Roger Ver Denies Accusations from CoinFLEX CEO that He Owes the Company $47 Million in USDC

Audy Castañeda
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Roger Ver Denies Accusations from CoinFLEX CEO that He Owes the Company $47 Million in USDC

Without mentioning CoinFLEX by name, Roger Ver said that he had not “defaulted on a debt to a counterparty,” claiming that the platform owed him “a significant sum of money”.

Roger Ver, an early Bitcoin investor and proponent of Bitcoin Cash, has responded to allegations from crypto investment platform CoinFLEX regarding alleged $47 million in debt.

In a tweet on Tuesday, Ver – without mentioning CoinFLEX by name – said it had not “defaulted on a debt to a counterparty,” and claimed the firm owed it “a substantial sum of money.” The denial followed rumors on social media that the BCH advocate was involved in the platform halting withdrawals due to “a high-net-worth client who has stakes in many large cryptocurrency firms” failing to cover his debts.

CoinFLEX CEO Responds via Twitter

CoinFLEX CEO Mark Lamb took to Twitter shortly after the release to claim that the company had a written contract with Ver “requiring him to personally guarantee any negative balance in his CoinFLEX account and replenish margin regularly.” Lamb posted on Twitter that, “Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top-up margin regularly. He has been in default of this agreement and we have served a notice of default.”

“It is unfortunate that Roger Ver has to resort to these kinds of tactics to divert attention from his responsibilities,” said CoinFLEX CEO.

Report on a CoinFLEX Account Losses

Cointelegraph reported on Tuesday that a CoinFLEX account – owned by a “high-integrity and wealthy person” – incurred $47 million in losses after it was allowed to reach a negative balance without being liquidated. The platform planned to fix its liquidity shortage by issuing a new token, Recovery Value USD (rvUSD), starting June 28, with user withdrawals expected to resume on June 30.

The price of FLEX, the native token of CoinFLEX, has fallen by more than 84% in the last 30 days, from $1.19 to $0.80 following statements by Lamb and Ver on Twitter.

CoinFLEX Plans

It is worth noting that Crypto investment platform CoinFLEX aims to remedy its liquidity shortage and resume user withdrawals by selling bad debt through a new $47 million token offering.

Under normal circumstances, the crypto lender liquidates the accounts before they reach zero. However, Lamb explained that in this case, CoinFLEX opened a one-of-a-kind “unliquidated recourse account,” in which it agreed not to liquidate the account, and the borrower agreed to keep it filled with plenty of capital.

Things did not go according to plan, as the account went negative, which supposedly caused a liquidity crisis in the company. Lamb added that this account was the only one on CoinFLEX with negative equity.

To prevent this from happening again, Lamb stated that it will no longer issue unliquidated recourse accounts. His company will also enhance its transparency by making the US dollar notional value of each account’s futures positions public, through a third-party audit firm.

By Audy Castaneda

A South Korean Company Offering Hosting to Mine Bitcoin Scams Millions of US Dollars

Alexander Salazar
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A South Korean Company Offering Hosting to Mine Bitcoin Scams Millions of US Dollars

The Ethlot website has been down for some days, and the company removed all its chat groups. The scam may have amounted to USD 10 million, stolen from around 2,000 investors.

Around a thousand people in South Korea were recently victims of a scam applied to Bitcoin (BTC) mining equipment. A company reportedly stole billions of won (KRW) after deceiving unsuspecting investors to take advantage of them.

The company, Ethlot, raised significant money from investors in the Asian country. The latter paid for alleged Bitcoin mining equipment installed in Kazakhstan and Russia, expecting returns between 0.7% and 3% daily.

Since the advertising and collection campaign began in January, around 2,000 investors have deposited their capital. The company promised them they would make money with the mining equipment.

According to the victims, Ethlot opened an office in Seoul in November to recruit investors through the Ethlot Me website. They also exploited social networks, showing videos of how the farms operated to potential investors.

The Website of Ethlot Is Down

The official page, the blogs, and other related sites of Ethlot Me have been down for some days. The company has not communicated with the investors, probably fleeing with up to USD 10 million. However, the South Korean authorities said that future investigations would reveal further details.

