Crypto Cliffside: FTX Sell-Off? and when to Buy the Bitcoin Dip
Interviews with SHRAPNEL Web3 Gaming, Bittrex Global w/ SEC, Concordium Layer 1, and more alpha.
Another week in September has passed, and BTC and ETH prices continue to perch precariously on the edge of a cliff, with hopes they won't experience a significant tumble. In the midst of this, FTX's sell-off news has stirred up the altcoin market, and I dive into interviews with the best Web3 game on the horizon (SHRAPNEL), the OG cryptocurrency exchange (Bittrex Global), and an early internet pioneer to discuss the regulation required for the next bull run!
FTX Sell-Off: Solana, Ethereum, Aptos, Tron, and More Facing Impending Dump?
One major event from the past week that has ignited extensive discussions is the impending sale of FTX assets, necessary to reimburse creditors and users with funds tied up in FTX.
There's a prevailing sense of apprehension (and some confusion) in the market regarding the release of certain crypto tokens held by FTX, which will ultimately be sold to settle outstanding debts.
Among their assets, Solana stands out as the most substantial, constituting over 10% of the current market. However, an outright dump of these assets is not feasible due to agreements FTX made when acquiring SOL. Many of these assets are locked up for the long term, with some becoming available for release in 2025, while others are slated for release in 2027 and 2028 and beyond.
With many failing to grasp the finer details and influencers on Crypto Twitter simply resharing "FTX Dumping SOL," there has been an atmosphere of fear and uncertainty surrounding SOL over the past week. You can find a detailed analysis of price levels for dip buying in the Market Analysis section at the bottom.
The other asset they hold that experiences significant selling pressure compared to the daily trading volume is TRON (TRX). However, Justin Sun, the Founder of Tron, offered via Twitter to repurchase TRX over-the-counter (OTC) in an effort to prevent market disruption. Justin Sun is known for his willingness to do almost anything to garner public attention and support the TRX market.
Lastly, APT Aptos appears to be under considerable selling pressure, evident from the amount held by FTX, although a lot of this is also locked up. Should we closely monitor the APT chart for potential downward movements?
Now, let's delve into what is necessary for the next bull run!
Regulation: Impeding or Advancing Innovation in Crypto?
What kind of crypto regulation is essential for the upcoming bull run?
I engaged in an intriguing discussion about whether regulation poses a hindrance or a catalyst for innovation in the crypto sphere. Does regulation stifle innovation, or does it foster it?
This conversation took place with Lars Seier Christensen, a pioneer who witnessed the early days of internet innovation and constructed one of the first trading platforms in the late '90s, and is still in the game, now Co-Founding Corcordium, a layer 1 blockchain.
His perspectives on the regulatory prerequisites for the next bull run were eye-opening. I hope we can expedite their implementation. so we can get on with it.
If you're keen to hear Lars's insights on the impending bull run, Layer 1 protocols, regulatory matters, and more, don't miss my latest interview series with him:
Bittrex Global Settles with the SEC:
Numerous exchanges have been resolving their regulatory issues with the SEC.
That's precisely what Bittrex Global accomplished when the SEC initiated action against them for subpar exchange operations. They have since reached a settlement and are poised to continue their expansion into the upcoming bull market.
Were you aware that Bittrex has been in operation since 2014 and served as the preferred exchange for many early cryptocurrency traders, predating the existence of Binance? Have you ever utilized Bittrex? They were renowned for offering access to lower market cap coins that were not available elsewhere. However, with the emergence of Binance, market share shifted towards the latter, and Bittrex, while still in operation, lost some of its popularity.
Nevertheless, they remain in the market and offer unique advantages. I had the opportunity to converse with the CEO of Bittrex Global about their SEC settlement and their path forward.
Web3 Gaming: SHRAPNEL.
SHRAPNEL is a groundbreaking first-person moddable extraction shooter game with full integration of NFTs and Web3 technology.
My recent conversation with the SHRAPNEL team on the Crypto Coin Show marked the third time we've delved into their project, and with each interaction, my excitement for the game's launch grows. This game could potentially be the catalyst for mainstream recognition of NFT tokenization and Web3 integration within the gaming industry, which, needless to say, dwarfs the Web3 sector in scale.
