Bitcoin Just Tapped $13,000 as Buyers Continue to Rush In (www.blockcast.cc)

It’s been quite the past few days for the Bitcoin price. After trading as low as $11,200 last week, the cryptocurrency has rocketed higher. BTC now trades for $12,940 as of this article’s writing, just shy of the $13,000 daily highs it reached just hours ago.

Source of BTC's price action over the past few days. Chart from TradingView.com

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Taps $13,000

Bitcoin just tapped $13,000 as buying pressure continues to erupt across the industry. Analysts think that Bitcoin is poised to squeeze higher despite already gaining almost 9% in the past day’s trading session.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Analysts note that Bitcoin’s funding rates on leading futures markets are currently negative to barely positive. This suggests that the cryptocurrency has room to squeeze higher as there remain short holders.

“The other times that BTC tried to break $12k, funding and premium were positive. They are neutral/negative now. So yeah, this time is different.”

Image Courtesy of il Capo of Crypto. Source: BTCUSD on TradingView.

Fundamental trends are also bullish as the U.S. continues to push towards another fiscal stimulus bill. Analysts say that closure on this bill will push Bitcoin higher as it will mark a further injection of capital into the economy.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

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Bitcoin Just Tapped $13,000 as Buyers Continue to Rush In

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The new regulations continue to exert force, the most severe freezing card tide in the OTC industry hits (www.blockcast.cc)

01

The current situation and reasons of the new round of “freezing card tide”

Since September, a new wave of “freezing cards” once again hit the currency circle. Not only did many readers report to reporters that bank cards participating in OTC transactions were frozen, but also a large number of investors on Weibo and other social platforms talked about similar situations. “Many people I know around have frozen cards, and transactions as large as hundreds of thousands to as low as 2,000 yuan have frozen cards.” Xue Xu (a pseudonym), a cryptocurrency investor who was frozen this time, told reporters .

Although the phenomenon of freezing cards is not uncommon in the cryptocurrency industry, in terms of coverage and extent, the freezing card tide is more violent than the past few times, and even the phenomenon of users’ subway cards being frozen together, and many more Users reported that they could not reopen accounts in mainstream banks, which caused a lot of inconvenience to life.

At the same time, the depth of the OTC platforms of major exchanges has also decreased significantly. The unit price gap between the USDT buying area and the selling area often has a price difference of more than 2 points. The OKEx platform also has a maximum price difference of 5 points. This phenomenon reflects OTC merchants. Both the number and activity of are declining sharply.

Another obvious sign is that most of the pending orders on the OTC platforms of most major exchanges no longer support Alipay transactions and can only be traded through bank cards. A person in charge of an OTC merchant told reporters that the reason is that the Alipay account has been “abolished” in three days recently, indicating that third-party payment channels are likely to be carrying out anti-money laundering operations that are no less powerful than bank card channels.

The relevant person in charge of Huobi also told reporters that a large number of users have recently reported that bank cards used for OTC transactions have been frozen, but in fact, it is not only the cryptocurrency industry, but also related information in many fields such as foreign trade and finance. It can be seen from some social media information that there are indeed a large number of people in the foreign trade industry complaining that bank cards have been frozen, and some articles have spread widely.

The problem reflected by this phenomenon is that the large-scale freezing of cards is not aimed at the cryptocurrency OTC field, but the domestic police has strengthened the anti-money laundering work, and the OTC transaction field will inevitably be affected.

According to reporters’ interviews with people in various industries and sorting out online data, the reasons for this large-scale freezing of cards can be roughly summarized into two points.

First, domestic telecommunications fraud, killing pigs, pyramid schemes and other scams continue to occur frequently. A large amount of funds are defrauded from ordinary people. Coupled with long-term active overseas gambling platforms, there is an increasing demand for money laundering. As a more suitable money laundering medium, cryptocurrency has become the preferred tool for many scammers or gambling platforms to transfer funds and launder money. Some criminal groups also cooperate with cryptocurrency OTC merchants to launder money. This year, many well-known OTC merchants have been investigated by the police. Recently, many related crackdowns have been publicly reported.

According to Hebei News Network, on September 3, Hebei Cangzhou police successfully detected a large telecom network fraud case, arrested Zhu Mouhui and other 12 criminal suspects, and seized 3.95 million yuan of stolen money on the spot. Upon questioning, members of the criminal gang confessed to the fact that since 2020, they have helped overseas electronic fraud gangs to split and transfer funds to obtain benefits after “whitewashing” on virtual currency trading platforms such as OKEX and Huobi.

According to reports from the payment industry, the People’s Court of Yongqiao District, Suzhou City recently heard the suspected pyramid scheme of the LON project. The project used methods such as investing LON currency rebates and developing member rebates to attract registered investment from people from all over the world online and offline, and a total of 13,251 members were developed. Defrauded investment funds of more than 50 million yuan. In the process of handling stolen money, the principal criminals and others, in order to avoid detection by domestic regulatory authorities, convert the investment and rebate money into virtual currencies such as Litecoin through Huobi, in order to achieve the purpose of money laundering.

