Crypto Guides, Knowledge & Insights

Cryptocurrency trading booms in Kenya

By: Damian Okonkwo　　The use of Cryptocurrency has become increasingly popular in Kenya marked today as the 7th largest country in Africa. The majority of the adult population are increasingly embracing crypto trading across various exchange today.　　According to Finders report on cryptocurrency adoption carried out in 27 different countries globally in January 2022, Kenya was found to rank as the 12th country in the crypto adoption rate. However, a recent study showed that the rate of cryptocurrency transactions carried out in Kenya in the last three months has increased drastically.　　According to the survey, over 9.7% of Kenyan citizens have been exposed to cryptocurrency transactions with an estimated 5 million people owning cryptocurrency. Similarly, the Bitcoin ownership rate in Kenya remains above the global average of 39.1%, with 51.2% confessing they own cryptocurrency.　　Is cryptocurrency trading legal in Kenya today？　　Even though cryptocurrency trading has not been officially legalized in Kenya yet it is not in any way considered illegal to buy cryptocurrency in Kenya, as the Kenyan government has not criminalized it.　　However, the Central Bank of Kenya (CBK) had always warned citizens to stay away from Cryptocurrency trading saying it still does not support cryptocurrency due to the risks involved in it.

2022-06-06Deep Dive

Tesla CEO Elon Musk Has 'Super Bad Feeling' About US Economy

Elon Musks Bad Feeling About the U.S. Economy　　Tesla CEO Elon Musk said he has a “super bad feeling” about the U.S. economy in an email to executives seen by Reuters.　　The email, titled “pause all hiring worldwide,” was sent two days after Musk told staff to return to the workplace or leave. He also said he needs to cut about 10% of staff at his electric car company.　　Musk has recently warned that the U.S. economy is either already in a recession or is headed towards one. However, the billionaire CEO of Tesla and Spacex believes that a recession is “a good thing,” stating: “It has been raining money on fools for too long. Some bankruptcies need to happen.” He also estimated that the recession will last between 12 and 18 months.　　Morgan Stanley analyst Adam Jonas believes that Musks concerns should be heeded, elaborating:　　Elon Musk has a uniquely informed insight into the global economy. We believe that a message from him would carry high credibility.Biden Responds to Elon Musk‘s Comments　　On Friday, President Joe Biden responded to Musk’s “super bad feeling” comment about the U.S. economy.　　“Well, let me tell you, while Elon Musk is talking about that, Ford is increasing their investment overwhelmingly,”

2022-06-06Deep Dive

SEC Launches Game-Show Campaign to Educate Investors in 'a Playful Way'

SEC Debuts ‘Game Show-Themed Public Service Campaign’　　The SECs Office of Investor Education and Advocacy unveiled “a game show-themed public service campaign” last week. Titled “Investomania,” the campaign aims “to help investors make informed investment decisions and avoid fraud.”　　The campaign features a 30-second TV spot, interactive quizzes, and 15-second informational videos on crypto assets, margin calls, and guaranteed returns, the SEC detailed, elaborating:　　The campaign encourages investors to research investments and get information from trustworthy sources to understand the risks before investing.　　In the TV spot, the game show host asks two contestants to pick a square on a video game board with investment options. They included internet rumors, celebrity endorsements, stock tips from your uncle, crypto to the moon, fear of missing out (FOMO), meme stocks, tulip bulbs, guaranteed returns, and timing the market.　　One of the 15-second videos was about investing in crypto. In the video, a celebrity encourages investors to take their advice and buy crypto assets.　　The SEC described:　　After the contestants make their choices, the video shows, in a fun and comedic way, the consequences of a good or a bad choice.　　“Sometimes investing may look and feel like a game,” the SEC noted. “Our ‘Investomania’ public service campaign uses a game

2022-06-06Deep Dive

Long-Term Correlation Between Bitcoin and Wall Street Waned as BTC Has Better Returns (Report)

