BitMex Hits New Records, Volume Reaching $16 Billion in a Single Day

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Recently BitMex reported on Twitter that it hit a record in daily volume as bitcoin went pass $13,000. BitMex, which is a leading Bitcoin derivative trading platform, topped $16 billion in volume across its products.

A few days ago, after Bitcoin had reached $13,000, BitMex went on Twitter and revealed that their daily volume across all products had touched a $16 billion mark. In detail, BitMex saw more than $1 billion of open interest on XBTUSD market and over $13 billion traded on the XBTUSD pair.

The company CEO, Arthur Hayes excitingly commented:

“XBTUSD perp swap open interest is now in the 3 comma club. Welcome to the 2019 bull fucking market YeeHaw!”

While at the moment, Bitcoin sees a slight correction, few of the trading platforms are seeing similar records. For example, Bitcoin futures trading platform CME group, also reported an all-time high trading volume in the last couple of months.

Who’s Behind This Bull Market?

Many experts still debate on which investor segment is funding this bull market – retail or institutional. Or maybe the recent Libra announcement? Nevertheless, the fact is that Bitcoin and cryptocurrencies, in general, are seeing massive amounts of money pulling in and no one can predict whether this is just temporary or are we actually gearing up for a new all-time high for Bitcoin. Many debate that the FOMO effect could be the drive for most of the investors and traders because Bitcoin is showing a rapid growth this year. The emotional barriers also need to be considered, because Bitcoin over the $10,000 mark is more bullish than under it. The fact being that, it hasn’t stayed for long in the range of $10,000 to $20,000. Indicating that it could be in the search for a new ATH since this year Bitcoin is doing similar moves like in 2017. That is – going pass heavy resistance marks in just days or even hours. Also, since nothing is clear, we can either go to the moon or experience a huge bull trap in the upcoming days.

BitMex Arthur Hayes VS Nouriel Roubini

In the BitMex Tweet, they also mention the upcoming debate between BitMex CEO and Nouriel Roubini in the Asian Blockchain Summit which is about to happen in July. Roubini is an infamous crypto disbeliever, also academic, who is known as the “Doctor Doom”.

Roubini believes that crypto “is a farce” and BitMex put an emphasis on this in their volume tweet saying that their CEO will debate him face-to-face in Taipei, Taiwan.

“Ain’t gonna be no rope-a-dope, just a straight knock out,” commented Arthur Hayes.

Image by Csaba Nagy from Pixabay

Kraken Recently Closed a $13.5 Million Crowdfunding Round!

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Just recently, one of the top regulated crypto exchanges Kraken, completed its crowdfunding round with $13,5 million raised. That way, Kraken pushed the company valuation towards $4 billion. The round of financing was done on an investment platform called Bnk To The Future and it gathered more than 2,200 participants.

Kraken, which is a regulated spot and futures crypto exchange, recently closed it’s funding round on an investment platform Bnk To The Future with a little more than $13,5 million raised. This turned out to be the most successful funding round on Bnk To The Future with more than 2,200 participants joining. Simon Dixon, the co-founder of Bnk To The Future told that Kraken sought the capital as a way to push it’s valuation past the $4 billion mark and fund new acquisitions.

For this funding round, Bnk To The Future created a Special Purpose Vehicle (SPV) for Kraken to receive equity indirectly from the plus 2,200 investors. That is known as a illiquid investment.

“The SPV then pools all the individual funders and acts as a single capital investor. This technique allows Kraken to bypass the SEC requirement that force it register as a public company under the 1934 Securities and Exchange Act,” writes CoinDesk.

This makes the investors not shareholders of Kraken and will realize a return only in three cases:

If Kraken starts an IPO; Gets sold to an organization; or if the exchange does a Management Buy-Out.

Originally, Kraken asked for $10,2 million in the first funding round. After four days, they saw that the market has a deep interest and extended it to a goal of $15,45 million. Even though it is reported that the funding round ended with $13,5 million raised, Simon Dixon said that they are still waiting for around 250 bank wires to go through. He expects somewhat around $14 million to be raised.

