Crypto Guides, Knowledge & Insights

DeFi dApps show low growth compared to Ethereum activity, JPMorgan finds

Over the past year, DeFis rise has been aggressive in terms of prices; however, this is just the face value as its growth, volume-wise, leaves a lot to discuss. This was revealed by an analysis carried out by strategists at JPMorgan.DeFi‘s growth has been slow but steady　　According to the report, DeFi’s growth, in terms of dollar rise of Ethereum, is up by 780% this year. ETH, the native token of the second largest crypto asset by market cap, has risen by 540% in this year alone to over $4700.　　However, when the volume of the number of ETH tokens locked in the space is considered, the growth of the space is at a slow pace of 50% in 2021.　　Per Bloomberg:　　“The Ethereum network now has about a 70% share of DeFi activity, versus a near-total lock at the start of the year, the team added. The 50% estimated expansion adjusts for this shift.”　　The analysts pointed out that the space is still at its early stage and that the major concerns remain that of regulations. The analysts wrote:　　“There is little doubt that DeFi is still at early stages and thus has a lot of potential to grow over time, but until it becomes

2021-11-16Deep Dive

'Big Short' Investor Michael Burry Says 'I've Never Shorted Any Cryptocurrency'

Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, says that he has never shorted any cryptocurrency. He further warned that the current bubble is the biggest one.　　Michael Burry on Bubbles and Shorting Cryptocurrencies　　Famous investor and founder of private investment firm Scion Asset Management, Michael Burry, has confirmed on Twitter that he has never shorted cryptocurrency.　　Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.　　He tweeted Sunday: I‘ve never shorted any cryptocurrency. This is my third bubble, and the biggest. I’ve learned a thing or two. 30 year Treasuries on the other hand…　　In October, he said, “I believe that cryptocurrencies are in a bubble.” However, he clarified in an interview with CNBC that he had not been shorting cryptocurrencies despite tweeting about how to short them.　　“How do you short a cryptocurrency？ Do you have to secure a borrow？ Is there a short rebate？ Can the position be squeezed and called in？ In such volatile situations, I tend

2021-11-16Deep Dive

Ethereum-Based Holdings Among Institutions Up 19% in Q3: SEC Filings

Bitcoin institutional holdings were down last quarter while many of the same firms upped their stakes in Ethereum-based products, according to SEC filings.　　The number of Grayscale Bitcoin Trust shares held by large institutions dropped 2.6% in the third quarter, while the number of Grayscale Ethereum Trust shares rose 19% compared to last quarter.　　Altogether large institutional investment managers reported $546.8 million in GBTC and $74.6 million in ETHE, using today‘s share prices for the two trusts. Firms with at least $100 million in assets under management are required to file a 13F form within 45 days of the end of the quarter to disclose what’s in their portfolio.　　In the latest batch of regulatory filings, 10 new firms disclosed that they had ETHE in their portfolios. The two largest were NYC-based Tocqueville Asset Management, with 79,398 shares of the Ethereum trust, and San Francisco-based Main Management ETF Advisors, with 78,000 shares.　　The growing interest in having indirect exposure to Ethereum through the trust could be coming from all the institutional excitement around DeFi, a catch-all term used to describe financial products that allow their users to borrow, lend, or trade crypto assets without an intermediary. As Decrypts Liam Kelly pointed out last month

2021-11-16Deep Dive

Why The Bitcoin Taproot Upgrade Did Not Have A Memorable Impact On Bitcoin’s Price

