A little bit of a pullback going on today as much of the market retraces a good chunk of its gains made over the past week. 🔻
In today’s Litepaper, we’re going to look at why Hestor ‘Crypto Mom’ Peirce is seriously pissed and the $1 million in DJED that just got minted (and a Crypto 101 article on DJED). Plus, don’t miss our Technically Speaking piece over Bitcoin.
$AVAX is the only bright light in today’s market, but not every day can be a green day. Despite the drop today, the Total Market Cap remains above the $1.20 value area. Let’s see if it stays that way.
Here’s how the market looked at the end of the trading day:
She takes issue with the proposed change to the definition of “exchange” encompassing decentralized finance (DeFi) protocols. Peirce argues that this change would only serve to promote stagnation, centralization, and hinder innovation, rather than embracing the potential of new technology.
The Commissioner emphasizes that the SEC should remain open to the idea of adapting its rules to accommodate new technologies, as it understood and practiced in the 1990s. By doing so, the regulatory body would allow for significant innovations in securities trading and other financial services. 🤬
However, Peirce warns that the SEC’s latest release signifies a shift toward an era where cutting-edge businesses might be locked out of the market because they can’t conform to existing regulatory mandates.
She urges the Commission to consider the possibility that their rules, which have evolved in the past to address the needs of investors and firms in traditional securities markets, might require some tweaking to permit firms to offer innovative finance solutions using novel technologies. 💸
If DJED was Do ‘Con’ Kwon’s TerraUSD ($UST), the team could pull a U.S. Federal Reserve and print more money out of thin air.
Can’t do that with DJED.
Today might be the first of many days that the efficacy, integrity, and theory behind Cardano’s overcollateralized algorithmic stablecoin can win against $SHEN’s underlying $ADA price pushing the Reserve Ratio below the 400% threshold.
Give today’s Crypto 101 on DJED a read if want to know more about how it works.
Does the market feel a little top-heavy? It might. Something we’ve discussed in the Week 14 and Week 15 Weekend Data Drive editions of the Litepaper tackled some of those warnings.
BTCUSD Weekly Chart – Click to enlarge.
The main red flag on Bitcoin’s chart that we covered over the weekend is the gap between the candlestick bodies and the Tenkan-Sen (that light gray blob).
Now, these gaps usually sort themselves out within four to five periods, and it’s most common for the price action to make the move—meaning Bitcoin might drop to meet the Tenkan-Sen.
The other, not-so-common way of fixing the gap or getting back to equilibrium is time, which means the price action stays flat while the Tenkan-Sen catches up (moves higher).
Another warning sign worth noting is the Regular Bearish Divergence between price and the Composite Index—which is about to dip below its fast-moving average.
Both bullish and bearish analysts see Bitcoin’s first support zone around the $23,500 value area, where the Tenkan-Sen and the Cloud’s bottom (Senkou Span A) rest.
Oh, and if you take a peek at the Volume Profile, there’s a maaaassive gap between $27,000 and $25,250. So, if Bitcoin slips below $27,000, don’t be shocked if it takes a nosedive to $25,250.
Considering the Kumo Twist on Bitcoin’s daily chart (not shown here) is coming up on April 26, we might not see a bottom until around that date – if a pullback does occur.
Cardano’s stablecoin, DJED, is a little odd. It’s odd because it’s transparent (for the most part), and it can’t operate like $USDT or the horrible failure that was Terra’s $UST.
👮♂️ The SEC is going after Bittrex and its former CEO. Along with Bittrex’s foreign affiliate, Bittrex Global, they are charged with operating an unregistered national securities exchange, broker, and clearing agency. Bittrex’s foreign affiliate, Bittrex Global GmbH, has also been charged with failing to register as a national securities exchange. Bittrex has allegedly earned $1.3 billion in revenue from transaction fees since 2014 without registering any of these activities with the SEC. The complaint claims that Bittrex and Shihara collaborated with issuers
to delete “problematic statements” that might have led regulators to investigate certain crypto assets as securities offerings.
😱 CME introduces daily expirations for Bitcoin and Ethereum futures and options.Starting May 22, contracts based on micro-sized $BTC and $ETH futures will have additional expiration dates on Tuesdays and Thursdays. This is in response to increased
demand and market volatility in the digital asset sector. In Q1, CME’s bitcoin and ether futures and options saw a record daily average volume of over $3 billion.
🍿 Grayscale’s Solana Trust now publicly trades under the ticker $GSOL on OTC Markets.As of Friday, GSOL had 304,427 outstanding shares. This move follows Grayscale’s strategy with its Bitcoin and Ethereum trusts, $GBTC and $ETHE. However, GBTC and ETHE are trading far below the value of the digital assets they hold. Grayscale is also in an ongoing legal battle with the SEC over the rejection of Bitcoin spot ETFs, and a victory does not guarantee the approval of these investment products.
🏛️ Stablecoins are front and center this week on Capitol Hill. This week, the U.S. House of Representatives will debate a draft bill aiming to regulate stablecoin operations. The bill proposes making the Federal Reserve the regulatory oversight for non-banking stablecoin issuers, while insured banking institutions offering stablecoin services will fall under the appropriate Federal banking authority. It also requires foreign operators to register before providing services to U.S. citizens. Additionally, SEC Chairman Gary Gensler will appear before the U.S. House Committee
on Financial Services to discuss the commission’s activities, policy-making, and regulatory developments since the last oversight hearing in October 2021. The hearing will review the recent definition change of
“exchange,” which classified cryptocurrency and digital asset exchanges as securities exchanges.
This is what’s inside today’s curated NFT news collection:
FranklinIsBored is now FranklinIsRetired, Wild West Outlaws, Roblox, NFT platform bought, Trump’s $1 million take from NFTs, and Brazilian football with Binance.
