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Huobi Group Launches $100 Million Fund For DeFi And NFT Development 

Huobi Group, the holding company of the leading cryptocurrency exchange, Huobi Global, has recently launched a new subsidiary geared towards decentralized finance (DeFi) projects, non-fungible tokens (NFTs), and mergers and acquisitions.

Huobi Devotes $100M to DeFi

In a Thursday press release shared with CryptoPotato, the company noted that it has already deployed $100 million to this new venture investment arm dubbed “Huobi Ventures.”

The ultimate goal of this new subsidiary of Huobi Group is to increase the company’s investment portfolio, provide several innovative blockchain-related projects with long-term support, in addition to mergers and acquisitions. 

The press release also noted that the $100 million fund would provide support for new blockchain and DeFi projects over the next three years and expand the company’s product offerings.

“Acquisitions will be integrated into Huobi’s growing suite of blockchain-enabled applications and services to expand the business into new markets. The venture capital unit will make long-term investments in emerging blockchain use cases and DeFi projects,” the company said.

$10 Million for NFT

Huobi also revealed its interest in the rapidly growing area within the crypto industry — the non-fungible tokens (NFTs) market.

The company said its new venture investment arm would dedicate $10 million to create an NFT fund that will be used for investing in digital collectibles and its marketplace at large.

Despite the booming NFT market, Huobi’s CFO Lily Zhang noted that the company believes that the current market size is “only a fraction of what’s actually possible with NFTs.”  The executive added that “we’ll see use cases increase across gaming, media, enterprise, and more in the near future.”

As per the press release, Huobi Ventures will merge several of Huobi’s other investment vehicles like the Huobi Eco Fund, Huobi Capital, and Huobi DeFi Labs.

“We’re very excited about this launch because this is the first time we’re consolidating our investment strategy. Venture investments and corporate acquisitions have always been a part of our long-term strategy, but with blockchain and digital asset adoption accelerating, the market is now primed for us to invest on a much larger scale,” Zhang added.

Crypto Companies Investing in DeFi

Huobi is the latest institutional investor to create an initiative that is focused on boosting the DeFi sector of the cryptocurrency industry.

Over the past few months, the DeFi space has witnessed tremendous growth, prompting several large institutional investors to launch DeFi development funds.

Huobi’s latest blockchain and DeFi development venture comes just a few weeks after Polygon, the easy-to-use platform for Ethereum scaling and infrastructure development, launched a $100 million fund targeted at DeFi development.

Polygon plans to use the “DeFiforAll” fund to improve the accessibility of the DeFi ecosystem to more users within the next three years.

Source: Crypto Potato

Cardano DeFi Project deFIRE Secures $5M in Funding Round

deFIRE is a decentralized smart order routing engine being built for the Cardano ecosystem incubated and supported by Occam and powered by the industry leader in cross-chain liquidity provision, Changelly. 

It offers execution services across decentralized exchanges (DEX) such as token swaps, order routing services across DEXs, and providing intermediary services between order flow originators and ultimate execution venues. 

deFIRE Receives $5M in Capital From Industry Investors

deFIRE’s goal has managed to draw the attention of several reputable investors within the Blockchain space, including Morningstar, SwissBorg Ventures, Lotus Capital, MoonWahle, GenBlock, Sheesha Finance, IBA, CoinsGroup, and more, who contributed to the success of the pre-IDO fundraising.

The project intends to use the newly acquired capital to increase the extent of Occam.fi and Changelly’s partnership. It intends to expand its infrastructure, grow its client base, and scale its operations by increasing its platform capacity. 

Speaking on the development, Mark Berger, Occam Association’s president, said:

…We embrace this challenge by merging a rockstar tech team that has built its name in the Cardano ecosystem and the wide business network and other resources of Changelly to build the first optimal execution infrastructure for Cardano. Led by the best team and powered by the CWAP native token, deFIRE is light years ahead of competition.

Changelly’s CEO, Eric Benz, added that “DeFIRE leverages DLT and a contemporary market architecture to revolutionize the high-performance trading landscape by significantly and transparently enhancing order execution quality for institutions and individuals alike. Working alongside, I am sure we will bring a lot of value and liquidity to the Cardano ecosystem.”

Cardano’s First

deFIRE will be the first fiat on-ramp and swap platform for Сardano native tokens and will allow any token holder to swap one Cardano token for another directly. The pre-IDO funding round will enable deFIRE to leverage token liquidity early in its life cycle.

