Značka: Trading

Here’s 5 altcoins to study as crypto prices drop close to a 1-year low

The pain trade has been an unwelcome sight across the cryptocurrency market since the start of 2022 and over the past 24 days Bitcoin (BTC) and the altcoin prices have drifted, leading some analysts to suggest that a bear market is at hand.Despite traders’ concern that another extended crypto winter could be starting, it times like these when investors can capitalize on great opportunities to pick up fundamentally sound cryptocurrencies at a discount.Crypto Fear & Greed Index. Source: Alternative.meIn that vein, here’s a closer look at several projects with strong fundamentals and a proven use case that could be good candidates for accumulation during the current market correction. Polygon (MATIC)The Ethereum (ETH) layer-two scaling solution Polygon (MATIC) is currently down 50.76% from its all-time high of $2.92 which was established on Dec. 27, 2021. MATIC/USDT 1-day chart. Source: TradingViewPolygon saw a tremendous amount of growth and adoption over the course of 2021 because its compatibility with Ethereum and low transaction costs made it a destination for users and protocols that were looking for a way to remain on the Ethereum network and avoid the high cost of transactions. Total MATIC wallets over time. Source: Dune AnalyticsThe network is capable of hosting all manner of decentralized applications including lending protocols like AAVE, decentralized exchanges like Uniswap or gaming and nonfungible token projects like Aavegotchi. With the capabilities and final date for the rollout of Eth2 still unknown, layer2 solutions like Polygon are likely to continue to see increased engagement as users seek lower-fee transactions. Fantom (FTM)Fantom (FTM) is a layer-one blockchain protocol that also rose in prominence over 2021 as its low fee environment and Ethereum Virtual Machine (EVM) Compatibility helped attract new users and protocols to the network. FTM/USDT 1-day chart. Source: TradingViewData from Cointelegraph Markets Pro and TradingView shows that the price of FTM is currently down 36.3% from its December highs and trading at a price of $2.15 at the time of writing. The bullish case for FTM is backed by the continued rise total value locked (TVL) on the Fantom network despite the market-wide pullback, with data from Defi Llama showing that the Fantom TVL is currently at an all-time high of $12.07 billion. Total value locked on Fantom. Source: Defi LlamaWhen compared to competing networks such as Solana (SOL) which has a TVL of $7.62 billion, Fantom holds more value and has not experienced any major network disruptions like Solana,  yet it trades at a significant discount when compared to the price of SOL. TVL of #Fantom and #Solana are nearly the same now (10.67B vs 10.31B)Buy $FTM now like buy $SOL at 23$#fantomseason #solanawinter #fantomnews pic.twitter.com/eeUop6biZJ— Fantom News (@fantomnews) January 15, 2022With the current price of SOL standing at roughly $90, the price of FTM would need to be $18.10 to have a matching market cap, suggesting that Fantom is undervalued relative to its layer-one competitors and has the potential to close that gap as 2022 progresses. Polkadot (DOT)Another token that could potentially be in a good accumulation zone is Polkadot (DOT), a sharded multi-chain protocol whose goal is to facilitate the cross-chain transfer of any data or asset types across multiple blockchain networks. Data from Cointelegraph Markets Pro and TradingView shows that the price of DOT has been on the decline since early November 2021 as the token underperformed its cohort of layer-one projects possibly due to the lack of a functioning bridge to Ethereum.DOT/USDT 1-day chart. Source: TradingViewThis all changed on Jan. 11 when Polkadot’s Moonbeam (GLMR) parachain officially launched and established the first cross-chain bridge for the Polkadot network. As of Jan. 24, Moonbeam has processed more than 1,329,000 transactions and supports more than 700 ERC-20 tokens. As other parachains officially launch on Polkadot in the months ahead, DOT has the potential to see a rise in demand and token price as users look to get involved with the Polkadot network. Polkadot ecosystem. Source: PolkaProjectCurve (CRV)When it comes to the increasing importance of the stablecoins in the crypto market, Curve DAO token has emerged as one of the most sought-after tokens by investors and protocols who have been vying for control of governance on the platform. CRV/USDT 1-day chart. Source: TradingViewAfter hitting a record high of $6.80 on Jan. 4, the price of CRV has fallen 60% and now trades at $2.76 according to data from TradingView. Even with the drop in CRV price, the ongoing ‘Curve Wars’ suggest that demand for the token is likely to rise once the current weakness in the market subsides as decentralized finance projects attempt to accumulate governance powers over the Curve ecosystem.At the time of writing, a total of 49% of the circulating supply of CRV is locked in veCRV, the voting token for the Curve protocol. Percentage of CRV tokens locked on Curve. Source: Dune AnalyticsRelated: Does a Fed digital dollar leave any room for crypto stablecoins?Frax Share (FXS)Another protocol that looks to play a larger role