Tron’s [TRX] Justin Sun announces USDT-Tron support on hacked exchange DragonEx

Hacks have been a recurring issue that have often crippled the cryptocurrency market, with the Cryptopia hack in January being a prime example. The latest victim to fall prey to this predicament was DragonEx, a crypto exchange which announced that its platform was hacked, on their Telegram channel.
The hack was reported on 24-25 March, while on 25 March, the Tron Foundation announced that the USDT-Tron trading pair will be supported by DragonEx. This announcement was part of a slew of updates from the Tron roster, which also included TRX Market announcing its support for the USDT-Tron pair.
It is not confirmed whether Justin Sun and the Tron Foundation were aware of the hack before announcing it on social media, but the timing of the announcement demonstrates that the Tron update followed the announcement of the hack.
Post the hack, DragonEx had announced,
“Part of the assets were retrieved back, and we will do our best to retrieve back the rest of stolen assets. Several Judicial administrations were informed about this cyber crime case including Estonia, Thailand, Singapore, Hong Kong etc. and we’re assisting policemen to do investigation.”
Further reports have confirmed that that the lost assets include Bitcoin [BTC], Ethereum [ETH], NEM [XEM], EOS, XRP, Ethereum Classic [ETC], NEO, ABBC, Litecoin [LTC], Bitcoin Cash [BCHABC], Stellar [XLM], Monero [XMR], Cardano [ADA], Ontology [ONT], Tron [TRX], Bytom [BTM], Asch [XAS], Icon [ICX], and Qtum.
The exchange also announced its investigation of the hack, stating that the authorities were working on finding the perpetrators. An official message from DragonEx read,
“We have encountered attacks from hackers and our users’ crypto assets and DragonEx’s crypto assets are both stolen. International Policemen are investigating. Please wait for following announcement about the accurate loss situation.”
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Source: AMB Crypto

CoinMarketCap responds to inaccurate data allegations; says such concerns are valid

CoinMarketCap, one of the prominent aggregators of cryptocurrency market data, was recently accused of manipulating trading volume. CoinMarketCap responded by stating that concerns over inaccuracies “were valid” and that it would be adding more data for its users to make better decisions.
CoinMarketCap is one of the top 500 most-visited websites, and is popular among crypto users for information regarding crypto prices, exchange volume, market cap, and rankings. However, a report published by Bitwise on 20 March suggested that the site’s “data was wrong”. The Bitwise report claimed that about 95% of Bitcoin’s exchange trading volume listed on CoinMarketCap was fake or non-economic in nature, “thereby giving a fundamentally mistaken impression of the true size and nature of the Bitcoin market”.
The crypto data aggregator site has notable influence over the cryptocurrency ecosystem, including the prices of cryptos. In early 2018, when CoinMarketCap removed numerous South Korean exchanges from its price calculations, a sharp fall in most cryptocurrencies’ prices was recorded, reported Bloomberg.
The trading volume of the popular website is in question yet again, and it has planned to fix the problem by including a set of new tools to offer more transparency in trading, said Carylyne Chan, the Global Head of Marketing at CoinMarketCap, in an email to Bloomberg News.
Chan gave examples of liquidity measures, hot and cold wallet balances, and traffic data for listed exchanges. She added,
“For instance, if an exchange with low traffic has $300M volume and just 5 BTC in its wallet, users will be able to draw their own conclusions without the need for us to make arbitrary judgment calls on what is ’good’ or ’bad,’” Chan said. “We want to state that our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations –- and not introduce our own bias into that mix.”
CoinMarketCap will be making a series of changes in response to concerns about fake trading volumes. In July 2018, the website said it removed volume requirements for exchanges to be listed, along with the introduction of seven-day and 30-day volume. It also started listing the date of establishment of exchanges to help users.
In response to people’s concerns, CoinMarketCap responded,

Source: Twitter
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Source: AMB Crypto

Limited Supply Principle stifling cryptocurrency regulatory approval, says CME Chairman Terry Duffy

