Crypto Guides, Knowledge & Insights

Embracing Bitcoin is now a matter of national security says former CIA Director

Michael Morell, the former Acting Director of the Central Intelligence Agency, disputes the narrative Bitcoin is full of illicit activity.　　In an independent paper, Morells research led him to conclude that generalizations of illicit activity are overstated. Simultaneously, adding that blockchain analysis serves as an effective method of fighting crime and gathering intelligence.　　Bitcoin is a terrible vehicle for hiding criminality　　Before embarking on the study, Morell admitted that mainstream narratives, such as those pushed by U.S. Treasury Secretary Janet Yellen and ECB President Christine Lagarde, had already swayed his bias towards an anti-Bitcoin position.　　However, in evaluating data from blockchain analysis firm Chainalysis, Morell soon realized there was more illicit activity conducted in traditional finance than Bitcoin.　　“Just the opposite, that [bitcoin and crypto] werent rife with illicit activity. In fact, there was probably less illicit activity in the Bitcoin ecosystem than there is in the traditional banking system.”　　He noted that the data shows less than 1% of Bitcoin activity relates to criminality. Whats more, this figure has fallen dramatically since 2012.　　SOURCE: FORBES.COM　　Kim Grauer, the Head of Research at Chainalysis, said cryptocurrencies hold a reputation for anonymity. But she dismissed that fallacy, implying Bitcoin makes for a poor way to hide criminality.　　“But because transactions

2021-04-14Deep Dive

After Tesla (TSLA), Binance to List Coinbase Stock Token (COIN/BUSD) Next

Just as crypto exchange Coinbase (COIN) is all set to go public ahead today, April 14, on Nasdaq, Binance announced that it will release the Coinbase Stock Token on the same day. As per the official announcement, the COIN/BUSD trading pair will be open for trading from Wednesday, April 14.　　#Binance Will List the @Coinbase Stock Token $COIN　　➡️ https://t.co/8WCWLvJI9a pic.twitter.com/x6XvADlp52　　— Binance (@binance) April 14, 2021　　Just two days back on Monday, Binance announced its zero-commission tradable stock tokens in the market. As per the official announcement:　　“Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends.”　　The Binance Stock tokens feature allows investors to own fractional stocks instead of buying the who quantity. This allows small retail players to invest in companies that could be potentially very expensive to own and out of their reach. On a large front, it bridges the gap between the crypto world and the traditional stock market.　　Good Market Response for the TSLA/BUSD Trading Pair　　There‘s been a strong market response after the Tesla/BUSD i.e. TSLA/BUSD trading pair went live on Monday. The TSLA/BUSD trading

2021-04-14Deep Dive

Megadeth Completes First NFT Sale in Heavy Metal Music

There appears to be a growing craze for NFTs amongst music bands. Metal band heavyweights, Megadeth, Avenged Sevenfold, and Slipknots Clown are amongst the notable active names of the heavy metal industry that have dipped their toes in the NFT market.　　Theres no slowing down on the NFT frenzy. The craze has gradually spread beyond the crypto space, garnering more utility in the process. For many creatives, an NFT presents a modern way to monetize their content. For some fans, they help them connect with their favorites.　　American heavy metal band, Megadeth has joined the growing list of entertainers to create their own NFT. The band which was formed in 1983 minted the “Megadeth Genesis token”. It auctioned the one-of-one NFT on Rarible. The auction started off on April 7 and ended on April 12, 2021. The winning bid was 8.4 WETH, about $18,703.　　Megadeth is one of the bands that pioneered the thrash metal movement, which originated in California. They are contemporaries of the American music giant Metallica. In fact, Dave Mustaine, the founder, and frontman of Megadeth, even had a two-year stint as the lead guitarist and singer for Metallica. He then went on to find success with his own metal

2021-04-14Deep Dive

Jake Paul NFT Fail: A Sign Of Things To Come?