Massive Investments, Massive Perks

Simon Dixon revealed that the average investment was around $100,000, which is 10 times more than all the previous 120 funding rounds on Bnk To The Future. 60 percent of investors chose to stake fiat while the rest 40 percent chose to stake crypto. Usually, as Dixon described, they see a 70:30 ratio between fiat and crypto. He believes that this is because the crypto bull market which makes the prices rise. Another major factor on why so many investors chose to fund Kraken is because of the perks that Kraken offered.

“CryptoWatch Premium membership, the ability to leverage shares for margin collateral, priority service from our client support team, invitation to Kraken’s exclusive investor chat room, subscription to Kraken’s Daily Hash newsletter and OTC Daily report, bi-annual Kraken investor update, beta access to new Kraken products and features, limited edition Kraken swag, [and] 5% investment rebate in KFEE,” reads an e-mail which was sent to all the investors.

However, one Bnk To The Future client decided to “write down the numbers” and came up with a rather interesting statement:

“Your $1k investment bought you about 48 future shares (from 201.612.210 in total). If Kraken is really worth $4bn in the end you own 0,00002380808% of this pie. And that’s about the sum that you invested. But as you are in the “preferred share class” you get your investment back even if Kraken sells only for $112 million. Only if Kraken sells for more than 4bn we will make money.”

Additionally, Bnk To The Future has some pretty strict guidelines when it comes to registering on their platform. Investors need to either prove that they have incomes over $200,000 for the past two years, a combined income with a partner of $300,000 over the past two years, or have a net worth over $1 million. Needless to say, they all needed to pass KYC requirements.

Source:

https://www.coindesk.com/over-2000-investors-back-kraken-crypto-exchanges-13-million-crowdfunding

Image taken from Kraken.com

John McAfee Comes Out With a New Exchange – McAfeeMagic!

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The crypto defendant, privacy maximalist, who’s running for POTUS in 2020, John McAfee, has just released his new cryptocurrency exchange called “McAfeeMagic”. Interestingly enough, the exchange will allow trading cryptocurrencies on multiple exchanges within one dashboard. 

When going on his website he describes the platform as a new and revolutionary. The exchange comes out as a non-custodial. Users funds will be stored on 8 other exchanges. In order to set up the account, users will need to add APIs from other exchanges, where their funds are stored. The exchange enables both manual and automatic trading, across the aforementioned eight cryptocurrency exchanges. Moreover, users will be able to set orders on 8 exchanges all at the same time from one simplified dashboard. If this isn’t eye-catching and you still ask “So where’s the magic”?

“The “Magic” is being able to make a snap trade, while your pre-set automated bots are making 100’s of trades for you, (on different exchanges), in the background! – That’s the McAfee Magic,” says the website.

Two portals

At the moment, the McAfeeMagic exchange offers two “portals”. “Magic” and “Shadow”. The Magic portal is for normal trading, the Shadow one is for Shadow trading in which the user will be able to sort of copy other successful trader calls, whom the community will manually rank judging by their success.

Additionally, there is a “set and forget” option which means that the user will have the ability to set a buy and sell order at the same time. Autotrades will also be an option. And the best part about McAfeeMagic is that users from all around the world, with no restrictions, will be able to use it. Now McAfee really is offering freedom to crypto enthusiasts.

Security

Since McAfee is the godfather of internet security, people expect that this crypto exchange will be the most secure of them all. The website’s FAQ says that the site is hosted on “top grade” Amazon Web Service servers that come with DDoS protection. Also, the system can scale on demand, as they describe.

“We are only releasing this platform to the public after extensive testing and auditing processes that stretched months,” reads the website.

However, the website experienced a DDoS attack before the site was even launched. Earlier, in a tweet by John McAfee, he stated that the McAfeeMagic.com is “still under attack.” They had found out that the attack comes from a new I.P. Address in Texas. Also, he eased everyone by saying that the Amazon AWS servers are learning the attack and are “top notch”.

