Bitcoin (BTC) stock price corrects after a failed breakout (www.blockcast.cc)

• The largest Bitcoin exchanges and crypto wallets registered record-high combined downloads last month
• This could indicate that BTC is in the early stages of another bull market
• Bitcoin price corrected lower to trade just above $11,000, where a weekly support line sits

Bitcoin (BTC) price has been dragged lower to test weekly support near $11,000 after the buyers failed to close above the $12,000 handle last week. 

Fundamental analysis: A beginning of another bull market?

The largest Bitcoin exchanges and crypto wallet apps such as Coinbase, Blockchain Wallet, Binance, BRD and others registered record-high combined downloads last month, largely thanks to the fact that many institutional investors turned to BTC in the midst of unparalleled coronavirus stimulus spending. 

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This could indicate that BTC is “in the early stages of another bull market.” Apptopia, analytics services provider, conducted research that showed that the number of new installs of top 10 crypto wallet apps climbed by 81%, compared to the year-ago period.

“At the start of quarantine, we noticed an uptick in new installs for some of these apps, but didn’t think much of it because this market tends to be quite volatile anyway,” said Madeline Lenahan, Public Relations & Content Manager at Apptopia, noting that it “looks like the growth we saw was, in fact, real and lasting.”

The growth of BTC and crypto wallet downloads was mostly fueled by the coronavirus lockdowns and the rising popularity of bitcoin and digital currencies in emerging markets. Bitcoin trading volume at crypto exchanges recorded a new high thanks to the BTC price soar at the end of last month.

A part of the Bitcoin trading community compared the recent increase in the interest in BTC among institutional and retail investors with the Bitcoin’s 2017 rally that sent its price from below $1,000 to around $20,000 in less than 12 months. 

Technical analysis: Failure drags the price action lower

Following a move up at the end of July, Bitcoin (BTC/USD) didn’t manage to break above the $12,000 mark in August. Although the price action traded briefly above this resistance line, the buyers failed in forcing a close at these levels, which then facilitated a correction lower. 

Bitcoin price weekly chart (TradingView)

Bitcoin buyers are now hoping that a horizontal weekly support line around $11,000 will provide enough support. If this is not the case, we might see a pullback to $10,500 where a major horizontal support is located. 

Summary

An increase in download of crypto wallet apps and interest in BTC among institutional investors has resulted in a belief that Bitcoin might start another bullish run. In the meantime, Bitcoin price is trading just above $11,000, where a weekly support line sits. 

Bitcoin CME Price Gap, DeFi Surge. Polkadot Explosion, Tether Vs BTC & Bitcoin Stock To Flow Real? (www.blockcast.cc)

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🔴Stock Market Crash (Later This Year) Will Push Bitcoin OVER $50,000! | HUGE Bitcoin News (www.blockcast.cc)

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Major South Korean Chat App Bets Big on NFT-Based Stock Trading (www.blockcast.cc)

South Korea’s well-known chat application, Kakao, bolsters its presence in blockchain and crypto with its partnership with a non-fungible token-powered trading platform and its new crypto wallet Klip.

According to Hanguk Kyungjae, the trading company Angel League will receive support from Kakao’s Klip platform for its digital certificates based on NFTs.

Angel League allows groups of investors to jointly purchase the stocks of startups in the “pre-IPO” stage. The members, known as “lead angels,” are selected through a recruitment process to incorporate new people willing to sign a stock trading contract to operate on the platform.

The trading company will then issue membership confirmation on an NFT-based digital card through the Kakao’s Klip crypto wallet. It is permanently stored in the blockchain platform of the chat application, Klaytn. With the NFT-based digital card issued, members can then trade on the platform.

Jae-sun Han, CEO of Ground X, the chat app’s blockchain company affiliate, explained the decision behind joining the NFTs’ support:

“By making it possible to verify the membership of the Angel League through the NFT digital card of Klip, we have reduced operational hassle and strengthened the convenience of members. It will also expand the way to transfer ownership of the company through Klaytn. Together with Ground X, we will discover several examples of NFTs that can promote financial innovation.”

