Cryptocurrency daily market performance snapshot. Source: Coin360
UNI, which launched less than 48 hours ago, has rallied from around $1.00 to $8.00 in a short period. After an impressive eight-fold gain, the token started to pull back but trading volume suggests traders have their eyes set on higher prices.
YFI and ETH rallied as UNI corrected
As UNI started to make a parabolic rally from $1 onwards, the funding rate of the cryptocurrency across major exchanges turned negative.
Traders, the majority of which were at FTX exchange, were heavily shorting UNI in anticipation of a strong pullback. These traders might have thought that most holders of the 400 UNI tokens UniSwap airdropped to its users would want to cash in after their value reached $2,640.
The exact opposite occurred as within 5 hours of launching, Binance, Coinbase Pro, and FTX all listed UNI. This marked the fastest listing among the top three exchanges for a newly-launched token and has led some crypto pundits to question whether exchanges are violating their own listing policies in pursuit of quick profits.
The swift listing by these exchanges caused the demand for UNI to soar and the negative funding rate on FTX further fueled the rally as short contract holders were pushed out of their positions.
Eventually, the token topped out at around $8.60 on Binance and was followed by a 22% correction where the price consolidated in the $6.50 range before moving back to $7.00. As this occurred, the price of YFI surged by 10.72% from $31,158 to $34,509.
Ether also rose slightly by more than 1% immediately after the price of UNI declined.
Hsaka, a popular crypto-analyst on Twitter pointed out what he calls an inverse correlation between UNI and major DeFi tokens like YFI. According to him, this shows that many DeFi users were trading UNI but as soon as UNI topped out, the profits cycled back into top DeFi tokens, with YFI being the primary beneficiary.
Top traders views on the UNI rally and sharp correction
While the sudden upsurge of UNI surprised many investors, some traders expected the governance token to rally.
A pseudonymous analyst known as “DC Investor” said that as the most used app on Ethereum, UNI’s strong performance was not a surprise. He said:
“Can’t comment much on near-term price. But I guess I’m just surprised that people are surprised by UNI raging. Most used app, fees greater than Bitcoin, does volume bigger than many CEXes, and one of the best demos of Ethereum. Learn to see & buy the real ones.”
Another popular crypto-Twitter trader known as “Crypto Medici” said UNI is still likely undervalued and over the long term, he expects a $3 to $5 billion valuation. The trader noted:
“UNI going to be worth $3-5 billion (conservative) Still extremely undervalued. Token distribution was genius and many that sold will FOMO back in when we break $1 billion. This is before V3 comes out, and liquidity mining ramps up.”
$1 Bitcoin investment beats gold and stocks despite 2020 gains
In a knock to gold bugs, data shows that despite gold’s run this year, Bitcoin still trumps every macro asset when it comes to investment profits.
Bitcoin “quietly eating the financial world”
Fresh off its second best quarterly close on record, Bitcoin is up almost 50% in 2020, while gold has managed just half of that — 25.6%.
The S&P 500, an index with which Bitcoin has shown considerable correlation, is just 5.5% higher than at the start of January. Despite its increasing strength, the U.S. dollar has netted savers just 2.2% year-to-date returns, while oil is the big loser, with WTI crude down by almost 35%.
Bitcoin versus gold historical chart. Source: Skew
For popular statistician Willy Woo, zooming out to examine Bitcoin’s returns versus gold since the cryptocurrency’s inception in 2009 compounds the case for holding BTC.
Gold’s having its best year since 2010. This how it’s doing against BTC.
$1 invested on 6 Oct 2009 (when BTC was first priced) would be worth $13.9m today.
Bitcoin’s software is quietly eating the financial world. pic.twitter.com/eE6xQ5NYFG
— Willy Woo (@woonomic) October 6, 2020
The numbers would appear to speak for themselves. $1 of Bitcoin purchased even one year ago would have netted its owner $0.31 profit, while gold would have got $0.27.
Prior to the end of 2017, when BTC/USD began consolidating after reaching $20,000 all-time highs, the differences are much more palpable. $1 invested five years ago is now worth $44.43, while $1 of gold is worth $1.67, according to Woo’s figures.
United States’ national debt hits $27 trillion
As Cointelegraph reported, Woo has stated that he believes Bitcoin will soon decouple from gold and other traditional markets to carve out a price trajectory of its own.
