Crypto Long & Short: The Trouble With Ticker Symbols

Can the proper USDP stand up?
Last month, Paxos, the issuer of the seventh-largest $ 2 trillion global stablecoin, renamed the token (formerly the Paxos standard) to Paxos $. As part of the statement, the crypto exchange changed the ticker symbol from PAX to USDP.
There was a problem: Another Stablecoin was already using the ticket.
You are reading Crypto Long & Short, a weekly newsletter with information, news and analysis for professional investors. Sign up here and deliver to your inbox every Sunday.
Unit Protocol, a decentralized lending platform launched in February, has been calling USDP tokens since issuing a white paper at least last July. During the hot minute, the brave team didn’t seem to allow larger competitors to use their four-letter ID without fighting.
“We are currently challenging Paxos’ trademark application against USDP,” Unit Protocol representative Benjamin Meredith told CoinDesk on August 27. To show that the original USDP is a well-known amount in the market, Meredith points out blockchain data showing that 138 million units of tokens have been coined, each worth just under $ 1. Did. CoinMarketCap is further evidence that this stable coin was an established asset, even though the market capitalization of the Paxos stable coin was 7.5 times higher.
However, at the time of this writing, there was no formal objection to the story of the United States Patent and Trademark Office. He later said he couldn’t get the call. “We will be on a happy path for now,” Meredith said.
When Paxos was contacted by CoinDesk, he hated to turn. “It’s common for projects to share ticks in the crypto space,” said Paxos spokeswoman Becky McClain. “There are dozens of cases where shared qtickers or tickers share characters, and I’m convinced that these practices are distinguishable and confusing without consumers.” Paxos already before the ticket was selected. I didn’t answer the follow-up question about whether I checked if it was used.
This anti-climate story highlights the problems that have surfaced several times in cryptocurrencies and may surface more frequently in the future as the industry grows. Investors tend to be confused if exchanges do not have a standard for assigning identifiers.
“It’s important that each marker refers to a single asset, as the ticker is designed to make the asset immediately visible to the customer,” said Kevin Beardsley, Senior Product Manager, Professional Trading at Kraken. I am. “But two projects may claim the same symbol, and the winner is usually virtually determined by the community.”


Ether Passes $4K for First Time Since May, Nearing All-Time High

Ether, the world’s second-largest cryptocurrency by market capitalization, reached the $ 4,000 level, up about 20% last week compared to Bitcoin’s 2% rise over the same period. Technical charts show that ETH is ready to remain high towards the high of about $ 4,300, which sold nearly 60% earlier on May 12.
In August, the Ethereum blockchain will receive a long-awaited update called the London Hard Fork. This update has helped reduce prices by over $ 2,900. This was also consistent with an increase in the ETH / BTC ratio above 0.07.
The resurgence of non-fungible token (NFT) activity and interest in profitable decentralized finance (DeFi) tokens have also contributed to the rise in ETH prices. ‘The number of ETH tokens locked to DeFi is increasing. Simon Peters, a crypto analyst on the multi-asset investment platform eToro, sent an email to CoinDesk, which puts extra pressure on the provision of crypto exchanges.
‘Participation in ETH is increasing. Currently, about 7.2 million ETH have been seized. That’s about 6% of ETH tokens and limits supply, “says Peters.
The price of ether has risen more than five times this year, bringing the market capitalization of ether to $ 471 billion.


Bitcoin Hits 3.5-Month High Over $50K as Ether Tops $4K

Cryptocurrency markets were supported by a new wave of optimism on Friday as Bitcoin soared to over $ 50,000 for the fourth straight day and Ethereum (ETH), a unique sign of the Ethereum blockchain. Passed. Psychological level of $ 4,000.
Bitcoin, the largest cryptocurrency by market capitalization, appears to have received a new boost from a report showing flaws in US employment growth on Friday. The report raised speculation that poor economic data could sustain the Federal Reserve’s $ 120 billion monthly program longer than expected.
Some investors say the US Federal Reserve Board’s accommodative monetary policy will curb returns on traditional market assets such as bonds and enhance the appeal of Bitcoin and other fast-growing cryptocurrencies. I’m guessing.
Bitcoin rose to $ 50,940 on Friday, changing hands by about $ 50,700 during the press. This is the highest price since May, but well below the high of about $ 65,000 reached in April.
Ether, the world’s second-largest market capitalization, rose 4.9% on Friday to reach $ 4,000 for the first time since May. The price rose to $ 4,025 and then fell to $ 3,960 at the press.
The resurgence of non-fungible token (NFT) activity and interest in profitable decentralized finance (DeFi) tokens have also contributed to the rise in ETH prices.
Ether surpassed Bitcoin this year, quintupling its price and bringing its market capitalization to about $ 465 billion. That’s about half of Bitcoin’s $ 950 billion market capitalization.


Delta Variant Impact

The unemployment rate fell from 5.4% in July to 5.2%, although the increase in US employment in August was lower than expected, according to the report. In February 2020, the United States cut 5.3 million jobs from pre-pandemic levels, and the unemployment rate for African Americans rose from 8.2% to 8.8%. Meanwhile, labor force participation among African-Americans has increased.
The government also revised employment growth to 962,000 in July, increasing employment by 24,000 from the originally reported 943,000.
The retail and food service industries lost 29,000 and 42,000 jobs, respectively, resulting in major unemployment. Zero leisure and hospitality opportunities have been added. Professional and business services increased by 74,000, transportation and warehousing increased by 53,000, manufacturing increased by 37,000, entertainment increased by 36,000, and information technology increased by 17,000.
The labor force participation rate (the percentage of the US population actively working or looking for a job) remained unchanged at 61.7% in July.
The ratio of the working-age population, which measures the number of employees to the total working-age population, changed from 58.5% month-on-month to 58.4% in July.


