Crypto Guides, Knowledge & Insights

How Polkadot project StaFi brings liquidity to staked assets like DOT and ETH2

Massive amounts of capital are locked in staked crypto assets. But a relatively new platform is making those markets both tradeable and liquid.　　Enter StaFi　　StaFi, founded in 2020 and built on Polkadot, is among the first-ever decentralized protocols that help unlock the liquidity of staked assets via its own platform. This means users can stake their proof of stake (PoS) tokens (which are untradable until they are staked) and get a “rToken” (reward-Token) in return.　　These rTokens enable users to both get the staking reward and trade the locked staking token at the same time. “You can stake your PoS tokens through Staking Contracts built by StaFi,” the team said in a post, adding:　　“All you have to do is use the tools to stake your PoS tokens, and youll receive rToken in return which can be exchanged and traded on DEXes and CEXes in the near future, as well as integrated in other DeFi protocols.”　　StaFi developers had earlier launched rETH, a solution to the liquidity of ETH2.0 staking, with the help of community contributors. This opened the gates for the nearly $3.3 billion locked in ETH 2.0 to be tokenized, liquified, and traded.　　In addition, the staking amount for users has been lowered

2021-01-19Deep Dive

Institutional Buying, Grayscale Bitcoin Trust (GBTC) Buys Another 16,000 BTC Worth $590 Million

Amid the recent price volatility in Bitcoin (BTC), investors might be waiting on the sidelines for further correction. However, we might be reaching $40,000 levels once again sooner than expected. As per the data on Bybt.com, the Grayscale Bitcoin Trust (GBTC) has purchased another 16,000 Bitcoin in a single day taking its total BTC holdings above 632,000.　　Courtesy: Bybt.com　　In the last 24-hours, Grayscale has poured another ~$600 million in Bitcoin purchases while gobbling more than 18 times the daily Bitcoin mined. Last week only, GBTC purchased around 10,000 Bitcoins (BTC) triggering a fresh buying spree. In less than a week, GBTC has added over 25,000 Bitcoins to its kitty.　　This massive purchase coming from Grayscale suggests that institutions are still active and waiting to swallow every dip in the BTC price. Interestingly, the recent Bitcoin purchase comes just a day after JPMorgan said that inflows in the Grayscale Bitcoin Trust are essential for Bitcoin to surge and hold above $40,000 levels.　　The digital asset manager Grayscale recently released its Q4 2020 report wherein reported net inflows of a massive $3.3 billion. Also, last week Grayscale CEO Michael Sonnenshein noted that his company raised a whopping $700 million in funds, in a single day.　　Fresh

2021-01-19Deep Dive

Bitcoin Position of Asset Manager Ruffer Is up 90 Percent

In its period end review, U.K.-based mega-manager Ruffer Investment revealed that its Bitcoin position is now up 90 percent.　　On top of that, the firm also has exposure to 4,009 shares of MicroStrategy (MSTR) and 350,000 shares of Galaxy Digital (GLXY). The equities of these two companies outperformed Bitcoin by 10 percent in Ruffers portfolio.　　Cryptocurrency-related holdings now constitute three percent of the firms total assets under management.　　 At the foothills of institutional adoption　　As reported by U.Today, Ruffer initially gained exposure to Bitcoin via a multi-strategy fund back in November. The notable addition to its basket of assets was made public in mid-December.　　The London asset management firm cut its gold holdings to dip its toes into its digital alternative, but the lustrous metal still accounts for a much larger share of its portfolio (seven percent).　　Image by uk.advfn.com　　While explaining the impetus behind its decision to have a “small but meaningful” Bitcoin allocation, Ruffer highlights that there is desperation for new safe havens when interest rates are nearing zero.　　The investment firm believes that it was early to the party, and other institutions will follow suit:　　We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialization

2021-01-19Deep Dive

After $750M Bitcoin Allocation, Ruffer Investment Says BTC is Early in Its Safe Haven Cycle

