The total crypto market cap surged higher and broke the $215.0B and $220.0B resistances.Bitcoin price rallied more than 12% and it recently broke the $8,000 resistance.Litecoin (LTC) price is trading nicely above $90.00 and it could test $95.00 or even $100.00.Bitcoin cash price is likely to break the main $400 resistance level in the near term.EOS price broke the $5.60 and $5.70 resistance levels, and tested $5.95.Cardano (ADA) price is gaining momentum and it could soon break the $0.0800 resistanceThe crypto market cap surged above $225.0B, bitcoin (BTC) broke $8,000, and ripple climbed 15%. Ethereum (ETH), litecoin (LTC), BCH, EOS, tron (TRX), and ADA are also accelerating gains.Bitcoin Cash Price AnalysisThere were sharp gains in bitcoin cash price above the $360 resistance level against the US Dollar. The BCH/USD pair climbed more than 12% and broke the $370, $375 and $385 resistance levels. The price even climbed towards the $400 resistance level and it is currently consolidating gains.In the short term, there could be a few range moves, but the price is likely to break the $400 level. The next key resistance is near the $420 level, where sellers may emerge. On the downside, the main supports are $385 and $375.Litecoin (LTC), EOS and Stellar (XLM) Price AnalysisLitecoin price climbed higher recently and broke the $82.00 and $86.00 resistance levels. LTC price even broke the $90.00 barrier and it is currently trading near the $92.00 level. On the upside, the next key resistances are near the $95.00 and $100.00 levels.EOS price is up more than 8% and it recently broke the $5.60 and $5.70 resistance levels. The price is now trading above the $5.85 level and it could soon test the $5.95 and $6.00 barriers.Cardano price started a strong upward move after it broke the key $0.0700 resistance level. ADA price is up more than 10% and it recently broke the $0.0750 and $0.0760 resistance levels. It seems like the next stop for the bulls is $0.0800, with supports near $0.0760 and $0.0750.Looking at the total cryptocurrency market cap hourly chart, there was a sharp rise above the $205.0B resistance level. The market cap gained more than $20 billion and broke the $220.0B resistance. It tested the $226.1B level and it could continue to rise in the near term. An immediate resistance is at $228.0B, above which the next stop could be $230.B. On the downside, there are many supports near the $222.0B, $220.0B and $215.0B levels. Overall, there are chances of more upsides in bitcoin, Ethereum, EOS, litecoin, ripple, ADA, BCH, XLM, BNB, TRX, XMR, and other altcoins.
Archives for May 13, 2019
Balaji S. Srinivasan is the former CTO of Coinbase, a Board Partner at Andreessen Horowitz and a member of CoinDesk’s advisory board.
The following article originally appeared in Consensus Magazine, distributed exclusively to attendees of CoinDesk’s Consensus 2019 event.
There’s a certain kind of developer who states that blockchains are just terrible databases. As the narrative goes, why not just use PostgreSQL for your application? It’s mature, robust, and high performance. Compared to relational databases, the skeptic claims that blockchains are just slow, clunky and expensive databases that don’t scale.
While some critiques of this critique are already out there (1, 2), I’d propose a simple one sentence rebuttal: public blockchains are useful for storing shared state, particularly when that shared state represents valuable data that users want to export/import without error — like their money.
The data export/import problem
There are icons for VPCs and every type of database under the sun, including the new-ish managed blockchain services (which are distinct from public blockchains, though potentially useful in some circumstances).
What there isn’t an icon for is shared state between accounts. That is, these cloud diagrams all implicitly assume that a single entity and its employees (namely, the entity with access to the cloud root account) is the only one laying out the architecture diagram and reading from or writing to the application it underpins. More precisely, these diagrams typically assume the presence of a single economic actor, namely the entity paying the cloud bills.*
But if we visualize the cloud diagrams for not just one but one hundred corporate economic actors at a time, some immediate questions arise. Can these actors interoperate? Can their users pull their data out and bring it into other applications? And given that the users are themselves economic actors, if this data represents something of monetary value, can the users be confident that their data wasn’t modified during all this exporting and importing?
