Značka: cryptocurrency exchange

KuCoin CEO slams insolvency rumors citing “no plan to halt withdrawal”

Crypto exchange KuCoin found itself at the center of discussion when a sub-community of Crypto Twitter started warning investors about an incoming ban on funds withdrawal. KuCoin CEO, Johnny Lyu, was however quick to dismiss the unvetted rumors before they picked up steam.Prominent crypto figures on Twitter, including trader @KongBTC and blockchain investigator @otteroooo, requested their followers to withdraw all of their funds from the KuCoin while claiming that the exchange may soon stop all users from withdrawing funds.WITHDRAW FROM KUCOIN RIGHT NOWNot a drillno time for threadlike and retweet to spread the messageotter hardly wrong in such matters— otteroooo (@otteroooo) July 2, 2022Rumors linked KuCoin’s intent to stop withdrawals with Terra’s (LUNA) and 3AC collapse, which according to the warnings, led to “immense suffer” for the exchange owing to high exposure to the fallen tokens.Be aware of FUDs! Not sure who’s spreading these sheer rumors, 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.— Johnny_KuCoin (@lyu_johnny) July 2, 2022

While dismissing the supposed rumors through the above tweet, Lyu highlighted the company’s strong position by disclosing a recent $150 million funding, which placed the company’s valuation at $10 billion in May 2022. He also pointed out that the company is currently hiring for multiple positions, requesting investors to make their own judgment amid the ongoing FUD — fear, uncertainty and doubt:“No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.”Further distancing KuCoin away from the insolvency rumors, Lyu confirmed to share the company’s 2022 H1 review report with detailed information about their operations. Finally, he sent out a warning to the people accusing KuCoin of shutting down services and creating panic among investors:“For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions. Don’t FUD, BUIDL.”Related: Tether CTO refutes stablecoin FUD as short-sellers circleTether chief technology officer Paolo Ardoino recently revealed that the stablecoin Tether (USDT) was subject to a “coordinated attack” by hedge funds looking to short-sell the United States dollar-pegged crypto asset.1/I have been open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse.It really seemed from the beginning a coordinated attack, with a new wave of FUD, troll armies, clowns etc. https://t.co/hhcsgHV1Ow— Paolo Ardoino (@paoloardoino) June 27, 2022

Ardoino said that Tether is collaborating with regulators and increased transparency efforts, as well as noting its recent commitment to phase out its commercial paper exposure.

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Voyager Digital freezes trading, deposits, withdrawals and rewards, blames 3AC default

Cryptocurrency exchange Voyager Digital announced Friday that it was temporarily suspending trading, deposits, withdrawals and loyalty rewards. “The failure of a borrower, Three Arrows Capital, to repay a substantial loan from us makes this the right path forward,” Voyager Digital CEO Stephen Ehrlich said on Twitter soon after the service suspension went into effect. “This decision, while far from optimal, will give us time to work to strengthen our balance sheet, a necessary condition to protect assets and preserve the future of the Voyager platform we have built together,” Ehrlich continued. A statement issued by the company said it has engaged Moelis & Co. and the Consello Group as financial advisers, and Kirkland & Ellis as legal advisers.Voyagers, today we made the difficult decision to temporarily suspend trading, deposits, withdrawals, and loyalty rewards. Read more at: https://t.co/bpGFqQtjAs— Stephen Ehrlich (@Ehrls15) July 1, 2022Voyager Digital issued a notice of default to Three Arrows Capital, also known as 3AC, on Wednesday after the Singaporean crypto hedge fund failed to repay a 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loan. Voyager gave assurances at the time that it would continue operations. The exchange explained that it had accessed $75 million of a revolving loan of 15,000 BTC it had taken out from Alameda Research to cover its exposure to the loans 3AC was unable to repay. It also said it had $137 million in cash and crypto on hand.Related: Singapore reprimands 3AC for providing false informationA court in the British Virgin Islands reportedly ordered the liquidation of 3AC shortly after Voyager Digital filed its notice of default. Reports emerged June 16 that 3AC had failed to meet margin calls that week. Voyager Digital did not indicate when it would restore trading, deposit, withdrawal and loyalty reward services. Its announcement came in the afternoon before a long weekend in the United States. Monday is U.S. Independence Day, which is a federal holiday.

