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Weiss Ratings claims correlation between Binance Coin and cryptocurrency market’s performance

Jibin M George

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Source: Pixabay

The crypto-rating giant, Weiss Ratings, has been in the news for quite a while now. However, none of its news-making antics over the past few weeks have reflected positively on Weiss Ratings itself. If getting called out for predicting a crypto-surge after the fact wasn’t enough for the ratings agency, Weiss Ratings is in the headlines again after making an astounding claim.

The ratings agency incited quite a reaction after positing that Binance Coin may be the new Bitcoin [BTC]. Weiss made the hypothesis after claiming that the collective cryptocurrency market’s pumps usually coincided with and followed a similar pump in Binance Coin’s price and vice versa. The agency’s full tweet read,

 “It seems #BNB is leading the market now – when BNB is up, the market is up – and vice versa. Is BNB the new #BTC? #bitcoin #crypto”

Weiss Ratings’ hypothesis is flawed on many counts. For starters, when compared to other major coins in the coin market, Binance Coin remains a new entry to the cryptocurrency market. Despite the dominance of Binance as a top cryptocurrency exchange, Binance Coin’s market share and daily transaction volumes remain a mere fraction of the king coin’s metrics.

While the king coin holds a market cap of over $97 billion (over 53% of the market share), BNB’s market cap is a mere $3.3 billion. Also, since the crypto-exchange, Binance, handles over 40% of Bitcoin trading volumes, it can also be argued that Binance itself has contributed to Bitcoin’s growth.

There are a few more flaws with the hypothesis. Since BNB remains a new entry to the cryptocurrency realm and given the volatility of the market, it’s unlikely that Weiss Ratings has an adequate sample size or a wider time frame to make such an assumption. Further, given the fact that the crypto-winter loomed over the cryptocurrency market for much of last year, it’s unlikely that Weiss could have tested the “when BNB is up, the market is up” proposition since the market was down for most of the time period.

At press time, Bitcoin, the world’s premier cryptocurrency, was surging by 4.93%. Additionally, major altcoins such as Cardano, Bitcoin Cash and Litecoin were also surging by 9.25%, 5.25% and 3.51%, respectively. Contrary to the collective market movement, however, Binance Coin [BNB] was down by 1.10%.

Further, Binance Coin pumped significantly last week on the back of the DEX announcement. On the other hand, the collective market was trading sideways. Ergo, the hypothesis that the market is up when BNB is up or vice versa is immediately disproven.



Twitterverse did not take kindly to Weiss Ratings’ new hypothesis. @XRPGhostmurdock responded,

“How lame is the social media team for Weiss ratings. Whoever they are they should be fired for putting out juvenile and terrible content.”

This is not the first time Weiss has been trolled for its social media “predictions” and “hypotheses” though. The ratings agency came under fire after claiming that its “model” correctly predicted Bitcoin’s surge in early-April. Weiss was called out for making the claim after the fact.





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Bitcoin

SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change

Priya

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SEC delays VanEck Bitcoin ETF decision days after delaying the Bitwise proposed rule change
Source: Unsplash

The Securities and Commission Exchange [SEC] has yet again delayed another Bitcoin ETF. This time around, the commission has decided to delay the VanEck Soldix Bitcoin ETF, one of the most awaited exchange-traded funds in the cryptocurrency community.

In the document released today, the exchange has asked for more comments on the proposed rule change and has also asked for further information on queries related to the exchange-traded fund. The commission stated that it has received 25 comments on the proposed rule change so far.  It stated,

“On January 30, 2019, Cboe BZX Exchange, Inc. […] filed with the Securities and Exchange Commission, […] a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust […] The proposed rule change was published for comment in the Federal Register on February 20, 2019.”

It further stated

“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Notably, the main concerns of the commission continue to be market manipulation and the measure taken by the platform to protect its investors. The commission is currently seeking comments on 14 queries pertaining to the VanEck Bitcoin ETF.



This includes the views of the ‘commenters’ on whether the exchange has entered “into a surveillance-sharing agreement with a regulated market of significant size related to bitcoin?”, the relationship between the Bitcoin futures markets and the Bitcoin spot market, with the focus being price formation, the relationship between the Bitcoin futures market and the proposed Bitcoin ETF, and the commenters’ views “of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs”.

Gabor Gurbacs, Director of Digital Assets Strategy with VanEck said on Twitter,

“The VanEck SolidX #Bitcoin #ETF decision has been postponed by the SEC. We continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore. Vires in numeris!”





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