The round was co-led by Polychain Capital and NGC Ventures, with participation from Divergence Digital Currency and Bitcoin Cash advocate and …
CoinFLEX, a Seychelles-based physically delivered crypto futures exchange, secured over $10m in funding.
The round was co-led by Polychain Capital and NGC Ventures, with participation from Divergence Digital Currency and Bitcoin Cash advocate and angel investor Roger Ver.
Led by Mark Lamb, CEO, CoinFLEX is a physically delivered crypto futures exchange developed to solve the issues with cash-settled crypto futures contracts and provide high leverage ways to hedge crypto exposure with zero index or settlement manipulation risk. The company is focused on the Asian retail trader market as well as the market for commercial hedging, including mining firms, OTC trading desks and global proprietary trading firms.
CoinFLEX has a trading volume of over $150,000,000 USD.
In order to support this growth and further accelerate liquidity, the company has also announced the launch of its Market Making Program, an initiative aimed at professional proprietary trading firms, hedge funds and institutions within the cryptocurrency industry, to participate in the platform while meeting predetermined monthly objectives.
What does it mean when you see the stock of Target (TGT) up 19% or a Lowe’s (LOW) up 10%? How can the stock of Nvidia (NVDA) be up another …
What does it mean when you see the stock of Target (TGT) up 19% or a Lowe’s (LOW) up 10%? How can the stock of Nvidia (NVDA) be up another five points after moving up relentlessly last week? Does it signal that there are major changes afoot? That there’s a sudden reorganization or a big positive in the macro world that’s descending right to the micro, or the actual stock?
No, not at all. These moves, while they would have been pronounced no matter what because of a series of upside earnings surprises and better than expected forecasts, are really the results of short squeezes and for those of you not aware of this world, it’s time you learned lest you think that there’s something magical going on.
First, understand that at all times there are hedge funds making gigantic bets on individual companies. They do so because they are paid to make money in good or bad tapes. They can’t just show a small beat of the S&P 500 because they often get paid as much as 2% for giving it to them and 20% of your gains. Two and 20 is the rule.
What many a hedge fund does these days is try to merge the top down with the bottoms up and throw in some reporting, largely anecdotal, and some supposition. Plus you always are supposed to have the wind at your back: in this market many hedge funds believe we are going to have a recession so retail is particularly vulnerable.
So,, let’s take the cases of Lowe’s and Home Depot (HD) , its bitter opponent. There were hedge fund managers out there who decided to take a paired position: long Home Depot short Lowe’s. It made sense. Just like if you are at the track, you look at the last performance and for Lowe’s is was wanting. If you were on the very good call yesterday from Home Depot no one could fault you for suspecting that Home Depot took share from Lowe’s.
So it made plenty of sense. When the news came out this morning about the strength of Lowe’s – across ever aisle and in every geography – the trade was blown. When you are a trader you know that discipline trumps conviction. When you have a busted trade you have to go in and cover at any price. That’s why you could see the stock up $10 in the pre-market. That’s just disciplined short-sellers covering.
Target has a different set of circumstances. There was a two-fold case against Target: 1, That it can’t compete with Amazon (AMZN) and Walmart (WMT) because it doesn’t have the scale, and 2., It would be hurt by the tariffs – be tarrafied – because it has so much imported from China materials.
As a denizen of good Targets, I had a suspicion that it would be a terrific quarter which is why I included it in WATCH – Walmart, Amazon, Target, Costco (COST) and Home Depot. The new stores and the small formats are fantastic, as is the Shipt same day delivery system. Those were enough to blow away those concerns were way wrong. Target’s stock was a totally wayward short that was dead on arrival, so the covering began way before the open.
Oh, and the macro people look pretty foolish now because the wind seems to be of the tail not a head variety.
Finally, Nvidia. Here’s a company that had a series of subpar quarters with products that were supposed to be either too early for their time – Ray tracing – or in the thick of the data center which is regarded as weakening. But when the company reported you heard those concerns ameliorated. Moreover, its artificial intelligence and inference chips are the hottest out there. A real good short at $280 becomes a nightmare at $140, $160 and now $170, and it’s not done going higher.
