Kyle Davies and Su Zhu’s Open Exchange (OPNX) is set to shutter its operations on February 14, according to an email notification sent to users on February 1, as reported by Cointelegraph.
The cessation of trading activity will commence on February 7, with users still able to withdraw funds until the final closure date.
Intriguingly, a new exchange named OX.Fun has emerged seemingly to fill the void left by OPNX.
OX.Fun employs OPNX’s native token, Open Exchange Token (OX), as collateral for derivative trading.
It has garnered attention within OPNX’s official Telegram channel, although the identity of the individuals or entities running OX.Fun and their connection to OPNX remain unclear.
OPNX, launched in April 2023 by Davies and Zhu, former co-founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), also included Mark Lamb and Sudhu Arumugam, co-founders of the bankrupt crypto exchange CoinFLEX, among its creators.
Initially, OPNX was positioned as a reboot of CoinFLEX. However, subsequent legal disputes with CoinFLEX creditors led OPNX to assert that the two entities were entirely separate.
Zhu’s arrest for violating a committal order related to 3AC’s bankruptcy proceedings, with a similar order issued against Davies, added to the turmoil. Zhu was subsequently released after a three-month detention.
OPNX achieved some level of success in 2023, with daily spot trading volumes peaking at $32,000 and derivatives trading reaching $82 million by November.
However, at the time of its closure announcement, spot trading had dwindled to $23, and derivatives trading to $1.2 million.
Despite the discontinuation of OPNX, its token, OX, continues to be traded on various decentralized and centralized exchanges, maintaining a Telegram community of over 3,000 members.
OX.Fun has been actively promoted to the existing OPNX community, but many users are perplexed about the relationship between the two platforms.
OX.Fun briefly saw impressive trading volumes, with derivatives reaching nearly $39 million on January 30, although it subsequently dropped to $8 million the next day, still surpassing OPNX’s volumes.
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The user interface of OX.Fun bears resemblance to decentralized derivatives protocols like GMX, dYdX, and Level Finance, featuring the familiar “Connect wallet” button for linking user wallets to the platform.
However, unlike decentralized protocols, OX.Fun’s deposit page lacks a button for in-wallet transactions, requiring users to manually send funds to an external deposit address.
This setup suggests that OX.Fun operates as a centralized, custodial futures trading platform, where deposits are likely directed to an exchange hot wallet account.
Additionally, OX tokens experience high slippage, exceeding 50%, making it challenging for users who do not hold OX to utilize the platform.
Despite these developments, key information about OX.Fun’s executives and corporate registration remains elusive.
Attempts to reach out to the platform’s team via Telegram and the official website’s customer support yielded no responses.
Users seeking clarity on the connection between OPNX and OX.Fun, as well as information about the project’s leadership and investors, have also encountered unanswered queries.
Despite the lack of transparency surrounding OX.Fun’s operators, the platform continues to process deposits and withdrawals as expected.
On February 1, FTX made a significant move by filing a motion in a Delaware court, seeking approval to sell its claim of $175 million against the bankrupt digital financial services firm, Genesis Global Capital.
This claim was initially asserted by Alameda Research, a hedge fund affiliated with the now-bankrupt cryptocurrency exchange, FTX.
FTX is exploring the option of selling the claim, either in its entirety or in parts, and at various times, in order to maximize its returns.
Currently, claims against Genesis are trading at 65% of their face value, a significantly higher price compared to the 38% that Alameda Research’s claims are fetching.
The motion submitted to the court requests approval of a sales procedure that would apply to all sales, streamlining the process and minimizing the need for separate motions for each proposed sale.
According to this procedure, the sale price must be at least 95% of the highest price quoted by leading market-makers for general unsecured claims of GGC on a reference date within three days of the sale date.
The proposed sale order emphasizes that this action is in the best interests of the Debtors, their estates, creditors, interest holders, and all other parties involved.
Interested parties have until February 15 to voice any objections to the sale of the claim.
It’s worth noting that FTX had initially sought to recover $3.9 billion from Genesis in May 2023, as permitted by bankruptcy law.
