Crypto Academy https://crypto-academy.org/ Crypto and Blockchain Education | Web3 News NFT's Tue, 29 Nov 2022 18:01:31 +0000 en hourly 1 https://wordpress.org/?v=6.1.1 191335211 Bitcoin (BTC) Could Bottom at Around $6,000 Before Reversing the Trend https://crypto-academy.org/btc-could-bottom-at-6000/ https://crypto-academy.org/btc-could-bottom-at-6000/#respond Tue, 29 Nov 2022 18:00:28 +0000 https://crypto-academy.org/?p=32275 Bitcoin (BTC) might go to around twice the bottom of the 2018 bear market low, which would see BTC have a reversal at around $6,000. The price of BTC broke the projected support levels that many experts predicted. BTC has been quite volatile in the last few weeks.  Following a bullish momentum at the beginning […]

The post Bitcoin (BTC) Could Bottom at Around $6,000 Before Reversing the Trend appeared first on Crypto Academy.

]]>
Bitcoin (BTC) might go to around twice the bottom of the 2018 bear market low, which would see BTC have a reversal at around $6,000.

The price of BTC broke the projected support levels that many experts predicted. BTC has been quite volatile in the last few weeks. 

Following a bullish momentum at the beginning of the month, BTC declined by around 28% due to the collapse of the FTX.

The ripple effect of FTX’s fall is causing more damage every day, as new details regarding the scandal are emerging. Given that BTC is highly affected by both fundamental and technical factors, BTC could go even lower than $10,000. Many predict that area to be the turning point of this bear market.

However, that may not necessarily be true. A detailed analysis of Bitcoin by DecenTrader suggests that BTC could go to around double the price of the 2018 bear market. In 2018, BTC went as low as $3,200. Hence, according to DecenTrader, BTC might go as low as $6,500 in the “worst-case scenario.” 

Some Good Indicators

On the positive side, in the previous bear markets, BTC dipped by around 85% of its all-time high. So far, BTC has dropped by around 77%, where $10,000 would be the 85% dip area. However, for BTC to not go below $10,000, investor sentiment must improve, which is quite difficult given the current state of the market.

Moreover, given that the FTX scandal made a lot of people transfer their funds in self-custody wallets, and given that BTC is the most trusted cryptocurrency, the number of wallets that own at least 1 BTC has noticeably increased. Additionally, the number of Bitcoin retail investors recently hit an all-time high, suggesting that people rely on BTC despite market turmoils.

Read more: Number of Retail Bitcoin Investors Hits ATH

Technical indicators of a weekly chart also suggest that Bitcoin is close to reaching the lowest point of this bear market, all else equal.

BTC/USDT 1-Week Chart.
BTC/USDT 1-Week Chart. Source: Trading View

Last but not least, if the bear market were to last long as the likes of Elon Musk suggested, Bitcoin supporters may have their fears alleviated after the BTC halving of 2024.

Also read: Why Bitcoin May Not Reach a New All-Time High Until the Next Halving – Review

If history does indeed repeat itself, then BTC is currently at around the lowest area following the BTC halving of 2020. Here is a graph that shows the correlation between the price of BTC following a halving event:

Bitcoin (BTC) Price Correlation After Each Halving Event.
Bitcoin (BTC) Price Correlation After Each Halving Event. Source: Decentrader

Nonetheless, nothing is certain in the crypto market, especially given the recent events and the regulations that may follow. Therefore, we’ll have to wait and see what happens with BTC. Still, the crypto community remains positive that Bitcoin may come back stronger than ever.

The post Bitcoin (BTC) Could Bottom at Around $6,000 Before Reversing the Trend appeared first on Crypto Academy.

