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White House cryptocurrency ‘roadmap’ recommends against pension funds

The Biden administration touted its comprehensive framework and encouraged regulators and Congress to tighten the screws on crypto in a new statement.

The White House released a statement on Jan. 27 that provided the United States President Joe Biden administration a roadmap for mitigating risks associated with cryptocurrencies. Much of the document was addressed to the U.S. Congress with the administration’s legislative guidance.

The authors of the statement outlined a two-pronged path forward. They wrote:

“We have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has.”

The first element in the road map is the administration’s “first-ever” comprehensive framework for digital asset development released in September. That document was based on reports mandated by the president’s executive order on Ensuring Responsible Development of Digital Assets issued in March.

Second, executive agencies are increasing enforcement and issuing new guidance. According to the statement, government agencies are developing public awareness programs “to help consumers understand the risks of buying cryptocurrencies.” It mentioned banking regulators in particular and encouraged them to continue their efforts. The statement was issued the same day the Fed denied digital asset Custodia Bank membership in the Federal Reserve System.

Notably, the statement went on to provide a wish list of actions the administration would like to see from Congress, saying:

“Congress, too, needs to step up its efforts.”

The White House has a sizable list of tasks for legislators. Its recommendations include expanding regulators’ powers, strengthening disclosure requirements, strengthening penalties for misconduct, increasing funding for law enforcement and following the advice found in the Financial Stability Oversight Council report mandated by the executive order.

Related: Virginia county wants to put pension funds into DeFi yield farming

The authors also took the opportunity to urge Congress not to do things too:

“Legislation should not greenlight mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets.”

Limiting such actions prevented the spread of the “turmoil in cryptocurrencies” to the broader financial system, they noted.

US prosecutors seek to ban SBF from Signal after alleged witness contact

It’s alleged that the former FTX CEO attempted to arrange a “constructive relationship” with the current General Counsel of FTX US, Ryne Miller.

Federal prosecutors have requested that former FTX CEO Sam Bankman-Fried’s (SBF) bail conditions are modified to prevent further alleged attempts at influencing witnesses’ testimonies. 

Court documents filed on Jan. 27 revealed that The Department of Justice (DOJ) have asked U.S. District Court Judge Lewis Kaplan to ban Bankman-Fried from communicating with “current or former employees” of FTX or Alameda.

The prosecutors have requested this after they alleged that Bankman-Fried had reached out to Ryne Miller, the current General Counsel of FTX US, over Signal and email on Jan. 15 attempting to “influence” Miller’s testimony. The document quoted:

“I would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.”

The prosecutors also requested that Bankman-Fried is banned from using encrypted communication applications. 

“The defendant shall not use any encrypted or ephemeral call or messaging application, including but not limited to Signal.”

The document further alleged that Bankman-Fried’s use of Signal is consistent with “a history” of using the application for obstructive purposes.

Related: FTX bankruptcy lawyer: debtors face ‘assault by Twitter’ stemming from Sam Bankman-Fried

It was previously reported in December 2022 that Bankman-Fried denied any involvement or knowledge of a “Wirefraud” group chat on Signal, hours before his arrest by Bahamian police.

The group chat reportedly included members of Bankman-Fried’s inner circle, including FTX co-founder Zixiao “Gary” Wang, FTX engineer Nishad Singh and former Alameda CEO Caroline Ellison – who allegedly used the group to send secret information about FTX and Alameda in the lead-up to the collapse.

This comes after lawyers representing FTX in the bankruptcy proceedings had reportedly argued on Jan. 26 that Bankman-Fried’s immediate family should face questioning regarding any financial benefits they may have received from the exchange.

Silvergate suspends dividends to preserve ‘highly liquid balance sheet’

January has been a rough month for Silvergate, with the dividend halts coming just a few weeks after it announced a Q4 2022 loss of $1B and laid off 200 employees.

California-based crypto bank Silvergate has suspended dividend payouts to preserve its “highly liquid balance sheet.”

In a Jan. 27 announcement, the firm stated that it is halting “the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital.”

The company outlined that it made the decision so that it can weather the storm of crypto winter, but did stress that it still maintains a “cash position in excess of its digital asset customer-related deposits.”

“This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry.”

“The Company’s Board of Directors will re-evaluate the payment of quarterly dividends as market conditions evolve,” the firm added.

The announcement comes just 11 days after the company posted a hefty $1 billion net loss in its Q4 2022 report on Jan. 17. Silvergate attributed its poor performance to the overall sour market sentiment which has seen investors opt for a “risk-off” approach over the past year. 

In the Q4 report, Silvegate CEO Alan Lane also used similar language to the latest announcement, noting that the company is still bullish on the crypto sector but is working to maintain “a highly liquid balance sheet with a strong capital position.”

The news of suspended dividends on Friday was met with notable losses in both its preferred (SI-PA) and common (SI) stock prices.

According to data from Yahoo Finance, the price of SI-PA dropped by 22.71% to $8.85, while SI declined by 3.76% to sit at $13.58 by market close.

Zooming out also paints a grim picture for SI-PA and SI, with the share prices declining by 60% and 87.46% over the past 12 months.

Related: U.S. home-loan banks lent billions of dollars to crypto banks: Report

This is not the only action the firm has taken to shore up its coffers this month, after it announced on Jan. 5 that it had laid off 200 employees — representing 40% of its headcount — in a bid to keep afloat.

SEC Commissioner Calls for ‘Consistent Legal Framework’ for All Asset Classes, Including Crypto

SEC Commissioner Calls for ‘Consistent Legal Framework’ for All Asset Classes, Including CryptoA commissioner with the U.S. Securities and Exchange Commission (SEC) has called for “a coherent and consistent legal framework that works across all asset classes,” including crypto assets. She warned that the SEC’s current enforcement-centric approach would take 400 years to go through all the crypto tokens that are allegedly securities. SEC’s Commissioner on Crypto […]

Hackers takeover Azuki’s Twitter account, steal over $750K in less than 30 minutes

The majority of the funds stolen were from a single wallet which had $751,321.80 USDC drained from the malicious link.

Azuki, a popular nonfungible token (NFT) project, had its Twitter account compromised on Jan. 27 leading to hackers stealing over $750,000 worth of USD Coin (USDC) by posting a malicious “wallet drainer link” posed as a virtual land mint.

Hackers stole $751,321.80 USDC from a single wallet within half an hour of the malicious links being tweeted, according to Etherscan data provided to Cointelegraph by crypto wallet security firm Wallet Guard.

