Cryptocurrency: Are amateur traders compromising the markets?

Hedge funds have lost billions of dollars to amateur investors at the start of the year.

However, inexperienced hobbyist investors have also lost a large chunk of their savings in this process.

Constant misinformation and manipulation could compromise the integrity of markets, including the emerging cryptocurrency asset class.

The Trust Project is an international consortium of news organizations based on transparency standards.

With the GameStop scandal over, amateur investors should now be thinking about a new approach.

This turbulent start to the year is already proof of an upsurge in amateur investors seeking to earn money on stocks and various other assets such as cryptocurrency. Although this led to a transfer of wealth , many were also victims of this process.

With the democratization of financial market information and the power of platforms like Bitcoin Up and Twitter, every voice now has a platform. However, these voices can be malicious or motivated by questionable intentions – all while being disguised and acting harmlessly. Most of the time, authors have no regard for the social status of their targets.

The Virgin Market Maker vs. The Chad “The Kid”: Reddit


Amateur investors with little exposure to financial markets are often the victims of such misinformation. Many eventually lose their savings and confidence in the markets, never coming back to try again. For some evidence of how small investors are being manipulated, take a look at the recent manipulation involving GameStop .

A short position involves investors betting against a stock by selling it preemptively and later buying it at a lower price. If the price increases, however, the investor is forced to buy at the price dictated by the market. Additionally, if there is no supply of stocks in that market, demand can cause prices to skyrocket. This is known as a short squeeze, or “short squeeze” in English.

The manipulation of retail traders in the GameStop affair

In early January 2020, a small group of users in Reddit’s WallStreetBets (WSB) community discovered that GameStop stocks had fallen victim to short positions. The video game company has seen its prospects wane in the face of the pandemic and changing consumer behavior. This motivated several hedge funds and institutional investors to take short positions on GameStop.

Historically, the short positions of these companies have been a risky game, but generally profitable. In this case, 140% of the shares of the company had been sold short. This figure meant that GameStop had become Wall Street’s best-selling short-selling stock.

Reddit’s WallStreetBets community was quick to point out that the situation was ideal for taking action. In the first few weeks of 2021, users of the discussion board began purchasing all of the available shares of GameStop. As the redemption date for short positions approached, GameStop’s price began to climb.

Chainlink breaks historical price record and surpasses Litecoin

Does it go higher?

The Cryptomoeda Chainlink (LINK) broke a new price record and started trading above 25 dollars (R$ 130), which made the digital currency surpass Litecoin in terms of market capitalization and became the seventh largest digital asset in the world.

Digital currency has had one of the best performances of 2021, surpassing many of its competitors. With the new price, cryptomoeda has gone into price discovery. One of the reasons for the recent rise is that Grayscale, the world’s largest asset management company, plans to add LINK to its portfolio.

Cryptomoeda most valued in 2021
100% valuation in 2021

In the last 7 days the cryptomoeda has appreciated by about 17%, investors will now have to wait and see if the popular altcoin has peaked or if the momentum can lead LINK to even higher prices.

Last week the price of LINK rose by about 20%. The currency now needs the price of the Bitcoin to remain stable for its next big increase to occur in the coming days.

If the Bitcoin goes up, of course, Chainlink can benefit as well, as do most cryptominoes of course.

With a market capitalization now around $10 billion, LINK’s accumulated earnings for the year are over 100%.

Record Price ChainLink
ChainLink record price
Institutional interest
The Chainlink network seems to be attracting institutional interest. The price rise is not just a wave, but supported by solid fundamentals and on-chain metrics.

Big technology giants like Google have already started using the Chainlink oracles to move data to different blockchain networks.

In addition, as the DeFi market continues to expand, Chainlink is seeing great demand among the different decentralized applications.

Applications and the use of connections between blockchains are expected to grow greatly in the future. It is possible that cryptomoeda will gain more strength, as we explain the platform since it was launched in 2019 in this article.

