Sudden and massive surges on Gamestop, Bitcoin, and Dogecoin.This event has happened when the subreddit WallStreetBets heard that Gamestop was shorted by the hedge funds. As a result, small investors decided to buy the stocks so that price would go up. That resulted in massive losses for hedge funds, and even a hedge fund went bankrupt. But, when the government, media, and trading platforms intertwined, they manage to recover their losses partially. Here, we’ll discuss what happened since Gamestop.Gamestop, where it all startedIt might be surprising to most people, but as soon as people on Reddit organized a mass buyout, fund firms could be out of commission for good if government involvement wasn’t there. So it shows that most hedge funds are one organized mass activity away from bankruptcy.Dogecoin, the next stopThe same subreddit actually pumped Dogecoin to the moon. Since the start, Dogecoin has had massive returns. And many people thought that this would make much more money than they thought. As a consequence, another rally potentially made more people millionaires. Moreover, they potentially hurt many short-sellers, and it might continue for quite a while.Elon Musk’s Bitcoin BioIt all started when some people claimed that Elon Musk paid admins with Bitcoin to screw over hedge funds. But this was not just the case. Bitcoin surged to $37.000 when Elon Musk added Bitcoin to his Twitter bio. However, it turned to its previous place later. The craze lasted a few days and knocked many billionaires with small moves.What’s nextAfter government and trading platform involvement, it’s clearly seen that the system is severely rigged and most people would have lost faith in government and most corporations. Moreover, there’s a massive likelihood that more of these massive rallies would occur for making money and retributing against mass funds.Furthermore, it has shown us…
Archives for January 2021
Crypto is 24/7, and soon stocks shall be too. There is light at the end of the tunnel #bitcoin
For a Wall Street day trader arriving in the cryptocurrency markets, it is a surprise and often a tiring idea that crypto markets are open 24/7. In the world of crypto assets, there is no market opening or closing, holidays, weekends, nor circuit breakers. It is all digital and going on live 24/7.Until recently, crypto trading and investing were looked upon as too risky, volatile, and often tiring. But since few recent events have caused havoc in the stock exchanges, retail investors are moving their funds elsewhere, and cryptocurrency exchanges are looking into capturing that market share.Cryptocurrency markets and exchanges are starting to be seen as more transparent than trading apps such as Robinhood, and decentralized exchanges are leaning towards being seen as the fairest of them all.Which recent event accelerated this trend?In addition to the recent volatility in the commodity markets recently experienced in 2020 caused mainly by the initial scare of the pandemic. Yesterday many of us were left speechless with the Ronbihood Gamestop Episode. No better way to explain than Anthony Pompliano in his latest CNBC interview, check it out:Which Crypto exchanges are offering stocks?Centralized and decentralized exchanges are now looking to integrate stocks into their offerings as fast as possible. With some of them already making 24/7 stock trading available as of now.Yesterday the American centralized crypto exchange announced on a Press Release that “Bittrex Global (Bermuda) Ltd. announced that it has listed tokenized stocks for GameStop and AMC Entertainment as well as Nokia, BlackBerry, and iShares Silver Trust. Bittrex Global will continue to list additional stocks as other firms announce a delisting from their platforms.”According to Bittrex, “this decision is motivated to ensure retail investors have exposure to stocks they may wish to trade anytime during any day of the week. Bittrex Global aims to…
Coinmarketcap Pushed The WallStreetBets (WSB) Token Ahead Of Bitcoin In Support Of Reddit Users
On CoinMarketCap, the WallStreetBets token (WSB) appeared, taking zero place ahead of BTC in terms of capitalization. This is related to the revenge of Reddit users on institutional traders.The CoinMarketCap has published a warning on the page about the WSB that in fact, such an asset do not exist. This means that Bitcoin is still the leader of the cryptocurrency market.The fictional token is valued at $483, and its capitalization is $24.8 billion. There are 51,442,000 WSBS in circulation, and the daily trading volume of the WSB amounts to $100 million.These figures did not come out of nowhere. They indicate the performance of the American retail chain GameStop, which sells video game consoles and computer games.Its shares were the subject