]]>
https://crypto-academy.org/btc-could-bottom-at-6000/feed/ 0 32275
Number of Retail Bitcoin Investors Hits ATH https://crypto-academy.org/retail-bitcoin-investors-hits-ath/ https://crypto-academy.org/retail-bitcoin-investors-hits-ath/#respond Tue, 29 Nov 2022 13:51:44 +0000 https://crypto-academy.org/?p=32262 Data from Glassnode, a blockchain intelligence platform, shows that the number of small retail investors has increased tremendously in terms of Bitcoin holdings. Ever since the collapse of FTX, small investors have been accumulating more BTC. This comes as unexpected since the current market is full of FUD. Moreover, we are in a bear cycle […]

The post Number of Retail Bitcoin Investors Hits ATH appeared first on Crypto Academy.

]]>
Data from Glassnode, a blockchain intelligence platform, shows that the number of small retail investors has increased tremendously in terms of Bitcoin holdings. Ever since the collapse of FTX, small investors have been accumulating more BTC. This comes as unexpected since the current market is full of FUD. Moreover, we are in a bear cycle and such accumulation is not common during such circumstances. According to this data, the two main types contributing to this accumulation are the two smallest types of investors – shrimps and crabs. For your information, a shrimp is an investor that holds less than 1 Bitcoin, and a crab is an investor that holds less than 10 Bitcoin.

During the past 3 weeks, “shrimp” investors have accumulated over 96,000 Bitcoin. That translates to $1.6 billion with today’s Bitcoin price. This increase set an all-time high and today, shrimp investors account for more than 1.20 million Bitcoin. So, they own approx. 6.3% of Bitcoin’s circulating supply. Then we have “crab” investors who accumulated over 190,000 Bitcoin since the fall of FTX. This grows their collective portfolio by approx. $3 billion. Crab investors have also set a new all-time high balance increase, surpassing the one set in July when they accumulated 126,000 Bitcoin.

On the other hand, we have Bitcoin whales moving their Bitcoin around on a daily basis. As per the report, some whales have begun to sell their Bitcoin. Over the past month, whales have sold around 6,500 Bitcoin. When compared to the amount of Bitcoin accumulated by small retail investors, however, this is nothing.

In essence, data from Glassnode shows us that Bitcoin is getting more and more decentralized. The more small investors control the market, the more decentralized Bitcoin will become. Nevertheless, we have whales that are working hard towards promoting Bitcoin to the masses. The best example is El Salvador.

El Salvador Is Purchasing Bitcoin on a Daily Basis

From the 17th of November onwards, El Salvador has been purchasing Bitcoin daily. The President, Nayib Bukele, is known for his pro-Bitcoin approach and his attempts to make his country a leader in blockchain adoption. Such activity is always positive for the crypto industry, especially Bitcoin.

The post Number of Retail Bitcoin Investors Hits ATH appeared first on Crypto Academy.

]]>
https://crypto-academy.org/retail-bitcoin-investors-hits-ath/feed/ 0 32262
BlockFi Sues SBF Over Robinhood Shares Worth $275M https://crypto-academy.org/blockfi-sues-sbf-over-robinhood-shares/ https://crypto-academy.org/blockfi-sues-sbf-over-robinhood-shares/#respond Tue, 29 Nov 2022 09:36:53 +0000 https://crypto-academy.org/?p=32251 After filing for bankruptcy, BlockFi sues SBF for using Robinhood shares as collateral for a loan that FTX received. BlockFi is the most recent crypto lender that filed for Chapter 11 bankruptcy, given the recent market turmoil caused by FTX’s collapse. The ripple effect of crypto firms continues, with many exchanges and crypto-related projects bankrupting. […]

The post BlockFi Sues SBF Over Robinhood Shares Worth $275M appeared first on Crypto Academy.

]]>
After filing for bankruptcy, BlockFi sues SBF for using Robinhood shares as collateral for a loan that FTX received.

BlockFi is the most recent crypto lender that filed for Chapter 11 bankruptcy, given the recent market turmoil caused by FTX’s collapse.

The ripple effect of crypto firms continues, with many exchanges and crypto-related projects bankrupting. The most recent addition to the list is BlockFi. 

