Devin’s Daily Crypto Tips

Hey all,

I’ve tried something new today, a podcast newsletter… let me know what you think (and maybe help think of a better name than podcast newsletter lol).

Have a great weekend,

Devin

Bakkt getes $740M Valuation

Tron & USDT promising 20% interest…

Lbank & Bit-Z have more volume than Binance?

Weekly Summary

1) Bakkt getes $740M Valuation

Bakkt, which have yet to release their crypto institutional trading platform, or any investment products, yet they seem to have reached a $740M valuation figure based on the seed investment.

Bakkt’s business model is reliant on volume, a decision which was probably made during the forever increasing volumes of 2017. With the proposed trading $0.5 per contract (which is relatively cheap), Bakkt are going to need significant volume to return a profit. Remember, they’re a business and not a charity. Their shareholder’s interests are at the top of their priorities, not cryptos.

2) Tron & USDT promising 20% interest…

Another bold move from Justin Sun, offering 20% USDT interest for buying TRX on a few small, riskier exchange such as OKEx and Huobi.

Where is this 20M + coming from?… TRX investors… the alarm bells are ringing for an awful ending to this.

On a side note, it seems as if Justin Sun has been buying followers on Twitter, rather embarrassing…

and here’s where the fake bots / engagement come from…

3) Lbank & Bit-Z have more volume than Binance?

Binance is by far the largest exchange by volume and user base so when 2 rather small, unheard of exchanges indicate significantly higher volume than Binance then it raises some questions.

The most probable cause for this is a thing called wash trading, where bots place a tonne of buy and sell signals near enough at the same level to give the illusion that there is a tonne of volume, when really only a small amount of capital is actually being used.

Pump and dump schemes thrive off of wash trading too.

Long story short, the volume is fake and obviously manipulated (which is illegal). I’d avoid these exchanges.

4) Weekly Summary

This week we’ve seen Bitcoin hover around 4K, break above 4K and then get thrown back down to where we were at the beginning of the week. So we’ve remained pretty much exactly where we were?

In terms of overall market cap, yes.

In terms of progression, no. A lot is going on at the moment (as I mention in the Newsletters) and short term price action is not reflecting the forthcoming events.

It would be good to see BTC break and hold above 4.2K, we might see this towards the end of next week.

Interested to see what happens on Sunday, we normally see a move near midnight.

Hope you enjoyed this type of Newsletter. Let me know what you think!

All the best,

Devin

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