Cryptocurrency exchanges

Crypto Derivative Volume Records All-Time High as Binance Dominates

Crypto Derivative Volume Records All-Time High as Binance Dominates

According to a report, the monthly CME future contract volume surged by 36.3% to record 203,867 contracts traded from July 2020. Binance was identified as the largest exchange based on the recorded volumes.

The crypto-based derivative products recorded an all-time high in August according to the monthly exchange review report published by CryptoCompare. The review which basically captures the changes in the exchanges’ metrics and the overall performance of the crypto exchange industry established that the top tier exchanges dominated in trading volume with the CME derivative volume surging In the month under review. 

Derivative was reported to comprise 40% of the total market shares as previously known, however, its volume recorded an incredible run to reach $711.7 billion, rising by 53.6% in August. In addition, there was a 49.6% increase in the total spot volume with $944.9 billion as reported by CryptoCompare.

According to the report, the monthly CME future contract volume surged by 36.3% to record 203,867 contracts traded from July 2020. The CME cryptocurrency derivative volume recorded $12.02 billion in August having surged by 55.7%. Derivative exchanges dominated in terms of trading volume with Binance recording $184.6 billion (up 74%). OKEx had $190.8 billion (up 69.1%) with Huobi following with $208.5 billion (up 44.7%) (order in terms jump). 

The crypto spot volume pulled an amazing performance with what was termed as “top tier exchanges” dominating the market. Volumes of top tier exchanges surged to $529 billion after rising by 58.3% from July. This is a representation of 64% of the total volume compared to its previous 60%. As reported by CryptoCompare, the lower tier volume recorded a 30.2% increase from July to reach $291 billion. 

Binance was identified as the largest exchange based on the recorded volumes. It had a trading volume of $124.9 billion (up 83%). Huobi had $65.0 billion tradings (up 176%) behind Binance. OKEx also reached $64.7 billion trading (up 47%). Coinbase was listed with $21.3 billion (up 101%) of trading volumes in August with Liquid recording $9.9 billion (52%). Binance, OKEx, and Huobi represented about 74% of the total volume among 15 exchanges. In July, these three exchanges showed 63% of the total volume. 

The report estimated that fee-charging exchanges recorded an increase in total volume traded by 50.13% since July with a total of $685 billion. Exchanges with Trans-Fee Mining implementation recorded 53.94% from July to a total of $125 billion in August. Crypto exchanges that charge traditional takers fees according to the report represented 84% compared to 82% (in July) in the total exchange volume. Those with the implementation of TFM represented below 16%. 

BTC trading into USD increased by 21% to 1.2 million, BTC with JPY rose by 26% to 1.12 million. Bitcoin trading into USDT was up by 16% to $6.25 million BTC compared to 5.41 million in July. The BTC/USDT pair recorded the most BTC traded into stablecoin or fiat with a proportion of the total volume of 65% in August compared to 66% in July according to the report. 

According to Constantine Tsavliris, the head of research at CryptoCompare, the August surge of Bitcoin from $9,200 to $12,400 was the underlying reason for the surge in crypto derivatives volume.

Altcoin News, Bitcoin News, Business News, Cryptocurrency news, Market News


Author: admin

New incentive programme for the Mettalex exchange

New incentive programme for the Mettalex exchange

The Mettalex exchange has announced the launch of a new incentive programme that will allow FET owners of to stake their tokens to earn the first batch of MTLX tokens. 

Mettalex is a decentralized platform for trading cryptocurrencies and commodity derivatives, powered by Starting from today it will start to reward FET token holders with a first pool of one million MTLX tokens to be distributed in the next 21 days, and with another million to be distributed in the future. 

The drip rate will be around 8.2 MTLX tokens per block, for a total of 120,960 blocks during the first phase.

MTLX has a maximum supply of 40 million tokens, of which 35 million will be allocated to reward FET owners over the next four years.

Initially, MTLX governance tokens will be used to vote on system parameters, such as the creation of new markets, foreign exchange fees, the percentage of pool spreads, and repurchase and lending rates from the liquidity pool. 

Thanks to this decentralized governance, MTLX token holders will have a say in network maintenance and the policies of the Mettalex ecosystem.

