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Binance Chief CZ Talks DeFi, Ethereum 2.0, And More

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The Binance chief CZ is in the latest cryptocurrency news for remaining skeptical about Ethereum 2.0’s features. As he said, the decentralized finance space is in full swing, and one of its biggest supporters appears to be exactly the exchange Binance. The platform and its United States branch recently joined the Chicago DeFi Alliance, with a main aim to further develop the US DeFi industry.

Additionally, the Binance news show that support for new DeFi projects continues to grow. Most recently, the exchange has demonstrated its close ties with BurgerSwap, which is a new decentralized exchange that aims to improve upon the Uniswap project.

The Binance chief CZ has been bullish on DeFi for a while. In a recent interview, he expanded on his opinion and said more about why this sector has started taking off, as well as what we can expect from it moving forward. When asked about why DeFi is hot right now, the Binance chief CZ said:

“The automated market makers use a pricing mechanism that follows a curve. So, they hold a constant ratio of different assets in the liquidity pool. This type of curve with automated market making has a strong advantage, being that is very transparent. If I lose money, I know why. So, there is potential for users to lose money, but they know exactly why. There’s not a lot of cheating going on.”

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Zhao also attributed Binance’s involvement with DeFi and said that the exchange lists DeFi tokens fairly aggressively. He also said that right now on Binance.com, there is a liquidity swap product and the target users are more so the novice users who don’t want to hold their own keys because they are afraid of losing them.

When it comes to the decentralized side of things, the Binance chief CZ mentioned that they have been working on Binance Smart Chain for over a year, describing it as “an Ethereum-compatible smart contract.”

“Feature-wise, it’s 100% compatible with Ethereum. But speedwise, it is actually much faster, which helps reduce the high gas fees and traffic congestion problem on Ethereum, given the increased traffic that DeFi has brought. Binance Smart Chain is another offering we were putting out there to allow developers to launch their DeFi projects very easily.”

When asked about Ethereum 2.0, CZ said:

“I think Ethereum 2.0 is really hard to deliver. It’s just one of those things that need full features and very high flexibility. Also, this has to run on a laptop with high speed, and you want it to be decentralized. Those problems are hard to solve.”

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/binance-news/binance-chief-cz-admits-buterin-talks-defi-ethereum-20-and-more/

Blockchain

OKEx Saga and Dangers of Crypto Exchange Custody

The dangers of storing crypto on custodial platforms were once again brought into sharp relief as internal problems within the OKEx crypto exchange saw the company suspend withdrawals. With about $2.3 billion in Bitcoin (BTC) stuck on OKEx vaults, the news of OKEx pausing withdrawals did cause some shockwaves in the market. Bitcoin has since […]

The post OKEx Saga and Dangers of Crypto Exchange Custody appeared first on BeInCrypto.

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The dangers of storing crypto on custodial platforms were once again brought into sharp relief as internal problems within the OKEx crypto exchange saw the company suspend withdrawals.

With about $2.3 billion in Bitcoin (BTC) stuck on OKEx vaults, the news of OKEx pausing withdrawals did cause some shockwaves in the market. Bitcoin has since recovered from the 3% decline suffered at the time and is now trading at the $11,970 price mark.

Paused withdrawals and temporary market turbulence

As previously reported by BeInCrypto, OKEx suspended withdrawals on its platform on Oct. 16. The sudden nature of the news consequently caused a significant Bitcoin price decline.

As reported, 30 minutes after the OKEx announcement, Bitcoin lost over $300 bottoming out at the $11,200 price mark. OKB — the OKEx native token — also suffered an even greater decline, tumbling from $6 to $4.22 amid the negative press generated by the news.

Despite the withdrawal suspension, reports began circulating on social media about large outflows from OKEx wallets. Tweeting on Oct. 16, Philip Gradwell, chief economist at on-chain analytics platform Chainalysis, clarified that those transactions had nothing to do with OKEx.

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The exchange itself later debunked those rumors via a press release issued on its website, on Oct. 17. As part of its statement, OKEx assured users that funds remained safe and that all other non-withdrawals operations were still functioning normally.

In a statement shared with BeInCrypto, OKEx CEO Jay Hao explained:

“We understand that the suspension of withdrawals directly impacts our users’ experience on OKEx, and we wholeheartedly apologize for this. All other activities — including deposits, spot trading, derivatives, staking, etc. — remain unaffected, and we would like to provide our assurance to all our customers that their funds are safe.”

