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Fundstrat’s Tom Lee: Bitcoin Pullback Is Healthy, Fewer Searches Аre Good

Fundstrat Global Advisers co-founder Thomas Lee said that the recent Bitcoin pullback is healthy.

Fundstrat Global Advisers co-founder Thomas Lee wrote that the recent Bitcoin (BTC) pullback is healthy in a tweet on July 14.

In his tweet, Lee also addressed concerns over the recent decrease in Google searches for Bitcoin:

“As for the search traffic for bitcoin being low, I also think that is a good sign. It means the rise in Bitcoin has not been accompanied by massive hype.”

According to search analytics service Google Trends, Google searches for Bitcoin from within the United States have decreased by about 45% since their recent peak at the end of June.

Google search data for Bitcoin in the U.S. Source: Google Trends

Google search data for Bitcoin in the U.S. Source: Google Trends

The CEO of major cryptocurrency exchange Binance, Changpeng Zhao, said in an interview with Bloomberg on July 12 that the recent rally has been mostly driven by retail investors, who still account for about 60% of total trading volume. Zhao said:

“We have not seen institutions growing faster. […] What we’ve seen is pickup in both places. The number of institutions coming into this industry has not increased that tremendously in 2019 yet.”

Bloomberg also suggests that margin trading is another catalyst for the recent growth. As Cointelegraph reported on July 11, Binance has rolled out margin trading features, allowing traders to use their existing balances as collateral to open both long and short positions on crypto assets. Zhao commented:

“I would say the majority of people by the end of the year will be using margin in some capacity. […] It’s quite safe to use to be honest. There will be more trading volume and potentially higher volatility.”

At the end of June, Thomas Lee suggested that Bitcoin’s volatility makes a long-term approach toward it more appropriate for most traders.

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Binance CEO: Bitcoin (BTC) Run is (Was) Driven by Retail Investors

Bitcoin Still Somewhat Retail-Driven

Over the past few months, there has been a whole lot of talk about Bitcoin becoming the next trend for institutions. Like mom & pop investors fueled 2017’s monumental run, investors today expect institutional money, the “smart money”, to drive cryptocurrencies upward. Thus, a narrative has formed. “The herd is here“, some that abide by this narrative may say.

According to Changpeng “CZ” Zhao, the beloved founder of Binance, this is not the case though. Speaking to Bloomberg for a recent interview, the Chinese-Canadian businessman suggested that Bitcoin’s move to $10,000 and beyond wasn’t mainly catalyzed by your average institutional player.

Instead, Zhao notes that it’s been a combination of retail and institutional investment. Backing this quip, the exchange chief executive cited data from Binance, claiming that 60% of all trading volume on the platform is from retail players — about the same percentage as it was last year.

CZ’s comment comes in stark contrast to comments from other reports. As reported by Bloomberg, a JP Morgan analyst stated that the paper futures contracts from the CME and CBOE (now defunct), and thus institutions, have played a larger role in recent Bitcoin price action that what many consumers are fed and believe:

“The importance of the listed futures market has been significantly understated. The report by Bitwise credits the traded futures as an important development in allowing short exposures that enabled arbitrageurs in properly engaging in arbitrage, and that the futures share of spot Bitcoin volumes increased sharply in April/May. [The data suggests] that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors.”

Also Diar recently wrote that “firm size” addresses (1,000 to 10,000 BTC under management) now own 26% of the circulating supply of the cryptocurrency, up from under 20% in August 2018.

This signifies accumulation of almost — if not more than — 1,000,000 coins, implying inflows of hundreds of millions and billions of dollars. It is unclear who is behind these transactions, but as explained by Diar, the size of the wallets suggest big investors.

Well On Their Way

Whether or not institutions are occupying the cryptocurrency market now, one thing is for certain: soon, there will undoubtedly be institutions in this space. Bakkt, the New York Stock Exchange’s sortie into the cryptocurrency space, is soon expected to beta test a Bitcoin futures product that is slated for institutional players. Also, Fidelity Investments, a firm with over 10,000 institutional clients, is still reported to be testing its cryptocurrency custody and trade execution services.

