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Author Topic: StormGain is a crypto trading platform for everyone.  (Read 34680 times)

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Re: StormGain is a crypto trading platform for everyone.
« Reply #270 on: November 15, 2022, 10:02:29 AM »
How Justin Sun (Tron) is making money on FTX's collapse

A crisis for some is an opportunity for others. Justin Sun and Sam Bankman-Fried agreed on a loophole for withdrawals that resulted in the price of Tron coins on the FTX crypto exchange jumping 170% and 1300%, respectively.

In our previous article, we explored the reasons behind FTX's crisis. In an attempt to save a sinking ship, Bankman-Fried froze withdrawals and turned to Coinbase, Kraken, Binance, Tron and other big market participants for help. After the first three declined, Sun announced his intention to explore possibly acquiring the crypto exchange.

It's worth noting that this concerns a subdivision of FTX registered in the Bahamas since financial regulators would most likely block a deal with the FTX US branch.

Details aren't known about the negotiations between FTX and Tron, but it opened up the possibility for FTX clients to withdraw funds using TRX, JST, BTT, HT coins, as well as the Tron blockchain's SUN coin.



Since other withdrawal methods are unavailable, and users are extremely concerned about completely losing their funds, panic buying of Tron network tokens has set in on FTX. As a result, SUN's price rose by 170%, while JST skyrocketed by 1300%. At its peak, the titular TRX coin reached $2.50 but is currently trading at $0.26 despite a market price of $0.06. As such, clients of the crypto exchange are losing about 80% of their capital when withdrawing their funds.



Justin Sun is benefiting from the situation by providing liquidity at inflated prices. The situation will look especially bad if he refuses to buy or provide material support to FTX.

To protect clients' interests and stop the financial bleeding, on 10 November, the Securities Commission of The Bahamas froze FTX Digital Markets and related parties' assets and suspended the crypto exchange's registration. However, the continued high exchange rate for Tron coins on FTX indicates either a withdrawal window at work or users' ignorance.

In addition to the regulator, Tether stepped in by freezing a wallet containing $46 million in USDT (which is issued on the Tron blockchain). This sets a new precedent, as Tether had previously blocked funds only at the request of law enforcement agencies. According to WhaleAlert, the wallet was frozen on 10 November.



More and more signs of FTX's impending bankruptcy are appearing, and this applies to both the Bahama and American branches. Galaxy Digital CEO Mike Novogratz, who has invested $77 million in FTX products, suggested in a recent interview that he'd lost the investment. The size of the FTX group of companies' financial hole is now estimated to be $9 billion.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #270 on: November 15, 2022, 10:02:29 AM »


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Re: StormGain is a crypto trading platform for everyone.
« Reply #271 on: November 16, 2022, 07:23:24 AM »
Weekly outflow of Bitcoin to cold wallets exceeded $3 billion

The crash of one of the largest crypto exchanges caused a mad stir in the industry. Leading market players are discussing the loss of trust built up over years, and crypto exchange clients are withdrawing coins to cold wallets en masse.

Last week, FTX joined Terra, Three Arrows Capital, Celsius and Voyager on the list of companies that have filed for bankruptcy. Poor financial management precipitated the crypto exchange's crash: the main asset held by the subsidiary investment company Alameda Research was tokens issued by FTX. The artificially created investment wealth was enhanced by active PR in the press and a long list of sponsorship deals, including the Mercedes F1.

Kraken CEO, Jesse Powell, had strong words for the FTX crash: "This is about recklessness, greed, self-interest, hubris, sociopathic behaviour that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain…An exchange implosion of this magnitude is a gift to bitcoin haters all over the world".



Since the credibility of aggregators has been undermined, the outflow of coins to cold wallets has increased. On November 12 alone, over 70,000 addresses were involved in withdrawing funds from crypto exchanges. Over the past week, customers withdrew a total of over $3 billion in BTC.



The cumulative balances of 38 crypto exchanges tracked by CryptoQuant have shrunk to lows not seen since February 2018.



The heads of Binance and MicroStrategy called on crypto enthusiasts to store the primary part of their coin holdings independently and to turn to intermediaries' services only to conduct trade operations or exchanges. As MicroStrategy CEO Michael Saylor recently said, centralised aggregators are accumulating too much power, and there is a risk of them abusing it.