Remember, shorts are great fuel for exaggerated moves. I don’t like to bet against shorts – that’s a fool’s game as they often know more than you. But when a short is crowded and wrong you can make the biggest money possible, save for a takeover, and that’s what you are getting with the stocks of Lowe’s, Target and Nvidia.
In a blogpost on Tuesday, the co-founder of quantitative investing hedge fund AQR Capital Management, assessed the attractiveness of the U.S. …
Billionaire hedge fund manager Clifford Asness added his voice to the crowd of investors balking at the depths U.S. Treasury yields have now plumbed.
In a blogpost on Tuesday, the co-founder of quantitative investing hedge fund AQR Capital Management, assessed the attractiveness of the U.S. 10-year Treasury note by looking at its inflation-adjusted yield and the yield curve’s slope as measured by the yield difference between the 3-month bill and the 10-year note.
Asness found that when he averaged the two measures, both used to gauge the valuations of the long-term bond, this composite gauge indicated the 10-year yield was at its most expensive level since some months in the late 1970s.
“The bottom line is, as measured by real bond yield, U.S. Treasury bonds are really frickin’ expensive,” said Asness. “But, measured by the average of these two simple variables, they are 60+ years just about record-low frickin’ expensive,”
The 10-year Treasury note yield TMUBMUSD10Y, -1.26% traded at 1.688% on Friday, around its lowest levels since October 2016. The benchmark bond yield has given up around a single percentage point since the start of the year.
But the hedge fund manager doesn’t see the current level of bonds yields as an excuse to time the market and short Treasurys, but rather to illustrate the simply eye-watering prices U.S. government debt is now fetching.
“When something as important as the U.S. bond yield hits historical extremes, it’s worth at least a discussion, though certainly not an automatic huge short,” said Asness.
He points out Japanese bonds were expensive by several metrics for a long time. Yet shorting Japanese government debt in expectation that their ultra-low yields were unlikely to last has ended up as a “widow-maker” trade for hedge funds and other speculators willing to try their luck.
In addition, U.S. Treasury yields are “high versus some major parts of the world attempting to discover how negative a government guaranteed bond can yield before savers build private fortresses to store cash,” said Asness.
Sunny Oh is a MarketWatch fixed-income reporter based in New York.
As currencies lose their footing, Pal, who publishes The Global Macro … “And Bitcoin is doing its job of suggesting an alternative system is gaining in …
In a thread entitled “A Currency Crisis?”, investment strategist Raoul Pal maps out how tumbling currencies are upending the status quo and triggering a new global financial landscape riddled with deterioration. According to Pal, US dollar strength is pushing currencies to “the cliff of death”.
As currencies lose their footing, Pal, who publishes The Global Macro Investor for leading hedge funds, pension funds and sovereign wealth funds, says that Bitcoin is behaving as designed: rising as an alternative system.
“When the long-term charts all start pointing to a single event risk, I pay attention. When those charts are at the key level, I focus. And when they break, it is time for action. Something really big is going on.
We are at the most important juncture in FX markets in my entire 30-year career. The dollar appears at risk of an uncontrolled rise. Let me show you…
The Fed Broad Trade Weighted Dollar Index is incredibly close to breaking the ENORMOUS cup and handle pattern at 130. Barely a half a percent away.”
“And this translates into the largest chart pattern in the history of FX – The ADXY head and shoulders top. A pattern so big, I can’t quite get my head around the outcome…a fall of 20% or more across all Asian major currencies…and we are right on the cliff of death.”
“We are also at the key juncture on the JP Morgan Emerging Markets Currency Index… new lows await, any day now.”
“And one currency, after another, is approaching, and then falling off, the cliff of death. The Aussie broke a while ago and has been tumbling ever since. The flightless Kiwi took its first step off the cliff last night. The Korean Wan…Yikes! This is one of the most crucial levels in its history. These big wedge patterns tend to resolve in explosive moves to new all-time highs (for the dollar vs KRW). Mind bending.”