READ MORE: Tether Holdings Reports Remarkable Q4 2023 Profit of $2.85 Billion
However, the negotiated claim of $175 million was reached between FTX and Genesis in August 2023 and was subsequently approved by the court in October. During that time, other claims FTX had against Genesis were nullified.
The decision to settle for a significantly lower sum was based on the argument that the potential for recoveries was unpredictable, and opting for a settlement allowed both parties to avoid protracted and costly litigation, the outcome of which would also have been uncertain.
FTX faced a crisis in November 2022 when irregularities were discovered in its account books. At that time, Genesis had $175 million tied up in its FTX account, although Genesis asserted that this did not impact its market-making activities.
Genesis Global Capital, a subsidiary of the Digital Currency Group, filed for bankruptcy in January 2023, leading to an extended dispute with the Gemini cryptocurrency exchange.
Genesis had been managing the Gemini Earn program, which was affected when Genesis suspended withdrawals.
Recently, on February 1, Genesis reached a $21 million settlement with the United States Securities and Exchange Commission (SEC) regarding the Gemini Earn program.
A court hearing scheduled for February 14 in New York will evaluate Genesis debtors’ proposed bankruptcy reorganization plan and the inclusion of the SEC settlement within it.
Bitcoin has been trapped in a relatively narrow price corridor for approximately 150 days, ranging from $40,000 to $44,999 as of February 2, 2024.
This unyielding price range has frustrated both bullish and bearish investors.
However, a recent analysis by James Van Straten, a research and data analyst at CryptoSlate, suggests that this behavior is not unusual for Bitcoin.
Van Straten’s examination of Bitcoin’s historical price movements in $10,000 increments between $10,000 and $49,999 reveals that the cryptocurrency typically spends anywhere from 100 to 250 days within these ranges.
Therefore, the current sideways movement falls in line with Bitcoin’s historical trading patterns and should be viewed as characteristic behavior rather than an anomaly.
Despite Bitcoin reaching two-year highs in 2024, as well as experiencing lows of $38,500, these price extremes have failed to trigger a sustained price trend.
Instead, BTC/USD has remained within the $5,000-wide trading range.
This behavior has persisted even after the introduction of spot Bitcoin exchange-traded funds (ETFs), much to the disappointment of market commentators.
Looking ahead, the upcoming block subsidy halving event, scheduled to occur in just over two months, has shifted market sentiment towards a belief that Bitcoin will only regain bullish momentum several months after the halving event.
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Until then, it is expected that the familiar price levels will continue to define the cryptocurrency landscape.
One of the respected voices in the crypto community, Michaël van de Poppe, founder and CEO of MN Trading, maintains a consistent outlook on Bitcoin’s trajectory.
He anticipates a range-bound trend with Bitcoin trading between $38,000 and $48,000, a prediction he has held for approximately two months.
Van de Poppe also suggests the possibility of a short-term correction followed by a mild pre-halving rally, pushing Bitcoin’s price to around $48,000.
In conclusion, Bitcoin’s extended period of trading within a $5,000 price range may be testing the patience of investors, but it aligns with historical patterns.
With the block subsidy halving event looming on the horizon, market participants are bracing for a continuation of this range-bound behavior until a more substantial bullish trend takes hold in the months to come.
Gate.io, a prominent cryptocurrency exchange and Web3 pioneer, has unveiled a groundbreaking collaboration with D3 Global, an advanced domain name company specializing in interoperable digital identities. Together, they intend to seek and secure the coveted ‘.gate’ Top-Level Domain (TLD) during ICANN’s upcoming application window. This strategic move positions Gate.io as the first cryptocurrency exchange to express interest in acquiring its dedicated TLD.
Top-Level Domains (TLDs) represent the final segment of website addresses, an integral part of the Internet’s Domain Name System (DNS). Well-known TLDs like “.com” and “.org” are seamlessly compatible with standard web browsers. Conversely, decentralized blockchain-based systems employing extensions such as “.eth” and “.crypto” operate independently and do not integrate with the conventional DNS infrastructure.
Web3 naming systems currently in existence suffer from incompatibility issues with traditional Internet infrastructure, leading to significant challenges, including functionality limitations, brand confusion, and security vulnerabilities. D3’s innovative platform, protected by a patent-pending technology, aims to bridge the gap between the traditional Internet and the Web3 ecosystem. Their mission is to provide enhanced utility, security, and universal access, thereby ushering in what they term ‘real Web3 domains.’