in the stablecoin sector is Frax Share (FXS), the first fractional-algorithmic stablecoin system in the crypto sector that began to gain traction near the end of 2021. FXS/USDT 4-hour chart. Source: TradingViewThe protocol’s FRAX stablecoin has emerged as a fan favorite of the DeFi crowd in large part thanks to its decentralized nature in a field dominated by centralized projects like Tether (USDT) and USD Coin (USDC). As a result of its adoption, the total volume of FRAX transacted has risen over the past six months and is currently at an all time high of $6.3 billion. FRAX monthly volume. Source: Dune AnalyticsFXS’s bullish momentum is backed by a steadily increasing total value locked, which increased by 30.53% over the past week and 86.9% over the last month to hit a record high of $2.28 billion on Jan. 24. This climb to a record TVL comes even as the prices of nearly every other asset fell across the crypto market.Total value locked on Frax Share. Source: Defi LlamaWith FRAX now being adopted across DeFi by users looking for more decentralized stablecoin options, FXS could likewise see an increase in demand and token price as the importance of reliable stablecoin protocols intensifies. The 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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House members call for an end to lawmakers trading stocks — is crypto next?

Congresspeople currently HODLing or actively trading in crypto may have to stop doing so while in office if recent pushes to ban lawmakers from investing in stocks gain enough support.In a Monday letter addressed to Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, 27 members of the U.S. House of Representatives called for action “to prohibit members of Congress from owning or trading stocks.” Among the bipartisan group of lawmakers who signed onto the letter was Illinois congressperson Bill Foster, who is also a member of the Congressional Blockchain Caucus. In addition, the letter seems to have support from politicians diametrically opposed on major issues like Progressive Democrat Rashida Tlaib and Republican Matt Gaetz, who is reportedly under investigation by the Justice Department for allegedly violating sex trafficking laws and obstruction of justice.Members of Congress are currently allowed to buy, sell and trade stocks and other investments while in office, but are also bound to disclose such moves by the Stop Trading on Congressional Knowledge Act, or STOCK Act, passed in 2012. This piece of legislation requires lawmakers to report any purchase, sale or exchange over $1,000 within 30 to 45 days but provides minimal financial and legal consequences for not filing in time. The Monday letter noted that the STOCK Act “had been violated hundreds of times just since 2020.” “It’s clear the current rules are not working,” said the letter to Pelosi and McCarthy. “Congress should close these loopholes by simply banning members from owning or trading individual stocks while in office. In addition to ensuring that members’ access to information doesn’t advantage them over the public when trading stocks, as the STOCK Act sought, this would end the potential corruption of lawmakers pursuing policy outcomes that benefit their portfolios.”The House members added:“There is no reason that members of Congress need to be allowed to trade stocks when we should be focused on doing our jobs and serving our constituents. Perhaps this means some of our colleagues will miss out on lucrative investment opportunities. We don’t care. We came to Congress to serve our country, not turn a quick buck.”Senators Jon Ossoff and Mark Kelly proposed a similar piece of legislation for the U.S. Senate on Jan. 12. Ossoff referenced a survey from the advocacy group Convention of States Action, which found that roughly 76% of voters said that lawmakers and their spouses had an “unfair advantage and should not be allowed to trade stocks while serving in Congress.”Speaker Pelosi does not seem to have responded to the letter from House members. However, when questioned about a possible ban on lawmakers being allowed to trade stocks in December, she said “we’re a free-market economy — they should be able to participate in that.”Democratic lawmaker Alexandria Ocasio-Cortez — whose name did not appear on the letter to Speaker Pelosi and Minority Leader Kevin McCarthy — said in December she believed members should neither hold nor trade individual stocks, hinting that to do so would allow them to “remain impartial about policy making.” She added that she extended this belief to holding digital assets and cryptocurrencies like Bitcoin (BTC). Related: House memo details Congress’ priorities ahead of crypto CEO hearingCointelegraph reported last Tuesday that seven members of Congress from both the Senate and House had declared investments in crypto during their time in office. Among lawmakers with the highest reported exposure were New Jersey Representative Jefferson Van Drew and Wyoming Senator Cynthia Lummis, who disclosed a 2020 investment of $250,000 in a trust operated by Grayscale, and a 2021 BTC purchase of up to $100,000, respectively.Cointelegraph reached out to Representative Bill Foster for comment, but did not receive a response at the time of publication.

