Coinbase Wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

Coinbase Wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

Starting on Dec. 5, the Coinbase Wallet will no longer support four major tokens.

In a Nov. 29 notice on its help pages, Coinbase said the wallet will no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC), and Stellar (XLM) as well as their networks. The crypto firm cited “low usage” of the four tokens in its decision to stop support starting on Dec. 5.

“This does not mean your assets will be lost,” said the announcement. “Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”

Source: Coinbase

This story is developing and will be updated.



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NFT Firm Candy Digital Cuts Over a Third of the Company’s Staff – Bitcoin News

NFT Firm Candy Digital Cuts Over a Third of the Company’s Staff – Bitcoin News

With non-fungible token (NFT) sales a lot lower than they were at the start of the year, NFT companies and marketplaces are feeling the pain associated with the second-largest crypto winter to date. According to a report published on Monday and “multiple people familiar with the situation,” the NFT company Candy Digital is laying off over a third of the firm’s staff.

After Raising $100 Million in 2021, Report Says Candy Digital Cuts a Third of Its Employees a Year Later

On Monday, Sportico’s sports business reporter Eben Novy-Williams reported that the NFT firm Candy Digital “is laying off a large chunk of its workforce, according to multiple people familiar with the decision.” Sportico’s article notes that roughly one-third of Candy Digital’s 100 staff members are being let go, the people familiar with the matter detailed.

Candy Digital is a Fanatics-backed NFT marketplace that’s also bolstered by Galaxy Digital’s Michael Novogratz, and the business entrepreneur and NFT creator Gary Vaynerchuk. Candy Digital launched in June 2021 and at the time the company revealed a long-term partnership with Major League Baseball (MLB).

Sportico details that the publication’s news team reached out to both Candy Digital and the collectibles giant Fanatics, but both firms declined to comment about the alleged layoffs. The news comes at a time when NFT sales and overall interest in NFTs are both down a great deal since the start of 2022.

NFT sales, however, have been steady since October, and November’s NFT sales were 22% higher than October’s sales volume. Candy Digital was able to raise $100 million last year, and it gained a $1.5 billion post-valuation after the capital raise that occurred on Oct. 21, 2021.

There were ten investors that funneled capital into Candy Digital last year, including investors such as Insight Partners, Softbank, Peyton Manning, Gaingels, and Will Ventures. The NFT platform is not the only crypto business that has let staff go as the entire crypto industry has been plagued with staff reductions all year.

In the world of NFTs, Dapper Labs, the blockchain firm behind the popular NFT collections NFL All Day and NBA Top Shot, slashed 22% of the company’s workforce at the start of November. Last July, the largest NFT marketplace in terms of overall sales volume, Opensea, cut 20% of the company’s staff.

Tags in this story
30-day NFT sales, candy, Candy Digital, Candy Digital Layoffs, Candy Digital staff cut, company’s staff, cut staff Candy Digital, Dapper Labs, Eben Novy-Williams, Gaingels, Insight Partners, NFT sales, NFTs, Non-fungible Token, Non-fungible tokens, Opensea, Peyton Manning, Sales NFTs, Softbank, Sportico, Will Ventures

What do you think about Candy Digital laying off roughly a third of the NFT company’s employees? 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 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Not The 2018 Bear, Bitcoin Price Could Hit $20,000 In December

Not The 2018 Bear, Bitcoin Price Could Hit $20,000 In December

The Bitcoin price rebounded off the low of its current range and retraced its weekend losses. The cryptocurrency might climb back to the previously lost territory, but uncertainty is king in the current market conditions. 

As of this writing, Bitcoin is trading at $16,400. In the last 24 hours and last week, the price recorded a 2% and 4% profit, respectively. Other cryptocurrencies in the crypto top 10 are following, but Binance Coin (BNB) and Dogecoin (DOGE) are leading the bounce. 

BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview

The High And Lows, Is There Hope For The Bitcoin Price?

Investment firm Cumberland posted a market update highlighting the uncertainty in Bitcoin and other cryptocurrencies. The nascent asset class is trading in a range after experiencing massive sell pressure amid the collapse of FTX. 

