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How Crypto Contracts Disrupt Financial Services

Reading Time: 13 minutes Software and the internet have had a relatively low disruptive impact on the financial services industry. Sure — consumer expectations have changed, and banks are doing what they can to match the online experience of the highly customizable, on-demand internet services people have grown accustomed to — but businesses models have persisted. This is in […]




Reading Time: 13 minutes

Software and the internet have had a relatively low disruptive impact on the financial services industry. Sure — consumer expectations have changed, and banks are doing what they can to match the online experience of the highly customizable, on-demand internet services people have grown accustomed to — but businesses models have persisted.

This is in stark contrast to the complete disruption experienced by many other industries, from retail commerce to hospitality to media. The music industry provides the clearest example of what this looks like, illustrated by the following revenue breakdown from the past 17 years:

In 2001, physical sales was virtually the only way to make money in music. By 2018, streaming revenue was growing by 34% Y-o-Y and accounted for almost half of global revenue, leaving physical sales a longing, derelict shell of its former self. The companies with dominant market shares today (Apple, Spotify, Amazon, YouTube) were not in the music business at the turn of the century. The internet changed the economics of the music industry, allowing new entrants with orthogonal business models to win the market.

In financial services, on the other hand, business models have not undergone a comparable transformation. While FinTech services are being used by substantial shares of retail clients in specific markets, most notably in China, FinTech companies have to date mostly found new niches — e.g. P2P lending platforms, crowdfunding, cross-border payments, and underserved clients, such as small businesses or people who lack a credit history — or they have cooperated with incumbents or big tech firms. Cooperation gives FinTech start-ups access to clients (through white-label, co-branded products) while in many cases reducing their regulatory compliance burden. In other words, FinTech companies generally use software to build out the existing financial system, rather than re-build it from first principles as streaming services did in music (or ride-sharing companies in transportation, Amazon in retail commerce, etc.).

Banks are hard to compete head-to-head with because they have resilient moats:

  • Widespread distribution through branches.
  • Monopolies on financial data, leading to unique expertise such as credit underwriting.
  • Special status as regulated institutions that supply credit.
  • Access to sovereign insurance on deposits (e.g. FDIC).
  • Trusted brands of being safe places to keep money and manage finances.

Mobile apps and new data sources are beginning to eat at the distribution and data moats, but banks’ privileged positions in global economies are the result of a deep structural reality of our financial system: participation carries high counterparty risk. Today’s financial networks roughly boil down to messaging networks, where banks and other financial institutions are responsible for interfacing with those networks on behalf of their customers — sending the right messages and responding appropriately to messages received. To stave off excessive costs, financial institutions lean on trusted relationships with one another to efficiently manage capital flows, which exposes them to the risk that someone they do business with fails to meet their obligations. This risk is managed through regulation and centralization in a few of the most reputable financial institutions, and is passed on to the consumer in the form of high fees and restrictions when transacting outside of trusted channels. This pull towards the largest, most trusted entities strengthens big bank moats and helps explain why FinTech start-ups are in many cases forced to partner with incumbents rather than try to displace them.

It follows that incremental improvements, like better user interfaces and new data sources on the margins, are not powerful enough drivers to unseat major financial institutions. To disrupt the financial services industry, the underlying networks need to be re-architected to carry an order of magnitude lower risk. Only then might an alternative business model achieve enough of a competitive advantage to win dominant market share.

This is why blockchain networks are interesting from a financial services lens: they systematically lower counterparty risk in financial networks. They do this by providing guarantees around the execution of financial transactions, through the use of open source software and a public computational environment run by purely economically motivated actors. Blockchain networks are a foundation for a more transparent, secure system; one that relies on math, physics, and incentives instead of complicated inter-bank and regulatory relationships, and thus opens up new markets previously barred by the high amount of trust required for participation. And they are capable of supporting a superset of the types of financial interactions that are possible in our current system, allowing more choices around product, cost, and risk.

Today, there is a small but growing group of engineers and entrepreneurs who have realized this opportunity and are building financial services on public blockchains like Bitcoin and Ethereum. These services are mostly nascent, immature, and complex — one of the most well known examples, MakerDAO, has been called a Rube Goldberg Machine. They serve a small niche of businesses and individuals within the crypto ecosystem, providing payment services, credit facilities, exchanges, investment tools, savings accounts, and insurance and derivative contracts. They appear on the surface to carry more technical and regulatory risk than may warrant their long-term potential, and thus it is tempting to dismiss them as misguided efforts with no clear market fit.

