Crypto Guides, Knowledge & Insights

Is SafeMoon Really… Safe? What Is It And Why It’s The Talk Of Crypto

Let‘s not kid ourselves, SafeMoon is trending because of the unprecedented price increase. The novel token grew 6000% in just a month, leaving the whole crypto industry speechless. It has since fallen tremendously, but the project is still in everyone’s mouth. The new Doge, people call it. Is that supposed to be a compliment？ Or is it an insult？　　What does this project offer, exactly？ What makes it special？ Why should I care？　　What Is SafeMoon？　　Lets answer those questions and analyze everything we know so far.　　Recently, their website announced that they reached one million holders. Impressive. On March 8th, 2021, CEO John Karony and CTO Thomas Smith launched SafeMoon. This self-proclaimed “fairly launched” DeFi token:　　Rewards its users for holding and penalizes those who sell it.　　The protocol automatically generates liquidity.　　The project is community-driven.　　In each trade, the protocol executes three functions:　　Reflection　　LP acquisition　　Burn　　About the Liquidity Provider acquisition, the whitepaper informs:　　In each trade, the transaction is taxed a 10% fee, which is split 2 ways:　　5% fee = redistributed to all existing holders　　5% fee is split 50/50 half of which is sold by the contract into BNB, while the other half of the SAFEMOON tokens are paired automatically with the previously mentioned BNB and added as a

2021-04-23Deep Dive

Algorand Blockchain Goes Carbon Neutral

Algorand, the firm behind the industry-first pure proof-of-stake foundational blockchain, has announced that it has achieved carbon neutrality and commits to become carbon negative going forward.　　Ecologically unsustainable and environmentally damaging carbon emissions has become one of the critical issues plaguing blockchain technology. From decentralized finance to non-fungible tokens, and even to alpha blockchains like Bitcoin and Ethereum, carbon emissions caused by crypto mining and transactional operations on blockchains that require increasingly power hungry proof of work have been criticized as unsustainable means to push forth blockchain as a core technology.　　“Algorand is experiencing accelerated adoption and network expansion. As this period of hyper growth continues, we find it crucial to operate at a carbon-negative level. Indeed sustainable growth is way better than growth,” shared Algorand founder Silvio Micali, who also designed “We understand that the mechanics of measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex. Thats why we are teaming up with ClimateTrade to continue and double-down on our eco-conscious efforts.”　　Algorand claims that transactions and digital asset creation on its blockchain produce several magnitudes less CO2 emissions, with an initial analysis indicating some 2 million times less carbon emission compared to proof of

2021-04-23Deep Dive

Report: Banking Giant Natwest to Refuse Service to Businesses That Accept Cryptocurrencies

The major retail and commercial financial institution National Westminster Bank (Natwest) has categorized cryptocurrencies as “high risk” and refuses to serve business customers who accept digital assets for payments. A Natwest board member, Morten Friis, explains the bank has no appetite for dealing with these types of customers as Natwest is taking a “cautious approach” toward this technology.　　Natwest Will Refuse to Do Business With Companies That Accept Cryptocurrencies　　Reports show that the popular UK-based financial incumbent and wealth manager Natwest is refusing to serve business customers who accept cryptocurrencies. The same bank established in 1968 from a merger between Westminster Bank and National Provincial that suffered from intense scrutiny after being involved in the stock market crash of 1987.　　The report written by theguardian.com‘s banking correspondent Kalyeena Makortoff explains that Morten Friis, a Natwest board member and head of the bank’s risk committee is taking an adverse approach toward crypto-assets. Friis notes that the bank has no cravings for dealing with crypto customers and digital assets are “high risk” from Natwests perspective.　　“We have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for

2021-04-23Deep Dive

Shark Tank’s Kevin O’Leary Slams Gold’s Environmental Impact, Says Bitcoin Becoming Sustainable

