Bank of America Corp. Chief Executive Officer Brian Moynihan’s total compensation declined 6.3% to $30 million for his work in 2022, a year in which profit tumbled and the shares sank. The board granted Moynihan $1.5 million in salary and $28.5 million in stock-based incentive awards, the Charlotte, North Carolina-based lender said Friday in a […]Continue Reading
Orica Selects Cognizant to Accelerate Development of a Digital Platform to Report Greenhouse Gas Emissions
Cognizant will implement a digital platform designed to monitor and forecast emissions in real-time, and help develop its new ESG data strategy, reporting and governance model TEANECK, N.J., Feb. 5, 2023 /PRNewswire/ — Cognizant has extended its relationship with Orica, a leading manufacturer of commercial explosives and innovative blasting systems, to deliver an ESG data […]Continue Reading
The move by the alliance of conservative donors could provide an enormous boost to a Republican alternative to the former president. The donor network created by the billionaire industrialist brothers Charles G. and David H. Koch is preparing to get involved in the presidential primaries in 2024, with the aim of turning “the page on […]Continue Reading
Multiyear deal complements Hendrick Motorsports relationship, focuses on creating even greater fan experiences and advancing inclusivity in racing LOS ANGELES, Feb. 5, 2023 /PRNewswire/ — Ally Financial Inc., along with officials from NASCAR, today announced a league-wide sponsorship, expanding the brand’s presence in the sport, having Ally Bank become the Official Consumer Bank of NASCAR and […]Continue Reading
After the impressive rally in January, Bitcoin (BTC) seems to be taking a breather in February. This is a positive sign because vertical rallies are rarely sustainable. A minor dip could shake out the nervous longs and provide an opportunity for long-term investors to add to their positions.Has Bitcoin price bottomed?The opinion remains divided, however, on whether Bitcoin has bottomed out or not. Some analysts expect the rally to reverse direction and nosedive below the November low while others believe the markets will continue to move up and frustrate the traders who are waiting to buy at lower levels.Crypto market data daily view. Source: Coin360In an interview with Cointelegraph, Morgan Creek Capital Management founder and CEO Mark Yusko said “the crypto summer” could begin as early as the second quarter of this year. He expects risk assets to turn bullish if the United States Federal Reserve signals that it will slow down or pause interest rate hikes. Another potential bullish catalyst for Bitcoin is the block reward halving in 2024. Could the altcoins continue their up-move while Bitcoin consolidates in the near term? Let’s study the charts of Bitcoin and select altcoins that may outperform in the next few days.BTC/USDTBitcoin has been gradually correcting since hitting $24,255 on Feb. 2. This indicates profit booking by short-term traders. The price is nearing the strong support zone between $22,800 and $22,292. The 20-day exponential moving average ($22,436) is also located in this zone, hence the buyers are expected to defend the zone with all their might.BTC/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that bulls have the edge. If the price turns up from the support zone, the bulls will again attempt to catapult the BTC/USDT pair to $25,000. This level should act as a formidable resistance.On the downside, a break below the support zone could trigger several stop losses and that may start a deeper pullback. The pair could first drop to $21,480 and if this support also fails to hold up, the next stop may be the 50-day simple moving average ($19,572).BTC/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the price is trading inside an ascending channel but the RSI has been forming a negative divergence. This suggests that the bullish momentum may be weakening. A break and close below the channel could tilt the short-term advantage in favor of the bears. The pair could then fall toward $21,480.Alternatively, if the price rebounds off the support line of the channel, the bulls will again attempt to kick the pair above the channel. If they manage to do that, the pair may resume its uptrend.ETH/USDTEther (ETH) has been trading near the $1,680 resistance for the past few days. Usually, a tight consolidation near an overhead resistance resolves to the upside. ETH/USDT daily chart. Source: TradingViewWhile the upsloping 20-day EMA ($1,586) indicates advantage to buyers, the negative divergence on the RSI suggests that the bulls may be losing their grip. If bulls want to assert their dominance, they will have to propel and sustain the price above $1,680. If they do that, the ETH/USDT pair may rally to $1,800. This level may again act as a resistance but if bulls do not allow the price to dip below $1,680, the rally may stretch to $2,000.Instead, if the price turns down and plummets below the 20-day EMA, the ETH/USDT pair could tumble to $1,500. This is an important support level to monitor because a bounce here could keep the pair range-bound between $1,500 and $1,680. On the other hand, if the $1,500 support cracks, the pair may dive to $1,352.ETH/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears have pulled the price below the 20-EMA. This is the first indication that the bulls may take a step back. There is a minor support at the 50-SMA but if it fails to hold, the pair may slide to $1,550 and then to $1,500.Conversely, if the price turns up from the moving averages, the bulls will again attempt to thrust the pair above the overhead resistance. If they succeed, the pair may resume the uptrend.OKB/USDTWhile most cryptocurrencies are well below their all-time high, OKB (OKB) hit a new high on Feb. 5. This suggests that bulls are in command.OKB/USDT daily chart. Source: TradingViewSome traders may book profits near the overhead resistance of $44.35 as it may act as a formidable resistance. If the price turns down from the current level but rebounds off the 20-day EMA ($37), it will suggest that bulls continue to buy the dips. That could increase the possibility of a break above $45. The OKB/USDT pair could first skyrocket to $50 and thereafter to $58.If the price turns down and breaks below the 20-day EMA, it will indicate that the traders may be rushing to the exit. The pair could then drop to $34 and later to the 50-day SMA ($30).OKB/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are trying to protect the $44.35 level. The pair could turn down and reach the moving averages, which is an important support to keep an eye on. If the price bounces off the moving averages, the bulls will again try to overcome the barrier at $45 and start the next leg of the