The partnership will see LCX hosting native wallets to support $DAG and list $DAG at its regulated exchange.

As part of its ongoing work to expand the adoption of its ecosystem and associated tokens, Constellation Network and its primary exchange, Lattice, are partnering with Liechtenstein cryptocurrency exchange, LCX.

Per the announcement, the Constellation team will explore opportunities to integrate the tokens created using its L_0 Token Standard. LCX will also work to bolster integration for Constellation’s Hypergraph Transfer Protocol (HGTP) to bring trade and transaction transparency to the centralized exchange.

The partnership will see LCX hosting native wallets to support $DAG and list $DAG at its regulated exchange. The new listing was also extended to include the Lattice Exchange token (LTX) in order to provide a path for tokens minted on Constellation’s Network to be traded in a regulatory compliant environment.

LCX will provide legal assistance and a framework package for “L_0” applications and token, as well as projects built on Constellation’s Hypergraph, a ledger based on DAG architecture. 

Benjamin Jorgensen, Co-Founder and CEO at Constellation Network ($DAG) and Lattice Exchange ($LTX) said the partnership with LCX helps their L_0 token standard to compete against the other token standards in the crypto industry.

Today’s announcement appears to be one more step in that direction with more plans in the pipeline to significantly expand the adoption of Constellation’s offering by building relationships with leading crypto projects and platforms.

Jorgensen also expressed his excitement about partnering with LCX, which holds a license to conduct regulated crypto and tokenization business in Liechtenstein, to bring new opportunities to the Constellation ecosystem.

“Partnering with LCX paves a path for success for anyone building on Constellation’s ecosystem. This will give projects that build on Constellation and list on our DeFi Platform Lattice, assurance that their token has a path to being freely traded and supported from centralized exchanges like LCX. LCX is leading the way to mainstream adoption of cryptocurrency by providing the support needed for institutional traders and blockchain technology,” Jorgensen added.

Constellation Network Unlocks DeFi Lucrative Returns

Constellation’s growing list of trusted partners is organized in multiple categories with a focus on industry collaboration and cross-pollination of resources. 

Most recently, they integrated YIELD App into the Stargazer Wallet, giving users the chance to earn a passive income of up to 20% annual percentage yield (APY) on their ETH, USDT, and USDC holdings.

These collaborations will unlock new collateral markets as the San Francisco-based company is pressing ahead with a range of blockchain and cryptocurrency projects.

While DeFi appeals to investors because of faster operating speeds, Constellation catches up with the trend through providing users with new yield options for their parked assets, but without navigating a sea of complex protocols.

“Crypto is all about scale. Constellation has built the infrastructure to scale fast and build a profitable network for all stakeholders involved. Now LCX users will become stakeholders of the Constellation Network as well and will enjoy its benefits,” said Monty Metzger, CEO and Founder of LCX.com.  

The Bank of New York or BNY Mellon published its valuation of Bitcoin at the close of this month, based on the stock-to-flow model (S2F). 

The document Blending Art & Science: Bitcoin Valuations describes how the Bank is opening the door to the queen of cryptocurrencies as a unit of measurement for an underlying asset. 

Specifically, Mellon argues that it is not possible to value bitcoin and thereby all cryptocurrencies with the traditional methods used for fiat currencies. Not only that, in defining what bitcoin is here’s what he says:

“The most commonly accepted definition of a currency is a store of value and a medium of exchange. By these accounts, Bitcoin fits the description of a nascent currency”.

After a brief assessment of the various models, Mellon focuses on the stock-to-flow model, defining it as follows:

“The S2F model is elegant (and potentially flawed) in its simplicity. It provides that relativity to link Bitcoin with a much more established gold market/framework. Another possible valuation model is the stock-to-flow cross asset model (S2FX). The natural evolution for the S2F ratio was to apply it to a cross asset valuation framework in relation to gold and silver. In this model, the role of Bitcoin evolves from a proof of concept in the late 2000s to Bitcoin’s current role as a counter-fiat/uncorrelated asset”.

But BNY Mellon is not the only one to have valued bitcoin based on the S2F model. Earlier this month, in fact, S2F Multiple had also posted on Twitter its valuation according to the 463-day stock-to-flow Multiple model. 

The result of the study predicted an overestimation of the price of bitcoin compared to the model’s findings, with a difference of $14,200. 

The oldest bank in the US interested in the bitcoin world

This recently published valuation is just one informative document that shows how BNY Mellon, the oldest bank in the US, is open and interested in the bitcoin world. 

In fact, in mid-February this year, Mellon announced that it was offering services related to bitcoin and crypto in general. Holdings and transfers in BTC and other cryptocurrencies are possible for Mellon’s asset management clients. 

BNY Mellon joins all banks and financial institutions that include bitcoin and crypto. 

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Swiss multinational Credit Suisse has announced a “highly significant and material” loss resulting from a “US-based hedge fund defaulting on margin calls.”

Likewise Japan’s biggest investment bank, Nomura, has warned of a “significant loss” at its US subsidiary due to a transaction related to an unknown client with that loss estimated at $2 billion.

Many are saying that client is Archegos Capital Management, a family office hedge fund, who some estimate had $10 to $15 billion in assets under management.

“Things started going wrong for Archegos when shares of companies such as Viacom started to slide mid-last week,” said Michael Brown, a senior market analyst at Caxton Business. “It was at that point that margins were called, and couldn’t be provided, hence the block sales seen Friday.”

About $20 billion was sold off on Friday in Baidu, Tencent Music, ViacomCBS and Discovery with this hedge fund apparently betting through derivatives.

Some estimates say they were using 5x leverage, which would indicate a total loss of about $50 to $70 billion.

Goldman Sachs apparently experienced only “immaterial” losses because they were fully collateralized and Goldman was among the first to begin reducing its exposure. The bank has now exited most of its Archegos-related positions.

Morgan Stansley is believed to have gotten early too, with Deutsche Bank having only a small exposure to Archegos.

According to Financial Times “bankers in Tokyo familiar with the circumstances surrounding the heavy sell-off of Archegos assets described the event as a possible ‘Lehman moment’ that would force multiple lenders to recognise that leverage extended to the fund had created excessive risk.”

Other analysts say this is unlikely to develop to anything serious, but this is the biggest blow up of a hedge fund in two decades since Long-Term Capital Management went under in 1998.

Currently there are lingering questions on whether there are other funds in trouble, with many wondering whether the losses can be isolated.

In addition some worry banks may now exercise more caution with their leverage offers, potentially closing other positions to reduce exposure.

Bitcoin Jumps

The biggest beneficiary of all this currently appears to be bitcoin. This has jumped overnight (euro time) since much of the above became known.

Bitcoin rose by about 5% most likely because it is the only usable money outside of the banking system.

These turbulences in the banking system therefore have most probably led to trading houses hedging or diversifying with bitcoin just in case.

Gold instead has fallen from $1,724 to $1,710 presumably because bitcoin is taking its position as a hedge.

These price movements today will probably solidify that shift, with bitcoin’s sudden jump having no ‘internal’ reasons as far as we can see.

Some are suggesting Visa allowing the dollar pegged USDC to settle transactions on its payment network is perhaps behind this move but that appears to be extremely unlikely because it is pretty much non news and because USDC has almost nothing to do with bitcoin.

Of course a rise for bitcoin was expected after its dip prior to the derivatives contract expiries this Friday, but the overnight jump is surprising.

Not, however, in light of this banking news because that traders would run to bitcoin in light of even the slightest hint of potential banking troubles is what you’d expect.