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Strategies for trading cryptocurrency during a correction, explained

A correction refers to a rapid price decrease, which traders can use to their advantage with the assistance of cryptocurrency trading bots. Although the definition for a correction differs, it is most often used to describe a rapid decrease in an asset’s price, usually at least 10% and up to 20%. If an asset falls more than that, the price dip is classified as a market crash. Corrections are often the result of a minor event, such as low trading volumes or other technical factors. They, therefore, occur fairly regularly, lasting a few days, weeks and, in some cases, months. The term correction is then used since the price will often return to its expected value. However, the alternative may also be true. A correction may lead to a larger decline, a bear market. As most know, the cryptocurrency market is defined by its volatility, making it normal for prices to move up and down fairly regularly. Looking at the 2021 year alone, the cryptocurrency market was subject to four market corrections and another market event. For this reason, analysts will also recommend market corrections as a great opportunity for investors to buy assets “on sale.” The main concern here is that it can be hard to determine when a correction might occur. For this reason, crypto trading bots can play a crucial role in helping traders determine when to buy and sell using signals and indicators and also just not to miss that moment while being away from the screen.

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OpenDAO (SOS), LooksRare (LOOKS) and WTF token: 3 airdrops, with 1 scam

NFTs continue to surge with what looks to be no end in sight. Since January 14, 2022 OpenSea notched trading volumes over $1.03 billion, and its latest rival, LooksRare, has eclipsed the platform according to data from DappRadar. Top 8 NFT marketplaces by volume. Source: DappRadar What’s clear is that NFT collectors and traders appear to be shifting their sentiment on where they are seeing value. Since the start of 2022 there’s been an emphasis on “community” with a buzz and advocacy of rewarding users for their participation. OpenSea has already generated more than $3.2 billion in total volume despite many NFT traders feeling that the marketplace betrayed the notions of Web3. These investors are voting with their feet and planning to boycott the marketplace by turning their attention to others who are more “Web3 friendly.”Community-driven NFT marketplace, LooksRare and other platforms have successfully completed a vampire attack, leaving disgruntled OpenSea users migrating away from it for not valuing and rewarding user participation.Participants seem to be adamant on advocating for the value they create within the ecosystem and feel competitors are meeting their demands. However, could more rivals to OpenSea sway users by claiming to value and reward their participation? And could others potentially exploit users who blindly follow these notions and protocols?SOS: OpenDao receives mixed reviewsSince launching, SOS has locked in 13.7 trillion SOS in staking ($45.6 million) and 50% of its total 100 trillion total total supply is distributed to the community. Up until January 12, 2022 users were eligible to claim a 145% APY for its veSOS governance token and this came equipped with voting rights for future projects and protocols. SOS appeared to have lit the match for community activism but it faced backlash after taking back its original plans to end claiming until June 30, 2022.  Many voiced their frustration and confusion, learning that in DAOs, decisions can change with the call of a vote, and participation is highly recommended.SOS Staking Pool. Source: SOS Queries Dune AnalyticsCurrently there are over 200,000 holders and more than $2.5 billion traded and future project launches plus the current NFT marketplace could see more liquidity rotating into SOS.SOS has decreased nearly 70.5% and is trading at $0.00000327despite a looming marketplace that is speculated to offer unique trading opportunities for NFTs.SOS/USD live 24-hr Sushiswap LP Chart. Source: CoinGecko Gecko Terminal NFTs continue to surge with what looks to be no end in sight. Since January 14, 2022 OpenSea notched trading volumes over $1.03 billion, while its latest rival, LooksRare, made over $1.79 billion ranking above the giant, according to data from DappRadar. Is there more to LooksRare than just wash trading?Launched on January 10, 2022, LooksRare aimed for OpenSea’s jugular— or rather its lack of Web3 incentives and initiatives— and gained the attention of many who were already discussing the “Death of OpenSea.”The token was a “free” drop, but it came with the price of several transaction fees, including placing an NFT up for sale, claiming