Meanwhile, the cryptocurrency market is expecting new shockwaves from FTX's collapse. Crypto lender BlockFi announced a freeze on withdrawals last week; Genesis Trading announced that it's at risk of losing the $175 million it had in its FTX account; and Galaxy Digital CEO Mike Novogratz has already mentally said goodbye to the $77 million he had invested. JPMorgan predicts a new cascade of margin calls (the risk of being forced to close positions due to insufficient collateral), which could push Bitcoin to $13,000.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #271 on: November 16, 2022, 07:23:24 AM »
:)

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Re: StormGain is a crypto trading platform for everyone.
« Reply #272 on: November 17, 2022, 09:21:59 AM »
Everyone's buying Bitcoin: From shrimps to institutional investors

Last week's events have led to two interesting trends. First, cryptocurrency exchanges have experienced an influx of stablecoins to exchange for Bitcoin and Ethereum. Secondly, cryptocurrency funds saw a record-high inflow of funds in the past 14 weeks.

The total volume of stablecoins on crypto exchanges has reached an all-time high of $41 billion. On the one hand, the growth was driven by a sell-off in the DeFi sector. The market shrank from $56 billion on 6 November to the current $44 billion, and Ethereum's smart contracts alone saw the rate of stablecoin withdrawals reach $4.6 billion per month.



On the other hand, most stablecoins are like FTT (the FTX crypto exchange's token), a centralised product whose collateral should be closely examined. Because the community remains suspicious of Tether, USDT's capitalisation has experienced a drop of 5% or $3 billion over the course of the week.

In exchange for stablecoins, users are buying up Ethereum and Bitcoin to withdraw to cold wallets since the viability of decentralised assets doesn't depend on the fate of an individual platform. The rate of coin outflows from cryptocurrency exchanges reached 1.6 million/month for ETH and 106,000/month for BTC. The indicators reflect that a local bottom has been reached.



All ranked groups, from whales (>1,000 BTC) to shrimps (<1 BTC), are now accumulating. The latter group is showing activity not seen since 2017, adding 33,700 BTC to their holdings in just one week.



Edward Snowden, a former NSA employee and a participant in the Zcash launch ceremony, has talked about his investment itch on social media. He last stated his desire to buy Bitcoin in March 2020, when it was trading at $5,000.



Even the most cautious, Fed-sensitive institutional investors have boosted investments in cryptocurrency funds. Excluding short positions (when the fund profits off of Bitcoin dropping), the weekly inflow was $29.7 million.



Rising hodl sentiment suggests that Bitcoin is oversold in the valuations of the cryptocurrency community and investors, but they alone don't guarantee further growth of the cryptocurrency. FTX's bankruptcy could lead to the liquidation of several smaller crypto projects, each of which would sell coins to cover losses.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #273 on: November 18, 2022, 10:40:42 AM »
Why the USDD stablecoin exchange rate remains below parity

USDD (Tron) is a similar kind of algorithmic stablecoin as the Terra Project's infamous UST. Justin Sun issued the stablecoin shortly before Terra collapsed, subsequently promising not to repeat the situation caused by excess liquidity. But USDD is trading at a discount to the US dollar again.



The USDD went underwater on 9 November when the FTX cryptocurrency exchange faced a liquidity crunch. In an attempt to prop up its token, the FTX team began selling off existing reserves, including USDD stocks. In the tweet below is Sun's explanation for the decline in the stablecoin exchange rate.



As analysts at Lookonchain found out, the two whales dropped a total of $11 million worth of USDD during these two days, exchanging it for USDT and USDC. As a result of the sell-off, USDD fell to 97 cents per dollar and has still not recovered. With a reported oversupply of twice the issuance (a week ago, the ratio was as high as 3 to 1), the weakness of the exchange rate looks suspicious.



A detailed examination of the $1.5 billion reserve reveals that half of it is made up of burnt coins. It's a marketing trick. USDD was issued in exchange for destroying TRX but no longer plays any part in supporting the stablecoin.

USDD is an algorithmic stablecoin whose exchange rate is maintained by the ability to exchange it for TRX at any time when 1 USDD equals the corresponding amount of TRX at $1. The reserve only acts as an additional guarantee. UST worked in a similar way, and its collapse sparked conversations about the failure of algorithmic stablecoins.

