A startup has launched a leveraged token and a decentralized stablecoin on Rootstock (RIF), a smart contract solution based on Bitcoin (BTC)s blockchain.

According to an announcement shared with Cointelegraph on April 21, Bitcoin-based decentralized finance (DeFi) protocol MoneyOnChain launched the new products on RSKs sidechain.

The new DeFi platform, dubbed RIF on Chain will feature RIF Dollar (RDOC), RIFX and RIFpro (RPRO). RPRO is a token that mirrors the price of RIF but also grants passive income by collecting a share of the fees generated by platform transactions.

RDOC is pegged to the United States dollar and backed by RIF tokens. Unlike competing Ether (ETH)-backed decentralized stablecoin DAI, RID Dollars can be acquired directly by spending RIF without creating a collateralized debt position.

The RDOC stablecoin is minted every time there is a certain amount of RIFpro staked on the platform. Lastly, RIFX is a token that gives exposure to RIFs price fluctuations with leverage. Diego Gutierrez Zaldivar, CEO of IOV Labs the firm behind Rootstock explained:

RIFX is a RIF leveraged decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks. [] The ROC platform, in this current version, does not have a Margin Call notification.

Zaldivar pointed out that RIF is merge-mined with BTC and leverages Bitcoins blockchain for security. He also explained that Bitcoin as an asset is integrated into the system and its role will be expanded in the future:

Bitcoins are locked on-chain and RBTC tokens are minted on the RSK network accordingly. RBTC (and thereby BTC) will serve as collateral for loans, as a pegging mechanism for RIF Dollar and more.

As Cointelegraph reported in March, lead developer at blockchain firm Kava Labs Ruaridh ODonnell pointed out that there is great anticipation for the development of Bitcoins DeFi ecosystem. When it comes to the broader DeFi space, it is seeing great developments at an astonishingly fast rate.

As Cointelegraph reported earlier today, Ethereum-based DeFi protocol Synthetix recently enabled tokenized real-world assets like Brent oil and the Nikkei stock index. The CEO of blockchain firm Trustology recently said that he believes DeFi protocols could soon emerge as the worlds dominant liquidity pool if scaled effectively.

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Bitcoin Smart Contract Solution RSK Sees New Stablecoin and Leveraged Token - Crypto Monitor News

Bitcoin

Bitcoin went through a 6.23% price hike over the past seven days of trading as the cryptocurrency managed to push to a fresh April high at $7,700. The coin met resistance at $7,200 last week, which caused it to drop beneath $7,000 at the start of this week. It went on to find support at $6,800, where it rebounded.

On the rebound, Bitcoin took out resistance at $7,000, $7,200, and $7,400 as it spiked as high as $7,780. It since dropped to the current $7,500 level, where it faces resistance at the 100-days EMA.

Looking ahead, if the buyers break above the 100-days EMA, the first level of resistance lies at $7,700. Above this, resistance lies at $7,780 (1.272 Fib Extension), $7,880 (200-days EMA), and $8,000 (bearish .618 Fib Retracement). This is followed by resistance at $8,300 (1.618 Fib Extension).

If the bears push lower, support can be found at $7,400, $7,200, and $7,000. Beneath this, added support lies at $6,800 and $6,640.

Ethereum saw a 10% price increase this week as it manages to reach the resistance at $188 again.

The cryptocurrency was trading at this level 7 days ago, but the resistance here, provided by a bearish .5 Fib Retracement, caused ETH to drop lower into the support at $170, where lies the 100-days EMA.

ETH rebounded from this level and since returned to the $188 resistance. It actually spiked upward to create a fresh April 2020 high at $194 yesterday.

If the bulls break $188, resistance is expected at $194 and $200. Above this, added resistance lies at $206, $211 (bearish .618 Fib Retracement), and $225.

Toward the downside, support lies at $177 (200-days EMA), $175, and $170 (100-days EMA). This is followed by support at $165 and $160.

Against Bitcoin, Ethereum met resistance at the 0.026 BTC level last week, which caused it to drop into the 0.025 BTC level during the week. It attempted to rebound from here but was halted by 0.026 BTC again yesterday. The coin has since dropped into the support at 0.247 BTC.

If the sellers break 0.0247 BTC, the first level of support lies at 0.0239 BTC. Beneath this, support lies at 0.023 BTC (.5 Fib Retracement) and 0.0225 BTC (100-days EMA).

On the other side, if the bulls can break 0.025 BTC, resistance lies at 0.026 BTC (bearish .786 Fib Retracement), 0.0263 BTC, and 0.0266 BTC (bearish .886 Fib Retracement).