In addition, the decentralized exchange will also use a portion of the exchange fees earned on the platform to algorithmically repurchase MTLX tokens directly from the market.

On the Mettalex exchange, traders can take short or long positions on a range of reference assets, commodities and cryptocurrencies. Lenders can also provide liquidity to the smart contract and earn MTLX tokens using stablecoins such as USDT and USDC, or other more volatile assets in the future. 

The CEO and founder of Mettalex, Humayun Sheikh, said: 

“Mettalex is offering something that is not possible within traditional markets. On Mettalex, traders will be able to create tokenized spread contracts for some of the most in-demand commodities on the market with USD/BTC/ETH pairs. At launch, we will support spreads on traditional and digital commodities like compute cycle price, gas costs, cloud compute and more traditional commodities like steel and iron ore, gold and silver, lithium and cobalt, oil, and the stock market index”.


Author: By Marco Cavicchioli
– 8 Sep 2020

Ukraine Leads Global Crypto Adoption, Says Chainalysis

Ukraine Leads Global Crypto Adoption, Says Chainalysis

Developing countries are driving retail crypto adoption, and Ukraine is leading the way, according to a new report by blockchain analytics firm Chainalysis.

Ukraine, Russia and Venezuela are the top three countries for cryptocurrency adoption, Chainalysis said in its Global Cryptocurrency Adoption Index, published Tuesday as a part of the firm’s upcoming report on global trends in crypto usage.

The U.S. and China are still delivering the largest transaction volumes, but putting aside the largest “whale” crypto holders, Ukrainians, Russians and Venezuelans are the most active retail users of digital currencies, according to Chainalysis’ ranking. They are followed by China, Kenya and the U.S.

Chainalysis measured crypto adoption using on-chain cryptocurrency value received by a country, on-chain value transferred, number of on-chain cryptocurrency deposits and peer-to-peer exchange trade volume. The data was weighted by the purchasing power parity per capita and number of internet users in each country.

The list of “winners” might look surprising, but only at first glance, said Kim Grauer, head of research at Chainalysis. For example, Russia has a history of using e-payment services, Grauer explained. People are used to digital payments, so the transition to cryptocurrencies might be a bit more seamless.

Ukraine, for its part, has “a really tech-native population” she added, and both countries also have “a really industrious startup environment.” There is also more cybercrime activity in Eastern Europe than in other regions, which might add to the busy crypto market.

The patterns for crypto usage varies from country to country. Ukraine and Russia are actively using crypto to send money for business-to-business and cross-border transactions, avoiding cumbersome banking regulations. In Venezuela, people use crypto more for savings and peer-to-peer trading.

“People in Venezuela don’t necessarily want to go to cryptocurrencies because it’s interesting or a cool thing to do, but because they are looking for a stable source of value,” Grauer said. She added that there is also an active remittance market between Venezuela and Argentina.

In Russia, Venezuela and Ukraine, crypto adoption is driven more by retail investors, while in China and the U.S., the crypto whales are the biggest drivers of growth, Grauer said.

What future awaits cryptocurrencies?

“Looking at the share of the transfers greater than $100,000, we noticed that over the past year the share of the overall activity in North America that is professional has been growing,” she said.

The 2020 Global Crypto Adoption Index by Chainalysis

Out of the three nations, Ukraine may be the most surprising leader because the country largely flies under the radar of the global crypto community. Located in Eastern Europe and with a population of 42 million, the nation has both an unstable economy and tech-savvy citizens, which apparently is a good recipe for crypto use.

Ukraine’s Ministry of Digital Transformation said there are several reasons for the popularity of crypto among Ukrainians: a big blockchain developer community and tech-savvy population in general, cumbersome regulations for export and import transactions and the absence of the stock market in the country. All of this is encouraging people to try out digital assets, the Ministry said in a blog post.

Michael Chobanyan, founder of Ukraine’s first crypto exchange, Kuna, said small businesses, which are using crypto to circumnavigate foreign currency regulations, might be turning around up to $5 million worth of crypto every week, according to a loose estimate. They mostly pay for imports coming from Turkey and are using tether (USDT) in 90% of transactions, he added. 

