Crypto Guides, Knowledge & Insights

Coinbase Listing Won't Help Bitcoin Price - Analyst

The narrative that the listing of the shares of major crypto exchange Coinbase is helping the price of bitcoin (BTC) higher - is false, according to a prominent Bitcoiner, Vijay Boyapati, the author of The Bullish Case for Bitcoin and Senior Software Engineer at Peach.　　Many people are speculating that interest in Coinbase would trigger “a fresh wave up in Bitcoins bull market,” argued Boyapati in his Twitter thread. Additionally, as Coinbase reported estimated Q1 revenues of USD 1.8bn with some USD 800m in profit, it is likely that the company will be valued around USD 100bn once they become public, he said.　　However, the question is if “this huge liquidity event” will transfer over to bitcoin？ The answer, per Boyapati, is that it may not be the case:　　“If investment dollars that flow to Coinbase provide a ”crypto“ allocation that will satisfy many retail and institutional investors, in a way this steals potential investment demand away from bitcoin.”　　The reason behind this, as Boyapati explains, is that many “unsophisticated” retail and institutional investors may buy into Coinbases direct listing as a way to get exposure to the “crypto” space, but “the capital allocated with this mindset will NOT be used to purchase BTC.”　　According

2021-04-09Deep Dive

This is why Uniswap v3 could have “insane efficiency”

With a tentative deployment date set for May 5th, 2021, the third iteration of decentralized exchange Uniswap is amongst the most hype projects in the crypto space. Its newest features offer its user more flexibility to leverage earning strategies.　　However, the creator of Uniswap, Hayden Adams, claims there is much more to the update. Via his Twitter account, he showed the DEXs new equation to calculate efficiency and said:　　I dont think the insane efficiency of Uniswap v3 has sunk in yet. Over the past 3 months (Jan8-present) the price of ETH/BTC has ranged from 0.0295 to 0.0454 Plugging into the formula, we find it is 9.8x more efficient than v2.　　Comparing the second to the soon-to-launch iteration of Uniswap, Adams highlighted other advantages for the users, like the reduction in the amount of capital required to provide liquidity.　　The liquidity providers (LP) will also be able to participate in a specific range for a trading pair to receive trading fees with the “same amount of impermanent loss”. Adams added the following example:　　the Uniswap v2 WBTC/ETH pair has $318m in it. If WBTC/ETH LPs instead provided to the range of 0.0295 and 0.0454 on v3 they could create the same amount of liquidity and

2021-04-09Deep Dive

Bitcoin Reaching a 'Tipping Point': Fidelity Digital Assets Head

According to Tom Jessop, head of Fidelity Digital Assets, Bitcoin adoption has reached a “tipping point” thanks to an environment of “unprecedented monetary and fiscal stimulus.”　　Speaking at the Investing in Crypto virtual event series hosted by MarketWatch and Barrons, Jessop pointed to “a host of reasons” for the adoption of digital assets to proceed “at an accelerated pace.”　　These include near-zero interest rates and easy-money policies—something the US Federal Reserve, as recently reaffirmed by its chairman Jerome Powell, has committed to until the economy has recovered from the coronavirus pandemic.　　“We‘re not going to get out of this stimulated environment anytime soon,” Jessop said. “I think we’ve reached a tipping point.”　　According to Jessop, these measures, while considered necessary by the Fed, are driving investors to Bitcoin and other assets—which they see as alternatives to scant yields offered by bonds and other “richly priced” investment vehicles.　　Bitcoin, the largest cryptocurrency by market cap, has seen a 5% drop in price in recent days and is currently changing hands in the region of $57,700. However, since the start of the year, it has risen by as much as 95% on the back of institutional investment from firms including Tesla and MicroStrategy.　　Jessop sees the pandemic as

2021-04-09Deep Dive

Will the U.S. second oldest bank State Street start trading crypto?

According to a press release, one of the most important banks in the U.S. State Street will partner with start-up Puremarkets. The cooperation will enable State Streets Currenex, a “high performance” trading technology provider, to work with the start-up on a crypto trading platform.　　In parallel, the partners might explore “the digital currency trading space”. With over $3.15 trillion in assets under management and $38 assets under custody, State Street is one of the largest banks revealing participation in the crypto industry.　　The trading platform called Pure Digital will be, according to the press release, automated with a “high throughput OTC market”. Also, it will support trading with cryptocurrencies, like Bitcoin and Ethereum, with digital assets, such as USDT.　　Pure Digital users will be able to leverage bilateral credit to gain “efficient capital utilization and control”. In that way, the partners will contribute to strengthen the crypto market for “price discovery” and lower the “risk” when trading with the asset class.　　Crypto trading platform under evaluation　　The platform is expected to be launch around Q2, 2021. In addition to the above, the platform will have a “smart custody routing mechanism”. This will allow users to trade under their “prefer asset custody solution”.　　To reduce costs for

2021-04-09Deep Dive

The chicken or the egg: Why NFTs could be fungible after all

Among the many offshoots produced as a bi-product of the ongoing cryptocurrency experiment, nonfungible tokens have turned out to be one of the most explosive. In a few short months, over half a billion dollars worth of NFTs changed hands, as celebrities (from lists A to Z) clamored to profit from cryptos latest craze.　　But amid the rush to jump on the bandwagon, few have stopped to consider the veracity of the terminology applied to NFTs. After all, why would you stop to ponder semantics when there are millions of dollars to be made at the click of a button？　　But in lieu of said millions, we decided to ask the question: Are nonfungible tokens actually a little bit fungible after all？　　Fungibility　　An asset or good is considered to be fungible if it can be interchanged with another of the same type of equal value. Hence the United State dollar is fungible because any one dollar can be exchanged for any other. The same applies to Bitcoin (BTC).　　Fungibility makes up one of the four pillars of Aristotles concept of “good money” and is possibly the most important in creating a working currency. All cryptocurrencies are fungible by nature.　　Nonfungible assets are those that can‘t

