Altcoins

Axie Infinity CEO Denies Rumors of Moving Millions of Dollars in AXS During Massive $600,000,000 Ronin Attack

The chief executive of blockchain gaming platform Axie Infinity is debunking reports that he moved millions of dollars in AXS as the protocol’s sidechain was hacked to the tune of $600 million. A recent report by Bloomberg details how a crypto wallet belonging to Axie Infinity CEO Trung Nguyen moved about $3 million worth of AXS […]

The post Axie Infinity CEO Denies Rumors of Moving Millions of Dollars in AXS During Massive $600,000,000 Ronin Attack appeared first on The Daily Hodl.

Altcoins Bitcoin

Crypto Futures Exchange CoinFLEX To Lay Off Employees As It Fights Legal Battle With ‘Bitcoin Jesus’

Embattled crypto derivatives exchange CoinFLEX is announcing employee layoffs amid a legal battle with ‘Bitcoin Jesus.’ In a new blog post, CoinFLEX says it is laying off a significant number of employees across the board as a means of reducing overhead costs. “We, unfortunately, had to let go of a significant number of the CoinFLEX […]

The post Crypto Futures Exchange CoinFLEX To Lay Off Employees As It Fights Legal Battle With ‘Bitcoin Jesus’ appeared first on The Daily Hodl.

Altcoins Blockchain

Tether Condemns ‘False Information,’ Denies Holding Any Chinese Commercial Paper in New Statement

Stablecoin issuer Tether wants to debunk rumors that they hold Chinese commercial paper as backing for (USDT) In a new statement by the company, Tether says that it does not hold any Chinese paper, and such “false information” is a threat to the industry. The company also notes it eventually plans on reducing its total […]

The post Tether Condemns ‘False Information,’ Denies Holding Any Chinese Commercial Paper in New Statement appeared first on The Daily Hodl.

Crypto News

The Inside Story Of The Roger Ver Vs. CoinFLEX Conflict

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

Crypto News Ethereum

Ethereum Shows Signs Of Exhaustion, But Could It Still Touch $1,700?

The crypto market has extended its bullish momentum despite recent tailwinds, Ethereum continues to lead in this recovery. The second crypto by market cap trades at $1,600 with a 35% profit in the past week. Related Reading | Crypto Market On The Mend: ApeCoin And Curve DAO Show Gains Trading firm QCP Capital shared a market update claiming the current bullish price action has been a “pleasant surprise for all”. This price action started on the back of the latest U.S. Consumer Price Index (CPI) print; a metric used to measure inflation. The CPI stands at a 40-year high which was expected to have a negative impact on the crypto market. The opposite occurred, the trading firm claims, due to market participants expecting lower inflation in the coming months. This potential decline in inflation could give some room for risk asset to continue their rally and persuade the U.S. Federal Reserve (Fed) from ruling out a 100-basis point (bps) interest rate hike. The financial institution will announce its decision on July 27. QCP Capital said: Currently, a 20% chance of 100bps is still being priced in but our view is that 75bps is the most the Fed will do. So expect another boost as 100 bps gets completely priced out. Ethereum is leading the relief because there is more clarity around the upcoming “Merge”, an event set to combine this network’s execution layer with its consensus layer. Thus, consolidating Ethereum’s migration to a Proof-of-Stake (PoS) consensus protocol. “The Merge” has been tentatively scheduled for September which has contributed to the shift in the general sentiment across the crypto market and supported this rally. The bullish price action, QCP Capital said, has been “keenly felt in the options market”. The sector saw a “rush” to purchase buy contracts (calls) for the September expiry. In other words, options traders are bullish on the potential impact that “The Merge” will have on Ethereum. Can Ethereum Extend Current Rally? Conversely, the options markets hint at potential exhaustion for Ethereum in the short term. QCP Capital records an increase in calls selling for ETH’s price and believes insolvencies announcements from other companies could operate as tailwinds for the second crypto by market cap. Part of the contagion triggered by the default of crypto hedge fund Three Arrows Capital (3AC), which failed to honor billions in debts from their counterparties, many companies have been negatively impacted. This includes Celsius, BlockFi, Voyager, and Genesis. These companies have had to halt their operations at some levels with new companies announcing that they have been affected by 3AC coming out almost every week. Yesterday, crypto exchange Zipmex suspended withdrawals, and there have been growing rumors about other companies taking similar measures. Related Reading | Solana (SOL) To Hit $166 By 2025, Despite Current Bearish Conditions QCP Capital said: While the markets have been sanguine, it might not be completely free of the credit contagion yet. We have been adding to our downside skew position and we are keeping slightly long gamma and vega (longer term options).

Crypto News Ethereum

Ethereum Prints Modest Losses, Consolidation Before Next Big Breakout?

