Bitfinex crypto exchange has registered a significant spike in short positions over the past 4 hours. A total of 10,000 BTC were shorted on the crypto exchange in the said period estimated to be worth $33 million.

10k btc in less than 4 hours. pic.twitter.com/ccybKBMlJs

— WhalePanda (@WhalePanda) June 25, 2021

The sharp rise in short positions was attributed to whale loaning a significant portion on Bitfinex. According to Wu Blockchain, a whale loaned over 15,000 BTC on the exchange that broke the long-short ratio and the number of short positions increased significantly.

The whale loaned 15,157 bitcoins on Bitfinex. With the large number of bitcoins lent, the balance of long-short ratio was broken, the proportion of shorts rose, and bitcoin fell below 33,000 US dollars. pic.twitter.com/Go1DzUZKaq

— Wu Blockchain (@WuBlockchain) June 25, 2021

Many of crypto Twitter also believed the shorting could be influenced by Elon Musk’s trolling of Bitcoin earlier today. Musk has been obsessed with taking potshots at the Bitcoin community ever since his fallout a couple of months back. Musk’s tweet is believed to have a volatile impact on the market and many accuse him of knowingly manipulating the crypto market.

Earlier today Musk had taken another potshot on Bitcoin Maxis with a joke.

“That’s not funny!” – Bitcoin maxis

— Elon Musk (@elonmusk) June 25, 2021

Would Bitcoin Head into Another Bearish Weekend?
Apart from heavy lending by Bitcoin whale and the possible Musk effect, many also pointed towards the expiry of the CME options contracts that are believed to have a bearish and volatile impact on Bitcoin price. Over the past couple of months since the May second week 50% crash, the weekends have proven to be bearish with low liquidity.

The top cryptocurrency bounced back strongly from its Tuesday crash below the key support level of $30,000 recording a new 5-month low but failed to get past the $35k resistance. BTC has lost nearly half of its valuation from April ATH, but Bitcoin proponents such as Mike Novogratz and few others beleive the market is from reaching its top.source

Leading tokenized asset management portfolio PieDAO has announced details of a strategic partnership with Linear Finance (LINA).
The partnership between Linear Finance and PieDAO focuses on creating a new synthetic token dubbed LDEFI. According to an official press release shared with Altcoin Buzz, the proposed synthetic token will be made up of PiedDAO’s large-cap (DEFI+L), and small-cap (DEFI+S) decentralized finance (DeFi) index funds.

The partnership with Linear Finance is a step in the right direction of achieving PieDAO’s goal: to provide financial freedom to all. Additionally, it combines PieDAO’s carefully researched index methodology with Linear Finance’s Linear.Exchange to list the upcoming synthetic token.”

The partnership will further improve users’ access to top DeFi projects in the blockchain and cryptocurrency space.

Thanks to the partnership, PieDAO will also launch a governance model. The governance layer will be directed at the tokenized portfolio allocation using the LDEFI token. Furthermore, the proposed governance layer will be open to everyone on the Ethereum network. This, in turn, will bring PieDAO closer to its vision of providing financial freedom to all.

More on LDEFI
The LDEFI token officially went live on June 17, 2021. Following its launch, the token will provide interested investors with access to a myriad of DeFi tokens without the need to hold real digital assets. LDEFI token holders will be able to invest in DeFi tokens like LINK, UNI, SNX, SUSHI, BAL, PNT, MLN, COMP, etc. Apart from providing access to DeFi projects, the partnership will also provide users with financial services ranging from decentralized stablecoins to derivatives to oracle protocols, and Layer 2 scaling solutions.

Currently, the synthetic token consists of 70% Large-cap (DEFI+L) index funds, and 30% Small-cap (DEFI+S) index fund portfolio. Linear Finance, via its top-notch protocol architecture, will make it possible for token holders to trade between portfolios without liquidity limitation, slippage, and at a low cost. The PieDAO portfolio is also currently available on Binance Smart Chain (BSC). Plans are, however, in place to launch on Polkadot.

Flexibility in The DeFi Space Receives a Boost
Speaking on the partnership, Co-founder of Linear Finance, Kelvin Tai, disclosed that synthetic assets in the crypto space have introduced a special kind of flexibility to crypto investors. Giving them the ability to “[…] make investments without holding the underlying asset.”

