Crypto Guides, Knowledge & Insights

The Squid Game “meme coin” debacle shows—again—why India badly needs crypto regulation

A suspected scam involving a meme coin based on the hit Netflix show Squid Game has left the global cryptocurrency ecosystem shocked. In India, it has, once again, highlighted the need for regulation.　　The Squid Game token experienced a meteoric rise soon after its launch a few weeks ago and a swift market crash last week saw investors lose millions of dollars.　　Despite the industrys efforts to educate crypto enthusiasts, many Indian investors burnt their fingers in the frenzy.　　“I bought the SquidGame Token and it was the worst decision of my life…lost a ton of money,” an Indian investor who goes by the username Gamer Genie on Twitter told Quartz. He has lost around $11,500.　　The fiasco is not the first. It is unlikely to be the last either.　　For instance, in September 2020, the creator of SushiSwap disappeared following a $13 million (96.6 crore rupees) “rug pull”—when a tokens creators abruptly abandon it, exchanging many virtual coins for real-world cash.　　This is why ‘do your own research’ before investing is key.　　“It is very important for investors to research new token projects before investing,” Kapil Rathi, CEO and founder of global cryptocurrency trading platform CrossTower said. “In one sense, we have innovation that we do

2021-11-08Deep Dive

Crypto Should Be Taught at New York City Schools, Says Mayor-Elect Eric Adams

During a CNN interview that took place on Nov. 7, New York City Mayor-elect Eric Adams said that crypto and blockchain should be taught at schools in the “Big Apple”:　　“And thats what we must do — open our schools to teach the technology and teach this new way of thinking.”　　The 61-year-old politician made a case for increasing cryptocurrency awareness among young people.　　The newly elected mayor also said that he was going to consider encouraging merchants to accept Bitcoin.　　Adams, however, added that the city wont be in a rush to act on such an initiative:　　“We are going to look at it, and we are going to tread carefully. We are going to get it right.”　　As reported by U.Today, the mayor-elect made waves on Twitter earlier this week by announcing that he would receive his first three paychecks in Bitcoin.　　For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.

2021-11-08Deep Dive

Bloomberg Report Reveals Gloomy Future For ‘Ethereum-Facilitated’ Meme Coin Shiba Inu

Key takeaways　　Bloombergs McGlone calls Ethereum the facilitator of meme coin Shiba Inu (SHIB).　　In its November Crypto Outlook report, Bloomberg states that SHIB is just a well-marketed fad like many other cryptocurrencies.　　The report expects SHIB to crash while Bitcoin solidifies its position.　　Bloomberg‘s November Crypto Outlook is out. In it, Bloomberg reiterated its dismissal of the rave of the moment meme token Shiba Inu (SHIB). The report has named the world’s second-largest cryptocurrency Ethereum (ETH) to be the facilitator of the joke coin.　　Authored by Mike McGlone, Bloomberg Intelligences senior commodity strategist, the publication argues that SHIB has surged along with ETH because its low price has “captivated punters” who are willing to risk small sums on the meme coin.　　As an instance of this thinking among investors, the report noted that a $100 investment in SHIB at market price as of October 29 would give the investor 1.4 million SHIB coins as compared to 0.0016 Bitcoin.　　It supports this argument with a graphic with the same title – Ethereum is the Shiba Inu Facilitator – that depicts SHIBs surge tracking that of Ethereum very closely.　　Source: Bloomberg November Crypto Outlook　　Another reason cited is the fact that with SHIB being an ERC-20 token, it is

