Will the Cardano Crash Reach a Price of 10 Cents?

Audy Castañeda
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<strong>Will the Cardano Crash Reach a Price of 10 Cents?</strong>

The ADA token was hit particularly hard, sending Cardano down to ninth among cryptocurrencies by market capitalization.

The Cardano (ADA) price has had a rather difficult time in recent weeks. The ADA token was hit particularly hard by the bear market and more recently by the FTX crash. This is why Cardano even fell to ninth among cryptocurrencies by market capitalization.

The year 2022 was very difficult for the Cardano (ADA) course. The cryptocurrency has been particularly affected by the bear market. Going back to 2021, around September, a new all-time high for Cardano, at over $3, was seen.

In the last few weeks, the Cardano price has fallen from $0.45 to $0.25. This slide was only briefly interrupted by the altcoin rally at the end of October. The FTX crash, though, wiped out this rise again. After that event, Cardano’s downwards course kept going.

Why is the Cardano Course Doing So Badly?

Cardano (ADA) is particularly vulnerable to bear market losses. The price has repeatedly lost value in bearish phases. On the other hand, the rallies in the ADA are very strong and also sustainable. Therefore, the current developments are initially of no concern.

It is worth mentioning that the developments on Cardano are still progressing. Following the Vasil update, January will see the launch of DJED, the network’s algorithmic stablecoin. However, investors are not particularly interested at the moment.

Will the Cardano Crash Happen in the Coming Weeks?

The bear market has a firm grip on cryptocurrencies at the moment. There is also the aftermath of the FTX crisis. Many companies, most notably Binance, are under scrutiny. Confidence in the market has fallen dramatically in recent months.

In this mixed situation, it is not certain that another sharper decline in the market will be seen in the coming weeks. Just after the bitcoin breakout attempt was halted in recent days, another market crash is now imminent. This could take Cardano seriously.

Can the ADA Fee Go Down to 10 Cents?

The Cardano (ADA) price trend is very negative right now. It is definitely possible for ADA to drop below the $20 cent mark in price once again. If the drop becomes massive and the price of Bitcoin falls back to the $10,000 mark, then the Cardano course is also threatened with a sharp drop to 10 cents.

The danger of such a price drop is particularly great in the coming weeks. The uncertainty in the market is enormous. However, a turnaround could be just around the corner in 2023. The year 2019 has shown that a second year in the bear market can certainly bring big gains. If the market reverses, we may see Cardano price above $0.50 again in the coming months.                  

By Audy Castaneda

Will Binance Go the Way of FTX? The Experts Say

Audy Castañeda
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<strong>Will Binance Go the Way of FTX? The Experts Say</strong>

There has been a recent outpouring of Fear, Uncertainty, and Doubt (FUD) regarding the survival of Binance.

In mid-December 2022, users of Binance, the largest cryptocurrency exchange by volume, began withdrawing funds massively. So far, Binance has proven solvent amid this stress test, but could it eventually meet the same fate as FTX?

The panic raised in the community was preceded by news of regulatory pressure on the company in the context of the collapse of a close competitor, FTX.

Binance Is Not the Same

Green Crypto Processing COO Ivona Gutovic believes that Binance clients have nothing to worry about, “At the moment, it is safe to say that Binance will not crash after FTX. The point is that the problems are a consequence of the situation with FTX.”

According to Gutovich, the negative light that has been shed on the exchange is purely FUD driven.

Roman Kurzenev, an active investor and crypto expert, shared a similar opinion. He drew attention to two main points.

Binance has been under investigation since 2018. During this time, no traces of crime were found. Moreover, the crypto exchange has been actively cooperating with regulators. This combination of factors suggests that Binance may not be as lucky as FTX, according to Kurzenev.

Binance Crash Not Ruled out

StormGain cryptocurrency exchange expert Dmitry Noskov has a different opinion. He drew attention to a number of points that, in his opinion, should make market participants doubt the integrity of Binance:

First, the crypto exchange is trying not to reveal its working methods and financial policies.