uptrend.Contrarily, if the price breaks below the 50-SMA, the selling could intensify and the pair may slump to $36 and then to $34. Such a move could delay the resumption of the uptrend. Related: Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?ALGO/USDTAlgorand’s (ALGO) recovery reached the breakdown level of $0.27 on Feb. 3. The bears defended this level but the bulls have not given up much ground. This suggests that the bulls expect the relief rally to continue.ALGO/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA ($0.24) and the RSI in the positive territory indicate that bulls have the upper hand. If the price turns up from the 20-day EMA, the likelihood of a break above $0.27 increases. The ALGO/USDT pair could then travel to $0.31 where the bears may try to offer strong resistance.If the price turns down from this level but bounces off $0.27, it will suggest that the downtrend could be over in the short term. The pair could then attempt a rally to $0.38.This positive view could invalidate in the near term if the pair turns down from the current level and slides below $0.23. The pair could then dive to the 50-day SMA ($0.21).ALGO/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are guarding the $0.27 level but a minor positive is that the bulls have not allowed the price to stay below the 50-SMA. If the price turns up from the current level, the bulls will again try to clear the overhead hurdle. If they do that, the pair could pick up momentum and surge toward $0.31.Contrary to this assumption, if the price continues and breaks below the moving averages, the pair risks a drop to $0.23. The bears will have to smash this support to gain the upper hand.THETA/USDTTheta Network (THETA) successfully completed a retest of the breakout level on Feb. 1, indicating that bulls have flipped the downtrend line into support.THETA/USDT daily chart. Source: TradingViewThe bulls will try to push the price to the overhead resistance at $1.20. This level may act as a minor hurdle but if bulls do not give up much ground from $1.20, the THETA/USDT pair could extend its up-move to $1.34. This is an important level for the bears to defend because if this resistance crumbles, the pair could soar to $1.65.If bears want to stop the bulls, they will have to quickly pull the price back below the 20-day EMA. The pair could then fall to $0.97 and later to the 50-day SMA ($0.89).THETA/USDT 4-hour chart. Source: TradingViewThe pair bounced off the $0.97 level, which becomes an important level to watch out for on the downside. A breach of this level is likely to tilt the advantage in favor of the bears and open the doors for a possible drop to $0.85.The rally is facing resistance near $1.20 but the upsloping 20-EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers push the price above $1.20, the momentum should pick up for a rally toward $1.34.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Continue Reading
Confidential Letters Follow Public Request on December 19, 2022 Funds can be Returned by Contacting Special Email Account at “[email protected]” WILMINGTON, Del., Feb. 5, 2023 /PRNewswire/ — FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the “FTX Debtors”), today announced the FTX Debtors are sending confidential messages to political figures, political action funds, and […]Continue Reading
COMP IMPORTANT DEADLINE TUESDAY: ROSEN, NATIONAL INVESTOR COUNSEL, Encourages Compound DAO Investors with Losses to Secure Counsel Before Important February 7 Deadline in Securities Class Action – COMP
NEW YORK, Feb. 5, 2023 /PRNewswire/ — WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers and acquirers of Compound DAO tokens (COMP), on or after December 8, 2021, against defendants Compound DAO, Robert Leshner, Geoffrey Hayes, AH Capital Management, LLC, Polychain Alchemy, LLC, Bain Capital Ventures (GP), LLC, Gauntley Networks, Inc., […]Continue Reading
When the financial system or the economy as a whole undergoes a rapid and large decline, it is said to be in a financial crisis. Financial assets like stocks, bonds, and real estate often see a sharp and significant decline in value during financial crises. They can also be identified by a decline in credit availability and a loss of faith in financial institutions like banks.Related: DeFi vs. CeFi: Comparing decentralized to centralized financeFinancial crises can be caused by a variety of factors, including:Overleveraging: When people, businesses, and governments take on excessive debt, they put themselves at risk of a financial collapse.Asset price bubbles: When the cost of an asset, such as a home or stock, rises quickly, it can lead to a financial crisis when the price falls sharply.Bank runs: When enough customers attempt to withdraw money from a bank at once, the institution may become insolvent and shut down, triggering a financial crisis.Financial institution mismanagement: Financial institutions that are poorly managed may become bankrupt or fail, which could trigger a financial catastrophe.Economic recessions: A financial crisis can result from an economic recession, which is defined by diminishing economic activity and growing unemployment.This article will discuss the global financial crisis (GFC) of 2007-08, its main causes, and how the financial crisis impacted the economy.What is a global financial crisisThe global financial crisis of 2007–2008 was a major financial crisis that had far-reaching impacts on the global economy. A housing market bubble, unethical subprime mortgage lending practices, and the overproduction of sophisticated financial products like mortgage-backed securities all contributed to its cause.The subprime mortgage market in the United States, specifically, served as the catalyst for the 2007–2008 global financial crisis. Loans with risky lending terms and high interest rates were given to borrowers with bad credit records under the phrase “subprime mortgages.” A housing market bubble in the US was brought on by the rise in subprime mortgage loans and the subsequent marketing of these loans as securities. Many borrowers were unable to make mortgage loan payments when the housing bubble eventually burst and prices started to plummet, which sparked a wave of foreclosures. The value of mortgage-backed securities decreased as a result, and the global financial system experienced a liquidity crisis, which set off the GFC of 2007–2008.Due to the crisis, home prices significantly dropped, there were a lot of foreclosures, and the credit markets were frozen. This in turn sparked a financial crisis that required government intervention and bailouts, as well as a global recession. The crisis’ effects were felt on a global scale, causing widespread economic distress as well as a fall in employment and economic