Coinbase Says It Has Zero Exposure to Failed Crypto Entities Celsius, 3AC, and Voyager

Jenson Nunez
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Coinbase Says It Has Zero Exposure to Failed Crypto Entities Celsius, 3AC, and Voyager

Coinbase said it had zero financing exposure to insolvent crypto entities. It also highlighted that its venture capital arm enacted “non-material investments in Terraform Labs.

Coinbase declared it had no financing exposure to ruined crypto firms Celsius Network, Three Arrows Capital (3AC), or Voyager Digital, expecting to subdue concerns about the exchange being at risk of a liquidity crisis.

The company said these entities were highly indebted with short-term responsibilities that showed inconsistencies against longer-duration illiquid assets.

Each of these firms opted for bankruptcy after experiencing a Crashdown that led to the liquidation of indebted positions. The company said they have not engaged in these risky procedures, so they focused on consolidating their business with prudence and a strong focus on the customers.

Shares of Coinbase increased from 15% to $75.68 after the news arrived in various media outlets. The stock then collapsed 70%, crumbling from a figure registered at $251 in early January.

Coinbase Noted Many non-Material Investments in Terra

Coinbase also explained how its venture capital arm carried out non-material investments in Terraform Labs, the South Korean entity in charge of Terra. The $60 billion blockchain crashed dramatically in May, spreading dangerous side effects across the crypto space.

The U.S. exchange has been the target of market speculation. Observers aimed at a decision made by the company to freeze its affiliate program as a sign of insolvency.

Coinbase explained that solvency issues at Celsius, Three Arrows, Voyager, and other similar entities in the crypto market were a clear sign of insufficient measures to control risks.

On the other hand, the exchange clarified that it does not take part in lending or other activities involving currencies held by its customers. Any lending activity takes effect under total discretion to protect the decisions of its customers. These decisions get supported by collateral, which serves as the first shield of protection against a possible default contagion.

Coinbase said it always holds customer currencies 1:1; this means that these funds are always ready for a constant withdrawal procedure.

The entity also said that it always needed 100%+ collateral, so they count on a record of zero losses from their financing registries and zero exposure to insolvencies from failed entities.

A Chain Reaction in the Crypto World: Terra

Crypto markets have declined intensely since the multi-billion Crashdown of the Terra space in May. Amid the defeat, which presented a bitcoin (BTC) plunge registered at more than 70% from its all-time high, prominent crypto entities such as Celsius and 3AC started to suffer a liquidity shortage.

After getting an Overleveraged status, the entities got forced to freeze the withdrawal procedures as investors moved to take their funds out of the affected entities. The value of the assets housed by the entities crumbled so intensely that they could not attend withdrawal requests.

After this chain of events, Celsius, 3AC, and Voyager opted for bankruptcy protection. The market downtrend has also led to stopping withdrawals at Zipmex, a famous crypto exchange operating out of Singapore.

By: Jenson Nuñez

South Korean Authorities Raid Terraform Labs offices

Audy Castañeda
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South Korean Authorities Raid Terraform Labs offices

New York and South Korean authorities seek to jointly resolve the fraud caused by Do Kwon and his partners against their investors. South Korea raided local offices and exchanges, where they collected evidence about the disappearance of Terra and LUNA resources. Authorities continue to collect evidence as Do Kwon is banned from leaving South Korea.

Amid the investigations into the collapse of Terra (LUNA), authorities from the Seoul Southern District Public Prosecutor’s Office in South Korea raided the headquarters of Terraform Labs, and even local exchanges (although it is unknown which ones), as part of obtaining evidence.

South Korean judicial authorities raided properties and offices, to address complaints from defrauded TerraUSD investors, who filed complaints against Terraform Labs CEO Do Kwon and company co-founder Daniel Shin, accused of fraud for the loss of billions of dollars, after the fall of both stablecoins.

About the Raids

According to the Korean agency Yonhap, the raids involved the seizure of transaction records, “valuable material” (unknown) that helped determine the circumstances that led to the disappearance of USTC and LUNA, and even clues about the loss of resources.