According to a report from the Beijing News on September 24, Liao Jinrong, director of the International Cooperation Bureau of the Ministry of Public Security, said at the 9th China Payment and Settlement Forum that preliminary statistics have exceeded one trillion yuan in gambling funds flowing out of China each year, and some gambling gangs used virtual currency to collect The transfer of gambling funds has brought great challenges to the crackdown.

Second, the relevant state departments have continuously increased their anti-money laundering efforts and issued more stringent guidance documents, and the relevant regulatory policies of major banks have become more stringent. OTC industry veteran Fu Mo (anonymous) told reporters that the freeze card wave is likely to be related to the “Decision of the Ministry of Public Security on Amending the “Procedural Provisions for the Handling of Criminal Cases by Public Security Organs” that was reviewed and approved in early July this year. There are 141 amendments to the rules and regulations, many of which involve the determination of case jurisdiction.

According to reporters’ inquiries, with regard to crimes committed against or using computer networks, the new regulations have added victims to the public security authorities on the basis of identifying the location of the site creator or administrator and the location of the computer information system used by criminals and victims. The public security organs at the location at the time of the infringement and the place where the victim’s property suffered damage may have jurisdiction.

Since today’s telecommunication fraud cases often involve people from all over the country, this adjustment is equivalent to giving the public security organs in most parts of the country the power to exercise jurisdiction over related fraud cases, instead of being limited to a handful of areas where the public security organs have jurisdiction.

According to the existing regulations, as long as the public security organ at or above the county level approves it, the public security organ can prepare a notice of assistance in freezing property and notify financial institutions and other units to implement it. Considering that the public security organs in different regions have subtle differences in their understanding of the legal rules and case rules, as well as the degree of emphasis and work energy, the aforementioned adjustments will easily lead to a sharp increase in the phenomenon of freezing cards.

At the same time, the aforementioned amendment decision came into effect on September 1 this year. This time point is also in line with the trend of high incidence of freezing cards since September this year.

It is foreseeable that with the further tightening of relevant regulatory policies, the freezing card phenomenon in cryptocurrency OTC transactions will become the norm in the industry for a long time. Therefore, it is especially necessary for most cryptocurrency OTC traders to understand more preventive measures for frozen cards and how to deal with the phenomenon of frozen cards.

02

How to deal with the frozen card incident

To deal with possible frozen cards, the most important thing for users is to learn to prevent them and reduce the risks in OTC transactions as much as possible through some techniques.

Based on relevant interviews and network information, OTC transactions usually have the following points of attention: find trusted merchants to establish fixed deposit and withdrawal channels, take safety as the core consideration, and do not need to pursue the best price every time; maintain sufficient legal currency cash flow , Reduce the frequency of OTC transactions; use cards of small and medium banks or local banks for transactions; use unusual bank cards for transactions, reducing the inconvenience caused by bank card freezing.

It is understood that there are usually two situations when bank cards are frozen. One is bank freezing, which is also called stop payment by some industry professionals. That is, bank cards can only receive payments but not make payments. Generally, the bank’s risk control system is triggered by the user’s transaction behavior. , The bank will freeze on its own. If the user’s funds do not involve illegal funds, this situation will usually be automatically unfrozen after three days;

The other is judicial freezing. Generally, the public security organ freezes the bank cards that have fund transactions with the parties involved in the case, usually for half a year or one year, and unfreeze after the case is finished. But Xue Xu told reporters that there are many cases around him that have not been thawed for more than a year, which may mean permanent freezing of the card.

Regarding user response measures, Fu Mo pointed out to reporters that if a user encounters a bank card being frozen after OTC transactions, he can wait about three days to determine the nature of the frozen card. If it has not been unfrozen after three days, he needs to find the bank and the public security agency to find out the situation.

Guo Yatao, head of the chain law lawyer team, told reporters that users should find out the reason why the bank has understood the frozen card and the investigative agency that applied for the frozen card in the first time, try to get in touch with the investigative agency in time, explain the whole story, provide corresponding materials, if the investigative agency If it is necessary for the investor to go to the local area to cooperate with the investigation, it is recommended to be accompanied by someone or directly seek professional legal assistance.

“For those who have provided sufficient supporting materials and still cannot be unfrozen, or if the case-handling personnel are found to have violated the rules during the communication process (for example, it has been verified that the money involved in the case is not related to the case but is not unfrozen), you can appeal or complain in accordance with the regulations. According to the law, the public security agency must deal with the matter within the statutory time limit,” said Guo Yatao.

Xue Xu also described his contacts with the police in detail. “The criminal investigation teams in Shanghai and Inner Mongolia explained the freezing of the cards in writing on the grounds that they were fraudulent, and then asked me to provide transaction order records and income statements. I’m consulting a lawyer to see how to appeal,” Xue Xu said.

However, the relevant person in charge of Huobi told reporters that according to user feedback they received, most of the bank cards in the card freezing tide were only frozen for three days, and they were automatically unblocked after three days.

In the cryptocurrency OTC transaction, the exchange, as the platform party, also plays an important role in the frozen card incident, and even needs to bear certain responsibilities. Many interviewed users have complained that the platform party does not strictly review the qualifications of OTC merchants, resulting in a lot of black money. Pour into the OTC market.