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BlockFi announces deal with FTX US, including 'option to acquire' for $240M

FTX US has inked a deal with BlockFi that will give the crypto derivatives exchange the option to purchase the lending firm.In a Friday Twitter thread, BlockFi CEO Zac Prince said the crypto lending firm had signed agreements with FTX US for a $400-million revolving credit facility as well as the option to acquire BlockFi “at a variable price of up to $240 million based on performance triggers.” According to the CEO, the deal was reached as part of an effort “to bolster liquidity and protect client funds” at BlockFi.The agreements are still subject to shareholder approval. Prince said volatility in the crypto market, “particularly market events related to Celsius and 3AC,” which had a negative impact on BlockFi, led to the decision. The crypto lending platform suffered roughly $80 million in losses the week following Celsius pausing withdrawals, and, after considering “​​various unattractive options” for recovery, partnered with FTX US.“All of our products and services — including funding and withdrawals, our trading platform, credit card and global institutional services — continue to operate normally, with incremental capital strength behind them,” said Prince.Yesterday we signed definitive agreements, subject to shareholder approval, with FTX US for:1. A $400M revolving credit facility which is subordinate to all client funds, and2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers.— Zac Prince (@BlockFiZac) July 1, 2022In a Friday blog post, BlockFi criticized reports from Thursday claiming FTX intended to purchase the firm for $25 million. According to the CEO, the $400 million credit facility, $240 million acquisition price and “other potential consideration” totaled $680 million — for a company that had a $5 billion valuation in June 2021. Prince hinted the report was due to “an inappropriately leaked call” and “purely personal conjecture by a single party.”Related: FTX US acquires Embed Financial subsidiary for stock trading platformBlockFi was one of the first firms to liquidate some of Three Arrows Capital’s positions in June after the company reportedly failed to meet margin calls from its lenders. Amid the market downturn and extreme price volatility, the crypto lending firm announced that it would be laying off 20% of its 850-strong staff, retaining roughly 600 people. It’s unclear if a FTX US acquisition would change this decision.

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June roundup: Who's hiring and who's firing in the crypto space

Amid the recent volatility in the crypto market affecting investments and stock prices, many firms made significant staff cuts in the last month while others continued hiring.In June, major crypto exchange Gemini was among the first to reportedly cut 10% of its employees amid the bear market, saying conditions were “likely to persist for some time.” Coinbase and Crypto.com followed, announcing plans to reduce staff by 18% and 5%, respectively. Coinbase CEO Brian Armstrong cited the so-called crypto winter as part of the reason for the cuts, but also stated the firm had been growing “too quickly.”Market conditions largely have not changed following many decisions to downsize, and other firms have been forced to make cuts. Crypto lending firm BlockFi announced it would be reducing staff by roughly 20% on June 13, and Cointelegraph reported on Thursday that FTX was in the process of finalizing a deal to purchase the platform’s remaining assets for $25 million. BlockFi CEO Zac Prince denied reports of the sale.Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M. I encourage everyone to trust only details that you hear directly from @BlockFi. We will share more w you as soon as we can.— Zac Prince (@BlockFiZac) June 30, 2022Austrian crypto and stock trading platform Bitpanda announced on June 24 a mass layoff as it aims to “get out of it financially healthy” amid the current bear market, bringing the company to a “​​size of about 730 people.” At the time of publication, the crypto firm has no current job openings on its website.However, many companies in the crypto space are continuing to operate as normal, seemingly prepared to weather the storm — at least one is even picking up the slack. Cointelegraph reported that the U.S. Financial Industry Regulatory Authority was open to hiring terminated employees from crypto firms in an effort to “bulk up” its capabilities. Related: How to start a career in crypto? A beginner’s guide for 2022Globally, Binance and Ripple offered thousands of jobs to replace the ones that were recently dissolved from major crypto exchanges and firms. Kraken also stood out as one of the major cryptocurrency exchanges announcing plans to continue hiring for more than 500 roles in various departments amid the market downturn. Sergey Vasylchuk, CEO of Ukraine-based decentralized staking provider Everstake, announced on June 15 that the firm was “not firing anybody.”According to data gathered by blockchain jobs site Crypto Jobs List, companies have listed more than 3,000 jobs related to the crypto space in the United States in the last seven days — roughly 37% of all jobs posted in the last 30 days. The United Kingdom and India similarly saw a large number of crypto jobs advertised in the last seven days — 562 and 183, respectively — suggesting the industry still has room for staff.“Kraken and Binance have shown that they plan to stay around for a long time by looking to grow their headcount during a bear market,” a spokesperson for Crypto Jobs List told Cointelegraph. “The market downturn has meant that individuals who don’t plan to stick around for long are deterred, and only serious candidates that are interested in a long-term career are left to apply, and hiring managers recognise this.”It was not easy saying no to Super bowl ads, stadium naming rights, large sponsor deals a few months ago, but we did.Today, we are hiring for 2000 open positions for #Binance. pic.twitter.com/n24nrUik8O— CZ Binance (@cz_binance) June 15, 2022

