Day: May 15, 2021

Bearish signals flashed bright red as NANO went on a tweet-induced (but short-lived) rampage. How can traders take advantage of social media-driven crypto rallies?

When Elon Musk’s ‘Bitcoin is bad for the environment’ tweet caused a flash crash of BTC and the majority of altcoins’ prices earlier this week, a handful of digital assets headed in the opposite direction, making huge gains amid the sea of red. 

Those were the tokens that market themselves as environmentally friendly capitalizing on investors’ immediate instinct that Tesla might be switching to some alternative, eco-friendly cryptocurrency soon.

NANO’s moment of unsustainability

Among the biggest winners of the day was NANO, a decentralized cryptocurrency that relies on a consensus algorithm similar to proof of stake and that emphasizes its status as a highly sustainable form of money. Boosted by the news of Musk’s quest for greener pastures, the coin almost doubled its price, soaring from $8.44 to $16.32 in a matter of just 12 hours.

But how sustainable was this run? Price action triggered by Musk’s escapades can be dramatic, but it is almost always short-lived. For traders who bought the news and rushed to open a position in NANO in the aftermath of Elon’s tweet, these were a long 12 hours. How high can NANO go? Is this the moon yet? When do I take profits? Is it going to drop soon?

The VORTECS™ Score, an algorithmic analytical tool exclusively available to the members of Cointelegraph Markets Pro, would not be able to answer any of these questions definitively. What it could do, however, is sift through years’ worth of historical data and identify whether the combination of market and social conditions around the coin resembled those that preceded sharp upward or downward price action in the past.

In NANO’s case this week, the VORTECS™ score line had been neutral ahead of the May 13 pump. Naturally, the fundamental market and social conditions did not look historically ripe for a rally that would soon be triggered by an ex-machina kind of event.

Then, in the middle of a tweet-induced price hike, VORTECS™ score began turning red, suggesting that the model sensed a bearish pattern of market activity (first red circle and box in the graph). 

Despite a dip, there was a second spike in price (second red box) which coincided with an even more negative score from VORTECS™ (second red circle). As the yellow star indicates, this second spike was followed by a major drop in price.

The low score of 18 was registered when NANO’s price was still on the way to its second peak of $15.82, shortly before it reversed its course and fell to below $11. While history does not repeat, in this case, it rhymed.

Short positions 101

There are several ways in which crypto traders could put NANO’s recent rally to work. One is byquickly reacting to the news and opening a long position in hopes of taking profits before the trigger’s impact recedes. Another is shorting the asset when it is still flying high — in other words, betting that the coin’s price will drop.

Short positions are often opened using borrowed funds: In a classic scenario, an investor would borrow the asset whose price they expect to go down, immediately trade it at the current market price, then purchase again for cheaper, pocketing the difference. Today, many cryptocurrency exchanges offer derivative contracts that allow users to short crypto assets without actually touching them.

You can revisit this Cointelegraph guide into long and short positions to recap the essentials.

While the VORTECS™ score will not tell investors when to go long or short, it can provide a useful indication of historically bullish or bearish conditions for a particular coin — insights that can potentially be profitably incorporated into a trading strategy.

Cointelegraph Markets Pro is available exclusively to subscribers on a monthly basis at $99 per month, or annually with two free months included. It carries a 14-day money-back policy, to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.

Important Disclaimer

Opinions are those of the author. Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions. Full terms and conditions.

The development of enterprise DeFi use cases is underway, but mainstream adoption may take longer than expected.

Supply chain management has historically been challenging due to issues, such as increased costs, consumer demands, financial risk, volatility and much more. Unfortunately, the COVID-19 pandemic has created even bigger issues for supply chains globally. 

A recent survey conducted by Big Four firm Ernst & Young in late 2020 puts this in perspective, noting that 97% of automotive and industrial product companies found the pandemic to have negative effects on their businesses. The EY study further found that 64% of surveyors believed that the digital transformation of global supply chains will accelerate due to the pandemic.

Although this is merely a prediction, some traditional suppliers have already started to leverage blockchain technology to automate workflow verification to enable more efficient supply chains. For example, freight technology provider ConsolFreight recently formed a partnership with Centrifuge, a decentralized, asset-backed lending platform, to unlock millions of dollars in financing for personal protective equipment.

