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Conference Pumps Chainlink

Chainlink pumps, July 2020Chainlink has suddenly jumped to a market cap of close to $3 billion and is nearly overtaking litecoin to now tenth position in crypto rankings. The ethereum based token has…

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Chainlink has suddenly jumped to a market cap of close to $3 billion and is nearly overtaking litecoin to now tenth position in crypto rankings.

The ethereum based token has doubled in the past week and is up some 4x since March, rising from about $2 to now $8 as can be seen above.

It has also seen significantly increased volumes of $1.6 billion, up from the usual $300 million in June.

The recent straight up line appears to be due to the announcement of a conference to be held in August.

They expect speakers from Microsoft, Oracle, ConsenSys, Synthetix, Aave and a lot more, with this seemingly being more a somewhat general defi conference but with a Chainlink focus.

The rise of decentralized finance (defi) has also propped up chainlink which is kind of a template to connect smart contracts with centralized APIs to increase robustness as instead of getting say the price from one exchange, the chainlink nodes can feed the price from many exchanges.

The need for more than one price feed was shown in February when derivatives decentralized exchange (dex) bZx saw the price of wBTC plunge due to a flashloaner shorting it before then spot selling it on Uniswap which apparently was the only one that fed into Kyber’s price.

bZx used only Kyber for the price setting of its derivatives, and therefore to manipulate it was somewhat easy for the skilled coder.

bZx then announced they will use chainlink, but some call this project just a json parser as conceptually there’s little reason why the dapp can’t set itself multiple API price feeds to the smart contracts.

Having the skills and knowledge to do it, however, can be another matter. Thus just delegating this important aspect to another project may well be an easy choice for some dapps.

For that they have to pay the link holders with link tokens which thus conceptually gives it some value, but 65% of these tokens are held by the chainlink team.

That gives them considerable potential influence over the price as shown last year when they were accused of crashing it by selling significant amounts.

Yet instead of that sending it to the wilderness, it appears to have led to only a pitstop with this much shilled token on /biz/ not only recovering, but doing so with a bang.

And why not. Jason Parser is a great guy, but busy dapp devs may well let specialists deal with Oracles as nutshelled in our interview last year with a Chainlink dev.

Also this token has been one of, if not maybe the only one, to keep at least some in a party mood during the bear years of 2018 to ??? well hopefully 2020.

But it is also a token that can fall just as quickly as it can rise, especially if the devs suddenly need more money for that Jason Parser guy.

Blockchain

FinCEN, Fed Reserve Want Changes to ‘Travel Rule’ Reporting

The proposed changes would require financial institutions and crypto firms to share data on international funds transfers above $250.

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In brief

  • The “Travel Rule” requires financial institutions, including crypto companies, to share information on transfers above $3,000.
  • A new proposal from FinCEN and the Federal Reserve would lower that to $250 for international transfers.
  • Most suspicious transfers from 2016 to 2019 were for under $500.

The Financial Crimes Enforcement Network [FinCEN] and the Federal Reserve are seeking industry input on proposed changes under the Bank Secrecy Act that would lower the threshold for reporting international fund transfers.

The proposed changes to the “Travel Rule” would require money transmitters to collect, retain, and transfer certain information on international fund transfers as low as $250, which is well below the existing threshold of $3,000. The proposal would also clarify regulations to require reporting on convertible virtual currency, as well as transactions involving digital assets with legal tender status.

The proposed changes, which involve funds transfers into and out of the US, are designed to combat various criminal activities ranging from drug trafficking to terrorism. Officials believe that lowering the reporting threshold amount could help national security officials and law enforcement better analyze and combat these types of criminal activities. 

FinCEN data involving 2,000 “suspicious activity reports” from 2016 to 2019 referenced 1.29 million underlying transmittals of funds, with 99% of the transactions either beginning or ending in the US, according to a notice in the Federal Register. The data shows the mean and median dollar value of the transfers were $509 and $255, respectively, according to the filing. About 71% of the transmittals were below $500, for a total of more than $179 million. 

The threshold for domestic transactions would remain unchanged at $3,000. Comments will be accepted for 30 days after publication in the Federal Register.

As Decrypt reported yesterday, a consortium of virtual asset companies called the US Travel Rule Working Group, this week published a white paper that laid out a proposal to show how members would comply with tighter anti-money laundering (AML) and combating the financing of terrorism rules (CFT). 

Existing rules require financial institutions to report specific information of both parties of a funds transfer, including the sender’s name, account number, address, name of the financial institution and the date and amount sent. Information on the recipient must include the name, address, account and recipient information.

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$300 Million In A Day, $1 Billion In The Last Week – Grayscale’s Impressive AUM Growth

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Amid the most recent cryptocurrency price developments, Grayscale Investments has increased its assets under management (AUM) by over $1 billion in a week. Perhaps even more impressive is the AUM increase in a day – a “cool” $300 million.

