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A week less separates us from the highly anticipated migration of the Ethereum network, moving consensus mode from proof of work until proof of commitment. The upcoming ETH merger has been one of the most anticipated events in the crypto community for years. This is certainly a capital development of the project, but also a colossal technical challenge. Many compare what developers can expect to replace an airplane engine mid-flight. The stakes are higher than ever!

Despite a minor recent technical issue, the mid-September migration date is maintained. Yesterday, Péter Szilágyi, an Ethereum software developer, announced on Twitter that they have found a regression resulting in a corrupt state. In a later update, the developer pointed out that the issue is likely to affect release users by corrupting their database and leading to data loss. Despite the problems, the developers were able to deliver a solution after just one day. Go to Ethereum published a hot fix to correct the error. After this fix was released, Szilágyi advised the community to wait until development is complete to make sure they are using the “correct version”. The developer apologized on Twitter for missing out on the issue during the testing phase and promised to find out how to do better stress testing ahead of the official migration.

It is interesting to see that the amount of ETH deposits in the contracts of turn of hit a weekly all-time high… down. We could a priori expect the opposite! What explains this trend?

The most plausible hypothesis is that some investors might believe that short-term returns could be higher if they just keep their ETH tokens on the current chain in the hopes of getting some ETHW – the alleged cryptocurrency that could arise from a controversial attempt to resist fusion through a hard fork from Ethereum. The most popular platform of turn of offers a 3.9% return for wagering Ethers. Many probably believe that the value of an ETHW token will be worth more. Moreover, it seems clear that those who wanted to place their Ether in such contracts have already had ample time to do so, indicating that more than 11% of all circulating Ethereum supply has already turn of. Finally, don’t ignore investors who may just want to wait until after the merger to make sure everything is in order. A few weeks away from the last one, it actually makes a lot of sense.

The Beacon Chain – the PoS-based coordination mechanism of the new network – has been running alongside Ethereum’s current chain since December 2020, when investors were first invited to deposit their tokens to act as validators. The total amount of ETH deposited on the Beacon chain currently stands at over 13.3 million, representing 11.18% of Ethereum’s circulating supply.

The CME group appears to be looking to capitalize on a potential excitement surrounding Ethereum. Indeed, the derivatives exchange is preparing to add ETH options just before the merger. The launch is scheduled for September 12. Remember that options give the holder the right – but not the obligation – to buy or sell the underlying asset at an agreed price at any time before the contract expires. These Ethereum options contracts allow investors to bet on the future price of Ethereum with the option to cash out at any time before the contract expires. “As the highly anticipated Ethereum merger approaches next month, we are still seeing market participants turn to CME Group to manage Ether price risk.” said Tim McCourt, Head of Equity and Foreign Exchange Products. “Our new ether options will provide a wide range of customers with greater flexibility and precision to manage their exposure to ether ahead of market-changing events.”

The saga surrounding the Celsius crypto lending platform does not seem to want to slow down, quite the contrary. The company filed a counterclaim in US bankruptcy court on Tuesday against Jason Stone and his company KeyFi. In this complaint, Celsius alleges that Stone has misrepresented himself as a pioneer and expert on turn of and decentralized financial investments. “Unfortunately, Defendants Stone and KeyFi, Stone’s majority company vehicle, have proven incapable of deploying the tokens profitably and appear to have lost thousands of Celsius tokens due to their gross mismanagement,” Celsius said. “But the defendants were not only incompetent, they were also thieves.” Stone, whose KeyFi was acquired by Celsius in 2020, sued Celsius in July for allegedly refusing to honor its contract. In the lawsuit, KeyFi alleges that Celsius used customers’ money to “manipulate crypto asset markets, failed to establish basic accounting controls that put those same deposits at risk, and failed to deliver on its promises.”

The Ontario Securities Commission issued a warning today noting 13 crypto companies that are “not registered to trade or advise on securities in Ontario.” From the lot, we note the presence of the Kucoin exchange. In a June legal victory, the OSC successfully banned Kucoin from operating in Ontario and fined it just over $1.6 million for failing to register as a securities provider before the April 19, 2021 deadline. Binance also stopped offering its services to Ontario residents late last year.

A Coinbase client is suing the exchange for $5 million for failing to properly secure client accounts and “violating” federal securities laws, among other allegations. The lawsuit, filed last week and representing more than 100 people, alleges that the largest cryptocurrency exchange in the United States has banned users from their accounts for a long time — hurting them financially. The plaintiffs allege that the exchange crashed during periods of market volatility – which is indeed all too common on cryptocurrency exchanges – making it difficult for the user to withdraw funds. In the second quarter of this year, Coinbase saw a 60% drop in revenue and a net loss of $1.1 billion.

At the risk of sounding like a broken old record, following a slump in the stock and crypto markets over the past seven days, investors seem to be waiting for comments from Fed Chair Jerome Powell, scheduled for Friday. With inflation reportedly finally peaking, speculators are now waiting for the direction of the central bank’s monetary policy. Is the Fed still sufficiently concerned about inflation, but satisfied with the pace of the current economic slowdown, to continue its aggressive monetary policy of raising interest rates by 75 basis points? Or does she show herself dovish and announce a more moderate increase of 50 points? The markets are not yet in agreement on what comes next.

Technically, bitcoin once again lost the important 200-week moving average as the week closed. However, the bullish rally has not completely broken with a jump to $20,800. A technical indicator could also give investors a boost of optimism. The 50 week moving average is about to move up with the 100 week moving average. As one analyst put it, “Bitcoin’s 1-year moving average now crosses the 2-year moving average, in line with the corrective phase after a speculative rise”, adding that “it’s looking good from a technical standpoint.” …, whatever the feeling. Those who bought these tiers have done well before.”

This article is brought to you by Fonds Rivemont. The Rivemont crypto fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA are eligible. Accredited investors can learn more here.

Disclaimer: This column does not necessarily reflect the views of CryptonewsFR and does not constitute investment advice or instructions to trade..

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