Crypto Market Crash: Altcoins Plunge as Crypto Whales Offload Holdings
The cryptocurrency market is known for its volatility, and the past few days have been no exception. Some altcoins have been experiencing a massive sell-off, and the reason behind it may be the whales offloading their holdings. Crypto whales are individuals or entities that hold a large amount of cryptocurrency, and their actions can have a significant impact on the market.
The Altcoins Dumped by the Whales
According to Ran Neuner, the host of the popular YouTube channel “Crypto Banter,” altcoins are currently being dumped by the whales, adding additional supply pressure to the market. He believes that this is the reason why certain altcoins have sold off more than others. Neuner pointed out that the worst-performing tokens right now belong to Voyager, a crypto brokerage firm that owes its creditors $500 million.
The graph indicating Voyager’s Ether balance shows a sharp decline in the last couple of days. They have been sending 7 to 8 figures of crypto to Winter Moon and Coinbase daily. Neuner shared a screenshot of Voyager’s main portfolio, which includes assets like Decentraland (MANA), Phantom (XRP), Apecoin (APE), and Uniswap (UNI).
Neuner stated that the sell-off is putting additional pressure on a lot of these other alts. He warned that it’s much worse for top-end tokens like Shiba Inu (SHIB) and Chainlink (LINK), which are where the majority of the sell volume is happening. However, it’s still putting pressure on many other altcoins.
The Voyager Sell-Off
Voyager has been aggressively selling off its crypto holdings to pay off its creditors. This has put a lot of pressure on the altcoin market, as these assets are getting hit a lot more than other alts. Neuner noted that Voyager-related altcoins are significantly dropping, including Ether, SHIB, and LINK.
The Impact on the Market
The impact of the sell-off is felt more by altcoins that do not have as much volume, do not have as many buyers, and are not as popular. Neuner stated that the sell pressure did not matter when there was enough demand in the market. But with sentiment being so low and buyers not wanting to buy as aggressively, Voyager still needs to sell its assets to pay off its creditors.
Neuner advised investors to be cautious, especially with top-end tokens like Shiba and Link. These tokens are getting hit the most, but other alts are also being affected. The Voyager sell-off is putting additional pressure on the already uncertain market. Investors need to be cautious and keep a close eye on the market to make informed decisions.
Cathie Wood’s ARK Holdings: A Closer Look At The Recent Tesla Purchases
Institutional investors are eager to gain exposure to cryptocurrency at any cost, and Ark Investment has set an example. Recently, Cathie Wood’s ARK Holdings reportedly purchased 13,243 shares of Tesla Inc. (NASDAQ: TSLA). The multi-billion dollar exchange-traded fund (ETF) is placing a significant bet on electric vehicles as part of its investment in disruptive technologies.
It’s worth noting that Tesla holds a significant amount of Bitcoin, making ARK Holdings investors indirect holders of the cryptocurrency.
Let’s explore this latest update in greater depth.
Ark Invest Bets Big on Tesla
Since the calendar flipped, Cathie Wood has made several purchases of Tesla shares. The first purchase was made on January 3, of about 144.776k TSLA shares according to data provided by Cathiesark.com. The second batch was announced on January 6 about 24.506k TSLA shares. The third purchase was completed on January 10, of about 75.565k Tesla shares. The fourth purchase was made on January 11, of about 69.060k Tesla shares.
The fifth purchase of Tesla shares by ARK holdings this year was made on January 13 for about 168.989k. The second latest purchase was announced on January 18 of about 32.447k Tesla shares.
The Bigger Picture
According to market data provided by MarketWatch, Tesla shares have risen approximately 16% year-to-date (YTD), but have dropped about 53% over the past year. Despite this, Cathie Wood remains extremely bullish on the electric vehicle company led by Elon Musk. Following the recent purchase, Ark Invest now owns approximately 0.13% of Tesla, which represents a weighting of about 7.67% in the former’s fund. The company is convinced that Tesla will outcompete its rivals due to its cutting-edge technology.
Ark Invest is bullish on the price of Bitcoin and the underlying blockchain technology that supports the cryptocurrency market. Additionally, the firm has made several significant purchases of Coinbase Global Inc. shares in recent times. On the other hand, Ark Invest has adopted a wait-and-see strategy on Grayscale’s GBTC following the issues faced by Genesis Trading, a sister company at Digital Currency Group.