the airdrop and staking (optional).Even with the costs, over 110,000 wallets claimed LOOKs, from approximately 60% of the total eligible wallets, according to data from Dune Analytics. Number of LOOKS vs wallet addresses that claimed the Airdrop. Source: Dune AnalyticsLooksRare has amassed nearly $2.4 billion in total volume, but the metric only shows a piece of the entire pie. A few red flags were raised when a closer look at the amount of transactions was viewed. Comparing the number of transactions on LooksRare to OpenSea reveals that OpenSea processed over 50 times the amount of transactions of LooksRare.LooksRare has an estimate of 17 times the amount of users, yet OpenSea’s volume is half that of its rival.Shortly after launch, investors grew suspicious that traders were wash trading with Larva Labs Meebits collection to take advantage of trading rewards.LooksRare vs. OpenSea Daily Users Source. Dune AnalyticsWhile there’s a camp of individuals who are championing LooksRare and find its model promising, others are raising questions and concerns about the platform’s sustainability.Fees.wtf lived up to its nameMany were fortunate to benefit from the SOS and LOOKs airdrop but the Fees.wft airdrop was a different story. Initially, the project was a fee service on the Ethereum blockchain that calculates the total gas fees a user has spent. A user had to spend at least 0.05 Ether to be eligible to claim and once announced, traders rushed to cash in only to find the initial liquidity pool was too small resulting in 58 Ether, ($188,036) being drained by a bot. 1/ $WTF: A service, a token, and what everyone said five minutes into the launch when one bot drained 58 ETH from the pool.Let’s take a look at what happened.— meows.eth (@cat5749) January 14, 2022Aptly named, it seems users did not have to mint the Fees.WTF NFT to feel rekt. Users who were not familiar with slippage tolerances found that their orders were executed for significantly less than expected, leaving one user trading over $135,000. Daily WTF holders. Source: Dune Analytics @MilkmanDespite falling nearly 84% since a spike after its initial launch, WTF seems to continue to grab the attention of new holders with its claims window still open and the number of holders increasing.Daily WTF price. Source: Dune AnalyticsProgramming the contract so that the team makes 4% after every transfer, the team has allegedly made over $3 million and counting. Even though the platform “intended” to reward users for the fees they have spent, Fee.WTF stunted on users who paid more in fees than they actually claimed.According to Rokitapp founder Lefteris Karapetsas, the smart contract was coded to siphon Ether from anyone who interacted with the contract. Upon further inspection, Karapetsas saw the contract encoded a fixed whitelist of those who did not need to pay transfer fees. Oh hey look the @feeswtf team posted a post-mortem: https://t.co/8v1Ng3DupHIf that does not tell you need to know about the “project” I don’t know what will.— Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) January 15, 2022

Despite suspected wash trading and the contentious issues surrounding the association to Cole, Pudgy Penguin co-creator and investor in the project, LooksRare provides a competitive edge to OpenSea because it falls in line with the current demand of Web3 users. OpenDAO and LooksRare are good examples of what OpenSea competitors possess and are waiting to unleash. With the increasing number of individuals entering the crypto ecosystem, and many advocating for Web3 incentives, traders need to take heed and evaluate where they are placing their attention and value since there are platforms that are laser-focused on exploiting their needs.The 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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These were the 5 hottest coins on Twitter last week — And their price dynamics

Crypto Twitter is a powerful place. Not only does the online discussion follow the ups and downs of digital assets, but it can also shape price action. Oftentimes, a spike in Twitter attention can anticipate a dramatic increase in an asset’s price. Yet, in other cases, the order can be reversed, or there may be no relationship between price and Twitter chatter at all.To harness the power of Twitter and use it as a tool for profit generation, crypto traders need two things: The first is the ability to quickly spot spikes in social attention around specific assets, while the second is sound judgment to tell if the anomaly is indeed a harbinger of an impending rally. While there are reliable algorithmic tools that cover the first ingredient — such as Cointelegraph Markets Pro’s Unusual Twitter Volume indicator — the latter requires instincts and experience.The following examples of assets that showed the largest week-to-week