growth.What are the main causes of the global financial crisisThe financial crisis spread quickly over the world as a result of the financial markets’ globalization and the links between financial institutions and nations. The following are the primary reasons for the global financial crisis of 2007–2008:Subprime mortgage lending practices: Banks and other financial institutions made riskier loans, referred to as subprime mortgages, to consumers with bad credit. These loans were frequently packaged and offered for sale as securities, which inflated the housing market.Lack of regulation: The absence of regulations in the financial sector led to the emergence of complicated financial products that were challenging to evaluate and comprehend, such as mortgage-backed securities, credit default swaps, and risky lending practices.Housing market bubble: In the US, a housing market bubble was brought about by subprime mortgage lending combined with the marketing of these debts as securities. Housing values decreased as the bubble eventually burst, and many borrowers found themselves unable to make mortgage loan payments.Credit market freeze: Credit markets became frozen as a result of the decrease in the value of mortgage-backed assets, making it impossible for financial institutions to acquire capital and resulting in a liquidity crisis.Related: How Security Tokens Can Prevent an Impending Financial CrisisWhat are the consequences of the global financial crisisThe consequences of the global financial crisis of 2007–08 were far-reaching and long-lasting. Some of the most significant impact of global financial crisis on world economy include:Economic Global recession brought forth by the crisis was defined by a sharp decline in economic activity, dropping output, and rising unemployment.Several sizable financial institutions failed as a result of the banking crisis, which necessitated government intervention in the form of bailouts and recapitalizations.Housing price decline: The US housing price slump that caused a large drop in household wealth and a wave of widespread foreclosures served as the crisis’s catalyst.Rise in public debt: Public debt increased as a result of numerous governments’ interventions to maintain their financial and economic systems.Political repercussions: The crisis led to a decline in confidence in the government and financial institutions and fueled the emergence of populist and anti-globalization views.Financial sector reforms: The crisis led to significant changes in the financial industry, such as more rules and oversight, which are intended to lower the likelihood of future financial crises.Was Bitcoin a response to the global financial crisis of 2007–08?Bitcoin was partially created as a response to the global financial crisis of 2007-08. The financial crisis brought to light the weaknesses of the established financial system and the risks of reliance on centralized financial institutions. The creator(s) of Bitcoin (BTC), who went by the alias Satoshi Nakamoto, created the digital currency with the intention of building a more secure and stable financial system that was not vulnerable to the same kinds of hazards as the conventional financial system. The invention of Bitcoin and the emergence of cryptocurrencies and blockchain technology that followed are considered a rejection of the existing financial system and a direct response to the negative effects of the global financial crisis of 2008.The public ledger that contains records of every transaction on the Bitcoin network makes it simpler to track and keep tabs on the movement of money. This aids in the suppression of dishonest behaviors, including insider trading, market manipulation, and other unethical actions.Continue Reading
Ethereum layer 2 scaling solution StarkWare announced plans to open source its proprietary Starknet Prover under the Apache 2.0 license, which has processed 327 million transactions and minted 95 million nonfungible tokens (NFTs) to date. The prover is the crucial engine Starkware uses to roll up hundreds of thousands of transactions and compress them into a tiny cryptographic proof written on the Ethereum blockchain.“We think of the Prover as the magic wand of Stark technology. It wondrously generates the proofs that allow unimaginable scaling,” said Eli Ben-Sasson, president and co-founder of Starkware.Eli Ben-Sasson presenting at the Starkware sessions 2023. Source: CointelegraphStarkware has faced criticism from the crypto community and competing solutions such as ZK Sync and Polygon for holding onto the IP behind its tech, which contradicts blockchain’s open source and interoperable ethics. Making the prover open source under the Apache 2.0 license will enable any other project or network — or even games or database developers — to make use of the technology, edit the code and customize it. The tech was released in 2020 and is already being used by ImmutableX, Sorare and dYdX.A sneak peek of the Starkware sessions 2023. Source: CointelegraphAvihu Levy, Starkware’s head of product, was reluctant to commit to a time frame for open-sourcing the prover but said it would occur after the token launch and decentralization of Starknet itself. He agreed, however, that it would be possible this year. “We want to move forward with a decentralized, permissionless network and that means that you need to have this critical component out there,” he revealed speaking to Cointelegraph.Levy said the decision to open source the prover showed Starkware was increasingly confident about its technology and said it would also enable projects to be more confident about using it as a crucial part of their protocols. “In StarkEx, it’s sometimes considered vendor lock-up or lock-in. So the commitment wasn’t just a business commitment it was a technology commitment to StarkEx,” he explained. “This is a strong signal that you will have everything you need to run it yourself independent of Starkware.”Starkware has already open-sourced its programming language and EVM competitor Cairo 1.0, Papyrus Full node and is in the process of open-sourcing its new sequencer. Related: StarkNet overhauls Cairo programming language to drive developer adoptionBen-Sasson launched the Starkware Sessions conference in Tel Aviv on Sunday, which organizers said was the largest layer 2 conference held so far. “This is a landmark moment for scaling Ethereum,” he told about 500 developers and guests. “It will put Stark technology in its rightful place, as a public good which will be used to benefit everyone.”Continue Reading