Cathie Wood’s ARKW Holdings is Bullish on Coinbase But Hawkish on Grayscale’s GBTC
Cathie Wood’s ARKW Next Generation Internet ETF has made a series of purchases on Coinbase Global Inc. shares in the past two months and kept a hold position on Grayscale Bitcoin Trust (GBTC). According to daily updates from cathiesark.com, ARKW Holdings has added more than 112k Coinbase shares since November 9, 2022.
The latest Coinbase share purchase happened on January 5, 2023, amounting to 27.83K shares. However, ARKW Holdings had offloaded over 174k Coinbase shares on July 26, a time when Bitcoin was at its lowest, around $15.5k
On the other hand, ARKW Holdings purchased GBTC shares twice in 2022 in mid-November. Notably, ARKW purchased a total of 450K GBTC shares in November last year, with the previous one on July 20, 2021.
According to Cathie Wood, her investment company is closely monitoring the FTX implosion that has overflowed to DCG through Genesis Trading. Digital Currency Group is the parent company of Grayscale, Genesis Trading, and Coindesk, among others.
Particularly, the United States Securities and Exchange Commission (SEC) filed charges against Genesis Global Capital LLC and Gemini Trust Company LLC for offering and selling unregistered securities to retail investors through Gemini’s Earn product.
“This crisis raises a few vexing questions. Instead of Coinbase’s unlaunched Lend, why didn’t the SEC target Earn, the product that Gemini already had launched, which could have protected 340,000 investors from as much as $900 million in losses? Perhaps more importantly, why didn’t its legal counsel recommend that Gemini unwind Earn in response to Coinbase’s Wells Notice on Lend?,” Ark Invest noted in a recent post.
Notably, Grayscales GBTC is exchanging at 40 per cent below the Bitcoin value according to data provided by ycharts. According to our latest crypto price oracles, Bitcoin is exchanging around $23k on Monday.
Time To Offload Your Bitcoin Holdings ? Here’s What Peter Schiff Has To Say
The largest cryptocurrency by market capitalization, Bitcoin, extended its winning streak to nine days and hit an intraday high of almost $18,078. The second-most valuable cryptocurrency, Ethereum, rose over 4% to $1,384 as a result of the increase in Bitcoin.
In a recent tweet, Bitcoin critic Peter Schiff requested Bitcoin hodlers to sell before the release of the CPI data, suggesting that a rise in the price of Bitcoin beyond $18,000 would be a great time to sell their holdings.
“Bitcoin is trading above $18K, its highest level in 3 weeks, an excellent opportunity for HOLDers to sell ahead of the release of the Dec. CPI. Gold is only up $10, trading at an 8-month high. While Bitcoin has already broken down, gold has broken out. Time to drop Bitcoin,” Schiff wrote in a tweet.
Cantering Clark, a pseudonymous crypto expert, noted in a tweet that BTC and CPI now have an intriguing relationship.
He wrote, “The way I see it, maybe CPI offers a better entry, but if not and we pop up further, I think it is enough to say momentum and trend systems will begin to shift heavily.That 20 week moving average is really important to me.Big ships turn slowly.”
Some cryptocurrency analysts are still unsure about what to make of the CPI figures, though. CryptoGodJohn advised market participants to be cautious when using the “bull posting.” While acknowledging that inflation may push BTC up to $19–$20k, he pointed out that if expectations are off, traders may suffer significant losses.
In December 2022 (from 7.1% in November), inflation in the US is predicted to have dropped for the sixth consecutive month, reaching 6.5%, its lowest level since October 2021.
The CPI is anticipated to level out in the upcoming months after climbing for four straight months and by 0.1% in November.
Here’s Why The Crypto Whales Are Moving Their XRP Holdings
Charles Hoskinson recently stated that he has heard “rumors” that the two-year legal struggle between Ripple and the SEC will end on December 15.
“There are reports that the Ripple case will be resolved on December 15. And, well, we’ll have to wait and see what the outcome is; either way, it may be disastrous for the market.”
FOX Business reporter Eleanor Terrett, though, tweeted back, “It’s not true.” According to a follow-up tweet, the reporter confirmed that her sources had advised her there was no truth to the story.
Hoskinson’s rumor has impacted the crypto sector and altcoin pricing negatively and has left the XRP community fuming.
Crypto whales trade over 392 million XRP in one day as reports of a settlement in the case between Ripple and the SEC spread.
Recent days have seen information concerning significant XRP moves being shared by Whale Alert, a cryptocurrency whale tracking service. According to the most recent transactions, the whales are moving huge sums of XRP to and from exchanges.