Terry Duffy, the Chairman of the Chicago Mercantile Exchange [CME], is in the news after he cast doubts on the prospects of a publicly traded Bitcoin asset. Cryptocurrencies backed by real assets like fiat currency would be the only form of virtual currency that would fit the bill under regulatory oversight, he stated.
During a recent interview at FIA’s International Futures Industry conference, Duffy voiced his support for stablecoins backed by real dollars.
Stablecoins like Tether [USDT] are backed one-for-one by fiat and hence, are the ‘best of both worlds.’ They allow users to delve into the cryptospace, enjoying ubiquity and universality of payments while still being tethered to the centralized financial world.
He stated,
“How do we figure out how to get the cryptos in there, but just have them backed up by fiat, and let that work as it is.”
Cryptocurrencies are often seen as just another investment vehicle, where the value of the underlying coin is more important than its use cases. Duffy stressed that the adoption and use of decentralized currency should be of greater concern, than the actual rise and fall of the market.
The CME Chairman added,
“But the argument has gone only to the price of say bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?”
Publicly traded Bitcoin [BTC] assets, like the much-touted Bitcoin Exchange Traded Fund [ETF] have been in a regulatory shackle for months now. Despite two proposals, the Securities and Exchange Commission [SEC] is yet to give its approval, with many claiming that doing so is hindering the mainstream growth of decentralized currency.
Duffy added that the main reason for the backlash against the ETF was the underlying cryptocurrency’s principle of limited supply. The protocol placed into Bitcoin is that there can only be 21 million BTC in supply, which the market is expected to reach in 2140 when the mining rewards dwindled to 0.
Cryptocurrency proponents often cite this principle as one that balances the market and reduces inflationary pressure. Sovereign currency can be created by the government at any time, which is a fundamental point of opposition within the crypto-community.
In light of this debate, Duffy stated that governments cannot operate unless “they run on a deficit.”
Regulation is the single biggest hurdle for cryptocurrency adoption, something Duffy acknowledged. The cryptocurrency community needs to get the nod from financial watchdogs if they want to break into the forefront of the financial realm, he believes.
Duffy concluded by highlighting the skepticism that regulators have when approaching the topic of cryptocurrencies,
“I do believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto.”
The CME group, together with its cross-city rivals, the Chicago Board of Options Exchange [CBOE], set the cryptocurrency market alight by launching Bitcoin Futures in 2017. However, 15 months after the launch, the CBOE decided to delist the XBT contracts for March 2019, allowing the CME group to take over the BTC Futures market.
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Source: AMB Crypto

Breaking: DragonEx hacked; exchange reports loss of customers’ funds

DragonEx, a cryptocurrency exchange platform that claims to be “a safe and stable platform for Bitcoin and ETH transactions,” is in the news after it announced via their official Telegram channel that its platform had been compromised. The announcement stated that the exchange lost control of its users’ cryptocurrency assets. However, the exchange did not elaborate on the exact amount of loss incurred by DragonEx.
The announcement further read,
“Part of the assets were retrieved back, and we will do our best to retrieve back the rest of stolen assets. Several Judicial administrations were informed about this cyber crime case including Estonia, Thailand, Singapore, Hong Kong etc. and we’re assisting policemen to do investigation.”
The exchange’s officials stated that the trading services provided to users on the platform will shut down. The team claimed that the exact turn of events, loss of assets and  recovery details pertaining to the hack would be released in a week, adding that the exchange “will take the responsibility no matter what.”
Source: Telegram
DragonEx’s statement on Telegram stated,
“We have encountered attacks from hackers and our users’ crypto assets and DragonEx’s crypto assets are both stolen. International Policemen are investigating. Please wait for following announcement about the accurate loss situation.”
Further, an admin of the channel, Joanne Long stated that the team had tracked down the addresses the stolen funds were transferred to. Based on the data collected, they ascertained that the assets lost during the hack included Bitcoin [BTC], Ethereum [ETH], NEM [XEM], EOS, XRP, Ethereum Classic [ETC], NEO, ABBC, Litecoin [LTC], Bitcoin Cash [BCHABC], Stellar [XLM], Monero [XMR], Cardano [ADA], Ontology [ONT], Tron [TRX], Bytom [BTM], Asch [XAS], Icon [ICX], Qtum, and Tether [USDT].
Source: Telegram
These coins were then transferred to leading exchanges such as Binance, Bittrex, and Huobi. As of press time, the coins transferred from the above addresses were frozen on Huobi and
Notably, this announcement was made only on the exchange’s telegram account. The last update on Reddit was three days ago, while DragonEx remained silent on Twitter.
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Source: AMB Crypto

