What Impact Could the Allegations against Binance Have on the Stablecoin?

Audy Castañeda
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The risk of facing allegations has affected confidence in Binance and this could lead to further losses in the value of BNB.

The FTX crash last month had a devastating impact on the price of the FTT token, issued by the Sam Bankman-Fried (SBF) exchange. This proved that the tokens issued by the exchanges are subject to the same risk as the platforms themselves.

On Tuesday, December 13th, BNB, a token issued by Binance, suffered the same kind of problem. Investigations by the US Department of Justice affected the value of BNB, which was the only Top token that did not open higher. In fact, BNB posted the biggest drop of the day with a 2.3% correction.

Binance has taken advantage of SBF’s empire collapse, with many traders relying on the safety of Changpeng Zhao’s exchange. However, the risk of facing allegations has also affected confidence in Binance, and this could lead to further losses in the value of BNB.

News on Binance FUD Begins to Emerge

In recent days, reports have indicated that Binance has yet to provide meaningful financial data to boost investor confidence. After the big FTX crash, Binance CEO CZ proposed that all exchanges publish proof of reserves to encourage full transparency.

This measure was supposed to serve as a safeguard to restore confidence in cryptocurrency companies. However, some analysts have warned about Binance, as the exchange audit faces several problems.

Binance’s Proof of Reserves (PoR) is essentially the volume of assets it holds on escrow for its users. Even so, clients of the exchange have withdrawn more than $2 billion worth of cryptocurrency.

In the midst of this movement, there is a risk that the exchange’s reserves will run out, although Binance has recently published its PoR and assured that it has all the funds in reserve. That was not enough to allay fears, and the price of BNB is trading lower while most cryptocurrencies are on an upward curve.

BUSD Transactions Are Also Affected

On the other hand, it seems that the whales are trying to stay on the safer side. A whale alert was issued in BUSD with the transfer of 300 million BUSD. The great whale transaction was made from an unknown wallet to the Paxos treasury. This could indicate that the whale is looking to protect his/her assets amid market uncertainty.

Such a move may indicate a change of funds, with the large investor exchanging his BUSD for dollars or other cryptocurrencies. In the last 24 hours alone, Binance clients have withdrawn more than 39,000 Bitcoins (BTC) from their accounts on the exchange to their personal wallets. This could be a sign that investors are hedging amid market uncertainty.

By Audy Castaneda

Sam Bankman-Fried Asks for New Bail after Initial Denial

Audy Castañeda
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<strong>Sam Bankman-Fried Asks for New Bail after Initial Denial</strong>

SBF is being held in the Fox Hill Prison Infirmary.

Bankman-Fried was taken into custody Monday night after prosecutors in the United States alerted the Royal Bahamas Police Force to a sealed indictment. Prosecutors for the Southern District of New York unsealed the indictment early Tuesday, announcing that they are charging the former FTX CEO with wire fraud, conspiracy to commit money laundering, and campaign breach, among others.

“A month ago FTX, one of the largest exchanges in the world, collapsed and destroyed billions of dollars in customer value, and every day for a month the seasoned prosecutors in this office and our [FBI] partners, [the Securities and Exchange Commission] and [the Commodity Futures Trading Commission] have been working around the clock to find out what happened so they can start the process of seeking justice,” attorney Damian Williams said on Tuesday afternoon, during a press conference.

After a first request for bail was denied, Sam Bankman-Fried reiterated his request, hoping to return home, pending the hearing that must decide on his extradition to the United States. Meanwhile, SBF is being held in the Fox Hill prison infirmary and is said to be “in good spirits”.

Sam Bankman-Fried Asks for Bail

Last Tuesday, Sam Bankman-Fried (SBF) was denied a first request for bail by Chief Magistrate JoyAnn Ferguson-Pratt. According to Reuters, SBF later reiterated a new request, filed on Thursday.

The former general director of FTX thus hopes to return home, awaiting the hearing on February 8th, who must decide whether or not to extradite him to the United States. Remember that you face up to 115 years in prison, given the eight charges against you.

Therefore, the Supreme Court of the Bahamas must consider Sam Bankman-Fried’s release request on January 17th. Pending the verdict, therefore, the person in question remains in pretrial detention at the Bahamas Department of Corrections in Fox Hill.

SBF Is “In a Good Mood”

According to Doan Cleare, the acting corrections commissioner, SBF was “in a good mood”.

“Mister. Fried is staying in the infirmary’s maximum security unit, getting his medication on time. The only physical visitors allowed at this time are their attorneys, as well as US Embassy staff. Everything else will be done by videoconference. He is with five other inmates in a dormitory.”

Regarding drugs, SBF is known to take various treatments, including a daily Emsam patch containing selegiline, a molecule derived from methamphetamine used to combat Parkinson’s disease or depression in some countries, as is his case.

So all of this is just the beginning of a long legal process in which FTX victims will demand answers and reparations.

