Crypto Highlights Week #47 – ‘Fear’ returns to Bitcoin, while long-term holders own just 3% of BTC unrealized losses

Crypto Highlights: Bitcoin selloff, Square’s Bitcoin DEX Whitepaper, SaTT on Bittrex, SEC goes after California alleged scammer: These and more in this weeks’ Crypto Highlights

Top Headlines Of The Week

• Jack Dorsey’s payment firm Square takes a step further in its bitcoin vision by releasing a whitepaper detailing protocol for a decentralized bitcoin exchange.
• A study that dived deep into the Uniswap liquidity pool has discovered that Half of Uniswap v3 liquidity providers are losing money.
• Bitcoin’s Fear and Greed Index has pivoted to “Fear” levels after the digital asset dropped 19% following a massive selloff.

Top Stories Of The Week

SEC charges California promoter over allegedly fraudulent bitcoin schemes

A California individual has been charged with conducting two unregistered and fraudulent securities offerings through hosting platforms that allegedly solicited bitcoin and promised bogus profits, according to the US Securities and Exchange Commission.

According to the SEC’s lawsuit, Ryan Ginster raised $3.6 million in bitcoin through his websites MyMicroProfits.com and Social Profimatic. Ginster promised customers “astronomical rates of return” through “cryptocurrency trading and advertising arbitrage” in both cases, according to the SEC.

Ginster is also accused of misappropriating at least $1 million for personal expenses like tax payments, housing costs, and credit card bills, according to the agency.

The SEC filed a case in the US District Court for the Central District of California, accusing Ginster of breaching the Securities Act of 1933 and the Securities Exchange Act of 1934’s anti-fraud and registration provisions.

As a result, the CFTC is pursuing permanent injunctions, as well as disgorgement and civil penalties, against Ginster.

Half of Uniswap v3 liquidity providers are losing money: New research

According to recent research, temporary losses have become a growing concern for liquidity providers on Uniswap v3. According to research released on Wednesday by Topaz Blue and the Bancor Protocol, 49.5 percent of liquidity providers (LP) on Uniswap v3 have seen negative returns due to impermanent loss (IL).

At the time of the study, the pools investigated accounted for 43% of Uniswap v3’s total liquidity. From May 5 through September 20, 2021, the analyzed pools generated $199 million in fees from $108.5 billion in trading volume. Those pools lost $260 million in impermanent losses throughout that time period, yielding a net total loss of $60 million.

IL outweighed the fees earned by liquidity providers in 80 percent of the 17 pools studied. Only three of the investigated pools witnessed net gains: WBTC/USDC, AXS/WETH, and FTM/WETH. Some pools saw losses of more than 50%, such as the MKR/ETH pool, where 74 percent of users apparently lost money.

Users considering supplying liquidity on Uniswap v3 will find the report’s findings to be harsh. While it is possible to develop a successful strategy, predicted returns may be “comparable to the annual rates offered by mainstream commercial banking products.”

Mainstream Adoption Of The Week

Square Releases White Paper Detailing Protocol for a Decentralized Bitcoin Exchange

Square is the major institution that steals the spotlight in this week’s crypto highlights. The payments giant, published a white paper on Friday outlining the tbDEX protocol, a new decentralized network for exchanging digital and other assets.

“The tbDEX protocol facilitates decentralized networks of exchange between assets by providing a framework for establishing social trust, utilizing decentralized identity (DID) and verifiable credentials (VCs) to establish the provenance of identity in the real world,” the company wrote in the paper’s abstract.

A TBD developer stated in a post describing the platform, “The tbDEX protocol aspires to establish ubiquitous and accessible on-ramps and off-ramps that allow the average individual to profit from crypto innovation,” 

In August, Square CEO and Twitter CEO Jack Dorsey announced the company’s plans to launch an open developer platform for a decentralized bitcoin exchange. The exchange would be built by TBD, Square’s new division focused on providing non-custodial and decentralized financial services.

Mike Brock, Square’s head of strategic development, is in charge of the new initiative. “This is the problem we’re going to solve: making it easy to fund a non-custodial wallet anywhere in the globe through a platform to create on- and off-ramps into bitcoin,” Brock previously tweeted. It can be thought of as a decentralized fiat exchange.”

This Week’s Market Sentiment

‘Fear’ returns to Bitcoin, while long-term holders own just 3% of BTC unrealized losses

Investors are now “afraid” after Bitcoin (BTC) fell over 20% from all-time highs. Overnight losses on November 19 wiped the final traces of “greed” from traders’ minds, according to the Crypto Fear & Greed Index.

As BTC price fell this week, sentiment caught up, as spot price fell in contrast to market signals that remained strong. Exuberance reigned — and continues to reign — among derivatives traders, with some still betting on a major price comeback in the near future.

The overall sentiment, as assessed by the Crypto Fear & Greed Index, has shifted to a more closely matched spot. Its Index was 34/100 at the time of writing, indicating “fear,” which has dropped a full 20 points overnight.

Their sudden drop contrasts sharply with the Index’s performance over the previous two months, when it lingered in “greed” zone in the low 70s. As a result, investors are the most concerned they’ve been since the end of September, just before Bitcoin’s recent all-time highs.

Whales have been accumulating even as prices have dropped, according to Cointelegraph, and there is a noticeable difference between old and new hodlers. Figures demonstrating the overall percentage of the BTC supply that is now not profitable underpin this.

Long-term holders (LTH) have recently engaged in modest selling, according to on-chain analytics firm Glassnode, and now retain only 3% of the supply, which is now not profitable.

Exclusive From SaTT

ICYMI: SaTT Has Gone Live On The Bittrex Exchange

The SaTT (SATT) market opened trading on the Bittrex exchange on 4th November 2021, with the trading of the USDT-SATT pair on the Bittrex Global website. This listing is part of SaTT 360’s program to list a significant number of the world’s leading exchanges. The pre-ICO launch of the token took place in 2018, and since then, it has come a long way and is all set to reach a vast audience on a global level through its listing on Bittrex Global exchange.

“Our listing on Bittrex Global is a tremendous honor, considering its highly selective process; it represents a clear step-up in our listing options, and we are waiting for many more to come,” says Atayen’s CEO Gauthier Bros”

As SaTT enables anyone to monetize their social media presence and get paid for social media posts on a performance-based remuneration. To showcase proof-of-concept for the technology, Atayen is currently offering the first Ad Pools exclusively on Twitter for interested early adopters. Throughout the process, you can discover the advantages of SaTT firsthand and earn cryptocurrencies by farming your Twitter account (posts). You can gauge the project’s success by the fact that the first Twitter Ad Pool collected over 5 million SaTT in around five days!.

This Week’s Crypto Meme

We hope you enjoyed this week’s edition of crypto highlights. For a peek at our last edition of crypto highlights & blockchain news, click here.