- “While many VCs have “paused”, we are actually more comfortable investing now,” Binance CEO CZ.
- Bitcoin is stuck in a larger range resistance with the upside limit at $3,600.
The CEO of the world’s largest cryptocurrency exchange, Binance Changpeng Zhao or otherwise known as CZ said earlier today that the company is perfectly fine with Venture Capital putting money into the crypto industry even as the market continues to spiral as opposed to investing while the market is down. The comments he shared via Twitter read:
“While many VCs have “paused”, we are actually more comfortable investing now.
Valuations are more reasonable, most have prototype/product, only strong teams left. Much better investment opportunities than at ATH.”
It is believed that the CEO made the comments in regards to another comment published by, Barry Silbert, the founder of a VC firm, Digital Currency Group (DCG) on Wednesday this week. Barry wrote saying:
“We’ve seen half a dozen fundraising deals fall apart over the past month after the lead pulled out. All is not well in crypto VC investor land. Good time to remind founders that a signed term sheet does not equal cash in the bank.”
Binance Labs, the VC branch of Binance was recently reported by CoinDesk, a crypto news website that it “will launch new incubator programs in Berlin, Buenos Aires, Lagos, Singapore and Hong Kong come March 2019.” This how Binance is comfortable investing at the moment, when the market is generally in the red.
Bitcoin price technical picture
Bitcoin refreshed 2018 lows towards the end of the session yesterday. The asset touched base with $3,200 as the sellers envisioned BTC/USD at $3,000. However, the buyers were able to draw the line in the sand preventing declines below $3,200. At present, Bitcoin is changing hands at $3,256.38, unfortunately the bulls do not have a catalyst to support above $3,300. The hourly moving averages are above the price to show that the bears’ influence is still significantly present in the market. Bitcoin is stuck in a larger range resistance with the upside limit at $3,600 and a support at $3,200 as seen in the chart below. Technical levels are not extremely bad for Bitcoin since the RSI has avoided the oversold region and is currently in a slight downward slope. The same trend is seen with the DMI on the same 1-hour range.
Hacked Cryptopia Funds Frozen By Binance Exchange, Investor Concerns Arise On Fungibility
Hacked Cryptopia Funds Frozen By Binance, Concerns Arise On Fungibility
The evening of January 13th was quite an unfortunate one for Cryptopia. The crypto platform was hacked to a tune of $3.5 million in cryptocurrency.
Cryptopia is a small exchange platform that trades an average of $2 million on a daily basis. Recently, a percentage of the funds were transferred to Binance cryptocurrency exchange.
Addressing the incident, the CEO of Binance, Changpeng Zhao, made a decision to freeze the funds. This was after the hackers had already managed to send 31,320 Metal (MTL) ERC20tokens to Binance. The tokens were trading at $0.24, thus at least $7,500 was stolen in cryptocurrency.
He also questioned the fungibility and privacy that surrounds cryptocurrency. Now that the funds have been frozen, and the New Zealand authorities are involved, hackers may be trying to find alternative ways to convert and launder the funds.
How Fungible Is Cryptocurrency?
Just like in economics, fungibility in the crypto world is the notion that any coin is identical and can be substituted for another in the same denomination. Similarly, one may reason that all bitcoins are equal and all have the same value.
However, it all comes down to how it can be traced. Bitcoin that has been subjected to criminal activity or fraud can no longer be comparable in value to a ‘clean’ bitcoin. Such coins could end up being blacklisted on exchanges, and the future recipients may face legal penalties.
Freezing the hacker’s funds was the right thing to do. Crypto exchanges must always work together to curb such incidences of illegal activity. On the other hand, how Binance identified the stolen funds and was able to get a hold of part of it has raised concerns.
In a scenario where a person accepts $20 in cash, he or she cannot trace the previous owners. However, a person who receives $20 in bitcoin can do so using the previous wallet addresses that are linked to that every transaction. It would not be easy to lawfully address such circumstances and as such false accusations and judgement may arise.
It’s easier to know if commodities or goods are purchased unknowingly. Laws can be enforced rightfully and authorities have the right to seize the stolen goods.
