Crypto World Waits to See What Post-Bezos-era Amazon Will Bring
The world of crypto is watching developments at Amazon with great interest after the company’s founder Jeff Bezos announced that he would be stepping aside as the firm’s CEO.
In an official announcement, Bezos indicated that he was stepping down from the day-to-day operations of the e-commerce giant, but would still be involved at the company – taking up an executive chairman role at Amazon in the third quarter this year, while the former head of Amazon Web Services Andy Jassy takes over as CEO.
Bezos wrote that in his new role, he “intended to focus” his “energies and attention on new products and early initiatives.”
He also urged his employees to “keep inventing, and don’t despair when at first the idea looks crazy.”
Crypto-keen observers will be asking if these “initiatives” and “inventions” could well involve blockchain-powered cryptoassets.
And there is some evidence to suggest that Jassy could take Amazon a step closer to blockchain and/or crypto adoption.
As AWS boss, Jassy last year enthusiastically oversaw a deal with the Canadian payments firm Global Payments to co-build a cloud-based processing platform for card issuers and "to bring payment issuer solutions to new geographic regions & more customers throughout the world."
He also oversaw the launch of Amazon Managed Blockchain, a service that allows developers to work on Ethereum (ETH) in preview and the Hyperledger Fabric network without the need to arrange hosting or provide hardware. This service can be used to manage peer-to-peer payments, process loans and help businesses transact with distributors and suppliers.
But per Fortune, Jassy said back in 2018, when he was unveiling the details of the service that it was still “unclear what companies would actually use blockchain technology for.”
Back then, the media outlet also quoted Jassy as stating that when AWS had spoken to customers, “we just hadn’t seen that many blockchain examples in production or that couldn’t pretty easily be solved by a database.” The same argument is being made by many Bitcoin (BTC) proponents also.
As for Bezos, unsubstantiated rumors have linked him to BTC for years, but he has remained guarded on all things crypto-related – and Amazon has repeatedly shied away from the notion of enabling crypto pay on its platform. However, as reported, some independent projects were trying to bring crypto closer to Amazon.
In fact, others have suggested that Bezos is actually a crypto skeptic: He owns the Washington Post, which in 2016 published a scathing and now-infamous “obituary” for bitcoin, claiming that “pure greed” was “the clearest reason … for bitcoin’s failure,” adding it was time to issue an RIP on the token and “move on” from it.
Some optimists will perhaps hope that Bezos’ possible crypto skepticism will give way to Jassy’s seemingly more open-minded approach to the sector – and that the days of shopping on Amazon with crypto may not be too far off.
The world of crypto is watching developments at Amazon with great interest after the company’s founder Jeff Bezos announced that he would be stepping aside as the firm’s CEO.
In an official announcement, Bezos indicated that he was stepping down from the day-to-day operations of the e-commerce giant, but would still be involved at the company – taking up an executive chairman role at Amazon in the third quarter this year, while the former head of Amazon Web Services Andy Jassy takes over as CEO.
Bezos wrote that in his new role, he “intended to focus” his “energies and attention on new products and early initiatives.”
He also urged his employees to “keep inventing, and don’t despair when at first the idea looks crazy.”
Crypto-keen observers will be asking if these “initiatives” and “inventions” could well involve blockchain-powered cryptoassets.
And there is some evidence to suggest that Jassy could take Amazon a step closer to blockchain and/or crypto adoption.
As AWS boss, Jassy last year enthusiastically oversaw a deal with the Canadian payments firm Global Payments to co-build a cloud-based processing platform for card issuers and "to bring payment issuer solutions to new geographic regions & more customers throughout the world."
He also oversaw the launch of Amazon Managed Blockchain, a service that allows developers to work on Ethereum (ETH) in preview and the Hyperledger Fabric network without the need to arrange hosting or provide hardware. This service can be used to manage peer-to-peer payments, process loans and help businesses transact with distributors and suppliers.
But per Fortune, Jassy said back in 2018, when he was unveiling the details of the service that it was still “unclear what companies would actually use blockchain technology for.”
Back then, the media outlet also quoted Jassy as stating that when AWS had spoken to customers, “we just hadn’t seen that many blockchain examples in production or that couldn’t pretty easily be solved by a database.” The same argument is being made by many Bitcoin (BTC) proponents also.
As for Bezos, unsubstantiated rumors have linked him to BTC for years, but he has remained guarded on all things crypto-related – and Amazon has repeatedly shied away from the notion of enabling crypto pay on its platform. However, as reported, some independent projects were trying to bring crypto closer to Amazon.
In fact, others have suggested that Bezos is actually a crypto skeptic: He owns the Washington Post, which in 2016 published a scathing and now-infamous “obituary” for bitcoin, claiming that “pure greed” was “the clearest reason … for bitcoin’s failure,” adding it was time to issue an RIP on the token and “move on” from it.
Some optimists will perhaps hope that Bezos’ possible crypto skepticism will give way to Jassy’s seemingly more open-minded approach to the sector – and that the days of shopping on Amazon with crypto may not be too far off.
Bitcoin Returns Above USD 40,000 In Less Than A Month
The most popular cryptocurrency, bitcoin (BTC), rallied on Saturday, moving back above the USD 40,000 level for the first time in almost a month.
At the time of writing (14:38 UTC), BTC trades at USD 40,420 and is up by 6% in a day, increasing its weekly gains to 18%. BTC reached its all-time high of USD 41,940 on January 8th, per Coingecko.com data.
At the same time, other major cryptoassets are showing mixed results. After its recent rally to its new all-time high of USD 1,754 reached yesterday, ethereum (ETH) is down by 1% in a day, trading at USD 1,694. However it outperformed BTC in a week, increasing by 22%. Binance coin (BNB) is the best performer today as its price rallied by 25%, and jumped 73% in a week.
"Bitcoin and ethereum inflows to exchanges have declined slightly, with 7 day average inflows below the 30 day average, reducing sell pressure. Trade intensity has also declined slightly, which typically suggests buy pressure is reducing. However, for bitcoin at least, it is still high relative to the past," Philip Gradwell, Chief Economist at Chainalysis, wrote in his weekly report on Friday.
According to him, people cashing out after making a 25% or more USD gain has also declined since the large increase in the first week of January, suggesting people continue to hold despite their potential gains, now that some profit was taken following the price gains over the holiday period.
The most popular cryptocurrency, bitcoin (BTC), rallied on Saturday, moving back above the USD 40,000 level for the first time in almost a month.
At the time of writing (14:38 UTC), BTC trades at USD 40,420 and is up by 6% in a day, increasing its weekly gains to 18%. BTC reached its all-time high of USD 41,940 on January 8th, per Coingecko.com data.
At the same time, other major cryptoassets are showing mixed results. After its recent rally to its new all-time high of USD 1,754 reached yesterday, ethereum (ETH) is down by 1% in a day, trading at USD 1,694. However it outperformed BTC in a week, increasing by 22%. Binance coin (BNB) is the best performer today as its price rallied by 25%, and jumped 73% in a week.
"Bitcoin and ethereum inflows to exchanges have declined slightly, with 7 day average inflows below the 30 day average, reducing sell pressure. Trade intensity has also declined slightly, which typically suggests buy pressure is reducing. However, for bitcoin at least, it is still high relative to the past," Philip Gradwell, Chief Economist at Chainalysis, wrote in his weekly report on Friday.
According to him, people cashing out after making a 25% or more USD gain has also declined since the large increase in the first week of January, suggesting people continue to hold despite their potential gains, now that some profit was taken following the price gains over the holiday period.
Jay-Z & Jack Dorsey Give BTC 500 for Bitcoin Development, New India Ban Rumors Emerge
Jack Dorsey. Source: a video screenshot, Youtube, WIRED
Bitcoin (BTC) bull, Twitter CEO Jack Dorsey said that he and Jay-Z, an American music megastar, are giving BTC 500 (USD 23.5m) to fund BTC development.
The funds will go into a new endowment named ₿trust, Dorsey said, adding that it will initially focus on teams in Africa and India.
"It‘ll be set up as a blind irrevocable trust, taking zero direction from us. We need 3 board members to start," Dorsey said.
