Lessons Learned from Terraform-FTX Implosions

Audy Castañeda
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<strong>Lessons Learned from Terraform-FTX Implosions</strong>

A classic quote from the great philosopher Friedrich Wilhelm Nietzsche for those who keep building: “What doesn’t kill me makes me stronger.”

In May 2022, Terraform Labs’ LUNA cryptocurrency and TerraUSD (UST) stablecoin crashed, causing a huge shock to the cryptocurrency industry.

FTX reportedly has more than 1 million creditors, most of whom are retail investors who were convinced that FTX would not collapse and had kept their assets public. Taking a look at Mt. Gox in 2014, whose creditors were still unable to claim compensation, FTX may be a reiteration of that mistake.

It can be said that FTX succeeded and failed thanks to Alameda Research. An investigative report led careful users to discover serious problems with Alameda’s balance sheet, which then led to a deeper dive into his unclear and unexplained financial dealings with FTX.

When the crypto tide ebbed, it became evident who was swimming naked. After the madness, the market is in a mess.

FTX Collapse as an Opportunity to Reflect on the Problems and Reinvention of the Cryptocurrency Industry

Cryptocurrency cannot be blamed for FTX’s failure. It does not mean that the rise of Bitcoin (BTC) and the cryptocurrency industry was a mistake. Thinking should be given to the business models that cryptocurrency exchanges run and how to effectively decentralize governance etc.

The overturned cart in front is a warning to those behind. The implosion of the exchanges is mainly attributed to their non-transparent funding disclosure. Major cryptocurrency exchanges including Binance, OKX, and Huobi Global have been seen to announce their fund reserves to prove their safety, and ensure the interests of users.

Cryptography Industry has its Twists and Turns, but its Future is Promising

While 2022 is a particularly difficult year for the crypto space, it will continue to grow, evolve, and seek a way out amid skepticism.

With the COVID-19 pandemic raging and the global “wave of rate hikes”, the crypto winter could be harsher and longer than expected. Although you cannot accurately predict and estimate how long it will last, it is possible to overcome difficulties together.

Here are some deep lessons from the fall of LUNA to the collapse of FTX:

  1. A legal framework needs to be created to protect users and still promote innovation.
  2. The entrepreneurs trying to build a better Web and a more inclusive financial system for everyone need to be given support.
  3. Middleware like FTX need not dominate the industry.
  4. Enterprises that want to build in Web3 using public Blockchains need to be supported.
  5. While self-custody is a feature for some, it is a significant impediment to Web3 adoption for others, hence the need for users to access trusted service providers in this space.

By Audy Castaneda

According to Technical Analysis, the Price of Ether May Drop before Attempting to Rebound

Alexander Salazar
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<strong>According to Technical Analysis, the Price of Ether May Drop before Attempting to Rebound</strong>

The bulls might help Ether reach USD 1,300 if the price remains above USD 1,240 and USD 1,250. There is a possibility of price and volatility fluctuation, showing that ETH might trade in a range soon.

The price of Ether (ETH), the cryptocurrency of the Ethereum network, has moved alongside the overall crypto market. It has risen by 2.5% over the last 24 hours but has barely moved over the past week, reflecting sideways trading.

Although the altcoin might achieve gains in the short term, technical data indicates it might depreciate again before recovering. The chart shows that there has been considerably low accumulation. To break above the USD 1,300 mark, Ether needs to increase its buying activity significantly.

The daily chart shows that the buying force has been weak, although ETH has remained stable above USD 1,220. To reach USD 1,300, Ether must continue trading above USD 1,240 and USD 1,250.

If the price drops below USD 1,240 and closes around USD 1,230, the bulls will lose strength, further fueling a rebound to USD 1,300. Investors should pay attention to what happens to know when to buy.

The Daily Analysis of the Price of Ether

Ether is trading at around USD 1,275 and has accumulated a 2.5% gain over the last 24 hours. While its daily trading volume is above USD 4.73 billion, its market capitalization is about USD 152.75 billion, according to CoinGecko.

