‘Black Swan’ Author Nassim Taleb Advises to Stay Out of Bitcoin, Citing No Link to Inflation or ‘Anything Economic’

'Black Swan' Author Nassim Taleb Advises to Stay Out of Bitcoin, Citing No Link to Inflation or 'Anything Economic'

The famous author of The Black Swan, Nassim Nicholas Taleb, says investors should not buy bitcoin. To hedge against the current turbulent market, he advises buying stocks or real estate, emphasizing that bitcoin has no connection to inflation or “anything economic.”

Nassim Taleb Advises Against Bitcoin Investing

Nassim Nicholas Taleb, the famed author of “The Black Swan,” has shared his view on bitcoin and on how to hedge against the current turbulent market in an interview with CNBC Friday. Taleb is a Lebanese-American scholar, mathematical statistician, former options trader, and risk analyst.

He was asked about cryptocurrency, particularly bitcoin, given that investors have been increasingly restructuring their portfolios with this asset class. Regarding bitcoin, “It has the characteristics of an open Ponzi scheme. Everyone knows it’s a Ponzi,” he claims, adding:

Basically, there is no connection between inflation and bitcoin. None. You can have hyperinflation and bitcoin goes to zero. There is no link between them.

Admitting that bitcoin is “a beautifully set up cryptographic system,” Taleb insisted that “It’s well-made but there is absolutely no reason it should be linked to anything economic.”

“If you want to hedge against inflation, buy a piece of land,” he advised, adding that one can “grow olives on it. You’ll have olive oil.” He continued, “Of course, the best strategy for investors is to own things that produce yields in the future.”

While a number of analysts support Taleb’s theory that bitcoin is not an inflation hedge, some believe otherwise. Investment bank Goldman Sachs said in December last year that “bitcoin is the retail inflation hedge,” noting that it “is replacing gold as the inflation hedge of choice.” British investment management firm Ruffer wrote that bitcoin “acts as a hedge to some of the monetary and market risks that we see.” Deutsche Bank observed that there “seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation, and other things.”

Concluding Friday’s interview on how to hedge risk in today’s market, Taleb said:

Stay out of bitcoin. Buy stocks that are stable and buy things you understand.

He also reiterated that investors can also “Buy a piece of land” and grow something on it, like in his earlier olive example.

The famous author was initially a bitcoin proponent, believing that BTC can be used as a currency. However, when he saw that the price of bitcoin is very volatile and investors are using the cryptocurrency as a vehicle for speculation, he started selling off his bitcoin and began calling it a failed currency.

What do you think about Nassim Taleb’s advice about bitcoin? Let us know in the comments section below.

Bitcoin and Many Other Coins Have Taken Serious Stumbles

The price of bitcoin has taken a horrible turn. The world’s number one digital currency by market cap – after reaching a new all-time high last week following Coinbase’s debut on the Nasdaq – has dropped roughly $8,000 in just a matter of days that has brought the asset down to roughly $55,000 per unit at the time of writing. It was recently trading as high as $63,000.

Bitcoin Falls Following an End to Coinbase Hype

In addition to bitcoin, other major altcoins including Ripple’s XRP, Dogecoin, Cardano and Ethereum have also taken serious tumbles. The entire event has been summed up as a “flash crash,” meaning there was a swift and sudden dip in the digital asset space that appears to have affected most of the world’s mainstream cryptocurrencies. As much as $300 billion has disappeared from the overall crypto market cap within a short period.

The bitcoin price has arguably been affected the most, with a ten percent dip at press time. Many analysts – including Mike Novogratz of Galaxy Digital fame – are now warning crypto traders that a “washout” could be occurring in the coming future, meaning assets could drop in price even further over the next few weeks.

In a recent interview, Novogratz says:

In the next week, certainly we could have some volatility because of the excitement around Coinbase… I have seen a lot of weird coins like dogecoin and even XRP have huge retail spikes, which means there is a lot of frenzy right now. That never ends well, and so we will probably have a washout at one point.

The recent price surges can likely be attributed to anticipation from Coinbase’s public debut on the stock market. As one of the world’s largest and most popular cryptocurrency exchanges, Coinbase decided in late 2020 that it would engage in an initial public offering (IPO), meaning it would unveil stock that investors could trade.

This marked the first time a company in Coinbase’s shoes would make such a move, and traders got excited when they found out that they could begin purchasing Coinbase stock as early as April 14 of this year. The news caused many of the world’s leading cryptocurrencies – including bitcoin and Dogecoin – to spike to new levels.

This Momentum Is Hard to Maintain

However, as we have seen in the past, when currencies rise to such heights within relatively short periods, the momentum proves a little overwhelming, and the assets in question cannot sustain the growth they are being put through. As a result, they dip almost immediately after the hype dies down, and the higher they have gone prior, the harder they tend to fall.

Before the unveiling of the stock, Novogratz claimed the Coinbase IPO was the “Netscape moment” of the blockchain world and would likely cause several other bitcoin and crypto-based firms to follow suit and issue stocks of their own.

The post Bitcoin and Many Other Coins Have Taken Serious Stumbles appeared first on Live Bitcoin News.

Bitcoin is not an inflation hedge, Bitcoin skeptic claims

Nassim Taleb persists in his belief that Bitcoin is not a good hedge against inflation.

Untied to any single government or country, Bitcoin is often labeled as a store of value asset and a hedge against other areas of finance. Nassim Taleb, a former risk analyst and author, thinks otherwise, however. 

In an interview with CNBC on Friday, after noting Bitcoin’s (BTC) similarity to a Ponzi scheme, Taleb said: “There’s no connection between inflation and the coin. None.”

He added:

“I mean you can have hyperinflation and Bitcoin going to zero. There’s no link between them.”

This is not the first time Taleb has expressed skepticism toward Bitcoin. Earlier this year, he mentioned selling off his BTC holdings, claiming issues with its volatility. His stance, however, was based on Bitcoin as a currency, not as a store of value — a role in which the asset has transitioned into over the years.

Taleb, however, does seem to fully appreciate the technology behind BTC. “It’s a beautifully set up cryptographic system,” he told CNBC. “It’s well-made, but there’s absolutely no reason it should be linked to anything economic,” he added.

“If you want to hedge against inflation, buy a piece of land. Grow, I don’t know, olives on it. You know, you’ll have olive oil, if the price collapses you’ll have something, but Bitcoin there’s no connection.”

He described the importance of owning cash-generating vehicles, and referred to Bitcoin as a gimmick. Taleb also made other comments on Bitcoin in the interview, including talking about currencies versus speculative assets.

Last year, Taleb referred to most Bitcoin advocates as idiots, citing their lack of knowledge on economic subjects.

5 reasons Bitcoin and Ethereum plummeted 15% in a single day

Bitcoin and Ethereum fell 15% and 20%, respectively, in one day, but why so much and so quickly?

The price of Bitcoin (BTC) and Ether (ETH) fell by 15% and 20%, respectively, on April 23 as the cryptocurrency market became engulfed in a major correction. 

Five factors likely caused the price of Bitcoin and Ethereum to steeply drop in a single day include mass liquidation, an overheated futures market, the decline of Kimchi premium, whales selling, and Biden tax concerns.

Overcrowded futures market sees $4B worth of liquidations

On April 23, in a 24-hour span, the cryptocurrency market saw over $4 billion worth of positions liquidated.

According to Bybt.com, a data analytics platform, the Bitcoin market is currently majority short, with short positions accounting for around 54%.

Binance BTC futures open interest. Source: Bybt.com

This suggests that in the past day, billions worth of long position were liquidated, leaving a lot of short positions open.