XRP saw a small 3% price increase this past week as it continues to remain trapped at the $0.20 resistance. It reached $0.0196 last Friday, which caused it to drop lower into support at $0.18 (short term .236 Fib Retracement & rising trend line).

XRP rebounded from here and started to climb higher as it breaks back above $0.19 to reach $0.195. XRP will need to cleanly break the $0.20 resistance for a bull run to be sparked.

Looking ahead, the first level of resistance is located at $0.20. Above this, resistance lies at $0.207 (100-days EMA), $0.217, and $0.224. Following this, added resistance lies at $0.23 (200-days EMA).

Toward the downside, support lies at $0.191, the rising trend line, and $0.18. Beneath this, added support lies at $0.171 and $0.165 (.382 Fib Retracement).

Against Bitcoin, XRP was trading at the 2710 SAT resistance last Friday as it continued to trade beneath a falling trend line. The coin made multiple attempts to break above this trend line this week but failed on each one.

In yesterdays trading session, XRP fell further beneath this trend line as it broke the support at 2650 SAT and dropped as low as 2570 SAT.

Moving forward, if the sellers push lower, the first level of support lies at 2560 SAT (.618 Fib Retracement). Beneath this, support lies at 2525 SAT, 2500 SAT, and 2470 SAT (.786 Fib Retracement).

On the other hand, the first level of resistance lies at 2600 SAT. Above this, resistance lies at 2650 SAT, the falling trend line, and 2670 SAT. Added resistance is located at 2710 SAT and 2750 SAT.

Tezos saw a very strong 27.5% price increase over the past 7-days of trading as the cryptocurrency surges to reach $2.70.

The coin began the week by meeting resistance at $2.34, which caused it trouble as it rolled over to reach $2.10. From here, the coin rebounded and went on to break the aforementioned resistance and continued to surge. It broke above $2.50 to reach the current resistance level at $2.70, provided by a 1.414 Fib Extension.

Looking ahead, if the buyers break $2.70, the first level of resistance lies at $2.82 (bearish .618 Fib Retracement). Above this, resistance is located at $3.00, $3.14, and $3.31 (bearish .786 Fib Retracement & March 2020 high).

Toward the downside, the first level of support lies at $2.58. Beneath this, support lies at $2.50, $2.34, $2.20, and $2.00 (100-days EMA).

Against Bitcoin, Tezos also went on a rampage this week as it reaches a high of 0.000362 BTC, which is resistance provided by 1.414 FIb Extension level. It started the week by rebounding from the support at 0.0003 BTC as it went on to break resistance at 0.00032 BTC and 0.00034 BTC.

If the bulls continue to drive above 0.000362 BTC, resistance is expected at 0.00037 BTC (bearish .786 Fib Retracement). Above this, resistance lies at 0.00038 BTC (1.618 Fib Extension), 0.000387 BTC, and 0.0004 BTC.

On the other side, support lies at 0.00034 BTC, 0.00032 BTC, and 0.0003 BTC.

Cardano also witnessed a fantastic price surge this week as it increased by 24% to reach the 200-days EMA at around $0.042. The coin started the week by breaking above the $0.035 level and continued higher to break the previous April high at $0.0367.

It went on to break resistance at $0.038 (bearish .382 Fib Retracement) to reach the 200-days EMA where it currently trades.

Looking ahead, once the bulls break the 200-days EMA, resistance is located at $0.0446 (bearish .5 Fib Retracement). Above this, resistance lies at $0.047, $0.049 (1.618 FIb Extension), and $0.05 (bearish .618 Fib Retracement).

If the sellers push lower, support can be expected at $0.04, $0.0383 (100-days EMA), and $0.0367. Beneath this, additional support lies at $0.035.

Cardano has also been surging against Bitcoin. The cryptocurrency began the week trading at 500 SAT as it started to climb higher. It broke above the 100-days EMA and resistance at the 200-days EMA at around 550 SAT to reach the current trading level at 570 SAT.

It spiked higher today to break above the March 2020 high of 573 SAT as it reached the 585 SAT level.

Looking ahead, if the buyers continue above 570 SAT, resistance is located at 580 SAT and 600 SAT (bearish .618 Fib retracement). Above this, resistance lies at 620 SAT (1.414 Fib Extension) and 640 SAT (bearish .786 Fib Retracement).