Bitcoin (BTC) could face a retest of $20,000 and the United States fail its plans for a “soft landing” on inflation, new analysis says.In a YouTube update on Feb. 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, warned that the tide is due to turn for risk assets.U.S. “probably” headed for recession — Van de Poppe Amid confusion over how incoming U.S. macroeconomic data may affect market sentiment, there is an increasing chance that the rebound seen in crypto and stocks this year may flip bearish, Van de Poppe says.Bitcoin, for example, put in 40% gains in January, but like some others, he believes that a disappointing February is a real possibility.“I think that people should understand that there is no soft landing, that there is likely a continuation of this downwards trend on the markets,” he said about the longer-term status quo.The U.S., Van de Poppe continued, would “probably have” a recession thanks to the extent of the Federal Reserve’s interest rate hikes.Should a comedown begin to show itself, for BTC/USD, a potential retest target lies between $20,000 and $21,000.Much depends on the outcome of Consumer Price Index (CPI) data for January, due Feb. 14. Should it show that inflation is slowing less than expected or even disrupting that downtrend, the results could benefit the U.S. dollar while taking the wind out of the risk asset rally.The U.S. dollar index (DXY), as Cointelegraph reported, is currently in the process of consolidating after dropping 13% since mid-2022, when it circled twenty-year highs.“In this case, the next week will probably bring a case of the dollar starting to rally, or the week after with CPI and PPI, so that’s why it’s very important to keep an eye on this chart,” Van de Poppe added.U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingViewBitcoin bears “stuck in cash”Ahead of a less significant macroeconomic week, meanwhile, others continued to debate the potential for a BTC price pullback.Related: Bitcoin clings to $23.5K as trader says BTC ‘identical’ to 2020 breakoutA higher low would provide a better entry point for longs, popular trader Crypto Tony suggested, arguing that the bear market remained in play”Even if this was the start of a bull market, and personally I am still in the camp we are not You can still get a good safer entry on the higher low pullback,” he told Twitter followers on the day.Some familiar bullish voices were as active as ever, however, including cypto and market education, analysis and prediction tool, IncomeSharks.”People still seem to be confused as to why it’s been up only,” it summarized in a tweet on Feb. 3. BTC/USD traded at around $23,400 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, with around 15 hours until the U.S. weekly close.”Just remember majority of bulls are still holding and not selling. Bears are stuck in cash. Slowly but surely the bears are caving in and buying. The stubborn ones keep shorting driving price up further.”BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewThe views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.Continue Reading
Over the last 14 years, investors have been attracted to Bitcoin (BTC) for many reasons — from being a potential solution to the economic woes of the existing fiat economic system to reaching the unbanked and diversifying portfolios. However, a large portion of the general public sees Bitcoin as a gateway to financial freedom amid growing fiat inflation and geopolitical uncertainties.Traditional banking systems have, time and again, served as a tool for centralized governments to dictate financial access, especially during emergencies. Most recently, the Ukraine-Russian war served as a case study for how cryptocurrencies helped the displaced and the unbanked access funds for basic necessities. As intended by the creator Satoshi Nakamoto, Bitcoin seeks to bring power back to the people. No amount of regulations, sanctions or bans can stop people from using Bitcoin as money. Beyond that, a calculated investment in Bitcoin has the potential to bring people closer to attaining their dream of financial freedom. But how can people achieve that?HodlThe massive volatility of cryptocurrencies coupled with the restlessness of an investor is a recipe for an instant loss. Many fail to understand that Bitcoin — unlike other cryptocurrencies — is a long-term investment. Hence, Bitcoin veterans recommend holding the asset during bull markets and buying the dips during bear markets.According to data from UpMyInterest, setting aside a few off-years, Bitcoin holders witnessed a mean annual return of 93.8%, which in its best-performing year, spiked to 302.8%.Historical summary of Bitcoin annual returns. Source: UpMyInterestAs simple as it sounds, hodling (crypto lingo for holding assets) has proved difficult for investors. Some factors that trigger abrupt Bitcoin selling include the spreading of FUD (fear, uncertainty and doubt) and price movements.While it makes sense in the short-term to earn profits off Bitcoin’s volatility, zooming out the price chart reveals a long-term greater incentive in holding. Moreover, investors owning Bitcoin will always have the option to utilize this spending across geographical boundaries without losing value.Dollar-cost averagingConsidering Bitcoin as a viable long-term investment option, many investors tend to implement the dollar-cost averaging (DCA) strategy. This involves setting aside a predetermined dollar amount from a regular income to be reinvested in Bitcoin every day, week or month. While El Salvador was initially criticized for adopting Bitcoin as a legal tender amid crippling inflation, the country could repurpose the resultant unrealized gains to fund social projects, such as building hospitals and schools.With the Bitcoin bull run running out by 2022, Salvadoran President Nayib Bukele followed a strategy similar to DCA, wherein the country would purchase 1 BTC every day.We are buying one #Bitcoin every day starting tomorrow.— Nayib Bukele (@nayibbukele) November 17, 2022When Bukele announced his plan for buying Bitcoin, it was priced roughly at $16,600, as shown by data from Cointelegraph Markets Pro and TradingView. Bitcoin price movement ever since Nayib Bukele announced plans to purchase 1 BTC every day. Source: TradingViewSince then, BTC’s price has surged 40.46%, providing much-needed relief to Salvadorans. Investors looking for financial freedom must pursue a similar strategy while reacting to market changes and public sentiment.Self-custodyWhen it comes to the long-term holding of Bitcoin, the key is not to trust any other third-party entity with the assets’ private keys. Investors who store Bitcoin on crypto exchanges unknowingly give away complete control of their assets. Ever since the FTX fraud came to light, the case of self-custody grew stronger. Investors that suffered losses owing to the alleged misappropriation of funds realized the importance of self-custody. Maintaining ownership of the private key — via self-custodial wallets — becomes paramount for those that seek financial freedom in its truest sense.Will be sending an email every week strongly advising our people to never keep savings on any exchange, including @paxful This is the way ! Self custody your savings ALWAYS! pic.twitter.com/DI95Gaa5Y6— Ray Youssef (@raypaxful) December 11, 2022