In June, Kakao listed its Klaytn blockchain-issued Klay token via a local cryptocurrency exchange on June 5. This news follows their launch of a new crypto wallet feature in KakaoTalk earlier the week.

Klay’s listing announcement came after the South Korean company said that its new crypto wallet function surpassed 100,000 users in less than a day in its chat app, KakaoTalk. The feature went live on June 3.

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Image Credit: Refer to Source
Author: Refer to Source Cointelegraph By Felipe Erazo

DOJ Reviewing Stock Trades Made by Lawmakers Before Covid-19 Market Crash: Report (www.blockcast.cc)

The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have started to review the sale of stock by lawmakers like Senator Richard Burr of North Carolina before the markets crashed over concerns about covid-19, according to a new report from CNN. Burr and other Republican senators received a closed-door briefing about the threat of covid-19 on January 24 and some started to unload millions in stock, long before most Americans understood that the coronavirus pandemic could devastate the U.S. economy.

The FBI has reached out to Burr, chair of the powerful Senate Intelligence Committee, who sold as much as $1.56 million in stock, according to CNN. A lawyer for Burr sent CNN a statement on Sunday insisting that the senator had done nothing illegal.

“The law is clear that any American—including a Senator—may participate in the stock market based on public information, as Senator Burr did,” Burr’s lawyer, Alice Fisher, told CNN.

“When this issue arose, Senator Burr immediately asked the Senate Ethics Committee to conduct a complete review, and he will cooperate with that review as well as any other appropriate inquiry,” Fisher continued.

Fisher was Assistant Attorney General for the Criminal Division of the DOJ under George W. Bush. Fisher was also one of the key lawyers at DOJ under Bush who helped set up the legal framework to justify the use of torture for detainees during the so-called War on Terror.

The high-level meeting for Republicans on January 24 included CDC Director Robert R. Redfield and Anthony Fauci, one of the Trump regime’s top advisers during the covid-19 crisis. Dr. Fauci has been seen as one of the lone voices of medical reason during President Trump’s erratic and dangerously misinformed press conferences.

It’s not clear whether other U.S. politicians besides Burr who also sold stock are currently being investigated. Senator Kelly Loeffler of Georgia sold between $1.2 million and $3.1 million in stock before the crash, and her husband Jeffrey Sprecher, sold at least $18 million, despite failing to note his stock sales as part of his wife’s legally mandated financial disclosures. Sprecher is a Republican donor and chairman of the New York Stock Exchange.

“I want to set the record straight: This is a ridiculous & baseless attack. I don’t make investment decisions for my portfolio. Investment decisions are made by multiple third-party advisors without my or my husband’s knowledge or involvement,” Loeffler tweeted after the sales became public knowledge.

Loeffler was previously the CEO of blockchain company Bakkt and only became a senator after being appointed by Georgia’s governor in January. Loeffler spent much of February and early March downplaying the threat from covid-19 to the U.S., all while selling off millions in stock. Loeffler insists that she didn’t know about the sales.

“Democrats have dangerously and intentionally misled the American people on #Coronavirus readiness,” Loeffler tweeted on February 28. “Here’s the truth: @realDonaldTrump & his administration are doing a great job working to keep Americans healthy & safe.”

And here was a tweet by Loeffler from March 10, insisting that the U.S. economy was strong:

At least two other politicians reportedly sold stock in the lead up to the market crash. The husband of Democratic Senator Dianne Feinstein from California, sold anywhere from $1.5 million to $6 million in stock. And Republican Senator Jim Inhofe from Oklahoma sold up to $750,000 in stock. Both Feinstein and Inhofe have denied any wrongdoing.

Senators Loeffler, Feinstein, and Inhofe have not been contacted by the FBI, according to CNN.

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Facebook Stock Has Bigger Problems Than That Ugly Earnings Report

• Facebook’s share price plunged after an ugly quarterly report.
• A rise in the company’s operating costs spooked investors.
• But Facebook has bigger problems over the long term.

