Crypto Guides, Knowledge & Insights

Johnny Lyu, KuCoin Exchange's CEO, has denied insolvency rumors.

Otteroooo functions more like a whistleblower, alerting consumers to problems in the Centralized Finance (CeFi) ecosystem. It had a large following until it deactivated the account.　　According to the KuCoin whistleblower, the exchange does not have a liquidity problem that it may use to process customer redemptions due to its exposure to the Terraform Labs ecosystem tokens LUNC and wLUNC.　　Lyu explained in a blog post with documentation of talks between himself and Otteroooo that KuCoins only exposure to the LUNA ecosystem tokens is because it supports the trading of those coins.　　“It is our job to keep them secure and ensure that users can withdraw in whole at any time.” “Having a LUNC wallet does not always imply that KuCoin as a corporation is holding a large number of LUNC tokens, and Im sure the difference is clear,” the blog post added.　　After Celsius Network, Voyager Digital, Babel Finance, and others shut down withdrawals, locking billions of dollars in client funds, the digital currency ecosystem has become extremely sensitive to news of collapse. As a trading platform, KuCoin is certain to have many more user cash as deposits, and investors will wish to avoid being cut off from their funds.　　While the FUD also

2022-07-26Deep Dive

Bitso surpasses one million users in Brazil.

According to Thales Freitas, the head of Bitsos operations in Brazil, the company has reached the milestone of one million users in Brazil earlier than was anticipated. Additionally, he mentioned that the total number of transactions had increased by 66 percent from May to June.　　Despite the recent bearish trend in the market, Freitas told Reuters that the readings so far in July have already surpassed those of the previous month. However, he did not offer any specific numbers in his response.　　Bitso is now operating in Brazil through partnerships with the financial institutions Banco Genial and Starkbank.　　A funding round held by Bitso in May 2021 brought in a total of $250 million, which resulted in the firm being valued at $2.2 billion prior to its introduction in Brazil.　　Bitso has increased the value of its incentive program in response to the increasingly unfavorable environment brought on by increased interest rates and substantial asset volatility. The site is providing potential profits on stablecoin investments of up to 15 percent each year.　　Bitso is a digital currency that began operations in 2014 and has its headquarters in Mexico.　　“Brazilian investors prefer fixed income, and stablecoins are a good way to diversify,” said Freitas. “Stablecoins are a

2022-07-26Deep Dive

Crypto Market Awakening on Retail Stack Up

With the recent high volatility, a trend above this level is evident: cryptocurrencies are demonstrating power and perseverance in the face of harsh unfavorable fundamentals.　　According to CoinMarketCap data, Bitcoin (BTC) was among the digital currencies that led the rise this weekend, rising 2.49 percent to $22,751.06. Ethereum (ETH) is also trading at $1,599.19, having gained up to 19.58 percent in the last 24 hours.　　At the time of writing, the KuCoin Token (KCS), which is native to the KuCoin trading platform, was trading at $9.94, up 1.40 percent in the previous 24 hours and 8.68 percent year to date. This growth is somewhat surprising, given the tremendous Fear, Uncertainty, and Doubt (FUD) circulated by a now-deleted Twitter account, Otteroooo, who claims to have insider information about the trading platforms impending insolvency.　　While CEO Johnny Lyu quickly allayed all anxieties and disputed rumors that retail investors did not panic, selling is one of the fallacies that has supported the green ticks that are currently visible in the ecosystem.　　Retail Investors Remain Wary　　While the enormous collapse that has swept the digital currency ecosystem in recent weeks has been more damaging to corporate investors, most ordinary investors have also suffered severely.　　With the business displaying signs of

