Bitmex arrests, KuCoin hack, ETHOnline & more!
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This week seemed to come straight from a draconian, dystopian movie. KuCoin hacked for $150m+. BitMEX co-founder arrested & massive charges filed against all owners by the CFTC.
Whew.
ETHOnline is happening! That’s some better news.
Let’s see…DeFi coins are down again. REKT.
We are seeing some stress tests of the entire crypto ecosystem right now. Who knows what will follow. Todays Full Send Friday is written by Robbie the co-host of DeFi by Design & a good friend of mine since university.
Enjoy!
– Andy
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Full Send Friday: Week In Review
Welcome to another wild week in the Wild West of DeFi. This week was action packed to say the least.
The ongoing drama behind the Bitmex conspiracy charge and Trump’s positive Corona test sent shockwaves across markets. Here we discuss these recent events and the implication we saw on Price Action — Have a look:
The Bitmex arrests came as an absolute shock. The US Federal Court system has indicted Arthur Hayes along with two other owners of Bitmex’s holding company, HDR Global Trading Limited. The charges against the Bitmex founders include ‘conspiracy to violate the Bank Secrecy Act’.
Now, it’s no doubt that Bitmex pushed the bounds of the regulation they had to follow. However, it is questionable that law enforcement has chosen to bring these charges against a derivatives exchange in this nature. If you recall, there were no charges brought against US banks during the ‘08 financial crisis despite a similar derivatives scandal. This leads us to believe that Bitmex could be heavily fined but may continue to exist and offer similar products after resolving these charges.
The price of BTC and other major altcoins remains relatively unchanged which speaks to the recent resilience in BTC to remain over $10,000.
More on the price action side of things…
Gold/BTC breaking correlation: Gold and Bitcoin seem to be breaking their correlation. This comes as a result of the recent news that Donald Trump tested positive for CoronaVirus. When this test result came out, BTC saw a spike downwards while Gold spiked upwards.
On the prediction market side of DeFi, we saw the $TRUMP2020 coin rise through the ranks. This is particularly interesting for political degenerates since Augur was one of the few places that did not pause or shut down their prediction market when the Trump was said to be Corona positive.
In tougher news, the popular Asia based exchange, KuCoin, was hacked for somewhere between $150MM-$250MM. Hacks are a regular occurrence when it comes to crypto, but there is precedent from Mt. Gox that regulators are concerned with returning stolen funds. This is a long and thorough process so we hope to see coins returned to their rightful owners very soon.
The mindset among the productive DeFi protocols remains the same: Build, Build, and Build.
The first step in ‘Aaveonomics’ will happen this evening around 22:36 CET. The migration from $LEND → $AAVE will allow token holders to stake their $AAVE tokens in the Safety Module — where they can earn Safety Incentives for helping protect the system from a shortfall.
MakerDao adds Loopring $LRC, Compound $COMP, and Chainlink $LINK to their Maker Vaults. This means Maker users can now use these coins as collateral. Remember more Total Value Locked in collateral (TVL) helps stabilize the $DAI price.
One of the largest ETH hackathons is underway. There is plenty of inspiration and innovation happening as we speak in the ETHOnline community!
That about wraps us up for this week! Enjoy your weekend degens 🙂
????DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. We are strictly an educational content platform, nothing we offer is financial advice. Please refer to our blog for more on mitigating your downside when using these protocols!
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Check out some previous interviews:
Last week in review:
Master It Monday: Using Dune Analytics To Identify Trends
Tap In Tuesday: NFTs Explained
Thursday: DeFi By Design EP #8: Community, Governace & Sustainability
Full Send Friday: Week In Review
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