Nonfungible tokens are being used to reinvigorate postage stamp collecting in Austria and the Netherlands.
Nonfungible tokens are being used to reinvigorate postage stamp collecting in Austria and the Netherlands.
The infamous Roger Ver is back in the headlines for all the wrong reasons. Like many players in the industry, the derivatives exchange CoinFLEX recently ran into financial trouble. Surprisingly, they blamed it all on Roger Ver and the circus started. Luckily for us, Chinese journalist Colin Wu covered “the entire insider details through a source close to the situation” in his newsletter. However, as you can see, it’s an anonymous source. So, take the story we’re about to analyze with a grain of salt. The summary of the situation according to Wu: “On June 24, 2022, the exchange CoinFLEX announced that it made the decision to halt user withdraws, and the price of the platform Token FLEX subsequently plummeted, from $4.30 to less than $1.50 in four hours. At the same time, FlexUSD, the platform’s stablecoin, also began to de-peg, with prices dropping as low as $0.23.” The funny thing is that both entities were clearly in business together. On May 14th, Roger Ver tweeted, “Interest paying FlexUSD by CoinFLEX is on its way to being the default stable coin for the whole SmartBCH ecosystem if USDT & USDC don’t move quickly.” How did everything deteriorate so fast? That’s what this article’s about. Interest paying #FlexUSD by @CoinFLEXdotcom is on its way to being the default stable coin for the whole @SmartBCH ecosystem if #USDT & #USDC don’t move quickly.https://t.co/HG14Ik6U0o — Roger Ver (@rogerkver) May 14, 2022 Roger Ver Vs. CoinFLEX, The Play By Play The story starts with CoinFLEX announcing to their partners that they “opened a special account for Roger Ver.” The account’s characteristics guaranteed that Roger Ver “would not be liquidated immediately if it fell below the maintenance margin, but rather that he would be given sufficient time to make a margin call.” Nothing special here, the man is a high-net-worth individual, deals like this are a dime a dozen in high finance. As a guarantee, Roger Ver offered “a margin of BCH,” valued “at around $400.” Then, the Terra collapse happened and the whole crypto market crashed. By the time CoinFLEX ”faced a liquidity crisis,” Bitcoin Cash was worth around $120. It’s still at that price range at the time of writing. This is where things get insane. The biggest revelation of Wu’s story is at the end of this paragraph. “If that were all, CoinFLEX would have been able to cover its shortfall. However, prior to this, CoinFLEX had issued its own stablecoin, FlexUSD, like other exchanges. At this point, CoinFLEX used FlexUSD to buy a large amount of FLEX from the secondary market and opened short position to hedge the spot price. However, the counterparty to this short position was also Roger Ver!” As we’ve seen happen again and again, “when the withdrawal restriction announcement was made, CoinFLEX’s total funds began to fall in a cyclical fashion.” And all hell broke loose. BCH price chart on Coinbase | Source: BCH/USD on TradingView.com An All-Out Twitter War On June 27th, the company’s CEO Mark Lamb tweeted, “CoinFLEX made the decision to halt user withdrawals on June 23, shortly after a long-time customer of CoinFLEX went into negative equity. ” Immediately after, the rumor that Roger Ver was that “long-time customer” began circulating. Recently some rumors have been spreading that I have defaulted on a debt to a counter-party. These rumors are false. Not only do I not have a debt to this counter-party, but this counter- party owes me a substantial sum of money, and I am currently seeking the return of my funds. — Roger Ver (@rogerkver) June 28, 2022 The Bitcoin Cash leader went on the offensive and tweeted a statement obviously written by a lawyer. “Recently some rumors have been spreading that I have defaulted on a debt to a counter-party. These rumors are false. Not only do I not have a debt to this counter-party, but this counter-party owes me a substantial sum of money, and I am currently seeking the return of my funds.” How could those two statements be true? Remember that “the counterparty to this short position was also Roger Ver!” He had a long track record of previously topping up margin and meeting margin requirements in accordance with this agreement. We have been speaking to him on calls frequently about this situation with the aim of resolving it. We still would like to resolve it. — Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022 However, Mark Lamb was not having it. Even though both parties were negotiating, Lamb took to Twitter and stated, “CoinFLEX also categorically denies that we have any debts owing to him.” Plus, “Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly.” Even if CoinFLEX is right in this instance, did they have to air their dirty laundry in public? Roger Ver Vs. CoinFLEX, The Aftermath Back to Colin Wu’s newsletter: “In the end, Roger Ver’s position was completely worn out and turned into negative equity, while CoinFLEX was left with a lot of delisting FLEX. It was revealed that CoinFLEX had a real loss of $120 million, including losses from the de-peg of the stablecoin FlexUSD and the loss of withdrawals (less than $10 million) due to the collapse of the SmartBCH cross-chain bridge, which was built by CoinFLEX.” And the fact of the matter is that, even if Roger Ver’s debt caused this, CoinFLEX’s risk management team has a few questions to answer. “Roger Ver became almost the only counterparty to the exchange, and this only counterparty had the privilege of not replenishing the margin in time,” Wu concludes. It was an unfortunate sequence of events, but both parties signed those deals and both parties took to Twitter to resolve what should’ve been a private matter. Shame all around. Featured Image by Gerd Altmann from Pixabay | Charts by TradingView
