-The CFTC fined Coinbase over activities related to its in-house trading software -The agency also alleged a former employee had engaged in wash trading related to Litecoin
The Commodity Futures Trading Commission announced on Friday that crypto giant Coinbase has agreed to pay $6.5 million in order to settle a series of allegations related to how it recorded trades on its GDAX trading platform between 2015 and 2018.
The GDAX platform, which has since been rebranded as Coinbase Pro, caters to professional traders and investors. According to the CFTC, GDAX “recklessly delivered false, misleading, or inaccurate reports concerning transactions in digital assets” such as Bitcoin.
The agency points in particular to activity related to two in-house software programs used by Coinbase known as the Hedger and Replicator. The CFTC alleges that, in some instances, those software programs effectively traded with each other, which may have served to artificially inflate prices and trading volumes on the GDAX platform.
Coinbase ceased using the Hedger software in 2018 at the insistence of then-COO Asiff Hirji, who had warned that such in-house proprietary trading platforms posed a systemic risk. Under Hirji, the company switched to a so-called agency trading model where every trade is conducted with an outside third party.
Meanwhile, the CFTC also alleged that one of Coinbase’s former employees had engaged in so-called “wash trading,” an illegal activity that involves an entity trading with itself in order to convey an artificially high degree of liquidity in a given market. The agency accused the employee of “intentionally placing buy and sell orders in the Litecoin/Bitcoin trading pair on GDAX that matched each other as wash trades.”
While the CFTC did not name the employee, the activity in question occurred in the fall of 2016, and involved Litecoin, which is most associated Charlie Lee. During the time period, Lee was an employee of Coinbase and was integral in having the company add Litecoin to its platform. Lee did not immediately respond to a request for comment about the CFTC announcement.
Under the terms of the legal settlement with the CFTC, Coinbase did not admit or deny the allegations. Meanwhile, as Coinbase disclosed in a regulatory filing related to its impending plans to go public, the company is facing other investigations from the agency related to an Ethereum flash crash and the manner in which it listed Bitcoin Cash. The CFTC’s Friday announcement did not discuss those topics, and Coinbase did not immediately reply to a request for comment about those investigations.
The CFTC’s announcement also included an unusual concurring statement by Commissioner Dawn Stump. In the separate document, Stump stated that she agreed that Coinbase’s activity amounted to illegal market manipulation, but that she believed that the agency had no jurisdiction over Coinbase.
“The CFTC cannot be a full-time “Cop on the Beat” for Cash Digital Asset Exchanges,” wrote Stump, adding that actions like the Coinbase settlement is “likely to create unrealistic public expectations for an agency primarily tasked with regulating derivatives markets, not cash markets.”
Stump’s comments point to an ongoing debate over which federal agency is best poised to regulate the fast-growing crypto economy.
A report by Deutsche Bank Research said that Bitcoin (BTC) has become “too important to ignore” and may attract regulation by the end of 2021. Deutsche Bank analysts expect Bitcoin to reach a turning point in about “two or three years” when it will be clear whether Bitcoin will evolve into an asset class or not. In the short term, the report forecast Bitcoin to “remain ultra volatile.”
A different report by Bank of America provided some insight into the possible reasons for Bitcoin’s volatility. Bank of America analysts estimated that Bitcoin price may rise by one percent when there is a $93 million inflow. Compared to that, gold needs about $2 billion worth of funds to move it by a single percentage point.
This large disparity in the price reaction to the inflow of funds is attributed to Bitcoin holders who have not parted with their coins during the current bull run.
While it is difficult to predict at what price the Bitcoin whales will book profits on their holdings, Kraken growth lead Dan Held said in a recent interview with Cointelegraph that Bitcoin could reach $1 million during the current supercycle.
Held believes that the confluence of events such as the coronavirus crisis, money printing by central banks and the rising lack of trust in legacy financial firms are the triggers supporting the crypto bull run.
Let’s study the charts of the top-10 cryptocurrencies to determine whether the uptrend will resume or is the bull run showing signs of exhaustion?
