The total crypto market cap tumbled sharply, but it stayed above the main $156.0B support.Bitcoin cash price declined sharply, but recovered above $268 and $270.EOS price tested the $4.60 support level and it recently bounced back above $4.70.Stellar (XLM) price is under a lot of pressure and it recently broke the $0.1000 support area.Tron (TRX) traded close to the $0.0225 support level and it is currently correcting higher.The crypto market cap declined heavily, with strong bearish moves in bitcoin (BTC) and altcoins. Ethereum (ETH), BCH, stellar (XLM), ADA, EOS, ripple and tron (TRX) are recovering and facing key resistances.Bitcoin Cash Price AnalysisBitcoin cash price remained under a lot of pressure after it settled below the $295 support area against the US Dollar. The BCH/USD pair broke the $270 support level recently and traded close to the $260 support level. Recently, the price recovered and settled above $270.An initial resistance on the upside is at $275, above which the bulls could make an attempt to push the price above the $282 resistance. On the downside, the main supports are $265 and $260.Stellar (XLM), EOS and Tron (TRX) Price AnalysisEOS price declined heavily after it broke the key $5.00 support level. The price even broke the $4.80 and $4.70 support levels. It traded close to the $4.60 support level and recently corrected above $4.70. On the upside, there are many resistances near $4.80 and $4.85 levels.Stellar price started a slow and steady decline below the $0.1050 support level. XLM price even broke the key $0.1020 and $0.1000 support levels. It tested the $0.0975 level and it is currently consolidating losses below $0.1000. On the downside, the main supports are $0.0975 and $0.0962.Tron price failed to recover above the $0.0250 resistance resumed its decline. TRX price broke the $0.0240 support level and traded close to the $0.0225 level. It is currently correcting higher, but it could face a strong selling interest near the $0.0242 and $0.0250 levels in the near term.Looking at the total cryptocurrency market cap hourly chart, there was a strong downward move below the $170.0B support level. The market cap declined more than $10 billion and tested the $156.0B support area. There was no downside break below $155.0B and the market cap recently recovered above $162.0B and $164.0B. However, there are many hurdles on the upside near the $167.5B and $168.0B levels. If there is a close above the $168.5B level, there could be a strong recovery in bitcoin, Ethereum, EOS, ripple, litecoin, bitcoin cash, XLM, TRX, WAN, WTC, ICX, and other altcoins in the coming sessions. If not, there could be a fresh drop to $162.0B or $160.0B.
Archives for April 25, 2019
The cryptocurrency markets endured a loss of as much as $10 billion around 21:00 UTC on Thursday, following allegations that the Bitfinex exchange covered up an $850 million shortfall using the U.S. dollar-pegged Tether (USDT) stablecoin.
The New York Attorney General’s office alleged in a statement on Thursday that Bitfinex lost $850 million and used customer and corporate funds from the affiliated stablecoin operator Tether in a coverup.
The allegations appear to have affected USDT’s peg to the U.S. dollars, and have shaken market confidence that triggered an overall sell-off with larger cryptos by market cap such as ether and XRP down 6.99 and 4.8 percent, respectively.
Based on data from CoinMarketCap, the overall crypto market’s capitalization dropped by $10 billion to as low as $167 billion around early Friday morning UTC time, and has since then climbed back above $172 billion as of press time.
Daily chart – Tether
At 21:00 UTC on Thursday, the price of USDT began to fall from the desired set price of $1.00 to as low as around $0.955, according to data from the Kraken and OKCoin U.S exchanges – the two that provide trading pair for USDT against the U.S. dollars.
The USDT price has since then climbed back and is currently changing hands around $0.97 on both Kraken and OKCoin, and may see further price uncertainty as the day continues to develop.
Interestingly, Maker (MKR), the crypto asset behind the MakerDAO stablecoin project is down 14.65 percent over a 24-hour period, having dropped $73 in value and is currently the worst performer among the top 25 crypto. All despite recent upgrades to stabilize its value through a fee increase.
Daily chart – Other markets
Meanwhile, as seen above, the reaction to the Bitfinex and tether allegations has been negative with the majority of cryptocurrencies flashing red today.
Bitcoin has since recovered slightly and is changing hands at $5,138 after dropping to a low of $4,953 on the Coinbase exchange late Thursday.
