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Miss Universe denies link with recently unveiled coin project

The Miss Universe Organization said that there is no Miss Universe cryptocurrency or blockchain offering involved with the Miss Universe or Miss Universe Philippines.

The Miss Universe Organization has denied any association with the Miss Universe Coin project announced at the Philippine Blockchain Week (PBW) event held earlier this month. PBW said that they are in contact with all involved parties and will post an update soon.

Earlier this month, a project called Miss Universe Coin was announced at PBW. Donald Lim, the founder of the organization managing the PBW, said during the event that the PBW will “launch the Miss Universe Coin.” However, weeks after the announcement, the official organization behind Miss Universe has denied any association with the coin project and called it a fraud. 

Official announcement published on the Miss Universe Facebook page. Source: Facebook

On Sept. 22, the Miss Universe official Facebook page announced that the Miss Universe Organization and JKN Global Group, the company behind the pageant, are not associated with the coin project that was unveiled at the PBW event. According to the organization, it will be pursuing “all legal options with regards to this infringement.” 

“There is currently no Miss Universe cryptocurrency or blockchain offering, and these products are in no way involved with the voting or selection process for Miss Universe or the Miss Universe Philippines pageants,” they wrote.

Related: JPEX hikes withdrawal fee to almost $1K after Hong Kong watchdog warning

In a statement sent to Cointelegraph, a representative from the Miss Universe Organization claimed that the Miss Universe Coin is a "fraud," and they expect it to be further announced in other events across the globe. “We suspect that people may be planning to mention this at upcoming blockchain conferences in Dubai and Singapore. If you see it there, please do not cover, it's a fraud,” they said.

In a statement on X (formerly Twitter), PBW said that they are currently in contact with all of the parties involved and will announce an update as soon as possible. Cointelegraph reached out to the Philippine Blockchain Week but did not get an immediate response.

Magazine: Chinese billionaire’s $1B fraud charges, Kwon’s $11M bet, Zhu Su and Islam: Asia Express

How to buy Bitcoin in Dubai

Experience zero tax on crypto trades — find out how to buy Bitcoin in Dubai.

Dubai is a magnificent city to live and work in. But how can someone buy Bitcoin in Dubai? Is it legal to buy Bitcoin in Dubai? Is Dubai crypto-friendly? 

Here’s a quick guide with the answers. The great news is that, yes, buying Bitcoin (BTC) in the United Arab Emirates is permitted, and the country is actually one of the most welcoming to cryptocurrency exchanges and investors.

Is Dubai crypto-friendly?

The thriving metropolis of Dubai in the UAE has long been deemed a crypto-friendly city. Some describe the UAE as the most crypto-friendly country.

What’s more, there is zero tax to pay on cryptocurrency trading in the UAE, as well as zero income or capital gains tax. This combination has made the Middle Eastern country massively attractive to cryptocurrency and blockchain companies and the users of these technologies. There are many UAE crypto traders and plenty of crypto investment options in the UAE.

But is it legal to buy Bitcoin in Dubai? Dubai and the UAE have some regulations on cryptocurrencies, including policies to protect investors. Cryptocurrencies are not licensed or recognized as legal tender; however, there are no laws against buying Bitcoin in the UAE or owning or trading Bitcoin or other crypto.

How to buy cryptocurrency in Dubai

Buying Bitcoin in Dubai and anywhere in the UAE is quite straightforward; it starts with choosing a crypto exchange, registering and creating an account, and then adding the funds needed to buy the cryptocurrency of choice.

Bitcoin is available on any exchange, and other leading cryptocurrencies are available on most major exchanges. Investors who plan to hold on to Bitcoin usually want to move their Bitcoin away from an exchange into a Bitcoin wallet or to more secure Bitcoin storage like a hardware wallet. Let’s look at the steps to buying Bitcoin in the United Arab Emirates:

1. Choose an exchange

The first priority when choosing an exchange is security; crypto buyers should always research the exchange and check online reviews, then review the coins, the exchange lists and the fees.

2. Register

Registering with an exchange starts with an email, a password and any other security authentication available. Cryptocurrency exchange users should always make full use of any additional security options. New exchange users will usually need to provide the exchange with an image of a piece of photo ID to complete its Know Your Customer (KYC) checks.

3. Fund and buy

Once an account has been created, funds can be added from fiat accounts. After that, it’s possible to buy BTC with UAE dirhams easily this way or to select another trading pair.

Which crypto exchanges operate in Dubai and the UAE?