When the investors try to enter the Ethlot website, it does not work, throwing an error. Although the Instagram account is still active, the company has not posted anything since May 24th. The company has received e-mails from its investors but has not given them any response.

At least 20 victims made their first public complaint, reporting the disappearance of the website and their funds. They said Ethlot committed that fraud, which the authorities started investigating a few days ago. The Seoul Metropolitan Police Agency is already in charge of solving the case.

They Used Chat Rooms to Operate Their Business

According to the police, the administrator of Ethlot operated from the chat rooms of an app called Kakao. A post from the company through a general chat room, a VIP room, a VVIP room, and a top-tier SVIP room promised significant earnings. They told their victims they could make up to USD 32 daily or USD 960 monthly, with an average investment of USD 2,300.

Based on the size of their investment, individuals had access to each of those rooms. Ethlot promised that the more they invested, the better mining rigs they could use to make money.

According to Ethlot, the earnings could amount to USD 120 daily or USD 3,600 monthly on an investment of USD 6,300. They said they would make that money available to investors every seven days, but that never happened.

The authorities still have to check whether the complaints are valid and what will happen to the lost funds. Investors should research well before risking their money on new businesses to avoid suffering scams.

By Alexander Salazar

What does Warren Buffett (really) Say about Bitcoin?

Audy Castañeda
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What does Warren Buffett (really) Say about Bitcoin?

The question arises and he answers. It is well known that the legendary investor, Warren Buffett, is not a fan of Bitcoin. Many are upset. Many ignore it. Who listens to it?

In relation to Warren Buffett, nobody could say that he lacks experience. Ninety-one years are several springs. If you bought your first stock at the age of eleven, this means you’ve been in the business for 80 years. Not everyone can boast of a career like his.

The “Oracle of Omaha” is a living legend. He is one of the most successful investors in history. In addition, it is an example of perseverance, dedication, and prudence. It could be said that he has the reputation of a sage. He is not a Steve Jobs or an Elon Musk. Buffett generates a different kind of vibe. He is not a futuristic genius. He’s also not a shark like Gordon Gekko. Warren Buffett fits more into the image of the good-natured grandfather who recommends good sense and measure. Warren Buffett is not a fan of Bitcoin.

It’s a Mistake to Reject Buffett Because of His Age

It is natural for younger people to be tempted to look down on older generations. The new always wants to replace the old. The new values ​​always want to abolish the old values. It is customary for the “arrogant” young man to come into conflict with the “obtuse” old man. Ultimately, it is the eternal struggle between innovation and tradition, that is, the need to change and the need to conserve.

It’s a Mistake to Reject Buffett for Being Rich and Powerful

The “revolutionaries” always assume that the rich and powerful only want to defend the status quo so as not to lose their privileges. That is not always true. Success is not always blinding. In many cases, it is liberating. Why? Because it can allow us to see beyond resentment, hunger, and need.

It is a Mistake to Reject Buffett for Having a Different Opinion than Ours

The opinion of others must be listened to with great interest. The goal of a debate is not to win the contest. It is not a battle between adversaries. The goal is to find the truth. And the most enriching thing in the world is to change your mind. Dogmas, pre-established truths, and prejudices are the pillars of the closed mind. The worst thing we can do is listen to an argument biased and defensive, with our heads already made up from the start.

What Buffett Says about Bitcoin

At the last annual meeting of shareholders of Berkshire Hathaway, on May 1, Warren Buffett made this reflection:

“If the people in this room own all the farmland in America and you offer me a 1% stake and say, ‘pay us a bargain price of $25 billion,’ I’ll write you a check this afternoon.”

 “If you tell me you own 1% of the apartment buildings in the United States, and you offer me a 1% stake for another $25 billion, for example, I’ll write you another check. It is very simple”.

“Now, if you told me you had all the Bitcoin in the world and offered it to me for just $25, I wouldn’t take it. What would you do with it?

Warren Buffett does not invest in non-performing assets. That does not imply that doing so is “wrong”. In fact, his arguments are quite sensible. However, that does not imply that someone cannot put their money in non-performing/speculative assets. Obviously, they are more difficult assets to value objectively than in the case of a company. In addition, it is very difficult to accurately predict future demand. It also involves taking a fairly high risk. In this case, the dumbest theory applies. Pragmatism beats theory. The secret is to be the least of fools.

