Buying Opportunity? Investors Sentiment for Bitcoin and Ethereum Turns Short-Term Bearish

The recent adverse price developments for the top two cryptocurrencies by market cap have caused a mood swing among investors. Data shows that the crowd sentiment towards Bitcoin and Ethereum has dropped to extreme negativity as both assets slumped by about 10% in a few days.

Sentiment Towards BTC and ETH to New Lows

Bitcoin and Ethereum went through steep retracements in the past several days. The primary cryptocurrency failed to overcome $60,000 despite initiating several attempts, and the subsequent rejections drove it to a ten-day low of $55,500 yesterday.

ETH’s price performance seemed significantly more bullish. The second-largest digital asset reached a new ATH two days ago at $2,150. However, it also retraced heavily by losing more than $200 in the following 48 hours to a low of $1,940.

Despite recovering some ground since then, these developments have caused a massive mood swing among cryptocurrency investors. Data provided by the analytics company Santiment indicated that the general sentiment toward the two assets has “dropped to extreme negative territory.”

History shows that similar rapid mood changes could actually indicate a short-term market top or bottom. The graph above demonstrates that when the general sentiment was exceptionally high after price increases, as it happened in late January and mid-February, the trend reversed somewhat immediately.

Consequently, Santiment has classified the current negative state as a “bullish opportunity” for buyers.

Fear and Greed Says It’s Not That Bad

The Fear and Greed Index is another metric that could provide the investors’ sentiment towards the cryptocurrency field. It calculates various types of data, including surveys, social media, volatility, and volume, to determine whether the general mood is positive or negative towards Bitcoin.

The final results range between 0 (extreme fear) and 100 (extreme greed). Somewhat expectedly, the index was well in the extreme greed phase in the past few months, as BTC more than doubled its value since January 1st.

With BTC stuck beneath the $60,000 line, the index declined slightly, but it has still remained above 50 – meaning that it’s still in greed territory. This attests that the cryptocurrency space is prone to quick mood changes, which goes hand in hand with the highly volatile nature of all assets.

It’s worth noting that while prices have retraced slightly lately, BTC’s fundamentals have become even more robust. As reported earlier, Bitcoin’s network continues to increase its security as the hash rate marked yet another all-time high record.

GAMEE Token (GMEE) to Launch on Uniswap on 8 April 2021; Public Presale Sold Out in 7 Minutes; Concluded 2.2M USD Private Presale

7 April 2021 – Hong Kong –Animoca Brands and its subsidiary GAMEE announced that the GAMEE Token (GMEE) will launch on Uniswap on 8 April 2021 at 9 a.m. (UTC) at an opening price of 0.0888 USD, paired with ether (ETH), USD Coin (USDC), REVV, TOWER, and Lympo (LYM).

GAMEE held a public presale of GMEE on 2 April 2021 that sold out within 7 minutes. GAMEE has also concluded a 2.2 Million USD private presale of the GAMEE Tokens, with key investors including Metakovan from Metapurse (who recently bought Beeple’s “The First 5000 Days” at auction for 69.3 Million USD), OKEx’s Block Dream Fund, Mind Fund, Genesis Block, Smile Tech, Summit 33, Longling Capital, AKG Ventures, Everest Ventures, and other prominent angel investors.

Uniswap

GMEE is an ERC-20 fungible utility token designed to recognize and reward the efforts of players and to drive engagement on GAMEE’s social casual gaming platform. GMEE tokens have a variety of utility: they will serve as player rewards earned within GAMEE games, they will be used to pay for entry fees in special events, and they will have governance functions, including allowing token holders to vote on GAMEE roadmaps, game deployment, and the distribution of prize and rewards pools.

The supply of GMEE is fixed at 3,180,000,000 with all tokens minted at one time (contract address). More information on GMEE is available in the lightpaper.