The second-largest cryptocurrency by market capitalization has consolidated after changing its USD 1,240 support level. Since the immediate resistance for ETH is at USD 1,290, the price might experience a setback at that level.

However, the value of Ether must remain above the USD 1,250 mark to avoid suffering a significant loss. Therefore, the bulls should continue defending that level against the nearest support line.

The slight decrease in the amount of ETH traded indicates a drop in the number of buyers in the market. The collapse of FTX may have caused fear among cryptocurrency investors, leading them to remain distant.

The Technical Analysis of the Price of Ether

In line with the lower number of buyers, the technical analysis indicates a similar outlook for the price. Although the Relative Strength Index (RSI) was above the midline, it remained weak as the daily chart showed a drop.

That reading correlates with a drop in Ether demand and accumulation. Contrariwise, the price was above the 20-day SMA, showing that ETH was in the hands of buyers.

The Moving Average Convergence Divergence (MACD) reflected the same sentiment as buyers, who controlled the price. That indicator shows price movements and trend changes, displaying small green signal bars linked to the ETH buy signal.

However, the height of the signals decreased, indicating a drop in the demand for Ether. According to Bollinger Bands, there is a possibility of fluctuation of price and volatility in the market. That indicator remained parallel, showing that ETH might trade in a range in the coming days.

By Alexander Salazar

The Price of Bitcoin Might Have Reached the Bottom Level

Alexander Salazar
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<strong>The Price of Bitcoin Might Have Reached the Bottom Level</strong>

Bitcoin has rebounded, validating a long-term ascending support line, but a move below that zone might accelerate the drop in its value. The daily RSI is bullish since it created a downward divergence, achieving the 50 mark, whose reactivation would represent considerable upward development.

The price of Bitcoin (BTC) shows daily and weekly bullish reversal signals. However, there must be a decisive move above USD 19,000 to confirm that setback in the trend.

Satoshi Nakamoto created Bitcoin, a cryptocurrency whose smallest unit, the satoshi, is worth 0.00000001 BTC. In addition, there will only be 21 million coins, which makes it a scarce asset.

Since Bitcoin hit its all-time high of nearly USD 69,000 in November 2021, a bearish market has affected its price. That month, it dropped to a low of USD 15,476 while the rest of the crypto market followed its steps.

After that, price action has been relatively bullish, as Bitcoin has rebounded, validating a long-term ascending support line that has been in place since March 2020. That line is around USD 16,000, but a move below that zone might accelerate the drop in its value.

However, technical indicators seem to be bullish about the price of the pioneering cryptocurrency. For example, the daily Relative Strength Index (RSI) has generated the highest divergence in history, breaking out of the oversold territory.

The price of Bitcoin must regain the USD 19,000 area to be bullish. That horizontal area corresponds to the high reached in 2017 and became support in May 2022.

The current decrease in the price of Bitcoin would be a mere deviation if there were a move above that zone. That will also make the RSI exceed its bearish divergence trendline, thus confirming a bullish reversal.

The Price of Bitcoin Might Initiate a Bullish Reversal

A daily technical analysis of the value of Bitcoin reinforces the relevance of the USD 19,000 resistance zone. That area rebounded several times in June and October before the price dropped in November, alongside a descending resistance line.

The daily RSI turns out to be bullish since it created a downward divergence in November when it achieved the 50 mark. Reactivating that line would represent considerable development to the upside.

Price action also shows bullish signs, as Bitcoin has created a bullish recovery candlestick over the last 24 hours.

If the value of Bitcoin broke above the USD 19,000 resistance area or descended, its outlook would be bullish.

Meanwhile, Bitcoin is trading at around 17,160 and has accumulated a 0.4% gain over the last week. While its daily trading volume is above USD 20.34 billion, its market capitalization is about USD 329.99 billion, according to CoinGecko.

Investors should investigate BTC before buying it to learn about its all-time high, behavior, and possible future prices. That will help them make more accurate investment decisions and reduce the risk of losing money. However, it is a matter of time before seeing where the market will take that cryptocurrency.

By Alexander Salazar

Could Chainlink (LINK) Price Currently Hit $10?

