At the margin of Bitcoin’s new all-time high, Poloniex exchange goes offline – Cryptocurrency News
- Poloniex crypto exchange went offline
- Dense traffic seems to be the reason for the unknown down run of the exchange
- The issue impacted wrong credit of Bitcoin Cash tokens
- Bitcoin remained near its new all-time high
When everyone’s attention was on Bitcoin’s recent bull run, some cryptocurrency exchanges are suffering from technical difficulties. Yesterday, while the whole space was waiting for a new all-time high price of Bitcoin, Poloniex crypto assets exchange, based in Massachusetts, the United States of America, went offline. The report was revealed via a tweet by the Poloniex exchange’s customer support.
Poloniex is currently unavailable due to an unexpected issue. We are investigating the issue and will keep you updated here throughout. Thank you for your patience
In recent weeks, it is observed that Bitcoin is yielding an exuberant uptrend action and catching the attention of every eye available in the crypto space. However, the uptrend is also bringing dense traffic on exchanges, which sometimes causes systems offline and lockout trading. Following the tweet by Poloniex’s customer support, it was known that the exchange went unavailable due to some unexpected reasons, and the team is investigating the issue. However, in the past several significant exchanges like BitMEX and Coinbase have also gone through with such cases.
According to the tweet, Poloniex fixed its issues within half an hour. After announcing the maintenance update, within half an hour, the exchange announced that the spots and margins market are online with post-only mode, still, withdrawals were disabled, and after a while announced that futures trading, and spot and margins market got enabled for full trading, still Bitcoin Cash market remained to disable. However, after several hours, all facilities got functional, and issues were resolved.
Our Futures contracts are now re-enabled for full trading
As any significant crypto exchange goes offline, it suffers some minor issues. In the case of Poloniex, it is observed that the exchange, after getting offline, suffered an issue regarding Bitcoin Cash (BCH). According to Poloniex customer Support’s tweet, it was revealed that some of the users of Poloniex were mistakenly credited with Bitcoin Cash (BCH) tokens. However, the team also mentioned that the system of exchange had discovered the issue, and they have resolved it.
Earlier today, some users were mistakenly credited with BCH. Our system quickly discovered this and we have since resolved the issue. All customers’ funds remained safe throughout maintenance
This year, it is observed that Bitcoin has received a significant amount of mainstream financial attention, as several vital financial players have all jumped in the space, adding enormous amounts of such tokens in their portfolio. However, when the Poloniex exchange was resolving its issues, Bitcoin remained at its position crossing the level of $18,000, which near its new all-time high price at $20,000 per Bitcoin.
Author: Antonio K Smith
Parabolic rally ‘a real possibility’ after Ethereum price surges to $547
The price of Ether (ETH), the native cryptocurrency of Ethereum, has surpassed $547. Following the breakout, traders are pinpointing several key resistance levels in the near term.
In the short term, traders generally foresee $600 as the major resistance area for Ether as it marked the beginning of a bearish trend starting in May 2018. As such, $600 could act as an area of interest for sellers.
But, traders also believe that if Ether surpasses $600, it would likely enter the $700 to $900 range. Above it, there is little resistance until the all-time high.
The Ethereum network has seen numerous catalysts come into play in recent months.
First, the Ethereum 2.0 network upgrade is progressing, as a large number of Ether continues to flow into the deposit contract address.
Ethereum 2.0 is a significant upgrade to move Ethereum from the proof-of-work (PoW) consensus algorithm to the proof-of-stake (PoS) algorithm. Essentially, it removes miners from the network to optimize the settlement of transactions.
Second, on-chain data show that whales are continuing to accumulate Ether. This trend coincides with a drop in Ether exchange reserves, particularly as more holders deposit the digital asset to the Eth2 deposit contract. Researchers at Santiment wrote when Ether initially broke out of $500:
“Following in $BTC’s footsteps, $ETH has hit a 29-month high of $509. June 21, 2018 was the last time the price was this high for the #2 market cap asset. #Ethereum’s top 10 holders rising, combined with coin supply on exchanges, have fueled this rally.”
The strong fundamental catalysts for Ethereum and the favorable technical structure for Ether has traders optimistic about the near term price trend of Ether.
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said a pullback at $600 is likely. But, above it, the trader said the road towards $900 to $1,000 is open.
A pseudonymous trader known as “Rookie” similarly said that ETH to $700 by the year’s end is likely. ETH has seen a parabolic uptrend since July 2020, raising the probability of a prolonged rally bridging over to 2021.
During the 2017 rally, when Bitcoin neared $20,000 across major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, after BTC had peaked.
Ether seeing renewed momentum in 2021 would go in line with the trend it saw in the 2017 post-halving cycle. Although there is little historical data to suggest that Ether and altcoins will follow the same trend as three years ago, the narrative of a January 2021 altcoin rally remains strong.