increase in tweet volume illustrate various scenarios around the relationship between price and Twitter conversation.Cream Finance: The Iron Bank effectCREAM price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIECREAM, the native token of decentralized finance project Cream Finance, sported the greatest week-to-week tweet volume increase as conversation around the asset grew 543% more extensive. The reason for the popular excitement was the announcement that holders could stake their CREAM to receive the tokens of the upcoming Iron Bank, Cream Finance’s new protocol-to-protocol lending platform.As visible in the chart, the price hike that began to unfold on Jan. 13 went hand in hand with the intensifying tweetstorm. The discussion peaked on Jan. 14 when 216 tweets referencing CREAM were posted, against a price of around $72. Even as the chatter began to recede, the token continued to add value, breaching $92 on Jan. 15. In this case, the Twitter trend was clearly instructive, as CREAM’s price grew an additional 27% over the two days that followed the tweet volume peak.SwissBorg: Promo leads to a tweet surgeCHSB price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEWhile the price of SwissBorg Token (CHSB) remained in a rather narrow range between $0.52 and $0.57 throughout last week, there was a 521% increase on Jan. 14 in the volume of tweets that mentioned SwissBorg. What was the reason for the uptick? A Jan. 13 giveaway of whitelist spots for nonfungible token (NFT) mints that required liking and retweeting the original post to enter. Having reached upward of 13,000 retweets, it was a successful publicity move, but it had had little effect on the CHSB token’s price, however.Decred: Twitter reacts to a price pumpDCR price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEOne common scenario is an explosion of Twitter attention in response to a dramatic price hike. A case in point is the price of Decred (DCR) vs. its tweet volume last week. Late on Jan. 14, the coin’s market value shot up from around $60 to $86 in a matter of three and a half hours. Social excitement began building up only after the price peak, culminating in a high of 110 tweets the day after, when the price had already corrected to below $70.ZKSwap: Price and tweet volume increase togetherZKS price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEEarly in the week, ZKSwap’s ZKS token saw a modest price increase from $0.27 to $0.29, with the tweet volume peak of 116 posts coming on Jan. 12, ahead of the week’s price high. Although it does not look humongous, this attention spike marked a 370% increase in tweets compared with the week before.FTX Token: Tweet volume peaks ahead of the price peakFTT price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEFTX Token (FTT) had a strong week in terms of price movement, steadily climbing from $36.81 on Jan. 10 to $47.02 on Jan. 16. The asset’s spectacular run didn’t go unnoticed by Crypto Twitter, as the volume of conversation ramped up on Jan. 14 and reached its high-water mark the next day with 313 tweets. FTT’s solid performance continued even after tweet volume peaked. In this case, a spike in social attention could have certainly alerted traders to a profit opportunity.Getting alerted to Twitter anomaliesThose who don’t have time to scroll through their Twitter feed day in and day out can outsource the spotting of sudden spikes in the volume of asset-specific chatter to specialized tools. Markets Pro, Cointelegraph’s proprietary data intelligence platform, automates the process by showing a dedicated panel on the dashboard with five assets that are seeing an unusually high tweet volume.CT Markets Pro’s Unusual Twitter Volume panel, Jan. 20. Source: Cointelegraph Markets ProTweet volume is also one of the components of the VORTECS™ Score, a machine learning-powered indicator that compares historic and current market conditions around digital assets to aid crypto traders’ decision-making. The model takes in a host of other indicators — including market outlook, price movement, social sentiment and trading volume — to generate a score that shows whether the present conditions are historically bullish, neutral or bearish for a given coin.Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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Here’s how traders capitalize on crypto market crashes and liquidations