BTC/USD
Bitcoin rebounded off the 20-day exponential moving average ($54,844) on March 17 and rose above the $58,341.03 overhead resistance. But the advance to $60,102.15 witnessed profit-booking on March 18.
BTC/USDT daily chart. Source:TradingView
However, the positive sign is that the bulls purchased the dip and have again pushed the price above $58,341.03. A rise above $60,102.15 could retest the all-time high at $61,825.84.
The upsloping moving averages and the relative strength index (RSI) in the positive zone suggest the path of least resistance is to the upside. A break above $61,825.84 could start the next leg of the uptrend to $72,112.
Although the RSI is showing negative divergence, traders should follow the price action closely because a sharp rally from the current levels may invalidate this bearish development.
If the price turns down and breaks below the 20-day EMA, it will be the first sign of weakness. A deeper correction could be signaled if the bears sink and sustain the BTC/USD pair below the 50-day simple moving average ($48,578).
ETH/USD
Ether (ETH) has been trading just above the 20-day EMA ($1,756) for the past three days. This is a positive sign as it shows that the bulls are accumulating on dips to the 20-day EMA.
ETH/USDT daily chart. Source:TradingView
If the bulls can propel the price above $1,850, the ETH/USD pair could rise to $1,942.92 and then challenge the all-time high at $2,040.77. A breakout and close above this resistance could start the journey to $2,614.
The moving averages are sloping up and the RSI is in the positive territory, suggesting the bulls have a slight edge.
However, this positive assumption will be negated if the price turns down and breaks below the moving averages. Such a move could pull the price down to $1,289 and keep the pair range-bound for a few more days.
BNB/USD
Binance Coin (BNB) has successfully held the 20-day EMA ($251) for the past four days but the bulls are struggling to push the price above $280 and challenge the overhead resistance at $309.50.
BNB/USDT daily chart. Source:TradingView
However, the 20-day EMA is sloping up gradually and the RSI is in the positive zone, which shows a minor advantage to the bulls. A breakout and close above $309.50 will complete a bullish ascending triangle pattern. This setup has a target objective at $429.
On the contrary, if the price turns down from the current level and breaks below the trendline of the triangle, it will suggest the bears have overpowered the bulls. That could result in a drop to $189.
ADA/USD
Cardano (ADA) turned down from the all-time high at $1.48 on March 18 as traders booked profits. However, the positive sign is that the bulls are attempting to defend the breakout level at $1.23.
ADA/USDT daily chart. Source:TradingView
A strong bounce off the current level could increase the possibility of a break above the all-time high. The next target objective on the upside is $2.
The rising moving averages suggest the bulls are in command, but the negative divergence on the RSI shows the momentum is weakening.
If the bears can pull the price below the 20-day EMA ($1.14), it will indicate that supply exceeds demand. The trend may turn in favor of the bears if the ADA/USD pair plummets below the 50-day SMA ($0.94).
DOT/USD
Polkadot (DOT) has been sustaining above the 20-day EMA ($35) for the past two days, which is a positive sign. The bulls are currently trying to push the price above the resistance line of the symmetrical triangle.
DOT/USDT daily chart. Source:TradingView
If they succeed, it could resume the uptrend. The bulls may face stiff resistance at the all-time high at $42.28 but if they can thrust the price above it, the DOT/USD pair could rise to the pattern target at $55.
The 20-day EMA is moving up gradually and the RSI has risen above the downtrend line, which shows the bulls are attempting to gain the upper hand. This view will invalidate if the pair turns down and breaks below the support line of the triangle.
XRP/USD
XRP has been trading in a tight range for the past few days as the bears are defending the overhead resistance at $0.50 and the bulls are buying on dips to $0.42. The flat moving averages and the RSI just above 52 suggest a balance between supply and demand.
XRP/USDT daily chart. Source:TradingView
Usually, a tight range trading is followed by a trending move. In this case, if the bulls can propel the price above $0.50, the XRP/USD pair could rally to $0.65 where it is again likely to counter stiff resistance from the bears.
Alternatively, if the bears sink the price below $0.42, the pair could drop to $0.36. This is a critical support to watch out for because a break below it could intensify selling and clear the path for a slide to $0.25.