Audy Castañeda
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<strong>Could Chainlink (LINK) Price Currently Hit $10?</strong>

Chainlink (LINK) is trading below the $8.90 resistance area.

Chainlink (LINK) price broke out of a falling wedge on Nov. 23. This could be a rally that will take it back into double digits.

LINK price has traded near $6.40 since May 9. While LINK hit a low price of $5.30, the lowest weekly close was $5.80. Immediately after the close, the Chainlink price created a bullish engulfing candle (green icon).

The candle also validated a bullish divergence (green line) on the weekly time frame. This is the first time in Chainlink’s price history that the weekly RSI has generated a bullish divergence.

However, the price movement is bearish, as LINK was rejected three times (red icon) by the $9.40 horizontal resistance area.

As a result, the price action and the weekly RSI give an opposite perspective to the price forecast. While the RSI is bullish and suggests that LINK price will successfully move above $8.90, the price action indicates that a fall towards the $4.40 long-term support area is expected.

What Does the Chainlink (LINK) Wave Count Say?

The wave count provides bullish price analysis, indicating that the future price will successfully move above the $9.40 resistance area. In turn, this would confirm the bullish divergence on the weekly RSI.

The most likely wave count suggests that the LINK price has completed a corrective A-B-C structure (black). In it, Chainlink is trading below the $8.90 resistance area, wave C turned into a trailing diagonal, hence the wedge shape. The sub-wave count is given in white.

As a result, the most likely Chainlink price prediction is bullish. Conversely, falling below the low of wave C (red line) at $5.52 would invalidate this bullish forecast.

Chainlink Price Predictions 2023, According to Cryptogeek

Earlier this year, noted that cryptocurrencies are seen as a safe haven by many people. It means that not only will cryptocurrencies be used in the coming years, but smart contracts will also see more widespread use.

In this regard, it was predicted that Chainlink could become a really important platform for many investors. Considering the fact that the crypto market will benefit from the lack of trust in fiat money and all the pros of the Chainlink platform itself, it is predicted that by the end of 2023 the price will reach $120 in the worst case. If all the positive factors play well for Chainlink, it could skyrocket to around $300.

Earlier this month, a famous analyst, anonymously named Altcoin Sherpa, had this to say about LINK:

“Okay, I finally did it again, I bought this coin for a partial position. I’ll let it sit and DCA within this range. This is going to be a pretty passive trade for me and I won’t be active on it. I will sell it above $10. ″

In short, Chainlink, like some of the altcoins like Fantom (FTM) and Apecoin (APE) is believed to trigger a robust recovery very soon.

By Audy Castaneda

Despite the FTX Collapse, Jordan Belfort Believes the Price of Bitcoin and Ether Will Rise Significantly

Alexander Salazar
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<strong>Despite the FTX Collapse, Jordan Belfort Believes the Price of Bitcoin and Ether Will Rise Significantly</strong>

The Wolf of Wall Street expects the price of Bitcoin and Ether to be much higher than now. Pointing out that FTX was a scam, he stressed that its collapse does not mean that BTC is worthless or going to zero.

Jordan Belfort, a former stockbroker, also known as the Wolf of Wall Street, shared a video about Bitcoin (BTC) and Ether (ETH). In 2013, Martin Scorsese directed a film about him in which Leonardo Di Caprio starred.

Belfort founded the over-the-counter brokerage house Stratton Oakmont, through which he defrauded investors with pump-and-dump stocks. After pleading guilty to fraud and spending 22 years in jail, he became a motivational speaker.

The Wolf of Wall Street believes that the FTX cryptocurrency exchange was a scam from which no one could protect themselves. However, that does not mean that Bitcoin and Ether are worthless or going to zero.

Belfort Advises Holding Bitcoin and Ether for the Long Term

Despite the sell-off in the crypto market and the collapse of FTX, Belfort believes that Bitcoin and Ether will rise significantly. However, he does not think the same of other crypto assets, pointing out that they could not touch the leading cryptocurrencies with a 10-foot pole.