At the time of publication, the price of Bitcoin (BTC) is under $20,000, having fallen more than 37% in the last 30 days according to data from Cointelegraph Markets Pro.

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Self-custody is key during extreme market conditions: Here's what experts say

The ongoing crisis of cryptocurrency lending and the associated crypto market decline once again confirms the importance of self-custody or the “true ownership” of crypto by its holder, according to several industry experts.In June, the cryptocurrency market capitalization plummeted below the $1 trillion mark, with Bitcoin (BTC) nearing its worst monthly losses since 2011. It remains to be seen whether crypto lending would survive the current crypto winter. Still, several industry executives agree that investors can protect their assets forever by simply moving them to self-custodial or noncustodial wallets.It’s crucial to remember that crypto financial services providers like Celsius or Babel are centralized finance (CeFi) platforms, as opposed to decentralized finance (DeFi) applications, according to Yves Longchamp, head of research at the Swiss crypto bank Seba.“Based on this evidence, CeFi platforms need to be better regulated with a focus on risk management. It is difficult to regulate DeFi as you cannot put a smart contract in jail, or simply close a DeFi application,” Longchamp said in a statement to Cointelegraph on Wednesday.One way to regulate the overall crypto market is to regulate the crypto user in the first place by providing education and investor protection tools along with reliable products from an independent source, the executive said, adding:“In the spirit of blockchain, self-administration is key: crypto holders should own their coins in non-custodial wallets. If a user is to make smart decisions they need to be well-informed on the risks they are undertaking.”Longchamp also argued that algorithmic stablecoins like TerraUSD (UST) are “unstable” and “should be avoided.” CeFi should focus on transparent asset-backed stablecoins, he said.According to Brian Norton, chief operating officer at MyEtherWallet, crypto investors now have enough tools to realize that they do not have to rely exclusively on CeFi to make trades and mitigate risks.Norton noted that crypto winters provide time and opportunity for people to learn how self-custody is done, adding:“If you are relying exclusively on centralized platforms, even when the yields are great, you’re still giving up a good deal of control over your digital assets. […] Self-custody is what crypto was built for, and what we are seeing right now is not unusual.”Crypto self-custody is about letting consumers fully control their keys and the fate of their crypto, according to Adam Lowe, chief product and innovation officer at the Arculus crypto wallet.Related: Noncustodial Bitcoin wallets unbannable, says exec behind Trezor wallets“Self-sovereignty supports balance and self-regulation, and is beneficial to the entire digital asset ecosystem,” Lowe said in a statement to Cointelegraph.

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Reporting ‘limited progress,’ FATF urges countries to introduce legislation for travel rule

