View profile

Bitfinex v NYAG Standoff; BTC Volatility Retreating

Check out past issues of the newsletter along with more interesting crypto content as well as short (

Satoshi&Co Daily Crypto Newsletter

July 30 · Issue #217 · View online
ZPX | Satoshi&Co Newsletters

Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website

Bitfinex v NYAG continues to be quite the summer potboiler.
One of our earlier editions discussed NYAG’s accusation that Bitfinex allegedly borrowed $850 million from Tether’s reserves to cover up the money that was owed to Bitfinex by a Panama-based crypto payments processor. The case reached a new high (touched new lows) in court yesterday. NYAG claims that Bitfinex defrauded its investors by not disclosing the alleged $850 million that it borrowed from USDT’s reserves. Every USDT is supposed to be backed by a US dollar held in a bank account so that every token is fully collateralized. Bitfinex claims that NYAG lacks the required legal jurisdiction to investigate Bitfinex as Bitfinex does not serve any NYC customers as per their terms and conditions. The battle came to a temporary halt when the judge decided to grant a 90-day extension period to resolve the case. This means that NYAG can continue its investigation on Bitfinex and Bitfinex can continue its operations, but cannot transfer funds from Tether to Bitfinex anymore.
After reaching a new high for the past 15 months, BTC’s volatility has started to retreat in the past few days. Bitfinex’s court hearing was expected to cause a lot of chaos in the market, but now that the court has granted a 90-day extension for the case, BTC prices are expected to operate in the narrow band of $9k-10k for a meaningful period of time. We expect this range-bound price behaviour to continue until the market starts pricing in the supply shortage post the block reward halvening event in May 2020. 
And now onto our weekly market update from @Shreyas Chari of @QUMEexchange
The last two weeks in BTCUSD have been a round trip with a range of 11%. So while daily volatility is high with frequent 5%+ moves, weekly volatility has compressed. This usually is a sign of a market that’s digesting some moves, especially the last wave started in June that propelled the mkt to a new trading range. This time as well volumes have shrunk in this back and forth action which is normal.
On some of the metrics we like to follow, transactions have remained steady, fees have fallen.
Source: bitinfo.charts
Source: bitinfo.charts
Interestingly, top 100 addresses to total coin % has dramatically fallen over the weekend.
Active addresses has been declining over the month so could be signs of some lightening up in the whale wallets rather than an increase in accounts or smaller wallets.
Source: bitinfo.charts
Source: bitinfo.charts
The excellent Woobull charts here are showing some bullishness in the NVT ratio.
The NVT signal which we like more is showing signs of working off the overbought conditions from last month. This is more bullish longer term, shorter term probably indicates lower pricing but within the context of the past 4 weeks or so.
Meanwhile in Crypto Wonderland....
“Leading Bitcoin Wallet Company To Launch An Exchange”
Bitcoin wallet and blockchain explorer provider Blockchain just launched its first exchange platform. Blockchain’s head of retail products, TD Ameritrade alum Nicole Sherrod, told CoinDesk the custodial exchange, called The PIT, can connect to non-custodial Blockchain wallets for nearly instant transfers. Registration opens today, with the ability to trade up to 26 assets rolling out over the next two weeks. Sherrod said that with nearly 40 million wallets already created – and an exchange matching-engine set up in London’s Equinix LD4 data center – PIT could be posed to attract more liquidity than competitors.
“Prime Trust Rolls Out Instant Crypto Fiat Settlement Feature”
The Nevada-based crypto custodian and trust company Prime Trust has rolled out a real-time settlement network that enables counterparties to transfer assets. As per a press release, the new service called PrimeX will allow Prime Trust’s institutional and retail clients to immediately transfer assets, such as stocks, bonds, real estate, fiat currencies, and digital currencies, between any of their own or another client institution’s or individual’s account. The company said the platform is currently being used by “industry-leading exchanges, OTC desks, market makers, stablecoins, and traders” without specifying these clients.
“Bitstamp To Support GBP Transfers Soon”
Bitstamp, Europe’s largest cryptocurrency exchange, and BCB Group, one of the world’s leading global digital asset prime brokers, today announced a new partnership that will enable investors from the UK to transfer GBP directly to and from their Bitstamp accounts. Through this partnership, Bitstamp will be able to support deposits and withdrawals directly in GBP, providing increased efficiency and reduced costs for clients. The new GBP service will be available to Bitstamp’s customers by the end of the year. BCB Group’s range of solutions has been developed to cater to the needs of exchanges, institutions and high net worth clients seeking OTC best execution for their own accounts and who wish to offer cryptocurrency products and services to their own clients.
“Zcoin’s New Protocol Launches On The Mainnet”
Zcoin, an anonymity-focused cryptocurrency, is hoping to ramp up adoption by launching the Sigma protocol on its mainnet today, the firm shared with The Block on Tuesday. Zcoin was among the first cryptocurrencies to use zero-knowledge proofs but is now replacing its Zerocoin protocol with the Sigma protocol, aiming to fix underlying vulnerabilities. In particular, the protocol is geared at preventing an attacker from creating counterfeit privacy coins and inflating the supply, which fellow privacy coin Zcash faced earlier this year.
Crypto Twitter Pick
Dan Elitzer
Every fintech company’s endgame is essentially to become a bank and earn money off float/spread.

Open Finance protocols let any company be a (trustless) bank Day 1.

Advertising is the default business model of web2; opportunity cost will be the native business model of web3
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
You are getting this newsletter because you or someone in your organization signed up for this. You can find more stuff to read at our news and research portal, our crypto index token and our upcoming relayer.
Brought to you by Satoshi&Co
Brought to you by Satoshi&Co
This newsletter does not constitute an offering of securities in any jurisdiction. The contents of this note should not be construed as investment advice or as a recommendation to purchase securities. This note is intended for the consumption of the recipient alone and not for public distribution. Please consult a certified financial advisor or other appropriate practitioner as may be appropriate as per your jurisdiction.
ZPX Copyright © 2019
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue
ZPX | 21-01, Clifford Center, Raffles Place, Singapore- 048621