Official launch on Uniswap on 8 April 2021

GMEE will be paired with ETH, USDC, REVV, TOWER, and LYM on Uniswap starting on 8 April 2021 at 9 a.m. (UTC). The opening price at launch is set to 0.0888 USD per GMEE. These GAMEE Tokens will be supplied by the GMEE Liquidity Pool (tokenomics and release schedule can be seen at this Medium post).

Successful GAMEE Tokens presale

On 2 April 2021, GAMEE held its first public presale of GMEE, hosted on the web site of its sister project REVV at https://revvmotorsport.com. 800 vouchers were available for this sale representing a total 5,000,000 GMEE. All vouchers were sold out within 7 minutes.

Vouchers will be redeemable for GMEE starting on 8 July 2021, three months after the token launch. The vouchers themselves are not locked and owners can now trade them without restriction on any secondary markets such as OpenSea. More information about the first public presale of the GAMEE Token can be found at the official Medium post.

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About GAMEE

GAMEE, a subsidiary of Animoca Brands, is a high-engagement hyper-casual gaming platform where users complete game missions, compete in tournaments and earn prizes for their activity. GAMEE was founded in 2015 in the Czech Republic and now has 25 million registered users. Start playing at https://www.gamee.com.

About Animoca Brands

Animoca Brands is a leader in the field of digital entertainment, specializing in blockchain, gamification, and artificial intelligence technologies to develop and publish a broad portfolio of products including the REVV token and SAND token; original games including The Sandbox, Crazy Kings, and Crazy Defense Heroes; and products utilizing popular intellectual properties including Formula 1®, Marvel, WWE, Power Rangers, MotoGP™, and Doraemon. Animoca Brands’ portfolio of blockchain investments and partnerships includes Lucid Sight, Dapper Labs (creators of CryptoKitties and NBA Top Shot), WAX, Harmony, and Decentraland. Subsidiaries include The Sandbox, Quidd, Gamee, nWay, and Lympo. For more information visit www.animocabrands.com or get updates by following Animoca Brands on Facebook or Twitter.

Spain Seeks Public Comments on Potential Cryptocurrency Regulations

Cryptocurrency regulations across different countries continue to be a hot topic, and Spain is the latest to join in. The nation’s watchdog has asked industry participants, investors, and consumers for their opinion, and they have until April 16th to respond.

Spain’s Regulator Looks for Crypto Legislation

According to a report from La Informacion, The National Securities Market Commission (CNMV), Spain’s watchdog overseeing the securities markets, has initiated the first steps of nationwide crypto regulations.

The process has started by sending emails to representatives of the cryptocurrency industry, investors, and customers. They have less than two weeks to prepare statements with their comments on the proposals and send them back to the agency.

The coverage outlined that the potential regulations could affect almost all areas of the cryptocurrency industry. However, the legislation could exempt some professional activities, assets that are exclusively used as means of payment, and non-fungible tokens (NFTs).

Interestingly, the US also hinted at new rules regarding NFTs recently, but they seemed significantly more strict. The Internal Revenue Service (IRS) may implement taxes on NFT purchases made with profits of digital assets, as CryptoPotatoreported recently.

Apart from the aforementioned potential regulations on crypto assets, Spain has also explored developing a central bank digital currency. The country’s central bank said in late 2020 that releasing a CBDC is among the priorities in the next three years.

Regulations in Other Countries

The exponential growth of the entire crypto space in the past year or so has caught the attention of global regulators. Consequently, numerous countries have started looking into inserting legislative frameworks.

Spain’s northern neighbor, France, called for a new and robust approach towards crypto regulations in February this year. The chairman of the nation’s financial regulatory body (AMF) believes that the current legal structures are insufficient when it comes down to new asset classes such as digital currencies.

Continuing north on the map and Britain’s Finance Minister, John Glen, urged the country to firstly focus on regulating stablecoins rather than the entire market, while the FCA has repeatedly issued warnings.

