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Some Asian Traders Are Using Polkadot to Predict Bitcoin’s Future

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As prices for bitcoin and other cryptocurrencies continue to surge this year, many traders are looking for any indicator for when – or if – the bull market will come to an end. Some are convinced they have the answer: They are examining polkadot (DOT), the native token of the Polkadot blockchain, as a potential canary in the coal mine for cryptocurrency.

As of press time, polkadot’s price was at $12.49, up 12.40% in the past 24 hours, according to Messari. It reached its all-time high of $13.22 during early trading hours in the U.S., just six days after bitcoin’s price reached a new all-time high.

(Shuai Hao, CoinDesk Research)
Source: Nomics

(Shuai Hao, CoinDesk Research)
Source: Nomics

The market capitalization of Polkadot has surpassed XRP and litecoin and is now the fourth-biggest cryptocurrency by market cap, according to Messari’s asset tracker.

Following in the 2017 footsteps of EOS

Those using polkadot to prognosticate bitcoin’s price point to parallels with another altcoin, EOS.

Sources who spoke to CoinDesk as well as social media users, especially on Chinese-language platforms, see parallels between the 2017 bull market prices of bitcoin and EOS, the native cryptocurrency for the EOS.IO blockchain platform. They said Polkadot, a project started by Ethereum co-founder Gavin Wood and considered to be one of the so-called “Ethereum killers,” shares similar features and goals of the EOS.IO project, which was also born with the ambition of replacing Ethereum.

A screenshot of a Jan. 14 post on Weibo (China’s Twitter) that claims polkadot is one of the so-called “marketing-oriented” tokens that could give retail investors a chance to make “quick money” right after the bitcoin’s bull run. “If you miss the opportunity now, there won’t be a chance for you to get rich fast after the bull market ends,” it wrote in Chinese.
(Weibo)

A screenshot of other posts on Weibo show warnings from some crypto users in China about Polkadot’s potential downfall, citing its similarities to EOS in 2017’s bull run.
(Weibo)

After bitcoin’s price reached its peak in 2017’s bull run, many investors and traders took their profits and moved them into tokens like EOS, a period of time now called “alt season.” Prices for EOS reached an all-time high at the end of April 2018, after which “crypto winter” was said to have started.

Claims that EOS and bitcoin prices were related in 2017 and 2018 are contentious. 

“Correlation, not causation,” said Terry Wilkinson, chief executive officer at the Tokyo-headquartered investment firm Anchor Value. EOS “was the latest greatest pie-in-the-sky protocol at that time and as such garnered a lot of hype during that cycle. The bull run did not end because EOS stopped pumping. It was kind of the poster child for that run.”

Block.one created EOS.IO in September 2017. The blockchain provides a platform for developers to create decentralized apps (dapps) with the promise of improved scalability compared with Ethereum. The project was also known for its initial coin offering (ICO), which ran from summer 2017 to June 2018, arguably the longest-running ICO in history. 

With a large amount of its tokens being turned over to hedge funds to manage and make the majority of the investments in the building the EOS.IO ecosystem, traders and investors took EOS’s price as an indicator of capital inflows to crypto at the time. When EOS’s price stopped pumping, many took it as a sign to exit the market.

Read More: EOS Revisited: Investors Take Another Look at the Longest-Running ICO

EOS.IO “failed to catch up to Ethereum’s position and hype,” Jason Kim, chief investment officer at Anchor Value, added. “Speed alone did not persuade enough people to buy into EOS’ rosy projections.”

Polkadot’s bull case in 2020’s bitcoin rally

Similar to EOS.IO, Polkadot is touted as a promising blockchain that may replace Ethereum’s dominance. It particularly caught the attention of many savvy digital asset investors when decentralized finance (DeFi) exploded in the past summer.

Most DeFi projects are built on the Ethereum blockchain, the second-largest blockchain, which is thought of as a “world computer” due to its versatility and programmability. Yet, some projects have chosen Ethereum alternatives for better scalability and end-user experience, with Polkadot being one of the more popular ones.

As a result, just as many investors back in 2017 were making bets on EOS.IO for its promise to grab market share from Ethereum at the time, investors now have shown a “strong” appetite for Polkadot’s DOT, as CoinDesk reported two months ago.

