CBX Weekly Newsletter // 9 Sep 2020
- Bitcoin drops below $10K
- DeFi is Hot but nothing compared to the ICO frenzy in 2017
- Sushi Token Loses over 99% of its value over the weekend
Bitcoin drops below $10K
Bitcoin can affect the crypto market overall as it losses over 10% since it’s recent peak and the rest of the market crashes harder.
Bitcoin dropped below $10K this week and recovered above $10,400. That’s the biggest single-day percentage decline since March 12 when bitcoin prices crashed around 40% amid a major sell-off across the equities markets.
It was apparent that the bull crypto market is driven by the overlap between internal and external factors; the economic stimulus plan which provided more money supply to the market and also the DeFi mania which is looking really similar to the ICO craze a few years ago.
Decentralized exchanges (DEX) are also taking a part in the price of Ethereum and Bitcoin latest surge because they require users to buy and invest in those two base currencies in order to swap against other tokens or stake for yield.
For now further drops can be expected as Bitcoin can be forming a flag which means that there could be continuation on the downside. However, looking at a bullish scenario the price could also retest $11K — 12K which are the most recent resistance levels.
DeFi is Hot but nothing compared to the ICO frenzy in 2017
Decentralized finance (DeFi) has exploded in 2020, but retail interest in the space remains quite low, if measured by Google search queries.
These suggest it may still be too early to draw parallels between DeFi’s growth and the initial coin offering (ICO) bubble of the final months of 2017 and early 2018.
Indexed to the peak of searches for “ICO,” searches on Google Trends for the word “DeFi” currently return a value of 18, indicating the retail crowd is as interested in open-source finance as they were in ICOs during the latter’s boom.
Sushi Token Loses over 99% of its value over the weekend
The price of Sushi token reached 15.97 on its first day on Sept. 1, then the price crashed to 1.13 of its lowest price the following days.
The Sushi token crash also pulled down the bitcoin price and the whole crypto market.
It was reported that Sushiswap founder has exited “scam”, then transferred control of the project to FTX’s CEO. FTX was an exchange backed by Binance.
The Sushi token incentive model is also controversial. The Uniswap’s founder, Hayden Adams said, the Sushi project can be created within one day by any competent developer. we still don’t know who is the real anonymous founder Chef Nomi and how is it connected to other exchanges.
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