LA Token launches LACHAIN to bridge Ethereum-based networks

March 11, 2022 Coin Telegraph

The latest centralized exchange blockchain from LA Token claims to be the DeFi Hub for its users and is compatible with all Ethereum-based networks, though it is off to a slow start in an increasingly competitive ecosystem.

Crypto platform LA Token has become the latest exchange to launch its own blockchain with the LACHAIN network which it hopes will give its users access to decentralized finance (DeFi) products and a bridge between other networks.

The layer-1 Ethereum Virtual Machine (EVM)-compatible and WebAssembly (WASM)-compatible LACHAIN went live on Mar. 10 to help LA Token capitalize on expected future growth in demand for token bridges between networks. LA Token was launched in 2017 in the Cayman Islands. It has had $281.6 million in trading volume over the last 24 hours according to CoinGecko.

EVM compatibility allows tokens on the proof-of-stake LACHAIN to transfer seamlessly between other Ethereum-based networks such as Polygon (MATIC) and others including BNB Chain (formerly Binance Smart Chain). WASM is a competitor to EVM for smart contract platforms.

The new network’s main workload is expected to be in handling DeFi services as it is touted as “The DeFi Hub” on its website. As of now, the only dApp that appears to be on the network is LA Token’s own LADEX decentralized exchange.

LACHAIN has about $23 million in total value locked (TVL) as of the time of writing from 6 tokens including LA and wrapped versions of LA, Tether (USDT), MATIC, BNB, and Ether (ETH). There are currently jus678 total wallet addresses and four validators on the network. Each validator appears to be LA Token’s own wallets, however, this could not be confirmed as the exchange has not responded to a request for comment. As of the time of writing, there have been 194,615 transactions performed on-chain.

LACHAIN is entering a highly competitive ecosystem of similar networks. Other centralized exchanges with their own blockchain networks include Crypto.com’s Cronos, and KuCoin with KCC. Currently, BNB Chain (formerly BSC) is the largest centralized exchange blockchain with a market cap of $8.3 billion in BNB tokens. Like with those exchanges, LA Token’s exchange token LA will be used to pay fees and gas on LACHAIN.

LA is down 1.4% over the last 24 hours and is trading at about $0.10 according to CoinGecko. It has fallen 94.2% from its $1.82 all-time high set in January 2018.

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White paper introducing Jack Dorsey’s decentralized Bitcoin exchange published on Friday

November 19, 2021 Coin Telegraph

Bitcoin DEX

It's not a decentralized exchange in the truest sense of the word, but a peer-to-peer token swap platform under the oversight of Square.

Jack Dorsey, co-founder, and CEO of both Square and Twitter, released a white paper Friday detailing plans for Square's decentralized Bitcoin (BTC) exchange tbDEX. Unlike most decentralized exchanges, or DEXs, tbDEX will not utilize a trustless model, and therefore will not feature its own governance token. Instead, it is a message protocol designed to facilitate trust relationships without relying on a federation to control access.

The tbDEX also intends to include many features that make it far less decentralized than a DEX in the truest sense of the word. For starters, the protocol requires that all participants to pass background know-your-customer, or KYC, checks to comply with relevant regulations depending on a user's region. Users can only then connect their wallets to the exchange and swap coins with one another.

Furthermore, the white paper called for the deployment of blockchain analytic solutions, either built-in to the DEX or through a third party, to track transactions on the platform. Such a class of blockchain forensic solutions is potentially a controversial topic. Such a system would likely enable authorities to cross-reference payment IDs and public wallet addresses with KYC information to unveil personal identities behind transacting parties. However, supporters claim that such means of monitoring are necessary to prevent illicit activities.

But centralized features of the tbDEX could also win support from crypto enthusiasts. One distinguishing aspect discussed in the white paper is that of chargebacks, which doesn't exist on most DEXs. If implemented, the ability for Square to reverse transactions on the tbDEX could potentially stop irreversible loss suffered by investors during decentralized finance rug pulls. Square is currently encouraging feedback on the white paper on a newly created Twitter account.

