Crypto Guides, Knowledge & Insights

Crypto mortgages are too risky

A new Weiss Rating report has warned about the risks of having mortgages backed by cryptocurrency, especially in the worlds current economic situation.　　The Florida-based research firm analyst Jon Markman, in the report, identified the poor performance of crypto and stocks this year, plus the rising interest rates, alongside the policy changes of the Federal Reserve and the housing bubble as reasons investors have to exercise caution with crypto mortgages. 　　“The product seems to be like a win-win, assuming real estate and crypto prices keep rising […] except there are signs both bets are unlikely to be winners in the near term. Bitcoin is off by 40% since it reached $66,000 in November 2021.”　　The report specifically cited Milo, the digital bank offering 30-year mortgages backed by Bitcoin, Ethereum, and stablecoins. The bank does not mandate borrowers to make any down payments, and the interest rate ranges from 3.95% to 5.95%.　　Borrowers can choose to pledge their crypto assets as collateral, allowing them to spend the crypto and enjoy any rise in prices. But if the price should fall, there could be some risk for borrowers.　　According to Markman, the plan to pool crypto loans could be very risky, given it was a similar

2022-05-04Deep Dive

EU Report Recommends DeFi Regulation Rethink

The EU Commission issued a report, “European Financial Stability and Integration Review 2022,” on April 7, containing a 12-page chapter on DeFi. In addition, the authors of the report present a sensible approach to the topic.　　The report shows how DeFi can help reduce financial audit costs and provide substantial opportunities for financial integration across borders.　　The European Commission has shown an unexpected understanding of how DeFi actually functions by identifying it as something different from traditional finance and acknowledging that the current system will require a regulatory rethink.　　Patrick Hansen, a crypto expert and consultant at Presight Capital who has been following European regulations for years, shared some critical information from the recently published report by EU Commission.　　1/ In case you missed it, the commission wrote a chapter on DeFi in its “Financial stability & integration review 2022” It shows that the Commission staff is well aware of how DeFi works, incl. single protocols. A few selected quotes wrt policy　　Source: Twitter　　EU Report Highlights　　In the report, European Union Commission defines DeFi as “a newly emerging form of autonomous financial intermediation in a decentralized digital environment powered by […] ‘smart contracts’ on public blockchains.” It recognizes that smart contracts can replace regulated intermediaries and

2022-05-04Deep Dive

Two Argentinian Banks to Reportedly Launch Crypto Trading Services

Two banks in Argentina will be allowing their clients to purchase cryptocurrencies via their official websites. The pair are Banco Galicia – the nations largest private bank in terms of market value, and Brubank – a fully digital bank.　　The two entities have partnered with the crypto wallet Lirium for the new service, which will reportedly be available to clients on Monday. For Banco Galicia, the feature will first be available to customers whose salaries are directly deposited to the bank.　　Banks in Argentina Embracing Crypto Trading　　According to Bloomberg, Banco Galicias decision was fueled by high customer demand, especially from the younger generations. This was evident when 60% of the participants from one of its surveys said they would like to access crypto assets through the bank.　　Two officials from the bank – Ariel Sanchez, the manager of investment products, and Nicholas de Giovanni – confirmed this, adding:　　“The youth is the group that asks for this the most.” Please download WikiBit for more blockchain news.　　The report also cited data from Chainalysis, which claims that Argentina is among the countries leading in terms of cryptocurrency adoption, ranked at 10th space worldwide.　　Research conducted by the marketing communications agency Wunderman Thompson further noted that Argentinians are

