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Author Topic: StormGain is a crypto trading platform for everyone.  (Read 117949 times)

Offline stormgain

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Re: StormGain is a crypto trading platform for everyone.
« Reply #375 on: May 19, 2023, 10:47:08 AM »
Dogecoin hype: the number of transactions exceeds Bitcoin and Ethereum's

Introduced in January by Casey Rodarmor, the Ordinals protocol first made waves on the Bitcoin network. Now it's reached Dogecoin. The protocol allows users to number mined units (Satoshi for BTC or Elons for DOGE) and thus transfer various 'files' over the network. This can be digital items (similar to NFTs) or coins (similar to ERC-20). On the Dogecoin network, the newly appeared elements were dubbed 'doginals', and fungible coins were called DRC-20.

To assess the new protocol's impact, we'll take a look at the Bitcoin network, which saw its highest load in the past year. Digital items garnered the first wave of interest, although they were soon completely replaced by BRC-20 tokens. The hype was so intense that transactions with Ordinals reached 65% of the total amount on certain days.



Now, doginals are taking Dogecoin by storm. In just the past day, the number of transactions set a record, exceeding 1.1 million. The previous high of 200,000 was set in 2013.



In terms of this indicator, Dogecoin surpassed both Bitcoin and Ethereum.



Dogecoin users were the luckiest. They didn't run into higher fees due to the heightened demand for transactions. Dogecoin is 4.7 times faster than Bitcoin and can hit an average speed of up to 33 TPS, which means it can process nearly 3 million transactions per day. That's why even a 40-fold increase didn't overload the network.

The introduction of ordinals also had no effect on Dogecoin's price.



Doginals are exchanged due to the speculative interest of a narrow circle of crypto enthusiasts. What's more, the process itself remains inconvenient because of the lack of the same kind of services and applications that Ethereum or Solana boast. Traders hope that some of these quasi-coins or NFTs will achieve cult status in the future. However, in most cases, such expectations are met only with losses.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #375 on: May 19, 2023, 10:47:08 AM »

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Re: StormGain is a crypto trading platform for everyone.
« Reply #376 on: May 22, 2023, 11:19:05 AM »
Warning: Bitcoin was always part of Tether's reserves

The low financial transparency of Tether's reserves and the lack of a full-fledged audit sometimes lead to misinterpretations of fresh data. For example, at the end of Q1, the issuer of the USDT stablecoin released a report from BDO Italian, which for the first time, singled out reserves in Bitcoin as a separate line item. This allowed a number of media outlets to interpret events as new purchases of cryptocurrency for the profits generated by the transactions. K33 Research warns that it was misleading readers.

First of all, one should note that the release of quarterly results isn't an audit. BDO creates those based on data provided by Tether. The numbers should be approached sceptically, as independent accounting organisations have stated on multiple occasions. Reports don't contain any information on Tether's obligations to third parties, and the categories of other investments and loans have never been disclosed. Moreover, Tether once sought a court order to remove its obligation to publicly disclose reserves.



In the latest report, Bitcoin had its own separate line. This came amid Tether gaining significant profits from operations and reducing competitors' market share. At the year's end, BUSD may completely disappear due to NYFDS's prohibition on Paxos in February from minting this stablecoin for Binance. USDC faced a trust crisis after it risked losing 8% of its reserves due to SVB's bank collapse.



The amount of Bitcoin held in reserve matched the net income generated in Q1, which reached $1.48 billion (Tether isn't a public company; the data were made available in a press release). This led to the spread of misinformation. In fact, Bitcoin has been in its reserves for a long time.

Firstly, this is evidenced by the strong correlation of the 'Other' part of the reserves category priced in Bitcoin.



Secondly, back in 2019, a lawsuit against Tether revealed that the company had spent some of its reserves to buy Bitcoin. Lawyer David Miller admitted in court: "In addition to cash and cash equivalents, Tether invested in other instruments, including Bitcoin."



The above arguments indicate that USDT has not been sufficiently backed by cash equivalents, at least historically. Buying Bitcoin with reserve funds is only partly justified if the cryptocurrency's price is rising. Apart from Bitcoin, corporate bonds accounted for almost half of all reserves two years ago.