Photo by Samson Creative. on Unsplash

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Binance Launches Margin For Bitcoin, Ethereum, & More

Binance Embraces Margin

Announced just minutes ago, Binance, one of the world’s largest crypto exchanges, has launched margin trading. Per a blog post detailing the new product, this new product is part of Binance’s “effort to help push the industry forward and freedom of money”. Per a quote from the exchange’s beloved CEO, Changpeng “CZ” Zhao, the introduction of margin trading will also help his startup accommodate both “advanced institutional traders and retail traders” under one single roof, this being Binance.com.

For those unaware, margin trading allows investors to leverage their positions, meaning that they can borrow funds from the exchange to increase their risk, and thus return potential. In Binance’s case, users can take on leverage of up to three times their trade size, meaning that if a user has one Bitcoin, they can make a trade as if they had three.

To use this new system, which only is supported on some Bitcoin, Ethereum, Binance Coin, Tron, and Ripple’s XRP trading pairs for the time being, users will need to transfer their funds between their primary Binance wallet and their new margin wallet.

Binance’s unveiling of the newest product in its already rather extensive suite comes hot on the heels of Zhao’s announcement of futures trading. Per previous reports from Ethereum World News, at the Asia Blockchain Summit in Taipei, CZ released a sneak peek of Binance’s futures platform that will support up to 20x leverage.

Per a report on the matter from CoinDesk, the platform will go live “very soon”, but there are no concrete dates just yet. What is confirmed is that a “simulation test version” will be launched in a few weeks, potentially in line with the launch of the more regulated Binance United States.

As analyst Luke Martin notes, Binance will be the first crypto exchange in history to foray into the four types of exchanges: derivatives, regulated spot, unregulated spot, and decentralized exchange. 

This news comes hot on the heels of pro-futures news made by other startups in the space. Announced Monday afternoon, ErisX, a Chicago-based cryptocurrency startup, has secured a “derivatives clearing organization” (DCO) license from the Commodity Futures Trading Commission (CFTC). This gives it the ability to launch physically-delivered Bitcoin futures. Both LedgerX and Bakkt are soon expected to follow suit.

The prominent cryptocurrency startup is soon expected to make a number of more announcements as it turns two. Also, the exchange will soon be booting of clients it has in the United States due to the regulatory concerns, and has opted to create an independent platform for Americans to fill in the gap and capture demand.

Title Image Courtesy of Marco Verch Via Flickr

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‘Future is Here’ Declares CEO as Binance Transfers $1.2 Billion For Under 2 Cents

On June 26, about $1.2 billion in binance coin has been transferred in 1.1 seconds with a $0.015 fee on the binance chain.

On June 26, about $1.2 billion in binance coin (BNB) has been transferred in 1.1 seconds with a $0.015 fee on the binance chain, reveals data published on WhaleAlert, a platform tracking significant transactions.

Earlier today, CEO of major cryptocurrency exchange Binace, Changpeng Zhao, warned that big transactions should be expected. He explained that the exchange intended to split its BNB cold wallet in multiple addresses. After the transaction took place, Zhao cited some data about its cost and speed:

“This transaction: cost $0.015 USD in fees, took 1.1 seconds, and $1.2 BILLION in value transferred. The future is here.”

The exact amount of binance coins moved is 32,888,888. As a Twitter user pointed out, 8 is a number like no other in Chinese numerology, to cite Wikipedia: “the number 8 is viewed as such an auspicious number that even being assigned a number with several eights is considered very lucky.” Zhao answered explaining a curious strategy internal to his company:

“It sort of signals it’s not a hack, hackers will drain a wallet and not go for a lucky number.”

Binance also recently moved 9,001 bitcoin (BTC) to back its BTC-backed token on binance chain.

As Cointelegraph reported earlier this week, trading pairs for USDSB have been listed on Binance Chain-based decentralized exchange Binance DEX.

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United States Residents Will Lose Access to Many Altcoins Starting in September

Many cryptocurrencies will be unavailable for trade in U.S. after Binance updates scheduled for September.

Crypto enthusiasts living in the United States will have no trading options for a many cryptocurrencies when the major crypto exchange Binance becomes unavailable for them in September, according to a report by CryptoPotato on June 14.

The report draws this conclusion based on the following table, which shows which cryptocurrencies will still available for U.S.-based traders after Binance discontinues its U.S. service:

Former Binance options in the U.S. on other crypto exchanges

Former Binance options in the U.S. on other crypto exchanges. Source: Goomba’s Twitter

The foregoing exchanges listed are Coinbase, Bittrex, Poloniex, Kraken, HuobiUS, and eToro.

