Crypto Guides, Knowledge & Insights

Tesla CEO Elon Musk Reaffirms Dogecoin 'Has Potential as a Currency' as Twitter Deal Is Put on Hold

Elon Musk Says Dogecoin Has Potential as a Currency　　Tesla CEO Elon Musk has made another bullish statement about the meme cryptocurrency dogecoin (DOGE) despite massive sell-offs across the crypto market.　　Musk affirmed that dogecoin “has potential as a currency.” His tweet was in response to a comment by dogecoin co-creator Billy Markus, who said that the reason he likes the meme cryptocurrency is because “it knows it is stupid.”　　The Tesla CEO‘s tweet reiterated his earlier statement that DOGE is the best crypto for transactions. In contrast, he said bitcoin is better suited as a store of value. Musk, who is known in the crypto community as the Dogefather, also said that dogecoin is “the people’s crypto.”　　A longtime supporter of DOGE, Musk tweeted in April 2019: “Dogecoin might be my fav cryptocurrency. Its pretty cool.” The Tesla boss also revealed that he personally owns dogecoin in addition to bitcoin and ether.Musks Twitter Deal Is on Hold　　The Tesla boss has offered to buy Twitter for about $44 billion, which the social media company accepted. Since then, he has been discussing various ways to improve the platform.　　However, Musk announced Friday that his Twitter buyout deal has now been put on hold, tweeting:　　Twitter deal temporarily

2022-05-14Deep Dive

Bitcoin price sees ‘hell of a reversal candle’ as 168,000 BTC leaves exchanges

Bitcoin (BTC) came back with a vengeance on May 13 as bulls stepped in to take the market to near $31,000.Bitcoin RSI stays firmly oversold　　Data from Cointelegraph Markets Pro and TradingView confirmed 24-hour gains of 30% for BTC/USD in the aftermath of the Terra debacle.　　After “kissing” its realized price at $24,000, Bitcoin showed no taste for fresh bearishness as record on-chain volume combined with coins leaving exchanges en masse.　　On May 11 and May 12 alone, exchange balances declined by over 24,335 BTC, according to data from on-chain analytics platform CryptoQuant, covering 21 major platforms.　　Outflows were much higher at nearly 168,000 BTC over the same period, but inflows from those seeking to sell were equally intense as panic set in over Terra (LUNA) and TerraUSD (UST) tokens, as well as the largest stablecoin Tether (USDT).　　As LUNA went to nearly zero and its blockchain was halted, Bitcoin, nonetheless, strengthened as the immediate impact of the instability waned.　　“This is a hell of a reversal candle,” popular trader and TradingView writer CryptoBullet reacted as part of Twitter comments.　　Bitcoins relative strength index (RSI), referred to by CryptoBullet, measured 31 at the time of writing, still in oversold territory and its lowest since January.$14,000 still on

2022-05-13Deep Dive

Is Tether Next In Line For An Attack?

Following on from the attack on the UST stablecoin algorithmic dollar peg, and its more or less total destruction, could forces be brought to bear on the Tether USDT dollar peg？　　Back in the early 2000s, one of the most infamous collapses occurred on Wall Street. Enron, the darling of the 1990s went into bankruptcy after illegal accounting practices were revealed and shareholders lost $74 billion, and employees lost billions in pension benefits.　　Since then a couple more even bigger collapses have happened, including Leyman Brothers and General Motors. However, in current times, and especially for the crypto market, the depegging of UST and the subsequent fall of Luna from $87 to practically zero in only a week does bear comparison.　　For the rest of the crypto market things do not look particularly encouraging. The Federal Reserve is still on a path of hiking interest rates and tapering off its huge balance sheet.　　Yes, the stock market is declining, with the tech-heavy Nasdaq having lost around 22% in a little more than a 3 week period. However, at the same time, the combined crypto market cap has lost nearly double this amount, thanks to the catastrophic collapse of the Terra Luna ecosystem.　　So what is

2022-05-13Deep Dive

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

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