Binance CEO, Changpeng Zhao was nominated but he declined the offer.
"Thanks for the nomination, but I am not a good candidate as I am dragged in a lot of different directions, too little time. Happy to make a donation once this is up and running though," he said.
As reported, Dorsey has already established Square Crypto, the cryptocurrency-focused division of US-based major payments company Square, co-founded and led by the Twitter CEO. The division is focusing on improving the BTC experience for mainstream users.
Meanwhile, as the new endowment aims to focus on India and Africa, a report by Bloomberg Quint, an India based joint venture of Bloomberg News and Quintillion Media, claims that India will go ahead with a complete ban on investment in cryptocurrencies while providing existing investors a transition period of 3-6 months to exit their holdings. The report quotes "a senior Finance Ministry official."
The official reportedly said that cryptocurrency isn’t fiat currency backed by the Reserve Bank of India and its usage in all forms will be banned through the new law that will be introduced in Parliament. This would include a ban on transacting directly via foreign exchanges, it added.
Jack Dorsey. Source: a video screenshot, Youtube, WIRED
Bitcoin (BTC) bull, Twitter CEO Jack Dorsey said that he and Jay-Z, an American music megastar, are giving BTC 500 (USD 23.5m) to fund BTC development.
The funds will go into a new endowment named ₿trust, Dorsey said, adding that it will initially focus on teams in Africa and India.
"It‘ll be set up as a blind irrevocable trust, taking zero direction from us. We need 3 board members to start," Dorsey said.
Binance CEO, Changpeng Zhao was nominated but he declined the offer.
"Thanks for the nomination, but I am not a good candidate as I am dragged in a lot of different directions, too little time. Happy to make a donation once this is up and running though," he said.
As reported, Dorsey has already established Square Crypto, the cryptocurrency-focused division of US-based major payments company Square, co-founded and led by the Twitter CEO. The division is focusing on improving the BTC experience for mainstream users.
Meanwhile, as the new endowment aims to focus on India and Africa, a report by Bloomberg Quint, an India based joint venture of Bloomberg News and Quintillion Media, claims that India will go ahead with a complete ban on investment in cryptocurrencies while providing existing investors a transition period of 3-6 months to exit their holdings. The report quotes "a senior Finance Ministry official."
The official reportedly said that cryptocurrency isn’t fiat currency backed by the Reserve Bank of India and its usage in all forms will be banned through the new law that will be introduced in Parliament. This would include a ban on transacting directly via foreign exchanges, it added.
Bitcoin Mining Becomes A Side Venture For Chinese Non-Crypto Firms
As bitcoin’s (BTC) skyrocketing prices continue to whet the appetites of companies from different backgrounds, tea and baked goods retailer Urban Tea is the latest example of a Chinese non-crypto business expanding into crypto mining and blockchain with the appointment of new leadership to pilot its efforts.
The surge in interest by Chinese players comes at a time when local crypto miners could lose their competitive advantage of low electricity costs, Wayne Zhao, Chief Operating Officer (COO) of crypto research company TokenInsight, told Reuters back in January. Chinese miners used to represent as much as 80% of global crypto mining operations, but they have since fallen to about 50%, Zhao said. Another report by Bloomberg suggested Chinese miners are pushed out of the country by rising electricity costs and regulatory concerns.
Despite this, Urban Tea said that, by naming Fengdan Zhou, who worked in blockchain data center companies in Hong Kong, as its new COO, and Yunfei Song, a scientist from the Chinese Academy of Sciences, as an independent director, it aims to jump on the crypto train in a “critical strategic expansion in blockchain and cryptocurrency mining,” according to a press release.
Yi Long, CEO of Urban Tea, said that to “generate greater value to shareholders, the company’s management team underwent a thoughtful process of exploring, researching, studying, and discussing, with the board's support, to enter into the blockchain and cryptocurrency business.”
“Going forward, we expect Urban Tea will start expanding into blockchain ecosystem, such as cryptocurrency mining, blockchain mine construction and maintenance, and cryptocurrency exchange operations,” according to the CEO.
Some of the recent examples of similar moves into crypto include shipping giant Sino Global which recently acquired a controlling stake in computing company Nine-Chain Intelligent in a deal worth about USD 8.5m. Also in February.
Urban Tea is likely to use the new crypto operations as an additional branch of business, not abandoning its prime activity. Last November, the Hunan-based company said its subsidiary entered into an acquisition agreement to buy a 51% stake in two local food businesses, adding a further 302 franchisees to its network.
At the time of writing (12:18 PM UTC), BTC trades at USD 51,122 and is unchanged in a day. It's up by 14% in a week and 40% in a month.
As bitcoin’s (BTC) skyrocketing prices continue to whet the appetites of companies from different backgrounds, tea and baked goods retailer Urban Tea is the latest example of a Chinese non-crypto business expanding into crypto mining and blockchain with the appointment of new leadership to pilot its efforts.
The surge in interest by Chinese players comes at a time when local crypto miners could lose their competitive advantage of low electricity costs, Wayne Zhao, Chief Operating Officer (COO) of crypto research company TokenInsight, told Reuters back in January. Chinese miners used to represent as much as 80% of global crypto mining operations, but they have since fallen to about 50%, Zhao said. Another report by Bloomberg suggested Chinese miners are pushed out of the country by rising electricity costs and regulatory concerns.
Despite this, Urban Tea said that, by naming Fengdan Zhou, who worked in blockchain data center companies in Hong Kong, as its new COO, and Yunfei Song, a scientist from the Chinese Academy of Sciences, as an independent director, it aims to jump on the crypto train in a “critical strategic expansion in blockchain and cryptocurrency mining,” according to a press release.
Yi Long, CEO of Urban Tea, said that to “generate greater value to shareholders, the company’s management team underwent a thoughtful process of exploring, researching, studying, and discussing, with the board's support, to enter into the blockchain and cryptocurrency business.”
“Going forward, we expect Urban Tea will start expanding into blockchain ecosystem, such as cryptocurrency mining, blockchain mine construction and maintenance, and cryptocurrency exchange operations,” according to the CEO.
Some of the recent examples of similar moves into crypto include shipping giant Sino Global which recently acquired a controlling stake in computing company Nine-Chain Intelligent in a deal worth about USD 8.5m. Also in February.
Urban Tea is likely to use the new crypto operations as an additional branch of business, not abandoning its prime activity. Last November, the Hunan-based company said its subsidiary entered into an acquisition agreement to buy a 51% stake in two local food businesses, adding a further 302 franchisees to its network.
At the time of writing (12:18 PM UTC), BTC trades at USD 51,122 and is unchanged in a day. It's up by 14% in a week and 40% in a month.
The Bitcoin Lightning Network Grows Even If You’ve Forgotten About It
You may be forgiven for forgetting about the Lightning Network (LN). The layer-two scaling solution that aims to help Bitcoin (BTC) manage a much higher workload, has been seemingly consigned to the sidelines by the ascent of bitcoin as a store of value and alternative asset.
Given its status on the peripheries, you may also be forgiven for thinking that the Lightning Network remains in a largely unfinished or undeveloped condition. However, experts and industry figures told that it has been enjoying increased usage over recent months, and that it’s technologically ready for wider deployment.
But with the dominant narrative still framing bitcoin as a store of value, and with some technical creases still in need of ironing out, it may be some time before Lightning helps the cryptocurrency become a widely used means of exchange.
It may not be used by all BTC holders, but the Lightning Network’s node count recently hit an all-time high. It now stands at just under 9,000 nodes, which is basically the same number as total Bitcoin Core nodes.
Having grown by 81% since January 1, 2020, this number is certainly impressive. That said, the total number of BTC locked into the LN is currently 1,080, which is precisely the same number as was locked into the network on April 7, 2019.
This represents only 0.025% of the 4.25m bitcoins estimated (by Glassnode) to be in regular circulation. Nonetheless, even though most observers acknowledge that the LN is a work-in-progress, they also argue that it’s ready right now to be used more widely.
