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Mortgage Lenders Come Under Congress Home Loan Scanner

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Will the Congress come to the rescue of consumers to initiate reform of home loan mortgage lenders? It may. The Democrat-led Congress may submit legislation to place stringent measures to curb abuses within the mortgage industry.

The mortgage industry includes not only mortgage lenders, mortgage brokers, but also home builders who own mortgage companies, Wall Street, and other mortgage security investors. If stringent measures are implemented by Congress, it will protect future consumers from being exploited. However, it may have an ancillary effect in that it may protect purchasers of mortgage backed securities. The recent past has seen unmitigated mayhem in the market. Countrywide Financial’s second quarter profits dropped, leading to a fall in share prices to a 52 week low on July 24, 2007. Its second-quarter net income dropped to $485.1 million from $722.2 million, a year ago with revenue falling 15% to $2.55 billion.

This week American Home Mortgage, a large national mortgage lender announced that it may not be able to fund current inventory of home loans in excess of $300 million dollars, sending its stock value plummeting by 90 %. But the subprime mortgage disaster is affecting even prime loan lenders and borrowers.

Wall Street is also reeling from the rise in foreclosures, oversupply of homes, subprime mortgages, defaults, and more. Nevertheless, Wall Street is complicit along with home builders and mortgage lenders in creating this problem.

Beazer Homes, one of the many homebuilders that started or increased their mortgage lending business to facilitate the buying of their homes. However, allegations are now surfacing from former homeowners who have defaulted on their mortgages that some builders inflated their income or altered some material facts on the mortgage applications in order to get them approved. In order to get homes sold many financially unqualified people were approved for mortgages and other home loans such as mortgage refinancing.

The housing market boom of the recent five years was due to many diverse factors. Banks, mortgage companies, and homebuilders relaxed their lending standards and flooded the market with mortgage loans, along with loans to people with questionable credit. Unlike before adjustable rate mortgages were doled to increase their bottom line. The folks on Wall Street stimulated this reckless mortgage lending behavior by continuing to buy huge quantities of home loans for repackaging as securities. Many of these mortgage backed securities contained risky subprime mortgages.

Now that the housing bubble has burst, rising foreclosure rates, oversupply of homes, increasing mortgage rates, less home buying demand, and the negative residual effects upon the economy is leading to closer examination by government into the role of mortgage lenders, home builders, and Wall Street.

The Congress wants to reign in the Wild West lending tactics by imposing strict lending guidelines. But that may not be required if the Federal Reserve recommends new consumer protection rules this year. So, the Congress may not have to act if the Fed constraints misleading loan practices among all lenders. Hopefully, national lending standards need to replace the various state rules because the mortgage investment market is a national one.

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Despite Dips, Bitcoin Exchange Reserves Reach Lowest Values Since 2018

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On-chain data shows Bitcoin exchange reserves continue to decline despite the recent dips, as values reach lowest since 2018.

Bitcoin Exchange Reserves Continue To Go Down

As pointed out by a CryptoQuant post, the BTC all exchanges reserve is moving down despite the recent downtrend in the price of the cryptocurrency.

The Bitcoin all exchanges reserve is an indicator that shows the total amount of coins held on all centralized exchange wallets. A dip in the value of the metric suggests investors are transferring their BTC to personal wallets, either for holding or for selling through OTC deals.

On the contrary, an increase in the indicator implies investors are sending their coins to exchanges for withdrawing to fiat and stablecoins, or for purchasing altcoins.

Here is a chart showing how the Bitcoin exchange reserve has changed over the years:

The exchange reserve continues to decline

As you can see from the above graph, the BTC all exchanges reserve has hit lows not seen since 2018. Usually, during periods of big price swings, the indicator’s value shows a spike as investors look to shift their positions in the market.

Related Reading | Bitcoin Holders Take Profits As Price Falls, Indicators Remain Bullish? 

However, despite the recent dips, the metric has only been trending downward. What’s the reason behind this? Well, one possible scenario could be that there are now more long-term holders in the market that are waiting for the price to appreciate further before they make any moves.

A downtrend in the exchange reserve is often a bullish indicator as it shows buyers are accumulating Bitcoin, while an uptrend could lead to crashes in the crypto.

