand, it should not be forgotten that for this report only individual transactions of 400 BTC or more are taken. Likewise, the data used was taken from Whale Alert and WhaleBot Alerts. These data are public and can be verified online.

Increased Trade Volume by Bitcoin Whales

The fact that the Bitcoin whales increased the number of coins moved this week is of singular importance. This comes at a time when the crypto market needed more stability amid conditions that typically cause volatility.

In fact, during the last few days, the price of the pioneer digital currency threatened to lose the support of 25K. However, it was able to hold out, at least for the moment, and made up much of the lost ground. During the last 7 days, the growth of the value of BTC is almost +3%.

One aspect that helped the price after the SEC shakeup was BlackRock’s decision to apply for a Bitcoin spot ETF. That move by the powerful fund manager restored investor confidence. Although the regulatory agency is unlikely to approve the application, BlackRock’s interest means a lot.

So far, the price of digital currency moves in an indeterminate way. According to VipTrader, on the downside, the price could go back to 25K. At the other extreme, it is difficult for it to reach 30K in the medium term.

This cautious sentiment, though, appears not to be shared by the Bitcoin whales, which have rallied significantly in volume this week.

BTC Movements This Week

Bitcoin whales seem unwilling to let trading in digital currencies cool off. This week, those big holders moved 47.35% more coins than the week before. It is worth mentioning that transactions between 400 and 600 bitcoins were abundant, making up for the evidently strong movement during the first half of the week. Then large transactions predominated.

This week the high amount of 485,000 BTC, added exclusively in individual transactions of +400 BTC, was traded. Out of that amount, a total of 278,956 coins were sent to the wallets of centralized trading platforms or exchanges. This represents 57.52% of all movements made during the week.

On the other hand, a total of 199,046 bitcoins moved towards unknown portfolios, that is, accumulation. This represents 41.04% of all the coins moved in the week. The remaining 1.44% or 6,998 BTC moved between exchanges, which makes it possible to guess that there was some arbitrage movement.

The fact that the Bitcoin whales increased the volume of trade is presented as a large sign of the spirit in the market. It should not be forgotten that whales are not the only element that impacts the price of BTC.

By Audy Castaneda

Grayscale Bitcoin Trust Approaches 2023 Highs after BlackRock ETF Filing

Marina Meza
-
0
Grayscale Bitcoin Trust Approaches 2023 Highs after BlackRock ETF Filing

BlackRock’s Bitcoin (BTC) investment plans appear to have sparked a rally in a well-known institutional investment vehicle in the cryptocurrency. Data from monitoring resource CoinGlass shows that on June 17th, the Grayscale Bitcoin Trust (GBTC) nearly hit new 2023 highs.

GBTC’s “Premium” Stands at below -37%

Late last week, the Bitcoin market saw a slight improvement on news that BlackRock, the world’s largest asset manager, had filed to launch a commercial Bitcoin exchange-traded fund (ETF).

Though not yet available in the U.S., a commercial ETF from an entity as strong as BlackRock should have a better chance of getting out of the legal problem it entails, or so some think.

Meanwhile, signs of optimism beyond sentiment are becoming clearer, with GBTC long trading at a significant discount to the spot price of BTC, which is rising.

According to CoinGlass, that discount, or negative “premium,” used to characterize GBTC stock prices, currently stands at -36.6%.

While there are still deep discounts, GBTC trades closer to zero than at almost any other time this year. On June 13th, for example, the discount was approaching -44%., this is shown in a GBTC premium versus asset holdings versus the BTC/USD pair chart published by CoinGlass.

Adam Cochran, a partner at cash-risk firm Cinneamhain Ventures wrote in part of a comment on Twitter over the weekend that if the Blackrock ETF gets approved, the real winner here is going to be GBTC, that is due because Blackrock will show the way to conversion, and GBTC’s 40%+ discount will settle on the excellent part of industry growth.

