Crypto Guides, Knowledge & Insights

Bitcoin 'cheap' at $20K as BTC price to wallet ratio mimics 2013

Fidelity Investments Jurrien Timmer stays upbeat on Bitcoin network strength, while another commentator flags a “compelling” risk/reward ratio at $20,000.　　Bitcoin (BTC) has not been this good value since it cost $1,130, one analyst argues as BTC offers a “compelling” risk/reward ratio.　　In a Twitter thread on July 7, Jurrien Timmer, director of global macro at asset manager Fidelity Investments, simply described $20,000 Bitcoin as “cheap.”　　Timmer: “In other words, Bitcoin is cheap”　　While fears that crypto markets could suffer further drawdowns this year remain, some believe that current Bitcoin price levels offer the kind of value for money not seen in years.　　Analyzing the BTC price versus the number of non-zero addresses — wallets with a positive balance — Timmer concluded that BTC/USD is now back at where it was at the peak of the 2013 bull market.　　At the time, BTC/USD managed to hit around $1,130 before spending several years consolidating thanks to the demise of exchange Mt. Gox.　　“I use the price per millions of non-zero addresses as an estimate for Bitcoins valuation, and the chart below shows that valuation is all the way back to 2013 levels, even though price is only back to 2020 levels,” Timmer explained.　　“In other words, Bitcoin is cheap.”　　The

2022-07-10Deep Dive

Stop Your Crypto Operations in Russia, Washington Tells Japanese Exchanges & Miners

Washington wants Japanese regulators to convince domestic crypto exchanges and miners to cut all ties with Russia, per a new report.　　The Financial Times claimed that American “diplomats” believe “several” Japanese crypto exchanges are “still running in Russia,” according to unnamed “people close to the situation.”　　The diplomats reportedly want Japanese miners to pull the plug on the crypto mining operations they are operating in the Irkutsk Oblast in Southern Siberia, according to “two people familiar with the matter.”　　Irkutsk has become a hotspot for miners both domestic and international in recent times, with activity stepping up after Chinas mining crackdown last year.　　A number of major Japanese players from a variety of sectors have invested heavily in overseas crypto mining operations – due mainly to the prohibitively high costs of mining in Japan.　　Although most Japanese operators have kept the exact location of their overseas mining operations a secret, a number of East Asian investors are known to have established mining centers in Central Asia, with some thought to be working in Siberia.　　As previously reported, back in March, both Japan‘s top financial regulator, the Financial Services Agency (FSA), and the Ministry of Finance told the country’s exchanges to suspend all transactions with sanctioned Russians

2022-07-09Deep Dive

Elon Musk Cancels Twitter Purchase Agreement

Tesla and SpaceX CEO Elon Musk has withdrawn his $44 billion offer to buy Twitter, according to a filing with the Securities and Exchange Commission.　　Musk offered to buy the social media platform in April, however his comments since have triggered ample “will he or won‘t he” speculation about his looming purchase. And today, we finally know for sure: he won’t.　　Musks lawyers alerted the firm that he will terminate the merger agreement that would have seen Musk buy out all remaining shares and fully own the platform.　　“Mr. Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the merger agreement, and is likely to suffer a company material adverse effect,” reads an SEC filing from Musks attorneys.　　Musk had previously acquired a 9.2% stake in the social media platform, where he has 100 million followers. He offered $54.20 per share to acquire the rest of the firm, and Twitters board unanimously recommended accepting the deal in June.　　However, it increasingly appeared that Musk was looking to back out of the deal. He had previously cited concerns over spam and