The intriguing thing is that there are many leading exchanges that operate in the UAE; investors can pick from the most well-known, the best-reviewed, those thought of as the safest, and those with the highest availability of leading cryptocurrencies.

Some of the crypto exchanges and Bitcoin trading platforms in Dubai and the UAE are eToro, OKX, HTX (formerly Huobi) and Binance. Bitcoin brokers in the UAE, such as Rain, OKX, Uphold, Bybit and Binance, are regulated by the UAE Financial Services Regulatory Authority (FSRA) or the Abu Dhabi Global Market (ADGM).

How to choose Bitcoin wallets in Dubai

Just like Bitcoin trading platforms in Dubai, there are lots of options for Bitcoin wallets in Dubai to store crypto safely. The first step is to choose a Bitcoin wallet suitable for investor plans or behavior.

Online wallets or wallet applications aren’t as safe as hardware wallets, but they can be more suitable for investors planning to move their cryptocurrency holdings or use them on a regular basis. Hot wallets to choose from include Trust Wallet or Electrum.

More valuable Bitcoin holdings or funds left idle for some time are best stored in safer hardware wallets, such as Trezor or Ledger Nano.

Can you buy Bitcoin in Dubai with cash?

It’s possible to buy Bitcoin in Dubai with cash straight from an account or by using a credit card. After an account has been set up with an exchange, the next step is to add fiat money funds to the account and then go on to purchase Bitcoin.

Does Dubai have Bitcoin ATMs?

The UAE is so welcoming to crypto that it is one of the countries to have Bitcoin ATMs, and Dubai’s first Bitcoin ATM was installed at the five-star Rixos Premium Dubai Hotel in 2019. At the kiosk, visitors can insert cash and buy Bitcoin instantly.

Is buying Bitcoin via P2P in Dubai common?

Peer-to-peer (P2P) cryptocurrency exchanges allow users to trade Bitcoin directly with one another, unlike centralized or decentralized exchanges. On a P2P exchange, it’s possible to look at a seller’s list of assets for sale and choose accordingly. Buyers and sellers agree on the price of the cryptocurrency for sale before the sale is made.

P2P exchanges can be more common in countries with greater restrictions on cryptocurrency exchanges; in Dubai, that’s not the case. The major exchanges operating in Dubai often have P2P functionality as well as standard trading options, which provides the best of both worlds. The exchanges offering P2P trading in Dubai include Binance, Paxful, OKX, HTX, Bybit and KuCoin.

Are there crypto-friendly banks in the UAE?

It is interesting to know how banks in Dubai and the UAE view cryptocurrencies and crypto users. The UAE doesn’t fail the crypto entrepreneur, and there are a number of crypto-friendly banks in the UAE that will allow crypto businesses to open and use fiat accounts.

First Abu Dhabi Bank (FAB) has no policies restricting its customers from buying and selling crypto. Although it doesn’t offer crypto trading, it’s possible to link an FAB account with a crypto exchange to fund Bitcoin purchases. FAB also has future plans to leverage Web3 and digital assets for its users.

Exercise caution while dealing with cryptocurrencies

It is fortunate for Dubai residents to have access to a vibrant financial environment that enables them to engage with the world of cryptocurrencies.

However, it is important to remember that the value of Bitcoin and many other cryptocurrencies is extremely volatile and subject to significant price swings in either direction. Therefore, before entering the cryptocurrency market, careful research and knowledge of the risks involved are crucial.

BTC price tracks $26.5K as Bitcoin speculator supply hits 12-year low

BTC price action stays firmly within an established range, while analysis shows that overall Bitcoin investor composition is changing.

Bitcoin (BTC) stuck to $26,500 into the Sept. 24 weekly close as exchange trader accumulation continued.

BTC/USD 1-hour chart. Source: TradingView

Analysis: BTC price “not ready to make a move”

Data from Cointelegraph Markets Pro and TradingView showed BTC price stability holding firm over the weekend.

Bitcoin had delivered a cool end to the Wall Street trading week, having also shaken off macroeconomic volatility catalysts from the United States.

With few cues appearing since, popular trader and analyst Credible Crypto eyed a slow build-up to a trend shift on the Binance order book.

“Looks like we are not ready to make a move yet,” he summarized to X (formerly Twitter) subscribers on the day.

“Meanwhile, two more blocks of bids just filled. The accumulation continues. Maybe we get a slow weekend and start seeing some movement come Monday. Let’s see what tomorrow brings.”
BTC/USD order book data for Binance annotated chart. Source: Credible Crypto/X

The day prior, fellow trader Skew had hoped for a “liquidity hunt” into the weekly close; this has yet to appear at the time of writing.