Indeed, on-chain monitoring bots flagged several high-value OKEx deposits despite the suspension of withdrawals. In two separate transactions, blockchain tracker Whale Alert announced almost 2,000 BTC inflow to OKEx.

Star Xu arrested

As part of its initial announcement, OKEx revealed that it had lost contact with one of its private key holders. BeInCrypto later reported a story by Chinese news agency Caixin that the police arrested Star Xu earlier in October.

In a conversation with BeInCrypto, an OKEx spokesperson declined to comment on the matter, adding:

“We are unable to disclose the nature of an ongoing investigation but would like to assure all OKEx users that their funds are safe and that all other functions on OKEx are unaffected. We understand that the temporary suspension of withdrawals will cause inconveniences, and we sincerely apologize. However, we feel that it is necessary in order to maintain our high standard of security for users’ funds on OKEx.”

Numerous unverified claims abound regarding the nature of Xu’s latest run-in with law enforcement in China. One theory claims the OKEx founder is involved in shadow banking and attempted illegal company listing on the Hong Kong Stock Exchange (HKSE). This rumor even states that Xu’s arrest is in connection with the detainment of other actors with ties to multiple Chinese cryptocurrency exchanges.

Xu’s arrest also highlights some questions about the exact nature of the OKEx leadership structure. Star Xu is the founder of OKCoin and OK Group. According to data from Chinese business registration, OKEx is run by the same holding company that operates OKCoin. However, reports on Chinese social media claim OKEx has distanced itself from Xu.

Proof of Keys

The inability of OKEx users to withdraw their funds apparently provides yet another disadvantage of storing cryptocurrency on exchanges. Despite the decentralized ethos of the crypto and blockchain industry, these platforms exhibit the vulnerabilities of centralized businesses in that they present a single point of failure.

“Not your keys, not your coins” is a popular refrain among many crypto industry participants. The logic is simple, coins held on custodial platforms can be easily confiscated or become inaccessible to the depositor.

Spot exchanges appear to offer even greater risks than their mainstream counterparts which belie the point of the novel tech being an improvement over the current financial architecture. Traditional bourses do not receive direct deposits from traders as these payments go through brokerage firms.

Brokers, by law, hold bank accounts that domicile user deposits. Thus, any regulatory action taken against a brokerage firm does not necessarily affect customer funds. The broker’s bank should be able to return all deposits made by the traders while the firm faces whatever issues it has with regulators or law enforcement.

Customers of platforms like the defunct Mt. Gox and QuadrigaCX are still waiting to see if they will ever recover their stolen funds. Back in September, KuCoin became the latest exchange to fall victim to hackers, with over $150 million stolen from the platform.

Every Jan. 3rd, the crypto community celebrates the Proof of Keys event on the anniversary of the Bitcoin Genesis block. On this day, cryptocurrency owners are advised to move their “coins” off centralized exchanges to more secure hardware wallets and other cold storage options.

Source: https://beincrypto.com/okex-saga-and-dangers-of-crypto-exchange-custody/

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Ripple Price Analysis: XRP Crashes To 3-Month Low Against Bitcoin, What’s Next?

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XRP/USD – Bulls Remain Inside Symmetrical Triangle Pattern

Key Support Levels: $0.237, $0.23, $0.228.

Key Resistance Levels: $0.251, $0.261, $0.271.

XRP has not been outperforming over the past seven days, but it remains inside the boundaries of a symmetrical triangle. The coin failed to break the upper boundary last week, which caused it to head into the support at the lower boundary.

It rebounded at the lower boundary but has struggled to remain above the 100-days EMA at around $0.243. XRP spiked higher yesterday and over the past hours, but the bears have banded together to suppress the price beneath the 100-days EMA.

The next direction for XRP will be dictated by the direction in which price breaks the symmetrical triangle, as shown in the following chart. A break toward the upside would result in XRP heading higher toward $0.26, but a break to the downside could see XRP heading back toward $0.215.

xrpusd-oct20
XRP/USD Daily Chart. Source: TradingView

XRP-USD Short Term Price Prediction

Looking ahead, the first level of resistance is located at the 100-days EMA. Above this, resistance lies at the upper boundary of the triangle, at around $0.251, where the bearish .382 Fib Retracement level lies.