There are many retail crypto investors in Ukraine, too, Chobanyan believes. Kuna sees about $800,000 worth of retail crypto trades daily, he said. And this is just a fraction of overall retail volume, given the popularity of exchanges like Binance and EXMO, as well as numerous cash over the counter dealers in the country. 

Retail investors are interested in crypto as there are not many other options for savings and passive income in Ukraine. The economy is small and there is no national stock market. Banks often fail and investing in real estate is too expensive for most people, Chobanyan said. 

Crypto, on the other hand, has a low barrier to entry, easier compliance requirements and is safer than just holding onto cash. 

Alex Bornyakov, the deputy minister for digital transformation of Ukraine, believes that individuals, not businesses, are the most active crypto users in the country. 

“They are using cryptocurrencies for small investments and trading,” he explained. 

This is an educated guess so far, he admits, as there is no official statistics for cryptocurrency usage in the country. 

Crypto, like U.S. dollars, is a hedge against the volatility of the national currency, Ukrainian hryvnia, and against the general instability of Ukraine’s political and economic situation, said Ukrainian Bitcoin Core developer Hennadii Stepanov, going by Hebasto.

“Our situation is similar to that in Iran and Venezuela,” he said, adding: “Unlike gold, bitcoin is available for everyone.”

Adoption is limited, however, said Gleb Naumenko, another Bitcoin Core dev with Ukrainian origins. 

“Many of my friends know somebody who invested [in crypto]. I see huge interest, but the technology is still lagging behind. It’s hard to use it, and that scares people away,” Naumenko said. 

According to Binance’s head for Russia and Ukraine, Gleb Kostarev, although Ukraine is not the biggest volume driver for Binance, it’s nonetheless one of the key markets for the exchange. The firm is constantly working on new fiat on-ramps for the Ukrainian hryvnia and is actively cooperating with the Ukrainian government on future crypto regulation, Kostarev added.

For both Ukraine and Russia, the COVID-19 pandemic became a driver for adoption, as the pandemic hit both economies hard, Kostarev said. Isolated at home, people turned to crypto as a new source of income.

“The macroeconomic situation in Ukraine remains complicated, and during the coronavirus pandemic it got even worse. The government is working on new ways to stimulate the economy, while the young population has to search for new sources of income. This is one of the key reasons for Ukraine’s interest for crypto,” Kostarev said.  

Kyrylo Chykhradze, product director for the analysis platform Crystal Blockchain, said Ukraine’s registered crypto businesses have processed only $300 million in bitcoin since 2015, a fraction of the $150 billion that passed through U.S. bitcoin markets over the same period.

However, the low numbers can be partly explained by the fact that Ukraine-based and Ukraine-oriented crypto enterprises often chose other jurisdictions to register, so officially they are not in Ukraine. 

“There is still a lack of legal grounding as of yet on the digital asset front, which has resulted in local crypto businesses targeting other locations (such as the U.K. or Estonia) to operate from,” Chykhradze said. He added that the efforts to put crypto businesses into the legal field by the government can change the situation in the future.

Quantifying crypto activity by country gets tricky, as individual bitcoin wallets aren’t marked with geographical locations. Chainalysis admits that geographic data is hard to get right if you only look at on-chain transactions, so the firm requested data directly from the global P2P trading platforms, namely LocalBitcoins and Paxful, and talked to experts on the ground, Grauer said.

To see activity in particular countries, Chainalysis mostly looked at web traffic on the crypto trading, merchant, gambling and other services using SimilarWeb, Grauer explained. If that data was not available, transaction data was analyzed using time zones, most popular fiat currency pairs, language options used and the location of the headquarters of the services. 

Chainalysis also weights the numbers against each country’s purchasing power parity so that the poorer countries with more volatile currencies still can rank high if they are active in retail crypto trades (transactions worth less than $10,000). This means the highest-ranking countries are not necessarily the ones with the largest crypto volumes. Rather, they are the countries where people put a larger share of their assets into cryptocurrency.

“Countries have different populations and different GDP, so if you’re just doing index without weights it’s all skewed towards China and the U.S.” Grauer said.  

A country’s position in the ranking is not defined by any single factor, Grauer said.

