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May 2019

Bitcoin’s 2017 Boom Largely Fueled by a Single Trader

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Bitcoin

Bitcoin

Bitcoin’s 2017 bull run, which saw the world’s leading digital asset top out at nearly $20,000 USD, was mostly driven by a lone anonymous trader, according to analysis gathered by two finance professors from the University of Texas and Ohio State University.

Professors John Griffin and Amin Shams analyzed over 200 gigabits of data relating to the transaction history between Bitcoin and Tether, another highly controversial stablecoin, and found that the surge in value in late 2017 was attributable to one large player, or a whale in the crypto world, but the identity of the investor remains unknown.

“We find that the identified patterns are not present on other flows, and almost the entire price impact can be attributed to this one large player,” Griffin and Shams wrote. “We map this data across both blockchains and find that the one player or entity (labeled as 1LSg throughout the paper) is behind the majority of the patterns we document.” Their hypothesis is based on the theory that Tether coins, which should be backed 1:1 with USD, are printed with no backing and used to purchase Bitcoin.

“This pattern is only present in periods following printing of Tether, driven by a single large account holder, and not observed by other exchanges,” they wrote in a paper to be published in a forthcoming Journal of Finance.

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The theory that Tether is being used to manipulate the value of Bitcoin and other altcoins is not a new revelation. Last month the coin, and its parent company Bitfinex, were accused of creating “the largest bubble in human history” in a class-action suit. The case alleges that the two companies, and a number of affiliated entities, manipulated the crypto market out of up to $1.4 trillion USD by printing unbacked coins.

Meanwhile, Bitcoin has ended a three-month bear run after gaining over 10% in October. The double-digit gains mean the digital coin has outperformed gold prices for the first time since June, which is considered a useful barometer of its performance given their reputations as safe-haven assets. BTC is currently valued at $9,448 USD.

Featured Image: DepositPhotos © freedomtumz

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Binance Launches Tezos (XTZ) Margin Trading

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Binance

Binance

The crypto market might be going through a massive slump at this point in time, but that has not stopped the biggest crypto exchanges from introducing new products. In a new development that will come as a further boost to crypto traders, Binance Binance has decided to launch margin trading in Tezos (XTZ) on its platform.

Important News for Tezos

Considering the fact that Binance is the biggest crypto exchange in the world in terms of trading volumes, this is good news for the crypto community and also for Tezos. Despite the current troubles in the crypto market, Tezos enjoyed a rally on the back of the news and hit $1.24 per token.

Tezos has generally been behind many other cryptocurrencies in the recent months, but it should be noted that for crypto traders, Binance has become one of the most important marketplaces for the token. Moreover, the listing on Coinbase has further helped matters for Tezos, since traders in the United States can now get involved as well. That being said, it is also true that margin trading can often prove to be risky and especially in cryptocurrencies with a small market cap.

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In this regard, it is important to keep in mind that there has been a clear rise in liquidity in Tezos over the recent weeks, and that is directly responsible for this decision from Binance. The introduction of margin trading should come as a boost for Tezos since it will now allow traders to bet on the price of the token. In addition to that, an onset of positive news has also been a blessing for the cryptocurrency, and the market expects it to have success in the upcoming quarter.

Binance has again proven that it is one of the best exchanges with regards to crypto margin trading at this point. The exchange offers margin trading in as many as 27 cryptocurrencies at this point.

Featured image: DepositPhotos © Piter2121

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Chainlink (LINK) Soars 50% This Month

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Chainlink

Chainlink

The first few weeks of 2020 have been a bit of a mixed bag for the crypto sphere, but one of the most remarkable happenings has been the rally in Chainlink (LINK). The cryptocurrency has gained as much as 50% over the course of the past month and has emerged as one of the tokens to watch for market participants.

We’re taking a closer look at the LINK project. Over the years, plenty of new projects have emerged in the blockchain space, but LINK has proven to be one of the more interesting ones.

Key Analysis

Since it started its operations, Chainlink has managed to emerge as one of the more progressive blockchain projects in the industry, and it is no wonder that people are now taking notice. In recent times, the LINK token has actually outperformed many other tokens.

Many of the leading altcoins in the crypto space have been beaten by LINK, and at some points, it even managed to outperform Bitcoin. Experts believe that the sort of performance that LINK has delivered so far is an indication that it could end up being one of the best-performing crypto tokens in 2020.

One of the most important creations by the project has been the Chainlink Oracle, a venture aiming to expand its usage considerably. It is the flagship product that the venture has produced so far. Chainlink is also in the process of building apps that are highly important for those working with data.

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Such apps are expected to have great demand in the crypto space, and those offerings could prove to be a major step for Chainlink. At the end of the day, blockchain projects can only grow if they can find appropriate use cases and applications. In that regard, Chainlink has done well, and the rally in the token is hardly surprising.

Featured image: DepositPhotos © eskaylim

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