The FTX fallout also forced crypto exchanges to prove the existence and safety of users’ funds in order to avoid a low liquidity situation.Binance Releases Proof of Reserves System | Binance Support https://t.co/pdA2OdvAKG— CZ Binance (@cz_binance) November 25, 2022
Although hardware alternatives for crypto self-custody require an upfront investment, it is up to the users to choose an ideal method of storing the private keys, even if it means writing the private keys on a piece of paper.The three practices mentioned above — hodl, DCA and self-custody — form the main pillars of financial freedom. However, users are not limited from trying other strategies that suit their needs.Achieving financial freedom with Bitcoin is possible. Given the nascency of the crypto ecosystem, investors are advised to focus on the long-term benefits of Bitcoin while reaping short-term gains in the process.Continue Reading
This week in ESG news: EU launches green industrial plan to counter US Inflation Reduction Act; California lawmakers propose rule requiring full value chain emissions disclosure from companies; survey finds large majority of companies boosting spend this year on sustainability initiatives despite headwinds; Amazon sets corporate renewable energy record; climate group accuses Shell of greenwashing; […]Continue Reading
UNIVERSAL MUSIC GROUP EXPANDS PARTNERSHIP WITH REVERB DURING MUSIC’S BIGGEST WEEKEND TO RAISE THE BAR FOR ENVIRONMENTAL SUSTAINABILITY FOR MUSIC EVENTS
Speaking on the initiative, California Governor Gavin Newsom said, “At a time when the world is grappling with the dire consequences of the climate crisis, it’s more important than ever for all of us to step up and take meaningful action to reduce our environmental footprint. That’s why I commend Universal Music Group for their […]Continue Reading
SBF bail guarantor to go public, UK crypto framework and Celsius news: Hodler’s Digest, Jan. 29 – Feb. 4
Top Stories This Week
SBF’s $250M bail guarantors should be made public, rules judge
The identities of two individuals who helped former FTX CEO Sam Bankman-Fried with his $250 million bail bond could be revealed next month following a recent ruling by United States District Judge Lewis Kaplan. Bankman-Fried’s legal counsel has until Feb. 7 to contest the decision. As bankruptcy proceedings continue, FTX and affected parties have requested subpoenas for information and documents from close relatives of Bankman-Fried, claiming not all members of his inner circle have responded to requests for information. Other recent news includes Alameda Research suing bankrupt crypto lender Voyager Digital in an attempt to claw back $445.8 million in loan repayments made before FTX collapsed.
UK Treasury publishes crypto framework paper: Here’s what’s inside
The United Kingdom’s HM Treasury published a long-anticipated consultation paper for its upcoming crypto regulation. The document covers a broad range of topics, from algorithmic stablecoins to nonfungible tokens to initial coin offerings. The authority aims to level the playing field between crypto and traditional finance by incorporating digital assets into the U.K.’s Financial Services and Markets Act 2000.
Zooko’s Triangle: The Human-Readable Paradox at the Heart of Crypto Adoption
Play2Earn: How Blockchain Can Power a Paradigm Shift in Building Game Economies
Celsius publishes list of users eligible to withdraw majority of assets
Bankrupt crypto lending firm Celsius came up with a withdrawal process for users who had funds in its custody in June 2022, when the company ceased withdrawals. Celsius released an official update on upcoming withdrawals, providing the list of users eligible to access approximately 94% of qualified custody assets. Users will also receive specific details related to gas and transaction fees associated with the upcoming procedures.
Silvergate faces DOJ investigation over FTX and Alameda dealings
Crypto bank Silvergate is being probed by the United States Department of Justice fraud unit over its involvement with the bankrupt FTX exchange and its affiliates. Investigators are trying to find out how deep the FTX and Alameda Research dealings went with the California-based bank. According to Silvergate, Alameda opened an account in 2018, before the launch of FTX. Silvergate was heavily impacted by the collapse of FTX in November, reporting a $1 billion loss last quarter.
Meta CEO Zuckerberg steadfast on metaverse plans despite $13.7B setback
Mark Zuckerberg, CEO of Meta, said the company plans to remain committed to its long-term strategy for the metaverse despite its Reality Labs business suffering operating losses amounting to $13.7 billion in 2022 — the largest ever yearly losses recorded for its metaverse-building division. The company’s overall revenue for the fourth quarter was $32.1 billion, surpassing Wall Street expectations.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $23,572, Ether (ETH) at $1,661 and XRP at $0.40. The total market cap is at $1.09 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Render Token (RNDR) at 94.86%, dYdX (DYDX) at 45.84% and ImmutableX (IMX) at 43.41%.The top three altcoin losers of the week are UNUS SED LEO (LEO) at -12.30%, eCash (XEC) at -5.50% and Toncoin (TON) at -5.30%.For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Fan tokens: Day trading your favorite sports team
Is the cryptocurrency epicenter moving away from East Asia?
Most Memorable Quotations
“Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”
Changpeng “CZ” Zhao, founder and CEO of Binance
“The fact that both the SEC and CFTC took action against market manipulation by an alleged rogue trader is a credit positive for the industry as a whole.”
Cristiano Ventricelli, assistant vice president of decentralized finance at Moody’s Investor Service
“None of the signals that I’ve seen so far suggest that we should shift the Reality Labs strategy long term.”
Mark Zuckerberg, founder and CEO of Meta
“Behind the scenes, Celsius conducted its business in a starkly different manner than how it marketed itself to its customers in every key respect.”
Shoba Pillay, former federal prosecutor and partner at Jenner & Block
“We believe that Bitcoin mining is being unfairly targeted and double-taxed by the IRS, currently.“
Dennis Porter, CEO of Satoshi Action Fund
“[Bitcoin is] not an effective store of wealth. But we are in a world where money as we know it is in jeopardy.”
