In recent news, a single trader has spent an enormous amount of money on gas fees to purchase a memecoin called Four (FOUR) on the Ethereum network. The trader paid $118,000 in gas fees using Ether (ETH) to buy $155,000 worth of FOUR tokens through a Uniswap trade. The trade involved swapping 84 Wrapped Ether (WETH) for 13.8 billion FOUR tokens.
The trader voluntarily increased their gas fee to speed up the transaction time and has reportedly gained 133 ETH ($245,667) in unrealized profit on their investment in the memecoin. However, this raises the question of whether the rise in gas fees is sustainable for mass adoption, as many have criticized the fees for being too high.
The Ethereum network has been facing a lot of criticism for its gas fees, which have been increasing due to the rise in activity on the network. Some prominent Ethereum advocates have praised the heightened activity for its revenue-generating effects and long-term deflationary pressure on the supply of Ether. However, others have claimed that mass adoption will never be achieved if the network remains unaffordable.
Another major reason behind the drastic uptick in gas fees is the maximal extractable value (MEV) trading bot that is front-running memecoin trades en masse. A pseudonymous attacker known only as jaredfromsubway.eth has been profiting significantly from the heightened network use. The attacker has been using a sandwich attack to manipulate the price and profit from the user.
A sandwich attack occurs when an attacker “sandwiches” a victim’s transaction between their two transactions. Jared has cleared a whopping $950,000 in profits from the sandwich attacks alone. On April 20, Jared used 7% of the total gas on the network and spent 455 ETH in transaction fees.
In conclusion, the rise in gas fees on the Ethereum network has caused debates in the crypto community over its impact on mass adoption. The attacker, jaredfromsubway.eth, has been using a sandwich attack to manipulate the price and profit from the user. While some advocate for the heightened activity, others have criticized the fees for being too high, and it remains to be seen whether the network will become more affordable for mass adoption.
Everybody loves a crypto bull market, but every green wave inevitably gives way to periods of sideways or downward movement.
Skilled traders know that these phases of the market cycle can be rife with profit opportunities, too. Anticipating not only a digital asset’s upward price movements, but downturns and corrections can be useful when deciding on when to exit a position and lock in gains, as well helping to add toprofits by shorting crypto assets whose prices decline.
In addition to a keen eye and common sense, anticipating price drops can be aided by data intelligence tools. One AI-driven indicator that can help investors see the signs of an upcoming dip early is the VORTECS™ Score, exclusively available to the members of Cointelegraph Markets Pro.
Its job is to sift through years’ worth of historical data and identify whether the combination of market and social conditions around each asset looks like those that preceded sharp upward or downward price action in the past.
At any given moment, a cryptocurrency token’s high VORTECS™ Score means that its outlook is historically bullish; but low scores below 30 indicate that in the past, the observed patterns were often followed by price drops.
Red VORTECS™ Scores are much rarer than dark-green ones. The most common scenario where such scores can be observed is when crypto assets see flash rallies, get overbought, and then see massive corrections.
Here are five conspicuous instances of red VORTECS™ Scores flashing on crypto assets before their prices tanked.
DOGE: Memecoin gets overheated
VORTECS™ Score (green/red) vs. DOGE price, Apr. 8 – 15. Source:Cointelegraph Markets Pro
Dogecoin (DOGE) presented an instance of very high and very low VORTECS™ Scores following each other closely in the week of Apr. 8.
The asset’s score went above 80 on the morning of Apr. 13, when the price curve was still flat at around $0.073 (first red circle). Apparently, the model has sensed a familiar arrangement of celebrity tweets and rising trading volume. Less than 12 hours later, the price line followed suit, pumping all the way to $0.141.
Even before the price reached its peak value, however, the algorithm signaled that historically Dogecoin’s rallies were followed by rebounds, as the VORTECS™ Score dipped into the red area below 30. A correction to $0.110 followed in several hours.
While the VORTECS™ Score is not designed to tell investors when to go long or short, it can provide a useful indication of historically bullish or bearish conditions for a particular asset — information that can be profitably incorporated into a trading strategy.