The first week of the new year saw a vicious pullback across all cryptocurrencies in the market. Ether (ETH) price dropped from its November peak at $4,800 peak to under $3,000 on Jan. 8 and Terra’s LUNA governance token also dropped from $85 on Dec. 31 to $67 on Jan. 8, 2022. These unexpected dramatic moves often cause liquidation cascades in the lending market, but they also create unique buying opportunities in the collateral liquidation markets.Kujira’s Orca protocol is a platform built on the Terra network and it allows investors to bid on bETH (bonded asset of Ether) and bLUNA (bonded asset of LUNA) at a discounted price when the at-risk collateral is liquidated. As a pseudonymous analyst at Kujira pointed out,“Liquidation has for so long been the ‘shady underbelly’ of lending platforms and monopolised by bots so much that the average user barely knows it’s going on, least of all how they could benefit from it”. Kujira allows anyone to participate in the liquidation process by grasping the opportunity to acquire these assets at a discounted price.In the recent crash on Jan. 8, the lowest price one could buy Ether (in its bonded asset bETH form) was $2,833, while the market price of Ether was around $3,000. Similarly, traders could buy bLUNA as low as $58.90 while LUNA’s spot price was around $67.Liquidation stats from Kujira. Source: TwitterLet’s take a closer look at the strategies for acquiring bETH and bLUNA at a discount during a market crash.Market structure provides unique opportunities to buy at a discountIn the Terra ecosystem, participants can borrow Terra USD (UST), the stablecoin of the Terra blockchain, from DeFi protocols such as Anchor to participate in high-yield liquidity pools, IDOs or any other profitable trading activities involving UST. In order to borrow UST, participants need to deposit bonded assets (bETH or bLUNA) as collateral to Anchor. The maximum amount each wallet can borrow is 60% of the collateral value, often referred to by DeFi protocols as the maximum LTV (loan-to-value).In a bull market where Ether and LUNA prices are on the rise, the LTV continues to decrease and no collateral is at risk. When the price of Ether or LUNA goes down, the collateral value decreases and if the LTV exceeds 60%, a liquidation event is triggered. This alerts Anchor to sell the proportion of the collateral that exceeds the maximum LTV at a discounted fire-sale price on Kujira Orca. This is where potential buyers on the other side of the trade can buy the collateral at a discount.How to capitalize on pricing anomalies in ETH and LUNAHere are some simple steps investors can follow if they want to purchase Ether or LUNA at a discount.After connecting the Terra wallet to the platform, an investor chooses the asset they would like to bid (currently only bLUNA and bETH are available), then selects the premium (the percentage of discount from spot) to receive.After clicking “Place My Bid” to submit the bid, the investor will see the “My Bids” window. It takes 10 minutes for the bid to be ready, and afterward, the investor needs to click “Activate” to include the bid in the bidding queue. Once the bid has been filled, the amount will be shown in the “Available for Withdrawal”’ window. The investor then needs to click withdraw and pay a fee to transfer the asset back to their Terra wallet.Kujira Orca home page demo. Source: Kujira LitepaperThere are three important things to remember when placing the bid:1. If the investor is not using KUJI (the native token of Kujira) to pay for the withdrawal fee, they should always place a premium (discount) percentage larger than 1%, as there is a network fee of 2 UST and a 1% commission fee. If using KUJI, the commission is only 0.5%.2. If there are multiple bids at different discounted rates, the investor should activate them all at once to save network fees.3. The bids are filled equally and proportionally between everyone bidding at the same discounted rate. There is no first-come, first-serve advantage or larger bids that get a filled-first advantage. The only sequence in which the bids are filled is based on the discounted rate — i.e., the lower-discount pool gets filled first. The mechanism of evenly distributing liquidation assets among each bidder ensures the fairest allocation to everyone. Ryan Park, co-builder of Anchor Protocol, said in an interview about Orca:“By evenly distributing the proceeds of liquidations amongst a greater majority, collateral isn’t going into a centralised point but back into the hands of other users. The implications are staggering and quite frankly, I don’t think enough attention has been given to just how big this is.”The example below shows that when there is a 100,000 UST liquidation to be executed, the 1% discount pool (61,000 UST in total) is filled first and the pool is fully emptied. The remaining 39,000 UST is subsequently passed onto the 2% discount pool to fill the bids. Each wallet in each pool receives a proportion of the allocated liquidation amount based on the size of their total bidding offer in the pool. It is a completely fair distribution with no priority given to the quickest clicker or the largest bidder.Example of 100,000 UST liquidation in 1% and 2% pools.Identifying the best time to buyFigure1: Number of liquidated