These are the types of questions that arise when we think about the data export and import from each entity’s application as a first-class requirement. And (with exceptions that we’ll get into), in general, the answer to these questions today is typically no.
No — different applications typically don’t have interoperable software, or allow their users to easily export/import their data in a standard form, or give users certainty that their data wasn’t intentionally tampered with or inadvertently corrupted during all the exporting and importing.
The reason why boils down to incentives. For most major internet services, there is simply no financial incentive to enable users to export their data, let alone to enable competitors to quickly import said data. While some call this the data portability problem, let’s call it the data export/import problem to focus attention on the specific mechanisms for export and import.
Current approaches to the data export/import problem
Even though the financial incentives aren’t yet present for a general solution to the data export/import problem, mechanisms have been created for many important special cases. These mechanisms include APIs, JSON/PDF/CSV exports, MBOX files, and (in a banking context) SFTP.
Let’s go through these in turn to understand the current state of affairs.
- APIs. One of the most popular ways to export/import data is via Application Programming Interfaces, better known as APIs. Some businesses do let you get some of your data out, or give you the ability to write data to your account. But there’s a cost. First, their internal data format is typically proprietary and not an industry standard. Second, sometimes the APIs are not central to their core business and can be turned off. Third, sometimes the APIs are central to their core business and the price can be dramatically raised. In general, if you’re reading or writing to a hosted API, you’re at the mercy of the API provider. We call this platform risk, and being unceremoniously de-platformed has harmed many a startup.
- JSON. Another related solution is to allow users or scripts to download JSON files, or read/write them to the aforementioned APIs. This is fine as far as it goes, but JSON is very free form and can describe virtually anything. For example, Facebook’s Graph API and LinkedIn’s REST API deal with similar things but return very different JSON results.
- PDF. Another very partial solution is to allow users to export a PDF. This works for documents, as PDF is an open standard that can be read by other applications like Preview, Adobe Acrobat, Google Drive, Dropbox, and so on. But a PDF is meant to be an end product, to be read by a human. It’s not meant to be an input to any application besides a PDF viewer.
- CSV. The humble comma separated value file gets closer to what we want for a general solution to the data import/export problem. Unlike the backend of a proprietary API, CSV is a standard format described by RFC 4180. Unlike JSON, which can represent almost anything, a CSV typically represents just a table. And unlike a PDF, a CSV can typically be edited locally by a user via a spreadsheet or used as machine-readable input to a local or cloud application. Because most kinds of data can be represented in a relational database, and because relational databases can usually be exported as a set of possibly gigantic CSVs, it’s also pretty general. However, CSVs are disadvantaged in a few ways. First, unlike a proprietary API, they aren’t hosted. That is, there’s no single canonical place to read or write a CSV representing (say) a record of transactions or a table of map metadata. Second, CSVs aren’t tamper resistant. If a user exports a record of transactions from service A, modifies it, and reuploads it to service B, the second service would be none the wiser. Third, CSVs don’t have built-in integrity checks to protect against inadvertent error. For example, the columns of a CSV don’t have explicit type information, which means that a column containing the months of the year from 1-12 could have its type auto-converted upon import into a simple integer, causing confusion.
- MBOX. While less well known than CSV, the MBOX format for representing collections of email messages is the closest thing out there to a standardized data structure built for import and export between major platforms and independent applications alike. Indeed, there have been papers proposing the use of MBOX in contexts outside of email. While CSV represents tabular data, MBOX represents a type of log-structured data. It’s essentially a single huge plain text file of email messages in chronological order, but can also represent images/file attachments via MIME. Like CSV, MBOX files are an open standard and can be exported, edited locally, and reimported. And like CSV, MBOX has the disadvantages of no canonical host or intrinsic data integrity check.