The Financial Action Task Force (FATF) reported that 11 out of 98 responding jurisdictions have started enforcing its standards on Combating the Financing of Terrorism, or CFT, and Anti-Money Laundering, or AML.In an update released Thursday on the “Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers,” the FATF reported the “vast majority” of jurisdictions assessed by the organization’s Global Network since June 2021 “still require major or moderate improvement” in AML/CFT compliance in accordance with the travel rule. According to the FATF, countries moving towards implementing these requirements made “limited progress” over the last year, with 29 out of 98 responding jurisdictions reporting passing legislation related to the travel rule, and 11 starting enforcement.“While around a quarter of responding jurisdictions are now in the process of passing the relevant legislation, around one-third (36 out of 98) have not yet started introducing the Travel Rule,” said the FATF. “This gap leaves VAs and VASPs vulnerable to misuse, and demonstrates the urgent need for jurisdictions to accelerate implementation and enforcement.”A new FATF report on virtual assets finds only 29 out of 98 jurisdictions have passed the FATF ‘travel rule’ to ensure crypto firms verify who their customers are. FATF members should lead by example & introduce relevant legislation ASAP. See the report➡️https://t.co/PWbaOMtNfJ pic.twitter.com/hHpALXiIJv— FATF (@FATFNews) June 30, 2022The organization added that companies in the private sector had made progress in introducing solutions to support compliance with the travel rule and “taking early steps to ensure interoperability with other solutions.” However, the FATF hinted at the necessity of implementing these solutions quickly, given the “significant threat of ransomware actors misusing VAs to facilitate payments” and funneling illicit funds through Virtual Asset Service Providers, also known as VASPs.“Countries that have not introduced Travel Rule legislation should do so as soon as possible, and FATF jurisdictions should lead by example by promoting implementation, and by sharing experiences and good practices […] Rapid implementation by jurisdictions will incentivize progress further.”Related: President of Panama shoots down crypto bill citing FATF guidelinesAmong other developments since 2021 included a rise in the growth of decentralized finance, or DeFi, and nonfungible projects, which the FATF labeled as a “challenging area for implementation” of the travel rule. The organization cited a Chainalysis report released in February that “suggests that threats from criminal misuse continue” with illicit transactions in DeFi, and reached similar conclusions for NFTs potentially being used for “money laundering and wash trading.”Under FATF guidelines, VASPs operating within certain jurisdictions need to be licensed or registered. The organization reported in an April update that roughly half of assessed jurisdictions in 120 countries had “adequate laws and regulatory structures in place” to assess risks and verify beneficial owners of companies, urging them to prioritize identifying and reporting information on cryptocurrency transactions.

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Coinbase seeking aggressive European expansion amid crypto winter

Coinbase is expanding its operations into various countries in Europe amid a “crypto winter.” Despite laying off numerous employees and rescinding job offers, Coinbase’s vice president Nana Murugesan revealed intentions to register in Italy, Spain, France and the Netherlands.In Switzerland, the United States-based cryptocurrency exchange has already hired its first employees, and it is already licensed to trade cryptocurrencies in the United Kingdom, Ireland and Germany.In an interview on June 29, Murugesan stated that the firm is now looking to expand into Europe. Furthermore, amid the cryptocurrency market slump, the company is also open to acquisitions in the region.He feels that it’s the ideal moment to expand into other countries because many crypto-focused businesses are having cash shortages and bankruptcy risks. The crypto market crash has wiped out almost $2 trillion from the overall market value. Currently, the market capitalization is approximately $900 billion, owing to the liquidity crisis, which has forced Three Arrows Capital and Celsius Network to almost shut down. He stated that:“When we entered U.K. and Europe, this was actually during the last big bear market in 2015-2016.”Cointelegraph reached out to Coinbase for comment but has not received a reply as of press time.While Coinbase is the most well-known cryptocurrency exchange in the United States, it faces fierce competition from newer entrants like Binance, FTX, and Crypto.com. When Binance’s U.S. affiliate announced that it would no longer charge fees for Bitcoin trading, Coinbase’s shares dropped.Coinbase is working to keep up with its competitors, which are gaining a lot of popularity in other areas of the world. Both Binance and FTX received licenses in the Middle East. In addition, Binance has obtained licensing in France and Italy and is seeking permissions in additional European nations.Related: Crypto exchange Binance seeks critical licenses in Philippines, CEO saysWhile the worldwide technology industry is experiencing layoffs, Coinbase has not been immune. The crisis compelled the firm to reduce almost 18% of its global personnel in June, affecting its personnel in the UK and Ireland as well.