Pro-boxer and YouTuber Jake Paul has set up an auction for a video of him knocking out Nate Robinson in November 2020.　　The auction will run until the 17th of April, and the winner will get another NFT video of his fight against Ben Askren.　　The 30-second NFT video has been pegged at $10 million.　　After more than 48 hours, the highest bid for Jake Pauls knockout video remains $11k.　　The non-fungible token (NFT) mania continues to roll along, peaking with the sale of Beeples The First 5,000 Days and Jack Dorsey selling a tweet for $2.9 million. As the NFT-craze reaches its peak, controversial YouTuber and professional boxer Jake Paul has put up an NFT sale of his fight last November.　　Jake Paul NFT Auction　　Jake Paul has uploaded an NFT video of the unforgettable knockout punch from his fight against Nate Robinson on November 28, 2020. The fight was Trillers first-ever Fight Club boxing event.　　The winner of the bidding event will also own the last 30 seconds of the upcoming Jake Paul vs. Ben Askren fight – including any knockout. The bout will be headlining the Triller Fight Club event on Saturday, April 17.　　The NFT video was put up by TrillerNet, the parent company

2021-04-14Deep Dive

SEC’s Peirce Updates Safe Harbor Proposal for Token Sales

Securities and Exchange Commission (SEC) Commissioner Hester Peirce has an updated version of her proposal to let crypto startups sell tokens as initial coin offerings (ICOs) to fund their development efforts without running afoul of U.S. securities laws.　　The Token Safe Harbor Proposal 2.0, published Tuesday, updates Peirces 2019 proposal which suggested a three-year grace period that would let blockchain projects actually develop their networks or tokens after raising funds. Under the proposal, a company could sell tokens before building the project but would be exempt from federal requirements that securities issuers register with the SEC.　　Tuesdays version would require companies to provide updates to the SEC every six months, and find outside counsel to explain whether their network could be considered “decentralized” at the end of the grace period.　　“The safe harbor seeks to provide network developers with a three-year grace period within which, under certain conditions, they can facilitate participation in and the development of a functional or decentralized network, exempted from the registration provisions of the federal securities laws,” the Securities and Exchange Commission (SEC) official said in a public statementintroducing the proposal.　　If, within three years, the network was live and met a set of criteria for decentralization, the company

2021-04-14Deep Dive

Coinbase IPO: What It Is and What It Means for the Industry

Major cryptocurrency exchange Coinbase will be conducting the first Initial Public Offering (IPO) of its kind on the 14th April, listing under the COIN ticker.　　Coinbase will be the first crypto company to go public on Nasdaq after a lucrative year that saw the exchange generate over $1.8 billion in revenue. Its one of the leading exchanges and provides the gateway for many investors looking for their first engagement with the cryptocurrency industry.　　Coinbase recently revealed they have 56 million users, a staggering amount considering the size of the cryptocurrency market in comparison to more traditional financial markets.　　Now, the introduction of the first crypto listing is attracting major attention from institutional buyers, with the listing and initial valuation of $100bn a hot topic of discussion in the crypto community.　　In this article, were going to cover what an IPO is, how it affects the crypto industry and more.　　 This Guide Contains:　　What is an IPO？　　What is a Direct Listing？　　Whats the Difference Between an IPO and a Direct listing？　　How will Coinbases Direct Listing Affect the Industry？　　The Bullish Scenario　　Bearish Scepticism　　Will other Bitcoin Exchanges follow Coinbases Lead？　　Conclusion　　 What is an IPO？　　Before we start, we need to understand what an IPO is.　　An IPO is the first public sale

2021-04-14Deep Dive

CBDCs Won’t Threaten Crypto, Morgan Stanley Reports

Although central banks are pushing the gas pedal in their race against decentralized technologies, it is very difficult for their CBDCs to really threaten cryptocurrencies. At least, this was the conclusion reached by banking giant Morgan Stanley.　　Analysts at Morgan Stanley believe that while CBDCs may affect cryptocurrency markets as they enter the space, they are unlikely to be a threat to decentralized technologies. Digital, decentralized assets have other use cases that make them more appealing to investors and enthusiasts.　　Different Products Dont Compete With Each Other　　According to statements by Morgan Stanleys chief economist Chetan Ahya, the banks experts believe that decentralization has already permeated the mindset of many investors, and CBDCs cannot compete against crypto in many aspects precisely because of their decentralized and flexible nature:　　“Cryptocurrencies will still exist, as they continue to serve other use cases. For instance, some cryptocurrencies can function as a store of value… as some segments of the public do not place their full faith in fiat currencies.”　　Banks have mixed views regarding crypto. On the one hand, certain banks such as HSBC applied an anti-cryptocurrency policy (HSCBC started censoring certain transactions associated with the purchase and sale of digital tokens). On the other hand, banks like

