Crypto Guides, Knowledge & Insights

USDC Inflow Spikes Up Will It Act As Dry Powder For New Bitcoin Rally?

On-chain data shows the USDC exchange inflow has spiked up. Historically, stablecoins have provided dry powder for kicking off new Bitcoin rallies.　　USDC Exchange Inflow Sharply Rose To High Values Recently　　As explained by an analyst in a CryptoQuant post, almost one billion USDC has flowed into exchanges recently. Past pattern suggests this may lead to uptrend for Bitcoin.　　The “USD Coin exchange inflow” is an indicator that measures the total amount of the stablecoin entering wallets of all exchanges within a given period.　　When the value of this indicator moves up, it means investors are depositing a higher amount of coins at the moment. Usually, holders transfer stablecoins to exchanges for converting them into a volatile crypto, like Bitcoin. They may also withdraw the coins to fiat.　　Investors use stablecoins like USDC when they want to exit volatile markets and hold on until prices are favorable enough for re-entering them. This implies that high stablecoin exchange inflows may show that prices are once again good for re-entry.　　here is a chart that shows the trend in the USD Coin exchange inflows over the past year:　　Source: CryptoQuant　　As you can see in the above graph, the USDC inflow has spiked up over the past few weeks. These

2022-03-11Deep Dive

Is cryptocurrency a workaround for sanctions against Russia?

Russia‘s plan to invade Ukraine hasn’t only gotten a show of dissent from the world but also brought in economic sanctions that could harm the Russian economy.　　European Commission President Ursula von der Leyen and French President Emmanuel Macron were among the first few who announced they would inflict “maximum impact on the Russian economy and political elite.” Then came Japan, Australia, New Zealand — all condemning Russias military actions.　　The United States and the United Kingdom also unveiled plans to counter the actions of Russian President Vladimir Putin. Payment service providers like Visa, Mastercard and PayPal have announced the suspension of operations in Russia.　　So far, the economic sanctions have already had a serious impact on the Russian ruble, which sank to record lows and is currently trading at 134.5 to the U.S. dollar. Russia‘s MOEX index, the ruble-denominated benchmark for the nation’s stock market, also took a major hit and is trading at one of its lowest levels, with many of the stocks on the list in free fall.　　But, the important questions here are: what are these sanctions that have the power to damage a countrys currency and even its stock market, and can a country use cryptocurrency to lessen the

2022-03-11Deep Dive

Michael Saylor Praises Bitcoin’s Scarcity Says Gold Is A Commodity

CEO of MicroStrategy Michael Saylor remains one of the most vocal supporters of bitcoin. Countless times in the past, Saylor has always lauded the benefits of the digital asset, which he says is the best investment. His convictions are shared by his firm which remains the publicly traded company with the largest bitcoin holdings in the world. Now, once again, Saylor has spoken out in favor of the cryptocurrency, effectively snubbing its competitors while hes at it.　　Bitcoin Is The Only Scarce Asset　　Bitcoins scarcity has often been one of the strongest arguments for the value of the cryptocurrency. According to the code, there can only be 21 million bitcoins mined, meaning that once this supply is mined, there are no more bitcoins coming into circulation. More BTC cannot be created, making it one of the most scarce assets in the entire globe.　　With bitcoins growth, it has fast become a rival for other top investment assets in the space. One of those assets is gold. Bitcoin which is referred to as digital gold has outperformed its physical rival over the course of the last few years, putting them in fierce competition with each other. However, according to Saylor, only one of these