However, blockchain-native financial services form the first segment of FinTech that truly has the potential to disrupt the core businesses of major financial institutions — savings, payments, lending, investing, fundraising, insurance — in ways that fundamentally benefit markets and consumers.

The unfair advantages of crypto financial services

Blockchains and the contracts that live on them are open source software projects. Like many other open source projects, including Linux and the internet itself, they evolve at the edges, through the decentralized efforts of many companies, entrepreneurs, and hackers worldwide. It took several decades for Linux to catch up to Windows, but today, Linux is the de facto operating system for cloud servers. This is because on a long enough time horizon, once an open source development ecosystem reaches escape velocity, there is simply too much omnidirectional momentum for any competing, centrally-planned software effort to keep up. The network effects around community support, infrastructure, and tooling are powerful.

Blockchains differ from existing open source projects in that they maintain a shared state. They function as global accounting machines that process financial transactions, the results of which are embedded in secure, public data structures. The validity of all transactions can be verified by checking that the blockchain includes a record of it. Nick Szabo described this record as living in computational amber, where the longer the record is stored in the blockchain, the more confidence participants can have that their actions won’t be changed without their consent. This allows for increased social scalability of financial systems: Because participants to blockchain transactions use a shared accounting system, there are less ways for them to harm one another. By providing stronger protective guarantees, blockchain systems can accommodate larger groups of people, on a global basis.

Blockchains also have programming languages that allow for the construction of ‘crypto contracts’, which are programs that miners execute as if they are regular transactions. The most widely used crypto contracts are multi-signature addresses on Bitcoin, which encumber bitcoins subject to signatures from multiple parties. Ethereum takes this concept a step further and allows developers to deploy custom crypto contracts that define arbitrary financial interactions. Because they live in computational amber, crypto contracts can expose extremely persistent APIs, where the code can’t be altered once the contract is deployed to the network, and because they run on a shared accounting system, they can be tightly integrated with one another. This tight integration property is known as composability, and has bred a design pattern of combining crypto contracts that each deliver unique services into a new service — without having to re-deploy and maintain the code bases of each of the underlying contracts.

So what we have is a new paradigm of financial computing that is based on open source software, carries an order of magnitude lower participation risk, and allows developers from different organizations to synergistically build on each other’s work. Practically speaking, the consequences of this new paradigm can be grouped into 3 buckets: open access, minimal fees, and novel assets, organizations, and markets.

Open access

Anyone with an internet connection can download and run open source software. Creating a crypto wallet — the crypto equivalent of a bank account — can be done without approval or permission from anyone (in about 30 seconds). This means that if crypto wallets can provide comparable levels of service to banks, they should at the very least win market share on the margins where people have trouble getting access to basic financial services. With 10x better service, they could become the de facto banking system for the internet economy. An early example of the type of access crypto wallets can enable is Abra, which uses multi-signature addresses with Bitcoin and Litecoin collateral to provide synthetic exposure to currencies and other assets to internet users globally. Through applications like Abra layered on top, crypto wallets become a gateway to a rich ecosystem of open financial products/services.

Open access applies to financial product/service providers, too. Crypto contracts often feature some participation aspect, where any capable party can earn fees in return for providing some service to the network. And if someone has an idea for a financial product that doesn’t yet exist, they can leverage existing crypto contracts or the underlying open source code to easily create it. This has a YouTube-like effect: In a similar way to how YouTube democratized the production of video content, crypto contracts democratize the production of financial products/services. The implications of this are far-reaching, and I suspect we will see markets for just about everything imaginable — likely including some that may never have been envisioned by financial institutions, but are useful to lots of people. Importantly, the value created by those markets will be shared amongst its participants and creators by merit, instead of being captured by a small and privileged group of legacy institutions.

Minimal fees

By nature of being modular, combinative functions that execute specific financial logic, crypto contracts effectively unbundle financial services. Take asset management for instance — a service with many components including front office activities like product development, investing, transaction and order execution, transaction management, pre-trade compliance; and back office activities like transaction processing and settlement, custody, transfer agency, and securities lending. With crypto contracts, many of these component services can be dis-intermediated and reliably executed entirely by software, and a plethora of open source projects are being developed to do just that:

Asset managers build some of these functions in-house and outsource others to third parties including custodians, auditors, trading desks, and others. With open source crypto contracts that function like building blocks for developers, it eventually becomes trivial to spin up an asset management business at relatively upfront cost. In other words, you no longer have to build out an extensive network of relationships within the financial services industry to get started — you can just deploy code and tap into open networks. This will represent an order of magnitude decrease in production costs for financial services, and should lead to healthier competition and savings passed through to customers.