The data also revealed that hackers stole a further $6,752.62 worth of USDC from various wallets holding 11 NFTs and over 3.9 Ether (ETH).

Wallet Guard stated that the total amount stolen was $758,074.42.

Emily Rose, community manager for the anime-inspired NFT project confirmed via Twitter on Jan. 27 that the Azuki account was hacked, warning users not to click any links from Azuki’s Twitter account.

Azuki’s head of community and product manager Dem explained on a Twitter Space hosted by Wallet Guard on Jan. 27 that scammers were able to “post a wallet drainer link,” after gaining control of Azuki’s Twitter account.

Dem urged users to “stay safe and stay suspicious” while the team attempted to regain control of the account.

Several hours later Azuki stated that it had regained control of its Twitter account via a tweet:

This was confirmed by Rose and Dem retweeting the announcement.

Liz Yang, head of growth at Chiru Labs, the company behind Azuki, told Cointelegraph that the team is “currently in contact with Twitter and investigating the breach,” noting that Azuki “will provide an update once we have more information.”

Related: Hackers take over CoinDCX Twitter account, promote fake XRP ads

Ohm Shah, co-founder of Wallet Guard, told Cointelegraph that “it does not matter” if an account is official or verified, users should treat everything as suspicious until proven otherwise. Shah noted:

“Don’t be the first person that clicks the link. It’s better to be paranoid in Web3 than not.”

Upon Azuki regaining control of the account, it emphasised to its followers in a tweet to always “go out on several channels” to confirm announcements.

It also noted to reach out to the Azuki “mod team” on Discord when in doubt.

This news comes after stock trading platform Robinhood’s Twitter account was compromised on Jan. 25.

The hackers pushed Robinhood’s followers to each pay $0.0005 for a token called “RBH” on the BNB Smart Chain.

Conor Grogan, the head of product business operations at Coinbase, tweeted that at least 10 people had purchased approximately $1,000 worth of the scam token before the tweet was removed.

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This YearGoldman Sachs has ranked bitcoin the best-performing asset so far this year. The cryptocurrency also tops the global investment bank’s list as the asset with the highest risk-adjusted return — above gold, real estate, the S&P 500, and the Nasdaq 100. Bitcoin Outshines Other Investments on Goldman’s Chart Global investment bank Goldman Sachs has reportedly […]

California DMV to digitize car title management system via Tezos

California DMV’s chief digital officer Ajay Gupta emphasized that the agency is looking to modernize its current systems and bring greater transparency to car title transfers.

The California Department of Motor Vehicles (DMV) is testing out the digitization of car titles and title transfers via a private Tezos blockchain.

The move is part of a collaboration between the California DMV, Tezos and blockchain software firm Oxhead Alpha, with the latter announcing t successful proof-of-concept on Jan. 25.

The California DMV has tapped Oxhead Alpha to build on a private Tezos testnet that it has dubbed a “shadow ledger.” It is essentially designed to become a blockchain-based replication of the agency’s current database.

The California DMV’s chief digital officer Ajay Gupta told Fortune on Jan. 26 that the agency is looking to have the shadow ledger ironed out within the next three months.

Following on from that, it is looking to roll out applications such as digital wallets to hold and transfer NFT car titles, with the DMV acting as a middleman to oversee such operations.

“The DMV’s perception of lagging behind should definitely change,” Gupta told Forbes.

Oxhead Alpha’s president Andrew Smith outlined that the California DMV’s blockchain initiative will serve a wide range of use cases for the agency, particularly concerning the modernization of its current paper-based systems.

Smith highlighted examples such as transaction fraud, in which car sellers hide key information about the vehicle’s condition to offload a dud or “lemon” onto unsuspecting buyers.

While faulty vehicles have a special designation on their titles in California, Smith noted that sellers can move the car over to another state and hide the faulty designations with relative ease.

With the use of blockchain-based record keeping, however, and with other DMVs potentially adopting the tech also, it would be much easier to digital track the actual history of vehicles, Smith suggested.

“As far as the benefit for having a persistent digital title, this is a very obvious use case,” he said.

Commenting on why Tezos was a good fit for the DMV, Smith outlined in the firm’s Jan. 25 announcement that the blockchain “solves some of the really hard problems in blockchain in an elegant way.”

“The combination of responsible consensus, on-chain governance, and institutional grade security makes Tezos a great platform for delivering production-ready solutions,” he said.

Related: Venture capital investments into blockchain continue to free-fall: Report

The move from the California DMV is likely to be followed by others in the state moving forward. In May 2022, California Governor Gavin Newsom signed an executive order to direct and explore opportunities for blockchain tech integrations with state government agencies.

“California is a global hub of innovation, and we’re setting up the state for success with this emerging technology — spurring responsible innovation, protecting consumers and leveraging this technology for the public good,” said the governor.

Global Digital Cluster Coin (GDCC) Is Now Available on LBank Exchange

Global Digital Cluster Coin (GDCC) Is Now Available on LBank ExchangePRESS RELEASE. LBank Exchange, a global digital asset trading platform, has listed Global Digital Cluster Coin (GDCC) on January 27, 2023. For all users of LBank Exchange, the GDCC/USDT trading pair is now officially available for trading. With its new-age protocol and peer-to-peer network, Global Digital Cluster Coin (GDCC) restructures the concept of money and […]

California DMV Is Putting Its Titles on the Blockchain

California DMV Is Putting Its Titles on the BlockchainThe Department of Motor Vehicles (DMV) in California is running a project to digitize all of its titles and put them on a blockchain. The project, which will use the Tezos blockchain and has the assistance of Oxhead Alpha, a crypto dev company, aims to allow users to transfer titles as NFTs in the future. […]

Two Under-the-Radar Altcoins Continue To Skyrocket This Week Amid Official Coinbase Trading Rollout

Two Under-the-Radar Altcoins Continue To Skyrocket This Week Amid Official Coinbase Trading Rollout

Top US-based crypto exchange Coinbase is rolling out official trading support for two red-hot altcoins, sparking further rallies. Coinbase customers can now trade security-focused decentralized finance (DeFi) crypto Threshold (T) and decentralized music project Audius (AUDIO). The exchange added both the under-the-radar assets to its listing roadmap earlier this week, also spurring huge price gains […]

The post Two Under-the-Radar Altcoins Continue To Skyrocket This Week Amid Official Coinbase Trading Rollout appeared first on The Daily Hodl.

