FTX Legal Saga: Federal Judge’s Ruling Impacts Sam Bankman-Fried’s Defense Strategy
Sam Bankman-Fried’s defense team faced a crucial ruling from Federal Judge Lewis Kaplan, the overseer of his case. The judge said that, at least in the beginning, Sam and his legal team couldn’t blame the fact that lawyers from FTX company approved his decisions as the CEO.
But there’s still a chance for Sam to use an “advice-of-counsel” defense later on. Sam is now facing a trial because of severe charges like wire fraud, money laundering, and illegal political donations. The judge’s recent decision has complicated things for Sam and his defense.
Federal Judge Lewis Kaplan Court’s Decision
Federal Judge Lewis Kaplan has ruled in a 10-page memo that during his opening statement, SBF’s defense team can’t make a big deal about lawyers from the law firm Fenwick & West. This decision comes after SBF’s defense team signaled their intention to argue that lawyers from both FTX and Fenwick & West had supported the decisions made by the CEO.
The judge was concerned that making such an argument without giving specific details might confuse or unfairly influence the jury. So, for now, the defense team can’t talk about outside lawyers during the opening statement.
However, they can bring it up later in the trial, but only if they inform both the judge and the Department of Justice in advance and ensure no jurors are around when they discuss it.
DOJ Raises Doubts on SBF’s Claim of Attorney’s Involvement in FTX
SBF’s defense team had previously shared their strategy, saying they would argue that lawyers were involved in various aspects of FTX’s operation. These included decisions like using auto-deleting messaging apps like Signal, creating something called the “North Dimension,” FTX’s banking relationship with Silvergate Bank, loans given to FTX and Alameda Research executives, business agreements within the company, and FTX’s terms of service.
However, the Department of Justice didn’t buy the defense’s argument. They said it didn’t have enough detail to back it up and suggested it should be left out of the trial.
Judge’s Questions and Trial Details
In his decision, Judge Kaplan asked important questions, like how much SBF’s defense could talk about lawyers during the trial. He also wanted to know when it might be wrong to suggest that lawyers approve specific actions and what rules apply when presenting evidence on these matters.
Meanwhile, the trial is all set to begin on October 3 with the jury’s selection. If SBF is found guilty, he could face serious consequences, like spending many years in prison.
Binance.US Faces Crossroads: Hibernation Strategy or Share Sell-off?
The crippling space of Binance US faced a critical decision regarding its future. Here’s the inside scoop on what transpired: The company explored the possibility of selling shares held by Binance co-founder Changpeng Zhao (CZ) to stay on track with its growth plans. However, it ultimately opted to reduce its workforce by one-third instead. Is the company going on hibernation mode what is going on with Binance at present? Let’s find out.
According to the Block, Binance US was reportedly considering selling shares controlled by CZ, the co-founder of Binance, as a strategic move to align with its growth objectives. This decision came in the aftermath of regulatory scrutiny, particularly the lawsuit filed by the Securities and Exchange Commission (SEC) against Binance, which alleged that Zhao had the ability to “divert customer assets” at will. Binance, in response to the lawsuit, had expressed its strong intent to defend its platform vigorously.
In response to the layoffs, Binance.US layoffs are part of the growth strategy and this will help the company to gain seven years of financial stability, according to a spokesperson. This comes after Binance, the parent company, let go of over 1,000 employees in a bid to enhance organizational agility for the upcoming market cycle.
Binance’s Multi-Pronged Approach to Deal with US Regulators
During a company-wide meeting, Binance US employees were presented with a range of options for the company’s path forward.
- The first option involved proceeding with their existing plans but necessitated CZ resolving his issues with US regulators, placing his shares in Binance US under a blind trust, or selling them outright.
- The second option described a scenario where the company would need to curtail its expenditure while continuing to invest in the platform despite market challenges.
- The third option was to enter a hibernation phase. This approach aimed to enable the company to sustain its business operations and licenses while navigating the regulatory challenges.
According to the Block reports, Binance US ultimately chose the third option, which coincided with recent layoffs at the cryptocurrency exchange.
Will the Hibernation Strategy work for Binance?
At this point, Binance can only opt for “hibernation mode” until there’s a notable improvement in the company’s financial position. This will surely cut down the expenses while keeping regular business operations and licenses intact.
Since the SEC’s lawsuit, Binance.US has faced considerable challenges. Business activity has declined, with customers no longer able to use U.S. dollars for cryptocurrency purchases on the platform. Their monthly trading has also sharply dropped, going from $10.6 billion in January to just $70 million this month according to the company’s report.
Binance’s Strategy Against SEC’s Information Request – Binance vs. SEC Update
In a dramatic turn of events, cryptocurrency exchange giant Binance has filed for a protective court order against the United States Securities and Exchange Commission (SEC). The move is aimed at limiting the SEC’s aggressive discovery efforts, citing concerns of “overly broad” and “unduly burdensome” information requests. This legal battle has caught the attention of the cryptocurrency world and raises questions about the implications for the industry.
The Protective Order Motion:
Binance’s latest motion for a protective order seeks to curtail the SEC’s efforts to obtain extensive information and depositions. This development is Different from the previous actions, including a joint motion filed on September 11, 2023, which aimed to restrict access to sensitive documents classified as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – ATTORNEYS’ EYES ONLY.”
Additionally, an earlier sealed motion from August 28, 2023, and its supporting submissions have added complexity to the unfolding legal drama.
The Dispute:
The dispute between the U.S. SEC and the various entities affiliated with Binance is not uncommon in SEC litigation. The oversight of the case has been assigned to a Magistrate Judge, a standard procedure in such matters.
However, one aspect of the ongoing dispute stands out as rather unusual and even questionable. BAM Trading, the operating company of Binance U.S., along with BAM Management, is seeking to limit the SEC to conducting only four depositions of BAM employees and to drop the deposition requests for six witnesses, including BAM’s CEO Brian Shroder and its CFO, Jasmine Lee.
Unprecedented CEO and CFO Limitations:
The move to limit depositions of BAM’s CEO and CFO is raising eyebrows, as it appears to be an extraordinary step.
John Reed Stark, drawing on his extensive experience at the SEC, including 11 years as the head of the SEC’s Office of Internet Enforcement and his knowledge of securities law, cannot remember a single instance where a court declined the SEC’s request to interview a CEO or CFO, especially when dealing with a temporary restraining order (TRO) and consent order.
Adding an intriguing twist to the situation, Brian Shroder, BAM’s President and CEO, reportedly resigned on the same day that Binance’s legal team filed a motion opposing the SEC’s deposition request. This timing has led to speculation and questions about potential connections between Shroder’s departure and the legal battle.
Management Changes at Binance U.S.:
Following Shroder’s departure, Norman Reed, Binance U.S.’s chief legal officer, is taking over his role. This transition coincides with reports of Binance U.S. conducting layoffs, affecting over 100 positions, which accounts for one-third of its workforce. Binance attributed these layoffs to the SEC’s actions, claiming they have had a detrimental impact on American jobs and innovation.
Whistleblower Opportunities:
Despite Binance’s allegations that the SEC is responsible for its current troubles, Shroder’s departure presents an opportunity for the U.S. SEC and the U.S. Department of Justice (DOJ) to secure his cooperation, especially if he has concerns about potential criminal prosecution or is disgruntled.
The situation may also create challenges for the U.S. SEC regarding attorney-client privilege, given that Norman Reed previously served as an internal legal officer for Binance.
Moreover, the 100 employees laid off by Binance may provide ample material for cooperation agreements, grand jury testimony, and confidential information sharing. This development raises the specter of potential whistleblower claims against Binance, which could lead to substantial financial rewards for those involved.
The clash between Binance and the U.S. SEC is sending shockwaves through the cryptocurrency industry. As legal battles intensify and management changes unfold, the implications for Binance and the broader crypto ecosystem remain uncertain. The outcome of this confrontation may set significant precedents for the future regulation of cryptocurrencies in the United States and around the world. In the cryptoverse, where chaos and confusion often reign, this legal showdown is certainly a situation worth monitoring closely.
SEC’s Reply Memo in Ripple Case: A Laughable Strategy or a Clever One?
In a surprising turn of events on Friday, the U.S. Securities and Exchange Commission (SEC) made a 29-page filing in a bid to seek an interlocutory appeal to pause the entire case against Ripple. The SEC’s argument centers around its claim that Ripple is deliberately prolonging the case to maintain XRP sales, even after filing an appeal that could further extend the legal proceedings.