Read More: As DeFi Grows, Investors Look to Polkadot to Be the Next Ethereum

With that said, many have expressed their doubts about DOT’s possible correlation with bitcoin’s latest bull run. The main drivers of this round are significantly different from 2017, which were then stirred up by retail investors for the ICO boom.

These days, the market has mostly agreed that large institutional investors and the explosive DeFi sub sector took off in the past summer are the primary power behind the latest bull market.

Read More: DeFi Is Hot but Retail Interest Nowhere Close to ICO Frenzy

The logic behind the two bull runs are completely different, according to Simons Chen, executive director of investment and trading at Hong Kong-based crypto lender Babel Finance. Investors who bought bitcoin in this round have not been taking profits from many altcoins such as polkadot.

“[DOT] certainly fills the same slot as EOS did last bull run,” Wilkinson said. “There are parallels to draw since [Polkadot] probably has the highest expectations as the new chain on the block, but my opinion is that this bull run is different than the last mainly because of the involvement of institutional money that was largely vacant during the 2017 run.”

And unlike the ICO boom, many traders and analysts say, the fast-growing realm of DeFi – semi-autonomous exchanges and lenders – has shown much more potential with an ambitious goal to replace the traditional financial world one day.

Indeed, while the “summer of DeFi” cooled down, the sector still remains quite active. Multiple DeFi tokens have seen double-digit growth in the past few days. Brian Brooks, the outgoing acting head of the U.S. Office of the Comptroller of the Currency (OCC), wrote in a Financial Times op-ed about a future of “self-driving” banks backed by the DeFi sector.

Thus the rapid price growth in DOT could just be a reflection of the DeFi’s continuing growth, as well as new upgrades and improvements on the project.

Denis Vinokourov, head of research at Bequant, said a recently released 2021 roadmap by SushiSwap, a decentralized exchange which includes an integration with Polkadot, could be the reason why DOT’s price has been up.

Prices for SushiSwap (SUSHI) also have surged since the announcement, up 14.63% in the past 24 hours to $5.5 at the time of writing, according to Messari.

Disclosure

Source: https://www.coindesk.com/asia-traders-bitcoin-polkadot-prediction

Blockchain

Southeast Asia’s first Bitcoin fund launches to meet local institutional demand

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The Malaysia-based BCMG Genesis Bitcoin Fund-I, or BGBF-I, has officially launched, claiming to have become the first insured institutional crypto product available in the Southeast Asian region.

An announcement states the fund launched in response to a growing demand for institutional crypto products in Southeast Asia. The fund leverages an Artificial Intelligence (AI) powered blockchain-based platform provided by Calfin Global Crypto Exchang, which purports to offer increased security for customer holdings.

BGBF-I is regulated in Labuan, Malaysia, where IBH Investment Bank serves as the fund’s main advisor. Professional financial services provider, Hong Kong-based Alpha Calibration, will provide regulatory compliance services, and be audited by HLB Hodgson.

The investment vehicle also offers insurance coverage and underwriting for Public Offering Security Insurance.Fund Manager, Subbu Vempati explained:

“BGBF-I is a secure, insured and regulated platform where investors can get exposure to the Digital Assets industry. Investors get to benefit from our expertise in the financial, technical, and security aspects of Bitcoin investments, as well as enter this class with a peace of mind without any challenges or risk in directly handling the Digital Asset.”

According to its official website, the BGBF-I Fund projects a minimum return of 12% per year, while noting that BTC itself has gained 266.5% over the past 12 months.

All accredited Asian investors must go through mandatory Anti-Money Laundering (AML) and Know Your Customer (KYC) screenings to access the fund.

The Bitcoin fund is one of many that have been recently launched to address growing institutional appetites BTC and other digital assets. In mid-February, the first physically settled North American Bitcoin ETF was approved in Canada. Grayscale’s Bitcoin Trust also continues to grow, with its assets under management recently tagging $39.8 billion.

