It was an industry that looked like it was overheating for some time, and finally, at least for a short while, it appeared that the DeFi bubble had well and truly burst.<\/span><\/p>\n Half a dozen major DeFi tokens shed half their fiat value, and the sell-offs erased the gains enjoyed by most DeFi markets during August\u2019s volatility.<\/b><\/p>\n Some members of Crypto Twitter were unsentimental, to say the least. One of them, Stack Those Sats, wrote: \u201cDeFi is going straight into the ground. Just another series of scams.\u201d<\/span><\/p>\n But wait! <\/b>It wasn\u2019t over yet. The decentralized finance sector dusted itself off on Thursday, rebounding by <\/span>19% <\/b>in just 24 hours. Some tokens, such as Yearn.finance, gained <\/span>37.6% <\/b>over this period alone.<\/span><\/p>\n All of this suggests that <\/span>rumors of DeFi\u2019s demise have been greatly exaggerated<\/span><\/a>. <\/span>New money continues to flow into existing protocols, and more are being built.<\/b><\/p>\n <\/p>\n So, what led to DeFi\u2019s dark week? <\/b>Well, it may be down to how the anonymous founder of SushiSwap \u2014 \u201cChef Nomi\u201d \u2014 withdrew $14 million from the company\u2019s coffers shortly after insisting the money was meant for development and wouldn\u2019t be taken from the company.<\/span><\/p>\n It was a recipe for disaster. The SUSHI token sold off almost immediately, with people losing confidence in the project\u2019s viability. <\/span>It was so swift that it torpedoed the entire crypto industry, taking the rest of DeFi and even Ether and Bitcoin down with it.<\/b><\/p>\n Chef Nomi later insisted to Cointelegraph that they did not pull an exit scam, and in a surprising turn of events, they later apologized and returned the cash to the project\u2019s development fund. On Twitter, they wrote:<\/span> \u201cTo everyone. I f—– up. And I am sorry.\u201d<\/b><\/p>\n They has now said he will let the community decide how much they deserves as the original creator of SushiSwap, adding that they would like to continue helping develop the project\u2019s tech from behind the scenes. <\/span>Whether the community will accept this offer remains to be seen.<\/b><\/p>\n <\/p>\n Bitcoin entered the weekend on a strong footing<\/span><\/a> after a relatively uneventful Friday saw its price continue to fluctuate between <\/span>$10,200 <\/b>and <\/span>$10,400<\/b>. With BTC consolidating into a tighter range, it looked like traders were readying themselves to test the <\/span>$15,000 <\/b>resistance.<\/span><\/p>\n According to Cointelegraph analyst Micha\u00ebl van de Poppe, breaking through <\/span>$11,800 <\/b>would mean a potential target of <\/span>$16,000 <\/b>would be on the table.<\/span><\/p>\n He wrote that the market movements we are seeing now are very similar to what was seen the year before Bitcoin headed to all-time highs of $20,000. <\/b>But he cautioned: \u201cThe current market structure is resembling only the start and build-up of a potential bull run similar to the sentiment and momentum of late 2016.\u201d<\/span><\/p>\n Overall, van de Poppe said that the total market capitalization of cryptocurrencies \u201cis showing a healthy correction in an upward trending market.\u201d<\/span><\/p>\n And he predicted: <\/span>\u201cIf the total market capitalization holds the $270 billion to $275 billion areas for support, further continuation upward is likely. If a new impulse move occurs, the next resistance and target zone can be seen at $550 billion.\u201d<\/b><\/p>\n The U.S. Internal Revenue Service is offering a bounty of up to <\/span>$625,000 <\/b>to anyone who can break \u201cuntraceable\u201d privacy coins such as Monero \u2014 as well as trace transactions on Bitcoin\u2019s Lightning Network.\u00a0<\/span> America\u2019s taxman is accepting submissions in the form of working prototypes until next Wednesday. <\/span>Successful applicants will be given an initial payment of $500,000<\/b>.<\/span> They will then be able to use this grant to develop their prototype into a working concept over eight months. <\/span>Once the pilot test is completed and approved by the government, a further $125,000 grant will be awarded.<\/b> It doesn\u2019t take a rocket scientist to figure out why the IRS is so keen to crack Monero. <\/span>Criminal organizations much prefer XMR to more traceable crypto assets such as Bitcoin, and it\u2019s increasingly being used by ransomware groups.<\/b> Blockchain analytics firm CipherTrace claims to have a new tool that can trace Monero transactions, although its capabilities are yet to be confirmed.