Data also shows that the open interest of the Ether futures market reached an all-time high on CME, indicating that the ETH futures market was also getting overcrowded. The open interest of Bitcoin futures similarly spiked before the price of BTC dropped.

Now, both ETH and BTC are in a better position to recover because their open interest have collectively dropped.

Bitcoin, in particular, saw its futures open interest drop to levels unseen since March 8 on Binance, which consitently records the highest derivatives trading volume for BTC.

Kimchi premium hits 0%

As the price of Bitcoin and Ether plummeted, the Kimchi premium in South Korea fell back down to 0%.

South Korea premium index. Source: CryptoQuant

The premium is now over 4%, but the South Korean cryptocurrency exchange market saw a steep sell-off following a negative statement from the nation’s financial watchdogs.

On April 22, Eun Sung-soo, the financial commissioner of South Korea, said that the government is taxing cryptocurrencies but they are not financial assets and the government would not protect them.

The unexpected statement from South Korea's financial watchdog likely led to a major sell-off in the South Korean cryptocurrency exchange market, causing the Kimchi premium to collapse. 

Small to medium-size whales are selling

On April 20, the Material Indicators team, who tracks the trade flow of Bitcoin on major exchanges, said that small to medium-size whales were selling.

The analysts said:

"While $1M+ people keep buying dips no matter what, $100k - $1M guys have set lower highs and lower lows on their orderflow."
Whales selling their funds. Source: Material Indicators

This trend was particularly significant because large whales were accumulating Bitcoin in the same period.

The selling pressure put on by small to medium size whales, who were selling between $100,000 to $1 million worth of Bitcoin on major exchanges, intensified the short-term downturn of Bitcoin.

Biden tax concerns

The timing of the Bitcoin price plunge also coincided with the release of U.S. President Joe Biden's plans to raise taxes on wealthy individuals.

The U.S. stock market dropped as the Dow Jones declined by more than 1% on April 22 in a single trading session.

Holger Zschaepitz, a market analyst at Welt, said at the time:

"OUCH! Dow plunges 400 points on fears of higher capital gains taxes. BBG reports that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. Proposal would hike capital gains rate to 39.6% for those earning >$1mln, up from 20% currently."

Veteran Crypto Investor Explains Why He Is So Bullish on Solana (and Ethereum)

On Thursday (April 22), crypto investor Adam Cochran explained why he believes that Solana could become “a top 3-5 project” and how it could even help Ethereum ($ETH) in the long run. Here are the main highlights of his comments about Solana: “Where Ethereum focuses on maximizing decentralization, trustlessness and accessibility of the state machine, Solana aims […]

Bitcoin’s Drop Below $50K and Market Cap Under $2 Trillion: The Weekly Recap

The past seven days were marked by considerable declines throughout the entire cryptocurrency market. Almost everything is in the red, with the total capitalization sliding beneath $2 trillion.

There’s no other way of putting this – the past week was bad for bitcoin’s price. It was almost all downhill. The cryptocurrency was trading in the range between $61 and $63K last Friday, but things went south quickly as the weekend started.

Sunday marked the first big drop where the price lost around $9,000 in hours, leaving a record of more than $10 billion liquidations in less than 24 hours. Over the next few days, we saw bitcoin consolidating, but unfortunately, the bulls couldn’t get the upper hand, and the market tanked once again yesterday, pushing the price below $50,000. With this, bitcoin is down about 20% over the past seven days.

The majority of the altcoins followed. However, some of the large-caps, such as ETH and BNB, performed a lot better. Ether even charted a fresh all-time high yesterday but has since declined, and it’s currently around 7% down on the week. The same is true for BNB. Nevertheless, this has resulted in a bitcoin dominance of around 50%, signaling the relative strength of altcoins in the current market conditions.

The only two cryptocurrencies from the top 20 that are currently in the green are SOL and DOGE, both up with about 30% over the last week.

Elsewhere, we saw some serious developments in terms of mass adoption. PayPal’s Venmo, a mobile payment service, enabled more than 70 million users to buy, sell, and store cryptocurrencies.

The good news didn’t stop there. WeWork, one of the world’s leading providers of shared coworking space, has also announced that it will accept cryptocurrency for payments, with Coinbase being its first major client.

Unfortunately, the strong fundamentals had no impact on the short-term price action, and the result is evident. We have yet to see how the following week will turn out in the cryptocurrency market.

Market Data

Market Cap: $1837B | 24H Vol: 301B | BTC Dominance: 50.6%

BTC: $49,834 (-19.27%) | ETH: $2,339 (7%) | XRP: $0.1.10 (-37.6%)

Bitcoin Tumbles Below $50k As Markets Respond To Joe Biden’s Tax Rise Reports. Rumors appeared that Joe Biden is ready to pass a law to increase the capital gains taxes in the United States. This might have been among the reasons for the continuous decline in bitcoin’s price most recently.

CEO of a Turkish Crypto Exchange Thodex Reportedly Runs Off With $2 Billion. Thodex, a cryptocurrency exchange based in Turkey, has suddenly stopped operating, leaving countless individuals worried about their money. The CEO has allegedly fled the country, making away with over $2 billion.

PancakeSwap Transactions Tops Ethereum But BSC Feels The Strain. The leading decentralized exchange and automated market maker on the Binance Smart Chain saw more transactions than the entire Ethereum network. However, this might also cause a strain on the BSC itself.

WeWork to Start Accepting Cryptocurrencies for Payments. WeWork, one of the leading coworking space providers globally, announced that it now accepts cryptocurrencies for payments. Its first client is the biggest US-based crypto exchange, Coinbase, which recently went public.

PayPal’s Venmo Enables Bitcoin and Crypto Purchases for 70M Users. PayPal-owned mobile payment service provider, Venmo, has allowed its 70 million users to buy, sell, and store cryptocurrency. This falls in line with PayPal’s policy to further increase its involvement in the space.

German Giant Deutsche Telekom Invests in DeFi Network Celo. One of the largest telecom companies in the European Union and, perhaps, in the whole world, Deutsche Telekom, has purchased an undisclosed amount of Celo’s native cryptocurrency. The company took part in the open-sourced protocol to participate in the “future of DeFi.”

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Cardano, and Solana – click here for the full price analysis.

Why Cryptocurrencies are Plummeting? How to Avoid Risks?

The text below is an advertorial article that was not written by Cryptonews.com journalists. On 23rd April, Bitcoin fell to 50,000 USD, reaching a record low in these few months. In only one day, Bitcoin, which once stood at a height of 64k USD, fell more than 10k USD, a drop of more than 16%. In addition to Bitcoin, other cryptocurrencies also plummeted. Within 24 hours, Ethereum plummeted by

ORBS Is Now Accessible on the Binance Smart Chain via AnySwap Cross-Chain Bridge

April 23, 2021 – Tel Aviv, Israel


The ORBS token is now accessible via the Binance Smart Chain (BSC). Hodlers can swap tokens to and from the Ethereum network. Exploring this additional blockchain allows Orbs to leverage BSC’s potential for speed, low costs and DeFi purposes.

This integration of ORBS onto Binance Smart Chain is made possible through the cross-chain bridge developed by Multichain.XYZ – a platform co-developed by Anyswap and Andre Cronje. By integrating this functionality, holders can now move ORBS to and from the Ethereum and BSC networks at their own leisure.

Given the potential for BSC in the DeFi space, support on this blockchain can unlock new use cases for Orbs. As BSC is home to near-daily launches of new projects, products and services, it is one of the more exciting blockchains in the industry today. It has a competitive edge over Ethereum – which remains the main ecosystem for DeFi – by providing faster transactions at a much lower cost.