Alternatively, if the sellers push lower, support lies at 550 SAT (200-days EMA), 535 SAT, and 520 SAT. This is followed by support at 510 SAT (100-days EMA) and 500 SAT.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency chartsby TradingView.

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Crypto Price Analysis & Overview April 24th: Bitcoin, Ethereum, Ripple, Tezos, and Cardano - CryptoPotato

Why is Bitcoin Options Trading Popular?

Since 2018, the so-called crypto winter, derivatives trading almost became the go-to choice for investors in the cryptocurrency space, because of its leverage and hedging functions. Bitcoin perpetual contracts, which have no expiry date and with high leverage, used to be the most popular crypto derivative among retail as well as institutional investors. However, as the bitcoin market is incredibly volatile, trade, that go against the market trend, will risk being liquidated. Investors are looking to minimize the risks in conjunction with amplifying the potential profits. Therefore, BTC Options Contracts comes to the stage!

Similar to futures trading, you can long or short BTC. But the main difference is that you cannot set the open price for the options contracts. In other words, a Call option (buy/long) and Put option (sell/short) are triggered at a fixed strike price so that you can know potential gains and losses beforehand. And the option contract will be automatically closed until its expiry.

Lets check the step-by-step guide. With BTC currently trading at $7,211.69, you predict that it will decline.

The put option contract will expire in 2 minutes. Between the Lock Time and Expiration Time, as long as Bitcoin drops below the fixed open price of $7,211.69, you would make profits.

The fact that a call option buyer has unlimited upside, while a put option seller an unlimited downside, no forced liquidation will occur. Hence, traders have more opportunities to make up for the loss of one wrong trade by starting another trade in the opposite direction.

IE Option is a cryptocurrency options exchange established in the United Kingdom. Besides Bitcoin, it also provides options trading of ETH, LTC and EOS. By making accurate trend predictions (higher or lower than the strike), you can get a maximum profit of 91%.

Signup an account in IE Option, you dont need to do KYC identification. You can easily register with email in 30 seconds.

To try options trading in IE Option, there is a demo account with 10 BTC for you. If youve been familiar bitcoin options trading and build up strategies and skills, you can switch to live mode and earn real bitcoins.

All users are eligible to get up to 100% deposit bonus. As long as your deposit is larger than 0.01 BTC, you can enjoy a deposit bonus. For example, if you deposit 2 BTC in, you will get 4 BTC in total.

Give it a shot to IE Option and make profits on options trading easily. Join IE Option now to claim 10 Free BTC welcome bonus in a demo account. Android and iOS apps are available for you to make successful trades everywhere!

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Avoid Liquidation - Trade Bitcoin with Leverage in Options - CryptoGlobe

Bitcoin Cash (BCH) proponent, Roger Ver, claims he paid thousands of dollars in Bitcoin (BTC) fees on multiple occasions.

"I paid a thousand dollars in fees for a single transaction on the Bitcoin network, more times than I can count," Ver said in a video posted by Bitcoin Meme Hub on Twitter.

Bitcoin's chain split into Bitcoin Core and Bitcoin Cash in 2017, dividing a chunk of the community after disagreements over the asset.

Proponents of big blocks wanted faster transactions at lower cost. Those folks veered off with the BCH side of the fork. Bitcoin Core advocates wanted to keep a lower block size, partly to help BTC remain decentralized.

The Bitcoin Cash community saw even further divide in 2018, when BCH itself split into Bitcoin Cash and Bitcoin Satoshi's Vision (BSV).

A well-known name in the crypto industry, Roger Ver has argued the point of fees and usability many times, often lobbying that BTC is too slow, expensive, and unable to scale.

On April 7, Reddit user, Braclayrab,posted that, "If everyone on BTC wanted to move their coins, it would take 165 days."

"That's almost six months," Ver said in an April 9 video response to the Reddit post. "Does that not seem crazy to anyone else."

Users saw similar difficulties near the peak of Bitcoin's $20,000 bull run in 2017 and early 2018, when transactions stalled amid soaring fees. Ver has often riffed on the concept of Bitcoin Core being a slow and expensive network, pointing toward BCH as an alternative.

In contrast, BTC proponents, such as programmer Jimmy Song, often mention the other side of the table, in keeping BTC decentralized through smaller blocks.

Bitcoin Cash recently completed its halving roughly one month before Bitcoin's scheduled May halving event.

See the original post here:
Roger Ver Claims His Bitcoin Transaction Fees Totaled $1,000 at Times - Cointelegraph

Bitcoin is looking weak after Monday's big crash in the oil markets.

