Tether strongly criticized a Deutsche Bank report that raised concerns about the stability of stablecoins, including Tether’s dollar-pegged token, predicting a potential crisis similar to the 2022 collapse of Terrausd, which erased billions from the market. Deutsche Bank analysts, citing a study of 334 historical currency pegs, suggested that most stablecoins will face significant challenges […]
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DOJ Counters Motion to Dismiss Charges Against Tornado Cash Developer
In a notable development, the U.S. Department of Justice (DOJ) has countered a motion to dismiss the criminal charges against Roman Semenov, a developer of the cryptocurrency mixing service Tornado Cash, highlighting the alleged strength of its case in a recent court submission. Prosecutors Assert Strong Evidence Is Coming in Tornado Cash Laundering Case The […]
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New York Community Bancorp Counters Moody’s Junk Status, Asserts Strong Deposits
Just one week following a dramatic plunge in New York Community Bancorp’s shares, which tumbled 40% in a single day at January’s close, Moody’s Investors Service downgraded the bank’s credit rating to junk status. The bank’s troubles have ignited concerns over a potential banking contagion that continues to unsettle regional banks. On Wednesday, the recently […]
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Floki Inu (FLOKI) Claps Back: Counters Bitget’s Claim Of Breaching 7-Day Listing Deadline
Recently, the cryptocurrency community has witnessed a heated dispute between the protocol Floki Inu (FLOKI) and the crypto exchange Bitget.
The controversy arose following Bitget’s listing of TokenFi (TOKEN) and subsequent accusations of market manipulation, unauthorized listing, and insufficient solvency.
Bitget Faces Allegations Of Market Manipulation
On October 27, 2023, Bitget announced the listing of TokenFi (TOKEN) in the Innovation Zone of its Spot market. Shortly after the trading service for TokenFi commenced, significant price fluctuations were observed, prompting suspicions of market manipulation.
Concerns were further raised when it was discovered that TokenFi’s project team had contributed less than ,000 worth of tokens to the liquidity pool of decentralized exchanges (DEXes), suggesting potential manipulation of initial liquidity.
Moreover, an investigation of the TokenFi project uncovered additional issues, including an “opaque” token economy and an unclear vesting schedule.
In light of these findings and to safeguard their users, Bitget decided to delist TokenFi (TOKEN) and initiated a buyback plan for users who held the token on its platform.
Floki Inu, responded strongly to the exchange’s actions, alleging that Bitget had violated their agreement not to list TOKEN until seven days after its launch.
The meme coin protocol claimed to have had conversations with “several Tier 1 exchanges” and respected parties in the cryptocurrency industry. While these exchanges had expressed interest in listing TOKEN earlier, they agreed to honor Floki Inu’s request to wait for the stipulated period.
However, Bitget, which, according to Floki Inu, was “the smallest exchange” among those involved, allegedly announced the listing of a fake version of the TOKEN token just 12 minutes before the official launch on the blockchain.
Floki Inu further asserted that Bitget had engaged in “deceptive trading practices,” manipulating TOKEN’s volume without evidence of holding the actual tokens.
The protocol alleges that Bitget’s initial announcement had even stated that withdrawals would open 24 hours after trading began, potentially indicating an attempt to manipulate the token’s price. However, the market response did not align with Bitget’s expectations, resulting in a significant financial loss.
The situation escalated when users began reporting difficulties in withdrawing TOKEN from Bitget’s platform, with some users allegedly being banned for complaints. Floki Inu claimed to have contacted Bitget to address the issue, but the response was unsatisfactory, including a request to report liquidity issues to Bitget’s support team.
Floki Inu Alleges Bad Faith
Following subsequent discussions between Floki Inu and Bitget, it was revealed that Bitget required up to 1 billion TokenFi tokens to meet user withdrawal demands and cover their financial deficit. According to Floki’s response, this amounted to approximately 10% of TokenFi’s total supply, equivalent to around million at the time of Bidget’s statement.
Furthermore, the protocol accused Bitget of acting in “bad faith” and attempting to resolve the situation through an over-the-counter (OTC) deal at a deeply discounted rate.
The proposed discount of 90% from the market price raised concerns, as it was argued that Bitget should bear the responsibility for its actions and the resulting financial shortfall.
In response to Bitget’s announcement of delisting TokenFi and accusations of market manipulation, Floki Inu disputed the claims made by Bitget. They asserted that Bitget had listed the token against their explicit instructions and falsely accused the Floki Inu team of price manipulation.
