Schlagwort: crypto business

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Crypto exchange Huobi Global seeking license to expand in Hong Kong

  • The Chinese special administrative region is considering new licensing and regulations.
  • Huobi wants to expand its businesses in Hong Kong to include retail investors.
  • Huobi also plans to open a new exchange named Huobi Hong Kong.

Huobi Global is planning to get a license in Hong Kong to allow it to accommodate retail customers as the Chinese special administrative region considers introducing new licensing and regulatory measures.

The move comes weeks after the cryptocurrency exchange recently decided to cut its workforce by 20% as covered in our recent crypto news. And if it was to be accorded the license to expand its business in Hong Kong, the exchange will increase its staff in Hong Kong from 50 to about 200 people.

New regulatory framework in Hong Kong

Hong Kong has introduced a new regulatory framework that requires crypto exchanges to register with the Hong Kong Securities and Futures Commission (SFC) to expand their services in the city. The SFC recently opened the new licensing proposals for public comment and plans for the new laws to go into effect in June.

As a result, financial services providers including crypto exchanges like Huobi lining up to get registered under the new laws.

Besides seeking a license under the new law, Huobi also plans to open a new crypto exchange called Huobi Hong Kong to concentrate on high-net-worth retail investors and institutions. Justin Sun, the founder of Huobi, said in an interview with Nikkei Asia, that the exchange is also planning to increase its staff in Hong Kong from its current number of 50 to 200 by the end of the year.

Sun says that the friendlier stance on crypto in Hong Kong and the new regulation allowing retail investors to participate in crypto as the main motivation for the planned expansion.

Huobi also recently announced it was launching a Visa-backed crypto-to-fiat debit card for Huobi customers in the European Economic Area. 

The post Crypto exchange Huobi Global seeking license to expand in Hong Kong appeared first on CoinJournal.

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Bitcoin vs. Nasdaq – An Interesting Correlation

  • Bitcoin and the Nasdaq 100 index have a positive correlation
  • The two markets’ performances offer a way to trade Bitcoin
  • Volatility is key in interpreting the positive correlation

Bitcoin and the cryptocurrency market gained in popularity in a relatively short period. Since its birth, Bitcoin has been adopted by institutional investors, making its price action closer to traditional markets.

As such, it positively correlates with the stock market, particularly with the Nasdaq 100 index. As seen below, buying or selling Bitcoin or buying or selling the Nasdaq 100 index was basically the same trade in the last two years.

However, such charts are misleading. While correct, the chart above ignores the increased volatility in the cryptocurrency market, one that requires special money management skills from crypto retail traders.

The positive correlation suggests more upside for Bitcoin

An interesting perspective appears if we take into perspective the two markets’ volatility. The chart below shows the last two years’ performance for both – Bitcoin delivered +242.42% while the Nasdaq 100 +41.89%.

BTCUSD chart by TradingView

Both performances are impressive, especially if we consider the 2022 bear market. Bitcoin topped when the Nasdaq 100 index topped, and then the market collapsed as investors fled the tech sector and the cryptocurrency market.

Judging by the positive correlation, one thing is sure – the closer the two markets’ performance is, the more appealing it is to buy Bitcoin. Since the end of 2020, the gap between the two performances has never been so narrow as in late 2022.

In other words, the rally seen in the first trading weeks of 2023 should not surprise anyone, given the nature of this correlation. As the tech sector bounced from the lows, so did Bitcoin. Only that Bitcoin’s rally outperformed the Nasdaq 100 index’s rally because of the historically higher volatility.

To sum up, such a chart is useful when trading Bitcoin. The closer the two performances are, the bigger the case for buying Bitcoin.

On the contrary, as Bitcoin outperforms Nasdaq, the bigger the case for selling Bitcoin.

The post Bitcoin vs. Nasdaq – An Interesting Correlation appeared first on CoinJournal.

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Alchemy Pay (ACH) risk/reward seems unfavorable for now

  • Alchemy Pay’s ACH price has surged by over 480% from its December lows.

  • The company integrated Google Pay for its on-ramp service.

Alchemy Pay (ACH/USD) price has continued to defy odds as it becomes one of the top-performing cryptocurrencies. ACH has soared to a high of $0.044, the highest level since April 2022. It has been one of the best tokens, having soared by over ~480% from its lowest level in December.

Alchemy Pay price is soaring mostly because of the bullish momentum and the fact that many traders have embraced fear of missing out (FOMO). This FOMO gained strength after Visa, the biggest financial services company in the world, listed it as a payment provider. 

Visa is not the only company to partner with Alchemy Pay. On Monday, the firm said that it had added Google Pay for on-ramp services. This means that users will be able to buy cryptocurrencies in its platform using Google Pay.

At the same time, the strong performance of cryptocurrencies like Bitcoin and Ethereum has led to inflows into the industry. Companies like Coinbase and Binance have recorded billions in inflows this year even as regulatory concerns remain.