In this uncertain and low liquidity environment, with FTX and its market maker Alameda Research out of the picture, the Bitcoin price will likely trade sideways. During the holiday season, the crypto market will see another decline in liquidity, leading to volatility and crab-like price action. 

However, Cumberland believes there are catalysts to see a move into fresh lows. The FTX collapse triggered a contagion effect across the industry. Many companies and projects relied on the crypto exchange and its venture arm. 

Thus, these companies are vulnerable and might be unable to continue operations. The market is already seeing this effect with BlockFi’s chapter 11 bankruptcy filing. Many wonder how many companies will take a similar measure in the coming weeks. 

If many more crypto projects halt operations, the crypto market might see fresh lows before 2022 ends. Cumberland said the following on the state of “crypto lending 1.0”:

Version 1.0 of the centralized lending industry is effectively finished, and as a result there will be widespread collateral liquidations administered by bankruptcy attorneys over the coming months and years.

Max Pain Price Might Play In Favor Of Bitcoin? 

On the other hand, the bullish case for the Bitcoin price is seeing some momentum on the back of adoption. Ironically, the collapse of FTX is driving many users to take custody of their assets and become less dependent on third-party services. 

In addition, Cumberland sees an enduring bullish trend for stablecoin-based use cases, non-fungible token (NFT) technology, and Ethereum/Polygon as the foundation for Web2 businesses. The firm added:

Against this backdrop, volumes remain explosive; this is not the bear market of 2018 when activity evaporated altogether. Instead, it is evident from our perspective as liquidity providers that the number of entities who care (and transact) is steadily on the rise.

Cumberland believes regulations might drive momentum to either side. If the regulatory landscape for 2023 seems favorable, Bitcoin and others might enjoy sustainable relief into previously lost territory. 

In the options market, as NewsBTC reported, players are betting on buy (call) contracts and sell (put) contracts targeting $30,000 and $10,000, respectively. The max pain for these contracts expiring in December is $20,000. Will BTC trend in that direction?

Bitcoin BTC BTCUSDT Chart 3
BTC Options’ Open Interest for the December 30th expiry. Source: Deribit



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Bitcoin shrugs off BlockFi, China protests as BTC price holds $16K

Bitcoin shrugs off BlockFi, China protests as BTC price holds $16K

Bitcoin (BTC) held crucial $16,000 support into Nov. 29 as bulls weathered ongoing FTX fallout and macro triggers.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader teases BTC long as $16,500 reappears

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD leaving lower levels untouched overnight.

The pair had seen a flash downturn after the Nov. 27 weekly close thanks to uncertainty from China over COVID-19 measures.

A recovery nonetheless took the market higher, with $16,500 coming into play at the time of writing.

As Cointelegraph reported, traders and analysts had warned that it was all but essential to preserve current support, with a violation opening up the road to $14,000 or lower.

Popular trader Crypto Tony even felt comfortable going long BTC on the day.

“Flipping the EQ would be a safer long entry, but keeping this open with a tight stop loss is the best way for me,” he revealed to Twitter followers.

An accompanying chart identified support and resistance zones in play on midrange timeframes.

BTC/USD annotated chart. Source: Crypto Tony/ Twitter

Even fresh repercussions over the FTX debacle failed to dent Bitcoin’s performance. Meanwhile, these came in the form of a bankruptcy filing and lawsuit from crypto lender BlockFi.

The latest in a chain reaction sparked by FTX going under, the news came alongside a surprise resumption of salary payments by the defunct exchange.

“Makes sense after this bounce, as we’ve created a HL on Bitcoin and aiming at resistance again,” Michaël van de Poppe, founder and CEO of trading firm Eight, continued about a higher low (HL) on the 4-hour chart:

“Taking out the range between $16.5-16.8K would trigger continuation towards $18K.”

BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

China woes cool ahead of Fed Powell speech

China meanwhile formed the main macro focus on the day, with anti-lockdown protests’ impact on market sentiment nonetheless seeming to ease.

