Kategorie: Crypto News

Avalanche price has not been left behind in this year’s crypto sell-off. The AVAX coin has crashed by more than 80% this year, making it one of the worst-performing large-cap coins in the industry. Its market cap has collapsed to about $5 billion, making it the 17th biggest coin this year.

Why has AVAX collapsed?

Avalanche is one of the biggest layer-1 networks in the world. It is a well-known Ethereum rival that is known for its speed and low transaction costs. According to its website, it has a transaction finality of less than 2 seconds. It can handle thousands of transactions per second (TPS). In addition, Avalanche runs thousands of nodes globally.

Like Ethereum, Avalanche is widely used to build decentralized projects in finance, NFTs, and the metaverse industries. According to DeFi Llama, Avalanche’s applications have a total value locked (TVL) of more than $1.57 billion, making it one of the biggest players in the industry.

Avalanche has been used to build some of the most popular DeFi apps in the industry like Aave, Benqi, Trader Joe, and Platypus Finance. However, the volume of assets in Avalanche has crashed from over $11 billion to the current $1.57 billion. At the same time, the role of Aave in its network has grown rapidly. 

While Avalanche has over 200 projects, Aave has a market dominance of 45.7%. This is one of the top reasons why the AVAX price crashed in 2022. Another reason is that Avalanche has no major market share in key industries like NFT. Some of the leaders in NFTs are platforms like Ethereum, Flow, and Immutable X.

AVAX price has collapsed because of the falling global demand amid rising interest rates in the United States. 

Avalanche price prediction

So, is it safe to buy Avalanche? The daily chart shows that the AVAX price has been in a freefall in the past few months. In this period, it has managed to move below the 25-day and 50-day volume-weighted moving averages (VWMA).

A closer look shows that the coin has formed what looks like a head and shoulders pattern. In price action analysis, this pattern is usually a bearish sign. 

Therefore, there is a likelihood that the coin will have a bearish breakout soon. If this happens, the next reference level to watch will be at $13.8. An opposite situation is that the coin has formed a falling wedge pattern, meaning that it could soon bounce back.

How to buy AVAX

The post Is Avalanche’s AVAX a good buy in October? appeared first on CoinJournal.

The native chain of the crypto exchange Binance was suspended Thursday after an exploit led to millions of dollars of crypto being exposed.

The incident obviously sent shockwaves through the crypto world, but for me it also highlighted the dangers of decentralisation.

Don’t get me wrong. Decentralisation is arguably the single biggest pillar of everything upon which cryptocurrency is built. It is a concept which has a genuine chance to upend all that we know about finance, money and the economy at large. It can make the world a better place.

But the Binance incident highlights that in this early stage of cryptocurrency – let us not forget that Satoshi Nakamoto only wrote his Bitcoin whitepaper in 2008 – that decentralisation also poses some very real risks.

What happened with Binance and what has decentralisation got to do with it?

An attacker targeted the Binance chance late Thursday evening, with initial movements on-chain suggesting that two million BSC tokens were in their crosshairs.

BNB Chain estimate that over $100 million of assets were moved, but confirmed that $7 million in assets had almost immediately been frozen, reducing the total losses.

The decision to halt the entire chain is a stunning move from Binance. As I said, blockchains are meant to be decentralised. This episode shows that BNB is quite the opposite.

Obviously, this throws up all sorts of issues. The crypto purists are up in arms about the fact that this is literally one company running the entire ecosystem – the exact same as Web 2.0 and what crypto is supposedly trying to combat.

They have a point. Then again, the ability of Binance to freeze $7 million shows that, despite going against the mantra of crypto, centralisation does have its perks too. $7 million may pale in comparison to the total size of the breach here, but it’s still a hell of a lot of money. And this is still early days – there might be more confiscated by the time you read this.

An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly.

— CZ 🔶 Binance (@cz_binance) October 6, 2022

Will Binance’s reputation be harmed?

Binance operates from such a strong position in the market, as well as being marshalled by a highly popular CEO, that I actually believe this incident will be largely brushed under the carpet.

Binance even got hacked one time before. This is also technically a magical production of $100 million of BNB out of thin air, rather than a direct attack on consumers, an important distinction (although still terrible news for any BNB holders).

The previous time, Binance’s customers were targeted. In 2019, hackers stole $40 million in Bitcoin. Binance’s reaction was exemplary, immediately moving to assure customers that anyone affected would be compensated. And that is exactly what happened. They even kicked off an insurance fund since, with the aim of compensating customers should anything like this ever happen again.

With a nascent technology like crypto, these things are bound to happen, unfortunately. With companies like Binance, assuring customers that their funds will always be safe, that perceived risk is obviously mitigated.

