Kategorie: Crypto News

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Babel Finance lost $280 million of customer funds: report

Babel’s losses included 8,000 BTC and 56,000 ETH wiped out in unhedged proprietary trading positions, a proposal deck cited in a recent report detailed.

Babel Finance, an embattled crypto lender that froze customer withdrawals in June amid the crypto market crash, reportedly lost over $280 million of its customers’ funds in bad trading bets, The Block reported citing the crypto company’s restructuring proposal deck.

Per details in the proposal, the Babel Finance’s losses came via proprietary trading of 8,000 bitcoin (BTC) and 56,000 ether (ETH). The failed bets happened last month as the platform faced liquidation amid massive deleveraging across the crypto market.

The firm says in the deck that as BTC price plunged from $30,000 to $20,000, unhedged positions “chalked up significant losses, directly leading to forced liquidation of multiple Trading Accounts.” 

It’s these accounts that wiped out approximately 8k BTC and 56k ETH worth over $280 million in customer funds.

Capitulation and restructuring plans

Babel’s capitulation spiraled as its lending and trading units failed to meet margin calls – and no customer funds to continue honouring withdrawals.

Trouble hit not long after the financial services provider raised $80 million in its Series B financing round in May. The financing, secured at a valuation of $2 billion, saw investments from Jeneration Capital, BAI Capital, 10T, Circle Ventures and Dragonfly Capital among other investors.

The market downturn and the proprietary trading failure has Babel Finance trending alongside other troubled crypto firms like Voyager Digital and Celsius Network, which have both filed for bankruptcy. 

The collapse of crypto hedge fund Three Arrows Capital (3AC) and the contagion that followed only heightened the uncertainty.

As part of its restructuring plans, the Babel team is looking to convert $150 million of its largest creditors’ debt into convertible bonds. The lender also seeks to add to its survival kit $250 million to $300 million via convertible bonds, with further funds likely to come from a $200 million revolving credit facility.

The plan, per the proposal deck, is to ultimately incorporate Babel Finance’s major creditors as shareholders.

The post Babel Finance lost $280 million of customer funds: report appeared first on CoinJournal.

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Honduras opens the ‘Bitcoin Valley’ in Santa Lucia

Honduras’ ‘Bitcoin Valley’ joins other bitcoin projects in Central America –  El Salvador’s ‘Bitcoin Beach’ Guatemala’s ‘Bitcoin Lake’, and ‘Bitcoin Jungle’ in Puntarenas, Costa Rica.

Honduras has opened its own bitcoin city in Santa Lucia, a tourist town about 20 minutes from the country’s capital Tegucigalpa.

People now have access to goods and services that they can easily pay for all across the ‘Bitcoin Valley,’ Reuters reported on Friday.

The project is an initiative of Blockchain Honduras, Coincaex (a Guatemalan crypto exchange), the Technological University of Honduras and the local Santa Lucia municipality.

Opening up to crypto-tourism

The launch of ‘Bitcoin Valley’ comes amid increased tourist use of bitcoin and other cryptocurrencies, and its establishment looks to promote the Santa Lucia economy through crypto-tourism and by encouraging local business to start accepting digital asset payments.

The initial plan, according to the report, is to have 60 local businesses adopt the use of crypto – with the training then extended to other enterprises. 

These businesses will not have to worry about the tissue of crypto volatility as merchants will not receive the cryptocurrencies. Rather, the crypto exchange Coincaex will process the payments for merchants within the ‘bitcoin city’, with businesses having instant access to what customers pay via the local currency.

The launch of ‘Bitcoin Valley’ joins other three major crypto projects across the Central American region seeking to promote adoption among the general public within specific towns or regions. 

There’s El Salvador’s ‘Bitcoin Beach’ in El Zonte, ‘Bitcoin Lake’ in Guatemala, and ‘Bitcoin Jungle’ in Puntarenas, Costa Rica.

The post Honduras opens the ‘Bitcoin Valley’ in Santa Lucia appeared first on CoinJournal.

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3 exchange related coins you should consider in August

  • BNB, FTT, and CRO are exchange related tokens

  • Crypto-exchange-related tokens have an added security protection

  • All the tokens are bullish and offer opportunities in August

Tokens backed by crypto exchanges are some of the best to own due to their added security. While the list for exchange-related tokens is inexhaustible, we bring you the best 3 selections. They are tokens with huge potential in August if the current bull market remains. 

Binance Coin (BNB)

BNB/USD ranks as the largest crypto-exchange-related token. It comes at position five overall in crypto markets, with a market cap of around $46.6 billion. The cryptocurrency is backed by the world’s largest crypto exchange Binance.

BNB ranks as a crypto to watch in August as most cryptocurrencies show up. With increased trading volumes, Binance will attract more users, and BNB will get a boost. 

Source – TradingView

BNB has recaptured the $288 level after the latest gains. That puts it at the next level of $326 in August.