If the value of the portfolio declines and there's a rapid outflow of funds, USDT risks a liquidity crisis, which would lead to a loss of its peg to the US dollar. This would consequently provoke panic due to the stable coin's significant market share and widespread use.

For the past two years, the company has been busy rebalancing reserves and improving its financial sustainability, but it's almost impossible to evaluate its success without a decent and complete audit.

However, the tensions between Tether and law enforcement aren't over yet. More proceedings are on the way. Last year, the court demanded ledgers and other financial records, including a cash flow history, for the past few years. The claims revolve around the issuance of unsecured USDTs and market manipulation.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #377 on: May 23, 2023, 11:01:24 AM »
Should portfolio investing be applied to cryptocurrencies?

Portfolio investing is widely used when dealing with stocks in order to balance risks or earn profit from the growth of a specific economic sector. Some investors try applying this practice to the cryptocurrency market, but it's hard to say that it performs well.

Analytics firm K33 Research has calculated the yield of a portfolio consisting of the top 10 cryptocurrencies as of January 2018. At that time, the following assets topped the chart:



If a potential investor were to evenly distribute the amount invested across the listed cryptocurrencies, the return on the portfolio would now be -53%. By comparison, the S&P 500 was up 51% in the same period.



Among altcoins, only Ethereum managed to meet investors' expectations and compete with Bitcoin. The other coins have lost capitalisation for various reasons. For example, XRP (Ripple), which ranked second, has faced pressure from a US regulator and legal claims for allegedly holding an illegal ICO. Meanwhile, number 5 ranked Cardano has stumbled upon technical issues after it rolled out support for smart contracts.



However, that doesn't mean that altcoins can't be considered for long-term investing. Dogecoin has grown seven-fold to $0.07 per coin, and Solana, which premiered on crypto exchanges in 2020, still trades at more than 20 times its offering price.



The above arguments point to the poor performance of traditional portfolio investing. The cryptocurrency market is young, and coins see continuous rotation. Like a stock index, the underlying asset is Bitcoin, which many analysts recognise as a 'store of value'. However, one should be cautious when buying altcoins and focus on those with significant growth potential. One should also be ready to get rid of assets just in case the project faces any issues.


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« Reply #378 on: May 24, 2023, 10:54:20 AM »
Why is Bitcoin not increasing in line with transaction demand?

Last week, the number of daily transactions on the Bitcoin network reached an all-time high of 682,000 per day, but the price didn't rise with the increased load.



Ordinals caused the heightened demand. We've already covered this new way of transmitting digital objects. Since sending ordinals is usually done via small amounts of BTC, the network's cash turnover has remained low. Two years ago, indicators reached $13 billion, but now they don't exceed $4.5 billion.



The significant gap between the number of transactions and transfer volume hints at a lack of external interest in ordinals. This is also confirmed by a drop in the inflow of funds to crypto exchanges from the record-high of $4.2 billion two years ago to the current $0.6 billion. Simply put, users aren't rushing to buy Bitcoin and then carry out ordinal transactions.



Institutional investors (a key investment power since 2020) have now reduced their market presence for the fifth week in a row. During this time, they've withdrawn $150 million from Bitcoin funds.



But the majority of holders aim to keep Bitcoin in the hope that its price will continue to rise.



Long-term holders, i.e., those whose coins have been idle for over 155 days, have set a new accumulation volume record with 14.5 million BTC, and the MVRV ratio indicates that the cryptocurrency is oversold, as it has been in previous bearish cycles.



Financial markets are currently experiencing uncertainty due to a possible reversal of the Fed's monetary policy stance. CME's FedWatch tool predicts that there is an 80% chance that the interest rate will remain unchanged at the Fed's upcoming meeting in June. If the regulator pauses its interest rate hikes, it may give Bitcoin momentum, with some players, including institutional investors, turning their eyes once again to the cryptocurrency.