Further subtle order book changes were noted by Keith Alan, co-founder of monitoring resource Material Indicators, who spied on bid liquidity moving higher toward spot price.

BTC short-term holder reduced to “fine powder”

Picking up on active Bitcoin market participants, popular trader and analyst CryptoCon noted a major washout of speculators.

Related: Bitcoin speculators now own the least BTC since $69K all-time highs

Short-term holders (STHs), the cohort of Bitcoin investors who have held their coins for 155 days or less, now control less of the available BTC supply than at any point in over a decade.

Highlighting data from on-chain analytics firm Glassnode, CryptoCon described STH holdings as a “fine powder.”

“In other words, there are more strong Bitcoin holders than ever before!” part of commentary added.

Previously, Cointelegraph reported on the implied losses currently being endured by the remaining STH investors.

BTC short-term holder supply annotated chart. Source: CryptoCon/X

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.

Couple mistakenly sent $10.5M by Crypto.com to face October plea hearing

Thevamanogari Manivel was sentenced to 18 months of community corrections with six months of unpaid community work while her husband will face a plea trial in October.

The Melbourne couple who accidentally received 10.5 million Australian dollars (AUD), or almost $6.6 million, will be facing a plea trial in October for a theft charge after spending the funds that they received by mistake in 2021. 

In May 2021, Thevamanogari Manivel transferred funds to her partner Jatinder Singh’s Crypto.com account. However, the exchange detected that the bank account did not match the exchange account. Therefore, a refund was issued, but instead of refunding the 100 AUD that the couple tried to put in, the exchange mistakenly sent 10.5 million AUD to Manivel’s bank account.

The mistake was not discovered until December 2021, when the exchange conducted its annual audit. After the exchange filed a lawsuit in the Victoria Supreme Court, the judge ruled that the funds should be given back to the crypto trading platform. 

However, the couple had allegedly already gone on a spending spree before the mistake was discovered. The couple had reportedly bought four houses, vehicles and many other items and sent around 4 million AUD to a Malaysian bank account. One of the houses is a five-bedroom property in Craigieburn worth 1.35 million AUD, which was ordered by the court to be sold and the funds returned.

1.35 million AUD property bought by the couple. Source: Nine News

In October 2022, the couple argued in court that they thought they had won a prize from the crypto exchange. Singh claimed that he had previously received a notification from the company regarding a competition. However, Crypto.com compliance officer Michi Chan Fores denied that such a competition existed. Fores noted that the exchange did not send such notifications to their users. 

Related: Crypto.com downsizes some sports partnership deals amid market downturn: Report

Manivel, who was charged with theft, has recently pleaded guilty to recklessly dealing with the proceeds of crime in September 2023. She was sentenced to an 18-month community corrections order which includes six months of intensive compliance and unpaid community work after she already spent 209 days in custody. Meanwhile, Singh is set to face a plea trial on Oct. 23.

Magazine: ‘AI has killed the industry’: EasyTranslate boss on adapting to change

Terra Classic community elects to cease USTC minting

The community strongly backs stopping TerraClassicUSD (USTC) minting and reminting in favor of burning tokens to restore its US dollar peg.

The Terra Classic community has voted in favor of ceasing all minting and reminting activities related to TerraClassic USD (USTC), with the objective of reestablishing a stable peg between USTC and the U.S. dollar.

In a recent proposal, the community voted with 59% in favor of discontinuing the minting of USTC, while approximately 40% were opposed to the change.

Terra Classic poll results. Source: Atom Scan

The move aims to safeguard the interests of both the community and external investors by reducing the supply of USTC, thereby contributing to the goal of a repeg.

In May 2022, USTC detached from the U.S. dollar. Subsequently, it caused Terra to experience a catastrophic decline, as Luna Classic (LUNC) was closely tied to USTC. 

LUNC's value plummeted by nearly 100%, setting off a broader downturn in the crypto markets, resulting in the loss of approximately $40 billion in total market capitalization.

It notes that the proposal will prompt major crypto exchanges to commence the USTC elimination process.

“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over," the statement noted. 

Related: Lack of stablecoin regulation could push issuers out of US — Austin Campbell

This comes after reports that the Terra Classic community is concerned about an uptick in spam following the decline in LUNC prices.

On September 10, Cointelegraph reported that the community is voting on multiple proposals, one of those being to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.

The proposal ended on September 16, with 93.22% in favor of the minimum deposit requirement amount being increased.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

FTX’s former external legal team disputes involvement in fraud allegations

In a recent court filing, a United States law firm that had previously offered services to FTX challenged allegations of assisting Sam Bankman-Fried in his alleged unlawful activities.