In addition, there’s another factor that keeps crypto contract fees low: the risk of competitive forks. If a given protocol is deemed to be levying excessive fees, it’s trivial for a competitor to copy the codebase and lower the fees. To guard against competition from forks, protocols generally minimize fees to levels they feel necessary to sustain development and security. This dynamic puts consistent downwards pressure on fees for crypto contracts, incentivizing a healthy competitive environment.

In other words, both the fixed costs (infrastructure and development) and the variable costs (fees from multiple intermediaries) of running a financial services business are structurally lowered through a heavier reliance on crypto contracts.

Novel assets, organizations, and markets

Perhaps the most exciting prospects that crypto contracts offer are the new types of assets, organizations, and markets that they enable.

Crypto contracts allow for the creation of provably scarce programmable assets. Some crypto assets, like Bitcoin, are currencies, and others have been created to do a myriad of things, including to confer membership/governance/voting rights within a network, to assign ownership of real-world assets like commodities and securities, and to synthetically replicate the prices of real-world assets. Even at this nascent stage, it is already possible for any asset to be represented in some form or another by a crypto contract, a form factor which puts the asset on an openly accessible, low-cost, global accounting system. Once an asset exists as a crypto contract, it becomes easily interoperable with crypto financial services, allowing for efficient distribution, transfer, and liquidity aggregation. On a longer evolutionary arc, we have barely scratched the surface of the types of assets that are feasible, and the possibilities for how they can be used to drive economic growth.

Crypto contracts further allow for the codification of bylaws and cap tables. This means you can create a global organization — be it a legal entity in a given jurisdiction or an open source software project — and define its ownership, rules, procedures, and governance mechanics through crypto contracts. This gives organizations a toolkit for coordinating member activities in an accountable and verifiable manner, decreasing dependence on obscure local legal codes and enforcement traditions that struggle to scale across borders. In other words, crypto contracts bridge a large trust gap that has historically stood in the way of cross-border interaction. An example of one such organization is MakerDAO, a “decentralized autonomous organization” (DAO) that coordinates the management of a secured credit facility and a synthetic dollar-pegged asset called Dai. In its first year of life, MakerDAO originated over $240m of loans with zero counter-party risk, demonstrating the potential for DAOs to provide useful, open financial services to the global internet economy.

Finally, by operating on a previously unreachable part of the risk spectrum, crypto contracts allow for the formation of markets that used to be infeasible due to lack of trust, lack of access, or prohibitively high costs. A great example of this is IBISA, who has created a scalable alternative for crop micro-insurance. Historically, it has not been economical for insurance companies to cover the long tail of 500+ million small farmers, due to high overhead costs and low contract values. While mutualized risk was seen as a potential approach, mutuals have not scaled well beyond local areas because distant members have a hard time trusting each other. Using crypto contracts to provide transparent accounting, IBISA has created the world’s first incentive-compatible mutual for crop micro-insurance. Nexus Mutual is taking a similar approach for smart contract insurance, another area that no big insurer is willing to cover. These examples underscore the unique ability of crypto contracts to bring the market model to places where it has never before gone.

In sum, by operating on financial networks with qualities distinct from our current dominant networks, crypto contracts have advantages that traditional financial services providers can’t match because their business models are incompatible. If systems built on crypto contracts hit escape velocity, their open, verifiable, and cheap nature will allow them to scale to every corner of the internet, and they will win on the margins by covering markets that today’s financial institutions can’t operate in. In other words, crypto networks have the potential to do to banks what the internet did to big music companies over the last 20 years: eat them alive.

So where are we today, and where we go from here?

