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Crypto Firm Freeway Updates Community, Says Trading Strategy 'Failed' and 'Caused a Substantial Loss' – Bitcoin News – Bitcoin News

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by Jamie Redman
Four days ago, the crypto rewards platform Freeway.io, formally called Aubit, halted withdrawals on October 23 after citing it was protecting the firm’s portfolio from “market fluctuations and volatility.” Two days later, the team updated the community and explained on Tuesday that “one of Freeway’s trading strategies appears to have failed and caused a substantial loss.
The crypto rewards company Freeway.io was a platform that claimed to offer up to 40% annual percentage yield (APY) on “Supercharger” accounts. However, on October 22, the whistleblower known as “Fatman” published a tweet that warned people to get their funds off the Freeway platform.
“I believe they are operating a Ponzi scheme,” Fatman told his 103,000 Twitter followers. “In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything.”
The following day, Freeway published an update that said it had to reallocate funds in order to protect the rewards company’s portfolio from “market fluctuations and volatility.” Amid the reallocation process, it said that operations would be halted and it could not comment further on the situation.
The news was followed with intense speculation and claims that some of the company’s employees were erased from the firm’s web portal. An internet archive of the company’s website confirms that specific employee names were deleted from the site at some point during the end of September. On October 25, Freeway’s Twitter account gave the public an update on where the company stands.
The language used is ambiguous and the team’s Twitter thread says: “The following is our understanding: One of Freeway’s trading strategies appears to have failed and caused a substantial loss to be incurred due to unexpected market volatility.” Freeway claims that it observed two “converging factors” that led to the incident — “the unprecedented USD rally and crypto volatility.”
Interestingly, the U.S. dollar rally has been known for quite some time and the so-called “unprecedented” rise has been well documented by the financial media. The U.S. dollar has been on the rise for well over six months and crypto volatility has been super minimal in recent times compared to most global assets.
Freeway further said that the “trade execution carried out by the Ardu Prime Brokerage had nothing to do with this failure.” The company insists that the “trading strategy was executed as it was programmed, but the market volatility caused a spike in margin utilisation leading to the loss.”
The crypto rewards company Freeway added:
Unfortunately, the trading loss that has been incurred has dramatically impacted Freeway’s portfolio, but, having been made aware of these losses we are taking steps to secure Freeway’s remaining funds, and have already moved out of the loss-producing strategy.
Freeway also detailed that four different recovery plans were in motion and one of them plans to allocate “funding in a totally new product with impressive projected profitability.” The company closed the Twitter thread by saying that the recovery plans will take time and the plans need to be executed before it resumes Supercharger operations again.
“In order for us to resume Supercharger buy-backs we need to be in a position to execute safely,” Freeway said. “We will therefore need to see significant inroads into the losses before that can happen, and that will take time.” Freeway’s Twitter thread is locked and only people Freeway mentions (@) can reply to the company’s update.
The Freeway team’s Twitter thread concludes:
We know your next question is going to be about the length of time involved. We do not have an immediate answer for this.
Freeway’s native crypto asset called freeway (FWT) is down close to 80% against the U.S. dollar during the last seven days. During the last 24 hours, however, FWT has seen some gains and managed to climb from $0.00114042 per unit to $0.00147076 per FWT.
What do you think about Freeway’s latest update saying that it suffered from a “substantial loss” stemming from a trading strategy? What do you think about the firm saying it does not have an “immediate answer” for when operations will resume? Let us know what you think in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Why is Bitcoin price up today? – Cointelegraph