Floki also challenged Bitget to provide verifiable evidence of their TOKEN and FLOKI holdings, expressing concerns about Bitget’s overall solvency and risk management practices.
Ultimately, the protocol cautioned its users against trading or holding FLOKI on Bitget, citing the “troubling patterns” witnessed during the TokenFi incident. As the situation develops, the cryptocurrency community awaits further clarification and resolution regarding the allegations and the impact on affected users.
Given these developments, FLOKI has experienced a retracement of over 9% in the past 24 hours and is currently trading at .00003250. Nonetheless, the token has seen an impressive 85% increase over the past fourteen days.
Featured image from Shutterstock, chart from TradingView.com
Binance Boss Counters ‘FUD’ Amidst Legal Challenges, Touts Company’s Resilience and Low Turnover
Binance has faced a series of negative news reports in recent weeks. However, the cryptocurrency exchange’s leader, Changpeng Zhao, known as CZ, used social media to assure the community that the reports were just fear, uncertainty, and doubt (FUD). Despite the departure of some top executives, CZ said Binance likely has “the lowest founding team turnover of any tech startup of our size and age, in the world.”
Binance’s CZ Refutes Negative Buzz
Binance CEO Changpeng Zhao, known as CZ, addressed concerns raised by recent “FUD” headlines, assuring the community that everything is under control. Binance faces legal challenges from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Moreover, several top executives have reportedly departed the company in recent weeks.
“Saw some debates in the community,” CZ said on Thursday. “When you do the right thing, and there is FUD, you don’t have to do anything. The community defends you. Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, [the] closing of fiat channels, product wind downs, employee turnover, exit markets, etc.”
The Binance CEO added:
Guess what we don’t have? No liquidity issues. All withdrawals (and deposits) are properly handled. All customer funds are SAFU, and 100% reserved. There are also: won court cases, bank run handled and then record deposits, new fiat channels, smooth sunsetting of old products and launching of new products, new hires, [and] new markets.
CZ also noted his belief that Binance likely boasts “the lowest founding team turnover of any tech startup of our size and age, in the world.” The Binance chief executive stated that the firm will continue to “build” while dealing with the FUD. He also shared a Mark Twain quote and said, “Whenever you find yourself on the side of the majority, it is time to pause and reflect.”
Binance and BNB proponents rallied around and appreciated CZ’s statement, while others remained skeptical. One individual claimed CZ’s tech startup turnover claim was “bold” and “inaccurate.”
What do you think about CZ’s statements regarding the negative buzz surrounding Binance? Share your thoughts and opinions about this subject in the comments section below.
From $20K to $3K and Back: How Bitcoin Price Counters Sentiment in the Crypto Market
During Bitcoin’s widely publicized bull run of 2017 which sucked up retail investors into its massively inflated bubble, the price of the first ever crypto reached a peak of ,000. Now that the bubble has popped and the market has entered a state of anger and despair, more people than ever are writing obituaries for Bitcoin and calling for extreme lows – the exact opposite of the sentiment witnessed at its all-time high.
While most traders follow technical analysis or look to fundamentals to determine which way Bitcoin price may move next, trading crypto counter to the market’s sentiment may be the best indicator yet for profitable trades.
Crypto Market Sentiment Can Be a Contrarian Indicator
Billionaire investor and finance magnate Warren Buffett has an often cited quote, “Be fearful when others are greedy and be greedy when others are fearful.” The quote is the perfect example of how contrarian trading works, especially when it comes to speculative assets that easily set the stage for bubble-like market cycles.
Sentiment just before Bitcoin’s all-time high was at the peak of the hype and irrational exuberance phase of a market bubble cycle. It wasn’t uncommon to see comments in Reddit’s r/BitcoinMarkets’ daily discussion thread read “no way it doesn’t break ,000 soon. Very soon.”
Others were calling for astronomical figures such as 0,000, and some simply talked about how the current bull trend couldn’t possibly come to an end. “Every time we’ve consolidated right below/around ath the past year it’s broken up….just saying the trend is still very much up,” one Redditor adorned with a “2013 Veteran flair” added.
Related Reading | Strong Fundamentals: Bitcoin Daily Transactions Return to Bull Run Levels
Another self-proclaimed Bitcoin maximalist even suggested those turning bearish where blind to “what is right in front of them” for entering what are now incredibly profitable short positions.