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'Can't stop, won't stop' — Bitcoin hodlers buy the dip at $20K BTC

Everyone expects another Bitcoin (BTC) capitulation event, but data suggests that mass buying has already started.In a Twitter thread on June 29, Checkmate, lead on-chain analyst at data firm Glassnode, drew attention to who in Bitcoin is really stacking sats.Shrimp or whale, Bitcoin hodlers are stacking satsBitcoin selling has made the headlines for weeks, and has even begun to include long-term holders (LTHs) — those who have been guarding their coins for 155 days or more.Speculators are not taking the blame for current BTC price weakness, but contrary to popular opinion, many market participants are in fact adding to their BTC allocations.Dissecting Glassnode data, Checkmate revealed that the smallest and largest players are both in buy-mode at around $20,000.Spitting the hodler base into four sections: “shrimps,” “crabs (otherwise known as classic hodlers),” “sharks” and whales, the figures make for surprising reading.Both shrimps and crabs, the smallest retail investors with 10 BTC or less in their wallets, are not only stacking, but doing so more intensely than at any time since the first time that BTC/USD hit $20,000 in 2017.“Can’t stop and won’t stop,” Checkmate wrote describing the accumulation action. “Shrimp are adding to the $BTC balance at the greatest rate since the 2017 ATH. Same price, different trend direction. I do not underestimate the smarts not conviction of the little guy in Bitcoin.”At the other end of the spectrum, whales are similarly removing coins from exchanges to private wallets at a pace Checkmate calls “full HAM.”Whales with 1k+ $BTC are going HAM.Alongside the Shrimp and Crabs, thsi looks like the perfect mid-wit meme.Shrimp = stackersMiddle wealth = scared and margin calledWhales = stackers pic.twitter.com/zyakmicxGG— _Checkɱate ⚡ (@_Checkmatey_) June 29, 2022The main exception lies in the middle: the sharks or institutional, high net worth entities with between 10 and 1,000 BTC to their name.While this makes up a large swathe of the network, hodlers have borne the brunt of macro changes, Checkmate claims, either getting liquidated on positions or seeing their wealth erased in DeFi bets.Even here, however, the overall trend is up.“Balances are increasing, but nothing special. Given the TradFi and crypto shitshow — > I suspect these guys are heavily affected by deleveraging, and margin calls,” he wrote.Analyst $25 billion exchange stablecoin reservesEarlier this week, Glassnode likewise showed that 30-day cumulative BTC outflows from exchanges had reached a new peak.Related: 80,000 Bitcoin millionaires wiped out in the great crypto crash of 2022For Ki Young Ju, CEO of fellow analytics firm CryptoQuant, signs that capital is waiting on the sidelines to deploy back into crypto are also clear.Ki eyed the mere 11% reduction in the combined stablecoin market cap compared to Bitcoin’s 70% from all-time highs.”Stablecoins sitting in exchanges are now worth half of Bitcoin reserve,” he added on June 30. “We have $25B loaded bullets which can make crypto asset prices go up. The question is when, not how.”Stablecoins sitting in exchanges are now worth half of #Bitcoin reserve.We have $25B loaded bullets which can make crypto asset prices go up. The question is when, not how. pic.twitter.com/SQ0ZvBnAMt— Ki Young Ju (@ki_young_ju) June 30, 2022

The situation is complicated by the fact that the stablecoin market cap ratio on exchanges has stayed practically constant for two years, while the market cap itself has ballooned in that period.The Bitcoin exchange supply ratio meanwhile has been much more volatile.Bitcoin exchange supply ratio v.s BTC/USD chart. Source: CryptoQuantThe 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.

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Roger Ver denies CoinFLEX CEO's claims he owes firm $47M USDC