To this end, reporters interviewed mainstream exchanges such as Huobi and Binance. They all stated that they will further improve the qualification review mechanism of OTC merchants in the future, and at the same time strengthen the construction of transaction risk control systems and user safety education.

At the same time, Huobi also explained in detail how the platform handles user complaints about frozen cards. “We usually guide users to understand the detailed information of frozen cards, such as the freezing period, freezing agencies, and their contact information. If necessary, follow-up. If you cooperate, Huobi will let users contact the police, and then the police will contact Huobi to cooperate.”

The relevant person in charge of Binance further told reporters that after the police issue a transfer order, relevant departments of Binance will cooperate with the police to give relevant transaction information to help users unfreeze bank cards as quickly as possible. Throughout the Q3 quarter, Binance’s fiat currency department assisted the police in investigating dozens of cases, including many fraud cases involving hundreds of millions of dollars.

In addition, industry anti-money laundering standards are also advancing. According to Sina News, the Blockchain Industry Application Anti-Money Laundering Standards Seminar was held in Beijing on September 22. The conference discussed the basic anti-money laundering technology security code of conduct for blockchain industry applications or platforms, and the “Blockchain Industry Application The content of “General Requirements for Anti-Money Laundering” may also help to further standardize the OTC market.

Cryptocurrency trading is a gray area of ​​legal supervision, and various asset security issues will inevitably occur. This depends on the joint cooperation of supervisors, exchanges, OTC merchants and other parties. A good mechanism is used to minimize similar incidents and promote industry cooperation. Planned development.

Chainlink Whales Continue Accumulating Despite Signs of Technical Weakness (www.blockcast.cc)

Chainlink’s price action throughout the past few days and weeks has done little to provide investors with insight into its near-term outlook, as it has mainly been consolidating between lows of $7.50 and highs of $11.00.

The cryptocurrency has seen some notable momentum throughout the past 24-hours, but it is struggling to push higher as it begins approaching the heavy resistance that sits at $11.00.

It has been rejected here on multiple occasions over the past month, with each one catalyzing far-reaching selloffs that damage its market structure.

Although analysts are torn as to whether or not LINK’s ongoing upswing will be different than those seen in recent weeks, one on-chain trend is undeniably bullish for the cryptocurrency’s outlook.

One analytics firm explained in a recent tweet that data shows whales have been accumulating massive amounts of Chainlink in recent times.

This shows that large investors are confident in its near-term outlook and may also continue providing the token with some significant buying pressure to lift it higher.

Chainlink Nears Key Resistance Level as Momentum Stalls

In the time following Chainlink’s plunge to its recent lows of $7.50, the cryptocurrency has been rapidly climbing higher, reaching monthly highs of just under $11.00 earlier today.

At the time of writing, Chainlink is trading down slightly from these highs at its current price of $10.89. This is around where it has been trading throughout the past couple of days.

So far, each visit to $11.000 over the past month has catalyzed strong rejections. Unless Bitcoin makes a serious push higher that carries the entire market with it, it is unlikely that this will change anytime soon.

On-Chain Metrics Show Whales are Rapidly Accumulating LINK 

One analytics firm explained in a recent tweet that data points to a strong accumulation trend amongst large LINK wallets.

They note that this indicates large buyers are still confident in Chainlink’s outlook, despite the 50% decline from its recent highs.

“The top LINK non-exchange whales continue their gradual accumulation pattern. As seen on our chart, the top 100 non-addresses held 735.64M a year ago. Now up to 771.15M, the ~5% increase is indicative of clear whale confidence in the asset’s longevity.”

Image Courtesy of Santiment.

This trend suggests that serious upside could be in store for LINK, but it first must shatter the selling pressure that exists at $11.00.

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Uniswap (UNI) Likely to “Continue South” After Rejecting at Key Resistance (www.blockcast.cc)

Uniswap’s UNI token has seen a serious selloff throughout the past few hours, causing its price to revisit a crucial support level that previously stopped it from seeing any significant downside.

The cryptocurrency is now just a hair away from its lows of $3.50 that were set following its rally to highs of $8.50.

The intensity of the decline it has seen since peaking has come about due to a combination of fading hype, weakness across the aggregated market, and a lack of imminent catalysts to boost its price higher.

Many investors are waiting for more insights into when Uniswap V3 will be released, or until a proposal is passed that distributes trading fees to users.

That being said, one analyst is now looking for UNI’s price to “continue south” in the near-term before it is able to find any sustainable upwards momentum.

He notes that it could be quite some time before it is able to confirm a long-term bottom, with its price action being largely determined by the aggregated market.

Uniswap’s UNI Sees Dwindling Strength as It Remains Below $4.00

At the time of writing, Uniswap’s governance token is trading down just under 6% at its current price of $3.69.

This marks a notable decline from its daily highs of $4.10 that were tapped for a brief moment earlier today.

The rejection at this level does seem to have confirmed it as resistance. If it continues trading well below this level, it could be positioned to see further downside.

UNI’s price closely tracks the overall DeFi sector, which means that its fate may not be in its own hands until there are some external catalysts that help drive it higher.