Coinbase is a bank, says Andreas Antonopoulos; cites two reasons for “centralized” exchange’s popularity

In a podcast interview with Adam B. Levine, the host of the Let’s Talk Bitcoin podcast, Andreas Antonopoulos, a Bitcoin proponent and author of Mastering Bitcoin, said that Coinbase was a bank.
Levine and Antonopoulos were joined by Jonathan Mohan, a blockchain consultant, to discuss privacy and banks, during which Levine raised a concern about Coinbase, calling it a centralized exchange with no privacy. Levine went on to ask,
“So is there a use case for decentralized exchanges, or do we need to have a different type of centralized exchange? Is there a solution to this problem?”
Antonopoulos said that we were battling for privacy in the 21st century, in every domain. He clarified that banks were obligated to carry all round surveillance of every financial transaction in and out of every bank account, credit card, and payment under the Patriot Act. He added,
“So whenever you do a transaction on your Visa card, or your Paypal transaction, or your bank accounts, you can assume that not only are the Five Eyes agencies of Australia, New Zealand, the UK, Canada, and the United States watching, but you can assume that half of the European intelligence agencies, the Chinese, and Russians are watching that transaction too, and are all doing statistical analysis scoring.”
That is how traditional finance worked, he said. Talking about the role exchanges play, Antonopoulos opined that they were a mere subset of what is happening across the financial world. Due to the lack of visibility in crypto, they can be “thwarted, which means you can obfuscate and build better privacy into these systems.”
He called Coinbase a crypto-friendly bank. However, being a bank, signing up on Coinbase meant “compromising your privacy,” which is completely opposite of what cryptocurrency stands for, he added. He explained two reasons for the exchange’s popularity,
“One is, for people who see cryptocurrency as an investment, which in my opinion has always been the wrong way to look at this. If you’re not earning cryptocurrency you’re buying cryptocurrency, then you need an exchange. You don’t use cryptocurrency, so you keep moving between the two economies of fiat and crypto.”
Security in crypto was another issue, he said. He claimed that this lack of security led people to choose banks for outsourcing, banks who “don’t know how to handle their own custody.” He concluded by urging people in the space to help others with self-custody and security of their crypto, to keep people from outsourcing to a company where problems of privacy emerged.
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Source: AMB Crypto

Blockchain is not for all database related projects, says ANZ Associate Director

Maria Bellmas, the Associate Director of Trade and Supply Chain of NAZ Institutional, recently questioned the effectiveness of the distributed ledger technology or the blockchain technology over the traditional systems.
In a recent blog post, the Director of Australia and New Zealand Banking Group Limited [ANZ] claimed that Blockchain technology is “sold as a solution to all of life’s problems” and added that not all projects would benefit from it.
She was of the opinion that even though the blockchain technology had numerous use-cases, it was still not a necessary technology. Bellmas stated that the existing legacy database and technology solutions were better for certain projects and emphasized that the technology was not mature enough. According to Bellmas, existing database systems have already provided solutions for all the issues that the blockchain wants to fix.
The genesis of blockchain was meant for completely eliminating the need for third-party intervention for the execution of transactional settlements, while traditional financial systems were still very much in need of it.
According to Bellmas, the distributed ledger technology has become the go-to technology in the tech ecosystem, whose success was fueled by the Bitcoin boom and the subsequent collapse. The technology raises important questions, despite offering genuine solutions, she asserted.
Citing the example of Chinese blockchain-related projects in 2018, where only 8% of the total 80,000+ projects were still active, Bellmas explained that the technology was not a solution for all database projects.
He Baohong, the director of CAICT’s Cloud Computing and Big Data Research Institute, had earlier compared blockchain to other short-lived contemporary technologies and said that the latter would eventually die out. However, in the case of the blockchain, the director stated,
“In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”
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Source: AMB Crypto

