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Grayscale Launches Solana Trust Following Investors ‘Appetite’

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Solana

Grayscale Investments, the largest cryptocurrency fund in the world, announced a Solana trust, adding the growing cryptocurrency to its list of product offerings. They have shown great interest in Solana’s performance and see a near and long-term potential in it because of its capability for experimentation.

In a public release, Grayscale Investments said they will be “enabling investors to gain exposure to SOL in the form of a security while avoiding the challenges of buying, storing, and safekeeping SOL directly.” This will require a $25,000 minimum investment, charging Grayscale’s standard 2.5% management fee.

Grayscale CEO Michael Sonnenshein commented to Forbes:

In many investors’ minds, there’s a continued appetite to invest in Solana, In some sense, it is a more cost-effective blockchain [than Ethereum], and today we are seeing over 500 decentralized apps and about 1.2 million monthly active users on the network. When you kind of take a step back, and you see how quickly it has been able to ramp up, it’s certainly pretty impressive.

Regarding the investor’s appetite for Solana, FTX founder Sam Bankman-Fried is a strong supporter of the digital asset, giving a constant public endorsement that has become a key point of its current visibility.

Bankman-Fried has shared his view on Solana being better than Ethereum given its lower fees and possibilities of use and recently claimed it has the potential of becoming the next Bitcoin by mass adoption level.

Related Reading | Solana Could Become The Next Bitcoin, According To FTX’s Sam Bankman-Fried

With this addition, Solana becomes the 16th offering in Grayscale’s product line. They also provide exposure to Bitcoin (BTC), Basic Attention Token (BAT), Bitcoin Cash (BCH), Chainlink (LINK), Decentraland (MANA), Ethereum (ETH), Ethereum Classic (ETC), Filecoin (FIL), Litecoin (LTC), Livepeer (LPT), Stellar Lumens (XLM), Zcash (ZEC), and Horizen (ZEN).

Solana, the “Ethereum killer”, has had a great year overall, being in the investor’s spotlight, rallying to new all-time highs, showing massive adoption. It has aggressively dominated the terrain of funds held in cryptocurrency wallets.

The cryptocurrency managed to climb to the 4th position of largest cryptocurrencies by market capitalization, with a value of over $70 billion. The inclusion of Grayscale’s portfolio promises more visibility around institutional and individual accredited investors.

Related Reading | Solana Tops Cardano, Ethereum To Become The Most Staked Cryptocurrency

Grayscale Sees Potential In Solana

Despite the issues Solana has faced -such as the network’s 17-hour outage- and being more centralized than its close competitors, many call for its staking token SOL to hit $300 next, after having rallied close to $217,50 recently. Solana also dominates DeFi services and NFT minting, and its native token SOL became one of the best-performing assets of the year.

Solana Lab’s CEO, Anatoly Yakovenko, recently commented to The Block that the chances of the network going down again don’t really matter “in terms of safety to funds in the state”, not worried about the possibility of it happening again as he claims the users have nothing to worry about if they do not care about the time the transactions could take during an outage.

Sonnenshein shared that Grayscale sees near and long-term potential in Solana, not only seeing the growing interest from important investors but its fields of use for blockchain technology.

What’s been interesting about Solana is that it gives users the ability to learn, experiment, and build. They generally have more budget to experiment on the protocol than some other more established blockchains like Ethereum, because of lower transaction fees.

Solana trading at $212 in the daily chart | Source: SOLUSD on TradingView.com
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Bitcoin Leverage: Lack Of Liquidations Could Indicate Another Wave Of Selling

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Liquid pouring out of a bottle

Bitcoin finally broke below the $40K point this past weekend. This had sent the cryptocurrency back towards six-month lows. One thing though was that liquidations or the digital asset remained lower than expected. The current liquidation volumes lay well below the volumes that have accompanied previous crashes like this one. This could be a very important indicator for the market.