Analyst: UNI Poised to Plunge Following Rejection at $4.10

One analyst explained in a recent tweet that he believes Uniswap’s UNI is positioned to see further downside in the days ahead as the entire market continues trending lower.

He notes that it could be quite some time before a clear bottom is formed, but does point to the $3.39 level as its next support.

“Uniswap: Couldn’t break that $4.10 area. Continuation south, just like the majority of the markets. Would be waiting for clear confirmation of bottom structure and/or trend reversal before taking heavy longs. Patience is key in trading.”

Image Courtesy of Crypto Michael. Chart from TradingView.

Where Uniswap’s token trends next will likely depend on the aggregated market until it can be driven by external catalysts.

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BitMex denies CFTC and DoJ allegations, says trading will continue (www.blockcast.cc)

In a blog post published Thursday afternoon, Bitmex lashed out at charges that the Commodity Futures Trading Commission and Department of Justice filed against the exchange and its management earlier today.

Bitmex’s statement claimed that “From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”

What exactly “applicable U.S. laws” are will likely be central to the case. Bitmex has long maintained that it does not serve customers in the U.S., though others before the CFTC and DOJ have argued that this a lie. The CFTC’s case rests on Bitmex’s failure to register with the commission as a derivatives exchange in the U.S. 

The DOJ, on the other hand, argues that Bitmex deliberately failed to implement effective know-your-customer and anti-money laundering programs, in violation of the Bank Secrecy Act. Both agencies assert that Bitmex had years of warning that their operations were illegal.

In its post denying the charges, Bitmex also assured users that trading will continue as usual. This is despite the fact that the DOJ arrested at least one of Bitmex’s founders, Samuel Reed, earlier today. 

Tune in for Cointelegraph’s livestream on the Bitmex case starting tonight at 5:00 PM EST/21:00 UTC.

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Whales continue to buy Bitcoin despite uncertainty in the crypto market (www.blockcast.cc)

• Approximately seven new BTC whales have joined the network in the past two weeks.
• The spike in buying pressure may soon be reflected in prices as Bitcoin holds above the critical support level
• If so, the next areas of resistance to watch are the $11,200 and $12,000.

Bitcoin (BTC) continues consolidating within a narrow trading range without providing a clear path for where it is headed next. Despite the uncertainty around it, different on-chain metrics suggest that large investors are choosing to buy Bitcoin evermore increasing their positions.

BTC whales “buy the dip”

After failing to turn the $12,000 resistance level into support, the flagship cryptocurrency went through a steep correction that took place at the beginning of the month. Bitcoin dropped by nearly 19% from a high of $12,086 to a low $9,800. The downward price action caused a state of commotion among market participants, while large investors took advantage of it to add more tokens to their holdings. 

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Indeed, Santiment’s holder distribution chart shows that as prices plummeted, the number of addresses with billions of dollars in Bitcoin, known within the crypto community as “whales,” was increasing exponentially. The behavioral analytics firm recorded a 6.74% spike in the number of addresses holding 10,000 to 100,000 BTC. Approximately seven new whales joined the network over the past two weeks. 

Such an upswing in the number of BTC whales may seem insignificant at first glimpse. But when considering these large investors hold between $108 million and $1.08 billion in BTC, the upturn can translate into billions of dollars worth of buy orders.

If the buying spree by these whales continues, Bitcoin may have the ability to regain some of the lost ground throughout September and finally move past the $12,000 mark. 

Technical analysis: Holding on top of critical support

The bullish thesis holds when looking at BTC’s 3-day chart. Within this timeframe, the pioneer cryptocurrency seems to be trading on top of a critical support barrier. Based on historical data, the 50-three-day moving average has been able to contain falling prices at bay during the bull market of 2010-2011, 2012-2014, and 2015-2018. 

If history repeats itself, Bitcoin may be about to resume the uptrend following the recent rejection from this hurdle. But first, it would have to close above mid-September’s high of $11,200 and turn the $12,000 resistance into support. Once these barriers have been broken, it is reasonable to assume that BTC would likely take aim at June 2019’s high of nearly $14,000.

Chart by https://www.tradingview.com/x/S4Nh8aUg/

It is worth mentioning that a candlestick close below the 50-three-day moving average, which is currently hovering around $10,100, could jeopardize the bullish outlook. If this were to happen, the bellwether cryptocurrency may plummet towards the 100-three-day moving average. This support level sits around $9,150. 

On the cusp of a major price movement

Data shows that over the past few hours an important number of idle BTC coins have exchanged hands. Usually, when old tokens are transferred between different addresses, a major price movement tends to follow. Given the increasing buying pressure behind Bitcoin, this could be taken as a positive sign. 

Nevertheless, it is recommended to sit on the sidelines until a clear break of the resistance or support levels previously mentioned. Now that Bitcoin seems to be on the cusp of its next bullish cycle, having cash ready to deploy is a must.

After Uniswap, can the lending giant Aave continue the mining boom? (www.blockcast.cc)

Aave’s locked position in the DeFi market is nearly 1.3 billion U.S. dollars, ranking second, second only to Uniswap. Following Uniswap, Aave is also expected to start liquid mining. It is worth seeing whether liquid mining can re-energize the circle boom.

