Crypto Guides, Knowledge & Insights

War, Crypto & The Invisible Line Connecting It All

Edwin Starr said it best: war is good for nothing. Recently, talks of war have affected crypto in a major way – an invisible string connects the two and we will take a look at how war could impact crypto prices, and the bigger picture impacts at hand.War as many buy or sell at much higher rates then usual, this could lead to many buying at low value and holding until everything plays out and the world chills out. While crypto took a hit, some can say its due to many sanctions – but also war helping effort. Additionally, crypto and NFTs have been utilized to supplement wartime efforts, exacerbating the impact that crypto can have positively on these international fights.　　Furthermore, people in Ukraine are turning to crypto as an alternative to Ukrainian financial institutions, which are limiting people‘s access to bank accounts and foreign currency. In a recent interview, Alex Gladstein, chief strategy officer at the Human Rights Foundation said that “the fact that it can’t be frozen, the fact that it cant be censored, and the fact that it can be used without ID is very, very important,” and added that “they are why bitcoin is such an

2022-05-04Deep Dive

MicroStrategy Considering Yield Generation Options on BTC 95,643 Holdings

The American IT firm MicroStrategy has claimed that it is mulling the possibility of yield generation on its bitcoin (BTC) holdings. At present, the firm holds BTC 129,218 (USD 4.97bn). Most of this figure is “unencumbered,” and is held in the name of its subsidiary firm MacroStrategy.　　The company, which has been buying BTC using its balance sheet, issued a financial performance report for Q1 of 2022, where it noted that it could “conservatively explore future yield generation opportunities” on its “unencumbered” tokens. This would mean excluding the BTC 19,466 (USD 748.6m) that the company used to secure a ground-breaking USD 205 million BTC-backed, three-year loan from the bank Silvergate last month. And that would mean MicroStrategy could “explore” its yield generation options with a whopping BTC 95,643 (3.68m).　　However, although the firms BTC-buying strategy may well prove shrewd in the long-term, it appears that short-term pain may be inevitable. A stagnant BTC market in recent months has bought with it cumulative impairment losses of over USD 1 billion for MicroStrategy, on top of aggregate costs worth USD 4 billion.　　The company explained that “the original cost basis and market value” of its bitcoin holding were “USD 3.967 billion and USD 5.893 billion

2022-05-04Deep Dive

Dfinity is suing Meta over the use of “its logo”

Dfinity Foundation, the developer of Internet Computer Protocol (ICP), has dragged Facebooks parent company, Meta, to court over its use of the infinity symbol as its logo.　　The lawsuit, filed in California, has Dfinity claiming that Meta uses the logo for the same reason it chose to register it.Dfinity registered the logo before Meta　　Dfinity registered the logo in 2018 at the United States Patent and Trademark Office for decentralized platforms and blockchain technology services. This is similar to Meta, which after rebranding from Facebook, revealed its Metaverse aspirations.　　Dfinity, thus, claims that Meta is using the logo to attract the same set of users that it is targeting.　　The non-profit foundation claimed that it has been using the logo since 2017, whereas Meta didn‘t register it until March 2022. It also noted that it didn’t claim the color palette as a feature of the mark.　　Therefore, it doesnt matter that there are color variations between its logo and that of Meta. It claims that it has ownership rights on all variations of the logo.Says Meta‘s logo is harmful to its reputation　　The details of the lawsuit first became public through Trademark attorney Josh Gorben, who posted it on Twitter. A part of the lawsuit states

2022-05-04Deep Dive

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

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