Bitcoin, May 22nd
The worst still yet to come?
There are a few most likely potential causes for this steep drop in price being discussed, as there always are. The downward price action seemed to begin with a strange and unexpected tweet from Elon Musk, announcing Tesla would no longer accept Bitcoin for vehicle purchases...
Elon ... you realize that 75% of miners use renewable energy, right?— Pomp 🌪 (@APompliano) May 12, 2021
This energy story has been debunked over and over again.
Always do your own investment research..Don’t risk what you can’t afford to lose… Who is actually buying Tesla cars with BTC anyways???
Elon either wasn’t aware of BTC mining energy usage during past support of BTC, or simply was not interested in highlighting it’s energy use or any related ecological concerns up until now. Nor did he lend much to the idea of Bitcoin mining actually incentivizing green energy usage. For whatever reason, the negative headline was thrust into the spotlight once more.
Trolling BS projections like this. Bitcoin gets exponentially more efficient per capita as it gets bigger, while the incentives push for greener energy.— Willy Woo (@woonomic) May 21, 2021
Meanwhile mainstream media ignore the competing USD Petrodollar regime which has kept renewables from developing for 50 years. pic.twitter.com/X4GJgRb6w5
Before getting too bearish based on rich celebrity crypto tweets, maybe worth checking in with a few long time crypto enthusiasts with years of knowledge and experience.
Along with the ongoing extensive over leveraging, much of the same old Chinese FUD being reiterated before the market could recover from Musk’s environmental tweets certainly didn’t help matters. The cumulative cryptocurrency market cap proceeded to fall to beneath $1.5 trillion over the course of the following days, a drop of over $1 trillion from the peak of $2.5 trillion reached in early May. Matters have been even worse for alt coin prices. Which was actually good for current BTC market dominance, but not much else!
Ethereum May 18th
Look out below!
Ethereum experienced a massive drop over the course of hours, if that long. After reaching a peak of over $4,300 the second largest crypto by market cap fell over 50% in price in just over 1 week. After such an epic run up should we really be totally surprised?
“These overleveraged positions bring vulnerability to the market, making it excessively sensitive to negative news flow. A combination of statements coming from Vitalik Buterin, Elon Musk, and Chinese authorities in a space of a week was sufficient to trigger a market correction. This was exacerbated by a cascade of auto liquidations of overleveraged positions on crypto exchanges, which amounted to over $9 billion in 24 hours, one of the largest volumes of liquidations ever.”
Though the correction has been as steep as many alts, Ethereum is not just another alt coin any longer. Sure it’s been a dramatic week, but no reason to lose sight of the bigger picture.
Check out HODL Wave chart detailing Bitcoin held in wallets grouped by the age since they last moved at woobull.com
In addition to the pain of the sell off experienced by all long BTC holders, many users attempting to transact on centralized exchanges experienced issues. Many Coinbase, Binance, and Robinhood users reported they were either subjected to extremely high gas fees, or left completely unable to trade at all during the sell off and rebound buying.
Just to be clear: I do not think $60K was the top, far from it, because I do not see the kind of transactions that normally happen after an ATH (red dots). In fact, I think we are just a couple of months out of the bear market (blue dots). And yes, this on-chain view fits S2F(X). pic.twitter.com/omLh23MsrX— PlanB (@100trillionUSD) May 18, 2021
Another fan of on-chain analysis, PlanB’s popular Stock-to-Flow (S2F) model also still seems to be well intact.
In other bullish fundamental news, the Chief Investment Office of Singapore's largest Bank, DBS, made a case for Bitcoin as a more effective store-of-value asset than US-based fiat.
“Indeed, the exponential rise in Bitcoin prices are rivaled only by the meteoric expansion in the balance sheets of the largest global central banks around the world – the US Federal Reserve, the European Central Bank (ECB), the Bank of Japan (BOJ), as well as the People’s Bank of China (PBOC).
Such trends would unequivocally drive demand for alternative currencies, even unorthodox digital forms that would potentially represent a store of value more faithfully than physical dollars would.”
With the drop continuing to new lows as we close this article, what better way to complete the circle than another tweet from ‘The Dogefather’.
What would we do without you Elon?
Some clients who participated in the March trading promotion may see an inaccurate bonus payment displayed in their transaction history. Our team is working on a fix and the proper amounts will be reflected shortly.— BlockFi (@BlockFi) May 15, 2021
‘Inaccurate bonus payment’ Hmm, ok. Doesn’t sound too serious..
In a statement sent to CoinDesk and also shared on Reddit, a BlockFi spokesperson said that on May 17, fewer than 100 clients were incorrectly credited with cryptocurrency associated with “a promotional payout that did not belong to them.”— Zac Prince (@BlockFiZac) May 19, 2021
No- we mistakenly credited a bunch of BTC in accounts but only sent a couple hundred BTC to <100 clients before it was caught. The amount at risk is a fraction of the BTC we own with equity capital and a fraction of loss reserves we carry for this exact purpose— Zac Prince (@BlockFiZac) May 19, 2021
Really?! That’s pretty wild. Certainly not a great thing to find out about BlockFi if you are an active investor / participant on their custodial platform. Imagine signing into your BlockFi account to be surprised with this.
Of course the mistake transactions were to be reversed, which should be easily achieved within their centralized custodial service platform. Except, a handful of users who felt compelled enough actually were able to move their funds off of the platform before the reversal could be completed. Apparently there was more than enough time!