Orbs co-founder Tal Kol said,

“While the Ethereum ecosystem is leading the pack in terms of DeFi activity and public interest, in the last couple of months we are seeing more and more DeFi alternatives growing on BSC. … We knew we had to be part of the opportunities and innovations happening in the BSC ecosystem.”

As more and more DeFi alternatives launch on BSC, it makes sense for the ORBS token to be interoperable. As Orbs is a prolific decentralized finance project with unique advantages and multiple upcoming projects under development, both ecosystems will benefit from this compatibility. With the help of cross-chain bridges – such as Multichain.XYZ – the DeFi ecosystem can continue to grow and evolve into more encompassing solutions.

Moreover, Orbs and the Binance exchange strengthened their partnership in January to promote ongoing innovation in the world of decentralized finance. They were the first core sponsors of the DeFi.org accelerator bootstrapping new projects and DeFi protocols.

Other projects being worked on by Orbs include Liquidity NEXUS – to bridge the gap between CeFi and DeFi and the Orbs DeFi portal, an aggregation service for information regarding Orbs and decentralized finance. There is also the Orbs DeFi Grant Program, which aims to foster ongoing growth among contributors developing the network and ecosystem.

About Orbs

Orbs is a public blockchain infrastructure designed for mass usage applications, offering developers a proper mix of performance, cost, security and ease-of-use. The Orbs protocol is decentralized and executed by a public network of permissionless validators using proof-of-stake (PoS) consensus.

For more information, please visit us here, or join any of our communities below.

Contact

Ran Hammer

This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.




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China Considering Bitcoin As Alternative Investment

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The Chinese government, well known for its stance against Bitcoin and cryptocurrencies in general, seems to be shifting ground. The country is considering Bitcoin as an alternative investment for the nation, according to Li Bo, Deputy Governor of The People’s Bank of China.

On a CNBC panel at the Boao Forum for Asia, Li Bo said,

“We regard Bitcoin and stablecoin as crypto assets … These are investment alternatives. They are not currency, per se. And so the main role we see for crypto assets going forward, the main role is investment alternative.”

China has been very critical of cryptocurrencies. Officials allegedly tried to ban Bitcoin, forcing its citizens to resort to peer-to-peer trading. The nation has also been working on its own central bank digital currency (CBDC) and is in late-stage development.

China’s CBDC, which has gone through different levels of testing, is now ready to be tested by foreigners. According to a CNBC report, PBoC is planning to let foreigners at the upcoming Beijing Winter Olympics experiment with the digital currency.

During the CNBC panel, Li Bo added,

“For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users but also to international athletes and like visitors.”

He added that China is not in competition with any nation and is not trying to replace the US dollar as some people speculate, but wants to build a better financial system and facilitate international trade.

Meanwhile, Silicon Valley legend Peter Thiel has warned that Bitcoin could be China’s secret weapon. Speaking earllier this month during a strategy discussion hosted by the Nixon Foundation, Thiel said the availability of several reserve currencies, such as the Chinese e-yuan and Bitcoin, could be used by China to weaken the US dollar.

Though China is considering Bitcoin as an investment, there are still concerns about the energy costs of mining. CNBC reports that the country’s inner Mongolia region plans to ban new cryptocurrency mining to cut down on energy consumption.


Ponvang Bulus is a cryptocurrency enthusiast. He writes on cryptocurrency and blockchain technology. As a believer in the glorious future of blockchain, he is helping to spread the word and get the message out there for the world to embrace the future now.

 
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Parabolic Bitcoin Price Structure In Danger: Cycle Climax Or Risky Reset?

Bitcoin price is now below $50,000 for the first time in a month, and despite the still-high prices the market is in a panic. There’s now widespread fear that the current market cycle has peaked and things will soon fall back into a bear phase.

At the same time, there’s a looming bubble about to pop, aggressive tax measures and coming enforcement from the US government, and more that’s recently taken the legs out from beneath the bull run. Is this really the cycle climax, or just time for a long overdue reset?

Bitcoin Price Action Turns Deadly Fast, Bears Blindside Bulls

Rewind to only just a week or so ago, and full blown exuberance was in the air. Coinbase Global had gone public, listed on the Nasdaq for the first time and ushering in a “new paradigm” in crypto.

Related Reading | Bitcoin Price Breakdown: Bulls In Trouble As $50,000 Is Lost

Things have certainly been going well for the asset class, garnering support from brands like PayPal, Venmo, and even Tesla. With corporations buying up what little BTC is left on exchanges – a number that has been rapidly decreasing – and expectations of more than $100,000 per coin, FOMO has been aggressive.

Dip buying at every drop has formed a parabolic price structure, that’s unfortunately at risk of breaking down.

bitcoin price parabola

A rare signal calls the top as price action falls to parabolic curve | Source: BTCUSD on TradingView.com

Crypto Cycle Climax Could Be Upon Us Unexpectedly

The chart above demonstrates just how risky the situation is right now for the leading cryptocurrency by market cap. Along with price action ready to smash through the parabolic curve just as bad news starts to come in, a rare cycle top based on Pi has appeared for only the fourth time in the asset’s young history.

Related Reading | Bitcoin Loses Important Lifeline That Got Bulls Blood Pumping

The tool has called several important tops, including two out of three that led to extended bear markets in Bitcoin. When parabolic assets break down, data suggests that they retrace a full 80% of their gains. The last market cycle saw the cryptocurrency fall a full 84% before rebounding after this signal appeared.

Another 84% drop here would take Bitcoin back to around $10,000. A retracement of that magnitude, would be shocking to all and certainly not what projections suggest. A fall of that size would also suggest a bear market, sooner than most would have expected.

bitcoin elliott wave

Could our friend Elliott Wave "hi" and save the day? | Source: BTCUSD on TradingView.com

Another theory involves Elliott Wave and says that so long as the top cryptocurrency never makes it below the January 2019 top, the foundation of the bull market is still strong and should continue once the dust settles.

Volatility is coming, so don’t get caught up in the storm that could soon ensue.

Featured image from Pixabay, Chart from TradingView.com

62 detained in Turkey a day after alleged $2 billion crypto ‘exit scam’

Turkish police have detained 62 people across eight provinces in connection to an ongoing investigation into local cryptoc exchange Thodex going dark, news agency Associated Press reported today.

On Wednesday, several reports stated that Thodex, which had anywhere between $2-10 billion worth of its users’ cryptocurrencies in custody, has abruptly stopped all operations. This caused panic among local traders who lost access to their digital assets.

The exchange published an official statement later that day, claiming that it had to suspend trading for 4-5 days for maintenance due to some undisclosed investment. However, lawyer Oğuz Evren Kılıç suggested that this could have very well been a scam.

He filed a criminal complaint to the prosecutor’s office but warned that “the legal process can take years.”

“Can we call this a ‘Turkish Mt. Gox Incident’?” he tweeted. 

Meanwhile, Faruk Fatih Ozer, the 27-year-old owner of Thodex, reportedly left Turkey earlier this week. Thodex’s lawyer, Bedirhan Oguz Basibuyuk, also stated that the exchange has been having liquidity problems lately.

“There was a decline in Thodex’s assets. When too many users demanded their money back, the company was unable to meet those,” he reportedly said.

As the situation was unfolding, Ozer published yet another statement on Thodex’s website, this time claiming that that exchange fell victim to a cyberattack and a smear campaign. Thodex CEO also claimed that he thought about “either committing suicide or giving himself up to authorities,” but ostensibly decided to return to Turkey in the end.