Roger Ver, an early Bitcoin investor and Bitcoin Cash proponent, has pushed against claims from crypto investment platform CoinFLEX regarding an alleged $47-million debt.In a Tuesday tweet, Ver — not mentioning CoinFLEX by name — said he had not “defaulted on a debt to a counter-party,” and alleged the crypto firm owed him “a substantial sum of money.” The denial followed rumors on social media that the BCH proponent was involved in the platform halting withdrawals due to “a high-networth client who has holdings in many large crypto firms” not covering their debts. CoinFLEX CEO Mark Lamb took to Twitter shortly after the statement to claim the company had a written contract with Ver “obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly.” According to Lamb, CoinFLEX served Ver with a notice of default and was “speaking to him on calls frequently about this situation with the aim of resolving,” claiming the firm did not owe him anything.“It is unfortunate that Roger Ver needs to resort to such tactics in order to deflect from his liabilities and responsibilities,” said the CoinFLEX CEO.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. He has been in default of this agreement and we have served a notice of default.— Mark Lamb (@MarkDavidLamb) June 28, 2022Related: Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvencyCointelegraph reported on Tuesday that a CoinFLEX account — held by a “high-integrity person of significant means” — incurred $47 million in losses after being allowed to reach negative equity without being liquidated. The platform planned to fix its liquidity shortage by issuing a new token, Recovery Value USD (rvUSD), starting June 28, with user withdrawals expected to resume on June 30.The price of CoinFLEX’s native token (FLEX) has fallen more than 84% in the last 30 days, dropping from $1.19 to $0.80 following Lamb’s and Ver’s statements on Twitter.Cointelegraph reached out to Roger Ver and Mark Lamb, but did not receive a response at the time of publication. This story may be updated.

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Russian Duma passes bill to remove VAT, lower income tax rates on digital asset sales

The State Duma, the lower house of the Russian legislature, has passed a bill on the taxation of digital assets that exempts their sale from value-added tax (VAT) in the Russian Federation. Some other services of digital asset exchanges will also be exempted, according to state-run news service RIA Novosti. In addition, the bill established income tax rates of 13% for Russian exchanges on the first 5 million rubles (currently about U$93,000) of the taxable base annually, 15% on amounts above that limit and 15% across the board for foreign exchange operators. The current tax rate for companies is 20%. The taxation of digital assets under the bill is analogous to securities taxes, RIA Novosti reports. The government noted in the bill that a separate tax procedure for digital assets is key to the creation of an effective and competitive digital economy. Related: Bank of Russia backs cross-border crypto payments vs. domestic tradeRussia has tempered its skeptical stance on cryptocurrency as the country has increasingly felt the pressure of Western economic sanctions stemming from its invasion of Ukraine. Major Russian banks have been blocked from the SWIFT system and G7 countries this week banned the purchase of newly mined or refined Russian gold. Those moves, along with a host of other sanctions, led to Russia’s reported default on foreign debt servicing Monday. Russia’s Sber bank is preparing to launch a stablecoin, and Russian Central Bank first deputy chair Olga Skorobogatova stated in an interview dated on Thursday that trials of a digital ruble will be moved up from 2024 to April 2023. A pilot project involving 12 Russian banks is underway. “I think all self-respecting states will have a national digital currency within three years. […] We should be ready as soon as possible. Plus, this will settle the issue of being blocked from SWIFT, because this integration will make SWIFT unnecessary,” Skorobogatova said.

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Bitcoin’s bottom might not be in, but miners say it ‘has always made gains over any 4-year period’

