eToro and DS TECHEETAH change face of sponsorship with unique profit only deal









eToro and DS TECHEETAH change face of sponsorship with unique profit only deal

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eToro and DS TECHEETAH change face of sponsorship with unique profit only deal



















Global investment platform eToro has launched a first of its kind sponsorship deal with reigning  double Formula E Champions, DS TECHEETAH. eToro will stake £1million for DS  TECHEETAH to invest on its platform and the team will keep any profits made. 

DS TECHEETAH will invest the money in some of eToro’s top investors, using eToro’s  innovative CopyTrader feature. The team will also invest in themes that align with the team’s  values by investing in two of eToro’s thematic portfolios: Renewable Energy and Driverless. The  latter portfolio contains a number of stocks in the electric car sector, including Stellantis – the  owner of DS Automobiles, the manufacturer of DS TECHEETAH. 

eToro believes that this is the first time in the history of sport sponsorship that a deal has been  structured in a way where a team risks its profits on the stock market, as the amount of money  collected will depend on CopyTrader Investor performance. Traditional sponsorship models are  based on a set fee, whereas in this case, it is fluid. 

Dylan Holman, Global Sponsorship Manager of eToro, said:

‘We are excited to work with  DS TECHEETAH, who believe in our product as much as we do. We hope that by structuring  our partnership in this unique way, we can raise awareness to more people around the world of the potential to grow their wealth through investing. We hope to work with more companies in a  similar way in the future. 

“2020 saw a meteoric rise in retail participation in capital markets and we think this trend is here  to stay. People want simple access to markets. eToro is a social investing platform where  people can execute trades, but also see what others are doing and talk to each other. We were  the first to bring social investing to the masses and took this concept one step further by  inventing CopyTrader.”  

CopyTrader allows users to automatically copy the same trades as top investors in proportion to  the amount users choose to invest. To copy an investor on eToro there is no cost and trades  are carried out at exactly the same time and at the same market rate. CopyPortfolios offer  people access to thematic investing. 

Keith Smout, Chief Commercial Officer of DS TECHEETAH, said: “We always want to be at  the forefront of innovation, which is one of the key values of Formula E and DS TECHEETAH.  There is a lot of synergy with this deal as a number of the DS TECHEETAH team, including two time Formula E Champion Jean-Eric Vergne, have been using eToro’s CopyTrader. We have  seen the benefits of investing in the financial markets and we’re excited about this partnership,  as we aim to help demystify investing to our fans throughout the season.” 

This partnership sees eToro gain global exposure through an extensive range of marketing  opportunities including featuring on the livery of the DS E-TENSE FE20, the team environment,  digital rights, VIP tickets and more. 

To find out more about eToro CopyTrader, please visit our website

About eToro 

eToro was founded in 2007 with the vision of opening up the global markets so that everyone can trade  and invest in a simple and transparent way. The eToro platform enables people to invest in the assets  they want, from stocks and commodities to cryptoassets. We are a global community of more than 19  million registered users who share their investment strategies; and anyone can follow the approaches of  those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold  and sell assets, monitor their portfolio in real time, and transact whenever they want. 

About DS TECHEETAH 

DS TECHEETAH Formula-E team is a Chinese racing team in the all-electric street racing series, ABB  FIA Formula E. The team is owned by SECA (Shanghai) Limited. The 2018/19 season saw DS  TECHEETAH secure both the Drivers’ Championship with Jean-Éric Vergne and the Teams’  Championship in the first year of our partnership with DS Automobiles. In the 2019/2020 season, DS  TECHEETAH claimed its second back-to-back Teams’ and Drivers’ Championship titles, this time with  Antonio Felix Da Costa at the helm. TECHEETAH holds the record of most back-to-back Driver wins with  Jean-Éric Vergne and Antonio Felix Da Costa securing the Driver titles in 2018, 2019 and 2020.

Disclaimer: eToro is regulated in Europe by the Cyprus Securities and Exchange Commission, by the Financial  Conduct Authority in the UK and by the Australian Securities and Investments Commission in Australia. This communication is for information and education purposes only and should not be taken as  investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial  instruments. This material has been prepared without taking into account any particular recipient’s  investment objectives or financial situation, and has not been prepared in accordance with the legal and  regulatory requirements to promote independent research. Any references to past or future performance  of a financial instrument, index or a packaged investment product are not, and should not be taken as, a  reliable indicator of future results. eToro makes no representation and assumes no liability as to the  accuracy or completeness of the content of this publication.