“So I decided to stay alive and fight, work, and repay my debts to you. The day I repay all my debt, I will return to my country and give myself into justice,” Ozer wrote.

Per AP’s report, Turkish prosecutors have also issued detention warrants for 16 more people—in addition to 62 already in custody—allegedly linked to Thodex.

The post 62 detained in Turkey a day after alleged $2 billion crypto ‘exit scam’ appeared first on CryptoSlate.

Is it Hard to Use a Hardware Wallet?

The text below is an advertorial article that was not written by Cryptonews.com journalists. Getting a hardware wallet makes Bitcoin easy Think back to the last time you bought Bitcoin. Did you finish the purchase, or did you leave your coins on the exchange wallet, with no idea who has the keys to it? Every few months, someone wakes up to find the exchange they were using was compromised,

Bitcoin God Michael Saylor Advises Holding Scarce Assets Amid Increasing Taxes

Veteran Bitcoin advocate and evangelist, Michael Saylor has weighed in on the current strain on the market and its impact on investors by advising they should invest in scarce and portable assets. Taking to his official Twitter handle, Saylor noted that the best move anyone can make amidst fears of inflation and increase in taxation is to invest in assets with proven resilience against the negative market influences.

“The rational strategy in the face of escalating inflation & taxation risk is to construct a portfolio of scarce, desirable, portable assets that you can hold forever,” He revealed in the short tweet.

In the past hours, media reports have it that United States President Joe Biden is all geared to make a new Capital gains tax proposal which will see an increment to the current rate from 20% to 39.6%. Investors are reacting negatively to this news, evident by the tumbling of the stock market.

The cryptocurrency markets are not also spared as Bitcoin leads an encompassing market dip with over $3 billion lost from the global crypto market cap according to CoinMarketCap. Bitcoin is down 9.05% to $49,640.65 while Ethereum has parred off its gains over the past few days and is trading at $2,297.86 after suffering a loss of 10.72% in the past 24 hours. The proposed tax increment is impacting the crypto market as crypto investors are also subject to similar tax provisions as other mainstream market investors.

Saylor’s Precedents Shows His Advocacy is for Bitcoin

Based on Michael Saylor’s precedents with his prominent role in leading his firm to add over 90,000 BTC to its balance sheet, Michael Saylor in his tweet is indirectly advocating for the buyup of more Bitcoin.

Prior to this time, Saylor has often tagged Bitcoin as the most reliable store of value and the worthy hedge against inflation. Through his staunch belief in Bitcoin, Saylor has succeeded in convincing Elon Musk, to bet big on Bitcoin by sharing his BTC Playbook with the latter back in

The post Bitcoin God Michael Saylor Advises Holding Scarce Assets Amid Increasing Taxes appeared first on Coingape.

Ethereum ETFs are here, building case for US approval of BTC and ETH funds

While Bitcoin may evolve to become gold 2.0, Ether-based funds could offer investors exposure to a new utility technology.

Unlike its neighbor to the south that continues to procrastinate, Canada seems to be fast-tracking crypto assets — as evident again last week in its regulatory green light for three new Ether (ETH)-based exchange-traded funds, North America’s first.

“Having an easily accessed ETF in Canada changes the competitive landscape,” Campbell Harvey, professor of international business at Duke University’s Fuqua School of Business, told Cointelegraph. The United States Securities and Exchange Commission will feel pressure to approve a cryptocurrency-based ETF soon, perhaps within months, said Harvey.

“It is increasingly hard to make the case to exclude crypto,” he further explained, adding: “Consider an institutional investor that wants a well-diversified portfolio. Of course, that portfolio would include names like Apple with $2 trillion in market capitalization. But what about crypto?”

On April 17, Purpose Investments, Evolve ETFs and CI Global Asset Management were all approved by Canadian regulators to launch Ether ETFs. That event, while viewed positively by most, still raises a few questions.

How, if at all, does an Ether ETF really differ from a Bitcoin (BTC) ETF? Would it have the same target market or the same success in assets under management as the Purpose Bitcoin ETF, for example, which has attracted 1.23 billion Canadian dollars ($983 million) since its February debut? For that matter, how significant are crypto-based ETFs as a class — are they just a halfway house on the path to widespread cryptocurrency adoption, likely to be superseded eventually by decentralized finance offerings?

Chris Kuiper, vice president of CFRA — an analytics and research company — told Cointelegraph that said both retail and institutional investors prefer to make crypto investments “in a market cap weighted manner,” so as not to try to pick winners and losers. So, an ETF for Ether, the second-largest cryptocurrency, is a plus and “would allow them to start creating this portfolio.”

But BTC and ETH could also be veering off in different directions, Kuiper added, and eventually, Ether might attract its own unique constituency. After all, “Many [investors] are starting to view Bitcoin as the monetary base layer or a gold 2.0 and even an alternative to corporate treasury reserve assets,” noted Kuiper, further explaining that for those who view Bitcoin as the “ultimate store” of value, they “want the code unchanged and for transactions to remain slow.” He added:

“Ethereum advocates, however, are looking at Ethereum’s ability for programmable contracts — i.e., smart tokens — and for all kinds of applications to be built on top of Ethereum. [...] This is a very different viewpoint and these investors may have no interest in Bitcoin, but may have a lot of interest in Ethereum exposure as a kind of new platform.”

Som Seif, CEO of Purpose Investments, also appeared to see potentially broader uses for an Ether ETF, such as a way to invest in a technology platform. He recently commented: “We’re democratizing access to Ether, making the process of owning Ether easier than ever. We believe Ether [...] is poised to continue its growth trajectory and as both an important utility technology and broader adoption as an investment asset.”

Jeff Dorman, chief investment officer of investment management firm Arca, told Cointelegraph that the majority of investors today still don’t understand — nor are they often even aware of — Ethereum and how it differs from Bitcoin. That said, the market audience for BTC and ETH exchange-traded funds are basically the same, in his view — i.e., “those who are more restricted in their ability to buy digital assets directly.” This includes financial advisors and funds with equity mandates.

Will the Ether ETF fare as well as its BTC cousin?

As noted, the Purpose Bitcoin ETF has been a huge success by most accounts. Will an Ether ETF attract anywhere near the same attention?

Kuiper expects Purpose Investments’ Ether ETF “to be successful as well in terms of garnering assets, but I would not expect it to gain the same amount of assets as their Bitcoin ETF.” Bitcoin remains crypto’s flagship currency, and even if its dominance has diminished recently, it still accounts for about 50% of the total market capitalization. Ether, in second place, trails far behind, with only 12% to 13% of the market share. One might expect roughly the same proportions to hold with its respective ETFs, said Kuiper, adding:

“If you look at something like the Grayscale trust in the U.S., its AUM for Bitcoin is over $40 billion, while ETH is a little under $8 billion — or about a fifth. So I would expect the Purpose Ethereum ETF AUM will likely level out at a quarter to a fifth of their sister Bitcoin ETF, but that should still be considered a success.”

Scott Freeman, co-founder and partner of JST Capital, told Cointelegraph: “We would not be surprised if the ETH ETFs also do well, but we expect this to be in proportion to the existing ratio of their market caps.” As for the attractions of both ETF types, Freeman said:

“There are many investors who wish to have exposure to BTC and other crypto assets but want to do it through their current broker or money manager. They’d prefer not to use a crypto broker, in other words, and that is where crypto-based exchange traded funds can help.”

Dorman told Cointelegraph that he too expects Ether ETFs to perform well, though mainly “because the equity world is starved for digital asset exposure, and this will be yet another pure play way to get exposure without breaking from traditional bank and brokerage workflows.”

