Breaking Crypto Daily News
Bitcoin Options Data Suggests Bearish Sentiment Among Investors
Activity on bitcoin (BTC) options suggests rising bearish sentiment among investors as the asset ranges between the $29,000 and $30,000 price levels.
Bitcoin dropped to nearly $24,000 in the past week amid systemic risks within the crypto ecosystem and inflation fears in the broader market. The asset has slid for seven straight weeks as of Friday.
The asset’s price movements have been highly correlated to the U.S. markets in the past few months, with poor earnings reports and hawkish comments from the Federal Reserve having an impact on bitcoin prices.
Investors are placing bets accordingly.
Put/call ratios for bitcoin open interest hit a 12-month high of 0.72 yesterday, research firm Delphi said in a note Friday, adding that the data indicated “bearish sentiment among investors.” Similar ratio levels were reached last May.
“The put/call ratio measures the amount of put buying relative to calls,” Delphi analysts explained in the note. “A high put/call ratio indicates that investors are speculating whether bitcoin will continue to sell off, or it could mean investors are hedging their portfolios against a downward move.” www.coindesk.com
PizzaDAO to host world’s biggest pizza party on May 22 to commemorate first BTC purchase
pizzaDAO is sponsoring more than 100 local pizzerias from 75 countries to give away free pizza to celebrate Bitcoin Pizza Day on May 22.
PizzaDAO will use the revenue from its Rare Pizzas project to fund the event. The Rare Pizzas collection includes 10,000 generative baked pizza NFTs created by more than 300 topping artists worldwide.
PizzaDAO’s biggest supporters, Cheech and Chong, Seth Green, Steve Aoki, and 13-time World Pizza Champion Tony Gemignani, are also amongst the many who join and promote the event. The event will also raise funds for several charities.
PizzaDao
PizzaDAO was established in February 2021 with the idea that pizza should be free and accessible to all. The project leverages Web3 tools that bring capital and provide inclusion to support independent businesses, especially local pizzerias, to help them scale up.
Snax, the founder of PizzaDAO, said:
“We want to change the world by using blockchain to enable community ownership of small businesses. Just like Bitcoin introduced a societal shift in the way humans collaborate, trade and prove ownership, PizzaDAO aims to empower small businesses to grow by bringing pizzerias on-chain, raising funds to give pizza away for free, and building strong locally-focused communities around the world,”
The project has over 400 pizzerias in its network and has spent more than $400 thousand providing free pizza since its establishment. cryptoslate.com
$44M Ponzi scheme charged with stealing $18M in funds
Two individuals and a company have been charged with operating an illegal community pool and fraudulently soliciting $44 million via an “income fund investing in digital assets.”
The defendants are Sam Ikkurty, Ravishankar Avadhanam, and Jafia LLC, with a status hearing scheduled for May 25, 2022.
The three funds in question are Rose City Income Fund, Rose City Income Fund II LP, and Seneca Ventures LLC, with all assets being frozen by order of the District Court on May 11, 2022. According to information released by the CFTC,
“the CFTC seeks restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.”
The complaint claims that the defendants used websites and YouTube videos to “solicit more than $44 million from at least 170 participants to purchase, hold and trade digital assets, commodities, derivatives, swaps and commodity futures contracts.”
It is alleged that instead of investing the funds in order generate a passive income through staking or well-managed trading that the defendants simply reallocated funds to other users in a manner akin to a Ponzi scheme.
Further, it is alleged that the “defendants also transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange” for a total of $18 million.
The websites referenced in the official complaint are currently parked, suggesting that no further investors will be susceptible to their alleged scam. According to cached versions of the site from 2021, the site claimed to have two rules;
“Rule #1: Pay investors a steady dividend of 15% per year on a
Rule #2: Remember Rule #1 GET STARTED TODAY LEARN MORE monthly basis in perpetuity”
A blog post from 2020 gives information on their “mining” activities. A term often used by crypto scammers to con novices to the crypto space. cryptoslate.com
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins
Two U.S. residents have been charged with running a crypto Ponzi Bitcoin, ether and most other major cryptos improved a little over the weekend.
Compared to earlier in the week, they could brag. But in the larger picture, the largest cryptocurrency by market capitalization was still deep in a bear market with no end in sight, and struggling to hover above the $30,000 support line it has held for the past 10 days.
BTC was recently trading at approximately $30,370, a roughly 3.3% rise from its ending point Friday. Ether, the second largest crypto by market cap, was up similarly over the same period and holding just over $2,000 – its perch for much of the past few weeks. AVAX was among the big winners, recently rising more than 8%. SOL and TRX were both up over 5%.
"Bitcoin managed to retain the support levels it found last week and even attempted range breakouts," Joe DiPasquale, CEO of crypto fund manager BitBull Capital wrote to CoinDesk. "However, $31K-$32K remains a strong resistance level [that] Bitcoin needs to successfully breach before we can look toward more upside."
Investors alarmed by central banking missteps to tame inflation, the ongoing economic fall-out from Russia's unprovoked invasion of Ukraine and the increasing likelihood of recession have veered away from riskier assets, including digital currencies and stocks since last fall. www.coindesk.com
First a Hum and Then a Bang: Niagara Falls Residents Forced to Reckon With Crypto Mining
NIAGARA FALLS, N.Y. — An explosion and subsequent fire rocked a Blockfusion crypto mining facility in upstate New York last week, resulting in thousands of mining rigs going offline.
· About three miles away, another bitcoin mine owned by U.S. Bitcoin Corp. had previously drawn the ire of some residents for being too noisy.
· The result: The city of Niagara Falls has imposed a moratorium on new bitcoin mining operations while it works on ordinances to control impact of mining on the local community.
· The new laws will likely include zoning requirements to ensure crypto mines aren't too close to residential areas, Niagara Falls Mayor Robert Restaino told CoinDesk in a phone interview on Thursday. "We have what we think is the final draft of the proposed change," the mayor said. As for next steps, he said the draft will go to the city planning board before it goes to the city council for a final vote.
· Most residents near the Blockfusion site told CoinDesk they had heard the explosion but weren't too alarmed at the time, and said the resulting fire was put out quickly. Teresa Chapelle, who lives about one-third of a mile away, said she not only heard, but also felt, the explosion inside her home.
· At the time she was having dinner with her children in her yard – which has a direct view to the Blockfusion facility about 400 yards away – Marlene Maikranz said the explosion was terrifying to her and her kids, and she rushed them inside to avoid inhaling the fumes. These kinds of explosions, though, were actually a more common occurrence several years ago when the site was still operating as a power plant, she said.
Maikranz posted photos from the incident on her personal Facebook page, which indicate the date of the explosion as May 10. www.coindesk.com
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