🌑 The dark side of crypto

Also discussed are steps to become an early bird on the Linea mainnet, how crypto and crime are linked, Horizen prospects, and more.

Hey there, crypto enthusiasts and blockchain believers! It’s your buidlbee team here. Join us on this thrilling journey through the blockchain, where innovation meets interesting portfolio ideas and fortunes are waiting to be unlocked. Remember, while we provide valuable insights, always conduct your research and trade responsibly. Let's go:

  • Criminal crypto adoption;

  • Assessing BNB's future potential;

  • Horizen (ZEN) looks bearish (technical analysis);

  • How to increase activity on Linea.

Here are some of the biggest news:

  • Reuters: Meta executives said that the number of active users in the Threads app has roughly halved compared to the first days after launch.

  • The crypto firms will have to disclose information to the SEC about cyberattacks.

  • Elon Musk took over the @X user account without returning a penny to its owner. The former owner of the account simply received a letter stating that his Twitter account was being taken over by the company.

  • SEC Chairman Gary Gensler has expressed concern about "rampant manipulation" in the cryptocurrency market. In an interview on Bloomberg TV, he warned investors that the industry is "overrun with fraudsters."

🔪 Criminal adoption in the wild

Just recently, we wrote about the hunt for crypto enthusiasts in Canada, where police reported a series of attacks and robberies. According to the news, similar hunts are now going on all over the world. The latest famous case is that of Fernando Perez Algaba, a previously missing millionaire crypto blogger from Argentina. He was found m*rdered this week, and the remains of his body were found dismembered in a suitcase.

Algaba ran a cryptocurrency trading business in Buenos Aires, with 25 traders working in his office. Algaba was active on Instagram with more than 917,000 followers. In it, he promoted crypto and showed off his luxurious life, expensive cars, and parties.

In a sense, all these similar cases are signs of ongoing criminal adoption (analogous to mass adoption), which indicates that cryptocurrency is beginning to be recognized as an objective value even by organized crime. All crypto influencers have a reason to rethink their lifestyle in this regard.

🗼 Asia's small crypto revolution

It is well known that Asia plays an important role in the crypto sphere as the most dynamic and numerous part of the community. And this chart shows the important changes in Asia:

India has overtaken China for the first time to become the largest crypto employer in Asia, representing 20% of the Asian crypto workforce. From the fresh data, we can also see that Singapore and Hong Kong are also very important countries in the region.

💲 Ideas

[1] 🔔 To BNB or not to BNB?

Binance and its founder, Changpeng Zhao (CZ), are trying to get the dismissal of a complaint filed against the trading platform by the U.S. Commodity Futures Trading Commission (CFTC).

The regulator previously sued Binance for insider trading through "approximately 300 proprietary accounts" that are directly or indirectly owned by CZ.

As you can see, the charges from the CFTC are even more serious than those from their SEC counterparts. And here is the current result in numbers from the pressure of regulators from different countries: Binance's spot market share has fallen from 64% at the beginning of the year to 50% (and obviously will continue to fall further due to the increasing number of claims from other countries).

But to understand the situation, it's better to see the chart of BNB, Binance's exchange coin. Normally healthy altcoins follow BTC, but as you can see in the chart below BNB (blue), starts to have a strong divergence with BTC (red) in early 2023 — BNB has literally become anti-BTC. The decoupling of BNB from the BTC rate channel came at a time of legal attack by regulators.

This behavior of BNB makes it at least unprofitable to HODL, at most a very dangerous asset that will collapse once again in case of new legal attacks (the probability of which is high). So far, Binance has not managed to solve any of the legal problems that have arisen, and this makes it necessary to reconsider one's asset portfolio.

[2] 🔔 Could Horizen ($ZEN) potentially go up?

Horizen is a zero-knowledge network of blockchains powered by the largest node system with tools for developers to custom-build blockchains.

According to RLinda's technical analysis, $ZEN forms a prolonged "bearish wedge" and shows strength amid Bitcoin's decline. The token consolidates and stops under resistance at $9.66, forming an ascending triangle. Over the next few weeks, $ZEN consolidates and continues to climb.

A retest of the previously broken boundary or consolidation above the $9.66 level may be formed soon, providing a possibility to enter more favorably. However, the token is breaking through the moving averages, which could indicate a change in trend.

  • Support levels: $9.66, the previously broken trend boundary.

  • Resistance levels: $11.4; $15.12.

  • Medium-term outlook: $15.12.

*Any technical analysis, in the long run, cannot accurately predict the movement because now is a very tough market and the news can swing currencies in all directions.

[3] 🔔 Showing activity on Linea

Linea is a zkEVM from ConsenSys, developers of the browser-based MetaMask wallet. The main network was recently launched, and there are already plenty of options to test it out and become an early bird. It will be especially useful for those who took NFT in the quest campaign on Galxe.

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