- SFTP. Before we move on, there’s one more data export/import mechanism that deserves mention: the secure file transfer protocol, or SFTP. While venerable, this is actually the way that individuals send ACH payments back and forth to each other. Essentially, financial institutions use SFTP servers to take in electronic transaction data in specially formatted files and transmit it to the Federal Reserve each day to sync ACH debits and credits with each other (see here, here, here, and here).
Each of these mechanisms is widely used. But they are insufficient for enabling the general case of tamper-resistant import and export of valuable data between arbitrary economic actors — whether they be corporate entities, individual users, or headless scripts. For that, we need public blockchains.
Public blockchains enable shared state by incentivizing interoperability. Public blockchains convert many types of data import/export problems into a general class of shared state problems. And they do so in part by incorporating many of the best features of the mechanisms described above.
- Public blockchains provide canonical methods for read/write access like a hosted corporate API, but without the same platform risk. No single economic actor can shut down or deny service to clients of a decentralized public blockchain like bitcoin or ethereum.
- They also enable individual users to export critical data to their local computer or to a new application like JSON/CSV/MBOX (either by sending out funds or exporting private keys) while providing cryptographic guarantees of data integrity.
- They provide a means for arbitrary economic actors (whether corporations, individual users, or programs) to seamlessly interoperate. Every economic actor who reads from a public blockchain sees the same result, and any economic actor with sufficient funds can write to a public blockchain in the same way. No account setup is necessary and no actor can be blocked from read/write access.
- And perhaps most importantly, public blockchains give financial incentives for interoperability and data integrity.
This last point deserves elaboration. A public blockchain like bitcoin or ethereum typically records the transfer of things of monetary value. This thing could be the intrinsic cryptocurrency of the chain, a token issued on top of the chain, or another kind of digital asset.
Because the data associated with a public blockchain represents something of monetary value, it finally delivers the financial incentive for interoperability. After all, any web or mobile app that wants to receive (say) BTC must honor the bitcoin blockchain’s conventions. Indeed, the application developers would have no choice due to the fact that bitcoin by design has a single, canonical longest proof-of-work chain with cryptographic validation of every block in that chain.
So, that’s the financial incentive for import.
As for the incentive for export, when it comes to money in particular, users demand the ability to export with complete fidelity, and very quickly. It’s not their old cat pics, which they might be ok with losing track of due to inconvenience or technical issues. It’s their money, their bitcoin, their cryptocurrency. Any application that holds it must make it available for export when they want to withdraw it, whether that means supporting send functionality, offering private key backups, or both. If not, the application is unlikely to ever receive deposits in the first place.
So, that’s the financial incentive for export. Thus, a public blockchain economically incentivizes every economic actor that interacts with it to use the same import/export format as every other actor, whether they be corporation, user, or program. Put another way, public blockchains are the next step after open source, as they provide open data. Anyone can code their own block explorer by reading from a public blockchain, and anyone can create their own wallet capable of writing to a public blockchain.
That’s a real breakthrough. We’ve now got a reliable way to incentivize the use of shared state, to simultaneously allow millions of individuals and companies access to read from (and thousands to write to) the same data store while enforcing a common standard and maintaining high confidence in the integrity of the data.
This is very different from the status quo. You typically don’t share the root password to your database on the internet, because a database that allows anyone to read/write to it usually gets corrupted. Public blockchains solve this problem with cryptography rather than permissions, greatly increasing the number of simultaneous users.
It’s true that today public blockchains are typically focused on monetary and financial applications, where the underlying dataset represents an append-only transaction history with immutable records. That does limit their generality, in terms of addressing all the different versions of the data import/export problem. But there’s ongoing development on public blockchain versions of things like OpenStreetMaps, Wikipedia, and Twitter as well as systems like Filecoin/IPFS. These wouldn’t just represent records of financial transactions where immutability was a requirement, but could represent other types of data (like map or encyclopedia entries) that would be routinely updated.