Investor and Shark Tank star Kevin O‘Leary says gold mining is harmful to the environment while Bitcoin mining’s carbon footprint is falling.　　In a new interview with Daniela Cambone of Stansberry Research, the entrepreneur argues that gold mining disrupts the earths fabric in an alarming way, leaving a giant carbon footprint in its wake.　　“There is no clean gold, you know. Theres just no green gold at all. It takes a tremendous amount of carbon to extract it from the ground…”　　“The amount of carbon that you create mining, digging, scratching, blowing stuff up, processing the gold, taking out you know the other elements of it is just brutal in terms of a carbon footprint. It couldnt be worse.”　　The Shark Tank star points out that Bitcoin mining is, on the other hand, becoming more environmentally friendly as some miners turn to renewable or less harmful sources of electricity such as natural gas.　　“There‘s a whole new generation of [Bitcoin] miners emerging in the Nordic countries, in Northern Canada, in Sweden, in Switzerland, in France, where they are using hydroelectricity, sometimes excess hydroelectricity, and flaring off natural gas where it’s being burned already to create electricity.”　　“So they‘re doing it on a carbon-neutral or reduced carbon

2021-04-23Deep Dive

European Regulators Eyeing Binance Over Stock Tokens

European regulators are looking into whether Binance is complying with securities rules following the launch of its stock tokens.　　Last week, Binance began offering stock tokens, which are worth the equivalent amount of a companys equity shares.　　Initially launching with Tesla, Binance now also offers stock tokens for rival crypto exchange Coinbases shares.　　The tokens are available to users outside the United States, China, and Turkey. However, European regulators are now scrutinizing Binance to see whether these new offerings comply with securities regulations.　　European regulators perspectives　　Financial regulators in Europe are trying to determine if the tokens adhere to rules governing transparency and corporate disclosures.　　The UKs Financial Conduct Authority (FCA) said it is, “working with the firm to understand the product, the regulations that may apply to it and how it is marketed.”　　However, the FCA also indicated that ultimately the responsibility lies with firms in determining if their products fall within the regulators purview.　　Meanwhile, German regulator BaFin declined to comment specifically on Binances case, citing “confidentially obligations.”　　However, it did say that they consider such tokens as securities, “if tokens are transferable, can be traded at a crypto exchange and are equipped with economic entitlements like dividends or cash settlements.”　　As such, they assert that security offerings

2021-04-23Deep Dive

This Is How Cardano’s First DEX Will Try To Disrupt DeFi

As Hard Fork Combinator (HFC) “Alonzo” approaches, more DeFi projects are emerging for Cardano. A few days ago, Input-Output Global (IOG) Marketing and Communications Director, Tim Harrison, said there is a “huge” interest from developers towards the platform and its smart contract capabilities.　　In that sense, a team of developers led by Ryan Morrison from Quant Digital launch Cardax. A project conceived to be Cardano‘s first decentralized exchange. According to an official post, the project is seeking $50,000 to finance the development of Cardax. The proposal has been made via Cardano’s Project CatalystFund 4.　　Morrison is a stake pool operator on this network with a background in marketing. His team is formed by “crypto enthusiasts” with experience working on projects like Celsius, Open Ocean, and Bitcoin EU, per the official post. They have set out to build a DEX with the following characteristics:　　Cardax is a decentralized exchange that will be powered by the Extended Automated Market Maker (EAMM) protocol. It aims to provide liquidity to projects that issue native tokens on Cardano. (…) which brought native tokens and multi-asset support to Cardano, there is an increased need to develop a native exchange.　　Cardanos First DEX Roadmap And Features　　The team behind Cardax seeks to

2021-04-23Deep Dive

What to Do When Crypto Prices Experience High Volatility

Cryptocurrency is a new and exciting phenomenon in the global financial market. In many ways, these currencies have unique qualities compared to other financial assets. One such feature is very high volatility.　　Crypto Volatility defines the rate at which an assets price varies with time. Prices move aggressively up and down daily. Many people have made millions in the market, while others have lost both large and small investments in the sudden market changes.　　This guide will primarily focus on how you can use the volatility to your advantage and tips on how to trade and ensure you stay calm in a volatile market.　　Why are Cryptos so Volatile？　　Ever wondered why cryptocurrencies are so volatile？ The crypto market has been highly volatile since day one, but it has become particularly wild in the last few years. Many factors determine the price fluctuations. Here are some of the leading market factors that contribute to cryptos high volatility:　　The crypto market is still new and immature　　Cryptocurrencies are only virtual; hence their price is purely determined by demand and supply　　High speculation　　Influence from the media and prevailing headlines　　Uncertainty of future value of cryptos　　High inflation nations　　Keep in mind, when dealing with high-risk investments, one wrong decision could wipe out

