Crypto Guides, Knowledge & Insights

Russia Developing Sandbox for Cross-border Crypto Payments

An institute facilitating Russian exports is now working on the establishment of a sandbox for international crypto payments, local media reported. The goal is to identify potential regulatory and technological challenges for settlements with digital assets.　　Russia Prepares to Test Crypto Payments for Exports in Dedicated Sandbox　　The Russian Export Center (REC), which is a state-run institute tasked to support Russias exports, is now considering the employment of digital currencies as an alternative approach to international settlements under sanctions.　　The organization believes that setting up a “cross-border digital sandbox” is a promising initiative. The project will aim to create opportunities for fintech companies to process payments using digital financial instruments on behalf of Russian exporters and importers.　　Settlements in cryptocurrencies represent an alternative payment system, which will develop incredibly quickly now, according to Veronika Nikishina who heads the REC. Speaking at the St. Petersburg International Economic Forum, she elaborated:　　As a development institution that captures all current trends, we are now closely studying the possibility of becoming a digital sandbox to pilot the use of cryptocurrencies in cross-border payments.　　Quoted by Tass, Nikishina added that the institute has already gathered representatives of fintech firms and regulatory bodies and is closely collaborating with the Central Bank of

2022-06-16Deep Dive

Bill Gates Lambasts NFTs

Microsoft co-founder Bill Gates recently opined that non-fungible tokens are a “greater fool theory” type of investment.　　Gates sarcastically remarked that people who spend a fortune on pictures of apes would be able to make the world a much better place.　　The NFT bubble has predictably burst in the aftermath of the recent market correction, with the floor price for a Bored Ape Yacht Club recently plunging to the lowest level since last August. The cost of entry has plunged by almost 80% within just two months, with investors who bought the red-hot NFT pictures at much higher being left in the dust.　　Other popular NFT collection, including e CryptoPunks, have also plummeted in value.　　While NFTs have attracted plenty of endorsements from celebrities, some prominent personalities chose to dismiss them at their peak popularity. For instance, Canadian actor Keanu Reeves found the idea of paying tons of money for artworks that can be easily reproduced laughable.　　Gates‘s skepticism comes as no surprise given that he has been a long-time cryptocurrency critic. Back in May 2018, the billionaire claimed that he would be willing to short Bitcoin if he could. It seems like Gates hasn’t warmed up to cryptocurrencies given that he bemoaned their lack

2022-06-16Deep Dive

Brazil’s New Proposal Seeks to Recognize Bitcoin, Crypto as Legal Financial Assets

While it‘s still early to speculate if Brazil is following in El Salvador’s footsteps, the latest proposal demonstrates the country racing towards meaningfully regulating the crypto industry as adoption reaches a pivotal stage.　　The latest bill, presented by Federal Deputy Paulo Martins on June 10, seeks to add Bitcoin (BTC) and other cryptocurrencies as a payment method.　　The detailed legislative proposal is an addition to the countrys existing law – Article 835 of the Civil Procedure Code.　　While the proposed addition will not necessarily make crypto legal tender in the country, it will help the asset class to be used as a financial asset for various purposes, including means of exchange or payment, or instrument of access to goods and services or investment.　　The bill is headed to the South American countrys legislators, who will now hold discussions before the additions are passed by the Senate and are signed into law by the president.　　The focus will also be on protecting users private keys as well as providing new powers and limitations that Brazilian courts would possess if crypto is recognized as a financial asset. This includes actions such as freezing exchange accounts.　　Brazil is one of the hottest crypto markets in Latin America, and the

