🗞 Daily Crypto News, July, 29th 💰

Bulls Control Bitcoin Price Even as Funding Rates Reach Record Highs;
Vitalik Says DeFi Users Are ‘Underestimating Smart Contract Risk’;
Messari: DeFi Can Continue to Grow as ‘Useless’ Top 30 Coins Wither;
What Crypto Lender Celsius Isn’t Telling Its Depositors;
HEX Plasters UK With Ads Boasting of 11,500% Returns;
🗞 Daily Crypto Calendar, July, 29th 💰

Welcome to the Daily Crypto News: A complete Press Review, Coin Calendar and Trading Analysis. Enjoy!

🗞 Bulls Control Bitcoin Price Even as Funding Rates Reach Record Highs

Bitcoin (BTC) price finally woke up and surged to a new 2020 high but as the markets surged past $10,000, some traders seem to have opened excessively leveraged long positions.

This effect became more noticeable as the funding rate for perpetual contracts reached the second-highest level this year at 12.4% per month.

BitMEX funding rate rises to 12-month high

Currently BitMEX ranks among the top 3 derivatives exchanges in terms of measured open interest and the exchange also provides clear reporting on its funding rate.

Perpetual contracts, also known as inverse swaps, require 8-hour adjustments through a funding rate and this will vary depending on the number of active longs versus shorts leverage.

Contango is approaching dangerous levels

These contracts usually trade at a slight premium, indicating sellers are requesting more money to withhold settlement longer.

🗞 Vitalik Says DeFi Users Are ‘Underestimating Smart Contract Risk’

Ethereum co-founder Vitalik Buterin has warned of the dangers of ‘smart contract risk’ in DeFi protocols in an interview to mark Ethereum's fifth birthday.

Buterin also warned users not to ‘risk their life savings’ in DefI in his appearance on Laura Shin’s Unchained Podcast.

Smart contract risk

When asked about his main criticism and concerns about DeFi, Buterin responded;

“I think one big one is just that a lot of people are underestimating smart contract risk.”

“DeFi is still fine, but don't act like it's a place where you should advocate for a lot of regular people to put their life savings into.”

🗞 Messari: DeFi Can Continue to Grow as ‘Useless’ Top 30 Coins Wither

With the value of funds locked in DeFi almost quadrupling in less than two months, the community is debating whether DeFi is in a bubble.

Data published by crypto market analytics firm Messari on July 29 indicates that the collective capitalization of the decentralized finance (DeFi) sector is equal to only 1.5% of the entire crypto capitalization.

According to Messari, the collective capitalization of every DeFi project put together is roughly $4.12 billion — less than that of the fifth-ranked crypto asset by market cap, Bitcoin Cash (BCH).

“DeFi doesn’t need new money flowing into crypto to continue its rise. All it needs is a reallocation of capital.”

🗞 What Crypto Lender Celsius Isn’t Telling Its Depositors

Standing in a spacious, white living room and sporting a black T-shirt, Alex Mashinsky, CEO and co-founder of cryptocurrency lender Celsius Network, urged his customers to ignore the naysayers.

“Don’t listen to the FUD-ers, look at the facts,” Mashinsky said on the YouTube livestream on July 17, using crypto slang for “fear, uncertainty and doubt.” A few minutes later, he reassured the audience of “Celsians,” as the platform’s users are nicknamed, that the company is prudently deploying their crypto deposits.

Like a bank, Celsius borrows from one set of clients, lends to other customers and pockets the difference in interest. Unlike a bank, it only borrows and mainly lends cryptocurrency, and it does not have government deposit insurance. The company claims to have gathered a total of more than $1 billion worth of crypto deposits as of June.

🗞 HEX Plasters UK With Ads Boasting of 11,500% Returns

Ads boasting that the price of the controversial HEX token has risen 11,500% in four months appeared at English Premier League soccer games.

Richard Heart’s controversial HEX token has launched an advertising blitz in the U.K., plastering ads on London public transportation, in newspapers, and during English Premier League soccer games.

As reported by Twitter user Metallic Elmo, scrolling text appeared behind players at the series of soccer matches on July 26. “HEX price went up 11,500% in 129 days,” the ads stated, directing viewers to visit the ERC-20 token’s website.

Many in crypto believe HEX is a ‘scam’

Many in the crypto community are extremely wary about the token due the high rates of returns, which are often associated with Ponzi schemes and investment scams. Some on social media compare HEX to the notorious Ponzi scheme Bitconnect.