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346

News related to Crypto / Troubling signs for Bitcoin as U.S. investors pull back

« on: August 11, 2023, 10:59:36 AM »

The Bitcoin market is showing signs of subdued activity as the summer season draws to a close, with key indicators pointing to a lack of strong demand. The Coinbase premium index, which measures the buying pressure of US investors through the price difference between Coinbase Pro (USD pair) and Binance (USDT pair), has recently taken a significant dip.

Typically, a surge in premium values indicates robust buying activity. However, the recent drop coincides with Bitcoin's decline below the $29,000 threshold, mirroring a previous low witnessed after the FTX collapse. This suggests that the selling pressure is originated from Coinbase, often associated with US investors.

Further supporting the notion of limited spot demand is an unusually low spot-to-futures ratio, which has reached a five-year low. Dylan LeClair, an analyst at Bitcoin Magazine, points out that derivative traders have gained prominence in the market, a theory substantiated by the year-to-date peak in open interest.

LeClair notes that those holding a bearish stance in the spot market have diminishing their coin reserves. cause, spot market bulls either have their holdings fully committed or are waiting in the wings within traditional finance (TradFi), anticipating the approval of a

A Bitcoin price slowdown during the tail end of summer is accompanied by noticeable trends indicating subdued demand. The Coinbase premium index, a gauge of buying pressure from US investors calculated by comparing Coinbase Pro (USD pair) and Binance (USDT pair) prices, has shown a significant decline.

Usually, a surge in premium values reflects strong buying activity. However, the recent drop corresponds with Bitcoin's slide below the $29,000 level, echoing a previous low seen after the FTX collapse. This suggests that the selling pressure originates from Coinbase, a platform favored by US investors.

Further underscoring the limited spot demand is an unusually low spot-to-futures ratio, which has reached a five-year low. Dylan LeClair, an analyst at Bitcoin Magazine, emphasizes that derivative traders have gained prominence in the market, a notion substantiated by the year-to-date peak in open interest.

LeClair observes that those with a bearish outlook in the spot market have diminishing their coin reserves. On the other hand, those bullish on the spot market have either fully committed their holdings or are awaiting developments within traditional finance (TradFi), anticipating the potential of an ETF.

347

News related to Crypto / SoFi Bank’s Crypto Holdings Surge to $170 Million, Including $ADA and $DOGE

« on: August 11, 2023, 10:40:47 AM »

SoFi, a banking institution headquartered in San Francisco, has recently announced in its second-quarter earnings report that its cryptocurrency holdings has surged to nearly $170 million. Among its prominent holdings, Bitcoin ($BTC), Ethereum ($ETH), Dogecoin ($DOGE), and Cardano ($ADA) stand out as the largest contributors.

The financial institution, which caters to more than six million clients, detailed its cryptocurrency portfolio, indicating that out of the total $166 million in holdings, Bitcoin accounts for $82 million, while Ethereum holds a substantial portion at $55 million. Cardano represents around $4.5 million, and Dogecoin, the meme-inspired digital currency, contributes $4.9 million to the portfolio.

The earnings report for the second quarter also unveiled SoFi's investments in other cryptocurrencies, including $2.1 million in Solana ($SOL), $3.5 million in Litecoin ($LTC), and $2.9 million in Ethereum Classic ($ETC). Additionally, the institution maintains holdings exceeding $10 million in various other digital assets.

An investor presentation further highlighted SoFi's robust growth within the cryptocurrency sector. The bank has successfully onboarded over half a million new clients and now facilitates trading for more than 22 different digital currencies.

SoFi doesn't merely hold digital assets; it enables its users to engage in buying and selling them, albeit without offering staking services. The institution initially introduced cryptocurrency services to its users in September 2019 through a partnership with Coibase, a cryptocurrency exchange listed on Nasdaq.

Significantly, SoFi formally obtained banking status in February 2022 following the acquisition of a banking license. This positioning sets it apart as one of the few traditional banks venturing into the cryptocurrency domain.

Tensions extend last year when a U.S. Senate committee expresses concerns about SoFi's adherence to banking regulations and the institution of an impending deadline in January 2024. U.S. Legislators have notable scrutiny towards digital assets, especially after the FTX collapse, with regulatory actions by the Securities and Exchange Commission (SEC) targeting leading exchanges like Binance and Conbase.