What is the SEC Upto Now?
John Deaton, the Lawyer and founder of CryptolawUS, commented that the SEC’s recent actions, including filing an interlocutory appeal and a motion for a stay, are not only contradictory but also counterproductive to their own claims of seeking a swift resolution.
He stated, “The SEC’s professional embarrassment continues,” accusing the regulatory body of wasting judicial resources rather than conserving them.
Also Read: Will the SEC’s ‘Lamentable’ Approach Be Replaced By Congress’s Strong Hand? Experts Discuss
James K. Filan added to the dialogue. He points out that the SEC’s argument appears inconsistent and raises questions about the agency’s approach to the case. He likens it to previous controversial arguments made by the SEC, such as claiming that William Hinman’s speech was not guidance and asserting attorney-client privilege for Hinman’s communication.
“The SEC’s argument that Judge Torres should stay the proceedings because the SEC is suddenly concerned about conserving judicial resources is laughable.”
The Howey Test Remains Front and Center
At the core of this lawsuit is the SEC’s application of the Howey Test to determine whether XRP, Ripple’s native token, constitutes a security. In a somewhat surprising claim, the SEC posits that Ripple’s defense did not cite a single Howey-related opinion to contest the legal questions involved in the case.
As John Deaton points out, the pursuit of an interlocutory appeal itself stands to add a procedural layer to an already complex case. He predicts that the agency will inevitably lose ground, especially when it comes to applying the common enterprise factor to programmatic and secondary sales of XRP. Judge Torres is likely to uphold her decision, and the SEC will face another setback.
The Real Victims are the XRP Investors
What’s glaringly absent in this unfolding drama are the real victims: millions of XRP investors. As Ripple’s XRP remains in a state of uncertainty due to the ongoing legal disputes, the SEC appears unfazed by the fallout. Gary Gensler and his SEC team seem to have little concern for the widespread impact their actions are having on market stability and investor trust. And isn’t this all supposed to be to protect the users? A little contradictory, don’t you think?
Read More: Crypto vs. SEC: Will SEC Chair Gary Gensler Resign? Ron Hammond Weighs In
As the SEC vs. Ripple case unfolds, the SEC’s latest maneuver appears to be causing harm to investors instead of safeguarding their interests. The cryptocurrency industry is in dire need of regulatory clarity, especially considering the growing scrutiny it faces.
MicroStrategy Co-founder Stays Bullish on Bitcoin Strategy!
Michael Saylor, MicroStrategy’s co-founder, has stated that his firm will continue to accumulate Bitcoin regardless of the approval of exchange-traded funds (ETFs). Saylor believes that MicroStrategy’s Bitcoin operating strategy sets it apart from spot ETFs. The company has more than 470 institutional shareholders and intends to sell up to $750 million in class A common stock, with the primary use of the proceeds being to acquire more Bitcoin. The firm’s existing holdings of 152,800 BTC are expected to increase in the coming quarters. Analysts have raised the chances of spot Bitcoin ETF approval in the US to 65%.
Shiba Inu Breaks Out of a Bullish Pattern, Yet Investors Appear to Carry a Diverse Trading Strategy!
The crypto space is diving into a fresh bearish wave at the beginning of August 2023 as the global crypto market capitalization slides down to $1.16 trillion. The Bitcoin price dropped below $29,000 again, marking acute weakness among the bulls as they have been constantly failing to lift the price above $29,500. However, being a little diverse, ShibaArmy geared up strongly, lifted the Shiba Inu price fairly, and held it within the pivotal zones.
Also Read: Bitcoin Price Prediction August 2023: BTC Adoption Climbs High, Price May Hit $40,000 Soon
After experiencing massive selling pressure of over $12 trillion in June, leading to a single-day drop of over 20%, the SHIB price managed to rebound and maintain a consolidated upswing. The price further rose and reached a crucial juncture during the month-end, wherein a breakout was the need of the hour. However, the SHIB price failed to do so but is flashing extreme bullish signs that may eliminate a zero from its value very soon.
As mentioned in the above chart, the SHIB price rose above the descending trend line and, after surpassing the crucial resistance, is undergoing a minor retracement phase. Until the price sustains above these support levels, the possibility of a bullish rebound looms over the memecoin. Besides, the strength of the rally, ADX or Average Directional Index, has triggered a bullish divergence, which suggests the bulls may soon regain their power.
Investors Bullish on Shiba Inu
Investor sentiment has been proven to be a critical indicator of an upcoming trend in recent times. As a result, a surge in bullish sentiments can be measured either by the token’s social volume or by the investor’s “holding mentality.” In a recent update, a huge amount of SHIB tokens have been flown out of exchanges, suggesting that the traders are extremely bullish over the token’s impending rally.
As per the data shared by an analyst, Ali, nearly 3.30 trillion SHIB have been withdrawn from known crypto exchanges, which is worth around $28 million. This suggests the traders have no intention to perform a trade using SHIB tokens and may hold it for a long time. This may positively impact the price, which may be fueled by the launch of Shibarium, which is in the Beta phase at the moment.
Bitfinex Unveils Miners’ Dual Strategy: Bullish Betting & Protective Hedging
In the high-stakes world of Bitcoin mining, paradox reigns supreme. A recent Bitfinex market report spotlights a curious trend: miners demonstrating bullish behaviour by escalating their Bitcoin investments while simultaneously hedging bets amidst market volatility.
Mining and Hedging: The Dual Approach
Bitfinex’s deep dive into the Bitcoin mining sector illuminates an interesting pattern of behavior. Miners, while bolstering their Bitcoin commitments, have been offloading copious amounts of BTC onto exchanges. These sell-offs correlate with an uptick in Bitcoin mining companies’ share values, demonstrating increased institutional interest in BTC as we move further into 2023.
Out front leading the charge in the sell-off race is Poolin, responsible for a significant share of the Bitcoin sold off recently. Conversely, the record-breaking escalation in Bitcoin’s mining difficulty signifies miners’ robust confidence in the cryptocurrency’s prospects.
Bitfinex explains this seeming dichotomy by stating, “Miners are bullish on Bitcoin as they commit more resources to mining, thereby escalating mining difficulty, but they’re simultaneously hedging their position, hence the influx of Bitcoin to exchanges.”
Navigating the Derivatives Landscape
Bitfinex’s report suggests that the apparent contradiction might be a result of miners hedging their positions on derivative exchanges. The first week of July 2023 saw a noteworthy transfer of 70,000 BTC in 30-day cumulative volume, a volume that indicates a shift in mining behaviour. The report notes, “A transfer to exchanges on this scale is extremely rare and potentially reveals new miner behaviour.”
Decrypting the Miner’s Move
Several hypotheses have been proposed to explain this puzzling behaviour, including hedging activities in the derivatives market, executing over-the-counter orders, or transferring funds via exchanges for other, unknown reasons.
Simultaneously, the soaring mining difficulty signals the arrival of fresh mining power to the Bitcoin network, an encouraging sign of network health and optimism about mining profitability. This scenario, however, leaves miners in an intriguing position where they amplify their mining efforts while cautiously managing their market exposure.
Bitcoin Transfers: A Bull Market Indicator?
Bitfinex’s report further indicates that on-chain Bitcoin movements are transitioning from long-term to short-term holders. This trend is typical in bull market conditions, as new market traders hunt for swift profits while long-term holders take advantage of heightened prices.
As Bitcoin miners continue to bet big while meticulously hedging their risks, all eyes are trained on the impacts this dual strategy will have on the broader crypto market. The delicate balance act carried out by the miners underscores the dynamic nature of the evolving cryptocurrency landscape.
Robert F. Kennedy Jr. Unveils Bold Strategy: Backing Dollar With Bitcoin, Proposing an End to Bitcoin Taxes
In a recent speech at the Heal-the-Divide PAC event, Democratic Presidential Candidate Robert F. Kennedy Jr. unveiled a visionary plan that invites us to imagine a transformed financial landscape for the United States. With a laser focus on Bitcoin, Kennedy proposed policies to back the U.S. dollar with Bitcoin and eliminate capital gains taxes on Bitcoin profits.
Backing the Dollar with Bitcoin: A Welcome Move or a Political Agenda?