UNI/USD
Uniswap (UNI) is in an uptrend and it has been holding above the 20-day EMA ($29.41) for the past few days, which shows the bulls are buying the dips to this support. If the bulls can push the price above $32, a retest of the all-time high at $34.92 is possible.
UNI/USDT daily chart. Source:TradingView
A breakout and close above the all-time high could start the next leg of the uptrend that may reach $46. The upsloping moving averages suggest that bulls are in control but the negative divergence on the RSI warrants caution.
If the bears sink and sustain the price below the 20-day EMA, it could signal the start of a deeper correction. The first stop could be the 50-day SMA ($24.78) and if this support also cracks, the decline may extend to $22.
LTC/USD
The bulls are attempting to keep Litecoin (LTC) above the 20-day EMA ($199.41). If they succeed, the altcoin could move up to the resistance line of the symmetrical triangle where the bears are likely to mount a stiff resistance.
LTC/USDT daily chart. Source:TradingView
However, if the bulls manage to propel the price above the triangle, it will suggest a resumption of the next leg of the uptrend. The first stop could be $246.96 and if this level is crossed, the LTC/USD pair could rally to $300.
The gradually upsloping moving averages and the RSI in the positive zone indicate a minor advantage to the bulls. This positive view will invalidate if the price turns down and breaks below the triangle.
LINK/USD
Chainlink (LINK) once again turned down from the overhead resistance on March 18, which shows the bears are defending this level. However, the positive sign is that the bulls did not allow the price to dip below the 50-day SMA ($28.38), indicating buying at lower levels.
LINK/USDT daily chart. Source:TradingView
The LINK/USD pair has formed an ascending triangle pattern that will complete on a breakout and close above $32. This setup has a target objective at $43.20.
Contrary to this assumption, if the price turns down from the current level or the overhead resistance and breaks below the trendline of the triangle, it will invalidate the bullish setup. That could result in a drop to $24 and then to $20.11.
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The bulls and the bears are battling it out to gain the upper hand in Bitcoin Cash (BCH). Although the price had dipped below the moving averages for the past four days, the bears could not capitalize on the situation. This suggests selling dries up at lower levels.
BCH/USD daily chart. Source:TradingView
The flat moving averages and the RSI just above the midpoint suggest the BCH/USD pair could remain range-bound for a few more days.
If the consolidation resolves to the downside and the price closes below $500, the pair could start a deeper correction to $440 and then to $320.
Conversely, if the bulls push and sustain the price above $560, the pair may again try to rally to $631.71 and then $745.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Users discovered a Filecoin exploit that allowed funds to be deposited more than once on Binance.
It’s not technically a “double spend,” since the transaction only happened once on the Filecoin blockchain.
Filecoin and Binance are saying it’s not a bug—just an “incorrect use” of APIs.
On Thursday,Coindeskreportedon an exploit that allowed $4.6 million in Filecoin tokens to be deposited more than once on Binance. In emails toDecrypt, Filecoin and Binance are chalking it up to an “incorrect use” of APIs, as opposed to a bug.
The issue resembled a “double spend”—a system-breaking defect, usually brought on by an attack on a blockchain, that allows the same cryptocurrency to be spent twice. Filecoin is a token that helps enable a decentralized storage network.
The proof-of-work consensus mechanism that backs Bitcoin and other cryptocurrencies is meant to prevent double spends. But the transaction in question only happened once on the Filecoin blockchain, even though the exchange mistakenly accepted the transaction twice; the result was more like a “double deposit” than a double spend.
Ablog postfrom Protocol Labs, the team behind Filecoin, says that an investigation “found no issues with the Filecoin network or the RPC [remote procedure call] API code.” And in a statement toDecrypt, a spokesperson for Protocol Labs said: “We are confident that there is no double-spend on the blockchain itself.”
The Lotus team received a report from an exchange re the incorrect use of a Lotus API for evaluating transfers/deposits in the Filecoin Network.
The team investigated & found *no network issue or API bug*. They’re working w/ all exchanges to ensure these APIs are correctly used.