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« Reply #379 on: May 25, 2023, 03:53:57 PM »
Bitcoin: hoarding sentiment at its highest

Bitcoin's great take-off in Q1 brought the market back to life, but the following calm led activity to reach three-year lows. Trading volume now stands at $146 million, while the record for realised gains is $3.5 billion and $2.3 billion for recorded losses.



Much of the result is related to investors' unwillingness to spend coins at current prices. Hoarding sentiments are reaching new highs, with long-term holders (LTHs) accumulating 14.5 million BTC. Glassnode considers LTHs to be those with coins that haven't moved for over 155 days. The addresses of cryptocurrency exchanges and other aggregators are excluded from the analysis.



Liveliness is another indicator to measure sentiment. When the majority of coins remain idle, the indicator decreases. But when the expenditure of both new and old coins grows, liveliness does, too (read more about liveliness here). Despite the market's decline in 2022, hoarding sentiment still prevails.



Even short-term holders (STHs) remain indifferent to sales at current prices. The indicator of destroyed coins for the past 90 days remains around local lows. The last significant activity of this group was observed during November's FTX collapse.



Excluding skyrocketing network activity caused by the implementation of ordinals, users froze in anticipation of Bitcoin reaching new highs.



The trigger that gets this group moving again could be news from the US on the extremely last-minute national debt ceiling or a pause in the Fed's hawkish monetary policy.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #380 on: May 26, 2023, 11:05:30 AM »
TUSD achieves second-highest trading volume among stablecoins

The stablecoin market is going through hard times, as evidenced by its 14 consecutive months of decline. In May, the sector's capitalisation fell by another 0.5% to $130 billion. TrueUSD, however, avoided the negative trend. Its market capitalisation increased 2.7 fold to $2 billion, and, due to high demand during certain times, the coin was worth 20% more than the US dollar.



Demand for the stablecoin jumped after Binance decided to offer zero commissions in mid-March when trading pairs with TUSD. It's now the only stablecoin with 0% commission on the largest exchange by trading volume. A similar decision was made by Huobi and a number of other crypto exchanges.

In April, TUSD's trade volume jumped by 670% to 38.4 billion, second only to USDT. In terms of market depth, the BTC/TUSD pair on Binance also ranked second behind BTC/USDT.



Despite achieving significant success in gaining acceptance, the stablecoin has a market share of just 1.5%. At the same time, more questions are arising for USDT, whose market share has reached 75%. Its trading volume has been declining over the past two months, and its market capitalisation is close to setting an all-time record. In contrast, Kaiko has identified a natural decrease in market capitalisation as the trading volume for BUSD and USDC falls.



According to Kaiko Research Director Clara Medalie, this discrepancy may be due to market makers' use of USDT in transactions between Tron, Tether and Binance. However, even when taking this assumption into account, the growth in its market capitalisation growth still looks doubtful. Tether's representatives have not yet commented on issues in the community.



The ongoing litigation against Tether over claims about the quality of its reserves and allegations of potential manipulation of Bitcoin's price is casting a shadow over the entire cryptocurrency market. If allegations of misconduct by the company are confirmed, the impact would hit a wide range of crypto assets due to the stablecoin's widespread use.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #381 on: May 30, 2023, 08:06:25 AM »
Avalanche prepares the ground for growth in 2023

Avalanche is one of the most promising young projects. Thanks to separating its blockchain into functional subnets, the current average transaction completion rate is 0.8 seconds. Ethereum, with its 6 minutes, looks like a dinosaur by comparison.



Launched 30 months ago, Avalanche was the first blockchain to partner with Amazon in January 2023. It allows developers to offer scalable blockchain decisions to users and governments that utilise Amazon Web Services.

This led to a 2.7-fold increase in the number of active addresses this year to 97,000.



On 25 May, Circle announced that it was unrolling the EUROC stablecoin on Avalanche. EUROC is ranked third among euro-based stablecoins, with a market cap of $52 million.



That's nothing compared to the overall stablecoin market, but the unjustified tightening of regulation in the US and the imminent adoption of the MiCA bill in the EU have already led to a shift in the financial sector. The migration of companies from the US to Europe and increased transparency when dealing with cryptocurrencies in the EU will lead to higher demand for euro-based stablecoins.