Prior to the pandemic, Bitcoin appealed to many as an inflationary hedge due to its low (near zero) correlation with traditional assets such as stocks.　　However, in recent times, the narrative has taken a 180° turn, owing to macroeconomics shifts. According to a report by 21Shares, Bitcoin and the S&P 500 moved in sync, with their correlation rising to an all-time high of 0.69. This bred uncertainty in the usefulness of crypto assets in portfolio diversification.　　Bitcoin Correlation to S&P 500 Lower in the Long-term　　While it does not dispute the coupling of crypto and traditional assets, 21Shares shows that this is only a short-term event. In its sixth issue on the “State of Crypto,” the company noted that the two asset classes move on distinct paths in the long term.　　Additionally, the report showed that at 0.07, there is almost no correlation between Bitcoin and gold. From this, 21Shares concluded that the two assets present “unique diversification resources for investors portfolios.”　　As for returns, many crypto players focus on the timing of their investments, seeking a suitable period when returns will be highest. Crypto investments have been impacted by events such as the downfall of the Terra ecosystem, Fed interest rate hikes, and the

2022-06-06Deep Dive

US Regulator: Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021

The U.S. Federal Trade Commission (FTC) has revealed that more than 46,000 people have reported losing over $1 billion in cryptocurrency to scams since the beginning of last year.　　FTC Says Scammers Stole Over $1 Billion in Crypto　　The U.S. Federal Trade Commission published a “Data Spotlight” report on crypto scams Friday. The FTC is the only federal agency in the country with both consumer protection and competition jurisdiction in broad sectors of the economy, the regulators website describes.　　Emma Fletcher, senior data researcher at the FTC, wrote:　　Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams – thats about one out of every four dollars reported lost, more than any other payment method.　　Specifically, $680 million in cryptocurrency fraud losses were reported in 2021. In the first quarter of this year, the losses due to crypto fraud amounted to $329 million.　　The researcher added that the median individual reported loss is $2,600, noting:　　The top cryptocurrencies people said they used to pay scammers were bitcoin (70%), tether (10%), and ether (9%).　　The regulator further explained that nearly half the people who reported losing crypto to a scam since 2021 said it started with “an ad, post, or

2022-06-06Deep Dive

Goldman Sachs Survey Indicates Insurers Slowly Warming to Crypto

In its latest survey of the insurance sector, Goldman Sachs has, for the first time, included questions related to cryptocurrencies. The replies of top global asset managers show that theyre slowly recognizing crypto assets as investments.　　The adoption of digital assets by insurance sector investors has been a keenly watched space. In December 2020, MassMutual Insurance Company invested $100 million in BTC.　　Interest of Asset Managers in Crypto　　The report observes that although very small, the level of interest among insurers in cryptocurrencies is growing.　　“The vast majority of insurers are not considering investing in cryptocurrencies. American insurers are slightly more interested, with 11% currently invested or considering investing in cryptocurrencies, compared to Asian insurers at 6%, and European insurers at 1%. However, this level of interest is still notable,” the survey report said.　　The Goldman Sachs Asset Management Insurance Survey 2022 has inflation, investment uncertainty, yield enhancement, and Environment Social and Governance (ESG) as the themes. The survey involved 328 CIOs and CFOs, who represent over $13 trillion in global balance sheet assets, which is about half of the global insurance industry.　　How Crypto Fared in the Survey　　The survey asked the respondents to mention three asset classes that they think would deliver the highest returns

2022-06-06Deep Dive

Central African Republic to tokenize natural resources

The Central African Republic is stepping up its blockchain adoption with a new announcement from the president revealing that the country will tokenize access to its natural resources.　　President Faustin-Archange Touadéra posted the statement announcing these latest developments on his official Twitter account. The announcement explained that this is the next step for Project Sango, which the country had earlier announced.　　Part of the statement reads:“We are giving everyone access to the riches of our land. In other words, we are transforming them into equally valuable and important digital assets through an unprecedented new administrative, economic movement.”　　Additionally, the president has directed the parliament to prepare a strategy that will create investment opportunities.　　This is in the buildup to the country‘s Project Sango, launched in May. International bodies like the World Bank and IMF have criticized the country’s Bitcoin adoption move. However, the government appears to be sticking to its guns.　　Meanwhile, Project Sangos website claims that the World Bank has approved a $35 million development fund for the project.　　CAR is blessed with abundant natural resources, including petroleum, copper, rhodium, and diamonds. It also has other minerals like cobalt, manganese, gold, and limestone.　　But the country is one of the poorest and least developed nations despite

