GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest

Coming every Saturday, Hoodler Digest It will help you keep track of every important news that happened this week. Best (and worst) quotes, adoption highlights and regulation, leading currencies, forecasts and much more – a week on Cointelegraph in one link.

The most important news this week

Rob from the poor and give to the rich? Robinhood is provoking angry reactions after trading restrictions

The volatility in the stock markets this week has made some recent bitcoin price swings look boring. It’s all due to an exciting confrontation between a Reddit group called r / Wallstreetbets and short selling hedge funds that Reddit has taken on its own game.

Day traders helped by GameStop stock Rushes force From $ 17.25 January 4 to its highest 483 dollars this week – a 2700% The rise of a struggling online retailer. This caused billions of dollars in losses to established investors caught in short-term pressures.

But Robinhood It caused controversy when trades were restricted On GME stocks, as well as other r / Wallstreetbets targets, including AMC Entertainment, BlackBerry, and Nokia. The investment app, which has proven popular with millennials, has been accused of preventing ordinary investors from resisting hedge funds that manipulate the market.

The Securities and Exchange Commission is now look in Robinhood has handled GameStop trading with Congress Announcement of sessions In the practice of short selling.

All this drama can make the crypto assets a sharper focus. Industry executives described the fiasco as “a clear indication of the extent of the meltdown.” Mainly forged Traditional financial system. “

Bitcoin Ups $ 5,000 in Minutes – BTC hits $ 38,000 after Elon Musk’s Dogecoin transaction

The GameStop saga can be linked to many other top stories this week. Tesla CEO Elon Musk was among those cheering for r / Wallstreetbets, and this week he showed resonant support for cryptocurrencies as an alternative.

The richest man in the world Quietly added “#bitcoin” on his Twitter bio … as BTC rises by more than 5000 dollars Within minutes as a result. This helped turn the fortunes of the world’s largest cryptocurrency, as it was at risk of losing support at $ 30,000.

Unfortunately, the price hike was short-lived. In the 24 hours that followed, BTC is back towards $ 33,000 – Leaving 34,500 dollars As an important resistance area, it must be broken if there is any chance to maintain the bullish momentum.

Michael Van de Pope, analyst at Cointelegraph Markets says the critical level to watch now is the level 30 thousand dollars Area. “If this fails to sustain support (after already many tests), I would expect a drop of around $ 25,000 and the 21-week moving average,” he wrote.

Dogecoin has been ranked among the top 10 crypto assets for the first time since 2015

Another symptom of the chaos this week was the high rate of circulation of Dogecoin 900% In less than two days. The meme coin has been unleashed well and for real, going from $ 0.0078 to $ 0.078 and quadrupling its all-time high.

The DOGE’s sudden parabola was traced back to a regulated pump implemented by r / Wallstreetbets, and also ended up with Robinhood. Instant deposit suspension For cryptocurrency purchases due to “abnormal market conditions”.

At one pointDOGE briefly overtook Bitcoin in daily volumes on Binance – as its market value jumped ahead of Litecoin, Bitcoin Cash and Stellar. Tweets about Dogecoin also rose 1,787%, With 89991 Posts about DOGE in just 24 hours.

Unfortunately, Dog bite And merchants were left licking their wounds after a ferocious dump. Prices fell by 45.82% In a day, leaving many to regret Jupiter. On Twitter, RyanJK captured the mood by writing: “Doge does what she does best, welcomes people in cryptocurrency with a big slap in the face.”

Ripple claims to know why Ether is insecure because the XRP defense is hopeless

Ripple Labs has submitted its response to the SEC over allegations that XRP is a security – and the company appears poised to draw the rest of the industry into its legal battle.

The beleaguered company filed a Freedom of Information Act request requesting information “about how the Securities and Exchange Commission defines Ether as unsecured.”

SEC representatives said that although the pre-sale of Ether may have been a stock offering at the time, ETH is now sufficiently decentralized and qualifies as a commodity.

Ripple was casting a kitchen sink in an attempt to stave off the SEC issue, which had caused the price of the XRP to collapse, with several US exchanges writing off the token. Oddly, however, the alt currency got a boost over the weekend, as prices rose by 30%.

Coinbase reveals plans for a live stock listing

Coinbase has announced plans to pursue the direct listing of its Class A common stock, rather than dumping it in an initial public offering.

This means that the major cryptocurrency exchange will not offer new shares to investors, and instead will sell existing shares to the public.

Some of the benefits of coordination for those with equity in the company can include the ability to sell without restrictions and create “instant billionaires.”

When Coinbase first announced its intention to go public on December 17th, figures from Messari indicated the exchange could be of value. $ 28 billion After launching it to the public.

Coinbase Pro has a history of suffering from crashes and other issues during times of heavy traffic, and once again, users reported experiencing difficulties at some point this week.

As Ryan Broderick wrote on Twitter:The GameStop effect has completely upended the crypto market now. A massive infusion of bitcoin in dollars led by Twitter is happening today, and Coinbase – essentially an entry-level cryptocurrency trading Robinhood – has frozen US dollar purchases. I just tested it myself. “

Winners and losers

At the end of the week, Bitcoin is in $ 34,293.71, Ether in $ 1,365.72 USD And XRP in $ 0.38. Total market cap at $ 1,012,676,711,938.