2022-07-25Deep Dive

Blockchain infrastructure firm Chain buys MDT for $100 million

Chain revealed on Saturday that the $100 million transaction will provide the firm with assets such as MDT, the cash-back app RewardMe, and the financial data standard MeFi.　　Chain provides developers with cloud services for developing blockchain-based applications. According to The Block, the deals distinctive feature is token conversion, in which MDT will become Chains native Token XCN.　　The deal was managed by the firms internal M&A team, as well as advisers from Tanner De Witt and Rooney Nimmo, it noted.　　“With this acquisition, the Measurable Data Token (MDT) will be burned and swapped for the XCN token,” according to a blog post. “MDT token holders will benefit from the swap and should receive a $0.08 MDT token value for the transfer.”　　When discussing the procedure, Chain CEO Deepak Thapliyal said it was “complex and involves a lot of counter-party cooperation.”　　He continued, “To support the swap for off-chain tokens, we will require the assistance of exchanges. Because we are both predominantly ERC20 tokens, the process will be much simpler for tokens on-chain and will be accessible via a simple smart contract.”　　XCN was recently trading on Coinbase for $0.09 per coin.　　Thapliyal, a non-fungible token (NFT) collector and investor, established Chain in 2014. He is well-known

2022-07-25Deep Dive

Metaverse Giants Join Forces to Create DAO Metaverse Alliance

Animoca Brands, a developer of games and other smartphone applications; blockchain-based game Alien Worlds; and a consumer-focused flow blockchain product intended for fun and games have all joined the Open Metaverse Alliance for Web3 consortium. Dapper Labs, Decentraland, Star Atlas, and The Sandbox are a few examples.　　OMA3 is built on a competitive Decentralized Autonomous Organization (DAO) framework, which incentivizes the entire sector to share data ownership and attract user interaction in a more transparent and objective manner.　　The DAO, a type of investor-oriented venture capital fund, promises to give innovative decentralized business models to firms. Members of the community join together and vote on governance decisions, develop flexible procedures, and allocate resources, enabling new decentralized business models for the entire team.　　“We believe in a metaverse without constraining boundaries, where individual platforms are interconnected and fully interoperable,” the official statement says. To achieve this open metaverse goal, we are announcing the formation of OMA3 and encouraging all blockchain-based metaverse enterprises to join.　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!　　iOS: t.ly/UUCj　　Android: t.ly/cfYt

2022-07-25Deep Dive

Is cryptocurrency trading an investment package? A lesson for all Nigerian traders

By: Damian Okonkwo　　The Bearish Season that befell the Crypto market in 2022 has given serious cause for all Nigerian traders who blindly jumped into cryptocurrency investment to pause and consider their decisions and understanding of cryptocurrency trading as an investment package. Many traders who invested massively in various crypto projects at the beginning of the year when Bitcoin was above 30K have seen their portfolios today depreciate by more than 60%. A lot who took to futures to long the market during the dip without proper guidance have lost virtually all their assets today.　　On a broader perspective, the generality of crypto investors across the globe who bought various crypto assets last year especially at the apex of the bull run in November hoping to make more profits have witnessed the greatest devaluation of the capitals as prices continuously fell since then till this point.　　Still, on this record, Tesla was reported to have sold some of its Bitcoin holdings purchased at higher prices last year at a significant loss below 30K in 2022. This means the crypto investment by the renowned world first-class company last year brought them some losses in 2022.　　Standing on this background, many observers have paused to ask:

2022-07-25Deep Dive

Coinbase's 'Nano' Bitcoin Futures Soar Despite Declining Volume

Coinbases “nano” bitcoin futures product set three consecutive records in the last week, despite the fact that its spot trading volume fell from $200 billion in May 2021 to $59 billion in July.　　In June, the micro bitcoin futures product was introduced.　　According to The Block, the cash-settled futures contract represents one-hundredth of a bitcoin and is traded on numerous retail exchanges, including Wedbush, EdgeClear, and NinjaTrader.　　“It takes less upfront money than traditional futures products and presents a real prospect for major expansion of retail participation in the US regulated crypto futures markets,” said Boris Ilyesky, CEO of Coinbase Derivatives Exchange, at the products introduction.　　Following many days of growth, the national volume of nano futures reached 217,045 on July 19. However, according to Bloomberg data, contract volumes plummeted to 117,493 on July 22.　　Data from June and July showed that daily volumes were less than 50,000 contracts.　　According to an email sent out by Coinbases sales staff, the crypto exchange firm has seen a “spike in activity ever since retail broker partners began marketing/ promotional activities last week.”　　Coinbase first entered the futures market this year after purchasing FairX, a Commodity Futures Trading Commission-regulated derivatives venue.　　Its competitors include organizations like FTX and CME Group, who