And Whale Alert, a Twitter service that monitors blockchain transactions, notified that hours after the news, 3,999 bitcoin, which was worth $20 million, got moved out from Bitfinex’s exchange wallets to unknown addresses.
Such recent moves are indicative of trader’s sentiment who are currently seeking to reduce their risk by transferring funds away from the allegedly troubled exchange.
However, others have fared better than some with the majority of stablecoins seeing upside action as investors shift their preference away from Tether to other viable options such as Circle’s USDC or Gemini’s GUSD.
Ether is today’s worst performing asset amongst the top 3 major networks, down 6.91 percent and is struggling to find a strong bid beyond $152 after falling from $165 at 21:00 UTC yesterday.
Disclosure: The author holds no cryptocurrency at the time of writing.
Ripple price declined heavily after it broke the $0.3000 support area against the US dollar.The price broke the $0.2920 and $0.2850 support levels, and traded close to $0.2800.Yesterday’s highlighted key bearish trend line is intact with resistance at $0.2980 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair could correct higher in the short term, but sellers are likely to protect $0.2980 and $0.3000.Ripple price nosedived below many important supports against the US Dollar and bitcoin. XRP tested $0.2800 and it is currently correcting higher towards the previous support levels.Ripple Price AnalysisThis week, we mostly saw bearish moves in ripple price below $0.3200 against the US Dollar. The XRP/USD pair gained bearish momentum after it broke the $0.3060 support and the 100 hourly simple moving average. Sellers got control and pushed the price below the key $0.3000 support level. Finally, there was a sharp decline below the $0.2950 and $0.2920 support levels. The price cleared a connecting bullish trend line with support at $0.3000 to enter a bearish zone.The decline was such that the price spiked towards the $0.2800 level and formed a new weekly low at $0.2798. At the moment, the price is correcting higher above $0.2850. It broke the 23.6% Fib retracement level of the recent decline from the $0.3083 high to $0.2798 low. However, there are many resistances near the $0.2950 and $0.2970 levels. The 50% Fib retracement level of the recent decline from the $0.3083 high to $0.2798 low is also near the $0.2940 level to act as a hurdle. Moreover, yesterday’s highlighted key bearish trend line is intact with resistance at $0.2980 on the hourly chart of the XRP/USD pair.Therefore, if the price corrects higher, it could face a strong resistance near the $0.2940 and $0.2970 levels. Only a successful close above the $0.3000 level is likely to open the doors for a decent rebound. If not, the price is likely to remain in a downtrend below the $0.2970 resistance. On the downside, an initial supports are near the $0.2820 and $0.2800 levels. If there are more losses, the price could test $0.2750.Looking at the chart, ripple price seems to be struggling below the $0.3000 pivot level. As long as it stays below $0.3000, sellers remain in control. An upside correction from the current levels towards $0.2970 can be seen as selling opportunity.Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently placed strongly in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently recovering from the extreme oversold levels.Major Support Levels – $0.2820, $0.2800 and $0.2750.Major Resistance Levels – $0.2950, $0.2970 and $0.3000.
ETH price failed to stay above the $158 and the $160 support levels against the US Dollar.Tether drama sparked a strong declined below the $155 and $150 support levels.Yesterday’s highlighted key bearish trend line is intact with resistance near $162 on the hourly chart of ETH/USD (data feed via Kraken).The pair is back in a downtrend and sellers are likely to remain active near $155 or $160.Ethereum price tumbled below many key supports versus the US Dollar and bitcoin. ETH price even broke the $150 support zone to move back in a downtrend.Ethereum Price AnalysisYesterday, we discussed the chances of one last dip towards $158 in Ethereum price against the US Dollar. The ETH/USD pair failed to stay above the $160 and $158 support levels. There was a strong decline below the $155 support and the price settled well below the 100 hourly simple moving average. The decline was such that the price even failed to stay above the $150 support level. It traded close to the $146 level and formed a new weekly swing low.At the moment, the price is correcting higher above the $150 level. It broke the 23.6% Fib retracement level of the recent decline from the $165 high to $146 swing low. It seems like the price is back in a downtrend and any recovery towards the $155 level may face sellers. The stated $155 level now coincides with the 50% Fib retracement level of the recent decline from the $165 high to $146 swing low. Above $155, the next major resistance is near the $160 level.Moreover, yesterday’s highlighted key bearish trend line is intact with resistance near $162 on the hourly chart of ETH/USD. Below the trend line, the 76.4% Fib retracement level of the recent decline from the $165 high to $146 swing low is near the $161 level. Therefore, any major upside correction could face a strong selling interest near the $160, $161 and $162 levels. On the downside, an initial support is near the $145 and $146 levels. Below $145, the price could test the $125 support.Looking at the chart, Ethereum price declined heavily below key supports near the $160 level. It is clearly trading in a bearish zone below the $160 pivot level. In the short term, there could be an upside correction, but sellers are likely to protect the $158 and $160 levels.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is likely to reduce its bearish slope in the short term.Hourly RSI – The RSI for ETH/USD declined heavily and it is currently in the oversold zone near 20.Major Support Level – $145Major Resistance Level – $160
By CCN: Nike is launching a blockchain product. Telegram is launching a blockchain. Samsung is reportedly planning to launch its own token platform; building with Ethereum for the S10 wasn’t enough. Facebook is getting into blockchain. Google still hasn’t done much with it, but JP Morgan now uses it. The list of major corporate names edging in on the crypto space is staggeringly long. Should we be excited or turned off?
