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  • CZ sentenced to 4 months in prison😥

CZ sentenced to 4 months in prison😥

Also : The reality of hyped VC tokens exposed!

Welcome back to the daily Coinsauce Newsletter, your go-to source for the latest crypto updates 🗞️

💧Top stories in the last 24 hours:

• Roger Ver arrested for tax fraud.

• CZ sentenced for 4 months in prison.

📖 Educational alpha :

• A note of caution for predatory VC tokens.
• Altcoin chart of the day.

Lets dive in.

📈 Markets

  • Overall bias - Negative

  • As mentioned in our earlier newsletters, Bitcoin was clearly looking weak.

  • The macro support of $60k has been broken, and the daily structure has flipped bearish.

  • Bitcoin is now trading below the average Spot ETF entry levels.

  • The breakdown is supported by good volumes, and there are no bearish divergences on the RSI, which is bearish.

  • A re-test of $59,500 on intraday timeframes can be a good short opportunity now.

  • Till $62,000 is not convincingly reclaimed, the market bias will remain bearish.

  • The next area of support is $52,700 & $50,300 respectively, which should hold at least for the mid-term.

  • This is the most difficult part of the bull cycle, where weak hands get flushed out due to sideways & weak price action. Just hang in there, avoid high leverage, and DCA into strong projects!

📅 Today

Trouble for Roger Ver 👀

Bitcoin Cash advocate Roger Ver, infamously known as "Bitcoin Jesus," is facing tax fraud charges for evading $50 mil in capital gains tax, after he gave up U.S. citizenship and set up businesses in St. Kitts and Nevis.

The DOJ claimed that he sold Bitcoin for $240 million in cash in November 2017.

Despite not being a US citizen, he was still legally required to report to the IRS and pay tax on certain distributions such as dividends received from US corporations. He allegedly concealed from his accountant that he had received and sold MemoryDealers’ and Agilestar’s Bitcoins that year, and failed to report his income tax returns on the same.

CZ charged with 4 months in prison 👀 

CZ, the founder of Binance, was sentenced to 4 months in prison yesterday. During the hearing, Judge Richard Jones questioned the DOJ’s recommendation for a longer sentence.

With a wealth of $33 billion, he will become the richest person in the US to be sent to prison.

The judge disagreed with the proposed increase from the baseline guideline of 10 to 16 months in prison and up to three years of supervised release. The court noted that CZ had accepted responsibility for his mistakes, and that there was no evidence that he was ever informed of illegal activity at Binance.

Last year, CZ had pleaded guilty, and Binance agreed to pay a $4.3 billion fine. As part of the agreement, he also stepped down from Binance ever since.

📊 Stats

Educational 📔 

A note of caution on VC tokens 👇️ 

In the last cycle, top VC tokens had an average benchmark of 563X returns, with top performers like Solana, Matic, and Elrond reaching 1000X returns during the peak of the bull market.

However, a closer examination reveals that many of these tokens last cycle initially raised funds at very low valuations compared to today's high FDV token launches. For instance, early investors in Matic and Solana entered at around $5 million FDV.

In contrast, current hyped tokens like Celestia and Manta are launching at over a billion dollars FDV. Celestia debuted at $1 billion FDV, and Manta at $360 million. Early investors in Celestia have already seen a 10X return on their initial investments

The impractical valuations at token launches are limiting potential gains for investors. For instance, Celestia has already seen a 10X valuation for private investors, reaching an FDV of $10 billion. Even a further 10X increase would value the token at $100 billion, an overly ambitious figure for any altcoin.

Hyped VC tokens like Dymension, Manta, Celestia, and Pixels present unfavorable risk-to-reward ratios for retail investors. Eventually, VCs may unload their 100X profits onto unsuspecting retail traders.

Note : None of the content here is financial advise. This is for educational purposes only.

Altcoin chart of the day 📈 

Pepe/Usdt (4H)

  • Pepe has broken a key support of $0.0×634.

  • A re-test of this level on an intraday basis, in confluence with the 1 hour super-trend could be a good short opportunity.

  • The next area of support is $0.0×565, but for now the bias remains bearish.

  • The market has dropped considerably, so holding shorts for too long would not be wise. Taking profits quickly & waiting for a pull-back to re-enter on shorts from key resistance levels will have a better risk to reward ratio.


🤣 Meme of the day

Bitcoin Maxi’s right now 😂 

That concludes our update for today!

We appreciate you joining us for the latest news. We aim to provide insights and highlights that keep you well-informed and ready. Remember to follow us on Twitter and Instagram for regular updates, insights, and giveaways. Until next time, happy trading!

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