Below is another chart that shows the BTC netflow indicator over the last couple of days.

Bitcoin Netflow

Looks like the Bitcoin netflow showed a huge negative spike yesterday

The netflow indicator measures the net number of coins exiting or entering exchanges. As is apparent from the above graph, the metric had a big negative spike yesterday, which implies a large amount of BTC was pulled off exchanges.

Related Reading | Did Turkey’s President Say “We Are In A War Against Bitcoin”? An Investigation

BTC Price

Yesterday, Bitcoin’s price crashed down to $40k after peaking just below $49k a few days back. But the price has since jumped back a bit as it floats around $43k at the time of writing. The crypto is down 7% in the last 7 days, while over the past 30 days, the value is 11% less.

Here is a chart showing the trend in the price of the coin over the last five days:

Bitcoin Price Chart

BTC's price crashes down to $40k, but quickly recovers back up a little | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant
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During Times of Market Fall, Investors Turn to Core Assets

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During Times of Market Fall, Investors Turn to Core Assets
  • Layer-1 blockchains enhance the underlying protocol itself.
  • Cryptocurrencies are seeing volatile price fluctuations.

The market has been down and is having a steep decline in the last 24 hours. Today, many cryptocurrencies lost value along with other assets like equities and commodities.

Layer One Protocol

After a year of gains and highs, cryptocurrencies are seeing volatile price fluctuations. Scalability is a must. Thus, anyone engaged in the crypto/blockchain sector has heard of “layer-1” and “layer-2” solutions.

In order to make the entire system more scalable, layer-1 blockchains enhance the underlying protocol itself. The most frequent layer-1 solutions are consensus protocol modifications and sharding.

Projects like Ethereum are switching from slower and more energy-intensive consensus algorithms like proof-of-work to quicker and more efficient protocols like proof-of-stake (PoS). One benefit of layer-1 solutions is that no additional infrastructure is required to be added.

Now, during such troubled times, the majority of the top coins belong to layer one protocol. Moreover, that is because investors have shown trust in these core assets.

Famous crypto analyst Lark Davis said in a tweet that out of 15 top coins right now, 10 of them belong to layer one protocol and how people turn to core assets at the time of market distress. Lark’s tweet:

Decentralized finance (DeFi) and the explosion in popularity of non-fungible tokens (NFTs) have been enabled by secure layer-one blockchain protocols capable of hosting smart contracts such as Ethereum. However, as more people utilise the top networks, transaction prices have skyrocketed and processing times have slowed.

Now, consumers unfamiliar with new technologies and who cannot pay hundreds of dollars for each transaction may utilize blockchain and DeFi, credit to layer one protocol.

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South Korean Province Captured Over $5M Worth Crypto for Unpaid Fines

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South Korean Province Captured Over $5M Worth Crypto for Unpaid Fines
  • Gyeonggi province had captured 6.1 billion won in cryptocurrencies.
  • The regulators have organized an investigation of 29,656 companies.
  • The frozen food company CEO had 600 million won in cryptocurrency.

Gyeonggi Province is one of the most populous provinces in South Korea. In last week Gyeonggi province has announced that it had captured 6.1 billion won in cryptocurrencies the wroth is nearly $5.15 million from around 1,661 people who unpaid the fine of a total of 14.4 billion.

Accordingly, the regulators mentioned that May to August last year. The regulators have organized an investigation of 29,656 companies and individuals who were troublesome on their payment of over 1 million under the category of non-taxable income. The investigation also includes examining their cryptocurrency assets at four exchanges.

More so, in South Korea, the income enforced and collected following the Administrative Procedures Act which includes government fees and fines is referred to as Non-taxable income.

Eventually, if a clothing wholesaler failed to pay the enforcement fees of 20 million enforced on him last year for unauthorizedly developing an extension of his factory. The investigation which conducted by regulators revealed that the clothing wholesaler had 500 million won in cryptocurrency.

Furthermore, the frozen food company CEO had 600 million won in cryptocurrency. Even though the CEO has paid 40 million won in fine, which includes the enforcement fees enforced because in 2017 the CEO illegally shifting his business establishment to a warehouse.

Since 2018, the local real estate rental company owner has 50 million won in arrears for developing an unauthorized extension and making land quality change, now owned 60 million won in cryptocurrency.