Therefore, with the number of crypto holders rising, the consensus is that Alchemy Pay will benefit as these people start or continue paying with them. Also, it will benefit as the volume of its on-ramp services makes a strong comeback.

Alchemy Pay price forecast

ACH chart by TradingView

Turning to the daily chart, we see that the ACH price has been in a strong bullish trend since December. It has defied gravity for weeks. As it rose, it managed to move above several resistance levels, with the most recent being the psychological point at $0.30. It also jumped above the resistance point at $0.2254, the highest point on July 19. 

Alchemy Pay has jumped above all moving averages while oscillators like the Relative Strength Index (RSI) have moved to the overbought level. I suspect that the coin will likely pull back and retest the support at $0.2254 as profit-taking sets in. This price is about 44% below the current level. In other words, the risk/reward seems unfavourable.

If this happens, ACH price will likely resume the bullish trend and rise to the key resistance point at $0.50. 

How to buy Alchemy Pay

Coinbase

Coinbase is a global cryptocurrency exchange. Its platform is well designed for beginner investors and it offers a wide range of coins, as it has over 100 to choose from. Coinbase has high level security built into the platform, a range of diverse features to use and it offers its users options for storing their crypto, such as being able to store coins on the Coinbase exchange.

Buy ACH with Coinbase 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 ACH with Swapzone today

The post Alchemy Pay (ACH) risk/reward seems unfavorable for now appeared first on CoinJournal.

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Crypto hedge fund Galois shuts down following exposure to FTX

  • Galois has halted all trading after losing $40 million to FTX.

  • The hedge fund has become the latest entity to be negatively affected by FTX’s collapse. 

  • The company said it would take a few years to recover some of its funds.

Galois loses $40 million to FTX

Galois, one of the leading crypto-focused quantitative funds in the world, has shut down operations. This latest cryptocurrency news comes after the company revealed that it lost a sizeable portion of its capital in the collapse of FTX.

The hedge fund’s co-founder Kevin Zhou told the Financial Times that they lost $40 million following the collapse of the FTX cryptocurrency exchange. He said;

“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally. Once again, I’m terribly sorry about the current situation we find ourselves in.”

In November, the company revealed that its $40 million was stuck on the FTX platform. Back then, Zhou told investors that it would take a few years to recover some percentage of the funds. At the time, he said;

“We will work tirelessly to maximize our chances of recovering stuck capital by any means.”

FTX’s collapse continues to take more companies down

According to the Financial Times, Galois has sold its bankruptcy claims for 16 cents on the dollar. Zhou stated that

“This entire tragic saga starting from the luna collapse to the 3AC [Three Arrows Capital] credit crisis to the FTX/Alameda failure, has certainly set the crypto space back significantly. However, I, even now, remain hopeful for crypto’s long-term future.”

Since FTX’s collapse, a few companies have filed for bankruptcy. Earlier this year, the lending arm of crypto platform Genesis filed for bankruptcy, with over $3 billion in debt. 

BlockFi is another company that filed for bankruptcy following its massive exposure to FTX. 

The post Crypto hedge fund Galois shuts down following exposure to FTX appeared first on CoinJournal.

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Helium price rising after confirmation of migration to Solana in March

  • The price of Helium has been rising since February 17 after the company confirmed it was set to migrate to Solana.
  • Helium Network will also deploy oracles after migrating to Solana.
  • At press time, HNT was trading at $2.87, up 1.45%.

Helium price has been rising for the past two days straight after Helium Network confirmed through a blog on its website that it will be migrating to the Solana blockchain next month. Despite the slight pullback today, the HNT token has gained about 14% since the news broke out.

According to helium’s post, the protocol has set March 27, 2023, as the date for the migration to Solana. The protocol is seeking to increase reliability and scalability by moving to Solana, which is increasingly becoming a darling for blockchain protocols. The move to Solana was approved after the community passed the HIP-70 proposal on September 22 last year.

Helium says that a working group of community volunteers is being formed to oversee the entire migration process.

24-hour blackout as Helium migrates

 Helium says that there will be a 24-hour transition period, in which the Helium blockchain will be halted. Data transfer and proof-of-coverage activities will however remain unaffected during that time.

The Helium team stated:

“This upgrade will encompass all wallets, Hotspots, and Helium Network state, and will take place over a 24-hour transition period commencing at approximately 1500 UTC / 10:00 AM ET… Note that any rewards generated by Proof-of-Coverage activity in the prior 24 hours will be available to claim in your Helium Wallet after the transition period. Oracles will update claimable balances, and Hotspot Owners will be able to use the new claim function.”

According to the Helium team, after the 24-hour halt, validators will stop producing new blocks. A final snapshot of the blockchain will be taken after all the accounts and tokens migrate to the Solana blockchain. Hotspots will then be minted as non-fungible tokens (NFTs).

HNT and MOBILE token holders will not have to do anything to participate in the migration. A majority of hotspot owners will also not be required to take any action during the migration.

The post Helium price rising after confirmation of migration to Solana in March appeared first on CoinJournal.