The hallowed halls of Harvard have produced some legendary entrepreneurs and Wall Street titans. Four students at the prestigious university are looking to add their names to that list with a new cryptocurrency hedge fund known as Plympton Capital.
“Bushra Hamid, the 19-year-old daughter of Syrian immigrants, has teamed up with three schoolmates to form Plympton Capital, a hedge fund for investing in digital currencies,” reports Bloomberg. “Hamid says they aim to launch in six to eight weeks, starting with $1 million. Plympton, named for a street in Cambridge, Massachusetts, has already raised $700,000 from friends and family.”
As the cryptocurrency universe has expanded, so have the number of hedge funds focusing on the asset class. Currently, there are 251 dedicated crypto hedge funds on the market, a massive percentage of which debuted last year.
Chart Courtesy: Autonomous Next
However, the space is highly competitive and with the retrenchment experienced by many digital currencies earlier this year, some crypto hedge funds closed their doors. By some estimates, nearly 10 crypto hedge funds closed their doors in the first quarter of this year.
Focusing On Millenials
Not surprisingly, Plympton Capital is focusing on younger investors.
“The Plympton group is banking on the youth movement. A recent online survey of about 2,000 adults conducted by Harris Poll for Blockchain Capital showed that 4 percent of millennials — people 18 to 34 years old — have owned Bitcoin, twice the rate of the general population. And 16 percent of millennials said they plan to buy Bitcoin in the next five years,” according to Bloomberg.
Recent surveys and studies suggest many asset allocators remain reluctant to embrace digital currencies and that overall ownership of the asset class remains low among American investors. However, those studies encompass participants that are likely much older than the 18-34 demographic.
Interestingly, none of the four Harvard students that are co-founders of Plympton Capital are business majors, though one majors in applied mathematics. A pair are psychology majors while the other studies neurobiology and economics.
187,000 BTC Drained: Over $2 Billion in Bitcoin Leave the Top Exchanges Since June
Cryptocurrency reserves held on digital asset exchanges have been dropping to new lows, as some of the top exchanges have seen significant bitcoin reserve balance drops. A few months ago trading platforms had a lot more bitcoin reserves on hand and onchain data shows a few exchanges have seen customers steadily drain 187,000 bitcoins ($2.1B) from exchange-owned cold wallets.
In February, Coinbase had 1 million bitcoin under management and today reserves are down over 9% as 92,000 bitcoin ($1B) has left the exchange. Today, according to Bituniverse’s online exchange balance rank tracker, the San Francisco trading platform has 908,560 BTC under management.
36,000 BTC ($408M) left Coinbase since news.Bitcoin.com’s reserves report published on June 30, 2020. A number of top exchanges below Coinbase have also seen cold wallets drained during the last three months.
The second-largest exchange in terms of bitcoin reserves held is Huobi and the trading platform is down over 53,000 BTC ($601M) since June 30. Binance’s balances remained the same as the exchange holds 266,000 BTC today and three months ago, Binance held 269k BTC. Similarly, the fourth-largest reserve holder, Bitfinex, didn’t see much movement in the last three months.
Statistics show out of the top five crypto trading platforms over 187,000 BTC ($2.1B) has left these exchanges since the June report.
Just recently, Bitmex had some legal troubles with the U.S. government and since the incident, a lot of bitcoin has left the derivatives exchange. Three months ago Bitmex had 224 BTC in reserves and today the exchange only has 113,000 in cold storage. Onchain data indicates Bitmex lost a whopping 49.55% in BTC reserves since June 30.
At the time of publication, Glassnode’s “Exchange Balance vs. Bitcoin” stats show that there’s 2.7 million BTC held on exchanges today. Glassnode’s stats indicate that out of the 21 million BTC cap, exchanges hold 12.85% of all that will exist, and 14.59% of the 18.5 million BTC in circulation.
1.8 million BTC out of the aggregate 2.7 million BTC held on exchanges sits in the world’s top five crypto trading platforms. The top five custodial platforms by BTC reserve status include Coinbase, Huobi, Binance, Bitfinex, and Okex.
Exchange balances have been riding lower consecutively for the last 15 months and the last time balances were this low was around May 2019.
To many crypto enthusiasts and traders, the low balances on exchanges suggest users are storing assets in a noncustodial fashion as opposed to leaving funds with a third party. The data from Bituniverse and Glassnode also suggests that liquidity and selling pressure may lower.
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“Ledger Secure” Wallet – Chrome Extension Scam [Update]
On January 2nd, 2020 the Bitcoin Enthusiast and Software Developer known as @WizardofAus sent out a Tweet warning people to uninstall and not to use the Chrome Browser Extension called “Ledger Secure”. This Tweet came after a fellow crypto trader of WizardofAus, @hackedzec got 600ZEC stolen from his crypto wallet by the author of the “Ledger Secure” browser extension.
The browser extension has since been reported and officially removed from the Chrome Web Store and the official Ledger Support Twitter account Tweeted a statement verifying that the extension was not legitimate and to uninstall it immediately. It is speculated that the extension developer “effectively phished by interposing between the user and the Ledger” as well as used a keylogger to print the victim’s security keys.
This scam does not affect your official Ledger wallet or devices, you should only be concerned if you installed the “Ledger Secure” browser extension and connected it to your official Ledger account.
If you have installed or used the “Ledger Secure” Chrome extension then contact Ledger Support immediately:
It is important to NEVER trust or use an illegitimate 3rd party company, wallet or storage device to store or trade your cryptocurrency, and only store it on an official wallet or device that has been validated and tested by industry professionals. Also, be sure to check the vendor’s website and confirm that the URL is secure using HTTPS (Green PadLock).
“Always assume that every browser extension is malware and not secure.”
How to Stay Safe:
It is always more secure to use a completely separate computer or device to store and trade your cryptocurrency than you use for your general browsing and internet use. If you have to use the same device then make sure to be extra safe and diligent about not using unique usernames and passwords. The best plan of action is to always assume that every browser extension is malware and not secure. It is also important to never store your cryptocurrency on an open exchange, they have been hacked in the past and are sure to be jeopardized in the future.
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