“It has already reached a point where it is possible to integrate with wallets like OKEx in order to offer users greatly reduced transaction fees and times on smaller amounts of BTC. This is an incredible step forward as one of Lightning's biggest issues has been the accessibility of this technology to the average person – and the user experience,” said OKEx CEO Jay Hao.
OKEx has indeed integrated the Lightning Network into its exchange, and it’s not actually the only exchange to have done so in recent weeks. OKEx-affiliated exchange OKCoin also did so in January, as did Vietnam’s oldest exchange VBTC and also UK exchange CoinCorner. It is also supported by Bitfinex, while Kraken aims to integrate it this year.
As reported, Strike, a popular BTC banking service by US-based Bitcoin Lightning startup Zap, aims to have its Strike Cards rolled out in countries on two continents in the first half of 2021. Strike is an application that allows users to make Lightning payments with either their bank account or debit car, without needing anything else. In early July, Strike's public beta was announced, during which the product got "well into 5-figure registered users and currently process millions of dollars in volume per month."
As Bitcoin developer Chris Belcher told, the Lightning Network is “ready for greater deployment,” and this recent wave of integrations suggests this is the case.
And while the network has in the past had a reputation for being difficult to use, OKEx is hoping its integration will go some way to making it more accessible for the layperson.
“On OKEx, it will be very simple and efficient to take advantage of the Lightning Network and this will help encourage greater usage and support the development of the wider Bitcoin ecosystem,” according to Jay Hao.
You may be forgiven for forgetting about the Lightning Network (LN). The layer-two scaling solution that aims to help Bitcoin (BTC) manage a much higher workload, has been seemingly consigned to the sidelines by the ascent of bitcoin as a store of value and alternative asset.
Given its status on the peripheries, you may also be forgiven for thinking that the Lightning Network remains in a largely unfinished or undeveloped condition. However, experts and industry figures told that it has been enjoying increased usage over recent months, and that it’s technologically ready for wider deployment.
But with the dominant narrative still framing bitcoin as a store of value, and with some technical creases still in need of ironing out, it may be some time before Lightning helps the cryptocurrency become a widely used means of exchange.
It may not be used by all BTC holders, but the Lightning Network’s node count recently hit an all-time high. It now stands at just under 9,000 nodes, which is basically the same number as total Bitcoin Core nodes.
Having grown by 81% since January 1, 2020, this number is certainly impressive. That said, the total number of BTC locked into the LN is currently 1,080, which is precisely the same number as was locked into the network on April 7, 2019.
This represents only 0.025% of the 4.25m bitcoins estimated (by Glassnode) to be in regular circulation. Nonetheless, even though most observers acknowledge that the LN is a work-in-progress, they also argue that it’s ready right now to be used more widely.
“It has already reached a point where it is possible to integrate with wallets like OKEx in order to offer users greatly reduced transaction fees and times on smaller amounts of BTC. This is an incredible step forward as one of Lightning's biggest issues has been the accessibility of this technology to the average person – and the user experience,” said OKEx CEO Jay Hao.
OKEx has indeed integrated the Lightning Network into its exchange, and it’s not actually the only exchange to have done so in recent weeks. OKEx-affiliated exchange OKCoin also did so in January, as did Vietnam’s oldest exchange VBTC and also UK exchange CoinCorner. It is also supported by Bitfinex, while Kraken aims to integrate it this year.
As reported, Strike, a popular BTC banking service by US-based Bitcoin Lightning startup Zap, aims to have its Strike Cards rolled out in countries on two continents in the first half of 2021. Strike is an application that allows users to make Lightning payments with either their bank account or debit car, without needing anything else. In early July, Strike's public beta was announced, during which the product got "well into 5-figure registered users and currently process millions of dollars in volume per month."
As Bitcoin developer Chris Belcher told, the Lightning Network is “ready for greater deployment,” and this recent wave of integrations suggests this is the case.
And while the network has in the past had a reputation for being difficult to use, OKEx is hoping its integration will go some way to making it more accessible for the layperson.
“On OKEx, it will be very simple and efficient to take advantage of the Lightning Network and this will help encourage greater usage and support the development of the wider Bitcoin ecosystem,” according to Jay Hao.
Bitcoin Rally Might Be Back To 'Normal' by April or 'Sooner' - Pantera's CIO
The bitcoin (BTC) market is still healthy, despite its recent selloff, which is usual for the bull runs in this nascent industry, according to Joey Krug, Co-Chief Investment Officer at major crypto investment firm Pantera Capital.
"I think, in terms of price action, things will be kind of back to normal by April, if not sooner. I think the market does sometimes take a little bit of time to let off steam. It's not going to go up in a straight line," he said during a panel discussion at the Bloomberg Crypto Summit yesterday.
"You know, in traditional finance a 30% to 40% pullback would be a massive bear market," he added.
BTC has dropped by around 20% from its all-time high of USD 58,641 (per Coingecko.com), reached on February 21. At the time of writing (11:37 UTC), it trades at USD 46,349 and is down by 7% in a day, trimming its monthly gains to 42%.
Similarly, BTC dropped by around 30% in January after surpassing USD 40,000 for the first time. It then struggled for a month trying to get above this level again, before suddenly rallying to almost USD 60,000, which was followed by massive liquidations of trading positions as futures traders became too optimistic and overleveraged.
Meanwhile, as for corporate investments in BTC, Krug said that "appropriate" allocation numbers might be "somewhere between 1%-3%" of cash reserves.
"And if BTC goes to zero - I think it's incredibly unlikely at this point - but if it did, you only lose one to three percent," which is a manageable risk for your business, according to the CIO.
Meanwhile, asked about bitcoin’s high volatility, Krug replied that it was actually a benefit in bitcoin’s favor.
Bitcoin is “a call option, and volatility is good for options,” he said. In options terminology, a call option represents a bet that prices will rise in the underlying spot market.
In contrast with Krug’s remarks, a recent survey of 77 finance executives released by research and advisory company Gartner showed bitcoin’s volatility was their top concern by a large margin, at 84%, when it comes to investing in this booming asset class.
However, per analysts at Man Group, the world’s biggest publicly traded hedge fund firm, bitcoin's volatility is simply part of the price discovery in a new asset class, and these are not bubbles. This volatility is "part of a not-so-random walk that will eventually dwindle to give bitcoin more stability, and ultimately, legitimacy," they said in January.
As reported, America’s Massachusetts Mutual Life Insurance (also known as MassMutual) purchased USD 100m worth of bitcoin to add to its general investment fund. MassMuttual’s holdings are now 0.04% held in BTC. Meanwhile, Jack Dorsey's Square now holds approximately 5% of their total cash in BTC.
At the same time, one of the most bullish non-crypto companies, US-based software developer MicroStrategy has now spent over USD 2bn (including borrowed funds) on buying BTC and they're planning to buy more.
"What MicroStrategy has done is really not that different than what the big insurer German industrialists did as they started to see the devaluation of the currency ahead of the hyperinflation. I'm not predicting that hyperinflation is going to hit. I'm just saying that that there is a historical analogy," Caitlin Long, CEO and Founder of forthcoming US-based digital asset-focused bank Avanti, who also participated in the discussion, said.
According to her, the tech companies have huge cash piles and they really do need to start thinking about that cash as "an asset that may be burning a hole in their pocket."
The bitcoin (BTC) market is still healthy, despite its recent selloff, which is usual for the bull runs in this nascent industry, according to Joey Krug, Co-Chief Investment Officer at major crypto investment firm Pantera Capital.
"I think, in terms of price action, things will be kind of back to normal by April, if not sooner. I think the market does sometimes take a little bit of time to let off steam. It's not going to go up in a straight line," he said during a panel discussion at the Bloomberg Crypto Summit yesterday.
"You know, in traditional finance a 30% to 40% pullback would be a massive bear market," he added.
BTC has dropped by around 20% from its all-time high of USD 58,641 (per Coingecko.com), reached on February 21. At the time of writing (11:37 UTC), it trades at USD 46,349 and is down by 7% in a day, trimming its monthly gains to 42%.
Similarly, BTC dropped by around 30% in January after surpassing USD 40,000 for the first time. It then struggled for a month trying to get above this level again, before suddenly rallying to almost USD 60,000, which was followed by massive liquidations of trading positions as futures traders became too optimistic and overleveraged.
