Ether soared to new record highs Thursday, but an overheated derivatives market may suggest higher volatility is on the way for the short term.

The second-largest cryptocurrency by market value set the new lifetime high of $1,928 soon before press time, having first breached the previous peak of $1,821.49 reached on Feb. 13 early today, according to CoinDesk 20 data.

In the derivatives market, the average level of the funding rate across major exchanges offering ether perpetuals (futures with no expiry) has risen sharply from 0.069% just short of the early January record high of 0.21%, according to data source Glassnode.

It shows the derivatives market is overleveraged, Patrick Heusser, head of trading at Swiss-based Crypto Finance AG, told CoinDesk. With this current structure, I do not feel comfortable in running a lot of long exposure.

The funding rate is calculated every eight hours and represents the cost of holding long positions. When perpetuals trade at a premium to spot price, the funding rate is positive (longs pay shorts).Hence, a very high funding rate is considered a sign of leverage being excessively skewed to the bullish side (overbought conditions) and often injects volatility into the market.

Ether: Average funding rate

In such situations, holding longs at high costs is attractive only if the bullish momentum remains strong. A pullback or consolidation can trigger an unwinding of longs, leading to a more profound price drop and a pick-up in price volatility. As of press time, ether is showing no signs of price congestion.

However, the case for a continued steep rally looks weak, with spot market volumes falling on major exchanges such as Coinbase.

Ether daily chart

With the 10-day moving average of daily volume trending south, theres a question mark on the sustainability of recent gains. A low-volume price rise is often short-lived.

That said, a pullback, if any, could be shallow and brief, as on-chain fundamentals are biased bullish.

The number of coins held on exchanges has declined by 10% to 20.77 million in the past three months, according to data source CryptoQuant.It shows investors are either taking direct custody of coins or staking them into decentralized finance protocols, creating a sell-side liquidity shortage.

Ether exchange reserves (number of balances held in exchange addresses)

In the long-run, [the] ETH rally would keep going as long as ETH holdings in all exchanges are decreasing, Ki-Young Ju, CEO of CryptoQuant, told CoinDesk.

Other metrics also paint a bullish picture. For instance, the 90-day average of active addresses on Ethereums network has increased to a new lifetime high of around 450,000, surpassing the 2017 peak, according to Glassnode.

Ethereum: 90-day average of active addresses

When theres greater usage, theres more demand for the cryptocurrency, and that drives the price up, Philip Gradwell, chief economist at the blockchain intelligence firm Chainalysis,told CoinDesk.

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Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900 - CoinDesk

The Justice Department unsealed an indictment Wednesday against two alleged members of North Koreas military intelligence services, accusing them of hacking banks and companies in more than a dozen countries including the U.S. as part of a wide-ranging scheme to steal $1.3 billion over the past half-decade for Pyongyang.

North Korean hackers are increasingly focusing their criminal activity on the world of cryptocurrency and have recently built malicious cryptocurrency apps, launched ransomware attacks and promoted a fraudulent initial coin offering in pursuit of digital cash, prosecutors said.

The new indictment charged Jon Chang Hyok and Kim Il with the hacking and related fraud. A third man, Park Jin Hyok, who is also named in the indictment, was previously charged in a September 2018 case that accused him of playing a role in the 2016 theft of $81 million from Bangladeshs account at the Federal Reserve Bank of New York and the 2014 Sony Pictures hack, among other intrusions.

The hackers also allegedly sent spear-phishing emails to employees at the State and Defense Departments and multiple U.S. technology companies in January and February 2020, and at times traveled to and worked from Russia and China, the indictment said.

The charges chronicle a criminal moneymaking operation that has mirrored the general publics increasing interest in digital currencies, as bitcoin has topped the $50,000 mark.