The actual collateral overlaps the issue by a small margin ($777 million versus $725 million, respectively) and is represented by the following coins:



Meanwhile, $98 million of the reserve, or 13%, comes from proprietary coins, while $237 million (30%) comes from the highly volatile Bitcoin. USDC's $442 million (57%) is deposited in a smart contract on JustLend to generate passive income and can't be deployed quickly and without loss to support the stablecoin's exchange rate in the event of liquidity shortages.



For this reason, cryptocurrency reserves shouldn't be considered worthy collateral, and USDD's viability is directly dependent on TRX's capitalisation. This explains the loss of parity with a relatively small USDD sell-off.



UST collapsed when stablecoin's capitalisation exceeded 50% of the main network's value. For USDD, the figure is 16% ($725 million versus $4.7 billion). The breaking point hasn't been reached yet, but Justin Sun is working hard to lure investors with staking with an annual return of up to 64%.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #274 on: November 21, 2022, 08:47:57 AM »
Another Top 10 crypto exchange is facing big problems

FTX is dragging its business partners down with it. This time, Genesis Global Trading, one of the biggest crypto lenders, has been hit with a liquidity deficit. It has ties with the major cryptocurrency fund Grayscale and the crypto exchange Gemini. The latter ranks sixth in CoinMarketCap's general ranking.



At the end of Q3, Genesis had total active credit lines of $2.8 billion. First, Three Arrows Capital's insolvency dealt a blow. In a filed lawsuit, the losses are estimated to be at $1.2 billion. Now, it has been revealed that the company acted as a key lender to FTX, providing $175 million to the crypto exchange.



FTX's collapse was the final straw. On 16 November, Genesis announced a temporary suspension of payments on loans due to insufficient liquidity.



The refusal to lend affected the Gemini crypto exchange, which is why it announced the same day that it was suspending payments on its Earn programme. Gemini Earn lets clients receive passive income for storing cryptocurrency. Last year, yields reached 8% APY.

Because a series of crypto project bankruptcies took investor anxiety to a new level, users perceived Gemini's refusal to uphold Earn as a sign of its insolvency. Clients ran for the exits. In the previous 24 hours, the net outflow has amounted to $485 million, the largest among crypto exchanges. According to CoinDesk, the total balance in Gemini crypto wallets has dropped to $1.7 billion.



The crypto exchange also experienced an overload and failures but has already reported that it's fixing the problem and resuming work. Other than freezing the Earn programme, Gemini is claiming that there are no restrictions for customers. Withdrawals are fully available.



Due to the high interconnectivity of several crypto projects, there is a risk of the chain reaction continuing. Crypto exchanges are facing a huge outflow of coins, and lenders are up against a shortage of liquidity. In these conditions, the likelihood of Bitcoin falling in the future remains high.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #275 on: November 22, 2022, 11:41:50 AM »
El Salvador starts buying Bitcoin on a daily basis

While the outflow of Bitcoin from crypto exchanges has reached a historical record, the President of El Salvador, Nayib Bukele, is calling to separate the wheat from the chaff and has announced the start of a programme for the country to buy cryptocurrency every day.

The collapse of the third-most-visited crypto exchange caused panic among users. In just the week ending on 13 November, a record high of 97,805 BTC was withdrawn from the platform. Investors became so nervous that Gemini's refusal to credit interest as part of its Earn programme led to the extraction of over 20% of all funds on the platform in a day.



Based on the movement of coins, a host of analytical agencies have already proven that the only reason for FTX's collapse was the bubble that the team inflated itself based on the FTT token. Alameda Research and FTX controlled 86% of FTT's supply, manipulating the market price and drawing loans in exchange for tokens.

However, this did not stop people from bad-mouthing cryptocurrencies with renewed vigour and promising that the entire crypto market would soon completely collapse. The President of El Salvador, Nayib Bukele, spoke out in defence of Bitcoin, explaining its fundamental difference from fraudulent schemes to the general public.



In support of his position, Bukele announced that El Salvador would make a daily purchase of 1 BTC starting on 18 November. In September 2021, El Salvador recognised Bitcoin as legal tender alongside the US dollar and has since accumulated a total of 2381 BTC.

