Schlagwort: crypto business

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Is it safe to buy the Voyager Digital token (VGX) rally?

  • Voyager Digital token jumped to February highs. 

  • The bankruptcy judge accepted that the company could be acquired by Binance.

  • These gains could be temporary since there are other hurdles to the deal.

The Voyager Digital (VGX) price was the best-performing cryptocurrency on Wednesday after a legal victory by Binance, the biggest exchange in the world. VGX price soared to a high of $0.6150, the highest level since February 16. It has jumped by more than 86% from the lowest point this year.

Voyager Digital can be acquired

The main reason why the VGX token is soaring is the decision by a US court to allow the acquisition of the company by Binance US. The judge who is overseeing the bankruptcy proceedings said that Binance can go ahead with the $1 billion buyout. He overruled objections by the Securities and Exchange Commission (SEC). 

However, there is still a long way to go before the deal is completed since it will need to go other regulatory hurdles. The judge noted that most creditors were in favor of the deal. Voyager was in line to be acquired by FTX, a company that went bankrupt in November last year.

Still, there are many hurdles, including the fact that the SEC is still investigating Binance. In a report by the WSJ, Binance came up with a plan to mask its US operations. Binance US, worked in close collaboration with the main Binance. In a statement, Binance conceded that the two companies worked closely in their early days of the company.

Binance is not regulated in the US and has no headquarters. On the other hand, Binance US is regulated by the country and has thousands of American regulators.

The other hurdle for the Voyager acquisition deal is that FTX is claiming $445 million in a loan it made to Voyager Digital. This loan was made as the company attempted to emerge from bankruptcy. Another hurdle is that the SEC could accuse Voyager of offering VGX as a security without following due process.

VGX price prediction

VGX chart by TradingView

The VGX crypto price continued rising as investors focused on Voyager Digital’s acquisition. As it rose, the token rose above the key resistance level at $0.5592, the highest level on February 22. It has jumped above all moving averages while the MACD has moved above the neutral point. 

Therefore, Voyager will likely pull back in sync with other cryptocurrencies as the focus remains the Federal Reserve. Investors will also focus on the hindrance to the deal. If this happens, Voyager will likely retest the key support at $0.50.

How to buy Voyager Digital

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 VGX with Binance today

Swapzone

Swapzone is a crypto exchange aggregator that operates as a gateway between the cryptocurrency community and exchange services. Swapzone aims to provide a convenient interface, safe user flow, and crystal-clear data for users to find the best exchange rates among the whole cryptocurrency market.

Buy VGX with Swapzone today

The post Is it safe to buy the Voyager Digital token (VGX) rally? appeared first on CoinJournal.

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Is it safe to buy Bitcoin after Silvergate Capital’s stock price crash?

  • Bitcoin price crashed last Friday as Silvergate Capital delayed filling a 10-K report 
  • No bounce followed 
  • For bulls to have a case, Bitcoin needs to hold support and break two resistance levels

Last Friday, Bitcoin price lost $1,400 on news that it delayed filling a 10-K report. The stock crashed over 30% and triggered massive selling in the cryptocurrency market.

Inevitably, Bitcoin price was hit, as doubts over Silvergate’s future scared investors in the cryptocurrency market. Investors, however, are used to Bitcoin’s volatility. For example, the price is down -47.5% in the last 12 months and up 32.74% YTD.

It means that the reaction to Silvergate’s announcement might be just part of the coin’s volatility. But the worrying fact is that the price did not bounce back as bulls would have wanted.

Curiously, Bitcoin led the stock market losses. It used to be the other way around – Bitcoin following the S&P 500 index’s price action, but now the roles changed.

While Bitcoin price dropped last Friday, the stock market continued its recent rally. The two diverged.

Only yesterday, stocks crashed too, as the Federal Reserve’s Chair, Jerome Powell, testified in front of the Senate on the monetary policy. He said that recent data favors a higher terminal rate; thus, more rate hikes are in the pipeline. As a result, stocks crashed, and the US dollar rallied.

When should bulls start buying Bitcoin?

Bitcoin may have rallied in 2023, but the recent price action is bearish. The market dropped after a contracting triangle acted as a reversal pattern in late February.

Next, a consolidation started, which resembles a bearish flag pattern. Silvergate’s stock price crash completed the pattern, as Bitcoin price reacted.

Will the neckline of an inverse head and shoulders pattern offer support?

BTCUSD chart by TradingView

If it does, then Bitcoin is still not out of the woods, as momentarily, bears are in control. For a bullish setup, Bitcoin price needs to do two things.

First, to break above the bearish trendline. But only that is not enough.

Second, it must climb above the previous lower high in the $24k area. Can it do that?

The only way to do so is for risk sentiment in financial markets to turn on. If that is the case, all eyes should be on the stock market as a bounce there would support Bitcoin’s rally.

On the flip side, a drop below the head of the inversed head and shoulders pattern would open the gates for further losses.

The post Is it safe to buy Bitcoin after Silvergate Capital’s stock price crash? appeared first on CoinJournal.

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Web3 startup nealthy raises $1.3M in pre-seed backed by top industry investors

  • The Web3 startup offers users access to diversified investment opportunities.
  • nealthy says it will use the funds to boost the NFT and crypto investing space.
  • neathy is incorporated in Dubai, an increasingly crypto-friendly jurisdiction.

nealthy, an Ethereum-based Web3 startup that provides diversified exposure to NFTs and cryptocurrency investing, secured $1.3 million in a pre-seed funding round backed by several top investors across the investment space.

