CREAM Jumps 54% on Binance Listing; Major Dump Ahead?

CREAM logged a sharp reversal rally on Wednesday as traders assessed its listing on Binance, the world’s leading cryptocurrency exchange by…

CREAM logged a sharp reversal rally on Wednesday as traders assessed its listing on Binance, the world’s leading cryptocurrency exchange by volume.

The Malta-based trading platform will list CREAM/BNB and CREAM/BUSD trading pairs at 1300 UTC, per its announcement. That will enable users to effectively deposit and trade their CREAM tokens against Binance Coin and US-regulated stablecoin BUSD.

CREAM/USD surged by almost 54 percent in just three hours of trading after the Binance listing. The pair hit an intraday high at $120.85.

CREAM/USD hits fresh intraday high after Binance listing. Source: TradingView.com

The gains also came after a long and depressive price action in the CREAM market. The token last week rallied from as low as $0.001 to as high as $279.45. Its upside move took cues from the growing craze for decentralized finance projects.

Background Check

CREAM is part of a decentralized lending platform called Cream Finance. It serves as the governance token for a protocol that users to permissionless-ly borrow or lend from a pool of assets. So “rather than interest rates being set by individuals,” Cream Finance determines them “algorithmically based on the proportion of assets lent out.”

The business model resembled that of Compound.

CREAM grew further into the conscience of “yield hunters” after Binance decided to support its protocol on its newly-launched blockchain, Binance Smart Chain. That effectively protected Cream Finance from its previous blockchain Ethereum’s high gas fees.

But despite its strong fundamentals, cracked started appearing in the DeFi token’s market technicals. CREAM/USD became the victim of a massive dumping exercise that began at its $279.45-high. A profit-taking spree started and crashed the pair by 73 percent as of 0600 GMT today.

It rebounded sharply only after the news of the Binance listing hit the wire. That left many in the cryptocurrency industry worried about CREAM’s erratic, pump-and-dump price moves.

Netherlands-based market analyst Michaël van de Poppe was quick to comment on the nature of CREAM’s listing on Binance, arguing that the exchange acted too quickly to list a token which was “garbage.”

“I sincerely don’t understand the fact of projects needing months to get a potential listing on Binance,” he said. “But, then, complete garbage like $CREAM and $SUSHI gets listed instantly with a bullshit reason of ‘becoming obsolete’. A complete sh**show for crypto and space.”

CREAM Trend Ahead

Some, meanwhile, argued that Binance was attempting to compete with emerging decentralized exchanges like UniSwap in the race of listing DeFi tokens.

The concerns were loud also as the Cream Finance confessed earlier today about facing a critical software bug in its source code. The DeFi platform said in a series of tweets that it paused its staking mechanism due to a so-called “input error.”

The bug resulted in a faster-than-expected distribution of CREAM tokens: 25,000 per day, instead of the earlier defined 2,500 per day in the crCREAM Staking platform.

Cream Finance assured that all the locked stakes were safe. Its liquidity pool is currently holding $310.92 million worth of Ethereum and WBTC tokens.

Overall, CREAM/USD trades in a highly-risky area that amounts to larger price corrections. The pair’s lack of historical trade data makes it difficult to gauge its future trends. The only upside that remains is the hype surrounding the DeFi space.

Grayscale CEO Quips About Bitcoin Buying Race With MicroStrategy

Michael Saylor, the Founder of MicroStrategy, said, so far, he has spent a total of $425 million buying Bitcoin. In a…

Michael Saylor, the Founder of MicroStrategy, said, so far, he has spent a total of $425 million buying Bitcoin.

In a recent tweet, Saylor mentioned his firm had just purchased approximately 17k BTC. Including previous the purchase of 21k tokens, the firm now holds around 38k BTC in total.

“On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.“

As a business intelligence software firm, MicroStrategy is not normally associated with cryptocurrency. But last month, the company revealed its revised treasury strategy to weather the uncertain economic conditions.