This will consequently affect interest in Avalanche as the costs users and operators encounter are way lower than those of Ethereum.



Avalanche is now trading 28% higher than it was in early 2023, but that's still a drawdown of 90% against its all-time high. The coin looks undervalued compared to the prospects and growth of the projects involved in the network.



Futures traders share this opinion. Open interest set an 11-month record on 18 April, and the 2023 funding rate is mostly in the green zone.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #381 on: May 30, 2023, 08:06:25 AM »


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« Reply #382 on: May 31, 2023, 11:15:16 AM »
The spring is tightening: Bitcoin's exchange volumes and volatility plummet

Barring an increase in transactions caused by the frenzy around ordinals, Bitcoin network usage will hit a two-year low. The indicator of exchange activity is used to illustrate the situation. It gives the ratio of weekly deposit and withdrawal volumes over the past seven days with the six-month average. Recent activity is down 27.3% for cryptocurrencies as a whole and 29% for Binance in particular.



Monthly realised volatility declined even further, falling to 34.1%. Historically, this level has only been observed on one day out of five, which foreshadows strong price swings in the near future.



In terms of price targets, the price will be locked in between the realised price for active investors ($33,500) and investors' MVRV ($17,700).



Meanwhile, the unrealised profit/loss ratio for short-term holders (STH) returned to breakeven levels after being in a zone of euphoria. This return often becomes a support level, after which the price rushes up again (indicated by x̅ on the chart).



On the macroeconomic side, as the cryptocurrency market matures, Bitcoin's correlation with traditional financial instruments increases. The following example shows the nearly synchronous movements of gold, silver and Bitcoin over the past 12 months. The exclusion was triggered by the collapse of the third most-visited crypto exchange, FTX.



We are now in the compression stage of the spring since the decline in activity is not specific to Bitcoin.



The protracted dance over increasing the US debt ceiling or the Fed pausing the tightening of its monetary policy could lead to an imbalance as soon as June.


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« Reply #383 on: June 01, 2023, 11:30:46 AM »
Why institutional investors are pulling out of Bitcoin

Cryptocurrency funds have been facing a month-and-a-half of investment outflows. In the past week, $39 million was pulled out, and in the past six weeks, the total amounted to $200 million. Among crypto coins, Bitcoin has seen the largest outflow, with the US leading by country.



Applications for an exchange-traded fund (ETF) for spot Bitcoin are still being rejected by regulators. Only ETFs for cryptocurrency futures contracts are allowed. The first and largest such fund in the US is ProShares (BITO), and it has seen the biggest investment outflows.



More specifically, it's due to the particular features of how futures contracts work. As the contracts expire, the fund buys new ones, with the difference being traded between them. Contracts with a later date are now more expensive than those that expire earlier. This phenomenon is called contango.

In such a case, when switching from one contract to another, the fund buys a new one at a premium, thereby creating a loss. This 'contango leak' has resulted in investments via ETFs lagging Bitcoin by 14% year-to-date.



Thanks to last year's bearish trends, BITO lagged behind Bitcoin by just 1.8%, a number that seemed fairly acceptable. However, the cryptocurrency's resumption of upward momentum in its price has led to an increase in contango and a dip in investor returns.



K33 Research analyst Vetle Lunde warned in a note to investors that the high contango situation is likely to continue in light of the cryptocurrency's expected price growth. That said, long-term investments in Bitcoin via futures ETFs are looking increasingly less attractive.


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« Reply #384 on: June 02, 2023, 09:55:37 AM »
Complexity has eaten away at miners' profits from Bitcoin's rise

Bitcoin's return to growth in 2023 has been met with enthusiasm by miners actively building up their computing power. In the past five months, the complexity has increased by the same 45% as for the whole of 2022.



The computational complexity increases or decreases in response to the amount of power involved, with the expectation that it takes 10 minutes to mine one block. Adjustments are made automatically every 2016 blocks, which is about once every fortnight.