FTX Token (FTT)

FTX token FTT/USD may not be among the top 20 tokens. Ranked 22nd with a market cap of $4.23 billion, the FTT token is one to watch in August. While markets crashed and most crypto exchanges faced liquidity issues, FTX remained strong. FTX CEO SAM Bankman-Fried even went ahead to help struggling firms. FTT will grow as cryptocurrencies recover.

Source – TradingView

FTT has hit resistance at $32 after recent gains. A breakout past the resistance or retracement opens buy trades next month.

Cronos token (CRO)

Cronos token CRO/USD is ranked at position 24 with a market cap of $3.497 billion. Crypto.com exchange seemed to succumb to the bear market by announcing reduced rewards on its cards. However, it backtracked, and its token is one to watch.

Crypto.com has been top in clinching sports deals and in an expansion spree. If indeed the deals are to materialize into something big, it is when cryptos start to surge.

Source – TradingView

CRO has broken above the $0.12 resistance. The token is a buy in August with a target of $0.168.

The post 3 exchange related coins you should consider in August appeared first on CoinJournal.

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YFI price prediction: Yearn Finance could sink by 30%

YFI price rose for five straight days as investors bought the dip in DeFi cryptocurrencies. Yearn Finance rose to $11,350, which was the highest point since May 12th of this year. It has jumped by about 172% from the lowest level this month, bringing its total market cap to over $358 million.

Yearn Finance recovery

Yearn Finance is one of the oldest blockchain projects in the decentralized finance (DeFi) industry. It was established by Andre Cronje, a leading player in the industry. Cronje is also credited for creating platforms like Wonderland and Abracadabra.

The platform simply enables people to earn returns from their cryptocurrencies. At its peak, Yearn had a total value locked (TVL) of over $6 billion, making it one of the biggest platforms.

Recently, however, the platform has lost steam as the number of people using it to grow their wealth has fallen. According to DeFi Llama, Yearn Finance has a TVL of about $660 million. It has been overtaken by other platforms like Lido, Maker, and Compound. Yearn is built on top of Ethereum, Arbitrum, and Fantom blockchains.

Yearn Finance was created to be the Amazon of the blockchain industry. After depositing funds in its platform, it scours the market to identify the best returns in other protocols like Aave, Curve, and Compound. As such, users can optimize their returns in just a few steps. 

The YFI price is rising as investors predict that there will be more demand for DeFi tokens now that the industry has weathered this year’s crisis. Indeed, many DeFi platforms have been left unscathed even as other centralized platforms like Voyager Digital and Celsius filed for bankruptcy.

YFI price prediction

The four-hour chart shows that the Yearn Finance price has been in a strong bullish trend in the past few days. It has risen above the important resistance level at $8,100, which was the highest point on June 24th. Yearn has rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level.

Still, with the coin extremely overbought, there is a likelihood that its price will pull back in the next few trading sessions. If this happens, it will retest the support at $8,109, which is about 30% below the current level.

The post YFI price prediction: Yearn Finance could sink by 30% appeared first on CoinJournal.

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Tron price prediction as Unifi Protocol TVL explodes

Tron price has held steady on Saturday as investors focus on the ongoing crypto recovery and the gains made by UNIFI. The TRX token rose to $0.70, which is about 50% above the lowest level this year. Its market cap has jumped to over $6.4 billion, making it the 17th biggest cryptocurrency in the world.

Unifi Protocol and USDD growth

The TRX price has jumped sharply in the past few weeks as cryptocurrencies rebound. Indeed, most coins like Ethereum, Bitcoin, and XRP have all gained recently, with the total market cap of all digital coins soaring to over $1.1 trillion.

Tron has also risen because of the substantial gains made by USDD, the stablecoin that was launched in May this year. USDD is an overcollateralized algorithmic coin that it hopes will become a leading player in the crypto industry. 

Still, there are concerns about the little growth of the coin. After moving from $0 and seeing strong inflows, its market cap has been stuck at $725 million. This is a sign that demand for the coin may have peaked.

For one, investors are scared about its future since the coin is algorithmic in nature and is backed by risky cryptocurrencies like TRX and Bitcoin.

Tron price has jumped because of its expanding DeFi universe. For example, according to DeFi Llama, the total value locked (TVL) in Tron has jumped to over $5.88 billion, making it the third biggest platform after Ethereum and BNB.

Most of this growth has been driven by Unifi Protocol. The total value locked in Unifi has jumped by 581% in the past 30 days to $1.5 million. This is notable since this is a small platform that is gaining traction. Unifi is a platform that offers several products like uTrade, uStake, bridge, and Unifi Bridge.

Tron price prediction

The four-hour chart shows that the TRX price has been in a strong bullish trend in the past few days. It has remained above the ascending trendline shown in red. At the same time, it has moved slightly above the 25-day moving average while the Relative Strength Index (RSI) has moved slightly below the overbought point at 70. 

Therefore, there is a likelihood that Tron price will continue rising in August as demand for the coin rises. If this happens, the next key resistance level to watch will be at $0.80.

The post Tron price prediction as Unifi Protocol TVL explodes appeared first on CoinJournal.