A law firm that previously provided services to the now-defunct cryptocurrency exchange FTX has refuted a class-action lawsuit brought against them claiming that it assisted in the exchange's alleged fraudulent activities. 

According to a Sept. 21 court filing, Fenwick & West, a United States law firm, denies all accusations of misconduct related to the provision of legal services during FTX operations:

“It is black-letter law that an attorney cannot be held liable for conspiracy or aiding and abetting a client’s wrong “‘as long as [his] conduct falls within the scope of the representation of the client.’”
Court filing in the United States Southern District of Florida. Source: Thomson Reuters

The plaintiffs contend that while Fenwick provided regular legal services within the bounds of the law, Sam Bankman-Fried allegedly misused the advice to advance his fraudulent activities.

They further argued that Fenwick exceeded the norm in its service offerings to FTX.

“Plaintiffs allege that Fenwick can nevertheless be held liable because Fenwick purportedly “provided services to the FTX Group entities that went well beyond those a law firm should and usually does provide,” the filing noted.

Related: Crypto’s Lehman moment: Investors buy $250M of FTX claims — Report

It was further claimed that employees of Fenwick chose to depart from the firm and join FTX voluntarily.

Additionally, the filing reiterated that Fenwick assisted in establishing corporations used by Bankman-Fried in his fraud, and advised FTX on regulatory compliance in the evolving crypto landscape.

However, Fenwick argued that it should not bear liability, as it was not the sole law firm representing FTX. It asserts that it played a relatively minor role in providing various aspects of legal advice to the bankrupt exchange.

"If Plaintiffs’ allegations were sufficient to state a claim against Fenwick for conspiracy and aiding and-abetting liability, then any lawyer could be hauled into court and forced to answer for his client’s misconduct. That is not the law."

This comes after the FTX debtors filed a lawsuit against former employees of the Hong Kong-incorporated company Salameda, which was previously affiliated with the FTX group.

FTX initiated legal action to reclaim $157.3 million, alleging that the funds were illicitly withdrawn shortly before the exchange's bankruptcy filing.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Coinbase secures AML registration from the Bank of Spain

The Anti-Money Laundering (AML) registration will allow cryptocurrency exchange Coinbase to offer its services to both retail and institutional investors within Spain.

Cryptocurrency exchange Coinbase has secured an Anti-Money Laundering (AML) compliance registration from Spain’s central bank, as part of its ongoing expansion across Europe.

According to a Sept. 22 statement, the registration with the Bank of Spain now means that Spanish users will be able to retain custody of their crypto assets on Coinbase, as well as buy and sell crypto assets in Spain's legal tender, the Euro.

“This registration will allow Coinbase to offer our full suite of products and services to retail and institutional users in Spain, all in compliance with the national legal framework”

It highlighted that almost one-third of individuals in Spain have a positive outlook on digital assets. “29% of adults in Spain believe crypto is the future of finance,” it stated.

Additionally, it noted that crypto has now become the second most preferred payment method in Spain, surpassing traditional bank transfers.

Nana Murugesan, vice president of international and business development at Coinbase, stated that the exchange continues to seek regulatory compliance across the world:

“In the last year alone we have obtained VASP registrations in Italy, Ireland, and the Netherlands, as well as in-principle approval and launching in Singapore, launching in Brazil, and, most recently, launching in Canada.”

This follows shortly after crypto exchange Crypto.com obtained regulatory approval in Spain. On June 23, Crypto.com announced that it had been granted a virtual asset service provider (VASP) registration from the Bank of Spain. 

In October 2021, the Bank of Spain provided guidance on the steps crypto service providers can take to achieve Anti-Money Laundering (AML) compliance within the country.

The instructions specified that crypto exchanges must submit reports detailing efforts to prevent illicit activities such as money laundering and terrorism financing.

Related: Coinbase holds 5% of all Bitcoin in existence: Data

Meanwhile, recent reports indicate that Coinbase is aiming to establish a strong presence in Europe.

On September 22, Cointelegraph reported that Coinbase attempted to buy FTX Europe, the now-defunct crypto exchange, two times. It first tried in November 2022 when FTX filed for bankruptcy, and then again in September 2023.

This comes amid the European Parliamentary Research Service (EPRS) recently emphasizing the need for non-European regulators to exercise stricter oversight in the global crypto market.

As the Markets in Crypto-Assets Regulation (MiCA) Act progresses toward its December 2024 implementation deadline, an EPRS report urges the establishment of a more rigorous regulatory framework in non-EU jurisdictions.