The cryptocurrency has weathered criticism from gold bugs as much as ever during 2020’s market volatility, with serial gold bug Peter Schiff among its most vocal naysayers. Schiff has toned down his skepticism in recent weeks, focusing on the U.S. dollar and the state of the country’s economic debt.
U.S. total debt has now passed $27 trillion for the first time in history, according to the U.S. National Debt Clock.
“The National Debt just past $27 trillion, up about $7 trillion since Trump took office. If [Donald Trump] serves just one term he will likely add more to the national debt in 4 years than Obama did in 8,” Schiff wrote on Oct. 6.
“What’s worse is that [Joe Biden’s] 1st term may add more than both combined.”
DBS and Standard Chartered to launch blockchain platform to curb trade finance fraud
The Singapore-based multinational banking entity DBS and Standard Chartered have completed the proof-of-oncept of their blockchain trade finance platform called the Trade Finance Registry.
The two entities developed the PoC in collaboration with 12 other banks on top of the blockchain platform of Singapore-headquartered company dltledgers.
dltledgers told Cointelegraph that the banks involved in the project now intend to launch the platform for commercial use by central banks around the globe.
While the platform will first be used by the Monetary Authority of Singapore, the entities involved in the project also plan to propose it to central banks from the United States, United Kingdon, Thailand, United Arab Emirates, India, Hongkong, Qatar and Indonesia.
Backed by Enterprise Singapore — a government enterprise under the Ministry of Trade and Industry — and the Association of Banks in Singapore, the trade finance platform is expected to help banks fight fraud in lending and commodity trade.
According to dltledgers founder Samir Neji, the platform uses the company’s blockchain-based TradeDoc Validation Registry to help banks detect fraud in real-time.
DBS and Standard Chartered said in a statement that the pilot test helped reduce the chances of duplicate financing from different bank lenders for the same trade inventory. This, they added, will lead to greater trust and confidence among banks and traders.
This is only the latest effort by DBS in using blockchain to digitize trade finance. Only four months ago, the bank joined the blockchain network Contour, built over R3’s Corda, in order to modernize processes for the settlement of letters of credit.
Port of Rotterdam testing blockchain and AI for renewables trading
The Port of Rotterdam’s blockchain subsidiary, Blocklab, has been trialing a decentralized electricity trading system to help lower costs and optimize the use of renewables on its microgrid.
The system, called Distro, has been jointly developed by Blocklab and S&P Global Platts, and has been operational as a trial for two months.
Distro uses blockchain technology, smart contracts, and artificial intelligence to support the decentralized and high frequency trading of renewable energy by commercial consumers looking to optimize and manage their energy use. It matches demand with the intermittent power generated from different sources, specifically solar and battery storage.
Each market participant is allocated an AI energy trading agent that learns their behavior, choices, and needs and provides them with energy at the optimal price. Buyers and sellers can access localized and dynamic prices for energy and the system is designed to deter excessive power consumption when generation is low by offering lower prices when the supply is abundant. Blocklab says this builds upon “proven practices in commodities and financial market[s],” optimized through AI to automatically balance supply and demand.
The trial involved 20 million blockchain-validated, cleared and settled transactions, which cumulatively lowered the cost for commercial users by 11% and improving local renewables producers’ revenues by 14%.
Significantly, use of the system increased the consumption of on-site solar generation by 92%, which Blocklab argues can help to combat energy waste. Most ambitious is the claim that Distro could ostensibly help enterprises to deliver a “carbon reduction saving of up to 30 million tonnes.”
The Port of Rotterdam’s director of new business development and portfolio, Nico van Dooren, said:
Balancing local electricity needs with local generation holds the key to unlocking significant grid infrastructure savings. We are excited about the prospects of scaling this solution and the meaningful contribution it can make towards helping The Port of Rotterdam become carbon neutral by 2050.
Smart contracts are used in the high frequency trading system in order to enforce market rules, validate transactions, and manage digital identities. The immutable and transparent properties of blockchain, combined with provisions for privacy and cryptographic verification, will hold up to industry audit requirements, write Blocklab and S&P Global Platts.
A banking environment for virtual accounts used for transfers in the marketplace was provided for by ABN AMRO’s Banking-as-a-Service sandbox.