A Year in Review: Why AdEx Grew by 3,800%

A Year in Review: Why AdEx Grew by 3,800%

Industry

A Year in Review: Why AdEx Grew by 3,800%


AdEx Network, a decentralized advertising platform built to tackle some of the major inefficiencies in the advertising market — such as a lack of transparency and traffic fraud — has now been out of beta for an entire year.

In this time, thousands of clients have leveraged its technology to launch hundreds of campaigns, each of which provided a seamless advertising experience for end-users while improving ad spend and revenue for advertisers and publishers.

Here, we take a look at what AdEx has been up to in the last year and examine why it has grown substantially in this period.

Meteoric Growth

In February 2020, AdEx Network exited its private beta and opened its decentralized advertising marketplace to the world, allowing both advertisers and publishers to connect and deal with one another securely.

As a platform that allows advertisers to dramatically improve the return on their ad spend by cutting out advertising fraud and improving transparency, AdEx has seen incredible uptake among advertisers who want to ensure their advertising budget is deployed efficiently. On the flip side, publishers are increasingly turning to AdEx to monetize their traffic without losing a massive chunk to intermediaries or contending with large withdrawal thresholds that effectively eliminate the smaller players.

At the time of the private beta, AdEx had just 159 private beta users. Now, the platform has a whopping 6,200+ users combined (including both publishers and advertisers), representing year-on-year growth of 3,800%. It also launched a staggering 887 advertising campaigns last year alone and is on track to smash this number in 2021.

The reasons behind this growth are obvious. By leveraging blockchain technology while providing an extremely simple marketplace for advertisers and publishers, AdEx is able to massively improve the efficiency and effectiveness of online advertising — allowing advertisers to get the best bang for their buck by eliminating ad fraud while giving publishers a way to easily monetize their traffic in a way that was previously not possible.

Significant Milestones

As a platform built to help advertisers secure quality traffic and publishers better monetize their advertising potential, AdEx has introduced a number of important upgrades in the last year which help accomplish exactly this.

Back in March 2020, AdEx overhauled its policies to better ensure advertisers only pay for high-quality traffic. This included enforcing a verification process for publishers as well as several changes to its AdView policies — including only counting ad impressions if at least 5 seconds are spent on the page the advert is served on.

AdEx also introduced a major upgrade in July 2020, which dramatically improved the user experience, campaign results, and flexibility for both advertisers by allowing them to select from an array of advanced campaign parameters, including the option to include or exclude incentivized traffic, limit average daily spending, and set CPM ranges. On the publisher side, they can now choose to display adult adverts (if available) and benefit from automatic categorization based on their content — helping to reduce setup efforts and minimizing errors that could reduce the number of campaigns they participate in.

On top of this, following massive user demand, AdEx expanded the range of funding options available, allowing publishers to pay in a variety of other cryptocurrencies (inc. BTC, ETH, and XRP) and fiat currencies (inc. USD, EUR, and GBP) — opening the platform to an increased range of advertisers and publishers.

Taken together, these changes have made AdEx a more efficient and inclusive marketplace for advertising campaigns, and have contributed to its significant growth in the last year.

The AdEx Token

As a blockchain-powered advertising solution, AdEx uses a network of validators to ensure that traffic is both genuine and the figures reported are accurate. To help participate in the validation process, users must stake the native utility token of the platform — known as AdEx (ADX).

By participating in the validation process, users share a fraction of the fee that is allocated to validators — this is equivalent to 7% of the campaign budget. At the moment, new stakers can expect to earn around 120% APR on their balance, whereas some of the earliest stakers are still enjoying over 200% APR.

The growth of AdEx combined with these impressive staking figures has also had a knock-on effect for the value of the AdEx (ADX) token, which demonstrated similarly impressive performance in the last year — climbing by more than 600% in this time while seeing its trading volume grow in tow.

