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Shiba Inu's financial risks
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Bitcoin's daily exchange volume now sits at a year-to-date high
Key points:
The total volume of Bitcoin traded on spot exchanges daily has reached its highest since the year began.
This comes amid attempts to reclaim the new price all-time high of $72,000.
News - The total volume of Bitcoin traded across spot exchanges recently clinched a single-day high of $28 billion, representing its highest since the beginning of the year.
Why is this important? A steady surge in BTC trading volume suggests heightened interest in the leading coin from buyers or sellers. An asset’s exchange metric is a useful indicator in determining whether an asset’s value will rise or decline in the short term. It offers insights into whether investors are actively selling their holdings for profit or accumulating them.
Coin holders cash in their gains - An assessment of BTC’s exchange reserve showed that it has risen by 5% in the last week, per CryptoQuant’s data. At the time of writing, 2.03 million BTCs were held across exchanges. The surge in the coin’s exchange reserve followed its rally above the $70,000 price mark to record a new all-time high on 8th March.
Therefore, the recent high recorded in BTC’s daily exchange volume is due to the high profit-taking activity.
Bitcoin prints green - Regarding how profitable these BTC sales transactions may have been, on-chain data showed that the coin’s Market Value to Realized Value (MVRV) ratio was 180%. With this MVRV ratio, BTC’s current price is 180% higher than its average realized value, making it significantly overvalued.
As for BTC daily transactions, a look at the coin’s ratio of daily transaction volume in profit to loss showed that for every sale transaction that ended in a loss, 2.03 returned profit.
Arbitrum DAO backtracks on funding Tornado Cash developers' defense
Key points:
The Arbitrum DAO has deleted the proposal to allocate $1.3 million worth of ARB tokens to the legal defense of Tornado Cash’s developers.
This was following the deletion request by the proposal’s author.
News - Arbitrum’s governing body has deleted the proposal that sought the allocation of funds from the project’s wallet toward the cost of legal defense for Tornado Cash developers.
Why the proposal was deemed necessary? In August 2023, allegations were levied against Tornado Cash and its founders, Roman Storm, Roman Semenov, and Alexey Pertsev, for using the platform to launder over $1 billion in illicit funds.
Pertsev was arrested in the Netherlands in August 2022. A year later, Storm was arrested by the Federal Bureau of Investigation. While Semenov’s whereabouts remain unknown, the United States Treasury’s Office of Foreign Assets Control (OFAC) added his name to its Specially Designated Nationals and Blocked Persons (SDN) list on 23rd August.
Details of the now-deleted proposal - The proposal authored by an Arbitrum contributor, Joseph Axisa, outlined a plan to allocate between 200,000 and 600,000 ARB tokens worth around $400,000-$1.2 million to the legal defense of Storm and Pertsev.
Had it been approved, the funds would have been directed to WeWantJusticeDAO's crowd-funding campaign. This campaign manages the legal expenses for Storm and Pertsev, which amount to approximately $100,000 per month.
No reason for deletion - While no specific reason was offered for the proposal’s removal, it was reported that it was deleted at the author's request. Before its removal, over 80% of votes cast favored the allocation of 600,000 ARB toward the defense of Tornado Cash’s developers.
SHIB climbs by over 60% in the last week, but risk lies ahead
Key points:
Shiba Inu’s price has climbed by over 60% in the last week.
However, the decline in demand hints at the possibility of a decline.
News - The value of the leading meme coin, Shiba Inu [SHIB], has rallied significantly in the past few weeks. Exchanging hands at $0.000035 as of this writing, the altcoin’s price has increased over 269% in the last month. In the last week alone, its value has gone up by 65%.
Why the surge? The recent uptick in SHIB’s value mirrors the general rally in the meme coin market. Currently valued at $63 billion, the meme coin market capitalization has grown by 31% in the last seven days.
During this period, the prices of other leading meme-based assets, such as FLOKI, WIF, and DOGE, have increased by 82%, 31%, and 8%, respectively.
SHIB cannot be lucky forever - An assessment of some key indicators on a single-day chart revealed a decline in demand for SHIB. For example, readings from the coin’s Awesome Oscillator showed that it posted red upward-facing bars in the past two days.