The McAfee Freedom Coin

Best Coin Investments recently reported that John McAfee is also coming out with a new cryptocurrency – Freedom Coin. The new cryptocurrency, as informs McAfee, is designed to confront the problem of currency exchange. He goes on explaining that the Freedom Coin will use a unique paradigm and a new structural concept. The asset will have no value, hence it will always be worth zero in relation to any other currency asset, however, at the same time, its natural market value will be free. Moreover, he says that this new cryptocurrency is nothing new and definitely isn’t a technological breakthrough. However, what makes it unique is the new approach to understanding the evolution of cryptocurrency “and the mechanisms that have kept the Holy Grail of cryptocurrency – economic freedom – out of reach.”

Photo taken from McAfeeMagic.com

Bitfinex lists its LEO utility token!

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According to a recent blog post by Bitfinex, yesterday Bitfinex listed its own utility token LEO (full name – UNUS SED LEO). Its main mission is to empower the Bitfinex community. The company previously closed a $1 billion initial offering sale. Currently on Bitfinex.com is no information about the new utility token. It will be trading against BTC, USD, USDT, EOS, and ETH. 

UNUS SED LEO raises $1 billion

The original name of the token is rather long, but it is the name of its initial issuer. Judging by recent news, Bitfinex closed its token sale in just 10 days. The company had a private sale in which unknown investors invested sums ranging from $1 million to more than $100 million. However, the raised sum wasn’t just in the form of USD. It was a combination of USD, BTC, and USDT.

“In addition to our excitement around bringing such an unprecedented and powerful token to the heart of our community, the Bitfinex team remains dedicated to continuing to grow and develop core infrastructure for our industry as a whole. We remain invigorated and humbled by the support of our users, personnel, and beneficiaries, and welcome everyone to the era of UNUS SED LEO,” reads their blog post. 

Source:

https://medium.com/bitfinex/unus-sed-leo-to-be-listed-on-bitfinex-on-monday-following-completion-of-1bn-contribution-10e5d56abf9d

Photo by Bitfinex

Cryptopia goes into liquidation because of debt, cannot return customers’ assets!

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Recently, Cryptopia, a New Zealand-based cryptocurrency exchange which previously experienced a large security breach, announced that they are going into a liquidation process. They have appointed David Ruscoe and Russell Moore from Grant Thornton New Zealand as the liquidators. 

The result of a recent hack

Previously we reported that Cryptopia suffered from a hacker attack and for a brief moment it almost seemed like Cryptopia has lost all control over their Ethereum wallets. The exchange lost around 30k Ethereum and other assets. Since then Cryptopia had notified the New Zealand police and other legal instances.

After this, judging by their Twitter communication in mid-March, they entered a “coin securing” phase. Within this phase, they said that they are moving all the assets to new wallets. Afterword, they re-opened trading on their platform, and around mid-April they allowed BTC, LTC and DOGE deposits, but never really opened up withdraw functions.

Later, at the end of April, they stopped communicating for a couple of weeks. Then came out with the recent announcement about the liquidation process.

Users cannot withdraw funds because of an investigation

Cryptopia just published a “Liquidation FAQ” where they state:

“We are now undertaking an extensive process to confirm amounts owing and available to return to customers. This is a complex process and will likely require direction from the New Zealand Courts. Until the investigation has concluded we cannot return any crypto-assets to customers.”

Also, they claim that their first priority is to secure all crypto-assets on the exchange. But the weird thing is that they “need to confirm the amounts owing and available to return to customers”. And this process, as they say, is very complex and they need the direction of New Zealand courts “to make sure a fair legal solution is found”.

Went into liquidation because their debts fell due!

As they describe in their FAQ, Cryptopia’s main reason why they’re entering liquidation process is their situation with debt. Customers and Twitter users are commenting that one of the reasons why Cryptopia cannot answer anything about their customer’s assets is because they are thinking of covering their debts with customers money.

Every FAQ about customers assets ends with the same phrase: “Until the investigation has concluded, we cannot confirm whether individual customers will get all of their crypto-assets returned,” or “We cannot confirm any customer balances until we have completed our investigation,” or “At this stage we cannot confirm what will be returned or whether crypto assets will be returned as crypto-assets or fiat currency.”