If the application for the ‘.gate’ TLD in partnership with D3 is approved, Gate.io users will have the unique ability to establish personalized web addresses that are inherently compatible with both Web2 and Web3 systems. This means a single address can serve as a digital identity across Web2 browsers, email services, as well as blockchain wallets and other Web3 tools.
Through this collaboration, Gate.io solidifies its reputation as an industry innovator. Together with D3, the companies plan to create futureproof, interoperable digital identities that combine the strengths of the existing Internet with the emerging Web3 technologies.
Dr. Lin Han, Founder and CEO of Gate.io, expressed their commitment to innovation, stating, “We are constantly developing innovative new solutions for our growing ecosystem. Our partnership with D3 will allow us to offer exciting identity solutions that enhance their trading experience and opens the Gate.io ecosystem up to billions of Internet users worldwide, while maintaining the safe and secure environment our users have grown accustomed to.”
Fred Hsu, CEO of D3, conveyed his excitement about welcoming Gate.io on their journey to make Web3 more accessible, scalable, and secure with straightforward, interoperable digital identities built on the DNS. He emphasized, “This partnership will enable us to offer our unique identity solutions to over 13 million Gate.io users worldwide, giving them access to innovative solutions that will enhance their journey across Web3.”
Through their collaborative efforts, Gate.io and D3 aspire to provide a groundbreaking solution to the interoperability challenges that currently exist between Web3 and Web2. D3’s pioneering platform, backed by a patent-pending approach, seamlessly integrates traditional Internet and Web3 ecosystems, promising enhanced utility, security, and universal access for millions of users.
Paul Sztorc, a prominent advocate for Bitcoin Drivechain technology, believes that the increasing mainstream acceptance of Bitcoin (BTC) will necessitate greater scalability and enhanced infrastructure functionality.
In an extensive interview with Cointelegraph, Sztorc discussed the pros and cons of the high-profile approval of Bitcoin exchange-traded funds (ETFs) in the United States and the long-term implications of institutional capital pouring into the Bitcoin ecosystem.
According to Sztorc, the emergence of Bitcoin ETFs is a sign of Bitcoin’s health and validation. It signifies that Bitcoin is becoming more widely recognized, and its name is gaining prominence.
Furthermore, it results from certain types of capital flow requirements that necessitate the use of ETFs. Sztorc, co-founder of LayerTwo Labs, considers Bitcoin ETFs as an “inevitable consequence of age.”
He highlights that customers of BTC-backed ETFs differ from everyday retail investors and dedicated Bitcoin enthusiasts.
These ETFs inherently involve custody and regulatory reporting, which aligns with the requirements of certain investors who are unlikely to self-custody Bitcoin.
However, Sztorc acknowledges that the hype surrounding Bitcoin ETFs could serve as an entry point for newcomers to the Bitcoin space.
Still, he cautions that excessive focus on ETFs might divert attention from Bitcoin’s underlying metrics and performance, with an unhealthy obsession with price being a potential downside.
LayerTwo Labs, over the past four years, has been diligently developing Drivechains, which are outlined in Bitcoin Improvement Proposals (BIPs) 300 and 301.
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These BIPs describe how the Bitcoin network can interact with layer-2 blockchains or sidechains, allowing the creation, deletion, and transfer of BTC between them.
Sztorc, the author of BIP-300, champions the functionality that Drivechains can offer and has extensively discussed the intricacies of these proposals at various Bitcoin conferences.
As significant events like the approval of Bitcoin ETFs bring more liquidity into the Bitcoin ecosystem, Sztorc emphasizes that the network may encounter increased transaction volumes.
He cites Satoshi Nakamoto’s prediction that in two decades, there will either be substantial transaction volume or none at all.
Sztorc aligns with this view, stressing that Bitcoin will need to compete effectively to maintain its position.
While the Lightning Network has made strides in enabling low-fee, high-throughput transactions on the Bitcoin network, Sztorc argues that the ecosystem requires additional functionality to address challenges from competing altcoins, hard fork campaigns, and extension block campaigns.