— Filecoin (@Filecoin) March 18, 2021
Binance toldDecryptthat deposits of FIL, Filecoin’s token, were halted yesterday in the wake of the double deposit. “The issue was caused by the incorrect use of the Lotus [Filecoin’s software suite] API logic and its integration in transferring and depositing into the Filecoin Network,” said a spokesperson. An API, short for application programming interface, is a way for software to talk to other software.
According to the Binance spokesperson, there was no loss of funds. They referredDecryptto Filecoin’s incident report.
Bitcoin (BTC) continued to face strong resistance at the $60,000 level on March 19 as bulls spent the day climbing back from an early morning drop which briefly pushed BTC into the sub-$56,500 range.
Data from Cointelegraph Markets and TradingView shows that after being rejected at the $60,000 level on March 18, the price of Bitcoin hit a low of $56,268 in the early hours on Friday before dip buyers returned to help lift the price back above $58,500.
BTC/USDT 4-hour chart. Source:TradingView
Key Bitcoin price metrics show that despite the struggles faced in order to breakout past $60,000, top-traders are growing increasingly bullish as evidenced by an uptick in leveraged long positions over the past week as the BTC trading range grew tighter.
Global signs of adoption continue to emerge as the first Bitcoin ETF in Latin America was approved in Brazil, making it the fourth ETF to be approved in the western hemisphere following three recently launched ETFs in Canada.
Bulls look to flip $60,000 from resistance to support
Chad Steinglass, head of trading at crypto capital markets firm CrossTower recently discussed the pressures Bitcoin faced at the $60,000 level and pointed out that the top cryptocurrency has faced “at least some resistance at every round number on the way up,” and that once a resistance level is surpassed, it then becomes support.
According to Steinglass, “it will take a bit of chipping away to break through $60,000 with any kind of authority,” but the recent strength displayed by Bitcoin “in the face of stiff macro headwinds” indicates no reason for the bullish momentum to stop.
Steinglass identified the $57,000 to $58,000 range as the new support level which should hold “as long as some unexpected event doesn’t derail it,” such as new lockdown measures or a significant move in US Treasuries.
Steinglass said:
“The relationship between the dollar and treasuries has flipped 180 degrees as the story has quickly become risk-off and flight to quality instead of growth and inflation, so treasuries and dollar are both ticking higher as all risk assets are selling off.”
Traditional markets ends the week mixed
Rising interest rates for U.S. Treasuries continue to put pressure on the global financial markets which ended Friday’s trading session mixed as traders begin to worry about the possibility of a rapid rise in inflation hindering the economic recovery and causing a “near-term shift in the Federal Reserve’s ultra-accommodative monetary policy.”
The S&P 500 and Dow were unable to overcome early pressures in the market and closed the day down 0.06% and 0.71% respectively while the NASDAQ displayed early strength against the downturn and managed to close the day up 0.76%.
Multiple altcoins experienced double-digit gains on Friday showing that the overall uptrend for the cryptocurrency market remains intact.
Uniswap (UNI) has been the best performing top-10 coin, increasing 11.5% to a price of $33.50 while Pundi X (NPXS) saw its price explode 50% higher to an intraday high of $0.0055.
The top altcoin Ether (ETH) continues to face resistance above $1,800 with data indicating that bulls may wait until the $1.15 billion worth of ETH options expire on March 26 for them to put on a new show of force.
BTC/USD daily chart. Source:Coin360
The overall cryptocurrency market cap now stands at $1.803 trillion and Bitcoin’s dominance rate is 60.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Curio’s new NFT exchange allows fans to easily buy and sell digital collectibles.
Curio, the premiere NFT platform for entertainment brands and musical artists, announced the launch of their peer-to-peer exchange today. The launch follows an oversubscribed seed funding round of $1.2 million and several successful digital collectible releases for the hit show American Gods, all of which sold out shortly after dropping.
Curio’s NFT exchange is designed to make peer-to-peer trading of NFTs totally accessible for the non-crypto-savvy everyday fan. Fans who purchased, for example, the American Gods NFTs during the drops can now resell them without taking them off the Curio platform. Other fans who missed the drops can now add these NFTs to their collection. And the brand and creatives earn a royalty on every transaction in perpetuity.