In July, analysts at Chainalysis warned who might be behind the collapse of the Terra ecosystem, which cost the entire industry around $60 billion. According to insiders, it all started on the night of May 7, when Terraform Labs, as part of a planned operation, withdrew 150 million UST from the Curve-based 3pool liquidity pool. Such a large and unique operation, according to analysts, increased the volatility of the pool.

Just thirteen minutes later, a major trader spotted this loophole and swapped 85 million UST for USDC to add to the volatility. Over the next hour, another trader converted a total of 100 million UST into USDC in four staggered transactions, adding to the volatility.

Role of the Korean Ministry of Justice

Meanwhile, South Korea’s Justice Minister Han Dong-hoon met with US officials in New York (Prosecutor’s Office) to discuss possible techniques or methods for South Korea and the United States to collaborate to investigate crimes related to cryptocurrencies.

At the end of June, the Prosecutor’s Office of the South District of Seoul (Capital of South Korea), in charge of investigating the Terra case, imposed a ban on several of the main Terra Labs developers leaving the country.

As reported by the local media JTBC, the Joint Investigation Team of Financial and Securities Crimes of the Prosecutor’s Office, had prohibited the departure of Mr. A, one of the main developers of Terra, who has become a key player in the investigation, due to his interviews.

Furthermore, Blockchain security firm Uppsala Security and CoinDesk Korea jointly conducted an investigation into the flow of funds and released investigation results indicating that illicit activity may have occurred and determined that Terraform Labs and Luna Foundation Guard (LFG) could have manipulated prices using billions in stablecoins, according to a report.

By Audy Castaneda

The Price of Bitcoin Reaches a 200-Week Moving Average

Alexander Salazar
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The Price of Bitcoin Reaches a 200-Week Moving Average

The price broke out of the USD 22,700 resistance area, but a drop caused it to suffer another pullback. The most likely wave count indicates that BTC has completed the five-wave descending pattern beginning in April.

The pioneering cryptocurrency is recovering its 200-week moving average (MA) after leaving a long-term descending resistance line.

Throughout the history of Bitcoin (BTC), the 200-week MA has acted as a price floor many times. Besides, the value of the cryptocurrency had not reached a close below that level for a sustained period.

The price of BTC has reached five weekly closes below that moving average to date. That is the period that it has remained under the 200-week MA the longest.

The current moving average is nearly USD 22,700, which Bitcoin is trying to recover. Its first attempt is underway, but the price might drop even further if it fails.

The Price of Bitcoin Is Breaking a Descending Resistance Line

The daily chart shows that the price of Bitcoin might move above that moving average.

Bitcoin has broken a descending resistance line in place since early April.

The Daily Relative Strength (RSI) index has moved above 50 and follows an ascending support line.

If the upward move continues, Bitcoin might reach the 0.382 Fibonacci retracement resistance level close to USD 29,400.

The price recently left a short-term ascending parallel channel and the USD 22,700 resistance area. However, a drop caused it to fall back into that area again.

Bitcoin must quickly move above the channel boundaries if the upward move continues.

The Analysis of the BTC Wave Count Analysis

According to the most likely wave count, BTC has completed the five-wave descending pattern beginning in April. In that case, wave five has a truncation, as it did not move below the bottom of wave three.

That wave count could mean that Bitcoin has started a new upward move. It would take it toward the USD 29,500 resistance area and even higher.

The Price Cycles in the Market of Bitcoin

The bearish trend began on June 13th, when the realized price of BTC dropped below its market price. According to Grayscale, the Bitcoin rally reached its all-time high, with last year being the longest since 2020.

There were 391 days in the 2012 cycle where the realized price was below the market price of Bitcoin. There were also 364 days in the zone during the 2016 cycle.

In 2012, the market peaked at 603 days while the time increased by around 180 days for each subsequent cycle. It took 786 days in 2016 and 952 days in 2020 to reach its maximum point. Likewise, the 2012 and 2016 cycles, lasting 1,290 and 1,257 days, decreased by 73% and 84%, respectively.

In July 2022, the market has completed 1,198 days of the current 2020 cycle. That might indicate that almost four months must pass before the realized price crosses the value in the market again.