This move pleased Justin Sun (Tron), who also promised to buy 1 BTC per day and encouraged as many people as possible to join this "mission".



Many market participants see Bitcoin's current price as unjustifiably low. We recently reported that all cohorts of holders, from whales to shrimp, have been buying cryptocurrency. Even institutional investors have increased their investments in cryptocurrency funds.



For the crypto industry, 2022 looks like a dramatic year since many companies have faced difficulties up to and including bankruptcy following the market's decline. However, it's mostly players with a weak or dishonest business model that are experiencing problems. If we look at the statistics, multitudes more cryptocurrency exchanges were liquidated in past years.



The 2022 crisis is kicking weak players out of the game, and the reduction in the share of borrowed funds is triggering a rebalancing of assets and bringing them closer to their objective value. Regulators, who need to close a number of holes in the legislative realm, received an additional impetus to do so, while strong players rushed to increase transparency by independently disclosing the volume of their assets.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #276 on: November 23, 2022, 07:11:51 AM »
Fifty shades of red: Grayscale heightens investors' fears

The wave from FTX going underwater has hit even market participants not directly associated with the crypto exchange. Genesis Trading, which like Grayscale, is a subsidiary of Digital Currency Group, suffered the largest losses (among those publicly acknowledged) from its collapse. Both companies' business processes were separate, but this hasn't stopped investors from being seriously concerned about Grayscale's ability to meet its obligations.



Grayscale is a fund that allows institutional investors to invest in cryptocurrencies without directly owning the asset. The fund's share price is linked to the underlying asset's value, and the management fee is 2% per annum.

Because the Bitcoin ETF was never approved in the US and didn't appear in Canada until February 2021, Grayscale was a monopolist in the market. The high demand for Bitcoin and the exceptional position of the GBTC fund have led to a revaluation of shares. In 2018, the premium (the positive difference between the value of the underlying asset and the shares) was as high as 82%, and it spent most of 2020 above 15%.



The bonus went underwater exactly when the Canadian Bitcoin ETF was launched, and the subsequent market decline has only boosted the trend. As the macroeconomic environment has worsened, interest in the fund has also declined because of the lock-in: It's only possible to get rid of shares after a six-month hold period.



The discount is now 45%. In other words, a share worth $8.30 is backed by an asset worth $15.20. For some participants, such a discount looks extremely attractive. Last week, Katie Wood's ARK Investment bought $2.8 million worth of GBTC shares.

However, most market players are concerned about a series of bankruptcies of crypto funds and companies, including difficulties at parent DCG and the suspension of payments at subsidiary Genesis Capital. Grayscale, for its part, has assured the public that the problems in the affiliated companies don't affect its interests, but it also refused to publish an address with Bitcoin reserves, which flabbergasted investors.



Grayscale is currently the largest public holder of Bitcoin, with a stock of 643,572 BTC, and Coinbase is responsible for its storage. Grayscale's unwillingness to disclose the wallet address is explained by high security requirements. They agree that such a position "will be a disappointment to some" but caution that "panic… is not a good enough reason to circumvent complex security arrangements".

Some analysts believe for good reason that problems in the subsidiaries will force DCG to seek a buyer for its most liquid asset, Grayscale. If the process of changing the management reveals a lack of reserves, the cryptocurrency market will face another storm.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #277 on: November 24, 2022, 08:37:11 AM »
Recent events have spooked long-term Bitcoin holders

The bankruptcy of the third-most-visited cryptocurrency exchange, its partners' lack of liquidity and the risk of selling Grayscale, the largest fund with 643,572 BTC in stock, have led to a new panic attack among crypto investors. This time, even Bitcoin's most ardent supporters, long-term holders (LTH), have flinched.



LTH usually demonstrate the most intelligent approach, ramping up their sales as the market rises and hoarding coins during significant corrections. However, recent events have taken the ground out from under them, with coins over 3 months old making up 4% of BTC sales last week.



If we look at coins that have been inactive for six months or more, their sale would turn out to be the fifth largest in the last five years. On average, it saw daily trading of over 50,000 BTC. The peak was on 17 November at 130,600 BTC.



A total of 254,000 BTC over six months old have been sold since FTX collapsed. The last time LTHs showed such activity was during the 2021 rally, confirming atypical behaviour due to a panic attack.