According to Whale Alert, these high-net-worth cryptocurrency investors have moved a staggering 392,764,221 (392.76M) XRP tokens in the last 24 hours.
The significant XRP movement coincides with the spread of reports regarding a potential resolution to the current legal dispute between Ripple and the SEC.
XRP Whale Transfer
According to the information provided by the crypto whale tracking service, the most recent transaction occurred on December 12 – a withdrawal of 38,893,182 (38.89M) XRP worth $14.4M by an unnamed whale.
In addition, two anonymous whales shuffled 188.5M XRP worth $72.83M. Unknown whale withdrew 30M XRP ($11.67M) from Bitso.
Another Binance user withdrew 37,371,039 XRP tokens ($14.14M) to an unknown address.
XRP whales have flipped huge amounts of cryptocurrency since the news spread.
How Will XRP Be Impacted?
Our next move is to sit tight and watch. While this is going on, there is a lot of conjecture regarding the case’s outcome in the surrounding community.
As the verdict draws closer, we can anticipate a direct effect on the XRP prices. Traders need to move cautiously because of the market’s potential volatility. In theory, XRP’s price may rise between 50 and 60 cents. Conversely, pumps and dumps could happen in response to such news, leading to a significant decline in the XRP price.
For blockchain, this will be the next major disaster. If the claims are true, XRP might be directly impacted by a high-profile legal ruling, which is difficult to foresee.
Bitcoin (BTC) Whales Continue To Sell Their Holdings- What’s Going On?
Bitcoin’s price has been trading above $17,000 since the early hours of the day and has been able to maintain its position. The bears have been unable to put significant pressure on the rally as the selling volume has decreased. However, the token still appears to be under significant bearish pressure, according to on-chain data.
Whales holding large amounts of BTC in their reserves play an important role in determining network confidence. However, in the latest update, the whales appear to have sold a significant amount of BTC and continue to sell. This could potentially impact the future price of BTC.
According to data from CryptoQuant, it is clear that whales have been selling their holdings since the Terra-LUNA crisis. These whales, whose holding and spending behaviors help to identify the Bitcoin market cycle, have sold nearly 367,000 BTC since the LUNA collapse. This has contributed to the continued decline in BTC price since June, and is likely to continue to create significant selling pressure on Bitcoin.
Furthermore, the whales liquidated their BTC holdings during the miner capitulation phase in November. The FTX-fiasco also had a major impact on the BTC price. In a bearish market, whale holdings play a crucial role, and it is evident that around 80% of the Bitcoin selloff since June came from whales. This suggests that more bearish pressure could be imminent for Bitcoin.
Elon Musk Reacts on Sam Bankman-Fried’s Twitter Share Holdings
The post Elon Musk Reacts on Sam Bankman-Fried’s Twitter Share Holdings appeared first on Coinpedia Fintech News
According to semafor report, 2 weeks after clinching a deal to buy Twitter for $44 billion, Musk texted Bankman-Fried and invited him to roll the $100 million stake he had owned for a few months into a privately held Twitter. An FTX balance sheet prepared after the takeover closed on Oct. 28, and circulated to investors earlier this month, listed Twitter shares as an “illiquid” asset.
The previously unreported message, which was reviewed by Semafo discloses that Bankman-Fried owns a sizable chunk of a now privately held and debt-laden Twitter. Musk, who has publicly distanced himself from the crypto impresario since FTX failed earlier this month, now counts him as a financial partner in his effort to remake Twitter.
Overall, a few hours after the article was published, Musk himself denied the story, calling it false, and denied that the CEO of what was formerly one of the biggest exchanges in the world was involved in the acquisition of the social networking site.
Bitcoin (BTC) Price May Not Rise Above $20,000 as Grayscale May Liquidate their Holdings Soon
The Bitcoin price continues to trade within the same range, with reduced volatility from the past couple of days. Ever since the price dropped below $20,000, the markets have dropped into a deep bearish well. Therefore, it has become important for the BTC price to reclaim these levels to revive with a bullish trend.
But when will the star crypto rise above these levels? If yes at what levels, one can expect a firm rebound?
The BTC price has undergone a couple of bear markets earlier and marked a new bottom each time. Back in 2015 and 2018, the bear market had squeezed more than 80% from its interim highs. This was where the BTC price rally was triggered that roe high to mark new highs. Therefore, considering the previous price trends, the current bottom is predicted to be around $11,000,
On the other hand, Grayscale is believed to liquidate its BTC holdings as the U.S.Securities, under whose supervision it works, are likely to authorize a one-off redemption for Genesis to meet liquidity needs.