The report also highlights that, in addition to the cryptocurrencies with no trading outlet in the U.S.—the all-white rows—there are also a number of tokens listed on only one exchange after Binance drops off, including ARK, BTT, IOTA, PIVX, and ZIL.

These “endangered” exchange tokens, as well as the (temporarily) extinct tokens, will likely witness a large drop in volume, according to the report.

However, veteran cryptocurrencies such as XRP, DASH, XLM, ETC, ZRX, and ZEN should survive Binance’s departure with little issue, since they are listed on four or more of the aforementioned exchanges.

As recently reported by Cointelegraph, Binance updated its terms of use on June 14 to exclude trading on the platform in the U.S., which comes shortly after its announcement of a U.S.-exclusive fiat-to-crypto exchange.

Binance CEO Changpeng Zhao (CZ) remarked on the recent changes, implying that the restructuring will be useful in the long run:

“Some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”

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Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform

Binance’s updated terms of use notably includes a restriction of services to U.S.-based individual and corporate traders.

Major crypto exchange Binance announced today, June 14, that it has updated its terms of use, which notably includes a restriction of services to United States-based individual and corporate traders. The restriction follows yesterday’s news that the company is launching a separate, fully regulated fiat-to-crypto platform for the U.S. market.

Today’s announcement provides a timeline for the new terms to come into effect, specifying that:

“After 90 days, effective on 2019/09/12 [12th September 2019], users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com.”

While the use of a virtual private network could ostensibly allow U.S. users to circumvent the new restrictions, withdrawals for non-verified users remain capped at up to 2 bitcoin (BTC) per 24 hours— worth $16,482 to press time. Sums above this threshold would require users to provide evidence that they are complying with the platform’s Terms of Use.

In a tweet published yesterday, Binance CEO Changpeng Zhao (CZ) said of the new exchange’s evolving global structure:

“Some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”

Earlier this month, it was reported that the decentralized exchange (DEX) developed by Binance will use geo-blocking to restrict website access to users in 29 countries, including the U.S.

As Cointelegraph has previously reported, CZ revealed in September 2018 that the company intends to launch five to ten fiat-to-crypto exchanges — two per continent — within one year, without specifying the exact locations.

The firm has to date launched fiat-crypto platforms in Uganda, Singapore and Jersey, with support for a limited range of cryptocurrencies.

As reported yesterday, Binance is establishing its U.S. platform in partnership with BAM Trading Services, which is approved by the Financial Crimes Enforcement Network (FinCEN).

In June, Binance revealed that it would be issuing its own stablecoins pegged to different fiat currencies, but with the exception of the U.S. dollar.

In the wider crypto sector, the Huobi Group — operator of the flagship Huobi Global crypto exchange — launched a U.S.-based strategic partner trading platform last year, initially dubbed HBUS, but later rebranded to Huobi.com.

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Pompliano’s Advice to Roger Ver, Changpeng Zhao, and Soon Mark Zuckerberg?

Leadership

Stanford Professor and Lean Startup pioneer Steve Blank say that great CEOs share some common personality traits. They all are tenacious and passionate, but they strangely operate best in chaos. Mark Pompliano, the CEO of Morgan Digital, could not agree more. He recently tweeted that “The best founders are comfortable in chaos.”

Watching fantastic CEOs like Changpeng Zhao, work around the chaos that has engulfed their businesses, it is evident that navigating turbulence successfully can be a prerequisite in business. The Binance hack that led to the loss of 7,000 BTC worth at least $40 million at the time, for instance severely shook the crypto sphere. It came at a time when cryptocurrency prices had begun to arise from their log crypto winter slumber.

The hackers employed viruses and phishing techniques to access the exchange’s hot wallet, taking off with at least 2 percent of Binance’s BTC holdings. The hackers also helped themselves to some two-factor authentication codes as well as some API keys. Consequently, deposits and withdrawals at the world’s largest crypto exchange were halted. The Binance chair as if on cue, however, put a stop to any resultant fallout by first of owning up to his exchange’s failure.

Changpeng Zhao’s Expensive Lesson

He called it an “expensive lesson” one the exchange
would learn from, especially since they promised to pay back their clients all
the stolen BTC from their own pockets. The CEO also took it upon himself to
make continuous 4-hour interval updates on the ongoing operation to enhance
security. Then again, in a scheduled AMA, he informed his audience that he
studied every tinge of his behavior microscopically looking for a moment for
weakness.