Kennedy’s audacious proposal aims to breathe new life into a struggling economy and reshape our understanding of money. By linking the dollar to Bitcoin, he seeks to reinforce its position as the global reserve currency and restore financial stability, combat inflation, and promote prosperity for all Americans.
But what does this mean for the average citizen? How would it impact their daily life? Imagine a future where the dollar gains strength through its connection to a decentralized digital currency like Bitcoin. It could mean reduced inflation, more secure financial transactions, and increased opportunities for economic growth. Your hard-earned money could hold its value better over time, giving you greater confidence in your financial future.
Ending Bitcoin Taxes: Could Be a Boon for Crypto
Additionally, Kennedy’s plan to exempt Bitcoin-to-dollar conversions from capital gains taxes is a bold move that aims to encourage innovation and attract investment. This means that individuals and businesses engaging in Bitcoin transactions would enjoy tax benefits, fostering a vibrant ecosystem of technological advancements and entrepreneurship. Imagine a world where your entrepreneurial spirit is nurtured, and your innovative ideas have a chance to flourish without unnecessary financial burdens.
“My plan would be to start very, very small, perhaps 1% of issued T-bills would be backed by hard currency, by gold, silver platinum or bitcoin,” Kennedy said
Understanding the Risks of Fiat Currency: While drawing inspiration from his uncle, President John F. Kennedy, Robert Kennedy Jr. invites us to reflect on the importance of hard currency and the perils of unchecked fiat money.
Through his proposal, he aims to create a more transparent and accountable system. This prompts us to consider the implications of our financial decisions, particularly when it comes to funding wars and other significant endeavors. It sparks a conversation about the role of responsible governance and citizen involvement in shaping the nation’s financial future.
Amidst a mounting national debt crisis, Kennedy’s proposal to bolster the U.S. Treasury’s holdings with Bitcoin and precious metals offers a safety net against an uncertain future. By diversifying the government’s assets, we can potentially mitigate the risks associated with excessive debt and safeguard the country’s economic well-being.
Bitcoin Is More Than an “Asset”
On the other hand, Kennedy’s unwavering support for Bitcoin marks a significant turning point in politics and finance. It signals a recognition of the transformative potential of digital currencies and blockchain technology. It invites us to explore the possibilities of a future where financial systems are more efficient, secure, and inclusive.
“Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar”
Overall Kennedy’s vision seems to be highly innovative, forward-thinking and will surely bring back the investor faith in the system.
Coinbase Lawyers Highlight Biden’s Student Loans Ruling in SEC Defense Strategy
In a legal filing on Wednesday, lawyers representing Coinbase argued that a recent U.S. Supreme Court judgment on student debt cancellation supports their defense against charges of operating an unregistered securities venue by the Securities and Exchange Commission (SEC).
The SEC had accused Coinbase of breaching federal securities law on June 6, alleging that the crypto exchange had operated without proper registration. Coinbase, in response, contends that the lawsuit is an attempt by the regulator to assert “extraordinary wholesale power” over the $1 trillion digital asset industry, which is now being challenged in light of the Supreme Court’s ruling.
Coinbase refers to the Supreme Court’s decision on June 30, which deemed the cancellation of approximately $430 billion in student debt by the Secretary of Education as an overstep of authority, reinforcing the legal doctrine that government agencies require clear support from Congress when making decisions of significant economic or political importance.
Lawmakers Engage in Debate Over Digital Asset Regulations
The crypto exchange argues that a similar case, known as Biden v. Nebraska, holds relevance to their defense, as lawmakers have yet to establish clear regulations for the cryptocurrency industry. Coinbase asserts that Congress has not delegated regulatory authority to the SEC and is actively considering regulatory frameworks for the digital asset industry.
U.S. lawmakers are currently discussing various digital asset laws, including a bipartisan bill introduced by Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.), which suggests granting authority to the Commodity Futures Trading Commission (CFTC) instead of the SEC.
The SEC contends that digital assets, including tokens associated with Solana (SOL), Cardano (ADA), and Polygon (MATIC), fall under regulated securities and claims that Coinbase knowingly violated the law by not registering its activities. Similar allegations have been made against competitors Binance and Bittrex, with all three companies denying the charges and asserting that the SEC lacks jurisdiction.
Later today, the parties will meet for a preliminary hearing in a New York courtroom, marking the beginning of a potentially protracted trial. In a separate case, Coinbase recently obtained a victory in the Supreme Court, where it was ruled that a lawsuit filed by a user against the exchange would be stayed pending an appeal.
Bernstein Analysts Discuss MicroStrategy’s Bitcoin Liquidation Strategy Amidst Significant Price Movements
According to a report by brokerage firm Bernstein, MicroStrategy (MSTR) may need to liquidate its bitcoin (BTC) holdings only in the event of significant price corrections, particularly as its debt is set to expire in mid-2025.
The report highlights that higher bitcoin prices would strengthen MicroStrategy’s balance sheet, increase its stock price, and make debt repayment easier, eliminating the need to sell its cryptocurrency holdings. Additionally, a robust Bitcoin price and higher stock value would enable the company to raise new debt or equity and redeem existing convertible notes.
Conversely, if bitcoin experiences a severe decline and reaches extremely low prices, and if the value of MicroStrategy’s cryptocurrency assets fails to cover its debt and certain covenants beyond June 2025, the report suggests that the company’s corporate structure could face pressure from debt agreements that could accelerate debt repayment to 2025/2026.
The analysts at Bernstein note that due to Bitcoin’s volatility, using debt as a strategy always carries risks, and there is always a possibility of one-off forced liquidations.
MicroStrategy holds around 152,000 BTC
MicroStrategy currently holds approximately 152,000 bitcoin, acquired at an average price of around $29,600, with a total cost basis of about $4.5 billion. These cryptocurrency assets represent around 0.78% of the total bitcoin supply and account for approximately 20% of the daily average BTC trading volume.
According to a report from investment bank Berenberg, MicroStrategy’s capacity to refinance its debt maturities would be greatly improved if the company’s share price and the value of its bitcoin holdings were to see substantial increases.
It is important to note that these assessments provide an analysis of MicroStrategy’s financial situation and its reliance on Bitcoin’s performance, but the actual outcome will depend on various market factors and the volatility of the cryptocurrency market.
Binance Hires Former Us Banking Regulator as Chief Strategy Officer
The post Binance Hires Former Us Banking Regulator as Chief Strategy Officer appeared first on Coinpedia Fintech News
Binance, the world’s largest cryptocurrency exchange, has appointed Gin Chao as its new Chief Strategy Officer (CSO). Chao, a former US banking regulator with over 20 years of experience in the financial services industry, will be responsible for designing and implementing the company’s strategic objectives amid increased regulatory scrutiny. Binance has faced regulatory challenges in the US and Europe due to crises over compliance with anti-money laundering and financial regulations. CEO Changpeng Zhao expressed confidence in Chao’s ability to navigate these challenges and help the company continue to drive the adoption of digital currencies worldwide.
Navigating Unpredictable Crypto Markets with AI Strategy Trading
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About ATPBot
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Media Contact:
Company: ATPBOT
E-mail: [email protected]
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Coinbase CLO Blasts SEC’s “Hide the Ball” Strategy in Binance Lawsuit
In a recent courtroom drama featuring Binance, one of the world’s largest cryptocurrency exchanges, and the US Securities and Exchange Commission (SEC), a puzzling legal strategy by the SEC has raised quite a few eyebrows. Paul Grewal, Coinbase’s Chief Legal Officer, took to Twitter to express his concerns about the SEC’s tactics during a hearing before Judge Jackson.
Grewal’s main gripe was with the SEC’s approach to ‘reserve’ the right to identify the exact tokens they are claiming as securities. This approach seems to hinge on getting past the initial stages of the lawsuit and proceeding into the discovery phase, where more information could potentially be unearthed.
In the courtroom exchange, the SEC counsel was asked to classify the tokens not being claimed as securities. The counsel, instead of providing a clear answer, evoked the ‘pleading stage’ of the case as a reason for their reticence.
Rule 8, Rule 11, and A Barrel of Questions
What particularly caught Grewal’s attention was the SEC’s invocation of Rule 8 and Rule 11 in their bid to reserve the right to identify securities. These rules pertain to the general rules of pleading and the requirement for attorneys to certify that the claims they are making are supported by the law and the facts, respectively.