2021-04-23Deep Dive

These Countries Banned Cryptocurrencies, Here’s Why

IN BRIEF　　Multiple countries have banned cryptocurrencies entirely.　　Many state illegal activities and a lack of central control as the reasons for the ban.　　Most recently, Turkey outlawed cryptocurrency payments.　　The relationship between governments and cryptocurrencies has always been tense. In some countries, this has led to outright bans on buying, owning, and trading.　　The outright prohibition of cryptocurrencies mainly happened around 2017 and 2018, coinciding with bitcoins (BTC) bull run. As central banks and governments noticed the surge in interest in cryptocurrencies, ignoring this growing market was no longer an option.　　While those were the biggest years for bans, some countries continue to consider prohibitions on these coins they cant control.　　Turkey bans crypto payments　　Most recently, the central bank of Turkey enacted a ban on cryptocurrency payments. However, this move wasnt a surprise, as the country had been tightening restrictions on the cryptocurrency exchanges over the last few months.　　Turkey‘s reason for this ban is the lack of regulation and a central authority for the coins. They consider this a risk to investors who can’t recover any losses.　　India continues to threaten a ban　　Indias government has yet to pass anti-crypto regulations. However, a draft bill proposing the ban on private cryptocurrencies will soon go before the Indian parliament.

2021-04-23Deep Dive

Bitcoin dominance is about to drop below 50% for the first time in 3 years

Bitcoin (BTC) revisited recent lows near $52,000 on April 22 as sustained weakness continued for the largest cryptocurrency.　　BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview　　Traders await altcoin “magic”　　Cointelegraph Markets Pro and Tradingview revealed a lackluster day for BTC traders as BTC/USD briefly dipped below $53,000 before stabilizing around $1,000 higher.　　The move came as Bitcoin was about to lose its market cap dominance supremacy to altcoins in what traditionally marks the “real” start of “alt season.”　　Charts from on-chain monitoring resource CoinMarketCap showed that as of Thursday, Bitcoins share of the overall cryptocurrency market cap stood at just 50.1%.　　Having decreased sharply this year despite its own price gains, Bitcoins market cap share versus altcoins looked set to break through support which has held for over three years.　　Looking at historical behavior, each time Bitcoin loses the 50% mark, altcoins rapidly move in to pick up the slack, often led by Ether (ETH).　　The reshuffling thus sparks an altcoin run which truly fits the description of “alt season” — rapid gains to a peak, followed by a cooling-off period as Bitcoin regains some lost ground. This was the case in both mid 2017 and early 2018.　　Cryptocurrency market cap share chart. Source: CoinMarketCap　　Should history repeat itself, it

2021-04-22Deep Dive

Ethereum Has Dominated The “Scaling War”, But Can It Sustain Its Edge?

In the daily chart, Ethereum (ETH) has the biggest gains on the crypto top 10 by market cap. At the time of writing, ETH is trading at $2.433,80 with a 12.7% profit in the past day and 5.6% in a week. In contrast, Bitcoin (BTC) has a 1.6% profit in the same period.　　ETH with important gains in the daily chart. Source: ETHUSD Tradingview　　ETH has dominated many areas of the crypto space as a report by Wilson Withiam, a researcher at Messari, indicates. Since the beginning of 2020, there has been an increase in the demand for decentralized finance (DeFi) applications. In Q1, 2021, the total value locked for DeFi protocols has seen a 200% rise and stands at $58 billion, according to DeFi Pulse data.　　ETH has reigned on top of this sector. The Quarterly Layer-1 Market Capitalization indicates that DeFi demands as “spilled over to networks outside” of Ethereum. Since Q1, 2020 and Q4, 2020, this metric has seen a 1,408% and 234% increase, respectively.　　Source: Messari　　As the chart shows, the Quarterly Layer-1 Market Cap sits at around $364 billion with Ethereum representing close to $200 billion and occupying the undisputed number 1 position. The numbers also indicate a trend. Since

2021-04-22Deep Dive

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