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- FUD fails to rattle XRP
FUD fails to rattle XRP
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XRP holds steady amid growing negative sentiments over Bitfinex attack
The recent unsuccessful hack targeting the XRP Ledger on Bitfinex fueled negative sentiment surrounding XRP
Activity on the XRPL experienced a decline, hinting at users adopting a more cautious stance
News - The recent attempted attack on Bitfinex exchange raised concerns among traders about its potential impact on XRP, leading to a notable surge in negative sentiment surrounding the altcoin.
Why XRP? The hacker attempted to exploit the exchange by misusing a feature on the XRP Ledger, aiming to transfer billions worth of tokens. While the hacker was unsuccessful, the incident sparked concerns among traders about potential repercussions for XRP, causing a significant uptick in negative sentiment and creating fear, uncertainty, and doubt (FUD) around the cryptocurrency.
How did this impact XRP? Despite the uncertainties linked to the attack, XRP's price remained resilient at $0.57, with only a slight 0.4% dip observed in the last 24 hours.
However, XRP's on-chain metrics present a mixed scenario; as network growth saw a decline, the total number of addresses continued to increase, indicating a potential shift in user interest with some joining the network and others losing interest.
In a bid to boost sentiment, Ripple Labs CEO Brad Garlinghouse announced his participation in the World Economic Forum (WEF) event on 18 January. The discussion will center around the role of sensible global regulation in the cryptocurrency space, presenting an opportunity for Ripple to enhance its credibility.
Crypto mining firm Core Scientific set to exit bankruptcy, relist shares on Nasdaq
Core Scientific is one of the largest cryptocurrency mining firms in the United States
The company filed for bankruptcy in December 2022 due to a combination of factors, including an extended bear market, escalating energy costs, heightened mining difficulty, and loans with bad debt extended to the crypto firm Celsius
News - After obtaining court approval, Core Scientific, a crypto mining firm, is set to exit bankruptcy and relist its "CORZ" shares on Nasdaq, concluding a 13-month restructuring process.
On 16 January, Core Scientific announced that its reorganization plan was approved by the bankruptcy court in the Southern District of Texas. The company plans to exit bankruptcy on 23 January and expects to be relisted on the Nasdaq the day after.
What's the plan? As per the Chapter 11 plan, current shareholders will keep approximately 60% of the company's shares. The restructuring initiative aims to reduce significant debt from the balance sheet and ensure a "full recovery" for all classes of creditors. Additionally, the plan is projected to secure the jobs of over 240 individuals within the company.
According to reports, during a hearing, U.S. Bankruptcy Judge Christopher Lopez remarked that the plan presents a substantial recovery for both unsecured creditors and equity holders.
What's the most important point here? In a statement, Core Scientific mentioned that the restructuring plan became possible, in part, due to the substantial increase in Bitcoin prices and hash rates since the company filed for bankruptcy in December 2022.
The count of wallets with a balance greater than zero coins was nearly 6% away from its all-time high, indicating a strong trend of investors actively acquiring LINK
At its press time price of $16, LINK is expected to face resistance due to historical instances of high liquidation at that level
News - Over the past week, LINK exhibited a promising trend as its token price surged by double digits, providing investors with profitable returns.
At the time of writing, LINK was trading at $16.02, following a hike of over 5% in the last 24 hours. Additionally, its market capitalization surpassed $9 billion, according to CoinMarketCap.
What to expect - As the token's price surged, its exchange supply sharply declined, indicating increased accumulation by investors—a bullish signal. According to Santiment's data, the supply on exchanges dropped below 15%, a level not seen in approximately four years.
However, AMBCrypto's analysis showed a close correlation between LINK's supply on exchanges and off exchanges, suggesting a relatively balanced buying and selling pressure. Additionally, there was a decline in whales' interest in LINK last week, evident from a flattened chart depicting the supply held by top addresses.
Nevertheless, at its press time price of $16, LINK is expected to face resistance due to historical instances of high liquidation at that level.
EU banking watchdog expands anti-money laundering guidelines to crypto firms
EU-based crypto firms are now included in the banking watchdog's guidance as part of its commitment to combat financial crime
The updated guidelines will come into effect starting 30 December 2024
News - The European Banking Authority (EBA) has decided to extend its Anti-Money Laundering and Counter-Terrorist Financing guidelines to include European crypto companies.
According to the banking watchdog, the move is a crucial step in the EU's efforts to combat financial crime. This is because the move is aimed at streamlining the approach for crypto firms throughout the union, thereby reducing the risks of money laundering and terrorist financing.
How will this help crypto firms? The EBA stated that the guidelines are designed to assist crypto asset service providers (CASPs) in recognizing their exposure to financial crimes based on factors such as customers, products, delivery channels, and geographical locations.
The guidelines also detail the adjustments that crypto firms should make to enhance their efforts in combating financial crimes, which may involve incorporating tools like blockchain analytics.
Furthermore, they provide guidance on how crypto firms should conduct a risk assessment for financial crimes. This involves evaluating potential risks related to features like anonymity-enhancing features, self-hosted wallets, decentralized platforms, and products allowing transfers between the company and such services.
More stories from the crypto ecosystem
Did you know?
On 3 January 2009, the first blockchain was launched with the first "block" called the genesis block.
In 2013, Forbes crowned Bitcoin as the best investment of the year, while Bloomberg took an opposing stance in 2014, dubbing it the worst investment of that year.
In the Ethereum network, transactions require gas fees to incentivize miners and secure the network. However, what many may not know is that users have the option to get their transactions prioritized by paying higher gas fees.
Top 3 coins of the day
This week, Ethereum's daily transactions on the blockchain soared to a three-year high, reaching a 1.96 million before stabilizing around 1.28 million
According to Santiment's data, the creation of new addresses on the Ethereum network has averaged 89.4k since the turn of the calendar year, up from 70.4k in November
What you should know - After breaking above the $2,500 level on 10 January, ETH saw a slight pullback on 16 January, testing the level once again. At press time, the crypto was back up, changing hands at $2,540, following a 0.1% hike over the last 24 hours. The $2,500 level which was significant resistance previously now seems to be offering significant support. The RSI stood at 59, above neutral 50, showing signs of bullish market sentiment. However, going forward, breaking above the $2,700 mark may prove challenging as resistance is expected at that level.
In December, the Avalanche network achieved its highest-ever monthly active user count, surpassing 1.3 million
AVAX has risen by 115% in the past year but is still more than 75% below its all-time high of $144.96 recorded on 21 November 2021, according to CoinMarketCap
What you should know - Following a rejection at the $50 mark less than a month ago, AVAX has been in a downward trend. Despite the rejection, AVAX stayed strong above the crucial support at $33. However, over the past week the crypto has seen some gains, rising by 4.0% in the last 7 days and 0.7% in the last 24 hours. At the time of writing, AVAX was trading at $36.35. Additionally, the RSI was seen moving steadily towards the 50-mark, implying that an uptrend could be fast approaching.
On 16 January, Blockchain whale tracking platform Whale Alert revealed that 990 million DOGE was moved from one wallet to another
The trading volume of Dogecoin has decreased from over $700 million to approximately $300 million since the beginning of January
What you should know - After a week of downtrend, Dogecoin attempted to recover above the $0.09 resistance level, however it lost momentum near the $0.88 mark. At press time, DOGE was trading at $0.8040, reflecting a 2.0% drop in its value over the past 24 hours. The MACD revealed red histograms below the half-line as the lines were bound south, indicating that sellers were in command. However, the Fear & Greed Index painted a different picture as it displayed a score of 67 (Greed), suggesting that investors were exhibiting high levels of optimism in the current market conditions.
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