The top cryptocurrency by market value is changing hands near $6,820 at time of writing, having faced rejection above $7,200 yesterday., according to CoinDesk's Bitcoin Price Index.

Bitcoin's fall came as the price of oil, popularly known as "black gold," tanked on oversupply fears. Notably, traders fled from the May futures contract on the West Texas Intermediate's (WTI) crude, the main oil benchmark for North America, sending prices below zero for the first time on record.

The unprecedented sell-off has injected uncertainty into global financial markets. As a result, stocks dropped on Monday with the S&P 500 losing 1.8 percent of its value. The risk-off macro-environment has again strengthened bearish pressures for bitcoin.

"The downside in BTC ismore likely attributable to losses in the equities market, which may bedirectly or indirectly affected by Crude prices, than the downward trend forcrude directly," said Matthew Dibb, co-founder of Stack.

Bitcoin has largely moved in tandem with the stock markets, in particular the S&P 500 index, from the beginning of the coronavirus pandemic in the last week of February.

The latest drop in bitcoin prices marks a failure by the bulls to keep gains above the widely tracked 100-week average at $7,054.

Bitcoin closed last week above the 100-week average, having repeatedly failed to do so in the preceding four weeks. As a result, some observers were expecting the upward momentum to gather pace. That didn't happen, as noted.

The failed breakout is accompanied by a negative reading on the weekly chart's money flow index a sign that sellers have the upper hand right now.

As a result, further losses toward $6,472 (April 16 low) could be seen.

The bearish technical setup is accompanied by continued sell-off in equities and oil. While WTI's May futures contract, set to expire on Tuesday, has risen back above $1, the June contract is now facing increased selling pressure and is currently trading near $11.80, down 40 percent on the day.

Analysts at Goldman Sachs have warned the plunge in black gold is symptomatic of unprecedented supplies. Put simply, oil is likely to continue taking a beating in the short term.

Importantly, a cash crunch seems to be gripping the markets again, as is evident from the losses in traditional safe havens like gold, the Japanese yen and the Swiss franc alongside a 0.5 percent uptick in the dollar index.

"[Bitcoin] may go down to $6,400," Chris Thomas, head of digital assets at Swissquote Bank, told CoinDesk.

However, some observers are optimistic about bitcoin's future prospects. "The [miner reward] halving should help keep a bid to bitcoin in the coming months," Richard Rosenblum, co-head of trading at GSR, told CoinDesk.

Rosenblum added bitcoin is a futuristic product that will ultimately benefit from the growing prevalence of technology in consumers' everyday lives.

Meanwhile, Stack's CEO Matthew Dibb thinks bitcoin and other major digital assets have largely remained "out of harm's way" despite the oil crash. "While BTC is slightly down on todays markets, we are not seeing any significant correlation between the market and energy commodities," said Dibb, adding the cryptocurrency will remain bullish as long as prices are holding above $5,800.

Supporting these arguments is the recent decline in the number of bitcoins held on exchanges, which suggests a shift to the long-term holding strategies.

Disclosure:The author currently holds no cryptocurrencies.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Under Pressure After Oil Prices Crash to Record Lows - CoinDesk

Researchers from the Bank for International Settlements are finding that cryptocurrency markets actually react positively to news of clear regulations.

Per a working paper released by the Dallas Federal Reserve Banks Globalization Institute on April 18, crypto prices are more responsive to regulation than their reputation suggests. While news reports of government bans on cryptocurrencies resulted in price dips, markets jumped when the regulation was clear.

The paper suggests, at the current juncture, authorities around the globe do have some scope to make regulation effective. Categorizing different news and their effect on Bitcoins price, the researchers found.

Source: Auer and Claessens

In analyzing why cryptocurrencies that operate on borderless blockchains would see price action in response to governmental actions, the authors of the paper suggest that fiat on- and off-ramps, as well as traditional institutions remain important to crypto users:

Why do news events about national regulations have such a substantial impact oncryptoassets that have no formal legal homes and are traded internationally? Part ofour interpretation is that cryptocurrencies rely on regulated institutions to convertregular currency into cryptocurrencies.

The authors of the paper, Raphael Auer and Stijn Claessens, are both researchers within the Bank for International Settlements monetary and economic department. Auer is the principal economist in the innovation and the digital economy unit while Claessens is the head of financial stability policy.

Earlier in April, the BIS called for countries to work on issuing central bank digital currencies in response to a number of payment issues that have come into focus during the COVID-19 pandemic. In February, the Bank appointed new leadership at two of its hubs for fintech research.