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North Korea Turning to Cryptocurrency Schemes in Global Heists, U.S. Says - The Wall Street Journal

CHANGSHA, China, Feb. 17, 2021 /PRNewswire/ -- Urban Tea Inc. (the "Company," "we" or "Urban Tea") (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today the appointment of Ms. Fengdan Zhou as Chief Operating Officer and Dr. Yunfei Song as an independent director, effective immediately. The new leadership will lead and support the Company's critical strategic expansion in blockchain and cryptocurrency mining.

Ms. Fengdan Zhou worked in blockchain data center companies in Hong Kong and Singapore. Her expertise involves constructing and managing of blockchain data centers (cryptocurrencymining farms), cryptocurrencymining machine procurement and maintenance, digital currency exchange platform construction and operation, and digital currency hardware wallet development. Ms. Zhou will serve as COO and spearhead the implementation of the Company's blockchain and bitcoin business plan.

Dr. Yunfei Song is a scientist at the Chinese Academy of Sciences.His prominent strategy model achievement includes fields of blockchain technology application, artificial intelligence, exchange quantification, and brick moving robots. Additionally, Dr. Song has extensive experience in cryptocurrency mining and digital asset management.He will serveas an independent director and provide guidance to the Company's blockchain development strategy.

Urban Tea Chief Executive Officer Mr. Yi Long commented, "As blockchain technology and cryptocurrency are gaining widespread popularity, they are poised to go mainstream. The world's financial experts and leaders in business, science, and politics have demonstrated confidence in the future of blockchain technology and cryptocurrency, leading to massive growth within the industry."

Mr. Yi Long continued,"To generate greater value to shareholders, management team underwenta thoughtful process of exploring, researching, studying, and discussing, with the board's support, to enter into the blockchain and cryptocurrencybusiness. We are excited to welcome Ms. Zhou and Dr. Song to the team to spearhead this new business.

"We expect that their industry expertise, combined with our growth strategy, will lead our expansion plan into the cryptocurrency mining industry. Going forward, we expect Urban Tea will start expanding into blockchain ecology, such as cryptocurrency mining, blockchain mine construction and maintenance, and cryptocurrency exchange operations."

About Urban Tea, Inc.

Urban Tea, Inc. is an emerging specialty tea product distributer and retailer headquartered in Changsha City, Hunan Province, China. Through its wholly owned subsidiary, Mingyuntang (Shanghai) Tea Limited which controls Hunan Ming Yun Tang Brand Management Co., Ltd. and Hunan 39 Pu Tea Co., Ltd., the Company currently market a wide range of trendy tea drinks, light meals, and pastries targeting China's new urban generation in Hunan province. Our products are focused on not only their taste but also their aesthetic presentation and health benefits. Our products are currently being offered via our own stores. For more information, please visit: http://ir.h-n-myt.com/investor.

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov).All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE Urban Tea Inc.

http://www.h-n-myt.com

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Urban Tea Appoints New COO and Independent Director to Drive Expansion in Blockchain and Cryptocurrency Mining Business - PRNewswire

BIGtoken Inc., the first privacy focused, opted-in data marketplace where people own and monetize their data, announces its partnership with Gilded, a leading provider of business payment and accounting solutions, to offer bitcoin as a reward choice for BIGtokens 9M+ verified users, as a salary choice for its employees, and as a payment choice for its vendors.

"We believe that crypto is the biggest thing to happen in the history of humanity," says BIGtoken CEO Lou Kerner. "Offering bitcoin as a payment option to our users, employees, and vendors is just another step on our journey to becoming a crypto-centric enterprise."

Gilded facilitates instant global payments with cryptocurrency without taking custody of funds or charging transaction fees. Integrated with popular CRMs, bookkeeping systems, and exchanges like Coinbase, Gilded supports a blockchain-enhanced back office workflow from payments to accounting. With Gilded, a company can send programmable invoices with automatic payment detection and reconciliationessentially putting AR and AP on autopilot.

In addition to cryptocurrency, Gilded supports traditional payment channels like credit card and bank wires so customers can choose their preferred method of payment.

