Crypto Guides, Knowledge & Insights

Bitcoin’s net exchange flows signal trouble is brewing

On-chain data analysis firm Glassnode today tweeted a chart of the 7-day moving average of exchange addresses receiving Bitcoin. It showed a one-month high of addresses receiving BTC at 1,889,792.　　Sustained inflows would be a cause for concern for market participants. The chart below shows a steep uptrend of this metric from late April 2022.　　With the Fed continuing its hawkish stance, risk-on assets like Bitcoin come under increasing pressure. And with no sign of inflation coming under control, investors are bracing for worse.Bitcoin sinks over Fed rate rise　　Wednesday saw the Fed raise interest rates by half a percentage point, the largest single increase in two decades. Although Bitcoin initially soared on the aggressive positioning by the US central bank, a change in trader sentiment followed.　　Bears took control at lunchtime (GMT) on May 5, setting off a 7% sell-off. A similar pattern played out with stocks, with e-commerce companies like eBay and Shopify bearing the brunt of investor flight.　　Strategist at investment bank Evercore, Krishna Guhu, commented that recent rate rises had not had the desired effect of reigning in inflation. With that, expectations are for more rate rises ahead.　　“It is much too soon in economic space for the Fed to allow financial

2022-05-06Deep Dive

A Third of All Britons Have Now Used Crypto, Says Coinbase Report

Crypto adoption in the United Kingdom continues to rise, with a reported 33% of the country‘s consumers having previously invested in such assets. The figure is up 4% from six months prior, and is second in Europe only to the Netherlands’ whopping 47% statistic.　　Britons Buying Bitcoin　　The stat was gleaned from a bi-annual analysis conducted by Qualtrics, on behalf of cryptocurrency exchange Coinbase. It found that 61% of Britons who already own cryptocurrency plan to increase their positions within a year, up from 54% in October 2021.　　Of that group, about two-thirds plan to increase their position in the cryptocurrency they are already holding, versus just 23% that wish to expand into new assets.　　This is perhaps a reflection of the “tribalism” in the crypto space noted by Ripples CEO last month. Many Bitcoiners, for instance, prefer to stick to Bitcoin exclusively, viewing other coins as fundamentally different or invaluable.　　At present, Bitcoin and Ethereum are still the most commonly owned cryptocurrencies, possessed by 75% and 52% of holders respectively. Interestingly, Dogecoin comes in third (34%) ahead of Binance Coin (33%), despite being only the 12th largest crypto by market cap right now. This is likely a reflection of Dogecoins notoriety, which Grayscale finds

2022-05-06Deep Dive

Luna Foundation Guard becomes top 10 Bitcoin holder

The Luna Foundation Guard has purchased another 37,863 Bitcoins taking them into the top 10 Bitcoin holders in the world. In a Twitter thread, they announced, “The LFG has acquired an additional 37,863 Bitcoins totaling ~$1.5 billion in OTC swaps with @GenesisTrading and 3AC.”　　Genesis Trading is one of the largest providers of digital assets to institutional organizations. It has managed $11.4 billion in spot trades in Q1, meaning this LFG transaction accounts for almost 10% of its quarterly activity in a single trade.　　According to the announcement, it has also managed $44 billion in loan originations, $27 billion in derivatives, and $14 in active crypto loans though LFG has only used its spot services.　　The acquired BTC brings the LFGs total holdings to ~80,394 Bitcoins.　　At current levels, this equates to roughly $2.9 billion, some $6.3 billion behind the top wallet belonging to Binance. Other whales in the Bitcoin top holders include Microstrategy with approximately 120,000 Bitcoins and Bitfinex with 168,010 Bitcoins.　　Interestingly, LFG used TerraUSD to purchase the Bitcoin from Genesis. UST is the Terra-made algorithmic stable coin for which Bitcoin will be used as a safeguard. Terra founder, Do Kwon, declared earlier this year that LFG would acquire $10 billion in Bitcoin