Related: New BTC miner capitulation? 5 things to know in Bitcoin this week

Asian markets bounced back strongly, with Hong Kong’s Hang Seng up 5.2% at the time of writing and the Shanghai Composite Index gaining 2.3%.

Hang Seng Index (HSI) 1-hour candle chart. Source: TradingView

“We do not expect China policy to publicly shift away from the Zero Covid stance, however, we could see some easing of the policy privately and in localized areas,” Mohit Kumar, an analyst at investment banking firm Jefferies, wrote in a note quoted by Bloomberg.

Nov. 30 looked set to be the key trading day of the week, with Bitcoin’s monthly close accompanied by a speech from Jerome Powell, Chair of the United States Federal Reserve.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.



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Self-custody best practices – Kraken Blog

Self-custody best practices – Kraken Blog

Self-custody in crypto is the process of storing your own cryptocurrency using a digital or physical wallet, thereby removing it completely from any exchange or custodial partner. A self-custody wallet, also known as a non-custodial wallet, ensures that you and only you have access to your cryptocurrency.

Self-custody also means you are responsible for your private keys, which means if you lose access to your self-custody wallet for any reason you will probably lose access to your crypto.

In short, self-custody is an excellent practice but care must be taken to ensure security and safety at all times. Here are some tips on managing your own crypto.

What are self-custody wallets?

Put simply, self-custody wallets hold your private keys which, in turn, allow you to access your crypto on the blockchain. Your wallet doesn’t hold cryptocurrency. Instead, it protects your private keys and keeps all records of their existence off of the internet. 

Custodial wallets, on the other hand, let you access your crypto with a password or other security measure but the organization that holds the custodial wallet also holds your keys.

Self-custody also involves holding your own public key which is like an address for your wallet. This allows people to send crypto to your wallet but, without the private keys, they cannot withdraw or transact using your wallet.

What do private keys have to do with custody?

As we noted before, your private key is a long string of letters and numbers used to gain access to funds associated with a crypto wallet. It acts like a password and can be used to generate a digital signature to prove your ownership of funds on the blockchain

The digital signature effectively broadcasts your ownership of cryptoassets without revealing your private keys.

If you are interested in learning more about private keys, cryptography and the technology that powers crypto, you can check out our Learn Center article “How do cryptocurrencies use cryptography?” first.

Private keys shouldn’t be confused with public keys which are also generated by your wallet and used to receive cryptocurrency. You can think of your public keys like a bank account number that can be shared with anyone. Private keys, on the other hand, should never be shared with anyone. They are the security equivalent of a PIN number.

Self-custody

Cryptocurrency and blockchain technology allow users an unprecedented level of financial independence.  

When a custodian, like a crypto exchange, holds your private keys they are able to put limits on your transactions or even charge fees for using your crypto. They may also be subject to regulatory changes or suffer security breaches, potentially leading to a loss of funds. Ultimately, these issues led to the creation of the popular expression, “not your keys, not your coins,” which continues to be a mantra of the self-custody movement.

When you take proper custody of your own private keys, you know that your assets are truly safe because only you have access to your crypto.

Types of self-custody wallets

Mobile/desktop wallet

Mobile and desktop wallets exist primarily on hardware devices like your phones and laptops. They allow for access to your funds on-the-go and usually include some kind of backup system that ensures that if your device is lost you won’t lose your private keys. Be sure to secure your wallet with a complex password or biometric security – or both. 

You should also avoid keeping large amounts of crypto on your devices because if they are stolen, damaged or corrupted you run the risk of losing your private keys! 

Smart contract wallet

A smart contract wallet is used with the Ethereum blockchain and allows you to access items like NFTs and other smart contracts. Most of these apps run as browser extensions and allow you to log into various web-based exchanges. The private keys for this type of wallet are stored on the host computer and just like your mobile or desktop wallet you should take care to maintain absolute security when it comes to password protecting and setting transaction alerts on this kind of wallet. 

Hardware wallet

A hardware wallet is a small piece of electronic equipment that can hold your private keys. This is one of the safest ways to store your keys and many hardware wallets allow you to connect to a web app that lets you send and receive crypto. Hardware wallet setups usually require you to create a 24-word recovery phrase that will allow you to access your crypto in the event you lose your physical crypto wallet. Keep this safe and separate from your hardware wallet.