Above this, resistance is located at $0.261 (bearish .5 Fib Retracement), $0.271 (bearish .618 Fib Retracement), and $0.28 (1.414 Fib Extension).

On the other side, the first level of support lies at the lower boundary of the triangle. Beneath this, support lies at $0.237 (200-days EMA), $0.23, and $0.228 (.618 Fib Retracement).

From a technical standpoint, the Stochastic RSI has produced a bullish crossover signal in oversold territory, which could lead to some positive momentum.

XRP/BTC – Is XRP Heading Beneath 2000 SAT?

Key Support Levels: 2050 SAT, 2022 SAT, 2000 SAT.

Key Resistance Levels: 2100 SAT, 2142 SAT, 2200 SAT.

XRP struggles heavily against Bitcoin after it dropped beneath the 2100 SAT level today to create a fresh 3-month low at the 2057 SAT level. The last time XRP/BTC was at that low was on July 28, 2020.

At the start of October, XRP attempted to push higher against BTC but was stalled by the 200-days EMA at around 2400 SAT.

From there, XRP headed lower throughout the month to reach 2057 SAT today, and it is likely to head further still.

xrpbtc-oct20
XRP/BTC Daily Chart. Source: TradingView

XRP-BTC Short Term Price Prediction

Looking ahead, the first level of support lies in the 2050 SAT area (downside 1.414 Fib Extension). Following this, support lies at 2022 SAT, 2000 SAT, and 1975 SAT.

On the other side, the first level of resistance now lies at 2100 SAT. Above this, resistance is expected at 2142 SAT, 2200 SAT, and 2250 SAT.

Both the RSI and Stochastic RSI are in extremely oversold territory, suggesting that the sellers are slightly overextended at this point.

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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.


Source: https://cryptopotato.com/ripple-price-analysis-xrp-crashes-to-3-month-low-against-bitcoin-whats-next/

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Bitcoin Price Will Skyrocket as Markets Riddled by Election Uncertainty, Analyst Says

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Octavio Marenzi, founder and CEO of capital markets consultancy firm Opimas LLC, recently predicted that the current economic situation will shoot Bitcoin’s price “through the roof.”

Simultaneously, he suggested that the traditional financial markets will suffer as the COVID-19 fears grow.

Opimas CEO: Bitcoin Will Shoot Through The Roof

Appearing on RT’s Boom Bust, Marenzi was asked about the current state of the financial world and his prediction by the end of the year. He seemed somewhat cautious in providing precise numbers. Nevertheless, the CEO of Opimas outlined four factors that he believes drive the markets now.

According to Marenzi, those are the growing spread of the coronavirus, the stimulus deal proposed by the US government, the Federal Reserve’s policy, and the 2020 US presidential elections. He emphasized the importance of the upcoming vote as “people are starting to get nervous about that.”

The elections’ unknown developments could lead to a “messy” outcome, resulting in even more concerns among investors. Such circumstances could prompt severe price drops within traditional financial assets. However, Bitcoin might emerge as the winner.

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“There’s a substantial chance that it’s going to be a contested election and will be very, very messy indeed. We will see the markets overall trending down, while things like Bitcoin shooting through the roof.”

Opimas CEO Octavio Marenzi
Opimas CEO Octavio Marenzi. Source: CNBC

COVID-19 Second Wave To Damage The Markets?

Once reports started emerging in early 2020 that a new virus coming from China was infecting people, the financial world took a beating. The worst came in mid-March during the so-called liquidity crisis, which saw massive price slumps among all assets.

The markets have mostly recovered since then, but the COVID-19 pandemic hasn’t disappeared. In fact, it seems that the dreaded second wave has just begun to develop. The number of confirmed cases grew above 40 million on Monday.

Several countries, mostly in Western Europe, have brought back some of the strict restrictions. Those include even full lockdowns.

Apart from health concerns, this also raises worries among investors. Bitcoin was not exempt from the first price drops, as it plummeted by over 50% in a day.

However, BTC is among the best-performing assets on a yearly-scale, with its 65% increase. Should Marenzi’s words materialize, the primary cryptocurrency could see even further long-term price appreciation.

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Source: https://cryptopotato.com/bitcoin-price-will-skyrocket-as-markets-riddled-by-election-uncertainty-analyst-says/

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