CFTC charges BitMEX, Ethereum might not be ready for DeFi, and more!
Last week’s news was very negative for the cryptocurrency market. Despite this, there is a lot of positive things to look ahead.
CFTC Charges BitMEX
The United States Commodity Futures Trading Commission (CFTC) charged BitMEX with operating an unregistered trading platform and violating Anti-Money Laundering regulations. The individuals charged include Arthur Hayes, CEO of BitMEX, as well as Ben Delo and Samuel Reed.
Bitcoin’s price action and sentiment might be affected by the news and following updates since BitMEX is the biggest leveraged trading platform in the cryptocurrency industry. Open Interest in BitMEX declined about 16% after the news released as traders closed their positions and withdrew their money from the exchange. Despite criminal charges from the DOJ and at least one arrest of its leadership, Bitmex denies the allegations and promises to continue operating as usual.
KuCoin Identifies Hackers
On October 3rd, KuCoin CEO Johnny Lyu tweeted that KuCoin had substantial proof that would identify the hackers responsible for the original attack. Additionally, KuCoin has managed to obtain back another $64 million in assets from suspicious public addresses with the help of industry partners, bringing the total value of the recovered assets to $204 million.
In previous webinars, I have talked about the advantages and disadvantages of storing your crypto in exchanges. This case has proven that exchanges are adapting to these kinds of attacks as they are starting to form partnerships that dismantle the effect of the hacks. In terms of security, these partnerships in combination with insurance funds, make a more positive case for storing crypto on exchanges.
Ethereum is Not Ready for DeFi
Martin Froehler, the founder of crypto trading platform Morpher, told Cointelegraph that even though Ethereum is perhaps the best platform in the crypto industry, its capabilities are still not good enough in order to support DeFi adoption. It is important to remember that Ethereum 2.0 should improve performance issues, but high gas prices may scare off new users.
Even though Ethereum is not the only platform available for DeFi, it is the most decentralised and the most supported by developers. Competitors like Cardano, EOS and others, will have to focus more on scalability issues should they want to host the biggest market share of DeFi.
2.5 Million Bitcoin Left to Mine
Recently, the Bitcoin network passed the 18.5 million Bitcoin mark. This means that there is less than 2.5 million Bitcoin left, which is equivalent to about 11.9% of the total Bitcoin to be generated. ChartBTC pointed out that half of the remaining 2.5 million Bitcoin will be mined within the next four years. Due to the halvings, the last Bitcoin is not expected to be mined until 2140.
This news is a reminder of the potential price projections that rely solely on supply and demand. Bitcoin’s supply is reduced with time and if the demand increases more exponential moves could be seen.
More about the author:
Patrick Maldonado is a Cryptocurrency Trader & Market Analyst at Alphachain Capital.