Grewal questioned how these rules could be used to justify the SEC’s ‘hide the ball’ strategy on token classification. He also invoked the concept of ‘Twiq-ball’, a term used in legal parlance for a lack of traceability in a Section 11 case, and questioned how this could be tolerated under Rule 8.
The Reserving Game: An Unloaded Gun?
Grewal’s commentary on the SEC’s stance did not end there. He drew an intriguing metaphor, suggesting that the SEC’s approach to ‘reserve’ their claims felt like they had an empty gun, hoping to find bullets during the course of discovery. This analogy paints a vivid picture of the SEC’s strategy, hinting at a possible lack of concrete evidence at this stage of the case.
Despite his criticisms, Grewal acknowledged the honesty of the SEC counsel. He applauded their candor, stating that it accurately described the current situation. However, he also pointed out that while their honesty may be commendable, it might not be lawful.
Decoding Ripple’s Legal Approach: Contrasting Binance’s Strategy in SEC Battle
Popular XRP enthusiast WrathofKahneman has brought attention to Ripple’s legal strategy in light of recent developments in the SEC vs. Binance lawsuit. The Securities and Exchange Commission (SEC) recently charged Binance, a leading cryptocurrency exchange, with facilitating the trading of unregistered securities and alleged mishandling of customer funds.
In response, Binance has taken an offensive stance, accusing the SEC of unethical behavior. These events have sparked discussion within the crypto community, drawing reactions from other enthusiasts.
Attorney Fred Rispoli, known for his advocacy of the XRP cryptocurrency, expressed his satisfaction with Binance’s bold legal stance. Rispoli commended attorneys McLucas and Canellos for their actions, which align with the principles of HODL Law, a legal entity established to protect the blockchain industry.
He asked, “Why do you think Ripple didn’t pursue this angle given the emails?” Fred replied saying, “My guess would be because it wasn’t as obvious then as Ripple was the first case where SEC record pushback. But now with Coinbase, Coinbase’s petition, Bittrex, Binance, the insider Coinbase case…the foundation is solid to assert such a claim.”
Binance has taken a proactive stance against the SEC in its ongoing federal court case. The legal team representing Binance has submitted a motion accusing the SEC of unethical behavior. This development carries significant weight as Binance has alleged that the SEC violated court rules by making false statements outside of the courtroom.
Binance is urging the court to mandate that the SEC adhere to the applicable court rules. Binance’s argument is based on the fact that, despite repeated questioning by the judge, the SEC attorneys failed to provide any evidence supporting the claim that Binance CEO Changpeng Zhao diverted or mingled customer assets. Furthermore, Binance asserts that the SEC’s actions not only contravene court rules but also violate the SEC’s own Code of Conduct.
Ethereum’s Future Strategy: A Closer Look At Vitalik Buterin’s Proposed Roadmap
Ethereum founder Vitalik Buterin presents a strategic approach for Ethereum’s future progression. He suggests a technological roadmap that takes into account imminent changes in the blockchain landscape.
From Privacy to Security: A Comprehensive Approach
In the face of constant cybersecurity threats, Ethereum’s framework has maintained robust asset security, with wallets essentially acting as sentinels protecting users’ assets.
As Buterin points out, wallets must evolve to keep up with the dynamic digital environment. He proposes a shift towards not only safeguarding assets but also preserving data, especially within the context of zero-knowledge proofs (ZKPs).
The risk associated with data loss is substantial – if a user’s encryption key is lost, so is all their encrypted data. To mitigate this risk, Buterin recommends tactics like storing keys on multiple devices or using secret sharing methods.
Adapting Light Clients for Layer 2 Verification
Buterin underlines the importance of evolving light clients to verify Layer 2 (L2) chains, going beyond the current focus on Layer 1 (L1). This would involve validation of both L1 headers and L2 state rooted in L1’s state root.
Such an upgrade will ensure that the security of transactions remains uncompromised even with the integration of new layers in the blockchain’s architecture.
Transforming Identity Parameters: A New Concept of Address
Buterin also highlights a crucial shift in how user identities are defined on the blockchain. The notion of an “address” will have to change radically, moving beyond a simple Ethereum (ETH) address to become a combination of addresses on multiple L2s, stealth meta-addresses, encryption keys, and other data. This transformation will accommodate cross-domain interactions and maintain privacy-preserving ways of communication.
Maintaining Decentralization and User Accessibility
Lastly, Buterin emphasizes the importance of Ethereum’s continued commitment to decentralization and user accessibility. He advocates for the development of open tools to provide users with a comprehensive and up-to-date view of their assets and intended messages. This transparency will help to prevent payment infrastructures from becoming too complex for developers and users to navigate, ensuring Ethereum’s sustainability in the face of future challenges.
What Is SEC’s Strategy Against Coinbase & Binance
In a high-stakes clash between Coinbase Global Inc and the United States Securities and Exchange Commission (SEC), an intriguing game of financial chess has unfolded, revealing the SEC’s calculated maneuvers aimed at gaining the upper hand over the prominent crypto exchange.
What impact could this have on Coinbase’s operations and user experience? Dive in with us.
SEC Retaliates
Seeking regulatory clarity through a lawsuit against the SEC, Coinbase has been met with retaliation as the commission charges the trading platform with enabling the trading of unregistered securities tokens. This unexpected move has significantly complicated Coinbase’s legal battles, despite CEO Brian Armstrong’s unwavering commitment to representing the industry in court.
Deciphering the SEC’s Strategy
Renowned crypto analyst Ran Neuner has delved into the intricacies of the SEC’s strategy, revealing a multi-layered game plan. The commission appears intent on burdening Coinbase with exorbitant legal fees while simultaneously constricting the range of tokens available for trading on the platform. By squeezing Coinbase’s revenue streams, the SEC aims to tighten its grip on the industry.
Transparency Prioritized
According to Neuner, the SEC’s strategy allows them to leverage the publicly available financial information of Coinbase, a publicly listed company. This provides the commission with insights into Coinbase’s financial standing and resources for legal battles.
The SEC is playing very smart against Coinbase – they have an unfair advantage.
They are pushing Coinbase into huge legal fees and at the same time reducing the tokens they can trade on the platform and choking the on-ramps to hurt Coinbase revenue
At the same time they can… pic.twitter.com/cj1Io7Ff4U
— Ran Neuner (@cryptomanran) June 8, 2023
Token Delisting and Regulatory Status
To implement its strategy, the SEC has classified tokens like Cardano (ADA), Solana (SOL), Filecoin (FIL), and Cosmos (ATOM) as securities. This classification potentially forces Coinbase to temporarily delist these assets until their regulatory status is resolved. This decision echoes Coinbase’s previous removal of XRP from its platform during the legal battle between Ripple Labs Inc and the SEC.
Neuner anticipates that the SEC will meticulously craft its moves against Coinbase. While pursuing regulatory compliance may prove costly for Coinbase, the exchange seems poised to match Ripple’s resolve, with Ripple reportedly spending a staggering $200 million in its ongoing legal tussle with the SEC.
Market Impact and Investor Confidence
The lawsuit has cast a shadow of uncertainty over Coinbase’s shares, triggering a decline in their overall market value. However, amidst this downturn, Ark Invest has demonstrated unwavering loyalty by seizing the opportunity to accumulate over $21 million worth of COIN shares, showcasing its confidence in Coinbase’s ability to weather the storm.
Ripple CTO Reveals Secret AMM Trading Strategy: Get A 41% ROI On Your XRP!
In a recent series of tweets, David Schwartz, the CTO of Ripple, presented a comprehensive, yet simplified, perspective on the trading strategy adopted by Automated Market Makers (AMMs), helping investors and enthusiasts to better understand this complex subject matter.
For those who want to understand an AMM's trading strategy and may find the math too complex to follow, here's a grossly oversimplified way to understand how the trading strategy works:
Say you have an asset that's volatile but no signifcant long-term trend. That is, its price…
— David "JoelKatz" Schwartz (@JoelKatz) June 1, 2023
Demystifying Price Volatility and Average Percentage Movement
Schwartz began his explanation with a hypothetical asset characterized by high volatility and a lack of significant long-term trend. This asset sees fluctuating price excursions followed by returns, such as a movement from $100 to $110 and back to $100, or a drop from $100 to $90 before returning to $100.