“With all of the SEC’s opposition to GBTC this year, we certainly don’t expect this to happen anytime soon. On the bright side, this also means a low chance of a large one-off BTC selling pressure from this,”
Collectively, Bitcoin price is expected to remain below $20,000 for a long time as the bearish could are set to hover for an extended period. Meanwhile, the bulls may try to keep up the price to some extent but eventually fail as many strong hands may remain away from the markets for a while.
Will Microstrategy Liquidate its Bitcoin Holdings if BTC Price Drops To $12K?
2022 has been disastrous for the crypto space. Yet again, Bitcoin is witnessing one of the most severe crashes and has marked a record as the fifth asset to witness the worst collapse in the history of finance. Bitcoin, which accounts for 41% of the cryptocurrency market, experienced lows that had not been seen since the pandemic’s low two years ago.
When there’s a crash of this magnitude, it’s safe to anticipate that nearly all crypto holders are suffering losses- especially people who joined the game later on. Not only individuals but even firms have also been hit hard. This includes the biggest Bitcoin-owning company, MicroStrategy Inc. It is said to be sitting on unrealized losses from its acquisitions totaling $1.8 billion.
The software firm with headquarters in Tysons Corner, Virginia, and its affiliates, currently control about 130,000 Bitcoin, valued at about $2.2 billion at the time of writing. Each Bitcoin cost approximately $30,369. The total cost of the Bitcoins purchased was close to $4 billion. The corporation is now $1.8 billion in the hole as a result.
Michael Saylor, the executive chairman of the firm, had declared that the business will never sell its Bitcoin. The corporation is sitting on large paper losses as a result of its refusal to sell. Additionally, the business incurred an impairment charge of $917.8 million after reporting losses resulting from the fall in the price of bitcoin earlier this year.
Since Bitcoin is categorized by MicroStrategy as an intangible asset, any decline in its value must be permanently recorded as a loss. If it decides to sell its Bitcoin, it must notify the Internal Revenue Service of any capital gains.
After MicroStrategy reported $1 billion in losses in August 2022, Saylor resigned as CEO to concentrate on the business’s Bitcoin strategy. Since then, the business spent an extra $6 million buying 301 Bitcoins in September 2022. Since then, the average price of Bitcoin has dropped by roughly 15%, meaning that they’re undergoing even larger losses at the moment.
Michael Saylor, however, insisted that compared to cash or gold, cryptocurrencies were less risky investments and shall reap massive profits later.
No Margin Call?
Saylor refuted that MicroStrategy had received a margin call on a $205 million loan with Silvergate Capital that was secured by bitcoin in June 2022. A margin call occurs when an investor borrows money to trade that is a multiple of a predetermined amount known as a margin. The investor must contribute more money to maintain the open position when the value of the margin falls below a certain level.
Saylor stated that unless the price of Bitcoin dropped below $3,500, the business had enough Bitcoin to keep the debt collateralized.
Urgent Need For Crypto Regulations
Saylor stated that the current collapse of FTX is both beneficial for Bitcoin and disastrous for the cryptocurrency industry in an interview with CNBC on November 10, 2022. According to him, unlike exchange-traded tokens, Bitcoin is a commodity that can be self-managed.
He insists that the regulators must provide clearer instructions on how to register a digital security, a digital currency, a digital token, and one’s digital exchange.
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Has Sam Bankman-Fried-Led Alameda Research Dumped Its BIT Holdings?
After Alameda Research started liquidating its BIT holdings, BitDAO[BIT], the token of the Bybit contributor group, dropped by as much as 20% in less than two hours.
BitDAO is a decentralized autonomous organization that aims to level the playing field for everyone by constructing a decentralized token economy. This protocol is run by BIT token holders and is one of the largest and newest decentralized autonomous organizations focused on DeFi. Open finance and a decentralized tokenized economy are the goals of BitDAO.
Bybit CEO Ben Zhou, in an unexpected tweet, alerted the crypto industry to some BitDAO community concerns. He claimed that the sudden dump of its coin by the FTX-sister firm had left BitDAO worried.
Zhou added that the endeavor opposed the existing commitment to not sell their holdings for at least three years.
Consequences, Responses, and Contradictions
The CEO also added a BitDAO community update to his tweet. According to details from the discourse, the neighborhood had requested Alameda to provide evidence that it was not selling BIT.
