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What Is Minimum Collateralization Ratio (MCR)?
The minimum collateralization ratio is the minimum percentage of investor funds that must be held in cash or cash equivalents at any time. This is a regulatory requirement to protect the integrity of the market.
The minimum collateralization ratio requirement varies according to the type of fund.
The minimum debt-to-collateral ratio is important because it establishes a benchmark for lenders when deciding whether or not to make a loan. Minimum debt-to-collateral ratios are typically set by lenders within the industry and often vary from one lender to another, although some states have specific laws requiring certain standards. For example, Fannie Mae sets a minimum debt-to-collateral ratio at 36% while Freddie Mac sets its minimum at 40%. The Federal Housing Finance Agency also requires that federally backed mortgages meet certain standards but its ratios differ slightly from those of Fannie Mae and Freddie Mac.
Collateralization Ratio
Collateralization ratio or collateral coverage ratio is one of the most important metrics used by lenders to determine how much money they should lend to a borrower. From it, they can calculate the loan-to-value ratio which is a measure of risk.
The collateralization ratio is a measure of the relative size of a loan in relation to the value of its security, i.e. collateral that backs the loan. The higher this proportion the less risky the transaction for the lender since he is protected from default by having possession of assets in case the borrower defaults.
The collateralization ratio is also known as Loan-to-Collateral Ratio (LCR) or Collateral Coverage Ratio (CCR).
Minimum Debt to Collateral Ratio = Good Borrowers
The debt to collateral ratio could be as high as 3:1 depending on your credit score and other factors. A good borrower should have a ratio of 2:1 or less. For example, if you have $10,000 in outstanding loans and only $5,000 in property value, then your minimum debt to collateral ratio would be 2:1.
There is no universal rule for what the minimum ratio should be. It varies depending on the type of business, the industry, and the asset being used as collateral. Of course, the lower the debt to asset ratio, the better. The best-case scenario is to have a debt to collateral ratio of 1:1.
#FET made a breakout over the major resistance area, now turned it into major support now. A pullback is expected for potential buy setups and anticipate the move towards the Resistance area of $0.931 - $0.95., Incase price directly move towards the resistance then we will have to wait for the next breakout.
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Here's the Analysis of #VET :
#VET is been heavily pump 2x within the few days and on a retest back t the support zone of $0.043 - $0.044. Currently, price is middle of nowhere, and have to wait for the price to either break below of the zone or made a strong rejection from the support. Setup will be taken into account after the break of structure in LTF(Lower Timeframe).
We can see that the total volume of #LTH Supply held in loss is currently 777.8K #BTC, and is trending towards the zero bound as prices rise. Just 6.5% of the aggregate #LTH supply is therefore held in loss.
Previous instances where the LTH cohort held a similar coin volume in loss corresponds with early bull market conditions (with 2019 as an arguable outlier).
#BITCOIN DAILY TF UPDATE :
#BITCOIN made its way of the breakout and straightaway moved into the Strong Resistance Zone of $52,650 - $52,450. Price discovered a new range to moving within and a pullback is expected with this range, at some sort of support. More things will be cleared out on Weekly Closings, so have an eye on it.
What is MetaMask?
MetaMask is a cryptocurrency wallet that operates as a plug-in for standard internet browsers such as Chrome and Firefox.
It allows users to manage, transfer and receive Ethereum and ERC-20 tokens — without the need to download the whole blockchain in the process.
As well as allowing digital coins to be stored, MetaMask also enables users to interact with smart contracts and decentralized applications without using a full Ethereum node.
The cryptocurrency wallet was created in 2016 by ConsenSys, a Brooklyn-based blockchain software company focusing on Ethereum-related tools and infrastructure.
Hot wallets — or web-based wallets — are often considered insecure, with phishing attacks being the main risk for users. These scams are used by hackers to steal sensitive information such as passwords and usernames.
The software uses HD backup settings and relies on a team of developers that regularly update its open source code.
A HD wallet, or hierarchical deterministic wallet, is a next-generation digital wallet that automatically generates a hierarchical tree-like structure of private and/or public addresses. This takes the issue away from the user, as otherwise the key would have to be generated externally.