2022-06-16Deep Dive

Bitcoin Remains Steady as Fed Announces Biggest Rate Hike Since 1994

The U.S. Federal Reserve has hiked the benchmark interest rate by 75 basis points, which marks the biggest increase since 1994.　　Bitcoin, the worlds largest cryptocurrency, is changing hands at $20,889 on the Bitstamp exchange. The largest cryptocurrency briefly spiked by more than 4% on the news, but it then instantly erased those gains.　　The U.S. dollar index has spiked to 105.79 following the announcement.　　The Fed was widely expected to hike rates more aggressively after the consumer price index (CPI) recorded a year-over-year increase of 8.6%, which was a significant upside surprise for the market.　　The central banks increasingly hawkish policy is generally believed to be the main headwind for risk assets like Bitcoin.　　In its statement, the Federal Open Market Committee (FOMC) stated that it remains committed to cooling inflation, signaling a faster pace of rate increases. The rate is now expected to rise to 3.8% next year. Futures on the federal funds rate are pricing in another 75 basis point hike in July.　　Central bankers see inflation dropping to 5.2% at the end of 2022 and eventually approaching the 2% target in 2023.　　During a press conference, Fed Chairman Jerome Powell said that the central bank had the necessary tools to restore price stability.

2022-06-16Deep Dive

BlockFi fined $943,000 for not registering securities in Iowa

Cryptocurrency trading and lending platform BlockFi has been fined $943,000 by the Iowa Insurance Division for failing to register securities in the state and offering and selling securities in Iowa without being registered as a broker-dealer or agent, according to a June 14 press release.　　The order was released after the conclusion of a multi-state investigation conducted by the U.S. Securities and Exchange Commission (SEC) and securities regulators from 53 jurisdictions, that were part of the North American Securities Administrators Association (NASAA).　　According to the press release, BlockFi will also pay settlements of $50 million to the SEC and another $50 million to the 53 investigating jurisdictions. The company has also been ordered to cease and desist from making false claims regarding securities.　　Iowa Insurance Commissioner Doug Ommen said in the press release:　　“While innovations, like cryptocurrencies, may provide for growth and evolution in the financial system, it is important that regulators ensure this occurs within an appropriate framework that protects investors while still facilitating responsible capital formation.”　　The investigation found that BlockFi offered and sold unregistered securities and misrepresented the risk level in its loan portfolio. In various website posts, BlockFi claimed that its institutional loans were “typically” over-collateralized, which was found to be

2022-06-15Deep Dive

Bank of America: 90% of US Adults Surveyed Plan to Buy Crypto in 6 Months

A new Bank of America survey shows that out of more than 1,000 U.S. adults, 90% plan to buy crypto in the next six months. Moreover, nearly 40% of respondents revealed that they use cryptocurrency as a means of payment.　　Bank of Americas Crypto Survey　　Bank of America (BOA) analyst Jason Kupferberg shared his crypto outlook in an interview with CNBC Monday. He was asked about a recent Bank of America survey that showed sustained interest in cryptocurrencies.　　The analyst explained that the survey was conducted early this month, which was after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He added that over 1,000 U.S. adults participated, noting that the sample size was “pretty significant.”　　Kupferberg opined:　　“It was interesting to see that 90% of respondents said they do plan to buy some amount of crypto in the next six months.”　　He continued: “That was actually the same percentage who reported having actually bought some crypto over the prior six months.”　　In addition, 30% of all respondents said they do not plan to sell their crypto in the next six months.　　Using Crypto as a Payment Method　　The Bank of America survey also examines whether consumers expect to pay for goods and services with bitcoin or

2022-06-15Deep Dive

Following LUNA-UST Crash: South Korea’s Top Crypto Exchanges to Establish a Joint Consultative Body