Done right, these newer types of public blockchain-based systems may allow any economic actor with sufficient funds and/or cryptographic credentials to not just read and write but also edit their own records while preserving data integrity. Given this capability, there’s no reason one can’t put a SQL layer on top of a public blockchain to work with the shared state it affords, just like an old-fashioned relational database. This results in a new type of database with no privileged owner, where all seven billion humans on the planet (and their scripts!) are authorized users, and which can be written to by any entity with sufficient funds.
That day isn’t here yet. It remains to see how far we can push the use cases for public chains. And scaling challenges abound. But hopefully, it’s clear that while public blockchains are indeed a new kind of database, they offer something quite different than what a traditional database offers.
* The one exception is the so-called “Requester Pays” feature that Amazon and other cloud services offer. This is a cool feature that lets someone pay to write to your S3 bucket. But it’s permissioned – it still requires every would-be writer to open an AWS account, and the bucket owner has to be willing to let them all write to their bucket, so there’s still a single distinguished owner.
Database image via Shutterstock
Ripple price surged higher and broke the $0.3150 and $0.3300 resistance levels against the US dollar.The price even broke the $0.3500 resistance and tested the $0.3750 resistance area.There was a break above a major contracting triangle with resistance at $0.3240 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair traded as high as $0.3778 and it may continue to grind higher towards $0.4000 or $0.4200.Ripple price rallied significantly above $0.3500 against the US Dollar, plus recovered versus bitcoin. XRP is now well above $0.3500 and it looks set for more gains above $0.4000.Ripple Price AnalysisAfter a successful close above $0.3000 and $0.3100, ripple price gained bullish momentum against the US Dollar. The XRP/USD pair rallied significantly above the $0.3500 resistance and gained more than 15%. The bulls took control after there was a close above the $0.3200 level and the 100 hourly simple moving average. Recently, bitcoin price rallied above the $7,800 and $8,000 levels, which helped altcoins such as Ethereum and ripple in moving higher.During the rise, there was a break above a major contracting triangle with resistance at $0.3240 on the hourly chart of the XRP/USD pair. The pair surged above the key $0.3550 and $0.3600 resistance levels. There was even a spike above the $0.3750 level and the price traded as high as $0.3778. It is currently correcting lower below $0.3700. An immediate support is $0.3640 and the 23.6% Fib retracement level of the recent wave from the $0.3212 swing low to $0.3778 high.On the downside, there are many supports above the $0.3400 and $0.3450 levels. The 50% Fib retracement level of the recent wave from the $0.3212 swing low to $0.3778 high is also near the $0.3495 level. Therefore, if there is a downside correction, the price may find bids near the $0.3550, $0.3500 or $0.3495 levels. On the upside, the $0.3750 and $0.3800 levels are initial hurdles. A successful break above $0.3800 is likely to set the pace for more upsides above the $0.4000 level in the coming sessions.Looking at the chart, ripple price clearly started a strong upward move above the $0.3300 and $0.3500 levels. The gates are now open for a push above the main $0.4000 resistance level. If there are further upsides, the price may even test the $0.4200 barrier.Technical IndicatorsHourly MACD – The MACD for XRP/USD is gaining strong momentum in the bullish zone, with positive signs.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 75 level, with overbought conditions.Major Support Levels – $0.3640, $0.3550 and $0.3495.Major Resistance Levels – $0.3750, $0.3800 and $0.4000.