Meanwhile, as for corporate investments in BTC, Krug said that "appropriate" allocation numbers might be "somewhere between 1%-3%" of cash reserves.
"And if BTC goes to zero - I think it's incredibly unlikely at this point - but if it did, you only lose one to three percent," which is a manageable risk for your business, according to the CIO.
Meanwhile, asked about bitcoin’s high volatility, Krug replied that it was actually a benefit in bitcoin’s favor.
Bitcoin is “a call option, and volatility is good for options,” he said. In options terminology, a call option represents a bet that prices will rise in the underlying spot market.
In contrast with Krug’s remarks, a recent survey of 77 finance executives released by research and advisory company Gartner showed bitcoin’s volatility was their top concern by a large margin, at 84%, when it comes to investing in this booming asset class.
However, per analysts at Man Group, the world’s biggest publicly traded hedge fund firm, bitcoin's volatility is simply part of the price discovery in a new asset class, and these are not bubbles. This volatility is "part of a not-so-random walk that will eventually dwindle to give bitcoin more stability, and ultimately, legitimacy," they said in January.
As reported, America’s Massachusetts Mutual Life Insurance (also known as MassMutual) purchased USD 100m worth of bitcoin to add to its general investment fund. MassMuttual’s holdings are now 0.04% held in BTC. Meanwhile, Jack Dorsey's Square now holds approximately 5% of their total cash in BTC.
At the same time, one of the most bullish non-crypto companies, US-based software developer MicroStrategy has now spent over USD 2bn (including borrowed funds) on buying BTC and they're planning to buy more.
"What MicroStrategy has done is really not that different than what the big insurer German industrialists did as they started to see the devaluation of the currency ahead of the hyperinflation. I'm not predicting that hyperinflation is going to hit. I'm just saying that that there is a historical analogy," Caitlin Long, CEO and Founder of forthcoming US-based digital asset-focused bank Avanti, who also participated in the discussion, said.
According to her, the tech companies have huge cash piles and they really do need to start thinking about that cash as "an asset that may be burning a hole in their pocket."
Grimes and Paris Hilton Go Full NFT – But Some Warn of Trouble Ahead
The non-fungible token (NFT) gravy train is building up a head of steam in the music and art industry.
Within just hours of dance producer 3Lau posting record-breaking sales of almost USD 12m for a batch of exclusive NFTs, the award-winning Canadian musician Grimes and the celebrity socialite and sometime singer Paris Hilton have clambered aboard. But some are warning that the NFT music and art bubble could be about to pop.
Grimes, who is also famously the partner of Tesla chief and bitcoin (BTC) fan Elon Musk, successfully sold some USD 6m worth of digital art in NFT form via the Nifty Gateway marketplace.
The move is another lurch toward crypto and blockchain technology for the Musk-Grimes family. Musk has taken the BTC plunge, calling it his “safe word” and then investing in USD 1.5bn worth of the token through his Tesla auto-making firm. He also joined the dogecoin (DOGE) hype train, buying tokens for his and Grimes’ son, X Æ A-12.
The news was followed by an announcement from the internet entrepreneur Kim Dotcom, who hinted that he and 1980s star MC Hammer would be working with Hilton on an NFT release that he claimed may fetch up to USD 30m. Hilton claimed that she was “excited” and “fascinated” by the world of NFTs, although her response was met with incredulity by many outspoken crypto advocates.
However, some are warning that the NFT craze could be fleeting.
Crypto trader Andrew Kong tweeted,
“Is it just me or does it seem like celebrities are gonna rug all their fans with NFTs?”
The EulerBeats music and art project recently raised some USD 458,000 in sales of 27 original NFT tracks, as part of a project from Treum, backed by ConsenSys, on the secondary market. But a Twitter user named Dark Pill observed that “any NFT issuer can devalue your holdings if someone pisses them off.”
Dark Pill was reacting to the news that a developer had “copycatted” EulerBeats’ work on the Binance Smart Chain blockchain protocol.
And this led Constantin Kostenko, the Senior Director of Blockchain Solution Architecture & Strategy at ConsenSys Mesh, and one of the architects of the EulerBeats project, to apparently concede that NFT projects could be undermined with relative ease.
In either case, former Coinbase Product Lead Reuben Bramanathan took a more positive tack, though, opining,
“Every single NFT that was minted in 2020 or earlier is going to be worth a lot of money, regardless of what content it is.”
The co-founder of BlockGeeks, Ameer Rosic, tweeted that NFTs were simultaneously evidence of “tulip mania” and would also “change the world.”
But the warning bells were sounding loud and clear for Ryan Selkis, the CEO of Messari, who stated that history could teach people a thing or two about NFT hype and how the picture may look once the current frenzy has subsided.
He wrote,
“In January 2018, I told our investors that ICOs initial coin offerings were going to correct 90-99%, but that many of them would be interesting as long-term investments post-correction. That's how I feel about NFTs today.”
His sentiments were echoed by the CEO of CivicKey, Vinny Lingham, who “100% agreed” with Selkis’ statement.
The non-fungible token (NFT) gravy train is building up a head of steam in the music and art industry.
Within just hours of dance producer 3Lau posting record-breaking sales of almost USD 12m for a batch of exclusive NFTs, the award-winning Canadian musician Grimes and the celebrity socialite and sometime singer Paris Hilton have clambered aboard. But some are warning that the NFT music and art bubble could be about to pop.
Grimes, who is also famously the partner of Tesla chief and bitcoin (BTC) fan Elon Musk, successfully sold some USD 6m worth of digital art in NFT form via the Nifty Gateway marketplace.
The move is another lurch toward crypto and blockchain technology for the Musk-Grimes family. Musk has taken the BTC plunge, calling it his “safe word” and then investing in USD 1.5bn worth of the token through his Tesla auto-making firm. He also joined the dogecoin (DOGE) hype train, buying tokens for his and Grimes’ son, X Æ A-12.
The news was followed by an announcement from the internet entrepreneur Kim Dotcom, who hinted that he and 1980s star MC Hammer would be working with Hilton on an NFT release that he claimed may fetch up to USD 30m. Hilton claimed that she was “excited” and “fascinated” by the world of NFTs, although her response was met with incredulity by many outspoken crypto advocates.
However, some are warning that the NFT craze could be fleeting.
Crypto trader Andrew Kong tweeted,
“Is it just me or does it seem like celebrities are gonna rug all their fans with NFTs?”
The EulerBeats music and art project recently raised some USD 458,000 in sales of 27 original NFT tracks, as part of a project from Treum, backed by ConsenSys, on the secondary market. But a Twitter user named Dark Pill observed that “any NFT issuer can devalue your holdings if someone pisses them off.”
Dark Pill was reacting to the news that a developer had “copycatted” EulerBeats’ work on the Binance Smart Chain blockchain protocol.
And this led Constantin Kostenko, the Senior Director of Blockchain Solution Architecture & Strategy at ConsenSys Mesh, and one of the architects of the EulerBeats project, to apparently concede that NFT projects could be undermined with relative ease.
In either case, former Coinbase Product Lead Reuben Bramanathan took a more positive tack, though, opining,
“Every single NFT that was minted in 2020 or earlier is going to be worth a lot of money, regardless of what content it is.”
The co-founder of BlockGeeks, Ameer Rosic, tweeted that NFTs were simultaneously evidence of “tulip mania” and would also “change the world.”
But the warning bells were sounding loud and clear for Ryan Selkis, the CEO of Messari, who stated that history could teach people a thing or two about NFT hype and how the picture may look once the current frenzy has subsided.
He wrote,
“In January 2018, I told our investors that ICOs initial coin offerings were going to correct 90-99%, but that many of them would be interesting as long-term investments post-correction. That's how I feel about NFTs today.”
His sentiments were echoed by the CEO of CivicKey, Vinny Lingham, who “100% agreed” with Selkis’ statement.
A Debt-Fuelled Economic Crisis & Bitcoin: What to Expect?
