The rise of nonfungible tokens, or NFTs, has been nothing short of astounding this year. Google searches for “NFT” are up over 600% since mid-February, hitting initial coin offering mania levels, and the top NFT platforms are turning over millions of dollars each day.
In a single 24-hour period earlier in March, sport collectibles platform NBA Top Shot saw sales of more than $7.89 million, art house OpenSea took in $4.88 million, and “digital antique” NFT project CryptoPunks netted $3.28 million.
The mainstream media is showing more interest in NFTs than it has in crypto for years, with publications from the BBC to The New York Times running explainers and the odd hit piece. Prices certainly look frothy, with Beeple’s “Everydays” selling at Christie’s for almost $70 million, Jack Dorsey auctioning the first-ever tweet for $2.9 million, and an Alien Crypto Punk changing hands for $7.57 million. Established artists including Banksy and Damien Hirst have jumped onto the trend, along with musical acts Kings of Leon, 3Lau and Aphex Twin.
(Alien Crypto Punk, Larva Labs)
At various points, the crypto community thought that either fast, cheap payments; decentralized finance, or DeFi; or the attraction of “hard money” might bring in the masses — it turns out the great unwashed are more interested in owning a JPG.
Colin Goltra, who co-founded the NFT-based Narra Art Gallery in Decentraland, says this is a very good thing, as NFTs are bringing new demographics into crypto, outside of the usual finance and tech types.
“Suddenly we’ve got this fresh blood of people exploring the space with new eyes,” says Goltra, who also heads up Binance Philippines, adding: “It’s refreshing to interact with new community members — you’re really inspired by the art, you have a lot of fun, and it’s kind of like a game to collect.”
“Make sure you’re getting some combination of that stuff out of it too because if you’re just treating this as financial speculation, honestly, there’s probably other games in town for that.”
So, how do you get involved? Magazine spoke to some of the leading experts in the field to find out.
A unique opportunity to acquire by way of nifty NFT, this jpeg of me blowing a kiss. £40 million seems reasonable, but I’ll take £30 million to expedite a quick sale. The jpeg is infinitely reproducible, but the proof of purchase, being non-fungible, will be yours & yours alone! pic.twitter.com/oM2LJSWa3X
— Stephen Fry (@stephenfry) March 12, 2021
How do you spot value in an NFT?
Unlike DeFi protocols, where you can value a project by comparing its revenue and growth potential to the price of its token and its total value locked, the value of most NFTs is highly subjective, and sentiment can turn in an instant. Earlier this month, CryptoKitties were changing hands for an average price of $1,263. By later in March, that had fallen to $115.
It’s also important to understand what you’re actually paying for. With digital art, for example, an NFT gives you ownership of a unique token linked to the art, similar to a certificate of authenticity. But you don’t own the copyright of the art, nor do you get a physical copy of it, and it doesn’t stop anyone else from copying or viewing it.
Australian dance music producer Flume sold a music and animation NFT, “Saccade,” for $66,000, despite retaining the copyright to the music and leaving it freely available for anyone to watch on YouTube. Castle Island Ventures founder Nic Carter likens buying an NFT to getting an autographed print:
“What I’m buying is effectively a digitized version of a signed setlist after a gig, or a signed, limited edition album cover. As I jokingly put it, the NFT should be understood as the autograph, not the art.”
The blockchain on which the NFT is minted also affects the price, with users paying a premium for Ethereum-based NFTs, given that the network is secure, decentralized and expected to be around for a while. But the choice of blockchain is less of an issue with in-game assets (which may need a faster blockchain) or with something like NBA Top Shot (which uses Flow), as it’s the only place you can buy licensed NBA memorabilia.
Different categories of NFTs — including art, music, in-game items, virtual land and collectibles — have different value drivers, explains Andrew Steinwold, managing partner of NFT investment fund Sfermion.
He says that in-game assets derive value from their utility — a sword with 10 times the power of the average sword should fetch a higher price, for example — while virtual land is priced according to “location content and parameters.” Crypto art’s value is based mainly on an artist’s reputation, while collectibles “derive their value from the narrative that surrounds the asset.”