COTI: Massive spike, hard comedown
VORTECS™ Score (green/red) vs. COTI price, Aug. 21 – 27. Source:Cointelegraph Markets Pro
Following a sharp hike from $0.29 to $0.45 within an hour that occurred on Aug. 26, the price of COTI began to succumb to a correction.
It quickly dropped to $0.37 and then attempted to gain upside traction again as it rose to $0.42.
At this point, the VORTECS™ algorithm recognized similarities between the observed conditions and COTI’s past price corrections, lighting up a red score (red circle in the graph) when the price was still on its way up. The flash was well-placed, within two hours, COTI reversed its course and fell back to around $0.35.
NEAR: A dip or second leg up?
VORTECS™ Score (green/red) vs. NEAR price, Sept. 5 – 12. Source:Cointelegraph Markets Pro
Between Sept. 7 and 9, NEAR Protocol soared from $6.00 to $11.58 within three days. The question on all crypto traders’ minds was: Where will NEAR go next?
Several hours after the price peak, the token’s VORTECS™ Score dipped below 30 (red circle in the graph), informing Markets Pro subscribers that historical precedent suggested an imminent decline rather than another leg of the rally.
NEAR’s price was at around $11.00 and still going up when its score flashed red; 36 hours later, it was down to $9.00
NMR: Red Score at a price peak
VORTECS™ Score (green/red) vs. NMR price, Apr. 2 – 8. Source:Cointelegraph Markets Pro
Numeraire (NMR) was doing great on April 4 and 5, and its price was still headed toward the peak of $78.07 when its VORTECS™ Score dropped below 30 (red circle in the graph). This suggested that in the past NMR’s similar rallies were followed by the price cooling off quickly.
Sure enough, the correction kicked in in less than two hours after the lowest Score, NMR’s price sliding back to around $63.00 within the following two days.
STX: Green before price rises, red before it drops
VORTECS™ Score (green/red) vs. STX price, Oct. 7 – 14. Source:Cointelegraph Markets Pro
In the week of Oct. 8, Stacks (STX) managed to light up both an ultra-low and ultra-high VORTECS™ Scores, all within two consecutive days. On Oct. 9-11, STX had seen a strong rally from $1.44 to $2.29, after which the token’s price began to decline.
At that point, the VORTECS™ algorithm recognized a combination of factors that in the past preceded extended corrections, flashing a red score (first circle in the chart). Indeed, STX soon embarked on a downward trajectory for the following 30 hours, dipping all the way back to $1.86.
However, in the middle of the pullback, the coin’s VORTECS™ Score went up sharply, reaching a high of 88 against a still-declining price. Apparently, market and social conditions around the coin flipped bullish again as in the past similar massive corrections were followed by even greater upsides.
Sure enough, 16 hours after the peak VORTECS™ Score of the week had been registered, STX’s rally resumed toward the week’s high price at $2.39.
Cointelegraph Markets Pro’s VORTECS™ Score is available to members here.
Disclaimer. Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
Why do crypto traders “buy the rumor, sell the news”?
Simple. Because whispers of exchange listings or big-name partnerships reach very few people… while an article in Cointelegraph can reach hundreds of thousands of crypto enthusiasts in seconds. While insiders are quietly amassing tokens on rumors, the rest of us are completely ignorant of what may be coming.
But with rumors, there are no guarantees. Which can lead to disappointment and serious loss of investment for those traders who gamble that they’re true… and end up wrong.
So how can you possibly compete with thousands of other market participants when important news actually breaks? You’d have to be one of the very first to know in order to catch the price before it spikes.
Look at the examples below — the time between a closely-guarded announcement and a massive price spike of 144% can be just a few minutes!
NewsQuakes™ on the Cointelegraph Markets Pro data intelligence platform allow you to completely outsource monitoring the crypto news space to AI. The machine learning algorithm automatically combs through thousands of relevant sources and instantly alerts members via mobile notifications when potential market-moving events are detected.