By Audy Castaneda

Robert Kiyosaki Plans to Buy Bitcoin When Its Price Tests USD 1,100

Alexander Salazar
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Robert Kiyosaki Plans to Buy Bitcoin When Its Price Tests USD 1,100

Kiyosaki says that he will buy more Bitcoin when investors sell their holdings and the price drops. Some analysts believe the value of BTC will reach USD 28,000, while others think it will get to USD 8,000.

Bitcoin (BTC) has traded between USD 20,000 and USD 21,700 over the past six days, showing stability between the supply and demand strength. That range gives traders a slight reassurance, as it has not touched its low of the year at USD 18,000 again.

Experts in the Bitcoin market give forecasts very different from each other. Some believe its bottom was USD 18,000 and only needs to go up, as the CEO of Binance has stated. Others consider there will still be lower prices for the cryptocurrency this season.

Robert Kiyosaki, the author of Rich Dad Poor Dad, is a BTC enthusiast and an investor. He recently said he was waiting for Bitcoin to test USD 1,100. The investment specialist added he would buy more if the price recovered or investors quit.

His words surprised several followers, who could not believe he had predicted a drop toward USD 1,100. That would mean a five-year pullback to its price of April 2017, when it last traded that figure.

The renowned author argued that many Bitcoin investors sell their holdings at a loss out of fear. Meanwhile, he maintains that those with a winning mind can learn from losing.

He pointed out that he would buy more BTC when others sell their coins and the price drops. Although the value of the cryptocurrency may fall sharply, he thinks it will rise in the long run.

There is no guarantee of that happening, but it is advisable to anticipate possible risks to avoid unwanted scenarios.

An Analyst Says Whether Bitcoin Will Break to the Downside or the Upside

Analyst Tom DeMark has not seen any clear breach of current support or resistance despite the drop in the price of Bitcoin and Ether (ETH). He expects two critical price points that can help determine where those cryptocurrencies will head next.

He argues that a sustained nine-hour candlestick close above USD 22,100 could trigger a breakout to the upside. In that way, he foresees that the price of Bitcoin might go up to between USD 25,000 and USD 27,000.

However, the expert explains that the next crucial zone of interest lies at USD 19,000 if it breaks below the USD 20,800 support. Therefore, analyzing how the market behaves in the coming days will be necessary to see the consolidated strength. The demand for BTC might drive its price higher, or the supply might take the cryptocurrency to the downside.

BTC is trading at around USD 20,363 and has accumulated a 1.8% loss over the last 24 hours. While its daily trading volume is above USD 18.18 billion, its market capitalization is about USD 386.89 billion, according to CoinGecko.

Concerning the price of ETH, DeMark believes it should not drop below USD 1,100 as a wave of massive might take it to USD 600. He considers it must rise from the resistance at USD 1,320 to USD 1,700.

By Alexander Salazar

The Technical Analysis of Cardano Indicates It May Be the Best Time to Buy

Alexander Salazar
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The Technical Analysis of Cardano Indicates It May Be the Best Time to Buy

The ENV channels show that traders drive prices higher while a long wick indicates rejection to the downside. The token has reached an oversold zone with low volume in the long term, but that is only a bullish signal.

Cardano (ADA) is one of the cryptocurrencies competing to dethrone the Ethereum native token Ether (ETH). However, it has suffered a considerable drop from its all-time high above USD 3 to its current price of USD 0.48. This time may be the best to buy it, as the price may rise and investor bearish sentiment seems to have changed.

ADA is trading at around USD 0.4694 and has accumulated a 3.7% loss over the last 24 hours. While its daily trading volume is above USD 681.13 million, its market capitalization is about USD 15.86 billion, according to CoinGecko.

Investors Take Advantage to Buy Cardano as It Strengthens

The upcoming Cardano upgrade will include a node for use with the Vasil hard fork.

The ADA DEV team had several days of delays, usually happening among programmers, especially if they have to work on many details. That new upgrade will be positive for dApp developers and might have a favorable impact on the price.