Source: Crypto Potato

Despite the Correction: Bitcoin’s Hash Rate and Mining Difficulty at ATH

Despite the sudden price correction, bitcoin’s fundamentals continue to reach new highs. The asset’s hash rate has recovered its recent declines and marked a new ATH. Accordingly, the network’s mining difficulty saw its most significant increase in nearly seven years to a new record level as well.

Hash Rate and Mining Difficulty to New Records

Bitcoin’s hash rate is the measuring unit of the processing power on the asset’s blockchain. The general rule of thumb suggests that when there’re more miners who put their computational devices to work on the network, the metric increases, and vice-versa. Naturally, the higher the hash rate is, the more secure and robust the network is.

Overall, the hash rate has been increasing gradually in the past few years with a few brief dips, primarily caused by miners from China. The latest one came in mid-April when reports informed about massive power outages in Xinjiang province – one of the dominant regions for BTC mining operations.

According to Blockchain.com, the metric indeed fell hard from over 170M TH/s to around 130M TH/s in days. Since then, though, the hash rate not only bounced back but went for another all-time high record at just shy of 180M TH/s.

Bitcoin Total Hash Rate. Source: Blockchain.com
Bitcoin Total Hash Rate. Source: Blockchain.com

The mining difficulty is a self-correcting feature embedded in bitcoin’s blockchain that either increases or decreases depending on the number of active miners. In other words, when there’re many miners and the hash rate increases, the difficulty goes up and vice-versa. This process takes place at every 2,016 blocks (roughly two weeks).

As the hash rate reached a new ATH just recently after a substantial decline in mid-April, the mining difficulty had to act accordingly. In fact, it underwent the largest increase in almost seven years (21.5%), as Glassnode informed. As a result, this metric also registered a new all-time high record.

Bitcoin Mining Difficulty. Source: Glassnode
Bitcoin Mining Difficulty. Source: Glassnode

Bitcoin’s Price Slides Hard

While the network becomes more and more robust, one tweet initiated by Tesla’s Elon Musk drove the cryptocurrency’s price south. As reported yesterday, the electric vehicle maker decided to cease using BTC as a payment method.

The asset tumbled immediately and lost more than $12,000 in a day. Despite recovering initially and jumping above $50,000, BTC has dipped once more and currently sits below this coveted price line.

Bitcoin’s market capitalization also fell below an important milestone and is well beneath $1 trillion as of writing these lines.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Source: Crypto Potato

Digitex Announces Launch of Blockfarm Yield Farming: First Program Offers $50K ETH

[PRESS RELEASE – Please Read Disclaimer

13/05/2021, St. Vincent – Digitex Ltd, a commission-free crypto futures and spot exchange, has announced the launch of its new yield farming platform, Blockfarm, built within the Digitex exchange. Through Blockfarm, users can earn an attractive passive income on their crypto holdings in a short space of time by staking the exchange’s native DGTX token to receive rewards in different cryptocurrencies, starting with Ether (ETH).

At a time when ETH price is soaring to record all-time highs, Digitex allows users to purchase DGTX commission-free and earn rewards in ETH to compound their rising ROIs. Through Blockfarm, users can make gains on Ether’s rising price as well as staking rewards paid out in ETH on their DGTX.

To mark the event, participants will be able to collectively earn $50,000 worth of ETH in a 30-day period. Notably, unlike staking ETH for rewards on other platforms, Digitex users can stake and unstake their DGTX at any time. Digitex CEO Adam Todd commented:

“The ETH staking program will be the first of many to follow as more cryptocurrencies are added to the exchange. Blockfarm is designed to build value for Digitex users… therefore, as new cryptocurrencies begin to list on our zero-fee exchange, users will also be able to earn rewards in their chosen currency through our Blockfarm platform.”

Unlike other high-yield initiatives, the Blockfarm yield farming platform is easy to use. Participants must simply create an account on Digitex, purchase DGTX to deposit into their main account, and then transfer it to the Blockfarm platform. The APY will vary depending on how many users take part. Digitex has been running a successful yield program via Uniswap for around six months, for example, and the APY ranges between 35% and 150%.

“We’re thrilled to provide more utility for the DGTX token and drive demand for long-term holders. As more yield farming programs get added to Blockfarm, the more demand will be driven to DGTX and, as more DGTX gets locked up, its value can gradually increase,” Todd added.

About Digitex Ltd

Digitex Ltd is a zero-fee cryptocurrency spot and futures exchange that makes use of its native DGTX token to enable liquid commission-free markets. Registered in St. Vincent, the company was founded by former futures and betting-exchange trader Adam Todd, who developed a revolutionary token issuance revenue model for sustainably operating an exchange without charging commissions.