NewsQuake™ announcements are snapped from primary sources such as exchange websites, Medium posts, or projects’ Twitter accounts, meaning that traders don’t have to wait for the media or their favorite influencers to turn raw information into a story.
Extensive research has identified three types of news — exchange listings, staking, and partnership announcements — that are most likely to spark strong rallies.
Here are 5 stories that alerted traders to massive profit opportunities in 2021… and a few dramatic illustrations of how NewsQuakes™ tipped off Markets Pro members.
WAX (WAXP): +144% in 2 hours
WAXP price following Cointelegraph Markets Pro NewsQuake™
Exchange listings reliably boost crypto prices, especially when it is a small or medium-cap coin being listed on a major exchange.
On Aug. 23, before the news of WAXP’s listing on Binance came in, the token was trading at 18 cents. In two hours from the announcement, WAX’s price soared to reach 44 cents. In this situation, getting the news quickly was key.
As can be seen in the chart, the NewsQuake™ alert (red circle) came in just before WAX’s price exploded.
Decentraland (MANA): 111% in 96 hours
MANA price following Cointelegraph Markets Pro NewsQuake™
It is now hard to believe that in March 2021, long before Facebook’s rebranding into Meta and the associated hype around the group of assets now widely known as metaverse tokens, MANA was trading at just $0.55.
On March 12, the announcement of OKEx enabling margin trading for the asset got crypto investors stoked, and sparked a long rally that saw MANA go from $0.55 to $1.16 over the next four days. The earlier traders were in buying the NewsQuake™, the more profit they could have secured for themselves…
Polygon (MATIC): +90% in 50 hours
MATIC price following Cointelegraph Markets Pro NewsQuake™
On Feb. 23, in the middle of a cool-off that followed the first leg of the week’s big rally, the announcement of MATIC’s debut on Binance Staking gave the asset a powerful second wind. (The red circle indicates the Markets Pro NewsQuake™.)
The resulting hike propelled the coin from $0.11 to its then-all-time high at over $0.21, an increase of 90%. Today, this can seem minor in the light of the token’s year-to-year return on investment of more than 11,000%, but on that day, traders were surely content with MATIC’s price “only” nearly doubling.
VeChain (VET): +46% in 52 hours
VET price following Cointelegraph Markets Pro NewsQuake™
A great example of impactful partnership news is VeChain’s announcement of its collaboration with the accounting firm PricewaterhouseCoopers that came up on Apr. 12.
It was not a huge surprise that the news of the enterprise-oriented blockchain project getting access to the client base of one of the Big Four firms pushed the token’s price 46% up over the fours of two days.
In this case, the NewsQuake™ from Markets Pro arrived significantly before the major rally.
Amp (AMP): +42% in one hour
AMP price following Cointelegraph Markets Pro NewsQuake™
On Nov. 23, a post on Binance’s Twitter account announced that digital collateral token AMP was slated to be listed on the exchange platform. Markets Pro users received their near-instant NewsQuake™ alerts within seconds.
It was a very clean breakout: Apparently, no-one front-ran the news, and the token’s price soared immediately following the public announcement, shooting up almost vertically from $0.050 to $0.071 in just an hour – a gain of 42%.
Timing was key here, and those Cointelegraph Markets Pro members who got the news early thanks to the NewsQuake™ alert found themselves ahead of the pack.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
If you look at crypto assets’ price movements as a series of isolated events, the picture is messy. Sure, some traders can occasionally win big off one-time events or thanks to sensing a meme-inspired trend.
In the long run, however, most of these “fortuitous” traders tend to lose.
Why? Because they have to pick big-time winners to cover all the times they miss their targets.
For every Shiba Inu, there were a thousand coins that didn’t moon.
Which is why crypto traders who employ processes rather than try to predict events are more likely to fill their bags in the long run.
They trade on probabilities rather than hoping that Token X goes parabolic next week. They win on aggregate numbers instead of sexy-looking one-offs. If you offered them average weekly returns of over 5% on trades… they’d bite your hand off.