Bitcoin Liquidations Remain Low In Shakeout

Previously, whenever the price of bitcoin had dumped this hard, liquidation volumes have quickly risen. This is due to the massive sell-offs that follow such crashes as investors try to get out of a bleeding market. This time around, bitcoin liquidation volumes have not jumped. They remain really low, indicating that maybe investors were not done selling their holdings.

Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go

If this is the case, then there may be more downside coming as the week runs toward the end. Massive sell-offs have already sent the digital asset to lows not seen since mid-last year. Another round of sell-offs could end up pushing the cryptocurrency’s value down below $30K.

Last Friday, when the price of BTC had successfully broken below $40,000, the bitcoin futures and perpetual markets were rocked by liquidation. By the time the beginning of the weekend rolled around, over $854 million in long liquidations were already recorded. This may seem like a lot but compared to previous iterations of this type of shakeout, liquidations have fallen short.

BTC liquidation volumes fall short of expectations | Source: Arcane Research

May 2021 was the last time that BTC’s price had taken a similar plunge. In total, the market saw $4.8 billion worth of liquidated longs across the market. Indicating that the sell-off in May was more intense than those recorded in January of 2022. One explanation for the low liquidation volumes is that traders were able to re-allocate and add collateral to underwater trades, given that they’ve had more time to reassess their positions.

Where Are The Liquidations Happening?

Another reason for the low liquidation volumes could be the data available for analysis. Back in May 2021, crypto exchanges like Binance and ByBit had their bitcoin liquidation data out for anyone who wanted to have a look. Since then, there has been a change by both exchanges where they now restrict their liquidation. Now, analysts are having to guesstimate liquidation volumes using historical data from the exchanges.

Bitcoin price chart on TradingView.com

BTC price begins uptrend | Source: BTCUSD on TradingView.com

Binance still retains dominance of the market, thus, not having access to the crypto exchange’s bitcoin liquidation data could severely affect the volumes of liquidations being reported. The crypto exchange’s dominance in the market has risen since before its data was restricted, suggesting an even larger pool of liquidations that are not being reported correctly.

Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

Nevertheless, the liquidations have spilled into other spaces in the industry. Decentralized finance (DeFi) did not escape the onslaught in the least as it was also rocked by liquidations.

Featured image from Bitcoin News, charts from Arcane Research and TradingView.com
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Finding Bitcoin’s True Point of Pain, Why Sub $30K Seems Likely

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A bitcoin in front of a red market chart

Bitcoin maintains its bullish short-term trajectory into the U.S. Federal Reserve FOMC meeting, suggesting the downtrend might be losing strength. BTC investors have feel the pain in the last weeks, as the cryptocurrency displays a high correlation with the U.S. stock market.

Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

As of press time, BTC trades at $38,301 with a 2.3% profit in 24-hours.

BTC with moderate gains in the 4-hour chart. Source: BTCUSD Tradingview

Data presented by Joe Orsini, Director of Research for Eaglebrook Advisors, Bitcoin has historically experienced a positive performance in terms of percentage on FOMC announcement days. As seen below, the current FED Chair Jerome Powell’s administration has boosted the price of BTC as much as 20% during these days.

Bitcoin BTC BTCUSD
Source: Joe Orsini via Twitter

In addition, the chart shows that the BTC percentage change in the daily chart it’s typically moderate during these events. Probably due to the market already pricing in any potential announcements.

With the exception of April 2020, every FOMC meeting is followed by moderate price swings on these timeframes with the largest downside change near 5%. If Bitcoin remains on its current trend, it could score yet another bullish post FOMC trading day.

However, when the current Bitcoin drawdown is compared to that of April 2020, and July 2021, BTC seems ready for further losses. On the latter periods, BTC dropped below 60% and 50% before a significant price reversion.

Bitcoin BTC BTCUSD
Source: Teddy Vallee via Twitter

On the contrary, it only briefly recovered when it failed to drop below the aforementioned percentage. This suggests more downside after a dead cat bounce probably to the $40,000 area.