“Ukraine and Russia are not number one in any of the submetrics but they are in the top 19 by the [crypto] value received and the number of crypto deposits, and they perform well across the board,” she said.



Author: by Total Exchange

South Korean Police Raid Bithumb Crypto Exchange For Second Time in BXA Token Fraud Case

South Korean Police Raid Bithumb Crypto Exchange For Second Time in BXA Token Fraud Case

Bithumb, the largest cryptocurrency exchange in Korea has been raided for a second time in five days by the Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit in connection to the BXA token fraud allegations against its Chairman.

Following an initial raid on Bithumb headquarters in Seoul on Sept. 2 in connection with  fraud charges, South Korean police returned for an additional search and seizure at the crypto exchanges head office in Gangnam-gu on Sept. 7.

According to local publication Seoul Shinman, this time a police official was able to confirm that the latest search of the head office aims to provide evidence to support the allegation against Bithumb Korea and Bithumb Holdings Chairman, Lee Jung-hoon.

The allegations against the Chairman are in relation to a controversial token called BXA—issued by the Blockchain Exchange Alliance (BXA) and the Singapore-based BXA consortium.

The Blockchain Exchange Alliance was reportedly due to be taken over by a Singapore-based South Korean firm, but the deal fell through when the firm defaulted on payment. A condition of the takeover was an obligation for Bithumb to list the BXA token, which it never did following the default.

Ever since the failed takeover, the BXA token has plunged in value after raising over $24 million in its initial coin offering (ICO) which was heavily bought into by South Korean investors. The investors in South Korea believe that Bithumb failing to list the token makes the exchange responsible for their losses.

Lee Jung-hoon has since been accused of fraud by the investors who allege that the Bithumb Holding Chairman colluded with BK Group Chairman Kim Byung-gun to raise the $24 million and tank the project.



Author: News Bureau

First Mover: SushiSwap’s Billion-Dollar ‘Rug Pull’ Is Thriller to Crypto Geeks

First Mover: SushiSwap’s Billion-Dollar ‘Rug Pull’ Is Thriller to Crypto Geeks

Bitcoin was down early Tuesday, barely holding above the important psychological threshold of $10,000. 

Prices for the cryptocurrency, up 40% year to date, have held above $10,000 for more than six weeks. The digital-asset firm Diginex wrote in a newsletter post that “prices will need to regain $10,550 to settle the nerves of traders.” 

Related: Market Wrap: Bitcoin Hangs Around $10K; Locked DeFi Value Drops

On Wall Street, U.S. stock futures were lower, pulled by tech shares as traders returned from a long holiday weekend. The dollar strengthened in foreign-exchange markets and Treasury bond yields fell, indicating a reduced risk appetite, though gold was off. The British pound slipped on speculation that a “no-deal” Brexit looms.  

In a 2020 during which the fast-growing arena of decentralized finance, or DeFi, has produced a seemingly unending series of jaw-dropping, billion-dollar twists, the past few days’ saga of the market-making protocol SushiSwap is drawing comparisons to a thrilling caper flick.

The Bankless newsletter called it “the SushiSwap rug pull.” It was “one of “the most dramatic moments in DeFi this year,” according to The Defiant newsletter. Jay Hao, CEO of the cryptocurrency exchange OKEx, called it “one of those action-packed high-drama movies the likes of which crypto hasn’t witnessed in recent times.” 

Of course, all this is from the perspective of crypto geekdom, and it’s really just the latest tech-gone-wild iteration of the reliable human themes of invention, fear, greed, mania and panic. 

Related: What Is Yearn Finance? The DeFi Gateway Everyone Is Talking About

The project quickly attracted more than $1 billion of collateral with a technique known as “zombie mining,” The market value of the associated SUSHI tokens surged roughly 500-fold in a matter of days to more than $300 million.

And then on Saturday, SUSHI investors learned that Chef Nomi had unexpectedly cashed out of tokens in exchange for 37,400 ether (ETH) worth about $13 million. SUSHI prices crashed before recovering somewhat after Sam Bankman-Fried, CEO of the cryptocurrency exchange FTX, reportedly took control of the project. 