Zero-interest rates make investors desperate for new safe-haven assets like bitcoin, asserted the $27B worth asset manager Ruffer Investment.　　Amid the recent warnings issued by the UK Financial Conduct Authority on crypto scams, the giant asset manager Ruffer Investment has defended its decision to allocate about 2.5% of its portfolio in BTC.　　The UK-based company with over $27 billion AUM said that bitcoins adoption is still early as most investors are “desperate” for alternative safe-haven instruments during these challenging times.　　Ruffer Investment Doubles-Down On BTC　　CryptoPotato reported in December that the founded in 1994 asset manager had allocated 2.5% of its portfolio in bitcoin. While the initial reports claimed that this percentage represented about $15 million, Ruffer later revealed that the actual amount is considerably higher – about $750 million.　　In a more recent note to investors, cited by Portfolio Adviser, the firm outlined its “history of using unconventional protections” in its portfolio. The company also said that its BTC purchase is a “small allocation to an idiosyncratic asset class which we think brings something significantly different to the portfolio.”　　“Due to zero interest rates, the investment world is desperate for new safe-havens and uncorrelated assets. We think we are relatively early to this, at the

2021-01-19Deep Dive

Bitcoin Price Battles for $36K As Market Cap Reclaims $1 Trillion (Market Watch)

The crypto market cap reaches $1 trillion again as BTC recovered from its weekend slump, while BNB and LINK paint new records.　　BTCs somewhat adverse weekend ended with the asset bottoming below $34,000, but bitcoin has bounced off since then and topped $36,000. New all-time highs for Binance Coin and Chainlink have helped the market cap to conquer the coveted $1 trillion level again.　　Bitcoin Tops $36K　　The primary cryptocurrency was riding high above $38,000 before the weekend, but the bears didn‘t allow any further increases. Just the opposite, they drove BTC’s price south on a few occasions.　　The asset dipped to $34,500 before recovering rather quickly to $38,000. However, bitcoin failed to maintain its price at such a high level and dumped once again. This time, it bottomed below $34,000 (on Bitstamp).　　Nevertheless, the cryptocurrency has regained some traction since then and currently trades above $36,000. This was the first major resistance level in BTCs way up, according to the technical aspects.　　The following obstacles are situated at $36,700, $38,000, $39,700, and $40,000. Alternatively, BTC could rely on the support levels at $34,800, $34,000, and $33,130 if another retracement arrives.　　New ATHs For BNB And Link　　Most large-cap altcoins have remained relatively steady on a 24-hour scale.

2021-01-19Deep Dive

Crypto community happy as SEC gets Blockchain fan Gary Gensler as new chairman

Former CFTC is now the new chairman of the US SEC. Gary Gensler is pro-blockchain.　　The next person to chair the US SEC (Securities and Exchange Commission) is someone with a soft spot for the crypto market, as apparent from the latest developments regarding the incoming Biden administration. On Monday (January 18, 2021), President-elect Joe Biden picked Gary Gensler as the new person to lead the SEC during his tenure. Biden is expected to take office in the coming days.　　Gary will take over from Elad Roisman, who became SEC‘s chairman in acting capacity after replacing the former chairman, Jay Clayton. Jay’s tenure ended on 23rd December, 2020.　　Gensler is a friend of crypto　　Besides being vastly experienced in Wall Street dynamics, Gary is also a former chairman of the CFTC (Commodity Futures Trading Commission). In that capacity, he has studied the crypto market extensively. At the MIT, Gary also taught blockchain-related courses. That‘s why Gary’s appointment as SEC chairman is a big deal for the expanding crypto community.　　Gary‘s appointment was welcomed by the industry, attracting the attention of some of the popular and influential people in the market. Ripple’s CEO, Brad Garlinghouse, tweeted to congratulate the incoming SEC chairman. Despite Ripple being embroiled