Tether [USDT]’s market cap dominance of stablecoin market down to 75%

Tether [USDT], one of the most controversial stablecoins of 2018, continued to gain the cryptocurrency market’s attention this year. From speculations and allegations over the coin not being backed by the U.S Dollar against its claims in 2018 to becoming a coin not being entirely backed by the U.S dollar in 2019, the coin made headlines all year long.
Taking all this into consideration, Ceteris Paribus, a Twitter user, pointed out that the market cap of Tether witnessed a significant drop over the past year. At the beginning of 2018, the coin had control over the entire stablecoin market. However, it witnessed a significant drop towards the end of November 2018.
Based on the post, Tether conceded its market to Circle’s USD Coin [USDC], TrueUSD [TUSD], Paxos Standard [PAX], DAI, and the Gemini Dollar [GUSD]. Nonetheless, Tether still held a majority of the market cap, reigning over 75% of the entire stablecoin market. The cryptocurrency was followed by USDC with control of around 9% and TUSD with 7% control of the entire stablecoin market cap. The rest was covered by DAI and Gemini Dollar.
Source: Twitter
HODL_monk, a Reddit user, stated that the reason for USDC gaining momentum in the stablecoin market was Coinbase. The user said,
“Coinbase just put a BIG boost on USDC, by making it the only way to online fiat to crypto without fees on Coinbase Pro. I will probably be using USDC for that reason alone, and I doubt I will be the only one.”
Cthulhoo, a Redditor said,
Source: Reddit
To this, Nullius_123 stated,
“I think that once DAI accepts BTC (and other assets) as collateral for its lending system, DAI could become the major player in the stablecoin landscape. It is the only stablecoin that is open and transparent. We don’t even know if Tether is fully capitalized. I am astonished that anyone would risk their capital with it.”
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Source: AMB Crypto

Litecoin [LTC] Price Analysis: Token’s future remains bearish despite bullish activity in the short-term

The fourth largest coin on CoinMarketCap, Litecoin [LTC], breached the $60 mark, despite minor slip ups in the bull run.
At press time, the coin held a market cap of $3.69 billion and was priced at $60.45. The digital silver registered a 24-hour trading volume of $2.01 billion. LTC exhibited a minor loss of 0.41% against the US dollar over the past 24 hours. Additionally, it fell by 1.30% over the past seven days.
Coineal contributed the highest trading volume for the coin, accounting for 7.67% of the total trading volume via the LTC/BTC pair. It was followed by Coinall with 7.45%, and DigiFinex with 5.38%, respectively.
Source: TradingView
Litecoin’s one-hour chart exhibited a long uptrend from $55.91 to $57.77. A downtrend from $61.40 to $59.28, along with two minor downtrends between $59.59 – $58.47 and $60.44 – $59.44 were registered on the chart. The support for the coin was found at $55.47, while the resistance was at $65.
Bollinger Bands: The mouth of the bands depicted growing volatility in LTC’s price movement.
Awesome Oscillator: The closing bars of the indicator were green, indicating bullish price momentum for Litecoin.
Chaikin Money Flow: The CMF was above the zero-line, indicating money flow into the LTC coin market and hence, a bullish market.
Source: TradingView
On LTC’s one-day chart, an uptrend from $32.83 to $45.68, and a longer downtrend from $55.82 to $33.96 were seen. The immediate resistance for the digital asset was marked at $63.06, while support points were found at $30.55 and at $22.91.
Parabolic SAR: The dotted markers were below the candlesticks, predicting bullish movement for the coin.
Klinger Oscillator: The reading line was below the signal line and pictured a bearish trend for Litecoin.
MACD: The MACD line was also below the signal line, reiterating the bearish projection.
The short-term indicators for Litecoin [LTC] projected a bullish market and potential price breakouts. The long-term indicators however, projected a strong bearish phase for the silver coin.
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Source: AMB Crypto

Cardano is a multi-ledger system that will support multi-currencies, says Charles Hoskinson