Among the top 100 cryptocurrencies, the top three winners of the week are PhantomAnd the Dogecoin And the Voyager code. The three biggest losers from altcoins during the week were Enjin coinAnd the Decentraland And the NXM.

For more information on crypto pricing, be sure to read on Cointelegraph Market Analysis.

Most memorable quotes

“With the upcoming Chinese New Year holidays, we are expecting so [Bitcoin] Selling pressure to continue in the short term, providing good entry opportunities for market participants. “

Leonard New, Head of Research at Stack Funds

“Has Doge ever been to the dollar?”

Chairman of the MSB Board of DirectorsA satirical Twitter account

For now, the reality of institutional demand that will support the $ 35,000 or even $ 30,000 price tag is absent. I don’t think the investor base is large enough and deep enough at the moment to support this kind of valuation. “

Scott Minerd, Guggenheim CIO

“If you use a mobile crypto wallet on an iOS device, be sure to update the iOS as soon as possible!”

Kim’s house, Coinbase chief engineer

“If you don’t like allowances, buy GME and AMC $. If you don’t like bankers, buy #Bitcoin.”

Cameron WinklevossOne of the founders of Gemini

“People have a maximum interest at $ 40,000 per # Bitcoin, but the interest is nearly zero at $ 30,000 per Bitcoin. Interesting.”

Michael Van de Pope, Cointelegraph Market Analyst

“Gamestonk !!”

Elon Musk, Tesla CEO

Are cryptocurrencies here to stay? Digital Innovation in Payments – Yes. Have we come to what I would call the design, governance and arrangements for a permanent digital currency? No, I don’t think we’re there yet. “

Andrew BaileyGovernor of the Bank of England

“If I was organized, I would be kind of hyperventilating upon success [Bitcoin] For the time being, I will arm myself to deal with it. “

Lloyd Blankfein, CEO of Goldman Sachs All

Expect the week

Guggenheim says the institutional demand isn’t enough to keep BTC above $ 30,000

Guggenheim’s Scott Minerd came out with another bleak view of Bitcoin’s price, citing not enough institutional demand to sustain the asset. 30 thousand dollars.

Speaking to Bloomberg, the chief investment officer said: For now, the reality of institutional demand that will support the $ 35,000 or even $ 30,000 price tag is absent. I don’t think the investor base is large enough and deep enough at the moment to support this kind of valuation. “

Minier also believes that the downward pressure has a lot to go, stating that “it is not uncommon to see such pressures”.

On January 20, Maynard told CNBC that he expects prices to return to $ 20,000. The last time Bitcoin fell by more than half was in March 2020, when it dropped from just over $ 10,000 to under $ 5,000 in just three weeks.

FUD week

Apple is updating iOS to fix crypto wallet security holes

Apple released new security updates to its mobile operating system after the iPhone maker discovered vulnerabilities that could put cryptocurrency wallets at risk.

The security updates released on Tuesday affect iOS 14.4 and iPadOS 14.4. The vulnerabilities reportedly allowed hackers to remotely access the target system, thus exposing the user’s wallet to cryptocurrencies.

Coinbase chief engineer Pete Kim issued this warning: “If you use a mobile crypto wallet on an iOS device, be sure to update the iOS as soon as possible!”

CipherTrace said crypto crimes are down 57% in 2020, but DeFi hacks are up

Crime targeting the cryptocurrency sector fell by more than half in 2020, according to blockchain security firm CipherTrace.

Overall losses decreased from cryptocurrency theft, piracy and fraud 57% In 2020 to $ 1.9 billionThis is mainly due to improved security systems – but not all of the news is good.

The past year has also seen an increase in crime related to decentralized financing, with the majority of incidents being “pulling the rug”. This is where the token is artificially inflated and inflated, as innovators and early investors pull the plug after the pump, leaving the latecomers in the pocket.

The CipherTrace report warned about that 50% Of all the encrypted hacks it has been linked to DeFi protocols, with 99% Of the volume of major fraud operations in the second half of 2020 as a result of rug withdrawals.

Bank of England Governor: Today’s cryptocurrencies are doomed to failure in the long run

Bank of England Governor Andrew Bailey has warned that the current generation of crypto assets lacks the design and structure needed to ensure long-term survival.

Speaking during a session of the World Economic Forum, he said: Are cryptocurrencies here to stay? Digital Innovation in Payments – Yes. Have we come to what I would call the design, governance and arrangements for a permanent digital currency? No, I don’t think we’re there yet. ”

Bailey also noted that the levels of transaction privacy provided by crypto assets are a concern among regulators.

Best Cointelegraph Features

Bitcoin Risk: Has BTC Matured into a Safe Investment Game?

Institutional investors have reached the cryptocurrency table, but does that mean Bitcoin is now a safe investment?

DOGE Rising Prices: The Power of Memes and Social Media on Full Screen

Dogecoin, the quintessential cryptocurrency, is being withdrawn by another social media hype.

Zombies are not welcome: The original alt currencies lose ground to newcomers from DeFi

With DeFi dominating the cryptosphere, will the zombie projects remain dead after the big re-pricing?

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