1. Market Wrap: Bitcoin’s Below $50K as Investors ‘Wait and See’ Amid Market Reset
Bitcoin was trading within a narrowed range on Thursday, as investors and traders were cautiously optimistic after the latest pullback, which took bitcoin’s price down close to $45,000 earlier this week.
Bitcoin (BTC) trading around $49,194.33 as of 21:00 UTC (4 p.m. ET). Slipping 0.13% over the previous 24 hours.
Bitcoin’s 24-hour range: $48,091.13-$52,076.32
BTC trades below its 10-hour and 50-hour averages on the hourly chart, a bearish signal for market technicians.
Trading volumes were far lower than earlier in the week when traders scrambled to adjust positions as the market fell 15% in two days, the biggest such decline since the coronavirus-driven sell-off of March 2020. The eight exchanges had a combined spot-trading volume of less than $4 billion on Thursday as of press time. The figure had surged above $10 billion on Monday and Tuesday and was slightly above $5 billion on Wednesday.
In the derivatives market, bitcoin’s options open interest is slowly returning after it dropped Tuesday slightly from an all-time peak of about $13 billion on Sunday.
“Bitcoin’s market is rather quiet today,” Yves Renno, head of trading at crypto payment platform Wirex, said. “Its derivatives market is going back to normal after the severe contract liquidations suffered a few days ago. Close to $6 billion worth of long future contracts were liquidated. The market is now trying to consolidate above the $50,000 level.”
2. Coinbase’s Financials Are Now Public Ahead of Stock Market Listing
The crypto exchange’s S-1 Form is now live, revealing key details before Coinbase stock hits the market.
Crypto exchange Coinbase is officially going to become a publicly traded company.
Its Form S-1 has been published by the U.S. Securities and Exchange Commission (SEC), clearing the way for its much-anticipated direct listing on Nasdaq.
The move caps a seven-month effort by the exchange to go public. Rumors first emerged Coinbase was exploring a direct listing on a U.S. stock exchange last summer, though the company didn’t confirm the news until December.
3. Coinbase Lists Unmasking of Bitcoin’s Creator Among Business Risks
DeFi, social media and data breaches are also acknowledged as “risk factors” for investors in the company’s hot-off-the-presses prospectus.
Leading U.S. cryptocurrency exchange Coinbase identified some unique business risks in its prospectus released Thursday, including competition from decentralized finance (DeFi) and the potential discovery of the real identity of Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Per its prospectus, Coinbase noted that “the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins” as a risk factor.
The exchange did not elaborate on how unmasking Satoshi would affect its business. However, in May, for example, the cryptocurrency market was briefly rattled by on-chain data that coins possibly belonging to Nakamoto had moved, as CoinDesk reported at the time.
The list also included “negative perception of Bitcoin or Ethereum” and “unpredictable social media coverage or ‘trending’ of crypto assets” as risk factors.
Decentralized finance (DeFi) was also included as a risk. Coinbase said, “We compete against a growing number of decentralized and noncustodial platforms and our business may be adversely affected if we fail to compete effectively against them.”
Coinbase specifically names DeFi protocols including Ethereum, Tron, Polkadot, and Solana in explaining risks from DeFi growth.
Indeed, the growth in DeFi trading has been remarkable, with aggregate volumes setting new record highs in January above $50 billion, per CoinDesk’s prior reporting.
Other identified risks are more standard, including the company’s revenue being “substantially dependent” on the categorically volatile prices of digital assets, and the potential for platform security breaches, and ongoing as well as potential future litigation individuals or government regulators.
The U.S. Securities and Exchange Commission (SEC) requires stock issuers to identify the biggest risks to their business before and after going public, and the “risk factors section” of the prospectus and annual or quarterly report is staple reading for educated investors. Companies tend to err on the side of caution, including risks some may consider remote.
While there has been much speculation about the person, or persons, behind the Satoshi handle, the identity of Bitcoin’s creator has never been conclusively determined, and media reports claiming to have solved the mystery have been roundly debunked.
As a sort of winking homage to Nakamoto, Coinbase included the Bitcoin network address associated with the cryptocurrency’s creator in the “copies to” field of its prospectus, alongside lawyers and the like.
4. EOS Builder Block.one Joins Enterprise Blockchain Alliance in Latin America
The LACChain EOSIO network is due to be released for enterprise use within the next few weeks.
Block.one, the company that raised a record-breaking $4 billion to fund the development of the underlying software of the EOS blockchain, is cementing ties with LACChain, an Inter-American Development Bank–backed initiative to spread blockchain technology across Latin America and the Caribbean.
Announced Thursday, Block.one has signed a memorandum of understanding (MoU) to join the LACChain Global Alliance, which has 40 partners in 12 countries in Latin America and the Caribbean.
“We are very glad to incorporate Block.one as one of the LACChain allies or partners, because Block.one is the largest entity in the EOS world,” said LACChain Technical Lead Marcos Allende in an interview. “During the past months, we have attracted and incorporated the EOS community, and within the next few weeks we will release the LACChain EOSIO network.”
5. DeFi Exchange 1Inch Expands to Binance Smart Chain Citing ETH Gas Fees
The DEX aggregator is branching out from Ethereum to the bustling BSC.
1inch, a decentralized finance (DeFi) protocol for routing trades, is now live on Binance Smart Chain (BSC) — hedging its bets on Ethereum’s ability to handle more transaction volume.
Launched in 2019, 1inch routes trading orders for Ethereum-based tokens (and now BSC tokens) through dozens of integrated decentralized exchanges (DEXs) to get the best prices. It’s one of the largest DEX aggregators by trading volumes with some $450 million traded in the past 24 hours, according to Dune Analytics.
“The 1INCH token on Binance Smart Chain will be used for a bridge between the Binance and Ethereum networks,” a blog post shared. “1inch users will get access to PancakeSwap, BurgerSwap, StreetSwap, Venus, StableSwap, JulSwap, BakerySwap and other Binance-based DEXes and lending protocols.”
Bukov said Binance did not pay for the integration, but did participate in the startup’s seed round in August.
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February 26, 2021