But where some are scared, others see opportunities. Institutional investors increased their investments in the short Bitcoin ETF (profits are generated when the price falls) by $18.4 million over the course of the week. The balance (the difference between investments in growth and asset decline) turned record negative, reaching -$4.3 million.



Professional market participants agree that Bitcoin can expect another wave of declines. JPMorgan estimates that the chain reaction of liquidations triggered by the FTX crash will lead to further sell-offs in stocks, with Bitcoin dropping to $13,000.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #278 on: November 25, 2022, 08:36:24 AM »
The head of Binance rocks the boat yet again

A deleted tweet by Changpeng Zhao (CZ) criticising Coinbase's reserves caused discontent among the professional part of the crypto community due to its obvious destructiveness. Many reminded Binance's leader of his direct role in FTX's collapse.

We recently discussed the risk of selling the largest publicly traded crypto fund, Grayscale, which is connected to crypto trader Genesis Trading through Digital Currency Group. Invested funds stuck in FTX hit the parent company DCG, which is now forced to consider selling its most liquid asset: Grayscale.



Grayscale's Bitcoin holdings alone are estimated to be 643,572 coins (~$10.6 billion). On the one hand, the company tried to reassure investors by announcing that it's storing crypto on Coinbase. On the other hand, it declined to publish its wallet address, citing security requirements. CZ took advantage of this by hinting that these funds aren't at Coinbase.



In his now-deleted tweet, CZ wrote, "4 months ago, Coinbase...has less than 600k BTC", while the crypto exchange is supposed to be holding over 635,000 BTC for Grayscale. By doing this, the head of Binance expressed doubts about both Grayscale's supply of coins and the impartiality of Coinbase. "[I'm] just stating 'news reports'," CZ concluded.

Criticism of CZ was not long in coming since it's obvious that Coinbase can't merge data on deposits of crypto exchange clients and on custodial storage services into one pot. What's more, as a publicly traded company in the United States, financial compliance is monitored by some of the world's most stringent financial regulators.

Coinbase CEO Brian Armstrong did not directly respond to CZ but did note that all of the company's financial indicators are in the public domain and that, as of 30 September, it had 2 million BTC on its balance sheet. He also warned readers to beware of false information and attempts at manipulation.



Social media users point out that CZ is smart enough not to know what things really look like right now. That's why most criticisms focused on the Binance CEO acting as a 'villain', either to strengthen bearish sentiment or to increase his market share. People also pointed to him as the trigger for FTX's collapse since the panic began with CZ selling $0.6 billion worth of FTT tokens in early November.



Posting a message containing unverified information with obvious negative connotations about a competitor did more damage to Changpeng Zhao himself. If he did it out of ignorance, then his level of competence comes into question.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #279 on: November 28, 2022, 09:45:57 AM »
Bloodbath for miners

In the space of just a year, the cryptocurrency market has lost almost 70% of its value, putting weaker players under significant pressure. However, such a state of affairs beggars belief when you look at Bitcoin's hash ribbon: the network's total computational capacity has increased by 65% over this same period.



Viewed in month-over-month terms, miners have continued to purchase new equipment despite the macroeconomic situation and Bitcoin's decline to new local lows.



The addition of new equipment has led to an increase in computational difficulty, which, in combination with lower Bitcoin prices, has seen mining rewards hit all-time lows. Miners are already operating at a loss, with MacroMicro calculating the current mining breakeven price at somewhere around $20,000 per coin (these estimates are always given as an indication only since electricity tariffs, the equipment in use, and the amount of invested capital vary wildly from company to company).



Since Bitcoin mining is mainly the preserve of large companies with long-term strategic outlooks, some of these are prepared to mine at full capacity even when returns are negative in a bid to squeeze out competitors, so they can buy up ASICs at low prices.

There is a full-blown turf war currently taking place on the mining market. Core Scientific, which is the industry leader in terms of capacity and at one time in terms of reserves too, recorded $1.7 billion worth of losses in 2022 as it warned investors that it could be at risk of bankruptcy. This comes after it published plans to roll out more ASICs as recently as the middle of this year.



Iris Energy took out a $100 million loan, which included provisions for the purchase of new equipment. On 21 November, the company notified the SEC that it was powering down machines on account of the present low profitability, warning that it might be unable to meet its financial obligations.