“There are yet several channels through which the EU's financial system and autonomy is still at risk as it remains dependent on non-EU countries’ policy actions in the context where the MiCA is applicable.”

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

Binance.US scores against SEC, Mt. Gox delay repayments, and other news: Hodler’s Digest, Sept. 17-23

Binance.US scores temporary win against the SEC, Mt. Gox repayments delayed to 2024, and Tether’s $1B liquidity to Tron network.

Top Stories This Week

SEC sees temporary setback in request to access Binance.US software

The United States Securities and Exchange Commission has failed to win immediate access to Binance.USs software, with the judge saying he isnt inclined to allow the inspection at this time. The hearing was held on Sept. 18 to discuss the SECs motion to compel Binance to hand over detailed information and make its executives more available for depositions. In a hearing, Judge Faruqui said that he wasnt inclined to allow the inspection at this time. Alternatively, he proposed that the SEC should come up with more specific requests for discovery and speak with a broader range of witnesses. In another headline, Binance global and its CEO Changpeng CZ Zhao requested dismissal of the SEC’s lawsuit filed against them in June, claiming the regulator overstepped its authority in the case. 

Mt. Gox trustee changes repayment deadline to October 2024

Mt. Gox trustee Nobuaki Kobayashi has officially changed the deadline for paying back the exchanges creditors from Oct. 31, 2023, to Oct. 31, 2024. Presently, the Mt. Gox estate holds some 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen. Mt. Gox was one of the earliest cryptocurrency exchanges, once facilitating more than 70% of all trades made within the blockchain ecosystem. Following a major hack in 2011, the site subsequently collapsed in 2014 due to alleged insolvency; the fallout affected about 24,000 creditors and resulted in the loss of 850,000 BTC.

Tether authorizes $1B USDT to replenish Tron network

Tether’s Treasury is set to provide a $1 billion near-term liquidity for the Tron network. The billionaire authorization was flagged by blockchain tracker WhaleAlert, which drew a quick-fire response from Tether chief technology officer Paolo Ardoino, who said that the USDT tokens would be used as inventory to replenish the Tron network. Authorizing USDT in the Tether Treasury allows the company to issue USDT instantaneously once customer funds are received to ensure that the issuer maintains 100% of its reserves. Ardoino added that the event was an authorization and not an actual issuance, with the allocated amount set to serve as inventory for upcoming issuance requests and chain swaps from the Tron network.

FTX founders parents sued, accused of stealing millions from crypto exchange

Debtors of FTX have launched legal action against the parents Sam SBF Bankman-Fried, alleging that they misappropriated millions of dollars through their involvement in the crypto exchange. The plaintiffs argued that Joseph Bankman and Barbara Fried exploited their access and influence within the FTX empire to enrich themselves at the expense of the debtors in the FTX bankruptcy estate. The debtors alleged that SBFs parents were very much involved in the FTX business from inception to collapse, contrary to what SBF has claimed. According to the complaint, Bankman and Fried extracted significant unearned rewards from their involvement in FTX Group, including a $10-million cash gift and a $16.4-million luxury property in the Bahamas.

Grayscale files for new Ether futures ETF Official

Digital currency investment company Grayscale is the latest firm to file with the Securities and Exchange Commission for a new Ether (ETH) futures exchange-traded fund (ETF).

Grayscale Ethereum Futures Trust will hold Ether futures contracts with a “roughly constant expiration profile,” according to the filing. The trust will “never carry futures positions to cash settlement.” The nature of the Ether futures contracts in the ETF will not require the trust to use an Ether custodian. Grayscale’s application comes a few weeks after Valkyrie also filed for an Ether futures ETF with the SEC in mid-August, following several other firms filing for ETH futures ETFs.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $26,525, Ether (ETH) at $1,590 and XRP at $0.51. The total market cap is at $1.05 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Immutable (IMX) at 27.07%, Curve DAO Token (CRV) at 16.16%, and Aave (AAVE) at 15.92%. 

The top three altcoin losers of the week are Gala (GALA) at -8.57%, Axie Infinity (AXS) at -7.42%, and Optimism (OP) at -7.52%. 

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

Read also

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Most Memorable Quotations

There remains a real risk that the use of AI develops in a way that undermines consumer trust or is dominated by a few players […].

Sarah Cardell, CEO of the U.K. Competition and Markets Authority

Dont give up on the United States. This too shall pass, the confusion shall pass. The United States is a good place to build things, and I want it to stay that way.

Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission 

If the average end-user, who isnt a computer scientist, who doesnt understand blockchain, has to know about their private keys weve got it wrong. They have to be abstracted away,

James Tromans, head of Web3 at Google Cloud

Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.

Jamie Coutts, crypto market analyst at Bloomberg

It is an inevitable future where there will no longer be any intermediaries between fans and creators this is an obvious but unrealized potential of blockchain technology.

Leon Lee, founder and CEO of Only1

[The U.S. government] can do a central bank digital currency if its open, permissionless and private. It has to emulate cash.

Tom Emmer, U.S. Representative

Prediction of the Week 

Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar

Bitcoin circled lower after the United States Federal Reserve decision on interest rates, with $20,000 BTC price predictions resurfacing. 

The aftermath of the Fed interest rates pause on Sept. 20 offered little for Bitcoin bulls, BTC/USD having dipped almost $700 the day prior. Data from Cointelegraph Markets Pro and TradingView covered a lackluster 24 hours for BTC price action, with $27,000 fading from view.

Now, market participants returned to a more conservative outlook in the absence of tangible volatility. Something like this over the course of October would be perfect i would say, popular trader Crypto Tony told X (formerly Twitter) subscribers.

Slow grind up to $28,500, followed by hype and FOMO, to then dump it once more.

FUD of the Week 

Balancer blames social engineering attack on DNS provider for website hijack

Ethereum-based automated market maker Balancer believes a social engineering attack on its DNS service provider was what led to its websites front end being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen. Blockchain security firms SlowMist and CertiK reported that the attacker employed Angel Drainer phishing contracts. SlowMist said the exploiters attacked Balancers website via Border Gateway Protocol hijacking a process where hackers take control of IP addresses by corrupting internet routing tables. The hacker has already bridged some of the stolen Ether (ETH) to Bitcoin (BTC) addresses.

Crypto influencer arrested in Hong Kong for JPEX association

A Hong Kong-based social media influencer has reportedly been arrested after investigations around the liquidity crisis of the crypto exchange JPEX traced back their involvement. According to a local report, the Securities and Futures Commission of Hong Kong recently issued a statement blaming JPEX for actively promoting the platforms services and products to the public through online celebrities and over-the-counter money changers. Another unconfirmed report suggests that Lin Zuo presented schemes to a chat group created for cryptocurrency investment. Also related to this story, Hong Kong regulators are looking to tighten regulations around the crypto market following the failure of JPEX, which led to the arrest of over six individuals.

CoinEx hack: Compromised private keys led to $70M theft

Hong Kong-based cryptocurrency exchange CoinEx has revealed that compromised private keys allowed hackers to steal over $70 million worth of tokens. According to CoinEx representatives, the amount represents a small percentage of its total assets under management. CoinEx stated that affected users will be compensated entirely for any lost funds. The exchange explained that a preliminary investigation pinned the root cause to a compromised private key for its hot wallets. These were used to store exchange assets for carrying out deposits and withdrawals.

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NFT Collector: William Mapan explains generative art using a crayon and dice

What even is generative art? William Mapan, whose 250-piece Distance collection just sold out at 2ETH each, explains using a crayon and die.

JPEX staff flee event as scandal hits, Mt. Gox woes, Diners Club crypto: Asia Express

Hong Kong crypto exchange JPEX busted in $166M scam, Mt. Gox delays repayments yet again, oldest credit card company in Singapore moves into blockchain.

What are Bollinger Bands, and how to use them in crypto trading?

Bollinger Bands are volatility indicators utilizing price bands. Traders buy near the lower band and sell near the upper band.

A technical analysis tool called Bollinger Bands uses price volatility to provide probable entry and exit opportunities in trading. They are made up of two outer bands or lines and a centerline (the simple moving average for a 20-day period), which enlarges and contracts in response to changes in price. For thorough market analysis, they are frequently utilized in conjunction with other technical indicators.

Bollinger Bands, explained

Bollinger Bands were created by John Bollinger in the 1980s. They are a useful technical analysis tool used in cryptocurrency trading and other financial markets to evaluate price volatility, pinpoint probable reversal points, and make trading decisions.

The three bands that help construct a Bollinger Band include:

Upper band

The upper band is created by multiplying the middle band by the price’s standard deviation. A price’s volatility is quantified by the standard deviation. Traders often use a multiplier of 2 for the standard deviation (SD), but this can be changed depending on the state of the market and personal preferences.

Middle band (SMA)

The middle band typically represents the price of the asset over a given period as a simple moving average (SMA). It serves as the axis and depicts the average price of the cryptocurrency within the selected time frame.