ETH price gained momentum and traded to a new monthly high at $210 against the US Dollar.The price corrected lower, but it remains well supported on the downside near $192.Yesterday’s highlighted key bullish trend line is active with support near $192 on the hourly chart of ETH/USD (data feed via Kraken).The pair is likely to climb above the $205 and $210 resistance levels in the near term.Ethereum price climbed above $200 once again versus the US Dollar after bitcoin broke $8,000. ETH price is in a nice uptrend and it may soon break the $210 swing high.Ethereum Price AnalysisIn the past three sessions, Ethereum price gained momentum above the $192 and $195 resistances against the US Dollar. The ETH/USD pair even broke the $200 resistance level and settled well above the 100 hourly simple moving average. The main driving force was bitcoin, climbing above the $7,800 and $8,000 resistance levels. Ether too gained traction and traded to a new monthly high above the $205 level. A swing high was formed near $210 before the price corrected lower.It traded below the $205 and $200 levels, but the bulls remained in control. The price tested the $192 level and it is currently moving higher. An immediate resistance is $200, and the 50% Fib retracement level of the recent drop $210 high to $192 low. However, the main resistance is near the $204 level. If there is a proper close above $204, the price might break $205. The $205 level represents the 76.4% Fib retracement level of the recent drop $210 high to $192 low. The next resistance is near $210, above which the price is likely to climb higher towards $220.If there are further gains, the price is likely surge higher towards the $230 level. On the downside, there is a decent support is near the $195 and $192 levels. Moreover, yesterday’s highlighted key bullish trend line is active with support near $192 on the hourly chart of ETH/USD. The key support is near $185 and the 100 hourly SMA.Looking at the chart, Ethereum price is slowly gaining traction above the $198 and $200 levels. A clear break above the $205 level is likely to set the pace for more gains above the $220 level in the near term. If there is a downside correction, the price is likely to find bids near the $195 and $192 levels.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is about to gain traction in the bullish zone.Hourly RSI – The RSI for ETH/USD is currently well above the 50 level, with a positive bias.Major Support Level – $192Major Resistance Level – $205
A new routing proposal is expected to be merged today into the official “specifications” of lightning, the technology many advocates trumpet as the fix to bitcoin’s long-standing payment problems.
Christian Decker, one of the most prolific lightning developers who engineers for the tech startup Blockstream, pointed out that the proposal, which he wrote, is moving on to the next stage at CoinDesk’s Consensus 2019 conference, emphasizing that this change will pave the way for many highly-anticipated lightning features.
These new features are needed because lightning is still experimental and considered even “reckless” to use, as some people are still occasionally losing money from bugs in the protocol. The hope is that new features such as these will continue to help make the payment method easier to use.
Decker elaborated to CoinDesk:
“This enables quite some cool new features, including multi-path routing, trampoline routing, and so forth. It’s on the agenda for today’s [IRC specification] meeting and I’m confident it’ll get merged today, so we can get started on the next wave of features.”
Decker has also already written up a code implementation, putting the proposal into practice. Other developers across the ecosystem agree that it’s a handy change, which is why it is now being merged into the specifications.
All lightning code implementations will need to code up these specifications in order to remain interoperable, meaning one person using one implementation can send a payment of another.
Decker calls it a “multi-frame” proposal, “which allows us to include more information in the routing onion,” the same technology used in the popular privacy-minded browser Tor.
When trying to send a payment across the network, even intermediaries can’t see the information within them by using a technique which mirrors an “onion” in that a layer of obfuscation is peeled away at each hop in the network. So, say there are four hops, the four layers are peeled away one by one with each hop, until the payment reaches the recipient.
The proposal makes changes to the routing onion format so that it can include more information that other routing tools on top of it need.
Decker image via CoinDesk
As the bullish Bitcoin rally continues and shows no signs of slowing, the entire crypto market has erupted with charts, thoughts, and speculation.
Trust, Don’t Verify
The New York Attorney General’s office recently opened a very public investigation into the firm. They allege much to the contrary. Tether Limited subsequently admitted it only has 74% of the reserves for its more than $2 billion stablecoins in circulations.
. @bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.
— Paolo Ardoino (@paoloardoino) May 13, 2019
Why? Because they know we are trustworthy, they recognize what we have been doing (without needing us bragging about it publicly) and they want us keep fighting for the industry whole. Their own words.