Simultaneously, BlockFi also sued Sam Bankman-Fried (SBF), the founder of FTX. This comes after reports show that SBF’s Emergent Fidelity Technologies used Robinhood (HOOD) shares as collateral to get a loan worth $275 million from BlockFi.

However, desperate to raise money to avoid bankruptcy, SBF tried to sell his Robinhood shares, despite having them as collateral for the loan from BlockFi.

Because of these events, many are questioning SEC’s involvement with BlockFi. SEC sued BlockFi for $100 million back in February of this year. There is an estimated $30 million still unpaid by BlockFi now that the latter filed for bankruptcy. However, nothing seems to be registered. Hence, users are wondering where the money is when SEC opted to “protect” retail investors. The truth, however, is quite different. Given that Gary Gensler is tied with SBF, the crypto community is now wondering how SEC is going to protect investors when they were the ones supposed to overlook all these deals, including the BlockFi loan to FTX.

Hence, BlockFi sued SBF and FTX on the very same day BlockFi filed for bankruptcy.

The post BlockFi Sues SBF Over Robinhood Shares Worth $275M appeared first on Crypto Academy.

]]>
https://crypto-academy.org/blockfi-sues-sbf-over-robinhood-shares/feed/ 0 32251
Fans Gift Elon Musk $600k Sculpture https://crypto-academy.org/fans-gift-elon-musk-600k-sculpture/ https://crypto-academy.org/fans-gift-elon-musk-600k-sculpture/#respond Mon, 28 Nov 2022 20:09:23 +0000 https://crypto-academy.org/?p=32246 Some fans of Elon Musk gifted him a sculpture of him as a goat riding a rocket on November 26. They sent the gift to Tesla’s headquarters as a stunt to promote their token Elon GOAT Token (EGT). Per reports, this sculpture cost around $600,000. Despite the sculpture being super unique and expensive, Musk did […]

The post Fans Gift Elon Musk $600k Sculpture appeared first on Crypto Academy.

]]>
Some fans of Elon Musk gifted him a sculpture of him as a goat riding a rocket on November 26. They sent the gift to Tesla’s headquarters as a stunt to promote their token Elon GOAT Token (EGT). Per reports, this sculpture cost around $600,000. Despite the sculpture being super unique and expensive, Musk did not accept the gift. The richest person on the globe allegedly ignored them and their gesture.

Before making the sculpture, the creators of Elon GOAT Token stated that they want to gift this sculpture to Musk as a gesture of appreciation. According to their website, Musk’s accomplishments throughout the years have changed the world forever. To them and their community, Elon Musk is a GOAT – the greatest of all time. Nevertheless, Musk did not respond to any of this and decided to ignore them. While some might think that he might’ve done so in spite of arrogance, others believe that Musk simply didn’t want to give free publicity to anyone. Understanding that everything was meant to be a publicity stunt for EGT, it might’ve been a good thing that Musk ignored them.

The $600,000 Elon Musk Sculpture

Elon Musk has been all over the place in the past two years. In the eyes of some, he was the most influential person since the beginning of this decade. The CEO of Tesla, SpaceX, and Twitter has gathered quite a lot of fans during these past two years. First off, his involvement in the cryptocurrency industry has gained him a massive following from crypto communities. Today, every tweet of Elon Musk can affect the cryptocurrency market. The recent gesture, although it was quite an amazing one, it was simply a publicity stunt for a new token.

The Musk sculpture consists of Elon Musk riding a rocket. Musk has the body of a goat and has a huge gold-plated Dogecoin-themed necklace. This sculpture weighs more than 5,000 kg, which translates to nearly 12,000 pounds. The community of EGT is still trying to convince Musk to accept the gift. They have been all over the place on Twitter and Instagram.

