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Crypto Market Watch: YAM Finance Takes an Outrageous Plunge, LINK, AMPL, LEND Continues in Gains

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In Brief:

  • LINK takes the lead as DeFi tokens rise again
  • AMPL breaks resistance level at $0.80 to the top level
  • LEND adds to a week’s gain with today’s gains
  • YAM finance experiences a staggering 97% fall

Decentralized finance (DeFi) continues to see rapid growth as significant interests have been shown towards it in the crypto community. Throughout the year, decentralized exchanges have experienced an impressive rise in exchange volume. It is also quite difficult to ignore the uprising of several tokens which along the line, have presented different business propositions.

Today, amid many days of bullish markets, LINK, LEND, and AMPL are making constant gains. These coins have seen new highs and their voyage for greater heights is undebatable. Among the top players of the industry includes LINK, which has proven to be the most outstanding crypto since the beginning of the alt season. 

Today’s Top Gainers in the Crypto Market

1. Chainlink (LINK 22.9% Gain): LINK receives the top recognition amidst the top gainers, with a 22.9% gain. This valuable crypto seems to be reporting more gains this time, after having accomplished more than a 50% gain within the last one month.

Chainlink

In the last year, the coin has been up by 555%, and up by around 115% in the last month. Though the coin lost 0.6 earlier in the day, LINK looks positive in the daily timeframe.

Link is currently trading at $17.86, and it’s market cap is fluctuating around $4.0 billion.

Technical Indicators

  • Next major resistance at $20
  • Next major support level at $15
  • Prices may ride down in a possible correction as RSI joined the 70.0 overbought condition.

2. Ampleforth (AMPL 17.4% Gain): AMPL maintains the second position on the list of today’s top gainers with a 17.4% gaining record. AMPL documents this earning as a contribution to the bull run from yesterday and several days of price increase.

Ample forth

As an effect of this massive gain, there has been a buying pressure within the last 24 hours. AMPL’s exchange volume in the last 24 hours is roughly $47 million. Presently, AMPL is trading at $0.619, around a market capitalization of $273 million.

Technical Indicators

AMPL rose with a 17% profit, all the way to $0.85, after breaking the resistance level at $0.80.

  • Next major resistance $0.9
  • Next major support at $0.85
  • RSI approaching overbought condition at 70.0

3. Aave (LEND 11.2% Gain): Also featured in today’s top gainer’s list is LEND with a gaining record of 11.2%. In the last week as well as the past month, the coin gathered earnings up to 35% and 89.4% respectively. Ultimately, the coin has excelled in the past year, having accomplished brilliantly with an increase in profit of about 12,000%. 

Aave Lend

The market understanding seems bullish in the short term, as 71% of market respondents are bullish on LEND. On the other hand, however, 29% remain bearish on the coin.

Technical Indicators

There is an obvious price increase above the Bollinger top, indicating that the prices are likely to head to the $0.5 level. With prices climbing above the top of the Bollinger Band, LEND/USD looks bullish.

  • Next major resistance lies at $0.5
  • Next major support level at $0.4
  • RSI moved into the 70.0 level and further move upwards seems highly likely.

Elsewhere, controversial Defi project, YAM Finance, is working out a rescue plan to settle its investors following a recent network collapse. This news came following a flaw detected in the system which has caused a staggering 97% fall in rates for both YAM’s token price and its market capitalization.

Yam Finance

At the time of writing, YAM’s market capitalization has taken a downward slide from the usual $475 million to about $19.5 million, in just an hour. YAM, which used to trade at $170 per token, now trades at $0.92.

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Market Watch

Jack Dorsey‘s Square to develop open source Bitcoin mining

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Jack Dorsey Bitcoin

On Friday, October 15, Twitter CEO Jack Dorsey announced that American fintech company, Square, would be looking to get into Bitcoin mining. Jack Dorsey who is also Square’s CEO announced this on Twitter which subsequently sent waves through the bitcoin market, surging its price to almost a record high, rising over $62,000 over the weekend. According to the Twitter boss, Square is looking to building an open source Bitcoin mining system that would be available to individuals and businesses.

Sharing his thoughts further on the initiative, he stated that “Mining needs to be more distributed” and that “the more decentralized [mining] is, the more resilient the Bitcoin network becomes. He also mentioned the apparent inaccessibility of mining stating that “Bitcoin mining should be as easy as plugging a rig into a power source.

Dorsey also believes that bitcoin mining “needs to be more efficient and that “clean and efficient energy use” would be undoubtedly beneficial to the digital currency in the long run.

Dorsey ended the thread by saying that a “technical investigation would be undertaken by a Square team led by Jesse Dorogusker, Square’s hardware lead. If successful, this initiative would be another of Square’s bitcoin focused projects which includes a Bitcoin hardware wallet.