Basically, they say that they know nothing about their customer’s assets, and they don’t guarantee that they will even get them back at some point.

Respectively, many users are really upset to hear this kind of response from Cryptopia. And they rush to conclusions such as Cryptopia is exit-scamming and stealing customers assets. But that seems like a logical response to what Cryptopia had explained. The exchange basically says that they got huge debt, and they won’t allow anyone to access their funds. Also, they don’t say whether customers will get their funds back. Whether or will they get them back at all, and they cannot even provide a reasonable timeframe.

Binance vs Cryptopia

As we recently witnessed, Binance also experienced a security breach. But the quality of communication and transparency that Binance offered cannot even be comparable to Cryptopia. First of all, you cannot even compare the involvement of Changpeng Zhao, the CEO of Binance, and Alan Booth the CEO of Cryptopia. Alan hasn’t tweeted since October 2018, and Cryptopia’s Twitter account isn’t a good example of communication as well. Binance ruled out multiple tweets a day, explaining everything and answering to almost everyone’s questions. But you sure can’t say that about Cryptopia! Since the announcement about liquidation, they have posted 3 tweets including the one with the announcement.

Funny enough, their CEO once in an interview to CoinCentral said:

“So, for us [Cryptopia], the first thing is trust. If people can’t trust your brand, and that means every part of it, you’re not going to succeed.”

It looks like they deliberately chose the path of not succeeding.

People are really frustrated.

Source:

https://support.cryptopia.co.nz/csm?id=kb_article&sys_id=20d84d54db69778084ed147a3a9619bc
https://www.cryptopia.co.nz
https://www.coingecko.com/en/exchanges/cryptopia?utm_content=cryptopia&utm_medium=search_exchange&utm_source=coingecko
https://coincentral.com/interview-cryptopia-alan-booth/
https://twitter.com/cryptopiaceo?lang=en

Estonia Strengthens Their Cryptocurrency Laws

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On May 2, the Estonian government approved the Ministry of Finance’s new laws on the fight against money laundering, terrorism, and state fees. These include strengthening the cryptocurrency circulation laws. 

Priority Number One!

Financial Chief Executive Martins Helme believes that “one of the most important but not the last” step in this direction should be to tighten the conditions for virtual currency circulation and virtual wallet services.

The minister said: “The banking sector has learned a painful lesson and now we need to address new international risks, of which the risk of cryptocurrency is one of the most important.”

Moreover, he stressed that the fight against money laundering is one of the priorities of the new government. It started on Monday and will receive special attention.

Increasing fees and a background check

According to Helme, the licensing conditions will be changed for companies dealing with cryptocurrency exchange for cash and vice versa. Also, as well as for the license of a virtual wallet service provider. When issuing a license, the Money Laundering Data Bureau will check the biography and reputation of the company’s board members. To obtain the license, a foreign company will have to open a branch in Estonia. However, the license fee will increase from 345 to 3300 euros. Companies that already have a license will have to apply the requirements of the updated legislation.

Estonia – The Crypto Legislation Pioneer!

On April 24, Estonian President Kersti Kaljulaida approved the new Estonian government with the head of the Center Party, Jiri Ratas.

In Europe, Estonia is a pioneer in the legislation development that favors the cryptocurrency sector. The small Baltic state was the first to issue operating licenses to cryptocurrency companies. Now the number of crypto-companies registered in Estonia is around 1000. The regulator issues two types of licenses. According to the Estonian news agency Err.ee – in 2018, Estonia licensed 444 wallet providers and 526 cryptocurrency trading platforms.

Estonia is known for its advanced electronic government infrastructure. Also, the country has a unique electronic residence program that provides individuals and corporations with access to fast and cheap services. The License process takes only two weeks. Compliance with legislation is an important precondition for obtaining an operating license.

Source:

https://kripto.media/igaunija-kriptovalutu-aprite/

Photo by flickr.com

Previously Hacked Crypto Exchange Zaif Resumes Their Services.

