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Bitcoin SV [BSV]: Calvin Ayre-backed Coingeek article claims Binance is involved in ‘criminal operations’




Bitcoin SV [BSV]: Calvin Ayre owned Coingeek reports claim that Binance is involved in ‘criminal operations’
Source: Pixabay

Bitcoin SV [BSV], the BCH hardfork, and Binance, the largest cryptocurrency exchange in the world, have been at loggerheads since the exchange delisted Satoshi’s Vision last week. It looks like their dispute isn’t over yet, with Coingeek, the BSV mouthpiece, reporting that Binance plays a part in “criminal operations,” citing several sources.

Calvin Ayre, one of the spearheads of Satoshi’s Vision project and his acquired crypto-media house, Coingeek, recently released an article titled, “Binance ‘most likely involved in criminal operations’: report,” detailing the exchange’s misgivings in terms of exchange volumes, in light of recent reports that indicate the same.

The main source credited by Coingeek was a recent video by Chico Crypto, spelling out fake volume and wash trades based on the groundbreaking Bitwise Asset Management report. According to the report, only ten exchanges reported “real volume,” with Binance being one of them.

However, among the ten exchanges, Binance was the only exchange that was neither registered as a Money Services Business [MSB] under the Financial Crimes Enforcement Network [FinCEN], nor had a BitLicense, the regulatory license required to operate in the state of New York.

The Bitwise report also highlighted [which Coingeek did not shed light on] the lack of market surveillance tools employed by Binance. It should be noted that such tools were not incorporated on bitFlyer, Bittrex, itBit and Kraken either. The report stated that this tool can “help detect market manipulations such as spoofing and wash trading through the real-time and historical analysis of trades, order books, and other market information.”

Coingeek backed Tyler Swope, the host of Chico Crypto’s, who posed the critical question to the exchange,

“If Binance has nothing to hide and their volume is real and they’re not doing anything illegal, why wouldn’t they get both of those?”

Binance has had a prominent history of jumping through hoops to avoid regulation. Moving from China to Japan and now, to Malta in search of their regulatory paradise. Also, the exchange is pushing the boundaries to avoid working with banking institutions, even chiding fiat support. The exchange instead, opts for Tether [USDT] as a base pair, despite the top stablecoin reportedly not being backed one-for-one by US Dollar reserves.

Another key issue highlighted by Binance’s critics was the lack of KYC and money laundering policies implemented by the exchange. In light of this, the exchange partnered with IdentityMind, a risk management firm to shore up its security policies. This indicated self-regulation over imposed regulation, to the larger cryptocurrency community.

The other report cited by Coingeek was the “Market Surveillance Report” for April 2019 by Blockchain Transparency Institute [BTI]. The report suggested that Binance and Bitfinex had “over 10% wash trading.” However, BTI added,

“Binance’s top volume pairs are also largely clean as we suspected, however, market makers and bots are taking advantage of around 30 pairs on the exchange. We have found Binance to be about 85-90% clean depending on the day.”

The top crypto-exchange was “unverified” by BTI, at the time of writing the report and hence, presented no “major red flags.”

Interestingly, what Coingeek failed to mention was BTI’s December 2018 “Exchange Volumes Report” that identified only two exchanges that were not “grossly wash trading their volumes,” Binance and Bitfinex. The two exchanges had 100 percent real volume, while exchanges like HitBTC and Huobi had under 27 percent.

Source: BTI

BTI’s Exchange Volumes Report stated,

“Most of these pairs’ actual volume is under 1% of their reported volume on CMC. We noted only 2 out of the top 25 pairs not to be grossly wash trading their volume, Binance and Bitfinex.”

Additionally, a report from The Tie analyzed cryptocurrency exchanges’ expected volume with their reported volume and suggested that Binance’s volume was 78.82 percent, placing it in the category of “Low Potentially Fake Volume.” OKEx, which recently partnered with RelayX’s Jack Liu to launch FloatSV ,a “Bitcoin SV based exchange,” accounted for 5.94 percent of “Expected to Reported Volume,” suggesting “High Potentially Fake Volume.”

Despite the above, Coingeek reiterated Swope’s concluding comments, stating,

“Binance has many things to hide and will never get regulatory approval because they are most likely involved in criminal operations.”

Further, going by Calvin Ayre’s comments, Bitcoin Cash [BCH] advocate and CEO Roger Ver is also a part of this Binance “scam.” Ayre stated the same, citing “industry rumor.” His tweet read,

Source: Twitter

This line of reporting from the Calvin Ayre-backed media house comes as no surprise, given the feud between the BSV camp and Binance over the past few weeks. Binance triggered a delisting landslide for BSV, following Ayre’s legal charge against those who disputed Craig S Wright’s “claim” of being the real Satoshi Nakamoto.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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