Big Deal or Nah?
For one thing, the development of all these new tokenized platforms is a lot of money. I’m not going to make a maximalist argument about how there should be only one smart contract platform in the form of Ethereum or Tron or EOS, but I will say that these projects are preferable over projects that are controlled by a single entity, like the Telegram Open Network, or whatever the hell Facebook is building. We want more transparency and openness in the space. We want more decentralization and empowerment of individuals. Now, these big players are coming around and, instead of getting in line with the mentality and at times grandiose vision of the crypto movement, they’re bringing all their old-world detritus with them.
Regular corporations developing blockchain applications will spend billions of dollars. Why not spend it in ways that help the whole world, like developing on existing platforms, or at least making inter-operable products? With Ethereum, for example, it’s possible to launch a token platform without starting a whole new blockchain. Wouldn’t we prefer if companies like Telegram and Samsung just did that?
But back to Nike. Perhaps there could be some novel use-cases for the blockchainization of a shoe giant. For one thing, we could eliminate the shoe theft epidemic. Sarcasm, but really: non-fungible tokens could make your shoes truly yours. If someone steals them, technology could be used to track them, and the blockchain could be used to prove your ownership. I myself own a really decent pair of Air Force Ones. I’d be pretty upset if they went missing. If only this Nike product were about real-world use cases instead of what amounts to marketing-via-blockchain.
Nike’s Surprise Crypto Play Could Steal Facebook’s Thunder https://t.co/Ou5TMOzFHn
— CCN.com (@CCNMarkets) April 25, 2019
Why Not Build Something Better With All That Money?
On reading about the Nike blockchain product, I was immediately reminded of something I saw on Twitter recently: some kind of shoe trading marketing place, where you make your shoes virtual and have the ability to sell them, buy them, etc. For rare shoe collectors, this is, of course, the thing they’ve been waiting for. But it’s also the type of thing that could desperately use some blockchain in its life. I’m not sure if GOAT was the one I saw advertised, but it’s the same idea.
A whole blockchain network could be built around the same idea as GOAT, with authenticators playing a role in the network and buyers and sellers playing their obvious role. Real money could be exchanged using stablecoins. After all, a pair of Air Jordans from the 80s can go for thousands of dollars.
Blockchain buzz is beginning to pick back up. Everyone and their mother are getting into crypto. For those who’ve been here long enough, this means a slew of scams are about to happen, combined with an influx of literally hundreds of projects aimed at fixing everything, overpromises, and all the rest. According to Circle Research, security tokens will be the new buzz. The SEC has its work cut out for it, but the unregulated market will be just as large if not larger.
Let’s hope at least a few decent projects come out of the woodwork before the inevitable bust.
Disclaimer: the views expressed in this article belong solely to the author and should not be attributed to CCN.
Bitcoin bulls and bears alike are watching the recent price action like a hawk ready to strike at the first sign of opportunity. Thus far, bulls have been winning the recent battles and appear to be regaining control. However, the bear market has been a long one with many surprises, twists, and downturns.
By CCN: The office of New York Attorney General Letitia James has officially obtained a court order to request iFinex Inc, the operator of bitcoin exchange Bitfinex and Tether, to cease operations in New York.
The Attorney General’s office found that Bitfinex allegedly handed over $850 million in co-mingled client and corporate funds to Crypto Capital Corp, a company based in Panama.