“The Canadian dollar looks like it is about to break the wedge for a rapid move. The CAD is going to very quickly get a lot weaker.
The pound is drinking at the last chance saloon… it looks like it is going to parity. The euro has a few percent to go but it’s shuffling towards the cliff edge.
And the big disturbance in the Matrix is the CNY, which conceivably could go to new all-time lows (highs on chart) versus the dollar. It’s not my forecast but that chart suggests a higher probability than anyone suggests, even if the odds are still low. It is broken.”
“And this currency crisis of dollar strength is causing an enormous deflationary wave globally. The CRB is literally the second worst chart in the world, after the EU banks. And we are right on the fucking cliff of death. Right there. Today. I think oil breaks lower, today.
Gold is rightly doing its job, sniffing out a big problem and is exploding higher, outperforming even the super strong dollar as gold begins to price in an end game of an eventual massive readjustment of the dollar (in 12 months? 18 months?)”
“And Bitcoin is doing its job of suggesting an alternative system is gaining in probability (it trades like call option on a new system, in my mind). The price moves are so enormous (and thus the increase in probabilities are so fast) that you have to use log charts.”
“And the 10 Yr US bond suggests that bond yields are going to zero, as the deflationary wave spreads like wildfire.
And short term rates (2’s) go to -2% or more (that’s how you steepen the curve…yikes!
And that is how you totally fuck the banking system. The EU banks are right on the cliff of death.
And the Japanese banks are right on the cliff of death too.
And that would be the end game for the pension system and a huge loss of wealth for baby boomer retirees and the start of the doom loop of BBB downgrades and a potential freezing of the corporate credit markets.
You get the picture. Sadly, we are at one of the biggest junctures for markets in history. You may disagree with my assessment of the odds. It doesn’t matter. But you simply cannot ignore the risk. Bonds. Dollars. Bitcoin and Gold. Thanks for paying attention.”
Pal adds that oil “looks terrible”.
“And there goes oil, right on time, tumbling off its cliff of death and into the death flush (queue music) to $40 and then $20, in my view.”
“Buying the U.S. dollar, bonds, gold and bitcoin as an alternative asset, are good bets if the environment worsens.”
The investment strategist formerly managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world, and also ran the hedge fund sales business in equities and equity derivatives in Europe for Goldman Sachs.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
For instance, the person could get exposure to an Initial Coin Offering (ICO) without needing to be exposed to the general industry. This way, the …
FTX, a crypto derivatives platform, has started to offer a very curious new product recently. The company has created a speculative index fund called SHIT-PERP: Shitcoin Index Perpetual Futures. That’s right, people, futures for the so-called shitcoins.
The idea is to index a total of 58 altcoins which are pretty badly placed in the market. It has a lot of projects which are not very well-known and some projects which are more famous such as Grin, Waves and Nano. Now, SHIT-PERP will join MID-PERP and ALT-PERP, two other low-cap indexes which are present in the site.
FTX is actually a somewhat new exchange. It was originally incubated during the Alameda Research program and it launched this year. The platform provides an over the counter (OTC) desk, indexes, futures and spot trading. Now, the platform is also offering options for traders who are interested in margin trading and spot trading as well.
According to the company, its connection with Alameda Research also helps it to have more liquidity than other companies in the market. Alameda, which was created in 2017, currently managed over $100 million USD worth of assets.
The team also affirmed that it was FTX that helped the company to get some important employees on board, such as people who worked on Google, Facebook, Jane Street, Susquehanna and Optiver.
Interacting With The Market In New Ways
Darren Wong, the CMO of FTX, was recently interviewed by Coindesk. He affirmed that the index of bad coins is important because it can give people new ways to interact with the market.
According to Wong, there are at least three examples of how someone could use the shitcoin index in order to make profits. For instance, the person could get exposure to an Initial Coin Offering (ICO) without needing to be exposed to the general industry. This way, the person could short the market and hedge bets while limiting the downsides.
Another way is to short the altcoin market in general since there are not a lot of ways to do that. Finally, the third way is to buy from the three indexes in case you think that BTC dominance is too high and will go down soon, this way, you profit when dominance goes down.