Last week, after Uniswap issued coins and conducted a huge airdrop, it once again aroused the market’s attention to liquidity mining.

After Uniswap, Aave is about to start its liquidity mining.

Aave is a lending giant on Ethereum, with a lock-up volume of more than $1 billion, ranking second in the DeFi market, and its market value has risen all the way from 500 to the current top 30.

Everyone in the market is also highly looking forward to Aave’s liquidity mining, and whether it can take over Uniswap to bring a new round of enthusiasm for mining?

“After Uniswap, lending giant Aave will start liquidity mining”

Recently, the liquidity mining boom that has lasted for nearly three months seems to be weak. Although there are more and more new mines in the market, the life cycle of new projects is getting shorter.

Until Uniswap announced the issuance of coins and airdropped 150 million UNI tokens to early participants, users who meet the requirements can get at least 400 UNI, worth more than 1,000 US dollars. For a while, the entire cryptocurrency industry was boiling over for this, and the heat of liquid mining swept across again.

As the largest DEX on Ethereum, Uniswap is also an indispensable part of many DeFi projects in liquid mining. The amount of locked-up funds and the number of active users are in the leading position, so its own liquidity mining is bound to be To a certain extent affect the market’s heat.

Following Uniswap, another giant project in the DeFi market, Aave, is also expected to start liquidity mining.

Aave is a decentralized lending project on Ethereum issued in 2017, formerly known as ETHLend, and LEND is its governance token.

It can be expected that in the near future, the Aave community will carry out a token migration. At that time, tokens will be migrated at a conversion ratio of 100 LEND: 1 AAVE.

The total number of AAVE tokens is 16 million, of which 13 million will be exchanged by LEND holders, and the additional 3 million will be used for the development of the Aave ecosystem, part of it will be used for ecological incentives, and some will be used for security incentives. Obtained through mining.

This means that after the token migration, Aave will also start liquidity mining. Although the mining rules have not yet been released, it is still a giant project after all, and user expectations are naturally high.

At present, Aave’s locked position in the DeFi market is nearly 1.3 billion US dollars, ranking second, second only to Uniswap. So everyone is also speculating whether Aave will have an impact on the entire DeFi market after starting liquid mining.

“Aave’s advanced path, from a hundredfold decline to a hundredfold increase”

Speaking of Aave or LEND, many friends have the impression of a hundred times currency. At this time, the old leeks were holding a handful of bitter tears: “Your Hundred Times currency is also my Hundred Times currency, but unfortunately I have fallen a hundred times.”

Yes, today’s DeFi giants have also experienced the darkest moment, and the price of the currency has fallen by as much as 100 times.

In 2018, the entire cryptocurrency market turned from bull to bear. The high point of LEND in January of that year was 0.37 USD, and when it looked again in December, the lowest had fallen to 0.0067 USD.

At that time, Aave’s name was still ETHLend, a decentralized peer-to-peer lending platform, but the operating data was relatively bleak. Because the transaction efficiency of peer-to-peer order matching was low, the market space of ETHLend was very limited.

After realizing that peer-to-peer order matching lending would not work, the entire team learned from the pain and changed the development direction of the entire project, not only renamed Aave, but also shifted its core business from peer-to-peer lending to a decentralized lending pool-based approach.

The logic of the lending pool is roughly as follows: users (depositors) deposit encrypted assets in the lending pool to provide liquidity for them, and can obtain atoken voucher at a ratio of 1:1, that is, deposit 200 ETH, which can be obtained 200aETH, when the user returns the atoken to the loan pool, he can redeem his own assets and earn interest on the deposit; the borrower can deposit multiple mortgage assets into the loan pool to borrow other assets. If the borrowed tokens do not reach the liquidation line, the loan and interest can be repaid. If the liquidation line is reached, part of the mortgage assets will be liquidated.

A very clever point in the design of the Aave loan pool is that when users borrow, they need to pay a certain percentage of borrowing interest and handling fees. Among them, part of the processing fee is to buy back and destroy the LEND tokens in circulation, which causes the LEND token model to be deflationary, and the number of tokens will decrease.

Currently, the Aave lending pool has supported 20 cryptocurrency assets including DAI, USDC, ETH, BAT, KNC, YFI, etc.

In addition to the decentralized lending pool, the Aave team has also launched flash loans and credit loans.

Flash Loahs is a pioneering product in the development of Aave. Most users are very unfamiliar with Lightning Loan, because its target users are developers of financial products and are not suitable for ordinary users.

Lightning loans are also called unsecured loans. Users can successfully arbitrage as long as they complete borrowing, repayment and interest in one block at the same time. In other words, the user needs to complete lending funds, returning all funds, and paying interest within 13 seconds (the average block time of Ethereum is about 13 seconds), and the transaction is considered successful. If something goes wrong, this transaction will be invalidated.

The emergence of flash loans has given a lot of imagination for lending, allowing financial product developers to use flash loans to create arbitrage tools or refinancing tools to build financial products without capital. To some extent, this lowers the development threshold, and ultimately benefits terminal users.

In addition to flash loans, another innovative product of Aave is credit loans. Liquidity providers can authorize credit lines (atoken vouchers) to people they trust, or they can authorize credit lines to a specific smart contract to earn additional handling fees.

