Crypto Guides, Knowledge & Insights

Crypto and Blockchain will shape the finance sector in 2022

Finance management involves the practice of managing financial resources, and it encompasses all records related to documenting, evaluating, and creating financial reports.　　In technical terms, it refers to the processes that assess a business project, such as planning, research, costing, and other financial transactions necessary to establish the projects success and future scope.　　Finance management is used by businesses to build a marketing strategy and services, whether they are profitable or have a trading sphere in the market.　　Financial management or analysis aims to determine if a service or product is stable, secure, long-lasting, and lucrative enough to invest in. Accrual analysis is used to define policies, assess current economic trends, create long-term investment strategies, and spot investment possibilities.　　Here are the five major trends in the finance sector that have gained popularity over the past two years　　Many students study this topic to work as future managers in the most successful companies. A successful business leader has a strong understanding of financial management. The foundation for the future is being set today; many people chose this curriculum but are now suffering.　　If you are studying finance, you must devote time and effort to understanding all of the fundamentals of the area to put it to

2022-05-13Deep Dive

Luna's Collapse Shows DeFi's Dire Need for Technical, Regulatory Controls

A “Black Swan” event is unpredictable beyond what is normally expected of a situation, is obvious in hindsight and has potentially severe consequences. Examples include the subprime crisis and subsequent meltdown of the banking sector in 2008 and the market capitulation following the start of the global pandemic.　　In the financial markets, or in any industry for that matter, Black Swan events are mostly known as negative. Still, history shows that these events are also a pivotal point of positive systemic change. I believe that the same process will apply to this event.　　The downfall of UST as an algorithmic stablecoin is a Black Swan event and should never have happened. It was a project worth over $18 billion – practically too big to fail. Stronger regulatory controls overseeing the projects automated trading system could have mitigated the situation a long time ago.　　Terras meltdown spread to bitcoin, causing its price to drop by $10,000 in a matter of hours. It has also caused widespread damage to our peers in the crypto industry, notably exchanges and small and large investors.　　If automated decentralized finance (DeFi) trading systems are to grow to this size, there is a need for better regulation and stakeholder safeguards.　　Risks associated

2022-05-13Deep Dive

Brazil's Largest Broker XP to Launch Bitcoin Trading

XP, Brazils largest broker according to market value, is planning to launch a cryptocurrency trading platform that will allow its customers to buy, sell and hold bitcoin and other cryptocurrencies, according to a translated report from Info Money.　　The platform will go by the name XTAGE and was developed in partnership with Nasdaq to be integrated into the XP app with expected an operability timeframe near the end of June. XTAGE will initially only launch for bitcoin and one other cryptocurrency.　　“Nasdaqs robust and flexible infrastructure technology, designed to meet market demands, as well as current and future regulatory structures, will allow XP to scale its platform reliably and introduce new asset classes as they grow and evolve,” said Roland Chai, executive vice president and head of market technology infrastructure at Nasdaq.　　Cryptocurrency portfolios will be integrated with other investments in the app allowing customers to frictionlessly interact with the interface they are already accustomed to. This functionality will bring bitcoin to XPs 3.5 million customers.　　An internal survey conducted by XP shows over 60% of its customers are interested in buying bitcoin and other cryptocurrencies and of the customers currently investing in these assets outside of XP, 80% of those customers would like