Source: Crypto Potato

MicroStrategy Buys Another $15M Worth of Bitcoin at $55K

Despite the volatile market conditions, Michael Saylor’s business intelligence giant has doubled down on its BTC-related strategy. The firm bought another chunk of 271 bitcoins, and its total stash is now nearly 92,000 coins.

  • The NASDAQ-listed company announced the latest purchase of 271 bitcoins on May 13th. The firm said it had bought the amount for $15 million.
  • Despite being brought to the world today, the purchase was most likely made yesterday, as MicroStrategy said the average price was $55,387 per BTC. This is the asset’s price from yesterday, as it tumbled in value today to a 2-month low beneath $47,000 following news that Tesla has disallowed BTC payments for its vehicles.
  • With this considerable addition, MicroStrategy’s entire bitcoin stash has grown to 91,850 coins. The company began allocating funds in the primary cryptocurrency in August last year.
  • The average entry price for the numerous purchases made since then is $24,403 per bitcoin.
  • Ultimately, MicroStrategy has paid $2.241 billion for the coins it holds. However, with the asset’s impressive appreciation in value since then, their holdings are worth around $4.6 billion at today’s prices.
  • Apart from owning 0.437% of all bitcoins ever to exist, the software giant and its CEO have launched multiple other pro-BTC initiatives in recent months.
  • MicroStrategy held a designated panel earlier this year aiming to educate C-level executives from large companies on the merits of investing in bitcoin. Shortly after, Saylor released a comprehensive course for retail investors as well.
  • Additionally, the company made a significant change in its internal procedures as it started to pay its non-employee board members in BTC rather than cash.

Source: Crypto Potato

Orbs Integrates with Chainlink to Create Flash Loan-Proof Farming Protocol

[PRESS RELEASE – Tel Aviv, Israel, 13th May 2021]

Orbs, the project at the nexus of enterprise and DeFi, is integrating with tamper-proof Chainlink Price Feeds oracles to secure its unique single-sided exposure yield generation protocol, the Liquidity Nexus.

Liquidity Nexus is the DeFi protocol that lets different counterparties split the potential rewards, as well as the risks from impermanent loss when providing liquidity on Automated Market Maker (AMM) exchanges like Uniswap. Normally, most farming incentives rely on pool tokens, which require users to divide their capital into two separate assets, for example, Ether and USDC. Such exposure profiles force ETH holders to sell a portion of their assets to enter the pool, thus potentially missing out on more than half of the gains they would have if they simply held onto the Ether. At the same time, many asset managers prefer remaining exposed only to USD and collect a safe and predictable yield, but the pool token mechanism leaves them unable to do so.

The Liquidity Nexus matches crypto bulls with USD holders to clearly separate the risks. Crypto holders remain fully exposed to their assets, while USD liquidity providers do not take undesirable crypto exposure. The combined pool of funds is then sent into the AMM pools to earn yield by facilitating cryptocurrency swaps.

Due to the mechanism of impermanent loss, there could be situations in which one party’s crypto exposure changes as the price of the asset moves. Since this is an expected phenomenon, Liquidity Nexus is set up so that cryptocurrency holders bear the brunt of the impermanent loss while collecting a larger portion of the yield. Due to the benefits of single-sided exposure, impermanent loss is unlikely to make a deeper cut into their profits than the alternative of splitting their assets before providing liquidity.

Price manipulation attacks can nonetheless create serious issues for the Liquidity Nexus system, creating situations where one side of the pool may be drained due to very sudden and sharp drops or rises of an asset’s price. These types of attacks have resulted in tens of millions of dollars in losses for DeFi protocols relying on single-source oracles. Facilitated by flash loans, an unlimited instant loan, malicious actors easily manipulated some individual markets that oracles relied on to find pricing data on assets to steal funds.

Chainlink is the leading oracle provider that effectively protects against market manipulation by aggregating from hundreds of data sources. Attacks on a particular DEX do not affect Chainlink, as it has countless other CEXs and DEXs to read accurate data from. No protocol using Chainlink has seen a flash loan-based exploit so far.

“The Liquidity Nexus is a revolutionary idea for DeFi, creating a platform of risk tranching that clearly divides risks between USD and crypto holders,” said Daniel Peled, founder of Orbs. “We wanted to mitigate the vulnerability to oracle attacks, which wreaked havoc to the DeFi ecosystem. We are excited to announce the integration with Chainlink, a proven oracle network, to eliminate this dangerous attack pathway for the Liquidity Nexus.”