Charles Hoskinson, the creator of Cardano and CEO of IOHK, organized a surprise Ask Me Anything session on his YouTube channel on March 24, 2019. In this session, the CEO covered various topics such as the Roadmap update, the release of training materials, Cardano’s status as a multi-asset ledger, and EOS centralization.
On being asked about the roadmap update, Charles Hoskinson assured that it would be announced during the IOHK summit being held between April 17-18, 2019 in Miami.
Hoskinson further spoke about whether ADA would be the only cryptocurrency for the entire Cardano ecosystem, or there would be more currencies introduced in the future. He stated that it would not be a “particular usual financial system,” if users cannot issue their own assets, adding that Cardano was a multi-ledger system that would support multi-currencies.
Hoskinson went on to say,
“And, we think we have a great strategy for handling that, I’ve partnered with somebody personally who’s in the ICO market to see what we can do about bringing STOs to our platform as well or at least ensuring inter-operability standards. So, we will be a multi-asset ledger.”
Additionally, Hoskinson remarked that EOS “felt like centralization,” rather than a “perfectly legitimate product.” He added that he failed to see any differentiation between deploying something on EOS versus deploying something on Amazon. The Co-founder of Ethereum said,
“[…] expect for being much more expensive, unpredictable pricing and lower quality of service and also when things go wrong, and have no recovery mode outside of begging a committee of people to save you […] This is not innovation, this is just application old concepts and then bolting on poorly conceived governance system and cutting a lot of poor facilities.”
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Source: AMB Crypto

Bitcoin [BTC] is a more fluid, dynamic currency than the US Dollar, claims Tim Draper

Tim Draper, a renowned Silicon Valley Venture Capitalist, recently spoke about Bitcoin and offered cryptocurrency investment advice during an AMA session on Facebook.
Draper said that the ideal period to invest in Bitcoin had not passed yet and that he had more faith in the digital asset than the US fiat currency.
Back in 2014, the FBI shut down the black market site Silk Road and seized 144,336 Bitcoins. The US Marshals Service auctioned these digital currencies, with Tim Draper purchasing 29,656 bitcoins at the time. Draper bought it for an estimated $18 million, worth around $118 million, at press time.
Tim Draper stated,
“What it is [Bitcoin] is the future of currency and the currency is going to be decentralised and open and you’re going to end up with a much more fluid, dynamic currency if you own Bitcoin, than if you own dollars.”
He also told investors not to worry too much with respect to the short-term price fluctuations in the cryptosphere. He indicated that it was not ideal to invest in Bitcoin while focusing only on the short term, suggesting that doing so was a “mistake”.
He stressed on the importance and value of Bitcoin and explained how it depended on people and heavy investors. He also added that people could manipulate the coin’s price, stating that its valuation could go up or down if big customers invested in or sold off the coin.
He added,
“Sometimes Bitcoin is going to feel very valuable … and sometimes you’re going to feel like dollars are what you really want to hold on to. When you feel like dollars are what you really want to hold on to, you probably want to buy Bitcoin.”
Tim Draper recently met Argentinean President, Mauricio Macri, suggesting that he should announce Bitcoin as a national currency. Draper was convinced that the decision would rescue the country from its current financial crisis. He said,
“That could end up being just phenomenal and globally, people will start saying I’m going to Argentina to start my business.”
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Source: AMB Crypto

XRP: Bitfi adds XRP after Bitrue listing; cites ‘mass adoption’ as key reason

The XRP community has been in the news multiple times recently due to its activity online and the sheer force of user interactions on social media platforms. The clamoring for mass adoption seems to have received a boost as Bitfi, a popular cryptocurrency wallet, announced that they would be adding XRP to its arsenal. The organization tweeted:
“You asked, we listened. XRP is launching in Bitfi soon. And no, it is not like Bitcoin, poses no threat to Bitcoin, & serves a completely different purpose. Let’s keep an open mind & make the entire community stronger. Spread the love  #xrp #ripple”
The news garnered a lot of positive reviews from the community and the crypto-verse, with many calling it a piece of “good news”. Post the listing of XRP, many users were also clamoring for the addition of Tezos. To this Bitfi replied:
“Tezis is very high on the priority list.”
Another Twitter user, Teodor Andrei, stated:
“This is a good news, I HODL #XRP”
Bitfi claimed that XRP addition was another step in the wave of mainstream adoption because the platform was mainly Bitcoin-friendly.
XRP also got another morale boost when Bitrue added XRP base pairs against three cryptocurrencies. The three pairs would be DASH/XRP, BAT/XRP, and STORM/XRP. The exchange upgraded their wallet for XRP and resumed deposits and withdrawals of XRP on March 23, 2019.
Bitrue also revealed its future plans for the coin as an XRP airdrop was announced, with a 7.3% interest program for XRP in the works.
@plitern1, a Twitter user, commented:
“Thank you for the continued roll-out of XRP base pairs! This is how the whole ecosystem of crypto starts to mature as a whole: The diminishing correlation to the Btc peg. It’s not only great for #XRP but for everyone that likes crypto & wants crypto as a whole to succeed.”
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Source: AMB Crypto