Make no mistake, we are in what is perhaps the first inning of a multi-decade evolution of crypto networks. Today, most crypto systems are highly experimental and will teach us a lot about optimal market structures for capital formation and productive deployment. It is easy to pick any individual experiment apart and find flaws, and pundits are quick to jump on opportunities to do so. But it is becoming increasingly clear that blockchains and crypto contracts are the most promising means of architecting a more efficient and secure way to coordinate financial services in a global, networked world — a view that is supported by major new entrants like Libra, Telegram’s TON, and the Chinese central bank’s digital currency initiative. That is why, despite a 2018/2019 bear market where crypto prices declined some 70–90% across the board, the number of full time developers working on open source crypto software grew by more than 2x (see Electric Capital’s H1 2019 dev report). Over the same period, open lending protocols on Ethereum originated more than $600m of loans — during what many insiders would call a beta phase of the first version or two of their live contracts:

Source: Loanscan.

However, despite early signs of traction for crypto financial services, there remain significant challenges ahead, including blockchain scalability, user experience, and a general lack of understanding of crypto contracts and their value proposition. As for scalability, layered architectures with state channels (and other techniques) are being used to increase the transactional capacity of major blockchain networks, including Lightning on Bitcoin, and Plasma for Ethereum, among others. In addition, over the next several years, Ethereum will move to a sharded database model, parallelizing transaction processing across more than 1,000 blockchains, which should provide a scalability increase of several orders of magnitude. There is also substantial research going into off-chain computation, using zero-knowledge proofs and other privacy technologies to push more computation off of the blockchain while preserving its trust benefits. Together, these new architectures and technologies should allow public blockchains to scale by several orders of magnitude, eventually allowing them to process enough transactions for most financial use cases.

At the same time, the user experience of these applications and networks is steadily improving with time. Custodians (like Anchorage) and software providers are rapidly improving private key management workflows and key recovery procedures, and browsers and hardware providers are beginning to ship crypto-native products designed for the nexus of security and usability. With enough time, the nuances and frictions presented by public blockchains will be abstracted away from the end user, who may not even be aware that their financial services run on blockchains. One day, blockchain-based financial services will set a new standard for user experience, propelled by gains in transparency, trust, and security — properties that users will come to require once they have become familiar with them. In those regards, legacy institutions risk disruption unless they adopt the most secure blockchain networks as well — a change that will not come naturally, nor quickly — and therein lies the opportunity for fast-moving startups. As for our collective understanding of blockchains, perhaps it will evolve similarly to the way the internet did: at the beginning, only experts could grasp it; today, children have a nearly innate intuition for its capabilities.

Ultimately, it will take a long time for financial products/services built on crypto contracts to compete with major financial institutions. However, this may not be the most useful framing; rather, by occupying different parts of the risk- and cost-spectrums, and by being accessible to industries and markets that are neglected or underserved by the current financial system, crypto contracts will expand the size of the economic pie through what my colleague Spencer has called a parallel financial system. The most immediate customers are organizations and individuals in the crypto industry itself, who have a difficult time accessing basic financial services, due to lack of comfort from legacy institutions with new and unfamiliar business models. By providing open, transparent financial services to the long tail of disenfranchised parties, crypto financial networks have a large addressable market that enables them to scale without directly challenging incumbent financial powerhouses. By the time they do present a real challenge to Wall Street, it may be too late for successful defense, as the network effects of blockchain-based financial networks become increasingly difficult to overcome as they grow.

Finally, it’s worth emphasizing that many of the projects building on blockchain networks are public utilities. That is, their ultimate promise is to empower internet-connected, mobile phone-bearing humans to take control of their economic lives. In the world today, human beings in different parts of the world and the socio-economic spectrum have equal agency, but they don’t have equal access to opportunity (h/t to Alan Curtis at Radar). This disparity is one of the biggest drivers of an increasing wealth gap, both within nations and between them. Financial services built on crypto networks as public internet utilities — accessible to all and minimally rent-seeking — are our best hope for a world with more equal opportunity. That’s a world people will fight for, and now software has given them the tools for the job.

Special thanks to Spencer BogartKinjal Shah, and Derek Hsue for reviewing and providing feedback.



Huawei’s New Phone Mate40 Will Have a Wallet For China’s Digital Currency




Multinational technological giant Huawei announced today that its newly-launched smartphone has a built-in wallet that will allow users to store, send, and receive China’s national digital currency.

Announcing the features of the Mate40 series in a Weibo post, the company said that the device is the first smartphone that supports the digital yuan via a hardware wallet.

The Chinese giant said in the post that users would enjoy hardware-level security while being able to control and protect their anonymity. Users can also conduct dual transactions using the new device, meaning they can also send and receive payments offline.