2022-06-06Deep Dive

CBDCs To Kill Private Cryptos, Indian Central Bank Warns

The Indian Cryptocurrency market has been dealing with many restrictions lately. Finance Minister Nirmala Sitharaman announced the 30% tax over the profit made from the digital assets trading in this year‘s Union Budget. However, she also mentioned the launch of the Central Bank Digital Currency (CBDC) backed by the government. Meanwhile, Deputy Governor of the Nation’s Central Bank has laid a warning for the private crypto tokens.　　RBI maintains negative stance　　Rabi Sankar, newly appointed Deputy Governor of the RBI mentioned that the launch of CBDC might eliminate the logic of private cryptocurrencies existence. Sankar gave out this statement in a webinar organized by the International Monetary Fund (IMF).　　The Reserve Bank of India has been a big opposer to Cryptocurrency. He extended the authority‘s stand over private digital assets use in the nation. Sankar said that it shouldn’t be permitted just because they are backed by hi-tech. Technology is a tool and it can be used for good however it can also be utilised for undesirable use. An understanding of its limitations is required in order to protect the citizens, he added　　Digital assets carry zero value　　RBIs latest assertion has landed ahead of soon to be released Consultation paper on crypto. The Indian

2022-06-06Deep Dive

Bloomberg strategist says Bitcoin will hit $100K by 2025

Bloombergs Senior Commodity Strategist Mike McGlone was recently a guest at Kitco News. He analyzed the current market and argued that Bitcoin will outperform all other assets in the world and hit $100 thousand by 2025.　　According to McGlone, the great reversion is just getting started. The current market reflects the most significant inflation in 40 years, the first in most peoples lifetime. However, he also argued that once this period is over, Bitcoin will soar and become the best asset to hold in the world.　　McGlone mentioned both Bitcoin and Ss volatility　　McGlone also analyzed the recently changed sentiment towards Bitcoin. He was asked why Bitcoin became a risk-on asset while it behaved as a safe inflation hedge for so long.　　McGlone answered the question by explaining that this volatility is just a maturation period of a nascent technology and asset. He mentioned:　　“260 days volatility in Bitcoin is almost the same as Teslas, the same as what Amazon was in 2009, and the same as what gold was in 1980.”　　He concluded his words by saying that once the transition period for Bitcoin is over, it will become a risk-off asset that can be safely used as an inflation hedge.

2022-06-06Deep Dive

Former product manager at OpenSea charged with insider trading

The charges are related to digital collectibles bought and sold on the NFT marketplace in September 2021.　　On Wednesday, United States prosecutors in Manhattan charged Nathaniel Chastain, 31, with insider trading. Chastain is a former product manager at OpenSea, the largest nonfungible token (NFT) marketplace. This will be the first case of its kind regarding digital assets and traditional criminal investigations.　　Prosecutors claim that Chastain bought 45 NFTs through anonymous hot wallets and anonymous accounts on OpenSea and then sold them for a profit shortly after. He allegedly bought them shortly before they were featured on the OpenSea marketplace homepage and sold them for a profit right after. As the product manager, it would have been in his power to choose which NFTs were featured, giving him direct access to the insider information that he, himself, created.　　Related: What is front-running in crypto and NFT trading？　　Included in the claim of 11 separate trades was the NFT called “Spectrum of a Ramenfication Theory” on Sept. 14, 2021, which would have been sold the next morning for almost four times the buying price.　　U.S. Attorney Damian Williams commented on his offices commitment to follow up on insider trading in all of its forms. Chastain was charged

2022-06-02Deep Dive

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