Tai further added that Linear finance takes this flexibility a notch higher by making it possible to tokenize a myriad of crypto assets. Therefore introducing the “[…] ability to invest in multiple asset classes on a single platform.” Adding that the partnership will help to eliminate conventional barriers to entry like time, money, and expertise. This would increase adoption by allowing users to participate in DeFi without any fears.

LDEFI will be governed and maintained by PieDAO’s rapidly growing community of DeFi pioneers, and enthusiasts. These fast-rising community members also include important members of top projects like MakerDAO, Synthetix, and Compound.

DOUGH Price
At the time of publication, DOUGH was trading at $0.465502 with a 24-hour Trading Volume of $81,380. The token price is up 1% over the last 24 hours.source

Ethereum's London hardfork is one of the most anticipated updates for the entire blockchain scene in 2021. It includes the controversial Ethereum Improvement Proposal 1559.

Like clockwork: Ethereum's London hardfork is activated on Ropsten testnet
According to the Twitter post by Ethereum (ETH) core developer Tim Beiko, today, on June 24, 2021 at 02:23 UTC on block height 10499401, London hardfork was activated on the Ropsten test network.

We have a block! Took a bit longer than expected, but London is live on Ropsten 😅https://t.co/wM2xepis0y

— Tim Beiko | timbeiko.eth 🦇🔊 (@TimBeiko) June 24, 2021
Mr. Beiko admitted that activation took 'a bit longer' than it was previously expected. At the same time this update is the first-ever activation of London in Ethereum's (ETH) testnets.

On June 30, this crucial update will be implemented on the Goerli test network on Rinkeby and the activation is expected to come by July 7, 2021.

The developer added that Ropsten test network validates blocks with reduced speed due to lack of miners who upgrade their equipment in time as the mining in testnet is largely altruistic.

Why is EIP 1559 important?
London hardfork includes five Ethereum Improvement Proposals (EIPs) while EIP 1559 is the most crucial one. It introduces dynamic fees structure and implements periodical fee burnings.

Thus, with EIP 1559 activated, Ethereum (ETH) becomes a deflationary asset for the first time in its history. Some analysts treat this as a bullish catalyst for Ethereum (ETH) price.

However, as Ethereum (ETH) gas fees will be reduced for users, some Ethereum (ETH) miners have opposed this hardfork for years.

Ethereum's London is among the latest network-scale upgrades before the migration of Ethereum (ETH) towards ETH2 with its sharding and Proof-of-Stake (PoS) consensus.source

Bitcoin's mempool has cleared for the first time since November 2020. According to Timothy Peterson, investment manager of Сane Island Alternative Advisors company, clearing of the mempool could indicate a market crash.

The #bitcoin mempool is a good indicator of bubbles. The mempool is where pending transactions wait to be processed before being added to the. This week it has cleared out for the first time since Nov 2020 (pre-bubble). pic.twitter.com/okfpBwazV8

— Timothy Peterson (@nsquaredcrypto) June 13, 2021
He notes the largest digital currency's mempool is an excellent indicator of demand. Clearing the mempool may also indicate the BTC demand has reached its lowest levels. It exerts downward pressure on the asset's price:

Price *should* adjust down to Metcalfe value over the coming months, but leverage and inertia may help prop it up.

A mempool is the place where Bitcoin network transactions wait to be processed before being added to the blockchain.

In February, the number of pending transactions in the Bitcoin network's mempool exceeded 125,000, which is equivalent to about 149 megabytes of data. This was enough to fill at least 107 of the following blocks.

Two months earlier, in December 2020, more than 143,000 unconfirmed transactions accumulated in the mempool were accumulated. Before that, the mempool was cleared to zero in January 2020. All this time, there was a bull market.source

Upbit, South Korea’s biggest cryptocurrency exchange, is preparing legal action against crypto coin issuer Pica Project, whose tokens it has delisted from its platform.