Thank you everyone for the amazing support we got. We are impressed. $LEO
— Paolo Ardoino (@paoloardoino) May 13, 2019
You read all of that right. Ardoino didn’t mean “cringeworthy” though you may read that on first glance if you’re of a particular mind.
Bitfinex is one of the earliest exchanges to offer fiat on-ramps, and for a long time served as the only way to effectively off-load Tether (USDT) for bank wires. That situation morphed last year when Bitfinex announced “Tether neutrality.” Translation: it began listing other stablecoins, including PAX and USDC.
In response, Tether announced a change in its withdrawal fee structure.
USDT Still Dominant “Stablecoin” on Bitfinex
Despite that move, Tether is still the most actively used stablecoin on Bitfinex.
Paxos Standard Token, for example, had less than $500 in activity in the USD/PAX market over the last 24 hours, while USDT/USD had more than $13 million. A Paxos Standard representative wrote to this reporter at the end of last week to report a 30% increase in issuance since the Tether scandal broke, saying:
“With PAX market cap increasing 33% and transaction volume increasing 83% over the past week, this indicates that there is a new demand from both retail and institutional clients for a regulated stablecoin.”
CCN has not verified this statistic, but we’ll take them at face value. The implication is that traders are fleeing from Tether, which is known to be using a type of fractional reserve issuance (without the benefits of FDIC or other regular banking protections).
Let Them Eat $LEO
Bitfinex is executing some big moves directly in the wake of what would be a “black swan event” for many other companies in most industries. Meanwhile, bitcoin and other cryptos are booming upward.
Admittedly, a $1B fundraising round for $LEO comes mainly from investors (privately) via their parent company, iFinex.
Bitfinex has previously been accused of manipulating the market by researchers and conspiracy theorists alike.
Tether Defender Bingo, play for Tethers pic.twitter.com/FYJPAHqOAT
— Eloncarlo”USDT33kByJuly” (@CasPiancey) May 12, 2019
The bitcoin market is a highly emotional one, as previously discussed.
Its vulnerability to manipulation is a primary factor in its lack of exchange-traded funds.
Given all we’ve learned over the past 10 years, it would be an oversimplification to say that regulators are “uneducated.”
We know that Mt. Gox’s trading bots manipulated the price as part of a scheme to replace lost funds, for example, when the market was much smaller. We know that Bitfinex fell victim to one of the largest bitcoin heists in history. We know that New York State won’t believe anything Bitfinex says until they prove it.
But wait, isn’t that the way we’re all supposed to behave in this market?
Right now, we’ve got bright minds from cornerstone firms actively partnering with Bitfinex.
sent LBTC balance from liquid-qt wallet https://t.co/iCIa3ouceF to @bitfinex tradeable BTC balance in 2-3mins. (2 confirms are final on liquid network). similar on @TheRockTrading see also @sideshiftai pilot program (beta). reddit discussion thread https://t.co/cjdYS48RgV https://t.co/Xg7ojTT3fe
— Adam Back (@adam3us) May 8, 2019
And then we’ve got a fundraising event for a new token, with influential voices pumping it:
— Alistair Milne (@alistairmilne) May 10, 2019
A lot of pieces, but no complete picture.
Yet, onward the bulls run.
Here, debunk this Tether FUD by the Tether lawyer. pic.twitter.com/4qj9sJP57H
— Bitfinex’ed (@Bitfinexed) May 9, 2019
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.