Bitfinex is said to have never received the funds from the Panamanian firm, leading to the loss of more than $850 million.
The Attorney General’s office alleged Bitfinex granted itself access to Tether’s treasury and mismanaged $900 million of the stablecoin’s cash reserves to “hide” the loss of $850 million.
Attorney General James said:
“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘Tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds. New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”
How Did It Happen?
The core problem with Tether is that it does not issue public audits like strictly regulated stablecoins such as Gemini Dollar and Circle’s USDC. As a result, investors are unaware of what the potential “receivables” could be and the dealings of Tether.
A public audit would have forced Tether to disclose the alleged $900 million transactions initiated by Bitfinex had it been recorded on the financials of Tether Limited.
Stablecoin with reserve = COUNTERPARTY RISK https://t.co/5Qj2JMguT9
— Andreas M. Antonopoulos (@aantonop) April 25, 2019
However, after Bitfinex allegedly sent $850 million to Crypto Capital Corp and did not get it back, it did not disclose the loss to investors and relied on Tether, which the New York Attorney General described as a “cover-up.”
The filings explain how Bitfinex no longer has access to more than $850 million dollars of co-mingled client and corporate funds that it handed over, without any written contract or assurance, to a Panamanian entity called ‘Crypto Capital Corp.,’ a loss Bitfinex never disclosed to investors. In order to fill the gap, executives of Bitfinex and Tether engaged in a series of conflicted corporate transactions whereby Bitfinex gave itself access to up to $900 million of Tether’s cash reserves, which Tether for years repeatedly told investors fully backed the tether virtual currency ‘1-to-1,’ the document read.
Lack of Public Audits Has Always Been a Problem For Tether
Since its creation in 2014, for more than five years, Tether has been a subject to consistent criticism from both investors and experts in the cryptocurrency sector for its lack of public audits.
Last month, CCN spoke to iFinex, the company that oversees Tether, about its new Terms of Service which read that every USDT is backed by cash and other receivables, but not 100% in cash.
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”),” the altered Terms of Service read.
Kasper Rasmussen, the director of marketing at iFinex, told CCN that Tether is still 100% backed even though it may include other assets.
“Tethers remain completely stable and 100% backed, so Tether’s reserves always equal or exceed the number of issued Tethers. The only change is that the composition of the assets that provide that backing includes a combination of cash, cash equivalents, and may also include other assets or receivables from loans issued by Tether,” Rasmussen said.
How Does Affect Bitcoin?
Immediately after the release of the New York Attorney General’s report, the bitcoin price fell below $5,400, indicating a dip in the confidence of the crypto market.
Bitfinex Order by on Scribd
A document unveiled by the New York Attorney General’s (NYAG) office on Thursday has revealed that iFinex, the company behind both Tether (USDT) and Bitcoin exchange Bitfinex, is coming under legal pressure.Bitcoin Loses 2% As Tether Debacle Comes To LightIn a press release posted earlier this hour, the NYAG’s office revealed that iFinex may be violating “New York law” in relation to activities that “may have defrauded” local investors that trade cryptocurrencies. The office even wrote that it is attempting to expose “ongoing fraud” being perpetrated by Bitfinex and Tether, which are two startups that have long been under fire from cryptocurrency’s demographic of skeptics and conspiracists.The suit has also revealed that Bitfinex purportedly sent $850 million to a Panama-based company, failed to secure the funds later, and went on to raid Tether’s cash reserves to satisfy its customers later.According to the official document released by the New York AG’s office, Bitfinex sent $850 million to a company based in Panama, didn’t get it back, and granted itself access to $900 million Tether cash reserves.Official document: (https://t.co/DzQkqtHB4d) pic.twitter.com/rZQL55Cncc— Joseph Young (@iamjosephyoung) April 25, 2019It isn’t clear how this monumental legal situation is developing behind closed doors, but as analyst Moon Overlord quipped: Bitfinexed, a long-standing, extremely staunch critic of iFinex’s businesses, is likely in “complete euphoria.”Bitfinexed in complete euphoria— Moon Overlord (@MoonOverlord) April 25, 2019As a result of this news, Bitcoin has dropped by 5% in a span of under thirty minutes. BTC is currently trading at $5,150 on Coinbase, which is dramatically lower than the $5,520 seen just one hour ago. Altcoins are posting similar losses.Some analysts expect for cryptocurrencies to fall further in the coming hours, and even lower if the suit reveals damning criminal evidence about the operations of Bitfinex and Tether.Featured Image from Shutterstock