This makes it one of the best performing micro-cap cryptocurrencies in the last year, demonstrating the strong uptake of AdEx advertising solution and its highly accessible staking solution.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

Huobi Futures Makes its Partnership Program More Profitable with Transaction Fee Rebate Boost

Companies

Huobi Futures Makes its Partnership Program More Profitable with Transaction Fee Rebate Boost


Huobi Futures has seen significant demand over the last year with its annual trading volume ranks first globally. Open interest and trading volume have been soaring, and new user registrations are increasing by the day.

To share the runaway success with the cryptocurrency community and to contribute towards growth across the ecosystem, Huobi Futures has made its “Invite Friends” partnership program even more lucrative than before with a transaction fee rebate increase.

Here’s more about the rebate appreciation and the program itself.

Invite Friends” Incentives Boosted From 40% To 60% Contract Rebates

Huobi Futures, a leading cryptocurrency derivatives provider, has expanded upon its “Invite Friends” program for the first time, raising the partnership incentives from 40% in contract transaction fee rebates to 60%.

The partnership program has always been a “win-win” for the industry, boosting the development of DeFi and accelerating the adoption of digital finance and assets while also rewarding users who contribute to growth.

All About The Upgraded Contract Transaction Fee Rebate Offer

Interested parties can apply to the referral program via the registration form in just a few clicks and only a few moments of worthwhile time spent. Huobi evaluates the qualifications of all applications within ten business days or in as little as 24 hours.

At the moment applicants receive approval, they can begin leveraging the transaction fee rebate they get from their invitees. The contract rebate is currently applied to both coin-margined futures and coin-margined swaps offered by the derivatives platform.

Rebates are generated from each invitee’s net transaction fees. More invitees would result in a larger revenue stream. Three levels are offered for one year, two years, and permanent, each providing different maximum earnings thresholds per invitee and channel. Levels reached depend on the number of invitees with active trading accounts, and accumulative trading volume.

Addition rules relate to risk controls, code of conduct, and more apply, meaning that applicants must maintain specific integrity standards, ensuring that the program itself is well represented in the crypto community and finance world.

Why Choose the Rebate Program of Huobi Futures?

Joining the Transaction Fee Rebate Program of Huobi Futures indicates that you can not only receive the 60% fee rebate from your friends, but also enjoy the below benefits with your friends:

  • an excellent liquidity;
  • a comprehensive product line covers coin-margined futures/swaps, USDT-margined swaps and USDT-quoted options;
  • a mature risk-control system and top-level technique to ensure asset safety;
  • abundant innovative functions like “Locked Margin Mechanism” and “Ratio-based Take Profit & Stop Loss”;
  • VIP+1 policy with evaluation based on USD instead of BTC;
  • 7*24 point-to-point service on this one-stop derivatives trading platform.

How to Learn More and Become a Huobi Partner

Who we want:

  1. KOLs, media or institutions with rich resources;
  2. Huobi’ followers who hold a similar value with Huobi Futures;
  3. Any users who have a huge interest in our referral program.

How to register:

Users can register to take advantage of this exciting expanded offer by using the Huobi “Invite Friends” registration form or by emailing app@huobi.com.

Emails must include “Huobi UID, business country and region, own resources and background, brief business plan, self-introduction, personal WeChat/Telegram or mobile phone number and other information.”

 

For more information, visit Huobi Global.

Cryptos Rally off Equity Markets and Institutional Interest

Bitcoin

Cryptos Rally off Equity Markets and Institutional Interest


The Crypto market rose on Monday as new macro factors and institutional interest weighed in.

Cryptos Recover from Selloff

Following last week’s sell-off, Bitcoin and the broader crypto market rallied alongside the US equity markets. Bitcoin (BTC) retraced back up to $49,000, with Ethereum (ETH) recovering to $1,500. The biggest crypto names all recovered to varying degrees, except for Cardano (ADA) which saw a small dip to $1.24 earlier today. In the equity markets, the Dow soared 603 points and NASDAQ 496 points respectively, as treasury yields cooled and the Congress revealed that the stimulus package was well on its way. 

The stimulus package may also turn out to be a significant boon to the Bitcoin rally. The $1,400 direct payments to all eligible Americans will likely find its way to the crypto markets. Historically speaking, this has been the case. When the past two stimulus checks were passed by regulators, exchanges surged in usage. 

In 2020, CoinTelegraph reported that deposits equal to stimulus check payouts appeared across crypto exchanges. An analyst team from Bank of America stated in late January that a dramatic increase in retail activity was imminent with another round of stimulus checks.