Leading providers of these solutions include:

It’s important to note, you should only ever buy these devices directly from the official manufacturer. Buying second hand or through a different provider runs the risk of the device being tampered with which can result in the theft of funds.

Paper wallet

Paper wallets are basically sheets of paper containing your public and private keys. They are easy to create (some exchanges allow you to create them right from your browser) and almost impossible to hack. That said, if you lose that piece of paper, your keys and crypto are lost forever. Paper wallets have fallen out of favor but they are probably the most secure method for storing crypto over a long period of time.

Are self-custody wallets secure?

Self-custody wallets are as secure as you make them. 

Self-custody wallets allow you – or anyone else – to access your crypto. If you don’t secure them physically and digitally, they will be extremely insecure. 

Keep any crypto that you don’t use or transact with on a monthly basis in a secure hardware wallet and store it in a fireproof and waterproof safe. 

Store your key phrase elsewhere, also in a fireproof and waterproof container. If and when you need to access these items in an emergency you’ll be glad that they remained safe even in the case of an accident or natural disaster.

In addition, you may wish to create multiple hand-written copies of the same phrases and distribute them across different locations to spread your risk and avoid having all your sensitive crypto information in one fixed place.

Can a self-custody wallet maker access my crypto?

Self-custody wallet makers actively probe their product lines for security problems and bugs. 

In general, your self-custody wallet maker should have no ability to gain access to your crypto at any time once a device has been sold to you.

To ensure your device runs as intended, it’s recommended you always update your hardware and software wallets regularly and ideally encrypt and back up your wallet files regularly. 

Should I self-custody?

At Kraken we believe that self-custody is vital for any crypto user. We want you to be responsible for your own crypto for many reasons, including the belief that crypto must remain decentralized and every crypto user should know and understand the importance of public and private keys. 

Giving power to a custodial wallet to control your assets may seem like an easy way to manage your crypto but it’s not absolutely secure nor is it recommended.

What can I share and what shouldn’t I share?

The only thing you should ever share is your public wallet address. 

You should never share:

  • Your private key.
  • Your wallet passwords.
  • Your wallet 2-factor authentication codes.
  • Your wallet back-ups.
  • Your seed phrase.

Never give this information to anyone, online or off. No one from any legitimate exchange will ever ask you for any of this information at any time.

Copying down this information should only be done by hand, making sure to do it in a room free of people and devices with cameras. You can copy information down on paper and laminate it, or there are physical metal solutions where you can etch details into plates for better longevity.

Providers of this solution include,

Keeping your crypto secure is work. Your mission is to keep your private keys and passwords safe at all times and the more you research crypto the easier this will become. Until you become a crypto pro, however, remember: not your keys, not your coins. Self-custody might seem hard but it’s far better than any other alternative.

Create a Kraken account to benefit from our industry-leading security while you set up your self-custody wallet and take control of your own financial freedom.

 


These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell or hold any cryptoasset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position.



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ETH Climbs Above $1,200 Ahead of US Consumer Confidence Report – Market Updates Bitcoin News

ETH Climbs Above $1,200 Ahead of US Consumer Confidence Report – Market Updates Bitcoin News

Ethereum rose back above $1,200 on Tuesday, ahead of the upcoming consumer confidence report from the United States. The price comes following a breakout above a key resistance level of $1,180. Bitcoin also climbed higher in today’s session, ending a five-day losing streak.

Bitcoin

Bitcoin (BTC) snapped a five-day losing streak on Tuesday, as prices moved away from a recent point of support.

Following a low of $16,054.53 to start the week, BTC/USD surged to an intraday high of $16,522.26 earlier today.

This surge saw bitcoin climb from its aforementioned price floor $16,175, which has been in play since earlier in the month of November.

Bitcoin, Ethereum Technical Analysis: ETH Climbs Above $1,200 Ahead of US Consumer Confidence Report
BTC/USD – Daily Chart

Looking at the chart, although prices have surged, it will be a test to see if this momentum can be maintained, due to the relative strength index (RSI) colliding with a ceiling.