Complexity has no direct connection to Bitcoin's price. However, a price increase increases the profitability of mining and attracts new entrants or encourages old ones to increase their capacity. In the pursuit of profit, miners are causing complexity to increase.

As a result of the new equipment being connected at a rapid clip, mining yields have rolled back to the level last seen on 13 January, when Bitcoin was trading at $19,000.



The only thing holding yields relatively high and that caused a surge in yields in May is the hype around ordinals. The Ordinals protocol allows digital objects (similar to NFTs) to be exchanged on the Bitcoin network. Due to some crypto enthusiasts' excitement about the innovation, network congestion has skyrocketed, resulting in higher fees.

On 8 May, commissions exceeded the award for block production for the first time since 2017. We can see on the following chart that the percentage of income from fees remains high. The peak on the chart doesn't reach 100% due to the averaging of values.



Once interest in ordinals subsides, miners' revenues will drop even more if all other things are equal. Some cooling to minting digital objects compared to early May can already be observed.



As we've previously described, the hash rate has become hopelessly detached from Bitcoin's price due to fierce competition between mining companies' expansion by raising investments from third parties. For example, Core Scientific, the company with the highest capacity and level of debt, filed for Chapter 11 bankruptcy late last year. But this hasn't affected the network's hash rate. Despite the business being restructured and ownership potentially changing, most ASICs continue to mine Bitcoin.


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« Reply #385 on: June 05, 2023, 12:11:01 PM »
Litecoin challenges Bitcoin

Prior to the advent of ordinals, Litecoin remained in the shadow of its bigger brother, despite having ultra-low fees and faster transaction completion rates. However, continued high network utilisation and cryptocurrency exchanges' increased Bitcoin withdrawal fees have significantly increased Litecoin's appeal for transfers.



In May, the use of ordinals (similar to NFTs and ERC-20 tokens) led to congestion on the Bitcoin network. At an average speed of 7 to 8 transactions per second (TPS), it can't handle over 700,000 transactions per day.

As transactions queued up in a long line, users began raising fees for miners to get the transfer processed as quickly as possible. As a result, the average commission on 8 May exceeded $30 and is still above the annual average.



The situation was bound to increase the appeal of Litecoin (as we wrote about earlier), which, with fees of $0.01, is 8 times faster than Bitcoin (56 TPS versus 7 TPS, respectively). As a result of many users switching over to Litecoin, the cryptocurrency network had already processed 13% more transactions than Bitcoin by 25 May. And since 8 May (Bitcoin's peak fee day), Litecoin's price has risen 20% against Bitcoin's.



The Litecoin network overtook both Bitcoin and Ethereum in terms of the number of active addresses on 9 May, breaking its previous record by 33%.



Another positive factor is the halving event that's due to take place in early August. Litecoin will cut its blockchain mining fee before other major networks do, thus reducing the volume of its circulating supply, which is good news for its price. Typically, after a halving event, cryptocurrencies show sustained growth in the medium term.


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« Reply #386 on: June 06, 2023, 10:04:25 AM »
Ethereum staking hits DeFi

On 9 November 2021, the decentralised finance (DeFi) sector peaked at $179 billion in staked funds. Since then, it has fallen to nearly a quarter of that amount, $47 billion. It didn't receive much of a boost in 2023, adding only 26% total value locked (TVL).



The upheaval began with the collapse of UST (Terra), the third-largest stablecoin, which reached a market capitalisation of $20 billion at its peak. The coin experienced high demand in DeFi thanks to its high staking yield, which went as high as 20%. UST's fall caused a significant outflow of funds from other projects, as well, some of which encountered a liquidity crisis and went under as a result.

The sector's decline can be more clearly reflected through the capitalisation of leading tokens (excluding Ethereum) of projects such as Uniswap, AAVE, Maker and others. Analyst agency Glassnode has dubbed them DeFi 'blue chips'. When expressed in either ETH or USD terms, the index shows an over 90% drawdown.



Since Ethereum is most often staked for entry into DeFi (until 2021, its share exceeded 95%), project coins must provide a return that at least exceeds this cryptocurrency's growth.