Will pressure on the SEC follow?

Will the SEC soon feel compelled to answer Canada with similar approvals of its own? “The SEC doesn’t have to do anything in regards to Canada,” Kuiper told Cointelegraph, “but I think they may feel some pressure to remain competitive and start to approve or at least offer more details and guidance on a Bitcoin ETF — they now have at least applications from eight different ETF companies.”

Kathleen Moriarty, senior counsel at Chapman and Cutler LLP, told Cointelegraph: “The SEC will certainly note that Canada has listed Bitcoin and Ethereum ETFs. Given that we have relationships with Canada in the securities area, this will resonate more with the SEC than it would if a country with a new securities market listed these ETFs.” That being said, Moriarty added:

“The SEC is not privy to the facts, issues and decision making processes of the Canadian regulators and views itself as the premier global securities regulator. Therefore, it will not want to be seen to ‘rubber stamp’ a new product based on the example of another regulator.”

Harvey told Cointelegraph: “In the past, the SEC has resisted ETFs mainly because they feared manipulation of some of the price feeds from exchanges of dubious quality. I think we have enough fully regulated, liquid exchanges in the U.S. to mitigate those concerns.” This combined with a new agency chairman, Gary Gensler, who “understands the space, means that it is likely a matter of a few months before we have U.S. based crypto ETFs.”

But Gensler, who once taught a course on blockchain at MIT, might have other priorities. “Gensler is going to be very busy dealing with ESG [environmental, social and corporate governance], SPACs [special purpose acquisition companies] and market structure issues. Solving existing problems may be higher on his to do list than birthing a new complex product that could pose problems down the line,” said Moriarty, who worked with Cameron and Tyler Winklevoss on the first SEC filing for a Bitcoin ETF in 2013 — which was rejected by the agency in 2017.

Another view shared with Cointelegraph by an expert who wished to remain anonymous is that the SEC is welcoming the Canadian listings, as now it can see “in real life” how these crypto funds actually perform, whether they cause problems, and to what extent the “customer experience” is positive.

“In my experience, the U.S. regulatory bodies have never been influenced by Canada,” Dorman told Cointelegraph. “ETFs are still years away in the U.S., because most of the issues raised by the SEC in their previous rejections have not been solved.”

Another sign that crypto has arrived?

From a global perspective, though, can’t Canada’s recent Ether ETF approvals be viewed as yet another indication that cryptocurrencies are moving into the financial mainstream?

It further validates “that cryptocurrencies are here to stay,” said Kuiper, as “the market and infrastructure continues to expand.” And Harvey told Cointelegraph: “Crypto is mainstream now. The IPO of Coinbase was the watershed. We will see more and more ETFs based on other coins.”

But Harvey was more nuanced with regard to the long-term impact of ETFs: “A big reason that institutional investors have steered clear of crypto until now is the custody issue,” he said, adding: “They had no mechanism to store private keys. They did not want to bear the custodial risk. The ETFs solve these problems.” Looking further down the road, however, decentralized finance could put these funds out of business. As Harvey noted:

“Why pay the fees of an ETF when you easily hold the ‘physical’? The only problem that needs to be solved is the custody issue — and the solution to that appears to be coming.”

Dorman agreed that the main benefit of these funds is the access they provide to investors who don’t have the ability to buy and custody BTC and ETH directly. For them, “It is a worthwhile service as long as the fees are low,” but he added this caveat:

“Essentially these products are catering to traditional investor workflows rather than the opposite — which is to help investors understand and utilize the new workflows for owning and custodying digital assets. Eventually, most of these funds will be obsolete, but they are a necessary bridge for now.”

SEC Begins to Review Bitcoin ETF Proposals Under New Chief Gary Gensler

Gary Gensler New SEC lead

2021 is the year when Bitcoin ETFs may be a reality as many noted firms like Grayscale, Galaxy Digital, Kryptonian, VanEck etc. are already competing for First Bitcoin ETF in US. It is notable that SEC is on a timeline and is expected to reply with yes or no by first week of May to VanEck’s Bitcoin ETF Proposal. In a notice uploaded on SEC website dated 22nd April, 2021, SEC has already started looking into Krptonian Bitcoin ETF application.

Can Gary Gensler Finally Make Bitcoin ETF A Reality?

Bitcoin ETF applications are not new to SEC as over the years they have rejected multiple Bitcoin ETF applications. While this year, SEC is operating under leadership of newly appointed chief Gary Gensler and crypto community is expecting positive results.

Gary is pro crypto and hails from a background of strong cryptocurrency understanding as he has taught crypto courses at MIT. He is also a noted admirer of Blockchain technology and believes in cryptocurrencies as useful financial instruments.

SEC commissioner Hester Pierce has already confirmed that Bitcoin ETF will get a fresh look under Mr. Gensler’s leadership. Speaking to FOX she accepted that Canada is already leading way in Bitcoin ETF market and said,

“Frankly, Canada is ahead of us now, they not only have bitcoin exchange-traded products, but they have exchange-traded products based on Ether.”

It is to be noted that Ethereum is is currently the second-largest crypto-asset behind bitcoin with a market cap of nearly $300 billion, as tracked by Coindesk.

The post SEC Begins to Review Bitcoin ETF Proposals Under New Chief Gary Gensler appeared first on Coingape.

High-Profile Investors Are Now Buying XRP, According to Asset Management Firm CoinShares

High-net-worth investors are allocating additional funds for XRP.

In its new Digital Assets Fund Flows Report, digital assets manager CoinShares says the crypto asset is now the top-rising altcoin among its institutional investors.

CoinShares reports that $33 million has been invested in the fourth-largest cryptocurrency over the past week, increasing the coin’s year-to-date inflows to $38.9 million. The firm now manages $83 million in XRP assets. 

The London-based company also breached $64 billion in assets under management (AUM) for the first time as last week’s inflows for all digital assets reach $233 million, the highest since March.

Flagship cryptocurrency Bitcoin (BTC) saw the largest inflow of $108 million, followed by Ethereum (ETH) with $65.2 million.

“We believe this recent renewed appetite for digital assets is due to a combination of increasing acceptance from institutional investors, fears for inflation, and price momentum.”

The price of XRP crashed following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs, which owns the lion’s share of the tokens.

The cryptocurrency is facing renewed interest from investors after a massive rally this month, although it continues to lag significantly behind the recent growth of BTC and ETH.

At time of writing, XRP is trading at $1.18.

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Bitgo Chosen to Manage Seized Cryptocurrencies for the US Marshals Service

Bitgo Chosen to Manage Seized Cryptocurrencies for the US Marshals Service

The U.S. Marshals Service has published a contract showing the crypto custodian Bitgo has been chosen to manage law enforcement’s seized bitcoin acquired through criminal forfeiture. The contracted deal is $4.5 million for the storage, maintenance, and disposal of cryptocurrencies according to documents released on Wednesday.

USMS Pens a Deal With Bitgo

During the last ten years, the U.S. government has seized a substantial amount of bitcoin (BTC) and other digital assets from criminal forfeiture cases. Traditionally, the U.S. Marshals Service (USMS) has been in charge of these funds stemming from high-profile cases like the Silk Road marketplace investigation.

Since 2019, the USMS has been in search of a recruit or a custodian that can manage the crypto assets seized by the U.S. government. The government entity published another offering on April 24, 2020, for a contract worth $4.5 million.