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A Japanese cryptocurrency exchange Zaif, which was previously hacked for about $60 million, resumes operating on their services. Last year September 19, the hackers stole $60 million in BTC, BCH, and MONA with unauthorized access to the exchange’s cold wallets. The good thing is that the company had its own asset reserve of around $20 million. They made an agreement with a Japan investment company called Fisco to receive a $44.5 million investment in exchange for a large share of ownership.

Zaif Changes Owners

Based on the previously mentioned investment by Fisco, this Monday, April 22, Zaif officially signed over its business to Fisco. During all this time since the hack in September 2018, the exchange’s services (trading, depositing, withdrawing, and registering) weren’t operating. Now everything is back up and running. The new owners reinstated all services on Tuesday, April 23. However, while previously the company’s owners said that the investment from Fisco will be in exchange for a large share of the company, now it sounds like they are handing it over completely.

Refunds Users Lost Funds

As mentioned before, Zaif had an asset reserve of $20 million which they dedicated to refund its users. Fisco added their part of $44.5 million. The company explains that all the BTC and BCH holders have received their funds back. However, users who held MONA received only about 60% back in crypto. The rest of the compensation consisted of Japanese Yen at the rate of 144.548 yen per MONA.

Source:

https://www.coindesk.com/hacked-crypto-exchange-zaif-resuming-full-services-under-new-owner
https://corp.zaif.jp/info/10789/

Photo by Zaif.jp

eToro is About to Launch Stablecoin Versions of Major Currencies!

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eToro is a Cyprus-based social trading and multi-asset brokerage company. Recently they announced plans of implementing eight stablecoin versions of other major currencies. Currencies such as the Euro, Yen, and Swiss francs within their platform. They believe that users are in need of this feature.

eToro Launching a Crypto Exchange

eToroX is the new crypto-to-crypto service/exchange that eToro is about to launch, and implementing eight stablecoins is just an introduction of an ambitious plan to offer tokenized versions of other assets. These assets might also include precious metals and fine art.

If you need to refresh your memory on what is a stablecoin – read our explanatory article!

The major problem with stablecoins is that many skeptics believe that usually, companies haven’t got the reserve of fiat to fully back the stablecoins on a one-to-one basis. However, eToro claims that their company is backing the stablecoins with futures contracts.

Concerns of the Public Demand

Arieh Levi, a senior analyst at CB Insights believes that the users will stick to their platforms which they already use:

“It’s a pretty saturated market in terms of crypto trading. I’m not sure there will be too much demand as the existing players will likely stick to the platforms they already use.”

Yoni Assia, the CEO of eToro. Image source: flickr.com

However, eToro CEO Yoni Assia stresses that he believes that there will be demand for these type of assets. He says that many traders would want to “bet on the price movement of Bitcoin against currencies like the Canadian and Australian dollar.”

The main concern is that eToro will have to compete with such industry giants as Binance and Coinbase Pro.

Pushing Into the U.S. Market

The launch of eToroX exchange is a part of getting into the U.S. market. Recently eToro began offering a few of the most popular cryptocurrencies like Bitcoin, Ethereum, Ripple and etc.. This was done specifically for the U.S. market. Now, eToro claims that around four or five percent of new registrations come exactly from the U.S. They are pleased with these numbers and believe that they are doing the right thing.

While many think that the bear market is over for quite some time, for the average millennial trader, it might not seem that way. However, along with the bull market, new traders will be coming in and the need for a wider range of platforms will be in demand. From that point on, we believe that it’s only a matter of marketing for eToro.

Source:

http://fortune.com/2019/04/16/etoro-exchange/

Photo by flickr.com

Lithuania changing its crypto regulations for ICOs again!

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Lithuania yet again plans to update regulations for ICOs (Initial Coin Offering), virtual currency exchanges and depository wallet operators. Also, they plan to introduce requirements for them to ensure effective prevention of money-laundering and terrorism funding.

Transparent legal environment

Sigitas Mitkus, director of the Finance Ministry’s financial market policy department commented on the issue. “We want to create a transparent legal environment for virtual currency exchanges, depository wallet operators and ICO initiators. We also want to contribute to ensuring better consumer protection,” he said in an interview.