Across all categories, scarcity and uniqueness help drive value — provided there is demand, of course. “Collectibles often come in various editions which vary by size and have rarity tiers. First editions in a project’s series typically command a premium,” explains Delphi Digital research analyst Alex Gedevani. “Even better if there’s historical significance and/or strong narrative behind it like CryptoPunks, the first NFTs.”
Alien and Ape Punks are the most prized CryptoPunks. For the blockchain-based game Axie Infinity, where users raise and battle fantasy creatures called Axies, “The scarcest, most valuable Axies are Mystic Axies,” says Jiho Zirlin, co-founder of Axie creator Sky Mavis. “They have rare limited skins and these skins will have a deeper evolutionary tract than other Axie body parts.”
On NBA Top Shot, sport “Moments” with low serial numbers fetch higher prices, as do those where the serial number matches the player’s jersey number. A collector recently turned down a $1 million offer for a moment with a #1 serial number, which matched player Zion Williamson’s jersey number, #1.
We have news of the first $1 Million offer for an @nba_topshot moment!
It was for the #1 and Jersey Match S1 Holo Zion Williamson.
— OwnTheMoment (@OwnTheMomentNFT) March 11, 2021
The NFT art scene is perhaps the easiest for newcomers to understand. Just as in the real world, well-known artists with bigger social followings command higher prices than newcomers. Make sure to look at an artist’s overall volume of work: Someone pumping out 10 NFTs per day may soon saturate the market. Counterintuitively, however, big-name artists can actually launch a lot more work than others.
NFTs can be released in editions of 10, 50 or even hundreds of copies — similar to a real-world artist running off 500 prints and hand-signing them — or they can be released as unique, standalone one-of-one editions.
As you might expect, the one-of-one editions are the most highly prized, and that’s why Goltra focuses almost exclusively on them. “I do like the idea that I can be the unique owner of beautiful imagery, or a beautiful piece of art,” he says.
What should investors avoid?
A big red flag comes up for projects that are only in it for the money, and Gedevani cautions against “carbon copy clones of successful projects like CryptoPunks and Hashmarks” along with “celebrity NFTs that appear to be quick money grabs off their audiences.” He doesn’t mention Lindsay Lohan or Paris Hilton by name, but he probably doesn’t have to.
Another trap is buying stolen art. Russian artist WeirdUndead was outraged to find her stolen work up for sale on OpenSea after someone automatically tokenized it using Tokenized Tweets. She tweeted:
— don’t give up, skeleton (@WeirdUndead) March 9, 2021
It’s an ongoing problem, given how simple it is to mint NFTs now. Visual artist Rosa Menkman likewise discovered that four of her artworks had been tokenized using another website called MarbleCards and auctioned on OpenSea. Apart from the ethical issues, it’s hard to see stolen NFT art maintaining value if its creator disavows it.
Even when the art is authentic, Steinwold says it’s important to assess the background and motivation of the person issuing an NFT:
“Are they some famous athlete that learned about NFTs last month? Or are they someone that has been in the NFT ecosystem for years and has thoughtfully crafted assets with a compelling narrative?”
Steinwold may be thinking of NFL star Rob Gronkowski, who sold $1.8 million worth of NFT memorabilia on OpenSea.
In the blockchain gaming world, Zirlin recommends steering clear of hyped-up but substance-free new projects, or as he puts it: “Chasing the new hot thing, trying to be early to a bad project rather than joining a more established project with potential.”
In the art scene, Goltra avoids NFT platforms that aren’t highly selective about the art they carry, such as OpenSea and Rarible. While he says large open platforms such as these are great for new artists and investors, they present logistical problems.
NON-FUNGIBLE ELONS pic.twitter.com/KZDpYGVWvz
— beeple (@beeple) March 16, 2021
“There’s just so much work that you have to sift through to find anything of quality,” he says. He prefers platforms with “filters,” including SuperRare — which only offers one-of-one single editions — Nifty Gateway and Foundation.
Miko Matsumura, general partner at Gumi Cryptos Capital, recommends avoiding pretty much everything. “Almost everything in NFT will be worthless in the future,” he says, with limited exceptions for those that can be authenticated as having historical significance, such as CryptoKittes or NBA Top Shot collectibles. “Don’t buy stuff that has no historical value from sources that have no authority,” he warns.