Cointelegraph reached out to the authors of the paper for further clarification but had received no answer as of press time. This article will be updated with those responses if they come in.

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New Research Says Bitcoin Price Jumps in Response to News of Clear Regulation - Cointelegraph

Bitcoin was in for a surprise plunge this Monday as investors assessed the situation in a worrisome oil market.

The benchmark cryptocurrency fell by 4.30 percent to circa $6,748 per token shortly after the US oil futures price slipped into negative territory for the first time. The two assets remain non-correlated, but bitcoins growing correspondence to the stock market amid the fast-spreading coronavirus pandemic might have led its prices to decline.

The Dow Jones Industrial Average slipped 2.4 percent to 23650.44 on Monday, taking cues from the oil market. The S&P 500 and Nasdaq Composite, too, plunged by 1.8 percent and 1 percent, respectively, showing that investors continued to seek safety away from risk-on assets.

Bitcoins intraday fall did not stop its prices from holding its prevailing uptrend. The cryptocurrency plunged right into what appears like its interim support before attempting a minor pullback heading into the Asian session Tuesday.

Bitcoin finds support inside the Ascending Channel | Source: TradingView.com, Coinbase

As shown in the Coinbase 1D chart above, bitcoin tested the upward sloping support trendline of the saffroned Ascending Channel. The cryptocurrency bounced back weakly by 1.01 percent to hit an intraday high near $6,925, expressing its likelihood to consolidate further in the current resistance range defined by $6,800-lows and $7,500-highs.

Meanwhile, the price located converging support in the blue 50-daily moving average wave. Bulls attempted to maintain bitcoins interim upside bias near these support levels, confirming that they still have a technical advantage against a dwindling macroeconomic outlook.

People say bitcoin is wild, commented Frank Chapporra, a former Nasdaq reporter. Throughout this [coronavirus] crisis, weve seen spine-tingling equity volatility, Treasury yields hit record lows, oil prices fall below zero, unprecedented Fed printing and bond purchasing. Right now, bitcoin might be more stable than anything else.

Bitcoins growing proximity with the US stocks remains one of the most alarming downside catalysts. The oil shock could send equities further down as the week matures. Meanwhile, investors looking to neutralize their losses could start selling the first profitable thing they see for cash.

That is troubling for bitcoin, which has surged 77 percent from its cycle low. Bulls next objective is to maintain support above $6,800. The floor could lead the prices as up as $9,000, as predicted in one of Bitcoinist earlier analyses.

Photo by Delphine Ducaruge on Unsplash

Link:
Bitcoin Tanks After Oil's Colossal Collapse, but the Bull Case Remains Strong - Bitcoinist

Monday marked a historic moment in traditional markets, with the price of West Texas Intermediate oil futures going into negative territory for the first time ever.

Contracts for May delivery, expiring on Tuesday, collapsed below -$40 per barrel at one point. In other words, sellers were willing to pay as much as $40 to people to take a barrel off their hands. Excess supply in the midst of a massive global downturn has led to a storage problem for crude. Some traders are even making $2 offers per barrel on the spot market.

The breathtaking crash in oil prices was taken as a warning sign to U.S. stocks and bonds: a recovery, where demand for energy would put those stockpiled barrels to use, appears to be further in the distance than anticipated. The S&P 500 index slipped 1.7 percent while safe-haven U.S. Treasury bonds saw an influx of dollars that pushed two-year yields down to 5 percent. Bond yields fall as prices rise.

Gold also gained on the day. On Monday, the precious metal climbed 0.86 percent to $1,713.40 per troy ounce.

Oil also took its toll on the FTSE 100 index toward the end of its trading day Monday. Though the British equity index closed up less than a percent, it started off with strong gains but started to tumble in afternoon trading on concerns about the energy sector.

Several hour earlier in Asia, the Nikkei 225 slipped 1.15 percent. The dip arrives as Japans Ministry of Finance reported poor trade numbers, with exports declining by more than 11% while imports dropped by 5% in March.

Crypto markets

Bitcoin prices merely shrugged at the turmoil in the oil markets, slipping 4.4 percent over the past 24 hours, according to CoinDesks Bitcoin Price Index as of 21:35 UTC (5:35 p.m. EDT) Monday.

The price for 1 BTC fell below its 10-day and 50-day moving averages at 11:00 UTC (7 a.m. EDT), with trading dropping below $7,000, eventually dipping to around $6,920 levels on exchanges such as Coinbase.