Cochran believes that BlackRock’s offering has a “good chance” of winning approval from U.S. regulators as this is a very different structure than other efforts by a non-losing giant. Trust redeemable out of 30 with redemptions (unlike GBTC) + rule change proposal filing. They came to get away with it.

ARK Has yet to Join recent Buyers

BlackRock’s move is already caught up in its own controversy, as market commentators argue over whether it is, in fact, an ETF.

Some argue that it will simply be a trust equivalent to GBTC, while others, including Cochran, take a more distinct view.

Cory Klippsten, CEO of Bitcoin financial services firm Swan summed up that it Can be called an ETF.

1933 Securities Act filing under a Form S-1, not a Form N-1A (like 99% of exchange-traded ETFs), will be exchange-traded and redeemable to the issuer. We’ll have to wait to see if the SEC approves Blackrock’s commercial Bitcoin ETF.

Aside from that, investor interest in GBTC is growing among several investors. Among the avid buyers is hedge fund North Rock Electronic. It has been observed a more steady accumulation of the Grayscale trusts over the past few weeks, according to an announcement made after the BlackRock presentation.

RR (Risk/Reward Ratio) looks very biased at current levels. Up 50% if Grayscale wins, this is what is expected, and a minimum down if it loses. This presentation could be a catalyst to see them adjust to more rational levels.

One of the largest holders that have yet to increase its exposure is ARK Invest, which continues to hold about 5.37 million GBTC shares. Data from Cathie’s ARK – a tracking website dedicated to Cathie Wood, CEO of ARK Spend – confirms that those holdings will gradually decline through 2023, this is shown in an ARK Commit’s holdings in GBTC graphic developed by Cathie’s ARK.

By Marina Meza

CoinDesk Tether Revelations Are Not Welcomed by USDT Issuer

Audy Castañeda
-
0
<strong>CoinDesk Tether Revelations Are Not Welcomed by USDT Issuer</strong>

On Saturday, CoinDesk, the crypto news portal, revealed information about some Tether banking relationships.

After a lengthy legal battle, crypto news portal CoinDesk has accessed internal documents related to Tether’s financial relationships. In a post, the portal published the relationship with some of the banking partners, as well as part of the endorsements of the USDT stablecoin. It is worth mentioning that much of the information is outdated.

In any case, the issuing company of the largest stablecoin in market capitalization did not take the news well. In a statement, the company warned about possible mishandling of sensitive information.

The document was accessed by the news portal through the Freedom of Information Law. The USDT broadcaster refused to provide them directly to the outlet, alleging that they contained sensitive information that could harm the company, its relationships, and its users.

Tether and CoinDesk Don’t Seem Like Good Friends

Internal documents with confidential company information held by CoinDesk are a matter of concern for Tether. Although the news outlet claims that it is studying the documents in order not to publish sensitive information, Tether does not seem convinced.

In fact, the company suggests that the recent demarcation of the USDT from the USD last Thursday could have been caused by leaks of the ceded documents. “We find it suspicious that today’s attack on USDT via DeFi and centralized exchanges occurred on the day the materials were delivered to CoinDesk. That synchronism raises questions,” the statement said.

The company claims to be aware that it “cannot count on fair coverage from CoinDesk.” It further points out that this news portal “often misrepresented Tether’s position in the market in favor of its main competitor.”

The company urges the media outlet to “put aside prejudice” against it. Consequently, that they do not publicly share information that has to do with clients, on the grounds that this could put people in the community in physical and digital danger.

The Dispute between the Media and the Company

So far, there has been no possibility to verify Tether’s accusations or CoinDesk’s intentions regarding that company or its rivals. The news portal stated its intention to make Tether endorsements public. With this, the doubts that were spread about the alleged unbacked issuance of USDT could be resolved.

On this last matter, the company reached an agreement in 2021 with the New York Attorney General’s Office to provide this information to the authorities.