There’s a simple reason why Facebook stock is in free-fall today. The Mark Zuckerberg-led social media giant has peaked.

FB shares slid more than 6% on Thursday after Facebook reported mixed Q4 earnings. Earnings per share ($2.56) and revenue ($21.08 billion) outperformed.

But there was another figure that loomed much larger: a massive 51% increase in operating costs and expenses, which rose to $46.71 billion for the year.

Facebook stock careened lower on Thursday. | Source: Yahoo Finance

On top of stagnant user growth, this rise in expenses signals an alarming trend for the social media giant.

Attempts to expand the company into new sectors and ventures appear to have stalled. Combined with a decline in user engagement, this hints that the company is struggling to grow.

It’s Getting Harder Being Facebook

It’s tough being Facebook.

Not only does much of the world blame you for damaging your users’ mental health and undermining democracy, but governments and regulators throughout the globe are increasingly getting on your case.

Because of billion-dollar fines, multiple anti-trust investigations, and the cumulative effort of having to constantly prove that it’s not the embodiment of evil, the cost of running the Facebook behemoth is growing.

Unsurprisingly, Facebook’s operating margin is declining as a result. In 2018, it was 45%. In 2019, 34%.

Source: Twitter

Facebook’s shrinking profit margin is actually a longer-term trend, the result of having to spend more to keep its colossal network running – and prove to regulators that it’s secure and safe.

Yet rising costs aren’t the only reason why Facebook stock is imploding and investors may be on the verge of leaving en masse.

Facebook Stock Is Plunging Because the Company Can’t Grow

Facebook is struggling to expand.

FB’s quarterly results showed that its global monthly active users (MAUs) number had stagnated at 2.5 billion. U.S. and Canadian MAUs did rise – but only by 1 million to 190 million.

If the market wasn’t already spooked by such feeble numbers, they’re almost certainly spooked by the fact that Facebook’s growth plans appear to be dead on arrival.

Its much-vaunted Libra cryptocurrency faces stark opposition from governments around the world. Numerous industry figures have predicted that it won’t launch in 2020 – maybe ever. And last week, Vodafone became the latest company to pull out of the Libra Association, which would oversee Libra’s network, if it ever launches.

So much for its plans to sweep up all our financial data.

Then there’s WhatsApp, which Facebook acquired in 2014 for a cool $19 billion. Despite having big ideas for WhatsApp, Facebook recently shelved plans to insert money-making ads into the messaging platform. Instead, it’s focusing on trying to develop revenue streams by catering to businesses who suspect their customers might want to use the app to message them. Good luck with that.

FB Investors Don’t Want to Go Back to Basics

This really shouldn’t be surprising. Look at other new routes to growth Facebook has dallied with in the past. They’ve almost all failed spectacularly.

Do you remember its hilariously ill-fated Free Basics service? Facebook launched it in 2013 with the grand aim of providing “free” internet access to millions of people in India. It was ignominiously shut down by India’s telecoms regulator in early 2016, ostensibly for undermining net neutrality.

Facebook is suffering from a pathological inability to launch new successful ventures. It doesn’t look capable of expanding beyond its basic business, and it’s this suspicion that is scaring off investors.

Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.

This article was edited by Josiah Wilmoth.

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‘Independent’ Stock Market Researcher Fundstrat Shills Paid Crypto ‘Report’

• Stock market research firm Fundstrat published a bullish 71-page report promoting the IOTA cryptocurrency to its clients.
• Something doesn’t add up when you compare this to a public disclosure found on its retail portal.
• The IOTA project already has a shifty reputation, and Fundstrat isn’t doing itself any favors.

The stock market research firm founded by notorious bitcoin price prediction “expert” Tom Lee has been spotted promoting the controversial IOTA cryptocurrency project to its clients.

As first noted by independent crypto researcher Hasu, the Fundstrat report was commissioned and paid for by IOTA Foundation co-founder Dominik Schiener himself.