In some countries, such as South Korea, the implemented regulations have caused troubles for some of the firms operating within their borders. The East Asian nation introduced new AML legislation last month, and several cryptocurrency exchanges announced closing doors for their respective South Korean branches in response.

Coinbase Reports Record-Breaking Q1 With $1.8 Billion in Revenue Ahead of IPO

A week prior to its direct listing on NASDAQ, Coinbase has posted preliminary Q1 data indicating a massive increase in its userbase and revenue. The trading volume has increased by nearly 300%, the revenue is about $1.8 billion, and more than 11% of all crypto assets are stored on the platform.

Coinbase’s Record-Breaking Q1

The largest US-based cryptocurrency exchange published its Q1 results yesterday, showing a substantial growth in every area compared to previous quarters.

Starting with the monthly transacting users (MTUs) – the increase is roughly 117% since the last three months of 2020. At the time, the number of the company’s user base was about 2.8 million, and it has expanded to 6.1 million in Q1 2021.

Naturally, this has also impacted the revenue, which has reached $1.8 billion. For comparison, this means a near 10x surge from the Q1 last year when it was around $190 million.

According to the preliminary estimations for this year’s first quarter, the net profit should be between $730 million and $800 million.

The company attributed a large part of its quarterly increase to the ongoing bull cycle in the cryptocurrency market. As bitcoin and numerous altcoins have exploded multi-fold in value since October 2020, it has garnered the attention of retail investors.

11.3% of Crypto Assets Held on Coinbase

Perhaps what’s even more notable for the entire cryptocurrency industry is the billions of dollars worth of digital assets held on the exchange. The report highlighted that as of March 31st, there were $223 billion stored on Coinbase.

With the entire market capitalization worth just shy of $2 billion at the time, this means that 11.3% of all cryptocurrency assets had a home on the US-based trading venue.

The firm’s estimations showed that roughly half – $122 billion – were “assets on the platform from institutions.” Coinbase is among the most preferred venues for accredited and institutional investors to receive exposure to bitcoin and other crypto assets. Consequently, the company projects a significant advancement on that front by the end of the year.

“We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class.” – reads the statement.

Coinbase’s record-breaking quarterly results come just a week before the company concludes its direct listing. As CryptoPotatoreported before, the giant exchange plans to go public on NASDAQ on April 14th.

Raze Network Announces Partnership with UNION

Today, we are excited to let you know Raze Network partners with UNION, a technology platform that combines bundled protection and a liquid secondary market with a multi-token model.

Under the UNION system, DeFi participants are able to manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION also aims to decrease the entry barriers for retail users and lays the foundation for institutional investors.

Privacy and protection, while often used together as a term, require the cooperation of different players to address the nuanced layers. For us, there are just too many synergies between UNION and Raze Network to pass up this chance to team up. UNION is known for its full-stack DeFi protection, open access for all, and creating peace of mind for DeFi users, all of which coincide with what we believe.

UNION’s approach is a natural fit for protecting value locked in Raze vaults and sent in payment channels. Beyond protection, we will explore extending our Secret DeFi Bridge to support their collateral optimization protection (C-OP) and lending platform (ULend) so DeFi participants can optimize their capital in a private fashion.

With UNION, we can help each other explore different ways of offering protection to users, be it in trading or via information and data exchange.

Raze Network, as a privacy protocol aiming to protect the user identity and confidentiality for the entire DeFi stack of the Polkadot ecosystem, can work to help UNION and UNION users acting as second-layer protection.

Additionally, with the Efficient Σ-Bullets algorithm, a self-developed algorithm based on the Σ-Bullets encryption proof mechanism of the open-source project Zether, we can help UNION encrypt user account balances and transactions, and eventually propel us toward finance sovereignty.