2022-05-13Deep Dive

WHAT TERRA’S COLLAPSE TEACHES ABOUT ‘CRYPTO’ AND BITCOIN

Terra is crumbling.　　The blockchain project home to the popular algorithmic stablecoin TerraUSD (UST), which had recently become the fourth-largest stablecoin by market value but now sits at fifth, is near collapse as UST repeatedly fails to sustain its $1 peg and LUNA, the blockchains native token, nears zero.　　Terraform Labs, the tech start-up behind the development of Terra, halted the production of new blocks on the network on Thursday “to prevent goverance attacks following severe $LUNA inflation and a significantly reduced cost of attack,” it said on Twitter.　　A governance attack became less expensive because of the nearly-free price of LUNA – an attacker could cheaply acquire enough LUNA tokens to socially attack the network by forcing a majority vote. (Since Terra relies on a derivation of proof-of-stake (PoS) for consensus instead of hardware and electricity as in Bitcoin‘s proof-of-work (PoW), coin ownership equals power. In Bitcoin, the amount of BTC you own doesn’t grant you more power on the network.)　　The network went live a couple of hours later as the software patch was released.　　This is another important difference between a network like Terra and Bitcoin: while in the former a minority of entities that can vote on things like halting the

2022-05-13Deep Dive

Uncovering Terra's Implosion — Terraform Labs' Big Name Backers and 'Zero Exposure' Claims

LUNA Token Value Drops to a US Penny, Do Kwon Remains Quiet, Former TFL Employees Come Forward, Crypto Entities Announce Zero Terra Exposure　　The Terra blockchain project and the team Terraform Labs have had an incredibly rough week, as the platforms two tokens shuddered in value against the U.S. dollar during the last few days. On May 11, 2022, the once-stable terrausd (UST) coin dropped to an all-time low of $0.298 per unit.　　Additionally, the following day, LUNA tapped a low of $0.0156 per coin, and LUNA is now in a sub-100 position, after being a top-ten crypto coin by market capitalization. UST is currently ranked the 15th largest market valuation in the crypto economy today.　　LUNA/USD on May 12, 2022.　　After Do Kwon addressed the community on Wednesday, the Terraform Labs founder has been silent again on social media. While Kwon was quiet, numerous entities in the crypto space came forward to explain that they had no exposure to UST or Terra-based products. “One of our Private users asked me via DM about Crypto.com exposure to UST,” Kris Marszalek, the CEO of Crypto.com, tweeted. “It‘s $0. UST was never listed on Crypto.com and we didn’t participate in Anchor yield farming.”　　Despite Terras implosion, the

2022-05-13Deep Dive

Rich Dad Poor Dad's Robert Kiyosaki Plans to Buy Bitcoin When the 'Bottom Is In'

Kiyosaki Thinks Bitcoin Could Test the Bottom at $17K　　The author of Rich Dad Poor Dad, Robert Kiyosaki, has shared his latest price expectation and future outlook for bitcoin. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.　　Kiyosaki tweeted Thursday that bitcoin is crashing and he is waiting for the price of the cryptocurrency to fall to the $20K level. He explained that he will then wait for BTC to test the bottom, which might be at $17K, before he starts buying. “Crashes are the best times to get rich,” he advised.　　In January, the Rich Dad Poor Dad author said he will buy more bitcoin “if and when BTC tests $20K.”　　Kiyosakis tweet came at a time when the crypto market has lost billions as the terrausd (UST) fiasco unfolded. At the time of writing, bitcoin is trading at $29,289, down 2% over the past 24 hours, 20% over the past seven days, and 27% over the past month.Kiyosaki Also Believes ‘Bitcoin

2022-05-13Deep Dive

Tether claims they were ready for this bank run

Tether CTO, Paolo Ardoino, told us last month that Tether was prepared for a bank run. Ardoino and the Tether team have run models to simulate a 2008-style financial crisis and believe that it will continue to be able to honor all redemptions even if a similar situation occurs.　　Tethers peg to the US Dollar was rocked yesterday as it fell to $0.95 on major exchanges such as Binance.US and Coinbase. The token traded below $0.995 for the longest time since March 2020 closing several four-hour candles below the 0.005 level. Currently, it has recovered to$0.993 and it looks like the peg may soon be restored. If the peg does come back then Tether may view a 5% max pain drop and a 48-hour recovery as a successful stress test. However, the potential for this level of volatility could now be priced into the crypto market as a whole. When stablecoins have the potential to swing 5% confidence will undoubtedly be hit.　　Regarding the current market conditions, Ardoino tweeted, “Reminder that tether is honoring USDt redemptions at 1$.” In our interview, Ardoino claimed that Tether has never refused redemption. However, it appears that investors need at least $100,000 Tether to use their