About Orbs

Orbs is a public blockchain infrastructure designed for mass usage applications – offering developers a proper mix of performance, cost, security, and ease of use. The Orbs protocol is decentralized and executed by a public network of permissionless validators using Proof-of-Stake (PoS) consensus. Founded in 2017, Orbs is being developed by a dedicated team of more than 30 people out of its offices in Tel Aviv, Israel, Singapore, Tokyo Japan, and Seoul, South Korea. Orbs was named Gartner’s “Cool Vendor in Blockchain Technology” for 2018
Orbs has been particularly active in the DeFi space and is heavily involved in funding and supporting upstart DeFi projects, both through an in-house Grants program and the DeFi.org accelerator, launched in 2021 as the result of a collaboration with Binance, with its latest push into DeFi space being launch of the Liquidity Nexus, has been launch of the Liquidity Nexus.

About Chainlink

Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts.

Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds.

Source: Crypto Potato

Holding Strong: Cardano (ADA) Broke its ATH Despite the Crypto Market Crash

Cardano (ADA) continues with its highly impressive 2021 performance after registering yet another all-time high. Interestingly, this one was quite unexpected as the rest of the crypto market is nosediving.

  • Cardano entered the new year at around $0.18, but it has taken full advantage of the ongoing bull run since then.
  • The cryptocurrency quickly shot above $1, entered the top ten largest digital assets by market cap, and continued heading north.
  • In the following months, ADA doubled down on its impressive performance and headed into uncharted territory above $1.5.
  • CryptoPotato reported roughly a week ago when the asset spiked by 20% in a day and reached an all-time high at $1.7.
  • Although these 840% YTD gains were impressive on their own, ADA has kept climbing since then. Earlier today, the cryptocurrency charted yet another record at over $1.87 (on Kraken).
ADAUSD. Source: TradingView
ADAUSD. Source: TradingView
  • This mind-blowing increase means that ADA’s price has grown by more than ten times since the start of 2021.
  • Moreover, CoinGecko data shows that precisely 14 months ago – on March 13th, 2020, ADA had plummeted to its all-time low of $0.019. Since the COVID-19-induced market crash, the asset is up by about 9,400%.
  • What’s also compelling about today’s record is that it came during another market-wide correction. As reported earlier, the entire market cap lost roughly $500 billion in a day after Elon Musk’s Tesla disabled bitcoin payments for its products.
  • Bitcoin dumped by $12,000 in a day and most alternative coins followed suite. ETH (-13%), BNB (-13%), DOGE (-20%), XRP (-11%), BCH (-17%), and UNI (-10%) are all down from the top ten.

Source: Crypto Potato

$4 Billion Liquidated in a Day Following the Tesla Announcement

Today is a bloody day in the cryptocurrency market. The current downturn was propelled by Tesla’s most recent announcement, revealing that the company will no longer be accepting bitcoin as payment for its electric vehicles.

  • As CryptoPotato reported earlier today, the electric vehicle manufacturer announced that they would no longer accept BTC for its products.
  • Elon Musk also retweeted the decision, which quoted environmental issues related to the energy-intensive Bitcoin mining process.
  • This had many in the community scratching their head as to what changed Musk’s mind after he had previously agreed with Jack Dorsey that bitcoin incentivizes renewable energy.
  • In any case, the damage is done, and the cryptocurrency market is bleeding in response. The total capitalization lost almost $400 billion (at the time of this writing) within the last 24 hours.
  • Moreover, around $4 billion worth of both long and short positions were liquidated in the same period, according to data from Bybt.
  • Not surprisingly, bitcoin markets account for the majority of the liquidations, standing at just over $2 billion at press time, followed by ETH and Filecoin.
liquidations_bybt-min
Liquidations by Symbol. Source: Bybt
  • Almost 90% of the liquidations were of long positions where Huobi and Bybit occupy the first two spots in terms of volume, followed by Binance and OKEx.

Source: Crypto Potato

Ethereum Price Analysis: ETH Loses Key Level Following 14% Daily Crash

ETH/USD – Ether Falls Out Of Narrow Price Channel

Key Support Levels: $3,577, $3,437, $3,250.
Key Resistance Levels: $4,000, $4,205, $4,373.

Ethereum is down by a sharp 14% over the past 24-hours as the coin drops beneath $4,000 and breaks below the narrow ascending price channel. It was trading inside this channel since the last week of April as it hit a new all-time high of $4,373 yesterday, where it found the resistance at the upper boundary of the channel.

Today, a steep decline in BTC caused ETH to drop quite significantly. It started toward the end of yesterday’s candle, which caused it to close around $3,800 (.236 Fib). Today, the price fall continues as ETH dropped beneath the price channel to hit a low of $3,577. It has since bounced back above $3,600, but the break of the channel is quite significant.