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Bitcoin, altcoins and stocks rallied after data showed United States payrolls surged, but is the current bullish momentum sustainable?
Bitcoin price is up on Nov. 4, and a marketwide rally in crypto prices suggests that Bitcoin (BTC), BNB (BNB) and Ether (ETH) are starting the month of November in the black. 
Bitcoin and the market are fighting back after the United States Federal Reserve’s Nov. 2 announcement of a 0.75 basis point interest rate hike that, at first, had a positive impact on equities and cryptocurrency markets, then led to a market downturn.
Despite the downward pressure, Bitcoin maintained the $20,000 price floor and now is over $21,000 as the general market responds to strong jobs numbers and employment data. 
The jobs report shows that payrolls grew 261,000 in October as labor participation fell. The report sent equities upward as investors analyzed the numbers to show an overall resiliency in the market even against the expected Federal Open Market Committee (FOMC) rate raise of 0.75%. 
As reported by Cointelegraph, Bitcoin and other cryptocurrencies like Ether and BNB will likely remain closely correlated to U.S. equities and display the same price dynamics. 
Hand in hand with Bitcoin’s growth, most major cryptocurrencies — including Ether, Bitcoin Cash (BCH), Solana’s SOL (SOL), Cardano’s ADA (ADA), Polygon’s MATIC (MATIC), Ripple’s XRP (XRP) and Tron’s Tronix (TRX) — briefly registered green candles after the jobs announcement. There are several reasons for the recent movement. 
The current rally in BTC and altcoins could indicate an increase in confidence in the market following several key developments.
Here are three reasons why Bitcoin price rallied and then retraced today, and the details of key drivers of the growth.
Since Bitcoin price crashed to $17,600 on June 18, the open interest of BTC futures contracts has been surging. Sharp price moves in Bitcoin price could trigger another liquidation event, but it is difficult to determine whether the move would be to the upside or downside.
Many traders agree that if the Fed were to pivot on its current policy of quantitative tightening and interest rate hikes, BTC price could surge to the upside and liquidate a significant portion of the short interest in futures contracts.
The current price move triggered a wave of liquidations, and one data point to keep an eye on is whether there is a sharp reduction in aggregate open interest. Data shows that $704 million in cross-crypto shorts were liquidated on Oct. 25, helping propel Bitcoin over $20,000. 
Short liquidations directly help push Bitcoin price higher by forcing automated buy pressure. The current rally is seeing open interest gaining momentum after remaining consistent in October, which explains much of the sideways trading as well as the current rally.
Investors’ confidence in the crypto market could also be rising due to their belief that the United States Federal Reserve could roll out smaller-sized interest rate hikes in the next two months. 
In the Fed’s statement, the possibility of policy shift does remain open:
According to MacroMicro, a firm that publishes investors’ consensus estimates on expected changes in interest rates, interest rates may be lower than previously anticipated in the near future. 
The graph above points to a possible slowdown in interest rate hikes. The public sentiment shows that future rates may fall, and investors believe that this has created the possibility for a broad crypto market recovery.
The S&P 500 provides a general overview of the economy in general. Currently, Bitcoin and the S&P 500 share a high correlation coefficient.
Therefore, if interest rates ease and the economy grows, Bitcoin could reverse course if a similar turn-around were to take place in equities markets. The better the macro climate, the better for Bitcoin price. 
Related: Bitcoin bulls face $21K sellers as BTC price wipes out Fed FOMC losses
Bitcoin remaining over $20,000 is significant to traders who view the level as a major psychological support and resistance. On-chain data currently confirms that a $20,000 floor may not be purely speculative but also technically sound. 
Bitcoin’s realized price is currently concentrated between $17,000 and $22,000, highlighting a strong base of holders.
In addition to realized price distribution, Bitcoin long-term holders are not only still in profit, but 60% of all long-term holders are in profit.
Some investors might interpret Bitcoin’s current low volatility, steady consolidation within the $20,000 range and the unwillingness of sellers in the midst of the current equities-driven headwinds as a sign that the price has bottomed. 
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin Bling: Drake Is Latest Rapper to Flex Iced-Out Ledger Wallet – Decrypt

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Famed rapper Aubrey "Drake" Graham is a known Bitcoin fan, having previously won big on Bitcoin-based Super Bowl bets and other crypto-centric wagers. And he apparently stores his BTC holdings in style, if a new Instagram share is any indication.
The Grammy Award-winning Canadian musician took to Instagram on Friday to post an image of a diamond-encrusted Ledger hardware wallet on a marble countertop with the caption, “Waiting on you, Bitcoin.”
Drake is the latest notable rapper to spotlight a Ledger hardware wallet, with previous examples coming via partnerships and product placement deals with the company. This time around, however, Ledger swears that it’s not involved.
We went on Instagram this morning and saw @Drake flexing his iced out Ledger Nano, so that's pretty cool. pic.twitter.com/ZNafzwxXUt
— Ledger (@Ledger) November 18, 2022