borrowers vs. ETH price. Source: Kujira Orca, Flipside CryptoAs shown in Figure 1 and Figure 2, the best time to bid is when there is a dramatic drop in collateral asset price and many borrowers’ LTV goes below the 60% maximum level. This creates an increase in the number of liquidations (blue and purple line in Figure 1) and also the supply of liquidation assets on the platform (blue and purple bar in Figure 2).Figure 2: Liquidated amount in USD vs. LUNA price. Source: Kujira Orca, Flipside CryptoThe worst case scenario — in terms of number of liquidated borrowers — coincides with the time when bLUNA and bETH prices dropped significantly. The liquidation amount also spiked in early December 2021 and early January 2022 when Ether and LUNA prices breached major support levels as shown in Figure 2.These sudden rises in liquidation create unique opportunities for investors to purchase bLUNA and bETH at a great discount. As shown in the chart below (Figure 3), in the December LUNA crash, bidders could purchase bLUNA at a 11% to 12% discount on Kujira Orca at the peak. Figure 3: bLUNA liquidated amount in USD vs. purchase discount. Source: Kujira OrcaSimilarly (shown in Figure 4), when Ether price dropped from the $4,600 level to $4,100 on Nov. 16, bidders were able to purchase bETH at a 11% discount at around $3,700. Figure 4: bETH liquidated amount in USD vs. purchase discount. Source: Kujira OrcaLooking into the average discount bidders received in the past three months, it is very interesting to see most of the liquidations happened in the very high discount group (9 to 10%, or more than 10%) for November and December 2021. In January 2022, the concentration seems to have moved to the 6% to 7% discount bucket. However, January’s data is incomplete and only available until Jan. 10 at the time of writing. This means the concentration in the 6% to 7% bucket is only a reflection of the drop early in the year and could still change for the rest of the month.Discount bucket comparison for the past 3 months — January data is only until Jan.10. Source: Kujira OrcaTraders can earn while they waitThe historical discount data clearly shows that investors can buy bETH and bLUNA at a discount as high as 9% or 10% away from the market price but the bids might take a long time to get filled. Luckily, there will soon be a way to keep earning interest from UST while waiting for the bids.Investors can simply deposit UST to Anchor’s Earn and accrue interests at the current rate of 19% APY; and use the aUST token they receive as the IOU token to bid liquidation assets on Kujira Orca. This way, one keeps accruing interest until the bid is filled on Kujira and the aUST is converted to UST for the liquidation purchase.** Special thanks to Hans from Kujira for providing the data and insights needed to complete the article.The 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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Russian Orthodox Patriarch is not a Bitcoiner, church clarifies

Patriarch Kirill of Moscow and all Rus’, the leader of the Russian Orthodox Church, has not urged his flock to invest in Bitcoin, despite videos claiming otherwise. A clip recently emerged claiming that Kirill had urged the faithful to invest in cryptocurrencies. While the video does include genuine comments from the patriarch regarding the benefits of robotics for the economy, and a mention of Bitcoin (BTC), the comments were heavily edited, with the narrator further claiming that the leader would bless those who wish to invest in crypto in a special service at a Moscow church.The church’s top media representative, Vakhtang Kipshidze, told local publication Daily Storm:“This is an absolute deception, misleading those people who might think that the patriarch allegedly encourages someone to participate in financial fraud and speculation.”Kipshidze said that he considered the fraudulent nature of the video to be apparent, stating, “It would never occur to any sane person that the patriarch would call for investing in some kind of fly-by-night scheme, the fraudulent nature of which, in my opinion, is quite obvious.”Religious communities around the world have had varying opinions about cryptocurrencies, ranging from cautious approval to outright condemnation. Related: Indonesia’s national Islamic council reportedly declares Bitcoin haramIn the Islamic world, which has its own set of guidelines and laws pertaining to finance — and now digital assets — the acceptance of cryptocurrency is far from uniformMalaysia’s shariah advisory council, for example, has declared that trading digital assets was permissible, while late last year, religious authorities in Indonesia have found it “haram,” or forbidden, namely due to its speculative nature and purported propensity for fraud. 

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