Through Gilded, BIGtoken will add bitcoin as a redemption optionin addition to cash and gift cardsto its global user base. A poll which asked BIGtoken users whether theyd be interested in a bitcoin payment option showed that 74% of respondents are interested. BIGtoken will also offer it as a payment option to its vendors and its employees, allowing them to take all or part of their salaries in bitcoin.

"Innovative companies like BIGtoken that are early to embrace crypto are gaining access to a whole new avenue of value creation," said Gilded CEO Gil Hildebrand. "The financial infrastructure of the world is swiftly changing and Gilded is pleased to work with BIGtoken at the forefront of this new decentralized global economy."

Story continues

About Gilded

Gilded helps global companies scale by automating cryptocurrency payments and accounting. Gildeds invoicing, payment and accounting software helps businesses get paid faster and more transparently, with dramatically lower fees.

Founded in 2018, Gilded is backed by Techstars and the Association of International Certified Public Accountants (AICPA).

In 2020, Gilded announced partnerships with TrustToken, Paxos and Stablecorp to offer the worlds first B2B payment solution powered by stablecoins. With Gildeds stablecoin payments product, businesses now have access to instant global settlement and fee-free liquidity. Visit gilded.finance to learn more.

About BIGtoken

BIGtoken believes that data privacy is a human right. BIGtoken is the first privacy focused, opted-in data marketplace where users own and monetize their data. Through a transparent platform and consumer reward system, BIG offers users choice, transparency, and compensation for their anonymized data. Participating consumers earn rewards and advertisers and media companies get access to insights from compliant first-party data for marketing and media activation. For more information on BIGtoken, visit bigtoken.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005837/en/

Contacts

Natalie Santossantos@bigtoken.com

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BIGtoken Offers Cryptocurrency Payments to Users, Employees, and Vendors in Partnership with Gilded - Yahoo Finance

To say this week has been huge for bitcoin and cryptocurrency adoption would be an understatement. There has been so much news that its been hard to keep up, even for those of us working full time in the industry.

Bitcoin adoption is always noteworthy because it shows that these technological improvements to our financial system are finally being understood and desired.

What makes this weeks news even more exciting is that we are seeing a major shift away from traditional finance writing off the cryptocurrency industry (and the technology behind it) as only for cyberpunks or money launderers. This is a narrative that the industry has worked to shake for a decade.

Now, we are seeing that companies like Tesla want bitcoin on their balance sheet and BNY Mellon, Mastercard and PayPal/Venmo see the customer demand high enough to meet it.

Tesla

On Monday, Tesla announced it bought $1.5 billion worth of bitcoin to ensure more flexibility to further diversify and maximize returns on our cash. This move by Tesla and Elon Musk was well received by the industry, although some accurately pointed out that Musk had shilled Dogecoin on Twitter, while apparently having Tesla buy bitcoin instead.

Aubrey Strobel, Head of Communications of Lolli, the world's leading bitcoin rewards company, pointed out: Bitcoin is becoming fully integrated. Now that Tesla has added bitcoin to its balance sheet, retail investors have exposure to bitcoin when they buy $TSLA or the S&P 500.

Close up of Tesla logo on a charger at a Supercharger rapid battery charging station for the ... [+] electric vehicle company Tesla Motors, in the Silicon Valley town of Mountain View, California, August 24, 2016. (Photo by Smith Collection/Gado/Getty Images).

This also led to a slew of companies making statements about their stance on bitcoin. Ubers CEO, Dara Khosrowshah dismissed the idea of adding bitcoin on its balance sheet, saying we are going to keep our cash safe. For the record, bitcoin is safe but what he was referencing is Bitcoins volatility. He also left open the possibility of Uber accepting cryptocurrencies as payment in the future.

Mastercard

On Wednesday, Mastercard announced its plan to give merchants the option to receive payments in cryptocurrency later this year. This will allow Mastercard customers digital currency payments to be settled in crypto at participating merchants, a first for the company.