of a dispute between hedge funds that opened short positions , and thousands of users of the WallStreetBets subreddit, who began a massive purchase to punish market manipulators.The participants of the subreddit managed to raise the price of GME more than five times. The stock’s rise caused the hedge fund Melvin Capital to lose billions of dollars in short positions.After that, the American platform for retail trading in stocks and crypto assets, Robinhood, suspended the purchase of GME shares, to “control market manipulation.” Broker Ameritrade suspended trading in these shares for a similar reason.This caused widespread outrage: retail investors were prohibited from buying shares, while hedge funds were free to trade them as they see fit.The social network Facebook removed the official group of the Robinhood community of traders. American politician Alexandria Ocasio-Cortez wrote on Twitter about the unacceptability of such actions, and Congressman Paul Gosar asked the US Attorney General to investigate.A lawsuit has also been filed against Robinhood for attempting to manipulate the smooth functioning of the financial market. The lawsuit received widespread public support.The WSB token was…
A Beginner’s Guide to Day Trading Cryptocurrency
What is Day Trading?Day trading concludes on the same day. Profit or loss — no matter what’s in the store, but the report card comes on the same trading day. It’s similar to a 20–20 cricket match where you don’t have much time to think and plan. In fact, it demands prior planning and strategy making.Sometimes, this strategy is also referred to as intraday trading. The goal of day traders is to use intraday trading strategies to benefit from the intraday price changes of the stock or any other asset. It demands objective decision-making keeping facts and figures on the table.How do Day Traders Make Profit?Before putting their money into this crypto trading instrument, here is what every successful day trader does to ensure maximum profit and minimum risk:Technical Analysis: Day traders learn the market sentiment using descriptive and diagnostic analytics. They perform an analysis of how the market performed in the past, and what caused it to behave like that. Thereafter, keeping in mind the volume and price of the asset at different points of time, they predict the future in the next few minutes and hours, spot the profitable opportunities, and invest accordingly to make the most out of their investment.Risk Management: Cryptocurrency intraday traders build a strategic risk management plan to cope with any potential surprises and shocks. Here is a guide to risk management processes.Have a clear vision regarding what you want to achieve, what you have in hand, and how much risk you can tolerate. These aspects should be pre-planned as it helps you take the right step in the right direction.Compare the volatility of different cryptocurrency markets to identify the underlying risks. Break the risk factors by asset liquidity, chart pattern, impact cost (when impact cost is high, the risk of intraday becomes too…
2021 Bitcoin Predictions: A Brief Interview with Justin Sun
Crypto visionary and founder of TRON, Justin Sun, says,“the crypto market is still moving toward its equilibrium.”There are few people with such an impressive background as Justin Sun. He is the protege to Jack Ma, founder of Alibaba, listed by Forbes among the “30 under 30 in Asia,” and founder of the TRON Foundation (TRX).I had the opportunity to ask Justin a few questions concerning Bitcoin’s meteoric rise, breaking the $40,000 barrier with projections that it could reach $300,000 or more in 2021 and increasing %400 in Q4 of 2020.As one of the leading minds in the crypto space, it’s perhaps not surprising that Justin is feeling bullish on BTC — and on altcoins and the role of crypto overall in the global economy.Justin’s responses are presented here with some editing for length.Where do you see BTC going in 2021?Bitcoin has been one of the top stories of 2021 everyone and their grandma is talking about BTC this year. Doomers, nocoiners, and bears like to use every opportunity to point to the death of bitcoin or to equate crypto to the dotcom bubble.In my opinion, the recent correction of BTC is a reflection of a healthy market with active traders and investors.BTC still has a ways to go in terms of price growth, In December 2020, a leaked Citi report revealed one of the bank’s senior analysts thinks bitcoin could potentially hit a high of $318,000 by December 2021. Although it’s anyone’s guess what the price of BTC will be at the end of 2021, we know for certain that the bull market is here, and it looks like it’s here to stay.“Altcoin Season” — has this happened but not as dramatically? Do you expect it to happen for ETH or anyone else?Historically we have seen the altcoin season take…