As expected, creating such a monumental game takes years, so the fact that it's still in development only adds to the anticipation. I extend my gratitude to Don Norbury, the Head of Studio, for joining the show and sharing the latest updates about the game, NFT collections, and how individuals can get involved and invest their time prior to the game's release.
They are planning to release a short playable version by the end of this year, so stay tuned, and watch my video with Don for the latest!
Other Crypto News:
Metamask now supports Bitcoin, Cosmos, and other UTXO chains. Trade BTC right from your browser extension using the THORChain Snaps extension into MetaMask
A new court filing shows that the FTX estate holds almost $7 billion in assets, including $1.16 billion in Solana (SOL), many altcoins and 38 properties in the Bahamas.
Bull Bitcoin becomes the first and only Bitcoin exchange in Costa Rica that lets users buy and sell Bitcoin using SINPE Movil, the country’s most primary fiat payment system. This is a huge advancement for Bitcoin in all of Costa Rica, not just “Bitcoin Jungle”.
$1.5 trillion asset manager Franklin Templeton has officially applied for a spot Bitcoin ETF
Hedera (#HBAR) is launching an all in one, open source, enterprise grade, Stablecoin Studio for issuing, configuring, managing stablecoins by institutions.
NFT Project Stoner Cats charged by the SEC. They have to return the $8M raised and pay a $1M fine. Stoner Cats was created by Orchard Farm Productions, the production studio of actress Mila Kunis, who also voiced one of the feline characters in the cartoon series.
Crypto exchange Huobi to rebrand from "Huobi" to "HTX" with a new brand slogan - "HTX, Just Trade It".
CoinEx exchange confirms hack after $54 million allegedly stolen from exchange. Crypto sleuth ZachXBT has announced it appears North Kora is responsible for the hack, after they tied one of their addresses to the other recent hack of Stake.com for $41M which was also attributed to them weeks ago.
Market Analysis:
$BTC Bitcoin:
The BTC market is currently in uncertainty, as the first half of this week witnessed a significant sell-off, causing BTC to dip into the upper boundary of the initial Reload Zone and briefly touch $24,900. A relief rally has managed to push BTC back higher, possibly influenced in part by the news of $1.5 trillion asset manager Franklin submitting an application for a Bitcoin spot ETF.
As for the technical indicators, both EngineeringRobo and CryptoBirb's indicators are signalling SELL on the daily (1D) chart. However, EngineeringRobo is now displaying early signs of a BUY signal on the 12-hour (12H) chart. It's worth noting that this potential BUY signal could be a result of a short squeeze, aimed at liquidating those who have taken short positions, followed by another downward move into the lower portion of Reload Zone 1.
The market's behavior remains unpredictable, so it's crucial for traders and investors to stay vigilant and monitor the situation closely. When the market dips, it often does very fast.
$SOL Solana:
Amidst the uncertainty surrounding FTX's selling pressure, despite a significant portion being locked up, many traders are actively seeking favorable opportunities to accumulate SOL. EngineeringRobo's analysis indicates that SOL is currently in a SELL position across various timeframes, including the daily (1D), 12-hour (12H), and 3-hour (3H).
The next initial support level for SOL is located at approximately $16.99. However, it's worth noting that this level may become vulnerable if there's a substantial sell-off in the BTC market this month. Additionally, traders are eyeing the first Reload Zone (RLZ1), which spans from $12 to $14. If market conditions favor it, there's a chance of encountering a second Reload Zone (RLZ2) around the $10 mark, although this outcome is considered less likely.
While the entire supply of FTX SOL won't be dumped all at once, it will be gradually sold over the coming years as it becomes unlocked. Additionally, FTX aims to secure the best possible deals by exploring over-the-counter (OTC) sales options to avoid causing market disruptions and harming their own interests. Here's a glimpse of some of the unlock timings, including purchasers with monthly linear unlocks and a substantial chunk unlocking after March 1, 2025.
It's conceivable that market makers may attempt to drive up SOL's value in 2024 to maximize their returns when selling the future unlocked tokens.
Furthermore, the Solana ecosystem is displaying robust growth, with Total Value Locked (TVL) exceeding $300 million, decentralized exchange (DEX) volumes surpassing $20 million, and a recent significant partnership with VISA adding to its momentum.
That’s all for this episode. Thanks for reading!
-Ashton Addison, CEO of Crypto Coin Show