Zhao, notwithstanding, was a picture of serenity in the midst of chaos which played a significant role in keeping the Binance reputation intact. In the end, Zhao said that the hack was a blessing in disguise for the exchange.

Steve Blank says disarray, demands, and deadlines hardly affect
the output of great business leaders. They actually find their composure and
courage when everyone and everything else is out of order. They are the ones
that step up to the plate and forge on. Roger Ver also known as Bitcoin Jesus’s
hard fork that forked brought on so much chaos with it that it almost engulfed
his BCH network in flames.

Roger Ver’s Hard Fork That Forked

In fact, the effect of the infighting was so adverse that the token dropped from the realm of mid-large caps, and there were fears that his users would sell off due to the instability.  His opponent, Craig Wright of team BSV, then made a vow to strangle all the other forks to ensure that his chain survived by using hash power to mete a 51 percent on the Bitcoin ABC chain.

When the hash war commenced, the BSV camp had more than 57 percent
of the hash power on the BCH network before the fork. They were therefore loud
and boisterous and downright intimidated the BCH fans. Once the hash rate
conflict kicked off; though, it was evident that team ABC had the upper hand
instead.

Roger Ver was able to defend his token’s protocol against the threats from Craig Wright. The BCH hash war is one of the best examples today of the need for leadership that operates firmly holding on to the vision amid chaos.

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Ripple Supporter Arrington Impressed, Will Binance Adopt xRapid?

Binance xRapid Ripple

Binance CEO Changpeng Zhao has hinted that the exchange plans to partner with Ripple and leverage its XRP solution–xRapid. This is certainly significant because Binance is the world’s largest exchange by adjusted volumes moving billions in trading volumes on a daily basis. This alliance is mutually beneficial for both sides. This is because Binance is looking to improve its market share and presence. On the other hand, xRapid is a rapid transaction catalyst suitable for institutional use. The fact that Binance now has Over the Counter (OTC) trading makes it even better.

What xRapid Does

For starters, xRapid is a solution that use XRP for liquidity in key markets. This means that banks that use XRP as a bridge currency can have faster payments and lower transaction costs. Meanwhile, Ripple is a rapid transactions platform that can fundamentally transform the cross-border transactions.  This solution is, therefore, an extension of that vision.  The Ripple website describes xRapid as follows:

The Ripple website describes xRapid as
follows:

‘’xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. XRapid dramatically lowers the capital requirements for liquidity.’’

Accordingly, this solution will give payment providers and such financial institutions low-cost liquidity. This is more so for emerging markets where payment providers need pre-funded local currency accounts worldwide. As such, xRapid lowers capital requirements for liquidity.

Binance – xRapid Link

Binance has not offered precise details of this partnership and the CEO only addressed the position that the exchange intends to leverage xRapid.  Zhao said:

“We’re focused on launching more features right now, so we are working with a number of other partners. With xRapid, there’s nothing going on right now, but in the future, we’ll definitely want to add them as a partner.”

Ripple will certainly add to its list
of exchange partners with Bittrex and Bitstamp already on the list. This means
that xRapid can extend its cheaper, on-demand payment to more institutions.
Notably, Ripple strives for regulatory compliance
meaning its international partners can move funds without necessarily having
fiat reserves.

The only problem thus far is the ambiguity around XRP and whether it is a security or a utility. If the latter is true then it’s only a matter of time before payment processors like Ramessa Online adopt xRapid as XRP soar. That said, Binance will need fiat options as the exchange is only crypto-to-crypto at the moment. This is a change the exchange will make through Binance Jersey.

Michael Arrington take on xRapid

There few people more upbeat about this development than Michael Arrington. He is a partner at Arrington Capital and former editor-in-chief at Tech Crunch. The serial entrepreneur has created one of the largest crypto hedge funds denominated in XRP. Even though Ripple is not officially involved in the fund, this is a development they certainly approve of.

Arrington touts XRP as a way to
effectively reduce tribalism in crypto space. This is because cryptocurrency
should not be limited to coin communities. Moreover, the extreme distrust for
centralized institutions is something XRP advocates like Arrington are dismayed
with. This is because to them, crypto is above all else a technology that
developers can use to improve services in all sectors. XRP is, in fact, doing
more to bring crypto closer to people than most other cryptocurrencies ever
could.