“We learned about Drake's iced-out Ledger the same way the rest of the world did, via his Instagram story today,” Ledger’s VP of Communications Ariel Wengroff told Decrypt via email. 
“Ledger doesn't have a partnership with Drake and didn't give him that Ledger, but we're not surprised Drake gets the power of self-custody and protecting his assets,” she added. “Self-sovereignty above all else.”
Back in May, rapper Gunna wore a 20-Carat diamond chain at the Met Gala with a diamond Ledger pendant via a partnership with the company.
Rapper YG, meanwhile, featured a Ledger wallet in a music video for his song “Scared Money” with J. Cole earlier this year. In the video, YG shows off his Ledger in multiple shots and holds it up to the camera. Ledger also partnered with rapper Saweetie for her video “Closer” with singer Doja Cat, featuring an iced-out hardware wallet.
In "Ledger becomes part of pop culture" news, rapper @Saweetie seen using her @Ledger Nano in her latest music video. 🎵
Check out the video right here: https://t.co/m0HaUcKqcx pic.twitter.com/KJ574nMpX3
— Pascal Gauthier @Ledger (@_pgauthier) February 16, 2022

Now that’s a rich flex. Decrypt reached out to Drake and his representatives for comment, but they did not immediately respond.
While it’s unclear exactly how much Bitcoin Drake currently holds, he's known for making major sports wagers using the leading cryptocurrency. In addition to his Super Bowl winnings, he won over $1.4 million worth of BTC last summer in UFC bets on the gambling website, Stake, from wagers totaling nearly $2.3 million. The site, which Drake has partnered with, allows users to make bets using cryptocurrency.
Drake often posts the results of his gambling with Bitcoin on Instagram, and previously streamed his bets on Twitch under the handle StakeDrake. However, concerns surrounding the ethics of livestreamed gambling led to a platform-wide gambling ban on Twitch in September.
Casino.org reported in August that the rapper had already gambled over $1 billion worth of cryptocurrency on Stake in a two-month period—though it's unclear how much of that money is actually his.

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Bitcoin Price Prediction as BTC Prepares For 30% Move Up – Cryptonews

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Bitcoin is trading down 2% on the day after a wider pullback in the global markets. At the time of writing, BTC has been rejected from the $21,000 level and is looking to consolidate at the $20,000 zone before starting the next leg up.
Amazon saw a significant 20% drop in after-hours trading as a result of missing earnings expectations. This caused a widespread sell-off in the markets as fears of a recession resurfaced. Over $230 billion was wiped off Amazon’s market valuation after the market closed, one the largest such decrease in history. 
CEO Andy Jassy said in the company’s Q3 earnings release,
 “There is obviously a lot occurring in the macroeconomic climate, and we’ll balance our investments to be more streamlined without jeopardizing our major long-term, strategic commitments.” 
Amazon’s decline this year is indicative of the uncertainty in which tech titans around the world have found themselves, with this having knock-on effects in the cryptocurrency markets as well. 
Meta, another large tech firm, has seen its stock price drop below $100 this week, bringing it back to 2015 levels.
The price of Bitcoin (BTC) is closely related to the value of equities, particularly technology stocks. Over the past few days, the correlation between Bitcoin and the S&P 500 has risen to 0.73 (blue).
The current Bitcoin price is $20,159, with a $47 billion 24-hour trading volume. Bitcoin has dropped by more than 2% in the last 24 hours.
Bitcoin’s upward trend appears to be weakening as it fails to break through the major resistance level of $21,000. Unsurprisingly, sellers are entering the market, causing a bearish correction and possibly profit-taking before the weekend.
At $21,000, Bitcoin has completed a 61.8% Fibonacci retracement, and candles closing below this level are causing a bearish correction. The RSI and MACD entered the overbought zone, adding to the bearish price action.
In contrast, the 50-day moving average suggests buying above $19,600. A break above the 61.8% Fib level has the potential to extend the buying trend to $21,900. If the current upward trend continues, Bitcoin could reach $22,500 within the next couple of days.
On the downside, Bitcoin’s immediate support level is still near $19,900, where buyers could step back in.
A lower-than-expected rate hike from the Federal Reserve in the coming week may contribute to a 30% rally in Bitcoin and the wider altcoin markets. The next important date to look out for is: November 2nd for the Fed’s interest rate decision.
For traders who are perhaps looking for gains in the shorter term, then presales are the way to go. 

One promising ongoing presale is Dash 2 Trade – a crypto analytics and intelligence platform that aims to provide real-time trading signals for traders and investors. Think of it as a Bloomberg Terminal for crypto enthusiasts.

At a time when presales are doing particularly well, D2T is poised to continue this positive momentum.
D2T tokens are currently available to purchase for $0.05 USDT but this price will increase as the presale goes on.
Visit Dash 2 Trade now
A quick 3min read about today's crypto news!

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