It’s hard to shake the fact that bitcoin (BTC)’s ascent from one fresh all-time high to another in recent months has taken place amid a backdrop of a struggling global economy. The United States’ GDP infamously tanked by a record 32.9% in Q2 2020 and fell by 3.5% across 2020 as a whole, while the International Monetary Fund (IMF) projected in June that the global economy would shrink by nearly 5% across the same period.
These are somber figures, yet some economists are suggesting that things could get even worse. Economists at the IMF recently warned that public and private debt — which were already rising in 2019 — could reach tipping point as a result of the COVID-19 pandemic, crippling the global economy to the point where it can’t properly recover.
Meanwhile, the US might approve their new USD 1.9trn coronavirus relief package in the coming days.
And while some suggest that commodities such as gold and silver may benefit from any acute crisis, others claim that the bitcoin and cryptoasset markets will suffer, as people and businesses rush for liquidity (i.e. cash), as we already saw during a major market crash in March 2020.
Most economic and financial experts appear to agree that some kind of debt-driven slump is approaching, although they tend to disagree on whether this is an inevitability or not.
“I think the crisis is inevitable and coming in the next few years,” said Michaël van de Poppe, a cryptocurrency trader and analyst.
“Overall private and public debt are going through the ceiling, while real estate and equity markets are accelerating fast and people are jumping around in euphoric emotions thinking that it will only go up even more. But, then the US Treasury yields are crawling upwards,” he added.
Yields on 10-year US Treasury bonds, which is considered to be a safe investment, revisited its one-year high of 1.6% this week, while Goldman Sachs estimates it might hit 1.9% this year as they “believe strong economic data will lead yields to resume their upward trajectory in the coming quarters.”
However, Société Genérale’s Albert Edwards wrote in a note, “the risk is growing that with so many bubbles blown by the Federal Reserve something will burst soon.”
However, for economist and author Peter Earle of the American Institute for Economic Research (AIER), a looming debt- and spending-fuelled crisis isn’t completely unavoidable.
“In every moment economic, financial market, and social circumstances change, and thus the likelihood of a downturn changes. Even if all the economic ‘stars’ were aligned in a way that made a crisis, recession, or depression likely within a few months – whatever that means – a single Treasury policy change, Federal Reserve program, or some other influence could and probably would radically change the predicted scenario,” he told.
That said, Earle acknowledges that the US and wider international economy is exhibiting many disconcerting signs.
“The huge expansion of the US money supply in March and April of 2020 has had a highly stimulative effect in financial and asset prices … There’s also an uncomfortable persistence in unemployment rates owing to the lockdowns. So clearly the economy is very hot in some ways and lukewarm in others,” he added.
Predicting when such factors will drag a struggling global economy into a full-blown crisis is hard, if not impossible, to predict. Though Michaël van de Poppe estimates it will happen sooner rather than later.
“I don’t assume we’ll be having the crisis this year, but I’m assuming it will start in 2022 and/or 2023 through which bitcoin will also top out in those years,” he said.
It’s hard to shake the fact that bitcoin (BTC)’s ascent from one fresh all-time high to another in recent months has taken place amid a backdrop of a struggling global economy. The United States’ GDP infamously tanked by a record 32.9% in Q2 2020 and fell by 3.5% across 2020 as a whole, while the International Monetary Fund (IMF) projected in June that the global economy would shrink by nearly 5% across the same period.
These are somber figures, yet some economists are suggesting that things could get even worse. Economists at the IMF recently warned that public and private debt — which were already rising in 2019 — could reach tipping point as a result of the COVID-19 pandemic, crippling the global economy to the point where it can’t properly recover.
Meanwhile, the US might approve their new USD 1.9trn coronavirus relief package in the coming days.
And while some suggest that commodities such as gold and silver may benefit from any acute crisis, others claim that the bitcoin and cryptoasset markets will suffer, as people and businesses rush for liquidity (i.e. cash), as we already saw during a major market crash in March 2020.
Most economic and financial experts appear to agree that some kind of debt-driven slump is approaching, although they tend to disagree on whether this is an inevitability or not.
“I think the crisis is inevitable and coming in the next few years,” said Michaël van de Poppe, a cryptocurrency trader and analyst.
“Overall private and public debt are going through the ceiling, while real estate and equity markets are accelerating fast and people are jumping around in euphoric emotions thinking that it will only go up even more. But, then the US Treasury yields are crawling upwards,” he added.
Yields on 10-year US Treasury bonds, which is considered to be a safe investment, revisited its one-year high of 1.6% this week, while Goldman Sachs estimates it might hit 1.9% this year as they “believe strong economic data will lead yields to resume their upward trajectory in the coming quarters.”
However, Société Genérale’s Albert Edwards wrote in a note, “the risk is growing that with so many bubbles blown by the Federal Reserve something will burst soon.”
However, for economist and author Peter Earle of the American Institute for Economic Research (AIER), a looming debt- and spending-fuelled crisis isn’t completely unavoidable.
“In every moment economic, financial market, and social circumstances change, and thus the likelihood of a downturn changes. Even if all the economic ‘stars’ were aligned in a way that made a crisis, recession, or depression likely within a few months – whatever that means – a single Treasury policy change, Federal Reserve program, or some other influence could and probably would radically change the predicted scenario,” he told.
That said, Earle acknowledges that the US and wider international economy is exhibiting many disconcerting signs.
“The huge expansion of the US money supply in March and April of 2020 has had a highly stimulative effect in financial and asset prices … There’s also an uncomfortable persistence in unemployment rates owing to the lockdowns. So clearly the economy is very hot in some ways and lukewarm in others,” he added.
Predicting when such factors will drag a struggling global economy into a full-blown crisis is hard, if not impossible, to predict. Though Michaël van de Poppe estimates it will happen sooner rather than later.
“I don’t assume we’ll be having the crisis this year, but I’m assuming it will start in 2022 and/or 2023 through which bitcoin will also top out in those years,” he said.
Taiwanese Prosecutors Swoop, Accusing Bitmain of IP Violations
Taiwan’s New Taipei District Prosecutors Office is investigating the possibility that the Mainland Chinese crypto mining giant Bitmain has, in the prosecutors’ own words, “poached” up to 100 AI engineers from Taiwanese companies in an operation that allegedly began back in 2018, per multiple media reports.
Per the Japanese media outlet Nikkei, as well as the Taiwanese outlets Apple Daily and the Liberty Times, prosecutors have swooped in at at least seven addresses in New Taipei City and Hsinchu, a hub of semiconductor and IT business, bringing in some 20 people for questioning.
The investigation is reportedly centering around two firms, namely IC Link and WiseCore.
Prosecutors reportedly raided offices for data including employees’ names and contracts and payroll data. Computers and mobile phones were also seized.
Nikkei claimed that it had spoken to the office, with the latter stating that a “preliminary investigation showed” that Bitmain had “allegedly first lured a senior engineer to work for a newly established Chinese company as a chairman in China, and asked the person to persuade former colleagues to follow.”
Prosecutors believe that Bitmain then went on to set up two companies “disguised as foreign investments in Taiwan to poach talent.”
The media outlet quoted a New Taipei District Prosecutors Office spokesperson as stating,
“We discovered that Bitmain has been poaching Taiwanese research and development talent to speed up its efforts on artificial intelligence chip capability by illegally setting up companies in Taiwan. The newly established companies served a headhunting purpose and the timespan of what Bitmain did dates back to 2018.”
The prosecutors added that “at least 100” engineers had been recruited and added that “there could be more.”
However, no trace of intellectual property violations has yet been unearthed, with the office adding,
“So far, no evidence of trade secrets leakages has been found.”
Bitmain has previously indicated its keenness to break into the AI chipset market, but – like many other Chinese hardware firms – currently relies heavily on the business behemoth Taiwan Semiconductor for much of its production needs.
Taiwanese law strictly prohibits Chinese investors from intervening in the Taiwanese semiconductor industry.
Nikkei also claims it has spoken to lawyers who state that prosecutors may also seek to “charge Bitmain executives with forgery because they filed papers to set up a business in Taiwan without properly disclosing their origin.”
