Schlagwort: blockchain analysis

• Axie Infinity’s token has jumped to the highest point since November.

• Over 3.8 million of AXS tokens will be unlocked on Monday.

• The number of monthly active players has slumped.

Cryptocurrency prices have had a strong start of the year. Bitcoin price surged to above $23,000 during the weekend, the highest point in months. AXS, Axie Infinity’s main token, has risen by over 40% in the past 24 hours, according to Binance. This makes it the second-best-performing cryptocurrency after SNM, which has risen by over 127% in the same period. 

Avoid this AXS rally

There are reasons to avoid this rally. First, like in stocks, it is always important for you to do your due diligence before you invest in an asset. A quick due diligence shows that this rally is not supported by fundamentals. 

First, a closer look at its tokenomics shows that there are about 4.8 million AXS tokens that will be unlocked on Monday. These tokens are valued at over $65 million. This is notable because token unlocks are usually bearish catalysts since they increase the amount of coins in circulation. 32% of total AXS tokens are currently locked.

As such, analysts believe that the team could make an announcement ahead of the release to act as a counter-balance to the move.

Second, Axie Infinity is only valuable if the number of users in the ecosystem are using it. For example, in the stock market, you would only invest in companies that are at least generating revenue. Unfortunately, Axie Infinity’s ecosystem is in trouble, with the number of players in a downward trend.

Data collected by ActivePlayer shows that the number of monthly users has crashed to the lowest level in years. The average number of players in the past 30 days was 432k, lower than its all-time high of over 2.7 million. 

Therefore, the AXS recovery should be taken with a grain of salt since the fundamentals are not supportive of it.

AXS price prediction

AXS/USD chart by TradingView

Axie Infinity’s token formed a double-bottom pattern at $5.92 between November and December. It managed to move above the upper side of the double bottom’s neckline at $10.23. Another bullish thing is that the coin’s daily volume has risen in the past 2 days. Therefore, despite these bullish moves, I believe that AXS token price will likely resume the bearish trend and retest the support at $10.23.

Of course, traders could push an asset much higher for no reason. If this happens, the key resistance level to watch will be at $16.

How to buy Axie Infinity

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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Bitstamp

Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.

Buy AXS with Bitstamp today

The post Axie Infinity’s AXS price is surging: Is this a bull trap? appeared first on CoinJournal.

Bitcoin traded above $68k in November 2021 in what seemed to be a massive squeeze higher. But the enthusiasm quickly faded. 

In a little more than one year, hodlers saw their patience put to the test. The leading cryptocurrency fell back to earth, trading below $20k and triggering massive liquidations in many parts of the cryptocurrency industry. 

Plenty of factors have contributed to the “crypto winter” we’ve seen lately, such as the ongoing dollar’s strength as a result of the Fed’s tightening cycle. Yet, the Fed’s policy and the dollar’s strength might support Bitcoin’s recovery in the months ahead. 

BTC/USD weakness was too extreme

The Federal Reserve, like other major central banks in the world, raised the interest rates to fight inflation. So naturally, the US dollar strengthened as the tightening cycle was one (still is) of the steepest ever. 

The dollar gained across the FX dashboard – and against cryptocurrencies too. However, a simple comparison between the DXY gains and the BTC/USD weakness shows that Bitcoin’s weakness was too extreme. 

BTCUSD chart by TradingView

The daily chart above shows both the DXY and the BTC/USD exchange rate and how the two performed in a little more than 13 months. While the DXY gained about 20%, the BTC/USD exchange rate dropped more than 75% from its 2021 highs. 

Therefore,  the current bounce might be just the start of a stronger move higher for the BTC/USD exchange rate. In other words, the exchange rate has a lot of room to catch up with the dollar index. 

Deteriorating US outlook

While the Federal Reserve will still hike at its upcoming meeting, the US outlook is deteriorating fast. At this pace, one might expect a recession in the year’s second half and, thus a reverse in the Fed’s policy. 

A deteriorating outlook for the world’s largest economy would spell trouble for the US dollar. Given the BTC/USD reaction to a strong DXY, then the exchange rate might rally even more as the dollar index corrects. 

All in all, Bitcoin looks well-positioned to take advantage of the upcoming dollar weakness. The more the DXY falls from its highs, the stronger the BTC/USD rally will be. 

The post 2 reasons to buy Bitcoin at current levels appeared first on CoinJournal.

• SSV Network is a fast-growing provider of liquid staking infrastructure.

• The developers launched a $50 million ecosystem growth fund.

• It has formed a rising broadening wedge and a bearish engulfing pattern.

Liquid staking is doing well as investors wait for the upcoming Ethereum’s Shanghai upgrade. Lido DAO, the biggest liquid staking provider, has grown to become the biggest DeFi provider in the world. And SSV, a leading liquid staking infrastructure provider, has seen its token grow by more than 91% this year.