The five leading cryptocurrency exchanges in South Korea – Upbit, Bithumb, Coinone, Korbit, and Gopax – will reportedly set up a joint consultative body that will oversee the local digital asset market, scheduled to go live during the second half of 2022.　　Trying to Prevent Another Accident Like Terra　　A local media revealed that Koreas major platforms will join forces to grant additional protection for crypto investors. They vowed to sign a business agreement and then launch a joint consultative body to improve the regulatory standards in the space. They will also create a communication channel where victims and affected companies could address arising issues.　　The consultative body will be divided into three areas: transaction support, market monitoring, and compliance monitoring. The first action is scheduled for September this year, when the exchanges will prepare a virtual currency warning system and delisting standards. Additionally, the companies will provide valuable information, including evaluation reports and white papers.　　If there are any indications that certain cryptocurrency projects are related to money laundering activities or they pose a threat to the financial system, investors will receive a warning.　　In October, the platforms plan to introduce guidelines for listing screening. They will also periodically check the possible risks in

2022-06-15Deep Dive

Sequoia Capital Launches Two New Funds to Expand Web3 Investment

Global venture capital and growth investor Sequoia Capital has announced the launch of two new funds – a $2 billion early-stage venture, and growth product for India as well as an $850 million dedicated one for Southeast Asia. The focus will also be on the Web3 ecosystem.　　Sequoia has ambitious plans for the region and aims to “double down.” It currently operates several programs, including Surge and Spark. While the former supports very early-stage firms, the latter offers fellowship to female founders other than venture and growth investments.　　The official blog post wrote, “This fundraise, which comes at a time when markets are starting to cool after a very long bull run, signals our deep commitment to the region and the faith our Limited Partners have in the long-term growth story of India and Southeast Asia.”　　Sequoia India and Southeast Asia happen to be the most prolific investors in the region, but the unveiling of the two funds comes as a positive development amidst the increasing pessimism in the financial market space.　　While observing the emergence of a “thriving” Web3 ecosystem and new waves of innovation in markets like Vietnam, Philippines, Thailand, and Malaysia, Sequoia Southeast Asia aims to continue to invest actively at

2022-06-15Deep Dive

Coinbase Lays Off 1,100 People In Preparation For Prolonged Bear Market

It has already been a challenging couple of months for the crypto sector and nobody is feeling the heat more than crypto-related employees who have been dropping like flies in recent weeks.　　After initially freezing hiring, Coinbase has become the latest company to lay off workers as the market sees difficult times. The company is trimming 18% of its workforce, which equates to over 1,000 employees.　　Coinbase Anticipates Extended Crypto Winter　　According to a Tuesday blog post penned by Coinbase CEO Brian Armstrong, the company is reducing its headcount by 18% in an effort to remain healthy in the difficult macroeconomic environment.　　Armstrong noted that the company expanded too quickly during the bull market and had “overhired”. The Coinbase workforce grew from 1,250 employees at the beginning of 2021 to around 5,000. The company is now letting go of 1,100 of these employees, according to a filing with the U.S. Securities and Exchange Commission.　　The layoffs are expected to help the business endure the fast-approaching global recession, which “could lead to another crypto winter, and could last for an extended period.”　　The outgoing employees will be notified of their fates through their personal emails, the CEO posited, as the company had limited their access to Coinbase

2022-06-15Deep Dive

Crypto Market stays Bearish up to Q2 in 2022: Can traders make profits in the bear Season?

By: Damian Okonkwo　　The year 2022 has proved to be an unprecedented feast for the bears in the crypto market since the history of cryptocurrency. Bitcoin for instance had been trapped below 30K consistently for the past six months marking the first half of 2022. Historical records have shown that this is the first time Bitcoin had remained below a given range for more than six months. This bearish dominance, had caused the greatest number of liquidations for crypto traders this year - who severally forecasted a breakout for Bitcoin above the current range but were disappointed to be caught up on a false breakout. More than 120Billion investments have been recorded as the amount lost by traders who got liquidated from their longing positions in the market this year alone. Spot traders who considered Crypto trading as an investment have seen their portfolio return to dust; with more than 80% loss of value. This has pushed many newbies to raise the question: Can one make profits in the bearish Seasons？ Well, this article has responded positively to the foregoing contention while elaborating on the possible ways to make profits during the bear season.　　How can one make profits from crypto trading

2022-06-14Deep Dive

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