Daily Archives: May 9, 2022

On Monday, decentralized finance, or DeFi, protocol Compound Treasury announced that it received a credit rating of B- from S&P Global Ratings. As told by the team at Compound, this represents the first time a major credit agency has issued a rating for an institutionalized DeFi protocol. The S&P Global Ratings’ investment suitability scale ranges from AAA (extremely strong) to D (in default). A score of B- indicates the issuer can meet financial commitments, though vulnerabilities to business, financial and economic conditions persist. 

Regarding Compound’s rating specifically, S&P Global cites the uncertain regulatory regime for stablecoins such as USD Coin (USDC), stablecoin-to-fiat convertibility risks and the Treasury’s “limited capital base” along with a 4.00% per annum return obligation for the decision. However, the rating agency says that the Compound protocol’s record of zero losses measured in USDC partially mitigates the risks of the offering.

With regards to the development, Compound Treasury’s general manager Reid Cuming commented “S&P’s rating helps our institutional clients more easily understand the opportunity and risks of crypto-powered cash management.” As part of ongoing discussions with S&P Global, Compound Treasury’s ratings could be upgraded in the event of greater regulatory clarity for digital assets or a longer track record of solid performance.

The Compound Treasury and its yield is supported by its underlying DeFi lending Compound protocol. At the time of publication, 301,650 suppliers have injected $6.94 billion worth of digital assets into the protocol, while 9,275 borrowers have taken out $1.83 billion worth of loans. While above the savings rates of major U.S. banks, the yield from Compound Treasury is only accessible to accredited investors or those meeting significant income and net worth thresholds. 

The International Monetary Fund, or IMF, has turned its attention to The Bahamas’ central bank digital currency (CBDC), the Sand Dollar, and suggested additional regulatory oversight and education.

Reporting on a consultation with the Caribbean nation on Monday, the IMF said its executive directors “recognized the potential of the Sand Dollar to foster financial inclusion” and recommended the Central Bank of The Bahamas “ accelerate its education campaigns and continue strengthening internal capacity and oversight.” The consultation was somewhat of a departure from several of the IMF’s previous warnings to many countries against the adoption of digital assets — but many of those did not include CBDCs.

The recommendation came following the conclusion of an Article IV consultation in The Bahamas last Wednesday. According to the IMF, during such a consultation, a team of economists visits a country “to assess economic and financial developments and discuss the country’s economic and financial policies with government and central bank officials.”

In addition to recommending financially educating the public in The Bahamas, the IMF hinted at the importance of “robust supervisory and regulatory framework” for digital assets. During an interview at SALT’s Crypto Bahamas conference in May, The Bahamas Prime Minister Philip Davis told Cointelegraph that the region has a regulatory regime in place that will enable crypto businesses to operate within its jurisdiction. Davis’ office also said in April the government would “enable payment of taxes using digital assets” by working with the central bank as well as the private sector.

It was an honor to interview the Prime Minister of the Bahamas for @Cointelegraph at @CryptoBahamas stay tuned for our coverage! #CryptoBahamas pic.twitter.com/67EtQgRQeT

— Rachel Wolfson (@Rachelwolf00) April 27, 2022

Related: IMF urges El Salvador to remove Bitcoin’s status as legal tender

To date, The Bahamas and Nigeria are the only two countries to have officially launched CBDCs, but other nations including China have been piloting digital currencies. On Friday, the Bank for International Settlements Monetary and Economic Department said a survey of 81 central banks conducted in 2021 suggested 90% were “engaged in some form of CBDC work,” with more than 60% “likely to or might possibly issue a retail CBDC in either the short or medium term.”

Tl;dr: Apply for our summer 2022 Community Ambassador Program here. If you live and breathe crypto or you’re simply crypto-curious and want to gain more exposure to the industry, this is the perfect opportunity. Program rolls out June through August 2022. Application deadline is May 23rd.

by Mengfan Zhang, Ecosystem Manager at Coinbase

Coinbase is announcing our Summer 2022 Community Ambassador Program!

We are building upon the successful launch of our Community Analyst Program (CAP) in January this year, when we recruited 15 talented part-time students and professionals to help Coinbase conduct crypto research. Our community ambassadors researched areas such as DeFi, NFTs, wallets, Layer-1 protocols, scalability solutions, and other exciting web3 innovations, which helped inform Coinbase teams on web3 trends. Their work supported internal research teams, the Coinbase University Program, international growth, and the Developer Relations team. Following the program, our ambassadors reported that their crypto research and analytical skills improved, and they were more motivated to work in crypto.