Until then there was no news and Tether assures that it complied with all the obligations before the New York prosecutor. “Tether fully complied with that obligation, and there has been no suggestion that the disclosures were incomplete or that the reserves were ever inadequate,” they point out.

For CoinDesk, this was not enough and it requested the documents. Back then, the issuer of the stablecoin refused to provide them. The outlet’s response was to take them by force of law, specifically that of Freedom of Information.

The law favored CoinDesk and gave them access to Tether documents on its partners, endorsements, and status.

Some Information is Already Irrelevant

Some of the information about Tether reserves published by CoinDesk is currently irrelevant, that of the stablecoin backing, which was largely based on trade letters.

Recently, the company behind USDT reported that trade bill endorsements have been reduced to zero. Beyond all that, the company is concerned about CoinDesk’s relationship with its main competitor in the market.

If justified, Tether’s suspicions, in the worst-case scenario, could result in serious damage to the company. Otherwise, Tether’s fears may end up being unfounded.

By Audy Castaneda

Binance.US Settles with SEC Over US Operations Amid Ongoing Lawsuit

Audy Castañeda
-
0
<strong>Binance.US Settles with SEC Over US Operations Amid Ongoing Lawsuit</strong>

Said agreement allows the cryptocurrency company to continue its operations, even while it fights fraud charges imposed by the commission.

In the latest turn of events, Binance.US has reached a settlement with the United States Securities and Exchange Commission (SEC), allowing the cryptocurrency company to continue operations.

Originally, the SEC had filed for an injunction on June 6, seeking a temporary restraining order on Binance.US’s operations, along with a freeze on all assets on the trading platform.

However, Presiding Judge Amy Jackson refused to grant the order, instead ordering both sides to reach an agreement that would protect consumer assets, without necessarily shutting down the exchange.

According to an SEC press release yesterday, both sides finally reached an understanding and obtained court approval for its implementation. However, the initial lawsuit is still in court.

On June 5, the SEC imposed 13 charges against Binance.US, its global partner Binance, and its founder, Changpeng Zhao, accusing all parties of running “a network of deception.” These charges included “operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, as well as unregistered offering and selling of securities.”

Binance to Repatriate US Client Funds, Among Others

According to the SEC’s statement regarding its settlement with Binance.US and its co-defendants, all parties agree to “repatriate assets from the United States for the benefit of clients of the Binance.US crypto platform.”

Besides. Binance.US is mandated to hold all of its clients’ assets in the US pending a final order on the ongoing court case.

The US-based exchange is restricted from all kinds of expenses, except those for “ordinary course business expenses,” for which even the SEC must have oversight.

Finally, Binance.US is strictly prohibited from providing co-defendants, Binance or Changpeng Zhao, with any form of access to their client funds.

Commenting on this agreement, the Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, stated the need for these agreements reiterating the commission’s commitment to protecting US clients’ access to their investments.

“Since Changpeng Zhao and Binance are in control of client assets on the platforms, and have been able to combine client assets or divert client assets at will, as we have alleged, these bans are essential to protect investors’ assets,” he said.

“In addition, we ensured that US clients can withdraw their assets from the platform, while we work to resolve the alleged underlying misconduct and hold Zhao and the Binance entities accountable for their alleged violations of securities law.”

Binance.US Remains Resilient, Maintaining SEC Has No Evidence of Misuse of Funds

While acknowledging its recent settlement with the SEC, Binance.US has expressed a willingness to continually defend itself, stating that the SEC thus far had no evidence to support its allegations.

“There has never been any evidence presented by the SEC regarding the misuse of client assets. In fact, SEC lawyers admitted in court earlier this week, when questioned by the judge, that they had no evidence to suggest anything like this occurred,” Binance.US tweeted yesterday afternoon.

The US exchange also stated that its resolve remained intact, accusing the SEC of a “regulation by enforcement” tactic that had no place in the US justice system.

By Audy Castaneda

1...474475476...1,654Page 475 of 1,654