Flare Networks plans new airdrop for XRP Hodler

Ripple airdrop part 2: Flare Networks plans new airdrop for XRP Hodler

In the context of the SEC’s investigations, the Ripple price has come under heavy pressure in the past week. While XRP recorded a price high of over $0.70 in the context of the Bitcoin Bank planned Ripple airdrop by Flare Networks, the price of 1 XRP is currently trading at around $0.26, well below last year’s high.

A new Ripple airdrop, which is once again connected to Flare Networks, may therefore be a small consolation for all XRP holders. We will show which token it is in this article.

Ripple Airdrop Part 2: Flare Networks

As a reminder, in December last year, Ripple-backed startup Flare Networks conducted a snapshot to create an assessment basis for the upcoming Spark Token (FLR) airdrop.

Those in possession of XRP at the time of the snapshot will now receive 1.0073 Spark Tokens for each XRP. Put another way: The ratio for the airdrop is approximately 1:1.

In the first half of this year, more than 45 billion FLR, 45,827,728,412 to be exact, will thus be distributed among XRP holders. The aim of the new project and token is to transfer existing smart contract functions that we know from the Ethereum ecosystem, for example, to the XRP ledger (XRPL)

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Flare Finance plans DFLR token airdrop

After the previous airdrop, another token distribution is now already planned. Flare Finance is a concept that builds on the Flare Blockchain and aims to enable swaps, stablecoins, yield farming, yield mining, insurance and asset-backed loans.

In this context, the airdrop of the DAOFlare Token (DFLR) is planned. Specifically, all users who receive the Spark Token, i.e. owners of XRP, will also be entitled to receive the new token. The DFLR token, in turn, can then be exchanged for YieldFlare, the official token of Flare Finance.

This is what it says on Twitter:

One month after the mainnet launch of Flare Network, Flare Finance will conduct a snapshot for all FLR token holders. 7-10 days after the snapshot, you will be the proud owner of FLR and DFLR tokens. To interact with the Flare Finance ecosystem, you can swap your DFLR to YFLR tokens. Once you've swapped this, endless potential awaits.

The official launch is scheduled for the second quarter.

Is the corporate bitcoin standard coming?

What Jack Dorsey touches turns to gold. In this case, however, the digital counterpart to the precious metal is meant. Because as we have already reported , buys Square (ISIN US8522341036), the listed company, the Dorsey as CEO protrudes, 4709 Bitcoin (BTC) worth 50 million US dollars (USD). The company, which is capitalized with USD 81 billion, is following the example of MicroStrategy.

MicroStrategy had already taken the plunge at the end of September and bought an astronomical 38,250 BTC with a total value of about 425 million USD

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While the move from Square is still an order of magnitude away, it is still bullish. After all, the San Francisco-based payment company now makes a large part of its profits from Bitcoin trading . Customers have been able to exchange their fiat money (USD) for BTC on the affiliated cash app for some time.

Jack Dorsey may be a bitcoin enthusiast, but he doesn’t seem to be particularly interested in altcoins.

More and more whales

It sounds likely that more and more companies will follow the examples of Square and MicroStrategy in the future. The narrative of the depreciating cash reserves provides the necessary arguments. What has been missing so far, however, has been an institutional infrastructure that enables the purchase and storage of large quantities of digital assets at all.

A press releaseAccording to, however, this concern is a thing of the past. The company provides potential imitators with the appropriate know-how in detail.

A look at bitcointreasuries.org shows how scarce the BTC supply really is. It lists crypto big players such as MicroStrategy, Square or Galaxy Digital. MicroStrategy alone holds the entire Bitcoin supply growth from over 42 days with 38,250 BTC. Because currently miners only generate 900 BTC per day.

In addition, the stock markets also favorably evaluate Bitcoin positions. Both Square (190 percent year-to-date growth) and MicroStrategy (13 percent year-to-date) have beaten the S&P 500 by far.

The European Central Bank’s Twitter presence offers Bitcoiners a platform

The ECB goes to great lengths to explain its unconventional monetary policy and even involves citizens in the dialogue. She is more and more willing to talk on Twitter.

However, with moderate success. The Twitter posts by the top currency watchdogs in the euro area include above all comments that propagate the spread of the No. 1 crypto currency.