Juan Hernandez, CEO of Curio, said,
“NFTs are exploding in popularity, yet the space has struggled to provide an accessible user interface that enables everyone to engage in a more meaningful and modern way with the brands and content they love. This new exchange is the most inclusive and accessible avenue for musical artists, brands and fans to enter the NFT space.”
The Curio exchange is built with a user-friendly interface that provides accessibility for both experts and newcomers. No prior knowledge of cryptocurrency, crypto wallets or Ethereum gas prices is necessary for fans to buy and sell NFTs on Curio. With the use of a credit card and a smooth transaction experience, the everyday fan can now be a collector of NFTs.
With the exchange launch, brands can now utilize a 1:1 marketing channel with fans who might have missed drops and would like to own specific NFTs. This is especially valuable for fans who want to complete challenges that can earn them rewards, such as collecting the entire set of characters from the American Gods: Lakeside Collection by the series finale to receive a mystery bonus NFT.
Juan Hernandez explains,
“The ease of use and overall functionality of the Curio NFT exchange is unlike any other in the space right now. Transactions are simplified with the use of credit cards, and it drives content in a new, fun, interactive way and creates a community where NFT first-timers can easily familiarize themselves with this fast-growing space.”
About Curio
Curio delivers a new universe to serve fans through digital collectibles, driven by state-of-the-art non-fungible token (NFT) technology. Working with the biggest names in the entertainment industry, Curio brings innovative, cutting-edge engagement opportunities to delight fans and provide new ways to enhance their relationship with brands. To learn more, please visit here.
Contacts
Ben Parnes and Zack Zimmerman
This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.
Skybridge Capital, the firm run by former White House communications director Anthony Scaramucci, has filed for a Bitcoin ETF with the Securities and Exchange Commission (SEC).
ETFs, or exchange-traded funds, are investment vehicles that can be traded like stocks. They track the price of an underlying asset or group of assets. A Bitcoin ETF would, therefore, track the price of Bitcoin. In exchange for a fee, investors would get exposure to Bitcoin prices without exposure to the risks of holding and storing Bitcoin and private keys themselves.
The SEC has never approved an ETF.
This story is being developing and will be updated.
The Brazilian Securities and Exchange Commission, or CVM, approved two cryptocurrency ETFs this week — one 100% Bitcoin and the other composed of five cryptocurrencies, in addition to Bitcoin (BTC).
For QR Asset Management, manager of the Bitcoin-only ETF, the product could accelerate the launch of a similar product in the United States, since the CVM, as well as the Securities and Exchange Commission, or SEC, are part of the International Organization of Securities Commissions, or IOSCO.
Both ETFs will be traded on the Brazil’s Stock Exchange, or B3. According to Brazil Journal, two of the country’s main banks, Itaú and BTG Pactual, have already stated to offer Hashdex’s ETF to their customers.
The QR ETF will trade on the B3 with the ticker QBTC11, while the one from Hashdex will have HASH11 as its ticker. ETF HASH11 trading is expected to start this month, while QBTC11 ETF is expected to begin in Q2 2021.
In the case of QR ETF, the index used to calculate the price of Bitcoin will be the Chicago Commodities Exchange.
Fernando Carvalho, CEO of QR Capital, holding company of QR Asset, sees this movement as an important milestone for innovation in the Brazilian capital market. In internal communication with Cointelegraph, he said:
“Our ETF, to be traded with the QBTC11 ticker, is a milestone in the Brazilian market. The asset ends up acting as a double hedge, as it is a digital commodity and at the same time, it is traded in dollars on the world market. Its price is unrelated with other asset classes, which means that it is increasingly being adopted by large managers and investors within diversified portfolios.”
Hashdex’s ETF will replicate the Nasdaq Crypto Index (NCI), an index developed by Nasdaq and Hashdex. In September 2020, the Brazilian Hashdex got approval from the Bermuda regulator and together with Nasdaq, approved the world’s first Bitcoin ETF — the Hashdex Nasdaq Crypto Index ETF.
Beyond Brazil, the only other country to approve its own Bitcoin ETFs is Canada.