BIP-300, according to Sztorc, introduces competition, fostering innovation among different software developers, and allowing users to participate in various sidechains while those who choose not to remain unaffected.
In summary, Bitcoin ETFs mark a significant milestone for Bitcoin’s mainstream adoption, but they also raise concerns about excessive focus on price.
Sztorc believes that the Bitcoin network’s scalability and functionality will be critical in handling increased transaction volumes resulting from growing adoption.
Drivechains, as proposed in BIPs 300 and 301, offer a solution to this challenge, promoting competition and flexibility in the Bitcoin ecosystem’s development.
Bitget, a prominent player in the cryptocurrency and Web3 sector, has unveiled a comprehensive study centered around the imminent Bitcoin halving slated for April 2024, aiming to shed light on its implications for investment strategies. This in-depth survey, encompassing a diverse global demographic, provides valuable insights into the mindset of crypto investors and their forecasts regarding market dynamics post-halving.
The research project engaged a substantial sample of 9,748 individuals hailing from various regions, including West Europe, East Europe, South East Asia, East Asia, MENA, and Latin America. Employing anonymized data analysis, the study sought to discern how investors perceive the impending Bitcoin halving and how their investment strategies are poised to evolve in response.
Notably, an overwhelming 84% of surveyed investors harbor optimism about the positive repercussions the Bitcoin halving will exert on the crypto market, with widespread belief that it will propel Bitcoin past its all-time high of $69,000. This sentiment is particularly fervent in Latin America, East Asia, and South East Asia, whereas European regions tend to adopt a more cautious outlook.
Expectations regarding Bitcoin’s price during the impending halving in April 2024 span a wide spectrum. While a substantial portion of global investors anticipates a price range between $30,000 and $60,000, around 30% of respondents envision the price soaring beyond $60,000, with heightened enthusiasm in markets like Latin America.
Looking ahead to the post-halving landscape, investors collectively share the belief that Bitcoin will surpass its previous all-time high during the subsequent bull run. This optimism stems from a combination of short-term prudence and long-term confidence, notably prevalent in select European markets.
When it comes to predictions for the all-time high (ATH) price in the next bull market, the majority (55%) foresee Bitcoin stabilizing within the $50,000 to $100,000 range, while a notable segment remains even more bullish, expecting it to surge past $150,000. This bullish sentiment is especially pronounced in West Europe, a region that leaned toward conservatism during the halving period.
The study also unveils intriguing trends in investment intentions for 2024. Approximately 70% of participants from the surveyed regions express a clear intention to augment their crypto investments, signaling a robust confidence in the crypto market’s potential. This trend is particularly robust in MENA and East Europe, where investors exhibit a higher propensity to bolster their investment levels. Conversely, South East Asia and East Asia display a more balanced investment outlook, with a preference for maintaining current investment levels.
Bitget’s Managing Director, Gracy Chen, expressed her thoughts on the study, emphasizing its significance in understanding the evolving cryptocurrency investment landscape. She underscored the varied expectations and investment plans that the findings reflect, highlighting 2024 as a pivotal year for the Bitcoin market.
“The Bitget Study on BTC halving impacts provides valuable insights into the evolving landscape of cryptocurrency investment. The findings reflect a broad spectrum of expectations and investment plans, indicating that 2024 will be a significant year for the Bitcoin market.
“We are pleased to see such positive sentiment emerging as market conditions continue recovering. At Bitget, we firmly believe in Bitcoin’s potential to establish itself as a truly global store of value.
“As a leading exchange, we aim to play our part in contributing to the growth and development of the Bitcoin ecosystem through innovative product offerings, educational resources, and unwavering support of the community. The road ahead remains bright, and we look forward to empowering more investors and institutions alike to participate in Bitcoin’s ongoing success story,” Gracy concluded.
In January, Bitcoin’s exchange outflows have been challenging bearish predictions for its price.
On-chain analytics firm Glassnode’s latest data reveals that despite a 20% dip in the BTC/USD price, Bitcoin continues to flow out of exchanges.
This indicates that investor appetite for Bitcoin remains strong, unaffected by the current price pressures.