As of writing, the index is hovering marginally above a ceiling of 41.00, with a current reading of 41.12.

Should price strength continue in an upward direction, we could see more bulls entering the market, taking BTC closer to $17,000.

Ethereum

In addition to BTC, ethereum (ETH) also moved higher on Tuesday, ahead of the U.S consumer confidence report.

The Conference Board consumer confidence survey is expected to come in at a reading of 100, which is marginally below October’s reading of 102.5.

ETH/USD was back above $1,200 on Tuesday, hitting a high of $1,216.52 earlier in today’s session.

Bitcoin, Ethereum Technical Analysis: ETH Climbs Above $1,200 Ahead of US Consumer Confidence Report
ETH/USD – Daily Chart

As can be seen from the chart, the move, which ended two straight days of losses, pushed ethereum to its highest point since Saturday.

Overall, this move comes as the RSI raced above its point of resistance at 43.70, and it is currently tracking at 46.10 as of writing.

A ceiling of $1,230 now awaits ethereum bulls, and should they overcome this hurdle, a move towards $1,300 will be on the cards.

Register your email here to get weekly price analysis updates sent to your inbox:

Will ethereum hit $1,300 before the end of the month? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.




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Fantom (FTM) Up 10% After Cronje Article

Fantom (FTM) Up 10% After Cronje Article

The 69th largest cryptocurrency by market capitalization, Fantom (FTM), has shown relative strength over the past seven days, rising 29%. Over the past 24 hours, it even stands at a gain of 10%.

Today’s surge comes after DeFi star programmer Andre Cronje published a Medium post about the “crypto company” Fantom, detailing its financial history.

In the article, Cronje describes that Fantom started with $40 million, mostly in ETH with an average price of $450 to $700. Due to the crypto winter at the time, Fantom shad to sell its ETH for less than $5 million.

After that, Fantom decided to go on a tough austerity drive, with a complete marketing freeze and only the most necessary staff. Among other things, listing fees for exchanges and sponsorship fees for influencers were never to be paid again.

Instead, the project pursued an aggressive strategy in decentralized financial solutions (DeFi). And success is proving Fantom right. As of November 2022, the company has grown from a $5 million budget to $1.5 billion.

Fantom’s Solid Coffers

Currently, Fantom has $100 million in stablecoins, $100 million in cryptocurrencies, and $50 million in non-crypto assets, among other assets. With current salary consumption, they have a 30-year runway.

The solid financial base has also allowed the project around Cronje to reject “further cooperation from Alameda.” Profits from DeFi strategies have also been used repeatedly to buy FTM.

In terms of competition, Cronje criticizes that selling its own tokens is a finite business model. This is another reason why Fantom’s foundation owns relatively few FTM:

Most comparable L1’s own between 50% – 80% of their token supply. At launch, Fantom owned less than 3%, today we own more than 14%. We prefer buying our tokens, we don’t ‘sell’ our tokens for ‘partnerships’.

The crypto community has been extremely supportive of the article in light of FTX’s handling of customer funds and token distribution in other projects.

Fantom (FTM) Faces Crucial Resistance

The fact that the crypto community supports and also uses Fantom is shown by recently published data from Nansen. According to this, Fantom, Arbitrum and Optimism currently have more active addresses per day than 7 months ago in one week.

However, a look at the Fantom daily chart reveals that FTM is at a critical point. To initiate a bullish breakout, FTM needs to recapture the crucial horizontal level at $0.22. Technical analysis shows the importance of this area.

The price action on the 1-day chart shows that FTM price has fallen sharply since reaching its three-month high at $0.3138 on November 5. Subsequently, FTM reached a low of $0.1645 on November 22.

Fantom (FTM) facing crucial resistance, 1-day chart. Source: TradingView

Only if FTM can overcome the $0.22 mark, a new attempt at the November high of $0.31 could be on the cards. If not, there is currently not much support below the current low, which could mean a sharp decline towards $0.04.