The worlds oldest cryptocurrency was then able to return to the $7,000 level before large amounts of selling volume at 18:00 UTC (2 p.m.PM EDT) pushed prices down to around the $6,830 range.

Most major digital assets are primarily in the red on CoinDesks big board for the day.

Ether slipped 5.8 percent. Large losers include dash (DASH) dropping 8.9 percent, bitcoin gold (BTG) down 7 percent and bitcoin sv (BSV) dipping 6 percent. One notable winner today is stellar (XLM), in the green 1.3 percent.

Tether breaks $7 billion

The market capitalization of tether (USDT), the largest stablecoin in the cryptocurrency markets, surpassed $7 billion this past week, well more than double where it was a year ago. As tether is pegged at roughly 1:1 to the U.S. dollar, its market cap is a reflection of how much is believed to be held in assets against each coin.

With an additional 120 million printed on April 18, USDT currently has a circulating supply of 6,992,102,061 USDT. Due to USDTs slight price premium above the U.S. dollar, the current market cap is around $7 billion, according to data from aggregator Nomics. Tether says it has $7.1 billion in assets as of Monday.

Tethers price is often more than a dollar because of the convenience it provides some of its owners, according to Vishal Shah, a crypto options trader and founder of derivatives exchange Alpha5. Tether trades at a premium to USD and highlights a capital flight situation in which there is limited access to hard currency, he told CoinDesk.

Some 74 percent of all bitcoins traded on major exchanges are done against tether, according to data site CryptoCompare.

USDTs ubiquity on cryptocurrency exchanges offsets concerns traders may have about the stablecoin, Shah noted. Tether is the most easily accessed USD-proxy stablecoin, and arguably has a more colored background than some of its direct competitors.

Indeed, that background includes questions about provenance of the assets backing USDT.

Competing stablecoins like USD Coin (USDC) have independently audited financial statements showing custody accounts with dollars backing blockchain-based stable assets, the idea being redemption of one USDC equals one dollar from Centre, the group that issues the stablecoin backed by Coinbase and Circle.

Customers holding USD Coin and who open accounts with a Centre member issuer are always able to redeem 1 USD Coin for $1 USD, said Josh Hawkins,vice president for communications at Circle.

USD Coin holders also gain the assurance that the funds are fully reserved, as the Centre Consortium requires that issuers be regulated financial institutions, and also that reserves backing USD Coin are always held at 100%, he added.

In comparison, Tethers terms of service explicitly state that holders of USDT could experience redemption in some other security or asset than dollars should the stablecoin become illiquid.

With the growth of banking-friendly USDC, its clear regulatory issues surrounding stablecoins will come to a head, says David Johnston, Managing Director of Yeoman's Capital. Johnston is concerned that solvency could be a problem in the future with Tether, a problem that plagued early bitcoin exchange Mt. Gox, the aftermath of which is still an ongoing legal affair.

USDT is going the way of Mt. Gox, if they don't become either fully decentralized or a regulated extension of the central banks, Johnston told CoinDesk.

He also mentioned the 2019 draft report on stablecoin risks from a G7 working group as an indication stablecoin regulation could soon be on the way. USDT has existed in the gray area between centralized and decentralized. With these new recommendations from the Financial Stability Board it's clear that this gray area will soon no longer exist, Johnston said.

Requests for comment from Tether or Bitfinex executives were made but not returned as of press time.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Market Wrap: Oil Futures Plunge, Bitcoin Dips and Tether Has a $7B Day - CoinDesk

Bolstered by the new coronavirus pandemic, scams continue to be rampant in the cryptocurrency world. From malware to fake investment programs and even fake donations to health organizations, scammers are known for taking advantage of desperate times and desperate people. One of the most prominent scams in the industry, PlusToken, has come under the spotlight again after rumours emerged that the March crash was caused by its operators selling their stolen Bitcoin (BTC).

According to research by Chainalysis, a blockchain analysis company, PlusToken did not cause the Black Thursday sell-off of March 12. In a recent webinar, Chainalysis sought to bring clarity to the impact of the COVID-19 pandemic on cryptocurrency markets by analyzing key points in on-chain data such as exchange inflow and more.

During the presentation, Philip Gradwell, the chief economist at Chainalysis, addressed a somewhat common opinion that the crypto market crash that happened March 12 to March 13 was caused by PlusToken liquidating the Bitcoin acquired through its Ponzi scheme, which came to around $2.9 billion, according to Chainalysis. In the webinar, Gradwell stated:

We can also dispel another theory that has been going around, that PlusToken [...] selling triggered the price decline. We actually dont think thats the case because PlusToken had largely cashed out before early March.