For Ether to see a prolonged uptrend, it would first need to reclaim the $600 resistance level as many analysts view this level as the biggest near term threat.
Author: by Total Exchange
Bexpress now a fully BSP-registered cryptocurrency exchange – The Manila Times
BEXPRESS was awarded the full license to operate as a Virtual Currency Exchange by the Bangko Sentral ng Pilipinas (BSP) on September 6, 2020.
The awarding of the full license further demonstrates the company’s commitment to offer financial services consistent with the laws and regulations. It also enables Bexpress to enhance the trust of its customers, credibility and legitimacy to the commercial partners, and gives validation and certainty to its investors. Effectively, BSP registration optimizes business opportunities and consequently improves the services.
Because of BSP registration, Bexpress enjoys the guidance of the BSP as principal regulator on how, as a financial institution, should conduct business. The BSP rules that Bexpress is bound to observe and reflect the best practices in financial services. Such guidance is extremely important to Bexpress at this time; so that from a startup phase, they can scale up the business and build it as a trusted institution. In this regard, the company views BSP as a partner in the governance of the company.
Growth amidst uncertainty
It has been quite the journey indeed for Bexpress – from incorporation in September 2016 to the beta phase of its platform (BEXPRESS.PH), to the public launch of the app (Bexpress Pro), and everything else in between.
Bexpress was established as it strongly believes in the potential of the Philippine market. Bexpress CEO Brian Kang remarked, “There is a good market here. With Filipinos leading in overseas remittances, I’d like to give them the convenience and opportunity to grow their money using technology.”
OFW remittances were at $29.7B in 2016 and have steadily risen to $33.46B in 2019.
In just a short period, the company continuously grew its user base with clients not just from the Philippines but from South Korea, Japan, and Singapore. The pandemic did not negatively affect the business as there has been an increase in remittance transactions through cryptocurrencies and a lot more Filipinos are gaining more interest in cryptocurrency trading. Operations were also unhampered as company was able to consistently provide quality service 24/7 to its clients. We even invested a lot in HSM technology, Amazon Web Services (AWS), and an off-site data backup recovery site to ensure the security of its clients’ funds and personal data.
Looking forward to 2021
Bexpress is looking forward to an exciting 2021. By next year, the Bexpress expect that digital assets will gain more traction, both in terms of consumer and institutional adoption.
The company also expects that the underlying technology behind most digital assets, blockchain, will become more developed. In fact, the company is expecting”blockchain payment” system will start in the first quarter of 2021. The maturation of blockchain will enable more applications to be rolled out, and can already expect a Cambrian explosion of innovation in the area of financial technology by 2021 and beyond. With the emergence of new technologies – most of them are open-source software and protocols, clients and partners can look forward to new financial products and services that leverage blockchain and digital assets.
Author: By N LIMLENGCO
Automated Market Maker (AMM) Explained
Decentralized finance (DeFi) has exploded as well as Ethereum and smart contracts platforms. Yield farming became a new way for token distribution. All in all, the technologies changed the crypto game in 2020.
Automated market maker protocols like Uniswap or Balancer got its piece of the pie. The popularity of such platforms became enormous not only in terms of the technology itself but in liquidity and trading volumes. How does AMM work, and what is its future? We’re here to give the answers to these questions.
An automated market maker is a type of decentralized exchange. The fundamental difference is that AMMs use a mathematical formula to calculate the rate, and not an order book (ask and bid orders), as on a traditional crypto exchange. Cryptocurrencies are priced according to a pricing algorithm calculated using the formula that varies from platform to platform.
We have already described the calculation formula on the Uniswap protocol.
x * y = k
In this case, x and y mean the number of Ethers and ERC-20 tokens, respectively, available in the liquidity pool at any given time. k is a constant value, which means that the pool liquidity is permanently fixed. Other platforms may calculate asset values differently, but the main similarity is that it all happens algorithmically on all platforms.
AMM’s work is based on all the same trading pairs. However, you do not need to have a trader on the other side, as the smart contract will conclude the deal for you. This interaction is called peer-to-contract (p2c). The amount of received cryptocurrency and its price are determined automatically using a formula, so there is no need for counterparties.
What then creates liquidity if there are no counterparties? In the AMM system, liquidity pools and their participants were invented. Let’s talk about them.
Liquidity providers deposit the cryptocurrencies in the liquidity pool. They get rewards in return for providing liquidity in the form of trade fees. Let’s take Uniswap as an example. The liquidity provider deposits the same amount in two tokens, for example, ETH/DAI (50/50). You want to buy all the assets in the pool. However, you cannot do it because of the x*y=k. Even if you pay more money for each Ether in this pool, the x or y cannot be equal to zero.