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Non-whale Bitcoin investors break new BTC accumulation record

Non-whale Bitcoin investors break new BTC accumulation record

Some non-whale Bitcoin (BTC) investors seem to have had zero issues with the cryptocurrency bear market as well as fear, uncertainty and doubt (FUD) around the fall of FTX, on-chain data suggests.

Smaller retail investors have turned increasingly bullish on Bitcoin and started accumulating more BTC despite the ongoing market crisis, according to a report released by the blockchain intelligence platform Glassnode on Nov. 27.

According to the data, there are at least two types of retail Bitcoin investors that have been accumulating the record amount of BTC following the collapse of FTX.

The first type of investors — classified as shrimps — defines entities or investors that hold less than 1 Bitcoin, $16,500 at the time of writing, while the second type — crabs — are a category of addresses holding up to 10 BTC, $165,000 at the time of writing.

“Shrimp” investors have reportedly added 96,200 BTC ($1,6 billion) to their portfolios following the FTX crash in early November, which is an “all-time high balance increase.” This type of investor collectively holds 1.21 million BTC, or $20 billion at the time of writing, which is equivalent to 6.3% of the current circulating supply of 19.2 million coins, according to Glassnode.

In the meantime, “crabs” have bought about 191,600 BTC, or $3.1 billion, over the past 30 days, which is also a “convincing all-time-high,” the analysts said. According to the data, the new milestone has broken a previous high of BTC accumulation recorded by crabs in July 2022 at the peak of 126,000 BTC, or $2 billion, bought per month.

Bitcoin net position change for addresses holding up to 10 BTC. Source: Glassnode

While crabs and shrimps have been accumulating record amounts of Bitcoin, large Bitcoin investors have been selling. According to Glassnode, Bitcoin whales have released about 6,500 BTC, or $107 million, to exchanges over the past month, which remains a very small portion of their total holdings of 6.3 million BTC, $104 billion.

The behavior of shrimps and crabs seems to be interesting given the latest industry events, with Sam Bankman-Fried’s crypto exchange becoming a subject of a massive industry scandal involving alleged fraud and funds misappropriation.

On the other hand, some big Bitcoin investors have claimed to keep being bullish on Bitcoin despite the ongoing crisis, with the government of El Salvador starting purchasing BTC on a daily basis, starting from Nov.17. Twitter CEO Elon Musk also expressed confidence that Bitcoin “will make it” despite the current industry issues, but there might be a “long crypto winter,” he said.

Related: Exchange outflows hit historic highs as Bitcoin investors self-custody

In the aftermath of the fall of FTX, Bitcoin immediately lost about $6,000 of its value, plummeting from around $21,000 below $16,000 in mid-November. The cryptocurrency has been slightly recovering over the past few weeks, edging up to no higher than $17,000.

At the time of writing, BTC is trading at $16,500, or up around 1.7% over the past 24 hours, according to data from CoinGecko.



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Spanish Securities Regulator CNMV Warns About Crypto Investments; Calls for Caution After FTX Downfall – Regulation Bitcoin News

Spanish Securities Regulator CNMV Warns About Crypto Investments; Calls for Caution After FTX Downfall – Regulation Bitcoin News

The Spanish securities regulator (CNMV) has warned investors against putting funds in crypto-related companies. Montserrat Martinez Parera, vice president of the organization, stated that lack of control is one of the causes of the downfall of the crypto exchange FTX, and that anyone looking at crypto as an investment must be very careful due to the lack of regulation in the area.

Spanish Securities Regulator CNMV Warns About Crypto-Related Investments

The Spanish securities regulator, the CNMV, has given its opinion about the recent downfall of FTX, one of the top three crypto exchanges at a worldwide level. At the inauguration of a public congress on Nov. 25, Montserrat Martinez Parera, vice president of the institution, stated that one of the things that allowed the events involving FTX to develop was a lack of control exerted by some countries.

Martinez Parera also warned investors against embarking on this kind of investment journey, and remarked that they should approach any crypto-related opportunity with extreme caution, given that this ecosystem still lacks regulation and control. She also called for interested parties to wait for MiCA, the cryptocurrency framework being discussed now in Europe, to be approved in order to have more clarity on how crypto asset investments will be regulated.