Over the weekend the crypto markets incurred a massive influx of buying pressure that extended the upwards rally they have incurred over the past several weeks, with Bitcoin setting fresh year-to-date highs at $7,800, up significantly from its 2019 lows of $3,400 that were set in February.Although it is always somewhat unclear as to what, or who, drives these rallies, one prominent economist and analyst believes that a small handful of large buyers who are actively engaging in strategic buying have driven this surge.Bitcoin’s Surge to Year-To-Date Highs Not Driven by Retail InvestorsAt the time of writing, Bitcoin is trading up over 11% at its current price of $7,750, up from daily lows of $6,800 which were hit yesterday.Bitcoin’s journey to its recently established year-to-date highs first began in early-April when Bitcoin swiftly surged from the lower-$4,000 region into the $5,000 region, at which point it traded sideways before forming a parabolic pattern that has led it up towards its current price levels.This massive surge has led many analysts to conclude that the bear market has officially ended, which likely means that further gains are imminent and that the entire crypto markets are currently in the early-stages of the next bull trend.Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, spoke about who could be driving this parabolic ascent in a recent tweet, boldly stating that it is not being driven by retail investors.“What drove $BTC up this week? A handful of large players, that started buying in waves. Systematic buying. Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later. Not retail driven,” he explained.What drove $BTC up this week?A handful of large players, that started buying in waves. Systematic buying.Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later.Not retail driven.— Alex Krüger (@krugermacro) May 12, 2019Coordinated Buying and Institutional News May Be Driving BTC’s Price UpwardsKrüger further elaborated on the aforementioned tweet, speculating about what factors may be contributing the upwards surge, listing an influx of bourgeoning institutional venues and coordinated buying as two possible factors.“What motivated these buyers? Possibilities: – Front-running Fidelity/Bakkt/Ameritrade/Etrade flows – Front-running news – Coordinated buying – Something else (as always) – Combination of all of the above,” he said.What motivated these buyers? Possibilities:– Front-running Fidelity/Bakkt/Ameritrade/Etrade flows
– Front-running news
– Coordinated buying
– Something else (as always)
– Combination of all of the above— Alex Krüger (@krugermacro) May 12, 2019As reported by NewsBTC, news broke earlier today regarding the imminent launch of the highly anticipated ICE-backed crypto platform, called Bakkt, which is expected by many to lead to an influx of fresh capital into Bitcoin and the crypto markets, which may help fan the flames that are fueling the ongoing rally.As the week kicks into gear and more news breaks regarding the imminent launch of institutional platforms, including those being offered by Bakkt and Fidelity, it is likely that the long-term significance of this rally will become clearer.Featured image from Shutterstock.
Tether has asked a judge for more leeway to use its cash amid the New York Attorney General’s investigation of the stablecoin issuer and affiliated crypto exchange Bitfinex.
According to new court documents filed Monday, the attorneys for each side failed to come to a consensus on what, precisely, Tether should be allowed to do with its holdings. The NYAG’s office wants to prevent “any affiliated entity” from touching funds in Tether’s reserve and a 90-day injunction.
On the other hand, attorneys for Tether and iFinex, the parent firm of Bitfinex, want a 45-day injunction and for affiliated entities that want to fairly redeem tether to be able to do so.
The case began last month, when the NYAG secured a preliminary injunction, alleging Bitfinex covered up the loss of $850 million by borrowing from Tether’s reserve. (The companies have overlapping management and owners.) A New York State Supreme Court judge ordered the two parties to clarify the order last week.
In a letter to the court Monday, iFinex’s attorneys wrote that, without waiving their previous motion to vacate NYAG’s Ex Parte order entirely, they would agree to certain changes to the preliminary injunction.
The key point, for the crypto exchange, appears to be that it wants to be able to use its stablecoin reserve funds, including for investment purposes.
“If [Tether] simply held the proceeds in cash, the company would not earn the money required to fund its operations,” Bitfinex’s attorneys said.
However, in its own letter to the court, attorneys from the NYAG’s office said that “bona fide holders of tether should be able to redeem those tokens for cash, as Tether has long represented to the market,” adding:
“Further, the OAG’ s proposed modifications do not restrain Tether from placing the reserves in legitimate interest-bearing or similar cash equivalent accounts, as the OAG understands Tether to have previously done.”
Tether argues that NYAG has no basis for cutting off the ability of tether holders “who happen to be affiliated with Respondents” – including Tether employees – to redeem USDT, and that as a result, the NYAG’s argument presents a “gross overreach,” particularly given that it is not actually a regulator.