Bears Ready Ammunition? Bitcoin Reacts To Macro-Factors

During the current price action, investment firm QCP Capital has seen an increase in selling pressure for the spot market. In addition, short terms option contracts have experienced “aggressive buying” as large investors hedge their positions.

Related Reading | Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

QCP Capital has seen more confidence in the market as BTC recovers, but the firm is “not sure” if the market has seen the lows and will resume its full bullish trend. The firm compared the change in At-the-money options volumes for BTC and ETH when its price crashed in May 2021, and today.

At that time, the metric recorded a spike of up to 250% for ETH while current volumes remained “relatively tame”. In other words, the options sector seems to suggest BTC could be in for more blood. The firm added:

Does this mean that the market has yet to reach it’s true point of pain? Below 30,000 level in BTC perhaps? A lot of the short-term price action is going to depend on the Fed statement later today (…). Given the bloodshed in equities, chances are that we’ll get a fairly neutral statement and mkt will take that as an excuse to rally. A short squeeze across the board is likely.

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Zebec Announces Winners of Global Hackathon to Revolutionize DeFi & Web3 Payments

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Zebec Announces Winners of Global Hackathon to Revolutionize DeFi & Web3 Payments

San Francisco, USA, 26th January, 2022, Chainwire

Winning Projects Building Payment, NFT, Play-to-Earn & Music Applications Utilizing Zebec’s Continuous Money Stream Technology

Zebec Previously Announced Partnership with Visa to Bring Continuous Money Streams to Global Payment Network

Zebec, the first continuous and programmable cash stream protocol on Solana, announces the winners of its first global hackathon hosted with support from the Solana Foundation. The five winners of the hackathon were chosen from more than 250 projects and will now participate in the Zebec Launchpad program to further incubate and scale applications utilizing the company’s innovative payment technology. 

Unlike traditional financial settlement systems that move money on a one-time basis and require intermediaries who charge fees and take multiple days to process transactions, Zebec’s money streams can be started instantly and programmed as the user wishes. Zebec Pay, the company’s initial application, is the first tax compliant, on-chain payroll processing system enabling employees to be paid by the second — in USDC or other stablecoins — have immediate access to their money.  

Zebec launched in late 2021 with support from Republic Capital, Republic Capital, Shima Capital, Breyer Capital and other leading crypto investors. The company recently became the first Solana-based project accepted to Visa’s prestigious FinTech Fast Track program, which supports innovative startups revolutionizing digital payments.

Over the past several weeks, hundreds of developers participated in the Ship 2021 Hackathon to develop new ways to transform digital investments, payments, subscriptions and more. Five projects were selected as winners and will now receive financial and development support to further scale and implement their ideas: 

  • Cryptocurrency Hire: Enables crypto companies to hire talent and pay freelancers for their services with Sol, USDC and USDT through an integrated payment stream with Zebec Pay. 
  • NFT Soul: Provides a platform for NFT collectors to showcase their collections and charge exhibition fees. NFT Soul has integrated Zebec Pay SDK to charge users fees on Sol, USDC and USDT to watch premium NFT collections.
  • BOOK-D-Page: Allows authors to charge readers on a page-by-page basis as they consume content. 
  • War: The Conquer: A play-to-earn  (P2E) game based on the history of Unification of Nepal plans to integrate Zebec Pay SDK to distribute rewards in real-time to its users.
  • Zebec Music: Enables artists to be paid instantly for every stream of their songs.

“Almost every financial transaction can be transformed with Zebec’s programmable, continuous cash stream technology,” said Sam Thapaliya, founder of Zebec. “We’re incredibly excited to see the creative ways developers are already building an ecosystem that will make everyday payments easier and faster while also giving people unprecedented freedom to control their money like never before.” 

About Zebec 

Zebec Protocol is the first programmable cash flow protocol on Solana, enabling real-time and continuous streams of payments and financial transactions for payroll, investments and more. The automatic money streams made possible through the Zebec Protocol allow businesses, employees and consumers to completely reimagine how they are paid, how they invest and how they buy products or services. To learn more, visit Zebec.io . 

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