2021-04-14Deep Dive

Moscow Stock Exchange, Russian Banks Co-Found Blockchain Operator

Russia is edging ever closer to realizing its dream of breaking through the barriers of international trade-limiting EU and American sanctions by developing new payments system infrastructure – with the aid of blockchain technology.　　Per RBC, the Moscow Stock Exchange has teamed up with a number of banking and card payment processing firms to co-create a “blockchain operator” – claiming the new venture is a “national first.” According to the group, the stock exchange and its partners will each own a 1/6 in the new operator, which will be named Distributed Register Systems.　　The initiative involves banks that are members of the FinTech Union, and its architects claim that it will reduce the costs for market players and help create a range of new products and services for the banking sector.　　Joining the Moscow Stock Exchange on the project are the state-backed Promsvyazbank (PSB) and the nations second-largest bank, VTB Bank. Gazprombank, the banking arm of the oil and gas giant Gazprom, is also onboard. And making up the number are the Central Bank-founded National Payment Cards System and the Fintech Association.　　The companies signed founding documents on April 9, they disclosed.　　The move will be seen as progress in the struggle to free Russia‘s

2021-04-14Deep Dive

What Could SPACs Learn from Crypto?

Bill Gates commented that most of SPACs are going public too early　　Special Purpose Acquisition Companies (SPACs) allow attracting investors without the IPO process　　For now, most of SPACs seem unreliable, but they are permitted to disclose forecasts to potential investors. Thats why they are more attractive for potential investors　　Cryptos were in a similar situation before they advanced transparency models and gained public trust　　Despite quite a long lifespan, cryptocurrencies still remain a subject of concern for some people. Due to their decentralized nature and distributed ledger technology, mass opinions vary. But what do they stand against？ The stock markets.　　At the beginning of April, the Microsoft Corporation founder, Bill Gates, commented on the recent boom of SPACs. During his interview with CNBC journalists, he claimed that we flipped from the world where companies stayed private too long to the opposite situation, when some companies may be going public too soon.　　Also, he mentioned that there would be both high-quality and low-quality SPAC companies with this approach. So the investors should decide themselves “what is what” and “which is which.” Of course, this will bring more confusion to beginners in this field.　　What is a SPAC？　　SPACs or Special Purpose Acquisition Companies are a new wave in

2021-04-14Deep Dive

Bitcoin Tops Q1 Results With +103% Gains as Gold Brings up The Rear

Messari has compiled the performance of institutional-grade assets for Q1 2021, and Bitcoin leads the pack with a 103% gain. Oil takes second place, up +26%. But continuing to underperform is gold, losing 10%, making it the worst-performing last quarter asset.　　Source: @usgoose on Twitter.com　　Bitcoin Leads The Way　　The price of Bitcoin started the year with a daily close of $29.5k. This was off the back of a milestone 2020, particularly Q4 2020, in which the leading cryptocurrency managed to break $20k, signaling the start of the current bull cycle.　　Since then, a series of powerful surges established Bitcoin as a serious contender. Making it all the more difficult for both institutions and on-the-fence retail investors to ignore. By the end of last quarter, BTC was priced at $59k.　　Source: BTCUSD on TradingView.com　　At the same time, gold was continuing to underperform. Since hitting an all-time high of $2,070/oz in August 2020, the shiny metal has fallen into a descending channel.　　While it started 2021 well positioned at $1,894/oz, even steeper declines in Q1 saw it hit $1,686/oz twice to establish support at this price.　　Both Bitcoin and gold are seen as ways to diversify a portfolio or as a hedge against inflation. But divergent performances over

2021-04-14Deep Dive

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