Sam Bankman-Fried, the CEO of FTX, also runs Alameda Research, a company that was affected by the recent worries about the FTX token’s volatility as the BitDAO community inquired about Alameda’s commitment to holding BitDao (BIT) tokens. This came with a public promise to keep each other’s tokens for three years, or until Nov. 2, 2024.
A Lookonchain transaction on Etherscan revealed that Alameda had transferred nearly $1.6 million to the FTX exchange, requiring documentation.
The BitDAO conversation stated, “If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide how to deal with the $FTT in the BitDAO Treasury.”
In contrast, Alex Svanevik, CEO of Nansen, claimed that Mirana Ventures, a venture capitalist partner of Bybit and not Alameda, was responsible for the BIT withdrawals. However, the CEO of the crypto-insight company emphasized that withdrawals did not always imply a sale effort. As a result, it’s possible that neither Alameda nor Mirana took part in the BIT dive.
Alameda Research’s CEO, Caroline Ellison, assured Zhou that there had been no misconduct on the part of the business and that she would provide proof of funds.
“Busy at the moment but that wasn’t us, will get you proof of funds when things calm down.”
It’s interesting how BIT on-chain’s destiny has changed. Santiment said that BIT’s volume had increased by an astounding 170% in the previous day.
This suggested that the network had received more funding. As a result, an increase was anticipated to follow. That was also the case because, by the time of publication, BIT had recovered and was trading at $0.40. Additional information revealed that Alameda played a significant role in the token comeback.
Caroline appeared to have positively acknowledged the Zhou and BitDAO request, which resulted from Lookonchain’s revelation.
He said that, as of press time, the CEO of Alameda had transferred $182.4 million. It was quite likely that BitDAO would decide against selling the $3.3 million FTT that they currently had.
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Binance Plans To Liquidate Its FTX Holdings, FTT Price Drops 5%
While most of the cryptocurrencies are enjoying a bull run for more than a week, FTX’s native token, FTT, was hit with severe volatility after Binance’s recent move. On Nov 6, Binance CEO Changpeng Zhao announced that Binance had begun liquidating FTT tokens after which the FTT declined nearly 9.4%.
Also it’s a known fact that FTX uses FTT as collateral for various loans and because of which there is a fear of another crypto crash. At the time of writing, FTX token is selling at $22.16 with a fall of 4.38% in the last 24hrs.
Now, with Binance’s decision to liquidate all of its FTX tokens might bring another Terra LUNA like crypto crash.
Binance To Liquidate All Of Its FTT Tokens
Basically, the FTT tokens that Binance holds are the assets that are received as part of its exit from an early investment in FTX. However, CZ claims to liquidate its holdings gradually so that the crypto market is not impacted.
As per the reports, Alameda research, a trading firm that is owned by Sam Bankman Fried (SBF) was holding more than $3 Billion worth of FTX exchange unlocked token on its balance sheet. Here, FTX exchange is the one that issues FTT tokens and FTX is also owned by SBF.
Though there is no proper reason for Binance’s move against SBF and FTT token, one reason might be because Binance considers holding FTT token on their books as liability.
Now, after Binance other market participants have joined, such as Jump Trading, has withdrawn nearly 40.4 million USDC from FTX exchange . Also around $109.8 million worth of cryptocurrency has been moved from FTX exchange to Nexo, a crypto lending platform which also includes 56,432 ETH and $13.9 million in stablecoins.
However, FTX CEO SBF has asked its users not to panic as all the withdrawals are working well. He also claimed that FTX and its group of companies have audited financial data.
The news is definitely hampering FTT token’s performance and currently $20-$21 is the major support area. If the token falls below $20 there will be more downfall ahead.
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DOGE Price : Dogecoin To The Moon! Is This The Right Time To Increase Your Holdings?
The recent acquisition of Twitter by Tesla CEO Elon Musk is sparking surges in his favourite cryptocurrency Dogecoin.
According to CoinMarketCap, Dogecoin has become highly traded in the crypto market as it gained over 70% in its value in the last few days and nearly 30% in the last 24 hours.
Starting as a joke, it now seems that investors are gaining trust in Dogecoin as Elon Musk successfully established himself on Dogecoin to be a reason for investment.
DOGE Gains Traction
The ongoing crypto winter is now fading away as several cryptocurrencies, including leading digital assets and altcoins, are now benefiting from the rally- surges that are led by Bitcoin, Ethereum and Dogecoin.