With a renewed public interest in Bitcoin and altcoins, the stimulus injection will most likely serve as another catalyst for the continued bullish trend well into the 2nd quarter of 2021. 

Major Bank Revamps Crypto Trading Desk

Per Reuters London, Goldman Sachs Group Inc restarted its cryptocurrency trading desk, selling bitcoin based financial products to clients starting from next week. With more institutions taking advantage of Bitcoin and other fast-growing digital assets, Goldman is rebooting its operations from 2018. They will offer derivatives based on Bitcoin futures and explore a potential crypto exchange traded fund (ETF).

As new opportunities in the blockchain space arise with the likes of the Central Bank exploring a potential Central Bank Digital Currency, the bank looks to reestablish its crypto-based offerings and infrastructure. Goldman Sachs is one of the first major banks to offer crypto-tied financial products to its clients, and without a doubt, many more will likely follow. 

Featured Image from UnSplash 

Nearly 20% of Bitcoin Supply Hasn’t Budged In 7 Years

bitcoin supply seven years btc

Bitcoin

Nearly 20% of Bitcoin Supply Hasn’t Budged In 7 Years


Bitcoin price is appreciating at full steam because the market consists of nothing but buyers at the moment. Those who already own the abundance of the currently circulating supply are holding strong and refusing to sell. However, data shows that nearly 20% of the entire circulating supply hasn’t moved in seven years. Are those coins held by the strongest holders yet, or are there other reasons the large share of BTC supply hasn’t moved in so long?

Almost 20% Of BTC Supply Hasn’t Moved In Seven Years Or More

Bitcoin is struggling to get back above $50,000 currently, but it might not be long before it does so. The available supply of BTC on cryptocurrency exchanges is at an extreme low, and what little supply is available is being bought by institutions at a rate of 13,000 BTC per week on Coinbase Pro alone.

Corporations are buying BTC by the thousands, planning to hold the volatile asset as an alternative to cash reserves at risk of inflation. Those that do buy into Bitcoin, typically do have a plan to hold for a set amount of time, or have a certain price in mind.

RELATED READING | BITCOIN TREND STRENGTH MORE POWERFUL THAN 2017, ONLY JUST BEGINNING

Most crypto believers and financial analysts who understand the asset’s digital scarcity expect the price per BTC to reach hundreds of thousands by the time the current bull cycle is over. With investors knowing this, they’re not selling at any price below it. Miners have been selling, but even that has begun to dry up.

glassnode bitcoin hold waves

Bitcoin "HODL" Waves show how long the supply has been held for | Source: glassnode

Still, the ultimate goal with Bitcoin for most participants is to try to sell as close to each top as possible, taking as much profit as they can. That makes the holding threshold roughly four years or less.

However, data shows that as much as 17.87% of the circulating Bitcoin supply has been held for as long as seven years or more. But why?

Lost Bitcoin, Or The Strongest Holders Crypto Has Ever Seen?

At some point during that time, the cryptocurrency would have gone through two bear and bull cycles, and appreciated from $1,000 or lower to now $50,000 per coin.

RELATED READING | COINBASE CONSIDERS BITCOIN CREATOR A RISK TO BUSINESS, HERE’S WHY

Perhaps those holding these coins are poor at timing the top, and end up getting stuck holding on the way down. Maybe they’ve got a long term plan or price point in mind, and after seven years it still hasn’t been reached.

bitcoin btc supply coins

Anyone holding seven years or longer bought before that line | Source: BTCUSD on TradingView.com

The most likely answer, however, is that these coins are lost – forever. A sizable portion of those holding seven years or more, have actually been at it ten years or more. The longer the coins have been held, the more likely the chance they’re locked away and inaccessible.

Even Satoshi’s coins, spread among wallets said to contain more than 1M BTC, haven’t moved in that long and could be gone forever. In the rare event that the coins are still accessible, after seven or more years of price appreciate, are bound to be worth a fortune.

Featured image from Deposit Photos, Charts from TradingView.com

New Indicators Point to Bitcoin Sell-off Slowing Down

bitcoin tulip mania

News

New Indicators Point to Bitcoin Sell-off Slowing Down


New Indicators Point to Bitcoin Sell-off Slow Down 

As Bitcoin recovers from recent lows of $43,500, new indicators have shown that the sell-off may be slowing down.