"At least" because with the move to proof-of-staking (PoS), there is the possibility of a passive income. The staking yield is currently 4.6%, and in May, it was as high as 8%.

Another important aspect of tokenomics is inflation. Staking rewards are paid in the coins of the selected project. Therefore, the greater the offered yield is, the greater the inflation that increased coinage causes. This largely explains why DeFi project coins have fallen harder than Ethereum. This also includes funds that are staked at the start of projects and earmarked for future payments to developers or investors. Every infusion of liquidity undermines the value of the coin.

Unlike most competitors in the sector under review, Ethereum remains deflationary after its transition to PoS. More coins are burned through transactions than are minted to reward validators.



The last hurdle for investors was when staked funds were frozen. On 12 April, the Shanghai hardfork lifted this restriction. Since that date, the number of new addresses created in 'blue chip' DeFi has plummeted from 1,000 to 600 per day.



Following the decline in confidence in DeFi due to a series of crashes in 2022 and the introduction of full staking in Ethereum, other projects are finding it increasingly difficult to attract grassroots investment. Meanwhile, Ethereum has seen the number of its validators increase by 13% to 698,000 since 12 April.


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« Reply #387 on: June 07, 2023, 10:46:29 AM »
Binance disgraced: SEC files suit for multiple violations

US regulators are stepping up measures to squeeze the cryptocurrency sector out of the traditional financial system. Following the closure of cryptocurrency-friendly banks, the crypto exchanges Kraken, Coinbase and Binance have received pre-trial complaints. Negotiations over Binance have stalled, with the Commodity Futures Trading Commission (CFTC) first suing and now the Securities and Exchange Commission (SEC) joining.

In many ways, the SEC's claims echo those of the CFTC: serving US customers in circumvention of KYC and AML policies, wilful violation of securities/commodity options laws, market manipulation, commingling of customer and company funds, Binance.US' reliance on the will of CEO Changpeng Zhao (CZ), etc.

The newest and most serious among a long list of allegations is the disclosure of a scheme to move client funds into the accounts of companies controlled by Binance (Sigma Chain bought the yacht for $11 million) and into CZ's personal account (at least $62.5 million).



The SEC is demanding in court the cancellation of the illicit proceeds, the payment of fines and compensation, as well as a complete ban on Binance and CZ's operations in the US.

The supervisory authorities' effort to bring claims against Binance on its own shows that there was not only potential abuse of investor confidence by CZ but also gaps in the company's legal and regulatory framework. Essentially, the lawsuits from the CFTC call BUSD, ETH and LTC commodities, while the SEC views them as securities. However, none of the regulators have yet disclosed their criteria for assigning the cryptocurrencies any kind of status.

In an interview, SEC chairman Gary Gensler said that all cryptocurrencies except Bitcoin are securities. Based on court documents, Cointelegraph estimates that the SEC regards 61 tokens as securities. Recently added to that list are Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland, Algorand, Axie Infinity and Coti.



The confusion surrounding the status of cryptocurrencies is paving the way for new lawsuits against other market participants. First and foremost, this concerns Coinbase, the largest crypto exchange in the US, which is already ignoring the pre-trial claim and preparing to defend its right to provide staking in court. The SEC's extension of the list of securities allows a crypto exchange to be incriminated for violating the law, including for being an unlicensed securities broker.

While some financiers support the regulators' push to corner the cryptocurrency industry, others point to the risk of the US lagging behind in this promising industry and an outflow of capital and investment to cryptocurrency-friendly jurisdictions.

Of course, if Binance loses, the markets will face a new wave of turmoil, but the trial could last for over a year. An example of this is that the SEC has been suing Ripple since 2020 in an attempt to have XRP deemed a security. A decision in the case is expected this year.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #388 on: June 08, 2023, 01:07:32 PM »
Crypto storm: users hurriedly withdraw Bitcoin

The SEC sued Binance and Coinbase and filed a motion to freeze the assets of Binance.US. SEC chief Gary Gensler said in an interview on Tuesday that Americans want just one digital currency: the US dollar.