2022-05-04Deep Dive

Analysts Predict ApeCoin To Hit $50 By End Of 2025 – And $100 By 2030

As Bitcoin and Ethereum price remain bearish for the longest time now; barely hitting above $40,000 for BTC and not going over $3,000 for ETH, ApeCoin, on the other hand, is on fever-pitch with price prediction of up to $100 by 2030. 　　And to think, the coin is just warming up.　　Both Bitcoin and Ethreum have been struggling and are down by 20% since April. Meanwhile, its all rainbows and sunshine recently for ApeCoin, a coin connected to the Bored Ape Yacht Club NFT collection that is now dubbed as a $7-billion coin.Price Predictions　　Now, cryptocurrency titans and experts recently announced a price prediction for ApeCoin as it skyrockets to 50% in a weeks time following its NFT sale.　　Dimitrio Salampasis, a FinTech speaker and lecturer at Swinburne University of Technology, is very optimistic and bullish with ApeCoin. His current prediction is $45. However, he says ApeCoin will be worth $10 come 2030.　　The ongoing rush or hype with NFTs greatly impact the coins performace. Salampasis feels that crypto is overhyped at some point and it would gradually lose its value over time when the hype dies down.　　However, Salampasis believes that now is the best time to sell ApeCoin. However, some of his co-panelists

2022-05-03Deep Dive

Bitcoin Holders Trigger Largest Capitulation In Its History, Bearish Horizon For BTC?

Bitcoin follows a rangebound trajectory as the financial world trends to the downside. The first crypto by market cap is moving around critical areas of support as it was rejected from the low $40,000s.　　BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview　　The general sentiment in the crypto market trends downside with the price of larger cryptocurrencies. Market participants seem to be expecting Bitcoin to reach the low $20,000s or even lower at the mid area around $10,000.　　A recent report from on-chain analytics firm Glassnode supports the bearish thesis but points to Bitcoins capacity to stay at its current levels. The macro-outlook is pessimistic. This has been reflected in traditional equities.　　The S&P 500 and the Nasdaq 100 have been trending to the downside with many recording corrections as they failed to meet earnings expectations. Despite the trend, Bitcoin remains at $38,000 and in a range.　　It is significant that Bitcoin has been able to hold. Especially, as it has been trading in tandem with big tech equities and as Glassnode records an increase in the number of Long-Term Holders selling their BTC.　　The on-chain analytics firm claims that the cryptocurrency has experienced the largest capitulation from Long Term Holders in its history.

2022-05-03Deep Dive

Is It Possible For Crypto To Go Green? Big Companies Are Trying, But It’s Not That Easy

Going green is an ideal way to run crypto — but is it doable？　　Governments have been concerned about the negative impacts of cryptocurrency mining to the environment as it exhausts massive amounts of energy, especially for the so-called “proof of work” mechanism.　　China, for instance, has banned Bitcoin mining. In Northern Sweden, Hive Blockchain, a Canadian-based company depends on hydropower plants to mine cryptocurrencies. In fact, the entire region is popular for using renewable energy.Hive Blockchain In Sweden　　This Ethereum mining facility in Sweden is filled with computers or a total of 15,000 mining rigs that work 24/7/365 to mine new digital currency units. Bitcoin also uses the same proof-of-work mechanism as ETH.　　To mine new cryptocurrencies, they have to beat others to it and find the right answer to technical math puzzles which ramp up in difficulty as additional miners join the network. The mining process ensures that every transaction is verified and legitimate.　　Hive Blockchain runs the ETH mining facility and its one of the first companies that have innovated to using clean and renewable energy for mining activities.Crypto Minings Environmental Impact　　In Sweden, both wind power and hydro power is used for mining crypto and for powering up homes and industries in

2022-05-03Deep Dive

Samsung Group Investment Arm to List Blockchain ETF on Hong Kong Exchange

Samsung Asset Managements Stake in Amplify Holdings　　Samsung Asset Management Company (SAMC) is expected to list a blockchain exchange-traded fund (ETF) on the Hong Kong Exchange during the first half of 2022, the parent company Samsung Group has said. The listing of an ETF, which tracks cryptocurrency and blockchain technology companies, will be a first for Asia one report has said.　　The ETF listing is expected to occur in the first half of 2022 comes a few weeks after SAMC reportedly acquired 20% of the stake in Amplify Holding Company, a U.S. ETF sponsor. As part of a $30 million acquisition agreement with Amplify Holding, Samsung Groups investment arm will have exclusive rights to provide Amplify products in Asia.　　The U.S. ETF sponsor, which is famed for its ETF products such as BLOK, or Amplify Transformational Data Sharing ETF, is thought to invest “at least 80% of its net assets in equity securities of blockchain companies.” As per the report, the asset managers ETF will have a structure that is identical to that of BLOK.No Plans to List on Korean Stock Market　　Some of the blockchain companies where Amplify Holding has invested include Silvergate Capital, the graphics processing unit (GPU) producer Nvidia, Galaxy Digital