2022-07-09Deep Dive

Keys lost in the Vauld: Singapore crypto exchange freezes withdrawals

Crypto contagion claims another casualty. In a statement, Singapore-based crypto exchange Vauld has made the “difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.”　　In what appears to be a run on the crypto bank, the group intends to “apply to the Singapore courts for a moratorium,” as Vauld customers have tried to withdraw an “excess of a $197.7 million since 12 June 2022.”　　The decision to suspend withdrawals is a screeching U-turn. Reportedly, Vauld boasted $1 billion assets under management in May this year, while on June 16, a company email stated that business would “continue to operate as usual.” Just 18 days later, the company is exploring “potential restructuring options.”　　On June 21, CEO Darshan Bathija tweeted that Vauld had cut its team by 30% — the first sign that the company was under duress. Separately, Bathija also stressed that Three Arrows Capital (3AC) was an early investor in the company, but had exited in late 2021.　　The statement from Vauld suggests that “volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate” were reasons behind their decision to freeze customers money.　　Nonetheless, 3AC‘s demise is cited

2022-07-09Deep Dive

eToro Terminates the SPAC Agreement with FinTech Acquisition Corp. V. Business

eToro Group, a social investment network, stated on Tuesday that it had canceled its planned public listing via a merger with FinTech Acquisition Corp. V. SPAC (special purpose acquisition company).　　The closing requirements agreed upon by the two companies when the merger was proposed in March of last year, according to eToro, have not been met.　　The two companies announced their intention to merge in March 2021, but subsequent agreements and changes have failed to achieve the closing conditions within the stipulated period.　　As a result, the two companies were unable to meet the transaction deadline of June 30, prompting the abandonment of their planned merger for an IPO (IPO).　　When the two parties announced their proposal in March of last year, eToro estimated a valuation of $10.4 billion. FinTech V Chairman Betsy Cohen, on the other hand, emphasized eToros merits as a social trading firm outside of the United States, as well as its many revenue streams. In other words, the merger company was meant to generate a combined entity worth $10.4 billion, indicating a $9.6 billion implied business value for eToro.　　However, the most recent meeting between the two firms resulted in new findings. Betsy Cohen, Chairman of Fintech V, commented on the

2022-07-08Deep Dive

Huobi Subsidiary HBIT Gets US MSB License

HBIT Inc, a subsidiary of Huobi Technologies, has been granted a Money Services Business Registration License (MSB) by the United States Financial Crimes Enforcement Bureau (FinCEN).　　The trading platform is pleased with its latest step, as it has recently faced major challenges in its global operations.　　HBIT is now well-positioned to offer “conduct foreign exchange (Dealer in Foreign Exchange) and money transfer (Money Transmitter) operations throughout the United States,” adding that “in the future, Huobi Technology is expected to further provide users in the United States with safe and compliant digital asset services and consolidate the momentum of international business expansion.”　　The United States is arguably one of the countries where obtaining an operating license might be difficult.　　The fact that HBIT was able to secure the license is seen as “another progress in Huobi Technologys compliance process, creating a good compliance foundation for the company to carry out digital currency-related business in the United States in the future, so as to further achieve the strategic goals of globalization and compliance.”　　Huobi, like Binance, has recently experienced intense regulatory scrutiny, forcing it to depart important Asian markets. While Huobi no longer operates in China due to a year-old prohibition on Bitcoin and cryptocurrency activities, the

2022-07-08Deep Dive

Binance Eliminates Spot Bitcoin Trading Fees to Celebrate Fifth Anniversary

Binance, the worlds largest cryptocurrency exchange by trading volume, is celebrating its fifth anniversary by lowering some Bitcoin spot trading costs.　　The exchange stated that the fee reduction would apply to 13 pairs, including BTC/USDT, BTC/BUSD, BTC/USDC, BTC/EUR, and BTC/TRY.　　According to the exchange, the fees would be in effect indefinitely beginning July 8. The trading platform was founded in July 2017 and has since evolved to become one of the most popular sites for spot and futures trading.　　“In line with our user-first philosophy, Binance has always strived to provide the most competitive fees in the industry. At its core, Binance is an inclusive platform with accessibility in mind. Eliminating the trading fees on selected BTC spot trading pairs is another move towards that direction,” said Chanpeng Zhao, Binance Chief Executive Officer and Founder. 　　“Within the span of five years, Binance has amassed an amazing community that believes in us and supports our vision. Our growth and achievements would not have been possible without them. We hope to give back to the community by providing them with the worlds best products and services.”　　This is not the first time a Binance-affiliated firm has reduced fees. Binance.US, the trading platforms US spinoff, said last