"We don't need more digital currency," Gensler said. "We already have digital currency. It's called the US dollar. It's called the euro, or it's called the yen; they're all digital right now. We already have digital investments... We have not seen, over the centuries, that economies and the public need more than one way to move value," he added.

The similarity in the claims against Binance and Coinbase boils down to allegations of illegally trading securities. According to the SEC, cryptocurrencies such as Ethereum, Cardano, Solana and many others are securities. The argument further goes that it is illegal to provide staking since it is the prerogative of the securities market to generate passive income.

The lawsuits come amidst a blatantly weak regulatory framework and a lack of criteria for dividing cryptocurrencies into asset classes. Even the SEC itself does not have an understanding of how to do this, even after three years of ongoing litigation between the SEC and Ripple. In its defence, the cryptocurrency company is using a speech by one of the regulator's department heads, William Hinman, in which he recognises XRP and ETH as commodities.

There is no unanimity among regulators either, as the CFTC's lawsuit against Binance (filed in late March) calls ETH, BUSD and several other cryptocurrencies commodities. If cryptocurrencies are recognised as commodities, part of the SEC's claim against Binance and all charges against Coinbase would be unfounded.

All this points to one thing: regulators have launched a crusade against the crypto industry, backed by the Biden administration, and will push for significant restrictions on the features crypto exchanges offer. Similar to the covert restriction of banking services to undesirable companies in 2013, the current developments have been dubbed Chokepoint 2.0 by the community.

As Cardano developer Charles Hoskinson noted, the ultimate goal of the current agenda is to implement central bank digital currencies (CBDC) that would entail full control of every financial step.



The SEC's attack led to an active withdrawal of coins to cold wallets. In the last 24 hours, net outflows from Binance exceeded $1 billion and $600 million from Coinbase. The total stock of Bitcoin on cryptocurrency exchanges reached a multi-year low of 2.15 million BTC.



There is rotation among cryptocurrencies, with trading volume in DeFi jumping 444% in the past 48 hours. Bitcoin managed to recoup its losses after the news and returned to the $27,000 mark.



The pressure on the crypto industry comes amid a record decline in the dollar's share of international reserves and settlements, as well as the US economy lying in a fragile balance between inflation and recession.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #389 on: June 09, 2023, 12:28:23 PM »
Binance loses market share

The SEC filed a lawsuit against Binance. CEO Changpeng Zhao (CZ) has been issued a notice requiring him or his representative to appear in court within 21 days. The SEC has also asked the court to freeze funds (so far without withdrawal restrictions) in the US subsidiary's accounts because of the risk of assets slipping away and investors' risk of losing funds. This news shook the markets, and investors headed for the exits.

According to CoinDesk, yesterday morning, the exchange rate difference for leading instruments on Binance.US was as high as 6%. Bitcoin traded at $28,800 there, while it exchanged hands at just over $27,000 on other platforms.



This premium indicates an increased demand for the cryptocurrency for later withdrawal to cold wallets. Demand for Bitcoin, Ethereum and USDT was further fuelled by Binance.US's decision to stop trading for more than 90 trading pairs. Later, this list was shortened to 10 pairs. The crypto exchange also halted off-market trades.



Within a day of the lawsuit's announcement, net outflows from Binance exceeded $1 billion, of which $400 million came from BTC, $200 million were from ETH, and another $440 million were from stablecoins.



Due to increased regulatory pressure (the CFTC sued Binance in March), the crypto exchange's stock declined in value by 11%, for a total drop of 43% in Q2. The negative trend will likely remain because of the significant client outflow from the US division.



Like Binance.US, Coinbase also received a notice that accused it of illegally dealing in securities. According to SEC Chairman Gary Gensler, all altcoins are securities, which is why crypto exchanges must have a securities market participant licence.

Coinbase and Robinhood have spoken of months of negotiations with the SEC over the past three years to obtain the necessary approval, but they still haven't heard back from the regulator. The criteria for dividing cryptocurrencies into securities and commodities haven't yet been disclosed.

The community thinks that these developments demonstrate an attempt by regulators to push the cryptocurrency industry to the margins of the financial system rather than developing regulations to integrate it fully.


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