Your favorite trader is saying Bitcoin (BTC) bottomed. At the same time, the top on-chain indicators and analysts are citing the current price range as a “generational buy” opportunity. Meanwhile, various crypto and finance media recently reported that Bitcoin miners sending a mass of coins to exchanges are a sign that $17,600 was the capitulation move that pins the market bottom. There’s so much assurity from various anon and doxed analysts on Crypto Twitter, yet Bitcoin price is still in a clear downtrend, and the metrics don’t fully reflect that traders are buying every dip. A critical component of BTC price that many investors often overlook is the condition and sentiment of Bitcoin miners, which is exactly why Cointelegraph had a chat with Rich Ferolo of Blockware Solutions and Will Szamosszegi of Sazmining Inc. to gain clarity on what’s happening in the mining industry and how this might impact market sentiment going forward. Cointelegraph: Is the bottom in for Bitcoin? The price touched $17,600 nearly two weeks ago and it’s starting to feel like the fund-driven capitulation armageddon might be over. Thoughts? Will Szamosszegi: It’s impossible to say whether or not Bitcoin has hit a bottom. In general, I recommend a dollar-cost-averaging strategy to people: Just buy however much Bitcoin you feel comfortable with on a consistent schedule. We’ve seen drawdowns even bigger than this before — such as 93.7% in its early days and 83.4% in 2018. Bitcoin has always made gains over any four-year period in its history.CT: Currently, Bitcoin is trading below the realized price and below miners’ cost of production. The price also dipped below the previous all-time high and the hash rate is dropping. Typically on-chain analysts pinpoint these metrics hitting extreme lows as a generational purchasing opportunity, but is it? Rich Ferolo: Blockware has done a lot of research on this and we’ve calculated the breakeven price from machines as far back as the s9 from 2016, at $.07 per kilowatt, the breakeven is $38,000 for a s9. You’re going to see older machines coming off the network eventually. For the s17s, at $.07 cents per kilowatt, BTC needs to be at around $18,000. Newish machines are more efficient and while difficulty and the hash rate adjustment are trending down for current generation machines, anything above 90 terahashes (TH/s) can make it. Anything below 34 watts per Terahash is inefficient. One factor to consider is that the value of machines is going down. Even if BTC price starts to go up and there’s a symbiotic relationship between price and the macro factors impacting Bitcoin price and prices throughout the wider-crypto market.Machines are hard assets and the big aspect of mining is the machine. Bitmain and MicroBT adjust prices as BTC price goes up. This is a hard asset that, in a way, earns yield on a daily basis, the same way that BTC does. If you’re in the long game, you don’t care about the current price of BTC. Just because the BTC price goes down doesn’t mean all the miners will go down also. It’s more about survival of the fittest. You need to be aware of the macros, but it’s not as bad as one might think. There are different perspectives and situations depending on what size outfit you’re running. Big public companies have a lot of operational factors to consider, but their operational costs (OPEX) inflate their overall cost even if they get $.05 per kilowatt. Their model is different from the analytics of the average miner outside of the public user. CT: What is the state of the BTC mining industry right now? There are rumors that leveraged miners could go under, inefficient miners are turning off and equipment is being sold 50% to 65% lower than 2020 to 2021 prices. What’s happening behind the scenes and how do you see this impacting the industry for the next six months to a year? RF: I agree with all of your observations. We’re at a price consolidation point currently and the market is cleaning up the amount of mining debt that exists. If you can hang on and keep mining, it might keep the hash rate and difficulty at bay. Blockworks believes that there is a severe lack of infrastructure in the space. To have infrastructure, you have to have an incredible amount of CAPEX to get going. There’s been and still is a lack of infrastructure. Regardless of the machines that are there, there’s not a lot of space for hosting. From the broader standpoint, you’re going to see a lot of capitulation, insolvency and excess machines. I know a lot of the big players are putting a pause on funding for miners. That’s a plus for people wanting to get in the space, but we predicted a 60% hash rate increase in 2022 when things were booming. And, as the s19XPs come into light, the hashrate will go up. WS: Many veterans in this space have grown accustomed to these cycles in the Bitcoin ecosystem. Historically, you see the hashrate decline following the price doing the same. In drawdowns like this one, newer miners typically wash out, while the network fortifies. Over the next six months, mining will become more competitive, as bigger players may consolidate and buy miners at a discount.CT: Exactly why is now a good or bad time to start mining? Are there particular on-chain metrics or profitability metrics that miners are looking at or is it just a no-brainer that Bitcoin’s current pricing makes mining attractive? Let’s say I have $1 million cash, is it a good time to set up an operation and start mining? What about $300,000 to $100,000? At the $40,000 to $10,000 range, why might it not be a good time to set up at home or use a hosted mining service? RF: Regardless of the size of the investment, I don’t think any of those values frankly would warrant you wanting to set up infrastructure at scale. A million bucks worth of machines at $5,000 per machine will get you 200 machines, almost a 0.6 megawatts worth. 1 megawatt of power is equal to 300 machines. Housing 200 machines is way different than housing 2 to 10 machines. To diversify $1 million to $300,000, or 60 machines, that’s where you want to start looking at hosting, assuming you’re all in on mining. I treat mining as a hedge, so I’d take 60% of the capital and buy machines and 40% buy spot BTC, or 60% CAPEX for machines, 20% for OPEX and 20% for spot BTC. This is a broader place to think about hosting. $100,000 gets you 20 machines, so you could apply the same strategy. Most residential homes can’t handle that much power demand. There’s a threshold of at-home mining power capacity so you’d have to consider how much power you can get to your house without shutting down the neighborhood. The $10,000 to $40,000 range is more amenable to at-home mining. If your power rate is fixed at $.10 or below you could pull it, depending on where the price is. $40,000 will get you about eight machines. That’s more doable, to be honest. It’s about 24.4 kilowatts per hour for eight machines if you start from four to five machines and test the waters. It’s almost like dollar-cost-averaging into machines and buying them if prices continue to drop.Related: Buy Bitcoin or start mining? HashWorks CEO points to ‘attractive investment yield’ in BTC miningCT: Does BTC price dropping below its all-time high for the first time ever have any significant future ramifications on the fundamentals of the asset and industry? WS: The fundamentals of BTC are unchanged, which is why I still expect BTC to evolve into a global reserve asset. The industry, on the other hand, will learn from this crash: Do not be overleveraged and do not offer yields that leave you vulnerable.RF: Great question, I think from where we’re at now, it was expected based on where people (retail) had bought in the previous cycle. Smart money expected a long bear market to happen, but what has shocked everyone is when and how fast it happened. The mysterious long-awaited blow-off top never happened. Crypto has a lot more exposure and a lot more bad press due to recent implosions and we’ll see more because the news loves bad press and it’s easier to generate. For those who believe in BTC, they’ll ignore it and it’s the opportune time to buy and invest in the space, especially once all the bad energy is cleared out. Lots of people have probably sold the bottom and won’t be back, but this is just the basic market dynamics.CT: The network’s next reward halving is approaching in 676 days. In your view, how will this alter the landscape of industrialized mining and the amount of equipment required to solve an algorithm which becomes more difficult to compute with each halving? RF: Halving events tend to induce miner capitulation. I’m surprised that the current hash rate hasn’t fallen further. We’re not seeing the sharp decrease that was expected before like 20% to 25%. This happens because older-generation machines have to unplug and the rewards don’t match the cost but the expected hash rate increase that comes with each halving means older-gen machines benefit in the short term. Miners unplug when OPEX is unfavorable and then plug back in when the time is right. WS: Miners will want to reduce their costs, as half the reward in Bitcoin may render many mining operations unprofitable (assuming a constant Bitcoin price in United States dollars). Mining equipment will continue to improve in efficiency and miners will continue to seek out the most cost-effective energy sources. Halving is one of the many genius features of the Bitcoin network because it washes out inefficiencies.Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Crypto exchange FTX is looking into acquiring Robinhood: Report