Is a potential financial return the best way to approach NFTs?
In a word, no. Those with whom Magazine spoke agreed that collectors with a genuine interest in a category are the most likely to turn out to be successful in this nascent industry. “If someone is heading into a collectibles market with the intention of flipping for profit but doesn’t understand the nuances of the project, chances are it may not end well,” says Gedevani, adding:
“We are still largely in the experimental phase with collectibles across many categories like sports, avatars, game items and more. It’s better to focus on niches that genuinely interest you and where you can find an edge.”
Gabby Dizon, co-founder of Yield Guild Games and Narra Gallery, says we’re still so early in the NFT game that it’s very difficult to gauge potential financial returns. A better strategy is “to first buy something you would not mind owning for the next five years,” with one eye on factors that might see the value increase, like “scarcity, desirability, aesthetics and utility.”
That way, even if the market tanks, you still own an NFT you like. For Goltra, “The financial stuff is secondary,” adding: “There are pieces I could purchase as speculative plays but I don’t because it’s not the purpose for me. I just try to buy art that I like or that speaks to me in some way.”
I will be burning over $4million of art tonight. pic.twitter.com/B0gks8c4ni
— Mad Dog Jones (@Mad_Dog_Jones) March 16, 2021
Are some NFTs undervalued/overvalued right now?
Mike Winkelmann, the artist known as Beeple, certainly thinks prices are too high at present, telling Fox News: “I absolutely think it’s a bubble, to be quite honest. I go back to the analogy of the beginning of the internet. There was a bubble. And the bubble burst.”
Matsumura believes that “All types of NFTs are overvalued right now” and likens the space to a lottery, where the winners win really big and get all the publicity while “the vast, vast majority of people will be losers,” economically speaking.
Goltra is also keenly aware the NFT mania could fizzle out, taking those high price tags with it. “I know we’re not immune to market cycles, the way that the rest of the crypto space is,” he says. “And so, I know that there’s a version of this where any media that we’re doing right now, you know, whenever this next cycle is over, we all look stupid.”
But Yat Siu, CEO of Animoca Brands, believes at least one NFT sector is currently not getting enough love, and that’s gaming. “Our opinion is that game assets are undervalued because NFTs derive value not just from provenance, scarcity, and general demand, but also from their utility,” he says.
As an example of a wise investment, he notes that crates of NFTs for the Formula One-licenced game F1 Delta Time were released for $500 in 2019, some of which contained sought-after Ferraris that have increased in value to as much as $60,000.
How important is it to understand the secondary sales market?
Steinwold calls secondary sales “perhaps the most important indicator of an NFT’s longevity,” and Dizon cites them as the true test of whether an NFT was worth the initial purchase price.
To better understand secondary markets, Gedevani recommends making use of third-party or community-created analytic tools such as MomentRanks, Intangible.market and Evaluate.market, which help investors gauge the value of NBA Top Shot collections.
“Overlooking secondary sales is an easy way to make a mistake of buying an overvalued asset that has already run up substantially in a short time period,” he says.
How can you maximize the chances of winning an auction?
While you could “learn how to code and use bots,” as Steinwold suggests — or take a short course in auction game theory — the best way to win is to not play the game, says Goltra.
“Sometimes you can preempt the auction altogether,” he says, suggesting you slide into an artist’s DMs on Twitter or Instagram and negotiate directly.
“I think artists want to know that the collector of the art is appreciating it, and they like knowing who their collector is. To be able to actually strike up a conversation and kind of make friends with the artist is actually a best practice in terms of wanting to win something super rare.”
What sort of budget do you need?
A couple hundred dollars is a reasonable budget to begin with in most categories, though given the interest in NFT art at present, a couple thousand might be required to snare a one-of-one edition from anyone with a reputation.
To snag an art bargain on a low budget, you might have to work a little harder. “I specialize in buying NFTs of up-and-coming artists who are yet ‘undiscovered’ and whose NFT artworks are selling for much lower prices than more established artists,” explains Dizon. Such gems are more likely to be found on open platforms like OpenSea and Rarible — though you’ll need to spend a bit of time combing through the haystack.
The best NFT purchases are from undiscovered talent with little sales history.