Source: Twitter

The disclosure appears on page 71, conveniently tucked away from clear view:

Dominik Schiener is both the Co-Chairman of the Board of Directors for the IOTA Foundation and Co-Founder of the IOTA Foundation. Dominik Schiener has commissioned/paid for this specific research project and has permission to distribute.

Fundstrat’s Sketchy Disclosure Details

Even worse is this shortened version of the research, which appears on fsInsight, Fundstrat’s retail investor portal.

Fundstrat does not disclose who paid for the report and even goes so far as to claim the following in the “Disclosures” section:

FS Insight does not know of, or have reason to know of any material conflicts of interest.

Fundstrat claims there is no conflict of interest. | Source: fsInsight

It’s a Slippery Slope

Despite Tom Lee’s frequent appearances on CNBC, Fundstrat’s credibility has already taken some justifiable hits.

After all, Lee has a long history of making bold bitcoin price predictions that never seem to come true.

Source: Twitter

And now his firm is promoting a questionable project to his own private clients. IOTA has a controversial reputation in crypto. And that’s putting it mildly.

Former Kraken programmer Andreas Brekken published in-depth research that concluded: “IOTA: Cannot be used for IoT. Loss of funds may occur.”

That’s certainly been true for investors:

IOTA investors have suffered enormous losses. Will Fundstrat’s paid report shift the tide? | Source: TradingView

Maybe Fundstrat’s “report” will shift the tide.

The whole debacle reminds me of former Bitconnect promoter Trevon James, who supposedly landed himself in hot water with the FBI. To pass his days, James now promotes other equally-scammy coins like HEX, which is “designed for 10,000x returns.”

Once a scammer, always a scammer, as they say. Or in this case: once a shill, always a shill.

Either way, Fundstrat isn’t doing its reputation any favors. If there’s money on the table, it seems clear the firm is willing to take a break from its “independent” research.

Disclaimer: The opinions in this article do not represent investment or trading advice from CCN.com

This article was edited by Josiah Wilmoth.

Last modified: January 18, 2020 6:40 PM UTC

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ABN AMRO is helping BUX #blockchainify its new stock trading app

A division of the major Dutch bank ABN AMRO and a mobile trading app are collaborating to offer stock investments using the blockchain.

The bank‘s securities investment arm ABN AMRO Clearing Bank and BUX announced today that they have signed a partnership contract to use the bank‘s blockchain-based technology in its latest app, called STOCKS.

BUX says the app will be released in summer this year, and will store customers’ money with “ABN AMRO Clearing in an individual blockchain bank account,” using ABN’s Banking-as-a-Service (BaaS) platform.

It should be noted, though, that it’s not a true decentralized and open blockchain, like Bitcoin’s. The BaaS system is “essentially a system that operates in a private (or permissioned) blockchain,” a BUX spokesperson explained to Hard Fork.

The blockchain – which launched last year – was created by AACB to process transactions without using escrow accounts. At the moment, the transactions are processed by “a selected number of private nodes,” the spokesperson said.

Typically, institutional banks use escrow accounts to manage client funds and process payments. However, with AACB’s BaaS, clients are provided with a blockchain bank account, which handles their money on their behalf.

“Every bank account is essentially a unique string of code that is administered in this blockchain,” the spokesperson added.

An ABN AMRO Clearing spokesperson further told Hard Fork, “It is like any other bank account, just administered on the blockchain.”

BaaS services are used by institutions – like BUX – that handle money for clients but are not actually licensed banks.

Given that client’s bank accounts are on a private blockchain, all the relevant regulatory bodies can be granted permissions to ensure the required transparency is maintained, but it will retain some privacy from the general public.

The bank also claims that using a private blockchain dramatically decreases the administrative costs for the organization as it eliminates the management costs usually associated with escrow accounts. That luxury, however, comes at the cost of true censorship-resistance.