Second, Noskov drew attention to the fact that even the director of strategy for the crypto exchange, Patrick Hillmann, could not name the parent company of the trading platform to journalists, citing a corporate reorganization.

Third, Binance may use its own coins (Binance USD stablecoin and BNB token), which are in the top 10 caps, for reinvestment. If the assumption is correct, the risk of a cascading sell-off cannot be ruled out, following the example of FTX.

Kick Ecosystem founder Anti Danilevsky also gave a negative forecast. He drew attention to the increased interest offered by the crypto exchange for gambling and lending.

Based on his observations, this behavior suggests that Binance may “crowd” money, which means that there are likely gray schemes involved in the business, which, among other things, led to the collapse of FTX.

To sum up, there are questions about the true business model of Binance. The lack of full transparency does not allow one to say with confidence whether the crypto exchange is working fine or not.

The absence of charges from regulators, who have been investigating the crypto exchange business for many years, by contrast, suggests that the company is not as bad as critics think. Binance’s active work with regulatory authorities also suggests that trading platform owners carefully monitor their “health”.

By Audy Castaneda

Elon Musk Vows to Step down as Twitter CEO: Edward Snowden Throws His Name in the Hat for CEO Job

Audy Castañeda
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<strong>Elon Musk Vows to Step down as Twitter CEO: Edward Snowden Throws His Name in the Hat for CEO Job</strong>

“The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive,” Musk explained.

Tesla CEO and head of Twitter Elon Musk has vowed to step down as head of Twitter. As the billionaire searches for a new CEO to run the social media platform, privacy advocate Edward Snowden has thrown his name in the hat, stating that he accepts payment in bitcoin.

Elon Musk conducted a Twitter poll over the weekend asking his 122.3 million followers if he should step down as head of the social media platform. The billionaire added that he will comply with the results of the poll, which ended with 57.5% of more than 17.5 million respondents wanting him to step down.

Musk Should Step Down

Responding to a comment that a new CEO has already been chosen and that he will step down to be Twitter’s chairman of the board, Musk clarified: “Nobody wants the job that can keep Twitter alive. There is no successor.” In another tweet, the Tesla boss explained that “The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive.”

Musk Should Not Quit

Many people urged Musk not to resign. “If Elon Musk leaves Twitter, I will close my account. That’s why I opened it in the first place,” one exclaimed. “The crowd chose to crucify Jesus too, remember Elon Musk. The crowd is not always right. Leaders LEAD, they don’t bow down!” another told the billionaire. “He defends freedom of expression. The First Amendment needs you,” a third user emphasized.

Comments from people indicating they could serve as the new CEO of Twitter also flooded Musk’s tweet. Among those who responded was whistleblower Edward Snowden, a free speech and privacy advocate who has been living in exile in Russia after he exposed a National Security Agency (NSA) spy program that affected millions. of Americans in 2013. He wrote: “I take payment in bitcoin.”

Some people complained that they didn’t see Musk’s poll in time to vote. Many users suspect that most of the voters were bots. “This poll is not fair, I didn’t even see it until the last day because at this time of year, like me, most people are busy getting ready for the holidays and haven’t even been able to log in, and probably most of the votes in this poll come from made-up Democratic accounts,” one user highlighted.

Kim Dotcom told Musk: “It’s not wise to run a poll like this when you’re now the No. 1 enemy of the deep state. They have the largest army of bots on Twitter. They have 100k ‘analysts’ with 30-40 accounts voting against them. Let’s clean up and then run this survey again. Most have faith in you.”

By Audy Castaneda

Crypto Graveyard: Nine Hundred Cryptocurrencies Died in the Last Two Years

Audy Castañeda
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<strong>Crypto Graveyard: Nine Hundred Cryptocurrencies Died in the Last Two Years</strong>

The number of ‘dead’ cryptocurrencies falls 300% in 2022 compared to 2021, despite the collapse of cryptocurrencies.