This indicator measures market momentum and potential trend reversals. When it returns red bars pointing upwards, it suggests that the price's short-term momentum is weakening or turning negative. This is a bearish signal and is often followed by a decline in an asset’s value.
Further, SHIB’s Chaikin Money Flow (CMF) initiated a decline two days ago. This indicator tracks the flow of money in and out of an asset. Therefore, when it declines, it signals a reduction in liquidity inflow into the market.
X is to blame for the $47 million lost to crypto scams in February
Key points:
In February, over $46.8 million was lost to crypto scams.
Most of these funds were stolen through the use of phishing comments on impersonated Twitter accounts.
News - In February, over 57,000 victims lost an estimated $47 million to phishing attacks. According to a new report by crypto security firm Scam Sniffer, phishing comments on impersonated Twitter accounts emerged as the leading method for luring victims to fraudulent websites.
Ethereum is the biggest victim - Per Scam Sniffer, Ethereum's mainnet was the most targeted, accounting for 78% of the stolen funds. ERC-20 tokens, the popular standard for tokens built on the Ethereum network, were the primary target, making up 86% of stolen assets.
The report pointed most of the ERC-20 tokens stealing was due to victims unknowingly signing malicious transactions on phishing websites such as Permit, IncreaseAllowance, and Uniswap Permit2.
Scammers are known to target the social media accounts of popular figures on X. They often create fake accounts, closely responding to the original ones and writing comments under their posts. Sometimes, they even hack into some of these accounts to share wallet-draining phishing links to unsuspecting victims.
A new technique has been devised - According to Scam Sniffer, wallet drainers now use Safe or Account Abstraction wallets as token approval spenders. This allows them to manipulate users into approving transactions without their knowledge or consent.
January takes the cake - Although there were more phishing victims in February than in January, the total amount stolen decreased. Additionally, February saw a significant decline in the number of victims who lost over $1 million.
More stories from the crypto ecosystem
Did you know?
El Salvador holds roughly 2,380 Bitcoins, purchased at an average price of $44,300, meaning the $105 million investment is now worth more than $155 million.
The recent rally market rally has 100% of all Optimism [OP] holders in profit.
In 2010, a man paid 10,000 BTC for two pizzas.
Top 3 coins of the day
FLOKI
Key points:
FLOKI’s value has risen by almost 1000% in the last month.
Key volatility markers show that the meme coin may experience price swings.
What you should know - FLOKI’s value has risen significantly in the past few weeks due to the recent meme coin frenzy. Trading at $0.0003 as of this writing, the altcoin’s value has gone up by 806% in the last month. However, the surge in value has brought about an increase in market volatility. An assessment of the token’s Bollinger Bands (BB) indicator revealed a wide gap between the upper and lower bands of this volatility marker. When the gap between these gaps widens in this manner, it indicates that price movements are becoming more erratic and unpredictable. Traders often interpret it as a signal of potential price swings in the near future. The token’s BBW also trended upward, confirming the increase in volatility. Spotted at 2.85, it has increased by over 700% in the last two weeks.
GALA
Key points:
GALA currently trades at a two-year high of $0.78.
Demand continues to pour in for the altcoin.
What you should know - A look at GALA price movements on a one-day chart showed that accumulation exceeded sell-offs amongst market participants. Readings from its MACD indicator showed the MACD line resting solidly above the trend and zero lines. At 0.01, the value of the MACD showed that the market was significantly bearish as traders favored accumulation. This was further confirmed by its DMI, with its positive directional index (green) resting above the negative directional index (red). When these lines are positioned this way, it implies that buyers are more active in the market and are exerting more influence on price movement than sellers. It often depicts the strengthening of a bullish trend.
NEAR Protocol (NEAR)
Key points:
NEAR’s price has gone up by 129% in the last month.
Sentiment remains bullish as price trends above the Parabolic SAR indicator.
What you should know - Trading at a two-year high, NEAR appears poised to continue its rally. The coin’s price trended above its Parabolic SAR indicator, which traders often use to make informed decisions about entering or exiting positions in the market. When it rests below an asset’s price, as in NEAR’s case, it indicates that the bullish momentum is strong, and the price is likely to continue rising. Most traders see it as a signal to consider buying or holding onto existing long positions. The rise in NEAR’s OBV showed that strong accumulation was underway. It was 1.15 billion, rising by 11% in the past five days.
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