The CTO elucidated on a critical aspect: the average percentage movement is positive. An increase from $100 to $110 presents a +10% movement, but the subsequent drop from $110 to $100 is -9.1%. Inversely, a decrease from $100 to $90 is -10%, but the subsequent rise from $90 to $100 results in +11.1%.
“If you have an asset whose volatility exceeds its long-term trend, the average percentage movement will be positive,” Schwartz wrote. “If the long-term trend is negative, that just reduces the average somewhat. If the long-term trend is positive, that increases it somewhat.”
The AMM’s Trading Strategy
Schwartz then proceeded to explore how these dynamics relate to AMMs’ trading strategy. He suggested a straightforward trading strategy wherein an investor buys a certain amount of a stock and then continues to buy or sell the stock to keep the value of the holdings constant. This approach is believed to track the average percentage movement of the stock.
Though the trading strategy implemented by an AMM is more complex, Schwartz asserted it shares the same fundamental principle. He explained, “The trading strategy an AMM implements, though more complex than that simple one, also has this property of harvesting volatility.”
The Impact of Volatility and Fees on AMMs
Importantly, Schwartz also addressed the role of volatility and fees in AMMs’ performance. He noted that the analysis he presented primarily applies to AMMs between a fixed-price asset and a volatile asset, where the latter’s price fluctuations override its long-term trend. “AMMs work even when those constraints aren’t met, but their behavior is different,” he tweeted. “Generally it’s still pretty good as long as there isn’t a long-term negative price movement that exceeds the volatility.”
In his final remarks, Schwartz further simplified the relationship between volatility, fees, and AMMs. He tweeted, “1) AMMs charge fees when they trade. 2) Volatility causes people to trade with the AMM. 3) Thus AMMs turn volatility into fees.”
In a significant addition to his discussion, Schwartz mentioned, “The strategy is immutable, but you can remove your funds at any time. The worst-case behavior is the square root of the movement.” Explaining this further, he stated, “So if XRP doubles, your worst-case return should be +41% (square root of two, minus one).”
Also Read – Top Reasons Why XRP Price Is Flourishing Despite The SEC Lawsuit
Tether Reveals Strategy to Invest up to 15% of Profits in Bitcoin
The issuer of the world’s largest stablecoin, Tether, has announced the firm’s plans to allocate some of its profits to buy Bitcoin. According to a recent statement, Tether is allocating up to 15% of the realized profit from investments to purchase Bitcoin.
The new investment strategy will begin this month, according to the latest statement from Tether. The portion of profits that excludes any unrealized price appreciation will be used to add Bitcoin to its stablecoin reserve.
Tether to Begin Buying BTC as Part of a New Strategy
Tether’s recent announcement follows its report of $1.5 billion in net profit for the first quarter. As part of its strategy, the stablecoin issuer has decided to regularly acquire bitcoin and expand its existing holdings. Additionally, the company stated that the BTC bag will be safeguarded in their own custody without relying on any third parties.
The Q1 report that was released by Tether on May 10, 2023, revealed that the firm holds $1.5 billion in BTC and $3.4 billion worth of gold, along with other assets, as reserves for USDT. Based on Tether’s attestation for the first quarter of 2023, approximately 85% of its reserves consist of cash and cash-like assets, including U.S. Treasury bonds.
Paolo Ardoino, chief technology officer of Tether, said in a statement: “Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential.”
He also stressed that Bitcoin investment is also a method of aligning themselves with transformative technology. USDT is the largest stablecoin by market cap, according to data from CoinGecko. The market cap of USDT stands at $82 billion at the moment.
Also Read : Bitcoin Will Soon Return To Its ATH Level, Predicts Tether CTO
Over the years, Tether has faced criticism from within the cryptocurrency industry regarding its lack of transparency regarding its reserves and its controversial investment choices. However, the firm has been very transparent with its decisions.
Ripple vs SEC: Examining the SEC’s Strategy to Prove XRP is Security
The Ripple vs SEC lawsuit is heating up as we draw closer to the final ruling. The crypto industry is eagerly anticipating the outcome as it’s expected to set a precedent in the US. The main point of contention is whether XRP is a security, as claimed by the SEC, or a token, as claimed by Ripple.
With the legal battle having started in 2020, numerous predictions and opinions have been offered. Recently, Bill Morgan has provided insight into the SEC’s strategy for proving XRP’s security status. Stay tuned for more updates on this exciting legal saga.
Examining the SEC’s Approach and Ripple’s Defense in the XRP Security Debate
Ripple’s General Counsel Stuart Alderoty criticized the SEC for substituting concepts and equating common interests with a common enterprise. This prompted lawyer and crypto enthusiast Bill Morgan to speculate on how the SEC plans to label XRP as security and potentially harm the crypto industry.
Morgan suggests the SEC is stretching the Howey test by expanding the definition of “common enterprise” to avoid linking it to specific transactions, focusing on the adjective “common” instead. He believes the SEC aims to argue that a common interest alone is sufficient.
Morgan further explains that the SEC, in its summary judgment motion, highlights instances where Ripple promoted the alignment of its interests with XRP holders. If this evidence is deemed insufficient, the SEC resorts to the fungible argument, according to a legal expert. The argument rests on the idea that all XRP units are interchangeable and experience similar fluctuations, which the SEC claims establishes a common enterprise, even though it is merely a common interest.
Morgan notes that Ripple’s legal team challenged the fungible argument by citing gold as an example in their summary judgment motion. He warns that if the SEC is allowed to reduce common enterprise to the common interest, it could apply the fungible argument to other cryptocurrencies as well, setting a dangerous precedent. Morgan believes this could result in significant harm to the crypto industry.
The Ripple vs SEC lawsuit’s outcome holds significant implications for the crypto industry, as the SEC stretches the Howey test to prove XRP’s security status. The verdict could set a precedent impacting the regulatory landscape and shaping the future of cryptocurrencies in the US. The industry anxiously awaits the final ruling.
Ripple’s XRP Sales Strategy: CTO Confirms Reduction in Company Holdings
David Schwartz, Ripple’s Chief Technology Officer (CTO), has confirmed that the majority of the company’s revenue comes from selling its XRP holdings. In a recent Twitter exchange, Schwartz explained that this approach not only generates revenue for Ripple but also contributes to decentralization by reducing the company’s XRP holdings.
Clarifying Misinformation about XRP
The Twitter conversation began when a user with the handle @/ScamDetective5 asked Schwartz to address some misconceptions regarding XRP. The CTO obliged and provided a series of clarifications on various topics related to the digital asset and RippleNet.
Schwartz acknowledged that the XRP Ledger (XRPL) is dependent on the internet for the time being and the foreseeable future. He also confirmed that there are no Central Bank Digital Currencies (CBDCs) on the XRPL at the moment.
Regarding transaction processing, Schwartz admitted that the live XRPL has never seen 1,500 transactions per second (TPS). He estimates that the current configuration could likely sustain between 300-500 TPS.
The CTO clarified that RippleNet does not use On-Demand Liquidity (ODL) and that proposals to allow it all include new sources of liquidity. While he is unsure of the exact percentage of RippleNet volume attributed to ODL, he stated that hearing it was 60% would not surprise him.
Circulating Supply Growth and XRP Sales; No Higher-Priced XRP
Schwartz next confirmed that the circulating supply of XRP is indeed growing, similar to other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). He also addressed the topic of XRP sales, stating that if “sell” is broadly defined, then selling XRP accounts for most of Ripple’s revenue.
The Ripple expert explained that the company’s options are either to sell or hold XRP, and many people believe Ripple holds too much of the digital asset. By strategically selling XRP, the company can reduce its holdings and contribute to decentralization.
Finally, Schwartz debunked the notion of a higher-priced XRP existing elsewhere. He argued that if such an XRP could not be easily exchanged for XRP on the XRPL, there would be no reason to call it XRP. Furthermore, if it could be exchanged, nobody would pay substantially more for it unless they were “really dumb.”
Ripple vs. SEC: Pro-XRP Attorney Shares Insider Insights on Company’s Legal Strategy
As Ripple’s Liquidity Hub recently excluded XRP from its list of supported assets, concerns and speculation have arisen within the XRP community. To address these anxieties, Bill Morgan, a pro-XRP attorney, offered some insights into Ripple’s legal strategy against the U.S. Securities and Exchange Commission.