We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021

Uniswap (UNI) gains nearly 50% in 24 hours as China’s latest crypto purge boosts DEX tokens

September 27, 2021 Coin Telegraph

Binance Coin

In the last 24 hours, the decentralized exchange sector has logged a combined profit of over 60%, while their centralized counterparts have grown by just 0.77%.

Uniswap (UNI) prices staged a solid rebound after crashing last week in the wake of China's decision to intensify its anti-Bitcoin and cryptocurrency rhetoric.

UNI price gained 14.90% on Mon to reach an intraday high of $26.26. The pair's climb came a day after it dropped to a monthly low of $17.63. As a result, it churned out more than 48% profits for the dip buers within the last 24 hours.

Adoption FOMO

UNI serves as a governance token inside Uniswap's decentralized exchange (DEX) ecosystem. As a result, its holders get to vote on matters that help steer the future direction of the DEX platform.

Additionally, UNI holders could also receive a potential revenue share in the future. For the uninitiated, Uniswap's governance contract contains a so-called "fee switch," If activated, it will enable UNI holders to earn a part of the protocol's fees.

Some users already generate revenues by contributing to Uniswap's pools of assets, earning between 0.05% and 1% of the value of each trade in the current version.

*Uniswap's liquidity pool schematic. Source: Uniswap Official Doc Page*

Therefore, the prospect of Uniswap growth as a DEX could also mean a higher adoption curve for UNI. And so it appears, China's intensifying crackdown on the crypto industry has boosted the token's appeal among speculators.

The People's Bank of China (PBoC) and other government agencies deemed crypto transactions illegal in an announcement made public on Friday. Meanwhile, they also targeted offshore cryptocurrency exchanges, warning that it was illicit to provide online trading services to Chinese residents.

The move served to fix a loophole that remained in place after PBoC banned all regional financial institutions from offering services to crypto companies. During this time, China-based traders had continued to use off-shore cryptocurrency trading platforms, such as Huobi, Binance, and OKEx.

BREAKING: #Huobi and #Binance, the 2 largest crypto exchanges in the world, have now fully suspended all new users from Mainland China after the Chinese government declared #Bitcoin trading illegal. pic.twitter.com/ILExeMmgBU
— Mr. Whale (@CryptoWhale) September 26, 2021

But decentralized trading platforms like Uniswap attempt to steer clear of governmental jurisdictions by replacing the custodial asset model with a non-custodial one based on smart contracts and multi-signature technology.

As a result, the recent bout of buying in Uniswap markets has appeared in sync with similar rallies across its top rivaling DEX tokens, as shown in the Messari index below.

*Uniswap and SushiSwap (SUSHI) has led DEX gains in the previous 24 hours. Source: Messari*

Overall, the DEX index containing 60 assets was up 10.27% around 12:05 UTC, calculated on a 24-hour adjusted timeframe. Meanwhile, the gains of thirteen centralized exchange tokens, including Binance Coin (BNB) and FTX Token (FTT), came out to be only 0.77% in the same period, suggesting traders' sudden FOMO for their DEX rivals.

*Centralized exchange tokens in the previous 24 hours. Source: Messari*

UNI technicals

UNI prices have been trading lower inside a parallel descending channel that appears to be the 'handle' of a classic Cup and Handle technical pattern.

The setup emerges when an asset forms a rounding bottom (cup) while correcting after a solid move higher. After completing the formation, it trends lower in a descending channel range—which typically leads to a breakout to the upside.

In rising so, the asset sets its bullish target at a distance equal to the Cup's depth.

*UNI/USD daily price chart featuring the cup and handle pattern. Source: TradingView.com*

UNI ticks almost all the boxes when forming the Cup and Handle Pattern in recent sessions. The Uniswap token now eyes a breakout from its descending Handle channel range, with a profit target set at $17.83 above the cup's resistance level at $48.54.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Are KuCoin Shares overvalued after KCS price gains 100% in one month?