2021-01-19Deep Dive

JP Morgan: Bitcoin Needs to Reclaim $40K Soon or Momentum Will Fade

Strategists at JPMorgan Chase & Co said that Bitcoin has to surpass the $40,000 milestone to dodge another major price setback.　　Bitcoin has to endure and overcome the $40,000 boundary in order to avoid a consequent major price correction. JPMorgan strategists say that otherwise, the major cryptocurrency might suffer investment outflow.　　The $40K Is the Key to Future Prospects for BTC　　According to a JPMorgan Chase & Co report, cited by Bloomberg, this level is an omen to more eventual losses.　　The major financial institution strategists led by Nikolaos Panigirtzoglou said that the cryptocurrency is at risk of further losses and an outflow of trend-following investors unless it can “break out” over the $40K frontier. The team added that the pattern of demand for BTC futures and the $22.9 billion Grayscale Bitcoin Trust might help determine the perspective.　　“The flow into the Grayscale Bitcoin Trust would likely need to sustain its $100 million per day pace over the coming days and weeks for such a breakout to occur,” the strategists commented on Friday.　　After a record-breaking hit near $42K in the first week of January, Bitcoin suffered a significant price correction with almost $12K in just a short time, leaving investors pondering the reasons. JPM strategists

2021-01-19Deep Dive

German housing company issues $24M digital bond on Stellar blockchain

TL;DR Breakdown:　　A German housing company issued a $24 million digital bond.　　It uses Stellar blockchain to facilitate an easy transfer of ownership rights to real assets.　　As Germany opens to embrace blockchain technology in the digitization of the finance department, a housing company in the country, Vonovia, has seized the opportunity to issue registered digital bonds on the blockchain technology. Precisely, the German housing company issues these bonds on Stellar blockchain, in collaboration with an online marketplace, Firstwise, according to the press statement.　　These newly-issued security tokens will be used to transfer ownership of the claims to real estate rights under the highest security standards.　　Real-world Resource Tokenization: Bringing Trillions Of Dollars To The Blockchain　　Conflux becomes first Chinese govt backed permissionless blockchain projectHDBank issues blockchain based letter of creditBlockchain: the covid hunger solution　　German housing company adopts Stellar blockchain　　By using Stellar blockchain, the German companies intend to make the entire process of transferring the ownership rights to real assets more convenient and secure. Meanwhile, the term for these fully-registered digital bonds by the German housing company is limited to three years, according to the announcement. The amount of the bonds issued on the blockchain is worth about $24.3 million or €20 million.　　Having used several financial

2021-01-19Deep Dive

Different Types of Cryptocurrency Wallets You Can Use

What are cryptocurrency wallets？ As the name suggests, these wallets help you store crypto assets and tokens. A wallet can be a separate device or a software programme on your phone. They utilize blockchain technology to safely and securely store your crypto assets, as well as facilitate the sending and receiving of cryptocurrencies.　　What are the types of wallets？ These can broadly be categorized into hot and cold wallets. Hot wallets are connected to the internet and can be accessed anytime. They include online cloud wallets, most mobile wallets, software wallets, and crypto exchanges.　　Cold wallets are not connected to the internet and let you store your crypto offline. Funds can be received anytime, but you only sign the transaction with your private key once the cold wallet is disconnected from the network so that you dont show your private key to the internet. Cold wallets include hardware and paper wallets.　　A hardware wallet provides the perfect balance between safety and convenience when storing crypto. Hardware wallets are designed to protect your private keys from online methods of storage, such as on computers and phones, which can be accessed by a hacker. Since your private key never leaves the device, it cannot be

2021-01-19Deep Dive

Analyst: Hodlers will be this year’s biggest Bitcoin gainers

Analyst: Hodlers will be this years biggest Bitcoin gainers　　“HODLing”, a crypto-lingo used to mean “holding on for dear life” has been cited as the most beneficial method for cashing out big on Bitcoin. The wobbly movement of the cryptocurrency market is known to ignite different trends at any given time.　　Market reaction to this unsteady movement is then reflected in the technical charts, which ends up giving signals on where the cryptocurrency is headed. At no time do technical indicators pinpoint the next step of digital assets correctly, hence the need for fundamental analysis. One of the most referenced for profit accumulation has always been HODLing, and like the recent post from a Crypto-analyst suggests on Twitter, holders have the best shot at taking the biggest piece of the pie.　　The CTO of Glassnode on-chain analytics platform took it upon himself to reassure the community of the significance of fundamental indicators, many of which are at an all-time high.　　It comes as no surprise that BTC whales are at an all-time high. These big players have been credited with both the price spike and a possible future price dump, although retail investors played a bigger role in the recent Bitcoin selloff that sent

2021-01-18Deep Dive

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