One of MetaMask’s key features is the use of a 12-word phrase that has to be kept safe or to remembered by the user, as it will be required in the event of forgetting a password.
Due to its success in the cryptocurrency community, the lack of an official mobile website for several years led to malicious actors to develop phishing software that posed as MetaMask’s mobile app.
#TOTAL2 (Altcoin MarketCap) Update :
#TOTAL2 made with way after the candle closure. Index goes as predicted, it gave a breakout of the resistance, ended up made a alts rally. All Strcutural Resistance broken and next major resistance is right above coming $940B - $956B. Still, there's a room to play but its better to book profits in running trades as #BTC is at crucial level.
Here's the Analysis of #MINA :
#MINA is been already reacted from the Weekly Resistance Zone of $1.63 - $1.67 and currently, price rejected from the resistance area around $1.52 - $1.55. With that upmove, price respecting the trendline. Right now, its better to wait for the price to break the resistance, sells are low probable as of now.
Leading up to the approval of spot #ETFs in January, speculation surged, leading Long-Term Holders (#LTH) to either cash out for profit or reallocate their holdings into new #ETF products. This resulted in a significant decrease in LTH supply balance by approximately 299.5K #BTC since November, from a peak of 14.996M BTC. Notably, analysis of #GBTC flows, with around 661k BTC inflow and 151.5K #BTC outflows in 2021, suggests that remaining #LTH supply, totaling 148K #BTC, is being spent by investors. This trend aligns with previous research indicating LTHs begin distributing their holdings as the market approaches all-time high prices.
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#BTC made its way to the upside as mentioned, as there's were no signs of bearishness. Now, Price tapped into a key level and expected a retracement back to some sort of structural support or a strong support area. Meanwhile, hodl on the running trade and wait for new entries.
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What Is Marlowe?
Marlowe is a programming language for financial contracts, designed to make it easy for non-programmers to write financial contracts, such as derivatives, loans, and other agreements. It also makes it easier for programmers to formally verify these contracts are correct.
The project was initiated by Input-Output Hong Kong (IOHK), the blockchain research and development company behind Cardano.
Marlowe is part of IOHK's efforts to bring formal methods to smart contract programming, but it differs from previous approaches by being designed specifically for use in financial applications. To achieve this, its designers studied finance theory, particularly the work of Nobel Prize-winning economist, Kenneth Arrow, who pioneered much of the mathematical thinking behind modern finance. This resulted in a set of built-in abstractions based on real-world financial concepts, such as time and money, rather than more generic concepts like lists, functions, and variables found in other programming languages.
Marlowe is based on a theory of financial contracts that have been formalized in the Isabelle theorem prover. This gives it several unique features not found in other contract languages:
-> The ability to reason about the expected value of contracts.
-> The ability to formally verify properties of contracts.
In addition, Marlowe contracts can be executed on the Cardano blockchain. Users can try it live on Playground, which allows users to model and execute contracts without any knowledge of blockchain technology or smart contracts.
Marlowe was designed to be a simple and powerful tool for financial modeling. Its syntax has been kept as simple as possible so that both programmers and non-programmers can use it.
Marlowe can be used for a number of things, but it is particularly suited to the following:
-> Building interactive financial contracts
-> Defining games and protocols for decision-making processes
-> Simulating business processes, such as those involving finance or insurance
-> Modeling financial markets
-> Exploring ideas in game theory
It works in a sandbox environment, allowing all kinds of developers to write smart contracts on Cardano.
Currently, Marlowe will run on Cardano, but it’s not tied to Cardano only. In the future, it can be used to write smart contracts on other blockchains as well.
#BTC.D pushed higher with the market upmove, and few alts played well with that. Market started correcting a bit and still Dominance have room to push higher. So, keep the stop tight as both side probability to play well. A strong correction will come from the resistance at 54.5% - 54.6%.
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Here's the Analysis of #API3 :
#API3 is been on a pretty good series of Higher High and Higher Lows moving with the trend channel pattern. Price flipped above the Major Resistance area turning it into the major support zone around $3.29 - $3.39. A retest is expected back to the level of major support where buys setup can be taken into account. Short will be risky at this point unless price flips below the major level and shift the market structure bearish.
