On March 1, a well-known colossal whale holding bitcoins from 2010 activated 2,000 dormant bitcoins across 40 transactions in a single block. Just four days afterward, on March 5, this entity once more made waves by transferring 1,000 bitcoins originating from the same year. For the third instance in March, this entity has returned, reallocating […]
Source link
Grayscale has begun moving Bitcoin out of its trust and sending it to Coinbase as of 2 p.m. GMT, Jan. 12. A total of 4,000 BTC (roughly $200M) has been sent as of press time, with all Bitcoin going to Coinbase Prime, one of the key participants in the series of Bitcoin ETFs launched yesterday.
Coinbase acts as the broker and trading counterparty for almost all ETF issuers, including Grayscale. Thus, it is likely that this transfer indicates outflows from the trust from sales yesterday. The last outflows before today were around 2 weeks again, where there were multiple transactions in and out of the Grayscale Bitcoin wallets.
While the spot Bitcoin ETFs track the price of Bitcoin directly, they do not require issuers to buy and sell Bitcoin live during trading hours. The key times when Bitcoin is purchased or sold concerning the creation and redemption of ETF shares in the Grayscale ETF, for example, can be summarized as follows:
In both scenarios, the crucial time for initiating orders is before 2:00 p.m., New York time, on a business day. The actual transfer of Bitcoin (either to the Trust’s Vault Balance in the case of creations or from the Custodian to the Liquidity Provider in the case of redemptions) occurs on T+1 or T+2, depending on the specific circumstances of the order.
These transactions could potentially affect the spot price of Bitcoin, especially if large orders are placed. However, the exact impact on the spot price would depend on various factors, including the size of the orders relative to the average daily trading volume of Bitcoin and the market conditions at the time of the transactions.
The transfers of Bitcoin from the trust and the timing align with the creation and redemption processes, suggesting that perhaps just $200 million in redemptions was deemed necessary by Grayscale following the first day of trading. It is important to note that this is highly speculative, but one possible reason for the outflows stated above.
Furthermore, BlackRock’s day-one inflows were around $112 million, with only $10 million in seed capital. This indicates the fund should require at least $90 million in Bitcoin to match the share purchases.
Bloomberg’s Eric Balchunas shared estimates of around $720 million in inflows into Bitcoin ETFs on day one. However, as of the close of trading, he could not identify how much of these flows may be offset by selling out of the Grayscale trust, which has the highest fee by some margin among the new spot Bitcoin ETFs. Grayscale charges 1.5% annually, while others are as low as 0.2%, with some offering zero fees for a promotional period.
As with Grayscale, the above inflows will require the funds to match shares with Bitcoin, but all share creations must be done with cash. This means that Bitcoin cannot be used to create shares. If an investor sells shares in one ETF and buys shares in another, one fund cannot give Bitcoin to another if outflows go into another. Cash must be used for creation and redemption per the current SEC rulings.
For any funds using a T+2 settlement, with Monday being a bank holiday in the U.S., Bitcoin may not be settled until Tuesday, leaving room for an exciting weekend of Bitcoin price action.
The Dogecoin price has been put in a perilous position once more after a DOGE whale made a massive transaction to an exchange. The transaction which was flagged by a DOGE community member has raised eyebrows in the space and could possibly be putting sell pressure on the altcoin.
On Tuesday, a single transaction carrying over $7 million worth of DOGE was noticed by a Dogecoin community member who posted the transaction on X (formerly Twitter). This transaction caught the attention of the community because it was carrying a little over 85 million DOGE.
At the time of the transaction, this tranche of coins was worth approximately $7.57 million, making it a large whale transaction. The destination of the transaction was even more concerning given that the coins were being sent to the Robinhood platform.
Now, the reason that this transaction is important is the fact that crypto holders will usually send their coins to centralized exchanges such as Robinhood to sell their coins. This is because they can take advantage of the cheap fees, as well as the deep liquidity provided by these platforms, to enable them to sell such large transactions with ease.
Furthermore, the X user noted an interesting thing about the sender’s address after the transaction. The whale no longer holds any Dogecoin on their account balance, which means they have sent all their coins to the exchange. This could signal that the whale is looking to completely exit their position as Dogecoin fails to launch.
DOGE price at $0.09 | Source: DOGEUSD on Tradingview.com
The DOGE price could be seeing some negative headwinds ahead especially if this whale is really selling their coins. With sell pressure already pushing down the price, selling such a large amount of Dogecoin would no doubt trigger a further decline.
This sell pressure is already evident in the meme coin’s price which has fallen drastically over the past week. In the last day alone, DOGE’s price is down 3.28%, deviating from the Bitcoin trend that has seen the pioneer cryptocurrency recover from yesterday’s lows.
However, there could be a change in this sell pressure soon as bids for the meme coin start to ramp up. According to data from IntoTheBlock, bids are starting to overtake asks again, meaning that buyers are coming back to the market. If this continues, then Dogecoin could look to reclaim $0.1 once again.
