Crypto Guides, Knowledge & Insights

Cardano Creator Says Dogecoin Is Existential Threat to Crypto Space

Cardano (ADA) founder Charles Hoskinson is not a fan of Dogecoin (DOGE).　　In a new update on the state of Cardano and the crypto markets, Hoskinson says DOGE isnt sustainable and is likely to result in a systemic, catastrophic failure that will disenfranchise millions of investors.　　He believes such an event could “destroy the reputation” of the crypto industry and even lead to more stringent regulations.　　The Input Output Hong Kong (IOHK) chief executive says the root of the problem is that people arent buying Dogecoin for its utility.　　When someone buys DOGE, if you look at the commentary of the community, 99% is, ‘We’re going to get rich.　　The only way you get rich with DOGE is if you take your Dogecoin and sell it to someone else. So that other person, you have to ask – why are they buying it？　　Are they purchasing that because they intend on using it for something？ Or are they purchasing that because they want to get a 10x？　　If that mentality persists, there are only so many doublings you can have before it doesnt happen anymore and then a panic sale happens.　　Hoskinson points to a high concentration of wealth as another potential issue for investors.　　And if you look

2021-05-07Deep Dive

Norway’s minister of climate Sveinung Rotevatn is a Bitcoin ‘hodler’

Norways minister of climate and environment Sveinung Rotevatn sits on a stack of Bitcoin, he revealed in an interview this week.　　“[Its] a well-suited store of value,” he said, adding that mining—using powerful computing equipment to validate transactions on and maintain the network—did pose considerable environmental challenges.　　Going Bitcoin　　Norway is popularly known for its high-tech finance industry and is one of the few ‘cashless’ countries on the planet. Only 4% of all payments are conducted with banknotes and coins.　　But the adoption of digital payments hasn‘t quite spilled over to the crypto space: Its central bank has previously stated Bitcoin “doesn’t preserve stability” and is “far too costly.”　　“The basic property and task for a central bank and central-bank currency is to provide stability in the value of money and in the system, and that is not done by Bitcoin,” said Oystein Olsen, the governor of Norges Bank, in a statement earlier this year.　　Rotevatn, however, has a different way of seeing it. “What might make Bitcoin so exciting is that it has some of the same properties. You cant suddenly discover a ton of Bitcoin somewhere, giving one country huge reserves,” he said, adding:　　“It‘s spread evenly, it grows slowly, but steadily, and has a

2021-05-07Deep Dive

Reports suggest Goldman Sachs is now offering Bitcoin derivatives

According to a new report, the firm is offering investors access to crypto through non-deliverable forwards.　　Investment banking giant Goldman Sachs has reportedly opened up futures trading on Bitcoin to Wall Street executives.　　According to Bloomberg Law, last month the investment firm began offering trading with non-deliverable forwards, a derivative tied to the price of Bitcoin (BTC) — roughly $56,000 at the time of publication — for which investors can be paid in fiat. Goldman Sachs reportedly lessens its risk to the crypto assets infamous volatility by buying and selling Bitcoin futures in block trades on the Chicago Mercantile Exchange using the crypto trading unit of DRW Holdings, Cumberland.　　“Institutional demand continues to grow significantly in this space, and being able to work with partners like Cumberland will help us expand our capabilities,” said Goldmans Asia-Pacific head of digital assets, Max Minton. He added that the offering was paving the way for the company “to evolve our nascent cash-settled crypto-currency capabilities.”　　Goldman has seemingly been increasing its exposure to the crypto market following price surges in tokens and institutional players like Tesla adopting cryptocurrencies. Rumors persisted that the investment firm planned to set up a cryptocurrency trading desk after first announcing one during the

2021-05-07Deep Dive

Will Elon Musk’s ‘SNL’ Appearance Send Dogecoin to the Moon? Curb Your Enthusiasm