If that wasn’t enough, the sculpture can MOVE! Yes, as amazing as it sounds, the Wall Street Journal reports that the Musk sculpture can move and be pointed at the sky. Moreover, the sculpture is apparently also equipped with flame lines so that it looks like the rocket is going to take off. The creator of this sculpture, Kevin Stone, claims to have worked on Musk’s head for more than six months. For your information, Stone only sculpted the face of Musk, while the body and the rocket were sculpted by Spectacle.

Musk Did Not Accept Goat Sculpture

Representatives of the EGT token claim that they are still hoping Musk will accept the huge sculpture. They believe that he might claim it at an event at Tesla, one that they call “GOATSgiving.” Nevertheless, it is highly unlikely that Musk accepts their gift. Understanding that they simply tried to get the attention of Musk so that they get exposure to +100 million of his Twitter followers, the mission failed.

The team of Elon GOAT Token won’t give up, though. They want to take the sculpture on tour if Musk doesn’t claim it. Moreover, they plan to use the sculpture to create “Elon Santa.” This new sculpture is planned to be ready for Christmas.

“Elon tweeting us would legitimize the token…”

Ashley Sansalone, Executive at EGT

The post Fans Gift Elon Musk $600k Sculpture appeared first on Crypto Academy.

]]>
https://crypto-academy.org/fans-gift-elon-musk-600k-sculpture/feed/ 0 32246
BlockFi Announces Bankruptcy https://crypto-academy.org/blockfi-announces-bankruptcy/ https://crypto-academy.org/blockfi-announces-bankruptcy/#respond Mon, 28 Nov 2022 15:48:58 +0000 https://crypto-academy.org/?p=32241 BlockFi, one of the most prominent holistic platforms for cryptocurrencies, just filed for bankruptcy later today. This comes after a series of allegations that BlockFi was exposed to FTX’s collapse, and thus, they have no funds. However, BlockFi continuously denied these claims. Although indirectly, BlockFi refused having been exposed to FTX’s collapse to that extent. […]

The post BlockFi Announces Bankruptcy appeared first on Crypto Academy.

]]>
BlockFi, one of the most prominent holistic platforms for cryptocurrencies, just filed for bankruptcy later today. This comes after a series of allegations that BlockFi was exposed to FTX’s collapse, and thus, they have no funds. However, BlockFi continuously denied these claims. Although indirectly, BlockFi refused having been exposed to FTX’s collapse to that extent. According to Bitcoin Magazine, BlockFi is filing for Chapter 11 bankruptcy. This information was disclosed by someone inside the company.

The cryptocurrency world was left in shock after the collapse of Sam Bankman-Fried’s crypto empire. After FTX and the +130 companies that SBF owned collapsed, their partners began collapsing in a ripple effect. Every day after November 11, you would read news regarding a new company collapsing. There were allegations that BlockFi is planning to file for bankruptcy since the day that FTX collapsed. Nevertheless, BlockFi claimed that they have the necessary amount of funds to keep the solvency of its platform at a good level. Today, though, they filed for Chapter 11 bankruptcy in New Jersey.

BlockFi’s Exposure to FTX

Just five days ago, BlockFi responded to some frequently asked questions online. Since BlockFi offers a wide range of financial services, users asked about the fate of their funds on the BlockFi platform. For your information, BlockFi halted all operations in the second week of November after the FTX collapse. In this post, BlockFi admitted that the company has significant exposure to FTX and Alameda. Nevertheless, BlockFi states that the platform does not hold 100% of client deposits on FTX, as rumored by speculators.

The collapse of FTX initiated a new wave of transparency in the crypto industry. Today, some of the biggest cryptocurrency companies have public Proof-of-Reserves. Binance, for example, made sure to inform its users that it is perfectly solvent and that it has a fund reserve for emergency cases with more than $2 billion worth of Bitcoin, BUSD, BNB, and Ethereum.

The post BlockFi Announces Bankruptcy appeared first on Crypto Academy.