Apple Daily reports that Bitmain originally attempted to lure Taiwanese engineers to relocated to the Mainland with promises of salaries twice as high as their incomes. But when this alleged strategy failed to bear fruit, the mining giant instead reportedly decided to change tack, and instead set up “illegally established” Taiwan-based firms.
Taiwan’s New Taipei District Prosecutors Office is investigating the possibility that the Mainland Chinese crypto mining giant Bitmain has, in the prosecutors’ own words, “poached” up to 100 AI engineers from Taiwanese companies in an operation that allegedly began back in 2018, per multiple media reports.
Per the Japanese media outlet Nikkei, as well as the Taiwanese outlets Apple Daily and the Liberty Times, prosecutors have swooped in at at least seven addresses in New Taipei City and Hsinchu, a hub of semiconductor and IT business, bringing in some 20 people for questioning.
The investigation is reportedly centering around two firms, namely IC Link and WiseCore.
Prosecutors reportedly raided offices for data including employees’ names and contracts and payroll data. Computers and mobile phones were also seized.
Nikkei claimed that it had spoken to the office, with the latter stating that a “preliminary investigation showed” that Bitmain had “allegedly first lured a senior engineer to work for a newly established Chinese company as a chairman in China, and asked the person to persuade former colleagues to follow.”
Prosecutors believe that Bitmain then went on to set up two companies “disguised as foreign investments in Taiwan to poach talent.”
The media outlet quoted a New Taipei District Prosecutors Office spokesperson as stating,
“We discovered that Bitmain has been poaching Taiwanese research and development talent to speed up its efforts on artificial intelligence chip capability by illegally setting up companies in Taiwan. The newly established companies served a headhunting purpose and the timespan of what Bitmain did dates back to 2018.”
The prosecutors added that “at least 100” engineers had been recruited and added that “there could be more.”
However, no trace of intellectual property violations has yet been unearthed, with the office adding,
“So far, no evidence of trade secrets leakages has been found.”
Bitmain has previously indicated its keenness to break into the AI chipset market, but – like many other Chinese hardware firms – currently relies heavily on the business behemoth Taiwan Semiconductor for much of its production needs.
Taiwanese law strictly prohibits Chinese investors from intervening in the Taiwanese semiconductor industry.
Nikkei also claims it has spoken to lawyers who state that prosecutors may also seek to “charge Bitmain executives with forgery because they filed papers to set up a business in Taiwan without properly disclosing their origin.”
Apple Daily reports that Bitmain originally attempted to lure Taiwanese engineers to relocated to the Mainland with promises of salaries twice as high as their incomes. But when this alleged strategy failed to bear fruit, the mining giant instead reportedly decided to change tack, and instead set up “illegally established” Taiwan-based firms.
Justin Sun: Christie’s Tech Glitch Stopped Me Paying USD 70M for Beeple NFT
The Tron (TRX) chief Justin Sun has spoken out after it was confirmed he was thwarted in the finals seconds during his attempt to buy the first piece of digital-only art to go under the hammer at the auction house Christie’s.
Initially, it was reported that Sun had been successful with a USD 69m bid for the work, ennoscriptd “Everydays: The First 5,000 Days,” by the artist Beeple. But it later emerged that Sun had been gazumped with a last-gasp bid from an unknown buyer who is yet to come forward.
As previously reported, Christie’s Noah Davis explained that a “handful of really dogged, really serious clients” had been bidding for the non-fungible token (NFT) work, adding that “they are mostly people who are very steeped in crypto."
Sun, however, appears incensed by the development, and took to Twitter to post a 12-part explanation of how he believes he should have become the rightful owner of the work. He alleged that an error on the Christie’s system had stopped him from submitting an 11th-hour bid of his own – for a staggering USD 70 million.
Sun wrote that he was ”outbid by another buyer in the last 20 secs by USD 250k. The difference was less than 0.3% of the total price,” adding that after the late (and eventually winning bid was lodged),
“I tried to update my bid to USD 70m in the last 30 seconds, yet my offer was somehow not accepted by Christie’s system even though there was still 20 seconds left of the auction.”
He posted what he claimed was video proof of his bidding activity, and contacted Christie’s to ask for an explanation, with what appeared to be an email from the auction house confirming that “unfortunately” his “bid did not reach” the auction house’s “bidding system in time.”
The Tron chief said he was not prepared to bear a grudge about the matter, adding,
“I respect Christie’s rules, and it was just unfortunate that we were not familiar with these terms hence lost the bid. I believe when the leading bidder gets outbid during the last few secs, they should get at least 90 seconds to have the chance to place one more bid. … My commitment and investment to art and NFT and to the Tron community won’t stop here. And I’m dedicated to finding the next Beeple and the next visionary digital artist!”
He also claimed that Christie’s would benefit from making use of blockchain technology to avoid issues like these in the future – and naturally offered to “help” with “incorporating blockchain technology to” the auction house’s system.
The Tron (TRX) chief Justin Sun has spoken out after it was confirmed he was thwarted in the finals seconds during his attempt to buy the first piece of digital-only art to go under the hammer at the auction house Christie’s.
Initially, it was reported that Sun had been successful with a USD 69m bid for the work, ennoscriptd “Everydays: The First 5,000 Days,” by the artist Beeple. But it later emerged that Sun had been gazumped with a last-gasp bid from an unknown buyer who is yet to come forward.
As previously reported, Christie’s Noah Davis explained that a “handful of really dogged, really serious clients” had been bidding for the non-fungible token (NFT) work, adding that “they are mostly people who are very steeped in crypto."
Sun, however, appears incensed by the development, and took to Twitter to post a 12-part explanation of how he believes he should have become the rightful owner of the work. He alleged that an error on the Christie’s system had stopped him from submitting an 11th-hour bid of his own – for a staggering USD 70 million.
Sun wrote that he was ”outbid by another buyer in the last 20 secs by USD 250k. The difference was less than 0.3% of the total price,” adding that after the late (and eventually winning bid was lodged),
“I tried to update my bid to USD 70m in the last 30 seconds, yet my offer was somehow not accepted by Christie’s system even though there was still 20 seconds left of the auction.”
He posted what he claimed was video proof of his bidding activity, and contacted Christie’s to ask for an explanation, with what appeared to be an email from the auction house confirming that “unfortunately” his “bid did not reach” the auction house’s “bidding system in time.”
The Tron chief said he was not prepared to bear a grudge about the matter, adding,
“I respect Christie’s rules, and it was just unfortunate that we were not familiar with these terms hence lost the bid. I believe when the leading bidder gets outbid during the last few secs, they should get at least 90 seconds to have the chance to place one more bid. … My commitment and investment to art and NFT and to the Tron community won’t stop here. And I’m dedicated to finding the next Beeple and the next visionary digital artist!”
He also claimed that Christie’s would benefit from making use of blockchain technology to avoid issues like these in the future – and naturally offered to “help” with “incorporating blockchain technology to” the auction house’s system.
'NFT' Surpasses 'Ethereum' on Google This Week as Trading Balloons
Non-fungible tokens (NFTs) surpassed Ethereum (ETH) on Google this week for the first time ever, while NFT dapps (decentralized applications) saw a triple-digit rise in volume and users.
While the Cryptoverse has had a period of gradual introduction to the phenomenon before the current craze, the term 'NFT' hit the mainstream media and its consumers abruptly and with full force. It and the news related to it have been the topic of many recent conversations, discussions, and reports - particularly now that artist Beeple's piece sold in a Christie's auction for the record-breaking USD 69m on March 11.
Google data shows that searches for the term 'nft' have surpassed the searches for 'ethereum' this past week (however, on average, ethereum is still more popular). Searches for 'ethereum' worldwide are relatively constant in this period, save for the March 13 jump. As for 'nft' - these are more irregular. Several peaks can be noted when 'nft' bested 'ethereum' in this respect, specifically on March 11-13, and then again on March 15.
The first-in-history is better seen on the 30-day chart, showing 'nft' shooting up six days ago and surpassing 'ethereum' soon after, before the latter reclaimed its position (however, it represents data only until March 13.)