2022-05-03Deep Dive

Elon Musk, Mark Cuban Discuss Using Dogecoin to Solve Twitter Spam Problem

Elon Musk Optimistic About Mark Cuban‘s Dogecoin Idea　　Tesla CEO Elon Musk has been discussing on Twitter how to solve the platform’s spam bot problem. He has promised to solve the spam problem “or die trying.” Twitter agreed to sell the company to Musk for about $44 billion last week.　　One suggestion came from American billionaire entrepreneur Mark Cuban. He is a star in the business reality television series Shark Tank and the owner of the NBA team Dallas Mavericks.　　In a tweet early Sunday morning, Cuban suggested that everyone puts up one dogecoin (DOGE) for unlimited posts on Twitter. If anyone flags a post as spam and a human confirms that it is, that person gets the spammers DOGE. He further explained that spammers have to post 100 times more dogecoin. However, if the post is not spam, the flagger loses his dogecoin.　　At the time of writing, Cubans tweet has been liked more than 9K times. Dogecoin co-creator Billy Markus said, “I like this.” Musk replied, “Not a bad idea.”　　Many dogecoin supporters think that Cubans suggestion is a good idea, noting that it is very bullish for DOGE. However, some people are skeptical about its viability, with some questioning the requirement to

2022-05-03Deep Dive

Wikipedia Stops Accepting Cryptocurrency Donations Citing Community's Environmental Concerns

Wikipedia Discontinues Accepting Bitcoin, Crypto Donations　　Wikimedia Foundation has announced its decision to “discontinue direct acceptance of cryptocurrency as a means of donating.” The foundation began accepting bitcoin in July 2014.　　“The Wikimedia Foundation is the nonprofit that hosts Wikipedia and our other free knowledge projects,” its website details. Wikipedia is a free online encyclopedia with over 200K volunteer contributors, according to the foundation.　　The organization posted an update on its Wikipedia page on May 1, stating:　　We began our direct acceptance of cryptocurrency in 2014 based on requests from our volunteers and donor communities. We are making this decision based on recent feedback from those same communities.　　“Specifically, we will be closing our Bitpay account, which will remove our ability to directly accept cryptocurrency as a method of donating,” the update continues.　　Molly White, a Wikipedia editor, explained Sunday that the decision came out of a three-month-long discussion which she started on Jan. 10. The discussion wrapped up on April 12. “400 users participated in total, though some were single-purpose accounts created just for the discussion (mostly to try to sway the RfC [Request for Comments] against making this request),” she noted.　　The Wikimedia community‘s request for comments page explains that common arguments in support of

2022-05-03Deep Dive

Crypto.com slashes rewards to ‘ensure long-term sustainability’

Crypto.com has announced changes to its CRO Card rewards program, effective from June 1, 2022.　　The changes include a reduction in cashback, a monthly cap on the cashback receivable, and a phasing out of CRO staking rewards. The firm also recently changed its Crypto Earn program by cutting staking rewards.　　The community has expressed disappointment over the changes, with many social media users signaling their intent to move on. However, Crypto.com says the changes are necessary to ensure “ensure long-term sustainability.”What happened to Crypto.com？　　Crypto.com was called the worlds fastest-growing cryptocurrency platform last year. This can be attributed to a global ad campaign fronted by Matt Damon, but most of all, its generous rewards program.　　The firm operates a tiered card system, starting with a free Midnight Blue card going up to the Obsidian card, which is obtainable by staking $400,000 of CRO for 180 days.　　The higher the card tier, the more generous the rewards on offer. Obsidian cardholders count 8% cashback on card spending, reimbursement on subscription services from Spotify, Amazon Prime, and Netflix, and the highest staking reward percentages, among their benefits.　　But from June 1, 2022, the firm will cut many benefits. For example, a Jade Green/Royal Indigo cardholder (with an active

2022-05-03Deep Dive

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