2022-05-06Deep Dive

Largest private bank LGT to offer direct Bitcoin and Ethereum investments

The Liechtenstein royal family-owned bank, LGT, now offers clients direct investments in Bitcoin and Ethereum while also providing custody services.　　The private bank announcement stated that the services would first be available to its clients in Liechtenstein and Switzerland.　　The bank is partnering with Swiss digital assets services provider SEBA Bank for this new product. SEBA is regulated in Switzerland and will be providing crypto brokerage and custodial services for these investments.LGT says traditional investments processes will apply to its crypto investments　　According to LGT, the move to offer crypto investment options is coming due to the increased demand for this investment class in recent years.　　The bank continued by stating that it understands how tricky it could be for individuals to invest in these assets when they dont have technical expertise.　　CEO of LGT Bank, Roland Matt, said that the bank would look to uphold the highest security standard while also helping their clients access the crypto space.　　In his words　　“We worked intensively on this offering. Cryptocurrencies are still in a stage of dynamic development. LGT therefore first created the corresponding, necessary processes and framework for this type of investment.”　　Eligible clients also have to be classified as professional clients or clients of an external asset

2022-05-06Deep Dive

Hermès, NFT Artist Clash Over Whether MetaBirkins Is a Trademark

Luxury retailer Hermès International and digital artist Mason Rothschild clashed at oral arguments in New York federal court on Wednesday over whether the name “MetaBirkins” on nonfungible tokens should be viewed as a trademark or as the title of an art project.　　Hermès sued Rothschild in January, alleging he infringed the trademarks of its famous Birkin luxury handbag by creating and selling MetaBirkins NFTs, which are bought and sold using blockchain technology. The NFTs represent digital images of the Birkin handbags, but covered in fur instead of leather.　　Harvard Law School Professor Rebecca Tushnet, who represents Rothschild, argued that the term MetaBirkins is the title of a digital art project that provides commentary on the relationship between consumerism and the value of art, and is therefore protected by the First Amendment.　　Hermès attorney Oren Warshavsky said Rothschild was using the MetaBirkins name as a mark identifying the source of a product, which has caused consumers to incorrectly believe the MetaBirkins NFTs are connected to Hermès.　　The case is one of the first times a court has heard a dispute over how intellectual property law applies to NFTs. The new technology is at the core of other trademark and copyright lawsuits involving Nike Inc. and

2022-05-06Deep Dive

California Governor Wants to Boost Blockchain Adoption

The governor of California – Gavin Newsom – introduced an executive order on digital assets, aiming to establish a regulatory framework for the industry and bolster blockchain adoption.　　California to Become a Crypto Hub？　　The governor of the US state with the largest economy issued an executive order on cryptocurrencies, which lays out a road map for regulatory and consumer protections. It also examines how digital assets and blockchain technology can be incorporated with California businesses.　　Dee Dee Myers – Senior Advisor to governor Gavin Newsom – noted that the Western state is a preferred location for crypto-related companies. As such, the local authorities will aim to support their efforts with friendly legislation:　　“Of the 800 blockchain businesses in North America, about a quarter of them are in California, dramatically more than any other state. Weve heard from so many that they want to be here, and we want to help them do that responsibly.”　　Newsoms executive order is designed to “create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies.” The directive will “harmonize” federal and California laws and balance the benefits and risks to consumers when dealing with bitcoin and altcoins.　　Additionally, the order will

2022-05-06Deep Dive

IMF Expresses Concern Over Central African Republic’s Bitcoin Adoption

After the Central African Republic (CAR) announced adopting Bitcoin as legal tender and legalized the use of cryptocurrencies last month, the International Monetary Fund (IMF) warned that such a move might cause financial instability in the country.　　The criticism came on the heels of the organization expressing hawkish opinions on multiple occasions against El Salvador‘s adoption of Bitcoin and president Nayib Bukele’s ambitious plan to introduce Bitcoin-backed bonds.　　The global authority stated that macroeconomic and legal uncertainties tagged along with the Bitcoin adoption are concerning. In an email replying to Bloomberg, the IMF noted:　　“The adoption of Bitcoin as legal tender in C.A.R. raises major legal, transparency, and economic policy challenges. IMF staff are assisting the region and Central African Republics authorities in addressing the concerns posed by the new law.”　　Criticism as such was not anything new from the IMF. Earlier this year, the fund called El Salvadors move to accept Bitcoin as its currency “a large risk” to the market that could create “contingent liabilities.” Additionally, the IMF cited “price volatility” and a lack of use cases as the prominent issues of Bitcoin as a legal tender.　　As the first African country to recognize Bitcoin as its currency, the CAR has faced backlash