Bitcoin [BTC/USD] Price Analysis: Prices side with bulls in short-term, long-term still in turmoil

Bitcoin [BTC] briefly broke the $4,000 sentiment level yesterday. However, it dipped back and was trading at $3,966 at press time. The market cap of Bitcoin was hovering around $70 billion, with a 24-hour trading volume of $9.19 billion.
Most of the trading volume of Bitcoin usually comes from BitMEX exchange via the trade of Bitcoin perpetual contracts against the US Dollar. However, the trading volume of BTC contributed by BitMEX has reduced in recent weeks as it contributed only $469 million, which is 4% of the total Bitcoin trade volume.
FCoin exchange is the top contributor as it contributed $644 million in terms of trading volume via the trading pair ETH/BTC, which is 5.50% of the total trading volume.
Source: TradingView
Bitcoin, on the one-hour chart, showed an uptrend that extended from $3,689 to $3,957, while the downtrend extended from $4,163 to $4,039. The prices were testing the immediate support at $3,953. Subsequent supports were seen at $3,848 and $3,696.
The Parabolic SAR markers spawned below the price candles and indicated that the price trend reversed and was headed upwards, whixh was a bullish signal.
The MACD indicator showed a bullish crossover below the zero-line. The MACD histogram on the one-hour chart showed green bars developing in tandem with the crossover.
The Relative Strength Index hit the 60-line and started its descent and was at the 50-line at press time, indicating an equal momentum between the sellers and the buyers.
Source: TradingView
The one-day chart of Bitcoin showed no signs of an uptrend, however, the downtrend extended from $9,800 to $4,056. The price of BTC bounced off the support at $3,189 on December 15, 2018. The immediate resistance was at $4,056, and subsequent resistance points were at $7,641, and $9,800.
The Aroon indicator showed the Aroon up line and Aroon down line collapsing. This indicated a consolidation movement that BTC was undergoing at press time.
The Stochastic RSI hit the oversold zone and showed a collapsing trend, which passed below the 50-line. This presented a bearish movement for Bitcoin in the longer timeframe.
The Chaikin Money Flow showed a rising trend, which meant that the money flowing into the Bitcoin market was high.
The one-hour chart showed a bullish trend for Bitcoin, which was confirmed by the Parabolic SAR, MACD, and RSI indicators. Unlike the one-hour chart, the one-day chart showed a consolidation phase for Bitcoin as indicated by Aroon, Stochastic RS, and CMF indicators.
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Source: AMB Crypto

Bitcoin [BTC] market resolute against manipulation, claims Bitwise report; dismisses SEC’s concerns