Bankman-Fried tweeted early Monday that “the great Sushi experiment” of migrating markets over from Uniswap will take place “one at a time, starting in 48 hours,” potentially setting up something of a sequel.

“If you’re in it for the wild gains, if you’re chasing clearly unsustainable percentage leaps, you have to be able to stomach the losses as well,” Hao wrote.

The episode is one of several prompting comparisons of DeFi to the 2017-18 initial coin offering (ICO) bubble, when little-known and barely-tested developers took advantage of surging prices for bitcoin and other cryptocurrencies to raise the equivalent of at least $12 billion.    

According to the website DeFi Market Cap, decentralized-finance applications, mainly focused on lending and trading businesses, now have a combined market value of about $14 billion.  

One key difference so far is DeFi does not appear to have penetrated the consciousness of individual investors, as happened during ICO boom. Amateur traders also have flocked recently in the stock market, embodied in the success of platforms like Robinhood.  

CoinDesk’s Omkar Godbole reported Tuesday that Google searches on the keyword “DeFi” register nowhere near the scale of “ICO” searches a couple years ago. 

“DeFi is an incrementally accretive and sustainable trend while ICOs were not,” according to Su Zhu, CEO of the Singapore-based fund management firm Three Arrows Capital. 

The SUSHI saga? Sustainable? Just don’t tell the Robinhood crowd about it.

Bitcoin’s recent drop from $12,400 to $10,000 has revived interest in short-term put options or bearish bets. 

  • The one-month put-call skew has crossed above zero, a sign of put options drawing higher demand than call options. 
  • In other words, investors are adding bets to position for a deeper price pullback, which could be seen if risk aversion grips traditional markets.
  • “Investors should be cognizant of movements in the stock market as a supplement to on-chain fundamentals in determining the expected behavior of BTC and crypto markets in general,” according to the blockchain intelligence firm Glassnode. 
  • The six-month skew continues to hover below zero. It shows investors remain confident about the cryptocurrency’s long-term price prospects.

– Omkar Godbole

Ether (ETH): Until next phase of Ethereum 2.0 development, “one-way-trip ” means traders can transfer ether onto the new network but can’t transfer it back out. 

Bitcoin (BTC): LedgerX announces launch of bitcoin mini futures representing 1/100th bitcoin, listing two months and two quarters, fully collateralized with cash or bitcoin and physically settled. 

Chainlink (LINK): At least nine node operators suffered attack Sunday, draining about 700 ETH from wallets, The Block reports. 

Wrapped Bitcoin (wBTC): One trading firm, Alameda Research, associated with the FTX cryptocurrency exchange, has accumulated more than 14,000 of wrapped bitcoin, roughly 70% of the supply minted in August. 

Bitumb exchange’s offices raided again by Korean authorities, newspaper reports (CoinDesk)

Bitfinex invests in derivatives platform LN Markets, based on Lightning Network (CoinDesk)

Binance unveils new product for ‘yield farming’ crypto assets (CoinDesk)

August bitcoin rally pushed crypto derivative volumes up 54% to record of more than $710 million, report shows. (CoinDesk)

Crypto-to-fiat convertibility holds key to next leap in payments (Hacker Noon)

Using your next stimulus check to buy bitcoin could prove disastrous (Forbes)

TradeBlock analysis shows fees on decentralized exchanges only competitive with centralized exchanges on large transactions (Trade Block):

Shares of Japan’s SoftBank tumble after $4B “Nasdaq whale” mystery revealed (Financial Times)

Gold-price rally stretches limits of insurance against vault heists (Bloomberg)

Lawmakers tackle spending deadline, look to revive coronavirus aid talks (WSJ)

Former Fed Governor Warsh expects U.S. central bank to “expand significantly the scale, scope and duration of its asset purchases” if economy improves (WSJ)

As Chinese tourists stay home amid coronavirus, demand dries up for currency to travel abroad, helping to strengthen yuan (Pantheon):

  • First Mover: SushiSwap’s Billion-Dollar ‘Rug Pull’ Is Thriller to Crypto Geeks
  • First Mover: SushiSwap’s Billion-Dollar ‘Rug Pull’ Is Thriller to Crypto Geeks


Author: Bradley Keoun, Omkar Godbole and Sebastian Sinclair

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