Ethereum Miners Don’t Cause Price Volatility, Says Analyst

Source: Adobe/Photocreo Bednarek

If you’re looking for someone to blame for disruptive ethereum (ETH) price corrections, you may be mistaken to look in the direction of miners, per the findings of a new report.

Researchers behind a new Coin Metrics study of Ethereum network miner activity have concluded that there was little evidence to collate miner activity with market corrections.

Although the study’s author, Senior R&D Analyst Karim Helmy, wrote that “miner holdings have also generally grown over time as a percentage of the [Ethereum] network’s total supply,” and conceded that “because they’re natural sellers of the asset they’re securing, miners are frequently blamed for market volatility,” he added that “correlation analysis appears to support the lack of a substantial relationship between changes in miner selling and market volatility.”

The author explained that the role of miners in price volatility is as minimal in ETH as is believed to be in bitcoin (BTC) prices. Last month, the same analyst explained that “on-exchange sell pressure” provided by BTC miners was likely “lower” than 5.5% of cumulative exchange inflow.

In the new report, Helmy, wrote,

“In Ethereum, as in Bitcoin, these accusations are baseless, since miners typically account for a small single-digit percentage of exchange inflows. While a significant amount of miner selling occurs over-the-counter (OTC) and therefore does not immediately reach exchanges, changes in miner activity are not nearly large enough to warrant concern.”

The author concluded that “mining is generally very opaque,” and claimed that this was “arguably even more true for ethereum than bitcoin.”

At the time of writing (17:49 UTC), ETH trades at USD 1,852 and is up by 2% in a day and 24% in a week. It rallied by 822% in a year.


Cryptocurrencies Could be the Future of the Gambling industry

The text below is an advertorial article that was not written by journalists. As the value of Bitcoin rises, more people are starting to look into its use. Big businesses are also starting to see the worth of cryptocurrencies as many of them are starting to allow coin transactions with their customers. Gambling businesses are no different. Many reputable and popular casino sites now accept Bitcoins and other cryptocurrencies like Litecoin, Ethereum, and Ripple too. Many online casinos accepting Bitcoin are also only dedicated to cryptocurrency users. This just shows how much online casino gaming and cryptocurrencies go well together. About Cryptocurrency Gambling The father of cryptocurrencies, Bitcoin, was created in January 2009 by a person or group of people under ...
Continue Reading

Bankera Introduces SEPA Instant Payments for Crypto Businesses

Disclaimer: The text below is a press release that was not written by Bankera, a fintech focused on serving blockchain businesses, recently announced support of the SEPA Instant payments. As of last month, both personal and business clients can enjoy instant transfers within more than 2,300 banks and financial institutions among the Single European Payment Area (SEPA) network at any time, 24/7, including holidays. The feature is vital for crypto businesses – instant bank transfers open up a way to keep up with an ever-changing crypto market. Firstly, it allows to process deposits and withdrawals within SEPA instantly – businesses offering this possibility are much more attractive to end-users. Secondly, it allows to manage fiat liquidity more efficiently as ...
Continue Reading

At Least 10 South Korean Crypto Exchanges’ ‘Survival Not Guaranteed’

Source: Adobe/Cavan More South Korean crypto exchanges are almost certain to fold in the months ahead, regulators and industry insiders have claimed, with just five months left before some of the toughest policing measures in the world come into force. Per Fn News, regulatory sources familiar with the matter claim that “at least 10 exchanges” are on the verge of closure and that their “survival cannot be guaranteed” after failing to meet real-name banking requirements. After the country’s first piece of crypto-specific legislation promulgated last month, exchanges now have a grace period of until September 24 to obtain banking contracts, put anti-money laundering (AML) protocols into place, gain information security management system (ISMS) management credentials and prepare documentation proving they have ...
Continue Reading

Kimchi Premium Vanishes, then Returns as Bank Issues Appear to Have Hit Upbit

Source: iStock/TwilightShow Widespread reports of a return of the kimchi premium appear to have been shrouded in confusion after bitcoin (BTC) prices plummeted briefly on a number of domestic exchanges before rising back above the USD 62,000 mark – while the market-leading Upbit platform suspended fiat withdrawals, possibly due to a banking issue. The platform announced that it was conducting an “urgent inspection of KRW deposits and withdrawals,” but did not specify what the issue was in an official notice. However, the Upbit operator Dumanu told the media outlet TechM that the issue was with a “fiat deposit and withdrawals service provider,” and “not with Upbit’s servers.” The problem, however, may lie with the exchange’s banking partner. As previously reported, Upbit has partnered with the neobank K-Bank, with whom the crypto exchange’s ...
Continue Reading