He advises those who own other crypto assets to watch them closely to decide when they should sell. To do that, they must base themselves on the value that the tokens they bought have at that moment.

Belfort recommends that investors ask themselves what led them to buy each token after examining its fundamentals. They should consider the reasons behind the purchase, such as expecting good news or having innovative technology.

However, Belfort advises investors who thought of selling the crypto asset at a higher price to do so. He explained that 99% of deals collapsed when the dot-com bubble burst, urging investors to do some research.

According to Belfort, a Problem or a Hope Moves Investors

The Wolf of Wall Street suggests wondering whether purchasing that currency will solve a problem or respond to hope. He seems to realize that those conditions may never come again.

Furthermore, Belfort said that he plans to buy more Bitcoin and Ether, although their price could fall further in the short term. He believes a bet on them at the current low price might mean substantial profits within 5-10 years.

Regarding buying Bitcoin or Ether, investors should allocate a small portion of their overall investment portfolio to them. Belfort noted that he would invest less than 10% of his total assets in cryptocurrencies since he could afford to lose that money.

Meanwhile, Bitcoin is trading at around USD 17,212 and has accumulated a 2.5% gain over the last 24 hours. While its daily trading volume is above USD 22.71 billion, its market capitalization is about USD 330.97 billion, according to CoinGecko.

Bitcoin and Ether play a relevant role in the economic system, of which Jordan Belfort is well aware. The leading cryptocurrencies have remained stable despite the bearish market due to factors such as the FTX collapse.

By Alexander Salazar

“Regulating the Use of Crypto Exchanges Will Shield Users”, Interview with Julián López

Audy Castañeda
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<strong>“Regulating the Use of Crypto Exchanges Will Shield Users”, Interview with Julián López</strong>

According to the congressman, with this project, they seek to develop this industry of crypto exchanges and above all give users peace of mind.

Julián López, representative to the chamber for Valle del Cauca in Colombia, spoke about the second instance of approval of the bill that seeks to regulate cryptocurrency exchanges in the country.

In the last days of November, users of the crypto world in Colombia received good news when they witnessed the approval in the second debate of the bill that seeks to regulate cryptocurrency exchanges in the country.

The objective of the bill is to broaden the regulatory spectrum in Colombia and establish that all operators are incorporated as a commercial company or franchise of a foreign company, as well as a Single Registry of Cryptoactive Exchange Platforms (exchanges).

Last September, the Colombian House of Representatives held a public hearing to share the main points of the project, encourage debate and build with experts the regulation of cryptocurrency exchanges.

What are the Main Points for which the Bill, which Seeks to Regulate Cryptocurrency Exchanges, should be Approved in Congress?

Julián López: The main points here are that the National Government will be able to regulate the use of cryptoactive exchange platforms and this will shield the user. In this case, the platforms will be able to operate legally, since they currently operate informally.

Do you Think that When There is Legislation for Exchanges and Cryptocurrencies, more Foreign Companies would be Encouraged to Come to Colombia?

Julián López: I think that Colombia is going to bite the bullet in this wonderful world of crypto assets, well of course we are going to bring in a lot of foreign direct investment and we are also going to encourage a lot of national capital to get into this business, which although it is highly volatile, requires sufficient investment, and can be done well. I think there may be many Colombian exchanges.

How do you see the Outlook for the Bill to Regulate Exchanges and Cryptocurrencies Now that it Goes to the Senate?

Julián López: I believe that there are also very important leaders in the Senate of the Republic. I hope the project falls into the hands of people who want to work on this issue. We will give the entire debate with great passion and dedication in the plenary session of the Senate so that it becomes Law of the Republic in June 2023.

Another Small Step for the Passage of Crypto Legislation

In summary, this Bill seeks to legalize cryptocurrency activity in Colombia at a business level, and will seek to provide more security to customers and holders when buying and selling cryptocurrencies, since Colombia is one of the Latin American countries with the highest adoption.

On the other hand, the Bill approved in the second debate, highlights the need for detailed information on the risks involved in investing in this technology, for Colombians to get a clear idea of all the aspects involved.

By Audy Castaneda

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