]]>
https://crypto-academy.org/blockfi-announces-bankruptcy/feed/ 0 32241
Upheaval in China: $10,000 Target Set on BTC by Analysts  https://crypto-academy.org/china-10000-btc-analysts/ https://crypto-academy.org/china-10000-btc-analysts/#respond Mon, 28 Nov 2022 15:20:41 +0000 https://crypto-academy.org/?p=32238 The value of the flagship cryptocurrency was $16,231.45 on November 28. Larger losses were experienced by important cryptocurrencies, with Ethereum (ETH) down 3.52% and BNB losing 5.87% in a single day. This occurs as protests over severe COVID regulations grow in number across China, with police in Shanghai unleashing pepper spray on demonstrators. Unexpected events […]

The post Upheaval in China: $10,000 Target Set on BTC by Analysts  appeared first on Crypto Academy.

]]>
The value of the flagship cryptocurrency was $16,231.45 on November 28.

Larger losses were experienced by important cryptocurrencies, with Ethereum (ETH) down 3.52% and BNB losing 5.87% in a single day. This occurs as protests over severe COVID regulations grow in number across China, with police in Shanghai unleashing pepper spray on demonstrators.

Unexpected events also included those shouting for President Xi Jinping to step down. The zero COVID rules, which still entail lockdowns and isolation periods nearly 3 years after the pandemic started, have drawn widespread ire. The stock market has indeed experienced selloffs as a result of this instability, not just the cryptocurrency markets.

Some analysts now think that the problems of Bitcoin (BTC) could get worse as a result.

Mark Mobius, the co-founder of Mobius Capital Partners set a depressing objective of $10,000 for Bitcoin (BTC). He claimed that investing in digital assets, whether with his funds or his clients, was very dangerous in an interview with Bloomberg. Nevertheless, he noted that it was remarkable that the decline of Bitcoin (BTC) following the failure of FTX has not been greater.

Even though Cathie Wood of ARK Invest has cautioned that other cryptocurrency businesses may fail as a contagion extends throughout the industry, she maintains that her price prediction of $1 million for Bitcoin (BTC) by 2030 will stand.

The post Upheaval in China: $10,000 Target Set on BTC by Analysts  appeared first on Crypto Academy.

]]>
https://crypto-academy.org/china-10000-btc-analysts/feed/ 0 32238
Meta was Fined €265 Million in Ireland for Improper Data Handling https://crypto-academy.org/meta-265-million-ireland-data-handling/ https://crypto-academy.org/meta-265-million-ireland-data-handling/#respond Mon, 28 Nov 2022 15:17:45 +0000 https://crypto-academy.org/?p=32235 Due to Meta’s management of client data, Irish privacy authorities have fined the company. The Irish Data Protection Commission conducted an investigation that led to the €265 million penalties.  The focus of the investigation was how 500 million Facebook and Instagram users’ personal information was published on the internet. This follows current changes at Meta […]

The post Meta was Fined €265 Million in Ireland for Improper Data Handling appeared first on Crypto Academy.

]]>
Due to Meta’s management of client data, Irish privacy authorities have fined the company. The Irish Data Protection Commission conducted an investigation that led to the €265 million penalties. 

The focus of the investigation was how 500 million Facebook and Instagram users’ personal information was published on the internet. This follows current changes at Meta involving budget cuts and widespread downsizing. The Metaverse project was a major investment for the Mark Zuckerberg corporation.

The Commission declared the conclusion of its investigation into the customer data leak, which was started in April 2020, per the Financial Times. The investigation concentrated on a feature that uses imported contacts to assist users to find friends and acquaintances.  

The decision of the regulatory authority to levy a fine prompted a response from Meta, who stated that it was now examining the decision of the regulator.

Lately, Meta was added to the directory of extremist groups maintained by the Russian government. The IT corporation was found to be engaged in extremist activities by a court in Russia after this. During this month, the judicial ministry of the nation included Meta in its list of extremist groups.

The post Meta was Fined €265 Million in Ireland for Improper Data Handling appeared first on Crypto Academy.

