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🗞 Market Wrap: Blame BitMEX as Bitcoin Dumps to $10.4K; Record Month for Ethereum Fees
Derivative exchange BitMEX’s legal issues with U.S. regulators took a toll on bitcoin’s price while DeFi gave Ethereum miners more fee revenue than ever.
Bitcoin (BTC) trading around $10,582 as of 20:00 UTC (4 p.m. ET). Slipping 1% over the previous 24 hours.
Bitcoin’s 24-hour range: $10,427-$10,931
BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.
The drop coincided with the announcement crypto derivatives venue BitMEX was formally being charged by U.S. regulators for unregistered trading, among other transgressions.
“The news of BitMEX being served with a lawsuit by the [Commodity Futures Trading Commission] was met with broad-based selling pressure,” said Denis Vinokourov, head of research for crypto brokerage Bequant.
A number of new derivatives venues, most of which do not provide access to anyone in the United States, is one of the reasons for BitMEX’s decline in the market, said Bequant’s Vinokourov. “BitMEX’s overall importance to the broader ecosystem is not as critical as was the case a few years ago,” Vinokourov added. “Not only have many other exchanges been catching up with BitMEX liquidity and order book depth, but also a widely publicized tech issue earlier this year put a big dent into venue’s reputation amongst the larger crypto trading desks.”
Nonetheless, liquidations on BitMEX helped push bitcoin’s price down Thursday, as $15 million in sell liquidations in the past 24 hours wiped out long-oriented traders on the derivatives platform, similar to a margin call in traditional markets.
Ethereum miners reap record revenue from fees
As increasing numbers of users adopt decentralized finance, or DeFI, on Ethereum, miners are reaping more revenue from the network than ever. Miner revenue from fees charged to use Ethereum averaged 38% in August, which was then a record high. It was surpassed in September, when miner revenue from fees hit another record, at 48.5%.
🗞 Bitcoin, Stocks Fall as Trump Tests Positive for COVID-19
The cryptocurrency and Asian stock markets sold off early Friday after U.S. President Donald Trump announced he and his wife had tested positive to COVID-19.
In a tweet on Friday, Trump said he and First Lady Melania Trump had tested positive for COVID-19 and would begin their quarantine process "immediately."
"We will get through this TOGETHER!," Trump tweeted.
The Australia ASX All Ordinaries is down 1.35%.
In the U.S. markets, S&P 500 futures fell about 2%.
Gold is up 0.32% on the day to stand at $1908 after falling to a low of $1888 in early Asian trading hours.
The price action comes several hours after a 3.7% fall on news that U.S. officials indicted BitMEX owner Arthur Hayes and other company executives on charges the crypto trading platform violated know-your-customer and derivatives trading laws.
Trump will quarantine as he enters the final month of his reelection bid. His major-party opponent, Democratic nominee and former vice president Joe Biden, has been touring the midwestern states following a debate with Trump on Tuesday.
🗞 Crypto Trading Platform BitMEX ‘Attempted to Evade’ US Regulations, CFTC, DOJ Charge
The U.S. Commodity Futures Trading Commission (CFTC) and federal prosecutors are charging crypto trading platform BitMEX with facilitating unregistered trading and other violations.
The CFTC announced Thursday that BitMEX, CEO Arthur Hayes, company owners Ben Delo and Samuel Reed, and corporate entities HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited allegedly offered U.S. customers illicit crypto derivative trading services.
Similarly, Audrey Strauss, the acting U.S. Attorney for the Southern District of New York announced that Hayes, Delo, Reed and Gregory Dwyer (BitMEX’s first employee) were being charged with violating the Bank Secrecy Act and conspiracy to violate the act. Reed has already been arrested; the others remain at large, an SDNY press release said.
In a statement shared after this article was published, an external HDR Global spokesperson pushed back against the charges.
“We strongly disagree with the U.S. government’s heavy-handed decision to bring these charges, and intend to defend the allegations vigorously,” the statement said. “From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”
Full CFTC complaint here
🗞 Kucoin Hack: $17M Laundered Via Decentralized Exchanges, Blockchain Analysis Firm Claims This Can Still be Traced
Elliptic says the Kucoin hacker has sold $17.1 million worth of tokens via decentralized exchanges (dex) platforms like Uniswap, Kyber Network, Tokenlon. The shift to dex applications comes after centralized projects came to the aid of the beleaguered exchange by blocking any cashing out of the hack related funds.
For the past few days, the blockchain analysis firm says it has been seeing stolen tokens being swapped with censorship-resistant cryptocurrencies like bitcoin. Despite this change in tactics, Elliptic insists it has the technology that can still trace the movement of such funds.
In a blog post on September 29, Elliptic cofounder and chief scientist, Tom Robinson revealed that of the stolen assets, “approximately US $152 million was made up of Ethereum-based tokens (ERC20s), including Tether (USDT), Chainlink (LINK), and Ocean Protocol (OCEAN).”
Robinson explains that these tokens are issued on blockchains such as Ethereum by “organizations that have the power to freeze accounts and recover the tokens.”
🗞 Yield farming platform APY Finance locks $67 million in first hour
APY.Finance is the latest DeFi protocol to explode in popularity, locking more than $67 million of stablecoins in the first hour of launching its mining program.
The DeFi sector is still going strong with the newly launched yield farming platform APY.Finance attracting more than $67 million in locked funds within one hour of launching liquidity mining earlier today.
APY.Finance’s mining contracts incentivize users to provide liquidity in the form of the DAI, USDC, and USDT stablecoins, with users rewarded with the platform’s governance token, APY.
The first month will see 900,000 APY tokens mined, the official blog post outlined, but “incentivization details” will vary month-to-month. The total amount of APY to be mined will total 31.2 million tokens, or 31.2% of total supply.
The APY token distribution has raised concerns for some in the community, with Twitter user Goomba stating:
“There’s no chance for any regular #DeFi users to compete against VCs and whales here. Already had a presale AND it’s only 31% of 12228 total supply.”
🗞 Daily Crypto Calendar, October, 2nd💰
SINOVATE (SIN)
SINOVATE Star Cradle Public Testnet goes live, D.I.N. AURORA Mainnet to follow after the two-week testing phase .
Swipe (SXP)
"BREAKING: Swipe Governance (SG) smart contracts have now been successfully audited by @certik_io. SG mainnet will be deployed by Friday."
"#Swipe September 2020 Updates: SXP Listings Swipe Governance | On-Demand Gift Cards | #GotSwipe Campaign | Coin Listings | Swipe..."
Zel (ZEL)
3PM EST - PM UTC. Update on where the project currently is, goals for the future, and announcements.
Blockstack (STX)
"Dapps, Social Tokens and HackStacks Friday, October 2, 2020 from 12:00 pm to 09:00 pm | Social Tokens are on the rise rocket..."
NULS (NULS)
New NULS SCO project launching 02 OCT at 23:00UTC you will be able to stake NULS to earn EHT through POCM.
Utrust (UTK)
"Binance will list UTRUST (UTK) and open trading for UTK/BTC and UTK/USDT trading pairs at 2020/10/02 6:00 AM (UTC)."
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Bitcoin tend to reduce in some season like during the covid 19.Another reading would be that "ideologically driven" can just be a marketing line to pay below market rate .