Understanding the Exclusion of XRP
Bill suggests that XRP’s exclusion from the Liquidity Hub might not be due to a negative assessment of the company’s prospects. Instead, he believes the decision is based on the product’s nature or commercial imperatives.
A few months after the lawsuit with the SEC started, Ripple had initially included XRP in the list of supported assets in the Liquidity Hub document. Bill highlights that with a significant risk of Ripple losing the lawsuit, the company may have excluded XRP to avoid potential securities contravention issues.
This strategy could allow Ripple to push the Liquidity Hub in the US market without causing users to worry. Additionally, a Ripple Liquidity Hub without XRP could serve as a good hedge in case the company loses the case against the SEC and diversify Ripple’s revenue sources.
Ripple’s Response to SEC’s Letter
Ripple’s legal team has filed a letter responding to the SEC’s letter of supplemental authority supporting its motion for summary judgment. In the letter, Michael K. Kellogg, Ripple’s attorney, argues that the SEC’s cited case against Commonwealth Equity Services does not provide grounds to dismiss Ripple’s fair notice defense.
The SEC had referenced the Commonwealth case to justify rejecting Ripple’s fair notice defense and granting the motion for summary judgment. Ripple countered that the Commonwealth case lacked contemporaneous evidence to support the fair notice defense, whereas Ripple’s case has substantial evidence, including SEC records and correspondence with outside parties.
Potential Impact of the Verdict
John E Deaton, another pro-Ripple lawyer representing XRP token owners in the ongoing lawsuit, shared his thoughts on the potential impact of the verdict. In an interview, Deaton stated that if Judge Analisa Torres rules in the SEC’s favor, it could result in numerous enforcement actions in the coming years.
Bitboy Crypto Shares Rebuilding Strategy After Losing Altcoin Portfolio
Popular cryptocurrency influencer Ben Armstrong, known as Bitboy Crypto, recently shared a video update on his channel detailing how he lost most of his altcoin portfolio due to investing in the Celsius Network. According to him, his portfolio plummeted from $35 million to $3 million in value, and he had to rebuild it from scratch.
Rebuilding the Altcoin Portfolio
Ben’s strategy to rebuild his altcoin portfolio is to diversify his investments across Bitcoin, Ethereum, layer twos, and layer ones. He said he plans to invest 30% of his portfolio into Bitcoin and Ethereum, while the remaining 70% will be spread across the following cryptos:
- Polygon (MATIC)
- Optimism (OP)
- Arbitrum (ARB)
- Hedera Hashgraph (HBAR)
- Cardano (ADA)
- Internet Computer (ICP)
- Solana (SOL)
- Polkadot (DOT)
- XRP (XRP)
Ben believes that these coins will be the major performers of the next bull run, especially XRP, which he expects to skyrocket once its lawsuit with the Securities and Exchange Commission (SEC) is resolved.
Dollar-Cost Averaging (DCA)
To avoid losing too much money due to market volatility, Armstrong plans to dollar-cost average his investments into these coins over time. This approach involves investing a fixed amount of money into a coin at regular intervals, regardless of its price. Dollar-cost averaging helps investors reduce their risk of buying high and selling low.
Ben mentioned that he is particularly bullish on layer twos, which are solutions built on top of existing blockchains that aim to increase scalability and lower transaction fees.
He believes that layer twos will play a significant role in the future of decentralized finance (DeFi) and that they will help solve the current issues with high gas fees on the Ethereum network.
Although Ben’s approach may not be universally applicable, it serves as a valuable prompt for investors to conduct thorough due diligence and broaden their cryptocurrency portfolio in order to mitigate potential risks.
Turn $20,000 Into $100,000: Bitboy Crypto’s Investment Strategy
Crypto influencer Ben Armstrong, also known as Bitboy Crypto, recently shared his expert opinions on the future of the cryptocurrency market, including concerns about potential regulations and his predictions for the prices of various digital assets.
Regulations Could Impact Crypto Usage
Armstrong warns that, just like with weed, the US government could make it more difficult for people to use Bitcoin. If the government were to come out and declare Bitcoin illegal, it could have a significant impact on its usage in the United States. Armstrong also expressed concern about the possibility of Gary Gensler winning the SEC chair position, stating that it would be horrible for the crypto space if he brought all of the cryptos under regulation.
Armstrong also talked about his Ethereum bet, challenging Bitcoin maximalists who think Ethereum will be deemed a security to take him up on the bet. However, he clarified that the bet is not related to the Ethereum initial token sale, as that is not representative of Ethereum as it stands today.
Crypto Price Predictions
Armstrong predicts that if Bitcoin reaches $50,000 by the time of the having, it could be looking at a supercycle. He suggests that regulatory measures between now and the having could impact the market. Armstrong says that he and his team plan to provide a series of price predictions based on different price points, including $20,000, $30,000, $40,000, $50,000, and $60,000.
They will also be more conservative this time around to prevent people from getting their hopes up too high. Armstrong predicts that a $20,000 investment in 10 different coins, including Bitcoin (BTC), Cardano (ADA), Filecoin (FIL), Polygon (MATIC), Stellar (XLM), The Sandbox (SAND), Graph (GRT), Mina (MINA), Optimism (OP), and a $2,000 investment in each, could be worth at least $100,000 by 2025.
Stay tuned to Coinpedia for all the latest crypto insights!
Expert Who Sold Bitcoin at $25,000 Reveals His Future BTC Strategy
Crypto analyst DonAlt, who rode the Bitcoin rally from its 2022 bottom, has updated his outlook on the digital asset. In a recent video, he revealed that he would become very bullish on Bitcoin if it falls to the $19,000 – $20,000 support level. According to DonAlt, Bitcoin could rise to $35,000 if it manages to break above the $23,500 resistance level. He believes that the bottom for Bitcoin is around $16,000, and the sanest play is to buy the reclaim of $23,000.
BTC Price Prediction
The strategist suggested that the $19,000-$20,000 range would turn him “very, very bullish” on the flagship cryptocurrency. DonAlt is taking the loss along with everyone else as he sold the top at $25,000 and re-bought it at $23,000. He sees a good resistance at $22,000, $23,000, and $23,500, and if it breaks that resistance, the next target is $35,000.
CryptoQuant’s Analysis
CryptoQuant analysts believe that rising selling pressure from BTC miners, alongside other factors influencing the asset, could push Bitcoin to either $19,500 or $16,600. Technical experts identified a volume gap between the $19,500 and $16,600 levels, and accordingly, analysts believe it could be a challenge for Bitcoin to find a local bottom in intermediate zones.
The analyst suggested that a good buying opportunity for Bitcoin would present itself if BTC retraces back above $23,000. He thinks that the most lucidplay is actually buying the reclaim of $23,000 as it will only marginally be the worst price, and it has the potential to rise up to $30,000 plus. This would allow room to grow and reduce the risk of playing aggressively.
Factors Affecting Crypto Prices
The current uncertainty in cryptocurrency prices is driven by Fear, Uncertainty, and Doubt (FUD) from Silvergate’s voluntary liquidation, macroeconomic outlook, KuCoin hit by a lawsuit, and Huobi Token’s flash crash, among others. The market has been experiencing a volatile period in the last two months, and traders and investors alike are trying to make sense of the fluctuating prices.
Bitcoin was worth $19,739 at press time.
This is Bitcoin’s Trading Strategy for the Next Few Months: – Will BTC Price Reach $30,000?
The crypto space was slashed hard following the collapse of the crypto-friendly bank, Silvergate. For the first time in four months, the token experienced one of the largest single-day drops of nearly $1200.
However, the descending trend appears to have come to an end, as the price is now trading sideways near the newly gained levels of $22,300.
The BTC price, currently appears to have stuck within narrow ranges, but may soon leap long to reach the higher targets in the coming months.
Bitcoin has been trading in constant wave patterns since before, and if the pattern continues, it may slide to the bottom. Once the price tests the lower support, a catapult action may raise the price to a level that could be close to the required target of around $50,000 in a short while from now.
The BTC price reached the previous highs again and faced rejection. Despite the price continuing to consolidate, it flashes the possibility of going high in the coming days. The global reversal of the BTC price chart can be assumed due to the ‘Inverted head & shoulders’ pattern.
March is expected to be extremely volatile as multiple macroeconomic indicators like the CPI, Fed rate, etc. Moreover, more than 140K BTC could enter the markets.