Many of the top artists today started selling pieces for less than 1 ETH.
Curation creates new market opportunities – Dig deeper.
— Coopahtroopa 🔥ᴗ🔥 (@Cooopahtroopa) March 22, 2021
OpenSea co-founder Alex Atallah says you can turn up hidden gems by looking for artists with few buyers to date but who have strong, unique social media accounts. “These are often the ones that will get ‘discovered’ soon by the NFT community,” he says.
Goltra adds that keeping an eye on the upcoming artists with whom better-known artists interact on social media is also instructive. “You can kind of tell when there’s a new artist that’s very prominent, because all the other artists get excited,” he says.
Games and collectibles platforms often have very affordable entry points: NBA’s Top Shot platform sells “common” packs for as low as $9, and collector Pranksy claims to have turned $600 into nearly $7 million worth of memorabilia in a few months on the platform.
Siu explains that newer projects sometimes reward early adopters in the community with airdrops and gifts: “Getting deeply involved in an NFT project early on is usually a sound strategy because there will often be early adopter drops or gifts for engaged community members,” he says, adding: “We have given out such rewards in games like F1 Delta Time encouraging players to play more frequently, and some of those rewards ended up becoming quite valuable.”
And for those who have no budget at all, you can actually play to earn by raising Axies — a pastime that helped numerous Filipino players make it through the pandemic, with some even becoming relatively wealthy in local terms.
“There are people making a living playing Axie,” says Zirlin. “From collectors to play-to-earn grinders in the developing world.”
the most impressive @nbatopshot metrics don’t have dollar signs:
– 84% (!) 12 week retention across all collectors
– 80%+ of eligible users join LE pack drops
– 300k+ in line this morning for Cool Cats drop
– 98% (!!!) 12 wk retention across activated* users
— Roham (@rohamg) March 22, 2021
How do I research the market?
Some of the better-known NFT news sources include Steinwold’s Zima Red podcast and newsletter, Delphi Digital’s Delphi Daily, Bankless and The Defiant. Art platforms such as SuperRare also feature interviews with artists and other content.
In addition, you can follow as many NFT accounts on Twitter as possible — including WhaleShark, DCL Blogger, Loopify, Linda Xie and more — and get involved with NFT communities on Discord, such as those of OpenSea and Token Smart. Zirlin says the Axie Infinity community on Discord is the best way to learn how to raise Axies. “I suggest becoming a community member by joining the Discord and meeting the other Axie trainers. Talk to other players that have had successful journeys and try to emulate their paths,” he says.
Gedevani says your time is well spent browsing social media, listening to podcasts and experimenting with projects. “That’s the fastest way to learn,” he explains. “Follow the builders/investors in the NFT community who have been through all the ups and downs and are best positioned to navigate this market.”
Final words of advice
We are still in the early days for NFTs, and no one really knows how the market will develop, so there’s an abundance of caution all around. Matsumura notes that in the current bull market, everyone can appear to be winning and making large paper gains, but sentiment can suddenly flip. “Some of those things will go to zero and stay at zero forever,” he says.
Dizon encourages buyers to do as much research as possible: “Do your homework, make sure you love what you are buying and can afford it, then you can pull the trigger. The best time to sell an NFT is when everyone else is FOMOing in. The worst time to sell an NFT is when you need the money.”
Steinwold says a long-term mindset is likely the key to success. “We are in a frenzied period right now so be thoughtful in what you purchase. Ask yourself: will this NFT be around in two to three years?” He concludes:
“The NFT zeitgeist only caught on to a wider audience the past few months and this revolution will take many years so always play long-term games with long-term people.”
Blockchain monitoring provider PARSIQ integrates with crypto custodian Hex Trust
PARSIQ, a blockchain monitoring & event tracking service provider, today announced it entered into a new strategic partnership with Asia-based digital asset custodian, Hex Trust.
The partnership will enable PARSIQ to provide PRQ token holders with bank-level security to keep their assets safe; while offering Hex Trust’s clients additional security with enterprise-grade monitoring.
Listed on the OKEx exchange since the beginning of this year, PARSIQ (PRQ) is a “reverse-oracle” blockchain platform that addresses the lack of adequate monitoring and analytics tools in the cryptocurrency ecosystem. Users can keep tabs on events across different blockchains in real-time and connect those events to any off-chain apps and devices to facilitate different workflows.
