September 13th, 2018
QUOTE OF THE DAY 
"We cannot become what we need to be by remaining what we are."
- Max Dupree
| COIN | PRICE | 24H |
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| BTC | $6,314.824752 | -0.29% |
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| ETH | $191.809857 | -2.28% |
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| XRP | $0.26504 | -3.1% |
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| BCH | $465.097375 | -2.5% |
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| EOS | $4.95 | -1.85% |
| | ||
*Information as of 9:30 AM EST
BitMEX CEO Accused of Manipulating the Price of Ethereum
DOUBLE DIGIT SH*TCOIN
- It is no secret that BitMEX CEO Arthur Hayes doesn't like Ethereum (ETH)
- On August 14th, Hayes called out Ethereum for being a "double digit sh*tcoin" that will drop below $100 in the BitMEX newsletter that is automatically sent to all BitMEX users
- Ethereum's mention in the newsletter was because BitMEX has since released its ETH/USD perpetual swap which allows investors to trade Ethereum with up to 50x leverage using Bitcoin
CAUSING THE PLUNGE
- Now, as Ethereum creeps to new lows, the community is partially blaming Hayes for the price plunge
Many in the Ethereum community are pointing to a message Hayes posted in the BitMEX chatbox about the new ETH/USD perpetual swap the exchange offers:
"If you are a bitcoin based speculator this is the perfect way to punt on the ETH/USD price."
- This comment sparked outrage in the Ethereum community as many believe Hayes is encouraging BitMEX users to short ETH/USD
- Today, though BitMEX has a clear agenda against Ethereum, the crypto exchange still handles $3 billion of daily ETH trading volume
NO REGULATION, NO PROBLEM
- BitMEX is largely unregulated and no legal action has been brought against Hayes for allegedly using his influence to drop the price of Ethereum
- In addition, BitMEX doesn't allow users from the United States due to regulations, however, it is assumed that majority of BitMEX users are actually located in the United States and use VPNs to access the exchange
- Further, Hayes himself is an American citizen assumed to be located in the United States due to his appearances on American television
- In closing, it's likely that BitMEX knows a large chunk of its users are from America, yet continues to turn a blind eye to the matter
OKEx Founder Released From Police Station After Fighting Fraud Allegations
SETTING THE STAGE
- Yesterday, OKEx cryptocurrency exchange founder Star Xu was detained by Chinese police over allegations that Xu defrauded investors
- The allegations stem from Xu's possible involvement in a blockchain WiFi sharing project called WFEE Coin
- Supposedly, Xu holds equity in the startup and after it committed illicit activity, Xu was brought in for questioning
XU WALKS FREE
- Following his questioning, Xu was able to prove that he had no connection with WFEE
- OKEx COO Andy Cheung confirmed Xu has no relationship with the startup and OK Blockchain Capital also denied Xu's alleged connection
- Following his detaining, Xu explained in an interview with Honeycomb Finance that it was "normal" for Chinese citizens to exercise their right to make allegations and he fulfilled his "duty" as a citizen to answer the authorities' questions respectively
DEEPER PROBLEMS
- In addition to Xu's hiccup with WFEE, there is also another allegation pending that blames OKEx's system failures as the reason for losses amounting to "around 300 million yuan"
- According to the case, when OKEx went down, traders were unable to close or modify their positions in a time of crisis
- In addition, since OKEx offers 20 times leverage, losses could exceed much further than a traditional exchange
- So far, however, nothing has come of the allegations as the case remains stagnant
ETH Shorts Hit All-Time High... Again
ETH BEARS IN FULL FORCE
- Ether has been rocked by this bear market, even more than a lot of other altcoins
- It seems like investors don't think this is the end of ETH's demise
- ETH/USD shorts just hit an all-time high on Bitmex and 248,247 surpassing last Friday's record high of 247,611
- Short bets are a whopping 200% higher than four weeks ago
SHORT SQUEEZE COMING?
- In certain situations, a large number of short positions can result in a sharpe move in the opposite direction, this is known as a 'short squeeze'
- Someone with a short bet is borrowing ETH from someone that they need to pay back
- If the price of ETH begins to rise, short sellers will have to go into the market and buy ETH to repay the borrowed asset
- This adds more buying pressure as the price is already rising, it is sort of a domino effect, as the price rises more people need to cover their short and buy more ETH
A Brazilian Soccer Club is Having an Initial Coin Offering
WHY ICO?
- The Avaí Futebol Clube, a Brazilian Series B soccer team, just announced that it will be launching its own cryptocurrency and is raising funds via an initial coin offering
- The team hopes to raise $20 million dollars and has the goal of helping the team qualify for Series A tier and investments into the teams infrastructure
- 20.46 million tokens will be sold for $1 each and the club will hold onto another 1.54 million tokens
- SportyCo and Blackbridge Sports are assisting the club with the ICO which will take place on October 3rd
Avaí president Francisco José Battistotti talked about his hopes for a global outreach with this ICO:
"With our ICO, we are actively ... engaging all Avaí FC in Florianópolis and Brazil, working together towards our goal – to become a stable member of Brazil's Série A and qualify for the Copa Libertadores. We are delighted to do so in partnership with SportyCo and be the first sports company to do an initial coin offering, paving the way for other clubs all over the world to approach financing their sporting activities in this novel way."
WHY BUY A SPORTS TOKEN?
- Token holders will be able to use the token to purchase tickets, merchandise, and have access to "unique experiences"
- Avaí is not the first sports club to issue a cryptocurrency, recently, French club Paris Saint-Germain announced they were issuing a crypto
- However, Paris Saint-Germain's token will have no monetary value, rather only be used for fan voting
- Morgan Stanley plans to offer trading in complex derivatives tied to Bitcoin.
- The trustee of the long-defunct bitcoin exchange Mt. Gox has announced that corporate creditors can now enter claims to claw back trapped bitcoin through a recently approved rehabilitation process.
- Binance is teaming up with the Malta Stock Exchange (MSX) to enable security token trading.
Swarm (SWM)
Swarm Fund is the blockchain for private equity. It's a fully decentralized capital market place that democratizes investing by using the power of the blockchain to open up high-return, alternative investment classes to smaller investors through asset-backed funds using cryptocurrency tokens. It makes traditionally exclusive investment opportunities, such as private equity and hedge funds, inclusive for the Swarm by pooling together smaller investments into larger, institutional-sized blocks.
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