SSV launches ecosystem fund

SSV Network announced that it was launching a new $50 million ecosystem fund in a bid to grow its ecosystem. For starters, SSV does not offer liquid staking itself. Instead, it partners with staking providers like Lido to offer a distributed validator technology (DLT) solution. By so doing, most developers can focus on what they do best.

SSV Network said that the fund will go to developers working on the DVT technology. It comes a year after the developers launched a $3 million fund. It has distributed some of those funds to companies like Ankr, Stader, and Moonstake. SSV also allocated $10 million in 2022 as we wrote here. In a statement, the co-lead of SSV network said:

”Distributing Ethereum’s security layer has never been more important. The protocol is currently secured by a small group of companies that, when put together, control the entire Blockchain. DVT’s aim is to distribute Ethereum’s security by offering quick and easy access to an open-source public good.”

The major catalyst for the SSV token price will be the upcoming Shanghai upgrade that will let Ethereum holders be able to withdraw their staked coins. Another catalyst for the token will be SSV’s mainnet launch which will happen in the next few months. Its testnet is already up and running. It has 763 operators and 5,307 validators with 168,824 ETH staked. At the current price, the amount is worth over $260 million.

SSV crypto price forecast

SSV chart by TradingView

The 4H chart shows that the SSV Network price has been in a steady bullish trend in the past few months. However, a closer look shows that several bearish patterns have started forming. The token has formed a bearish engulfing pattern, which is usually a warning sign. Further, the token has formed an ascending broadening wedge pattern. In price action analysis, this pattern is also a bearish sign. 

Therefore, the outlook for SSV crypto price is bearish, with the next level to watch will be the lower side of the ascending wedge at $16. The trend invalidation point for this trade will be at this week’s high of $21.67.

How to buy SSV Network token

The post SSV Network price forms 2 extremely bearish patterns appeared first on CoinJournal.

• Nexo price surged after the company settled with the SEC.

• FTX’s new CEO said that the bankrupt exchange could restart.

Digital currencies had a mixed week as investors continued reflecting on the recent rally. They also reacted to important crypto news including the first interview by FTX’s new CEO on the future of the company. This article will provide the prediction of some of the top cryptocurrencies of the week.

FTX Token (FTT)

FTX Token price pared back some of its earlier losses after the current FTX CEO delivered his first interview with the WSJ. In it, he said that his team was working to reboot the collapsed company. He did not offer the timeline of when that will happen. Also, he did not answer the question about the shortfall the company has. 

FTT price has been cruising recently after the company identified over $5 billion in liquid assets that it could sell to make customers whole. It has surged by over 181% from its lowest point in 2022, giving it a market cap of over $762 million. 

As the FTT price rose, it climbed above the important resistance level at $1.95, the highest point on December 9. It seems like it is forming a double-top pattern whose neckline is at $1.7 and the upper part is at $2.81. The price is being supported by the 50-day moving average. Therefore, the outlook for the FTT price is bullish, with the target being at $2.8, which is about 20% above the current level.

How to buy FTTX Token

Bitstamp

Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.

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Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy FTT with Binance today

Nexo (NEXO)

Nexo has been a survivor during the ongoing crypto winter. While its peers like Genesis, Celsius, and BlockFi have filed for bankruptcy, the company has thrived. The Nexo token price jumped this week after the company settled with the SEC and states for failing to register its lending products. It paid $45 million and avoided admitting any crime.

Nexo crypto price jumped to a high of $0.8363, the highest point since January 13. As it rose, the coin moved along the upper side of the Bollinger Bands and the 50-day moving average. It has formed an ascending channel and is nearing its upper side. Therefore, the NEXO token will likely resume the bearish trend during the weekend and retest the support at $0.75.

How to buy NEXO 

Bitfinex

Bitfinex is a bitcoin exchange platform that provides advanced services for digital currency traders and liquidity providers.

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Coingate

CoinGate is a Lithuanian-based fintech company founded in 2014. The payment gateway offers cryptocurrency payment processing services for businesses of any sizes. Permission-based account management, fiat payouts to the bank account and brand new email billing feature are just a few reasons why CoinGate has become a go-to payment processor for many.

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Hooked Protocol (HOOK)

HOOK price surged to the highest point since December as gaming tokens surged. The token has moved above the key resistance point at $1.87, the highest level in January. It has continued moving above the 25-day moving average and the ascending trendline shown in purple. It seems like bulls are now in control, which will see the coin’s price surge to $2.5. This outlook is about 22% above the current level.

How to buy Hooked Protocol

The post Coin price predictions: FTX Token (FTT), NEXO, HOOK appeared first on CoinJournal.

Key Takeaways

• Genesis has over $3 billion in debt and 100,000 creditors
• Gemini, the exchange founded by the Winklevoss twins, has threatened legal action over an unpaid $900 million loan
• The SEC has also filed a suit against Genesis for unregistered securities trading
• Genesis’ parent company is DCG, the same company which runs the Grayscale Bitcoin Trust, the world’s biggest Bitcoin fund
• Contagion continues to ripple through the industry, with investors hoping that the washout is nearly complete
• DCG has stakes in over 200 crypto companies, including Circle, Kraken and the media company CoinDesk, which is now seeking a sale

 

In the move that precisely everybody saw coming, the lending arm of crypto platform Genesis has finally filed for bankruptcy.