Ernesto Villa, founder of ConsolFrieght, told Cointelegraph that the company’s client, BioBX, needed to import and deliver personal protective equipment supplies to California school districts during COVID-19. Yet due to the complexity and risks involved with importing PPE, BioBX struggled to ensure this delivery. According to Villa, the collaboration between Centrifuge and ConsolFreight enabled BioBX to obtain about $800,000 in financing to ship two containers of gloves to California schools:

“Most companies don’t want to finance PPE deliveries since these orders are too large for our clients’ balance sheets. So, we technologized the entire BioBX supply chain while financing their freight forwarding (receivables) through Centrifuge’s liquidity pool called Tinlake. This is a prime example of how decentralized finance can combine with real-world assets.”

Enterprise DeFi becomes a reality

Centrifuge and ConsolFreight tokenized and then financed various business processes for BioBX, enabling the company to access financial funds that typically would have remained inaccessible for a number of days.

Kevin Yu, founder of BioBX, told Cointelegraph that with traditional letters of credit, funds remain locked up for the entire duration of the letter of credit. However, Yu mentioned that ConsolFreight allowed BioBX to quickly free up this cash flow.

To put this into perspective, Martin Quensel, co-founder of Centrifuge, told Cointelegraph that the company tokenizes real-world assets, like LCs or bills of lading, and then places those assets on a blockchain network as nonfungible tokens. These NFTs are then turned into smart contracts and placed in Centrifuge’s liquidity pool called “Tinlake,” which is connected to the MakerDAO protocol. Tinlake then retokenizes these assets to create fungible ERC-20 tokens for investors. Quensel explained:

“Investors can then invest in that pool and get an ERC-20 token in return. There is also a possibility of DeFi and tokens purchased by individuals since the Tinlake pool is connected to MakerDAO.”

The Tinlake protocol ultimately allows an asset originator, like ConsolFreight, to lock in collateral as NFTs and finance an asset in with a stablecoin, such as Dai. While this may sound like a foreign concept for traditional enterprises, Yu shared that BioBX was able to get full clarity on the supply chain and logistical happenings throughout this process.

Investing in real-world assets adds value to enterprise DeFi

In addition to the value added for enterprises engaging in DeFi mechanisms to automate supply chains, investing in real-world assets has also become appealing to retail investors.

According to Quensel, investors may find it problematic to hold only crypto assets when trying to correlate between the underlying collateral to Dai, MakerDAO’s stablecoin:

“Adding tokenized real-world assets as collateral for Dai, such as enterprise assets, is key for its long-term stability and adoption as it addresses the two main challenges the DeFi ecosystem is currently facing: stability and volume.”

Quensel further remarked that a diversified pool of assets with different risk parameters will counter some of the inefficiencies of Ether’s (ETH) over-collateralization while increasing the overall volume and value. He said that this is a good fit for “investors who want to diversify and protect their crypto wealth by moving parts of it from crypto assets into real-world assets but still investing in crypto at the same time.”

Challenges facing enterprise DeFi adoption

While enterprise decentralized finance has the potential to disrupt global supply chains, a number of challenges remain.

For instance, standards around how to finance real-world assets are still unclear. Paul Brody, global blockchain lead at Ernst & Young, previously told Cointelegraph that as soon as standards emerge, the firm hopes to allow its enterprise clients to take advantage of these DeFi markets.

Fortunately, the development of enterprise DeFi standards is well underway. For example, the Baseline Protocol is an emerging standard for efficiently automating workflow verification. John Wolpert, co-founder of Baseline Protocol and group executive for enterprise mainnet at ConsenSys, told Cointelegraph that it’s expected that such standards will drive down verification costs enough to make regular receivables financing something that small and medium-sized vendors can afford. “When vendors don’t have to worry about whether or when they will get paid, they can help keep the economy moving by putting capital to work more confidently and quickly,” he said.

Wolpert further added that enterprise DeFi standards are important for removing a profit motive that may emerge with competing platforms. According to him, this would divide a system that is better maintained as a commons:

“Essentially, if you can profit from supplying function, then others will discover that you can make a profit and try to convince others to buy their version. This is right and proper for most things. But take the internet — there, you don’t want two different versions, but rather, you want everyone contributing to the same system.”

