Coinbase is put to the test.
And our friends in the UK hit double-digit inflation
first time in four decades.
My name is Ben.
This is your nightly crypto news wrap-up.
Let's get it!
Not too long after Coinbase got broadsided by SEC probe
as a direct result of the insider trading scandal,
now, Coinbase is in hot water with another lawsuit that was filed right here in our home state of Georgia.
As the story goes,
the plaintiff, Mr. George Kattula, received an email from Coinbase
prompting him to change his password.
Shortly after he did so,
almost $6,000 vanished from his account and transferred to God knows where.
Obviously, he did everything he could to reach customer service to secure his account.
But they failed to get back to him,
leaving the hackers with an open window time to steal an additional $1,000 from his bank account.
Coinbase did eventually reverse the unauthorized transfer from his bank account.
But then they froze his account and didn't cover the crypto that was stolen from Mr. Kattula.
This is a classic example of why it's so important to insulate yourself from these types of shenanigans
and buy a Ledger cold storage wallet.
There's a link down in the description if you want to check that out.
If Mr. Kattula had that $6,000 on a Ledger,
none of this would have happened.
Unless you're actively trading or scalping,
there's absolutely no reason at all you should have your crypto on an exchange.
Problems like this are completely avoidable.
Don't let it happen to you.
Now, a few weeks ago, we put out a video on this exact topic titled
Is Your Crypto Safe Anywhere?
The short answer to that question is only in a cold storage wallet.
Mr. Kattula's lawsuit claims that Coinbase improperly and unreasonably
locks its customers from accessing their accounts and funds,
either for extended periods of time or permanently.
Classic!
You see, there's a language in the terms and conditions of almost every crypto exchange out there.
It's called a force majeure.
Basically, if anything goes wrong,
anything at all,
they can do whatever they want!
Freeze you, lock you out, stop withdrawals, etc.
And at the same time,
they're not responsible.
It's a very, very, very slippery slope.
So brace yourselves.
Winter is coming.
They can literally do whatever they want,
whenever they want,
and it's affecting investors.
That's why the SEC is probing them.
Coinbase also recently announced
they're freezing Ethereum withdrawals during the Merge as a precautionary measure.
But I can't help but think that they want to prevent a sell-the-news type situation.
If you think this is bad,
no, this is probably going to get worse before it gets a lot better.
Just yesterday,
the Fed put out a letter to banking institutions that were involved with crypto.
This letter shows their true intentions.
And in their eyes,
everything they can't control poses a risk to the financial system.
They describe most of the activity with crypto as illicit.
And oh, boy, did they hate stablecoins.
Long story short,
this is their warning to the banks,
and really to everyone,
that if crypto is adopted at a large scale,
it could disrupt everything.
That's kind of the point.
They're going to use every excuse they can to ensure the safety of the legacy system.
So, real quick, let's pass it off to Frankie Candles for a market watch.
Thanks, Ben!
Alright, guys. Let's go ahead and do a little market watch here.
We've got Bitcoin coming in at $23,355.
Down about 2.2% on the day
Ethereum coming in at $1,833
Down about 2.3% on the day
Now, guys, I want to bring you over to the Bitcoin chart
because we are seeing some bearish things pop up.
We do have a yellow X popping up on the 1-hour chart.
This is typically a bearish signal on Market Cipher
indicating a move to the downside.
We are up against this very important support.
It is a daily level of support at about $23,320.
I've had my eye on this support for quite some time.
The question is, can we hold it?
And this yellow X could potentially have the power to push us through.
But this is the main level to watch.
If we lose this daily level,
I will be looking all the way down here at this Value Area High at about $21,922.
I do think there is a potential possibility for us to get a dump down to this level
if this yellow X winds up playing out.
We also have money flow on the medium timeframes starting to come out.
So that is also a pretty bearish sign.
If you guys want to follow me
and learn how you can find these key levels of support and resistance as well,
you can find me on YouTube at Frankie Candles or @Frankie_Candles on all socials.
Back to the news.
For our friends on the other side of the Atlantic,
I have some good news and some bad news.
Always bad news first, though.
For the first time in 40 years,
UK is dealing with double-digit inflation.
Welcome to the family.
They've joined 2 billion other citizens in the world living with record high inflation.
They too are raising their interest rates to try to tame it down.
But fuel is a big problem for them.
And the wintertime with their gas surcharges will only make it worse for your everyday chap.
Another thing is,
the UK currently doesn't have a political leader.
Which brings us to the good news.
Both politicians fighting for the prime minister seat,
Rishi Sunak and Liz Truss,
are both for crypto.
The new prime minister will be decided on September 5.
To add to the narrative,
Crypto.com just got the thumbs up from the FCA for their UK registration
to conduct certain cryptoasset activities in the country.
This comes after Crypto.com got approval in Canada, South Korea and the Cayman Islands.
Let's hope the UK and the US can successfully navigate the waters of inflation,
crypto mass adoption.
Future of finance depends on it.
That's all I got.
Be blessed.
BitBoy out.