It’s another victim on the list for Sam Bankman-Fried, as Genesis becomes the latest firm to succumb to the contagion triggered by the FTX collapse. But crypto investors are now concerned about the subsequent damage that could ripple out from this filing, as Genesis’ parent company is Digital Currency Group (DCG) – the same company which owns the Grayscale Bitcoin Trust, the biggest Bitcoin fund in the world.

Let’s analyse what it all means.

Enormous bankruptcy filing

Looking at bankruptcy documents, Genesis listed over 100,000 creditors. It reportedly has debt greater than $3 billion.

The filing had long been mooted. It suspended withdrawals on November 16^th, in the aftermath of the stunning FTX collapse. However, it affirmed that it had “no plans” to file for bankruptcy and would seek to resolve the situation “consensually”.

It then scrambled to raise funds to stave off the inevitable. It reportedly sought investment from Binance, which declined due to a conflict of interests. It also approached several private equity firms but has ultimately filed for Chapter 11 bankruptcy protection.

What happens Gemini?

The filing comes in the same week that the SEC filed a suit against Genesis and its former partner, Gemini, over unregistered dealings with securities.

Gemini is a crypto exchange founded by the Winklevoss twins and offered a similar “Earn” product to a lot of these crypto lenders. The problem was, it was in partnership with Genesis. Under the terms of Earn, customers sent crypto to Gemini in the hopes of earning a yield. Gemini, in order to capture yield to pay to these customers, transferred the deposits to Genesis, who invested those deposits.

The Winklevoss twins say that Gemini owes it $900 million through the Earn product. Withdrawals from the Gemini Earn product are currently suspended.  

Cameron Winklevoss responded to news of the Genesis bankruptcy filing on Twitter, threatening legal action unless “a fair offer to creditors” was made by DCG and CEO Barry Silbert. He has accused Silbert of “fraud” and demanded he step down as CEO.

6/ Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.

— Cameron Winklevoss (@cameron) January 20, 2023

DCG in the thick of it

For the wider market, it is the involvement of DCG that is the real concern.

The digital assets company has a stake in over 200 crypto companies, including the crypto exchange Kraken and stablecoin issuer Circle. Most high-profile is the fact is the parent of the Grayscale Bitcoin Trust, which is the largest Bitcoin fund in the world. It has come under increasing scrutiny over the safety of its reserves following the FTX collapse and the turmoil facing DCG.

The fund has been trading at a steep discount to its net asset value, with the divergence spiking to 50% post-FTX. I wrote an analysis of the trend two weeks ago after it bounced back, at that point trading at a 37% discount.  The discount is currently 40%.

DCG also own CoinDesk, the crypto news publication. It is currently exploring a potential sale. Ironically, it was the news site that initially published the scoop on FTX, which triggered the hardship for DCG.

“Over the last few months, we have received numerous inbound indications of interest in CoinDesk”, CEO Kevin Worth said this week.

As for Silbert, the embattled CEO wrote on Twitter last week that “it has been challenging to have my integrity and good intentions questioned after spending a decade pouring everything into this company (DCG and the space with an unrelenting focus on doing things the right way”.

DCG responded to the chaos by cutting its dividend, telling shareholders it is focusing on strnegthening its own balance sheet. 

“In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity. As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice,” DCG announced on Tuesday. 

What does this mean for crypto?

As for the market at large, this is a continuation of the disaster that was the FTX collapse. Contagion was always inevitable, given an $8 billion hole on FTX’s balance sheet. In truth, it is somewhat surprising how well the crypto industry has held up through this.

Bitcoin is up 25% on the year, ETH is up 27%, with both trading at around the same level they were prior to the insolvency. The macro climate is looking a little more optimistic than a couple of months ago, as softer inflation readings have led investors to bet that central banks will pivot off their high interest policy sooner than previously anticipated.

Going back to the thick of the crisis, Bitcoin wobbled but held firm above $15,000.

Perhaps the biggest fallout here is the continued hammering of crypto’s reputation.  The pullback of institutional adoption will likely be severe, the mending process ahead long.

The world economy is teetering on the brink of a recession, as the burden of high interest rates continues to suck liquidity out of markets. In addition to this, inflation remains elevated with a cost-of-living crisis worldwide, despite the picture looking more positive over the last couple of months. Then there is the small matter of a war in Europe.

These are massive challenges for markets and suppressing prices across the board. Uncertainty is as high as it has been since the Great Financial Crash of 2008. And yet, in addition to these huge headwinds, crypto keeps hurting itself, adding to the mess.

Investors will hope that the washout from the scandals of 2022 will throw up no more surprises. With how dire the macro situation is, it doesn’t need any more self-inflicted wounds.

The post Genesis files for bankruptcy, what does it mean for crypto? appeared first on CoinJournal.