Lower band

From the middle band, a multiple of the standard deviation is subtracted to determine the lower band.

The purpose of Bollinger Bands in cryptocurrency trading

In cryptocurrency trading, Bollinger Bands serve as a crucial technical analysis technique that allows traders to:

Assess price volatility

Traders can assess the degree of price volatility in the cryptocurrency market using Bollinger Bands. When the bands widen, there may be trading possibilities because it suggests higher volatility. On the other hand, a contraction of the bands denotes less volatility and the potential for price consolidation or trend reversals.

Identify overbought and oversold conditions

Bollinger Bands are used to detect possible overbought and oversold scenarios, helping traders identify them. A potential sell opportunity arises when the price reaches or exceeds the upper band, which is a sign that the price is overbought. On the other hand, if the price reaches or drops beneath the lower band, it can be considered oversold, indicating a potential purchase opportunity.

Determine trend direction

Traders may use Bollinger Bands to ascertain the prevailing trend direction. The price may indicate an uptrend if it constantly moves along the top band. On the other hand, if it frequently touches or remains close to the lower band, it can be a sign of a downtrend.

Generate reverse signals

Bollinger Bands can be used to create reversal signals, which are indicators of possible trend reversals. For instance, a possible reversal from an overextended condition may be indicated when the price moves outside the bands and then reenters (below the lower band for a downtrend or above the upper band for an uptrend).

How are Bollinger Bands constructed?

The simple moving average and standard deviation are the two basic building blocks of Bollinger Bands and are used in their construction. These bands offer insightful information on price volatility and possible trading opportunities in the cryptocurrency markets.

Here’s a step-by-step guide to constructing Bollinger Bands:

Step one: Calculate the SMA

Depending on their trading technique, traders choose a particular time frame for analysis, such as daily, hourly or another timeframe. For the selected time frame, previous closing prices for the cryptocurrency under examination are gathered. Since it indicates the last traded price at the conclusion of each time period, the closing price is frequently employed.

By adding up the closing prices for the chosen time period and dividing the total by the number of data points, the SMA is calculated. For instance, if traders were examining a cryptocurrency’s daily closing prices over a 20-day period, they would add up the closing prices from the previous 20 days, divide by 20, and then find the SMA for that day.

Step two: Calculate the SD

Traders determine the standard deviation of the closing prices during the same time period after computing the SMA. The standard deviation, which is crucial for assessing price volatility in cryptocurrency markets, quantifies the dispersion or variability of prices from the SMA.

Step three: Construct the upper and lower Bollinger Bands

The higher Bollinger Band is created by multiplying the SMA by the standard deviation. A typical multiplier is 2, although (as mentioned) this can be changed depending on the preferences of the traders and the state of the market. The same multiple of the SD is subtracted from the SMA to arrive at the lower Bollinger Band.

Step four: Plotting the Bollinger Bands on a price chart

Traders can plot the SMA, standard deviation, upper Bollinger Band and lower Bollinger Band on a price chart after calculating them. The centerline of the Bollinger Bands and the SMA is represented by the middle line. Plotting the upper and lower bands above and below the SMA creates a channel that encircles the price chart.

Step five: Interpretation

To understand how to use Bollinger Bands to trade cryptocurrencies, it is vital to interpret the price signals. For instance, when the price reaches or swings outside the upper band, it may signal an overbought condition and an opportunity to sell.

On the other hand, if the price touches or swings outside the lower band, it can be a sign that the market is oversold, presenting a potential buying opportunity. The bands’ breadth provides information on market volatility; broader bands denote higher volatility, while narrower bands denote lesser volatility.

Crypto trading strategies with Bollinger Bands

Various crypto trading strategies using Bollinger Bands used by traders include:

The Bollinger Band Squeeze strategy for crypto

The Bollinger Band Squeeze approach is based on the idea that times of low volatility in crypto prices (referred to as a “squeeze”) are frequently followed by periods of high volatility (referred to as an “expansion”). It works as follows:

  • Find the squeeze: Watch for times when the Bollinger Bands narrow and move in closer proximity, a sign of decreased price volatility.
  • Prepare for a breakout: After a squeeze, traders expect a strong price change. They don’t foresee the breakout’s direction, but they do get ready for it.
  • Entry points: Traders enter positions following price breakouts from Bollinger Bands (above upper band for up, below lower band for down), often using additional confirmation indicators, such as volume.
  • Stop-loss and take-profit: Implement stop-loss orders to limit potential losses if the breakout fails to hold and set take-profit levels according to one’s trading strategy.