Therefore, the medium target for the Bitcoin (BTC) price is around $40,000 to $42,000, which is expected to happen sooner or later.
Besides, the BTC price is also believed to be witnessing extreme pressure that may prevail for the entire crypto space if a small group of traders wish to make profits.
This may intensify the possibility of a potential growth in the coming years that may mark new highs soon.
The Stop-Loss and Take-Profit Strategy
Many traders use various candlestick patterns, indicators, and tools when trading to make quick and reliable decisions. Most of these traders combine different indicators to get the best signals. Of course, there are various types of technical indicators which include oscillators and volume indicators. However, the Chande Kroll Stop is an indicator every trader should combine with other indicators. This article will help you to understand why you should use the Chande Kroll Stop indicator and how to use it.
What is the Crypto Trade Stradges Chande Kroll Stop Indicator?
The Chande Kroll Stop indicator calculates the take-profit and stop-loss prices of various cryptocurrencies such as Bitcoin and Ether (ETH) on the crypto exchange, such as Gate.io. It is also useful in other markets including the forex and commodities markets. Traders use this indicator on different trading time frames such as 1M, 1W, 1D, and 6H. However, it gives the best signals when used with medium to long time frames.
It is also important to note that the Chande Kroll Stop is a trend-following indicator that provides insight into real-time market volatility based on the asset’s price movements. It also calculates the take-profit and stop-loss levels using the average true volatility range of the security.
The history of Chande Kroll Stop Indicator
Two Canadian bankers, Tushar Chande and Stanely Kroll developed the Chande Kroll Stop indicator. As you note, this indicator’s name comes from their last names. It was published in their book, “The New Technical Trader – Boost Your Profit by Plugging into the Latest Indicators” in 1994.
The two technical analysts, Chande and Kroll, also developed various indicators which include Chande Momentum Oscillator, Aroon, StochRSI, and VIDYA. The following diagram shows what the Chande Kroll Stop indicator looks like.
How to calculate the Chande Kroll Stop Indicator
The stop points are derived from the high and low ranges of the indicator which are compared with the asset’s average stop losses. We use the following formulas:
High Stop = Highest (N) x Average True Range (N)
Low Stop = Lowest (N) + x Average True Range (N)
However, there is no need for the trader to make these calculations since most trading platforms have software that calculates it.
In most cases, though, the traders should set the three variables P, Q, and X.
P represents the Average True Range whose default period is 10.
Q separates the lines from the market price. The default setting is 9, which makes it 9 times more than the volatility.
X represents the average time and also separates the lines from the price. The default setting is 1.
How does the Chande Kroll Stop work?
The main purpose of the Chande Kroll Stop is to protect your profit by keeping the trade open as long as the price is moving in the right direction. It indicates the stop-losses for both short and long positions.
The indicator has two lines. One of the lines indicates the stop-loss and take-profit levels for long positions while the other shows the stop-loss and take-profit levels for short positions. With most trading platforms, the red line is the stop level for short positions while the green one is for the long position.
Therefore, the green or blue line is also called the long stop line while the red one is called the shortstop line. Basically, the two lines track the changes in prices of the assets and identify stop-loss and take-profit levels.
For long positions, when the price is increasing the stop-loss level rises. However, when the price decreases the stop loss level remains fixed at that level. As such, the traders do not need to keep adjusting the trailing stop-losses.
How to use the Chande Kroll Stop indicator
The Chande Kroll helps traders to identify trade entry and exit points. Basically, the traders can open trade positions when the price of the asset is under or over both indicator lines.
For example, the indicator generates a buy signal when the green or blue line crosses above the red line. In this case, the price should be above the trendline. This indicates a pending upward trend. Therefore, once the traders get confirmation, they can open long positions. Note that the stop point is at the highest level the blue or green line has reached.
On the contrary, the indicator generates a sell signal when the red line crosses below the blue or green line. In this case, the price should be below the trendline. It is also important to note that the lowest point, which the red line has reached, acts as a stop-loss level.
In the diagram above, we can observe the blue line crossing above the red line, which is a buy signal. We also see the red line that crosses below the green or blue line, which is a sell signal.
Bullish divergence
A bullish divergence can also occur on the Chande Kroll Stop indicator. This happens when the red line crosses below the green line and crosses back above it.
Trend identification
Some traders use the Chande Kroll Stop indicator to identify trend reversals. When the green or blue line crosses above the red line it is a bullish price reversal signal. On the other hand, if the red line crosses below the green or blue line, it indicates a pending bearish price reversal.
Conclusion
The Chande Kroll Stop indicator comprises two lines, a blue or green line and the red one. This indicator uses similar calculations used to indicate the automatic stop-loss and take-profit levels. However, it is important to use the Chande Kroll Stop with other technical indicators such as RSI and MACD.
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Genesis Reveals Strategy to Repay Creditors After Declaring Bankruptcy
Bankrupt cryptocurrency broker Genesis has filed plans detailing how it will repay its creditors. According to a recent filing, the parent company of Genesis, Digital Currency Group (DCG), has agreed to transfer its equity in Genesis Global Trading to Genesis Global Holdco. The eventual goal is to sell both companies and repay clients who were impacted by the bankruptcy.
Genesis served as the primary lending partner of New York-based cryptocurrency exchange, Gemini, but went bankrupt and owes users of the high-yield savings product, Gemini Earn, $900 million. The announcement of the agreement between Gemini, Genesis Global Capital, and Digital Currency Group was made earlier this week by Gemini co-founder Cameron Winklevoss on Twitter.
The interim CEO of Genesis, Derar Islim, stated that the company is moving closer to resolving its lending business and maximizing value for all clients and stakeholders. The agreement in principle was reached with two groups of ad hoc creditors, including Gemini Trust Co. and DCG.
Previously, users of Gemini were able to earn cash through their cryptocurrencies via Genesis, but the company had to halt withdrawals in November after digital asset exchange FTX went bankrupt. Genesis had approximately $175 million in exposure to FTX and unsuccessfully sought a $1 billion bailout from investors before filing for bankruptcy.
Gemini will contribute $100 million
As part of the plan, Cameron Winklevoss announced that Gemini Trust Co. will contribute up to $100 million more for Earn users. Gemini had partnered with Genesis to offer the Earn yield product until November 16, when Genesis announced it was halting its lending business, affecting the access of Gemini Earn customers to their funds.
The restructuring and sale of the crypto trading business and lending arm of Genesis are expected to maximize recoveries and provide stability to its customers and partners. This recent filing provides hope to the affected parties that a resolution to the issue is within reach. The outcome of the plan remains to be seen, but it is a positive step towards resolving the financial difficulties of Genesis and repaying its creditors.
Frax Share up 29%, Luna Classic Pending Upgrades Could Push It Over $1 Billion, Snowfall Protocol Employs Vest Strategy To Protect Investor Funds
Algorithmic stablecoins are considered a safe and stable store of value. For investors, it sounds like a safe zone from the general crypto market pressure until Terra’s UST depegged in May 2022. Since the drama, Luna Classic has faced criticism. Subsequently, Frax Protocol came up with the Frax Share token. Still, that did not stop Frax Share from bowing down to bear pressure.
Fortunately, Snowfall Protocol’s new cross-chain technology has seen so much acceptance, and its token is now considered a viable store of value and investment asset. Although Frax Share and Luna Classic show signs of recovery, Snowfall Protocol’s demand is growing by the second at presale. Read on to learn more about new development in algorithmic stablecoins and why Snowfall Protocol is trending.
Frax Share Sees a Push Up By 29%
Frax Share is the governance token of Frax Protocol, an ecosystem that blends algorithmic technology with collateral. The platform was created to popularize a scalable and decentralized algorithmic currency that can replace cryptocurrencies like BTC.
Frax share is one of Frax Protocol’s ecosystem tokens, and it is a fractional algorithmic stablecoin with a collateral side and an algorithm-controlled side. The token can adjust its collateral ratio to the value of Frax Share. While Frax Share benefitted from the bullish joyride, it fell by 90% from the all-time high price of $41.09 in January 2022.
Subsequently, Frax Share has flipped its ATH price with the hope of recovery and going higher. The token has gained 29% in the past 24 hours. Its algorithmic stablecoin peer, Luna Classic, has also increased in price. Currently, Frax’s price is $8.7, about 220% up from an all-time low price.