NCI consists of six cryptocurrencies: Bitcoin, Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH) and Chainlink (LINK), and is rebalanced quarterly.
Custody of Hashdex’s assets is made by companies such as BitGo, Coinbase, Fidelity and Gemini, which are all mediated and regulated in the USA.
If you’ve been following potential bitcoin price targets, you know that many analysts expect bitcoin to completely consume or eat into portions of gold, money supply (M2), global fiat-denominated debt, stocks (equities) and real estate.
Once you’ve grasped the implications of bitcoin having no counterparty risk and no dilution risk, you should recognize that bitcoin will fully inhale all wealth stored in gold, M2 and global debt, but what portion of the wealth stored in equities (stocks) will be reallocated into bitcoin?
It’s a very complicated idea to ponder.
Two weeks ago, we published our thoughts on how the valuation of a fictional company, Wyoming Red Ribeyes, would change post-hyperbitcoinization. Now, we’re going to dive in a bit further and run a scenario analysis that shows how much the valuation of a typical S&P 500 company would change based on two relatively unknown predictor variables:
The BTC inflation rate: How do we expect a relative CPI index (price of goods) to trend over time?
The BTC equity risk premium: What expected percentage return (BTC denominated) will motivate investors to invest their BTC into publicly-traded equities?
BTC Inflation Rate
It is realistic to expect the average BTC consumer price index (CPI) inflation to fall somewhere between 0 percent and negative 10 percent. The current system attempts to produce roughly 2 percent CPI inflation annually. Since the Bitcoin monetary standard operates under a fixed supply, bitcoin savers will be rewarded with all future productivity enhancements through lower and lower prices.
Generally, it is reasonable to expect a CPI of roughly negative 5 percent, which indicates that economic growth under a Bitcoin standard will be faster and more sustainable.
BTC Equity Risk Premium
An equity risk premium is the excess return that investing in stocks is expected to provide over a risk-free real return of simply HODLing bitcoin (or potentially earning yield on Lightning Network lease channels).
This is difficult to predict as it will ultimately come down to the bitcoin HODLers. They will be the ones to determine the equity risk premiums they are willing to accept for their bitcoin.
Based on current bitcoin-denominated lending rates (6 percent at BlockFi), we would likely expect the equity risk premium to be above this, since this is the rate for fairly safe debt, hence “equity risk premium.” It may be realistic for an S&P 500 company to have an equity risk premium between 0 percent and 30 percent.
While this depends on how the market weighs specific business risks, generally it is reasonable to expect around 10 percent, which indicates that investors won’t be willing to part ways with HODLed BTC unless they expect a 10 percent return to accompany the risk of investing in a publicly-traded equity.
What Store Of Value (SoV) Percentage Is In Equities?
Below is a data table that displays what percentage of wealth stored in publicly-traded equity valuations is simply looking for a generic SoV (i.e., bitcoin). Note that this data table is using the discounted cash flow (DCF) models of Wyoming Red Ribeyes as a typical fictional S&P 500 company.
The two predictor variables, BTC inflation and BTC equity risk premium, are the only two variables changing in the DCF models.
Looking at our estimations of negative 5 percent BTC CPI inflation and 10 percent BTC equity risk premium, the estimated SoV percentage currently stored in public S&P 500 equities is 77 percent. This indicates that 77 percent of the real wealth stored in the S&P 500 could re-allocate to bitcoin.
This estimation varies depending on the two predictor variables. For example, on the low end (0 percent equity risk premium and 0 percent inflation), bitcoin will only capture 46 percent of the wealth stored in publicly-traded equities. However, on the high end (30 percent equity risk premium and negative 10 percent inflation), bitcoin will capture 90 percent of the real wealth stored in the S&P 500.
Updated Price Targets
Starting with the baseline assumption that Bitcoin eats the wealth stored in gold, M2 and global debt, we begin at $17.1 million per BTC.
If we use our analysis to determine that bitcoin will intake 77 percent of global equities, that pushes the total BTC market cap to $427.9 trillion, indicating a price of $20.4 million per BTC. From there, we can conservatively add in that bitcoin will take the SoV out of real estate (50 percent of total real estate), which pushes us to a total BTC market cap of $568.4 trillion, indicating a price of $27 million per BTC.