Ray Dalio, billionaire investor and entrepreneur
Prediction of the Week
$25,000 Bitcoin now ‘crowded trade’
The Federal Reserve raised interest rates by 0.25% this week, in line with almost all expectations, leading the BTC/USD pair spiking above $24,000 for the second time in as many days, with market participants still hopeful for a trip to $25,000 before a more significant retracement.“BTC has had a clean breakout above its macro downtrend line + a backtest,” investment research resource Game of Trades stated on Twitter, adding that “the next big resistance to clear is the $25k region.”
Pseudonymous trader Crypto Tony acknowledged that the target may no longer materialize. “$25,000 is my main target, but I am seeing now a lot of people asking for this, and is becoming a crowded trade,” he wrote.
FUD of the Week
BonqDAO protocol suffers $120M loss after oracle hack
Decentralized autonomous organization BonqDAO has suffered a smart contract exploit that led to millions of dollars being stolen via an oracle hack that allowed the exploiter to manipulate the price of the AllianceBlock (ALBT) token. An independent analysis from blockchain security firm PeckShield has estimated the loss to reach $120 million, comprising $108 million from 98.65 million Bonq Euro (BEUR) tokens and $11 million from 113.8 million Wrapped AllianceBlock Tokens (WALBT).
Bithumb owner arrested in South Korea over alleged embezzlement
A man suspected of being the real owner of South Korea’s largest crypto exchange, Bithumb, has been arrested for embezzlement. According to prosecutors, he and his brother, head of Bithumb affiliate Inbiogen, colluded to embezzle corporate funds and manipulate the stock prices of Inbiogen. Among other headlines, Spanish authorities have arrested the CEO of Hong Kong cryptocurrency exchange Bitzlato in a joint effort between France, Portugal, Cyprus and United States law enforcement.
Kraken shuts down Abu Dhabi office, suspends support for AED
Crypto exchange Kraken has closed its Abu Dhabi office less than a year after receiving regulatory approval to operate in the region. According to the company, existing users will still have access to the platform using other fiat currencies. Several employees are also expected to remain in the area. The move in the Middle East comes after Kraken announced plans to cut its workforce by 30% — more than 1,000 people — in an effort to survive the crypto winter.
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Businesses have become increasingly competitive in the digital age, and innovative entrepreneurs have taken steps to give their companies an edge. One increasingly popular way of staying competitive is to utilize automation tools. Automation tools can improve the efficiency of almost any business, no matter its size, which can have various benefits such as time […]Continue Reading
Bitcoin (BTC) circled $23,500 on Feb. 4 as bulls refused to give up support in out-of-hours trading.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin price conjures 2020 memoriesData from Cointelegraph Markets Pro and TradingView showed BTC/USD holding a narrow range in place since the Feb. 3 Wall Street open. Macroeconomic data releases from the United States provided modest volatility but no overall trend change as traders bided their time heading into the weekend.Opinions on the longer-term outlook were mixed, however, with some maintaining that there was little reason to trust that Bitcoin’s rally would continue.“Seeing $50,000 calls already on Bitcoin and we have yet to complete a higher high and higher low market structure change,” popular trader Crypto Tony summarized in part of a tweet on the day.More optimistic was fellow trader Credible Crypto, who doubled down on a theory that compared current BTC price action to that of late 2020, just after Bitcoin had passed its old 2017 all-time high.“Price action has developed beautifully off our lows, mimicking the bottom formation that preceded our last impulse from 10k-60k+. Current consolidation (circled in green) also looks identical to PA from that impulse,” he wrote in an update to a corresponding Twitter thread. “BTC may continue to pump while most wait for a pullback…”BTC/USD comparative charts. Source: Credible Crypto/ TwitterOthers were concerned about a turnaround in the fortunes of the U.S. dollar, which could impact risk assets across the board if it were to continue.The U.S. Dollar Index (DXY) was “ringing up alarm bells” for popular trader Bluntz, who revealed a segue into stablecoins.“After such a long and deep sell-off, do we think the DXY is already done on the upside? I don’t. Lotta shorts to squeeze yet,” macro investor David Brady commented about the dollar’s decline from twenty-year highs in Q3 2022.U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingViewRSI poised for “bullish continuation”Focusing on monthly timeframes, meanwhile, trader and analyst Rekt Capital eyed a potential cue for Bitcoin to dip before continuing higher.Related: Bitcoin due new ‘big rally’ as RSI copies 2018 bear market recoveryThis came in the form of its relative strength index (RSI), which in January bounced from all-time lows to reclaim a key support level.While acknowledging that historically, Bitcoin markets “haven’t really seen double bottoms” in RSI, he argued that there was still a chance that a higher low could come next.“Now just reaffirming and keeping these levels consistent and stable — that’s what we really want to see for bullish continuation, ” he concluded in a YouTube video released on Feb. 3.Bitcoin relative strength index (RSI) annotated chart (screenshot). Source: Rekt Capital/ YouTubeA Twitter survey from Rekt Capital likewise delivered a narrow consensus that a dip should come for BTC/USD.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.Continue Reading