But this is only possible with a degree of centralisation. In a fully decentralised world, an exploit like this would go unpunished. Indeed, I don’t need to be hypothetical here – customers have funds stolen from them all the time and there is rarely recourse.

As I said, decentralisation is a beautiful thing. But this episode is an unfriendly reminder that it also poses risks, and while the industry bootstraps itself up, innovates and figures things out as it goes along, customers need to bear that in mind.

Stay safe out there.

The post Binance hack incident highlights dangers of decentralisation appeared first on CoinJournal.

The Sandbox has partnered with football star Kun Aguero to attract fans into the metaverse but could that lead to surge in the price of SAND?

SAND, the native of The Sandbox metaverse, is down by more than 2% in the last 24 hours. 

The poor performance coincides with that of the broader cryptocurrency market. The total crypto market remains above $950 billion despite losing less than 1% of its value in the last 24 hours.

Bitcoin, the world’s leading cryptocurrency, has dropped below the $20k level once again after losing 0.7% so far today, Ether is also down by less than 1% so far today but continues to trade above $1,300.

SAND’s poor performance comes despite The Sandbox announcing its partnership with Premier League legend Sergio Kun Aguero. 

⚽ AGÜEROOOOOOO ⚽

Delighted to welcome none other than @aguerosergiokun to The Sandbox! 🤝 The 𝘒𝘶𝘯𝘪𝘷𝘦𝘳𝘴𝘦 will hold football-themed games, dancing and many more surprises!

Stay tuned for more… pic.twitter.com/ewj71bAPEf

— The Sandbox (@TheSandboxGame) October 6, 2022

The Sandbox added that the first version of Kuniverse will be released on November 6th and will take the form of a huge stadium with football-themed games, dancing, and even a food truck with Argentinian food, among other experiences. 

Key levels to watch

The SAND/USD 4-hour chart remains bullish despite The Sandbox underperforming over the last few hours. 

SAND/USD Chart By TradingView

The MACD line remains above the neutral zone, indicating that The Sandbox market is positive. The 14-day relative strength index of 49 shows that SAND is not yet in the oversold region despite underperforming today. 

At press time, SAND is trading at $0.8452 per coin. If the bearish trend continues, SAND could drop below the $0.8118 resistance level before the end of the week.

Unless the bulls regain control of the market, SAND could drop towards the $0.7452 support level for the first time since July. 

The bulls might regain control and push SAND towards the $0.9257 resistance level in the near term. However, the second-major resistance level at $1.0599 should be hard for the bulls to overcome over the next few hours or days. 

Where to buy now

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

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The post Is SAND a buy after football star Kun Aguero joins The Sandbox metaverse? appeared first on CoinJournal.

• Bitcoin Cash has held close to $110 for three months now

• The cryptocurrency’s price movement has reflected that of Bitcoin

• BCH has formed multiple bottoms, suggesting a possible price reversal at $110

Bitcoin Cash BCH/USD bulls have been sending a clear message. That they want to keep the $110 level intact. Even when the markets are under pressure, BCH has always held to the level since June. 

Well, the price dynamics of Bitcoin Cash resemble those of the parent blockchain, Bitcoin. The latter has been the king of crypto. Thus, it is expected that Bitcoin will steal all the headlines in very bullish markets. However, investors look at Bitcoin Cash as a cheaper alternative to Bitcoin. It’s not the cheapest cryptocurrency, nonetheless, as it trades at a relatively premium $122 price. Still, the price is a penny compared to the beaten-down price of $20,200 for Bitcoin.

Turning to the price action, Bitcoin buyers have always defended $19,000. Clear multiple bottoms at the level suggest it could be the most plausible psychological bottom for the cryptocurrency. BCH has moved similarly, which we think would welcome a bullish recovery.

BCH forms multiple bottoms at $110. What does it mean?

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BCH with eToro today Disclaimer

Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

Buy BCH with Skilling today Disclaimer

Source – TradingView

From the technical outlook, BCH has formed multiple bottoms at the $110 level. Multiple bottoms are not trend or price direction indicators by themselves. Instead, they show a fight for control between sellers and buyers. 

Multiple bottoms that occur after a prolonged downturn could be a significant suggestion of a trend change. In other words, it signifies that buyers are beginning to get in, which erodes the selling pressure. 

What next for BCH

The above chart shows buyers trying to control BCH at the $110 level. To a patient investor, that would be a perfect entry point before momentum kicks in.

The post Bitcoin Cash maintains choppy movement. Are buyers relentless? appeared first on CoinJournal.