We can use Short-Term Holder MVRV to monitor the unrealized profit or loss of new market participants. Comparing the STH cost-basis to the spot price reveals the pressure they face to sell at a loss or take profit.
#MVRV is already above the 1.0 Mark, which shows strong bullishness in the market and #MVRV tested the Moving Average as Resistance already, and more momentum yet to come if it crosses the 155D Moving Average with MVRV
#BTC started facing resistance near $50,000 physiological level and made a ting range over there. Price is expected a retest back into some sort of support zone $48,500 and lower. Looking into the Daily TF, price already at a resistance point, so wait for the healthy correction.
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For the Short-Term Holder (STH) cohort, the 'sell-the-news' correction after the ETFs launched has resulted in a healthy reset of several metrics.
First, we can see that the percent of STH supply in profit fell from its peak at ~100%, to retest its all-time-average of 57.5%. This means that almost half of all STH supply experienced prices falling below their acquisition price, making for a healthy correction. Historically, this tends to correlate with local lows being established when the market is within a macro scale uptrend.
#BITCOIN WEEKLY TF UPDATE :
#BITCOIN made its Weekly closing above and made all its way towards the Resistance area around $52,000. Now, price is kinda rejecting it but still overall a bullish structure. Retracement might come within this zone, but a new weekly candle closing is required to close above the $52,000, which will open the room for $60,000 level.
What Is a Metatransaction?
A metatransaction is like having a helper who carries out a task for you. In this case, it's executing a transaction that someone else has signed on your behalf. Instead of you needing to send this transaction to the public blockchain, the helper does it for you. So, metatransactions simplify things and save you the cost of using gas on public blockchains. All you have to do is sign the transaction with a click.
Usually, when you make a transaction on a public ledger, you sign it yourself, and it goes into a waiting area called the mempool. Miners then include your signed transaction in the next block. During this process, you're the one paying the gas fees, which can be a hassle. Plus, you usually have to pay these fees using the native token of the blockchain, even if you're using a decentralized app (dApp) with its own token.
Metatransactions change this by allowing dApps to handle the gas fees and token payments for you. Instead of you paying the fees, the dApp or another third party does it for you. For instance, a dApp developer might cover the gas fees to attract more users. They can also decide whether users need to use their own token to pay for gas or if they'll cover the costs entirely. In either case, they use metatransactions to manage the transaction on the blockchain and pay the necessary fees. All you need to do is sign the transaction, and you might not have to pay any gas fees at all.
The main advantage of metatransactions is that they make using blockchain applications much easier for users. They shift the burden of dealing with gas fees and transactions from the users to the developers or infrastructure behind the scenes.
#MINA gave a break below the zone uptrend line and reached the support zone (Grey Box) around $1.32 - $1.35. Now, we can have an eye on the Daily Closings, either it rejects or break below of the zone. Price is very corrective to move lower, so expecting a bounce from here.
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Here's the Analysis of #FET :
#FET is been moving back an forth between the major resistance and major support zone of $0.71 - $0.75 and $0.56 - $0.60. Its a pretty good range for 15% - 20%, so you can have a range trade. Best setups will come after the breakout, either side and the most probable one will the resistance break as market is bullish.
As the market rises, most #BTC is now profitable, with only 13% acquired above $48k and held at a loss. The chart shows that 87% were acquired below $48k, with a large Short-Term Holder cluster at $40k-$45k. Long-Term Holders dominate the 13% in loss, reflecting their activity during 2021's 141 trading days.
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#BTC kept on rejecting from the $52,000 and stared ranging back and forth. Daily TF, kept getting rejected and its a thirds attempt to break through. H4 TF, kept gone making the stop hunt to the both side, so a clear direction will be after a breakout of the zone, so have an eye on it,
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What Is a Mercenary Capital?
Mercenary capital refers to capital provided by investors seeking short-term gains through opportunistic participation in incentive programs offered by platforms. Typically, these investors withdraw their capital once they locate more lucrative programs or when rewards diminish below their expectations.