In November, Argo Blockchain sold 3,843 S19J Pro ASICs that it had only just bought from Bitmain for $5.6 million as it warned investors that it could be forced to wind up operations. Back in early 2022, the company was one of the TOP 10 miners in terms of reserves, but much like Core Scientific, it was forced to sell all its coins.

Foundry, which is owned by major global mining pool Foundry USA, announced that it was buying the business of recently bankrupt Compute North. Foundry is a subsidiary of Digital Currency Group, which itself is experiencing serious difficulties as a result of investments made by another one of its subsidiaries (Genesis Trading) in the now-defunct FTX project.



Companies who have managed to hold their capital in reserves are buying equipment from their bankrupt competitors, whilst simultaneously ordering ASICs from manufacturers at "unprecedented discounts", as CleanSpark bragged in early autumn. However, the opportunities for miners are becoming fewer and fewer, and an increasing number of new companies are reporting being unable to continue working under these current conditions. Capriole fund founder Charles Edwards termed the situation on the market as a "bloodbath for Bitcoin miners", pledging that a series of bankruptcies were to come.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #280 on: November 29, 2022, 10:33:18 AM »
Are you hodling Bitcoin? Remember Mt.Gox

The collapse of the third-most-visited crypto exchange sparked a new wave of criticism directed at cryptocurrencies on social media, with predictions that Bitcoin will hit zero. But old-timers remember that Mt.Gox's influence was unmatched, but even its bankruptcy in 2014 didn't cause irreparable damage to the crypto market.



Mt.Gox was one of the first centralised crypto exchanges (CEX) to emerge, opening its doors in 2010. There were no decentralised exchanges (DEX) at the time, and the alternative to CEXs was specialised chatrooms and forums. In that scenario, the leading logic presumed that if the largest crypto exchange collapsed, the market would inevitably face a liquidity crisis.



Chainalysis analyst Eric Jardine estimates that Mt.Gox accounted for 46% of the market in its heyday, while FTX made up only 13%. On top of that, it's now much easier for the market to survive the collapse of an individual player since DEXs account for 50% of the total inflow of funds to crypto exchanges. This greatly reduces the risk of collapse for the industry, and cryptocurrencies become less volatile over time.



It took the market about two years to fully come to terms with the fall of such a big player. After that, revenues began to grow again, doubling by the end of 2015.



In its heyday, Mt.Gox was the central player, accumulating about half of all cryptocurrency transactions. After its collapse, in 2014 alone, Bitcoin received over 40 eulogies, according to a history of obituaries for the cryptocurrency on 99Bitcoins.



However, as we all know, the giant's fall failed to result to yield a significant negative effect. Over time, new solutions and players appeared, market volume grew many times over, and the number of Bitcoin eulogies reached 466. FTX's downfall will undoubtedly leave its mark, but in a couple of years, hardly anyone will even remember it anymore.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #281 on: November 30, 2022, 12:51:11 PM »
Dogecoin rises on Elon Musk's far-reaching plans

Dogecoin is seeing 45% growth in Q4, which is the best result among highly-liquid instruments. The positive movement is related to Elon Musk's purchase of Twitter and his plans to create a financial platform, X.com, and a smartphone free of Google and Apple's duopoly.



After unsuccessfully flirting with Bitcoin (see this article (https://stormgain.com/blog/how-elon-musk-flirted-with-bitcoin) for more details), Musk has turned his attention to Dogecoin. The meme coin can already be used to pay for a trip on Hyperloop or SpaceX, and it's expected to be added to Twitter to pay for premium services.



There's been a lot of social media buzz lately about the emergence of X.com and a smartphone from Elon. X.com, one of his first projects, launched as an online banking platform in the late 1990s. A year later, X.com merged with Confinity to become PayPal. In 2002, PayPal bought eBay for $1.5 billion.

In 2017, Elon Musk bought the rights to the X.com domain, explaining that it was out of sentimentality. Now he wants to go back to his roots to create "the most valuable national institution in the world". X.com's integration with Twitter would make the social media "extremely valuable", Musk shared his far-reaching plans at the Baron Funds Investment Conference in early November.