2022-07-25Deep Dive

Yuga Labs Threatened With Possible Class-Action Lawsuit

Last month, Yuga Labs, the $4 billion company behind popular NFT collection Bored Ape Yacht Club (BAYC), generated headlines by suing a prominent artist for trademark infringement. 　　Now, the company may find itself on the other side of the courtroom.　　Law firm Scott+Scott is currently organizing a class-action suit against Yuga Labs, according to an announcement from the firm late this week. The lawsuit will allege that Yuga falsely promoted Bored Ape NFTs and ApeCoin, the collections native Ethereum token, as securities with guaranteed returns but which in reality plummeted in value over the last three months.　　The cases plaintiffs have not yet filed an official complaint in a federal court. Scott+Scott is still in the preliminary stage of seeking plaintiffs who suffered losses in association with the purchase of Yuga-backed NFTs and tokens from April to June. The firm did not immediately respond to a request for comment on this story.　　Key to the suit‘s success, once filed, will be the court’s determination as to whether non-fungible tokens are securities, similar to a share in a company that could appreciate in value. If a court finds the BAYC NFTs to be securities, then Yuga Labs would have failed to make the necessary

2022-07-25Deep Dive

Who is buying crypto? — Regional Market Overview: Asia vs Europe and the U.S.

Understanding the global market demands seeing beyond daily and weekly closes. The Month-over-Month (MoM) price change is one statistic that provides a solid picture of the markets overall health. This measure displays the 30-day change in regional pricing set during US, European, and Asian business hours. These regional prices are typically calculated by adding the cumulative sum of each regions price changes over a 30-day period.　　When the MoM price change for Bitcoin is examined from October 2021 to July 2022, some interesting trends emerge.　　A trend began in Asia around the beginning of May 2022, indicating the regions increasingly favorable sentiment about Bitcoin. The pattern in the graph above, shown in the black square, reveals that Asian investors have made the most money in the cryptocurrency business.　　The figure above plainly illustrates that Asian investors have dominated the crypto market over the last two years, and that the majority of the sectors smart money appears to be coming from Asia. Asian investors have been able to sell the early 2021 high and then buy the summer bottom of 2021, as well as sell the initial pump of the summer lows.　　When Bitcoin fell near $40,000 in late summer last year, Asian investors were

2022-07-25Deep Dive

Finland Sells 1,889 Seized Bitcoins for $47 Million — Proceeds Going to Ukraine

Finland Sells Bitcoin Seized From Narcotic Offenses　　Finnish Customs (aka Tulli), the customs service of the government of Finland, announced Thursday that it has sold “legally forfeited” bitcoins.　　“During the summer, Finnish Customs has realized its cryptocurrencies that had been legally forfeited to the state,” the announcement details, elaborating:　　The realization concerned 1,889.1 bitcoins. The state gained about 46.5 million euros in total in proceeds from their sale.　　The customs service explained that the bitcoins were seized “in connection with investigations into offenses related to narcotics and doping substances.”　　The coins “were sold by the two cryptocurrency brokers selected by Customs through competitive negotiated procedure in late spring,” the announcement continues.　　Finnish Customs further revealed that about 90 bitcoins still remained in its possession “awaiting a valid judgment of forfeiture.” At the time of writing, bitcoin is trading at $22,874, down 10% over the last seven days but up 14.4% in the past 30 days.　　Tulli added that it has also seized other cryptocurrencies. However, since the investigation into these cases is ongoing, “the currencies or their amounts cannot be revealed in detail,” Finnish Customs explained, adding they are worth “hundreds of thousands of euros at most.”　　Tulli Finance Director Pekka Pylkkänen told Finnish news agency STT that

2022-07-24Deep Dive

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