Crypto Whales Move Over $317,000,000 in Bitcoin, Ethereum, XRP and Polygon – Here’s Where It’s Headed

Crypto Whales Move Over 7,000,000 in Bitcoin, Ethereum, XRP and Polygon – Here’s Where It’s Headed

Deep-pocketed crypto investors are suddenly moving hundreds of million worth of crypto assets, including the top two leading digital assets by market cap, Bitcoin (BTC) and Ethereum (ETH). New data from the whale-watching platform Whale Alert finds that crypto whales have moved $317 million worth of BTC, ETH, Polygon (MATIC), and XRP during the last […]

The post Crypto Whales Move Over $317,000,000 in Bitcoin, Ethereum, XRP and Polygon – Here’s Where It’s Headed appeared first on The Daily Hodl.

BITCOIN BREAKOUT LIVE 🚨 $50K PROFIT! 100X ALTCOIN SEASON 2023! XTP & BITCOIN ANALYSIS

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Total crypto market cap rises above $1T, and data suggests more upside is in store

Bad news continues to dominate crypto media headlines but Bitcoin and the wider market appear to not care.

Despite the recent negative crypto and macroeconomic newsflow, the total cryptocurrency market capitalization broke above $1 trillion on Jan. 21. An encouraging sign is that derivatives metrics are not showing increased demand from bearish traders at the moment. 

Total crypto market cap in USD, 1-day. Source: TradingView

Bitcoin (BTC) price gained 8% on the week, stabilizing near the $23,100 level at 18:00 UTC on Jan. 27 as the markets weighed the potential impact of Genesis Capital’s bankruptcy on Jan. 19.

One area of concern is Genesis Capital’s largest debtor is Digital Currency Group (DCG), which happens to be its parent company. Consequently, Grayscale funds management could be at risk, so investors are unsure if the Grayscale Bitcoin Trust (GBTC) assets could face liquidation. The investment vehicle currently holds over $14 billion worth of Bitcoin positions for its holders.

A United States appeals court is set to hear the arguments relating to Grayscale Investment’s lawsuit against the Securities and Exchange Commission (SEC) on March 8. The fund manager questioned the SEC’s decision to deny their asset-backed exchange-traded fund (ETF) launch.

Regulatory concerns also negatively impacted the markets after South Korean prosecutors requested an arrest warrant for Bithumb exchange owner Kang Jong-Hyun. On Jan. 25, the Financial Investigation 2nd Division of the Seoul Southern District Prosecutor’s Office sentenced Kang and two Bithumb executives on charges of conducting fraudulent illegal transactions.

The 7% weekly increase in total market capitalization was held back by Ether’s (ETH) 0.3% negative price move. Still, the bullish sentiment significantly impacted altcoins, with 11 of the top 80 coins gaining 18% or more in the period.

Weekly winners and losers among the top 80 coins. Source: Messari

Aptos (APT) gained 91% after the smart contract network total value locked (TVL) reached a record-high $58 million, fueled by PancakeSwap DEX.

Fantom (FTM) rallied 50% after the announcement of its new database system, Carmen, and a new Fantom Virtual Machine, Tosca.

Optimism (OP) faced 21% gains after a sharp increase in transaction volumes during an NFT incentive program called Optimism Quest.

Leverage demand slightly favors bulls

Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

Perpetual futures accumulated 7-day funding rate on Jan. 27. Source: Coinglass

The 7-day funding rate was positive for Bitcoin and Ethereum, meaning the data points to slightly higher demand for leverage longs (buyers) versus shorts (sellers). Still, a 0.25% weekly funding cost is not enough to discourage leverage buyers.

Interestingly, Aptos was the only exception as the altcoin presented a negative 0.6% weekly funding cost — meaning short sellers were paying to keep their positions open. This movement can be explained by the 91% rally in 7 days and it suggests that sellers expect some sort of technical correction.

The options put/call ratio shows no signs of fear

Traders can gauge the market’s overall sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A 0.70 put-to-call ratio indicates that put options open interest lag the more bullish calls by 30% and is therefore bullish. In contrast, a 1.40 indicator favors put options by 40%, which can be deemed bearish.

BTC options volume put-to-call ratio. Source: laevitas.ch

Even though Bitcoin’s price failed to break the $23,300 resistance, the demand for bullish call options has exceeded the neutral-to-bear puts since Jan. 6.

Presently, the put-to-call volume ratio stands near 0.50 as the options market is more strongly populated by neutral-to-bullish strategies, favoring call (buy) options by 50%.

Related: Bitcoin will hit $200K before $70K ‘bear market’ next cycle — Forecast

Derivatives markets point to further upside potential

After the third consecutive week of gains, which totals 40% year-to-date when excluding stablecoins, there are no signs of demand from short sellers. More importantly, leverage indicators show bulls are not using excessive leverage.

Derivatives markets point to further upside potential and even if the market revisits the $950 billion market capitalization from Jan. 18, there is no reason for panic. Currently, Bitcoin option markets show whales and market makers favoring the neutral-to-bullish strategies.

Ultimately, the odds favor those betting that the $1 trillion total market cap will hold, opening room for further gains.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Fed policy to align bank oversight could limit crypto activities by state banks

The new policy would align the allowable activities for insured and uninsured state banks and OCC-supervised national banks by making rules for state banks more restrictive.

The United States Federal Reserve Board announced Jan. 27 that it was issuing a policy statement on limitations on banks. The policy seeks to create a level playing field and limit regulatory arbitrage for state banks with deposit insurance, state banks without deposit insurance and national banks, which are overseen by the Office of the Comptroller of the Currency (OCC), by allowing them the same scope of permissible activities.

The new policy will limit the activities of state banks by not allowing them to engage in activities not permitted by national banks unless state legislation allows it. In the Federal Register notice, the statement specifically discusses crypto at length. It stated:

“The Board has not identified any authority permitting national banks to hold most crypto-assets […] As principal in any amount, and there is no federal statute or rule expressly permitting state banks to hold crypto-assets as principal. Therefore, the Board would presumptively prohibit state member banks from engaging in such activity under section 9(13) of the [Federal Reserve] Act.”

The notice also said that state banks have proposed issuing “dollar tokens” — that is, stablecoins — and those banks now will be subject to OCC interpretative letters 1174 and 1179, as are national banks. It added:

“The Board generally believes that issuing tokens on open, public, and/or decentralized networks, or similar systems is highly likely to be inconsistent with safe and sound banking practices.”

The statement was issued on the same day that the Fed rejected the application of Wyoming’s Custodia Bank for Federal Reserve System membership.

