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ETH Fees Hit Multi-Year High, The Community Wants Solutions

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The ETH fees hit multi-year high as over the past few weeks, the price of the asset stalled in terms of price action trading between $210 and $240. The blockchain activity of the asset also had a tough blow, as we are reading more in the following Ethereum price news.

Due to the storm of events, the number of users of the network increased and the blockchain analysts from Santiment reported that the number of new ETH addresses created per day, surpassed 100,000:

 “Ethereum’s network growth metric has rapidly been on the rise since the beginning of 2020, creating 237% more addresses yesterday than it did on Jan 1, 2020 (and ~+200% accounting for rolling averages now vs. then).”

etherscan data
Data From EtherScan

A similar trend of growth was seen in daily transactions and price action as well and as it can be seen from the charts, the number of transactions and ETH Fees hit multi-year high as there were 1.1 million transactions in a single day while the all-time high is around 1.37 million transactions in a day. The spike in usage didn’t come without a cost too. According to the data shared by Tradeblock, the cost of transacting on ETH hit highs that were not seen in over two years:

 “With the rise in DeFi apps, majority of which are built on Ethereum, ether gas fees hit recent highs, meaning transaction costs across the network have risen in order for timely transactions to occur.”

tradeblock data
Data From Tradeblock

Tradeblock’s data shows that the cost of one gas reached 120 gwei which is an increase of almost 50 percent from the 70 Gwei highs of the 2017/2018 bull market. The data from Etherscan on the other hand can be seen that the 120 Gwei fees were the highest since 2016. The head of Business Development at Kraken’s futures division, Kevin Beardsley:

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 “I have spent $14 on ETH gas fees to transfer/lock my $15 into @CurveFinance and I’m earning a princely $0.079 in weekly $SNX rewards. I’ll break even in just 177 short weeks! (not including gas to close contracts.”

Beardsley is one of the few that says it will cost $10 more to send a single transaction. It should come as no surprise that there are some moves being made to try and avoid Ethereum’s high fees. There are attempts to limit the ETH gas limit by allowing more transactions and this should decrease the fees that users pay to transact on the network.

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Source: https://www.dcforecasts.com/ethereum-news/eth-fees-hit-multi-year-high-the-community-wants-solutions/

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Bitcoin Dropped To $9,050 Following Stock Market Tumble: Friday Price Watch

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Bitcoin and most altcoins have retraced slightly in the past 24 hours, after a few days of gains. Interestingly, similar price fallbacks are visible in the traditional stock markets, as the Dow Jones is down by 1.4%.

Bitcoin’s False Breakout

After the unsuccessful attempt to conquer $9,500, Bitcoin hovered above the significant 50-MA level at $9,300. However, the primary cryptocurrency has since slipped below it as it went from $9,440 to its current position at $9,150 in a few hourly candles. On some exchanges, such as Bitstamp, BTC plunged as low as $9,050.

BTCUSD 5m. Source: TradingView
BTCUSD 5m. Source: TradingView

During the increase to nearly $9,500, speculations rose that BTC whales manipulated the price to create volume to place large sell orders and reduce slippage. The end goal is for retail traders to start placing buy orders after the asset reaches an area of high liquidity – in this case, above the $9,300 50-MA. Ultimately, such traders typically have their positions liquidated, and so far, it appears that the execution was successful.

At the time of this writing, Bitcoin is close to the major support line situated at $9,000. It’s also a psychological level that managed to hold the asset’s price above it on several occasions lately.

If BTC turns bullish again, it would have to conquer all over again the $9,300 resistance, followed by $9,500, and $9,800, in case of an especially decisive run.

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Following The Stock Markets

Whether it’s price manipulation or another example of an increased correlation with the stock markets, it’s unclear. Nevertheless, when Bitcoin dropped by 3%, somewhat similar happened to the Dow Jones index. DJI went down from its daily high of 26,100 to 25,545 at one point before recovering slightly to 25,700.

The S&P 500 index also went on a negative spiral yesterday from 3,180 to its daily low of 3,116 but managed to close at 3,152. Nasdaq, on the other hand, closed with slight gains of 0.5% despite also diving intraday.

These primarily adverse developments came after news from Florida, indicating an uptick of coronavirus deaths. It also impacted the EU-based stocks, as the composite Stoxx 600 declined by nearly 1%, while London’s FTSE 100 dropped by 1.7%.

Altcoins Retrace

The altcoin market had several consecutive positive days, marking some impressive double-digit increases. DeFi tokens, riding the latest trend in the cryptocurrency space, were particularly notable.

However, they couldn’t keep the momentum going, and most altcoins are in the red today. Ethereum and Ripple slip by approximately 3% to $238 and $0.197, respectively.

