Lossless short The besz and easiest short selling ever

18 Jun 2023

Technically short
fundamentally short


Speed of product launch is of paramount importance in crypto and yet it has a downside – smart contract bugs. The code is not always properly audited and tested before deployment. There is so much innovation taking place that some bugs are novel and might be missed.

The pace is something that is critical for the industry and mainstream adoption. However, we do need an environment that is safe for users to be in.

In the first quarter of 2022, crypto hackers stole a total of $1.22 billion in funds. It’s 8 times more than the first quarter one year ago, while the total market cap of crypto has gone up about 2 times.


Stopping hacks altogether is a challenge. The pace of innovation in crypto is incredible – there’s always a risk of a bug, something being skipped in the code.

The key is not to become risk-averse – you must test everything thoroughly and have plenty of audits. If a hack still happens, the focus should be to prevent it from following through. That is what Lossless is all about.

When a hack takes place on a token with Lossless Protocol implementation, the fraudulent transaction is frozen. This is done by a white hat-hacker community and their built bots. The latter are scouting continuously for potential malicious activity.

These bots incorporate algorithms that recognize fraudulent transactions and freeze them. The owner of the bot needs to commit Lossless tokens to generate a hack report. After it becomes public, Lossless community members, believing it is indeed a hack, can also stake tokens on top of the report to earn their share of rewards.

A hack is verified by a Decision-Making Body, composed of the token’s owner, Lossless team and a Security Committee with industry professionals on board. If a hack is validated, the bot owner and community members that contributed get rewarded and the stolen funds are reverted.

Lossless is about to launch its protocol on Ethereum’s mainnet on the 14th of April. This will be a big milestone for the project’s team and for the crypto industry. It will give the opportunity to spot hacks among cryptocurrencies with integrated Lossless security measures and stop loss of funds.

All functionality covered in this article will be available for the Ethereum, Polygon, Binance Smart Chain, Harmony, Avalanche and Fantom blockchains.

Lossless believes that security is the next big step the industry needs to take to onboard more users into DeFi. Lossless Protocol’s vision is a trusted and safe DeFi ecosystem with minimal to no losses from hacks, exploits, or social engineering.

18 Jun 2023

Nota

BTC Bears Target Sub-$26,000 on SEC v Binance and Ripple Battles

BTC was flat this morning, with regulatory uncertainty stemming from the SEC lawsuits against Ripple, Binance, and Coinbase testing buyer appetite.


The market structure and momentum of Bitcoin was bearish, but its bounce back above 26k gave bears some food for thought.


Bitcoin’s correlation with the S&P 500 turned negative over May. This meant that the index has an overall bullish outlook, but Bitcoin has trended in the opposite direction in recent weeks. The increasing hostility from regulatory bodies in the United States has played a part in BTC’s misfortunes on the price chart.



There was an argument to be made that Bitcoin showed some signs of recovery. Yet, an analysis of the price action showed that the bias remained in favor of the sellers. On the other hand, if Bitcoin climbs to 28k, it could signal an uptrend.


Can the bulls drive Bitcoin past 27.4k next?


The market structure of Bitcoin on the daily timeframe was bearish. The structure shifted on 21 April when BTC dipped below a recent higher low. Since then, the price has trended lower on the chart.

Moreover, the trading volume has been extremely low from April onward, compared to the volume seen in February and March. This was reflected on the OBV as well, which only went slightly lower in May in contrast to the rapid gains it posted in mid-March.

The Fibonacci levels based on the recent leg down show that Bitcoin was likely headed toward 24.8k. The 61.8% extension level at 23.3k was also a target it presented. The price action showed that the 24.2k-24.4k region could serve as strong support. Beneath that, the 22.4k and 21.5k levels were important.

To signal a bullish shift in the structure, Bitcoin prices must rise back above the recent lower high at 27.4k. Yet, an uptrend would not be established there, as BTC would need to form a higher low and continue higher. Cautious investors can wait for this turn of events before looking to buy.