According to Huawei, the device guarantees a new safe and convenient payment experience for users.
To celebrate the launch of the smartphone, the company said it is giving out a free Mate40 Pro to the Weibo user who shares the post the most until November 6, 2020.

Huawei Partners China’s Central Bank

Huawei has been an active player in the blockchain industry, and the company continues to develop its blockchain capacities.

In November 2019, Huawei signed a strategic partnership with the digital currency research unit of the People’s Bank of China. After conducting a massive airdrop for the digital yuan last month, the country is now close to fully launching the new currency.

Samsung Leads Blockchain Smartphones

Meanwhile, Huawei is not the only company exploring new generation blockchain smartphones with built-in crypto wallets. The likes of LG and crypto exchange Houbi have also ventured into the blockchain smartphone market, with Samsung taking the lead.

Samsung released its first crypto-friendly phone in 2019, which provided support for BTC, ETH, and ERC-20 tokens. Since then, the South Korean multinational electronics mogul has been expanding its phones’ interaction with cryptocurrency and blockchain services.

In May, the company partnered with US-based crypto exchange Gemini to allow users to connect to the Gemini mobile app without having to log in again. In July, Samsung added Stellar and Decentraland to its Blockchain Keystore wallet.


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UK Citizen Allegedly Used Bitcoin to Facilitate ISIS Members Prison Breaks




A 27-year old British citizen had appeared before a local court because of allegations that he had used Bitcoin to send money to help ISIS members escape Syrian prison camps. The man, Hisham Chaudhary, has reportedly been a member of the Islamic State for over four years.

Terrorist Prison Breaks Funded By Bitcoin

According to the Dailymail coverage, Chaudhary has been an accepted member of the Islamic State since early 2016 – an infamous terrorist organization banned under UK law since 2014.

Some of his responsibilities within the group included gathering and transferring funds abroad to assist captured ISIS militants to escape from prison camps in northern Syria, controlled by the Kurds. Chaudhary’s preferable currency was Bitcoin. He acquired and sent an undisclosed amount of BTC to facilitate the transactions and remain hidden from authorities.

The charges against the 27-year-old also include compiling and disseminating a terrorist publication called The Wholesome Fruit In The Virtues And Etiquettes Of Jihad last year.

In total, Chaudhary faces seven charges. Four of them are against the terrorist publication, one for his association with the organization, and two counts of entering a funding arrangement. However, he hadn’t plea to the charges during his video appearance at Westminster Magistrates’ Court.

Crypto Connections With Terrorist Group Rise

Bitcoin’s involvement with terrorist organizations has been spiking in the past few months. Reports surfaced in early August that the US Department of Justice (DOJ) had seized over 300 cryptocurrency accounts linked or operated by three notorious groups – al-Qaeda, Hamas, and again – ISIS.

US law enforcement agencies followed the funds to the accounts on the Bitcoin blockchain, as everything is recorded on the network. They saw millions of dollars worth of transfers from fundraising campaigns and anonymous donation ending in the wallets.

Acting US Attorney Michael Sherwin commented that “these individuals believe they operated anonymously in the digital space, but we have the skill and resolve to find, fix, and prosecute these actors under the full extent of the law.”

Additionally, French authorities arrested 29 people allegedly operating a sophisticated network of funding jihadists and al-Qaeda members with digital assets. The police found evidence that the accused purchased cryptocurrency coupons in France. They transferred the details by secure messaging to jihadists in Syria, who retrieved the funds through digital asset platforms.


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Crypto Price Analysis & Overview October 30th: Bitcoin, Ethereum, Ripple, Chainlink, and Binance Coin





The Bitcoin price surge continued this week and it managed to increase by 4.5% to reach $13,60 at the time of this writing. The coin was trading slightly above $13,000 last Friday and moved sideways along this level over the weekend.

On Tuesday, Bitcoin started to surge higher as broke resistance at $13,415, climbed above $13,500, and reached the resistance at $13,815 (1.272 Fib Extension). The bulls could not close a daily candle above this resistance, which led to Bitcoin dropping as low as $13,000 on Wednesday.

Since then, Bitcoin has traded sideways in a wide range between $13,815 and $13,000.

Looking ahead, if the buyers push higher again, the first level of resistance lies at $13,500. Following this, resistance lies at $13,815, $14,000, $14,190, and $14,500 (1.618 Fib Extension).