As reported, NFTs already surpassed other major cryptoassets, such as litecoin (LTC), bitcoin cash (BCH), and XRP. Except, bitcoin (BTC).
Meanwhile, per Dapp, there are currently 130 applications in the NFT market. In the past 24 hours, they recorded the volume of USD 11.29m, down 51%, as well as 11,210 unique users, down 20%.
However, in the past month, these numbers rise to USD 467.74m in volume, up 320%, as well as 110,030 users, which is up 133%.
The first app by DAU (daily active users) is AtomicMarket – WAX which, per the site, recorded 5,234 DAU in the last 24 hours, which is down 10.65%. In the last week, that number is USD 14,150, up by 7%. Its volume in that period is USD 1.03m, while it also had 1.08m transactions (down 11.5%). WAX is followed by OpenSea, NFTBox, Rarible, and Argon, respectively. The last one had 441 DAU in the past day, down 18.8% from the day before.
Non-fungible tokens (NFTs) surpassed Ethereum (ETH) on Google this week for the first time ever, while NFT dapps (decentralized applications) saw a triple-digit rise in volume and users.
While the Cryptoverse has had a period of gradual introduction to the phenomenon before the current craze, the term 'NFT' hit the mainstream media and its consumers abruptly and with full force. It and the news related to it have been the topic of many recent conversations, discussions, and reports - particularly now that artist Beeple's piece sold in a Christie's auction for the record-breaking USD 69m on March 11.
Google data shows that searches for the term 'nft' have surpassed the searches for 'ethereum' this past week (however, on average, ethereum is still more popular). Searches for 'ethereum' worldwide are relatively constant in this period, save for the March 13 jump. As for 'nft' - these are more irregular. Several peaks can be noted when 'nft' bested 'ethereum' in this respect, specifically on March 11-13, and then again on March 15.
The first-in-history is better seen on the 30-day chart, showing 'nft' shooting up six days ago and surpassing 'ethereum' soon after, before the latter reclaimed its position (however, it represents data only until March 13.)
As reported, NFTs already surpassed other major cryptoassets, such as litecoin (LTC), bitcoin cash (BCH), and XRP. Except, bitcoin (BTC).
Meanwhile, per Dapp, there are currently 130 applications in the NFT market. In the past 24 hours, they recorded the volume of USD 11.29m, down 51%, as well as 11,210 unique users, down 20%.
However, in the past month, these numbers rise to USD 467.74m in volume, up 320%, as well as 110,030 users, which is up 133%.
The first app by DAU (daily active users) is AtomicMarket – WAX which, per the site, recorded 5,234 DAU in the last 24 hours, which is down 10.65%. In the last week, that number is USD 14,150, up by 7%. Its volume in that period is USD 1.03m, while it also had 1.08m transactions (down 11.5%). WAX is followed by OpenSea, NFTBox, Rarible, and Argon, respectively. The last one had 441 DAU in the past day, down 18.8% from the day before.
Bitcoin Suisse's Profit, Temptation Of Mt. Gox Creditors, Brazil's BTC ETF
Crypto financial services firm Bitcoin Suisse AG expects revenues for the full-year 2020 to be in excess of CHF 45m (USD 48.4m) and net profit in excess of CHF 15m (USD 16.13m), Marc Baumann, Head Marketing & Communication of the company. Per the website, in 2019, Bitcoin Suisse saw USD 22.5m in net revenue and USD 2.6m in net income. Their client activity for January and February 2021 was "very high" and it "indicates sustained strong momentum," according to Baumann. Audited results for the full-year 2020 should be published ahead of the Annual General Meeting in June 2021.
Vlad Tenev, CEO of brokerage platform Robinhood, said in a Q&A session that the company is planning to grow its crypto team "hugely" this year, that they've been hiring "a ton of people," and that they want to make "a huge investment." Answering a question from a customer who wants to see the platform "take a bite out of Coinbase," Tenev said: "we hear you on that," adding that the priority is ensuring the reliability and stability of the service when going through exponential growth. Another priority is enabling withdrawals "as soon as possible," and they might add some new coins along the way.
Fortress Investment Group is offering the creditors of defunct crypto exchange Mt. Gox about 80% of their claim value, Bloomberg reported, citing a letter from the company. In comparison, the Civil Rehabilitation plan from Mt. Gox’s Japan-based trustee, the one set for an October vote, would refund creditors about 90% of their claim value. Per the report, Fortress said the Rehabilitation plan payments would likely occur in mid-2022, and its own proposal would offer liquidity now.
The Securities and Exchange Commission of Brazil approved Bitcoin (BTC) exchange-traded fund by local blockchain investment firm QR Capital. Per the company, the fund will be listed on the B3 exchange while more details should be announced "soon."
Bitcoin IRA, a digital asset IRA technology platform that allows users to buy, sell and swap cryptocurrencies for their retirement accounts, said that over USD 100m have been invested into IRA Earn program. The new interest-earning program offers interest rates up to 6% annually on cash and crypto holdings, they claimed.
Two of South Korea’s biggest tech giants, the web search engine operator Naver and the chat app operator Kakao, forked out over USD 10.6m worth of investment in the blockchain accelerator Hashed’s Hashed Fund late last year. Per News1, recently published Kakao and Naver business reports showed that the search engine firm gave the fund over USD 7m worth of funding in mid-December last year, with Kakao stumping up the remainder. The fund’s aim, per its founders, is to create a “protocol economy” for promising blockchain technology-related startups.
Woorton, the French crypto trading prop shop, said it participated in the first-ever BTC auction in France, in which the French State had auctioned BTC 611 (USD 35.98m), recovered by the Agency for the Recovery of Seized and Confiscated Assets (AGRASC) during a judicial seizure, for a value of over EUR 28m (USD 33.3m). Per the emailed press release, Woorton bought several lots of bitcoins for a total amount of EUR 5m (USD 5.95m). Nearly 1,500 people and companies were registered, most of them participating online or by phone, while Woorton said it participated on the floor and bid on all the lots.
Thornton Place Condominium Corporation has announced that it has purchased BCT 0.4 for its reserve fund with CAD 25,000 (USD 20,000) in cash at an average price of approximately USD 50,000 per bitcoin, inclusive of fees and expenses. Per the press release, this is the first in a series of planned purchases, with an additional USD 560 per month allocated to the purchase of bitcoin on an ongoing and indefinite basis.
Crypto financial services firm Bitcoin Suisse AG expects revenues for the full-year 2020 to be in excess of CHF 45m (USD 48.4m) and net profit in excess of CHF 15m (USD 16.13m), Marc Baumann, Head Marketing & Communication of the company. Per the website, in 2019, Bitcoin Suisse saw USD 22.5m in net revenue and USD 2.6m in net income. Their client activity for January and February 2021 was "very high" and it "indicates sustained strong momentum," according to Baumann. Audited results for the full-year 2020 should be published ahead of the Annual General Meeting in June 2021.
Vlad Tenev, CEO of brokerage platform Robinhood, said in a Q&A session that the company is planning to grow its crypto team "hugely" this year, that they've been hiring "a ton of people," and that they want to make "a huge investment." Answering a question from a customer who wants to see the platform "take a bite out of Coinbase," Tenev said: "we hear you on that," adding that the priority is ensuring the reliability and stability of the service when going through exponential growth. Another priority is enabling withdrawals "as soon as possible," and they might add some new coins along the way.
Fortress Investment Group is offering the creditors of defunct crypto exchange Mt. Gox about 80% of their claim value, Bloomberg reported, citing a letter from the company. In comparison, the Civil Rehabilitation plan from Mt. Gox’s Japan-based trustee, the one set for an October vote, would refund creditors about 90% of their claim value. Per the report, Fortress said the Rehabilitation plan payments would likely occur in mid-2022, and its own proposal would offer liquidity now.
The Securities and Exchange Commission of Brazil approved Bitcoin (BTC) exchange-traded fund by local blockchain investment firm QR Capital. Per the company, the fund will be listed on the B3 exchange while more details should be announced "soon."
Bitcoin IRA, a digital asset IRA technology platform that allows users to buy, sell and swap cryptocurrencies for their retirement accounts, said that over USD 100m have been invested into IRA Earn program. The new interest-earning program offers interest rates up to 6% annually on cash and crypto holdings, they claimed.