2021-11-08Deep Dive

Brazilian Federal Deputy Proposes Crypto Payment Option for Workers

Brazilian Federal Deputy and congressman Luizão Goulart, has proposed a bill to make crypto a legal form of payment for workers in the public and private sector.　　Brazilian Federal Deputy Seeking to Legalize Crypto Remunerations　　Goularts proposal is looking to establish a new law that will allow all Brazilian workers to have an option to request their wages and salaries from their employers, in cryptocurrencies. But the bill warrants crypto payments to be made only after a mutual agreement has been reached between the workers and the employer. The translated version of the bill reads thus:　　“The limits of the percentage of payment (remuneration) in cryptocurrencies will be of the workers free choice. Any imposition by the employer will be prohibited.”　　The bill considers the evolution of finance — from a barter system to fiat currencies, and then to Bitcoin (BTC).　　Should it be signed into law, the Brazilian federal deputy Goulart‘s bill, will establish a consensus between a particular worker and their employer for predetermining what percentage of the worker’s remuneration will be in crypto and fiat.　　Goulart also explained further on the need to create a kind of global economy that will improve the daily lives of citizens while also providing a good quality

2021-11-08Deep Dive

Goldman Sachs Predicts Ethereum Could Reach $8,000 Before The End Of 2021

Analysts believe that there is enough room for Ethereum to increase in value before the year runs out. Goldman Sachs is the latest institution to forecast impressive numbers for the asset, despite competing networks threatening to reduce its market share.　　$8,000 Before The End Of 2021　　Goldman Sachs thinks Ethereum is underpriced and could attain $8000 before the end of the year. The banks analysis was contained in a research note that was shared by Bernhard Rzymelka and hinged upon similar trading patterns with inflation breakevens since 2019.　　The banks analyst relied on a chart showing the Bloomberg Galaxy Crypto index and the 2-year inflation swap. Gleaning from the chart, they surmised that the context looks promising for Ethereum, particularly as it has previously tracked inflation markets and its cyclical nature could be a positive indicator.　　“The market has started to press against the all-time high with a narrowing wedge: Either a sign of exhaustion or peaking – or a starting point of an accelerating rally upon a break higher,” says the research note. If the tie-up with inflation continues, the investment bank believes that an $8,000 price is a feasible target for the asset.　　Ethereum has gone on to set a new record of

2021-11-08Deep Dive

Layer-two and multichain DeFi platforms see record inflows as Ethereum fees soar

Since October, multichain, compatible DeFi platforms have seen record inflows as investors and developers attempted to avoid the Ethereum network due to soaring gas fees.　　High transaction fees have been a persistent thorn in the side of investors and blockchain projects since at least 2014 when Ethereum co-creator Vitalik Buterin stated in reference to Bitcoin: “The ‘Internet of Money’ should not cost $0.05 per transaction. Its kind of absurd.”　　Fast forward to November 2021, and the simple act of approving a token so that it can be transacted on Uniswap can cost as much as $50 worth in Ether (ETH) depending on the time of day.　　Even layer-two solutions, which were billed as the protocols that would help solve the fee issue, have been unable to escape the high-fee curse of congested networks as new users onboard into the cryptocurrency ecosystem by the day.　　Users migrate to low-fee networks　　As a result of persistently high Ethereum fees, a growing number of users are bridging assets to lower-cost Ethereum Virtual Machine-compatible networks. Data from Dune Analytics shows that the total value locked (TVL) on bridge protocols has been on the uptrend since the beginning of October.　　As shown on the chart above, the Ronin bridge has become

2021-11-08Deep Dive

Billionaire Stan Druckenmiller Warns Crypto, Meme Stocks, Bonds Are in a Bubble

Billionaire investor Stan Druckenmiller has warned that everything is in a bubble, mentioning cryptocurrency, meme stocks, equities, and bonds in particular. “This bubble is in everything, every asset on the planet,” Druckenmiller stressed.　　Druckenmillers Warning: Every Asset Is in a Bubble　　Stan Druckenmiller discussed bubbles and value investing last week in a conversation with American billionaire investor and hedge fund manager Seth Klarman at the Boston Investment Conference.　　Druckenmiller is chairman and CEO of Duquesne Family Office LLC. He was previously a managing director at Soros Fund Management where he had overall responsibility for funds with a peak asset value of $22 billion. According to Forbes list of billionaires, his personal net worth is currently $6.8 billion.　　Klarman, who is the CEO of hedge fund Baupost Group, reportedly asked him: “If the bond market is what everybody‘s keying off of and the bond market is in a bubble, then everything’s a bubble, is that fair？”　　Druckenmiller replied: Yeah, crypto, meme stocks, art, wine, equities … This bubble is in everything, every asset on the planet.　　The current bubble is not a narrow one like the dot-com bubble, Druckenmiller emphasized. “Everybody tries to compare this with 99. That was a bubble in technology and, in some sense,