<\/span><\/p>\n Crypto skeptic Peter Schiff is probably wishing he hadn\u2019t put a poll on Twitter right now.<\/span><\/p>\n On Monday, he explained that his 18-year-old son Spencer had just bought more Bitcoin.<\/span><\/p>\n He asked his followers: <\/span>\u201cWhose advice do you want to follow? A 57-year-old experienced investor\/business owner who\u2019s been an investment professional for over 30 years or an 18-year-old college freshman who\u2019s never even had a job.\u201d<\/b><\/p>\n Just <\/span>18.7% <\/b>of the 82,906 respondents supported the \u201cexperienced professional,\u201d while <\/span>81.7% <\/b>backed \u201cthe kid.\u201d<\/span><\/p>\n Many people were approving of Spencer\u2019s decision, with Quantum Labs CEO Usman Majeed writing: <\/span>\u201cYour son will be a multimillionaire at least by the time he\u2019s 57 if he keeps buying Bitcoin.\u201d<\/b><\/p>\n Morgan Creek Digital co-founder Anthony Pompliano also thought the father and son double act was a work of genius. <\/b>He wrote: \u201cUsing your son to hedge your gold bet is a great idea. Gold goes up, you benefit. Bitcoin goes up, your son benefits. Clever way to be long [on] both assets without publicly capitulating on gold.\u201d<\/span><\/p>\n <\/p>\n <\/p>\n At the end of the week, Bitcoin is at<\/span> $10,316.65<\/b>, Ether at <\/span>$367.77 <\/b>and XRP at <\/span>$0.24<\/b>. The total market cap is at <\/span>$339,174,021.634<\/b>.<\/span><\/p>\n Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>IOST<\/b>, <\/span>Yearn.finance <\/b>and <\/span>Flexacoin<\/b>. The top three altcoin losers of the week are <\/span>SushiSwap<\/b>, <\/span>Celo<\/b> and <\/span>Arweave<\/b>.<\/span><\/p>\n For more info on crypto prices, make sure to read <\/span>Cointelegraph\u2019s market analysis<\/span><\/a>.<\/span><\/p>\n <\/p>\n <\/p>\n \u201cJust convinced @jimcramer to buy Bitcoin. Reply to this tweet with your best meme or GIF to welcome the world\u2019s newest Bitcoiner.\u201d<\/span><\/p><\/blockquote>\n Anthony Pompliano<\/b><\/a>, Bitcoin bull<\/b><\/p>\n <\/p>\n \u201cThe crypto people, just about the most enjoyable group of people I\u2019ve ever met. They are f—— crazy. They are crazy on social media, they are crazy on Twitter, they have the same f—— personality I do, they are gamblers at heart, they slant, they laugh at themselves, they just want to make money. I will be in crypto. My heart is crypto. But I just gotta figure it out.\u201d<\/span><\/p><\/blockquote>\n Dave Portnoy<\/b><\/a>, Barstool Sports founder<\/b><\/p>\n <\/p>\n \u201cHistory indicates that we may have ample room for higher volatility and gains in the months ahead.\u201d<\/span><\/p><\/blockquote>\n Kraken report<\/b><\/a><\/p>\n <\/p>\n \u201cWe have journalists all over the world who care deeply about this industry and the technology and philosophy of blockchain.\u201d<\/span><\/p><\/blockquote>\n Jon Rice<\/b><\/a>, Cointelegraph\u2019s new editor-in-chief<\/b><\/p>\n <\/p>\n \u201cAgainst my advice my son @SchiffSpencer just bought even more #Bitcoin. Whose advice do you want to follow? A 57-year-old experienced investor\/business owner who\u2019s been an investment professional for over 30 years or an 18-year-old college freshman who\u2019s never even had a job.\u201d<\/span><\/p><\/blockquote>\n Peter Schiff<\/b><\/a>, crypto skeptic<\/b><\/p>\n <\/p>\n <\/p>\n The U.S.-based cryptocurrency exchange Kraken has predicted that September will bring excessively negative returns for Bitcoin.<\/span><\/p>\n According to its new report, September is historically Bitcoin\u2019s worst-performing month, with an average return of -7%. <\/b>And given how BTC has underperformed in its average returns for most months of 2020 so far, this month could be even worse than usual.<\/span><\/p>\n Moving away from the short term though, it isn\u2019t all doom and gloom. Kraken said a record share of BTC\u2019s supply has not moved in more than 12 months, and \u201chistorically, this dynamic has foreshadowed a new bull market.\u201d<\/span><\/p>\n However, Kraken\u2019s crystal ball isn\u2019t necessarily what it\u2019s cracked up to be. <\/b>The exchange recently predicted that a BTC rally of between 50% and 200% was imminent on Aug. 10 when Bitcoin was trading for between <\/span>$11,500<\/b> and <\/span>$12,000<\/b>. (Spoiler alert: nothing happened.)<\/span><\/p>\n <\/p>\n The governor of the Bank of France has warned that Europe cannot afford to lose momentum in tackling the challenges posed by private sector global digital assets.