The current interest rate hikes to control unexpected inflation rates have brought the worst price levels to leading altcoins like Dogecoin.
However, there are some key factors pushing the community-favourite meme coin to the North. Dogecoin supporter Elon Musk’s recent acquisition of Twitter worth $44 billion sent Dogecoin to double-digit gains today.
Furthermore, the billionaire Musk also made a proposal previously to digitize the payments on Twitter with crypto by adding Dogecoin as a payment method.
Since then, whale investors have started accumulating Dogecoin in their investment portfolio with the hope of making lucrative profits.
According to the Dogecoin whale alert, the top 20 wallets of Dogecoin have moved over 400 million Doge tokens to crypto exchanges as DOGE price hits monthly highs.
Dogecoin has also introduced ‘The Great Burn’ event to burn 80% of the total supply to stabilize the price movement with solid liquidity.
Dogecoin Takes The Lead
The popular meme coin is currently taking the lead in forming continuous bullish candles in the price chart. Dogecoin’s price currently trades at $0.114 with a market cap of $14 billion.
Looking at the daily price chart, Dogecoin has broken its crucial support level at $0.088 and successfully trades above $0.1 as per our previous analysis.
Our technical analysis reveals the Bollinger band’s upper limit is at $0.13; if the DOGE price breaks the resistance at $0.13, we can see its price extend its bullish momentum further to $0.181.
The RSI is trading at an extremely high level of 90, which indicates the complete domination of DOGE bulls.
The MACD line is also rising exponentially as Dogecoin trades above the EMA-200 trend line.
However, we may expect a slight bearish candle soon as DOGE may make a minor downward retracement at a price of $0.119. SMA-14 (simple moving average) is trading at 57, indicating a smooth bull run for Dogecoin.
DOGE may hold its bullish momentum further as the current market sentiments are positive and can be an excellent investment option for long-term holders.
However, Coinpedia advises investors to do their own research and consult the opinions of the experts before investing in volatile crypto assets like Dogecoin, which can erase all your funds.
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Ripple’s Q3 Report Released, XRP Holdings Drop Below 50%
Ripple’s XRP has been facing a pump-and-dump pattern for a long time. Over just 24 hours, the sixth largest cryptocurrency has surged up to $0.47 and has also plunged near $0.45, which indicates that though the currency is moving to and fro continuously, the asset refuses to give up its $0.40 level.
Currently, Ripple’s XRP is selling at $0.46 after losing 2.03% in the last 24hrs. The immediate resistance for XRP is positioned at $0.50, and the support is around $0.40.
XRP Holdings Drop
It has been observed that the XRP holdings have slipped below 50% of its total circulating supply; this is the first time this has happened since the XRP Lab formation. In the Q3 report, published on Oct 27, Ripple has been criticized for giving complete ownership over its XRP ledger.
However, this claim is denied by Ripple; instead, the company states that the XRP Ledger uses Federated Byzantine Consensus to validate the transactions. This indicates that no matter how many XRP a validator owns, he will receive only one vote.
Ripple’s CEO also stated that the more customers make use of XRP in their payments, the more real-world utility shall be established.
The report also claims that XRP’s net sales for Q3 have dropped to $310.68 million from Q2’s $408.9 million. On the other hand, Ripple asserts that it has expanded the XRP payments in Q3 through a partnership with Travelex, a forex company. This deal with Travelex will allow XRP transactions between Brazil and Mexico.
Meanwhile, in the long-running battle of Ripple vs SEC, Ripple gained a major victory after the US court ordered the US Securities & Exchange Commission to hand over Hinman documents.
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Coinbase CEO To Sell 2% Of His CoinBase Holdings For Scientific Research
The post Coinbase CEO To Sell 2% Of His CoinBase Holdings For Scientific Research appeared first on Coinpedia Fintech News
Coinbase CEO Brian Armstrong confirmed plans to sell his 2% stake in the crypto exchange firm Coinbase in a tweet on October 15 to fund other firms he co-founded. Armstrong states he is positive on crypto and Coinbase, and that he is totally committed to developing the crypto exchange company and advancing its goal.
He does, however, aim to contribute to science and technology in order to tackle the world’s biggest challenges. As a result, he intends to sell his 2% interest in Coinbase in order to support scientific research as well as the companies NewLimit and ResearchHub.
He holds 16% of the company’s stock and 59.5% of the voting rights in Coinbase, according to the company’s 2022 proxy statement.