In a press statement, the company spoke about the downfalls of holding cash during these times. To which, they believe holding BTC, over cash, represents a better bet for the company as a going concern.

“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash… MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”

The news brought a boost to cryptocurrency advocates, who have long suffered accusations that Bitcoin is a Ponzi scheme.

As a NASDAQ listed firm, MicroStrategy’s foray does add an air of legitimacy to Bitcoin. However, some observers have criticized the move, especially considering Bitcoin’s failure to close above the critical $12k level.

Bitcoin daily chart with volume. (Source: tradingview.com)

Bitcoin as a Hedge? Not Every Shareholder is Convinced

As much as this is a boost for Bitcoin in terms of legitimacy, some have suggested MicroStrategy’s approach of going BTC heavy is the wrong thing to do.

One Twitter user pointed out that this leaves the company seriously cash deficient. What’s more, with on-going expenses, that require paying in dollars, it was a move that made little sense.

On top of this, based on Saylor’s figures, the average net cost of his BTC purchases come to $11,111. And while the price of Bitcoin remains below that level, Saylor’s strategy will continue to draw flak.

Nonetheless, open institutional interest in Bitcoin still brings welcome relief to a space that struggles with scam accusations.

So much so, Barry Silbert, the CEO of Digital Currency Group, who own Grayscale, joked that this is the start of a “buying race” between the two firms.

Grayscale recently hit the headlines off the back of reports the firm is buying up more Bitcoin than the mining output rate.

Analysis of the situation showed that their BTC purchases were significant. But the reported “in-flows” came from “old-Bitcoin” sent by hedge funds.

Kaun Banega Cryptopati | $BTC – Bitcoin Trading Competition

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Bitcoin Surges Towards $10,800 as Recovery Continues: Here’s What Comes Next

Bitcoin is surging higher as legacy markets rally. The leading cryptocurrency is up around 5% in the past 24 hours, outpacing…

Bitcoin is surging higher as legacy markets rally. The leading cryptocurrency is up around 5% in the past 24 hours, outpacing many altcoins, with focus re-centering on BTC.

The cryptocurrency seems to be benefiting from a drop in the value of the U.S. dollar. This has historically sent both gold and Bitcoin, along with the stock market, higher.

Related Reading: This European Crypto Exchange Was Just Hacked for $5 Million

There do seem to be some technical reasonings behind Bitcoin’s ongoing rally too, though. Namely, the cryptocurrency managed to close its weekly candle above the pivotal $10,000 support, which is a technical trend that analysts say gives BTC a chance at rallying.

At current, Bitcoin trades for $10,750, having moved above $10,800 just an hour or two ago. This is the highest the cryptocurrency has traded in over a week.

Analysts are optimistic that BTC continues to move higher as technicals and fundamentals continue to suggest more upside is in the works.

Chart from TradingView.com of BTC's price action over the past few days
Related Reading: Here’s Why This Crypto CEO Thinks BTC Soon Hits $15,000

Funding Rates Corroborate Expectations of Further Bitcoin Upside

The funding rates of Bitcoin futures markets are negative despite the ongoing rally, boding well for more upside.

The funding rate is the fee that long positions pay short positions to ensure that the price of a derivative trades near/at the price of the spot market.

Negative funding rates suggest that shorts are currently heavily positioned.

While this may lead some to believe that Bitcoin is primed to move lower due to potential selling pressure, negative funding rates are often seen before the BTC price rallies. It appears that the market often goes against the majority; in this case, that would mean Bitcoin continues to move higher to shake out short position holders.

Technicals Agree

The technicals agree with the assessment that Bitcoin will soon move higher.

One analyst, referencing the chart below, noted that it would be unwise to sell after Bitcoin underwent the current pullback:

“Kick yourself if you were selling after a 20% pullback from the highs into the first test of one of the most significant support and resistance flips we have had in years. Context is everything,” he explained.