Fast facts:

Amid a bitter battle over the number of Pica coins on the market, and a claim by Pica Project that Upbit misappropriated at least 4.5 million of its coins, the exchange is suing the coin issuer over what it describes as maliciously spreading false information.
Upbit delisted the Pica coin last Thursday, after saying in March that it had found evidence that the coin’s sales had not been properly disclosed to investors. According to Upbit, the circulation of Pica in March was to be about 120 million coins, but in reality, a total of around 330 million coins were in circulation.
Pica Project responded to that assertion in a blog post just last week. On Thursday it said it found Upbit’s reasons for delisting its coin difficult to understand. The coin issuer argued that the full number of Pica coins in circulation had been disclosed to investors via publicity platform Xangle.io.
That didn’t stop the delisting the very next day, and the day after that, Pica hit back in another blog post, accusing Upbit of misusing 5 million of the coins that the exchange had requested for use in a marketing promotion when the Pica token was listed in January. Pica alleged that less than 10 percent of the 5 million coins had been used for the event, writing in its post that it was likely that coins earmarked exclusively for the event may have been sold and traded on Upbit’s platform.
Upbit denies that claim, saying it did not demand coins in exchange for listing. Upbit wrote in an official statement in response to Pica Project’s blog post that it had not used or sold any remaining coins after the event, and it would hold the Pica Project team legally responsible for the malicious dissemination of false information.source

Coinbase has established a grip in the cryptocurrency space, remaining one of the attractive destinations for investors intending to take part in the digital currency space. Consequently, the exchange is expected to continue recording an influx of more users.

According to data analyzed by Finbold, Coinbase verified users are projected to hit 72.8 million by the end of 2021. The projection is based on an analysis of the exchange’s verified user growth rate over the last three years and several fundamental factors that will be mentioned later in our article.

Based on the projection, the exchange verified users would grow by 30% from the 56 million recorded as of Q1 2021, resulting in 16.8 million new users by Q4, 2021. In 2020, Coinbase had 35 million verified users, while in 2019, the figure was at 30 million. Since opening its business in 2012, Coinbase attained the one million users milestone in 2014.

Factors behind Coinbase projected user growth
The number of verified users reflects Coinbase’s position as one of the most popular crypto exchanges in the United States with an array of listed digital currencies. Notably, the company has gained prominence based on good security measures, having recorded no hacking incidents, unlike competitors.

Furthermore, Coinbase has shown adherence to pursuing strict United States compliance on cryptocurrency businesses. Notably, by being on the right side of the law, the exchange has continued to gain the trust of more consumers, as reflected on the verified users.

The projected user growth is also guided by fundamental factors, including the increasing focus on cryptocurrency ETFs. Currently, the United States regulator, the Securities Exchange Commission, has received numerous Bitcoin ETF applications, with analysts projecting approval is in sight.

Investment in crypto ETFs is growing in popularity worldwide, and when the U.S. catches up, exchanges like Coinbase will likely benefit from the projected influx of users. Furthermore, ETFs, in general, have been surging in popularity thanks to their convenient and transparent nature.

The April Coinbase IPO will also likely continue giving the exchange exposure to more users and its native products. For instance, the exchange will potentially attract more institutional and mainstream investors who significantly influence the crypto space.

Notably, Coinbase’s products like Coinbase Pro are well-positioned to cater to this group of investors. The IPO also highlighted the exchange position in the crypto space after playing a pivotal role in Bitcoin’s all-time high of $64,800 in April.

Although Bitcoin’s value has plunged with asset trading sideways, the cryptocurrency’s sentiments also put focus on exchanges like Coinbase. Most crypto opinion leaders agree that the correction of bitcoin is forming ground for the asset’s resurgence towards the end of 2021. Historically, such a resurgence has always resulted in new investors from the retails side as the fear of missing out sets in. Thus, the situation places exchanges like Coinbase to reap.

Furthermore, the recent bitcoin rally has mainly been inspired by the entry of institutions into space. Coinbase has established itself as an exchange that caters to this group of investors. Notably, the exchange had earlier indicated it would continue to build its Prime brokerage offering and use its Bison Trails acquisition to hold a grip on institutions.

Coinbase business model to help attract more users
Elsewhere, the Coinbase business model is working based on the ability to attract and retain more users. The ability saw the exchange record historical revenue during Q1 2021.