“We’re excited to bring our work at the UNION Protocol Foundation to the Raze Network. Privacy preservation is a necessary tool for ensuring self-sovereign data rights and maintaining transaction confidentiality in a complicated, composable DeFi environment. Privacy rights and data control architectures have had a foundational role in my own interests in distributed ledger technology; Raze has developed a leading-edge approach that is set for success. We’re looking forward to working with the Raze team and engaging their input as we address privacy considerations in our own work, going forward,”

said Michael Beck, UNION’s Project Lead.

About UNION

UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.

About Raze Network

Raze Network is a Substrate-based cross-chain privacy protocol for the Polkadot ecosystem. It is built as a native privacy layer that can provide end-to-end anonymity for the entire DeFi stack. The Raze Network applies zkSNARKs to the Zether framework to build a second-layer decentralized anonymous module. It will then be imported as a substrate-based smart contract. The objective of Raze Network is to enable cross-chain privacy-preserving payment and trading systems while protecting the transparency of your assets and behaviors from surveillance.

Tech has dominated the economy – but the real world is about to strike back

Even money itself has gone digital. Only about 3% of money globally is now in physical form. Bitcoin is now (measured by market cap, at least), the 13th largest currency in the world. It didn’t exist 15 years ago.

The key to this rapid growth is scalability. A digital product can be endlessly and instantly copied. I can design a fantastic app once, upload it to the app store once, and it can be downloaded a million or a billion times. If Google can get some new groovy feature in its search engine, then once implemented it’s almost infinitely scalable.

But let’s say I design a fantastic washing machine. It takes much longer to get this washing machine to the world – the fabrication and distribution are all tricky, but perhaps most difficult is the burden of regulation in the physical economy, particularly as it attempts to cross the national borders.

By contrast, the economy of the internet is (almost) borderless. The digital space, or certainly the areas where the innovation is, is largely unregulated – how do you regulate something that hasn’t been invented? So digital escapes the ties of regulation that curb the growth of the tangible.

Then, because of the extraordinary speed of growth in digital, there is the potential for investors to make far quicker returns on their investment. And so the digital economy attracts the most capital, the most talent and so on.

With this in mind, let us turn our attention to metals.

The physical world is treacherous and time-consuming

You don’t get much more tangible than metal. Mining is in many ways the most analogue industry there is; it is the very opposite of the dynamic digital world. A geologist is studying rock formations that took thousands of years to take shape, and will take decades to mine.

Sterling Corporate Bond PM Golan left Schroders after eight years

According to a letter to investors seen by Investment Week, Golan will remain with Schroders until mid Q2 as part of a transition period.

Managers Julien Houdain and Daniel Pearson will take on Golan’s responsibilities on the £1.2bn fund.

Both will become co-fund managers on the fund, with Houdain remaining co-manager of the £56m Schroder Strategic Bond fund that Golan also managed.

Pearson, who remains lead manager on the £472m Schroder High Yield Opportunities fund, will join Houdain as co-manager on this strategy.

Golan has been with Schroders since 2013 and was previously an equity research analyst at Grosvenor Fund Management.

Artemis’ Brennan to join Marriage and Warren at Tellworth Investments

A Schroders spokesperson said: “Jonathan Golan is leaving Schroders to pursue opportunities outside of the firm. We would like to thank Jonathan for his contribution and wish him every success for the future. Julien Houdain and Daniel Pearson will take on Jonathan’s portfolio management responsibilities.

“We have a strong, team-based approach and a robust investment process, which is designed to ensure continuity and consistency in the management of our fixed income portfolios. We are confident that we will continue to deliver an excellent service to our clients.”

Polkadot Investors Unimpressed With Tether News
Polkadot Investors Unimpressed With Tether News 101
Source: Adobe/Anneleven

Polkadot (DOT) investors seem to be unimpressed by the news that the most popular stablecoin is coming on this blockchain.

The issuer of the stablecoin, Tether, announced today that tether (USDT) will launch on Polkadot, becoming the first stablecoin on this network.