2022 was tough for the crypto market. A recent report published by security services platform Immunefi found that the crypto industry lost a total of $3.9 billion in 2022. Detrimental losses such as these are often concerning for crypto investors, yet there may be a silver lining behind decreasing assets for investors reporting crypto on their taxes. Lisa Greene-Lewis, a certified public accountant at TurboTax, told Cointelegraph that while crypto investors made huge gains in 2021, this changed drastically in 2022. “We have seen a crypto winter occur, and TurboTax wants to help investors cope with their losses,” she said. According to Greene-Lewis, tax-loss harvesting is the most important notion to keep in mind when it comes to saving money when filing taxes. She said: “With crypto, you can offset gains with losses. Any leftover losses can be offset up to $3,000 against ordinary income like wages. Losses exceeding $3,000 can be carried forward to the next tax year.”Greene-Lewis explained that as new, young investors enter the crypto market, awareness around tax-loss harvesting is becoming more critical. According to a Pew Research Center survey cited in TurboTax’s latest tax trend report, 16% of Americans have invested in, traded or used cryptocurrency. Individuals between the ages of 25 and 34 are more likely to have cryptocurrency sales transactions than any other age group. “Many of these individuals are unaware of tax-loss harvesting,” Greene-Lewis said.Percentage of tax filers with cryptocurrency transactions. Source: TurboTaxWhile the last day for tax-loss selling for 2022 passed on Dec. 30, Greene-Lewis reiterated that crypto investors can still perform this action since those losses roll forward. Steven Lubka, vice president of Swan Global Wealth — Swan Bitcoin’s private client services arm — further told Cointelegraph that tax-loss harvesting is a great option for Bitcoin (BTC) investors. “This is probably the most actionable tax strategy. Swan Global Wealth works with private clients to provide valuable market insights, yet most individuals did not know that tax-loss harvesting was an option,” he said.Recent: What crypto hodlers should keep in mind as tax season approachesLubka further pointed out that tax-loss harvesting is beneficial because there is currently no “wash sale rule” applied to crypto, which would prevent the tax break if an investor bought that same asset 30 calendar days before or after the sale. “This means that crypto investors can sell their assets and then instantly buy those back while locking in the loss on their taxes.” While this is certainly advantageous, Lubka believes that this process will likely change in the near future.Donating to charity is another way for crypto investors to reduce their taxable income, which can be a good strategy during a bull market. Alex Wilson, co-founder of The Giving Block — a crypto donation platform — told Cointelegraph that donating cryptocurrency is tax efficient because it allows investors to avoid capital gains tax. He said:“If an investor bought Bitcoin at $1 and sold it at current market prices, that would normally be taxed. But if you donate the Bitcoin to a nonprofit, it becomes tax deductible. These deductions are even higher when donated to a 501(c)(3) charity.”Wilson shared that The Giving Block has seen an increasing number of crypto donations over the past year, especially as investors become more aware of the benefits. “I expect this year to be big for donations because crypto is already on the rise,” he said, adding that nonfungible token (NFT) philanthropy is gaining momentum. “The Giving Block has seen almost 30% of its donations coming from NFTs.” According to Wilson, NFT donations function the same as crypto donations. 17.75037 ETH, $28,455.64~ to @FeedingAmerica Approximately 320,000 meals provided so far.https://t.co/yp8grV4pl5— @jackbutcher (@jackbutcher) January 29, 2023Individual retirement accounts, or IRAs, are yet another way for crypto investors to reduce their taxable income. Similar to a 401(k), assets held in traditional IRAs will grow tax-deferred, meaning investors won’t have to pay income tax until assets are taken out.While there has recently been controversy around United State citizens purchasing digital assets using funds in IRAs, Lubka noted that crypto-focused IRA options are improving. For instance, he explained that in the coming weeks, Swan Bitcoin will launch a low-fee Bitcoin IRA accessible to all the platform’s users. “Traditional IRAs charge exorbitant fees. The only yearly fee with Swan’s Bitcoin IRA is .25%,” he said. Such a product is likely to gain traction with crypto investors, with a Charles Schwab survey recently finding that many zoomers and millennials would like to have crypto as part of their 401(k) retirement plans. Things to consider moving forwardAlthough there appear to be several benefits associated with reporting cryptocurrency when filing a tax return, there is still a lack of awareness among many crypto investors. To put this in perspective, the “2023 Annual Crypto Tax Report” from CoinLedger — a crypto and NFT tax software company — found that 31% of investors surveyed did not report their crypto on their taxes, with half not doing so because they didn’t make a profit and 18% not even knowing crypto was taxable. David Kemmerer, co-founder and CEO of CoinLeder, told Cointelegraph that the Internal Revenue Service and other government agencies need to provide better guidance to educate crypto investors about taxes. For instance, he pointed out that it’s important for crypto holders to understand how the 2021 infrastructure bill may impact the crypto tax reporting landscape.According to CoinLedger’s 2023 report, the 2021 infrastructure bill will likely result in “cryptocurrency brokers” having to send 1099-Bs — a specific type of 1099 that reports capital gains and losses from securities or properties — to the IRS for the 2023 tax year. As of now, crypto tax reporting rules detailing such procedures have been delayed because the IRS still needs to develop the definition of a “crypto broker.”Recent: Bitcoin’s big month: Did US institutions prevail over Asian retail traders?Pat White, the CEO of Bitwave — a crypto tax, accounting and compliance platform — further told Cointelegraph that crypto investors should be concerned that the IRS might impose wash trading rules in the future. However, he noted that there are still options for tax-loss harvesting in the case of this scenario. “Investors could find ways to exit their coin positions into different assets. For example, Bitcoin could go into wrapped Bitcoin, which could satisfy the wash trading rules but would also harvest a loss,” he explained. White further remarked that individuals running an Ethereum 2.0 node are technically receiving rewards daily. As such, he noted that these users would have to consider whether or not rewards would be recognized as income in 2022. This will become critical following the Shanghai upgrade allowing for the withdrawal of staked Ether (ETH). He said:“The Shanghai fork will eventually drop, and people will be able to withdraw rewards. If you are reporting your taxes correctly, you will want to recognize this as income. However, users may be able to make advantageous tax decisions depending on when they want to recognize those rewards.”This article does not contain investment advice or recommendations for tax report. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Continue Reading
