Day: May 18, 2021

Cardano’s ERC-20 converter tool with built-in two-way convertibility will soon be open for beta testing.

Decentralized finance on the Cardano blockchain is drawing closer to becoming a reality, with a token migration bridge soon to enter the testing phase.

According to Francisco Landino, project manager at Input Output Hong Kong, or IOHK — the research and development arm responsible for Cardano — the platform’s ERC-20 migration tool is nearing testnet deployment.

In a blog post published on Monday, Landino said that the ERC-20 converter tool will allow the migration of Ethereum-based tokens to the Cardano chain.

The planned ERC-20 converter bridge will follow Cardano’s highly anticipated Alonzo hard fork, which is touted to bring smart contract functionality to the network.

Arguing for the necessity of the ERC-20 conversion tool, Landino wrote:

“Once deployed, users of supported Ethereum tokens will be able to bring them over from Ethereum’s congested network and take advantage of Cardano’s transaction capacity and lower fees, while enjoying enhanced security, reduced cost, and interoperability.”

As part of the announcement, the IOHK executive also stated that the ERC-20 conversion tool was an important part of efforts to leverage Cardano’s value proposition over Ethereum in terms of parameters, such as scalability and transaction costs.

With only a few clicks, crypto projects will be able to migrate their native tokens to the Cardano chain via the converter tool. The Cardano analog will hold the same value as the Ethereum-based “coin,” and the baked-in two-way convertibility means the process can be reversed at a later time.

Plans for the converter testnet deployment are already underway, with Landino stating that SingularityNET’s AGI token will be the first ERC-20 coin migrated to the Cardano chain.

Moving forward, the IOHK executive said the Cardano team envisages the potential for the ERC-20 converter tool to become a cross-blockchain bridge.

Data from DappRadar puts the adjusted total value locked in the Ethereum decentralized finance market at over $68.5 billion. Amid the talk of layer-two solutions being the next frontier for the Ether-based DeFi market, major altcoin chains like Cardano are also looking to become the de facto home for the emerging DeFi arena.

Major Swiss crypto bank Sygnum is planning to launch options trading for the ICP token at a later date.

Switzerland-based cryptocurrency bank Sygnum is launching custody and banking services for Internet Computer (ICP) utility tokens.

Sygnum announced Tuesday that ICP holders will be able to deposit their tokens with the bank’s institutional-grade segregated wallets. The firm said that it is the first bank to offer storage for ICP utility tokens, which debuted trading on May 11.

In a second phase of rolling out ICP support, Sygnum plans to launch a suite of banking services for the token, including spot trading as well as options trading at a later date. The bank also expects to offer Sygnum Lombard loans for ICP in the future, allowing clients to access liquidity against ICP token holdings.

Apart from providing custody and trading services for the ICP token, Sygnum is also a member of the Internet Computer Association, a Geneva-based independent member organization that advocates for the Internet Computer network. 

Developed by the Dfinity Foundation, a Zurich-based not-for-profit scientific research organization, Internet Computer is a decentralized blockchain project designed to expand the functionality of the public internet. The project specifically intends to shift from standard internet protocols to a publicly accessible global supercomputer that is based on its own ICP protocol.

Sygnum co-founder and board member Manuel Krieger said, “We believe that the decentralised and open nature of the Internet Computer will spark a wave of innovation across internet services, software platforms, and user experiences.”

The news comes a week after the ICP token debuted trading on major global exchanges like Coinbase Pro, Binance, Huobi and OKEx. After five years of development, the ICP token saw a parabolic spike immediately after its trading debut, becoming the fourth-largest cryptocurrency by market capitalization on May 12, with its price reaching as high as $3,093 on Binance exchange.

The ICP token lost over 60% of its market value since its trading began, and is trading at $196 at the time of writing. ICP is currently the ninth-largest cryptocurrency by market capitalization at $24 billion, according to data from CoinMarketCap.

A simple look back at past BTC price dips means that a 55% correction from all-time highs is on the table, says Carter Worth.

Bitcoin (BTC) could drop to $29,000 and still be testing current support in line with past dips, claims CNBC’s “Chartmaster.”

In an appearance on the network’s Fast Money segment on Monday, Carter Worth, chief market technician of Cornerstone Macro, warned that the BTC bottom may be far from in.

Pick your average for a Bitcoin price floor

Analyzing recent price activity and comparing it to past Bitcoin bottoms, Worth said that current levels at around $45,000 represent the top of a support zone.

“Were we to go down 55%, we’d be in the lower end of support,” he summarized.

“I think we’re in support — it’s fighting, but my hunch is it goes lower.”