2022-03-11Deep Dive

Crypto Platform Paxos Receives Green Light From Singapore’s Watchdog

Paxos, a blockchain infrastructure platform, announced today that it has received in-principle approval from the Monetary Authority of Singapore.　　The approval for the US-based crypto firm comes days after Swiss crypto bank Sygnum received a nod from the regulator to expand its crypto offerings in Singapore.　　Paxos noted in its release that it will now operate digital payments token services under Singapores Payment Services Act 2019. Before this, the stablecoin issuer was only regulated in New York under the first limited purpose Trust charter for digital assets.　　The license will also help Paxos to support its current partners in expanding their services into Asia, the platform noted.　　Rich Teo, Co-Founder and CEO, Paxos Asia, commented, “We founded Paxos in Singapore in 2012 because of this jurisdictions forward-thinking approach to innovation and oversight.”　　Since the last year, the city-state of Singapore has become a crucial hub that has handed over several crypto licenses to both domestic and international players. Some of the other names which received a green light from the MAS as Digital Payment Token (DPT) services providers include cryptocurrency exchange Independent Reserve, venture firm DBS Vickers, and fintech firm FOMO Pay.　　Additionally, Paxos‘ approval comes at a time when crypto giants are expanding their offerings

2022-03-11Deep Dive

Crypto Scams Second Biggest Type of Fraud, Report Reveals

IN BRIEF　　Cryptocurrency scams rose from the seventh riskiest in 2020 to the second riskiest in 2021.　　People aged 25 and 64 are more likely to be victims.　　Women are targeted more than men.　　Cryptocurrency scams have the dubious honor of now being the second most popular way of defrauding consumers, a report says.　　The Better Business Bureau (BBB) Scam Tracker showed that cryptocurrency scams rose from the seventh riskiest in 2020 to the second riskiest in 2021.　　According to the BBB Scam Tracker, although cryptocurrency scams made up only 1.9% of the scams reported to BBB Scam Tracker, the median dollar loss was $1,200, much higher than the overall median dollar loss of $169.　　More than 66% of people reported losing money when targeted by this type of scam.　　However, researchers noted one positive finding from the 2021 report, showing susceptibility, or the percentage of consumers who reported losing money when exposed to a scam, falling for the first time since 2017. The figure decreased by 8.4% from 46.7% in 2020 to 42.8% last year.　　Victims of scams are typically aged between 25 and 64　　Researchers said cryptocurrency scams affect people aged from 25 to 64 the most. Scammers use social media to lure their victims through promises

2022-03-11Deep Dive

Dubai Approves First Law to Regulate Digital Assets, Establishes Regulator to Oversee Crypto Sector

Crypto Sector Regulated in Dubai　　The emirate of Dubai has adopted its first law to regulate crypto assets and established a regulator to oversee crypto activities and regulate crypto service providers.　　The official Twitter account for Sheikh Mohammed bin Rashid Al Maktoum announced Wednesday that the first virtual assets law has been approved in Dubai and the Dubai Virtual Assets Regulatory Authority (VARA) has been established.　　Sheikh Mohammed commented:　　The goal [is to] establish the UAE and Dubais position as a key player in designing the future of virtual assets globally.　　The ruler of Dubai, Sheikh Mohammed, is also the vice president and prime minister of the United Arab Emirates (UAE), a federation of seven emirates. He previously held the positions of head of Dubai Police and Public security, as well as the minister of defence.　　Noting that this law is the first of its kind to regulate virtual assets, Sheikh Mohammed opined:　　We established an independent authority to oversee the development of the best business environment in the world … in terms of regulation, licensing, [and] governance.　　According to the announcement, the Dubai Virtual Asset Regulatory Authority is tasked with overseeing the trading and issuance of “virtual assets and virtual tokens.” It is also responsible for authorizing

2022-03-11Deep Dive

What Are Decentralized Apps?