NYAG’s attorneys say that they aren’t opposed to Tether’s employees being paid, but that they want the company to pay its employees using transaction fees, rather than its reserves.
Both parties submitted proposed modified orders, which have similar third subparagraphs, but which clearly demonstrate the differences of opinion in subparagraphs 1 and 2.
Judge Joel M. Cohen, who is overseeing the case, will likely schedule a hearing to reconcile the different proposals in the coming days, though it was not immediately clear just when that would be.
New York State Supreme Court image via Nikhilesh De for CoinDesk
By CCN: Bitcoin’s run higher is igniting a wave of fear-of-missing-out (FOMO) among those who gloated about the cryptocurrency’s imminent demise. Fundstrat Co-Founder Tom Lee recently took time to engage with crypto Twitter now that bitcoin’s price has rebounded considerably.
Through a Twitter poll, he asked,
“At what price will see FOMO from those who gloated about 90% crash in BTC?”
Before he closed the voting over the weekend, nearly 8,000 people had participated. Most of them believe bitcoin hitting $10,000 again will bring naysayers to their knees, causing them to jump back in.
At what price will see FOMO from those who gloated about 90% crash in $BTC?
Military term, SWAG (scientific wild-assed guess).
My SWAG is $10,000 is price that causes FOMO from those who saw #bitcoin as dead forever.
At what price do we see FOMO?
— Thomas Lee (@fundstrat) May 12, 2019
Bitcoin Is Approaching FOMO Sweet Spot
At the time of writing Monday afternoon, that $10,000 was close. The bitcoin price just surpassed $8,000.
Bitcoin has had its largest volume of all-time two days in a row (h/t @krugermacro)
THE BULLS ARE BACK! 🔥
— Pomp 🌪 (@APompliano) May 13, 2019
Respondents to Tom Lee’s poll added some anecdotal evidence:
My friends didn’t even realize bitcoin was going up again. No way are we near retail mania. Plus Google trends for bitcoin are only 8% of highs…
— Anthony Moliterno (@amoliterno945) May 12, 2019
Lee’s Got SWAG
Lee is known for his lofty bitcoin price predictions of 2018 that never came true. This year, however, momentum is on his side. Through this poll, we get a glimpse of the bitcoin bull’s sense of humor. He broke down his guestimates about where bitcoin’s price is headed as his SWAG, aka “scientific wild-a**ed guess.”
Last month, Lee said bitcoin’s price will likely see a new all-time high in 2020, proclaiming that crypto spring has sprung.
While Lee’s poll was a fun way to explore what people think about bitcoin’s price breakout, he has laid out serious arguments for why bitcoin bulls are in a good place. He’s cited several catalysts that are pushing bitcoin’s price higher, including:
- an increase in blockchain transaction volumes
- bullish technical signals
- a ramp-up of crypto trading volumes
Lee acknowledged that cryptocurrency adoption – a key fundamental indicator – has yet to take root in the U.S. Meanwhile, in countries such as Venezuela and Turkey where local currency valuations have cratered, crypto use is on the rise. The devaluation in local currencies has “caused on-chain volumes to take off,” Tom Lee said, adding:
“It’s real important for that to take place in U.S. for adoption because there’s a really well-established financial system. You have to remember that crypto is probably 70% a story outside the U.S.”
— CNBC Futures Now (@CNBCFuturesNow) April 25, 2019
Super interesting theories on #cryptocurrency movements. From solar system movements to personal influence. What’s not to like? 😁. #crypto #CurrencyConversations #blockchain #markets https://t.co/FD9zDOzxee via @CCNMarkets
— Emilia Valbum (@emibava) May 13, 2019
Bitcoin is increasingly being adopted by the mainstream.
Fidelity Investments will launch a crypto trading service “within weeks.” That’s also playing a role in driving the price higher.
Fidelity says its cryptocurrency trading product is aimed at institutional traders and will initially focus on BTC.