Kategorie: Crypto Analysis

• Kadena pumps after Binance listing. 

• Profit-taking has triggered a minor correction, but overall momentum is bullish.

• Kadena’s core metrics as a platform blockchain are behind its strength. 

Kadena (KDA) is one of the best performers today and is currently up by over 14%. This follows news that the KDA token was now listed on Binance, the world’s largest exchange by volumes,

The Binance listing is a big deal, as it opens up Kadena to an even wider range of investors. This means higher volumes and higher demand once the money flows back into the crypto market. 

However, it is not just the Binance-driven pump that makes Kadena a worthwhile investment. Kadena is one of the lowest fees platform blockchains and can scale well. Kadena is also one of the safest platform blockchains in the market because, like Bitcoin, it runs on a Proof-of-Work algorithm. This makes it perfect for companies that want to build sophisticated financial solutions that require a high level of security. 

Interestingly, while Proof-of-Work has been getting a lot of bad rap lately due to energy consumption, Kadena does not have this problem. That’s because, in the Kadena Proof-of-Work algorithm, the cost does not increase with use. This helps it combine the safety of PoW with the efficiency that other blockchains get from Proof-of-Stake. 

This is one of the big factors contributing to Kadena’s rise in adoption and price over the past year. 

Kadena Profit-taking triggers correction.

 Source: TradingView

Hours before the Binance listing, Kadena’s price pumped hard. However, a few hours later, the price entered a correction as traders took profits in anticipation of a post-news dump. 

Bulls seem to be regaining control, though, an indicator that investors are still buying into Kadena in anticipation of even more gains. With Bitcoin now pushing back above $40k resistance, Kadena could easily retest the week’s high of $8.30. 

Summary 

Kadena pumped after the Binance listing. While the price has since dropped due to profit-taking, it seems to be stabilizing again. This indicates that the underlying demand is strong despite the price taking.

The post Kadena rallies after Binance listing – Can the pump last? appeared first on Coin Journal.

According to a Bloomberg report released Friday, hedge fund Fir Tree Capital Management, who have $4 billion in assets under management, made a large short bet against Tether (USDT), the stablecoin which is pegged to the US dollar.

One-to-one backing

With a market capitalisation of $80 billion, Tether is the world’s third largest cryptocurrency, behind only Bitcoin and Ethereum. The company has long been under fire surrounding accusations that $80 billion worth of reserves is not held to back the cryptocurrency one -to-one, an issue the company has repeatedly tried to clear up, but one which will not go away.

Indeed, I interviewed Tether CTO Paolo Ardoino last week following the announcement by the Swiss city of Lugano that Tether would be accepted as legal tender, and asked him whether the city had concerns over whether the cryptocurrency was fully backed:

CoinJournal: Did Lugano seek assurances on whether Tether is 100% backed, or were they content with what Tether has already released publicly on the matter?

Paolo Ardoino: Tether and the city of Lugano sat down and openly discussed the misconceptions about the company. Tether has publicly stated that it has ongoing conversations with regulators and law enforcement and has made valiant efforts in complying with all requests for transparency.

Fir Tree Capital Management remain among the sceptics, however, with Bloomberg’s report claiming that the company expects to receive a payoff within 12 months. The short is motivated mainly by Tether’s ties to Chinese real estate developers, with revelations of Evergrande Group’s finances last year causing turmoil. While originally spooking crypto markets, Tether came out to confirm that Evergrande Group commercial paper did not feature among the $24 billion in high-yield commercial paper that the firm owns. Evidently, this is a claim which Fir Tree does not believe.

Structure of the Short

While details about the structure of the short bet have not been made public, we can speculate how it may be constructed. Given the fact Tether is a stablecoin with no price volatility (i.e . it always trades at $1), the short is an unconventional one. Where typically a short bet presents unlimited downside (as the shorted stock or financial instrument theoretically has no limit to the upside), this is different, given Tether will not rise in price under any circumstances.

In truth, it is more likely to resemble the purchase of a credit default swap (CDS) on a debt obligation, the likes of which entered mainstream conscience amid the Great Financial Crash last decade (and were the subject of Hollywood blockbuster The Big Short). Fir Tree are likely paying a fixed spread to bet against Tether, and will receive a large payoff if Tether defaults (alternatively, if a default becomes more likely in the eyes of the market, the spread would widen on the contract and Fir Tree could cash out at a profit).

Asymmetric Payoff

Therefore, the hedge fund’s bet will have an asymmetric payoff schedule to the upside. Of course, if Tether default and they do receive their payoff, the cryptocurrency markets will likely implode. The centrality of Tether to the ecosystem at large cannot be overstated – the stablecoin clears over $50 billion of daily trade volume (Apple stock volume, for comparison, averages $98 million in daily volume over the last three months).

Tether 24H volume 2019-2021, via Statista

Tether sceptics are nothing new, but this amounts to quite a high-profile move by Fir Tree, even if it is a low-risk, high-reward structure. The fund supposedly commenced shorting Tether last July, while Bloomberg also claims Fir Tree are considering setting up a separate fund for the sole purpose of shorting Tether, should there be enough client interest.

For the sake of crypto investors around the globe, the hope is that Tether are, in fact, what they claim to be – fully backed. If not, Christian Bale’s next role could be as a Fir Tree executive.