\u00a0<\/span><\/p>\n Fran\u00e7ois Villeroy de Galhau\u2019s warning came as five EU governments \u2014 Germany, France, Italy, Spain and the Netherlands \u2014 called for tough action from the European Commission as it drafts regulations for stablecoins.<\/b><\/p>\n All of this could be rather bad news for Facebook\u2019s Libra, which has had little luck in persuading politicians, bankers and regulators in the U.S. and Europe that it\u2019s got what it takes to launch a private currency in a way that wouldn\u2019t destabilize the global economy.<\/span><\/p>\n Villeroy de Galhau also stressed that the European Central Bank can\u2019t afford to \u201clag behind on a CBDC.\u201d <\/b>This could serve as a hint that we may see some more movement from the eurozone fairly soon.<\/span><\/p>\n Six of the 109 people recently arrested by Chinese police in connection with the $5.8-billion PlusToken Ponzi scheme have been charged.<\/span><\/p>\n According to officials, they are \u201csuspected of organizing and leading criminal pyramid schemes.\u201d<\/b><\/p>\n Of the 109 arrested in July, 27 were believed to serve as executives for the scam, while the remaining 82 were described as \u201ckey\u201d promoters.\u00a0<\/span><\/p>\n PlusToken published its white paper in February 2018, claiming to be a South Korean crypto exchange offering interest-bearing accounts generating returns of between 10% and 30% per month in the form of its native token PLUS.<\/span><\/p>\n The scam took in more than 200,000 BTC, 789,000 ETH and 26 million EOS from approximately 3 million unsuspecting investors.<\/b><\/p>\n <\/p>\n Financial institutions around the world have reported 134,500 suspicious transactions related to virtual currencies over the past two years. <\/span>But according to CipherTrace, this may just be the tip of the iceberg.<\/b><\/p>\n The blockchain forensics firm says many financial institutions have developed inadequate \u201chome-grown\u201d systems for identifying cryptocurrency-related accounts and transactions.<\/span><\/p>\n Current strategies result in \u201cmany false positives and misses significant, large amounts of funds flows,\u201d its report warns.<\/b><\/p>\n Many banks use lists of the names of crypto exchanges to flag transfers associated with cryptocurrency, but CipherTrace estimates that 70% of trading platforms may not be on these lists, meaning up to 90% of actual transaction volume isn\u2019t accounted for.<\/span><\/p>\n The problems don\u2019t end here. <\/b>Many crypto exchanges operate under a business name that differs from their branding, and few financial institutions screen for exchanges outside of the top 100.<\/span><\/p>\n <\/p>\n <\/p>\n With regulators unlikely to change old-fashioned rules in favor of the emerging market, DeFi might be burdened under fraud and new portions of restrictions, writes Oleksii Konashevych.<\/span><\/p>\n <\/p>\nChef Nomi has returned all funds to the SushiSwap community<\/b><\/a><\/h4>\n
Bitcoin can hit $16,000 but only if this resistance level finally breaks<\/b><\/a><\/h4>\n
<\/h4>\n
IRS offers a $625,000 bounty to anyone who can break Monero and Lightning<\/b><\/a>
\n<\/b><\/a><\/h4>\n
\n<\/b><\/a><\/p>\n
\n<\/b><\/a><\/p>\n
\n<\/b><\/a><\/p>\n
\n<\/b><\/a><\/p>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/09\/Digest_12-09_1-1024x767.jpg\")
<\/b><\/a><\/h4>\nSchiff buys more Bitcoin \u2014 But there\u2019s a twist<\/b><\/a><\/h4>\n
<\/h4>\n
Winners and Losers<\/b><\/h2>\n
![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/09\/Winners-and-Losers_07-13-sep-01-1024x826.jpg\")
<\/span><\/p>\nMost Memorable Quotations<\/b><\/h2>\n
Prediction of the Week<\/b><\/h2>\n
Remember, remember Bitcoin tanks in September: Kraken report<\/b><\/a><\/h4>\n
![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/09\/Digest_12-09_2-1024x767.jpg\")
<\/span><\/p>\nFUD of the Week<\/b><\/h2>\n
Bank of France: Stablecoins could impact EU financial sovereignty \u201cfor decades\u201d<\/b><\/a><\/h4>\n
<\/h4>\n
Chinese authorities charge six people over $5.8 billion PlusToken Ponzi scheme<\/b><\/a><\/h4>\n
Banks failing to identify up to 90% of suspicious crypto transactions<\/b><\/a><\/h4>\n
![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/09\/Digest_12-09_3-1024x767.jpg\")
Best Cointelegraph Features<\/b><\/h2>\nDeFi: A shrinking window of opportunity<\/b><\/a><\/h4>\n
Ethereum 2.0 is coming, unlikely to speed up enterprise DeFi adoption<\/b><\/a><\/h4>\n