SOPR dips in “full reset” 

For the first time since September 2020, the SOPR (Spent Output Profit Ratio) indicator dipped below 1. This indicator, which tracks the variation between purchasing price and sale price, is used to represent overall market profit and loss. A value greater than 1 implies that cumulatively, people are selling at a profit; whereas a value below 1 shows that people would be selling at a loss. 

The graph above shows that investors were recently selling their Bitcoin positions at a slight loss. However, this may be a positive sign. Corrections during bull markets drive the SOPR value below 1, but only momentarily. This is because traders and speculators remain optimistic that price levels will recover. 

Bitcoin Supply Continues to Decrease

Bitcoin’s recent supply shortage is another reason to remain optimistic. With yesterday’s news that Bitcoin miners have begun accumulating mining rewards and total net realized losses reaching yearly high of $243 million on Saturday, Bitcoin’s available float has likely dwindled. 

In the past month alone, GrayScale Investments purchased more than $700 million worth of Bitcoin and Ethereum. If similar levels of corporate demand and massive institutional purchases continue in the near future with similar supply levels, the top cryptocurrency will likely see new all-time highs. 

Featured image from Unsplash

Why The Bitcoin Price Recently Found Support At $46K

Bitcoin

Why The Bitcoin Price Recently Found Support At $46K


After plummeting from $46k to $43k on Sunday, Bitcoin managed to hold onto the critical support level of $46,000.

Breaking Down Bitcoin’s Price Action

Down 20% from its all-time high reached earlier this month, Bitcoin finds itself in correction territory – a sharp change from the almost uninterrupted year-long bull run.

With a relative strength index (RSI) of 45, Bitcoin looks to be oversold – a signal that it certainly has more upside potential in the short term. 

The commodity channel index (CCI), another short-term valuation metric that can be used in conjunction with the RSI, points at Bitcoin emerging from the heavily oversold territory at $43k and moving at the start of a new uptrend.

BTC continues to touch the lower bound of its Bollinger Bands on the daily time period, a strong bullish signal indicating the asset is heavily oversold. However, the previous candle closed over the Bollinger band on the weekly timeframe – interpreted as a neutral or slightly bearish signal for Bitcoin.

Just below its weekly pivot point of $46.2K, Bitcoin potentially appears to be on the verge of a breakout, and investors should watch the price action of Bitcoin closely if it is able to recapture this price level. Another crucial pivot point to watch out for is $52K. If Bitcoin manages to breach this, another price surge would likely occur. 

On a fundamental level, analysts and investors are concerned with a repeat of the 2018 major correction – but there is significant reason to believe this is relatively unlikely. Philip Swift, a cryptocurrency analyst, has pointed out that:

Spent Output Profit Ratio (SOPR) has now reset (green on the chart) meaning that wallets selling are now selling at a loss. This is a strong ‘buy the dip’ signal in a bull market.  This alongside derivative fundings having reset is bullish.

Any asset pulling back from all-time highs are expected within a short time period in such a heated market – the 2017 rally was marked with pullbacks to price levels of %15-25 before breaking through the $20,000 barrier.

With the fundamentals of Bitcoin vastly improved in terms of mainstream adoption and institutional use, analysts are optimistic that this recent pullback will not last long. As the technical indicators on a weekly and daily basis point to it being oversold, now may be an essential time for traders to consider the considerable upside of the asset. 

But high volatility in the market caused by political decisions such as in Nigeria and the Federal Reserve’s comments could lead to Bitcoin diverging with its technical indicators and dropping to even lower support levels. 

Featured Image from Unsplash

Bitcoin Analyst Sees “Aggressive” Bull Run Towards $64,000; Here’s Why

Bitcoin

Bitcoin Analyst Sees “Aggressive” Bull Run Towards $64,000; Here’s Why


Bitcoin prices could undergo an aggressive bull run in the coming sessions, with their upside price targets lurking anywhere between $60,000 and $64,000.

The bullish analogy comes from TradingShot, an independent analytics firm known for accurately predicting Bitcoin’s previous close above $50,000. Their analyst noted that BTC/USD has been trading inside an ascending channel range, defined by an upper trendline resistance, a median, lower trendline support.