Previously, Aave issued the first unsecured credit loan to the centralized exchange DeversiFi through the form of on-chain smart contracts + off-chain legal contracts. This credit loan method can improve the efficiency of the use of liquid funds, and the combination of DeFi + entity companies is also considered by the community to be an important step in exploring DeFi out of the circle.

From the Aave loan agreement, the decentralized loan market, flash loans, to credit loans, Aave has been exploring more possibilities in the DeFi market. The price of the currency has not disappointed, and it has risen all the way, from 0.064 US dollars to 0.84 US dollars, an increase of more than a hundred times.

And Aave has not only been recognized by the market, but also obtained an electronic money institution license issued by the British Financial Conduct Authority FCA, which means that Aave can issue digital cash alternatives and provide payment services in compliance.

Prior to this, only two companies in the cryptocurrency industry have obtained FCA’s license certification. The world’s largest exchange Coinbase and the British financial technology bank Revolut, you can imagine how high their gold content is.

“Can Aave’s liquidity mining create a boom?”

As one of the largest projects in the DeFi field, Aave will not know whether its liquidity mining can promote the popularity of DeFi.

In view of the previous experience of Curve issuing coins, some users expressed concern: Curve was so beautiful when it first issued coins. The market value of Curve reached more than US$90 billion when it was launched, which directly exceeded the market value of Ethereum. Isn’t it still a feather? Will Aave finish as dismal as Curve?

What will happen to Aave’s liquidity mining? The market will give us the answer by then. To be sure, Aave will not be like Curve.

Because Aave’s token was launched as early as 2017, it has already experienced a round of bull and bear market baptism. Even if liquidity mining is subsequently started, only a small part of tokens will be issued, which is far less than Curve in terms of the degree of bubble.

As the head project of the loan agreement, Aave has locked up close to US$1.3 billion, and its core business has formed scale and is stable. It also needs to consider the specific market environment when it starts liquidity mining.

In addition, it is understood that only the additional 3 million tokens in Aave are used for mining, accounting for only 18.75% of the total. Some unsuspecting users also asked, Aave has developed so well, do you still need to take advantage of liquid mining?

In the initial information disclosure of the team, the additional tokens were issued because the tokens used to incentivize the development of the ecosystem had been exhausted, and the team considered the need to issue new tokens. The additional tokens will be used. Make safety guarantee incentives and ecosystem incentives.

The security guarantee incentive is that the user will use the mortgage AAVE as a guarantee to prevent insolvency problems that may occur during the borrowing process. The ecosystem incentives are similar to the current mining projects in the market. Users earn mining rewards by making a market in Balancer, or borrowing or lending from the Aave loan pool.

Therefore, there is a certain difference between Aave’s mining and mining projects on the market. The consensus now is that everyone thinks DeFi will collapse, but they don’t know when.

Judging from the popularity of Uniswap, it seems safe in a short period of time. However, if the market is already in danger when Aave starts liquid mining, even if Aave is the leader of DeFi, it will be difficult to shake the market on its own.

After Uniswap, can the lending giant Aave continue the mining boom? (www.blockcast.cc)

Editor’s note:

Author: Gisele

Last week, after Uniswap issued coins and conducted a huge airdrop, it once again aroused the market’s attention to liquidity mining.

After Uniswap, Aave is about to start its liquidity mining.

Aave is a lending giant on Ethereum, with a lock-up volume of more than $1 billion, ranking second in the DeFi market, and its market value has risen all the way from 500 to the current top 30.

Everyone in the market is also highly looking forward to Aave’s liquidity mining, and whether it can take over Uniswap to bring a new round of enthusiasm for mining?

“After Uniswap, lending giant Aave will start liquidity mining ”

Recently, the liquidity mining boom that has lasted for nearly three months seems to be weak. Although there are more and more new mines in the market, the life cycle of new projects is getting shorter.

Until Uniswap announced the issuance of coins and airdropped 150 million UNI tokens to early participants, users who meet the requirements can get at least 400 UNI, worth more than 1,000 US dollars. For a while, the entire cryptocurrency industry was boiling over for this, and the heat of liquid mining swept across again.

As the largest DEX on Ethereum, Uniswap is also an indispensable part of many DeFi projects in liquid mining. The amount of locked-up funds and the number of active users are in the leading position, so its own liquidity mining is bound to be To a certain extent affect the market’s heat.

Following Uniswap, another giant project in the DeFi market, Aave, is also expected to start liquidity mining.

Aave is a decentralized lending project on Ethereum issued in 2017, formerly known as ETHLend, and LEND is its governance token.

It can be expected that in the near future, the Aave community will carry out a token migration. At that time, the token migration will be carried out at a conversion ratio of 100 LEND:1 AAVE.

The total number of AAVE tokens is 16 million, of which 13 million will be exchanged by LEND holders, and the additional 3 million will be used for the development of the Aave ecosystem, part of it will be used for ecological incentives, and some will be used for security incentives. Obtained through mining.

This means that after the token migration, Aave will also start liquidity mining. Although the mining rules have not yet been released, it is still a giant project after all, and user expectations are naturally high.