To attract smaller investors, many Automated Market Maker (AMM) platforms run growth hacking initiatives like liquidity mining and yield farming. These programs offer additional rewards, often in the form of governance or native tokens, to liquidity providers (LPs) who stake or lock in their LP tokens. While historically effective in attracting investors, these programs also expose platforms to mercenary capital risks, especially if they offer excessive short-term rewards that favor opportunists over community members and long-term investors.
Factors like limited time periods or temporary bonuses in these programs can exacerbate the negative impact of mercenary capital. When the program concludes, the withdrawal of capital by mercenary providers leads to increased short-term selling pressure, causing significant price drops in reward tokens and potentially triggering panic selling by other investors.
Although this challenge is inevitable for platforms employing growth hacking programs, it can hinder long-term platform development. Mitigating mercenary capital requires a combination of sound tokenomics, quality products, and robust community trust, along with potential measures like longer lock-in staking periods for enhanced rewards.
#LDO continues it ways and made a high of $3.3 which is 24.6% in profits. Now the Head and Shoulder Patterns becomes invalid and can be expected towards the next Resistance around $3.5 to $3.8 and continuation buys can come from $3.2 and lower.
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Here's the Analysis of #LTC :
#LTC is been ranging between the Major Level of Support around $62.1 - $63.3 and Resistance Zone of $75.5 - $77.3. Also, price is hodling above the trendline and moving with it. Well, its a good enough tradable range, so you can got for it. Strong Buys or Sells will come from the Breakout of the zone either side.
During strong uptrends there are relatively few coins in loss. However this changes rapidly during corrections, as recent buyers panic and spend previously profitable coins in loss. The Profit/Loss Ratio is experiencing rapid acceleration in either direction. This aides in identification of trend inflection points.
Note : As #BTC breaks above the $50,000 mark, so then numbers are more bullish than its shown here.
#BTC made its break of the range and made it retest back to the mentioned area at minor support around $48,500. Price dropped due to #CPI data release, now it made a bounce from the trendline line still maintaining the Bullish Structure. Expected a new high to print as no clear indication for a down-move.
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What Is a Market Taker?
A market taker is a participant in the market who executes orders by taking liquidity from the order book. Market takers place market orders or marketable limit orders that are executed immediately at the best available prices on the order book. They accept the prices offered by market makers or other participants in the market. Market takers pay the spread when they buy or sell assets, and they usually trade with less frequent or larger orders than market makers.
Suppose you're a market taker who wants to buy Bitcoin on an exchange. Here's how you would interact with the market:
1. Placing Orders: Unlike market makers who provide liquidity by placing orders on the order book, market takers execute orders by taking liquidity from the order book. You place market orders or marketable limit orders, which are orders that are immediately executed at the best available prices on the order book.
2. Immediate Execution: When you place a market order or marketable limit order, it's executed immediately at the prevailing market prices. For example, if the best ask price for Bitcoin is $40,050 and you place a market buy order, your order will be filled at $40,050 or a slightly higher price if there's insufficient liquidity at that level.
3. Paying the Spread: As a market taker, you pay the spread—the difference between the bid and ask prices. When you buy Bitcoin, you pay the ask price, and when you sell Bitcoin, you receive the bid price. The spread represents the compensation for the market maker's role in providing liquidity to the market.
4. Trading Strategy: Market takers typically have specific trading strategies and objectives. They may trade with larger order sizes or execute trades more frequently than market makers. Market takers aim to enter or exit positions quickly at the best available prices without waiting for limit orders to be filled.
5. Risk Management: Market takers also need to manage their risk exposure when trading. They may use stop-loss orders or other risk management techniques to limit potential losses if the market moves against their position. Additionally, they may monitor market conditions closely to identify opportunities for profitable trades.
#RNDR made a break down off the flag, and made a quick move up with the market. Price entered into Strong Resistance Area, and now it matter of point to see, if it breaks the zone or reject it. Look for Daily candle closure, so get into the proper setup.
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Here's the Analysis of #GRT :
#GRT is started pushing from the structural support zone of $0.164 - $0.165. Currently, price is approaching towards the Strong Resistance Zone of $0.174 - $0.177. Its a pretty tight range, so expect a break first before entering any setup. Market is bullish so buy will playout best in the scenario .