Related: OCC makes its staff available for fintech-related discussions

The Fed beefed up scrutiny on banks engaging in crypto activities in August 2022, when it issued a letter requiring the banks it oversees to disclose plans that include crypto, with a reminder to ensure adequate risk management. The letter applied retrospectively to banks already active in crypto.

Hive Ransomware Network Dismantled by American, European Law Enforcement

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5 reasons why the Aptos (APT) rally could still have wings

Aptos’ star-studded founders and the market’s disbelief in the rally could further fuel the rise in APT price.

Aptos’ APT reached a new all-time high of $20.39 after posting gains exceeding 400% since the start of 2023. While the rally could just be a pump-and-dump event due to the perception of weak fundamentals, increasing negative sentiment toward the token will likely fuel the prices in the short term.

Let’s explore some of the factors that could be propelling the Aptos price rally.

A rich history and strong investor backing

Aptos is a byproduct of Facebook’s attempt with the Libra blockchain, which regulators forcibly shut down. Two of Libra’s leadership team members, Mo Shaikh and Avery Ching, later found Aptos, a decentralized version of the abandoned blockchain project.

The project is based on the Move programming language and introduces a new class of layer-1 blockchains that will compete against the likes of Solana and Cardano. The primary reasons behind the tailwinds for the APT token include investors’ hope for a technological breakthrough that could finally provide a scalable, secure, decentralized blockchain.

Aptos raised $350 million in 2022, which included a $200 million seed round led by Andreessen Horowitz and a $150 million Series A funding round led by FTX Ventures and Jump Crypto. Later, Binance made a follow-on strategic investment to help boost the Aptos ecosystem.

FTX Ventures’ prominence induces the risk of a sell-off from the defunct entity. In this regard, some investors might be reassured by the involvement of other venture capitalists like Multicoin Capital, Blocktower Capital and Coinbase Ventures. High-volume exchanges like Binance could also soften the blow dealt by FTX and Alameda Researc.

Steady ecosystem development

The Aptos blockchain was launched in October 2022 and is still in the nascent stages of ecosystem development. There are few decentralized finance or nonfungible token projects on the blockchain, and smart contract activity is currently limited. More than 94% of the blockchain transactions are for APT transfers, showing negligible decentralized application activity.

Aptos transaction volume by purpose of transactions. Source: Pinehearst

Development activity has been around average on the blockchain. The number of active developers on Aptos is more than Avalanche and Tezos but behind Solana, Polkadot, Cardano and Ethereum.

Number of active developers working on blockchains and dApps. Source: token terminal

Aptos is not the first project to build a hefty market capitalization without significant on-chain activity. Cardano and Polkadot are prominent examples, where the rise in their native token’s price is primarily led by the superior technology narrative.

However, even in this respect, the total size of the Aptos community is smaller than top layer-1 projects. Cardano and Polkadot have more than 1.3 million Twitter followers on their accounts. At the same time, Avalanche has over 855,600 followers, and Tezos has more than 470,000. Aptos is lagging behind, with a 364,500 follower count.

Moving forward, the efforts of the business development team of Aptos and the performance of the blockchain will likely catalyze future price movements.

Traders’ disbelief could push APT price higher

Given the lack of activity and limited ecosystem growth, the rally in APT has taken the market by surprise. It is not difficult to find tweets hinting at the overblown market capitalization of the token.

However, going against the trend can be risky for sellers. The short-side trade for APT perpetual swaps is getting crowded, as the token has surpassed its October 2022 peak of around $15, which is evident in the negative funding rate for APT.

Funding rate for APT perpetual swaps. Source: Coinglass

It provides an opportunity for buyers to hunt sellers’ liquidation levels by pushing the price up. And in crypto markets, the short squeeze of short orders is realized more often than not.

The sell pressure on APT is limited

APT’s tokenomics limits the selling pressure on the token for the first year from its launch in October 2022. The release schedule of APT delays investor unlocks until October 2023, after which there will be a steep rise in the circulating supply of APT tokens. Until the unlock begins, the only source of inflation is from staking rewards, which is 7% for staked tokens.

Initially, the foundation distributed 2% of the supply to early users and developers. In all probability, users who wanted to sell their APT would have already sold in the three months since its launch.

Kimchi premium

Significant buying interest for APT is coming from the South Korean won trading pair on the UpBit crypto exchange. The exchange constitutes nearly 40% of Aptos’ trading volume. The price of APT on Upbit is trading around 1%–3% higher than the market price, which indicates high demand in the region — hence, the same Kimchi premium.

Aptos spot trading data. Source: Coingecko

There’s a chance that the volumes of Upbit are inflated from wash trading, or it could be an attempt to manipulate the markets. The exchange’s owners have come under the purview of regulators many times in the past. Nevertheless, the buying pressure will likely persist until the Kimchi premium resolves.

While the prices may have started due to a broader positive trend in cryptocurrency prices, it’s taking the shape of a disbelief rally by proving sellers wrong. Until the negative sentiment and Kimchi premium dissolve, the chances of Aptos moving higher are considerable.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Aave deploys V3 on Ethereum after 10 months of testing on other networks

The new version includes features that developers believe will increase capital efficiency and lower gas fees

The third version of crypto lending app Aave has now been deployed to Ethereum for the first time, according to a Jan. 27 tweet thread from the Aave team. “Aave V3” was originally released in March 2022, and it was deployed on multiple Ethereum Virtual Machine (EVM)-compatible blockchains shortly afterward. Until now, Ethereum users only had access to the app’s older “V2” version.

Aave V3 includes several features intended to help users save on fees and maximize the efficiency of users’ capital. For example, High Efficiency mode allows the borrower to avoid some of the app’s more stringent risk parameters if the borrower’s collateral is highly correlated with the asset being borrowed. Developers say this may be useful for borrowers of stablecoins or liquid staking derivatives.

In addition, the “isolation” feature allows certain, riskier assets to be used as collateral as long as they have their own debt ceiling and are only used to borrow stablecoins. Under the previous version, there was no way to limit what type of asset could be borrowed given a certain type of collateral. This meant that lower market-cap and illiquid coins often couldn’t be used as collateral.

Related: Aave purchases 2.7M CRV to clear bad debt following failed Eisenberg attack

V3 also includes a gas optimization algorithm that the developers say will reduce gas fees by 20% to 25%.