At the time of writing, Dogecoin is trading at $0.08994, with a 2.37% decline on the weekly chart. Its market cap is sitting at $12.79 billion, making it the 10th-largest cryptocurrency in the space behind Avalanche (AVAX).
Featured image from 36Crypto, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Whether transferring money to family abroad or tipping a tour guide on vacation, Coinbase Wallet lets users easily create a personalized link for any payment amount.
Cryptocurrency platform Coinbase aims to make sending money worldwide easier, faster, and more affordable through newly added features. Users can now instantly send funds globally by simply creating a shareable payment link to distribute via messaging apps, social media, or email.
The new feature removes the need to exchange complicated bank details or wait through sluggish traditional wire transfers. With a few taps, people can generate a link to send money to recipients worldwide with virtually no fees for instant access.
Whether transferring money to family abroad or tipping a tour guide on vacation, Coinbase Wallet lets users easily create a personalized link for any payment amount. It’s as simple as sharing a text or email through a messaging app and it is available in over 170 countries and 20 languages for worldwide accessibility.
To illustrate this, suppose you wish to send money or provide a tip to someone who has completed a task for you. This individual could be located far away from you, but with the help of a simple process, you can effortlessly transfer funds without any complexities. All you need to do is generate a link on your Coinbase account, specifying the desired amount to be sent, and then share the link with the recipient through various platforms such as WhatsApp, Telegram, Email, or any other app that supports link sharing. In a recent blog release, the company stated:
“We’ve made it easy to send money anywhere you can share a link, whether it’s through messaging apps like WhatsApp, iMessage, and Telegram, social media platforms like Facebook, Snapchat, TikTok, and Instagram, or even via email.”
Recipients can claim transfers by clicking the link on any platform that supports Coinbase Wallet and utilizing the app. They can download the wallet app itself and instantly create an account in one click to receive funds. However, any money that is unclaimed is automatically returned to the sender after two weeks.
In addition to offering shareable links, Coinbase has been actively expanding user access on a global scale, now supporting fiat transactions in over 130 countries across the world. This widespread availability enables individuals from diverse nations to conveniently and swiftly conduct transfers using its platform.
Coinbase users situated in various countries can also receive funds from multiple cryptocurrency exchanges. Furthermore, they can convert their money into stablecoin USDC without incurring any fees and transfers at no network costs.
The company has also prioritized the development of an optional simplified mode, emphasizing an intuitive user experience to cater to a broader user base. These enhancements to the wallet align with Coinbase’s overarching objectives of facilitating streamlined cross-border money transfers with reduced complexity and fees, while simultaneously broadening access to the ever-evolving cryptocurrency landscape worldwide.
next
Crypto analyst Ali Martinez has warned of a potential correction for SOL.
The price of Solana (SOL) has experienced a 7% decline over 24 hours. However, at the time of writing the fall is not so critical. The coin is around 1% down. The Solana price today is approximately $60 despite the recent market corrections that saw the price of Bitcoin (BTC) and Ethereum (ETH) rise to $42000 and $2200 respectively for the first time since last year.
According to CoinMarketCap data, the crypto asset, dubbed the Ethereum killer, saw its market capitalization reduce to $25.5 billion after hitting $26 billion on December 4 due to the price decline.
In contrast to the recent price fluctuations, SOL has been on an upward trajectory since October, with the digital asset expected to break out of the psychologically crucial level of $65 after reaching $62. The price indicates a significant increase from the $23 it traded in August alongside other altcoins, which also experienced notable declines due to poor market conditions.
The token regained its sixth position among the top ten largest cryptocurrencies in the world by market capitalization. Analysts predicted that SOL could reach $100 by the end of the year once it breaks out of the $65 benchmark at the time.
However, the virtual asset has retraced back to $60, showing a massive 7% drop, and according to blockchain firm Lookonchain, an address associated with the FTX cold wallet, 4Axqyo…HswTAh unstaked a substantial amount of 1.5 million SOL, equivalent to approximately $90 million, on Tuesday, November 5 at 7:55 UTC+8.
The company said the entire unstaked assets were transferred to the address 3vxheE5…5mgkom. Lookonchain further revealed the recipient address later moved a total of 4.13 million SOL worth around $248.67 million to the American crypto exchange Coinbase.
1/ FTX-related address “4Axqyo…HswTAh” unstaked 1.5M $SOL($90M) 2 hours ago and transferred it to “3vxheE…5mgkom”.
And we noticed that “3vxheE…5mgkom” deposited 4.13M $SOL($248.67M) to #Coinbase 11 hours ago. pic.twitter.com/pQRNDZCvgy
— Lookonchain (@lookonchain) December 5, 2023
Recall that before FTX officially filed for bankruptcy protection last year in November, the defunct exchange held $1.2 billion in SOL. However, after the bankruptcy court greenlighted the sale, the company recently embarked on a liquidation journey, selling its crypto holdings to repay its creditors.
