Ethereum (ETH) founder, Vitalik Buterin, recently admitted that he sold (and gave away) his Ether holdings for cash when the price was just $700.
While he did not say he sold his entire ETH stake, which is rather unlikely, Nairametrics has not been able to figure out how many ETH coins was actually sold.
“I sold ETH at $700, or about half the top (actually, both sold and donated). The Ethereum Foundation sold at $1200, and that money has gone into devs and grants since then,” he tweeted.
*I* sold ETH at ~$700, or about half the top (actually, both sold and donated). The *ethereum foundation* sold at ~$1200, and that money has gone into devs and grants since then.
— vitalik.eth (@VitalikButerin) August 17, 2020
Meanwhile, Ethereum’s development activity and baseline metrics still justify it as being one of the safest long-term holds in crypto.
ETH’s fundamental analysis
On a shorter-term scale, Nairametrics’ believes the daily active address versus price model has continued to show a concerning lack of unique addresses on July 27th, which indicated that a push toward a $400 price level could be imminent.
When this came to fruition two weeks later while active addresses remained high, the dropoff of DAA was as steep as it was sudden.
401,700 active addresses were recorded recently, while Ethereum continues to trade around $425. Unless Ethereum’s active addresses gain again to provide fundamental support for its current price action, the viability of Ethereum’s midterm rally may be put to the test.
Meanwhile, Ethereum co-founder, Vitalik Buterin, also spoke about how hard Ethereum 2.0 “was to implement from a technical perspective than he had envisaged.
“I definitely freely admit that Ethereum 2.0 is much harder than we expected to implement from a technical perspective.
“I definitely don’t think that we discovered any fundamental flaws that make it impossible, and I do think it will be finished. It’s just a matter of time, and it’s actually been progressing quite quickly lately.”
Customers’ data: Coinbase received 1,914 requests from FBI, SEC
Coinbase recently disclosed it had a significant number of requests from law enforcement agencies regarding customers’ data.
The world’s most valuable crypto exchange, Coinbase, recently disclosed that it had a significant number of requests from law enforcement agencies in the world’s largest economy, U.S, and other parts of the globe.
In its first-ever Transparency Report, Coinbase disclosed that it currently serves about 38 million customers globally, thus it collected 1,914 requests from global law enforcement and government agencies in H1,2020 that sought to get details on customers’ details and their financial data.
Unsurprisingly, the United States leads the pack with 58% of such requests; others include law enforcement agencies from the United Kingdom, Germany, and France which filed for 441, 176, and 45 information requests, respectively.
Why this matters: The leading American U.S crypto exchange believes that trust is optimized through transparency and honesty via releasing a Transparency Report that shares insights into how it handles legitimate government requests for some customers’ data.
Coinbase believes that transparency reports like this should be encouraged, in spite of the opaque reporting seen by many startups, especially in financial services. It believes that it is important, not just for crypto companies, but for fintechs and banks at large to shed light on financial data sharing practices, and contribute to the understanding of industry trends in a meaningful way.
- 58% of all requests come from US agencies.
- 90% of all requests come from three jurisdictions: the U.S., UK, and Germany.
- 16% of all U.S. requests come from state or local authorities.
Bitcoin could reach $225,000 by 2021
Morgan Creek Digital Assets’ Anthony Pompliano outlines key fundamentals that may trigger Bitcoin price action.
Popularly known Crypto hedge fund manager and co-founder of Morgan Creek Digital Assets, Anthony Pompliano, recently revealed some key strategies on how the world’s flagship crypto, Bitcoin, could reach $225,000 by 2021.
In his most recent letter to investors, the hedge fund manager outlined key fundamentals that may trigger such price action in the not too distant future by saying:
“The average investor fears inflation right now, regardless of whether we actually see that inflation or not. This fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc). The combination of the Fed’s asset price manipulation and inflation fears have driven gold and Bitcoin to drastically outperform equities and other commodities.
“Let’s first look at the demand side of the equation. The macro-environment is serving as a tailwind. Bitcoin is up more than 50% year-to-date. The continued 0 rate environment and QE will continue to drive demand. Additionally, we are seeing traditional asset management firms start to make the leap into owning Bitcoin.
“Fidelity Investments recently published a paper showing a positive impact for 1%-5% Bitcoin allocation in clients’ portfolios. Stone Ridge ($10B asset manager) now owns $115M in Bitcoin.
“Paul Tudor Jones publicly revealed that he has put 2% of assets into Bitcoin. Multiple public pensions in the US have now gained exposure to Bitcoin via fund managers. Grayscale, the largest digital asset investment manager, saw record inflows of $1B+ in 3Q20 and now has almost $6B in total AUM.”
Why it matters: The world’s economy now looks to be heading toward the insolvency phase, meaning that crypto traders, and global investors are now wary that pre-COVID-19 global economic growth will take longer than anticipated, thereby leading popular companies to hedge against currency devaluation and inflation via investing in digital assets like Bitcoin. Coupled with the bias, there is a fixed amount of BTCs to satisfy the huge appetite prevalent in institutional investors.
Anthony Pompliano also gave key insights on why bitcoin’s high demand, in spite of its fixed amount of supply, might just signal the push in price value next year. He said:
“This increase in demand is just starting in my opinion. We can list all of the leading, forward-thinking firms in only two paragraphs. Eventually, their peers will join them. The demand outlook is strong, and it shows signs of actually accelerating into the first half of 2021.
“More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months. This means that the majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.
“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and (c) the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin.”
Fate of $2.3 billion worth of Bitcoins in Limbo
Ongoing investigation by law enforcement officers has left $2.3 billion worth of Bitcoin in limbo.
Bitcoin holders are definitely watching the OKEx story with keen interest as crypto experts estimate that an ongoing investigation by law enforcement officers has left $2.3 billion worth of Bitcoin (BTC) in limbo, at a once leading cryptocurrency exchange, OKEx.
Digital asset withdrawals at the OKEx remain frozen, as reports reaching Nairametrics reveal OKEx’s founder, Xu Mingxing, was arrested by the police a couple of days ago. That has led to global investors being a bit jittery about the happenings of the ever-changing crypto market.
However, OKEx assured its clients that their crypto assets remained safe and that the crypto exchange’s secondary functions remain stable for now.
Withdrawals of digital assets/cryptocurrencies @OKEx are currently suspended. Other functions are up and running. Funds and assets are safe and not affected.
We sincerely apologize for any inconvenience. Further announcements will be made. pic.twitter.com/t14l7z0EUL
— OKEx (@OKEx) October 16, 2020
The popular crypto analytic firm, Glassnode, recently showed that OKEx holds hundreds of thousands of BTC worth over $2 billion dollars.
“According to our data, around 200,000 BTC (1.1% of the circulating Bitcoin supply) are currently held in OKEx wallets. That is around $2.3 billion worth of $BTC stored in the exchange’s vaults,” Glassnode tweeted.
— glassnode (@glassnode) October 16, 2020
OKEx issued a press release on the ongoing investigation with law enforcement officers,
“One of our private key holders is currently cooperating with a public security bureau in investigations where required. We have been out of touch with the concerned private key holder. As such, the associated authorization could not be completed.
“Pursuant to 8.1 Service Change and Interruption of the Terms of Service, OKEx may change the Service and/or may also interrupt, suspend, or terminate the service at any time with or without prior notice. In order to act in the best interests of customers and deliver exceptional longtime customer service, we have decided to suspend digital assets/cryptocurrencies withdrawals as of [October 16, 2020, at 11:00 (Hong Kong Time)].”