What started off as a cult-like group of supporters behind a completely nascent and unproven technology has rapidly evolved into a world-wide phenomenon that has consistently grabbed headlines in mainstream news outlets and has sparked some major controversies. The crypto industry is still quite young, but is rapidly growing and is slowly infiltrating the world of mainstream finance.More impressively, however, is how crypto is quickly finding itself in the center of a new pop culture trend that embraces the technology with major rap stars, movies, and now Nike, making strides to associate themselves with the budding technology.Cryptokicks? Crypto May Soon be Coming to Feet Near You…Although it may seem somewhat unconventional, apparel giant Nike is now foraying into the crypto markets, filing an application with the United States Patent and Trademark Office (USPTO) to trademark with phrase “Cryptokicks.”Nike’s interest in the crypto markets extends beyond simply making collectible crypto-themed clothes and shoes, as the company notes in the application that they are looking to offer “online marketplace services, namely, providing a marketplace for buyers and sellers of digital currency assets.”Although the details are sparse at the moment, Nike does note that they want to provide information relating to “crypto-collectible customization,” but it remains unclear as to whether or not this refers to crypto-themed Nike products.Furthermore, Nike also explains that they are looking to provide a website that features technology that “enables users to mine, earn, purchase, receive by any other means, store, and transfer blockchain-based tokens, coins, cryptocurrencies, and other crypto assets.”Josh Gerben, the founder of a trademark law firm, spoke about the Cryptokicks trademark application in a recent tweet, explaining in a video that it “appears to be a filing for a brand of a cryptocurrency,” referencing the part of the application where Nike says “providing a digital currency or digital token for use by members of an on-line community via a global computer network,” as proof of their intent.Nike has filed a trademark application for CRYPTOKICKS.The filing indicates that Nike is intending to launch a cryptocurrency called CRYPTOKICKS.Below is my analysis of the filing and its implications 👇#nike#cryptocurrency pic.twitter.com/82gAPlzrXy— Josh Gerben (@JoshGerben) April 24, 2019Cryptocurrency Infiltrates Modern Pop CultureRecently, crypto has increasingly found its way into modern pop culture, with recent news breaking regarding rap star Lil Pump accepting Bitcoin as a form of payment on his online store that sells his branded merchandise.⚡ New venue ⚡https://t.co/ifTSuQCDot 👕👖
Lil Pump (@lilpump) official merchandising storehttps://t.co/m9ID3qvPr0#LN #btc #lightning #bitcoin #bitcoinLNS #LightningNetwork pic.twitter.com/mIHI0fNHYE— LightningNetworkStores (@bitcoinLNS) April 24, 2019This news comes as other mainstream artists have also expressed their interest in the technology, with Eminem, Soulja Boy, and others all referencing Bitcoin in some of their top songs.Moreover, a movie aptly titled “Crypto” was recently released, starring major actors including Kurt Russell, Luke Hemsworth, and others. Although the movie was met with mixed reviews and loads of criticism, it is another demonstration of how cryptocurrencies are rapidly finding themselves at the center of a pop culture shift in favor of digital and decentralized technologies.Featured image from Shutterstock.
The New York Attorney General’s office has alleged that crypto exchange Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator Tether to secretly cover the shortfall.
According to a press release issued Thursday, NYAG Letitia James announced that she had obtained a court order against iFinex Inc., which operates both Bitfinex and Tether, ordering them to cease violating New York law and defrauding New York residents.
James said that an investigation by her department determined that iFinex “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds,” adding:
“New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”
According to the statement, Bitfinex sent $850 million of customer and corporate funds to Crypto Capital Corp., a payment processor that is said to be holding funds from other exchanges as well, such as QuadrigaCX.
Funds from Tether’s reserve were used to make up the shortfall, but neither the loss nor Tether’s fund movements were disclosed to customers.
So far, $700 million is alleged to have been transferred.
Under the court order, iFinex directors, officers, principals, agents, employees, contractors, assignees or any other affiliated individuals are to cease accessing, loaning or making any other claim to the dollar reserves held by Tether.
Similarly, iFinex-affiliated individuals are ordered to not tamper with any documentation, including records, which outline these actions.
NY Attorney General Letitia James image via Shutterstock
The full court NY AG court order can be found below: