🌊 Is a Massive Bullish Wave Upon Us?

Crypto Rand
7 min readDec 5, 2023

Happy Monday dear subscribers! We just left Black Friday and Cyber Monday behind us and we are happy to present you with a good deal; our Newsletter in steroids!! Enjoy the new design and extra content! In today’s newsletter, we are covering:

  • Surfing the Market, with analysis on Bitcoin, Cardano.
  • Don’t miss the News about Binance, kyberswap hack
  • The RWA narrative is under the spotlight.
  • Short article about Fibonacci.
  • Our selection of the best Gems on X.

Bitcoin price soars above the $40,000 range and continues with the bullish reversal.

  • The hype on the imminent ETF keeps bringing new liquidity
  • We are just 5 months away from the BTC Halving

The Big Caps Index is reaching new highs not seen since more than one year.

  • Consolidation over this range would trigger the bullish reversal
  • Coins indexed: ETH, BNB, XRP, ADA, MATIC, SOL…etc

Binance’s New CEO Richard Teng Addresses Compliance Gaps and Growth Amidst Regulatory Scrutiny

Binance’s new CEO, Richard Teng, addresses the exchange’s historical compliance gaps, emphasizing a renewed focus on regulatory adherence. Stepping in after Changpeng ‘CZ’ Zhao’s departure, Teng expresses confidence in steering Binance’s growth agenda while complying with global regulators.

Key Points:

  • Teng, who took over from Changpeng “CZ” Zhao, is confident about pushing ahead with the growth agenda while working closely with global regulators.
  • The $4.3 billion settlement with the U.S. Department of Justice is attributed to compliance lapses during Binance’s rapid expansion from 2017.
  • Teng highlights the ongoing compliance obligations and costs resulting from the settlement, including a five-year monitorship and ensuring Binance’s complete exit from the United States.
  • Despite the settlement, Teng emphasizes the scrutiny ensuring the safety of user funds and clarifies the $3.9 billion worth of Tether movement is unrelated to resolution matters.
  • Teng addresses perceptions of Binance being treated unfairly compared to mainstream finance firms, stating that the exchange is now one of the most regulated globally, operating in 18 jurisdictions.
  • Binance’s focus on compliance is highlighted, with significant investments in talent from regulatory agencies and traditional financial institutions.
  • The company establishes regional headquarters in the UAE for MENA operations and France for European operations, aiming to benefit from clear regulations and fostering institutional adoption.
  • Teng acknowledges the unenviable task of stepping into CZ’s shoes but emphasizes the maturation and transformation of Binance over the past six years.

Binance Faces Crucial Transition Amidst Record $4.3 Billion Settlement

Binance, the world’s largest cryptocurrency exchange, grapples with a historic $4.3 billion settlement with the U.S. Department of Justice (DOJ) over money transmission law and sanctions violations.

Founder and CEO Changpeng “CZ” Zhao resigns, facing $200 million in penalties. Despite the colossal fine, Binance seems financially robust, holding $65 billion in crypto assets and appears overcollateralized.

The settlement requires an independent monitor and ongoing compliance reports. The new CEO, Richard Teng, aims to navigate the regulatory landscape, but challenges loom, including an SEC lawsuit, executive departures, and changes in user experience.

Binance’s future hinges on compliance, growth, and public perception.

Key Points:

  • Binance settles with the DOJ for $4.3 billion, facing charges of money transmission law and U.S. sanctions violations.
  • CZ steps down as CEO, replaced by Richard Teng, amid concerns of a mass exodus of funds.
  • Binance’s latest “proof of reserves” report shows $65 billion in crypto assets and over-collateralization.
  • The settlement mandates an independent monitor and continued compliance reporting to the U.S. government.
  • Despite the massive penalty, Binance aims to transition into a compliant and growth-focused entity.
  • Challenges include an SEC lawsuit, executive departures, and alterations in user experience.
  • Binance’s future prospects rely on its ability to maintain compliance, foster growth, and regain public trust.

This narrative is nothing new in the crypto ecosystem. A wave of RWA (Real World Asset) projects appeared around 2017 to take over, but the world wasn’t ready, now blockchain technology has matured and a new wave of interest seems to be awakening around it.

In essence, RWA tokenization is just the process of converting real-world assets into digital tokens that can be traded on a blockchain.

The way things work today, you can only buy these assets through centralized entities like a brokerage as they are the only ones licensed for that, making money off their trading fees. But if we think about it, this is actually a great use case for Crypto and DeFi.

With RWA platforms, DeFi users like you and me can buy and lend these shares that are backed by real traditional assets. Therefore DeFi users are the ones earning the yield.

For that reason RWA means the bridge between traditional finance (TradFi) and the digital asset market (DeFi); the tokenization would come with many benefits:

  • Reduce transaction costs: Intermediaries in the transaction process can be eliminated, resulting in cost savings for buyers and merchants.
  • Increased liquidity: Assets become global and not dependent on borders, so they can be exposed to anyone, anywhere, as long as there is an Internet connection.
  • Enhanced security: Blockchain technology is one of the leading technologies in decentralised security.

Currently, $LINK is the leading flagship on the RWA narrative as Chainlink Proof of Reserve verifies the collateralization of any on-chain asset backed by off-chain or cross-chain reserves. But other smaller cap projects are closely following covering the different niches like the ones presented in this selection made by BlockWorks:

What are your favourite RWA projects? Come to our Discord group and let us know! Stay tuned for upcoming projects reviews on RWA and other powerful narratives in future Newsletter editions!

Fibonacci Sequence

You’ve probably seen and heard many times the name of Fibonacci related to trading. Here is a brief explanation of why.

Before we start, a bit of history: Fibonacci, also known as Leonardo of Pisa was an Italian mathematician born in 1170. The first appearance of the sequence was in the book Liber Abaci (The Book of Calculation, 1202) by Fibonacci where it’s used to calculate the growth of rabbit populations.

The Fibonacci sequenceis a sequence in which each number is the sum of the two preceding ones. These numbers are known as Fibonacci’s numbers:

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, ….

The famous Golden ratio 0.618 or 1.618 is obtained by dividing a number by its next in the sequence, for example, 55/89=0.618 or 89/144=0.618 but we can calculate it in reverse too, 89/55=1.618 or 144/89=1.618.

Maybe you would ask “Why are we studying these boring numbers”? Well, this sequence appears in real life, especially in nature. For example, the number of petals in a flower is invariably a Fibonacci number, even in the segments of the pine cones up and down you will find them, also snails use them to grow their shells… and of course, it shows up in markets as a one of the most useful tools in trading, because yes my friends markets are part of the nature too.

When we talk about trading we can use them to calculate the probability of a retracement or project a future swing. The most common retracements are 0.382–0.5–0.618 (the Golden ratio) — 0.786 and for projections: 0.618–1–1.618. This works so well in Crypto because of the large number of bots doing trading strategists.

PS: here is a cool explanation of how to set the Fibonacci tool in your trading charts.

Here

Hope this helps you understand what Fibonacci means and why everyone in the markets is talking about it. And remember, we are among Fibonacci’s numbers.

Really interesting breakdown on how to proceed for the upcoming bull run:

Some traditional finance alpha knowledge by Drian Feroldi:

Impressive breakdown on Real real-world assets impact for 2024

We hope you enjoyed this new format. Don’t sleep on this market, lots of opportunities to come, see you next week!

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Crypto Rand

Investor & Trader. CEO of Blockground Capital. Based between Andorra and Bangkok.