A mere mention on TV would give dogecoin (DOGE, +2.92%) (DOGE) huge mainstream exposure. But Aprils “Dogeday” flop suggests the “Elon effect” may be priced in.　　Only in the looking-glass world of 2021 could a late-night comedy show have the potential to move markets. Dogecoin fans are hoping for another price surge this weekend when Elon Musk, co-founder of Tesla and SpaceX, hosts the U.S. television program “Saturday Night Live.” Numerous fans have asked the billionaire entrepreneur to mention the meme-inspired cryptocurrency in one of his sketches. In a tweet last week, the billionaire Tesla CEO strongly hinted he would do so: “The Dogefather SNL May 8”.　　The episode is scheduled to air at 11:30 p.m. Eastern time Saturday, or 03:30 UTC Sunday, on the NBC television network.　　Why could this be a big deal for dogecoin？　　Merely mentioning the dog-themed cryptocurrency on the air would give the digital asset significant exposure to a mainstream audience. So far, the 46th season of “SNL” has ranked as the number 1 U.S. comedy show in terms of viewers, with 4.1% of the American population aged 18-49 tuning in. So there‘ll likely be plenty of people watching Musk and musical guest Miley Cyrus who haven’t come across

2021-05-07Deep Dive

German Regulator Refuses to Budge in Binance Stock Token Dispute

The Federal Financial Supervisory Authority (BaFin), the German financial markets regulator, has turned down a plea from the crypto exchange giant Binance to remove warnings about stock or inventory tokens – coins meant to represent shares in American stock market-listed firms.　　BaFin last month posted warnings on its website about possible securities law violations connected with the tokens, claiming that such offerings must be accompanied by regulator-approved investment prospectus documentation.　　Binance must either succeed in changing BaFin‘s mind before next week’s deadline, delist the tokens – or face a fine. The exchange may have to fork out USD 6m or 3% of its latest annual revenue takings. It could also have to cover investors losses, BaFin warned.　　Per the Financial Times, sources familiar with the matter recounted that Binance had sought to convince BaFin that the regulator had “misunderstood” the nature of the offering and should thus remove the warnings. However, BaFi appears to be resolute on the matter, claiming that the lack of accompanying documentation constituted “a criminal offense.”　　Binance reportedly told BaFin that its stock tokens are “not securities,” as they are traded through a third-party broker, and thus may not be transferred to other customers or exchanges.　　However, the Financial Times quoted

2021-05-07Deep Dive

Deep tech: Why C-suite execs are pursuing blockchain

Blockchain is seen as a major area of interest among enterprises looking to invest in deep-tech solutions, a new report suggests.　　An industry-wide survey conducted by quantum computing firm Seeqc reveals that 67% of executive decision-makers fear falling behind competitors when it comes to emerging technologies. With this in mind, 57% of large enterprises are actively developing deep-tech solutions in order to solve specific business problems, and blockchain is among their top five areas of interest.　　“Deep tech” is an applied technology that aims to solve previously insurmountable problems using new scientific techniques.　　The report by Seeqc reveals machine learning and artificial intelligence to be the main areas of interest for firms pursuing deep-tech solutions, with 50% of respondents naming them their number one concern.　　The next most common deep-tech application prioritized by companies is 3D printing on a large scale (35%), followed by renewable energy solutions (34%) and quantum computing (34%).　　Some 32% of respondents highlighted blockchain and cryptocurrency as their main focus, ahead of drones and advanced robotics (29%), climate change mitigation (29%), satellites and space technology (25%), autonomous vehicles (23%), and neuromorphic computing (23%).　　When queried as to why they were pursuing deep-tech implementations, a majority of respondents said they had witnessed competitors

2021-05-07Deep Dive

Citi bank is considering launching crypto trading and custody services

Banking giant Citigroup is considering launching crypto trading, custody, and financing services.　　Itay Tuchman, Citis global head of foreign exchange, told the Financial Times in a report published Friday that the bank had seen a “very rapid” accumulation of interest in bitcoin from large clients since last August.　　“There are different options from our perspective and we are considering where we can best service clients. This is not going to be a prop-trading effort,” said Tuchman, referring to proprietary trading in which banks trade with their own money to make a profit.　　Citi, however, is in no rush to launch crypto services. Tuchman said the bank would jump in when it is confident it can build something that benefits clients and that regulators can support.　　“I dont have any FOMO [fear of missing out] because I believe that crypto is here to stay and that we are just at the very beginning of the market,” he said. “This isnt a space race. There is room for more than just one flag.”　　In March, Citi published a report saying that bitcoin could become “an international trade currency” as it evolves. “Perceptions about what makes bitcoin important continue to evolve and create new opportunities while increasing its

