Cryptocurrency

Binance to Launch Recovery Fund for Viable But Low Liquidity Cryptocurrency Projects

Key cryptocurrency players to start co-investing in strong but liquidity-challenged cryptocurrency projects.

Published

1 year ago

November 15, 2022

Following a series of crises rocking the cryptocurrency space, Binance has announced plans to partner with other industry players with cash to provide liquidity support for strong cryptocurrency projects in a liquidity crisis.

Other industry players, Tron, Huobi Global and Poloniex have said they will support Binance through co-investment in this initiative.

Earlier this year, Luna with a $40 billion market value plunged to zero with cryptocurrency investors and other people familiar with the situation accusing the founder of transferring millions of dollars from the project prior to the collapse.

Similarly, the FTX exchange platform collapsed with billions of investors’ funds, sending the entire cryptocurrency market into panic with the CEO of Binance predicting more collapse from poorly managed fraudulent companies. This led to aggressive withdrawals from both viable and questionable cryptocurrency projects and subsequently, the stoppage of withdrawal by most cryptocurrency platforms and the eventual decline of Bitcoin below $18,000 a coin to $16,000, down from about $66,000 it traded in 2021.

To avoid more viable cryptocurrency project filing for bankruptcy because of low liquidity caused by the activities of fraudulent projects, Binance and other key players in the industry will start co-investing in them during a crisis like this.

“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” Binance CEO stated.

“Also, welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Bitcoin

Bitcoin Bulls Run Amok: Short Traders Hit with $90 Million Loss Amidst Unstoppable Surge

Published

6 hours ago

December 6, 2023

Investors King

The relentless surge in Bitcoin’s prices has left short traders reeling as highly leveraged futures bets against the cryptocurrency incurred losses totaling $90 million on Tuesday alone.

This follows an additional $70 million in short liquidations on Monday, contributing to Bitcoin’s remarkable climb from $39,000 to $44,000 this week.

According to data from CoinGlass, most of these liquidations transpired on major crypto exchanges, including Binance, OKX, and Huobi.

The substantial liquidation figures have the potential to signal either a local top or bottom in a significant price movement, providing valuable insights for traders looking to strategically position themselves.

The surge in trading volumes, up by 25% in the past week, coupled with the growth in open interest from $17.2 billion to $20.2 billion since the beginning of December, underlines the increased market activity around Bitcoin.

Several factors are contributing to Bitcoin’s recent growth. Optimism is swirling around the potential approval of a spot exchange-traded fund (ETF) in the U.S., with traders factoring in anticipated rate cuts, buoying riskier assets like technology stocks and Bitcoin.

Additionally, the possibility of sovereign adoption is gaining traction as leaders in major economies express a Bitcoin-friendly stance.

Over the weekend, a notable group of traders committed to a $200 million BTC futures position, emphasizing the sustained demand for exposure to Bitcoin.

Amid continuous updates and changes in spot ETF applications, some industry observers foresee Bitcoin prices surpassing the $48,000 level in the coming weeks, further intensifying the cryptocurrency’s bullish momentum.

Dogecoin

Dogecoin (DOGE) Rides Bitcoin Surge, Gains Over 10% in 24 Hours

Published

6 hours ago

December 6, 2023

Investors King

The cryptocurrency market is witnessing a resurgence of risk appetite as more investors jump on unconventional choices such as Dogecoin (DOGE), Shibacoin, Memeland, etc.

In the past 24 hours alone, DOGE has surged by over 10% to $0.10 a coin for the first time since April following Bitcoin’s climb from $38,000 to $44,000.

This surge, coupled with the rising price, validates the upward trajectory of DOGE, signaling growing investor interest.

Funding rates on various exchanges have also experienced a substantial surge, hitting an annualized 50% or more.

These rates, reflecting a steep premium in perpetual futures relative to spot prices, indicate a prevalent bullish sentiment among investors.

It underscores their collective optimism, suggesting a belief that prices are poised for further upward momentum.

Joke cryptocurrencies like DOGE have historically exhibited high-beta characteristics, closely mirroring Bitcoin’s movements but often with greater intensity.

Investors are advised to exercise caution and monitor DOGE’s potential for extreme bullish action relative to Bitcoin, serving as a potential indicator of speculative exuberance typically observed in the latter stages of a widespread bullish trend.

Cryptocurrency

Terra Ecosystem Tokens Surge Over 300% Weekly Gains in Remarkable Reversal

Published

1 day ago

December 5, 2023

Investors King

Several tokens associated with the Terra ecosystems, including Terra 2.0 and Terra Classic, posted an impressive gain in the past week with weekly gains surpassing 300% and year-to-date increases exceeding 10,000%.

This resurgence is being hailed as one of the most remarkable project reversal stories in the crypto industry.

James Wo, founder of crypto fund DFG, commented on the Terra community’s resilience, stating, “Despite facing a supposedly fatal blowup event, it didn’t undermine the strength of the community and the technology at its core.

Terra stands out as a community filled with motivated and skilled individuals. Through strategic realignment and adaptability, they are demonstrating resilience and unwavering belief in the Terra ecosystem. It’s a story worth watching.”

Key tokens driving this surge include Luna Classic (LUNC), Terra 2.0 (LUNA), and terraUSD classic USTC, all experiencing gains of up to 70% in the past 24 hours. The cumulative trading volumes have surpassed $2 billion.

Terra Classic, the original network created by Terraform Labs, has maintained its independence, while Terra 2.0, a forked version following Terra’s challenges, is actively traded on the market.

Recent catalysts for the surge include Terraform Labs allocating $15 million to two projects within the Terra ecosystem to enhance liquidity and various initiatives, such as the Terra Classic ecosystem revival plan proposed by the “Six Samurai” engineers, aimed at testing financial services, generating yield, and rewarding developers.

As Terra’s tokens continue to experience this notable rally, the crypto community is closely monitoring the unfolding story and its potential implications for the broader industry.