The table below shows average returns following high VORTECS™ Scores generated by Cointelegraph Markets Pro’s historical analysis.
Good things come to those who wait
There are two unmistakable trends here. Firstly, the higher the VORTECS™ Score, the greater the average returns. In other words, the more confident the algorithm is that the historical conditions around the coin are bullish, the more likely this asset is to deliver greater gains after the high score was registered.
Secondly, time is of consequence. The algorithm has been trained on a fuzzy time frame with the emphasis on identifying favorable conditions that may materialize over several days.
The more time passes after the signs of a historically favorable outlook are recognized by the VORTECS™ algorithm, the better, on average, the asset’s price performance looks. Favorable conditions shaping up around high-scoring tokens generate the greatest price increases after 168 hours (one week) from first showing up on the algorithm’s radar.
Doing the crypto trading math
A 5 or 6% return on investment over a week may not seem a lot, in these days of bull market plenty. Don’t be fooled.
Studies show that short-term traders often lose money. One recent paper estimated that “97% of all individuals who persisted for 300 days” in the Brazilian equities futures market fell into this category. Other studies have demonstrated similar results.
So to find an algorithm that can generate consistently positive average returns over accurately measured periods of time is — well, the Holy Grail for crypto traders.
Is it infallible? Absolutely not. Again, don’t be fooled. The VORTECS™ algorithm has thrown up plenty of scores that suggested bullish conditions, and yet prices failed to rise.
What this table shows is the AVERAGE return over a specific time frame following an arbitrary score.
But what this table PROVES is that VORTECS™ does exactly what it is designed to do. It consistently identifies market conditions for specific crypto assets that have been historically bullish, and employs confidence modeling to determine a score that traders can use as part of their decision making.
VORTECS™ Score ROI methodology and background
The VORTECS™ Score is an AI-powered algorithm exclusively available to Cointelegraph Markets Pro members.
The tool is trained to search for historical patterns of price change, trading activity and social sentiment around 200-plus digital assets, ringing the alarm whenever the arrangement of these metrics starts to resemble those that, in the past, consistently showed up before price increases.
The higher the VORTECS™ Score at any given moment, the greater the model’s confidence.
The table presents average price changes across all digital assets that hit VORTECS™ Scores of 80, 85, and 90 after fixed intervals, from the moment the Score was first registered. The period of observation is the entire period of CT Markets Pro platform’s operation, from early Jan. to late Nov. 2021., or almost 11 months.
For this analysis, each asset could only yield one observation per day, i.e. if a coin went from 79 to 81, then back to 79 and then to 80 once again within a few hours, only its first entry to 80+ would count.
This way, we ensured that the analysis did not give disproportional representation to instances of more volatile VORTECS™ Scores as opposed to those times when assets went above reference thresholds and maintained high Scores for longer times.
The average price movement figures that you see in the table are aggregated from hundreds of digital assets hitting high VORTECS™ Scores over the observed period of almost 11 months.
They reflect crypto assets’ performances in bull, bear, and sideways markets, in both Bitcoin season and Altseason, and for all sorts of assets from DEX tokens to layer one platforms and privacy coins.
Start using the VORTECS™ algorithm today!
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
📈 For those expecting a #Bitcoin correction to kick off 2021, the $34,000 #AllTimeHigh achieved 10 mins ago is showing how painful it’s been being a $BTC bear the past 10 months. Avg. trader returns haven’t been this high across the board since June 2019. https://t.co/NADisu58A0 https://t.co/J9ujHfYisP
Crypto trader and influencer Lark Davis is naming five low-cap crypto assets that he says can potentially post 100x gains in the upcoming year.
At the top of Davis’ list is Injective Protocol (INJ), which he says has what it takes to be a unicorn, or an asset with a billion-dollar market cap.
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“[Injective Protocol] is a layer-two decentralized exchange this is going to be bringing in a wide range of different derivative products… Injective will also have zero gas fees on the mainnet when it goes live and it will be super high speed. That’s a big difference over most of the decentralized exchanges that people are using these days which are both slow and expensive… The INJ token is a governance token with burn functions, thus ensuring a long-term token velocity for holders.”