By Audy Castaneda

Bitcoin Maximalist Michael Saylor Says Ethereum Could Crash Like LUNA

Audy Castañeda
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<strong>Bitcoin Maximalist Michael Saylor Says Ethereum Could Crash Like LUNA</strong>

The expert points to proof-of-stake (PoS) networks like Ethereum for having the possibility of crashing like the infamous Terra.

Ethereum has come under fire from bitcoin maximalist and former MicroStrategy CEO Michael Saylor, who compared the network to LUNA, which tragically collapsed in May 2022. Notable crypto firms. Now, Saylor has pointed the finger at Proof-of-Stake (PoS) networks like Ethereum for having the potential to crash like the infamous Terra.

Will Ethereum Break like LUNA?

In a Twitter post, the former CEO of MicroStrategy highlighted that Ethereum is at risk of seeing a LUNA-level event. The argument was basically a comparison of bitcoin to other cryptocurrencies like Ethereum, which Saylor believes are unstable.

The tweet included a link to a YouTube video from Trader University explaining the Ethereum Blockchain and why there might be a problem with the PoS network. It highlights the fact that the Ethereum network relies on staked ETH to function, which at this point sees a lot of coins staked because there is no way to withdraw them.

However, Matthew R. Kratter points out that once the withdrawal code becomes available, and if the price of the cryptocurrency falls further, more users will be inclined to withdraw their coins.

At the end of the video, Kratter then calls for regulators to investigate PoS networks like Cardano and Ethereum, to determine if they are at risk of a “catastrophic implosion risk.” This is in an effort to prevent another event like the collapse of LUNA.

Saylor then compares the network to bitcoin in his tweet, saying, “Bitcoin is engineered to be stable, robust, and increasingly secure & efficient over time based on Proof of Work and ASIC technology advances.” He further states that “Proof of Stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design,” he added.

Drawing the Wrath of the Followers

Michael Saylor has always been a vocal bitcoin maximalist, preferring the pioneering cryptocurrency over all others in the space, despite its performance. This is not the first time Saylor has criticized Ethereum, but his most recent attempt has drawn the wrath of ETH supporters.

A user points to MicroStrategy’s bitcoin investments that were made under his leadership. At current prices, the company is experiencing unrealized losses on its BTC holdings, so a similar investment in ETH would have resulted in a profit for the company, as well as passive income, if the coins were staked.

However, Saylor remains a staunch supporter of bitcoin, and his Twitter page is proof of that. One of his most recent tweets includes an image of a bitcoin light bulb with the caption “Bitcoin is Eternal Light.”

By Audy Castaneda

How to Start a Cryptocurrency Scheme and Start Earning Money

Audy Castañeda
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<strong>How to Start a Cryptocurrency Scheme and Start Earning Money</strong>

What are the most profitable alternatives to earn money in the cryptocurrency market? Here is the answer.

There is a lot of money to be made in the world of cryptocurrencies, and the best way to start is by making your own. There are a variety of ways you can launch your own cryptocurrency company and make money fast.

However, as with most businesses, it’s not as simple as just sitting back and waiting for the money to arrive. You must do something to move your investment forward. Here are some useful things you can do to get started with your own cryptocurrency schemes:

Determine the Purpose of your Mining Operation

The first step in starting any type of business is to determine the purpose of your operation so that you can focus your efforts on growing your business and making more money. When determining your purpose, think about how you plan to make money, not just how you would like to earn it.

This means that you don’t just worry about how you’ll make money today, but how you’ll maintain and expand your business in the long term. This will help you avoid falling into the trap of thinking about your current financial situation and making rash decisions, which can easily lead to losing money in the short term.

Do not Access your Funds without Having them

Do not access your funds without first making sure that no one else does. This means you should not log into your bank account or credit card without first making sure no one else is looking at your financial accounts. This is one of the most basic and yet one of the most overlooked aspects of any business.

Establish a Bank Account

Doing so not only helps you save a small amount of money each month but also gives you access to a variety of financial services you may need in the future, such as online banking and credit cards. When you open a bank account, you also allow yourself to take advantage of various financial products and services that may be available to you later.

Get Started in the Cryptocurrency Market

One of the best ways to get involved in the world of cryptocurrencies is to get a trading robot. Profit revolution can help you make profitable trades without having to do any of the work. It can even help you predict what other people are going to do. A good trading bot will cost you a small fortune, but it is well worth the money. Thus, you will be able to make a lot of money in the long run.

In conclusion, mining can be a very profitable and rewarding activity, but you should do your own research, and find the right platform for your needs.

By Audy Castaneda

Amid Withdrawals, Binance CEO Warns of Bumpy Months Ahead Cryptocurrencies and ICOs

Audy Castañeda
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The major cryptocurrency exchange is experiencing customer withdrawals.