]]>
https://crypto-academy.org/meta-265-million-ireland-data-handling/feed/ 0 32235
Rumors Circulating About Twitter Payments Push DOGE 22% Higher https://crypto-academy.org/twitter-payments-doge/ https://crypto-academy.org/twitter-payments-doge/#respond Mon, 28 Nov 2022 15:14:36 +0000 https://crypto-academy.org/?p=32231 Dogecoin (DOGE) has increased by nearly 22.5% in a single week, rising to $0.094 from $0.075. The sharp price rise may be related to rumors that Dogecoin (DOGE) will be covered by possible intentions for Twitter to integrate payments, which, per a transcript first published by Vox, will also encompass payments in cryptocurrency. A plan […]

The post Rumors Circulating About Twitter Payments Push DOGE 22% Higher appeared first on Crypto Academy.

]]>
Dogecoin (DOGE) has increased by nearly 22.5% in a single week, rising to $0.094 from $0.075.

The sharp price rise may be related to rumors that Dogecoin (DOGE) will be covered by possible intentions for Twitter to integrate payments, which, per a transcript first published by Vox, will also encompass payments in cryptocurrency.

A plan by the new buyer to integrate financial services in Twitter could result in the favored cryptocurrency of Elon Musk becoming included, although this has not been verified.

Musk posted slides from a private session on Twitter on November 27. He mentioned a number of potential modifications in the so-called Twitter 2.0, such as long-form tweets and encrypted direct messages. 

There is a blank spot adjacent to payments in the presentation as well, which has some people believing that a cryptocurrency could be employed.

Following a recent rise, Dogecoin (DOGE) is currently ranked 8th among the biggest cryptocurrencies by market valuation. The cryptocurrency has already surpassed Cardano (ADA), Polygon (MATIC), Solana (SOL), and Litecoin (LTC),  with a market cap of almost $13 billion.

By ridiculing cryptocurrencies like Bitcoin (BTC) and boasting grand ambitions, Billy Markus, the software engineer at IBM, and Jackson Palmer, the programmer of Adobe, supposedly invented Dogecoin (DOGE) in 2013.

Ever since the ebbs and flows have been closely correlated with the billionaire’s comments. Once Musk initially began tweeting about Dogecoin (DOGE) in January 2021, the meme coin’s initial bull run commenced.

In the past, volatility tied to Musk has had a fluctuating effect on Dogecoin (DOGE). He came on SNL in May last year and seemed to disparage the cryptocurrency, which caused it to lose almost 30% of its worth immediately.

Apart from Musk-related rumors, the announcement occurs at a time when the technical underpinnings of Dogecoin (DOGE) may quickly start getting significant upgrades.

In February 2022, Vitalik Buterin said that he will collaborate with the Dogecoin Foundation to help the cryptocurrency make the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

The post Rumors Circulating About Twitter Payments Push DOGE 22% Higher appeared first on Crypto Academy.

]]>
https://crypto-academy.org/twitter-payments-doge/feed/ 0 32231
Multichain and WingRiders Announce New Partnership https://crypto-academy.org/multichain-wingriders-announce-partnership/ https://crypto-academy.org/multichain-wingriders-announce-partnership/#respond Mon, 28 Nov 2022 15:11:14 +0000 https://crypto-academy.org/?p=32225 On the 25th of November, Multichain announced they reached an agreement with WingRiders. Multichain, previously known as Anyswap, believes this partnership will help developers utilize the edge-cutting Cardano blockchain and innovate in the DeFi space. This partnership between the two will make the bridging of assets possible from the Multichain platform to WingRiders. This way, […]

The post Multichain and WingRiders Announce New Partnership appeared first on Crypto Academy.

]]>
On the 25th of November, Multichain announced they reached an agreement with WingRiders. Multichain, previously known as Anyswap, believes this partnership will help developers utilize the edge-cutting Cardano blockchain and innovate in the DeFi space. This partnership between the two will make the bridging of assets possible from the Multichain platform to WingRiders. This way, Multichain users will now be able to swap, stake, and provide liquidity to pools.