2022-05-06Deep Dive

Elon Musk Got $500,000,000 from Binance in Order to Buy Twitter

According to the most recent SEC report, Elon Musk attracted $7.13 billion in new financing commitments from various investors in order to buy all Twitter shares for around $54 each. The most interesting part of the filing is the contribution from one of the biggest cryptocurrency exchanges in the world, Binance, which provided Musk $500 million in commitment letters.　　Essentially, commitment letters are loans provided by co-investors for a specific goal which, in this case, is the full acquisition of Twitter via the purchase of all available shares on the market. Usually, commitment letters are followed by a separate agreement in which the lender highlights the terms on which the borrower will return the investment.　　Each equity investor at the table has contributed to the parent prior to or immediately at the merger. But while some investors contributed a specific amount of funds, others committed alternatively by providing their shares of Twitter stock.　　Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud contributed 35 million shares. With a valuation of $54.2 per share, Alsauds contribution would be almost $1.9 billion, which makes the a largest contribution of all co-investors.　　Elon Musks Twitter purchase was one of the biggest events in the financial, crypto and media industries.

2022-05-06Deep Dive

Bitcoin falls toward $38K as stocks forsake Fed 'traditionalist convention'

Bitcoin (BTC) lost nearly $1,000 in the principal hour of Wall Street exchanging on May 5 as a concise assembly finished in disillusionment.　　Nasdaq drops 4% on post-Fed open　　Information from Cointelegraph Markets Pro and TradingView followed BTC/USD as it got back to $38,130 on Bitstamp just about 24 hours subsequent to arriving at week by week highs of $40,050. The move came graciousness of exceptionally associated United States securities exchanges, which opened with instability subsequent to posting their own fleeting increases following remarks from the Federal Reserve on May 4. At the hour of composing, the Sd ideally taking a gander at a potential long,” he told Twitter supporters, alluding to a higher low, or HL, perhaps being imprinted on the everyday diagram. “However long we stay above $38,000, all that looks fine for additional continuation.”　　In the mean time, individual broker Cheds featured $37,500 as the level to hold to keep away from more profound shortcoming next. “In the event that we break 37.5k $BTC today look out beneath,” he cautioned. That region has denoted the lows for the long stretch of May up until this point, having gotten two retests. capture.JPG Purpose Bitcoin ETF sees record day to day inflows　　Financial

2022-05-06Deep Dive

Here’s how blockchain tech will change online gaming

We‘re witnessing a revolution occur right in front of us as the pay-to-play and free-to-play models give way to a new one: play-to-earn. We’re also watching the real-time transformation of online gaming into a more honest, fair, and transparent industry. Lets dive into the depths of how blockchain technology is changing the $200 billion global gaming industry.　　What is the play-to-earn model？　　The play-to-earn model is a relatively new model for gaming, and blockchain technology is speeding up its adoption. Before, players either purchased the game, subscribed monthly or funded gameplay through in-game purchases, but now with the blockchain-based play-to-earn model, players make micropayments of fractions of a cent to make moves such as striking opponents. By accomplishing certain tasks such as finishing on game leaderboards or winning tournaments, players can also earn from gaming, hence the name play-to-earn.　　Play-to-earn games aren‘t just a fantasy or a hypothetical concept. There are several great games available right now. For example, we learned about Legends at War by Sabre Games on the recent Polish blockchain gaming webinar, and regular CoinGeek readers know all about BSV’s most popular play-to-earn game CryptoFights. How fast are they catching on？ In the aforementioned webinar, we learned that play-to-earn games

2022-05-05Deep Dive

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