Cryptocurrency Market Overview. Source: coin360.com
Cryptocurrency Market Overview. Source: coin360.com

Litecoin’s nosedive is similar, and LTC is below $44 now. Tezos’s price decrease is quite significant by nearly 5% to $2,44. After marking a new all-time high of $6,51 two days ago, Chainlink is now at $5,92. In other words, LINK has dropped by 9.3% since then.

Despite the tanking altcoins, Bitcoin couldn’t capitalize on the movement, and its dominance over the market remains below 63%.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-dropped-to-9050-following-stock-market-tumble-friday-price-watch/

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Bitfinex to Face New York Courts Over Missing $850 Million in Cryptocurrency Funds

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A New York state court ruled that the exchange, and companies connected to it, must face court claims according to Bloomberg. Last year, New York Attorney General Letitia James accused Bitfinex of hiding the loss of more than $850 million in client and corporate funds.

Panama Firm in The Spotlight

The firms in question have made claims that the funds were deposited in a company called Crypto Capital Corp, based in Panama. These were then seized by various governmental authorities and the exchange has been battling to recover them ever since. Last year, the New York Attorney General accused Bitfinex of hiding more than $800 in losses.

Bitfinex was founded in 2012, and became the largest international cryptocurrency exchange after Mt. Gox imploded in 2014. It has been embroiled in controversy surrounding its stablecoin, Tether, and whether it is actually backed by real dollars.

Tether market capitalization has surged this year as its treasury keeps minting more tokens to keep up with demand. So far in 2020, USDT has surged 125% in terms of market capitalization from $4.1 billion to $9.2 billion according to CoinMarketCap.com. It is currently the third-largest cryptocurrency in terms of market cap, and the provider of the majority of liquidity on exchanges around the world.

Crypto Capital Corp has been repeatedly accused of money laundering and spurious activities shuffling Tether around through a number of shell companies.

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The appeals court rejected the argument that Tether is not a security or commodity, and reaffirmed that the court has jurisdiction over its issuer.

Bloomberg added that the court also rejected the argument that since Bitfinex is not based in New York, it shouldn’t be answerable to or have to produce certain documents for New York authorities. It added that traders based in New York had been using Tether. The Attorney General added;

“Today’s decision validates our office’s ability to use its broad and comprehensive investigative powers to protect New Yorkers. Not even virtual currencies are above the law. We are pleased with the court’s decision, and will continue to protect the interest of investors in the marketplace.”

What is Backing Tether?

Bitfinex has been very cagey regarding the true backing behind Tether, changing its statement in 2018 to read;

“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)”

This rather vague declaration only deepens the doubt around the crypto exchange and the world’s largest stablecoin. It seems that the courts, in New York at least, also want some answers.

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Source: https://cryptopotato.com/bitfinex-to-face-new-york-courts-over-missing-850-million-in-cryptocurrency-funds/

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Accomplice in Alleged $722M Bitcoin Ponzi Scheme Pleads Guilty to Charges

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One of four men charged with defrauding investors of more than $722 million through a long-running cryptocurrency mining scheme has pleaded guilty to charges against him.

The man, a 35-year-old Romanian programmer called Silviu Catalin Bacali, was arrested in Germany in December 2019. He was charged with one count of a conspiracy to commit wire fraud as well as a conspiracy to offer and sell unregistered securities. He faces a maximum of five years in prison and a fine of $250,000.

Three others — Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks and Joseph Frank Abel — were charged in connection with the scheme in the United States that same month.

Prosecutors allege that the scheme — operational between April 2014 and December 2019 — solicited money from investors in exchange for shares in purported cryptocurrency mining pools. Investors were awarded bonuses for recruiting further investors into the network. 

The indictment cites correspondence between Goettsche and Balaci in which they allegedly discussed how to fake mining earnings and referred to their investors as “sheep.”  

While the other defendants allegedly offered investors the choice of investing in three separate Bitcoin (BTC) mining pools, Bacali admitted that he himself was unaware that the BitClub Network operated more than one pool.

Further correspondence between the programmer and Goettsche from 2015 apparently revealed that Bacali was asked to “bump up the daily mining earnings starting today by 60%,” which he objected to as being “not sustainable” and “ponzi teritori [sic.]”.

He is nonetheless charged with changing figures to mislead investors at his accomplice’s urging. Bacali has also confirmed prosecutors’ allegation that the scheme fleeced at least $722 million worth of BTC from investors.

Early warning signs

In March 2017, Cointelegraph reported on allegations that BitClub had launched a malleability attack on the Bitcoin network. The scheme had also been flagged as suspicious by crypto media news outlet 99Bitcoins as early as 2016.

Source: https://cointelegraph.com/news/accomplice-in-alleged-722m-bitcoin-ponzi-scheme-pleads-guilty-to-charges

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