Individuals, businesses, and exchanges may have to go through similar processes, though, it may bring about difficulties in the crypto transaction process and an increase in costs.
Crypto users have been taking precautions such as personal identification, keeping wallet addresses anonymous, using a new wallet address during each transaction and using cryptocurrency mixers.
They have also found other effective ways of obscuring the history of previous transactions of funds prior to making new purchases.
Until there is clarity in fungibility issues, law enforcement and regulators will set clear standard actions in case of money laundering or other illegal activities involving crypto.
Monero and ZCash are privacy coins that may have a solution to obfuscate transaction history. Nonetheless, these two coins need to work along with already established networks like Ethereum and Bitcoin.
Binance’s new fiat-to-crypto exchange is “overwhelmed with registrations”
Yesterday brought the launch of Binance’s new fiat-to-crypto exchange, allowing EU customers to trade their GBP or Euro fiat, for Bitcoin (BTC) and Ethereum (ETH). Just one day after the launch and the exchange is already inundated with registration requests.
GBP and EURO should be a big deal, right? https://t.co/d15yZS2uRl
— CZ Binance (@cz_binance) January 16, 2019
The exchange even put on a promotion, incetivizing the first 5000 users with 20EUR upon sign up. Something which undoubtedly led to the abundance of registrations, now apparently creating a backlog:
https://t.co/THxfdd3RD2 is overwhelmed with registrations. There is a backlog of KYC verifications already. More resources are allocated to reduce it. In the mean time, we appreciate your understanding and patience. The registration prize is FIFO based, no worries. Just crazy!
— CZ Binance (@cz_binance) January 17, 2019
Engagement on this level spells good news for the industry, with new users spilling in and getting involved. On ramps and off ramps such as this new exchange are a vital way to encourage new investors and further usability; leaving the market open to adoption from a less niche demographic.
Many of crypto twitter shared their thoughts on the new exchange and the impressive sign up rate:
This reminds me of the bull run last year during Binance dot com when accounts were temporary closed due to so many sign ups. Glad to hear this is a problem 🙂
— rallyqt (@rallyqt) January 17, 2019
Still waiting for mine as well, but it's worth waiting for. No reason for me to use Coinbase anymore now.
By the way. Your KYC procedure is ten times better than the one on Coinbase. Hands up for the work you and your team are doing 🙌
— CryptosBatman (@CryptosBatman) January 17, 2019
This isn’t a first for Binance, last year it opened up similar operations in Uganda, with UGX-BTC and UGX-ETH trading pairs. According to CEO Changpeng Zhao AKA CZ, this is just the start, with further plans to open 5-10 fiat-to-crypto exchanges across 5 continents this year.
Binance adds 4 stablecoin trading pairs for WAVES
Today Binance announced the addition of 4 new stablecoin trading pairs for WAVES.
The leading crypto exchange Tweeted that the pairs will include WAVES/PAX, WAVES/USDT, WAVES/TUSD, and WAVES/USDC commencing trading on the 18th January
— Binance (@binance) January 17, 2019
The tweet was met with much excitement from WAVES enthusiasts, excited at the prospect of directly trading the crypto for a stablecoin:
Yes!!!! @cz_binance you really do listen to your users, much respect! I look forward to trading these new pairs. Thank you.
— Senrav (@SamsonSenrav) January 17, 2019
We are coming in WAAAAVVVEESSS pic.twitter.com/4aQmBfUkZH
— VeChainWinner (@VirusVeChain) January 17, 2019
And of course (as per usual) Binance was inundated with requests from various sects of crypto twitter to add their favored cryptocurrency:
— Justin (@King_Arku) January 17, 2019
add LTC/USDC @binance
— Aborisade Glory (@glorieazy) January 17, 2019
Waves enjoyed a slight price spike to $2.66:
However, according to one user, this came 10 prior to the announcement:
Waves enjoyed a slight price spike to $2.66:
Yes pls explain 🤔
— Cruz (@C_r_u_z__) January 17, 2019
Waves has enjoyed a fairly hassle-free bear market capered to the rest of its contemporaries, even rising to an impressive $4.40 on the 20 December 2018, amidst a downward turn for most other cryptocurrencies.