2022-07-07Deep Dive

British GT Racing Team Introduces NFT Platform for Automobile Parts Authentication

The GT racing team funded by Lamborghini Squadra Course, Vincenzo Sospiri Racing (VSR), introduced a new non-fungible token (NFT) certification method that intends to authenticate (certify) racing car parts.　　On Tuesday, Vincenzo Sospiri Racing announced a collaboration with the corporate NFT platform, Go2NFT, to offer an official non-fungible token (NFT) certification program.　　The collaboration will begin with the two companies developing a pilot effort in order to launch the program in the near future.　　Vincenzo Sospiri Racing will create a pilot program to test Go2NFT technology for racing vehicle part authenticity and auditability.　　Once the trial is completed and satisfied, the GT racing team will build and market its NFT platform to help verify merchandise or other official products, including racing car parts, providing supercar lovers with a secure identity when investing in branded goods. The concept tries to instill trust in followers when they buy digitally branded goods.　　The creation of the NFT platform heralds the start of a significant long-term cooperation with the Lamborghini network of firms, with automobiles eventually appearing as original (unduplicated) digital products in the form of NFTs.　　The Go2NFT platform is a business platform that combines the Internet of Things, blockchain, and NFT to allow future smart cities. It is

2022-07-07Deep Dive

Bullish.com to Reduce Staff Amid Market Downturn

Bullish.com, a cryptocurrency exchange, has joined other crypto firms in laying off employees to deal with the big market drop.　　A source told The Block that less than 30 Bullish employees had been laid go. Bullish employs approximately 390 employees.　　A corporate spokeswoman, on the other hand, acknowledged that “Bullish continues to actively hire for products, engineering, and other strategic roles as we continue to expand our business strategy.”　　Bullish was founded as a subsidiary of Block.one, the software business underlying the EOSIO blockchain platform, last year. Block.one and other investors put up the first $10 billion.　　The Cayman Islands-based firm is governed by the Gibraltar Financial Services Commission. The cryptocurrency company has hired staff all across the world, including a strong presence in Hong Kong.　　Bullishs latest move follows in the footsteps of other cryptocurrency companies that have slashed staff owing to a market downturn. Coinbase, Gemini, BitMEX, OSL, and Abra have all recently reduced their workforces.　　According to The Block, crypto trading and lending firm Abra laid off a dozen employees last week. Abra CEO Bill Barhydt confirmed the layoffs to The Block, stating that the company removed 12 jobs “purely as a cost-cutting strategy,” amounting to about 5% of the overall workforce.　　According to

2022-07-07Deep Dive

KuCoin CEO Dispels FUD Speculation That Its Exchange May Stop Withdrawals

Over the weekend, Johnny Lyu, the Chief Executive Officer of KuCoin Exchange, allayed all Fears, Uncertainties, and Doubts (FUD) connected to allegations floating on Twitter that the trading platform may block withdrawals owing to the markets continued meltdown.　　Lyu stated on Twitter that there is no plan to restrict withdrawals and that, contrary to allegations that the firm is experiencing liquidity challenges, it has no exposure to crypto projects and organizations that are now struggling, such as LUNA and Three Arrows Capital (3AC), among others.　　“Be aware of FUDs! Not sure whos spreading these sheer rumours, and what their intentions are, but #KuCoin does not have any exposure to LUNA, 3AC, Babel, etc. No ”immense suffer“ from any ”coin collapse“, no plan to halt withdrawal, everything on KuCoin is operating well,” Lyu said in his short Twitter thread.　　In order to bolster his case that the exchange is doing well, the CEO presented the companys milestones as the ecosystems difficult times gain traction. Lyu claimed that the exchange has enough liquidity based on its huge valuation of $10 billion after raising $150 million in May.　　KuCoin is more active in this bear market and appears to be one of the fear exchanges after Binance

2022-07-06Deep Dive

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