The purists in the traditional financial market realm have always believed that Bitcoin [BTC] can be controlled via a powerful computer network. A recent Bitwise report has, however, calmed allegations that the Bitcoin market is prone to market manipulation.
The report filed by Bitwise Asset Management was presented before the US Securities and Exchange Commission [SEC], in line with their recent application for a Bitcoin Exchange Traded Fund [ETF].
Market manipulation within the crypto-market has always been of concern to the SEC. The regulatory body in subsection 5 of Section 6(b) of the Exchange Act states that exchanges “are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade.” The SEC often cited this subsection while referring to the volatile industry as being prone to frauds and scams.
Bitwise gave two arguments to satisfy the SEC Exchange Act of 1934, namely, unique resistance against manipulation/fraud, and a surveillance sharing agreement with a regulated market of a certain size. The investment firm, based on historical cases, added that the regulated surveillance-sharing reason was of “primary consideration”.
The report claimed,
“That the bitcoin market is protective against manipulation, and critically, that there is a significant, regulated and surveilled market for bitcoin futures.”
Bitcoin: The Commodity
In their defense of the top cryptocurrency’s lack of susceptibility to market manipulation, Bitwise claimed that “Bitcoin is the first digital commodity in the history of the world.” Here, it should be noted that the report hails Bitcoin as a “commodity,” and not as an “asset”.
Bitwise drew three core divergences in the character of Bitcoin to other commodities. Firstly, Bitcoin is fungible, meaning that the cryptocurrency was constant, irrespective of location, unlike natural commodities like gold.
Secondly, Bitcoin can be easily transported via a computer network. Lastly, Bitcoin can be traded on an exchange, allowing users to directly view the price and employ trading strategies for the same. Furthermore, there is an absence of representatives, advisers, and consultants in the decentralized currency realm as anyone is free to trade.
It must be noted that all the exchange volume analysis is based on the figures of 10 exchanges as they record “actual volume,” according to Bitwise.  The exchanges on the list are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex.
The report added,
“These unique features allow the bitcoin market to be uniquely resistant to manipulation in critical ways.”
Bitcoin: Anywhere, Anytime
Bitwise juxtaposed the ability of the top cryptocurrency to resist market manipulation to scandals that have plagued other markets over the past few years. The report highlighted four key incidents, including the LIBOR scandal of 2012, the Global Forex Scandal of 2013, the Gold Fix Scandal of 2014, and the ASIC Scandal of 2016.
In all the aforementioned scandals, the common elements were a deliberate attempt at manipulating the market by large financial institutions, resulting in heavy fines levied on the culprits.
The traits of fungibility and transportability in the virtual currency market allowed the creation of arbitrage in the market. The opportunities for investors to make a quick buck due to price disparity between exchanges was reported by Bitwise as being negligible.
Given this dominance of market participants, global liquidity can stand in the way of market manipulation, increasing the inability of the market to fall prey to any sort of voluntary change.
Bitcoin: The Distributed Market
Bitcoin’s spread of volume and “distributed market” will prevent one exchange from holding the coin’s price hostage. Of the ten exchanges considered, no one exchange had pure dominance in terms of BTC volume. Binance accounted for the highest volume, chalking up 40.47 percent, and was followed by Bitfinex and Kraken with 13.94 percent and 11.67 percent respectively.
The report concluded by saying,
“The spot bitcoin market is highly fractured amongst ten exchanges, and no exchange has a majority share. This contributes to bitcoin’s unique resistance to market manipulation, as any attempt to manipulate the market must either be coordinated synchronously across multiple exchanges or must involve a significant spike of volume on a single exchange.”
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Source: AMB Crypto

Bitcoin [BTC] market more efficient as arbitrage on exchanges improved, says Bitwise Report