Anaïs Ofranc, lead for the Oasis Open standards and specifications working group, also told Cointelegraph that enterprise DeFi adoption involves conceiving both enterprises and investors that their existing business needs can be addressed in a faster and more cost-efficient way while maintaining the level of security and commercial confidentiality that they are used to. As such, Ofranc noted that the key question then becomes how to convince both parties at scale:

“One answer could be standards. Both target groups operate in environments where compliance to standards provides the level of assurance and reliability they require. One assumption could be that for enterprise DeFi to go mainstream, providers of decentralized finance solutions would need to consistently and measurably provide the same or superior level of guarantee.”

Standards aside, optimism remains for the future of enterprise DeFi. Kyle Thomas, founder and CEO of Provide Technologies — a company enabling the tokenization of real-world assets — told Cointelegraph that the opportunities to improve modern treasury operations and optimize cash management using financial instruments will incentivize large organizations to participate in the enterprise DeFi ecosystem.

Echoing this, Quensel noted that decentralized technology will be a game-changer for traditional finance moving forward. “You can send millions of dollars in financing across a blockchain network. You can’t do this with traditional banking systems.”

链闻消息，波卡生态项目 TrustBase 正式推出首批 Grant 基金，现已开放申请，目前的规模为 20 万美元，之后将持续扩充至 100 万美元。每一个获得 Grant 的项目可以得到最高价值 3 万美元的资助，另外，还将得到技术和生态支持。在初期，TrustBase 将在火币生态链 HECO 建立 Pool，专门为通过 Grant 项目提供资产应用场景。

原文链接：TrustBase 首批 Grant 基金正式推出，目前已开放申请

链闻消息，在以太坊开发者核心电话会议上，开发者仍将主网伦敦升级定于 7 月 14 日，不过需要在第一个测试网成功分叉后，再确定主网客户端升级区块。另外，开发者已同意将难度炸弹推迟到 12 月纳入升级。此外，测试网 Ropsten 将在区块高度 10399301 （6 月 9 日）进行伦敦升级，Goerli 和 Rinkeby 分别定于区块高度 4979794 （6 月 16 日）和区块高度 8813188 （6 月 23 日）时进行升级。

此外，伦敦升级还将引入 EIP-3541，该 EIP 阻止以 0xEF 开头的新合约。

原文链接：以太坊主网仍将于 7 月 14 日进行伦敦升级，难度炸弹将推迟到 12 月纳入

As vaccinations continue to be rolled out globally, more countries are starting to open up their borders to tourists.

Even though the ongoing coronavirus pandemic has yet to fully recede, an increasing number of countries are beginning to open up their borders to tourists once again. Furthermore, with large-scale vaccination drives taking place all over the world, it appears as though by the time summer rolls around again, it will become possible for many individuals to travel to certain holiday destinations once again.

In fact, according to the president of the European Commission, Ursula von der Leyen, American tourists will be able to pay a visit to their favorite European Union countries during summer 2021, given that they are able to fulfill the EU’s vaccination requirements.

In this regard, it should be pointed out that according to a tracker made available by the United States Centers for Disease Control and Prevention, over 35% of all American citizens have already been fully vaccinated, while 46% have received at least one shot.

Lastly, these vaccination numbers seem to be growing at a rapid rate, thereby hinting at the possibility that by the onset of June, a vast majority of the U.S. population — which includes many cryptocurrency enthusiasts — will be able to travel abroad.

It’s time to pack your bags

Though the last year and a half have been quite a rough ride for pretty much everyone across the planet, there is no denying that the crypto industry has recently been on the receiving end of some insanely bullish market action, especially over the course of the last six to twelve months.

To put things into perspective, since the start of 2021 alone, the total market capitalization of the digital asset sector has risen from approximately $780 billion to $2.4 trillion, exhibiting insane growth of over 200%. As a result, many crypto investors have seen their portfolios increase manyfold, giving them access to spare capital that they can use to take a much-deserved break.

So, here is an outline of some of the top destinations that crypto HODLers can visit to unwind. The list takes into account factors such as the ease of visa procuration, internet accessibility and low COVID-19 infection rates.

The Bahamas

The picturesque island nation of the Bahamas has been a go-to holiday destination for many Americans and Canadians for decades now, thanks in large part to its proximity to the Americas. In fact, around 92% of all tourists visiting the West Indian nation are from either North or South America.