As Cointelegraph has previously reported, the Port of Rotterdam is no stranger to blockchain technology. This summer, the port launched a pilot to tokenize traditional shipping PINs, and has also been one of the major international ports to become involved with the blockchain logistics platform TradeLens.
cogu joins MIBR as manager and coach
Strategic Resources Files Mustavaara Technical Report
Ur-Energy Announces Extension of State Bond Loan and Provides Update
Pettit Marine Paint Develops the Most Effective Anti-fouling Paint to Hit the Market in Many Years – ODYSSEY® TRITON
Core Lab Reports Third Quarter 2020 Results From Continuing Operations:
A Difference-Making Disinfectant
How Car Tires Are Manufactured
5 Real World Applications of the Doppler Effect
Join Hands with Instagram’s New Algorithm to Boost Your Business’s User Engagement
BioMicrobics Acclaimed by Frost & Sullivan for Its Continuous Innovation-led Growth in the Water and Wastewater Treatment Market
SME Education Foundation Seeks Industry Involvement for Unadilla Valley High School Initiative to Create STEM Opportunities for Students
Verisem Acquires State-of-the-Art Vegetable Seed Processing Facility, Further Enhancing Capabilities
Global Synthetic and Bio Based Polypropylene Market 2020-2026 Growing Demand in the Automotive Industries
AI-Driven Dynamic Filmmaking is the Future
Growing Concerns around Global Warming Are Set to Drive Hypercar Market Forward: TMR
Angry Birds VR and Acron: Attack of the Squirrels Gear up for Halloween
This Is a $103 Billion Profit Opportunity
Power Plant Boiler Market by Type, Capacity, Technology, Fuel Type, and Region – Global Forecast to 2025
Rising Phoenix Royalties Announces Second Yoakum County, Permian Basin, Oil and Natural Gas Royalty Acquisition
Chem-Dry Grows Amid Pandemic with Signed Agreements to Open 64 New Franchises Across the Nation
Key Trends and Recent Innovations in Powder Bed Fusion, IDTechEx Identifies
Bitcoin Breaks $12K Resistance and Aims for $14K as BTC Rallies Higher in the Expense of Altcoins
Pasternack Now Offers a Broad Selection of Field Replaceable Connectors Available for Same-Day Shipment
Star Wars: Tales from the Galaxy’s Edge Gameplay Trailer Drops With November Date for Oculus Quest
The Briefing: RVShare raises over $100M, Google disputes charges, and more
Mode Adds Bitcoin to Reserves, Joining Microstrategy and Square
Has Bitcoin met its match with this altcoin?
Syte Sees $30M Series C For Product Discovery
What could a Democrat Sweep in US Elections mean for Bitcoin?
Yearn Finance Adds GUSD Vaults and Updated Keep3r Network Details
B2BX Exchange Announces B2BX Token Buyback
Coinend: 1, 2, 3 Take off -New Gamified Crypto Prediction Platform!
GenTech Proudly Secures Deal with TruLife Distribution to Drive Growth in SINFIT Digital Sales
Coinend: 1, 2, 3, Take off – New gamified crypto prediction platform!
PayPal to allow transactions in Bitcoin, Ethereum etc. from 2021
Ripple CTO Assesses XRP as a Bridge Cryptocurrency Between CBDCs, Stablecoins, and Fiat
Top 10 Big Data trends of 2020
5 Things to Know Before Investing in Bitcoin
Intellimize Closes $12M Round Of New Funding
Fintech Startups Broke Apart Financial Services. Now The Sector Is Rebundling
Techcrunch4 days ago
Original Content podcast: It’s hard to resist the silliness of ‘Emily in Paris’
Gaming1 week ago
‘Call of Duty: Mobile’ Season 11 Anniversary Update Is Out Now with a New Battle Pass Coming Soon, New Maps, XP Card Changes, and a Lot More
AI1 week ago
Key Challenges and Benefits of AI Chatbots: A Balanced Perspective
Startups4 days ago
Solve the ‘dead equity’ problem with a longer founder vesting schedule
1 week ago
Filecoin Fervor Gaining Momentum in China as Mainnet Nears Launch
1 week ago
Bitfinex launches EOS, Litecoin, and Polkadot Perpetual Swaps
AI1 week ago
Future of Contact Centers Enabling Employees to Work from Home
Startups5 days ago
Three views on the future of media startups