We’re excited to welcome our next cohort of ambassadors this summer. If you live and breathe crypto or you’re simply crypto-curious and want to gain more exposure to the industry, this is the perfect opportunity. CAP enables you to gain experience in the exciting crypto industry, with opportunities to educate yourself on top crypto trends, and to make an impact on Coinbase and the crypto ecosystem at large.

Our mission is to increase economic freedom in the world, and to help accomplish this we want to onboard a large and diverse group of people aligned on this common goal.

Which Coinbase teams will CAP support?

CAP’s Summer 2022 cohort will recruit ambassadors to support the following areas/teams at Coinbase:

• Developer Relations
• Crypto Research & Content
• NFT Research & Analysis
• International Growth
• Coinbase Ventures

Why Become a Community Ambassador?

At Coinbase, we believe it’s our responsibility to be good stewards of the cryptoeconomy, which means developing the next generation of talented crypto leaders to drive growth for the wider industry.

Community Ambassadors work remotely as part-time contractors and will have access to the following benefits:

• Hourly wage
• Opportunities to build relationships with the Coinbase team, your cohort and the crypto community
• Opportunities to influence Coinbase initiatives
• Career development opportunities
• Coinbase gear
• Unique Coinbase Ambassador NFT badge
• Full-time or internship opportunities at Coinbase

Who Is Eligible to Apply for the Program?

University students, graduate degree students, full-time professionals and crypto community members, who are 18 years old or older, are encouraged to apply. Because CAP supports numerous Coinbase teams, we are looking for ambassadors with diverse skill sets, including:

• Familiarity with the crypto industry and blockchain technology
• Experience using dapps
• Passionate about crypto and insatiably curious
• Available to work 10–20 hours per week
• Experience and skills in any of the following categories: 1) Venture research & reporting, 2) Content creation, 3) NFT research, 4) Online community management — Discord/Telegram, 5) Event planning & logistics operations, 6) Collecting crypto community signals, trends, & insights, 7) Translations — into APAC or LATAM local languages, 8) Technical skills such as programming, smart contracts, and product testing, and 9) Creative design — videos, images, memes etc.

What will Coinbase Community Ambassadors do?

You will be assigned to one of five Coinbase teams based on your skills and interests. Your primary responsibility will be to support your assigned Coinbase team’s goals. We encourage you to be self-motivated and dedicated to producing measurable results while exploring the world of crypto. Duties may include both online and in-person components, such as:

• Generate periodic research reports, articles, or bite-sized analysis on emerging trends, community sentiment and grassroots activities
• Embed into crypto communities, participating and building relationships in community hot-spots throughout Discord, Telegram, Twitter, and elsewhere
• Attend in-person meetups or crypto industry conferences as needed
• Weekly and ad-hoc tasks assigned by your assigned Coinbase team
• Track your weekly progress and report to your assigned team
• Average commitment of 10–20 hours per week

When does the program start?

The next Coinbase Community Ambassador Program will take place June through August 2022. Recruiting will begin May 2022 and we will aim to give offers by the end of May.

How do I join?

To join, please submit the application form here. If selected, you will have a call with our team to ensure our goals and expectations are aligned. If you advance past the initial interview, our onboarding process will begin and more details will be shared at that time. The application deadline is May 23rd, 2022.

Once hired, community ambassadors will be contracted through a third party and will not be engaged as official Coinbase employees. Becoming a Community Ambassador can lead to opportunities to expand your role such as potential Coinbase internship offers and full-time employment offers. More information about opportunities to participate in a Coinbase internship or full-time offer will be provided upon successful completion of the program.

Bitcoin on-chain data shows exchanges this week have observed the largest inflows since July 2021, taking the price of the crypto to $33k.

Bitcoin Exchange Inflows Spike Up To Highest Value Since July 2021

As pointed out by an analyst in a CryptoQuant post, the BTC exchange inflows have observed a sharp increase recently.

The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin moving into exchange wallets.

When the value of this metric rises, it means an increasing number of coins are moving into exchanges. Such a trend may be bearish for the price of the crypto as investors usually deposit their BTC to exchanges for selling purposes.

Related Reading | TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K

On the other hand, low values of the indicator suggest that not much selling on exchanges is going on right now. This trend, when prolonged, can prove to be bearish for the value of the coin.