As things stand, the Bahamas has a relatively low number of active COVID-19 cases. Furthermore, because the country already boasts of an infrastructural framework that is tailor-made for Westerners — i.e., high-speed internet and premium living locales — the Bahamas stands to be the perfect getaway for many tourists this summer.

To enter, American passport holders can forgo testing — a requirement that is applicable for other visitors — if they are able to provide legitimate proof of vaccination. That said, before flying, they are required to fill out a simple “Travel Health Visa” application that can be processed online.

Lastly, for crypto enthusiasts, it should be pointed out that the Bahamas was one of the first countries in the world to roll out its very own central bank digital currency, the Sand Dollar. In fact, it is the world’s first CBDC to go beyond a pilot phase and achieve an official launch. Moreover, regulators will be actively pushing to increase adoption of the CBDC this summer, so crypto participants traveling there could witness a historic event unfolding right before their eyes.

Cyprus

Situated in the Mediterranean Sea, Cyprus is another island nation that draws in millions of tourists annually. One of the main reasons that hordes of visitors flock to the country is its incredible weather, with both the summer and winter months remaining mildly warm and dry when compared with other parts of Europe.

Cyprus’ stance toward the crypto sector is quite friendly, despite the government recently warning its citizens against investing in Bitcoin (BTC). It is possible to convert various cryptocurrencies into local fiat via a number of exchanges that operate in the country, such as BitPanda and eToro, making it an ideal getaway for HODLers.

To enter, travelers simply need to share their vaccination documents with the Cypriot government via its “Flight Pass” tool. That being said, it should be pointed out that as per the Cypriot government’s recent guidelines, even vaccinated travelers may be asked to take random tests during their stay.

Greece

The southeastern European nation of Greece is one of the most popular tourist destinations in the world, attracting millions of people to its many islands across the Aegean and Ionian Seas.

This is, in large part, due to the country boasting of some of the most scenic beaches in Europe — like the black sand beaches of Santorini — as well as some of the most elite party resorts in the world, which are situated primarily in and around Mykonos.

Furthermore, since it is possible to buy/sell/convert a wide array of cryptocurrencies in Greece using established platforms such as Coinbase and eToro, crypto holders have even more incentives to pay a visit to the country.

In terms of traveling to the European nation, Greece has started opening its doors to American visitors who have gotten their recommended COVID-19 vaccine shots. However, it should be mentioned that in order to seamlessly enter the country, the second shot should have been administered at least two weeks prior to the trip. Travelers from all other nations are required to produce a COVID-19 negative test result upon arrival.

Georgia

Though many in the West may not be familiar with Georgia, as the nation is tightly wedged between Europe and Asia, the country boasts of a highly picturesque landscape and affords its travelers a high degree of safety. In fact, Tbilisi, Georgia’s capital, is consistently cited as one of the safest cities in the world.

For crypto enthusiasts in particular, Georgia is an excellent travel destination, as it provides digital-asset owners with seamless access to multiple crypto-fiat gateways. In addition, individuals in Georgia are exempt from income tax on any profits received from the sale of cryptocurrencies. Not only that, but any crypto-to-fiat transactions are not subject to value-added tax (VAT). This includes the lari, Georgia’s fiat currency.

To enter, travelers are required to furnish their COVID-19 vaccination records. Furthermore, U.S. residents who are not vaccinated are also allowed to enter, provided they have only traveled through certain nations and are carrying a negative test result with them.

Grenada

The tiny nation of Grenada is situated in the Caribbean and is the southernmost island in the Antilles archipelago. It offers unsoiled scenic landscapes and provides tourists with access to all of the amenities that they may be looking for in their ideal holiday destination.

The local crypto market is unregulated at the moment, and crypto enthusiasts can make use of many prominent exchanges such as Binance, CEX.IO and Coinmama to seamlessly switch between various cryptocurrencies and the Eastern Caribbean dollar — the national currency of Grenada — making shopping and payments a breeze.

Currently, the Grenadian government is allowing all vaccinated Americans to enter its borders. However, upon arrival, all entrants — even those who have been vaccinated — have to quarantine for 48 hours while officials conduct a COVID-19 test.