Moreover, in a local media, the head of Gyeonggi’s taxation department, Kim Min-Kyung mentioned,

“It is the largest amount of cryptocurrency seizure in the country for nontaxable income delinquents.”

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Did Bitcoin Really Experience A Flash Crash Down To $5,400?

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Picture of a slightly slanted gold bitcoin in front of a candlestick chart

Bitcoin has been plagued by numerous dips that have left the price of the asset at one-month lows. Monday was brutal for the cryptocurrency as the close of the weekend drew in with its low momentum in the market. This, in turn, led to the market experiencing a downtrend. Most notable was the price of bitcoin actually dropping into the $42,000 price range.

While the market dealt with this, a record flash crash happened on the trading platform Pyth Network. The crash was so significant that it saw the price of bitcoin lose almost 90% of its current value. The price crash lasted for approximately two minutes. Driving the price of bitcoin down to as low as $5,400 on Monday. The crash happened between the BTC <> USD pair on the Pyth Network. The Solana-based solution also saw the confidence interval (four times the asset reported price) for bitcoin drop to $21,623.

Related Reading | Just 10 Days After El Salvador’s “Bitcoin Day”, President Bukele Confirms 1.1 Million Citizens Have Chivo Wallet

Pyth Network acknowledged the crash on their Twitter account, where they assured their users that they were working to figure out what caused this. “Engineers are continuing to investigate the cause and a full report is in the works,” it said.

BTC price recovers after falling to low $40K | Source: BTCUSD on TradingView.com

Why Did Bitcoin Crash So Much?

It is still not clear what the reason behind the crash was. So far, there seem to be no other pairs affected by the crash. And no other cryptocurrencies have been reported to have suffered the same fate as bitcoin. The crash led to massive liquidations on the platform, which were, “unfortunately working as intended,” tweeted Bonfida.

Related Reading | While Broader Crypto Market Holds Its Collective Breath, Whales Are Loading Up On Bitcoin

The crash no doubt affected a number of Pyth Network users. The network has apologized to affected users, saying, “We’re very sorry for any hurt incurred for Pyth customers.” And the team has asked those affected by the flash crash to reach out to the team either through Twitter or Discord. The team continues to work on figuring out the cause of the crash and will produce a report of their investigations.

Featured image from Yahoo Finance, chart from TradingView.com

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OMG Network (OMG) Shows Bullish Sign Surging 30% in a Week

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OMG Network (OMG) Shows Bullish Sign Surging 30% in a Week
  • OMG shows bullish signs surging 30% in a week.
  • It provides cross-platform payments on the blockchain. 
  • OMG Network’s (OMG) price is trading at $10.65% 

A value transfer network for Ethereum and ERC-20 token is the OMG Network. In the past few days OMG network showing a bullish signal. Now, OMG Network (OMG) shows bullish signs surging 30% in a week.

Currently, OMG Network consists of a team of more than 50 employees derived all over the world. It was developed to help make Ethereum more attractive to businesses. OMG Network contains a proof-of-stake (PoS) consensus mechanism, this will enable users to stake their OMG tokens to help secure the network and earn rewards.

Furthermore, OMG, the utility token of OMG Network is utilized as one of the payment options for fees on the OMG Network. Child chains of OMG Network are secured by a proof-of-authority (PoA) consensus system. The child chain behaves as a transactional chain of the parent-child architecture.

More so, it provides cross-platform payments on the blockchain. This open payment network and decentralized exchange (DEX) abide in the Ethereum blockchain and enable a scalable and fully open alternative for users.

Furthermore, the users of OMG will enjoy low fees, quick transaction, and cash-out options. The OMG Network has launched a new scaling solution that increases the transaction speed.

Current Market Staus of OMG

According to CoinMarketCap, OMG price is trading at $10.65% with a 24-hour trading volume of $4,355,392. The circulating supply of OMG is 140,245,398.25 OMG and it spikes 21.65% in the last 24 hours. In the past 7 days, OMG has surged over 30%.

The above chart shows the bullish trend over the last 7 days. In the past 7 days, OMG has increased from $8.5 to $10.65. OMG Network can be traded in the crypto exchange such as Binance, Mandala Exchange, Huobi Global, OKEx, and FTX.