July 7, 2021 Coin Telegraph

Altcoins

The 72nd-largest cryptocurrency by market cap reached its two-month high amid a rally across exchange-based digital assets but faces downside risks due to overvaluation and thin volumes.

KuCoin (KCS) prices ticked up in the early Wednesday session on July 7, in part because of an ongoing market rally across the top exchange-based utility tokens.

The 72nd-largest cryptocurrency peaked for the day at $14.847 before correcting lower on interim profit-taking sentiment. The move downside accompanied decent volumes, alerting that the sell-off momentum could continue across the European and the U.S. sessions.

*The selling sentiment appeared higher around $15, a concrete resistance level from the April-May session. Source: TradingView*

At the time of writing, the KCS/USDT exchange rate was approximately $14, up more than 100% on a month-to-date timeframe (MTD).

Therefore, KuCoin's bearish correction appeared as an attempt to neutralize its overextended upside momentum. The cryptocurrency's relative strength index (RSI) on one-day charts popped above 70 following its latest price spikes, a reading that technical terms the underlying asset as "overbought."

The RSI continues to float above 70, alerting about KuCoin interim downside risks before it attempts to break above the technical resistance around $15 (as shown in the chart above).

Bullish setup

Conversely, the price breaking out of a descending channel range to the upside raised its prospects of extending the bullish move further higher. As the charts below illustrate, KCS trended lower while fluctuating inside a falling range—this pattern appears like a Falling Wedge

Falling Wedges are bullish reversal patterns. They come into the picture when an asset's price action forms a conical shape while sloping down and forming at least two reaction highs and lows. Adjusting the KCS/USDT's lower trendline move makes a similar descending structure.

*KuCoin Falling wedge setup. Source: TradingView.com*

Falling Wedge breakouts are technically skewed to the upside. Therefore, KuCoin's latest resistance break, coupled with a spike in volumes, can be called a bullish breakout, with its profit target lurking near $19.751 (situated as far as the maximum Wedge height).

Fundamentals

KCS's upside move, on the whole, appeared as a part of an overall price rebound across the exchange token markets.

*Exchange tokens rally in tandem, except SUSHI. Source: Messari*

Nonetheless, KCS markets showed strikingly lesser volumes in the previous 24 hours compared to its exchange-token rivals. For instance, the second-to-worst volume logged by an exchange token was roughly $620,000 (see Unus Sed Leo in the chart above). On the other hand, KuCoin's 24-hour adjusted volume was $63,531.

Thin volumes mean that there were fewer numbers of KCS tokens trading. In turn, there was a lower KCS liquidity across the markets. As a result, an asset's price volatility rises in a low volume market and makes it susceptible to the wilder upside and downside moves.

The popular analogy serves as additional headwinds for KuCoin bulls as they attempt to claim the Falling Wedge's profit target.

KuCoin Shares, or KCS, serves as a utility token on the KuCoin exchange. The platform uses KCS to reward users for using its services, similar to how Binance deploys BNB as a measure to offer users discounts on trading fees. Holders of KCS, meanwhile, also receive a daily dividend, i.e., a KuCoin bonus, which equals 50% of the trading fees on the exchange.

As KuCoin moves to become a fully decentralized platform, it plans to use KCS for transaction fees. The exchange also intends to buy back and destroy half of KCS's 100 million supply cap. The funds to facilitate the buyback, again, comes from KuCoin's trading fees.

VORTECS™ data from Cointelegraph Markets Pro also began to detect a bullish outlook for KuCoin Shares price hours ahead of the July 7 rally.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

*KuCoin Shares VORTECS™ Score (green) vs. KCS price (white). Source: Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score flashed green on July 6, 21:55 UTC, with a score of 65 with the price continuing to climb higher above $11.27. KuCoin-related tweet volume queries also surged by 1,246.31% over the past 24 hours.

Centralized Exchange