Tether Strives To Regain Community Trust, Slashes Commercial Paper Holdings
In an effort to increase transparency, Tether has recruited a new accounting company to undertake routine audits and attestation reports to guarantee that its stablecoin is appropriately backed by US dollars. As of September 30, 2022, Tether, the company that issues stablecoins, had less than $50 million’s worth of commercial paper units in its portfolio.
Unsecured, short-term debt instruments known as “commercial paper” are issued by corporations. It is frequently employed to finance short-term commitments like payroll, accounts payable, and inventories. While treasury bills are touted as more reliable than commercial papers, they offer “zero default risk” because investors are assured of recouping the purchase price.
Tether’s chief technology officer Paolo Ardoino made the statement in a tweet on October 3 and added that the percentage of US Treasury bills in Tether’s overall portfolio grew to 58.1%, up 25.1% from the 43.5% it held as of June 30.
To increase the stability of its ecosystem and the USDT stablecoin, Tether stated in June that it planned to roll USDT’s commercial paper backing into short-maturity U.S. Treasury bills, eventually reducing it to “zero.”
To increase transparency and frequently provide audit and attestation reports, it recruited BDO Italia, a European accounting firm, as a new auditor to independently assess its stablecoin reserves in July.
The United States District Court in New York ordered Tether to prove that the USDT stablecoin was backed 1:1 by US dollars on September 19.
Tether is well along the way to selling off all of its holdings of commercial paper by the end of 2022, having reduced its reserves from 20 billion units in Q1 2022 to 8.4 billion units in Q2 2022.
As of the writing of this article, USDT is trading at $1, with a market value of $70,163,891,644, and a 24-hour trading volume of $41,421,937,703. There is a market supply of 67.95 billion USDT. All the indicators are displaying a bullish momentum at the moment.
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Will Celsius Network Sell Nearly $23 Million Worth of Stablecoin Holdings?
Bankrupt cryptocurrency lender Celsius is getting conscious of its users and future operations. Celsius filed for bankruptcy in July after a long battle resolving issues, leaving the once top crypto lending firm with nearly $3 billion in liabilities. Being at the chapter 11 bankruptcy proceedings, Celsius has requested the court to sell its holdings of stablecoin to fund its operations by earning liquidity, according to new court filings.
Celsius In Extreme Fear
Celsius is getting woes about the uncertainty of its future operations and dominance in the crypto market. The users of the lending platform are not even sure whether they will see their crypto that is locked in the platform.
Celsius was established in 2017 and became one of the first and largest cryptocurrency platforms where users could deposit their owned crypto assets to generate rewards or get loans using their assets as collateral. Celsius has attracted more than 1.7 million registered users and nearly 300K active users, with its 18% interest rate.
Celsius currently has eleven different forms of stablecoin, whose value is nearly $23 million. The stablecoin is owned by Debtor Celsius Network Limited (UK), Debtor Celsius Network LLC (US), and non-Debtor Celsius Network EU UAB (LT).
The court filing stated, “The Debtors, however, continue to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies.”
Restore Celsius’ Reputation
The CEO of Celsius network, Alex Mashinsky, believes that the selling of stablecoin will help the firm to begin its business in a proper way. If the presiding Judge Martin Glenn, the Chief U.S. bankruptcy judge, approves the filings, then the selling amount of stablecoin would initially be used for paying for the operations in the Celsius network.
In addition, the selling amount would also be used to pay back the Debtors’ estate, a part of Celsius’ bankruptcy process. Recently, Celsius’ bankruptcy judge gave permission to conduct an independent examination of the crypto lending firm.
The failure of the revolutionizing crypto lending firm Celsius became one of the main reasons behind the crypto market crash. Alex Mashinsky held a meeting with Celsius’ staff on 8 September to rebuild the firm in a new way. Celsius now wants to offer custodial services to users, and it needs to build trust in the crypto market to regain its position.
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Bitcoin Whales Move Holdings, Cause Immense Market Disruption and Speculation – Coinpedia – Fintech & Cryptocurreny News Media
The term ‘Whale’ refers to a trader in financial markets with a significant amount of capital. Due to the large size of a whale trader’s position, these investors are in a position to influence markets to move in either direction when they make large buy or sell orders.
In the last 10 days, the Bitcoin network witnessed suspicious activity by Bitcoin whales as they moved around 15,000 BTC. The most significant difference between regular coins and the moved amount is the date they were last spent. Most of these coins belonged to investors who purchased BTC back in 2014.
