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This year has had more than its fair share of scandals involving crypto exchanges and their shady owners. It seems that they are not finished yet as reports are emerging of another exchange boss doing a runner with the keys to the crypto wallets on a relatively unknown Asian exchange.

Crypto Exchange IDAX CEO ‘Missing’

According to a company announcement late last week the CEO of Asian crypto exchange IDAX has gone missing. That would not be so bad if he hadn’t taken all of the private keys to crypto cold wallets with him. The exchange added that deposits and withdrawals had been frozen leading to speculation over the theft of potentially millions of dollars.

“For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.”

CEO Lei Guorong may have reacted to the recent Chinese crackdown on exchanges which has resulted in a number of smaller ones closing up shop. IDAX appears to have operated out of Shanghai but had head offices in Singapore according to reports.

Estimations of how much exactly was stored on the exchange vary but some sources claim it could be in the hundreds of millions. According to Livecoinwatch IDAX daily volume is over $700 million, Coinmarketcap reports a similar figure.

News of this potential exit scam comes just days after $50 million in Ethereum was reportedly stolen from South Korean cryptocurrency exchange Upbit in a possible inside job.

Earlier this year the CEO of Canadian cryptocurrency exchange QuadrigaCX reportedly passed away taking the company’s private keys and $130 million worth of digital assets with him.

So far this year at least seven exchanges have been hacked including Cryptopia, DragonEx, Bithumb, Binance, Bitrue, Bitpoint, and most recently Upbit.

These unfortunate incidents further tarnish the industry and should lead to a massive rethink of how investors deal with exchanges.

Falling Trust In Exchanges?

Contrary to the entire ethos of Bitcoin and its brethren, crypto exchanges are nothing more than digital banks, replacing the traditional ones that everyone initially wanted to distance themselves from.

They make millions in profits from trading commissions, spreads and fees and are in reality no different to and bank profiting off their customer’s money.

Smaller exchanges such as IDAX are clearly high risk entities with all assets in the hands of usually a single entity who owns the platform. Larger ones such as Binance roll some of their burgeoning profits back into insurance funds to cover any losses.

Upbit will not be the last exchange to get hacked and IDAX won’t be the last exit scam. The lesson here is clear; the only way to have full control and access to your digital assets is to store them on your own cold wallet. As the axiom goes ‘not your keys, not your crypto’.

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Martin Young , 2019-12-02 07:45:19

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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