Lots of Chinese news today, to the point where I had no choice but to bust out the dragon quotes 😉 "Crouching crypto" is too cringey?! Too bad, it's apt!
Anyway, I'm kinda glad to see lots of movements in blockchain in China; where there is appetite to experiment with technology in China, there is growth – just look at the AI advancements.
Chasing the dragon
BTC suddenly spiked 😉 ~5.2% to a daily high of $6,817 earlier in the day before tapering off to ~$6,700. We saw a relatively big price movement today, compared to the tepid response of the past few days.
At the current time of writing, BTC is trading above the 21-day EMA support line of ~$6,621. Closing above this level could prove crucial in pushing BTC into a short uptrend run. The next key level would be the 50-day EMA line, currently sitting at ~$6,849.
Speculation as to why BTC experienced this sudden spike: It happened right when BitMEX, a leveraged crypto trading platform went offline for maintenance. Or it could be due to investors loading up on BTC, in anticipation of an approval of the ProShares Bitcoin ETF by the SEC tomorrow, Aug 23. It could mark a milestone for the cryptosphere. Be sure to stay tuned! 📻
The majority of the other top 100 cryptocurrencies also experienced a similar price uptrend today. Compared to BTC, the other cryptocurrencies experienced price spikes in the ~2-4% range, despite their higher betas. VeChain continues its four-day bull run streak, with yet another impressive ~8.77% price hike today.
WeChat, the popular Chinese messaging app, has recently taken down several blockchain-related media accounts. They were found to have violated newly-enacted rules by China’s Cyberspace Administration of China.
In March, China’s state-run media outlet "People’s Daily" – aka voice of the Chinese Communist Party (CCP) 🎙️ – remarked that Chinese blockchain media outlets were assisting in market manipulation activities in the cryptocurrency space, even singling out Huobi’s CEO Jun Du as a “classic example” of a thorn in the blockchain ecosystem 🥀
Some of the accounts that were taken down belonged to Huobi News (surprise 😮), Jinse Caijing, Deepchain, TokenClub and CoinDaily.
Rising like a phoenix
China Zeshang Bank, one of China’s largest privately-held national joint-stock commercial bank, completed a $66 million securities issuance on its own blockchain, Lianrong ⛓
The proprietary blockchain enables registered companies to trade account receivables (legally enforceable payment claims) as they would securities, and directly settle the invoice transactions peer-to-peer 🤝
Tron (TRX) acquired peer-to-peer file sharing protocol BitTorrent for an estimated $126 million back in July this year. Since then, the BitTorrent inventor Bram Cohen has quit the project he started almost two decades ago; at least five other employees, two of whom previously held roles such as Head of Marketing and General Manager, have left 👣
Although BitTorrent’s key personnel such as the Chief Executive Officer, Chief Financial Officer, Chief Product Officer and Chief Revenue Officer are still bound by golden handcuffs 👮 for 18 months, other staff members are said to have serious reservations about the direction of the company, and the presence of Tron entities in the Tron node elections, according to CoinDesk and CoinTelegraph sources.
Currently, out of 27 elected nodes, Tron's CEO Justin Sun controls 1, Tron controls 4, equating to an approximate ~18.5% control by Tron entities.
Divyesh Darji, head of the Asian division of Bitconnect, has been arrested at the Delhi airport for his involvement in the Ponzi scheme.
Tencent, Softbank, and DST Global have publicly denied their investment in Bitmain's pre-IPO funding round.
Steve Wozniak is getting involved in a blockchain company called Equi, which aims to replace traditional investing firms by helping more people purchase equity in companies.
Poll of the Day
To what extent will Tron unleash the potential of the BitTorrent technology it has acquired? 🤔
First of its name... Breaker of chains... Mother of plagiar, oh never mind 😝 I'm curious what you think of Tron!
What you said
Love for the “Bakkt” name: 3.8. Oops.
~59% of respondents felt that not supporting margin trading is the right thing for them to do, while the other 41% don’t know (or care) either way.
With regards to derivatives (or perhaps more specifically, paper trading of crypto not backed by the asset itself), many felt it is a bad move to continue or encourage this, since you canalready do that with fiat, so why need crypto? 😯 Some feel that crypto is digital, unlike gold; and accessible, unlike commodities like corn; so crypto should not be subject to the same fractional reserve system 🌟
Still, some have mixed feelings about it, saying they’re not sure if it can be avoided altogether; and then some funny person said “I’m a bag holder, who else can save me?” 🤣 Whatever it is, crypto needs to go mainstream, some say, at no matter what the cost 🤐
Turning to derivatives, some disagree with trading derivatives because of the idea that “Bitcoin is hard to borrow”; several people feel that it is not that difficult, as long as you don’t freak out about its value in dollars, or the current volatility 🌊 What’s more, by simplifying the sale and purchase of crypto, and increasing its accessibility, these measures will increase stability and long-term viability of cryptocurrencies without the overt influence of derivatives.
Also, someone felt that “the derivatives market is a casino, and casinos are for gamblers” 😅 Nice quote, ma friend.
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