Cryptocurrency derivatives exchange FTX is reportedly eyeing a takeover of Robinhood Markets, the popular trading app that introduced millions of traders to Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE).Citing people familiar with the matter, Bloomberg reported Monday that FTX is holding internal deliberations about whether to acquire Robinhood. Although no decision has been made to pursue a takeover, FTX is said to be taking the matter seriously. Bloomberg’s contact clarified that FTX has yet to approach Robinhood with a buyout proposal and that it could still decide against pursuing a deal. Despite the onset of crypto winter, FTX has shown no signs of slowing its expansion. The exchange, headed by billionaire Sam Bankman-Fried, recently tabled a $250 million bailout offer to Bitcoin lender BlockFi. Earlier this month, FTX entered into an agreement to purchase Canadian cryptocurrency platform Bitvo for an undisclosed amount.Amid mass layoffs in the crypto exchange business, FTX confirmed earlier this month that it would not be reducing its staff. Bankman-Fried tweeted on June 6 that his exchange plans to “keep growing” for the foreseeable future. Related: Goldman Sachs downgrades Coinbase stock to ‘sell’As for Robinhood, the discount brokerage platform has lost roughly three-quarters of its value since debuting on the Nasdaq stock exchange in July 2021. The company’s share price was up 13% on Monday but is still down over 75% from its initial public offering.Since debuting at $38 a share, Robinhood’s stock price has tumbled over the past year. The stock has a market capitalization of $7.6 billion. Source: TradingView.In the first quarter of 2022, Robinhood’s net revenue declined 43% year-over-year to $299 million. Crypto-related revenue declined by 39% to $54 million over the same period. 

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