Number two on the list is Kylin Network. Davis describes the project as a new oracle play for the Polkadot (DOT) ecosystem.
“We all know how much hype there has been around oracles and around Polkadot over the last year. This is a crypto that’s tapping into both of those trends. It’s a Polkadot-based oracle.”
The crypto influencer highlights that Kylin Network comes with additional features such as data analytics and a data marketplace. However, Davis notes that the project’s mainnet will not launch until Q3 of 2021.
Third on the trader’s list is Terra Virtua (TVK). Davis says that those who are bullish on non-fungible tokens (NFTs) should keep a close watch on the protocol.
“Terra Virtua is a fully interactive VR (virtual reality) platform working with some truly mega brands. NFTs, as you know, are super, super hot. Unique digital collectibles are already selling for tens or even sometimes hundreds of thousands of dollars… Terra is taking NFT technology to the next level by mixing in hot brands, blockchain technology, as well as AR (augmented reality) and VR tech.”
At number four is PowerTrade (PTF). According to Davis, the small market cap coin has been flying under the radar since its token sale.
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“PowerTrade is a Bitcoin options trading platform. Their idea is to be a Robinhood-like user experience but for crypto traders, basically lowering the barriers, taking a mobile-first approach for options traders and actually, they will not just stay with Bitcoin. They’re going to be bringing a lot of other cryptos as well… This one has some seriously big backers. They got Pantera. They have the founders of CoinGecko and Synthetix. All of that gives this project a lot of weight and seriousness behind it. For such a low market cap coin, it’s really an anomaly.”
The last coin on Davis’ list is APY.Finance (APY), which bills itself as the “yield farming robo advisor.”
“[APY.Finance] is aiming to lower the barrier to entry, time commitment, and cost for DeFi (decentralized finance) users by allowing them to earn really good yields with minimum fuss. The platform handles basically the work of finding you the best yields depending on your risk tolerance levels.”
Davis says that while APY.Finance has some similarities with DeFi yield aggregator yearn.finance (YFI), he emphasizes that APY can print serious gains should it capture even a small percentage of YFI’s market share.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Popular trader and crypto analyst Luke Martin is analyzing a massive Bitcoin price prediction from a veteran Wall Street fund manager.
Scott Minerd, the global head of investment at the $270 billion asset management giant Guggenheim Investments, says BTC should be valued at $400,000.
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Minerd says his firm’s analysis is based on “scarcity and relative valuation such as things like gold as a percentage of GDP.”
In a new video, Martin points to BTC’s total supply cap of 21 million coins and governmental policy choices, which he says both lend credence to that theory.
“If you use gold’s market cap as a target and use that as a relative valuation model, if Bitcoin does eat into gold’s market cap over the next 100 years, then I actually do think the $400,000 price target that Scott Minerd gave – and I imagine a lot of other soon-to-be Bitcoiners will be giving – actually does make sense, especially when you account that store-of-value assets are much bigger than just gold.
Remember, people store value in collectibles, they store value in fine art, they store value in expensive cars. Billionaires, millionaires, they have Ferraris, they have Porsches, and sometimes they buy them to drive them around, but a lot of times they buy them as a store of value. You buy scarce items because they retain their value well in a world where we have infinite supply of fiat money. We continue printing money. Scarce assets continue to go up as the money supply goes up.”
Martin says the institutional players entering the Bitcoin space, including large firms like MicroStrategy, hedge funds and insurance companies, are not buying Bitcoin for a 5-10% trade. They’re buying because they’re betting that Bitcoin will eat into gold’s market cap.
“A really simple model of using the target market cap of gold and what the supply of Bitcoin is, dividing the market cap by the supply, gives you the $400,000 – it’s not entirely unreasonable. It might take a long time to get there, and I would even say it’s a good possibility in my lifetime. So don’t go out there and YOLO long 100x, don’t go tell your friends that Luke said it has to go to $400,000, next week or next month, remember this is a long-term thing.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