Binance founder Changpeng Zhao (CZ) reportedly told staff he would expect a rough few months, as the major cryptocurrency exchange is experiencing customer withdrawals.

The warning comes as the crypto industry faces challenges after high-profile bankruptcies and amid tougher regulations.

Binance, the world’s largest cryptocurrency exchange by trading volume, saw net outflows reaching $3 billion on Tuesday, November 13th, according to Blockchain analytics firm Nansen.

$3 Billion Withdrawn from Binance at Peak, Nansen Data Shows

The news comes as Changpeng Zhao, the founder, and CEO of Binance, tried to reassure his team that the company is financially strong enough to survive the crypto winter.

The coin trading platform has been dealing with the effects of a series of negative events in the sector, including the collapse of FTX, a major competitor in the foreign exchange market that filed for bankruptcy in November. FTX founder Sam Bankman-Fried was arrested in the Bahamas on charges brought against him in the United States.

A Reuters report on a US Justice Department investigation into Binance was also a factor in investor jitters, according to Andrew Thurman, content lead at Nansen, who commented on the outflow for CNN Headlines, that prosecutors are considering a money laundering investigation also emerged against a backdrop of speculation over Binance’s reserves.

CZ Acknowledges Withdrawals, Seeks to Minimize Outflow, and Calm Down Colleagues

In a tweet posted on Tuesday, Changpeng Zhao acknowledged the outflow of funds and insisted that Binance has been in similar situations before. “Some days we have net withdrawals; some days we have net deposits. Business as usual for us,” he said, suggesting that “it’s a good idea to ‘stress test withdrawals’ at each CEX on a rotating basis.”

Meanwhile, the crypto executive also sought to alleviate concerns about the health of the exchange in a memo to his staff. According to a Bloomberg report citing the paper, Zhao stressed that the industry is going through “a historic moment” where Binance is in a strong financial position and will “survive any crypto winter.”

“While we expect the next few months to be eventful, we will get through this challenging period and will be stronger for getting through it,” CZ told the Binance team. Referring to the latest developments in the space, he added that FTX’s recent collapse has led to “a lot of extra scrutiny and tough questions” for his exchange.

Binance, the world’s leading cryptocurrency exchange, has been working to increase transparency and convey trust to its users after the FTX crash.

Binance, the world’s leading cryptocurrency exchange, has been working to increase transparency and convey trust to its users after the FTX crash.

Following a proof of reserves and proof of liability verification, global auditor Mazars concluded in a report that Binance’s bitcoin reserves are fully guaranteed.

By Audy Castaneda

All Attention and Energy on the FOMC

Audy Castañeda
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0
<strong>All Attention and Energy on the FOMC</strong>

The market is waiting for the next FOMC interest rate decision.

The market is trading on a side day, awaiting the upcoming FOMC interest rate decision and how the US central bank guidance will be implemented. The question and answer session is the most anticipated part of the day.

igCrypto

The daily chart for BTC is in a bullish falling wedge pattern at press time. This pattern is a reversal pattern, remembering that the price can break both ways.

Previously, the price broke a support that had been holding its price. Now, it is necessary to analyze if this movement is going to be a new bearish test, or if it is going to generate a more significant buying volume. The price, assuming the average of 80 periods, will present a higher purchase volume. However, in order to break through the resistance, one must once again be above the POC region of the VPVR indicator. So buying pressure will prevail on this move.

If the price manages to stay above this resistance of $17k to $18k, we can look for the projection that is around $24k to $25k, where the average of 200 periods approaches.

The RSI indicator respected its divergence at the bottom of $15k, RSI assumed the 50.00 region, which could bring a shorter period of movement higher to the 70.00 region which is overbought. Therefore, it is recommended that investors remain vigilant, in case the price reaches resistance in the above-mentioned regions, and the RSI indicator remains in the overbought region, as stronger selling volume may be forthcoming.

If the price respects the resistance in this zone of US$17k to US$18k and retraces below the average of 8 periods, we can look for new supports that are US$14k to US$12k.

Capaquelet

BTC is reaching the bottom of the falling wedge on the weekly chart. The data from the last FOMC meeting of the year (12/13 and 12/14 at 4:00 p.m.) will be decisive for the next movements.

An increase in volatility is close with the break, and the possibility of a new floor close to 10-12k, to seek liquidity and begin to reverse the trend, or if the data is favorable, it could break upwards. The first option would further drive the bullish move, as it would increase BTC’s dominance over alts, and significantly reduce the number of long-leveraged traders in the market.

AllanJhones

The bitcoin price continues its upward movement, after a day of “partying” in variable income assets, with US inflation data weaker than expected.

On the H4 chart of the Whitebit exchange, a “bullish flag” formation is in evidence, with the 9-period moving average reaching the current candle, creating a good chance that the rally will continue towards $20k. There is also a US interest rate decision and post-decision speech for the day, which may bring volatility.

By Audy Castaneda

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