Connect with us

Cryptocurrency

Hodlnaut news: Company warned of liquidation risk due to Ethereum update

letizo News

Published

on

Hodlnaut withdrawal fees

Cryptocurrency lender Hodlnaut, which stopped withdrawing customer funds due to financial problems, could suffer additional losses due to the upcoming Ethereum update. Hodlnaut’s new interim management team disclosed this in a document.

According to the audit, most of the assets are hosted on decentralized finance (DeFi) platforms. Which ones, it did not disclose. However, the new management admits that Ethereum’s move to a Proof-of-Stake (Proof-of-Stake) algorithm could lead to increased volatility. Such a spike could negatively impact open positions, effectively leading to their liquidation.

One solution Hodlnaut called the withdrawal of assets from smart contracts, but acknowledged that it could lead to “material losses.” The company did not specify the amount of assets placed on DeFi-protocols.

As a reminder, Hodlnaut stopped services to customers in early August, citing a need to “stabilize liquidity.” The company is still unable to give an exact date for resuming cryptocurrency withdrawals. Since Hodlnaut withdrawal fees are very low, users are baffled by what is happening. 

In late August, a court ruled that Hodlnaut will now be managed by interim executives from consulting firm EY Corporate Advisors. The company, meanwhile, insisted that an employee of another consulting firm, Kairos Corporate Advisory, take over management of the firm.

Later it became known that law enforcement authorities in Singapore demanded from Hodlnaut $127 million in USDTand USDC. This was reported in a Hodlnaut post on the official website, but the material was later removed for unknown reasons. In addition to the law enforcement claims, Hodlnaut is also facing a $200 million financial loss on a corporate account.

Previously, we reported that experts had named the exact timeline for the PoS update to Ethereum.

Cryptocurrency

Cardano officially announced the imminent launch of Cardano stablecoin Djed

letizo News

Published

on

cardano stablecoin djed

On January 25, the COTI network announced that Cardano-developed stablecoin Djed will launch next week. The announcement did not include a specific Djed stablecoin release date, but generally confirmed previous Cardano notices that the stablecoin would be introduced to the cryptocurrency community by the end of January 2023:

According to developers, the only technical reason for the launch delay is the chain index synchronization process. They specified that this process could take 14 days, with it having been started “a week ago and is expected to be completed next week.” Accordingly, Cardano stands a good chance of meeting its deadline and launching Djed by the end of January.

The announcement also says that DJED and its balancing coin SHEN will be listed on the Bitrue exchange. This Singapore-based exchange has already officially confirmed its readiness to list the new stablecoin:

Also, Minswap, the leading decentralized exchange (DEX) in the Cardano ecosystem, has already announced the creation of two pools (ADA/DJED and ADA/SHEN) for the new tokens starting next week.

As the developers promise, the amount of overcollateralization of stablecoin will be 400% – 800%. Thus, “it will have 4-8 times more base value behind it compared to the total amount of Djed coins issued.”

Will it help the ADA exchange rate

Amid news of the imminent launch of a new stablecoin in the ecosystem, the Cardano (ADA) exchange rate has been showing strong gains lately. However, the token came under pressure this morning during the Asian trading session.

ADA marked an 11-week high of $0.384 on January 22, but is pulling back today along with the entire crypto market. At the time of writing, its intraday drawdown was about 5.7% and it was trading around $0.36. However, inside the week, the coin continues to stay in the green zone (about 3.5% at the time of writing).

The current pullback could be a convenient opportunity for Cardano and ADA enthusiasts to enter the market at profitable levels ahead of Djed’s imminent release.

We previously reported that the Wall Street Giants were among the lenders to FTX.

Continue Reading

Cryptocurrency

Former Chancellor of the Exchequer to head a UK cryptocurrency company. Is cryptocurrency regulated in the UK?

letizo News

Published

on

is cryptocurrency regulated in the uk

Former UK Chancellor of the Exchequer Philip Hammond has become head at copper.co, a provider of institutional solutions for storing and trading digital assets. Is cryptocurrency regulated in the UK?

Hammond has served as a senior advisor to Copper since October 2021. During that time, he provided strategic advice to the company’s team as the firm grew significantly and expanded its operations and services worldwide. Since he joined the company, its staff has grown from 50 to more than 300 people and revenues have doubled.

“I was honored to benefit from Lord Hammond’s strategic experience based on his successful career in politics and business. I am very pleased that he has agreed to become chairman of Copper,” said Copper CEO Dmitry Tokarev.

He said Hammond, in particular, will focus on combining traditional finance with distributed ledger technology.

“I’ve really enjoyed working with Copper, a company that pioneered digital asset investment technology and is increasingly becoming a leading option for global financial institutions to trade and protect their digital assets,” Hammond said.

Is cryptocurrency legal in the UK?

According to Hammond, the UK now needs to accelerate the creation of a better regulatory regime for digital assets, as Switzerland and the EU are already well ahead of the United Kingdom in the development of the cryptosphere. He believes that the U.K. financial services sector should use distributed ledger technology as a key part of its strategy to remain a major global financial center after Brexit. Should we expect bitcoin and other cryptocurrencies to be legalized in the UK?

The U.K. set its sights on the cryptosphere a few years ago. Since then, the UK has introduced a lot of initiatives aimed at regulating and developing crypto. Among the latest key changes is the extension of tax breaks for digital assets. British authorities intend to extend investment managers’ exemption rights for crypto-assets, making it easier to include them in portfolios of foreign funds managed in the UK without the risk of taxation. Also, the UK Central Bank has begun preparations for the issuance of the state digital currency (CBDC).

Earlier, we reported that the SEC began inspecting the holdings of cryptocurrency by investment advisors.

Continue Reading

Cryptocurrency

Realized bitcoin yields are back in the green zone: should we expect a move towards $24,000 amid high bitcoin yields?

letizo News

Published

on

best bitcoin yield

The new year in the crypto market started with an impressive rally and bitcoin’s realized yield returned to the green zone. Let’s examine whether BTC will continue to move towards the next resistance level on the back of higher bitcoin yields, or whether it was a bull trap.

Bitcoin’s key metrics have strengthened considerably, with a prominent PlanB analyst reporting that we are seeing BTC yields turning positive again recently. This metric measures the actual profit made during the holding period of an asset.

According to Woo Charts, bitcoin’s selling price is currently at $19,785. BTC surpassed that level on January 13 and has been trading well above it ever since.

The next frontier in the asset’s path is the 200-week moving average at $24,685. This metric is traditionally an indicator of the bottom of the bear market, and fixing above it will confirm the uptrend.

Market sentiment has shifted to positive

Moreover, market sentiment has also improved, with the BTC Fear and Greed Index entering the “greedy” zone. This is the highest since the end of March 2022.

Capriole Fund founder Charles Edwards commented on Twitter:

“Many people thought the collapse of FTX would end the crypto market. But bitcoin always comes back stronger than ever after the purge of bad players. Nothing will stop the inexorable pace of our industry.”

What to expect from the bitcoin price

At the time of publication, BTC was trading at $22,930. The asset has been developing in this area for almost a week now.

Bitcoin’s next target is $24,400, a price we last saw in August 2022. If resistance is broken through, there won’t be many obstacles left on the way to $30,000.

We previously reported that Polygon beat Ethereum and MATIC pushed Solana out of the top 10 cryptocurrencies.

Continue Reading

Trending

©2021-2023 Letizo All Rights Reserved