“The United States Marshals Service (USMS) has a requirement for storage, maintenance, and disposal of seized/forfeited virtual currency,” the USMC’s original solicitation notes. “The purpose of this contract is to provide the full range of virtual currency management and disposal services. This includes but is not limited to such activities as accounting, customer management, audit compliance, managing blockchain forks, wallet creation and management, private encryption key generation and safekeeping, backup and recovery of private encryption key material, airdrops, etc., as well as future actions associated with the virtual currency forfeiture process.”

Over $4.5 Million for Managing Crypto Seized in Criminal Forfeiture

On April 21, 2021, the contract was awarded to Bitgo, the digital asset trust company and security company, headquartered in Palo Alto. The length of the contract has not been disclosed in the contract filings. Prior to Bitgo’s partnership with the law enforcement agency, the USMC, FBI, and Department of Justice handled storage and auctions.

Just recently, the department revealed it had seized over $1 billion in bitcoin from the Silk Road marketplace. The criminal forfeiture stemmed from a person dubbed “Individual X” and it is assumed that the person may be one of the rogue agents who got caught stealing bitcoin during the investigation.

The company founded by Mike Belshe and Ben Davenport in 2013 has grown a great deal since Bitgo’s inception. The firm already manages billions of dollars worth of crypto assets and is the custodian for the Wrapped Bitcoin (WBTC) project as well. The BTC held in custody for the WBTC project is approximately 156,087 BTC according to Dune Analytics stats.

The deal with the USMS may see Bitgo dealing with a significant sum of cryptocurrencies from ill-gotten gains going forward. The Palo Alto company will get $4,549,672 for dealing with the U.S. government law enforcement agency and meeting the contract requirements.

What do you think about the United States Marshals Service contracting Bitgo to manage crypto assets for the government entity? Let us know what you think about this subject in the comments section below.

62 People Arrested in Turkey, Allegedly Connected to the Thodex Exchange Heist

Shortly after launching an investigation against Turkey’s notorious crypto exchange, Thodex, the local police have apprehended 62 people in connection to the company.

At the same time, reports claimed that the founder and CEO of the exchange has vowed to refund users and return to Turkey to face justice.

62 People Arrested in Turkey

CryptoPotato reported yesterday the developments coming from Turkey in which the third-largest crypto exchange had closed its doors earlier in the week. Shortly after, the founder and CEO of the company reportedly fled the country, and some estimations asserted that he escaped with roughly $2 billion in customers’ funds.

Local authorities launched an investigation, leading to today’s arrests. The state-run Anadolu Agency reported that the police had detained 62 people in eight cities, including Istanbul.

Nevertheless, 16 people have remained at large as the Chief Public Prosecutor’s Office had issued detention warrants for a total of 78 suspects over their alleged connections to the exchange.

Furthermore, the police seized an undisclosed amount of digital materials and documents. The country’s financial crimes regulator also blocked all bank accounts based in Turkey with any affiliation to the exchange.

Is the Founder Coming Back?

As mentioned above, Faruk Fatih Ozer, the chief executive officer and founder of Thodex, had fled the country with up to $2 billion. The lawyer who filed a criminal complaint against Ozer, Abdullah Usame Ceran, alleged him with “aggravated fraud.”

However, a Bloomberg coverage stated that Ozer had released a statement from an unknown location indicating his change of plans. In it, the notorious founder of the popular exchange reportedly said he would reimburse all customers.

Furthermore, he promised to return to Turkey to face justice. Yet, Ozer failed to specify the precise date when he plans to do either.

This disturbing news for Turkish crypto investors comes amid the country’s attempts to reduce cryptocurrencies’ alleged involvement in illicit activities. Earlier this month, the government said it would ban users from employing digital assets as payment instruments starting from April 30th.

Ethereum (ETH) Breaking out to All-time Highs Will Fuel Alt-Season

Ethereum (ETH) Breaking out to All-time Highs Will Fuel Alt-Season 6
  • According to Rekt Capital, Ethereum hitting new ATHs will fuel the next phase of altseason
  • Weiss Ratings concludes that Ethereum thriving will usher in an alt-season greater than 2017’s
  • The premium on Grayscale’s Ethereum Trust has flipped back to positive
  • However, Bitcoin’s recent dip to $47k has paused the continuation of altseason
  • Bitcoin gaining a footing will be necessary for providing the stability needed for alts to thrive

Ethereum’s recent push to an all-time high of $2,644 is the fuel needed to drive the next phase of alt-season. This theory was highlighted and shared by crypto analyst @RektCapital, through the following tweet.

Current Altseason Might be Wilder than 2017’s

The team at Weiss Ratings went on to add to the theory of a new phase of alt-season through the following statement and accompanying chart.

This altcoin season looks like it might be significantly wilder than 2017. If the traditional altcoin cycle is true this time around, then we are just getting started with this move in ETH (chart by @rektcapital)

Ethereum (ETH) Breaking out to All-time Highs Will Fuel Alt-Season 4Premium on Grayscale’s Ethereum Trust Flips Back to Positive

The demand and bullishness surrounding ETH is evident in the premium of the Grayscale Ethereum Trust (ETHE) flipping back to positive. For the last two months or so, the premium had dropped into negative territory thus leading many traders to believe that institutions were no longer bullish on Ethereum.

The chart below, courtesy of Skew, provides a visual cue of the ETHE premium since January.

Ethereum (ETH) Breaking out to All-time Highs Will Fuel Alt-Season 5Bitcoin Needs to Stabilize For ETH and Alts to Thrive

As has always been the case, the key to Ethereum and altcoins thriving is Bitcoin providing the ideal environment necessary. At the time of writing, the crypto markets are a sea of red after Bitcoin fell hard from $55k levels to a local low of $47,500.

Many crypto traders are of the opinion that the dip was the result of a new proposal by President Biden’s administration to increase capital gains tax for wealthy individuals earning more than $1 Million a year. The proposal seeks to increase capital gains tax from the current 20% to 39.6%.

Bitcoin is yet to stabilize from the effects of the news. However, Ethereum has maintained a value above the crucial $2k price area and is currently trading at $2,240. Therefore, ETH still has the potential of reigniting the next phase of altseason. Caution is also advised when trading Bitcoin and altcoins using high leverage in the current market conditions.

Cardano Creator Charles Hoskinson Says US Will Not Leave Crypto Regulation in Limbo

The founder of the Cardano blockchain platform Charles Hoskinson says that further crypto regulation in the United States is virtually an inevitability.

In a new video, Hoskinson argues that the massive valuation of the crypto industry makes it necessary for regulators to evaluate the space more closely.

“There is no reality that a government as regulation-friendly as the United States government will allow an industry with a market capitalization of over a trillion dollars to be unregulated or to live in this weird gray area of enforcement.”

The Cardano creator explains that the US lacks “comprehensive regulation” on cryptocurrencies due to the political gridlock and hyper-partisanship experienced in the U.S. capital over the last half a decade.

“The only reason why we haven’t already seen comprehensive regulation in the cryptocurrency space is because of the political morass of the last five years, six years in Washington. Nothing is getting done.”

Hoskinson adds that had the Republican Party nominated a different candidate for President, such as former Florida governor Jeb Bush rather than ex-President Donald Trump in 2016, the U.S. would have rolled out cryptocurrency regulations by the end of 2018.

“If we had a different Republican President in 2016, there would have already been regulation. Trump was just an anomaly and had different priorities and focus. And as a consequence, they didn’t get around to it.

If it was Jeb Bush or someone else, regulations would have been passed in the first two years while the Republicans maintained control over the House and the Senate.”

The Cardano creator now expects President Joe Biden’s administration to include cryptocurrency regulations in a piece of legislation meant to raise taxes.

“[After corporate tax increase legislation] the very next thing they’re probably going to go after is a tax increase for individuals, not corporations. And it’s very likely that they’re going to push cryptocurrency regulation in that bill as a consumer protection package.”