348

News related to Crypto / South Korean Authorities Arrest Crypto Exchange Chief on Suspected Multi-Million

« on: August 11, 2023, 10:16:14 AM »

On August 7th, Jinwook Shin, the CEO of Bitsonic, a cryptocurrency exchange, was apprehended by South Korean law enforcement. The arrest stems from allegations of embezzlement involving investments and deposits made by users of the exchange.

According to a report from South Korean news agency Chosun Biz, Shin is accused of orchestrating counterfeit activities, including manipulating cryptocurrency prices and trading volumes on Bitsonic. These actions report led to the misappropriation of approximately 10 billion won ($7.5 million) from exchange users between January 2019 and May 2021.

Prosecutors have claimed that Shin operated Bitsonic during this period but refrained from purchasing cryptocurrency. Despite encountering liquidity issues and suspending withdrawals on the platform, Shin allegedly continued to provide cryptocurrencies to new customers.

Bitsonic, which ceased operations in August 2021 "internal and external issues," saw further controversy when 11 domestic cryptocurrency platforms were shut down by South Korean authorities for meaningful counterfeit behavior.

The investigation also implicated the company's vice president, who is said to have played a role in a scheme to acquire crypto assets held by the CEO within the exchange system. This manipulation purportedly involved the use of a shell company based in Singapore.

Meanwhile, the vice president of Bitsonic is expected to face trial without being held in preliminary detention.

South Korean authorities have recently taken a firm stance against counterfeit activities within the digital asset. Notably, the Korea Securities Depository partnered with Code, a firm specializing in Travel Rules, to promote the issuance and use of Legal Entity Identifiers (LEI) within the virtual asset market. This collaborative effort to curb unlawful activities in the market while enhancing investor protection.

Furthermore, reports suggest that the Korean government is developing a crypto-tracking system to combat cybercrime and bolster security measures within the cryptocurrency landscape.

349

News related to Crypto / Binance Drops Bombshell, Announces Delisting of Cardano and Polygon

« on: August 11, 2023, 08:33:39 AM »

Binance, the world's leading cryptocurrency exchange, has announced significant updates for its Binance Futures trading platform. In a recent communication addressed to its user base, known as 'Binancians,' Binance Futures discloses its intention to delist perpetual contracts associated with Cardano (ADA) and Polygon (MATIC). This action will render these contracts unavailable for trading on the Binance platform starting August 17, 2023, at precisely 09:00 (UTC).

Although the precise motivations behind Binance's delisting decision remain undisclosed, the exchange its approach. All ongoing trading positions tied to ADABUSD and MATICBUSD perpetual contracts will be automatically settled and closed as part of this transition. Subsequent to the settlement process, these contracts will be removed from the roster of tradable assets.

Furthermore, Binance Futures announced adjustments to the leverage and margin tiers for both ADABUSD and MATICBUSD perpetual contracts, effective August 10, 2023, from 12:30 (UTC). Users who hold existing positions predating these modifications will experience a direct impact.

Given this announcement, users are strongly advised to make any necessary adjustments promptly to avoid encountering automatic settlements on the Binance Futures platform. Additionally, as of August 17, 2023, at 08:30 (UTC), users will no longer be able to initiate new positions involving these particular contracts.

Binance Futures serves as a trading arena within Binance, catering to traders interested in both quarterly and perpetual futures contracts. While quarterly contracts come with a three-month expiration timeframe, perpetual contracts retain their value indefinitely without any expiration date.

350

News related to Crypto / Telegram trading bots are hot, but don’t trust them for custody — Security firms

« on: August 11, 2023, 08:15:32 AM »

Blockchain security experts are raising red flags about the security practices of Telegram trading bots, which are transforming the messaging platform into a pseudo-crypto marketplace. These bots present considerable security concerns for users and warrant closer examination, according to blockchain security firms.

Although these trading bots have been in existence for years, they have recently garnered attention due to the surge in crypto market activity and the increasing value of associated bot tokens, as highlighted by blockchain security firm CertiK in conversation with Cointelegraph.

Presently, the collective market capitalization of Telegram bot tokens is approaching the $250 million mark, as reported by CoinGecko. Among these tokens, Unibot takes the lead in terms of size, accompanied by other popular options like Wagie Bot and Mizar.

These bots operate as automated programs within the Telegram platform, permitting users to execute trades on decentralized exchanges (DEXs) by interacting with them through the messaging app.