Bitcoins Taproot Upgrade went live on Saturday after months in the making.　　The upgrade was expected to have a measure of impact on the assets pricing after going live but so far, prices have been uneventful.　　Bitcoin currently trades at $63,997 which is a 1.13% decrease over the last 24 hours.　　The widely anticipated Bitcoin Taproot Upgrade has gone live but the assets pricing did not match the buzz it generated. Some analysts believe that it has already been priced into Bitcoin while others argue that the real effect lies in the future.　　The Bitcoin Taproot Upgrade　　Bitcoins first significant upgrade in nearly four years went live over the weekend at block 709,632 amid excitement over the improved functionalities that it heralds for the network. Improved privacy, security, and scalability are some of the features that the Taproot Upgrade brings to Bitcoin.　　According to Alyse Killeen, “Taproot matters because it opens a breadth of opportunity for entrepreneurs interested in expanding bitcoins utility.” The upgrade is one of importance because of its wide acceptability by a majority of stakeholders which is in stark contrast with the Segregated Witness upgrade of 2017 that nearly split the network.　　Apart from the improved functionalities that it offers, Bitcoin bull rubbed their

2021-11-16Deep Dive

After Memecoins: Is This The Next Trend in Crypto?

The cryptocurrency space is a dynamic one, and there are no two ways around it. Trends come and go. Some of them last, some of them dont. Some of them resurface, while others are never to be seen again, cast away into oblivion.　　Over the past month, we saw memcoins making a massive comeback. This time around, though, it wasnt Dogecoin leading the pack – Shiba Inu (SHIB) was the pick of the litter. And yet, over the past few days, it seems as if the euphoria is cooling off.　　But when one hype train parts in the distance, another one approaches, and in crypto today, it seems that this train carries the Metaverse bandwagon.　　But lets start from the get-go.　　Is The Shiba Inu (SHIB) Mania Fading？　　Well, this would strongly depend on your definition of fading, but for the sake of this long-form, lets assume a cryptocurrency mindset. Shiba Inu (SHIB) was regularly surging by double-digits per day a couple of weeks back.　　Articles about SHIB millionaires and billionaires were popping left and right, while other cryptocurrencies, largely based on the same concept, saw massive growth. We saw coins like Floki Inu, Baby Doge, Dogelon Mars, and whatnot skyrocket, literally printing money for those

2021-11-16Deep Dive

Taiwan regulators list Crypto under new category to impose stricter policies

Taiwan authorities have struck back after a long haul, changing the game for crypto businesses in the area. At the latest Cabinet meeting, Taiwan‘s Ministry of Economic Affairs (MOEA) announced the switch, changing the crypto businesses’ category, further listing them under “finance, insurance, and real estate” as “virtual currency platforms and trading businesses”, after removing them from the “software design services” category. In accordance with this switch, now the Financial Supervisory Commission (FSC) will serve as the core authority responsible for legal oversight, along with carving out and updating the taxation policies for cryptocurrency businesses. This was done with the sole intent to crackdown on crypto in Taiwan, as the areas legislative body has already begun actively taking initiatives to clamp down crypto loopholes to further protect local investors and consumers.　　Taiwan chooses Middle ground for Crypto Regulation　　However, this move should not be surprising given the FSC Chairman, Huang Tien-mus actions at the beginning of this month. He had met with “major ministries” and government entities, such as the Central Bank, the Ministry of Finance, the Ministry of Economy, and the National Development Council to discuss possible regulatory action for “the management” of crypto assets in Taiwan.　　Related article　　According to the China

2021-11-16Deep Dive

Apple CEO - Tim Cook admits he invests in Crypto Currencies but not his Company.

The Billionaire and CEO of Apple Incorporation - Tim Cook has revealed last week at the New York Times DealBook online conference that he personally owns and invests in Crypto Currencies. On the contrary, he elucidated that his company wont be investing in it, at least any time soon. He further considers investment in Crypto as a lucrative adventures but disclaims that his admission is by no means a general assurance to all who invest in Crypto as the market is marked by instability with potential risks. Hence the need for caution in investments.　　Speaking at the New York Times DealBook online conference last Tuesday, Apple CEO Tim Cook has admitted he owns cryptocurrency.　　Without hiding the reality, Cook responding to the question posed to him by Andrew Ross Sorkin, who was hosting the New York Times‘ two-day online summit boldly asserted that he personally owns cryptocurrency, but his company won’t be investing in it.　　Speaking further, Crook dismissed the idea of accepting cryptocurrency via Apple Pay anytime soon. He explained that Apple is “looking at” crypto, but has no plans to launch such functionality in Apple Pay.　　Nonetheless, with regards to Apple stocks and cryptocurrency, the Apple CEO noted that unlike Tesla, Apple