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Leaked Nvidia RTX 3080 Ti GPU shown mining Ether at 118 Mh/s

Leaked screenshots of the latest Nvidia GPU mining Ether at full power leaves gamers worried and miners rubbing their hands.

Nvidia’s RTX 30 series of graphics cards have been subject to unending speculation, rumors and even ridicule since the firm first announced it would ship its latest GPU’s with a built-in Ether (ETH) mining limiter.

A series of missteps saw the mining limiter on Nvidia’s RTX 3060 card first undone by crafty hackers and then completely removed by one of Nvidia’s own driver updates.

The latest in a series of leaks now suggests Nvidia’s next major GPU release — the RTX 3080 Ti — could be shipped without a cryptocurrency mining limiter at all. Leaked screenshots first uncovered by VideoCardz.com show the 3080 Ti mining Ether with a hash rate of 118.9 megahashes per second — that’s more than quadruple what the hamstrung cards were originally supposed to be capable of.

It’s worth noting that there has been no confirmation that the GPU in the screenshots is the same one that Nvidia is prepping for release. The leaked model could be a model still around from before the company decided to implement its mining limiters. 

Also, Nvidia’s previous missteps in releasing its anti-crypto cards have led to the company considering a complete overhaul of its 30 series range, so the performance of the card in question may not necessarily be representative of the one that is expected to hit shelves in May.

With a prospective hash rate of 118.9 MH/s, the RTX 3080 Ti stands to be a very profitable card for Ether miners, even in Western nations.

China’s average electricity costs round out at $0.08 per kilowatt-hour per household, meaning the GPU would stand to return profits of around $378 per month, or $4,611 per year.

In the United States, where electricity averages at around $0.13/kWh per household, the card would still return healthy profits of $4,488 per year, or just over 2 ETH based on current prices. The GPU is expected to cost around $999 upon release, however, another mad rush by cryptocurrency miners could see demand outstrip supply once more, again resulting in a higher price.

Cointelegraph Consulting: The post-genesis state of the Fei Protocol

Despite the differences in investment behavior, both retail investors and whales were quitting Fei actively after the genesis event.

Following the Fei Protocol falling short of expectations at the beginning of April, much ink has been spilled on the doomed design of the FEI stablecoin and the possible ways to recover. Covalent’s latest findings in Cointelegraph Consulting’s biweekly newsletter adds up to the discussion by taking a closer look at how the Fei Protocol post-genesis drama unfolded, by the numbers.

Three weeks ago, Fei Protocol raised 639,000 Ether (ETH) worth roughly $1.3 billion at the end of the genesis event. The data reveals that the event attracted 17,567 unique users, but it turned out to be heavily dominated by whales. Indeed, 241 addresses, each holding more than $1 million, collectively contributed 63% of the total ETH genesis value.

Retail investors holding $500–$5,000 in their wallets represent the largest group in terms of the number of contributors, making up 43% of contributors, but only 1.24% of contributions. The third-largest group by the number of contributors had 2,667 investors, who collectively contributed less than $1 million.

The data suggests that despite the modest contribution of investors with less capital in their wallets, they allocated larger fractions of their portfolios for FEI. The whales, meanwhile, bet on the Fei Protocol less heavily. 

Was demand short-lived?

Fei Protocol introduced a new stablecoin, FEI, which uses a dynamic burning mechanism to maintain the correct peg. To put it simply, the crucial feature of the protocol is that it incorporates a system that prevents users from selling FEI when the stablecoin is trading below the peg. The protocol has launched a decentralized autonomous organization with TRIBE governance tokens.

Fei Protocol’s genesis triggered excessive demand in the market as a result of the two entwined factors of the bonding curve design and the TRIBE governance token airdrop. Many users were hoping for quick returns, so they tried to buy FEI for a price below the peg while also receiving TRIBE tokens as a reward. However, the users who bet on the long-term development of the project were also allowed to pre-swap any percentage of their Fei genesis allocation for TRIBE.

Larger participants who exchanged their genesis allocation of FEI for TRIBE acted differently than smaller-sized addresses. The data shows larger contributors opted to receive about double the FEI/TRIBE when compared to the smaller-sized addresses. Whales were hungry for the protocol governance tokens, and they got what they wanted.

Almost three weeks after the Fei genesis event, the data suggests a decrease in value held by genesis participants in each group. Despite significant burn penalties, the genesis addresses are no longer holding the tokens, providing liquidity with them or staking them. 

All groups sold between 40% and 60% of their genesis value for a total decrease of 56%. The users holding $100,000–$500,000 in their addresses turned out to be the biggest contributors to the post-genesis FEI sell pressure, with roughly 65% of their genesis value sold.

Notably, the group with the smallest wallet size came second in quitting the protocol. Overall, the users with less capital (groups 5 to 10) were more likely to stop holding FEI than whales (groups 1 to 4).

Circling back to the comparison between FEI genesis contributions and user wallet size, a post-genesis comparison reveals that since the very beginning, FEI has struggled to restore the peg, while TRIBE has gone off the rails at $1.33, down 43% from its peak on April 4. 

After almost three rocky weeks for the Fei Protocol, the total value held by genesis participants has decreased significantly. What is important is that the distribution has stabilized relative to wallet size, so there are not as many clear outliers as during Fei genesis.

Notably, Fei Protocol raised $19 million in March from major industry venture capital firms, including A16z, Framework Ventures and ParaFi Capital, among others. The last two weeks also saw many fundraising rounds for DeFi projects, which raised roughly $31 million among seven rounds.

However, with roughly $245 million raised in 10 VC funding rounds across the blockchain industry in total, just one deal made up 49% of the total capital allocated. Overall, these two weeks saw a decrease in VC funding influx, down 43% compared to the previous two-week period.

Other factors overshadowing the Fei drama

As for the trends driving the evolution of the digital asset industry, Coinbase stole the show last week by going public through Nasdaq on April 14. With the shares’ opening price 1.5 times higher than the reference price for listing, the crypto exchange outstripped traditional exchanges like ICE and Nasdaq by market capitalization on the first day of trading. Yet the debut turned out to be rocky, and the discussion around Coinbase management offloading their shares added fuel to the fire.

The race for registering a Bitcoin (BTC) exchange-traded fund in the United States has stalled as the Securities and Exchange Commission is reviewing applications. Meanwhile, the Bitcoin ETF by Canada-based 3iQ went live on the Toronto Stock Exchange. Canada also went all-in on Ether (ETH) ETFs as regulators approved three ETFs by Purpose Investments, Evolve ETFs and CI Global Asset Management.

Read the full newsletter edition here for more news and signals, complete with detailed charts and images.

Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Covalent, the newsletter dives into the latest data on social media sentiment, on-chain metrics and derivatives.

We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

How do I go About Getting Samecoin, SameUSD and SameEUR?

Samecoin’s ecosystem of stable payment methods of online transactions and more present a number of benefits for both businesses and customers. But you might be wondering how to get hold of them. Let’s have a look.

The difference between Samecoin and SameUSD or SameEUR

Firstly, it’s important to understand the main difference between Samecoin and its family of stablecoins so that you can understand how getting hold of them varies.

The entire ecosystem is powered by the Samecoin utility token, whereas the stablecoins such as SameUSD and SameEUR are the spendable currencies which have tons of benefits for payments and transactions.

How to get hold of Samecoin

As the utility token that powers the rest of the ecosystem, access to Samecoin tokens is limited to fundraising sales and a few other methods.