Under these amendments, only legal entities and their branches registered with the Center of Registers will be able to act as operators. They will also have to execute the Law on the Prevention of Money Laundering and Terrorist Financing. Also, they will have to check the clients’ identity and inform the Financial Crime Investigation Service about large financial transactions, he said.

It will be a requirement for companies to identify their clients and check their identity before providing services. However, this applies only if the operation value exceeds 1,000 euros. Also, they need to provide information to the FCIS, if the operation value is now less than 15,000 euros.

Going even further than EU directive

“By introducing limits for financial operations, we are going further beyond the EU directive. We will probably become the first in the world to implement the FATF (The Financial Action Task Force) recommendations and apply the requirements not only to the conversion of virtual currency to traditional ones and vice versa, but also when converting one virtual currency into another,” Mitkus said.

The amendments are aimed at transferring the fifth EU Anti-Money Laundering Directive (AMLD 5) and the FATF recommendations, adopted in October, into Lithuanian law.

Lithuania is very actively trying to find a proper regulation for crypto!

At the beginning of this year, the Bank of Lithuania issued an updated document on its official position on cryptocurrency and Initial Coin Offerings (ICO). Arguing that financial market participants are still allowed to receive payments only in the traditional fiat currency and it is forbidden to receive payments in the cryptographic currency.

At the beginning of March, the Financial Transactions Working Group issued preliminary guidance on cryptographic currency. Urging states to prevent money laundering and terrorist financing. Also, to provide licensing in the crypto sector and adapt the “Know Your Customer” principle.

Source:

https://kripto.media/lietuvas-finansu-ministrija-plano-sagatavot-grozijumus-likumos-par-kriptonozares-kompaniju-darbibu/
https://www.baltictimes.com/lithuania_plans_to_step_up_virtual_currency_control/

How to Short Bitcoin? A Beginners Guide

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In this article, we will overlook how to short Bitcoin. Most beginner traders think that you can only profit from cryptocurrency price increasing. The basic belief is that if Coin A goes up in price – you profit, but if coin goes down – you lose money. However, this is a very common misconception between underdeveloped financial instrument traders such as altcoin pairs in small exchanges or just inexperienced traders. This brief guide will teach you what is shorting and how you can short Bitcoin.

What is shorting?

The definition of shorting is borrowing any asset or security and selling it with a belief to later sell it for a lower price and after giving back the security keeping the sell-buy price difference. In the essence one is shorting if he believes that the price is going to go down, however, shorting can be used as a tool for hedging. Usually for borrowing assets from a broker for shorting you need to pay some interest, however, some brokers offer a shorting interest free marking it up in trading fees.

Example of shorting

John is grocery shopping at his local market and sees that bag of apples costs 100 USD. John thinks that the price is far from the real value of the bag. He goes to his friend`s house and borrows a bag of apples. Then he goes back to the market and sells his bag. A week later, he comes back to the market and sees that apples now cost 80 USD per bag. He buys a bag for 80 USD brings it back to his friend’s house. The total outcome of this is that John has earned 20 USD due to the fact that he sold the bag for 100 USD and bought it back for 80 which leaves him with 20 USD difference.

You can short Bitcoin on following exchanges

How to short Bitcoin on BitMEX

Lets image that you want to short Bitcoin. The steps that you need to take are as following:

  • Log in or create your own BitMEX account
  • Select your order type: Limit order will let you set exact buying/selling price, market order will execute trade at current market price, Stop market will place a stop-loss at market price when price reaches your target,  Stop limit will do a limit order with stop-loss, Trailing stop will execute order with set price limit from a floating point, take profit-limit will set an opposite order of your current position at your chosen price and amount, Take profit-market will place an opposite order of your current position at certain point and amount within market price.
  • Place your order and you are good to go! Remember to always adjust your margin.

Disclaimer: Always trade with cautions. This guide is for educational purposes only and is not financial advice. Any content displayed is not encouragement for any specific financial decisions e.g. shorting Bitcoin.