Comet (CMT) news

Bitget Hot Takes (August 15 - August 21)

Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts. Bitget Hot Takes last week can be found here. Central Themes Global market cap briefly dipped below the US$1 trillion mark on August 21. This week’s drop wiped out gains from the previous week; BGB proved its resistance against market changes. Acala has traced US$2.97 billion from the ‘error mints’ of its stablecoin aUSD. Huobi’s USD lost its U.S.-Dollar peg. US$562 millions were liquidated in one single day of August 19, causing an outflow of BTC from exchange reserves. BGB’s Resistance This was definitely a bad week for crypto traders. Most major cryptocurrencies were hit with a two-digit decline, with the worst performers being Ethereum (-20.3%) and OKEx Token (-21.1%). Compared to the growing market’s pain and fear, BGB holders endured a less intense suffering at the 11.4% loss, the lowest out of the eight. Regarding the recent volatility, we recommend you take advantage of our Bitget Spot Grid Bot, which executes buy/sell orders commensurate with market’s ups and downs. Historical data proves that BGB tends to be more resilient in tough times and able to maintain a steady growth in uptrend cycles. Need to check on BGB’s self-sustained growth? Here are our BGB Report for the last three months: BGB Sail: July Edition BGB Sail: June Edition BGB Sail: May Edition Don’t forget to check out BGB Earn to make sure that you are generating even more BGB! Authorities’ Moves As institutions, banks, even pension funds are planning, if not already facilitated, their expansion into the crypto industry, authorities across regions have officially issued crypto guidance for banks and other regulated entities this week. Canadian banks will need to report to the Office of the Superintendent of Financial Institutions (OSFI) if their total gross positions of crypto assets surpass 1% of their total capital. In the case of short positions, a net exposure of 0.1% or above of the total capital must be shared with the OSFI. Previously, a blog post by the crypto exchange Newton clarified a compliance policy issued by the Ontario Securities Commissions (OSC) and securities regulators in other provincial areas of Canada as follows: Source: Newton Meanwhile, FED-supervised banks should notify their point of contact at the U.S. Federal Reserve before ‘engaging in any crypto-asset-related activity’. The guidance calls for the setup of an appropriate risk management system from all banking organisations. A few days earlier, FED also released the guidelines for crypto banks to apply for access to FED accounts, meaning crypto bankers are one step closer to joining the global payment system. Blood Has Been Spilt With major cryptocurrencies seeing red in the second half of the week, it’s fair to say that both the spot and futures markets were affected. Global market cap has fallen below US$1.05 trillion since August 19 and even breached the 1T mark for roughly 40 minutes on August 21. Bitcoin Futures Rekt It took Bitcoin less than three days to lose the US$24,000 level and continued its losing streak to the week’s low of US$20,800. That reverse momentum became the nightmare of long traders, whose total positions of US$562 million were liquidated in one single day of August 19. Source: Coinglass This is a screenshot of Coinglass through the middle of that day. Traders who speculated on Bitcoin’s return to US$31,000 were hit hard. Source: Coinglass August 19’s figure represents the second highest daily liquidation since the end of May. Over the same period, Bitcoin was relentlessly withdrawn from exchanges until August 11, where data notices a slight influx of the coin into exchange reserves. Many traders once again decided to drain Bitcoin to their personal wallets after the liquidations. Source: CryptoQuant Please note that forced liquidations occur when there is a margin call (account balance lower than the required maintenance margin) and traders refuse to deposit more into their account. At Bitget, we adopt another type of margin called risk margin, which will notify users immediately when their account balance falls below their actual delivery obligations, meaning that you will have plenty of time to adjust your positions before the alert for maintenance margin rings. More information on the topic can be found here: What is Margin Trading? Re-peg De-peg After the error mint event of last week, Acala Network has traced US$2.97 billion out of US$3 billion exploited. The breach caused Acala Network to temporarily pause its operation and the protocol’s stablecoin to lose at least 95% of its value on Sunday 14. The team quickly recovered these error mints during the week, thereby helping restore the peg. aUSD was trading between US$0.72 and US$0.88 in the last 7 days. Source: TradingView However, stablecoins’ misfortune didn’t stop at aUSD. Huobi USD was the latest to record a depeg of roughly 15% in 30 hours from August 17 to August 18. Per Huobi’s official Twitter statement, this depeg was the result of a liquidity issue from HUSD, which is no longer managed by the exchange. It is worth noting that FTX announced the removal of HUSD from the USD basket two weeks ago, but the official news is removed from the FTX page. Source: Curve Finance Amidst crypto users’ protest against Circle’s privacy standpoint, Tether released audit results by the Top 5 accounting firm BDO. The audit report reveals that 43.45% of USDT supply is backed by the U.S. Treasury bills and 12.65% by commercial papers, which demonstrates a nearly 60% decline in Tether’s commercial paper holdings from the previous quarter. Funding Still Pouring In The Need To Increase Blockchain’s Use Cases More than US$65 million in funding was allocated to crypto projects - a modest number compared to past weeks’ capital inflow. The names to be mentioned include: SnackClub DAO (US$9 million raised), StarkNet’s MatchboxDAO (US$7.5 million), Tessera (formerly Fractional) (US$20 million), DWallet Labs (US$5 million), GitPOAP (US$4 million), Unlockd (US$4.4 million), Primitive (US$9 million) and SafeHeron (US$7 million). Funds have been receiving more capital to support buidlers: CoinFund (US$300 million), Shima Capital (US$200 million), Galaxy Digital (US$100 million) and SuperLayer (US$25 million). However, the industry’s assignment remains exploring new use cases for blockchain and penetrating commercial markets. Two responses from the crypto community this week were: - Yuga Labs’ release of the intellectual property right licensing agreement for CryptoPunk and Meebits holders, which will allow them to create products and projects using their NFTs; - Compound’s transition to a multi-chain protocol with the Comet upgrade. The Latest Bitget News Determined to bring our users the best crypto experience, Bitget constantly adds new trading pairs each week alongside the interesting, bountiful events. Don’t forget to register your Bitget account here to join the weekly, exclusive Live Trader AMA in our community group! Moreover, as pressure mounts on crypto firms, many exchanges have shut down or are about to, and you know that millions were drained from crypto wallets over the last seven days. That is to say how timely the launch of Bitget Investor Protection Fund is; with more than US$200 million available for any emergency compensation, Bitget is showing that nothing can stop us from providing an impeccably safe and reliable environment for crypto traders! To find out more about Bitget's Protection Fund, please visit here. One more exciting news we want to share with our users and football fans is the renewed partnership between Bitget and Juventus! For the second consecutive year, Bitget will support Juventus as their sole official crypto exchange partner and pursue the common goal of encouraging social developments. New Listings TUPUSDT IXTUSDT ZIGUSDT HUBUSDT MHUNTUSDT New Events Sign Up Refer Your Friends To Share 500,000 BGB 10 USDT for Referrals + Exclusive New User Bonus Pool Up to $11,000! BGB Army 3.0 Giveaway Celebrating The Renewal Partnership With Juventus! ETH is Back! 5,000 USDT Worth of ETH is Up for Grabs! Deposit and Trade to Share in the $10,000 + $1,000 Prize Pool! Buy Crypto with GEO Pay, Enjoy Zero Fees for a Month Receive $4,163 In Welcome Bonus! Good Reads How to Build a Well-Balanced Crypto Portfolio Things you need to know about the ‘Merge' Bitcoin 101: Bitcoin Value and Price Trading 101: Macroeconomic Factors That Can Affect Crypto Prices Follow us for the latest updates: Twitter | Telegram | LinkedIn | Facebook | Instagram