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Learning Guides

Understanding Speculation and Crypto Volatility

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Everyone who dabbles in the crypto industry learns almost immediately that the market is very volatile and oftentimes things can change very quickly. That volatility is the fundamental reason why some investors make absolutely stunning gains in so short a time and others lose a lot of money as well. Trading in crypto is one of the riskiest ventures any person can undertake and as they say, it’s not for the faint of heart. The risks can be mitigated of course and sometimes depends specifically on the coin or crypto asset being traded on, barring general market trends.

Nevertheless, to get to the bottom of the volatility concept, one must understand speculation in the market. To start off, the concept of speculation isn’t limited to cryptocurrencies, on the contrary, speculation has existed for as long as economics and trading has. But it is worth saying that speculation is often a feature of novel sectors, assets, commodities and the like. So, even though cryptocurrencies have been around for more than a decade, they’re still in their infancy as far as markets go. One could say that the market is still trying to find its feet.

One of the fundamental reasons why cryptocurrencies are so volatile is that they are fundamentally backed by nothing of value outside the attention that they get. Unlike many fiat currencies which are either pegged to another currency’s value or whose value is unilaterally determined by a central authority, cryptocurrencies only derive value as a function of how many people are willing to use is to transact, i.e. trust in the asset because other people trust it. As a rule of thumb, the larger the number of people who accept the asset, the more valuable it becomes.

This is one of the hallmarks of speculative trading. In the crypto world or in any market that’s novel and untested, many people are in it to win it which means their strategies in trade has the objective of making as much profits as possible in the short term. Therefore, the market enters a subtly dangerous cycle of rapidly changing prices of assets. Basically, investors typically buy assets when prices are low and wait. As more investors are attracted to the commodity for its low prices, it sets off a cascade where more people buy in, causing the price to steadily rise. 

However, all good things must come to an end and it almost always gets to a breaking point whereupon the price gets high enough for investors to begin to sell. This reverses the earlier cascade and as more and more investors pull out, the prices can fall dramatically causing even more to sell off in fear of losing whatever investments they have left. The prices having fallen resets the game and primes investors to begin buying again.

Volatility has been one of the talking points of many critics of cryptocurrencies often comparing it to a Ponzi scheme. And in certain cases, persons of interest with large pulls and audiences can substantially affect the rate at which prices rise and fall. Other factors include government regulations. Volatility at its core reflects the often chaotic nature of trade and market interactions and human hopes and fears.

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Market Watch

What China’s crypto clampdown means for investors

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Over the weekend, China, the biggest crypto mining country once again, began to clamp down on cryptocurrency. Ten Chinese agencies including the central bank and banking, securities and foreign exchange regulators have vowed to work hand in hand to expose illegal cryptocurrency activity.

China has always placed stricter rules on cryptocurrencies but the new rule has made all crypto-related activities illegal. According to the People’s Bank of China (PBOC), it is illegal to cryptocurrency trading and anyone that does so will be severely punished; this includes those within China that are working for overseas platforms. To fully phase out the cryptocurrency mining sector, the National Development and Reform Council (NDRC) said that it would launch a nationwide crackdown on cryptocurrency.

Over the years, China does not recognize cryptocurrency as a legal tender. In 2013, the Chinese government referred to Bitcoin as a virtual commodity that individuals are allowed to freely participate in. This freedom, however, precludes banks and payment companies from providing services that are Bitcoin related.

In 2017, Initial Coin Offering (ICO) was banned. The ban was also extended to the conversion of legal tenders to cryptocurrencies by trading platforms which led most of the platforms to shut down operations in China. The crackdown led 88 trading platforms and 85 ICO platforms to withdraw from the market as of July 2018.

To China, the crackdown on cryptocurrency is necessary as the country is trying to launch its official digital currency and the need to fulfil its 2060 climate targets. The crackdown was necessary as cryptocurrency was seen as infringing on people’s properties and ‘disrupting the normal economic order.’

The statement by PBOC on Friday was unequivocal as the current crackdown is distinct from the previous ones. In his statement on Friday, PBOC called Bitcoin, Ether and Tether ‘legally irreparable’ and should not be used. The new regulations forbid financial institutions, marketing and IT providers from supporting crypto-related activities. The activities of both crypto holders and miners are now considered illegal. This is what Henri Arslanian, a PwC crypto leader termed as “No ambiguity. No room for discussion. No grey areas” in his tweet.  

What does this mean for crypto holders worldwide?

The major effect of China’s crackdown on cryptocurrency is the increase in price volatility. While volatility is a common phenomenon in the crypto world, a crackdown initiated by the world biggest cryptocurrency mining country will have a huge effect on market price.    

After the PBOC interview, Bitcoin fell by 4% within 24 hours and is currently trading at $43,320. Ethereum fell by 6% and it is currently trading at $3,036. With the Evergrande debt crisis and the huge blow bedevilling the crypto market, a clampdown by China would most likely keep the market price on the red until another good news crops up.

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