Last year, the firm secured funding support under the USD $100 million accelerator fund offered by Binance, the world’s largest cryptocurrency exchange.
Aiming to help propel the mass adoption of blockchain automation tools, PARSIQ has inked a slew of deals with trusted blockchain labels since its establishment in 2018. Among those are Algorand, Dash, Bitfury Crystal, and AllianceBlock, and, most recently, SuperFarm, Injective, PAID Network, and Chainlink.
Collaboration with Hex Trust is another significant step toward realizing the company’s vision to operate a safe cryptocurrency platform that meets the strictest global regulatory requirements. It will allow PARSIQ to use Hex Trust’s proprietary safekeeping solution “Hex Safe” for custody of PARSIQ’s treasury. In addition, clients will be able to store their PRQ assets in Hex Trust’s custody vault.
“Onboarding a company like Hex Trust and getting custody support for PRQ tokens adds a new level of validity to PARSIQ and underlines just how much security means to us and our holders,” said Tom Tirman, CEO of PARSIQ.
The deal is a win-win for both stakeholders. Hex Trust can leverage PARSIQ’s infrastructure for blockchain transactions and automate internal business processes such as notifications, deposit processing, and security monitoring.
“We are delighted to have been appointed PARSIQ’s custodian and provide the highest security levels for their digital assets. Teaming up and integrating their transaction monitoring and automation tools into our custody platform will provide added benefits for our clients and improve their overall experience,” Alessio Quaglini, Co-Founder and CEO of Hex Trust added.
Price analysis 4/16: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, LTC, UNI, LINK
Dogecoin’s (DOGE) massive rally to $0.45 propelled it to a market capitalization of over $54 billion to make it the fifth most valuable cryptocurrency by market cap.
This lofty market cap comes as a surprise to many since the project has no active developers and is only a meme coin, thus the current rally brings back memories of the excesses seen during the ICO boom in 2017.
Rallies like the one seen in Dogecoin indicate that several traders have entered the fray and are looking to get rich overnight. The only positive sign is that the mania has not spread to other coins. If it does, then the crypto markets are likely to witness a sharp correction in order to shake out the weak hands.
CNBC host Jim Cramer has become one of the first well-known people to reveal that he closed half of his Bitcoin (BTC) position. While Cramer’s selling is an isolated event, it does warn that not all professional investors who have recently turned Bitcoin believers are going to be long-term HODLers.
If the institutional investors rush to the exit, it could cause a huge correction in several cryptocurrencies. Traders should be mindful of irrational exuberance and avoid being sucked into FOMO-driven trades as it’s better to stick to a trading plan and think long-term rather than dream of overnight riches.
Let’s study the charts of the top-10 cryptocurrencies to identify the critical support levels and outline various bullish and bearish scenarios.
The bulls could not capitalize and build upon the breakout of the overhead resistance zone at $60,000 to $61,825.84 on April 13. Bitcoin price turned down on April 14 after hitting an all-time high at $64,849.27 and the bulls are currently attempting to flip the $60,000 level to support.
If they manage to do that, the BTC/USDT pair may make one more attempt to resume the uptrend. A breakout of $64,849.27, could start the next leg of the uptrend that could reach $69,540 and then $79,566.
However, the negative divergence on the relative strength index (RSI) is warning of a possible correction. Interestingly, the price reversed direction when the RSI had reached close to the downtrend line.
If the price dips below the 20-day exponential moving average ($59,427), it will be the first sign that buyers may be losing their grip. The break below the 50-day simple moving average ($55,814) will further cement the view that a deeper correction is likely.
The bulls may attempt to arrest the decline near $50,460.02 but if this level cracks, the pair could drop to the critical support at $43,006.77.
Ether (ETH) extended its uptrend and hit an all-time high at $2,545.80 today. Profit-booking by traders pulled the price down to $2,300 but the long tail on the day’s candlestick suggests that bulls continue to buy on dips.
If the price recovers and the bulls push the price above $2,545.8, the ETH/USDT pair could start the next leg of the uptrend. The next target objective on the upside is $2,745 and then the psychological level at $3,000.