CertiK, however, has issued a warning that numerous Telegram bots generate cryptocurrency wallets for users, but only a fraction of them actually provide the private key necessary for true ownership and control.

The whereabouts of these private keys are uncertain—whether they are accessible to project personnel, stored on users' devices, or backed up via Telegram.

"While these platforms offer high-volume DEX trading options, they should be considered extremely high-risk and unsuitable for medium to long-term storage of assets," cautioned CertiK.

Unibot, boasting a market capitalization surpassing $185 million, emerges as the largest Telegram bot token in terms of market value. Recent data from Dune Analytics reveals that Unibot users have conducted trades worth $155 million across more than 230,000 transactions using the bot. Notably, there is a noticeable trading volume surge among Unibot users since late May, particularly peaking around late July.

In an August 5th statement, blockchain security firm Beosin echoed concerns about the security vulnerabilities associated with these bots, particularly emphasizing the risks linked to their centralized nature in relation to users' private wallet keys. Beosin also highlighted the lack of open-sourced code and security audits among many of these bots, underscoring that compromised user funds could result from a hacked Telegram account.

As a solution, Beosin recommended that projects open-source their code to facilitate security reviews and ensure more robust storage of user private keys.

351

News related to Crypto / Coinbase Exec: ‘There’s No Playbook’ for Public Company Launching Blockchain

« on: August 09, 2023, 06:45:06 AM »

Leading up to the launch of its innovative Base blockchain this Wednesday, Coinbase, a notable US-based cryptocurrency exchange, engaged in an insightful conversation with Jesse Pollak, the driving force behind the initiative. Here's a condensed version of the insights from the conversation:

Scheduled for release around noon ET (9 am Pacific time), Base, a new "layer 2" blockchain built on Ethereum, is set to rapidly rise in the blockchain landscape.

Before its official unveiling, the new Base network already secured an impressive $133 million in deposits across various apps and protocols, making it the fifth-largest layer-2 blockchain by "total value locked" (TVL), according to crypto analysis firm Dune.

In a recent Zoom talk with CoinDesk, Jesse Pollak, the creator of Base and Coinbase's head of protocols, shared key insights into the strategy, potential revenues, and regulatory considerations of the new blockchain.

Pollak highlighted a crucial point: Coinbase's unprecedented launch of its own blockchain, a path not previously taken by any publicly traded company.

On Coinbase's Vision:
Pollak discussed Coinbase's evolution from its 2012 beginnings as a platform solely for buying and selling Bitcoin. He emphasized Coinbase's core principle of enabling safe and seamless interactions with cryptocurrencies. Their journey through different phases of their "secret master plan," from protocol building to user-friendly interfaces, culminated in Base. This blockchain aims to shift cryptocurrencies from speculative assets to integral elements of daily life, serving as a platform for the next wave of innovation.

Revenue Generation Strategy:
Pollak delved into Coinbase's evolving monetization strategy. While historically facilitating crypto-related actions and charging fees for simplifying complex processes, Coinbase adapts its strategy as the crypto landscape expands. The growing range of crypto utilities provides more opportunities for monetization through Coinbase interfaces.

Monetization and Sequencer Fees:
Pollak stressed that sequencer fees aren't the primary focus. Instead, their goal is to enhance utility, allowing more use cases via Coinbase interfaces. Their focus is on providing trusted experiences and user convenience.

Openness and Decentralization:
Pollak acknowledged Base's open and permissionless nature, extending Ethereum's ethos. He highlighted Base's commitment to preserving decentralization despite unexpected events. Coinbase aims to act as a secure gateway, ensuring user experiences are reliable and safe while nurturing innovation in the crypto space.

Token Strategy:
Pollak clarified that there are no plans for a token on Base. Coinbase concentrates on building a user-friendly platform and an accessible blockchain, avoiding potential complexities that tokens might introduce.

Unprecedented Territory:
Pollak acknowledged the unique challenge of launching a decentralized open permissionless blockchain from a publicly centralized company. With no existing playbook, Coinbase tackled this challenge meticulously, collaborating across all departments to ensure alignment with their values and principles.

In conclusion, the conversation with Jesse Pollak illuminated Coinbase's bold venture into uncharted territory with Base's launch. Their strategy revolves around promoting utility and innovation, intending to integrate cryptocurrencies into daily life while maintaining trust, security, and accessibility.