Hit by the collapse of Luna and UST, as well as another round of interest rate hikes and balance sheet shrinking by the Fed, cryptocurrencies suffered a market-wide plunge in May 2022, and the market has not significantly rebounded so far. In addition, compared with their historical highs, the prices of Bitcoin and Ethereum have fallen by more than 50%. Meanwhile, other altcoins have suffered bigger falls. The entire crypto market is still going through a bearish period. That being said, will Bitcoin and Ethereum go to zero? The answer is a hard no. As the blockchain technology advances and becomes more widely adopted, a growing number of users have joined the crypto space, and the market cap of Bitcoin has even once exceeded that of Meta (formerly Facebook). Meanwhile, some conventional institutional investors are venturing into the crypto market, and Bitcoin appears on the balance sheet of an increasing number of listed companies. More and more institutions are paying close attention to the function of Bitcoin and Ethereum as hedging tools, and some countries have even adopted Bitcoin as their legal tender. According to the general trend, a growing number of individual users, companies, and governments will adopt Bitcoin. Moreover, during the past decade, Bitcoin has witnessed all sorts of attacks and smears. It has even been banned by some state regulators. Despite all that, Bitcoin has survived with great tenacity, which is sufficient proof of its ability to withstand tests and challenges. Additionally, more investors are starting to notice the value of Bitcoin. As crypto categories such as DeFi, NFT, and the metaverse boom over recent years, the crypto market has been driven to a whole new level. In today’s market, people can profit not only from direct investments but also from a growing number of crypto-based financial services. As the relevant products mature, more investors are flocking to crypto finance. Therefore, we can draw two basic conclusions: 1) The crypto market will not diminish. On the contrary, an increasing number of global users will adopt cryptos, and the user base of cryptocurrency will keep expanding; 2) The overall price trend of Bitcoin will remain flat. In other words, the price fluctuations will not be as significant as its previous records, which is to say that the BTC price would not go down by much. As such, you do not need to panic if you are holding mainstream cryptos because they are likely to become more valuable according to past market cycles. In our view, the best strategy in a bear market is to hold onto your cryptos and do nothing. Meanwhile, we also advise you to seek to expand the cash flow to ensure the source of income and buy more crypto at low prices. Although some say the best bear strategy is to hoard cryptos, a better approach is to earn more cryptos with one’s existing holding, which resembles earning interests on bank deposits. Right now, many crypto exchanges have launched products focusing on crypto finance, and we can choose a suitable product according to our own needs. What are the indicators to consider when we choose a crypto finance product? Security is the No.1 priority. In the crypto market, the significance of security cannot be overstated, and leaving deposits in an unsafe environment for small profits frequently results in huge losses. For example, some exchanges run by scammers use high returns as the bait to trick users into making crypto deposits. Users are tempted by the financial product’s promise of high returns, yet the scammers are targeting their deposits. In the crypto space, a lot of users have suffered enormous losses when trying to earn small profits. That is why we must choose a safe exchange. As we all know, many crypto exchanges have suffered security breaches, and even some of the top exchanges have lost huge amounts of Bitcoin, incurring losses in user assets. CoinEx, on the other hand, is one of the few exchanges that have never been hacked. Haipo Yang, the founder of CoinEx, once said that safety is always the most essential promise of CoinEx as well as its core advantage. As CoinEx always puts users first, the products it developed have kept users’ assets safe and secure, earning the exchange extensive user recognition. When foraying into crypto finance, we can go with CoinEx, a zero-accident exchange. With Financial Account, a product introduced by CoinEx that provides interests for deposit holders, users can receive daily returns simply by depositing their idle assets into the Account, with compound interests settled on a daily basis. In addition, such compound interests come from 70% of the revenue generated by crypto loans in margin trading, which is a stable and reliable source. Although the financial services provided by some exchanges offer high returns, there are often many strings attached. For example, many of these services require a minimum deposit period of 30 days, 60 days, or even longer. In contrast, CoinEx’s Financial Account does not require any minimum deposit period, and users can deposit/withdraw cryptos at any moment. What are the advantages of on-demand deposits/withdrawals? Cryptos are subject to significant price volatility, and a cryptocurrency can sometimes plunge by over 20% within a week. If we choose a crypto finance product with a minimum deposit period (e.g. 7 days), then once the price plummets, we will find it hard to withdraw our deposits or sell the cryptos to minimize losses. Considering the huge risks involved, the small profits generated by such financial products are apparently not worth it. With CoinEx’s Financial Account, users can deposit/withdraw cryptos anytime they’d like to, which means that they could swiftly withdraw their deposit in the event of significant market volatility while earning profits. Apart from that, Financial Account features no minimum deposit amount, and users can choose to deposit whatever they want. A crypto bear is nothing to be afraid of because it allows us to hoard cheap bargain chips. As such, when a bear comes, we should continue to expand our cash flow. While stocking up on more cryptos with rational strategies, investors also need to deposit their holdings to secure exchanges for financial management and wait for the next crypto bull.
XRP has won their right to retain their Amici status, this is a major relief to XRP holders. Judge Torres has denied SEC’s motion to revoke the amici status. Apart from that, Judge Torres has also barred attorney John E Deaton from further proceedings. According to the letter, “Amici can’t participate in the expert challenge […]
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|