Are The Whales Responsible For The Price Drop?
Technically speaking, a one-time injection of 15,000 BTC on the market could have caused a major plunge in the first cryptocurrency and issues with liquidity. However, despite the significance of the net amount, it could not possibly be the sole reason for the recent plunges in the asset.
CoinGlass reported that the cryptocurrency market saw more than $350 million in liquidations in the last 24 hours. While the amount may be seemingly huge and important, the gradual selling of 15,000 BTC on the market could not have led to such a large spike in liquidations.
As reported recently, whales moved most of their older funds to the Kraken exchange and probably tried to sell them ahead of the large price drop. However, most experts believe that the main reason behind the correction is linked to the upcoming interest rate hike and the continuous strengthening of the monetary policy.
Will BTC Survive The Crisis?
Bitcoin is consolidating at July’s level and has not yet dropped lower than that. It is clear that the current price level still corresponds to a strong psychological and historical support level, which may help prevent the cryptocurrency from sinking.
The majority of sentiment indicators returned to extreme fear. Bitcoin’s Relative Strength Index shows that the asset is already oversold. But, it can still drop even lower if new macroeconomic factors weigh heavily on the crypto market.
As of today, Bitcoin (BTC) is trading at 18,796, down by almost 6% at the time of writing
How Can One Track Whale Activities?
The impact of the whales can be felt the most in the Altcoin market. In crypto assets with market capitalizations of less than $100 million, the market will move substantially if a ‘HODLer’ decides to sell a part of their portfolio, or if a large buyer comes on board.
It is important to be aware of the wealth distribution of smaller Altcoins before investing in them. Also, you must keep a close eye on order books to see whether there are any whales.
In order to identify whales, the first thing you can do is monitor the wallet addresses of the largest holders as well as exchange wallets to stay alert of any significant shifts in cryptocurrency.
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Here’s Why Ethereum Whales Are Moving Their Holdings With Merge On Horizon
Recently, the ETH whales have been seen moving their holdings to on-exchange addresses with a recent drop in the holdings of non-exchange addresses. The movement can be owed to the upcoming Merge scheduled to happen this month.
According to the on-chain analytics firm Santiment, the Ethereum supply within top exchange addresses climbed as traders dumped their holdings onto large exchanges amidst the 2022 market decline.
In the most recent development, a crypto whale just transferred 64,000 Ethereum (ETH) worth over a hundred million dollars to an unknown wallet.
The deep-pocketed crypto holder transferred $102,134,766 worth of ETH to an unknown address, the blockchain tracking platform Whale Alert recently reported. The unknown wallet still holds the transferred assets at the time of writing.
Ethereum network explorer Etherscan disclosed that the depositing wallet is owned by the US arm of the world’s leading crypto exchange platform – Binance.
The initial big transaction was followed by another follow-up transaction to the same unknown wallet after two hours when it moved15 ETH worth $23,988.
“64,000 ETH (102,134,766 USD) transferred from unknown wallet to unknown wallet.”
Earlier this week, Whale alert also reported several other massive crypto transfers:
- 20,054 ETH worth $30l,702,630 from an unknown wallet to Huobi
- 6,601 ETH worth $10,090,502 from an unknown wallet to OKX
- 19,999 ETH worth $31,572,906 from an unknown wallet to FTX
- 6,703 ETH worth $10,340,527 from Gemini to an unknown wallet
Ethereum Whales Prepping For The Merger?
Earlier this month, Crypto analytics firm Santiment revealed that Ethereum whales seemed to be accumulating ETH as the price of the leading altcoin surged to a new high since June. The price surge could be owed to the announcement of the ETH 2.0 Upgrade in September.
“Ethereum surged back over $1,880 after a positive CPI report Wednesday. This two-month high in price came with a major influx of ETH transactions valued at $100,000 or more. This is happening in tandem with whale addresses appearing to be accumulating.”
Notably, there has been activity in on-exchange addresses too. According to a report that recorded the activity over the last three months, there has been a drop of 11% in the assets of Ethereum in non-exchange addresses. During the same time, there was a whopping 78% increase in the holdings of whale on-exchange addresses.
“Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings onto large exchanges during the 2022 slide. Watch for a decline in top $ETH exchange address holdings as a bullish signal,” Santiment reported on August 3.
ETH is currently making a transition for 1,545.73 USD, a 0.54% drop on the day.