Even industry figures such as Fundstrat’s Tom Lee had called for Bitcoin to reach K, and the eccentric John McAfee even offered to eat his own penis if Bitcoin didn’t reach million per BTC by the year 2020 – a prediction he then called “conservative” yet now seems impossible.
Crypto Bear Market Bottom is Hard to Spot During Depression and Anger Phase
Predicting the bottom price of an asset is extremely difficult, and its only further complicated by the emotional state of the market’s participants.
Following Bitcoin’s hype phase, was denial. K was repeatedly defended and sentiment swayed back and forth between each Bitcoin price peak and trough. Until support at K broke and even permabulls finally turned bearish.
Related Reading | Crypto Analyst Expects Strong Bitcoin Bounce, Monthly MACD Signals Bottom
Sentiment has only suffered further since then, as the market clearly entered the depression and anger stage – the complete opposite of the sentiment found in Reddit comments around the December 2017 top.
“Does look like it’s running out of steam and about ready to fall,” one Redditor commented. “Short it. Itz about to double top – or whatever the TA term is for the second peak peaking short and plumitting beyond the first peak’s inception slope to inverted Middle Earth,” exaggerated another.
Extreme Bitcoin price calls claiming ,000 is around the corner, or that K would break in the same manner K did, were great examples of how trading contrary to sentiment can work in one’s favor.
Following these dramatic and depression-driven calls for the death of Bitcoin, came a nearly 10% rally from Bitcoin’s local low of 50, and could spark a reversal if overhead resistance can continue to be taken out.
From here, where Bitcoin price goes is anyone’s guess. But investors should keep in mind Warren Buffet’s famous quote and watch closely for opportunities to trade counter to market sentiment.
Images from Shutterstock
The post From K to K and Back: How Bitcoin Price Counters Sentiment in the Crypto Market appeared first on NewsBTC.
Ryan Sean Adams Counters Ethereum FUD With Success of Maker
As Ethereum faces intense pressure from bearish market forces, a number of distinctive faces within the cryptocurrency community have been making comments to counter the overall FUD (fear, uncertainty, doubt) sentiment seen in September. Ryan Sean Adams, the founder of crypto asset investment company MythosCapital, took to Twitter to remind its followers that Ethereum is being used for real-life applications that are causing real change in the lives of people.
Decentralized Stablecoin Platform Maker Issued 4m-Worth Loans In Beta Version
Ethereum has found a boost on Thursday trading, with gains of approximately 20% changing the course of what could be a tragic week for the cryptocurrency. From a 0 low, the price is now consistently moving upwards as it claims the 0 handle. ETH is still far from recovering the area it stood at earlier this month as the 0 level remains a mirage for now.
Many factors may be behind the recent surge. The cryptocurrency market as a whole is trading on a positive note as the bearish pressure wore off. The biggest winners in the top 10 coins are Ethereum, EOS, and Monero, all of which with gains above 10%. ETH lost its market position during the summer as a number of ICO projects dumped the cryptocurrency into the market.
Ryan Sean Adams, however, is now countering the prevalent sentiment with a practical example of how Ethereum is being used in the real economy. The investor said a blockchain startup which “launched a bank in December 2017” has issued 3270 loans worth 4 million at an interest rate of 0.5% in its beta version.
A startup launched a bank in December 2017
Since then it's issued 3270 loans worth 4m (m per mo) at an interest rate of .5%
Oh, and this is its beta product
The product is Maker, but you should ignore it because Ethereum isn't used for anything
— Ryan Sean Adams (@RyanSAdams) September 13, 2018
He was referring to Maker, a smart contract platform on Ethereum that backs and stabilizes the value of Dai through a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback mechanisms, and appropriately incentivized external actors. Ethereum-asset holders can generate stablecoin Dai on the platform which can be used as any other cryptocurrency.
Ethereum co-founder Vitalik Buterin has recently said that the next growth phase for cryptocurrencies is based on the adoption of real applications by real people.
Ethereum co-founder Joseph Lubin said in an interview that he expects “pretty tremendous growth” thanks to the 2017 boom that brought a lot of talent and entrepreneurs to the blockchain space which has led to a huge amount of activity in many different niches of the ecosystem. “Everything that is an asset right now is probably going to have representation as a crypto asset at some point in the future, so there’s so much growth ahead”, he added.
Lubin, who is the CEO of ConsenSys, has recently said that the cryptocurrency market is likely to experience another bubble soon as “layer 2 technologies” will enable “exchanges and games to have hundreds and thousands of transactions per second”.
Image from Shutterstock
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