The Blockchain Makes dApps Possible　　Since Bitcoin launched more than a decade ago, blockchain protocols are constantly being developed and refined to unlock new functionalities and use cases. Now there is a budding industry of decentralized applications (dApps) built on blockchain — everything from finance to gaming to web browsing to collecting art.　　Though most dApps are built with Ethereum, all dApps are built using blockchain technology. These dApps rely on blockchains to process data through distributed networks and execute transactions with smart contracts. Smart contracts are automated, self-executing agreements that make transactions between two parties seamless, quick, and automatic. They are the key element of dApp technology, and can be combined to create powerful software which can be applied across different industries.　　Just like developers build applications for mobile and desktop devices, dApp developers create applications to function on specific blockchain networks. The vast majority of dApp development is on the Ethereum blockchain. As a result, the Ethereum blockchain supports the vast majority of activity across the dApp ecosystem.Web Apps vs. Decentralized Apps　　Trello, Slack, and Twitter are examples of companies that offer web applications. The usability of traditional web applications depends on two elements: the front end and the back end. Web

2022-03-11Deep Dive

Metaverse Market Could Be Worth $678B by 2030, Research Data Shows

Grand View Research has published a report on the metaverse. The report points to some optimistic numbers for the entertainment medium, with a potential market size of $678.8 billion by 2030.　　Research data released by Grand View Research shows that the metaverse market could be worth as much as $678.8 billion by 2030. In 2021, that figure was estimated to be $38.85 billion, and the expected compounded annual growth rate (CAGR) over the decade is 39.4%.　　Metaverse market size: Grand View Research　　The insights from the report are in line with the opinion on the metaverse at the movement, with many industry insiders believing that it will be a key part of the entertainment medium going forward. The report notes that the evolution of the digital world through the Internet, along with the growth of AR, VR, and MR, will support the metaverses expansion.　　As specific examples, Grand View Research points to Fortnite, Roblox, Minecraft, as well as the decentralized projects of Decentraland and The Sandbox. These have all large user bases and have been engaging, with active monthly users topping 600 million collectively.　　The firm marked the growing demand for digital assets and expanded B2B and B2C opportunities as the drives for the metaverse

2022-03-11Deep Dive

Digital Assets: Cryptocurrencies vs. Tokens

What Is a Digital Asset？　　If you‘re just starting out in blockchain and cryptocurrency, it’s essential to understand the difference between digital assets, cryptocurrencies, and tokens. While these terms are often used interchangeably, they are different in a number of key ways. Broadly speaking, a digital asset is a non-tangible asset that is created, traded, and stored in a digital format. In the context of blockchain, digital assets include cryptocurrency and crypto tokens.　　Cryptocurrency and tokens are unique subclasses of digital assets that utilize cryptography, an advanced encryption technique that assures the authenticity of crypto assets by eradicating the possibility of counterfeiting or double-spending.　　The key differentiation between the two classes of digital asset is that cryptocurrencies are the native asset of a blockchain — like BTC or ETH — whereas tokens are created as part of a platform that is built on an existing blockchain, like the many ERC-20 tokens that make up the Ethereum ecosystem.What Is a Cryptocurrency？　　A cryptocurrency is the native asset of a blockchain network that can be traded, utilized as a medium of exchange, and used as a store of value. A cryptocurrency is issued directly by the blockchain protocol on which it runs, which is why it

2022-03-11Deep Dive

What Web 3 Can Learn From Steve Jobs

Legendary technologist and Apple (AAPL) CEO Steve Jobs may have been better with words than he was with design. He recognized that “every once in a while, a revolutionary product comes along that changes everything.” From the printing press to the telegram to the iPhone – these products not only changed entire industries, they changed the world and the way we interact with it.　　When Steve Jobs introduced the iPhone in 2007, he emphasized its innovative user interface that replaced the typical smartphone keyboard with a wide, multi-touch screen. As he predicted, this breakthrough product decision created a new standard for consumer hardware and led to competitive innovations. There likely would be no Snapchat or WhatsApp without the iPhone.　　Today, enthusiasts hope that Web 3 changes everything. Its differentiating technology, smart contracts made up of immutable code and data on the blockchain, aims to cut out the need for middlemen in finance to help creators retain ownership and more. Similar to the iPhones trajectory, enthusiasts posit that smart contracts innovation will create new and improved industries and behaviors.　　However, products built using smart contracts are more analogous to early smartphones than the iPhone. They are miles away from decentralization, aggressively technical and composed

2022-03-11Deep Dive

...

295297

...

737