Bitcoin is trading at around USD 22,942 billion and has accumulated a 3.9% loss over the last 24 hours. Its daily trading volume is above USD 48.80 billion, while its market capitalization is about USD 438.18 billion, according to CoinGecko.

By Alexander Salazar

Hackers Know How to Pretend to be Developers to Extract Crypto Funds

Jenson Nunez
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Hackers Know How to Pretend to be Developers to Extract Crypto Funds

North Korean hackers might be hiding behind excellent candidates’ masks in recruitment drives. This way, they can extract the digital currencies of the entities that hire them.

This trend was determined by various entities back in early 2020, even though it may have been taking effect for a longer time. This criminal behavior occurred when the crypto markets charged into an optimistic cycle, and recruitments happened on a big scale.

When a new developer gets hired, that consultant would recommend a potential candidate. Recruiters in the tech industry would immediately recognize this behavior as a fake intent to get this candidate on board.

The recruiters say they work out the back story of these fake profiles almost in the blink of an eye, but on every fake profile, there are always evident signs that things might get designed to deceive the victims.

The IT recruiters usually make tests to learn how to identify this kind of profile. The way they communicate is the same in every single case. These scammers seem to carry out their activities through a clandestine call center.

Red Flags to Detect a Scammer

The first red flag appears in the profile picture. It is the ultimate giveaway. It is always necessary to take a brief look at the profile picture. The sparkling applicant usually describes himself as a Japanese citizen. But, recruiters can quickly discover that these deceivers are not Japanese. Other recruiters say they look like robots or, at least, people generated by an AI tool.

According to IT recruiters, It is not a regular thing to see a phone number. But if a phone number gets involved, it’s a U.S. number. They can get coaxed onto a call with you. But it usually happens through Skype. And if the recruiter manages to make contact with the party, he has to insist on having a chat with their camera. When these people appear on-screen, they don’t look like real people. This group of “developers” look robotic, like they got generated by an AI.

North Korean Hackers are Living the Dream

These groups of criminals usually highlight that they are Solidity developers, blockchain developers, or something linked to Web3.

The LinkedIn profiles of these groups of scammers always employ a very familiar template. These templates get filled with a set of solid keywords. These are words that recruiters and employers in crypto could only expect to observe occasionally.

When recruiters launch a job ad, these fake profiles will immediately pop up and auto-reply. Solidity developers are not the type of developers that apply for positions. They usually get targeted by recruiters all the time. They have multiple opportunities to exploit in the tech sector.

These deceivers show many unusual signs in their behavior, but perhaps, the most prominent red flag is their insistence on getting a job. Their profile might look outstanding, and they could show years of Solidity experience, but these are clear signs that point to a potential scam.

By: Jenson Nuñez

Analysis Indicates the Price of Ether Perpetual Contracts Is above 200-Week Moving Average

Alexander Salazar
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Analysis Indicates the Price of Ether Perpetual Contracts Is above 200-Week Moving Average

An optimistic analysis of the ETH price indicates it is around USD 1,880, but it might drop to USD 1,197. The Ether MA is showing a bullish trend as it is above 50-week MA and 500-week MA.

The Ether (ETH) perpetual futures analysis follows price patterns and moving averages to predict the movement of the cryptocurrency.

Perpetual contracts are derivative financial instruments similar to futures, which allow holding or trading them indefinitely. They are increasingly popular among cryptocurrency holders because they do not carry the burden of an expiration date.

Developers Use the Ethereum Network to Build New Technologies

Ethereum is a blockchain-based platform known for its native cryptocurrency, Ether. That technology creates a distributed consensus on the state of the Ethereum network. The new blocks are the hubs to process transactions, mint new Ether coins or run smart contracts for dApps.

Tech giants and companies use the Ethereum network to develop custom blockchain models. The increasing use of Ethereum will lead creators to move from proof of work to a new consensus algorithm in the coming years.

Due to its massive software upgrade, Ethereum has trended higher over the last few weeks. Investors and developers call it The Merger, which should occur in the next few months. It will change the way to classify transactions, becoming more efficient and sustainable for widespread use.