The post Hedge fund shorts Tether appeared first on Coin Journal.

Over the last few days, Ethereum whales have been loading up on Chainlink (LINK). In fact, LINK has overtaken Yearn Finance as the most traded asset by whales. So, what does this mean? And should you also follow this whale money? Here are some highlights:

• As of now, LINK is the most traded crypto by 1000 of the biggest Ethereum whales.

• This suggests that large ticket investors are bullish on LINK in the near and medium-term.

• At press time, LINK was trading at $13.24, down around 6% over the last 24 hours.

Data Source: Tradingview 

Why are ETH Whales buying Chainlink (LINK)

It is important to keep in mind that 100 of the largest Ethereum wallets are worth $1.3 billion. So these are people with a lot of money to throw around, and any moves they make can have a lasting effect on the price action of any asset. In fact, we have seen the largest ETH wallet now holds nearly $168 million worth of LINK. This is huge, and it suggests that the coin is bullish.

Also, Chainlink has been making major moves. The project announced just yesterday that it is launching support for tokenized perpetual swap pools for Float Capital. Float Capital is based on Avalanche. Chainlink is also making major moves on NFTs in conjunction with Ethereum. This creates the perfect mix for future growth.

Why you should buy Chainlink (LINK)

Other than the recent developments that we have highlighted above, there is no doubt Chainlink is one of the main crypto projects by market cap. The coin had stagnated in terms of price movement over the last month or so.

But this does not in any way change the long-term outlook of this coin. LINK will be huge, and it’s one of those coins every crypto investor should consider having.

Want to learn how to safely invest in Chainlink? Check out our comprehensive Chainlink buying guide here or purchase from our recommended platform below!

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The post Ethereum whales are loading up on Chainlink (LINK) – Here is why you should do the same appeared first on Coin Journal.

The crypto market has been up and down lately. The volatile market is just so hard to predict but despite this, there are still some altcoins that remain very bullish from a long-term point of view. Here is why this is the best time to buy:

• Most cryptos are trading way lower form all-time highs

• The geopolitical and economic pressures are likely to ease in the near term.

• Crypto still delivers more value than any other asset class out there.

Well, if you are thinking of starting March with some altcoins in your portfolio, here are three options to consider.

VeChain (VET)

VeChain (VET) has seen some incredible downturn this year. The coin is in fact down nearly 15% over the last week alone. But this bearish trend will not last. This is an altcoin that still has so much to offer, and the underlying fundamentals are quite incredible.

Data Source: Tradingview

For folks who are looking for assets to buy and hold for a year or thereabout, VeChain is really a good long-term bet. You just need to be ready for the short-term volatility.

Stacks (STX)

Stacks (STX) is actually one of the few crypto assets that have been surging recently. The coin is up nearly 35% in the last week and managed even to swing by 60% in 24-hour intraday trading. The layer 1 blockchain has a market cap of around $2.3 billion, and there is so much room for more growth. Like VeChain, it’s also a nice long-term bet.

Huobi Token (HT)

The Huobi Token (HT) is linked to the Huobi exchange, one of the largest crypto exchanges in the world. The altcoins have faced increased pressure due to the ongoing crypto crackdown in China. But it still remains a major player in this space and is likely to see more gains in the future.

The post The best altcoins to kickstart your March Investment Journey appeared first on Coin Journal.

• Zcash rallies as privacy coins gain upside momentum.

•  Zcash is pretty safe from adverse regulations targeting private transactions. 

• Zcash is currently making higher lows, an indicator that bulls are firmly in control. 

Zcash (ZEC), like the other privacy coins, has been rocketing over the last 24-hours. When going to press, Zcash was up by 10%.

Zcash is one of the most powerful privacy coins out there, thanks to its use of Zero-Knowledge Proof technology. Zk-SNARKs are a type of proof that can be used to show ownership without revealing information. One side uses it as evidence, and the other party believes them because they have zero-knowledge succinct noninteractive argumentative knowledge about what’s being proven.

Essentially when using Zcash, no one can trace a transaction through the blockchain. However, unlike Monero, Zcash has a feature that allows users to make non-private transactions. This feature puts Zcash at a lower risk of negative regulations than other privacy coins. 

Zcash safe from upcoming U.S regulations

Crypto regulations are coming to the U.S, and one of the issues they intend to address is the use of cryptocurrencies for illicit activities. This means cryptocurrencies that can be used to shield transactions may face restrictions in the U.S. 

Zcash is one of those that are pretty safe from these because it is designed for both private and non-private transactions. This means even if regulations trigger a delisting of privacy coins, as happened in Japan a while back, Zcash could be safe.

Zcash continues to make higher lows.

Source: TradingView

Like other privacy coins, Zcash has pumped in the last 24-hours. However, unlike the rest that is already showing weakness, Zcash is still strongly bullish. In the last 12-hours, Zcash has been making lower highs, as it continues trading in a bullish channel. If the current trend continues, Zcash could test $150 in the short term. 

Summary

Zcash is rallying alongside the other privacy coins. Zcash has an advantage over other privacy coins if regulations in the U.S target private crypto transactions. That’s because it also allows for non-private transactions.

The post Zcash is making higher lows as bulls take control appeared first on Coin Journal.