In this photo illustration a Mastercard logo (Photo Illustration by Omar Marques/SOPA ... [+] Images/LightRocket via Getty Images)

In a blog post, Mastercards EVP for Blockchain and Digital Asset Products, Raj Dhamodharan noted, Our philosophy on cryptocurrencies is straightforward: Its about choice. Mastercard isnt here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value.

BNY Mellon

Yesterday, (are yall keeping up with me? Phew) BNY Mellon, the $2 trillion banking giant, announced the creation of a Digital Assets Unit, which the company describes as a team dedicated to building the first multi-asset custody and administration platform for traditional and digital assets, including cryptocurrencies.

For anyone familiar with the cryptocurrency industry and the troubles cryptocurrency companies have in obtaining bank accounts, let alone custodying cryptocurrency with a Bank, this news was exciting and shows immense progress. Banks like Silvergate Bank, who were early adopters in the space, as well as the OCC have paved the way for banks like BNY Mellon to be willing and able to provide banking and cryptocurrency services. Alan Lane, Chief Executive Officer of Silvergate Bank commented by email that the Bank sees this as a tremendous validation of the platform weve built.

Brian Brooks, former Comptroller of the Currency of the OCC told me, When the oldest bank in the United States decides to adopt the newest money in the world, that shows the inevitable convergence between cryptocurrency and banking.

Venmo

BRAZIL - 2020/07/26: In this photo illustration the Venmo - Share Payments logo seen displayed on a ... [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

PayPal also announced today that it is considering adding cryptocurrency as a payment option through Venmo. In 2020, PayPal itself introduced cryptocurrency as a funding source for digital commerce at its 26 million merchants. Venmo boasts over 52 million individual users.

Conclusion

Regardless of your personal opinion on cryptocurrency, all of this is summed up as big news for this growing industry. Erik Voorhees, CEO of ShapeShift.com, a leading cryptocurrency exchange explained to me, The recent Bitcoin announcements by major companies is indicative of this rising future financial system. One built on open, borderless protocols, and immutable money."

Aubrey Strobel of Lolli, eloquently summed the week up, In the same week, the worlds most progressive company, Tesla, and Americas oldest bank, BNY Mellon, have added bitcoin to their business models. Its no longer a matter of if institutions will adopt bitcoin, its a matter of when. One by one, institutional investors are validating the intuitive value and underlying logic of bitcoin.

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Bitcoin Welcomes Tesla, Mastercard, BNY Mellon, Venmo To The Cryptocurrency Party - Forbes

FinCEN recently took another important step toward bringing virtual currency into the financial assets reporting scheme.

Taxpayers that have $10,000 or more in a foreign bank account have long been required to file a foreign bank account report (or FBAR) on FinCEN Form 114. The penalties for failing to report foreign bank accounts are significant: $10,000 for a non-willful failure and the greater of $100,000 and up to 50 percent of the unreported account balance for willful failures. While the rules requiring the reporting are issued under the authority of the Bank Secrecy Act, the IRS administers the rulesand the IRS has been aggressive in assessing penalties for failures to report such holdings.

The application of the filing requirement to cryptocurrency has been the subject of some uncertainty. The uncertainty arises because the reporting requirement only applies to a financial account. A financial account includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account (per 31 CFR 1010.350(c)) also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value and shares in a mutual fund or similar pooled fund (i.e., a fund that is available to the general public with a regular net asset value determination and regular redemptions). The regulations reserve other investment fund, presumably for a definition to come. However, in response to questions raised by the AICPA Virtual Currency Task Forcein 2019, FinCEN stated that virtual currency was not subject to FBAR reporting. This was confirmed by FinCEN in 2020 as well.

Whether or not cryptocurrencies are subject to FBAR filing, such holdings may have to be included on the IRSs Form 8938, Statement of Specified Foreign Financial Assets. Form 8938 is the counterpart to FinCEN 114.