However, cryptocurrency experts are waiting to see what happens after the above upgrade. They want to know the reaction of investors and companies building their technology on the Ethereum network.

The One-Hour Analysis of the Price of Ether

The following is the recent analysis of the price of ETH explained with an hourly time frame.

An ascending channel is the price action contained between two parallel upward sloping lines, characterized by higher highs and lower lows. An ascending channel emerges by connecting a lower trendline to the swing lows and an upper channel line to the swing highs.

The price is not always within the parallel lines of an ascending channel but shows support and resistance areas to set stop-loss orders and profit targets. A break above an ascending channel may indicate an upcoming bullish trend, while a break below an ascending channel may indicate a trend change.

The price of ETH is around USD 1,508, but it could reach the USD 1,880 resistance level. If the trend reverses, Ether might drop to USD 1,197 while the sell level would be USD 1,439.

The Moving Average of Ether in the Short Term

ETH is currently bullish, above 50-week MA and 200-week MA, and there is a high possibility of a trend reversal in the price.

Ether is trading at around USD 1,508 and has accumulated a 5.0% loss over the last 24 hours. Its daily trading volume is above USD 22.18 billion, while its market capitalization is about USD 180.60 billion, according to CoinGecko.

By Alexander Salazar

According to a Survey, there Are Fewer Resignations in the Cryptocurrency Industry

Alexander Salazar
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According to a Survey, there Are Fewer Resignations in the Cryptocurrency Industry

During the crypto winter, people talk about recruitment as the recession looms and inflation thrives. However, a new survey shows most citizens consulted are not trying to resign.

According to executive search firm JMJ Phillip, people seem more optimistic about their jobs despite high fuel prices, a looming recession, and inflation. In contrast to the previous year, fewer employees want to change careers in the next 6 to 12 months.

Dennis Theodorou, the CEO of JMJ Phillip, this inflation is the highest in recent history as public and cryptocurrency markets are declining. Besides, the Federal Reserve (Fed) has raised interest rates, creating uncertainty in the economic environment for the next 6 to 12 months. However, employee confidence remains significantly high despite all these pessimistic signs.

Concerning the job market, JMJ Phillip considers that technology is the canary in the coal mine. They say that tech companies often need relatively cheap liquidity to fund ambitious growth plans and massive human resources. Companies like Tesla, Coinbase, Redfin, Compass, BlockFi, Cazoo, and Notarize to announce layoffs due to recent rate hikes.

There Are Fewer Resignations in the Cryptocurrency Industry

Neil Dundon, the founder of CryptoRecruit, says that failing cryptocurrency projects have been quite common among companies like Celsius. However, he believes that many talented people have found the opportunity to create quality projects amid the massive layoffs in the market.

Dundon points out that there have been similar cycles before, although the market is not as active as in 2021. He considers that many companies have absorbed recession a little better this time, making better business decisions to protect themselves.

The entrepreneur comments that there have not been as many resignations in the cryptocurrency industry as in other areas. He explains that people enter this field to get paid and for the passion of working in the crypto space.

Many are enthusiastic about working on Web3, as they do not feel the restrictions imposed in other industries. In the latter, employees only do their jobs to earn a salary.

Decentralized Autonomous Organizations Offer Developers Opportunities for Growth

Dundon thinks that decentralized finance has slowed down due to the collapse of the overall crypto market, as people are seeking to protect themselves. However, he says that Decentralized Autonomous Organizations (DAOs) offer opportunities for developers who understand blockchain technology and have business skills.

The CEO of JMJ Phillip notes that there is always a need for developers who can create smart contracts. He highlights that companies want people who can devise controlled smart contracts that prevent hacks for USD 50 million.

They choose those people who did it by themselves while receiving training in Solidity, the high-level language for implementing smart contracts. Good software developers always learn in their spare time, which is not different from the Web3 language.

Bitcoin is trading at around USD 23,738 and has accumulated an 8.0% gain over the last 24 hours. Its daily trading volume is above USD 50.48 billion, while its market capitalization is about USD 453.37 billion, according to CoinGecko.

By Alexander Salazar

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