Compared to our previous price target incorporating both stocks (50 percent) and real estate (50 percent), it only increased by $1 million (from $26 million to $27 million). However, $1 million BTC sounds pretty great right now.
Future Research
We want to also dive into real estate valuations, since we simply used a baseline of 50 percent to determine the wealth stored in real estate that will be absorbed by bitcoin. This could be higher or lower. In addition, we could further attempt to price in the future the productivity gains that bitcoin will bring, as well as the high propensity to hold a counterparty-risk-free and dilution-risk-free asset.
The global wealth numbers originated fromVisual Capitalistand the”Mimesis Bitcoin Investment Research Report.”
This is a guest post by Mimesis Capital. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Crypto analyst and trader Lark Davis says he expects Ethereum to appreciate by at least 400%.
In a new video, the crypto influencer outlines some of the bullish catalysts that could catapult Ethereum to higher highs.
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Davis first notes that the number of long-term Ethereum holders is rising as whales appear to eat up Ethereum supplies.
“This week we had the second-biggest Ethereum outflow from centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price went down, buyers stepped up big time…
On-exchange balances for Ethereum just reached a new low. Ethereum is in accumulation mode – whales are still buying heavily.
Ethereum is going to be a five-digit asset not just like $10,001, likely much higher than that.”
Davis says another catalyst that will likely send Ethereum’s market cap higher is the surging interest in non-fungible tokens (NFTs).
“The undisputed home of NFTs is Ethereum. Every major NFT market is an Ethereum market. Sure, other chains are going to do NFTs, I welcome that, I’m excited about that as well. But as so often happens, all the liquidity and all the most valuable stuff, it’s on Ethereum.”
Davis adds that Ethereum will also benefit from the growing adoption of decentralized finance (DeFi) which is the ‘biggest thing happening in cryptocurrencies.’
“The biggest and the best protocols with the deepest liquidity are building on Ethereum, they live on Ethereum. The potential addressable market for decentralized lending and borrowing and exchanging and other more exotic financial services…massive…absolutely massive. We are literally talking about the future of finance here. How big do you think the market cap of Ethereum will be when we finally hit one billion users later this decade?”
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Brave’s BAT token, native to Ethereum, is now available on Binance Smart Chain as a wrapped token.
This will allow users to spend the BAT token in Binance Smart Chain’s DeFi apps such as Pancake Swap.
Though Brave’s wallet already supports both ETH and BSC, more thorough support will arrive later this year.
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Brave’s Basic Attention Token (BAT) is now part of the Binance Smart Chain (BSC) ecosystem, according to a blog post from Brave.
BAT on Binance Smart Chain
According to Brave, BAT is now available as a wrapped token on BSC. BAT is natively built on the Ethereum blockchain and continues to circulate on that chain. This news simply means that the original token can be exchanged for a BSC-based BAT token of equal value.
The decision allows BAT holders to use the token with various BSC-based DeFi apps such as Pancake Swap and Beefy Finance. Xiaoguang Zhang, Binance Smart Chain Ecosystem Coordinator, added that the feature will “introduce seamless UX together for crypto users to access DeFi and Dapps in BSC and other blockchains.”
The decision appears to be partially motivated by the need to escape Ethereum’s high transaction fees. Brave CEO Brendan Eich says that the firm is enthusiastic about Binance Chain’s “low transaction fees and scalability.” The announcement also suggests that Brave is exploring BSC as means of managing peer tipping.
It is not clear when the feature will go live. Although the Brave browser’s built-in wallet already supports both Ethereum and BSC, more thorough support will be available later this year.
Brave and Binance
With a market cap of $1.7 billion, BAT is the 57th largest crypto token, making it one of the more significant projects that Binance Smart Chain has attracted to its ecosystem.
Brave previously partnered with Binance to provide a home page trading widget in March 2020. That news suggested a “long-term partnership,” implying that more joint efforts may be on the way.
The BAT token is also listed on Binance and Binance.US.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins including BAT.
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