“(It was fewer than 100, the company said.) The firm’s exposure is around $10 million, though that amount is decreasing as more users return the coins, said Zac Prince, co-founder and chief executive officer of BlockFi.”
“BlockFi carries loss reserves as part of its accounting policies and this is a fraction of existing loss reserves -- so no negative impact to equity or ongoing platform operations,” Prince wrote by email. “The issue that caused the withdrawals was fixed and incremental safeguards have been developed to prevent any similar issue in the future.”
News really began to spread once links to an /r Bitcoin post as well as multiple twitter users began to share their stunning screenshots. This playing out during a clear downtrend across the crypto market was not helpful!
The amateurs over at @BlockFi apparently paid some rewards in BTC instead of stablecoins, leading to rewards such as this one (+701 BTC). They now send threatening emails to their own customers or get sued. Financial advice based on our in-depth due diligence: never use @BlockFi. pic.twitter.com/aFYkQXzFY9— The Financer (@TheFinancer) May 19, 2021
This is actually the first time I’ve taken a closer look at BlockFi. Good a time as any to see just what they are all about right?
‘BlockFi’s vision is to bridge the worlds of traditional finance and blockchain technology to bring financial empowerment to clients on a global scale.’
Some of these might not track so well with this incident and its handling.
The nature of BlockFi’s business of course makes a mistake like this one a big red flag for current and future potential investors. It must feel pretty deflating to have what appears to be an incredible windfall taken away. Of course, this was a mistake which didn’t entitle these users to keep these ‘mistaken’ funds. Still, I expect many BlockFi users, affected or not, must think a little differently about the custodial service now. Anyone on the fence about utilizing their services must now take a serious pause and wonder ‘How could a mistake like this happen, and what else might be mismanaged by BlockFi?’
On Tuesday, a person named Shappy, the apparent head of WoR took off with $2 million from RETH and FAIRMOON. Both coins were associated with WoR; RETH was a coin started by WoR after Vitalik donated $1 billion worth of SHIB, and FAIRMOON was a SAFEMOON copycat that WoR promoted. WoR said that FAIRMOON had “No backdoors or possible from the owner perspective.”
SHAPPY, EX LEADER OF WOR, HAS BETRAYED FAIRMOON AND RETH AND SCAMMED BOTH THE FAIRMOON AND WOR COMMUNITIES— FAIRMOON🌒 (@fairmooncoin) May 19, 2021
WE HAVE WORKED SO HARD TO MAKE A DIFFERENCE AND CULTIVATE A STRONG COMMUNITY, AND HE BETRAYED US.
WE ARE DEEPLY SORRY FOR THE LOSSES WE ARE ALL EXPERIENCING RIGHT NOW
It seems like WoR did this rug all to teach us a lesson about our greed.
Throughout WoR’s time on Twitter, they made many enemies by calling out suspicious coins that many had in their wallets. This led to many people celebrating and posting memes about the hypocrisy of WoR. One of the most vocal communities about this was the SAFEMOON because of the campaign WoR launched on the coin.
One of the biggest criticisms about WoR is that most of the coins they did go after did not result in a rug pull. The effects of WoR advising against a coin were tremendous as their advisories could dampen a new project and would not allow them to grow.
Proof of History (POH) — a clock before consensus;
Tower BFT — a PoH-optimized version of PBFT;
Turbine — a block propagation protocol;
Gulf Stream — Mempool-less transaction forwarding protocol;
Sealevel — Parallel smart contracts run-time;
Pipelining — a Transaction Processing Unit for validation optimization
Cloudbreak — Horizontally-Scaled Accounts Database; and
Archivers — Distributed ledger store
With these invitations, Solana claims to have solved the blockchain trilemma; they say the blockchain is secure, fast, and decentralized. The Solana network is theoretically designed to reach 710,000 transactions per second and have 100-millisecond block times but has only reached 65,000 transactions per second and 400-millisecond block times. These speeds make it the fastest blockchain in existence.
One of the biggest arguments to Solana’s claim of solving the blockchain trilemma is its decentralization. So far, the number of validators on the blockchain is low and has caused concern. One reason that can be drawn from the low number of validators is the high cost of hardware required to become one.
More and more projects are starting on SOL and are releasing airdrops. This increase in activity is due to the super low gas fees, and high transaction speeds the chain offers. As a result, there are literally hundreds of airdrops happening each week on Solana. If you are interested in these airdrops, I suggest looking at Twitter user Crypto_world1 for regular SOL airdrops updates.
How to claim SOL Airdrops:— Airdrop Season SOL (@Crypto_world1) May 15, 2021
- Create new wallet at https://t.co/tJfLkap2uU
- Have few $SOL in your https://t.co/tJfLkap2uU wallet (for creating new addresses for airdrops). Its not airdrop fee its wallet fee.
- Fill Airdrop form
- Add mint address in https://t.co/tJfLkap2uU
The number of airdrops that are on Solana is insane, and it will be fun to see if any of these coins actually materialize and be worth something.
Working under the pseudonym Dexamol, his personal practice peers into a world of synthetic nature, where cybernetic animals integrate themselves into our spinal columns, live alongside us in cities, or migrate out into traditionally native habitats. Producing short animations and digital images that celebrate high detail, Dexamol’s art bypasses engendered dichotomies such as natural vs artificial, real or unreal, presenting a not-so-distant future where these binaries have collapsed.