Image Courtesy of Cantering Clark. Chart via TradingView.

As the chart indicates, Bitcoin’s recent price action has actually shaped up to be more bullish than bearish. The cryptocurrency managed to cleanly bounce off the pivotal $10,000 horizontal, negating the bear case that some were expecting to play out.

Related Reading: It’s “Logical” for Ethereum To Reject At Current Prices: Here’s Why
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Surges Towards $10,800 as Recovery Continues: Here's What Comes Next

Kaun Banega Cryptopati | $DOT – Polkadot Trading Competition

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The Top 3 Traders with the Maximum number of volumes bought and sold will get $500, $300 & $200 Dollars respectively.

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Coin Blogs and Links will be shared on a daily basis. Stay Tuned For Your Coin and Trade in the specific coin to win the amount. Top 3 Coins & Traders with the Maximum volume bought and sold will get $250, $150 & $100 Dollars respectively.

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Register using Google Form and receive your referral ID. Share it with your friends and community for the EZ trading or respective coin trading. The Maximum Number of Trades made through the referral ID will win  $250, $150 & $100 Dollars respectively.

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Former AngelList CEO Claims The Next Big DeFi Wave is Coming

If you thought the DeFi phenomenon was big, bigger and better is yet to come. Well, that’s according to former AngelList…

If you thought the DeFi phenomenon was big, bigger and better is yet to come. Well, that’s according to former AngelList CEO, Naval Ravikant, who said Wall Street money will fuel the next big wave.

In a recent tweet, Ravikant gave a backhanded compliment by saying institutional money will fuel the next big wave. In the same tweet, he also likened the space to a casino.

However, so far, Wall Street has held off from jumping into DeFi in any sort of meaningful way. For one, there are regulatory barriers that make Wall Street execs nervous about the decentralized finance space.

As well as that, mindset differences concerning decentralization also add to the uncertainty.

But, given the stellar growth of DeFi this year, is that about to change?

Wall Street is Cautious of the Decentralized Aspect of DeFi

Although Ravikant is optimistic that institutional money will eventually pour into decentralized finance, currently, there are several reasons why Wall Street is cautious.

Gemini Founder, Tyler Winklevoss points out that big players, like JP Morgan, need to know who they are dealing with, and that transactions have some sort of regulatory oversight.

What’s more, Winklevoss remains in two minds as to whether DeFi protocols and exchanges, in general, can handle the scale put through by institutional traders.

“try putting through high-frequency traders, market-makers, billions of dollars of trading volume through a DeFi exchange –the technology would just fall over.”

While the decentralized finance phenomenon hasn’t escaped the attention of Wall Street, their cautious approach to it boils down the level of risk involved.

As things stand, Winklevoss believes the entire space is a step too far the Wall Street crowd.

“They appreciate it, they understand it. But from a compliance, legal, regulatory standpoint, they actually can’t touch it even though they think it’s fantastic.”

Is it Fair to Liken Decentralized Finance to Gambling?

DeFi is undoubtedly shaking up the world of finance. But there’s no getting away from the sheer number of exploits and exits of late.

Investor @CryptoWhale went as far as to say 99.99% of DeFi projects operate scam tokens. As others have previously done, he drew parallels with the ICO bubble, warning that most investors are going to lose out.

At the same time, he also said new DeFi projects target greedy inexperienced investors. While investors have their suspicions, they are still willing to risk funds in the hope of selling at the top.

“These new projects are mainly marketed towards greedy inexperienced Investors. If you’re gambling on some new DeFi sh*tcoin in hopes you’ll be getting out at the top, and becoming rich overnight, be prepared for the reality of that likely not happening.“

Source: twitter.com

With that, DeFi is very much like a casino. But isn’t gambling what Wall Street does best?

Yearn Finance 4-hourly chart with volume. (Source: tradingview.com)