Crypto ignored by Trump

August 13, 2024

Reading time: 5 minutes

Crypto market disappointed as Trump and Musk interview avoids crypto discussion

Key points:

  • Global crypto market cap slid by 1.35% after Trump and Musk’s interview on Monday.

  • The market was fearful of a further price drop, at press time.

News - Despite anticipation, former President Donald Trump did not mention cryptocurrency or Bitcoin during his highly publicized interview with Elon Musk on X.

The two-hour conversation covered a wide range of topics, including politics, economy, and AI, but notably excluded any discussion of digital assets.  

Technical hurdles - The interview itself faced technical difficulties, with a reported denial-of-service attack causing delays. This incident sparked controversy as Musk attributed the disruption to opposition to Trump's message.  

Meanwhile, prediction markets had seen significant betting activity on the possibility of crypto-related mentions, with substantial sums wagered on both Bitcoin and broader cryptocurrency discussions. However, these bets proved unsuccessful.

Consequently, the crypto market, on Tuesday morning, noted a 1.35% drop in its market cap as Bitcoin took a 2% fall over the last day. With Trump appearing at the recent BTC 2024 conference in Nashville, crypto has become a key election issue. However, it continues to go unmentioned during mainstream events.

3AC liquidators file $1.3 Billion lawsuit against Terraform Labs

Key points:

  • Claim alleges Terraform Labs misled 3AC about Terra ecosystem stability.

  • 3AC suffered massive losses due to Terra crash.

News - Liquidators of the collapsed cryptocurrency hedge fund Three Arrows Capital (3AC) have filed a $1.3 billion claim against Terraform Labs, the company behind the failed Terra ecosystem.

The legal action, filed in Delaware federal court, alleges that Terraform Labs misled 3AC about the stability of its cryptocurrency tokens, leading to massive losses when the Terra ecosystem collapsed in May 2022.

What happened to the hedge fund? 3AC, once a prominent player in the crypto market, suffered catastrophic losses when the TerraUSD (UST) stablecoin and its paired token Luna crashed. The hedge fund subsequently filed for bankruptcy, owing creditors around $3.3 billion.

The liquidators argue that Terraform Labs intentionally misrepresented the value and stability of UST and Luna, inducing 3AC to invest heavily in the tokens.

They are seeking damages for direct losses from purchasing these cryptocurrencies and for broader impacts on 3AC's overall investment portfolio. The collapse of Terra and the subsequent fallout have had a profound impact on the cryptocurrency industry.

Crypto market sees sharp divergence: Solana whale sells, Ethereum whale buys

Key points:

  • Solana whale has sold $84 million worth of SOL since January.

  • Whale employed dollar-cost averaging strategy.

News - A Solana whale has been steadily offloading his holdings since the beginning of the year, with total sales reaching a staggering $84 million.

Blockchain analytics firm Lookonchain identified the wallet as having transferred over 594,000 SOL tokens to major exchanges like Coinbase, Binance, and OKX in multiple transactions since 15 January. The latest sale, amounting to approximately $2.8 million, was made on 13 August.

The whale's strategy appears to be dollar-cost averaging, a method where investors buy or sell assets in smaller, regular increments rather than in a single lump sum. This approach can help mitigate market volatility and reduce the impact of timing the market.

Interestingly, while one whale is selling, another appears to be accumulating. An Ethereum wallet linked to the platform's initial coin offering (ICO) has been purchasing ETH over the past month, with a total investment of $154 million.

However, a different Ethereum whale made a large single purchase of 5,000 ETH, worth around $12.8 million, on the same day.

Uniswap Labs rakes in $50 Million from front-end fees

Key points:

  • Fees increased from 0.15% to 0.25% in April.

  • Uniswap remains the largest DEX by trading volume.

News - Uniswap Labs, the company behind the popular decentralized exchange (DEX) Uniswap, has reported a significant revenue boost.

The platform has amassed over $50 million in front-end fees since introducing a 0.15% charge on user transactions last October. This figure has surged dramatically, particularly after the fee was increased to 0.25% in April.

Uniswap remains the dominant DEX in terms of trading volume, capturing nearly one-third of the total DEX market share in July. This substantial user base has contributed significantly to the platform's fee income.

While the front-end fee has generated substantial revenue for Uniswap Labs, users have the option to bypass it by utilizing DEX aggregators like 1inch, Cowswap, or Paraswap. However, these platforms often have their own fee structures.

The impressive fee income underscores Uniswap's position as a leading player in the DeFi ecosystem. As the platform continues to grow, its revenue stream is likely to expand further.

Interesting facts

  • As of 2024, over 15,000 companies worldwide accept Bitcoin as a payment method. Some of the businesses that accept Ethereum and Bitcoin as payment options are Sotheby, Shopify, and Overstock, along with blue chip companies like Microsoft.

  • According to 2020 data on cryptocurrency crimes, $1.9 billion in Bitcoin were stolen and lost through fraud. Four months into 2021, crypto users had $432 million stolen.

  • 880% of Bitcoin adoption has increased globally, according to adoption data. This is a year-on-year growth from the second half of 2020 to the second half of 2021.

Top 3 coins of the day

Toncoin (TON)

Key points:

  • At press time, TON was trading at $6.32.

  • It increased by 15.34% over the past week.

What you should know - TON, at the time of writing, was trading at $6.32, indicating a modest rise of 0.73% for the day. The Bollinger Bands reveal the coin's price movement between $5.456 and $7.180, with a noticeable narrowing suggesting reduced volatility. The daily chart highlights a near-term support level at $5, which has proven to be a critical point, preventing further decline. The Relative Strength Index stands at 47.36, suggesting a neutral market sentiment without being overbought or oversold. Awesome Oscillator supported the same narrative. Overall, if Toncoin can hold above the support level and break through immediate resistance at the $7 level, it may experience a short-term bullish trend reversal.

Bitcoin Cash (BCH)

Key points:

  • BCH bulls have been trying to touch the $435 level.

  • A short-term price rally looks quite possible.

What you should know - Bitcoin Cash, at publication time, was trading at $351, experiencing a slight downturn of 0.99% for the day. The altcoin has been confined to a range between $320 and $380, indicating a period of indecision in the market. Technical indicators suggest a bearish bias. Both the 50-day and 100-day moving averages are positioned above the current price, signaling potential downward pressure. Bulls will need to overcome the significant resistance level of $495 to initiate a sustained uptrend. The Chaikin Money Flow indicator is neutral, suggesting a balanced buying and selling pressure. Overall, Bitcoin Cash remains in a holding pattern until a decisive breakout occurs.

Arbitrum (ARB)

Key points:

  • ARB bulls have been attempting a recovery.

  • However, the bullish momentum looks weak.

What you should know - ARB is under significant selling pressure, with its price currently at $0.5777, representing a 1.95% decline. The cryptocurrency is trading dangerously close to its all-time low, indicating a strong bearish dominance in the market. Technical indicators reinforce this bearish outlook. The price is trapped below a critical resistance level of $0.9158 and a downward-sloping trendline, highlighting the challenges faced by bulls. The Aroon indicator confirms the bearish trend, with the Aroon Down consistently outpacing the Aroon Up. Any recovery attempt will require a sustained move above $0.9158 to indicate a potential bullish reversal. In this case, the possibility of a trend reversal will go high.

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