According to LunarCrush, some social volumes of ADA have been increasing after reaching a bottom. The most prominent was that of YouTube, which rose from 2 to 21 points in a few days.

It is relevant to mention the recent investments by leading entities like Grayscale, which recently increased its Cardano allocation to 32.33%. That is positive for the crypto asset in question, but it is also a risk warning for Ether.

The Technical Analysis Indicates the Trend Is Bullish

The technical indicators in the 4-hour timeframe show a bullish trend, but there is still a resistance level at USD 0.52. The price must go beyond that ceiling to look for new areas of interest.

Besides, that channel has followed the trend with increasingly high lows. In addition, the ENV channels show that traders buy/sell and drive prices higher. However, the candlesticks are at the bottom, while a long wick indicates rejection to the downside. Therefore, a short-term rally should take the ADA price to around USD 0.52.

The Stochastic RSI located in oversold territories below 20 points confirms that fact. Even though its moving averages have not crossed to the upside, it is a sign of an imminent change in trend.

Weekly Charts of the Price of Cardano

The weekly time frame shows that the token has reached an oversold zone with low volume in the long term. As that is only a bullish signal, the price will be seeking to get to the ENV channels within the next few months. The primary resistance is at USD 0.72 and then will look to reach the US dollar again.

Before confirming a rise in the weekly timeframe, the RSI must point above 50 points and exceed the 14-period MA.

By Alexander Salazar

Institutional Traders Dump Bitcoin at Record Rate, but other Metrics Show Bullish Behavior

Jenson Nunez
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Institutional Traders Dump Bitcoin at Record Rate, but other Metrics Show Bullish Behavior

Bitcoin funds observed record outflows of $453 million last week, and Glassnode highlighted that this period is the worst bear cycle in history, but other metrics present gains.

Bitcoin sinks below $21,000 as institutional traders are dumping the flagship digital asset at a record pace. However, other metrics suggest that the downtrend could reach a level to reverse.

Bitcoin hedge funds experienced record outflows valued at $453 million last week, according to a recent report from CoinShares. The emergence that possibly caused the crash of Bitcoin to a range near $17,000 is perhaps the largest in terms of dollar value in the crypto history.

CoinShares expressed that regarding assets under management (AUM), the outflows were the third-largest fluctuations ever recorded; accounting for 1.2% of the total AUM of all the funds it tracks. The worst emergencies recorded happened during the 2018 market, which accounted for 1.6% of total AUM.

According to the report, the outflows, which focused on Bitcoin, erased almost every inflow from the past six months and left Bitcoin’s whole AUM at $24.5 billion, its lowest point since early 2021.

Bitcoin Funds See Record Outflows

The funds CoinShares follows, such as the popular ETPs, mutual funds, and OTC trusts, are investment products that grant traders exposure to digital assets without holding said currencies. When investors purchase through a crypto fund, it gets called an inflow; it is usually a bullish movement, and when they sell, it gets called an exit, often described as a bleak signal.

According to the report, the outflows arrived almost exclusively from Canadian bourses and a specific, unnamed supplier. However, it was not all negative, as other BTC fund providers also observed inflows of at least $70 million, highlighting the highly polarized sentiment among digital asset investors.

In addition to Bitcoin, funds backed by other assets, such as Ethereum, Short Bitcoin, Cardano, Tron, and Polkadot, reported total inflows of $30 million last week, and net outflows totaling $423 million, as highlighted by Decrypt.

Meanwhile, other reports also make different interpretations on the subject, including one from blockchain analytics firm Glassnode, which described the recent cycle as the worst in Bitcoin history. Bitcoin and Ethereum traded below their historical price achieved in previous cycles.

The Worst Cycle

However, despite the eccentricities observed, Glassnode highlighted that there was no reason to think this cycle was so different from the previous ones, considering that the response from investors to this Crashdown was unusual.

As the global capitalization fell below $1 trillion, a long distance from its $3 trillion high in November, fear, and uncertainty invaded investors, who decided to sell at record losses. The recent Crashdown in prices to the $20,000 field got caused by the most prominent USD-denominated daily realized loss in history.

By: Jenson Nuñez

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