Larry Cermak

Data suggests retail investors are starting to enter again

Unlike all the previous rallies, it’s commonly accepted that the current price rise, which has seen the price of bitcoin go from ~$10,000 to more than $40,000 in only three months, has been driven by the entrance of institutional money. In H2 2020, MicroStrategy acquired $1.13 billion, Ruffer Investment bought about $744M, MassMutual another $100M, […]
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Jan 11, 2021, 11:55AM UTC

Looking at the effect of potential XRP delistings on exchanges

Last week, the SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen for conducting a $1.3 billion unregistered securities sale. The complaint also alleges that Ripple distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services. Moreover, Garlinghouse and Larsen purportedly personally sold $600 million worth […]
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Dec 28, 2020, 12:00PM UTC

A detailed look at the Ledger data leak and other recent incidents

Time and time again, centrally stored information has been breached by hackers. This has been reflected in the amount of money that companies are investing in their cybersecurity. According to a report by Gartner, worldwide information security spending is expected to grow 2.4% to reach $123.8 billion in 2020. In 2017, a hack on US […]
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Dec 21, 2020, 2:49PM UTC
2020 has been a turbulent year for all asset classes. The foreign exchange market, which is usually somewhat stable, is no exception. National currencies have been the most volatile in years as the world grapples with government stimulus programs, new central bank policies responding to COVID-19, and implications of a chaotic U.S. election as well […]
Dec 14, 2020, 12:39PM UTC
By looking at the largest crypto assets by market cap, it’s apparent that most of the projects that are worth the most are still Layer-1 blockchains. This is despite the fact that the vast majority of these blockchains have very little on-chain activity.  While it’s hard to distinguish between the real economic activity and inflated […]
Dec 7, 2020, 11:32AM UTC
A non-custodial exchange Serum was announced in late July amid the DeFi craze and launched in late August. Serum is the brainchild of the Serum Foundation — which includes FTX and Alameda Research staff, as well as external partners and advisors. Some of the partners include Multicoin Capital, Kyber Network, CoinGecko, and Gauntlet Network. The advisors include […]
Nov 30, 2020, 12:18PM UTC
Bitcoin and Ethereum are having a really good year; Bitcoin’s price has increased 156.5% YTD while Ethereum soared 348.0%. PayPal’s crypto offering is already generating “2–3x expected demand,” and Cash App generated $1.6 billion worth of bitcoin sales in 3Q (representing ~90% of all cumulative sales prior to that). Moreover, 2020 appears to be the […]
Nov 23, 2020, 2:10PM UTC
After months and months of rumors, PayPal finally announced in October that it will allow its customers to buy and sell Bitcoin and other cryptocurrencies. The PayPal ecosystem is massive; it boasts more than 320 million active accounts (not including merchants). Due to regulatory and technological complexity, PayPal is, of course, not handling cryptocurrency directly […]
Nov 16, 2020, 1:15PM UTC
Given the pseudo-anonymous nature of cryptocurrencies, it’s nearly impossible to accurately estimate how many people use them and where they are located. However, by looking at the traffic on cryptocurrency exchanges, we can get a directionally accurate representation of which countries are using cryptocurrencies the most. According to The Block’s findings South Korea, Singapore, Switzerland, […]
Nov 9, 2020, 10:52AM UTC
Betting on the results of the presidential elections is a massive market. Last week (still a week before the election), one of the largest betting sites Betfair said more than £200 million (~$260M) has been bet on the election so far. Betfair predicted that based on the previous trends, the 2020 election could break £400 […]
Nov 2, 2020, 12:13PM UTC
Harvest Finance, a DeFi yield aggregator created by anonymous developers, was exploited Monday morning UTC time, and the hacker was able to take out $24 million in profit.  DeFi exploits This comes after a handful of exploits that targeted the nascent DeFi ecosystem this year. In February, $1 million in profit was taken by attackers […]
Oct 26, 2020, 11:40AM UTC
Binance, the largest crypto-to-crypto exchange based on reported volume, has finished its 13th quarterly burn on October 17th. The exchange took away the equivalent of $68 million in BNB from circulation, which is a 12.4% increase from $60.50 million in Q2 2020. This burn once again marks the largest burn Binance has ever made. Source: […]
Oct 19, 2020, 8:25AM UTC
The crypto market structure has matured drastically in the last three years and this has led to several changes in the old dynamic. This shift was explained well by Arun Balaji of Paradigm and Sam Bankman-Fried of FTX but ultimately comes down to (I.) the growth of derivatives (futures and options) vs. just spot, (II.) […]
Oct 12, 2020, 9:23AM UTC
Bitcoin still remains correlated to equities but data shows that the correlation only spikes up following bad macro performance and then completely disappears when the macro environment performs well. Bloody March The U.S. stock market suffered the sharpest decline in its history in March, as the world grappled with the fallout of the coronavirus pandemic. […]
Oct 5, 2020, 10:40AM UTC
After hours of speculation, Singaporean exchange KuCoin admitted in a blog post released last Friday that it had “detected some large withdrawals” since September 26, 2020. “Some large withdrawals” turned out to be the third-largest exchange hack in history. The total amount based on the disclosed addresses is about $278.6 million at the time of […]
Sep 28, 2020, 11:52AM UTC
DeFi tokens as a whole have had record performance in July and August; severely outperforming Bitcoin and Ethereum.  FTX’s DeFi index has reached a peak of $3,500 on September 1 and has since dropped by 44% and is currently sitting at a 50-day low of $1,960.  Source: Tradingview, FTX Why now? As always, it’s hard […]
Sep 21, 2020, 11:47AM UTC
Cryptocurrency markets are unique because they are global and open 24/7, which introduces interesting dynamics. The regular trading session on the U.S. stock market is 6.5 hours a day — from 9:30 am until 4 pm. But the weekends and holidays are closed so there are normally 252 trading days a year, meaning that the stock market […]
Sep 14, 2020, 12:13PM UTC
Ever since the inception of Bitcoin, the cryptocurrency space has ideologically been rooted in open-source. The vast majority of projects in the ecosystem are developed as open-source , meaning that anyone can review the code, propose modifications, or even fork the project.  However, this also means that projects can’t really protect their intellectual property rights. In […]
Sep 8, 2020, 12:09PM UTC
Mass adoption is a popular topic of discussion among the cryptocurrency circles, with many believing it’s right around the corner. However, the data still doesn’t support this hypothesis. Data on the number of people using or investing in cryptocurrencies is sparse and usually comes from surveys with questionable methodologies. There are several proxies, that can […]
Aug 31, 2020, 11:31AM UTC
The inability to truly diversify their cryptocurrency holdings remains a major issues for cryptocurrency investors. When the price of one cryptocurrency falls, generally the majority of other cryptocurrencies will fall as well.  High cross-asset correlation is also a serious issue for crypto-collateralized stablecoins such as Dai. When prices drop rapidly, the collateral backing Dai gets […]
Aug 17, 2020, 11:21AM UTC
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