The code for V3 was published back in November 2021. In March 2022, the Aave DAO approved an initial vote to deploy the new version. Over the next few months, V3 was deployed to Avalanche (AVAX), Arbitrum (ARB), Optimism (OP) and Polygon (MATIC). However, the Ethereum version of Aave has always had the most liquid and V3 was not available on it previously.

According to the official proposal, the initial launch only has seven coins. The vote to launch began on Jan. 23 and lasted for two days. After supporters won the vote, the execution of the proposal was able to move forward on Jan. 27. Less than 0.01% of DAO members voted against the proposal.

In November 2022, Aave changed its governance procedures after it was hit by a $60 million short attack that ultimately failed.

Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit

Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind 0,000,000 Exploit

A Solana-based (SOL) decentralized crypto exchange is suing the bad actor behind the alleged $100 million exploit of its network last October. In a new court filing in the Southern District of New York, Mango Markets accuses Avraham Eisenberg of initiating a “brazen and malicious” attack on its platform. The exchange claims Eisenberg manipulated the […]

The post Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit appeared first on The Daily Hodl.

Anthony Scaramucci Predicts One Catalyst Will Trigger Bitcoin Boom, Says Now’s a Great Time To Accumulate BTC

Anthony Scaramucci Predicts One Catalyst Will Trigger Bitcoin Boom, Says Now’s a Great Time To Accumulate BTC

SkyBridge Capital chief executive Anthony Scaramucci says Bitcoin (BTC) will have a clear bottom once the Federal Reserve ceases raising interest rates to lower inflation. In a new YouTube interview with crypto influencer Scott Melker, Scaramucci says the Fed is on the verge of changing its hawkish policy, which would cause risk assets like Bitcoin […]

The post Anthony Scaramucci Predicts One Catalyst Will Trigger Bitcoin Boom, Says Now’s a Great Time To Accumulate BTC appeared first on The Daily Hodl.

Price analysis 1/27: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX

Bitcoin and select altcoins continue to consolidate near their recent highs, increasing the possibility of an upside breakout.

After two weeks of a stupendous rally, Bitcoin’s (BTC) price has largely been flat this week. This is a positive sign as it shows that market participants are not growing nervous before a slew of central bank meetings take place next week. The United States Federal Reserve, European Central Bank and Bank of England are scheduled to announce their policy decisions next week.

The confidence of the bulls received another boost after the U.S. core personal consumption expenditures (PCE) data for December showed the slowest annual rate of increase since October 2021. The core PCE rose 4.4% from a year ago, meeting analyst expectations.

Daily cryptocurrency market performance. Source: Coin360

According to a report by Markus Thielen, the head of research and strategy at Matrixport, U.S. institutions have not abandoned the cryptocurrency markets. The financial services firm arrived at this conclusion by assuming that if the gains happened during U.S. trading hours, it is because institutions are buying. Using this metric, the firm said that 85% of the rally in January was due to institutional buying.

Could Bitcoin and select altcoins shrug off their range-bound action and resume the uptrend? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin soared to $23,816 on Jan. 25 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.

BTC/USDT daily chart. Source: TradingView

The repeated failure of the BTC/USDT pair to maintain above $23,000 may tempt short-term traders to book profits. The immediate support is at $22,292. If this level gives way, the pullback could reach the 20-day exponential moving average ($21,172).

This is an important level to keep an eye on because a sharp rebound off it will suggest strong demand at lower levels. The pair could then again try to resume its up-move and reach the critical overhead resistance at $25,211.

On the other hand, if the price turns down and plummets below the 20-day EMA, it will signal that bulls may be rushing to the exit. The bears may gain back control below $20,400.

ETH/USDT

Buyers could not build upon Ether’s (ETH) solid rebound off the 20-day EMA ($1,520) on Jan. 25, which suggests that bears are selling on recoveries near the overhead resistance of $1,680.

ETH/USDT daily chart. Source: TradingView

The bears will have to pull the price below the horizontal support near $1,500 to tilt the short-term advantage in their favor. The ETH/USDT pair could then start its decline toward the strong support at $1,352.

If bulls want to avoid this near-term bearish view, they will have to quickly drive the price above the overhead resistance at $1,680. If they manage to do that, the pair could start its journey to $2,000, with a brief stop-over at $1,800.

BNB/USDT

BNB (BNB) has been sandwiched between the 20-day EMA ($293) and the overhead resistance of $318 for the past few days. This shows that bulls are buying the dips to the 20-day EMA and bears are selling on rallies near $318.

BNB/USDT daily chart. Source: TradingView

The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate buyers have a slight edge. To build upon this advantage, the bulls will have to propel and sustain the price above $318. If they succeed, the BNB/USDT pair could pick up momentum and surge to $360.

The bears are likely to have other plans. They will try to fiercely protect the $318 level and tug the price below the 20-day EMA. If they do that, the pair could drop to $281. This level may act as a minor support but if cracks, the pair could touch the 50-day simple moving average ($270).

XRP/USDT

XRP (XRP) jumped from the 20-day EMA ($0.39) on Jan. 25 and rose above the $0.42 overhead resistance but the buyers could not sustain the price above it.

XRP/USDT daily chart. Source: TradingView

The repeated failure to clear the overhead hurdle may tempt the short-term bulls to book profits. That could drag the price below the 20-day EMA and open the doors for a possible drop to the 50-day SMA ($0.37).

This negative view could invalidate in the near term if the price turns up from the 20-day EMA and ascends the $0.42 to $0.44 zone. The XRP/USDT pair could then start a strong rally that could touch $0.51.

ADA/USDT

Cardano (ADA) rose above the $0.38 overhead resistance on Jan. 26 but the bulls could not sustain the higher levels. Still, it is pertinent to note that if a resistance gets pierced frequently, it tends to weaken.

ADA/USDT daily chart. Source: TradingView

The bulls will once again try to thrust the price above the overhead resistance. If they can pull it off, the ADA/USDT pair could spurt to $0.44. This level may again act as a formidable barrier but if the bulls do not give up much ground, the pair could continue its uptrend.

The upsloping 20-day EMA indicates advantage to buyers but the negative divergence on the RSI cautions that the bullish momentum may be weakening. The bears will have to sink the price below the 20-day EMA to start a deeper correction to the 50-day SMA ($0.30).

DOGE/USDT

Dogecoin (DOGE) bounced off the 20-day EMA ($0.08) on Jan. 25 but the bulls could not continue the recovery on Jan. 26. The price turned down and slipped to the 20-day EMA on Jan. 27.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair is stuck between $0.09 and the 20-day EMA for the past few days. If the price turns up from the current level and rises above $0.09, the likelihood of a rally to the next resistance at $0.11 increases.

