HedgeTrade Weekly Insights

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    HedgeTrade Weekly Insights

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    Hey Traders,

    Hope you enjoy our weekly roundup of the hottest crypto and defi news and insights. 

    Top News

    • Square announced its $50 million investment in Bitcoin causing an immediate BTC price spike and sending crypto Twitter into a tailspin of renewed hopes and dreams.
    • BitMEX founders have stepped away from the management of the crypto and derivatives trading platform following CFTC charges filed against them for operating an unregistered exchange and violating KYC regulations.

    • Hong Kong Monetary Authority has picked ConsenSys to assist with cross border CBDC with Hong Kong and Thailand. First phase will see private sector banks and credit unions preparing systems for wallet KYC.

    • The Spadina testnet launch was off to a tough start last week, with some bugs causing difficulties for validator participation. Zinken, another later 2 Ethereum testnet, announced its upcoming testnet with Genesis block planned for October 12, 2020.

    • As US political maneuverings reach a fever pitch, CoinBase's head, Brian Armstrong, released a company statement moving focus away from politics and social activism and toward its crypto mission of building an open financial system. 

    • In response to Kucoin hackers commandeering roughly $281 million from the exchange's hot wallets, CEO Johnny Lyu released a list of wallet addresses that received the stolen funds. Thus far, $204 million in stolen crypto has been recovered.

    Market Recap

    Tough week for the majors with most top-25 coins in the red over the last 7 days. Exceptions were $XRP, $USDC and $DAI. Investors are bracing for volatility as the US administration hems and haws about stimulus in a politicized effort to win the upcoming election. Uncertainty around elections as well as POTUS's case of COVID-19 is also infusing volatility into world markets. Interestingly, bitcoin's volatility has been falling sharply as crypto diehards wait patiently for its decoupling from mainstream finance.


    DeFi Markets

    • For the most part, defi coins fell in line with other major markets, trending down with uncertainty being the flavor of the week. $DAI had the only 7-day increase out of the top-25 defi coins with a .26% price move. 
    • As defi markets contract after a summer similar to 2017, both Ethereum gas prices and congestion have seen a reprieve. 

    • Defi's biggest DEX saw their trading volumes decrease from $954 million on September 1st to its current volume of $224 million.

    • Eminence Finance, a project in the works by Yearn's founder, Andre Cronje, was exposed to a $15 million dollar hack, with the hacker returning $8 million to YFI thus far.

    The Week in Charts

    Voices

    "We already see centralized scarcity as valuable in fiat. We rely on central banks to prevent forgeries of cash and of the zeroes and ones of digital fiat. Why not use cryptography and decentralized consensus instead?" Ari Paul

     

    "We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey." Square's CFO, Amrita Ahuja

     

    Learning

     

    Meme of The Week

    Have a profitable week!

    -The HedgeTrade Team

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