2022-05-13Deep Dive

Crypto.com boss clarifies what’s different between now and last bear market

Crypto.com CEO Kris Marszalek called the brutal downturn a ‘really rough day.’　　Over the last seven days, total market cap losses amount to $570 billion, or -33%. And with markets spooked, theres always the threat of more panic selling as investors look to minimize their losses.　　However, in some semblance of hopium, albeit a negligible one, Marszalek points out that ‘nobody is questioning crypto’s survival, unlike the overriding narrative of the last bear market.　　Then again, the last bear market was typified by the sheer number of projects that closed down. And the same will be true this time around as well.The bear market is here　　This weeks crypto sell-off has banished any notion of being in a bull cycle. Over the last week, every top 100 tokens, excluding stablecoins, has suffered double-digit losses.　　Surprisingly TRON has faired best nursing just 12% losses over the last seven days. Whereas STEPN, Fantom, and Gala were hit hardest losing 69%, 69%, and 60% in value, respectively.　　Marszalek points out that this time no one is questioning the industry‘s survival. But that doesn’t mean every project will make it through to the next bull phase.　　The website coinopsy.com lists dead projects in the categories of joke, scam, and abandoned. Sorting

2022-05-13Deep Dive

Brexit May Prove a Blessing in Disguise for UK Crypto Industry

IN BRIEF　　U.K. crypto executives are cautiously optimistic about the countrys prospects in becoming a global crypto hub.　　Executives now believe that the independence afforded by Brexit may actually have contributed to the countrys current efforts.　　As the EU introduces tougher regulations governing crypto transfers, Brexit has afforded Britain greater opportunity.　　U.K. crypto executives are cautiously optimistic about the countrys prospects of becoming a global crypto hub following recent initiatives to prevent more firms from leaving the country.　　Last month, Her Majestys Treasury announced its intention for the U.K. to become a “global crypto hub,” in response to similar efforts being made by places like Switzerland and Dubai.　　And recently, the Economic Secretary to the Treasury John Glen, the governments de facto crypto czar, has been meeting with executives and policy-makers in San Francisco, Washington, Brussels, Madrid, and Luxembourg.　　Glen is next expected to visit the “Crypto Valley” of Zug in Switzerland, a country whose regulatory independence from the EU has enabled it to enact these crypto-friendly policies.　　“Whatever you thought about Brexit, were now seizing the opportunity that comes from it,” Glen said recently. “This regulatory freedom is critical.”　　Brexit opportunity　　Despite initially hampering efforts, these executives now believe that the independence afforded by Brexit may actually have contributed

2022-05-13Deep Dive

Terra says it has halted blockchain for second time in 24 hours

With its native token LUNA and stablecoin UST in freefall, Terra says it has halted its blockchain for the second time in 24 hours.　　In a tweet posted at 10:13pm Eastern Time, Terra said its blockchain “has officially halted at block 7607789.”　　“Terra Validators have halted the network to come up with a plan to reconstitute it. More updates to come,” it continued.　　The blockchain was first paused on May 12 over fears that it had become vulnerable to attack. Developers at Terra then announced at 2:05pm ET that block production had resumed, albeit with staking disabled.　　The crisis at Terra was triggered when its algorithmic stablecoin UST de-pegged from the US dollar. It now sits at around $0.19, per Binance data, despite frantic efforts to restore the peg by issuing huge volumes of LUNA.　　The circulating supply of Luna (LUNA) topped 25 billion on May 12, with minting reaching unprecedented levels as Terraform Labs CEO Do Kwon and others try to ease UST selling pressure.　　For more Blockchain news, please download WikiBit- the Global Blockchain Regulatory Inquiry APP.

2022-05-13Deep Dive

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