Currently, there are over 10,000 cryptocurrencies available on the market for investors to put money into. However, most of these will not survive the bear market and will be gone by the time the next bull market revs up its engines.

Cryptocurrencies, while still a niche and emerging sector of asset class, have a market value of around $1 trillion. Their values ​​fluctuate wildly, given the volatility within this sector.

Three main questions are examined, regarding how many cryptocurrencies exist, why there are so many, and how many of these cryptocurrencies survive the hard times.

Existing Cryptocurrencies

As of December 19, 2022, there are around 22,070 cryptocurrencies listed on CoinMarketCap. This number increases by the day. For example, there were around 16,372 cryptocurrencies at the beginning of the year, which is an increase of around 35% as we approach the end of the year.

Nevertheless, one question remains: why are there so many cryptocurrencies?

This is mainly due to all the different purposes and problems that these projects try to address. For example, Bitcoin solves the problem of providing a decentralized peer-to-peer money transfer.

The value of BTC, for now, is mainly speculative. Because of this, many have tried to play the market to make a quick buck. But a few things are working in Bitcoin’s favor in 2022, including spikes in inflation around the world, as well as billions of dollars worth of investments coming into the market from institutional entities.

Bitcoin is currently trading just shy of the $17,000 mark and has a market capitalization of $322 billion. However, this same success does not translate to every other cryptocurrency on the market.

Top List Entries

Ethereum, the second-largest cryptocurrency, experienced an incredible bull run in 2021. That year, it had a trading volume of around $5 trillion and the price of ETH increased by more than 300%. Ethereum has expanded its use case into the NFT, metaverse, and Web 3.0 sectors.

ETH is currently trading at $1,192 with a market capitalization of around $144 billion.

Survival of the Fittest

The rise of cryptocurrencies over the years has been nothing short of astronomical. The bull markets have spawned several projects alongside native tokens and coins.

Statista data shows that in the first quarter of 2022, the number of cryptocurrencies listed on the market (9,929) increased by around 250%, compared to the end of 2019 (2,817). However, the number fell back to 9,310 in November 2022.

In conclusion, the data gives more weight to the advice of ‘DYOR’ or ‘Do your own research’. While it may seem pretty obvious, many investors still don’t think about the risks involved in putting money into a cryptocurrency.

By Audy Castaneda

Ether (ETH) On-Chain Analysis: What is the Ethereum (ETH) Blockchain for?

Audy Castañeda
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<strong>Ether (ETH) On-Chain Analysis: What is the Ethereum (ETH) Blockchain for?</strong>

Users of the Ethereum network are using it to perform various types of transactions based on trends, bringing this technology closer to the decentralized world computer than to unobjectionable electronic money.

The use of the Ethereum (ETH) Blockchain seems to evolve according to the trends of new technologies, favoring or limiting the risk according to the ETH price cycles. Users are currently moving away from DeFi and NFT related transactions, in favor of stablecoins.

Since the success of The Merge and Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on September 15, 2022, the price of Ether (ETH) has fallen $1,633 to $1,214, showing a decline of – 24.3% since The Merge, and -74.6% since the ATH of November 2021.

 Beyond the fluctuations in the price of the ETH token and a purely financial aspect, the properties and uses of the Ethereum Blockchain have varied a lot lately with notable technological advances and the growth of many business sectors.

Ethereum Activity in the Bear Market

To measure the commitment of Ethereum network participants and their propensity to request it, the seven-day change in active addresses provides a relevant signal.

Overall, network activity as measured by this metric nearly halved during the bear cycle, indicating a loss of interest from investors and users in the Ethereum network. In addition, the number of transactions made daily can be measured, to obtain an alternative view of the activity of the participants, as well as their propensity to use the network.