One notable observation is that the outflows from the United States exchange Coinbase have consistently exceeded 10,000 BTC per day since the launch of the first U.S. spot Bitcoin exchange-traded funds (ETFs).
Although corresponding inflows have had an impact on exchange balances, there is a noticeable trend emerging in the second half of the month.
Outflows and inflows are beginning to balance out, suggesting a potential reduction in the extreme volatility seen immediately after the ETFs were launched on January 11.
Exchange balances had been steadily increasing throughout January but reversed direction on January 23.
Since then, the trading platforms monitored by Glassnode have seen a reduction of 7,400 BTC (equivalent to $321 million) in their balances.
READ MORE: Hong Kong’s Regulator Expedites Approval Process for Spot Bitcoin ETFs Following US SEC’s Approval
In addition to exchange outflows, ETF flows are also favoring Bitcoin bulls. Previously, the Grayscale Bitcoin Trust (GBTC) was sending around $700 million worth of BTC to Coinbase daily.
However, recent daily outflows from GBTC have decreased to less than $200 million. In terms of BTC, there were 24,000 BTC outflows on January 25, and just over 6,000 BTC outflows on January 29.
Analyzing GBTC flows with data from statistics resource CoinGlass, financial commentator Tedtalksmacro predicted a shift in the trend from net outflows to net inflows for spot ETFs.
He argued that as this shift occurs, it would be challenging to present a bearish narrative unless there is an unforeseen event.
Tedtalksmacro believes that the bearish sentiment surrounding GBTC outflows in recent weeks is exaggerated, pointing out that there is currently $26 billion worth of on-chain holdings in BTC ETFs, and this number is expected to continue rising as investors become more comfortable with this asset class worldwide.
In an announcement this Monday, QuickNode, a highly scalable blockchain platform, welcomed Immutable zkEVM, a Layer 2 blockchain specifically designed for gaming. Immutable zkEVM aims to provide gaming developers on QuickNode with seamless building tools, combining the compatibility of Ethereum Virtual Machine (EVM) with high scalability and Ethereum-grade security for web3 games.
Following the launch of Immutable zkEVM on QuickNode, gaming developers will have access to a high-performance, scalable blockchain, ensuring a better gaming experience for developers and players. Notwithstanding, QuickNode will offer gaming developers a more robust and secure platform to build Web 3 games. The goal is to revolutionize blockchain gaming, bringing seamless development of Web 3 games to the masses.
Dmitry Shklovsky, CEO of QuickNode, welcomed Immutable zkEVM to its platform terming the move as a “significant milestone in advancing blockchain technology in the gaming sector”. Adding to EVM compatibility and scalability, the move to QuickNode will also offer gaming developers and DApps Ethereum-grade security, in a first-of-its-kind technology.
“This is a huge leap forward in our ongoing effort to democratize access to high-quality blockchain infrastructure, and we can’t wait to see the incredible gaming experiences our community will create with this powerful new tool,” Dmitry said speaking on the launch of Immutable zkEVM on QuickNode.
Immutable zkEVM: A blockchain built for gamers
Immutable zkEVM is a blockchain built for Web 3 gaming development, combining optimized security, scalability and speed to help developers build out user-centric gaming experiences. The first-of-its-kind technology aims to offer specific Web 3 gaming development tools, focusing on empowering game studios with vital resources like liquidity, community, and powerful network effects.
The launch of Immutable zkEVM on QuickNode opens up the platform to a wide range of potential EVM capabilities, and Ethereum’s security. It will allow gaming developers to build out Web 3 games for global audiences while reducing transaction costs. Additionally, QuickNode is building a solution to remove gas fees for players, ensuring a seamless and affordable gaming experience for all players.
According to a team representative from Immutable zkEVM, the decision to build their platform on QuickNode is due to the seamless developer tools that the blockchain offers. The platform allows developers to solely focus on building their DApps instead of focusing on other blockchain-related developments such as running nodes. This will save Web 3 game developers time and resources, allowing faster deployment of games and minimising obstacles in creating blockchain games.
Finally, Immutable zkEVM offers developers an opportunity to build futuristic games, unlock new revenue streams and safeguard their communities. The platform offers a testnet development area, allowing developers to innovate and soft-launch their projects before a full mainnet launch.
