Crypto News Headlines (24-Aug-2022)

Ether (ETH) proponents would like all price indicators to flash bullish signals as Ethereum’s long-pending upgrade, dubbed “the Merge,” nears.

The futures market, however, has slipped into backwardation, an abnormal condition in which futures trade below spot prices, indicating expectations the cryptocurrency will weaken in coming months. At press time, one-month ether futures listed on major exchanges traded at an annualized discount of 8% to 10% while the three-month futures traded at a discount of around 5%, according to data tracked by analytics firm Skew.

The condition could be short-lived, some observers say, and futures will probably flip back to trading at a premium – a situation known as contango – after the upgrade. That’s the usual market position, which reflects the time value of money. The merge, slated to happen in mid-September, will combine Ethereum’s current proof-of-work (PoW) blockchain with the proof-of-stake (PoS) Beacon chain that went live in December 2020. The change is likely to reduce supply of the cryptocurrency, providing an extra boost to the price.

While many neobanks and traditional private banks are launching crypto investment services as part of their portfolio to keep customers using their services, others are still on the sidelines. Bradesco, the second biggest bank in Brazil and Latam in terms of assets, with more than 70 million customers, is still not interested in the cryptocurrency market.

Bradesco CEO Octavio de Lazari Junior issued his take on cryptocurrency and how he believes these investments will evolve in the country. For de Lazari Junior, The cryptocurrency market is still too small, with dangerous characteristics for the investors interested in putting funds in it. About this, he stated:

Cryptocurrencies … are investments that are not tangible and are riskier, with people knowing about the risk they are taking and may want. For me, it will be a very small market.

Furthermore, he stated that while the company has no plans to enter the cryptocurrency market today, in the future, things might change. However, he advised that if any of its customers want to engage in cryptocurrency trading they might do it through Agora, its investment arm.

The Australian Securities and Investments Commission (ASIC) Chair Joseph Longo has made his thoughts on crypto investments clear: It’s “not my job to be a crypto cheerleader.”

During a Committee for Economic Development of Australia luncheon on Tuesday, Longo said that crypto is a “financial innovation full of promise, celebrity status, and volatility,” noting the differences between the benefits of blockchain and the volatility of crypto and how the two should not be confused with one another.

The ASIC is Australia’s equivalent to the United States SEC, regulating the country’s financial sector and protecting consumers. And with such a fast-growing population of crypto investors down under, the regulator is bringing renewed scrutiny to the industry.

Celsius Network served its former Investment manager, Jason Stone and KeyFi Inc., with a suit claiming he took advantage of his position to steal assets worth millions of dollars for personal profit.

The suit, filed in the United States Bankruptcy Court in the southern district of New York, is seeking disgorgement of millions of dollars in assets and return of company property that the ex-money manager allegedly took off with after leaving the company.

“The defendants stole millions of dollars in coins from Celsius “wallets” – blockchain addresses where coins and other digital assets can be stored – by transferring them to wallets that, upon information and belief, are controlled by the Defendants,” the bankrupt lender alleged in the suit.

Celsius accuses ex-manager of broad day theft

Celsius also claims that Stone used its cryptocurrencies to purchase non-fungible tokens and then stole those NFTs by transferring them to wallets that, upon information and belief, it owns or controls, and then refused to account for these decisions while running the office.

In the aftermath of the first officially reported crypto payment in the sanctioned country’s Two prominent YouTube content creators are set to lock horns in a legal battle over a cryptocurrency video allegedly promoting a project that ended up being a scam.

Bitboy Crypto, a YouTube channel founded by Ben Armstrong, produces a variety of content focused on cryptocurrency news, projects and tokens and trading advice. The channel has been active since February 2018 and has over 1.4 million subscribers.

The channel is known for its news pieces and trading-focused videos with headlines like Top 3 Coins To Outperform Ethereum! (Strong Short Term Play)typifying the type of content disseminated to viewers.

While these videos purport to offer trading advice, the channel has a disclaimer clearly stating that Armstrong is not “a professional advisor in business areas involving finance, cryptocurrency, taxation, securities and commodities trading, or the practice of law.” The channel’s content states that it is meant for general information purposes only.

Bitcoin kiosk company Coinme on Wednesday said it now sells ETH, MATIC, CHAIN, DOGE, LTC and XLM from its 10,000 grocery store kiosks.

Coinme’s integration of the six additional cryptocurrencies offers users greater freedom to interact with different tokens beyond Bitcoin, CEO Neil Bergquist said. Where some users may purchase ETH to buy an NFT, they can also purchase XLM to send across borders, its primary use case, all at one supermarket kiosk.

“People are attracted to different coins for different reasons, whether that’s a store of value or a medium of exchange,” Bergquist said. “Our position is to provide safe and secure access to digital currencies, and our customers can use them how they like to use them in a safe environment.”

The Security Service of Ukraine (SBU) has for the first time implemented a mechanism to curb fundraising through cryptocurrency for the troops fighting on the Russian side in the ongoing hostilities in the country. The conflict escalated into a full-scale war when the Russian army crossed the Ukrainian border in late February in what Moscow calls a “special military operation” in support of the pro-Russian breakaway regions of Luhansk and Donetsk.

In a press release on Tuesday, the SBU announced that a crypto wallet operated by a citizen of the Russian Federation and used to sponsor Russia’s military effort in Ukraine has been blocked. The man, who presented himself as a volunteer, has been gathering money for the needs of the Russian forces since the start of the invasion.

The Ontario Securities Commission (OSC) today issued an alert flagging 13 companies that “are not registered to deal or advise in securities in Ontario,” including the Seychelles-based MEK Global Limited and the Singapore-incorporated PhoenixFin Pte. Ltd., both of which collectively make Kucoin.

The OSC’s new warning against Kucoin is the second this month. It asks investors to report any approaches by the flagged firms to the OSC, arguing that unregistered companies may pose significant consumer risks.

In a courtroom victory back in June, the OSC successfully barred Kucoin from operating in Ontario and fined it just over $1.6 million for failing to register as a securities provider before the deadline of April 19, 2021, despite continuing to operate as an exchange.

Bitcoin has been trading inside an ascending parallel channel since June 18, when it reached a low of $17,622. Ascending parallel channels usually contain corrective movements. So, an eventual breakdown from it would seem to be the most likely scenario.

Additionally, Bitcoin is trading in the lower portion of this channel, very close to its support line. This increases the chance that the movement is corrective and a breakdown will occur.

Corresponding RSI

The six-hour RSI is giving a bullish reading, since it has moved outside of its oversold territory. The previous time this occurred (green icon), it led to a significant upward movement in the price.

While the RSI has created a higher low, the price has done the same, thus there is no bullish divergence present. So, whether BTC manages to move above the midline of the channel or breaks down below its support line will likely determine the direction of the trend.

Australia’s financial regulator, Australia’s Securities and Investments Commission (ASIC) has pledged to put crypto assets and decentralized finance (DeFi) firmly in its sights over the next four years.

According to ASIC’s newly released “Corporate Plan” released on Tuesday, the financial regulator said it will be focusing on “digitally enabled misconducts” as “emerging technologies and products change our financial ecosystem” as part of its four-year strategic plan that stretches to 2026.

Joe Longo, chair of ASIC said the regulator would be focusing in particular on scams and crypto-assets.

“Our regulatory environment is changing and evolving — climate risk, our aging population, emerging data and digital technologies, and significant volatility in the crypto-assets market are all having a transformational impact.”