According to their Twitter, Multichain is continuously looking to achieve partnerships with other projects in the crypto industry. Not long after their partnership with WingRiders, Multichain announced another partnership with TokenBot. This partnership makes it possible for Multichain users to cross-chain swap $TKB on two other blockchains, Polygon and BSC. Multichain’s goal is to increase the interoperability of blockchains in the crypto industry. This has been a problem since the first day another blockchain came into existence after Bitcoin. Normally, you cannot exchange assets from two different Layer-1 blockchains. However, through Layer-2’s, bridges, and cross-chain protocols like Multichain, this has become possible.

What is Multichain?

Multichain is a major decentralized cross-chain swap protocol and bridge. According to their Twitter account, Multichain is based on a cross-chain router protocol (CRP). They envision themselves as the ultimate router for Web3. Multichain recently rebranded itself as it previously was known as Anyswap. While we are in a bear cycle, Multichain along with other builders is taking their time in forming valuable bonds with other projects. Moreover, they are continuously working towards improving their infrastructure.

Earlier this year, XANA Metaverse, one of the most promising Metaverse projects of this year, partnered with Multichain to bridge their native token, $XANA, to the Avalanche blockchain. Such partnerships increase the possibility of shared traffic between projects. This is very healthy for the cryptocurrency industry, especially during this time when the cryptocurrency market is not performing well.

The post Multichain and WingRiders Announce New Partnership appeared first on Crypto Academy.

]]>
https://crypto-academy.org/multichain-wingriders-announce-partnership/feed/ 0 32225
Because of the Reserves Audit, Binance Transfers $2 Billion in BTC  https://crypto-academy.org/reserves-audit-binance-2-billion-btc/ https://crypto-academy.org/reserves-audit-binance-2-billion-btc/#respond Mon, 28 Nov 2022 15:07:13 +0000 https://crypto-academy.org/?p=32226 Binance transferred $2 billion, equivalent to 127,351 Bitcoin (BTC), to show an auditor that it is in possession of the address as stated by the exchange. The crypto community has suspicions about the substance of the transaction after a significant sum of Bitcoin (BTC) was transferred from Binance to an unidentified wallet on November 28. […]

The post Because of the Reserves Audit, Binance Transfers $2 Billion in BTC  appeared first on Crypto Academy.

]]>
Binance transferred $2 billion, equivalent to 127,351 Bitcoin (BTC), to show an auditor that it is in possession of the address as stated by the exchange.

The crypto community has suspicions about the substance of the transaction after a significant sum of Bitcoin (BTC) was transferred from Binance to an unidentified wallet on November 28. Changpeng Zhao, the CEO of Binance responded and emphasized that the move is a part of a current audit.

CZ stated that “this is part of the Proof-of-Reserve Audit. The auditor requires us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address.” 

He stated that the exchange had moved the money to a different address under its management. The first proof-of-reserves mechanism, a prototype designed to demonstrate that Binance has the reserves required to secure deposits of all users, was formally unveiled the week before. It is developing a more thorough audit at the time being.

Just after the demise of the centralized cryptocurrency exchange FTX, pressures on other exchanges to implement proof of reserves have risen sharply. Exchanges can state that they possess the reserves on hand to fulfill client withdrawal requests by posting the overall amount of assets and liabilities. These initial reserves, though, do not automatically depict the entire situation because they do not include information on the liabilities of the exchange.

There are two ways to display reserves or a mix of the two. According to Halborn, the first method entails getting the reserves examined by impartial third-party auditors, while the second involves presenting a number of public addresses where various assets are held. The advantages and disadvantages of each vary.

The post Because of the Reserves Audit, Binance Transfers $2 Billion in BTC  appeared first on Crypto Academy.

]]>
https://crypto-academy.org/reserves-audit-binance-2-billion-btc/feed/ 0 32226