Bitcoin 2021: A Brief Interview with Changpeng Zhao
CZ believes the “journey has just started” for BTC, DeFi, and cryptocurrency.Changpeng “CZ” Zha, founder and CEO of Binance, frequently tops the list of top people in crypto and blockchain. As the founder of what became the largest exchange in the world in 180 days, said to command 25% of the market share in transactions, with just under $500 million in trading volume as of early 2019, CZ has a perspective that few can claim.CZ is clearly bullish on Bitcoin and at the head of the charge on crypto with Binance, OKCoin, and his DeFi projects. It seems to CZ, the meteoric run on Bitcoin, and even the subsequent dips, were to be expected.We interviewed CZ as part of a report on Bitcoin outlook for 2021 and would like to share his responses in total (with some editing for length) here. These responses are from January 15th, so do not refer to any subsequent actions in the crypto market.Where do you see BTC going in 2021?The industry’s development of 2020 has formed a new foundation for further growth. The slew of institutional investors making public their acquisitions, combined with the DeFi boom over last summer, raised public awareness and helped BTC break new records this early in the year.The macroeconomic conditions we saw last year, partly compounded by the pandemic, will continue to pressure more institutional investors to pursue ways to hedge against inflation. Whether it is for trading or treasury management, institutional investors will consider BTC inevitably, so we think a steady upward trend for the rest of the year would be justified.“Altcoin Season” — has this happened but not as dramatically? Do you expect it to happen for ETH or anyone else?Right after its third-halving in May last year, BTC had very little movement, and subsequently, the market…
Why are the Rich going Gaga Bitcoin?
The simple but ugly truth you need to know about Bitcoin InvestingPhoto by Joshua Sortino on UnsplashThe idea of building wealth over time is simple. The rich have been doing it all along.They look for assets that have scarcity and desirabilityRich invest in prime real-estate like city center properties as city centers don’t grow, unlike cities.Next, they invest in precious art, Collectibles, and vintage items.All of these are highly scarce and desirable!The bulk of their portfolio consists of assets that are scarce and desirable by others.Now you must be wondering, why gold is missing on this list!That’s the big trillion-dollar question you see…As you know, Gold is pretty scarce. Unlike fiat currencies( which never stop inflating ), gold is highly desirable and easily divisible, and highly durable.So ideally, the rich should be hoarding tons of gold, isn’t it?Unfortunately, they can’t, for a very practical reason.You see, Govts don’t like gold.They don’t like their citizens hoarding gold and pumping up its value.Govts hate GOLD as its scarce commodity money that can bring down their control over your wealth significantly.So, Govts have killed Gold price by simply outlawing ownership of more than a few kilos of it, which essentially affects the Rich and is easy to enforce as it doesn’t affect the poor.In the USA, they banned gold ownership beyond 1 kilo from 1930–1965.In other countries, since the 1900s, there is an informal ban on holding significant gold. (except for Switzerland, which is why Switzerland is one of the richest countries to date as they respect the rich and don’t aim to steal their money illegally)Governments, in general, simply seize gold ( using various mechanisms and laws ) if they find large stashes of gold and they sell it for fiat currencies.This has two effectsOne, it suppresses the price of goldTwo, it…
How meme culture is changing the global financial system
Reddit is pumping GameStop’s share price into the stratosphere and opposing Wall Street. Parallels to Bitcoin’s meme culture can also be discovered.Anyone who thought things would return to normal in 2021 was wrong. Because despite the economic crisis, the financial markets are turning completely free. This financial January, wild in many ways, reached its preliminary climax in the battle between David and Goliath. Of course, there is talk of a coordinated short squeeze by users of the Reddit image board. What happened there and why the process is also interesting for Bitcoin investors.At the center of the Causa, Reddit Short Squeeze is an actually rather inconspicuous company: GameStop. The computer game retailer has had a tough time. After all, cloud-based gaming threatens to end the business model. The corona-related lockdowns and the associated shop closings hit the seller twice as hard and the sword of Damocles of