On Saturday, BTC extended the winning streak to three sessions, gaining 0.67% to end the day at $26,535.
SEC v Binance news delivered a breakout morning session before profit-taking left BTC with modest gains.
The technical indicators turned bullish, signaling a return to $27,000.
On Saturday, bitcoin (BTC) gained 0.67%. Following a 2.92% rally on Friday, BTC ended the day at $26,535. Significantly, BTC enjoyed its first three-day winning streak since May.

A mixed start to the day saw BTC fall to an early afternoon low of $26,202. Steering clear of the First Major Support Level (S1) at $25,523, BTC rose to a late morning high of $26,857. However, falling short of the First Major Resistance Level (R1) at $26,882, BTC eased back to sub-$26,500 and a range-bound afternoon session.

SEC v Binance News Delivered Brief Relief
On Saturday, news of Binance striking a deal to address the SEC’s motion to freeze Binance US assets supported a breakout morning.

Binance, Binance US, and the SEC agreed on a deal restricting access to customer funds to Binance US employees. The agreement prevents Binance Holdings staff from having access to private keys for US wallets.

The SEC filed a motion to freeze the assets of Binance US shortly after filing charges against Binance, Binance US, and Binance CEO CZ.

On Saturday, the US Court signed off on the deal, which allows Binance to repatriate all US customer funds and private keys onshore to nullify the motion to freeze.

While the news was positive, Binance US and Binance face charges that could drag on and further impact the US digital asset space.

Uncertainty toward the SEC v Ripple case remains another headwind, with optimism of a Ripple win fading after the release of the Hinman speech-related docs.

The Day Ahead
It is a quiet Sunday session, with no US economic indicators to provide direction. The lack of external market forces will leave BTC in the hands of the crypto market news wires.

SEC activity remains the focal point, with SEC v Ripple, Binance, and Coinbase (COIN)-related news likely to move the dial.

We also expect market sensitivity to lawmaker chatter. US lawmakers have remained silent on the William Hinman speech-related documents and the SEC charges against Binance and Coinbase.

Bitcoin (BTC) Price Action
This morning, BTC was down 0.05% to $26,523. A mixed start to the day saw BTC rise to an early high of $26,551 before falling to a low of $26,410.


BTC Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 100-day EMA ($26,269). The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, sending bullish signals.

A move through the 200-day EMA ($26,654) would support a breakout from R1 ($26,861) to target R2 ($27,186). However, a fall through the 100-day EMA ($26,269) and S1 ($26,206) would bring the 50-day EMA ($26,059) into view. A fall through the 50-day EMA would send a bearish signal.

Resistance & Support Levels

R1 – $ 26,861 S1 – $ 26,206
R2 – $ 27,186 S2 – $ 25,876
R3 – $ 27,841 S3 – $ 25,221
BTC needs to move through the $26,531 pivot to target the First Major Resistance Level (R1) at $26,861 and $27,500. A move through the Saturday high of $26,857 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,186 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,841.

Failure to move through the pivot would leave the First Major Support Level (S1) at $26,206 in play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$26,000 and the Second Major Support Level (S2) at $25,876. The Third Major Support Level (S3) sits at $25,221.

11 Jul 2023

Nota

Wall Street Extends Gain Ahead of CPI Data
US stocks closed higher on Tuesday, extending gains for the second session, as investors looked forward to the key inflation report due tomorrow. The Dow Jones finished over 316 points higher, as Salesforce rose 3.9% after the company announced it will be increasing list prices an average of 9% in August. 3M and Boeing were also among the top performers and advanced by 4.8% and 2.6%, respectively. The S&P 500 gained nearly 0.7%, led by the energy sector as APA (+6.3%), Halliburton (+4.2%) and Schlumberger (+4.5%) outperformed. Meanwhile, the Nasdaq added 0.5%. Traders were also digesting comments from several Fed officials which continued to point to the need of further tightening this year. The odds for a 25bps increase in the fed funds rate this year currently stand at 95%, but investors remain divided about another rate hike. The economic calendar is soft today and the earnings season kicks off later in the week.