Bollinger Bands for setting entry and exit points in crypto trades

When trading cryptocurrencies, whether for short-term investments or day trading, Bollinger Bands can be utilized to find the best entry and exit points.

Entry points

When the price reaches or breaks below the lower Bollinger Band, indicating an oversold scenario, traders might seek buy signals. In contrast, they view overbought conditions as sell signals when the price reaches or exceeds the upper Bollinger Band. However, it could be necessary to do more technical investigation and validation.

Exit points

Bollinger Bands can be used by traders to determine when to close out a position. For instance, it may be an indication to take profits if traders are long on a cryptocurrency, and the price is approaching the upper band. In contrast, it might be time to close out the trade if they are short, and the price is getting close to the lower band.

Combining Bollinger Bands with other trading indicators

Bollinger Bands are frequently used by traders together with other indicators to complement their trading strategies.

Bollinger Bands and RSI

Combining Bollinger Bands and the relative strength index (RSI) might aid traders in spotting probable reversals. A probable slump may be indicated, for instance, if the price is nearing the upper Bollinger Band and the RSI shows overbought circumstances.

Volume analysis

Bollinger Bands and analysis of trading volume can be used to corroborate price fluctuations. An increase in volume during a Bollinger Band breakout might strengthen the signal’s validity.

Bollinger Bands and moving averages

Moving averages are used in combination with Bollinger Bands by traders to add more context to trend analysis. Bollinger Bands and a moving average crossover approach, for instance, can support the confirmation of trend changes.

Limitations of Bollinger Bands for crypto traders

Bollinger Bands are a useful tool for cryptocurrency traders, but they also have some drawbacks. Firstly, they might produce false signals during times of minimal volatility or in markets that are moving strongly, which could result in losses. Secondly, traders must utilize other indicators or analysis techniques to confirm trend direction since they do not provide directional information on their own.

The efficacy of Bollinger Bands might also vary across different cryptocurrencies and timeframes. Additionally, unexpected market news or occurrences may result in price gaps that aren’t necessarily reflected in the bands, which may catch traders off guard.

Risk management strategies when using Bollinger Bands

As with any technical indicator, Bollinger Bands must be used by cryptocurrency traders in conjunction with thorough risk management and analysis. To reduce possible losses in the event that transactions go against them, traders should set up explicit stop-loss orders.

Position sizing is also essential; to avoid overexposure, traders should also allocate a certain amount of their cash to each trade. Moreover, risk can be reduced by diversifying among different cryptocurrencies and limiting the percentage of one’s entire capital that can be lost in a single trade.

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.

Finally, Bollinger Bands should always be used in conjunction with other indicators for confirmation, as well as larger market patterns. Long-term success with Bollinger Bands depends on maintaining discipline and following a clear risk management strategy.

Coinbase holds 5% of all Bitcoin in existence: Data

While Coinbase holds $25 billion in BTC, the exchange only owns around $200 million of Bitcoin in its wallets.

Blockchain intelligence platform Arkham recently identified that crypto exchange Coinbase holds almost 1 million Bitcoin (BTC) in its wallets. The coins are worth more than $25 billion at current market prices for BTC. 

According to Arkham, the exchange’s holdings amount to almost 5% of all existing Bitcoin. Arkham said that Coinbase holds a total of 947,755 BTC. At the moment, Bitcoin’s circulating supply is around 19,493,537, according to coin information website CoinGecko.

Furthermore, Arkham also noted that it tagged and identified 36 million Bitcoin deposit and holding addresses used by the exchange. According to Arkham, Coinbase’s largest cold wallet holds around 10,000 BTC. Based on the exchange’s financial reports, the intelligence company believes that Coinbase has more Bitcoin that are not yet labeled and could not be identified. 

While Coinbase holds over $25 billion in BTC in its wallets, the exchange only owns around 10,000 of all the Bitcoin it holds, which is worth roughly $200 million, according to recent data.

Related: Bitcoin mining can help reduce up to 8% of global emissions: Report

Meanwhile, community members expressed varying reactions to the news about the amount of Bitcoin the centralized exchange holds. Some believe it’s a sign to withdraw their BTC from exchanges, warning holders not to wait until exchanges start to halt withdrawals. Others say that since there are legitimate concerns over cold wallets, there’s no good way to store their assets.

When it comes to Bitcoin ownership by companies, business intelligence firm MicroStrategy still owns the most BTC. In earnings results posted on Aug. 1, the firm’s co-founder Michael Saylor declared that the company owns 152,800 BTC, worth over $4 billion at the time of writing.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in