According to Chainalysis data, PlusToken movements to exchanges decreased severely before the crash, which indicates funds were already cashed out. A noticeable amount of 12,423 Bitcoin, worth $123 million at the time, was moved to a mixer or cold wallet on Feb. 12, followed by a similar amount in early March. Its possible that the Bitcoin was cashed out immediately to avoid exchanges freezing funds.

PlusToken may still have 61,229 Bitcoin, currently worth around $420 million, according to a report released by OXT Research on March 10. While some Bitcoin has been sold after the crash, low prices seem to discourage those behind PlusToken from selling, if they are still in fact holding such large quantities of Bitcoin. Its possible that the PlusToken operators may be waiting for the Bitcoin halving to capture a higher price.

According to Chainalysis, volumes prior to and during December 2019 were much higher than those observed in 2020. The accentuated inflows were discussed in another Chainalysis report where it took another stance on the PlusToken and Bitcoin price relation, stating that at the time the sell-offs from PlusToken were keeping Bitcoin prices down.

Although PlusToken has largely cashed out, there is still a chance it will continue to affect Bitcoin. According to Kim Grauer, the head of research at Chainalysis, a large sell-off by PlusToken could bring down the price of Bitcoin in the future, especially if liquidations are executed irresponsibly. She told Cointelegraph:

We found in the past that large inflows to exchanges, such as those from PlusToken last year, tend to increase the price volatility on exchanges. This problem can potentially be exacerbated by trading bots that pick up on those on-chain movements and execute trades, not to mention the highly leveraged positions on derivatives exchanges that can get liquidated rather quickly. But overall, prices tend to bounce back quickly from those one-off events.

PlusToken, now known as the biggest cryptocurrency exit scam in history so far was a 2019 Ponzi scheme that defrauded investors out of $2.9 billion in cryptocurrency assets by posing as a South Korea-based crypto wallet project that offered depositors interest in crypto, a practice that has become fairly common in decentralized finance applications, centralized banking applications and exchanges offering margin trading.

PlusToken explained that its high interest payments would be generated by exchange profits, mining and referral programs. Shortsighted by the promising gains, over 3 million users registered with PlusToken.The scheme even announced that it expected to grow to 10 million users by the end of 2019, shortly before it exited with depositors money.

Related: Crypto Exit Scams How to Avoid Falling Victim

In China, PlusToken was quickly exposed as a Ponzi scheme when six individuals were arrested by Chinese authorities in June 2019, with reports connecting them to the PlusToken project. Cointelgraph reported on the incident at the time, but it was in August 2019 that the cybersecurity firm CipherTrace released its second quarter Cryptocurrency Anti-Money Laundering Report that confirmed the connection to the PlusToken scam.

Interest-generating products have been gaining evermore popularity in the cryptosphere, including MakerDAOs decentralized protocol, which according to a report by DappRadar saw peak activity during March, and other centralized options such as BlockFis banking app or Binances lending services. Although crypto has always been prone to illicit activity and shady ventures, the relatively high interest rates practiced in these services may have helped normalize PlusTokens profit claims, easing unwary investors.

Similar models have been seen elsewhere. In August 2019, a cryptocurrency wallet project from Nigeria called Satowallet allegedly made off with $1 million in a smaller-scale exit scam. Last year, another Ponzi scheme promising returns from cloud mining also made headlines after pulling off a $200 million exit scam that later resulted in 14 individuals being arrested.

An ever-increasing number of topical crypto-schemes have surfaced since the worsening of the coronavirus pandemic, from fake donation campaigns for the World Health Organization and the United States Centers for Disease Control and Prevention to fraudsters impersonating officials from these agencies who can sell information on active infections for a price, paid with Bitcoin of course.

Now more than ever, cryptocurrency holders need to be wary of crypto scams. The U.S. Federal Bureau of Investigations recently issued a press release in which it warned of the potential increase of cryptocurrency-related fraud schemes during the COVID-19 pandemic, adding:

There are not only numerous virtual asset service providers online but also thousands of cryptocurrency kiosks located throughout the world which are exploited by criminals to facilitate their schemes. Many traditional financial crimes and money laundering schemes are now orchestrated via cryptocurrencies.

Although tough times create a perfect chaotic setting for scammers to operate in, its relieving to know that despite the increased activity and novel coronavirus-related scams, revenue for crypto scammers fell by around 30% in March.