As such, Arrington reacted with excitement to the news of the Binance–xRapid partnership. This will improve fortunes for XRP and allow more people interested in cryptocurrency to experience the utility solution.

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TrustToken Partners With Binance to Enable In-Exchange TUSD Minting and Redeeming

TrustToken, the stablecoin operator behind usd-pegged token TUSD, announced a partnership with Binance.

TrustToken, the stablecoin operator behind usd-pegged token trueusd (TUSD), announced a partnership with major cryptocurrency exchange Binance in a press release shared with Cointelegraph on June 4.

Per the release, as a result of the partnership, Binance users now will be able to buy TUSD for zero fees and redeem it for fiat currency.

A TrustToken representative told Cointelegraph in an email that they are “bringing a direct fiat-to-crypto onramp/offramp to Binance” to users following registration in their app. The spokesperson further noted that Binance also listed the paxos standard (PAX) stablecoin.

The spokesperson also claims that “at this time only TrueUSD is technologically capable of allowing users to purchase and redeem directly from their exchange wallets once they’ve registered in our app.” In May, Paxos announced that its users can now instantaneously redeem unlimited amounts of its tokens for United States dollars.

Furthermore, TrustToken co-founder and CEO Jai An promised that the firm “will be rolling out many more solutions to easily purchase and redeem TrueUSD.”

Binance CEO Changpeng Zhao commented on the development:

“We’re excited to be working with TrustToken to make purchasing and redeeming stablecoins both easy and secure.”

As Cointelegraph reported in April, TrustToken will release four new stablecoins this year that are pegged to Australian dollars, euros, Canadian dollars and Hong Kong dollars.

Yesterday, Binance’s chief financial officer told Bloomberg that the exchange will reportedly issue its own stablecoins within two months. Earlier this week, Binance reportedly revealed that they would be testing a British pound-backed stablecoin.

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Fake News Circulating in China Suggested to Be Responsible for Bitcoin SV Price Surge

Crypto investment firm Primitive Ventures co-founder Dovey Wan suggested that fake news may be responsible for yesterday’s BSV price surge.

Co-founder of cryptocurrency investment holding firm Primitive Ventures Dovey Wan suggested that fake news circulating in China may be responsible for yesterday’s bitcoin sv (BSV) price surge. Wan posted about the fake news in a tweet on May 29.

According to Wan, a screenshot circulating on Chinese social media showed a fake article about self-proclaimed bitcoin creator Craig Wright having transferred 50,000 bitcoin (BTC) from the biggest bitcoin wallet in existence to cryptocurrency exchange Binance. According to the report, the transfer would be proof that Wright is Satoshi Nakamoto and created bitcoin.

The fake report posted by Wan also claims that Binance CEO Changpeng Zhao reacted to the development by promising to re-list BSV and publicly apologize. As Cointelegraph reported in April, Binance had previously delisted the altcoin in question, apparently because of Wright’s behavior in claiming to be Satoshi.

Wan commented stating that, while she does not know how much the alleged fake reports contributed to the price surge, “this fake news snapshot went viral in many Chinese retail groups around the same time.” She also claimed that people who believed the news “got super excited,” and added:

“CHINESE RETAIL IS THE BEST HERD EVER”

Another Twitter user contradicted this last idea, stating that many retail investors know that some news — even when fake — can lead to a price surge and see it as a trading opportunity. The user concluded: “I disagree that Chinese retail is more of a herd than any other geography.”

Bitcoin sv is currently the eighth-largest cryptocurrency by market cap, worth a little over $3.9 billion in total with growth of over 30% in the 24 hours to press time, according to CoinMarketCap data.

As Cointelegraph recently reported, Craig Wright has filed United States copyright registrations for the bitcoin white paper authored by Satoshi Nakamoto.

However, an analysis released by Cointelegraph earlier this month notes that the legal validity of Wright’s copyright filings are an object of dispute.

The U.S. Copyright Office had responded on May 22 to the response over Wright’s new claim by releasing a press statement noting that “as a general rule, when the Copyright Office receives an application for registration, the claimant certifies as to the truth of the statements made in the submitted materials.” The author of the release concluded:

“The Copyright Office does not investigate the truth of any statement made.”