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We have brought together the past week’s most exciting events in this Good Crypto digest. If you want to get these updates as soon as we post them, follow us on Twitter or Telegram.
Quick weekly news
DCG sells shares in Grayscale to raise money
DCG, a leading firm in the crypto industry, has recently offloaded its shares in Grayscale to raise capital. According to a report by the Financial Times, DCG sold approximately a quarter of its shares in Grayscale’s Ethereum-based fund for around $8 per share, despite each share holding a claim to double that amount in ETH nearly. In addition, the company also sold small portions of shares in Grayscale’s Litecoin, Bitcoin Cash, and Ethereum Classic-based trusts, as well as its Digital Large Cap Fund.
When asked about the share sales, DCG stated that it was “simply part of our ongoing portfolio rebalancing.” However, some observers speculate that the move may indicate financial troubles for DCG.
Binance aids earthquake victims in Turkey with BNB token airdrops
In the wake of the recent earthquake in Turkey, Binance, a leading cryptocurrency exchange, has announced a 100 USD worth of BNB token airdrop for all users in the affected regions. In addition, the company will identify eligible users by checking Proof of Address submissions made before February 6th in 10 cities hardest hit by the disaster. These cities include Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Şanlıurfa, and Osmaniye.
Binance stated that although the Proof of Address method may not be foolproof, it is the best option available to locate users affected by the earthquake. The total value of the donations is approximately 5 million USD or 94 million Turkish lira. In addition, Binance Charity has also opened a public donation address, calling on individuals to make contributions to the Emergency Earthquake Appeal using various cryptocurrencies such as BTC, ETH, BNB, BUSD, and XRP.
Cryptocurrency has increasingly become a means of delivering aid in the aftermath of natural disasters. In the past, it has been used to provide aid to those affected by the war in Ukraine, where traditional banking services were unavailable due to the conflict.
Other players in the crypto space have also shown support for the victims of the Turkish earthquake. For example, on February 6th, Bitget, another cryptocurrency exchange, pledged 1 million Turkish lira ($53,000) to relief efforts.
Former Coinbase product manager enters guilty plea in insider trading case
Ishan Wahi, a former product manager at Coinbase, has pleaded guilty to insider trading charges in a Manhattan federal court. According to Reuters, Wahi disclosed confidential information about new digital assets that Coinbase would allow users to trade with his brother Nikhil and friend Sameer Ramani. This information caused the assets to rise in value, leading to illicit gains of $1.5 million for Nikhil and Ramani. As part of his plea deal, Wahi agreed to a prison sentence of 36 to 47 months and will be sentenced on May 10th. The case against Nikhil and Ramani is ongoing.
“I knew that Sameer Ramani and Nikhil Wahi would use that information to make trading decisions. It was wrong to misappropriate and disseminate Coinbase’s property,” admitted Ishan Wahi during the Feb. 7 hearing.
Genesis Global announces agreement with Digital Currency Group and creditors
Genesis Global has agreed with Digital Currency Group (DCG) and its creditors to restructure its crypto trading and market-making arm. In addition, the deal will see DCG contribute its share of equity in Genesis Global Trading, which will be sold as part of the restructuring efforts.
The agreement will bring all Genesis-related entities under the same holding company and see DCG exchanging a $1.1 billion promissory note for convertible preferred stock. Additionally, DCG will refinance its existing term loans and make them payable to creditors.
Gemini will also contribute $100 million for its Gemini Earn users who have funds frozen with the bankrupt firm. In addition, pending court approval, the restructuring plan will result in the sale of Genesis Global Trading.
A recent update from Genesis creditor and crypto yield platform Donut stated that the restructuring plan has a recovery rate of approximately 80 cents per dollar deposited, with a path to $1.00 for creditors. The recoverable amount will depend on the equity note, realized liquidation prices, and any unknown costs associated with the bankruptcy.
How to Use the Fibonacci Retracement in Trading
Fibonacci retracement is a popular tool in crypto trading because it has no strict rules for its use. To calculate Fibonacci retracement, simply select two points, a high and a low, in a price trend. These points can be chosen based on personal relevance. The time frame for Fibonacci retracement can be short or long, with longer time frames providing stronger trend indicators.
The popularity of Fibonacci retracement is one of the reasons why it is effective, as traders watch the same support and resistance lines and expect similar outcomes. However, determining when to use Fibonacci retracement requires experience in trading. While the indicator may seem obvious in hindsight, confident trades based on these levels can be challenging. In the following article, we will explore how to interpret Fibonacci retracement.
Unlock the full potential of Fibonacci retracement by reading the full article!
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