On a recent visit to Sri Lanka, American billionaire Tim Draper pitched the idea of adopting Bitcoin (BTC) as a legal tender to fight against the corruption that contributed to hyperinflation in the island country. However, a key Sri Lankan authority — central bank Governor Nandalal Weerasinghe — believed doing so would worsen the country’s economic situation.Taking time from a TV shoot in Sri Lanka, Draper met President Ranil Wickremesinghe and Weerasinghe to recommend Bitcoin as a viable option for getting out of financial problems. Tim Draper in Sri Lanka speaking about economic development. Source: YouTubeDuring the meeting, Draper pointed out a key concern staring right at Sri Lanka:“Have you seen Sri Lanka in the news? It’s known as the corruption capital. A country known for corruption will be able to keep perfect records with the adoption of Bitcoin.”As he recommended using “decentralized currency” to the head of Sri Lanka’s central bank, he received a short “we don’t accept” reply. Weerasinghe further stated:“Adoption of 100% Bitcoin won’t be a Sri Lanka reality ever.” Instead, Weerasinghe believed that having Sri Lanka’s own fiat currency was critical for monetary-policy independence and would ensure efficient inclusion and disburse electronic welfare payments.“We don’t want to make the crisis worse by introducing Bitcoin,” Weerasinghe concluded.Related: Australia introduces classification for crypto assetsMicroStrategy, a software analytics company co-founded by Michael Saylor, shared plans to continue offering BTC trading services despite incurring an unrealized loss of $1.3 billion in 2022.During a Feb. 2 earnings call, MicroStrategy’s chief financial officer, Andrew Kang, said:“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy.”According to Kang, MicroStrategy held 132,500 BTC (worth $1.84 billion) as of Dec. 31, 2022. Of the lot, 14,890 BTC were held directly by the business and the rest by its subsidiary MacroStrategy.Continue Reading
The world must take a ‘collective action’ approach to regulations – suggests India’s Finance Minister
India’s Finance Minister, Nirmala Sitharaman, suggested that regulation “cannot be done” by a single country, it requires an international effort, in a recent television interview.Speaking to Rahul Joshi on CNBC-TV18 in India on Feb. 3, Sitharaman noted that while the central bank is the “authority for issuing cryptocurrency,” the rest of the digital assets created outside are “using very useful financial technologies.”Sitharaman said that India is looking at a “global” standard operating procedure (SOP) to be “agreed upon” for regulating crypto assets, ahead of India hosting the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru later this month.She suggested that for crypto regulations to be effective it requires global consensus. She noted:“Regulation cannot be done by any one country singularly, it has to be a collective action because technology doesn’t group any borders.”Related: India cooperates with IMF on crypto consultation paperThis comes after the news that Sitharaman didn’t mention any changes to income tax laws in relation to crypto, central bank digital currency or blockchain technology in the union budget on Feb. 1.There have been numerous developments on crypto regulations by various countries within the G20 in recent times.The Australian Treasury released a consultation paper on Feb. 3 on “token mapping.” Despite the paper not providing any legislative initiatives, its authors suggested tailoring existing laws for a large portion of the crypto ecosystem.The Bank of France’s governor Francois Villeroy de Galhau stated during a speech in Paris on Jan. 5 that France shouldn’t wait on EU crypto laws, and instead take action on licensing “as soon as possible.”Brazil and Argentina are having their own discussions about creating a “common currency” together, in order to reduce dependance on the U.S. dollar.Meanwhile Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), believes that the Chinese government should reconsider its ban on cryptocurrency trading, suggesting it may not be sustainable in the long run.Continue Reading
Several crypto firms have made job cuts this week amid the ongoing crypto winter, retaining “impactful” employees as they prepare for a “longer downturn.”At least 216 jobs were slashed between three crypto firms – open-source software laboratory Protocol Labs, blockchain data firm Chainalysis and U.S. cryptocurrency exchange Bittrex, with reductions of 89, 83 and 44 employees respectively.Juan Benet, CEO of Protocol Labs, the parent company of Filecoin (FIL), announced the job cuts in a blog post on Feb. 3 stating that the company has had to focus its headcount “against the most impactful and business critical efforts.”He stated that the company’s decision to cut “89 roles,” approximately 21% of its workforce, was to ensure it is well positioned to “weather this extended winter.”Benet suggested that the company must “prepare for a longer downturn,” given it has been an “extremely challenging” time for the crypto industry.Meanwhile Bittrex employees were informed by CEO Richie Lai over email on Feb. 1 that the company has made a reduction to its workforce to “ensure the long-term viability” of the company.The email was leaked via Twitter on Feb. 2, in which Lai stated that despite the leadership team “working aggressively” to reduce expenses and increase efficiencies over the last several months, the efforts have not produced the “results necessary.”Lai added that the market conditions have forced the company to reset their strategy and balance its “investments with the new economic environment.”According to Washington State employment data on Feb. 2 it was revealed that Bittrex cut 83 jobs.Related: Crypto recruitment execs reveal the safest jobs amid layoff seasonMaddie Kennedy, director of communications at Chainalysis, told Forbes on Feb. 1 that those “primarily in sales” at the company were let go, as 44 of its 900 employees, approximately 4.8% of the workforce, were slashed.These layoffs come after news that at least 2,900 staff were cut across 14 crypto firms in January.Coinbase had the largest layoffs amongst those firms, cutting 950 of its staff on Jan. 10.Meanwhile competitor exchanges Crypto.com, Luno and Huobi had reductions of approximately 500, 330 and 320 staff respectively.Cointelegraph reached out for comment from Protocol Labs, Chainalysis and Bittrex but did not receive a response by the time of publication.Continue Reading