The upsloping 20-day EMA ($2,131) and the RSI near the overbought territory suggest the path of least resistance is to the upside. This bullish view will be invalidated if the price turns down and breaks below the 20-day EMA. Such a move could pull the price down to $1,925.10.
Binance Coin (BNB) formed a Doji candlestick pattern on April 14 and that was followed by an inside day candlestick pattern on April 15. Both these setups indicate indecision among the bulls and the bears. This uncertainty resolved to the downside today.
However, a minor positive is that the bulls are defending the 38.2% Fibonacci retracement level at $483.95, as seen from the long tail on the day’s candlestick. The bulls will now try to push the BNB/USDT pair above the all-time high at $638.56 and resume the uptrend.
Conversely, a break below $483.95 could pull the price down to the 20-day EMA ($437). A break below this support will suggest that the traders are rushing to the exit and that could result in a drop to the breakout level at $348.69.
XRP is currently correcting the sharp rally. The bulls are attempting to defend the first support at the 38.2% Fibonacci retracement level at $1.48, as seen from the long tail on the day’s candlestick.
The XRP/USDT pair may now consolidate between $1.48 and $1.96 for a few days before starting the next trending move.
A break above $1.96 could start the next leg of the uptrend that could reach $2.54. The rising moving averages and the RSI in the overbought zone suggest the bulls have the upper hand.
Contrary to this positive assumption, if the bears sink the price below the $1.48 support, the pair could drop to the 20-day EMA ($1.18). Such a move will suggest the bullish momentum has weakened and that could delay the next leg of the uptrend.
Dogecoin’s momentum has been picking up since the past three days and that has resulted in the massive pump today. This shows that more and more traders are getting sucked into the trade due to FOMO.
Usually, such buying frenzies end in a major top formation. After the last bull has purchased, the price reverses direction and the waterfall decline starts. It is difficult to predict a top during such a frenzy but the psychological $0.50 level may act as a hurdle.
The decline after the DOGE/USDT pair tops out is likely to be vicious. The usual 38.2% Fibonacci retracement level may not hold and the pair is likely to drop to the 61.8% Fibonacci retracement level at $0.20.
Traders should control the urge to get into such trades even at the risk of missing out on some profits.
Cardano (ADA) has been facing a tough battle between the bull and the bears near $1.48 for the past two days. Although the bulls managed to push the price above $1.48 today, the bears have been quick to pull the price back below the level.
After the third unsuccessful attempt to sustain the price above $1.48, the bulls seem to have dumped their positions today, resulting in the formation of an outside day candlestick pattern.
However, the long tail on today’s candlestick suggests the bulls bought the dips to the 20-day EMA ($1.28) aggressively. The bulls may now make one more attempt to drive the price above the $1.48 to $1.55 resistance zone.
If they manage to do that, the ADA/USDT pair could resume the uptrend and start the journey toward $2. Conversely, a break below the moving averages could offer the bears an opportunity to sink the price to $1.03.
The bulls pushed Polkadot (DOT) above the $42.28 level on April 13 but could not challenge the all-time high at $46.80. This shows a lack of demand at higher levels. The altcoin has dropped below $42.28 today and the bears will now try to sink the price below the 20-day EMA ($40).
If they succeed, the selling could pick up further as the bulls may rush to cover their positions. Such a move could sink the DOT/USDT pair to $32.50 and then to the critical support at $26.50.
Contrary to this assumption, if the price again rebounds off the 20-day EMA, it will suggest that bulls have not given up. They will make one more attempt to thrust the price above the $46.80 resistance and resume the uptrend.
Litecoin (LTC) is in a strong uptrend. The bears had tried to start a correction today but the bulls purchased the dips aggressively as seen from the long tail on the day’s candlestick. The reversal may have caught several aggressive bears on the wrong foot, which could be the reason for the pick-up in momentum.
The LTC/USDT pair has broken out of the target objective at $307.42, clearing the path for a rally to $374. However, the RSI above 76 signals caution because, in the past, the pair has repeatedly entered a correction when the RSI level reaches close to 80.
The critical support to watch on the downside is the 20-day EMA ($241). A break below this support will be the first sign that the bulls are tiring and a deeper correction is likely.