However, DOT, ranked 6th by market capitalization, is moving lower today after it rallied by 25% in a week. At 14:20 UTC it trades at USD 42.82 and is down by 2% in a day, becoming the worst-performing coin in the top 10 club today.

In either case, USDT is first set to go live on the canary network Kusama, before being deployed on the Polkadot mainnet, a blockchain created by Gavin Wood, co-founder of Ethereum (ETH), and developed by Web3 Foundation.

As reported, the experimental version of Polkadot, called Kusama, launched in July 2019, with real economic conditions, for developers to experiment in and test out a Polkadot-like environment. Less than a year later, in May 2020, as Polkadot Network – one of the top 10 ICOs of 2017 – went live as well.

Polkadot is a sharded protocol that enables different blockchain networks to operate together. It allows connecting and launching blockchain applications by using parachains (sovereign blockchains, or shards, with unique functions) to link to different networks.

The launch of USDT on Polkadot is pending the formation of these parachains, as independent chains that can have their own tokens and be optimized for specific use cases, the emailed press release said. Parachains will first launch on Kusama, which is why USDT will deploy on that network first prior to becoming available on Polkadot.

The announcement said that,

The aim is to ensure that when USDt is available, it will become the first ever stablecoin on the Polkadot network.

Per Polkadot’s road map, the network is currently in the “parachain rollout” phase. They will first be tested on testnets like Rococo, then will be launched on the Kusama proving ground, and finally on Polkadot, which will mark the network’s full launch. “Polkadot is now on track to launch several parachains in 2021,” it said.

Per Paolo Ardoino, Chief Technology Officer at Tether and crypto exchange Bitfinex, the company anticipates “a ready uptake of the Tether token as it powers Polkadot’s emerging DeFi [decentralized finance] ecosystem.” Ardoino added that, with its parachain structure, Polkadot “has the ability to grow significantly in the coming years […] driven by its high level of scalability.”

At the same time, “teams building decentralized applications in with a multi-chain future in mind are increasingly looking towards established stablecoins that operate across numerous networks to ensure a smooth experience for their users,” said Peter Mauric, Head of Public Affairs at Parity Technologies, who have served as Polkadot’s initial core development team. USDT’s launch on Kusama and Polkadot is “a crucial step” towards that goal, “where developers will be able to seamlessly compose trustless applications across chains, networks and communities,” he said.

USDT works on a number of different blockchains, including Algorand (ALGO), Ethereum, Tron (TRX), EOS, OMNI, Solana (SOL), Liquid Network, and Bitcoin Cash (BCH)‘s Simple Ledger Protocol (SLP).

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Learn more:

Tether’s Supply Dominance Hits Record Low as USDC & Co Rise

Tether’s Assets Exceeded Its Liabilities (On February 28) – Auditor

Polkadot: A Bet Against Maximalism w/ Gavin Wood

Why Is Polkadot Mainnet News Important to Blockchain Adoption?

Stablecoins May ‘Penetrate Non-Crypto Markets’ & Surpass USD 100B in 2021

The downfall of Archegos

Late last week, stockmarkets were rattled as the share prices of a handful of big-name tech and communications stocks – including Chinese tech giant Baidu and US media group ViacomCBS – plunged, as huge blocks of their shares were sold into the market. It turned out that a family office called Archegos Capital Management, run by former hedge-fund manager Bill Hwang, had run into trouble in the wake of a “margin call” (see below) from its lenders, triggering the sale of more than $20bn-worth of shares. So what happened, and is it anything that you need to worry about?

Archegos’s problems appear to have been triggered by ViacomCBS specifically. Between the start of the year and 22 March, shares in the media conglomerate almost tripled in value. Viacom decided to take advantage by issuing new shares. The share price fell, partly because existing shareholders would be diluted, but also because it had already seen such extraordinary gains, and no doubt some investors were looking for excuses to take profits. The decline appears to have triggered the margin call, and the resulting share sale exacerbated the decline.