Grayscale’s AUM Explodes In October

CryptoPotato reported Grayscale’s Q3 2020 record-breaking earnings last week. The company highlighted that it purchased over $720 million worth of BTC on behalf of its clients. Adding the price performance of the different cryptocurrencies assets under its management, the total AUM grew to $5.9 billion.

Although October started a bit sluggish in terms of price movements, the situation changed approximately a week ago. The total market cap grew with over $40 billion in that time. Most of the gains came after news from PayPal that it will enable its US-based customers to buy, sell, and store cryptocurrencies.

Naturally, as the prices started seeing fresh highs, Grayscale’s AUM felt the effects, and the company reported its growth to $7.3 billion. This meant a $1.4 billion increase in less than a month and a $1 billion expansion in a week.

According to Grayscale CEO Barry Silbert, the PayPal effect marked the addition of a “cool $300 million in AUM in one day.”

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Bitcoin And Ethereum (Still) Lead The Way

Somewhat expectedly, the two largest cryptocurrencies by market cap are responsible for the majority of Grayscale’s AUM. With over $6 billion, the Grayscale Bitcoin Trust accounts for nearly 83% of the total amount, while Ethereum’s share is significantly lower – about 13%.

It’s also worth noting that those are the only two company products directly reporting to the US Securities and Exchange Commission. The Grayscale BTC Trust received such approval months ago. The Grayscale Ethereum Trust filed a Form 10 with the SEC this summer, and the Commission approved it in early October.

As a result, accredited investors who own or purchase shares from either company products’ private placements can take advantage of enhanced liquidity. This is a direct consequence of the reduced statutory holding period from 12 to 6 months.

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Source: https://cryptopotato.com/300-million-in-a-day-1-billion-in-the-last-week-grayscales-impressive-aum-growth/

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LINK Bulls Activate With 12% Daily Increase But Can They Break $12.5 Resistance? (Chainlink Price Analysis)

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LINK/USD – Bulls Form Ascending Price Channel

Key Support Levels: $11.50, $11, $10.50.
Key Resistance Levels: $12.33, $13, $13.50.

LINK bounced higher from the support at $8.77 at the start of October. From there, it started to form an ascending price channel. The coin recently bounced higher from the lower boundary of this price channel as it reversed from the $9.80 support on Wednesday.

Yesterday, LINK pushed as high as $12.33, where it met resistance at a bearish .5 Fib Retracement combined with the channel’s upper boundary. LINK is now trading at $12 as it faces the $12.33 resistance.

linkusd-oct23
LINK/USD Daily Chart. Source: TradingView

LINK-USD Short Term Price Prediction

If the buyers can break the resistance at $12.33 and push above the channel’s upper boundary, the first level of resistance lies at $13. Above this, resistance is expected at $13.50 (bearish .618 Fib), $14, $14.72, and $15.20 (bearish .786 Fib).

On the other side, the first level of support lies at $11.50. Beneath this, additional support lies at $11, $10.50, $10, and $9.80 (lower boundary of price channel).

There is some bearish divergence that could potentially be forming between RSI and the price. It will be important to watch this divergence to see if it plays out over the next few days as it could potentially send LINK toward the lower boundary of the price channel again.

LINK/BTC – Buyers Battling To Reclaim 0.001 BTC.

Key Support Levels: 0.0009 BTC, 0.000868 BTC, 0.00082 BTC..
Key Resistance Levels: 0.00094 BTC, 0.001 BTC, 0.00108 BTC.

Against Bitcoin, LINK is currently trading at the 0.0094 BTC resistance level. The buyers attempted to break above 0.001 BTC earlier in the month but failed miserably. A bearish .382 Fib Retracement level provides the resistance here, and it caused LINK to roll over until support was found at 0.00082 BTC a few days ago.

Since reaching this support, LINK has rebounded higher and is now facing resistance at 0.00094 BTC before it can make another attempt at 0.001 BTC.

linkbtc-oct23
LINK/BTC Daily Chart. Source: TradingView

LINK-BTC Short Term Price Prediction

Looking ahead, once the buyers break 0.00094 BTC, the first level of resistance lies at 0.001 BTC (bearish .382 Fib). This is followed by resistance at 0.00108 BTC (bearish .5 Fib), 0.00112 BTC, and 0.00116 BTC (bearish .618 Fib).

On the other side, the first level of support lies at 0.0009 BTC. This is followed by added support at 0.000868 BTC, the rising trend line, 0.0008 BTC, and 0.00075 BTC (downside 1.414 Fib extension – purple).

The Stocahstic RSI recently produced a bullish crossover signal that allowed LINk to rebound higher.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/link-bulls-activate-with-12-daily-increase-but-can-they-break-12-5-resistance-chainlink-price-analysis/

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