Now, here is a chart that shows the trend in the Bitcoin exchange inflows over the past several months:

Looks like the value of the metric has shot up recently | Source: CryptoQuant

As you can see in the above graph, the 7-day average value of the Bitcoin exchange inflow has observed a spike this week.

The current value of the indicator is the highest it has been since July of last year, around when the coin bottomed around $29k.

Related Reading | Terra Beats Tesla As Second-Largest Corporate Bitcoin Holder After $1.5B Purchase

Looking at the chart, it seems like in the last few months whenever the inflow has spiked up, the price has also declined with it.

This time as well it looks like the heavy selling on exchanges has played a part in the current plunge of Bitcoin below $33k.

The metric’s value still looks to be rising, so it’s possible the coin may observe further decline in the near term, until the 7-day MA inflow tops out.

BTC Price

At the time of writing, Bitcoin’s price floats around $32.9k, down 14% in the last seven days. Over the past month, the crypto has lost 22% in value.

The below chart shows the trend in the price of the coin over the last five days.

The price of BTC seems to have plummeted down over the last few days | Source: BTCUSD on TradingView

Bitcoin’s seemingly endless consolidation looks to have finally broken down as the coin has observed some sharp downtrend in the past week.

At the moment, it’s unclear whether the crypto is nearing a bottom or if more decline is coming. If the inflows continue to increase, then the latter scenario is more likely to play out.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

The cryptocurrency economy has shed a lot of value during the last six months dropping 48.70% from $3.08 trillion to today’s $1.58 trillion. While crypto markets looks extremely bearish these days, a few crypto advocates have theorized the bear market will be less harsh this time around. Furthermore, there’s also the rare scenario that bitcoin’s price could reverse and see a triple top even though it’s commonly said in the finance world “there is no such thing as a triple top.”

The Chances of Bitcoin Experiencing a Triple Top Scenario Is Rare, But Could Happen

Five days ago, Bitcoin.com News reported on a theory that describes bitcoin (BTC) prices experiencing a softer bear market than the leading crypto asset’s 80%+ declines recorded in the past. The reasoning behind the theory is because of past bitcoin price peaks and the most recent peaks recorded in May and November 2021.

While BTC hit $64K in May and $69K in November, the two peaks were much smaller than previous bull run gains. From the looks of things it seems, BTC’s price experienced what’s called a double top. Now, coinciding with the theory the current market downturn will be a softer bear run, there’s also the rare possibility of a triple top scenario.

Basically, if a triple top scenario takes place, BTC’s fiat value will tap the same resistance it touched during the past downturn. For instance, after BTC tapped a high of $64K in mid-May 2021, the value dropped to a low of $31K on June 21, 2021. From there, the price once again skyrocketed and reached $69K on November 10, 2021.

If a triple-top happens to occur, then the upcoming bottom would be somewhat in the range of the $31K mark, when it starts another reversal. In order for this to happen, BTC will have to see a complete reversal from the same resistance levels and the third top could be equal to and just above or just below the $69K region.

Reversal Theories Considered ‘Hopium’ as Many Won’t Bet on Such a Risky Play

Of course, many will assume theories of a triple top are based on pure faith and “hopium.” In the trading world, triple tops are very rare and quad tops are seemingly non-existent. In 2019, allstarcharts.com analyst JC says: “We rarely see triple tops, and I can’t even tell you if I’ve ever seen a quadruple top. Betting on these outcomes seems to never pay.”

Which means betting on bitcoin (BTC) experiencing a triple top is a very risky bet in comparison to betting on a double top formation. Moreover, its a common message in the trading world to state:

There is no such thing as a triple top.

While it’s common to say the statement, saying “there is no such thing as a triple top,” the comment is not entirely accurate. They surely have occurred in financial market scenarios in the past, and traders who risked betting on them have reaped the rewards. However, when a triple top does execute and complete, the “party is officially over.” When a triple top is executed, the price will begin a bearish descent until the next price cycle regains bullish strength.

While many are likely still willing to bet on a triple top formation as far as bitcoin’s price is concerned, its even more likely they are not willing to bet on a seemingly non-existent quad top. Moreover, triple tops being as rare as they are, means a great deal of traders are not willing to bet a third peak is in the cards. The chance of a BTC triple top coming to fruition is not impossible, and no one can safely say the scenario will not come into play.

What do you think about the chances of bitcoin’s price seeing a triple top formation after hitting the next resistance level? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.