At present, Aave’s locked position in the DeFi market is nearly 1.3 billion US dollars, ranking second, second only to Uniswap. So everyone is also speculating whether Aave will have an impact on the entire DeFi market after starting liquid mining.

” Aave’s advanced path, from a hundredfold decline to a hundredfold increase ”

Speaking of Aave or LEND, many friends have the impression of a hundred times currency. At this time, the old leeks were holding a handful of bitter tears: “Your Hundred Times currency is also my Hundred Times currency, but unfortunately I have fallen a hundred times.”

Yes, today’s DeFi giants have also experienced the darkest moment, and the price of the currency has fallen by as much as 100 times.

In 2018, the entire cryptocurrency market turned from bull to bear. The high point of LEND in January of that year was 0.37 USD, and when it looked again in December, the lowest had fallen to 0.0067 USD.

At that time, Aave’s name was still ETHLend, a decentralized peer-to-peer lending platform, but the operating data was relatively bleak. Because the transaction efficiency of peer-to-peer order matching was low, the market space of ETHLend was very limited.

After realizing that peer-to-peer order matching lending would not work, the entire team learned from the pain and changed the development direction of the entire project. Not only was it renamed Aave, but it also shifted its core business from peer-to-peer lending to a decentralized lending pool.

The logic of the lending pool is roughly as follows: users (depositors) deposit encrypted assets in the lending pool to provide liquidity for them, and can obtain atoken voucher at a ratio of 1:1, that is, deposit 200 ETH, which can be obtained 200aETH, when the user returns the atoken to the loan pool, he can redeem his own assets and earn interest on the deposit; the borrower can deposit multiple mortgage assets into the loan pool to borrow other assets. If the borrowed tokens do not reach the liquidation line, the loan and interest can be repaid. If the liquidation line is reached, part of the mortgage assets will be liquidated.

A very clever point in the design of the Aave loan pool is that when users borrow, they need to pay a certain percentage of borrowing interest and handling fees. Among them, part of the processing fee is to buy back and destroy the LEND tokens in circulation, which causes the LEND token model to be deflationary, and the number of tokens will decrease.

Aave lending market

Currently, the Aave lending pool has supported 20 cryptocurrency assets including DAI, USDC, ETH, BAT, KNC, YFI, etc.

In addition to the decentralized lending pool, the Aave team has also launched flash loans and credit loans.

Flash Loahs is a pioneering product in the development of Aave. Most users are very unfamiliar with Lightning Loan, because its target users are developers of financial products and are not suitable for ordinary users.

Lightning loans are also called unsecured loans. Users can successfully arbitrage as long as they complete borrowing, repayment and interest in one block at the same time. In other words, the user needs to complete lending funds, returning all funds, and paying interest within 13 seconds (the average block time of Ethereum is about 13 seconds), and the transaction is considered successful. If something goes wrong, this transaction will be invalidated.

Lightning loan use cases

The emergence of flash loans has given a lot of imagination for lending, allowing financial product developers to use flash loans to create arbitrage tools or refinancing tools to build financial products without capital. To some extent, this lowers the development threshold, and ultimately benefits terminal users.

In addition to flash loans, another innovative product of Aave is credit loans. Liquidity providers can authorize credit lines (atoken vouchers) to people they trust, or they can authorize credit lines to a specific smart contract to earn additional handling fees.

Previously, Aave issued the first unsecured credit loan to the centralized exchange DeversiFi through the form of on-chain smart contracts + off-chain legal contracts. This credit loan method can improve the efficiency of the use of liquid funds, and the combination of DeFi + entity companies is also considered by the community to be an important step in exploring DeFi out of the circle.

From the Aave loan agreement, the decentralized loan market, flash loans, to credit loans, Aave has been exploring more possibilities in the DeFi market. The price of the currency has not disappointed, and it has risen all the way, from 0.064 US dollars to 0.84 US dollars, an increase of more than a hundred times.

And Aave has not only been recognized by the market, but also obtained the electronic money institution license issued by the British Financial Conduct Authority FCA , which means that Aave can issue digital cash alternatives and provide payment services in compliance.

Prior to this, only two companies in the cryptocurrency industry have obtained FCA’s license certification. The world’s largest exchange Coinbase and the British financial technology bank Revolut, you can imagine how high their gold content is.

” Can Aave’s liquidity mining create a boom? ”

As one of the largest projects in the DeFi field, Aave will not know whether its liquidity mining can promote the popularity of DeFi.

In view of the previous experience of Curve issuing coins, some users expressed concern: Curve was so beautiful when it first issued coins. The market value of Curve reached more than US$90 billion when it was launched, which directly exceeded the market value of Ethereum. Isn’t it still a feather? Will Aave finish as dismal as Curve?

What will happen to Aave’s liquidity mining? The market will give us the answer by then. To be sure, Aave will not be like Curve.

Because Aave’s token was launched as early as 2017, it has already experienced a round of bull and bear market baptism. Even if liquidity mining is subsequently started, only a small part of tokens will be issued, which is far less than Curve in terms of the degree of bubble.

As the head project of the loan agreement, Aave has locked up close to US$1.3 billion, and its core business has formed scale and is stable. It also needs to consider the specific market environment when it starts liquidity mining.