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Source: https://cointelegraph.com/news/southeast-asia-s-first-bitcoin-fund-launches-to-meet-local-institutional-demand

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Former DC comic book artist fetches $1.85M auctioning Wonder Woman NFTs

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José Delbo, an artist who illustrated the comic book series Wonder Woman during the late 1970s, has made $1.85 million in an auction selling non-fungible tokens, or NFTs, depicting the popular heroine.

The 87-year-old Argentian, who also worked on Batman, Transformers, and The Beatles‘ Yellow Submarine comic book, collaborated with Milan-based crypto art duo Hackatao to produce the NFT drop, dubbed “Heroines.”

In total, 914 individual NFTs were auctioned, with the tokens each featuring one of seven illustrations or animated gifs depicting Wonder Woman in scenes invoking themes relating to the empowerment of women.

The tokens auctioned included two one-of-a-kind editions, four “open limited editions— where an unlimited amount of NFTs can be minted only while the auction is ongoing, and one edition for which no more than 10 copies could be sold.

The most expensive piece sold was “Heroines – Weight of the World,” an animated gif that illustrates Wonder Woman holding the world against a backdrop invoking themes of empowerment. The bidder “888” got their hands on the piece for a total of 88.888 Ether, worth approximately $136,000.

Screenshot of ‘Heroines – Weight of the World’

The open edition, “Heroines – Stand Out” , spanned 10 copies in total, with two being reserved for the artists, seven given away to raffle winners. The last remaining copy was auctioned for 15 Ether, or roughly $23,000. All proceeds from the sale were donated to Girls Who Code, an organization that works to closi the gender gap in the tech industry.

Heroines – Shine Bright” was the highest performing open limited edition, with a total of 151 copies selling for a combined total of $450,000.

José Delbo illustrated the Wonder Woman comics between 1976-1981 and is no stranger to the crypto world, holding a week-long exhibition of his comic book art in the Ethereum-based virtual reality world Decentraland during July 2020.

Comic book characters are increasing in popularity in the crypto art markets, with Marvel officially launching a Spiderman NFT that sold for $25,000 in February of this year.

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Source: https://cointelegraph.com/news/former-dc-comic-book-artist-fetches-1-85m-auctioning-wonder-woman-nfts

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Blockchain

TA: Bitcoin Rallies above $52K, Why BTC Could Soon Hit $55K

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Bitcoin price rallied over 5% and it even broke the $52,000 resistance against the US Dollar. BTC is now above $53,000 and it is likely to continue higher towards $54,500 and $55,000.

  • Bitcoin extended its rise above the $51,500 and $52,000 resistance levels.
  • The price is now trading well above $52,000 and the 100 hourly simple moving average.
  • There was a break above a key resistance trend line at $52,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct a few points, but it is likely to find support near $52,800 and $52,000.

Bitcoin Price Extends Increase

Yesterday, we saw a fresh increase in bitcoin above the $50,000 resistance zone. BTC remained in a bullish zone and it was able to extend gains above $52,000 after a short-term downside correction.

The bulls gained strength, resulting in a strong push above $52,000. There was also a break above a key resistance trend line at $52,800 on the hourly chart of the BTC/USD pair. The pair cleared the 76.4% Fib retracement level of the key decline from the $52,748 swing high to $46,350 swing low.

Bitcoin is now trading well above $52,000 and the 100 hourly simple moving average. The price is trading nicely above the $53,000 level and it is likely to continue higher.

Bitcoin

Source: BTCUSD on TradingView.com

An immediate resistance is near the $54,000 level. The first key resistance is near the $54,250 level. It is close to the 1.236 Fib extension level of the key decline from the $52,748 swing high to $46,350 swing low. The next major resistance for the bulls is near the $55,000 level. Any more gains could lead the price towards the $58,000 resistance zone and the all-time high.

Dips Supported in BTC?

If bitcoin starts a downside correction, it is likely to remain well bid above $52,000. An initial support on the downside is near the $53,000 level.

The first key support is near the $52,700 level and the broken trend line. Any more downsides might call for a test of the main $52,000 support zone in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.

Major Support Levels – $53,000, followed by $52,700.

Major Resistance Levels – $54,000, $54,250 and $55,000.

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-btc-could-soon-hit-55k/

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