The company recorded revenue of $1.80 billion, up from $585 million in the fourth quarter of 2020 and $191 million a year ago. The company also recorded a record-breaking net profit of $765 million which doubled compared to $322 million registered during Q4 2020. The strong quarter performance places Coinbase in line for sustainable growth in future.

Furthermore, Coinbase’s other aspects like the reputation in the industry, user-friendly design, educational materials, competitive fees, and the continued addition of new digital assets will continue playing a role in user growth.

source

IOHK CEO Charles Hoskinson has announced that the Cardano developer is going to release a new research paper on algorithmic stablecoins, which maintain peg by automatically adjusting their supply.

The billionaire claims that the paper is some “unfinished business” from his Bitshares days.

Hoskinson co-founded Bitshares together with prominent cryptocurrency entrepreneur Daniel Larimer, but the two parted ways for unknown reasons.

Back in January, IOHK and EMURGO announced that the AgeUSD stablecoin would launch on the Ergo blockchain.

Last August, Hoskinson said that he was “obsessed” with decentralized finance while adding that Cardano’s algorithmic stablecoin would be “significantly better” than MakerDAO.source

Quick Take
The Sichuan government is initially targeting 26 mining farms that have been getting a supply of hydroelectricity from state-owned power plants and distributors.
State-owned power entities have been ordered to expand their inspections on other mining facilities that are using privately supplied energy.
Sichuan, a major Chinese bitcoin mining hub, due to its abundant hydroelectricity, is the latest province that has issued an order to shut down local bitcoin miners.

The Sichuan Energy Bureau and the Sichuan Development and Reformation Commission jointly issued a document on Friday to their subordinate state-owned power generators and distributors.

Based on the document that is circulating on WeChat, seen and verified by The Block, the government agencies have outlined two main measures in regards to closing down local bitcoin miners. This will have been triggered by the high-level comment on bitcoin mining brought up in the Chinese State Council's meeting last month.

The measures will directly impact the 26 mining entities that had tried to work with the government, those that had set up in specific industrial zones and registered with the government. It will also seek to crack down on smaller mining operations that get their electricity privately from smaller power plants — under the radar of the State Grid — but this may be less effective.

The first measure
The first measure requires the subordinate state-owned power generators and distributors, such as the State Grid, to cut off their hydroelectricity supply to 26 entities that have so far been reported as bitcoin mining facilities, by June 20.

Earlier this month, the Sichuan Energy Bureau summoned a meeting with local state-owned power entities to understand how many mining facilities they have been supplying energy to and the impact on the local hydroelectricity economy if they are ordered to shut down.

Based on the list of the 26 entities enclosed at the end of the document, most of them had, in fact, been granted to operate at the Hydroelectricity Consumption Industrial Demonstration Zones in Sichuan in what was previously believed to be a compliant method.

As The Block reported last year, such industrial parks were set up by the Sichuan government in a bid to attract energy-intensive industries to help consume the excessive hydroelectricity in the region during the summer rainy season that would otherwise be wasted.

Since 2020, dozens of bitcoin mining facilities, including many of the entities on the government's document list, had been approved to reside in these industrial parks to enjoy stable supply from state-owned power grid.

In return, they went through an application process to be registered with the government as well as pay a premium fee to the local government and the State Grid. But perhaps it's because of this prior registration with the local government that they became the first victims of the crackdown.

The second measure
There is still a significant number of operating bitcoin mining facilities in Sichuan and Yunnan that receive privately supplied energy from smaller power plants, in a way that's under the government's or state-owned power grid's radar. This so-called direct-supply model is a common and yet grey area practice since it bypasses the State Grid as a power distribution middleman.

It's also part of the reason that the Sichuan government set up the hydroelectricity consumption park to battle against these private energy deals between smaller power plants and bitcoin mining sites.

Hence the second measure is that the two provincial government agencies are requiring state-owned power entities as well as municipal and county level governments to expand inspections on their network and immediately cut supply to additional mining facilities if found. They must also compile further progress updates by June 25.

It remains to be seen to what extent subordinate state-owned power plants will inspect bitcoin mining farms using privately generated hydroelectricity. In the meantime, Bitcoin's hash rate has remained steady since Thursday.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.source