Tangem Announces Partnership for SHIB-Themed Cold Wallets, Strengthening Shiba Inu’s Ecosystem

Tangem, a prominent player in the blockchain industry, has announced it will unleash SHIB-themed cold wallets. These innovative card-shaped vaults are set to become essential tools for safeguarding tokens within the Shiba Inu ecosystem. Pre-orders for these cold wallets will commence on May 29, igniting anticipation among SHIB enthusiasts worldwide.

The introduction of SHIB-themed cold wallets marks a significant milestone for the Shiba Inu community, aligning with their ambition to establish partnerships with influential blockchain players. 

Earlier this year, on April 26, 2023, NOWPayments, a leading payment gateway, announced its plans to integrate Shibarium, a blockchain platform developed by the Shiba Inu project. NOWPayments aims to become the first payment gateway to adopt Shibarium, demonstrating its commitment to supporting tokens and projects built on this innovative infrastructure. As a result of this integration, NOWPayments will enable businesses and individuals to accept payments using Shibarium’s Layer 2 solution, providing an extensive ecosystem of tools for all things SHIB.

Shiba Inu, a meme coin that emerged in August 2020 under the pseudonym “Ryoshi,” quickly gained traction and value within the crypto community. While its origins were initially shrouded in mystery, influential figures such as Elon Musk and Vitalik Buterin amplified its popularity through headlines and tweets. Although Vitalik Buterin was long rumored to be the creator of Shiba Inu, he denied such claims during an interview on the Lex Fridman podcast on June 5, 2021.

Shiba Inu has always been ambitious to expand its ecosystem. It has launched the Shiba Metaverse, NFTs, and decentralized exchanges. At the heart of this ecosystem is the Shiba token, which serves as the primary token within various Shiba Inu projects and applications.


Tagged : / / / /

Huobi Reveals its Holdings to be $3.5B in Hot and Cold Wallets

The tension that arose in the crypto space due to the fallout of the FTX exchange has brought about the need for crypto exchange platforms to become transparent as regards their financial position.


Huobi, a crypto exchange based in Seychelles has revealed its assets in a bid to foster transparency with its customers. The report revealed Huobi’s total assets to be estimated at $3.5 billion with Bitcoin having an estimated reserve of 37,000, Ethereum 274,000, Tether (USDT) 820,000,000, and Tron (TRX) 9.7 billion.

Huobi also made a pledge to continue the disclosure of its assets going forward. According to the platform, this will be an avenue to show its commitment to prioritizing the interest of its customers and the protection of its assets.

The report also revealed that Huobi performed an audit known as the Merkle Tree Proof of Reserves when About Capital took over as the major shareholder in October in order to satisfy due diligence procedures. Huobi added that there are already plans in place to repeat the audit process using a third party within 30 days of this writing.

Huobi Group Expands Despite Challenges in the Crypto Ecosystem

Huobi announced in October that it is ready to sell the majority of its shares to About Capital, an investment company based in Hong Kong. About Capital will not have dealings with Huobi’s business operations and management according to the announcement.

The announcement was made shortly after speculations that Huobi’s founder, Leon Li was rumored to be looking for a buyer for his almost 60% interest in Huobi and was demanding at least $1 billion at the time.

Huobi has recently announced that it would be setting up its headquarters in the Caribbean as it plans to position itself globally. 

Justin Sun who was previously rumored to have bought Huobi, but was later appointed as a special adviser on Huobi’s board stated that he had a meeting with Dominica’s prime minister Roosevelt Skerrit. He believes the Caribbean is a crypto-friendly community and Huobi will also help to develop their crypto framework.

The transparency moves are all in a bid to wade off any threat to its global growth

Image source: Shutterstock


Tagged : / / / /

3 ways traders use Bitcoin futures to generate profit

Whenever there’s data out on futures contracts liquidation, many novice investors and analysts instinctively conclude that it’s degenerate gamblers using high leverage or other risky instruments. There’s no doubt that some derivatives exchanges are known for incentivizing retail trading to use excessive leverage, but that does not account for the entire derivatives market.

Recently, concerned investors like Nithin Kamath, the founder and CEO at Zerodha, questioned how derivatives exchanges could handle extreme volatility while offering 100x leverage.

On June 16, journalist Colin Wu tweeted that Huobi had temporarily dropped the maximum trading leverage to 5x for new users. By the end of the month, the exchange had banned China-based users from trading derivatives on the platform.

After some regulatory pressure and possible complaints from the community, Binance futures limited new users’ leverage trading at 20x on July 19. A week later, FTX followed the decision citing “efforts to encourage responsible trading.”

FTX founder Sam Bankman-Fried asserted that the average open leverage position was roughly 2x, and only “a tiny fraction of activity on the platform” would be impacted. It’s unknown whether these decisions have been coordinated or even mandated by some regulator.

Cointelegraph previously showed how a cryptocurrencies’ typical 5% volatility causes 20x or higher leverage positions to be liquidated regularly. Thus, here are three strategies often used by professional traders are often more conservative and assertive.

Margin traders keep most of their coins on hard wallets

Most investors understand the benefit of maintaining the highest possible share of coins on a cold wallet because preventing internet access to tokens vastly diminishes the risk of hacks. The downside, of course, is that this position might not reach the exchange on time, especially when networks are congested.

For this reason, futures contracts are the preferred instruments traders use when they want to decrease their position during volatile markets. For example, by depositing a small margin like 5% of their holdings, an investor can leverage it by 10x and greatly reduce their net exposure.

These traders could then sell their positions on spot exchanges later after their transaction arrives and simultaneously close the short position. The opposite should be done for those looking to suddenly increase their exposure using futures contracts. The derivatives position would be closed when the money (or stablecoins) arrives at the spot exchange.

Forcing cascading liquidations

Whales know that during volatile markets, the liquidity tends to be reduced. As a result, some will intentionally open highly leveraged positions, expecting them to be forcefully terminated due to insufficient margins.

While they are ‘apparently’ losing money on the trade, they actually intended to force cascading liquidations to pressure the market in their preferred direction. Of course, a trader needs a large amount of capital and potentially multiple accounts to execute such a feat.

Leverage traders profit from the ‘funding rate’

Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Funding rates ensure that there are no exchange risk imbalances. Even though both buyers’ and sellers’ open interest is matched at all times, the actual leverage used can vary.

When buyers (longs) are the ones demanding more leverage, the funding rate goes positive. Therefore, those buyers will be the ones paying up the fees.

Market makers and arbitrage desks will constantly monitor these rates and eventually open a leverage position to collect such fees. While it sounds easy to execute, these traders will need to hedge their positions by buying (or selling) in the spot market.

Using derivatives requires knowledge, experience, and preferably a sizable war chest to withstand periods of volatility. However, as shown above, it is possible to use leverage without being a reckless trader.

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.