On the other side, if the sellers push lower, the first level of strong support lies at $13,000 (.236 Fib Retracement). Added support then lies at $12,750, $12,500 (.382 FIb Retracement), $12,236 (downside 1.618 Fib Extension), $12,100 (.5 Fib), and $12,000.

BTC/USD Daily Chart. Source: TradingView


Ethereum saw a sharp 8.3% price drop this week as it falls into the $380 support (.5 Fib Retracement). Last Friday, Ethereum struggled to break above the resistance at $416 – provided by a bearish .618 Fib Retracement. It rolled over from here and started to head lower during the week as it fell beneath $400.

Initially, Ethereum managed to find support at $389 (.382 Fib Retracement). However, the sellers broke past this support today as it plummeted into the $377 level (.5 Fib Retracement).

Moving forward, if the sellers break beneath $377, the first level of support lies at $364 (2019 High). Beneath this, support lies at $355 (100-days EMA), $350, and $342.

On the other side, if the buyers can rebound from $377, resistance lies at $390, $400, $410, and $416.

ETH/USD Daily Chart. Source: TradingView

Against Bitcoin, Ethereum has struggled heavily this week as it hits as low as 0.0284 BTC(Feb 2020 Highs). The coin was trading above 0.031 BTC at the start of the week as it was trading at the 100-days EMA resistance. From there, ETH headed lower as it collapsed beneath both 0.031 BTC and 0.030 BTC in a couple of days.

The coin continued to plummet over the last few days as it dropped beneath the 200-days EMA and 0.029 BTC to reach the current support at 0.0284 BTC.

Looking ahead, if the selling continues to break 0.0284 BTC, support lies at 0.0281 BTC, 0.0278 BTC, and 0.027 BTC.

On the other side, resistance is first expected at 0.029 BTC. This is followed by resistance at the 200-days EMA, 0.03 BTC, and 0.0305 BTC.

ETH/BTC Daily Chart. Source: TradingView


Ripple also saw quite a sharp 7.8% price fall this week as the coin drops beneath the 200-days EMA into the $0.237 level. Last Friday, XRP was trying to overcome resistance at a falling trend line but could not do so. As a result, the coin headed lower throughout the week and broke beneath the 100-days EMA yesterday.

Today, XRP continued lower to break beneath a rising trend line (the lower boundary of a triangle) to drop beneath the 200-days EMA and hit the current $0.237 support. XRP spiked as low as $0.23 today, but the buyers have since pushed the price higher.

Moving forward, if the selling continues beneath $0.237, support initially lies at $0.23. This is followed by support at $0.228 (.618 Fib), $0.22, and $0.217.

On the other side, the first level of resistance lies at $0.24. Added resistance lies at $0.245 (100-days EMA), $0.251 (bearish .382 Fib), and $0.261 (bearish .5 Fib).

XRP/USD Daily Chart. Source: TradingView

XRP is currently in a terrible downward spiral against BTC and reached lows that have not been since December 2017 this week. It was trying to reclaim the resistance at 2000 SAT last Friday but failed to do so and proceeded to plummet over the weekend.

The price collapse continued throughout the week as XRP reached as low as 1755 SAT today. The buyers have since pushed it higher slightly to trade near 1780 SAT, but the situation is extremely bearish.

Looking ahead, it is likely that the selling will continue. If the sellers push beneath 1755 SAT, additional support is found at 1730 SAT, 1700 SAT, 1680 SAT, 1650 SAT, and 1600 SAT.

On the other side, resistance lies at 1800 SAT, 1865 SAT, and 1900 SAT.

XRP/BTC Daily Chart. Source: TradingView


LINK saw an 8.6% price fall over the past week as it approaches the lower boundary of an ascending price channel. The coin was trading at the upper boundary of this price channel at the start of the week but was unable to break above it. A bearish .5 Fib Retracement further bolsters the upper boundary at $12.75.

As a result, LINK rolled over and started to head lower throughout the week as it broke back beneath $11.50 to reach the current $10.95 level.

Looking ahead, if the bears push LINK lower, the first level of support lies at $10.50 – the lower boundary of the price channel. If the sellers break beneath the channel, support lies at $10, $9.80, $9.00, and $8.77.

On the other side, if the buyers can rebound at the lower boundary, resistance lies at $11.50, $12, and $12.75 (bearish .5 Fib Retracement).

LINK/USD Daily Chart. Source: TradingView

Against Bitcoin, LINK has also been falling this week. It was trading near 100,000 SAT last Friday but started to head lower from here. It dropped beneath 90,000 SAT throughout the week and fell beneath a rising trend line yesterday to hit 80,777 SAT today.