After the weakening of activity from November 2021 to July 2022, the number of transactions seems to have stabilized since August 2022 in a range between 800,000 and 1,000,000 transactions per day. This could signal a return to a regime of reduced activity, symbolizing regular and loyal users of the Ethereum network, which is the basic demand for block space of the Blockchain.

Evolution of Ethereum Uses

In general, the fall in prices, the various setbacks of DeFi protocols and firms with significant links to this sector (Anchor hack, Terra/LUNA collapse, 3AC bankruptcy, then FTX), and the search for protection against risks, have caused a significant flight of capital, which is reflected in a tangible drop in activity.

Activity halved to 15.7%, demonstrating a contraction in NFT-related activity, as well as rapid disinterest during the latter phase of the current down cycle.

Finally, by looking at the use of the Ethereum network for peer-to-peer monetary settlement, through so-called “vanilla” transactions, we can assume that the ETH token is not ultimately intended to become a hard currency like bitcoin (BTC). Said usage demonstrates that ETH holders are using their token less to transfer monetary value across the network.

By Audy Castaneda

Binance Coin (BNB) in Trouble

Audy Castañeda
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<strong>Binance Coin (BNB) in Trouble</strong>

Doubts about the possible stability of Binance have obviously also affected the market price of the BNB cryptocurrency.

In the last seven days, BNB has lost 13%, against the substantial stagnation of BTC and ETH. Until Wednesday, December 14, the BNB Price was also lateralizing like that of the two main cryptocurrencies, but as of Thursday, it has been suffering a bit.

In fact, it went from $275 on Wednesday to $228 on Saturday, accumulating a 17% loss in just three days. However, there was a small bounce yesterday that brought the price back to around $250 or a little lower, thanks to which the weekly loss was reduced to 13%.

It should be noted, though, that among the largest cryptocurrencies by market capitalization, BNB is by far one of the least losings during 2022. Its current price is 64% lower than the all-time highs of last year, while for example, this percentage rises to 75% for BTC and ETH. It is also above its yearly low in mid-June, when it fell as low as $214.

The current difficult stage is a direct consequence of the FTX collapse, although it occurred at two very different moments. The first was right in the middle of November, during the FTX crash when the BNB price fell to $250. The second was last week, due to doubts about the holding of Binance.

Doubts about the Stability of Binance Coin (BNB)

BNB is directly tied to Binance, so any issues with one affect the other as well. Binance’s problems really only concern the fear that it may end up similar to FTX. In fact, in recent days it has suffered strong outflows of funds from its wallets, due to a kind of “run on the bank” by its users, and it has held up very well.

Although there are no concrete and obvious signs of a possible difficulty, fears remain. It all stems from the so-called Proof of Reserve, that is, the evidence provided by Binance and other exchanges, regarding the funds available to support any withdrawal.

After FTX withdrawals were suspended in November due to insufficient funds to pay all withdrawal requests, many users of centralized exchanges began to fear that other exchanges could also be in similar situations.

Exchange of Funds

Funds that customers deposit to a crypto exchange should be able to be withdrawn at any time. This means that, in theory, all exchanges should have a liquid reserve equal to or greater than the value of the funds held in escrow on behalf of their clients.

After the FTX crash, many exchanges were quick to prove that they had enough funds on hand to cover all of their client deposits.

Binance Reserves

Currently, Binance on-chain has funds of around $55 billion. In fact, there is no certainty that these funds are used by the exchange house to solely and exclusively cover customer deposits.

The problem is that last week the company that carried out that audit decided to get out of the crypto sector, and removed from its site all the reports of the audits it had carried out on different crypto companies.

In this context, Binance continued to be insolvent, with no apparent problems, and on-chain reserves were maintained. Before the panic broke out, these reserves stood at more than $62 billion, then since then, they have decreased by $7 billion. All of this suggests that the Binance “run on the bank” stress test can be considered to have been passed with flying colors.

By Audy Castaneda

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