ETH/USD
ETH/USD. Source: Bitstamp

ETH-USD Short Term Price Prediction

Looking ahead, the first support lies at today’s low of $3,577. This is followed by $3,437 (.382 Fib), $3,250 (20-days MA0, $3,150 (.5 Fib), and $3,000.

On the other side, the first resistance now lies at $4,000. This is followed by $4,205 (1.414 Fib Extension), $4,373 (ATH), and $4,535 (1.618 Fib Extension).

The RSI was showing hints of bearish divergence before the large sell-off. Interestingly, it still remains above 60. This indicates that there is still weak bullish momentum within the market, and the bears have still not taken over.

ETH/BTC – Bulls Struggle To Close Above 0.077 BTC.

Key Support Levels: 0.075 BTC, 0.0724 BTC, 0.07 BTC.
Key Resistance Levels: 0.077 BTC, 0.08 BTC, 0.0838 BTC.

Against bitcoin, Ether is also trading in an ascending price channel and has not broken to the downside. Yesterday, ETH surged as high as 0.08 BTC but struggled to close the daily candle above resistance at 0.077 BTC (1.414 Fib Extension).

Today, ETH dropped slightly and is now trading at 0.0753 BTC.

ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, the first support lies at 0.075 BTC (lower boundary of the channel). Beneath the channel, added support lies at 0.0724 (.236 Fib), 0.07 BTC, 0.0677 BTC (.382 Fib), and 0.0638 BTC (.5 Fib).

On the other side, the first strong resistance lies at 0.077 BTC (1.414 Fib Extension). This is followed by 0.08 BTC, 0.0838 BTC (1.618 Fib Extension), 0.0866 BTC (1.414 Fib Extension – blue), and 0.09 BTC.

The RSI is still strongly in the bulls’ favor here – although it is starting to point lower. If it continues to head lower, the bullish momentum will start to decrease and might lead to a short-term retracement.

Source: Crypto Potato

Bitcoin Struggles At Critical Support Before Further Possible Plunge (BTC Price Analysis)

Bitcoin saw a very sharp 11% price drop over the past 24-hours of trading as the cryptocurrency fell as low as $46,000 earlier today.

The primary cryptocurrency had been trading at a high above $58,000 yesterday but started to drop sharply from the $54-55K region following news that Tesla stopped accepting BTC as payments for their electric vehicles.

Along with the fundamental cause, the cryptocurrency had also broken beneath a rising wedge formation a day before this, as mentioned in our most recent bitcoin analysis. The violent sell-off had accomplished the mentioned target of $46-47K, which was also the monthly lows reached in April.

Despite the bearishness, bitcoin is now facing a critical short-term decision.

Earlier today, following the drop to $46k, bitcoin saw a decent rebound of over $5K before retracing to around the $50k levels (as of now). The coin is currently battling to remain above an ascending trend line that dates back to February 2021 and forms a hammer candlestick pattern that could help to stall any further declines if today’s closing candle closes like this. The latter is the optimistic option.

On the other hand, BTC had lost the significant 100-day EMA level at $51,000, and this has now turned into solid resistance moving forward. This resistance is also the short-term bearish .382 Fib from the recent sell-off – best seen in the following 4-hour chart.

In addition, bitcoin has now formed a large head and shoulders pattern, dated from March. A break beneath the neckline of this pattern, which lies around the $48.5k support, could see BTC potentially heading as low as $32,000, which is the target of the bearish H&S pattern.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $50,000, $48,450, $47,000, $46,000, $44,750.

Key Resistance Levels: $51,000, $52,650, $53,700, $54,725, $56,660.

Looking ahead, the first support lies at $50,000. Beneath this, support is expected at $48,450 (.886 Fib), $47,000 (long term .5 Fib), $46,000 (today’s low), and $44,750. Further support is found at $42,770 (long term .618 Fib), and $42,000 (January 2021 highs).

On the other side, the first major resistance lies at today’s current high of $51,000 (100-day EMA & short term bearish .382 Fib). This is followed by $52,650 (bearish .5 Fib), $53,700 (100-day MA), $54,275 (bearish .618 Fib), and $56,650 (50-day MA).

The RSI is beneath the midline as the bears take control of the market momentum. However, it is still far from being extremely oversold – indicating that there is still room for the bears to push further toward the downside before becoming exhausted.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView

Bitstamp BTC/USD Daily Chart: Head & Shoulders Pattern

BTC/USD Daily Chart. Source: TradingView

Bitstamp BTC/USD 4-Hour Chart

btcusd-4hr-may13
BTC/USD 4-Hour Chart. Source: TradingView

Source: Crypto Potato