Decentralized finance (DeFi) aims to recreate traditional financial services without intermediaries using blockchain technology. However, issues like slow transaction speeds and complex user interfaces limit mainstream adoption. This is the problem Hydra Chain strives to solve – an advanced layer 1 network designed for real-world usability, security, and simplicity.
At Hydra’s foundation is its native HYDRA token, enabling network governance and passive income via staking rewards. Now, Hydra propels its DeFi capabilities forward with LYDRA, a liquid derivative allowing HYDRA stakers to tap additional utility.
The newly launched LYDRA/HYDRA pool on Hydra’s decentralized exchange (DEX) signals meaningful progress unlocking dual-token functionality. By facilitating trades between the assets, the pool supports price discovery for embryonic LYDRA while letting HYDRA holders access another yield channel. Apart from incentives for liquidity miners, the pairing paves the way for innovations like leveraged staking and cross-chain arbitrage.
With this expansion to its DeFi ecosystem, LYDRA and HYDRA hold immense opportunity to drive user adoption while furthering real-economy blockchain integration. The joint pool accelerates this vision by broadening the potential of both tokens.
Understanding Hydra Chain and LYDRA
Hydra Chain uniquely combines advantages from Bitcoin, Ethereum, Qtum and BlackCoin. From Bitcoin – secure architecture and UTXO model; Ethereum – Virtual Machine and smart contracts; Qtum – decentralized governance; BlackCoin – Proof of Stake consensus v3.
This robust foundation empowers industry-top speeds, low fees, and extensive functionality to power dApps. HYDRA also enables staking and governance to enrich its network. These capabilities have attracted projects like LockTrip, GoMeat and more.
Now, Hydra elevates its tech stack further with LYDRA – “Liquid HYDRA”. LYDRA is a liquidity derivative allowing HYDRA stakers to access supplemental utility. By locking HYDRA, users can mint LYDRA 1:1 to maintain staking rewards while freely utilizing the LYDRA. LYDRA can then be burned to reclaim the staked HYDRA.
This unlocks two key advantages: First, HYDRA stakers gain flexibility to engage with DeFi without losing staking revenue. Second, by capitalizing on asset price differences, innovative tactics like leveraged staking become possible to boost yields. As the pioneering on-chain pool for the LYDRA derivative, the LYDRA/HYDRA DEX pool sets the stage for users to harness these benefits completely.
Hydra’s leading-edge innovations persist in pushing the frontiers of usability and adoption. LYDRA expands on this legacy by augmenting the potential of its thriving ecosystem.
The LYDRA/HYDRA Pool on Hydra DEX
The pool facilitates swapping between LYDRA and HYDRA similarly to DEX leaders like Uniswap or PancakeSwap. Liquidity providers furnish equivalent values of both tokens into the pool to mint LP tokens. Asset ratios then fluctuate dynamically based on market activity, with prices derived from the pooled reserves.
However unique advantages emerge from the direct link between LYDRA and HYDRA. For example, the pool produces a transparent on-chain benchmark price for LYDRA to progress beyond over-the-counter constraints.
More broadly, the launch unlocks new utility for both tokens and users. With direct LYDRA liquidity, HYDRA stakers can optimize yields through leveraged staking tactics without relying on external counterparties. Advanced traders can conduct multi-chain arbitrage across Ethereum and Hydra based on price discrepancies. The interchange between tokens also cements Hydra’s internal ecosystem.
For DeFi at large, the pool exemplifies a model to generate liquidity derivatives for improving capital efficiency – by fractionally freeing staked assets without decreasing security, new pool models can redistribute unused value. The mechanics introduced by Hydra strike a balance between previously incompatible incentives across decentralized stakeholders.
While the LYDRA/HYDRA pool itself lacks a reward scheme, Hydra incentivizes other pairs via liquidity mining programs including:
Stablecoin Pools:
2,000 HYDRA/month for USDC/USDT (0.05% fee)
2,000 HYDRA/month for USDC/DAI (0.05% fee)
Lydra Pools:
5,000 HYDRA/month for USDC/LYDRA (0.30% fee)
5,000 HYDRA/month for ETH/LYDRA (0.30% fee)
5,000 HYDRA/month for WBTC/LYDRA (0.30% fee)
High Correlation Pool:
3,000 HYDRA/month for WBTC/ETH (0.30% fee)
These incentives deepen liquidity and participation across the pairs. Interested users can refer to Hydra’s Liquidity Mining Guide for further details.