Alternatively, if the price continues lower and plunges below the 20-day EMA, it will suggest that the bulls are losing their grip. The pair could then dive to the strong support at $0.07. Such a move could point to a possible range-bound action between $0.07 and $0.09 for a few more days.

MATIC/USDT

Polygon (MATIC) rebounded off the 20-day EMA ($0.97) on Jan. 25 and skyrocketed above the crucial resistance of $1.05 on Jan. 26. The break above this level indicates that the uncertainty of the range resolved in favor of the bulls.

MATIC/USDT daily chart. Source: TradingView

The buyers continued to build upon the momentum and the MATIC/USDT pair crossed the minor resistance at $1.16 on Jan. 27. This clears the path for a possible rally to $1.30 where the bears may again mount a strong defense. If bulls surmount this obstacle, the rally could extend to $1.50.

Contrarily, if the price turns down sharply and breaks below $1.05, it will suggest that the breakout may have been a bull trap. The pair could then slide to $0.91.

Related: Litecoin ‘head fake’ rally? LTC price technicals hint at 65% crash

LTC/USDT

Litecoin (LTC) has been oscillating between the 20-day EMA ($85) and the overhead resistance at $92 for the past few days. This suggests uncertainty among the bulls and the bears about the next directional move.

LTC/USDT daily chart. Source: TradingView

Although the upsloping moving averages indicate advantage to the bulls, the negative divergence on the RSI suggests that the buying pressure seems to be decreasing. The bears will gain the upper hand if they succeed in pulling the price below the 20-day EMA.

That could trigger the stops of short-term traders and the LTC/USDT pair could then tumble to $81 and later to $75.

If bulls want to assert their dominance, they will have to kick and sustain the price above $92. That could signal the resumption of the uptrend. The pair could then travel to $100 and subsequently to $107.

DOT/USDT

Polkadot (DOT) has been trading near the resistance line for the past few days. Usually, a tight consolidation near a strong overhead resistance shows that buyers are holding on to their positions as they anticipate a move higher.

DOT/USDT daily chart. Source: TradingView

If buyers catapult the price above the resistance line, the DOT/USDT pair could signal a potential trend change. The pair could then start its journey toward $8.05, with a short stop-over at $7.42.

Conversely, if the price fails to maintain above the resistance line, it will suggest that demand dries up at higher levels. That could attract profit-booking by the short-term traders. The pair could first drop to the 20-day EMA ($5.88) and if this level collapses, the decline could reach $5.50.

AVAX/USDT

The bulls tried to propel Avalanche (AVAX) above the resistance line on Jan. 26 but the bears thwarted their attempt. The bulls did not cede ground to the bears and are again trying to overcome the barrier on Jan. 27.

AVAX/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought territory indicate the path of least resistance is to the upside. If the price breaks above the resistance line, the AVAX/USDT pair could rally to $22 and thereafter to $24.

On the downside, a break and close below the 20-day EMA ($16.31) will be the first indication that the buying pressure is reducing. That could open the doors for a possible drop to $14.65 and thereafter to the 50-day SMA ($13.69).

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

New Ripple president says her job is to continue to scale amid crypto winter

Veteran Ripple executive and former general manager Monica Long said the company has seen record growth in recent months despite crypto winter.

Monica Long has been named the new president of Ripple, moving up from the general manager position. Long joined the company in 2013 as director of communications and expanded her role last year from general manager of RippleX, the blockchain development side of the business, to general manager of the company as a whole, adding RippleNet, the company’s financial network, to her purview.

The presidency of Ripple has been a somewhat nebulous position until now, with the title being ascribed to both co-founders Brad Garlinghouse and Chris Larsen at various times.

Long’s promotion comes at a good moment for the company, Long told Cointelegraph:

“It’s a job of continuing to scale. […] We’ve weathered many [crypto] winters, and with this one, we’re coming off a record year of business and customer growth.”

In this environment, “we’re continuing to grow our team,” she added.

Long joined Ripple when the company had only 10 employees. She spearheaded the development of the company’s On-Demand Liquidity solution, described as “Ripple’s flagship product,” which was launched in 2018. Ripple added an adjacent service called LiquidityHub last year, and the company will continue to expand that service, Long said. Over 60% of RippleNet’s payment volume was sent through ODL last year.

On the RippleX side, Long said an Automatic Market Maker specification will go up for a vote by the validators this year.

Related: Inside the World Economic Forum: Circle, Ripple reflect on Davos 2023

Ripple is often in the news due to its ongoing court case with the United States Securities and Exchange Commission (SEC). The SEC has accused Ripple and co-founders Garlinghouse and Larsen of conducting an unregistered securities offering of $1.38 billion and selling XRP to retail investors as an unregistered security with the launch of its XRP (XRP) coin.

Garlinghouse told CNBC on Jan. 18 that the company expects a decision on the case this year.

TradFi and DeFi come together at Davos 2023: Finance Redefined

Decentralized finance meets its traditional counterpart at Davos, with a growing cross-pollination between the two.

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

Traditional finance, or TradFi, continues to explore the world of cryptocurrencies and blockchain technology, with the World Economic Forum holding more workshops and sessions for the sector in 2023.

Layer-1 blockchain protocol, Injective, has launched a $150 million ecosystem fund to support developers building on the Cosmos network.

The Mango Markets saga took another turn this past week, as the company filed a lawsuit against the exploiter Avraham Eisenberg for $47 million in damages plus interest. The lawsuit marks the fourth time the Mango Markets exploiter has been hit by charges or lawsuits relating to his attack on the DeFi protocol.

Blockchain transaction history shows that the hacker transferred the funds onto a decentralized exchange and then went on to cycle funds around different DeFi protocols.

The top 100 DeFi tokens continued their bullish momentum into the final week of January, with most of the tokens trading in green and a few even registering double-digit gains.

TradFi and DeFi come together — Davos 2023

On this episode of Decentralize With Cointelegraph, the team reflects on their week in Davos covering the World Economic Forum as crypto and TradFi continue to collide.

Speaking to several industry insiders and TradFi participants, Cointelegraph journalist Gareth Jenkinson highlighted the ongoing cross-pollination between the sectors. Still, just a handful of crypto participants were involved in conversations inside the World Economic Forum.

Continue reading

Injective launches $150 million ecosystem fund to boost DeFi, Cosmos adoption

Injective, a layer-1 blockchain protocol founded in 2018, has launched a $150 million ecosystem fund to support developers building on the Cosmos network.