Recent FinCEN Proposed Rule

On December 31, 2020, FinCEN issued Notice 2020-2 that announced a proposed rule that would amend the regulations implementing the Bank Secrecy Act regarding reports of foreign financial accounts (FBAR) to include virtual currency as a type of reportable account under 31 CFR 1010.350. The proposed rule does not specify an effective date.

The decision to treat cryptocurrency as subject to FBAR reporting significantly increases the potential penalties against those who fail to properly identify these accounts. Holders of virtual currency in foreign accounts should review this rule and prepare to report such holdings once the rule becomes effective.

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The Next Step: FinCEN Proposes to Require Reporting of Cryptocurrency Positions Held in Foreign Accounts - JD Supra

Bitcoin is on a rising spree. The cryprocurrency has touched $51,500 for first time, breaching its earlier high of $51,300 in last 24 hours. Bitcoin breached $50,000 mark for the first time on Tuesday, mainly due to increasing interest and participation from institutional investors. "With credible and major institutions like Tesla, MasterCard, Paypal, Microstrategy adopting them into their ecosystem we are witnessing a continuous rise in demand for bitcoin, thus pushing the valuation higher. In addition, companies such as Google Pay, and Samsung Pay too are now contemplating making inroads into cryptocurrency via Bitpay," says Sumit Gupta, CEO & Co-Founder, CoinDCX, the largest cryptoexchange in India.

Bitcoin grew by a whopping 313% in 2020. And with each passing day, we are seeing it breaking every resistance.

Crypto experts expect the trend to continue with new products build around Bitcoin. They remain optimistic of higher participation by institutional and retail investors. They believe the value of bitcoin to go even higher, infact, double from the current price levels, with short-term volatility.

"It's not just speculation. It's smart value investing by institutions, individuals, and even governments in a breakthrough technology. Bitcoin is an inflation-proof, corruption-resistant store of value backed by more reliable and transparent accounting. That is real value. In the near future, we'll see 60, 70, and $100,000. In between, we'll also see volatile dips and the usual reports about the bubble bursting. Bitcoin isn't a bubble. It's a part of our economy now," says Vikram Rangala, CMO, ZebPay.

The state of cryptocurrency, including Bitcoin, in India however looks confusing. Finance Minister Nirmala Sitharaman last week said that an inter-ministerial committee has suggested ban on private cryptocurrencies in India, except any virtual currencies issued by state. Industry experts feel Indian investors should not be deprived to participate in the booming market of digital assets.

"The recent development around Bitcoin testifies the fact that world is ready to make digital assets mainstream. India, the fifth largest economy in the world, should leverage this trillion dollar opportunity and enable its citizens to benefit from the exponential growth offered by digital assets. As we see central banks across the globe inching towards creating their own digital currency, it will catalyse the adoption of digital assets and create a growth-oriented, positive and transparent digital asset ecosystem," says Shivam Thakral, CEO, BuyUcoin.

The reach of crypto assets is widening to be a part of a mainstream investment portfolio. Sumit Gupta says, "Analysts from financial institutions like JP Morgan have observed that investors in Gold ETF such as Family units are now looking at bitcoin as an alternative to gold."

On the contrary, financial planners advise investors to move out of the cryptocurrency due to a lack of clarity of the proposed bill to ban crypto in India. They say it would be a better option for the investors to square off their positions in the near future.

"If the proposal to ban cryptocurrency is put into action and implemented, it would not be possible to square off the deliveries at that time and investors would have to incur huge losses. The seriousness of the following statement could be measured if we revisit to the year 2018 where RBI banned all the banks from processing any transaction related to the digital currency which was later subdued by the Supreme Court last year," says Nitin Shahi, Executive Director of Findoc, a financial services group.

Also Read: Bitcoin races past $50,000 for first time amid growing acceptance

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'Bitcoin will touch $100,000 soon, it's not a bubble,' say cryptocurrency experts - Business Today