Future Outlook and Challenges
With the success of the LYDRA/HYDRA pool as a case study, Hydra races to integrate with ecosystem partners and layer 2 solutions, allowing its derivative model to enhance capital efficiency broadly. Other exchanges and DeFi platforms could emulate this template.
However, users should remain vigilant of external dangers like smart contract risks and financial hazards from high volatility. While asset correlation limits impermanent loss, it does not remove it entirely. Users must balance yield potential against possible downsides. Regulatory jurisdiction also persists as an open question for tokenized derivatives.
Nonetheless, the introduction cements the integral role LYDRA and Hydra will play advancing decentralized finance. By charting new ways to generate yields while retaining principal soundness, Hydra provides a window into the future framework of asset valuation and distribution in digital economies. If adoption mirrors innovation, the next leaps in DeFi may germinate from Hydra’s ouroboros of collateral and liquidity.
Getting Involved
Interested users should join Hydra’s Telegram and Twitter to interact with the passionate community and team directly. Telegram facilitates technical support, announcements, governance and collaborative thinking. Twitter broadcasts the latest network developments. Don’t miss official news, articles and expert analysis by subscribing to the Hydra News Channel. Also explore the feature-rich Hydra DEX and ecosystem partners by bookmarking the Hydra Website. Refer to the platform’s continuously updated documentation and guides to start staking, providing liquidity and more.
Tesla’s decision to divest its Bitcoin holdings has led to a missed opportunity of over $300 million in potential profits.
The electric vehicle company initially entered the world of cryptocurrency in February 2021 with a groundbreaking investment of $1.5 billion when Bitcoin’s price was approximately $36,000.
Since Tesla’s first reported Bitcoin balance on February 8, 2021, the company’s stock price has decreased by about 40% compared to Bitcoin’s performance.
Specifically, Tesla’s stock (TSLA) has underperformed Bitcoin (BTC) by 40.1%, while Bitcoin itself has appreciated by 7.39% against the US dollar, and Tesla’s stock has declined by 35.7% against the US dollar.
Tesla’s approach took an unexpected turn when the company sold roughly 10% of its Bitcoin holdings in March 2021 and around 75% in the second quarter of 2022.
Elon Musk, Tesla’s CEO, explained that these sales aimed to showcase Bitcoin’s liquidity and strengthen Tesla’s financial position during uncertain times.
Had Tesla retained its entire Bitcoin investment, it could have realized a hypothetical profit exceeding $300 million, given Bitcoin’s current value of around $41,500.
READ MORE: US Government Plans to Sell $118 Million Worth of Seized Silk Road Bitcoin
However, Tesla has maintained its remaining Bitcoin holdings, estimated at approximately 9,720 BTC, in recent quarters, signaling a more conservative strategy in anticipation of a bullish year for Bitcoin.
Interestingly, Tesla’s previous Bitcoin sales coincided with quarters where the company reported weaker free cash flows, which represent the cash generated after covering operational expenses.
For instance, in the first quarter of 2021, Tesla’s $272 million Bitcoin sale accounted for a staggering 93% of the company’s free cash flows during that period.
Similarly, in Q2 2022, the 73% reduction in free cash flows aligned with Tesla’s Bitcoin sales. It appears that Musk relied on Bitcoin to boost finances during Tesla’s financially constrained periods.
However, the situation may change, as Tesla’s free cash flows have been on the rise throughout 2023. In Q4 2023, Tesla’s free cash flow was a robust $2.1 billion, contributing to a total of $4.4 billion for the year.
Many analysts predict a potential increase in Bitcoin’s value in 2024, citing the approval of spot Bitcoin exchange-traded funds in the United States and the expected impact of the upcoming Bitcoin halving event as key factors driving their optimism.
Tesla’s decision regarding its remaining Bitcoin holdings may be influenced by its improving financial outlook and the evolving cryptocurrency landscape.