2021-11-15Deep Dive

Deciding whether to invest in Bitcoin? Here are the other big names in crypto

Cryptocurrencies have hit new all-time highs this month as they become more appealing to mainstream investors.　　Bitcoin, the most popular digital currency, soared to a new all-time high of nearly $70,000 per coin this week. It has climbed almost 125% this year, while the good old Ss biggest names, most notably JPMorgan (JPM) CEO Jamie Dimon, remain skeptical of cryptos staying power.　　For investors new to the space, the myriad of coins can be daunting. Heres an overview of the five biggest cryptocurrencies.Bitcoin　　Bitcoin has always been the biggest player in the cryptoverse, and is now worth more than $1.2 trillion in market capitalization, according to CoinMarketCap.　　Its new all-time high makes it more than 10 times more valuable per unit than the next biggest crypto.　　Launched by an anonymous creator in 2009, the digital currency runs on blockchain technology — another crypto buzzword. Essentially, the blockchain is a decentralized ledger system where records of transactions are stored. Thats the key difference between bitcoin and traditional fiat currencies like the US dollar or the euro, which are controlled by central banks.　　Many bitcoin bulls call it a “store of value” — a label historically reserved for safe haven investments like gold — and argue that that

2021-11-15Deep Dive

Look out below! Dogecoin risks further downside after a key support is tested

Dogecoin (DOGE) is potentially at risk of losing critical support if the price falls from the ascending channel traded in for the last 53 days. Although technical analysis is not an exact science, a daily close below $0.26 will likely invalidate the current movement.　　DOGE/USD price at FTX. Source: TradingView　　Aside from the Bitcoin (BTC)-driven headwinds, which are weighing on DOGE price, the meme token this week underwent a software upgrade, and users were requested to implement version 1.14.5. Two important security patches were involved: “Remote Code Execution in Dogecoin QT” (CVE-2021-3401) and “Sensitive Information Exposure on Unix platforms” (CVE-2019-15947).　　The latest release finalized a new minimum fee recommendation, following a previous versions reduction of relay and mining defaults. Additional changes included Berkley DB and OpenSSL updates and SLIP44 compatibility for the HD wallet deviation path.Binance faced issues after the upgrade　　Even though users and developers did not experience any setbacks from the changes, crypto exchange Binance unexpectedly suspended all Dogecoin network withdrawals on Nov. 11.　　“Michilumin,” a Dogecoin core developer, explained that Binance had pending transactions due to insufficient fees for a couple of years. Despite recommendations by DOGE developers, the exchange failed to redirect those dormant transactions to their own wallets.　　As the 1.14.5

2021-11-15Deep Dive

Tesla Sales Could Stall Due to Predicted Battery Component Shortage

Elon Musk calls himself the “Technoking of Tesla,” but a new report warning of a possible shortage of lithium batteries - like the ones used in Tesla models - could scuttle his highnesses edicts for a sub-$25,000 electric vehicle (EV), slowing mass adoption of his vehicles.　　According to GlobalData, electric car manufacturers based in the West are expected to have difficulty sourcing lithium-ion minerals for new EV batteries as demand for eco-friendly autos accelerates in the near future. The report found that EV output is projected to exceed 12.7 million cars a year by 2026, with a majority of those green machines being made in China.　　In the meantime, the research goes on to state that this increased EV production and demand will drive component battery prices higher, erode profit margins, and end hopes of a $100 per kWh battery. Without that kind of an affordable recharging option to power EV production and sales, mass adoption of electric-powered cars is likely to decelerate to a “green dream” instead of a racing commercial reality.　　On its website, the International Lithium Association states that natural lithium minerals are relatively abundant and found in many countries including: Australia, Chile, Argentina, Bolivia, China, Brazil, Zimbabwe, and Portugal.

2021-11-15Deep Dive