In addition, the upcoming updates and upgrades will boost the price of the OMG. Eventually, crypto traders can expect more surges in the forthcoming days

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Top 3 Play to Earn Token by Volume

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Top 3 Play to Earn Token by Volume
  • The top 3 plays to earn tokens by volume are AXS, GALA, SAND.
  • Axie Infinity is the blockchain-based play-to-earn platform. 
  • The players of Gala Games can own non-fungible tokens (NFTs).

Play-to-earn enables gamers and gaming enthusiasts control over in-game assets, also enabling these gamers to raise the value of these assets by continuously playing the game. The top 3 plays to earn token by volume are Axie Infinity (AXS), Gala (GALA), and The Sandbox (SAND)

1. Axie Infinity (AXS)

Axie Infinity is the blockchain-based play-to-earn platform. It was partially maintained and operated by its players. Axie Infinity’s players take colorful, blob-like creatures which are known as Axies to obtain two kinds of coins such as Smooth Love Potions (SLP) and Axie Infinity Shards (AXS). More so, Axie Infinity (AXS) token is an ERC-20 token that was developed on the Ethereum blockchain.

According to CoinMarketCap, Axie Infinity’s (AXS) price is trading at $56.28, with a 24-hour trading volume of $356,196,236. In the last 24 hours, the AXS volume was increased 29.33%. At the time of writing the circulating supply of AXS is 60,907,500.00 AXS.

2. Gala (GALA)

The second top pay to earn tokens by volume is Gala (GALA). It has been designed to provide power to the gaming industry. Gala Games has developed an ecosystem in which players and creators may be rewarded for their participation. Furthermore, it operates many games, and there is a chance to trade items obtained from them in the blockchain. The main mission of the Gala games is to develop blockchain games that really users want to play. The players of Gala Games can own non-fungible tokens (NFTs) within the Gala Games ecosystem.

As per CoinMarketCap, Gala’s (GALA) price is trading at $0.1084 by gaining 17.84 in the last 24 hours. A the time of writing, the 24-hour trading volume of GALA is $267,498,683, GALA volume surged 32.56% within one day.

3. The Sandbox (SAND)

Software running on Ethereum that works on a decentralized virtual gaming world is Sandbox. Sandbox native token SAND is utilized to provide different transactions that are part of its gameplay. Henceforth, it uses the proof-of-stake (PoS) consensus mechanism. Sandbox seems to be one of the unique platforms because it fetches blockchain technology to the world of gaming.

Accordingly, at press time, the SAND price is trading at $0.6553 with a 24-hour trading volume of $162,208,685. As per CoinMarketCap, the trading volume of SAND has increased 6.87% in the last 24 hours. The circulating supply of SAND is 892,246,119.22 SAND

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PayPal Launched a New App for All Digital Payments

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PayPal Launched a New App for All Digital Payments
  • PayPal has launched a new application. 
  • The app is considered as a one-stop-shop for all digital payment needs.
  • The new app includes both crypto and non-crypto use cases along with a wallet tab.

PayPal has launched a new application. To add, the app is considered as a one-stop shop for all digital payment needs of the platform’s users. 

Back in July, PayPal CEO Dan Schulman said the platform’s app was getting ready for a release in the US. As per the release on Tuesday, the new PayPal app will allow customers to access all digital financial products of the platform. 

Moreover, the new app includes both crypto and non-crypto use cases along with a wallet tab. More so, the wallet tab is to manages the digital asset payments and also high yield savings. Aside from all, PayPal also collaborated with Synchrony Bank, an online bank. Hence, this is to offer high yield savings account through the new app. 

Added to this, the virtual asset payment giant announced that users can get up to 0.4% annual percentage yield on their savings with the new app. Even more, users will also be able to withdraw their earnings from the savings account to the balance in PayPal to utilize in online shopping. 

Other features will be bill payments, cashback, and rebates, also direct deposits. In addition, the latter feature will reportedly allow users to get payments before 2 days. 

PayPal will also add even more features in the coming days. Furthermore, the announcement of a new user app comes only a few days after the firm debuted digital asset trading for customers in the UK. 

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Binance Customers in Australia Will No Longer Open New Positions

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Binance Customers in Australia Will No Longer Open New Positions