You can buy Samecoin from the Samecoin Protocol and other investment drives. Samecoin is also rewarded for continued use of the SamePay payment platform.

You can generate more Samecoin as savings or rewards when you stake Samecoin on SamePay. There are also Samecoin available that have been pre-mined and can be purchased via the Samecoin IDO and IEO.

How to get hold of SameUSD and other stablecoins

The easiest way to get SameUSD or other stablecoins like SameEUR is by minting them directly from samecoin.com or via the upcoming SamePay app. All you have to do is deposit another stablecoin to get the relevant amount in SameUSD back. And because of SameUSD’s stable nature, you won’t have to worry about huge fluctuations in price on a day to day basis, any more than you’d have to worry about your USD being worth more or less in a few days time.

SameUSD can be bought directly from SamePay using a debit card or other currencies like Bitcoin.

Another innovative way to get more SameUSD is by referring a friend to the system, both of you will get an amount of SameUSD—so help Samecoin and yourself by spreading the word.

You can also swap other BSC or ETH cryptos for SameUSD on DEXs.

To get other stablecoins like SameEUR, the process is exactly the same. Simply mint SameEUR or purchase it with other fiat or crypto.

There are a huge number of benefits for holding and using SameUSD, like much more straightforward and affordable online payments, a stable value and cashback opportunities. More stablecoins will be introduced to the market soon, tied to other fiat currencies—opening up a world of payment opportunities for people across the planet.

So if you want to get more SameUSD, you’ve now seen plenty of options which you can make the most of. Getting SameUSD is easy, and while getting more Samecoin utility tokens might have more limited opportunities, it’s still relatively easy to do that, too. Samecoin will be listed in various centralized and decentralized exchanges in the near future.

Samecoin is the future of the online payment landscape. So start building your Samecoin portfolio as soon as you can.

Torum Closes Million Dollars Private Round to Create Social Media Platform With NFT and DeFi

PRESS RELEASE. Torum, a social media platform specially designed for cryptocurrency users, is proud to announce that the project is now backed by some of the most promising VCs in the crypto industry.

The $1.45M private round was participated by 13 private investors which consist of AU21 Capital, Momentum 6, Lotus Capital, Consensus Lab, Redline Blockchain Capital, Waterdrip Capital, Angel One, Hotbit, Oasis Capital, N7 Labs, Skywater Capital, IDC and Worshipper Capital.

Social Media + DeFi + NFT on Binance Smart Chain

Based on Binance Smart Chain, Torum seeks to build the first crypto social media platform that is fully integrated with NFT and DeFi functionalities. In short, crypto addicts can stay connected with one another and gain access to every crypto-centric service on Torum.

With the resources and connection from its VC team, Torum is able to venture into NFT and DeFi spaces and introduce innovative use cases continuously to the crypto industry.

Re-define Crypto Social Media

Launched on the 1st of July 2020, Torum emphasizes gamification elements and token utility to bring the best crypto social experience to the crypto space. In future, Torum strives to become the adoption bridge that connects the general public into the crypto industry.

XTM, the native token of Torum that is obtained as part of the ecosystem incentive can be used in at least 10 different purposes, including gift purchase, content boosting and NFT trading. The revenue generated by the ecosystem will be redistributed back to the Torum community through various gamified methods designed by the team.

 

About Torum

Torum is a social media platform that is specially designed for cryptocurrency users. Placed in the top 50,000 Alexa Rank, Torum has become one of the most popular hangout spots joined by over 29,000 crypto addicts from every corner of the world.

For Contact:

Jayson Tan, CMO

Email: hello@torum.com

Community: https://t.me/torum_official_group_en

Official Website: https://torum.com

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Hong Kong business turns to BNB and XRP payments amidst coronavirus slowdown

Don’t be waiting with your credit card or fiat cash if you happen to be dining at Japanese fusion restaurant Okra in Hong Kong. The business is now accepting Binance Coin (BNB), Binance USD (BUSD), XRP, Bitcoin (BTC), and Ethereum (ETH) as it grapples with the ill effects of the ongoing coronavirus pandemic, reported local outlet SCMP today.

Cryptocurrencies aren’t exactly an alien concept amongst Hongkongers. Many of the city’s youngsters turned to Bitcoin as a means of protest in 2019, stating they were taking financial affairs in the absence of government stability.

Why BNB, BTC, and others?

Max Levy, chef-owner at Okra, explained to SCMP that poor business due to the coronavirus—restaurants were not allowed to operate under full capacity—was the reason behind turning to crypto payments.

“The main thing that I saw last year through the pandemic was traditionally most restaurants and most small producers don’t have any savings,” said Levy, adding that keeping the savings in cryptocurrency meant he could capture the ‘high rewards’ while accepting the risks.

“If we were keeping just a small amount of our revenue, even if it’s just 1 percent of our monthly revenue, in some form of crypto, then yes, it’s a risk that the cryptocurrency could go down, but it’s also a possible high reward even if those currencies go up just 3 or 4 per cent,” he further stated.

Embracing crypto fees (and volatility)

The move seems to embrace the notorious volatility of cryptocurrencies, rather than run away from it. At the time of this writing, Bitcoin and Ethereum are down by nearly 10% each, making them a not-so-good asset for being effective as a widespread payment tool.

But it’s not just the promise of high returns that attracted Levy to crypto payments. He stated a recent poor experience with a bank—the restaurant lost access to its account for over a week—was the bigger reason behind the move.

In addition, as the SCMP noted, the bank suggested Levy to make transactions over the counter—with fees of $6 per transaction—instead of fixing the issue immediately, which contributed to the chef’s decision to accept cryptocurrencies.

But fees on Bitcoin are comparable (if not more), while those on Ethereum run over $50. BNB, XRP, and BUSD are a saving grace in that regard, with a fee of just a few cents per transaction.

The post Hong Kong business turns to BNB and XRP payments amidst coronavirus slowdown appeared first on CryptoSlate.

Norway to start digital currency tests after four years of research

The Norwegian central bank aims to find a preferred CBDC solution through new technical tests.

The Norwegian central bank, Norges Bank, is set to test various technical solutions for a central bank digital currency following years of research.

Norges Bank officially announced Friday that it will be conducting CBDC tests over the next two years upon recommendations from an internal working group. “The working group is of the opinion that the motivation for research into CBDCs has been strengthened. Many central banks are in the process of carrying out similar research, and several are already under way with technical testing,” the central bank stated.

According to the announcement, Norges Bank has been involved in CBDC research for the past four years.  

“Central bank cash provides the payment system with a number of important attributes that may be relevant to retain and develop further by issuing a CBDC. Additional knowledge is necessary for us to be able to decide whether issuing a CBDC is appropriate,” governor Øystein Olsen said.

As previously reported by Cointelegraph, Norges Bank considered launching its own national cryptocurrency back in 2018 in order to “ensure confidence in money and the monetary system.” 

Norway initiated CBDC research due to a massive decline in cash usage. The Scandinavian nation is considered to be the world’s most cashless country with only 4% of the country’s payments conducted with banknotes and coins.

Countries the world over are stepping up their efforts to develop national digital currencies. Earlier this week, the Bank of England officially announced the beginning of preliminary CBDC studies that could result in the creation of a digital pound.

Keep Calm, Bulls Are Here, Say Analysts, As USD 19B Liquidated In One Week

Options expiring, US tax speculations, China blackout, and the combination of these are blamed for the crypto market turning bloody today, to say the least - yet numerous insiders see this as just a necessary correction and expect that the bull market will continue, with bitcoin (BTC) possibly recovering above USD 60,000 again. At 12:22 PM UTC, BTC is trading at USD 49,991 and