Investment Gamification and Advertising

Martinez Parera also criticized the way in which some platforms advertise their financial investment services, trying to make them look as if they were part of a game, especially in the cryptocurrency industry.

About this process, she explained:

We use the term gamification, but they are techniques more typical of video games, deep down there is an addiction component, and they promise you certain earnings in a very short space of time: we know that this is not sustainable and we have seen it in the field of crypto assets.

Martinez Perera’s criticism also tackles the way in which some of these cryptocurrency platforms purposely employ the help of influencers to advertise their services, often offering big yields to their audiences on platforms like Instagram or Twitter. She declared:

It amazes me when sometimes some ‘influencers,’ in a video of less than a minute, tell you how to get rich.

This has been the focus of the organization this year, with influencers such as Andres Iniesta, a national soccer player, being reprimanded by the regulatory body for his promotion of a cryptocurrency exchange to his fans. The CNMV established crypto promotion laws in January that forbid influencers with more than 100,000 followers from running a crypto-related advertisement campaign without informing the group about it ten days prior to its start.

What do you think about the opinion of the CNMV on crypto regulation and the FTX downfall? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons, T. Schneider / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Miner Capitulation Is In Full Effect, How Long Will It Last?

Bitcoin Miner Capitulation Is In Full Effect, How Long Will It Last?

The collapse of the crypto exchange FTX is causing a historic event in the Bitcoin market. Yesterday, on-chain data signaled the second wave of a Bitcoin miner capitulation in one cycle.

Historically, miners have had a massive impact on the BTC price. The now heralded miner capitulation will put further selling pressure on the Bitcoin price, which is experiencing a historically bad November, down 21%.

On-chain data shows that the second wave of miner capitulation has now begun, suggesting further pain for the BTC price. As analyst Dylan LeClair wrote, the Bitcoin hash rate is starting to tilt here.

Bitcoin Miners Under Water

The 7-day moving average hash rate is now 13.7% away from its all-time high. Mining difficulty is expected to adjust by about -9% in a week, which will take some pressure off miners, at least in the short term.

Bitcoin hash rate. Source: Twitter

Nevertheless, miner margins have been and continue to be massively squeezed since June, the first capitulation event in this cycle. Despite this, the hash rate still rose to an all-time high until recently.

This, the increased mining difficulty, and the FTX-related price crash have pushed the hash price to its lowest level since late 2020.

As Capriole Investments’ Charles Edwards noted yesterday, hash ribbons have confirmed the start of capitulation. “Triggered by the $10 billion FTX scam and subsequent collapse, bitcoin miners are now going broke and the hash rate is trending down,” Edwards stated.

Bitcoin hash ribbons
Bitcoin hash ribbons. Source. Twitter

In the “Bitcoin miner net position change” chart, it can be seen that miners have been selling aggressively over the past month.

“Combined with the decline in the hash rate and today’s hash band bear cross, this suggests that we are indeed in a phase of miner capitulation,” said Will Clemente of Reflexivity Research.

Bitcoin miner net change
Bitcoin miner net change. Source: Twitter

How Long Will Miner Capitulation Last?

Something to keep in mind is that miner capitulation is usually the last stage of a Bitcoin bear market. In the 2018 cycle, the BTC hashrate continued to rise as the price reached the $6,000 mark until the final miner capitulation came at $3,000.

In the current cycle, miners have already undergone a capitulation in June. They reduced their holdings by 4,000 BTC, equivalent to about $68 million, in the last two weeks.

Prior to that, they had only begun a net accumulation trend in September 2022, betting that the bottom had been reached. However, they bet on the wrong horse and are now being severely punished.

Historically, miner capitulation has lasted an average of 48 days, which would put an end to miner selling pressure in sight by mid-January 2023.

However, the most recent capitulation ended only after two months, on August 18. The end marked the third longest capitulation in history. Bitcoin bulls should therefore be cautious in December and January, and watch the behavior of Bitcoin miners.

At press time, BTC saw a slight uptick and was trading at $16,481.

BTC USD 2022-11-29
Bitcoin price, 1-hour-chart. Source: TradingView



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