2021-04-09Deep Dive

Binance CEO Changpeng Zhao holds “close to 100%” of his funds in crypto

Billionaire Changpeng Zhao, the CEO of global cryptocurrency exchange Binance, holds nearly all of his money in various digital assets—and owns no fiat, houses, or cars, he revealed to Bloomberg in an interview published today.　　“I would say probably close to 100%,” Zhao replied when the interviewer asked how much of his net worth is invested in crypto. “I dont own any fiat, the physical stuff that I own is probably negligible in terms of my net worth. So this is a concept shift,” he said.　　According to Zhao, he is not a fan of traditional fiat currencies or physical property because they are all “illiquid,” meaning one cant buy or sell them quickly enough.　　As an example, Zhao recalled that back in 2012, he sold his apartment to become an early Bitcoin investor. However, the deal took much more time than he was comfortable with.　　“It took me a while. Back then most of my net worth was in the apartment I bought in 2006 in Shanghai. I bought a little bit of Bitcoin and then just used it, played with it. I liked it immediately. And then I was in a big hurry to sell my apartment, but selling the apartment took

2021-04-08Deep Dive

New petition asks SEC chair nominee Gary Gensler to drop Ripple lawsuit

The Ripple community has launched a new petition to “stop the war” on XRP.　　Crypto s lawsuit against Ripple once hes confirmed as chairman of the commission.　　Announcing the news Wednesday, Crypto & Policy called on Gensler to investigate the potential motives of former SEC chair Jay Clayton and his SEC Director of Corporate Finance William Hinman for “favoring” Bitcoin (BTC) and Ether (ETH) while harming XRP. The petition alleges that Clayton and Hinman could have had financial interests in Bitcoin and Ether:　　“While Clayton and Hinman were in office, they were asked if Bitcoin and Ether were securities. They said very clearly, on the record: no they are not securities so keep trading them. They both took money from companies with direct or clear indirect interest in those public statements.”　　Hodge further alleged that Hinman “received millions of dollars in payments” from the law firm of Simpson Thacher, which is a member of the Ethereum Enterprise Alliance. The petition claims that Hinman “collected checks from the firm” while the firm earned fees supporting the initial public offering of Chinese crypto mining giant Canaan.　　The XRP advocate outlined the uncertain regulatory status of the altcoin, stating that Clayton spent four years of his tenure without

2021-04-08Deep Dive

Will NFTs Enable A Poetry Comeback?

The recent sale of an NFT poem for $75,000 could mark the beginning of a new era for poets around the world. The news is sure to have caught the attention of some writers who have not yet experienced the NFT markets growth or even considered joining it.　　The recent NFT frenzy has mostly been focused on such visual art as compelling animations and loops, dynamic compositions, memeable icons, and all the other eye-candy digital technology has to offer.　　However, now NFT poetry is rising to diversify digital media and open up a space for non-English language literature as international poets find a place to shine through the blockchain. The first Brazilian NFT poem has recently been published, and it is inspiring others to join the NFT wave and hopefully gain the attention of their countrys artistic communities.　　Poetry‘s hitherto lack of popularity in the NFT scene is only a reflection of its steady decline in society. As screens steal our minds’ eyes with endless streams of information and visual stimuli, there is little space for getting lost in verses that transmit no objective information. As Brazilian poet Paulo Leminski once said, “I think that poetry is useless. Poetry‘s only reason for being

2021-04-08Deep Dive

5 Best Cryptocurrencies Favorable for Investment in 2021

The concept of people investing in cryptocurrencies and profiting extensively from digital trading platforms is in great effect. The statistics of the global trading pattern suggest a movement from traditional fiat currency to modern digital cryptocurrencies as the number of crypto traders (active) ranges between 50- 52 million. Besides that, the global market cap of all the cryptocurrencies in the world has crossed over the 1 trillion USD mark during the first month of this year!　　So lets talk about some of the best cryptocurrencies to choose for investment in 2021.　　1. Bitcoin　　Bitcoin is by far the most sorted and popular cryptocurrency among others in the global digital trade market. However, unlike other cryptocurrencies, Bitcoin has maintained a position by being at the head of the highest market cap of over 1 Trillion USD. Although there have been times when Bitcoin seemed to have hit rock bottom, investors in recent years havent faced any major losses. Moreover, a lot of the online casinos with bitcoin payment system.　　So if you are trying to play safe with your investment, Bitcoin is the way to go. Market trends suggest the steep increase in the value of the Bitcoin currency, currently selling at over 58,000 USD!　　2.

2021-04-08Deep Dive

Ziglu Offers UK Users 5% Interest on Bitcoin Investments

London-based cryptocurrency platform Ziglu has launched an account that pays users the equivalent of 5% annual interest on their bitcoin investments.　　According to an announcement Thursday, interest will be calculated “every second” – which will then be added to users accounts weekly.　　Customers will retain instant access to the bitcoin and not have to sign up for depositing for any fixed length of time, a Ziglu spokesperson told CoinDesk.　　The “Bitcoin Boost” account launches against the backdrop of an all-time low Bank of England base rate of 0.1%, cut from 0.25% in March 2020 in response to the coronavirus pandemic.　　Ziglus announcement cited Bank of England data showing that variable-rate individual savings accounts (ISAs) earn as little as 0.35%, the lowest since ISAs were introduced.　　The London-based firm raised over $8 million from around 1,250 investors in a crowdfunding campaign last year bringing its total fundraising to $14.8 million.

2021-04-08Deep Dive

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