In October, an address linked to the troubled exchange transferred $15 million worth of SOL to Binance and Coinbase.
Blockchain security firm PeckShieldAlert said at the time that another cold wallet address belonging to the company also moved $2.5 million worth of other cryptocurrencies, such as $COMP and $RNDN, to Wintermute, a leading global algorithmic trading firm dealing in digital assets.
Meanwhile, despite the sell-offs, SOL investors remain resilient, continuing a bullish price rally for the crypto asset.
Analysts suggest a potential bullish scenario could materialize if the price breaks above $63.4, opening the possibility of a retest of the $65.3 resistance level.
In the event of a bullish breakthrough, market observers anticipate a potential ascent towards the $79.1 level. Conversely, a dip below the $59 level could signal a downward trajectory, testing the support level at $56.4.
Crypto analyst Ali Martinez has warned of a potential correction for SOL. He said the TD Sequential signals a sell on the SOL weekly chart, and the RSI is overbought. He further noted that a profit-taking surge could lead to a retracement to $47.6. However, to counter the bearish outlook, SOL needs a weekly close above $68.4, targeting $108.
next
Disclaimer: This article has been updated to reflect clarification from the Ethereum Foundation that Buterin was a signer on a separate multisig wallet transfer and did not directly send funds to Gemini.
The Ethereum Foundation has shed light on a recent $15 million USD Coin (USDC) transaction involving Ethereum co-founder Vitalik Buterin which garnered the attention of several blockchain tracking platforms.
On Oct. 17, posts from blockchain analytics firm PeckShield and Lookonchain on X both claimed that Buterin’s wallet, known as “vitalik.eth” transferred $14.93 million to the Gemini crypto exchange on Oct. 16.
However, an Ethereum Foundation spokesperson told Cointelegraph that the transfer was nothing more than Buterin’s Ethereum Name Service (ENS) signing off on a transfer from a charity multisig wallet to fund a grant, adding that the funds never actually left Buterin’s wallet.
#PeckShieldAlert #vitalik.eth haas transferred ~15M $USDC (Multisig Contract 0xf207…D5a3) to #Gemini pic.twitter.com/6FZGKLKg9Z
— PeckShieldAlert (@PeckShieldAlert) October 17, 2023
Kanro is a biotech charity funded by Buterin that aims to address COVID-19 and other pandemic-related issues.
This will be done under my entity Kanro with its multisighttps://t.co/qloGu4a4vK
where @CryptoRelief_ and I are going to disburse the funds to.
— vitalik.eth (@VitalikButerin) June 8, 2023
Related: Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH price reverse course?
Buterin’s various crypto transfers have been in the limelight over the last several months, while transfers from Buterin’s wallets totaled more than $3.9 million in September.
On Sept. 24, Buterin transferred 400 ETH — worth $600,000 at the time — to Coinbase. Cointelegraph also reported a 600 ETH ($1 million) transaction from the vitalik.eth address on Aug. 21, which was also identified by on-chain monitoring platforms.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines
Update (8:45 am Oct. 17): This article has been corrected to reflect details provided by an Ethereum Foundation spokesperson.
Crypto asset businesses in the United Kingdom could now begin withholding certain crypto transfers to comply with the new Travel Rule for crypto that came into effect on Sept. 1.
The rules targeting virtual asset service providers were first introduced by the Financial Conduct Authority on Aug. 17, requiring that VASPs based in the U.K. “collect, verify and share information” relating to crypto-asset transfers.
If an inbound payment is received from a person or entity from an overseas jurisdiction that hasn’t implemented the Travel Rule, the VASP must make a “risk-based assessment” as to “whether to make the cryptoassets available to the beneficiary.”
The Travel Rule is designed to bring greater transparency to cryptoasset transfers, making it harder for criminals to use #crypto for illegal activity.https://t.co/kmB6rgMn5e
— Financial Conduct Authority (@TheFCA) August 17, 2023
The same rule would also apply to Brits looking to send payments outside of the U.K.
The Travel Rule was created by the UN agency Financial Action Task Force in June 2019. The U.K. passed legislation to begin enforcing the Travel Rule in July 2022.
It attempts to enforce Anti-Money Laundering and Counter-Terrorist Financing rules on activities carried out on-chain.
Other countries that have adopted the Travel Rule include the U.S., Germany, Japan, Singapore, Switzerland, Canada, South Africa, the Netherlands and Estonia, according to Sygna.io.
Related: Crypto ads face stricter rules, referral bonus ban by UK FCA
On June 23, the FATF called out member states for failing to sufficiently implement the rule after a survey revealed more than half of them have failed to take any action towards implementing the rule.
A March 2022 survey by FATF found only 29 of 98 jurisdictions at the time passed the requirements needed as part of the travel rules and a small subset of these jurisdictions had started enforcement.
Ian Andrews, the chief marketing officer of blockchain forensics platform Chanalysis, explained in April 2022 that coordinating the exchange of information between VASPs cross-borders will be a “pretty hard problem” to solve — at least at the onset.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