Uniswap (UNI) broke out to a new all-time high on April 15 but the bulls are struggling to sustain the higher levels. When the price fails to follow up higher after breaking out of a significant resistance, it indicates exhaustion.
However, the long tail on the day’s candlestick suggests the bulls continue to buy on dips. If the buyers can propel the price above the all-time high at $39.60, the UNI/USDT pair could rally to $43.43 and then $50.
On the other hand, if the price again turns down and breaks below the 20-day EMA ($32), several aggressive bulls who had purchased the breakout of $35.20 may bail out of their positions. The long liquidation could pull the price down to $27.97.
Chainlink (LINK) surged above the $36.93 overhead resistance on April 14, signaling the resumption of the uptrend. The altcoin hit an all-time high at $44.33 where profit-booking set in.
However, the long tail on the day’s candlestick suggests that the bulls aggressively purchased the dip to $38.52 today. This indicates that the sentiment remains positive and the bulls are buying at lower levels.
The buyers will now try to resume the uptrend by pushing the price above $44.33. If they succeed, the LINK/USDT pair could rally to $50.
Contrary to this assumption, if the price again turns down and breaks below the $36.93 support, the pair could drop to the 20-day EMA ($34). If this support cracks, the decline could extend to the 50-day SMA ($30).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
How The XRP Community Reply To The SEC’s “Shady” Move
The Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, and executives Brad Garlinghouse and Chris Larsen seem to have taken a weird turn. According to the former federal prosecutor and defense lawyer James Filan, the Commission could have allegedly bypass certain rules to its benefit.
#XRPCommunity #XRP #SEC v. #Ripple @sentosumosaba BREAKING: DISCOVERY DISPUTE REGARDING #SEC CONTACTING FOREIGN REGULATORS AND SEEKING DISCOVERY OUTSIDE RULES OF FEDERAL PROCEDURE AND HAGUE CONVENTION. LETTER MOTION ATTACHED.https://t.co/53ytaZCjTi
— James K. Filan (@FilanLaw) April 16, 2021
The SEC apparently is “pursuing discovery” from the United Kingdom Financial Conduct Authority (FCA) on Ripple. This method is called Memoranda of Understanding (“MOU”) and, according to a document file with the Southern District of New York and Magistrate Judge Sarah Netburn, violates the Hague Convention.
The document was introduced by Ripple Labs legal representation and claims the SEC has at least 11 MOU demanding documents from “overseas entities”. The document claims “many” of these entities are the payments company business partners” and about 10 international regulators.
The defense qualifies the process as “improper” and part of an “intimidation tactic” to allegedly reduce Ripple’s capacity to conduct business outside of the U.S. The document said:
Not only is the use of pre-litigation investigative tools prejudicial to Defendants and the recipients of such requests, as described below, it also prevents this Court from exercising its lawful discretion regarding the scope of permissible foreign discover.
Behind the judge’s back, the SEC violated U.S. civil court rules by issuing multiple “MOUs” to obligate foreign govts to obtain files from @Ripple‘s foreign business partners. They got caught.
Read the full letter to Judge Netburn here 👇https://t.co/9P7wIMfTr8
— CryptoLaw (@CryptoLawUS) April 16, 2021
SEC “unjust” advantage in XRP case?
Commenting on the discovery, lawyer Jeremy Hogan said the SEC is placing indirect “regulatory pressure” on Ripple and its partners. Since the Commission is the only party capable of employing said tactic Hogan said:
This is NOT something a “typical” Plaintiff could do and it’s not fair, so Ripple is calling dirty-poker (…). (former prosecutor), this is typical government prosecutorial pressure-litigation, applying pressure not only to you but your business friends as well.
General Counsel for Gala Games Jesse Hynes also gave his opinion and claim it was an “insane” move by the regulator. Hynes highlighted the importance and implication this lawsuit could have for the crypto industry and said:
Shame on the SEC! On the bright side, the SEC is basically admitting that this is a matter of great political and worldwide significance. Can’t wait for that Summary Judgment motion with a major questions doctrine argument.
XRP is trading at $1,64 with an 8.9% correction after an impressive rally in the past days. On the weekly and monthly chart, XRP sits at 55.9% and 255.2% profits.
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