bankruptcy has been hanging over GameStop for some time.This trend has not escaped Wall Street, or rather Melvin Capital, a well-known US wealth manager. The finance manager went short — but really. Basically, Melvin Capital was betting on the total ruin of GameStop (NYSE: GME) with the intention of filling its pockets in the process.So-called short sales make this possible. Behind this is the practice of throwing borrowed shares on the market and buying them back at a later date, and returning them to the broker who originally lent the shares. If the price falls between these two actions, shortsellers make a profit.The short orgy was spurred on by Citron Research, a well-known stock market paper from the USA, and Andrew Left, one of its authors, who is also one of the country’s best-known shortsellers. Left had caused quite a stir last week with a sell recommendation for GameStop shares. Probably also because,…
DefiBids Seeks to Make Crypto Auctions Profitable for Everyone
DefiBids wants to make buying ERC-20 tokens fun and more profitable for everyone. This unique DeFi online auction allows users to BID on packages of ERC-20 tokens and NFTs at discounted rates compared to market value. The DeFi market is on fire right now. This sector has seen explosive growth due to a combination of healthy investor ROIs and market hype. Consequently, DeFi continues to be one of the fastest-growing sectors in blockchain.Why You Should Consider Buying DeFi Tokens via AuctionsFor many crypto investors, the thought of buying tokens via an auction has never crossed their minds. With all of the exchanges currently available to users, you may not see any reason to venture out into the world of online auctions. However, you may want to reconsider your stance as there are some serious benefits gained from auctions, especially when you look at the growing risk of hacks and centralization in the current exchange markets.One of the primary reasons to consider buying ERC-20 tokens, in particular, from an auction is the savings. When you bid on an Auction Package, you have an opportunity to save a bundle on your next purchase. Notably, DefiBids allows you to place unlimited bids, across multiple auctions simultaneously. This strategy allows you to further your chances of winning the auction.Not Your Ordinary AuctionThere are some features that make DefiBids a better option than the competition. Specifically, there is an impressive selection of auction types available. When you think of auctions, many people envision a fast-talking host spitting out numbers in what seems like gibberish. Nowadays, there are all types of auctions.DefiBids supports your traditional auction in which the highest bidder wins. There are also Lower Unique Bid options available to users. In this scenario, it’s the lowest bidder that wins the auction. The network introduces…
Be Very Afraid Because the Banks Are Coming for Bitcoin
Some of the biggest names in banking are reversing course on their views of Bitcoin, should their arrival be feted or feared?Samantha Heywood thought she could change him after they got married. Like so many other women, she thought that given time, her then-boyfriend now husband, would perhaps change his ways.And for the longest time there were plenty of signs to indicate that that could happen.After all, hadn’t he thrown her a surprise birthday party and wasn’t he tender with her when no one else was looking?Yet as she washed the matted blood out of her hair, Samantha was starting to wonder if Doug would ever change, or whether she’d be dead well before he did.Thinking back to a song she had heard her father play in the car by Al Wilson, Samantha realized now how naïve she had been all along.“I saved you, “ cried that woman,“And you’ve bitten me, even why?And you know your bite is poisonous and now I’m gonna die,”“Oh, shut up, silly woman, “ said that reptile with a grin,“Now you knew darn well I was a snake before you brought me in.”Was Doug the snake Samantha’s father had always warned about?Which is why the rush of the cryptocurrency industry to embrace institutional money is so puzzling — it benefits the incumbents far more than the upstarts.Institutional participation in cryptocurrencies favors centralized intermediaries rather than the decentralized ethos upon which Bitcoin was founded.And Wall Street money favors a pattern of habitual rent-seeking, instead of fostering further innovation and experimentation with cryptocurrencies and blockchain technology.So why the push for banks to bet on Bitcoin?Bitcoin for BankingIt’s not that Wall Street views technology with suspicion.In fact, Wall Street has historically been quick to embrace technology, particularly when it increases profitability.Take for instance the computer.Wall Street was the…