A 55% drop from current all-time highs would mean BTC/USD bottoms out at just above $29,000.

For Worth, this is a useful reference point, as 55% marks the average of every major price dip of 30% or more since 2011. As Twitter users noted, however, his calculations include events such as the 80% decline from all-time highs in 2017 — a process that took over a year to unfold.

Remove these, and the average is more like 36% — just about where BTC/USD bottomed this week.

Bitcoin moves on from Elon Musk

The mood among mainstream media more broadly on Bitcoin and altcoins is once again cautious in light of the publicity generated by Tesla CEO Elon Musk.

Added to this, the mixed fortunes of Coinbase’s COIN mean that bearish sentiment remains de rigueur for analysts who have spent months in shock at the pace of the industry’s gains.

As Cointelegraph reported, however, seasoned analysts from within Bitcoin circles are far from concerned, highlighting intact long-term price trends and even signs of bullishness already appearing.

On Monday, PlanB, creator of the stock-to-flow BTC price model, sought to draw a line under the Musk episode.

“OK moving on .. with current volatility, BTC at $44K and transaction volumes high, Bitcoin momentum (200 Week Moving Average and Realized Value) is still up and onward,” he commented on an accompanying chart.

Realized value represents the price at which the entire Bitcoin market bought BTC and continues to advance despite recent volatility.

Ether search interest is higher than ever, and is attracting interest from around the globe, a new report reveals.

The United States is the country most interested in Ether (ETH), followed by Germany and Turkey, an analysis of search data has revealed.

A report by Invezz.com, as reported by Finbold, showed 1,116,000 searches per month for the term ‘Ether’ emanating from the United States. Excluding searches by budding chemists, that’s the equivalent of around 36,000 internet searches per day for the world’s number-two cryptocurrency by market capitalization.

Germany and Turkey followed close behind with 736,300 and 408,500 searches per month respectively. Among the top three, Germany contained the most Ether searches per capita, with 9.46 searches per 1,000 internet users, compared to 3.57 in the U.S.

Switzerland, which came 12th on the list, showed the highest concentration of search interest, with 11.79 searches per 1,000 internet users. The United Kingdom came 6th on the list, with 230,000 monthly searches, equating to 3.53 searches per 1,000. Predictably, the highest concentrations of interest came from Western countries where widespread internet access is most prevalent.

Google Trends data shows a marked increase in the number of Ethereum Google queries since the beginning of 2021, with searches hitting an all-time high to date. The Ether coin price increased close to 400% since January alone, climbing from around $700 to its current valuation of $3,460. As the dollar value of Ethereum grew, so too did its overall dominance in the crypto market cap rankings, with Ether representing close to 20% of the global market cap by early May.

A recent report showed that Ethereum investment products continued to boom this month, even as the coin price receded almost 25% from its all-time high. Ethereum’s transaction fees fell in exaggerated tandem with the coin price, sinking 71% from a recent peak.

With shares in the Nasdaq-listed cryptocurrency exchange continuing to underperform, Coinbase is seeking a $1.25 billion cash injection from institutional investors.

United States-based cryptocurrency exchange Coinbase seeks to raise $1.25 billion in funds through a proposed private offering for institutional buyers. 

According to an announcement on May 17, the offering will be in the form of convertible senior notes due 2026, available only for institutional investors who manage a minimum of $100 million in securities issued by other companies. These investors are defined as such pursuant to Rule 144A of the U.S. Securities Act.

A senior convertible note is a debt security that entitles its holder to a stream of interest payments. Coinbase outlined the specific terms of its offering:

“Coinbase also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $187.5 million principal amount of notes solely to cover over-allotments. The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on June 1, 2026, unless earlier repurchased, redeemed or converted. The notes will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination thereof, at Coinbase’s election.”

According to the announcement, the interest and initial conversion will be set upon the pricing of the offering. Since news of the offering, markets have continued to react poorly to Coinbase (COIN) shares, which had already dropped to $245 in conjunction with a 35% decrease in the price of Bitcoin (BTC). 

COIN’s underperformance continues despite the exchange’s exceptional first-quarter results, which were released one week prior to the company’s direct listing on Nasdaq in mid-April. Trading volume was up 276% with quarterly revenue hitting $1.8 billion. 

However, some analysts judge that Coinbase’s share price is likely to decline to as low as $100, claiming that “the company is unlikely to meet the future profit expectations baked into the stock price.” The analysis rests on the expectation that even with impressive Q1 earnings, competitors and potential future public listings by other crypto firms will likely drive down its future revenues.