2021-11-08Deep Dive

Elon Musk To Sell 10% Of His Tesla Stocks To Buy Bitcoin? Community Speculates

The CEO of Tesla Elon Musk has shaken the finance world once more, and the consequences could impact Bitcoin. Via his Twitter account, Musk asked his followers if he should sell 10% or around $25 billion of his companys stocks as a result of potentially new tax requirements on unrealized gains to be implemented in the U.S.　　The Tweet was posted less than 2 hours ago, and it has already received over 1 million votes with 21 hours still to go. 54.2% of participants voted Yes on Musks proposal to sell his stocks, the rest have opposed the proposal. The car manufacturer asked:　　Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this？ I will abide by the results of this poll, whichever way it goes　　The tweet has received a lot of comments from Bitcoin and crypto investors. Some asked Musk to reinstate BTC payment for the companys products, others celebrated the potential attention that such massive sell could receive from U.S. regulators as a “bullish” sign for the crypto market.　　Bitcoin investor Anthony “Pomp” Pompliano replied:　　If you sell $20B+ of stock, the government will be able

2021-11-07Deep Dive

WHY BITCOIN IS CONSIDERED THE HONEY BADGER OF MONEY

If Bitcoin would be any animal, it would be the honey badger. The honey badger is notorious for its strength, resilience and toughness. A honey badger having a bad day has been known to aggressively intimidate lions and hyenas. Bee stings, snake bites and porcupine quills rarely penetrate a honey badgers skin.　　Roger Ver, an early promoter in the Bitcoin world, paid $1,500 a month to have a billboard brandishing a honey badger Bitcoin ad along Santa Claras Lawrence Expressway with the words “The Honey Badger of Money.”　　But what the hell do honey badger tendencies have to do with bitcoin, digital money stored on the internet？　　In the early years of Bitcoin, some miners attempted to attack and take over the Bitcoin blockchain network with a 51% hash attack to no avail. Governments have banned it and Wall Street investors like Warren Buffet have deemed it rat poison. Yet, Bitcoin remains intact and unscathed from the constant bombardment of hack attempts to suppress its market capital, like a honey badger accosted by bees, snakes or lions.　　In the realm of cryptocurrency, bitcoin is very similar to the 35-pound mammal that is impervious to pretty much anything thrown at it, including fear, uncertainty and

2021-11-07Deep Dive

How Solana Came Up In Crypto

The past 2 years have been witness to a major boom in the world of cryptocurrency, from coins both old and new. Solana has found its way in the crypto world where memes have become tokens, top dogs face challenges with new legislation and regulations, and some newcomers have been on the rise to puff out their chest and make a name.　　Amongst all of the madness, one coin in particular has turned heads and caught eyes in recent months. That coin is called Solana – also known as SOL. Lets take a quick dive into some of the details around Solana.A SOL That Shines Bright　　The initial idea for Solana was first published in 2017 by developer Anatoly Yakovenko, and SOL debuted last year in March. Its value started to surge in a notable way last summer.　　Solana is a public blockchain platform, and it is an open source and decentralized currency, with consensus achieved using proof of stake and proof of history. Once Solana officially launched, it was mainly designed to support smart contracts and the creation of decentralized applications, or dapps.　　Bloomberg and many others have cited Solana to be “a potential long-term” token and “the answer to rival Ethereum,” particularly

2021-11-07Deep Dive