In addition, it is understood that only the additional 3 million tokens in Aave are used for mining, accounting for only 18.75% of the total. Some unsuspecting users also asked, Aave has developed so well, do you still need to take advantage of liquid mining?

In the initial information disclosure of the team, the additional tokens were issued because the tokens used to incentivize the development of the ecosystem had been exhausted, and the team considered the need to issue new tokens. The additional tokens will be used Make safety guarantee incentives and ecosystem incentives.

The security guarantee incentive is that the user will use the mortgage AAVE as a guarantee to prevent insolvency problems that may occur during the borrowing process. The ecosystem incentives are similar to the current mining projects in the market. Users earn mining rewards by making a market in Balancer, or borrowing or lending from the Aave loan pool.

Therefore, there is a certain difference between Aave’s mining and mining projects on the market. The consensus now is that everyone thinks DeFi will collapse, but they don’t know when.

Judging from the popularity of Uniswap, it seems safe in a short period of time. However, if the market is already in danger when Aave starts liquid mining, even if Aave is the leader of DeFi, it will be difficult to shake the market on its own.

The field of cryptocurrency will continue to expand: survey says 26% of institutional investors intend to increase their holdings of cryptocurrency (www.blockcast.cc)

Editor’s note:

Institutional investors such as pension funds, wealth management companies, and family offices believe that the cryptocurrency sector will continue to expand, and they plan to buy more.

A study from Evertas, a cryptocurrency insurance company, shows that more than 25% of surveyed institutional investors are planning to increase the number of their digital assets. In total, these institutional investors manage nearly $80 billion in assets.

Earlier, a survey by digital asset management company Grayscale also showed that institutional investors’ interest in the encryption field has recently increased, and the Evertas survey shows that this trend will accelerate further.

The company’s research shows that 26% of respondents believe that pension funds, family financial institutions, insurance companies and sovereign wealth funds will “significantly” increase their purchases of cryptocurrencies. Another 64% responded that they would only increase their purchases of cryptocurrency “slightly”.

Most people associate the market’s growing interest in digital assets with improvements in market regulatory infrastructure. 84% responded that the clearer the legislation, the more conservative investors will be attracted to join the field.

80% of respondents said that the cryptocurrency market is still relatively small compared to traditional financial sectors such as stocks and bonds. However, they expect that this market will flourish in the next 5 years by attracting more investment and increasing liquidity.

Despite the positive results of the survey, some institutional investors continue to express certain concerns about the cryptocurrency sector. Most interviewees said that they are most worried about the lack of insurance in the field of digital assets.

54% of respondents are “very concerned” about the working practices and compliance procedures of companies in the industry that provide services to institutional investors. Other issues related to them include “quality of custody services, availability and quality of trading platforms, and reporting facilities “.

J. Gdanski, founder of Evertas, said, “Our research shows that institutional investors are generally keen to increase investment in cryptocurrencies and crypto assets, but it is clear that there are still many issues with the infrastructure supporting these markets that cause them to worry.”

The US financial services giant Fidelity Investments previously published another report in which 36% of institutional investors own Bitcoin or other tokens.

Author Xiu Mu

The field of cryptocurrency will continue to expand: survey says 26% of institutional investors intend to increase their holdings of cryptocurrency (www.blockcast.cc)

Editor’s note:

Institutional investors such as pension funds, wealth management companies, and family offices believe that the cryptocurrency sector will continue to expand, and they plan to buy more.

A study from Evertas, a cryptocurrency insurance company, shows that more than 25% of surveyed institutional investors are planning to increase the number of their digital assets. In total, these institutional investors manage nearly $80 billion in assets.

Earlier, a survey by digital asset management company Grayscale also showed that institutional investors’ interest in the encryption field has recently increased, and the Evertas survey shows that this trend will accelerate further.

The company’s research shows that 26% of respondents believe that pension funds, family financial institutions, insurance companies and sovereign wealth funds will “significantly” increase their purchases of cryptocurrencies. Another 64% responded that they would only increase their purchases of cryptocurrency “slightly”.

Most people associate the market’s growing interest in digital assets with improvements in market regulatory infrastructure. 84% responded that the clearer the legislation, the more conservative investors will be attracted to join the field.

80% of respondents said that the cryptocurrency market is still relatively small compared to traditional financial sectors such as stocks and bonds. However, they expect that this market will flourish in the next 5 years by attracting more investment and increasing liquidity.

Despite the positive results of the survey, some institutional investors continue to express certain concerns about the cryptocurrency sector. Most interviewees said that they are most worried about the lack of insurance in the field of digital assets.

54% of respondents are “very concerned” about the working practices and compliance procedures of companies in the industry that provide services to institutional investors. Other issues related to them include “quality of custody services, availability and quality of trading platforms, and reporting facilities “.

J. Gdanski, founder of Evertas, said, “Our research shows that institutional investors are generally keen to increase investment in cryptocurrencies and crypto assets, but it is clear that there are still many issues with the infrastructure supporting these markets that cause them to worry.”

The US financial services giant Fidelity Investments previously published another report in which 36% of institutional investors own Bitcoin or other tokens.

Author Xiu Mu