The ecosystem group is backed by a large consortium of venture capital and Web3 firms, including Pantera Capital, Kraken Ventures, Jump Crypto, KuCoin Ventures, Delphi Labs, IDG Capital, Gate Labs and Flow Traders. According to Injective, the consortium is the largest assembled within the broader Cosmos ecosystem.

Continue reading

Mango Markets sues Avraham Eisenberg for $47 million in damages plus interest

Mango Labs, the company behind the DeFi protocol Mango Markets, has filed a lawsuit against exploiter Avraham Eisenberg.

The Jan. 25 filing in the United States District Court for the Southern District of New York alleges Einseberg exploited its platform for millions of dollars worth of cryptocurrencies in October 2022. It asks for $47 million in damages plus interest, starting from the time of the attack.

Continue reading

Wormhole hacker moves $155 million in the biggest shift of stolen funds in months

The hacker behind the $321 million Wormhole bridge attack has shifted a large chunk of stolen funds, with transaction data showing that $155 million worth of Ether (ETH) was transferred to a decentralized exchange on Jan 23.

The Wormhole hack was the third-largest crypto hack in 2022 after the protocol’s token bridge suffered an exploit on Feb. 2 that resulted in the loss of 120,000 Wrapped Ether (WETH), worth around $321 million at the time.

Continue reading

DeFi market overview

Analytical data reveals that DeFi’s total market value remained over $40 billion this past week, trading at about $46.1 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView show that DeFi’s top 100 tokens by market capitalization had a bullish week, with nearly all the tokens registering price gains.

dYdX (DYDX) was the biggest gainer with a 68% surge on the weekly charts, followed by Fantom (FTM) with a 59% weekly surge. The majority of the other top 100 tokens also registered a bullish surge.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.

US Credit Ratings Giant Developing Stablecoin Scoring System: Report

US Credit Ratings Giant Developing Stablecoin Scoring System: Report

One of three biggest credit rating agencies is reportedly working on a scoring system for cryptocurrencies pegged to other assets, such as the US dollar, gold or other digital assets. According to a new report from Bloomberg, credit rating titan Moody’s is developing a system that can analyze up to 20 stablecoins based on the […]

The post US Credit Ratings Giant Developing Stablecoin Scoring System: Report appeared first on The Daily Hodl.

Billionaire Dogecoin Advocate Elon Musk Doubles Down on Offer To Eat Happy Meal on TV if McDonald’s Accepts DOGE

Billionaire Dogecoin Advocate Elon Musk Doubles Down on Offer To Eat Happy Meal on TV if McDonald’s Accepts DOGE

The billionaire behind Tesla is doubling-down on his offer to eat a Happy Meal on television should McDonald’s accept his favorite crypto, Dogecoin (DOGE). Almost exactly one year ago, the now-owner of Twitter, Elon Musk, told his followers that he would eat one of the children’s meals from the iconic burger chain on TV if the Golden […]

The post Billionaire Dogecoin Advocate Elon Musk Doubles Down on Offer To Eat Happy Meal on TV if McDonald’s Accepts DOGE appeared first on The Daily Hodl.

New York Assembly introduces crypto payments bill for fines, taxes

The bill clarifies that state agencies can legally agree to accept cryptocurrency payments and that these agreements should be enforced by the courts.

A bill introduced to the New York State Assembly on Jan. 26 would allow state agencies to accept cryptocurrency as a form of payment for fines, civil penalties, taxes, fees and other payments charged by the state.

New York State Assembly Bill A523 was introduced by Democratic Assembly Member Clyde Vanel, who is often seen as a crypto-friendly politician. It allows state agencies to enter into “agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payment” for various types of fees, including “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts, including penalties, special assessments and interest, owed to state agencies.” 

The bill does not obligate state agencies to accept crypto as payment, but it does clarify that state agencies can legally agree to accept such payments and that these agreements should be enforced by the courts.

The bill defines “cryptocurrency” as “any form of digital currency in which encryption techniques are used to regulate the generation of units of currency […] including but not limited to, bitcoin, ethereum, litecoin and bitcoin cash.”

Depending on how this definition is interpreted, it may or may not include stablecoins like USD Coin (USDC) and Tether (USDT). On the one hand, the supply of stablecoins is usually regulated by the issuer instead of by cryptography. On the other hand, the bill does recognize that some cryptocurrencies have an “issuer,” and it provides that agencies can charge the payor an extra fee if such a fee is charged by the cryptocurrency’s issuer.

Related: Arizona state senator pushes to make Bitcoin legal tender

To become law, the bill will need to be passed by the New York Assembly and Senate, as well as signed into law by the state’s Governor, Kathy Hochul.

The New York state government is often seen as hostile to cryptocurrency. In November 2022, New York became the first state to pass a bill that banned nearly all cryptocurrency mining. It also has been criticized for the restrictive “BitLicense” it requires all crypto exchanges to acquire. In April 2022, the mayor of New York argued that the BitLicense law should be repealed.

FTX Lawyers Attempt to Question Bankman-Fried’s Family and Inner Circle for Financial Insight

FTX Lawyers Attempt to Question Bankman-Fried’s Family and Inner Circle for Financial InsightAccording to court documents in the FTX bankruptcy case, the company’s attorneys seek to subpoena FTX co-founder Sam Bankman-Fried, his brother Gabriel Bankman-Fried, and his parents, Joseph Bankman and Barbara Fried. Additionally, the attorneys intend to question some of Bankman-Fried’s top deputies, including FTX co-founder Gary Wang, ex-Alameda Research CEO Caroline Ellison, the former chief […]

Opinion: 3 tips for trading Ethereum this year

It’s a hard year to trade, but there are measures you can take to increase the likelihood you’ll succeed if you want to trade Ether.

Cryptocurrency is a notoriously volatile industry, regardless of what coin you’re trading. During periods of extreme volatility, it’s easy to become disheartened when trades don’t go your way. It’s also easy to become overconfident when you get lucky, falsely attributing it to your trading strategy — when, in reality, the price often rose or fell for reasons other than you assumed.

Despite the uncertainty, there are sometimes still strategies you can use to trade certain tokens successfully. Ether (ETH) is arguably where you might be able to succeed this year. Here are three tips that might help.

Understand what actually affects ETH price movements

There are many ways to analyze the price of a given cryptocurrency, and different price valuations will be given depending on the model used and how much weight is given to a specific set of conditions.

But incorrect weighting can produce erroneous conclusions. For instance, a cryptocurrency can generate positive buy signals across the board, but other factors can send the entire market tanking.