Given that BUX’s new STOCKS app will not charge users any commission for buying stocks, it seems – on the surface at least – that these cost savings are being passed on to the consumer.

As it turns out, this is another case of the “blockchain, not Bitcoin” maxim that’s often seen alongside a bank‘s use of the tech.

Earlier this month, ABN AMRO told Hard Fork that it’s cancelled its plans for a cryptocurrency wallet as, given the market’s unregulated nature, it’s just “too risky.”

Indeed, ABN AMRO also recently signed consultancy Accenture and another Dutch bank ING up to its decentralized trade inventory platform.

ABN AMRO might be done with Bitcoin for now, but it’s still big on blockchain.

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Auditor Exposes ‘Weakness’ in Nasdaq-Listed Crypto Stock

Being a crypto company isn’t as easy as it looks. Just ask Riot Blockchain, a Nasdaq-listed company that was previously known as Bioptix. Riot is the subject of an audit in which “material weakness” was discovered in their financial reporting, according to a U.S. SEC filing.

As of year-end 2018, Riot had a cash war chest of $225,000 versus nearly $42 million when the bitcoin price was at its peak. Meanwhile, the company’s crypto mining operation:

“generated approximately $7.7 million in revenue on the production of 1,081 bitcoins (including Bitcoin Cash as converted) and 3,023 Litecoins for the year.”

Marcum, the blockchain company’s auditor, warned that Riot had failed to maintain proper financial reporting protocols since last December:

“[Riot] has not maintained effective internal control over financial reporting as of December 31, 2018.”

BIOTECH-TO-BITCOIN PIVOT ROILS RIOT AS CRYPTO MARKET COOLS

This Nasdaq-listed crypto stock has seen its shares plunge by a full third over the past year. | Source: Yahoo Finance

Before changing its name, Riot was a biotech play. In 2017, the company reinvented itself with a focus on bitcoin and blockchain including a crypto mining operation in Oklahoma City. This led Riot shares to initially skyrocket.

The negative audit report is a blow to Riot, which has been under investigation by regulators since months after the name change. The company maintains that it is cooperating with the SEC probe. Riot’s stock has shed one-third of its value over the past year.

AUDITOR, LAW PROF. WARN OF ‘DISASTROUS’ OUTCOME

The auditor fears that a deficiency in Riot Blockchain’s internal controls for financial reporting could lead to bigger problems. They cite a possible “material misstatement of the company’s annual or interim financial statements” that wouldn’t be uncovered until it’s too late. The weaknesses cut to the core of crypto investing and include:

• “User access controls”
• “Program change management controls for certain financially relevant systems”
• “Physical security controls” surrounding the safeguarding of cryptocurrency hardware wallets, seed phrases, pin codes, and mining equipment.

The financial reports comprising Riot’s 2018 annual report, which incidentally was filed late, are clear of any mistakes. To keep it that way, Riot Blockchain’s management team expects “the remediation of this material weakness will be completed prior to the end of fiscal 2019.”

Wayne State University Professor of Law Peter Henning laid out a worst-case scenario, telling CNBC:

“I think it is a concern they could get hacked. That would be disastrous for a company if there is theft.”

He added that the adverse audit could exacerbate the SEC’s ongoing investigation into the company.

RIOT BLOCKCHAIN’S CEO SHUFFLE

If Riot’s financial statements are a reflection of the company’s management history, it’s no wonder they’re in disarray. Since the name change, Riot has had three different CEOs, most recently naming Jeff McGonegal to the helm.

In September 2018, the company’s chairman and CEO, John O’Rourke, resigned amid market manipulation charges by the SEC, according to reports. Those charges against O’Rourke were reportedly unrelated to Riot Blockchain. The company then appointed Chris Ensey as interim CEO as part of a broader restructuring, since which time he has left Riot.

Riot plans to launch RiotX, a U.S. based crypto exchange, by the end of Q2 2019. They might want to be sure and get a handle on their crypto hard wallets, private keys, and seed phrases before having custody over anyone else’s funds.

 

 

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