Moving forward, if the sellers break beneath 80,777 SAT the first level of support lies at 80,000 SAT. Beneath this, support is found at 75,600 SAT (downside 1.414 Fib Extension), 70,000 SAT, 68,400 SAT, and 60,000 SAT (.786 Fib Retracement).

On the other side, resistance lies at 86,800 SAT. Above this, resistance is expected at 90,000 SAT, 94,300 SAT, and 100,000 SAT (bearish .382 Fib Retracement).

LINK/BTC Daily Chart. Source: TradingView

Binance Coin

BNB also suffered a 7.6% price fall this week as it drops into the $28.17 support (.382 Fib Retracement). BNB managed to climb above $32 on Tuesday, but the sellers quickly stepped in to push the coin lower.

Today, BNB fell sharply beneath $30 and continued to fall until support was found at $27.54 (downside 1.272 Fib Extension). It has rebounded from here and is now trading at $28.17 (.382 Fib).

Looking ahead, if the bulls can continue to rebound from the current support, the first level of resistance lies at $29.30. This is followed by resistance at $30, $30.72, $31.30, and $32.

On the other side, if the sellers push beneath $28.17, support lies at $27.55, $27 (.5 Fib), $26.34 (fownside 1.618 Fib Extension), and $25.84 (.618 Fib).

BNB/USD Daily Chart. Source: TradingView

Against Bitcoin, BNB created a fresh October low today at the 0.00207 BTC level (downside 1.272 Fib Extension). The coin was trading at around 0.00236 BTC last Friday, and it pushed higher on Monday and Tuesday to reach as high as 0.00242 BTC. It was unable to break this resistance, which caused the coin to roll over and head lower.

Today, BNB dropped beneath the support at 0.0222 BTC (.618 Fib), and it dropped lower to reach the support at 0.00212 BTC – where it is currently trading.

Moving forward, if the sellers continue to push lower, the first level of support lies at 0.00206 BTC (downside 1.272 Fib Extension). Following this, support is found at 0.002 BTC (.786 Fib), 0.00194 BTC, and 0.0019 BTC.

Resistance is expected at 0.0022 BTC, 0.0023 BTC, and 0.00235 BTC.

BNB/BTC Daily Chart. Source: TradingView

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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.


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I Disagree With Armostrong: Ripple CEO on Coinbase Apolitical Policy

Blockchain5 days ago

IG Prime Integrates Bloomberg’s Execution Management System EMSX

Blockchain5 days ago

McAfee continues to promote cryptocurrencies from his Spanish jail cell

Blockchain5 days ago

September 2016 All Over Again: Number Of Bitcoin Whales Shatters Record Highs Following Recent Price Rally

Blockchain5 days ago

Projects driving cryptocurrency adoption

Blockchain5 days ago

Daniel Masters is for blockchain against banking

Blockchain5 days ago

Bitcoin and Cryptocurrency Market Analysis – 26.10.2020

Blockchain5 days ago

Bitcoin fan Jack Dorsey to talk DeFi at Africa Fintech Summit

Blockchain5 days ago

News of News For Bears and Bulls

Blockchain2 days ago

Andre Cronje’s new KP3R token surges 2000% in hours

Blockchain5 days ago

Most Crypto Exchanges Can’t Afford Basic Cybersec for $4M per Year

Blockchain5 days ago

SwapSpace: Quick Cryptocurrency Swaps at No Additional Fees

Blockchain5 days ago

Treasury official appointed to crypto-risk management platform

Blockchain2 days ago

Gemini to Offer Real-Time Crypto Tax Services

Blockchain5 days ago

US Bail Funds Are Seeing an Uptick in Cryptocurrency Donations

Blockchain5 days ago

Hedge Funds Failures, Bankruptcies and Pandemic Fatigue

Blockchain5 days ago

Paypal spark fury and accusations of “Crypto Gambling”

Blockchain5 days ago

Chainlink Rejected At Key Mathematical Level, But Geometry Points To Upside

Blockchain5 days ago

Crypto trust and security issues adamant despite blockchain adoption

Blockchain5 days ago

Hacker Returns $2.5 Million to Harvest Finance Deployer Contract

Blockchain5 days ago

Toyota goes crypto!

Blockchain5 days ago

Crypto Roundup: October 26th, 2020