Bitcoin and USD Weakness

Following a pessimistic report by Federal Reserve Board of Governors Jerome Powell at the Jackson Hall Symposium at the end of last month, Jobs’ report has historically influenced the strong dollar and rising Bitcoin prices in the foreign exchange market. I did. This may indicate that Bitcoin will become more popular as the dollar falls.
Economist Jens Nordvig, founder of research firm Exante Data, said:
Cryptocurrencies have historically not correlated with the movement of the US dollar, but bad economic news from US Bitcoin, such as when digital assets declined in the traditional US market, such as March 2020. I have sunk.
Joel Kluger, market strategist at the institutional cryptocurrency exchange LMAX Digital, said:
During the pandemic, price fluctuations in assets to key economic indicators were much more difficult, Nordvig said. “I think these correlations are starting, but they’re not strong yet,” Nordvig said. “I think they will get stronger as financial institutions enter the market.”


US Misses Expectations in August Jobs Report, Pushing Bitcoin to 3-Month High

Bitcoin prices rose 1.3% on Friday after the U.S. Department of Labor revealed that it added 235,000 jobs in August, well below the consensus estimate of 725,000 jobs. It reached a 3.5-month high of over $ 50,000.

The report may encourage the US Federal Reserve Board of Governance stimulus, known as “quantitative easing” or QE, to last longer than expected. Many crypto investors speculate that QE could weaken the dollar and increase the value of Bitcoin, which has limited inventory. Bitcoin is also considered a speculative asset on Wall Street, and more investors will be forced to seek such an investment as QE curbs returns in the traditional bond market.

The one-month data itself does not predict the course of the economy, but the report gives macroeconomic uncertainty caused by the delta variant of COVID-19, the idea that the US Federal Reserve allows a slowdown in liquidation. May be reinforced. program. $ 120 billion in bonds per month.


Bitcoin Returns Near $50K, Next Resistance at $55K

Bitcoin (BTC) buyers are making another attempt to reach a resistance level of $ 50,000. If the outbreak results in an additional $ 55,000 increase as momentum improves. With a moving average of 200 days, support declines at around $ 46,000.
The short-term contraction receding that began in July was well supported by the receding. Signs of depletion and overbought at the forefront led to a week-long integration phase. This can be resolved with good results. Bitcoin was trading at around $ 49,600 when it went to the press, up 2% last week.
The Relative Strength Index (RSI) on the daily chart has fallen from the overbought level and should stabilize near the 50 neutral point. Bitcoin is trading above the 50-day and 200-day moving averages, demonstrating an improvement in trend strength after the surge, revised earlier this year. With resistance of $ 55,000 in the short term, the Bulls may continue to operate throughout the weekend.


Solana’s SOL Replaces Dogecoin as 7th Largest Cryptocurrency

Programmable blockchain SOL sign Solana rose to a high on Friday, replacing the meme-centric cryptocurrency Dogecoin with the seventh-largest currency in market value.
According to Messari data, SOL rose 12% to $ 145, a record high of $ 130 on Tuesday. The market capitalization of cryptocurrencies has risen to $ 42 billion, surpassing Dogecoin’s $ 38 billion.
The price of CTL tokens has tripled since Solana launched the Degenerate Ape Academy project for non-fungible tokens (NFTs) on August 15. Given the current NFT sugar mood, the timing wasn’t even better.
“Solana’s popularity, already endorsed by Sambankman Fried, is unprecedented, thanks to the strong growth of shared thinking, the succession of decentralized app launches, and more recently the rush to launch NFTs on Kaiju Cards. We’ve seen pricing behavior, “Chu, co-founder and managing partner of Jehan blockchain trading and investment firm Kenetti Capital, told CoinDesk, referring to the person behind the business firm Alameda Capital.
Monster Card is a trading card game built on Solana’s blockchain and based on classic styles such as Yu-Gi-Oh!, Pokemon, and MTG.
“Monster NFT cards are serial and not generative. Think of Pokemon and MTG, but the blockchain has a serial number,” the official blog says. “Each character is created and hand-painted by one of four artists in the industry who created original works in Adult Swim, Apple, Nickelodeon, Netflix and other well-known locations. 23 in the Alpha series. Contains the original character of “”

The Alpha series was pre-sold on August 20th with the goal of providing early fans and community members with access to the card at a low price. The final distribution took place on Wednesday and was very popular. This may have increased the price of SOL. The cards were 5SOL and 8SOL. “I think there were more than 10,000 people online on his Discord,” the trader told CoinDesk in a Discord chat. ‘But there are only 3500 NFTs to win and only one card is allowed per wallet. Yes, the demand was more than reasonable. ”

Another trader said SOL’s latest strong foot was related to the launch of Solcy, Solana’s first open NFT market, which launched on Friday.
Solana’s ecosystem is growing and blockchain is backed by large investors thanks to its expected scalability, relatively low transaction costs, and fast processing speeds.
However, SOL now appears to be overbought, with a 14-day Relative Strength Index (RSI) well above 70, suggesting that the pace of recovery may slow down. “The volatility is so high that CTL calls are selling well,” QCP Capital said in a recent market analysis. Investors often sell call options when assets are expected to consolidate or decline. Traders sell options when volatility is expected to decrease. This is because volatility has a positive impact on option prices.