He spotted a fractal pattern. Of late, Bitcoin typically pullbacks after testing the Channel’s upper trendline to test the median line as support. Later, the cryptocurrency breaks bearish towards the Channel’s lower trendline—the so-called “Support Base,” before retracing its move upward to retest the media, this time as resistance.

In 2021, Bitcoin is reiterating the fractal. The cryptocurrency has just bounced off the support base after correcting 21 percent from the Channel’s upper trendline above $58,000. Meanwhile, it now tests the median line (coupled with the 50-4H moving average wave) as resistance.

The TradingShot analyst noted that a successful break above the median line would put Bitcoin en route to testing the Channel’s upper trendline. It could also happen as the cryptocurrency’s Relative Strength Indicator forms higher lows, indicating room for further accumulation on each downside attempt.

“All the parameters suggest that based on that Channel Up, the price has most likely found its medium-term Support,” the analyst wrote. “If the 4H MA50, but more importantly the Channel’s median, break, then an aggressive path may open towards the $60-64k zone.

“However,” he added, “if the price gets rejected on or below the median, the Support base will most likely get tested again where consolidation below the median may follow for around 10 days until it breaks.”

Fundamentals

TrdingShot’s analogy appears in the wake of Bitcoin’s relentless uptrend since the coronavirus pandemic began. The cryptocurrency rose from $3,858-low in March 2020 to as high as $58,367 in February 2021—a more than 1,200 percent rise in just eleven months.

At the core of Bitcoin’s price rally were the US Federal Reserve’s near-zero lending rates and its unlimited bond-buying policy. The dovish programs forced the yields on US Treasury bonds lower, prompting investors to move their capital in far riskier markets.

Meanwhile, the prospect of the Fed’s quantitative easing, coupled with the US government’s trillions of dollars worth of stimulus, pushed the US dollar index down by more than 12 percent. All of it helped Bitcoin, a non-yielding asset with a limited supply cap of 21 million. Investors flocked to the cryptocurrency after assessing its gold-like anti-inflation features.

Hence, BTC/USD boomed, helped further by an adoption spree that saw firms like Tesla, MicroStrategy, Square, and others add billions of dollars worth of BTC into their balance sheets.

Bitcoin Risks

But an overzealous capital inflow into the Bitcoin market has also increased the fears of it being a bubble. Many analysts fear that the cryptocurrency deserves a big downside correction to neutralize its overvalued levels. The worries have grown further as the bond yields recover to pre-pandemic levels, making Treasurys attractive enough to hold.

“That’s because as yields go on a run, then money will flow into government bonds, which also means the U.S. Dollar Index (DXY),” said Ben Lilly, an independent cryptocurrency analyst. “These two types of flows can hurt bitcoin and crypto, as we saw late last week.”

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin price bounces off its 200-MA wave. Source: BTCUSD on TradingView.com

Bitcoin was trading 16.14 percent lower from its previous record high at this press time.

Ethereum DeFi Trends Set To Dominate 2021

2020 was the year of DeFi, not just in terms of the explosive price increases – but the technological advances and support from public figures.

From the growth of UniSwap, Chainlink, AAVE, and BNB into the top 20 tokens by market cap to tech billionaire Mark Cuban revealing his positions in the aforementioned tokens, one must wonder what comes next. 

Improved security and auditing of contracts. 

Exploits performed by hackers on vulnerable DeFi smart contracts resulted in the loss of tens of millions of funds throughout 2020 and early 2021.

Flash loan attacks, where hackers can borrow large uncollateralized quantities of ETH and extract funds from exchange through complex arbitrage opportunities between stablecoins or manipulation of price oracles (the price providing part of a smart contract that interacts with market data outside the chain).

Auditing smart contracts before they go live as part of yield farming or lending strategies by third-party firms such as Nexus Mutual is necessary – and becoming the accepted norm for DeFi platforms. Users becoming acquainted with the basics of DeFi development processes and community-led initiatives to ensure complete auditing of contracts are also vital to its long-term resiliency.  

ETH 2.0

DeFi has grown from the Ethereum ecosystem but has reached a point where it is almost impossible to continue in the current Ethereum paradigm. ETH 2.0 promises lower fees – lending itself to the higher scalability that is needed for the financial products of the future. But more than lower fees, ETH 2.0 will hopefully address the first point raised.