2021-05-07Deep Dive

Mastercard Survey Shows High Consumer Interest In Bitcoin

A recent survey by the electronic payment giant Mastercard indicates that 4 in 10 people (40%) intend to utilize digital currencies such as Bitcoin as a payment method within the next year. The figures involved in this finding spanned all ages and included residents from four regions – North America, Asia Pacific, the Middle East, Africa, Latin America, and the Caribbean.　　The survey, titled “Consumer Appetite for Digital Payments Takes Off”, was conducted through online interviews among more than 15,000 consumers from 18 different countries located in four regions worldwide.　　Initially forced by the pandemic lockdown, consumers shifted their payment methods to embrace innovations that enable contactless, fast, and flexible payment. Now, more than a year later, a survey from Mastercard reveals that consumer interest in new payment technologies is soaring, with an insatiable appetite for the emerging digital and crypto environment.　　According to the survey, 93% of people will try at least one of the emerging payment methods – cryptocurrency, QR code, biometrics – within the next year. Almost two-thirds of respondents (63%) admit they have used a new payment method they would not have utilized if not confronted by the pandemic.　　“The pandemic made us think differently, partly out of necessity,” said

2021-05-07Deep Dive

Consensus 2021: Rebuilding the Internet With Blockchain Broadcasting

Blockchain technology is a powerful tool for broadcasting and recording information, Red Dates Yifan He says.　　The names we have for blockchain and distributed ledger technologies (DLTs) are entirely inappropriate. They describe ways to store data, which does not capture its function as a new way to transmit it. What makes blockchain so transformative is its data transmission protocol. It distributes data in a manner of “broadcasting,” as opposed to linear transmissions the vast majority of IT processes use.　　At this time, cryptocurrencies happen to be the simplest and by far the most common use case for blockchain tech, but I have my eyes set on a future where blockchain innovates the internet as we know it.　　Yifan He is founder and CEO of Red Date Tech, the architect firm behind Chinas Blockchain Service Network (BSN). He will be speaking at CoinDesks virtual event Consensus 2021, May 24-27.　　In the early days of the internet, transferring data between individual computers was a manual process, often involving tapes, floppy disks or CDs. The basic premise was to transfer data within seconds, and linking all computers, everywhere, is what makes the “World Wide Web.”　　Weve all seen the changes this data transmission technology has brought to the

2021-05-07Deep Dive

Dogecoin Demand Crashes India’s Largest Crypto Exchange

Indias largest crypto exchange by trading volume, WazirX, has been struggling to meet the skyrocketing demand for Dogecoin.　　Global DOGE trading volumes tripled between May 3 and 5 to over $42 billion. According to WazirX Founder and CEO Nischal Shetty, this caused the exchanges systems to crash because the surging volumes were wrongly perceived as a cyberattack;　　“On May 4, one of our systems—on detecting high traffic—wrongly marked it as bad traffic and started blocking the requests,” he said. “It was good traffic, and this error caused our users to have intermittent access to the app.”　　WazirXs issues　　Shetty remarked that the Dogecoin surge even “caused an almost decade-old company like Robinhood to go down.” He added that his company is only three years old, but that no other crypto exchange in India has seen that amount of traffic.　　Since January, the company has grown over 300%. “We‘re seeing a new all-time-high everyday in terms of trading volumes, active users, and traffic on WazirX,” Shetty exclaimed. However, as the company grows, WazirX has found it challenging to keep up with the growing demand. Dogecoin aside, this isn’t the first time the exchange has had issues.　　Many complaints have surfaced on crypto user chat groups on Telegram

2021-05-07Deep Dive

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