From the standpoint of investors, the cornerstone of the virtual currency market is its volatility. With price fluctuations at every corner, arbitrage-savvy investors would consider the cryptocurrency market a paradise. However, a recent report from Bitwise suggests otherwise.
The report presented to the SEC by the crypto-centric investment firm, Bitwise Asset Management, captured the arbitrage in the Bitcoin [BTC] market over the past 18 months. However, the crux of the research was the difference between actual volume and reported volume, which recorded a deviation of a whopping 95 percent.
It must be noted that the “arbitrage” in question refers to the variance in Bitcoin prices on exchanges, including Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex. This is because these exchanges pose “actual volume”, according to a prior study done by Bitwise.
Looking at the monthly average price deviation based on the price listed by the ten aforementioned exchanges, a consistent decline was seen in 2018. The price deviation in December 2017, when the Bitcoin bull-run began, was over 0.7 percent and since then, the deviation has not crossed 0.5 percent.
January 2018 saw the highest deviation in 2018, accounting for over 0.45 percent, which soon fell to under 0.1 percent by July. As the market went into a freefall after the Bitcoin Cash [BCH] hardfork, the deviation increased to over 0.15 percent. February 2019 saw the lowest deviation in over 15 months when a deviation of 0.05 percent was recorded.
Additionally, the average spread of the 10 exchanges varied from Coinbase Pro’s $0.01 to Bitfiniex’s $0.10, indicative of the accurate tracking between exchanges and small margin for arbitrage trading.
Bitwise cited three main reasons for the consistency in BTC prices across major exchanges. The primary reason was the launch of futures contracts by the Chicago Board Options Exchange [CBOE] and the Chicago Mercantile Exchange [CME] in December 2017. The report stated,
“[Bitcoin Futures] fundamentally transformed the bitcoin market, creating a two-sided market and easy hedging for the first time.”
The secondary reason was the surge in institutional interest, which Bitwise refers to as “institutional market makers.” Jane Street Capital, a trading firm was named by the report as a “leading market maker” entering the crypto-trading business in March 2018.
In July 2018, Europe’s largest ETF marker maker, Flow Trader, began making markets with the Swedish Bitcoin ETN. In the following months, several market makers followed Flow Traders’ lead and ventured into the crypto market. The report added,
“By summer 2018, most major market makers were either present in the bitcoin market or actively exploring the space.”
Cryptocurrency lending at the institutional level also provided immense impetus to the flattening of the arbitrage level, stated the third reason. Prior to the crypto-boom of December 2017, “modest lending” did take place but after the surge, the crypto-lending industry skyrocketed.
Bitwise cited the success of Galaxy Global Trading, a cryptocurrency lending platform, which processed over $1.11 billion in borrowings and lending in 2018 alone, with around 60 percent owing to Bitcoin [BTC]. According to the final quarterly report from the company, despite the decline in Bitcoin’s price, its loan records surged to $153 million active loans, a massive 15 percent increase from the previous quarter.
Based on the three factors presented above, the report suggests that the efficiency of the overall market in 2018 has seen a significant boost. This has allowed both retail investors and institutional investors to establish a commensurate foothold in the market. The investment firm hails this period as being a “dynamic, institutional-quality, two-sided market for the first time.”
Bitwise concluded:
“While future developments, including the proposed launch of a U.S. ETF, may be incrementally beneficial to the market, the spot bitcoin market today operates with an efficiency that matches or exceeds that of other major markets.”
Other findings of the report pointed out that the degree of difference between the Bitcoin Futures market and the Bitcoin Spot market is not as far apart as one might imagine. If adjusted rather than touted trading volume being taken into account, the BTC  Futures expressed as a percentage to their Spot equivalent rises from 1.51 percent to over 33 percent.
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Source: AMB Crypto

Ethereum [ETH/USD] Price Analysis: Cryptocurrency finds greener pastures

Ethereum [ETH], the second largest cryptocurrency by market cap, was indecisive about whether it wanted to ride with the bulls, or whether it wanted to go down the path of the beat market.
According to CoinMarketCap, Ethereum was trading at $137.28 with a market cap of $14.46 billion, at press time. The trading volume of the cryptocurrency was recorded to be $4.12 billion, while its price witnessed a fall of around 2% over the past seven days.
Ethereum one-hour price chart | Source: Trading View
The one-hour chart for the cryptocurrency recorded three significant downtrends, from $142.52 to $138.83, from $138.76 to $137.49, and from $137.43 to $135.61. The uptrend for the coin was drawn from $132.77 to $134.68.
The immediate resistance for the cryptocurrency was at $137.51 and the strong resistance was at $140.21. The coin’s immediate support was placed at $134.67 and strong support was at $132.75.
Parabolic SAR pictured a bull market for the coin as the dotted lines were perfectly aligned below the candlesticks.
Klinger Oscillator sided with the Parabolic SAR as the reading line moved above the signal line after a crossover.
RSI showed that the buying pressure for the cryptocurrency was the same as the selling pressure.
Ethereum one-day price chart | Source: Trading View
On the one-day chart, the coin had two prominent downtrends, from $218.66 to $157.55 and further from $157.55 to $138.72. The uptrends for the cryptocurrency were from $82.92 to $103.22 and from $103.22 to $134.47.
The immediate resistance for the cryptocurrency was at $140.53 and strong resistance was at $157.75. The immediate support for the coin was at $125.17, while strong support was found at $82.78.
MACD was seen drawing the coin towards the bear’s side as the moving average line shifted below the signal line after a crossover.
Chaikin Money Flow showed that money was flowing into the market, a bullish sign for the coin market.
Bollinger Bands forecast a non-volatile market as the bands were closing in on each other.
At press time, major indicators such as the CMF from the one-day chart and Parabolic SAR and Klinger Oscillator from the one-hour chart, projected a bull market for the coin.
The post Ethereum [ETH/USD] Price Analysis: Cryptocurrency finds greener pastures appeared first on AMBCrypto.
Source: AMB Crypto