As a proof-of-stake chain, Ethereum miners will be unable to modify blocks that have already been validated – ensuring the robustness needed for a secure financial ecosystem. Projects like Binance token (BNB) and Cardano (ADA) plan to capture the DeFi market through their blockchains, but with the overwhelming majority of initial development done on Ethereum, ETH 2.0 would likely place the chain in a dominant position over DeFi. 

Regulatory Pressures

Regulatory focus on crypto has primarily been placed on tax evasion and other fraudulent activity. DeFi. The regulatory framework for DeFi by the governments of the US, China, Russia is nearly non-existent.

Minimizing exit scams, implementing KYC on DEXs (decentralized-exchanges), and preventing money laundering remain pressing concerns.

Overbearing regulation, including policy, targeted explicitly at obstructing DeFi is a critical macro risk that users and project CEOs must be aware of and account for. Government Policy could ultimately end up much favoring centralized exchanges such as Coinbase – which filed to go public on the 25th. 

Featured Image from Unsplash

Citi’s Bitcoin Report Does Little in Offsetting Yield Fears; Price Down Again

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin

Citi’s Bitcoin Report Does Little in Offsetting Yield Fears; Price Down Again


Bitcoin kickstarted the week with an incredible recovery rally, negating a considerable portion of its losses from the previous weekly session against a downside correction in US bond yields.

Nevertheless, the flagship cryptocurrency’s intraday bull run failed to garner further higher bids on Tuesday. A sell-off at the local top ensued due to profit-taking sentiment, pushing its prices lower by as much as 3.72 percent to $48,380. Bitcoin was still up 7.5 percent on a week-to-date timeframe.

Part of the cryptocurrency’s gains also received a boost from Citi’s latest report on cryptocurrencies. The investment bank concluded that Bitcoin could become a currency of choice for international trade. Nonetheless, the upbeat projections did little in maintaining the asset’s intraday bias.

Bitcoin’s downside move Tuesday appeared in the entire cryptocurrency market, with top tokens like Ethereum and Binance Coin each tailing Bitcoin to its intraday losses. Overall, the crypto market lost about $23 billion during the Asia session, setting the forthcoming periods on alert mode about potential declines.

Yields FUD

Bitcoin’s 21 percent price decline last week and its recovery on Monday appeared in response to the ongoing turbulence in government-bond markets. Global 10-year interest rates rose on optimistic economic growth forecasts, putting pressure on assets that performed well against falling yields in 2020. As a result, bitcoin plunged alongside tech stocks.

But on Monday, the yields stabilized, providing the cryptocurrency a break from its corrective moves. It received a further boost after Australia’s central bank responded to rising bond yields by doubling its Treasury purchases. Interest rates move inversely to bond prices.

Analysts noted the US Federal Reserve would need to take a similar call. Crypto economist Ben Lilly said in his weekly newsletter that rising yields would push the cost-to-service debt higher, which is “very troubling in an economy that’s still operating at less than full capacity in light of COVID.”

“It’s why J-Pow and the Federal Reserve can’t sit idle,” Mr. Lilly added. “Let me rephrase that… It’s why they haven’t sat idle. They are already acting in the markets by purchasing U.S. debt (bonds).”

US Treasury, Fed Total Assets

The US Federal Reserve’s balance sheets as of this week. Source: FRED

Bulls have long perceived central banks’ intervention into the bond markets as optimistic for Bitcoin. As they rake up Treasurys, they effectively push the yields on them lower, making them less attractive for other investors. As a result, the money starts flowing into riskier assets.

Bitcoin…

…rose by more than 1,200 percent after the Fed launched its unlimited bond-buying program and slashed interest rates to near-zero last March. Meanwhile, the Wall Street indexes also posted incredible rallies amid the central bank’s expansionary policies.

“The more central banks around the world purchase assets, keep yields low, and continue to add more ink cartridges to the money printer, the more vertical this cycle might be,” noted Mr. Lilly. “However, if the FED decides to change course and tighten up, this can act as a major headwind for crypto.”

The 10-year US Treasury note’s yield was near 1.415 percent on Tuesday, a slight down from its previous day’s close at 1.422. Investors now await Fed official appearances for clues about whether the central bank will do anything about the rising interest rates.