The future of the second-largest cryptocurrency is hampered by the US dollar index’s recovery. On Thursday, the price of Ethereum (ETH) showed just slight decreases. Ethereum Consolidates On July 21, price movement in the cryptocurrency market as a whole was mostly muted as traders took a day to digest recent gains and book profits after the strongest relief bounce since early June. The Ethereum Merge has remained at the top of the list despite rumors regarding what sparked the recent spike. After a preliminary date of Sept. 19 was chosen for the mainnet Merge, the market rally accelerated. The price of Ether (ETH), which reached a high of $1,620 on July 20, retraced to a low of $1,463 in the early trading hours of July 21, according to TradingView data, and has since recovered back above support at $1,500. ethereETH/USD back around $1,500. Source: TradingView Following the initial price spike caused by the Merge news, here is what various analysts anticipate will happen as Ether’s mainnet switch to proof-of-stake draws near. Market analyst Rekt Capital posted the following chart showing the significance of Ether’s weekly finish over $1,300 and subsequent rise higher, describing the retreat on July 21 as a good development. Rekt Captial said: “Though #ETH could just continue higher to reach the upper orange region, it would be healthier for ETH to dip. Such a retest of the lower orange area would only increase probability of continuation.” With this outlook in mind, the pullback on July 21 raises the prospect of a rise to $1,700 soon. Related Reading | Ethereum Merge: How ETHBTC Could Hint At A Return Of Risk Appetite Vitalik Hints At Future Of ETH The co-founder of Ethereum detailed his plans for future developments on Thursday at the Ethereum Community Conference in France that go far beyond the network’s switch to proof of stake. The upgrade—often referred to as “the merge” since it will integrate the Ethereum mainnet with the proof-of-stake beacon chain—is actually the first in a series of modifications that are being planned. Ethereum will then go through additional improvements that Buterin refers to as the “surge,” “verge,” “purge,” and “splurge” after the merging, which he believes is extremely close because “the only thing left to do is do a merge on Ropsten [test network],” he said during the conference. Buterin mentioned a goal to strengthen the Ethereum network being the reason behind the network continuous updates. Ethereum will only be about 55% complete after the integration, which is anticipated to be finished this September. The surge is due to the addition of Ethereum sharding, a scaling solution that, according to the Ethereum Foundation, will make layer-2 blockchains even more affordable, reduce the cost of rollups or bundled transactions, and make it simpler for users to run nodes that protect the Ethereum network. Buterin added that following the spike Related reading | Ethereum Cruised Past $1500, Is There A Possibility To Retrace To $1200? Featured image from Shutterstock, chart from TradingView.com

Bitcoin Crypto News

Rumors Of MicroStrategy Selling Bitcoin Grow With Tesla’s Disclosure

Bitcoin and the crypto market have been losing momentum in the last 24 hours after experiencing a relief rally. Yesterday, the Elon Musk-led car manufacturer Tesla announced that it sold 75% of its BTC holdings to convert them into fiat currency. Related Reading | Cardano (ADA), After 35% Spike, Locks On Next Target: $0.55 This has thrown fuel on speculations about other big BTC holders unloading their assets into the market. MicroStrategy and its CEO Michael Saylor have been the target of a majority of these speculations. Over the past week, Bitcoin’s third wealthiest address identified as 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, has transferred 29,200 BTC to exchange platforms. Crypto users believe this is MicroStrategy’s BTC address. Therefore, they speculate the software company sent their BTC to crypto exchange Coinbase. Over the past week, this address transferred 132,800 BTC to this platform which is roughly the amount held by the Saylor-led company. Did Tesla Trigger A Bitcoin Selling Domino Effect? Research firm Jarvis Labs questioned the rumors claiming the address most likely belongs to a “top trader”. The wallet has been accumulating Bitcoin since January 2019. MicroStrategy and Saylor disclosed that their first BTC purchase took place in 2020. The software company is a publicly-traded company in the U.S. and must be transparent about its treasury strategy or risk facing legal consequences. Jarvis Labs highlighted the complexity of labeling BTC addresses and dismissed the rumors with the following statement: Wallet labels are incredibly complex and a sensitive topic. As they lack confirmations from the concerned party most of the time. So take such noise with a grain of salt. Relax, he has not been selling yet, even if assumed it was Saylor’s MSTR wallet. Saylor Replies To Rumours On Their Bitcoin Holdings CEO at CryptoQuant Ki Young Ju claimed the rumors about the wallet unloading their Bitcoin into the market are “FUD”. The executive said the transactions associated to address 1P5Z are part of an internal transfer. In that sense, Young Ju said the BTC might have been sent to a cold or custodian wallet potentially owned by crypto exchange Gemini. Young Ju said: For the record, “1FzW…” has closer ties to hot wallets like “1NYA…” and “bc1quq…” and these are not Coinbase or OKx. These are Gemini hot wallets.Lots of on-chain data providers mislabeled them. See this tweet for more details. Related Reading | Polkadot (DOT) Gathers Steam, Sets Sight On $8.07 Resistance Level Replying to all these rumors and speculation, Saylor tweeted with two emojis representing “diamond hands”. In the past, the executive said their plans are to hold Bitcoin “forever” dismissing any idea of dumping their BTC. 💎🙌 — Michael Saylor⚡️ (@saylor) July 21, 2022

Bitcoin Crypto News

Terraform Labs Investigation Intensifies: Seven Crypto Exchanges Linked To Collapse Raided

The South Korean cryptocurrency ecosystem is still experiencing issues because of the Terraform Labs probe. According to reports, the nation’s authorities advanced the probe on Wednesday with their most recent actions. The investigation into the fraud claims against the Terraform Labs management is still ongoing. Terraform Probe Heats Up As part of their ongoing inquiries […]