This is precisely what happened with Ethereum’s Merge, where a successful transition to proof-of-stake that reduced consumption by 99.9% was not really reflected in the price. In fact, bearish traders ran the price into the ground.

Related: Bitcoin will surge in 2023 — But be careful what you wish for

The crypto market also tends to correlate heavily with Bitcoin (BTC), which is traded by a lot of institutional and hedge fund money that is tied to interest rates and traditional financial markets. ETH currently holds a 0.9 correlation with Bitcoin.

Leading up to May 2021 and November 2021, ETH experienced significant price increases. This was attributed to announcements from big firms, such as the decision of the European Investment Bank to offer a two-year bond on the Ethereum blockchain. Visa also announced plans to transact in USD Coin (USDC) over Ethereum.

A summary of the factors that affect the price of Ether is that it will be affected most heavily by Bitcoin’s price movement, interest rate decisions, institutional investment and macroeconomic conditions that discourage investment.

Fundamental blockchain indicators, however, can strongly point toward medium-term appreciation, perhaps over one to three years. Based on these indicators, Ethereum is a very powerful blockchain with a thriving ecosystem set for growth.

Anticipate the seasonality

Like other cryptocurrencies, ETH has specific months where it performs well, and others where it performs poorly. It performs the worst in September, June and March, meaning those may be good times to become a buyer.

In contrast, it performs well in February, April and May. This is a time for traders to issue sell orders, while buy-and-hold investors might simply avoid these months in terms of investment (though other criteria should also be taken into account).

While there are claims that certain hours of the day are more lucrative than others for investment, studies have shown this is not the case, at least where Bitcoin is concerned. The same applies to days of the week.

Seasonality of Ether pricing. Source: FXStreet

Even if there are certain days or times to trade Ethereum, only active traders will be able to gauge this information correctly and withstand the increased fees of more regular trades. More realistically, seasonality can be applied on a monthly and perhaps quarterly basis for most.

Seasonality is something to keep in mind as there are definite monthly trends.

Consider dollar-cost-averaging

A popular and research-backed means to trade Ether (and any other asset) is dollar-cost-averaging (DCA), a technique first popularized by Benjamin Graham and applied to the equity market.

DCA is a means of investing smaller amounts at specific intervals. You could, for instance, invest a specific amount at the start of each month. This ensures that you get all the highs and lows (at least on a month-to-month basis), smoothing out volatility.

Related: Post-Merge ETH has become obsolete

It’s a great way for newcomers to enter the market because it requires no technical expertise or time investment. You don’t have to conduct research or learn statistical models or correlations (though you can obviously do this on the side).

DCA can also be a great baseline for more creative investments, providing a stable foundation. For example, you can combine it with seasonality, choosing the three to four months where Ether has historically been priced on the low end.

At the very least, DCA can help you to avoid the volatility of the cryptocurrency markets with investment spread out across time. Holding on to your investment is as important as making profits, a fact often missed in an industry often overtaken with hype and profits.

Other points to keep in mind

The upcoming Ethereum Shanghai upgrade in March will allow users to withdraw staked ETH, valued at more than $20 billion as of mid-January, though it isn’t clear whether investors will capitalize on the opportunity — which would be bearish — or continue holding their ETH, which would be bullish.

Fundamental indicators with regard to a given blockchain — active addresses, forks, functional upgrades, node diversification, speed, etc. — are often not factored into the price on a short time horizon. Ethereum’s Merge, for instance, reduced waste by 99.9% but did nothing for the price, being overshadowed by wider economic factors.

But these are certainly useful indicators on a longer time horizon. The work that has been done to enhance the Ethereum blockchain and ecosystem will, eventually, be reflected in its price.

In this regard, Ether is a wonderful investment opportunity for late 2023 and perhaps 2024, given recent innovations.

It is, in many ways, a perfect token for a patient investor.

Daniel O’Keeffe worked for three years as a compliance analyst for JPMorgan and State Street. He holds a master’s degree in computer science from the University College Dublin and a legal degree from the University of Limerick.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin Breakout Imminent? Analyst Says Key Price Point Will Be Pivotal, Tracks Path Ahead for Litecoin and Three Ethereum-Based Altcoins

Bitcoin Breakout Imminent? Analyst Says Key Price Point Will Be Pivotal, Tracks Path Ahead for Litecoin and Three Ethereum-Based Altcoins

A widely followed crypto analyst says that Bitcoin (BTC) could continue its uptrend as he keeps a close eye on Litecoin (LTC) and three Ethereum-based (ETH) altcoins. Pseudonymous trader Rekt Capital tells his 334,000 Twitter followers that he expects BTC to continue rising as long its dominance level successfully retests a key level. “A BTC […]

The post Bitcoin Breakout Imminent? Analyst Says Key Price Point Will Be Pivotal, Tracks Path Ahead for Litecoin and Three Ethereum-Based Altcoins appeared first on The Daily Hodl.

The state of Solana: Will the layer-1 protocol rise again in 2023?

Despite the latest FTX-related crisis, Solana still has what it takes to win the layer-1 race, according to the head of strategy at the Solana Foundation, Austin Federa.

About two months after the FTX collapse, the Solana network is stronger than ever, according to Austin Federa, head of strategy and communications at the Solana Foundation. 

Federa defines the recent SOL token price crash as a short-term market reaction to the perceived connection between Solana and the defunct crypto exchange FTX. While FTX founder Sam Bankman-Fried was invested in many Solana-based projects, Federa pointed out he didn’t have any influence on the network’s operations and fundamentals. 

“The external perception was that there was a very close relationship between the Solana network and FTX, which wasn’t the case,” Federa explained in a recent interview with Cointelegraph. 

According to a recent report by Electric Capital, the Solana network has been experiencing a record inflow of developers contributing to the ecosystem. 

To Federa, developers are increasingly building on the Solana network because of its main value proposition: cheap and fast transactions.

“You can build new types of products and services that aren’t transaction-constrained,” he pointed out.

When asked to address the problem of outages that have plagued the network over the past year, Federa mentioned a number of technical upgrades that should improve the stability of the network in the months to come. One of them is the recent introduction of priority fees, which should reduce the amount of transaction spam on the network. 

Federa also mentioned Firedancer, a new validator client that is expected to go live on Solana’s mainnet by the end of 2023. 

To find out more about how Solana is recovering after the FTX collapse, check out the full interview on our YouTube channel, and don’t forget to subscribe!