The funding round closed in November 2022, the startup said in a press release sent to CoinJournal on Tuesday. Per the announcement, prominent Web3 investors that backed it include celebrity crypto investor ‘DonGeraldo.’  

The Dubai incorporated platform says it will use the capital injection to grow its team, hire new talent and seek greater adoption.

nealthy eyes further growth in Web3 investing

The interest in Web3 continues to gather pace and nealthy is looking to tap into this ecosystem by removing the barriers to the market. The startup achieves this via index tokens, which are investment assets that replicate traditional exchange-traded funds (ETFs).

Investors can leverage the index tokens to invest across the Web3 space – easily and quickly – as the product allows for on-chain storage of digital assets, with the portfolio seamlessly diversified in the event of sudden market shifts.

An example of an index token is nealthy’s $NFTS, which like other offerings, has value that is pegged nearly 1:1 to given blue-chip NFTs.

Ludwig Schroedl, the CEO of nealthy noted in a statement that interest in diversification within the crypto sector is rising, especially with the massive growth witnessed in the NFT trading markets.

“That’s even more true for first-time investors,” he said, adding “A blue-chip index token, like $NFTS, can provide superior investment opportunities at a reduced level of risk. And if we can do it with NFTs, we can do it with every asset on the blockchain.” 

The startup is looking to expand its reach with the release of multiple products ahead of its alpha launch.

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Crypto turns red as Fed Chair Jerome Powell hints at higher rates

  • Crypto and stocks reacted negatively to comments about US inflation by Fed Chair Jerome Powell.
  • Bitcoin traded to lows of $22,120 while the S&P 500 fell 1%.
  • Investors are now likely to turn their attention to the next Fed meeting in March.

Cryptocurrencies fell early Tuesday, with Bitcoin trading towards support around $22,100 on broader market reaction to comments from Federal Reserve Chair Jerome Powell.

Coin360 crypto map showing price dump after Powell’s remarks. Source: Coin360

The reaction also saw US stocks slip after Monday’s gains, with investors appearing to have been spooked by Powell’s remarks on interest rates.

Crypto, stocks fall on Fed Chair remarks

Powell was on Tuesday making his first of two appearances before US Congress – first at the Senate Banking Committee and on the second day, at the House Financial Services Committee. The central bank’s monetary policy, particularly on inflation, is a key element of the Fed Chair’s prepared testimony.

Notably, Powell told lawmakers that it is possible the Fed will look to raise interest rates further given recent economic data that came in hotter than expected. According to the Fed, these sets of economic metrics suggest interest rates could still go up. This, he noted, will be warranted if outlook indicated there’s need for faster tightening.

Following the news, crypto, stocks and bonds reacted lower as the dollar index rose. Bitcoin touched 24-hour lows of $22,120, while Ethereum fell to support near $1,540. Across the stock market, the S&P 500 dropped by 1%, while the Dow Jones Industrial Average and the Nasdaq Composite shed 0.6% and 0.9% respectively.

Economist Mohamed El-Erian pointed out the market’s reaction and what Powell’s testimony projects.

While markets might see a swift bounce from the losses, investors are likely to remain jittery ahead of the Fed’s next policy announcement expected on 22 March, 2023. 

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Binance’s latest PoR shows it has over $63 billion across 24 assets

  • Binance has added 11 additional tokens to its proof-of-reserves (PoR) report.

  • The world’s leading cryptocurrency exchange said it has over $63 billion across 24 assets.

  • The results have not been audited by any external accounting firm at the moment.

Binance holds $63 billion in 24 assets

Binance, the world’s leading cryptocurrency exchange, published its latest PoR report on Tuesday, March 7th. 

According to the company’s announcement, it has added 11 tokens to its PoR report. The tokens include MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE. 

This latest cryptocurrency news means that Binance now holds over $63 billion across 24 assets in its proof of reserves system. Bitcoin, Ether, and Tether (USDT) are the top three assets on the exchange, accounting for $12.7 billion, $7.1 billion, and $16.3 billion in net customer balance.

Binance wrote that;

“With the addition of 11 assets to its PoR system, Binance, the world’s largest exchange by trading volume, now shows over 63B USD in reserves.”

Crypto exchanges have adopted PoR to promote transparency

Cryptocurrency exchanges, including Binance, OKX, and Bybit, adopted the PoR system following FTX’s collapse late last year. The PoR system is designed to promote greater transparency amongst cryptocurrency exchanges and assures users that their funds are safe. 

Following Binance’s PoR report on January 26, 2023, the cryptocurrency exchange implemented zk-SNARKs, zero-knowledge protocols that increase the privacy and security of user data during the verification process. 

According to Binance, its PoR leverages Merkle trees to add up on-chain data so that users can rest easy knowing that their assets are held for them 1:1 in our custody. 

In December last year, South African auditor Mazars removed Binance’s PoR audit from its website. The auditing firm also ceased providing services to Binance and other cryptocurrency exchanges. 

Binance remains the world’s largest cryptocurrency exchange. The crypto exchange accounts for over $12 billion in daily trading volume, higher than the $1.1 billion recorded by its closest rival, Coinbase.

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