Each platform determines the commission for the trader, for example, 0.3% as Uniswap does. The platforms are fighting for the best offer for liquidity providers since their existence directly depends on the level of liquidity in the pools. Here appears one more term – impermanent loss.
The impermanent loss appears in the case when the ratio of deposited tokens changes after the deposition. The bigger the change is, the more is an impermanent loss. That’s why AMM works excellent when the coins in the trading pair are similar in their price or have minor differences. However, even when ETH/DAI pair, which was affected by the impermanent loss, the fees covered these losses. It would be best if you considered the risks before depositing a particular pair.
Liquidity mining is a process on an AMM platform that provides an asset to a market to receive rewards that may be denominated in the platform’s tokens. This technology is quite controversial since it has both an advantage and a drawback. There is a high risk of fluctuations in the price of provided assets. However, the benefit is obviously in the reward. The liquidity providers can sell the native tokens of the platform.
The Uniswap, Curve, and Balancer projects, operating on an automated market maker (AMM) model, account for more than 90% of the market for decentralized exchanges. The annual revenue of Uniswap liquidity providers is $406 million. SushiSwap has this figure at around $228 million, while Balancer has $114 million. Let’s take a closer look at each project.
The first version of automated market maker Uniswap entered the market in November 2019. The platform allows anyone to deploy a liquidity pool consisting only of two pairs, one against any of ERC-20 tokens. Any trader in the ecosystem can contribute to liquidity. The platform boomed after the update in May 2020, when Uniswap launched its second version.
As we already mentioned, the price of the tokens is determined by the balance ratio between two tokens in the pool. The most common pairs are ETH/ERC-20 and DAI/ERC-20. If you want to find out more about the Uniswap platform, we’ve made a comprehensive guide on how it works.
Balancer is an automated market-making protocol launched in March 2020. The protocol operates on a model similar to that used by decentralized exchanges like Uniswap. It is a multichannel automated marketing protocol built on Ethereum.
Balancer works as an exchange and a liquidity pool. When you’re exchanging tokens, you choose the trading pair. The service gives you an expected price slippage in which you can define the additional limit. There are also plenty of pools to join, or you can start your own liquidity pool.
Balancer pools contain two or more tokens with arbitrary weight from the total value of the pool. Pools provide liquidity to the Balance protocol and, in return, charge traders a commission. Balancer has introduced its own governance tokens, called BALs, distributed to liquidity providers through liquidity mining.
Curve is a decentralized liquidity pool-based cryptocurrency exchange that runs on Ethereum. It is designed to serve two main purposes: to provide liquidity providers with additional income and highly efficient stablecoin trading. Curve supports DAI, USDC, BUSD, USDT, TUSD, SUSD, as well as tokenized BTC, and allows you to trade these pairs extremely quickly and efficiently.
The platform uses an algorithm specifically designed for stablecoins. It features low fees and minimal price slippage (you can even set the maximum slippage). yToken is a special yield aggregator token that allows you to find the one with the best interest rates among all pools. The disadvantage of this method is that several protocols are used at once, which means that the risk of vulnerability is higher.
When the user provides liquidity to the pool by depositing their tokens into it, they are automatically converted into several types of tokens, based on the balance needs of the pool. For example, you can deposit 1000 DAI and get 500 USDT, 324 USDC, 150 TUSD, and 26 DAI. These indicators change all the time as people trade or deposit/withdraw funds.
Kyber Network is an Ethereum-based protocol that allows instant exchange and conversion of tokens and cryptocurrencies using a high liquidity level. Kyber is similar to the 0x project but performs all the actions on the blockchain. Kyber Network provides a decentralized exchange on the blockchain without order books. It allows you to exchange digital assets at minimal cost instantly.
Kyber Network liquidity is provided through a dynamic reserve pool. The pool is formed by all reserve subjects of the system. Having multiple entities in a pool prevents monopolization and keeps exchange rates competitive.
When a user submits a request to complete a transaction, the Kyber smart contract conducts the transaction through a reserve entity, choosing the best rate for the user. The attraction of reserve entities avoids centralization and opens the door for the listing of low-volume tokens. External reserves can be used to deal with tokens that are not listed by Kyber.
We can’t definitely say whether AMMs are evil or good. However, there is a list of pros and cons to dot the i’s and cross the t’s.
The decentralized economy is developing by leaps and bounds. The automated market makers are perfected slowly over the past several years. Since DeFi has such popularity now, it creates a new wave of interest in AMMs. Overall, the technology, which allows people to trade and get rewards in decentralized and anonymous space, sounds attractive.
AMM projects are kicking the middleman that historically connected users and markets. The technology is replacing the data-keepers with lines of code. If the developers understand the necessity of analyzing the project and its smart contracts, the AMMs usage will be smooth and profitable.
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Author: By TeamMMG