Back in June, during a meeting with Twitter employees, Musk indicated that the company should orient itself on the Chinese WeChat, which combines a social media network, a payment system, a gaming platform and a channel for interacting with official agencies. Apparently, Musk plans to start with finance via X.com.

Another curious move from the businessman could be the launch of his own smartphone if the duopolists Google and Apple remove Twitter from their app stores.



Elon Musk claims to support free speech on Twitter. However, some posts conflict with the internal rules of the platforms mentioned above. In 2020 alone, Apple deleted nearly 30,000 apps due to them containing "undesirable content".

Releasing a smartphone is unlikely to take place, but the community met the news with enthusiasm. That said, the emergence of X.com and the integration of cryptocurrencies into payment solutions is just a matter of time.


StormGain Analytics Team (https://stormgain.com/)
(a cryptocurrency trading, exchange and storage platform)

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Re: StormGain is a crypto trading platform for everyone.
« Reply #282 on: December 01, 2022, 02:24:53 PM »
Short-term holders have reached the bottom

An analysis of network activity indicates the pain investors have suffered, as well as the turning points reached in some indicators. And while mining companies and institutional investors continue to dump Bitcoin, small players represented by shrimps are actively accumulating.

The bankruptcy of one of the largest cryptocurrency exchanges led to a new drop for Bitcoin. The loss suffered by investors in November was the fourth-largest in history, with the weekly realised loss reaching $10.2 billion.



Institutional investors ramped up their investments in cryptocurrency funds in the first week of November, overcoming a two-month stagnation. Net weekly inflows into Bitcoin totalled $29.7 million. But another round of crisis that started with FTX's collapse sparked large withdrawals of funds and investments into short positions (profits are formed when the price falls), totalling $19.3 million in the past week.



Bitcoin's decline to new local lows has resulted in a rare phenomenon: The price has fallen below the coin's realised value for short-term holders (STH). The situation is typical of reaching the bottom, as the following chart clearly shows:



Shrimps (<1 BTC) are the strongest believers in Bitcoin being oversold, having added 96,200 BTC to their stocks in less than a month. Their total reserve now exceeds 1.2 million BTC or 6.3% of the circulating supply.



However, investors should keep their cool, as the shocks aren't over yet.



There's a full-blown turf war currently taking place in the mining market, with FTX dragging partners down with it. According to the realised value metric for STH, it can take two to ten months for the bottom to form. This timing fits well with the position held by the Fed, whose officials have only just begun to prepare the public for a potential slowdown in monetary policy tightening.


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Re: StormGain is a crypto trading platform for everyone.
« Reply #283 on: December 02, 2022, 09:33:49 AM »
Bitcoin outflows from crypto exchanges at a historic high

The difficult situation in the cryptocurrency market has led to a drop in trust among centralised exchange (CEX) users. Some fear a repeat of what happened with FTX. Others believe in the power of Bitcoin and prefer to wait out this 'time of troubles' outside the market. Altogether, these factors are the reasons behind the record outflow of coins, which has reached 178,000 BTC per month.



As a result of the massive exodus of traders, nearly every coin that hit crypto exchanges in the past 12 months has returned to cold wallets. The supply currently available on CEXs is only 12% of the total supply, which corresponds to the numbers seen in December 2017.



Binance continues to see a high volume of trading. Judging by the activity, users didn't attach any importance to Changpeng Zhao's latest move (learn more here). However, outside of this crypto exchange, weekly activity has dropped to levels last seen in February 2021.



Following the shrimps (<1 BTC), who added 96,200 BTC to their reserves in November, crabs (1-10 BTC) showed record accumulation, buying 192,000 BTC worth $3.1 billion in just one month. The outflow is coming primarily from the DeFi sector, which has lost 24% of its capitalisation during this time.



These trends and the depth of the market drop have historical precedents.



If we compare the current cycle from high to low with the bear markets of 2014 and 2018, we'll see a lot of similarities. In 2014-2015, the price dropped by 85% and lasted 407 days. In 2018, it was an 84% decline that lasted 364 days. The current fall is by 77% and has lasted 376 days.



The market is approaching the stage when the bottom forms. However, there are still several shocks ahead before Bitcoin returns to long-term growth.


StormGain Analytics Team (https://stormgain.com/)
(a cryptocurrency trading, exchange and storage platform)

 

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