Luna Classic Go Back Above $1 Billion Cap With Upgrades Pending
7 months after the deepening drama that rocked Terra UST and Luna, attention is back on Luna classic after the token hit local highs in May 2022. Luna Classic’s market capitalization crosses the $1 billion market again amidst plans for upgrades.
Terra is a renowned protocol for algorithmic stablecoins, and its UST was one of the best-performing stablecoins until it dipped and collapsed. However, it is recovering slowly after peaking at a $400 million market cap from $180 million on January 14. So far this year, Luna Classic has gained 25%. The protocol is planning to upgrade its software to v1.0.5, and major exchanges have pledged their support. Meanwhile, 6% of Luna Classic’s supply was burnt to raise its value.
Snowfall Protocol Employ Vesting Strategy to Protect User Funds
While it is unsure whether or not the price surge of most algorithmic stablecoins can remain stable over time, Snowfall Protocol is giving investors’ a golden opportunity at a profitable lifetime investment. The protocol is a multichain platform for bridging cryptocurrencies and NFTs from one chain to another.
As an innovative stride, Snowfall Protocol aims to build securely and efficiently interconnected, interoperable blockchain networks. Snowfall Protocol is a much-needed development in the crypto space as it allows more than 200 EVM-compatible and non-EVM chains to interact with each other.
Snowfall Protocol has raised more than $5 million and has put several measures in place to protect investors’ funds. One of these is the vesting strategy to lock tokens allocated for the protocol’s team. The vesting period is five years, during which the team won’t be able to sell their position. This will further improve investors’ belief and trust in Snowfall Protocol’s mission.
As you can see, the Snowfall Protocol is a great project with great prospects for a brighter future. Snowfall Protocol token is still in presale at an underpriced value of $0.191. The token is useful to gain voting rights and enjoy passive DeFi opportunities within the platform. Demand is getting higher, and the token is selling faster than speculated. Therefore, now is the best time to fill up your portfolio to enjoy a 1000x return.
You can also be a part of this life-changing opportunity – sign up and buy $SNW at Snowfall Protocol’s presale website.
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Huobi Token (HT) Price Spikes After Justin Sun Reveals Its Revival Strategy
Huobi Global, a crypto exchange giant, is now all set to initiate a fresh journey with newly appointed advisory committee member Justin Sun. Tron founder Justin Sun revealed strategic plans to expand Huobi Global’s futuristic vision, including its developments, international brand promotion, utilization, expansion, and business operations dedicated to Huobi Token. Following the announcement, Huobi token surged over 28% in the last 24 hours.
Justin Sun Paves The Future Road For Huobi!
Today, Justin Sun tweeted about the future expansion and strategic plans to push Huobi Global upward, discussed in the meeting of the new advisory committee.
The members of the Huobi Global advisory committee include Baiyu Capital’s founder Du Jun, Ted Chen, Huobi Global’s co-founder Wang Yang, Valkyrie co-founder Leah Wald, and Tron founder Justin Sun.
Justin Sun said, “Today is my second day in Huobi. I am speaking on behalf of the Huobi Global Advisory Committee. We know that the key to revitalizing Huobi is to empower HT, and HT can only thrive on Huobi! In the future, there will be many big moves around HT, including brand upgrades, heavy empowerment, and business cooperation. We will unite all the forces that can be united to make HuobiGlobal well together!”
The advisory committee aims to place Huobi Global at the leading position in the crypto market by improving Huobi’s promotion, risk regulation, brand expansion and several factors.
Moreover, the committee confirmed that the revival plan would focus on bringing a spotlight to its Huobi token (HT), and the crypto exchange will look for more exposure globally, except in China.
Huobi Token Begins A New Chapter With An Uptrend Of 28%
The recent announcement from Huobi Global positively impacted the price of Huobi token as it jumped over 28% in the last 24 hours. According to CoinMarketCap, Huobi token is currently trading at $4.9 with a high of $5.3 and a low of $4.0753. It seems that the Huobi token is set to bring bullish rays as it has broken out of its strong resistance level at $4.6.
The RSI-14 is trading at 83, indicating an overbought territory for Huobi token, and SMA-14 is trading at 55, hinting at a price consolidation to the downside soon. However, the EMA-20 and EMA-50 are moving upward exponentially, showing more bullish momentum till $5.8.
TRX price also surged by 3%, and its transaction in the network recently crossed 4 billion; it is believed that Justin Sun is the actual buyer of Huobi Global as he is the primary investor of About Capital, to whom Huobi Global sold a majority of shares. However, Justin denied the news, confirming that he was appointed only as a member of the advisory committee.
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Surveillance a Trust Building Strategy for the Emerging Digital Asset Market
With 2022 having been a year of severe turbulence for the crypto market, it seems like effective crypto marketing is, at present, a bridge too far. Digital asset marketers often find themselves asking, how do I effectively market my crypto business? The answer or answers might be coming in the form of market regulation and surveillance.
According to a new Nasdaq report, regardless of a financially tumultuous 2022, crypto adoption is continuing to expand and grow. This means that regulators have no choice but to develop a broader framework for the emerging digital asset class.
Just like many financial marketplaces, crypto is all too often vulnerable to abuse and manipulation from bad actors, which highlights the need for stronger surveillance and regulation programs. Over time, these programs can create wider adoption and trust among investors since they will be protected from abuse.
With the crypto market along with crypto businesses and platforms expanding, what kind of role is regulation and surveillance playing when it comes to building trust in the crypto sphere? This was the exact topic recently discussed at a recent webinar hosted by both Nasdaq and Regulation Asia.
Different Market, Similar Challenges
Say the experts, trust in the crypto market varies for retail and institutional investors. Not only because plunging prices in the most popular assets like Bitcoin (BTC) and Ethereum (ETH) have crushed investor expectations, but also because the market, taken as a whole, is actually moving away from the hyper-volatility it experienced in the early days.
However, the Federal Trade Commission (FTC) reports that crypto scam losses in 2021 were calculated to be 60 times higher than that of 2018. It’s said that between January 2021 and July 2022, traders and investors were “scammed out of more than US$1 billion.” Maybe those assets are unrecoverable once they’re gone, but there are ways to block further threats at their origin.
The crypto market is somewhat misunderstood by some investors; the kind of fraud associated with it is said to be anything but unique or new. The FTC goes on to state that just about half of crypto investment scams began with a post, a message, or an ad on one of the many social media platforms. They also come from emails too.
According to the Head of Sales and Business Development for Asia-Pacific at Nasdaq Market Surveillance, David Kwan, as a surveilling expert, he’s witnessed cases of money laundering, wash trading, spoofing, phishing, and more.
He asks, “…why can’t the industry apply the same monitoring and the same protection in crypto as traditional markets?” In Kwan’s opinion, protecting the crypto marketplace is the only way crypto businesses, investments, and the industry as a whole will continue to grow.
Regulatory Leaders
Crypto professionals located in Singapore and Hong Kong are said to be taking the lead on engineering the regulatory frameworks that will inevitably lead to constructing resilience and trust in the crypto industry.
Hong Kong’s government, in particular, has crafted amendments to its Counter-Terrorist Financing Ordinance (AMLO) and its Anti-Money Laundering programs that will now include new licensing protocols for VASPs. This means that any business that intends to operate a VASP will require a license from the Securities & Futures Commission (SFC).
In Hong Kong, the title “virtual asset” is applied to BTC, ETH, and other top-tier altcoins, plus stablecoins like Tether. Virtual assets also include a specific set of governance tokens that can be morphed into non-fungible tokens (NFTs) in the near future.
Says Kwan, the existing financial institution guidelines, which include fund management code of conduct, internal control guidelines, plus the regulation of auto trading services, will be applied to virtual asset license holders by March of 2023. This will be a boon to crypto marketing businesses that desperately need their clients to develop trust in the digital assets they wish to invest in.
Expanding Crypto Regulation
Meanwhile, in Singapore, crypto professionals are creating new legislation to prop up their emerging digital asset market environment. The new laws are said to be somewhat covered by existing legislation called the Payment Services Act which came into existence back in 2020.
But the newly approved Financial Services & Markets Bill is said to strengthen regulations and close any gaps that exist in the Payment Services Act.
Again, more good, trust-building news for the crypto industry.
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