Despite taking on new forms, cryptocurrency scams are almost as old as crypto itself. For example, OneCoin one of the most prominent names when it comes to cryptocurrency-related scams was founded in 2014 and it is still making headlines in crypto media. Although OneCoin has been sued, the lead plaintiff for the ongoing $4 billion class-action suit against the project, Donald Berdeaux, has repeatedly failed to meet the courts monthly status reports, which may lead to the case being dropped.

According to Chainalysis, most of the funds moved by the PlusToken scam were liquidated in two Asian exchanges: Huobi and OKEx. This has raised some concerns about exchanges Know Your Customer practices, which do not seem to have been useful when it came to spotting or censoring the transactions from PlusToken.

Although other sources were used, they were small in comparison to the inflows to the aforementioned exchanges. Grauer stated that Chainalysis had found traces of funds at mining pools, mixers, other scams, and p2p exchanges, but the paths were too small to be interrogated.

If cryptocurrency schemes are to be stopped, exchanges should ideally act as a final barrier for illicit transactions. Responding to past criticism, Huobi is aiming to improve its security measures by launching Star Atlas, an on-chain monitoring tool that can identify crimes like fraud, money, laundry and other problematic activities.

Moreover, Huobi is also looking to partner with data providers like Chainalysis and CryptoCompare to build a more transparent and compliant ecosystem, a measure that will surely be essential for institutionalization and regulatory compliance going forward. Ciara Sun, the vice president of global business at Huobi, told Cointelegraph:

While we may be able to identify illicit activities once they reach our exchanges and prevent their outflow, we can't yet prevent illicit transactions that start outside of our platform. However, we believe that collaborative efforts among industry players, including but not limited to information sharing, are the key to success to create a safer friendly ecosystem for the crypto industry to grow.

While efforts to reduce illicit transactions are being undertaken by exchanges such as Huobi and Paxful, users should always be aware of possible fraud attempts and conduct meaningful diligence into any project they are willing to trust with their coins, as it is unlikely theyll get them back once lost.

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Crypto Scams on the Rise and Can Still Affect Bitcoins Price - Cointelegraph

With Bitcoin halving set to take place on May 12 and 22 days left, institutional investors are catching the fever and cant help taking advantage of the crypto assets huge opportunities.

Bitcoin halving has become the internet new order, with its searches scaling by the day. With a lot of anticipation leaning on a possible bull rally, institutional investors are rushing to claim a share of the pie. The block halving event is scheduled to take place on May 12, 2020, whereby the Bitcoin mining reward to miners will be slashed by half from the current 12.5 BTC/ 10 mins.

Bitcoin halving is a major event that signifies the decline in BTC supply from miners to the market. It has happened two other times, 2012 and 2016, after completing 210,000 blocks before the next event. Bitcoin is mined with the knowledge of finite end in its supply, whereby it is meant to reach 21,000,000 coins at the end of the last block, approximately 2140.

The 2020 halving event has several additional factors than previous events in the past. First, the advanced technology in the mining devices has affected the miners profit margin, and secondly, the ongoing coronavirus pandemic has made the factors more complex for the crypto asset industry.

However, the Tradeblock platform has critically analyzed the previous halving events and given their prediction on the oncoming may event. Their analysis has been favored by the increased institutional investors eyeing to take advantage of the pre and post halving volatility.

According to Tradeblocks analysis, the Bitcoin price rose prior to each event, hence allowing miners to maintain healthy profits. The analysis also noted that the miners profits were slashed by half after the event. The Bitcoin hash rate in the previous events did not experience a dramatic uptick, as the miners were bagging home considerable profit margins.

The report went ahead to use the previous years analysis to predict the possible scenarios as we approach the halving event and the aftermath. The report estimated that miners are currently breaking even at approximately $7,300 per coin, despite the market price playing around $7,000.

Following the 2020 halving, the report suggests that the mining breakeven will rise to between $12,000 and $15,100 per coin. These figures used the assumption that the hash rate will stay unchanged or rise following a modest growth rate.

With all factors pointing towards price breakout to a possible new all-time high, institutional investors are moving fast to invest in both the crypto asset and also its future contracts.

One of the notable institutional investors is the Renaissance, through its Medallion Fund, whereby it has selected the CME cash-settled Bitcoin futures. Another notable firm is Grayscale Investments, which experienced a record inflow into its Grayscale Bitcoin Trust of more than $338. Million

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery!

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Bitcoin Halving Is Just 22 Days Away and Catches Institutional Investors... - Coinspeaker