Two of South Korea’s biggest tech giants, the web search engine operator Naver and the chat app operator Kakao, forked out over USD 10.6m worth of investment in the blockchain accelerator Hashed’s Hashed Fund late last year. Per News1, recently published Kakao and Naver business reports showed that the search engine firm gave the fund over USD 7m worth of funding in mid-December last year, with Kakao stumping up the remainder. The fund’s aim, per its founders, is to create a “protocol economy” for promising blockchain technology-related startups.
Woorton, the French crypto trading prop shop, said it participated in the first-ever BTC auction in France, in which the French State had auctioned BTC 611 (USD 35.98m), recovered by the Agency for the Recovery of Seized and Confiscated Assets (AGRASC) during a judicial seizure, for a value of over EUR 28m (USD 33.3m). Per the emailed press release, Woorton bought several lots of bitcoins for a total amount of EUR 5m (USD 5.95m). Nearly 1,500 people and companies were registered, most of them participating online or by phone, while Woorton said it participated on the floor and bid on all the lots.
Thornton Place Condominium Corporation has announced that it has purchased BCT 0.4 for its reserve fund with CAD 25,000 (USD 20,000) in cash at an average price of approximately USD 50,000 per bitcoin, inclusive of fees and expenses. Per the press release, this is the first in a series of planned purchases, with an additional USD 560 per month allocated to the purchase of bitcoin on an ongoing and indefinite basis.
Justin Sun Finally Snatches a Beeple, as Sophia the Robot Enters NFT
After failing recently to acquire a piece he aimed for, Tron (TRX) founder Justin Sun has finally succeeded in buying a non-fungible token (NFT) art piece by the celebrated human artist Beeple. Meanwhile, robot artist Sophia is entering the NFT frenzy, too.
Sun bought 'Ocean Front,' an NFT work by the record-breaking artist Mike Winkelmann, also known as Beeple, bidding USD 6m at a live auction. As a matter of fact, this is one of Beeple's 'Everydays' - a collection of 5,000 works, one created each day. Combined into 'Everydays: The First 5000 Days,' it was sold for more than USD 69m to buyer Metakovan.
Sun's successful bid to buy the artist’s work came shortly after the tech entrepreneur was outbid in a Christie’s auction earlier this month to buy Beeple's 'The First 5,000 Days.'
In the last minutes of this latest auction, only Sun and 'Farzin' were left in the marketplace Nifty Gateway battle, the latter one presumably being Farzin Fardin Fard, 3F Music Creative Director and Co-Founder. The two drove the price up from USD 4m to USD 6m.
The piece was a part of The Carbon Drop - a collection of eight "unique carbon negative nifties inspired by Earth and the climate crisis," presented by blockchain-focused, not-for-profit grant-making platform Social Alpha Foundation, with all proceeds going to the Open Earth Foundation, a US-based research and deployment 501c3 nonprofit, "raising funds to develop innovative open digital infrastructure for improved management of planet Earth."
Other participating artists were Refik Anadol, Sara Ludy, Mieke Marple, GMNUNK, Kyle Gordon, Andres Reisinger, and FVCKRENDER. The auction ended for all the pieces, with the prices raging USD 20,000 - USD 327,000, besides Beeple's piece. Overall, more than USD 6.66m should be going towards the Foundation.
Meanwhile, a humanoid is working to create NFTs as well.
“I hope the people like my work, and the humans and I can collaborate in new and exciting ways going forward,” said Sophia, a humanoid developed by the Hong Kong-based Hanson Robotics, as reported by Reuters.
Set in motion in 2016, Sophia creates her art in cooperation with Italian digital artist Andrea Bonceto who is known for his portraits depicting the world’s famous, such as Tesla’s CEO Elon Musk.
Roboticist Dr. David Hanson, the humanoid’s developer, describes Sophia’s creative process as “iterative loops of evolution” in which she combines Bonaceto’s art pieces, but also elements from art history and her own artwork on surfaces in multiple iterations.
Sophia’s first piece, created with the use of artificial intelligence (AI), is scheduled to be auctioned tomorrow during a drop.
“Through Computational Creativity, I collaborate with artists, AI developers, and engineers. Would you like to create an artwork with me?” Sophia tweeted ahead of the auction.
The art piece awaiting its auction on Wednesday, 'Sophia Instantiation', is a 12-second MP4 file demonstrating the evolution of one of Bonaceto’s portraits into Sophia’s digital artwork, and is accompanied by a physical piece painted by Sophia on a printed version of her self-portrait. Created with the use of Cinema 4D, Octane Render and Photoshop, the NFT artwork has a file size of more than 7.2m bytes.
Earlier this month, Hanson announced further robot art was underway, as there was “a lot more where these artworks are coming from." He added that "we actually are forming a whole new venture called Sophia Collective - a collaboration of Hanson Robotics and SingularityNET - oriented toward pulling together a global community to help move Sophia toward beneficial general intelligence through open source software and creative digital arts.”
After failing recently to acquire a piece he aimed for, Tron (TRX) founder Justin Sun has finally succeeded in buying a non-fungible token (NFT) art piece by the celebrated human artist Beeple. Meanwhile, robot artist Sophia is entering the NFT frenzy, too.
Sun bought 'Ocean Front,' an NFT work by the record-breaking artist Mike Winkelmann, also known as Beeple, bidding USD 6m at a live auction. As a matter of fact, this is one of Beeple's 'Everydays' - a collection of 5,000 works, one created each day. Combined into 'Everydays: The First 5000 Days,' it was sold for more than USD 69m to buyer Metakovan.
Sun's successful bid to buy the artist’s work came shortly after the tech entrepreneur was outbid in a Christie’s auction earlier this month to buy Beeple's 'The First 5,000 Days.'
In the last minutes of this latest auction, only Sun and 'Farzin' were left in the marketplace Nifty Gateway battle, the latter one presumably being Farzin Fardin Fard, 3F Music Creative Director and Co-Founder. The two drove the price up from USD 4m to USD 6m.
The piece was a part of The Carbon Drop - a collection of eight "unique carbon negative nifties inspired by Earth and the climate crisis," presented by blockchain-focused, not-for-profit grant-making platform Social Alpha Foundation, with all proceeds going to the Open Earth Foundation, a US-based research and deployment 501c3 nonprofit, "raising funds to develop innovative open digital infrastructure for improved management of planet Earth."
Other participating artists were Refik Anadol, Sara Ludy, Mieke Marple, GMNUNK, Kyle Gordon, Andres Reisinger, and FVCKRENDER. The auction ended for all the pieces, with the prices raging USD 20,000 - USD 327,000, besides Beeple's piece. Overall, more than USD 6.66m should be going towards the Foundation.
Meanwhile, a humanoid is working to create NFTs as well.
“I hope the people like my work, and the humans and I can collaborate in new and exciting ways going forward,” said Sophia, a humanoid developed by the Hong Kong-based Hanson Robotics, as reported by Reuters.
Set in motion in 2016, Sophia creates her art in cooperation with Italian digital artist Andrea Bonceto who is known for his portraits depicting the world’s famous, such as Tesla’s CEO Elon Musk.
Roboticist Dr. David Hanson, the humanoid’s developer, describes Sophia’s creative process as “iterative loops of evolution” in which she combines Bonaceto’s art pieces, but also elements from art history and her own artwork on surfaces in multiple iterations.
Sophia’s first piece, created with the use of artificial intelligence (AI), is scheduled to be auctioned tomorrow during a drop.
“Through Computational Creativity, I collaborate with artists, AI developers, and engineers. Would you like to create an artwork with me?” Sophia tweeted ahead of the auction.
The art piece awaiting its auction on Wednesday, 'Sophia Instantiation', is a 12-second MP4 file demonstrating the evolution of one of Bonaceto’s portraits into Sophia’s digital artwork, and is accompanied by a physical piece painted by Sophia on a printed version of her self-portrait. Created with the use of Cinema 4D, Octane Render and Photoshop, the NFT artwork has a file size of more than 7.2m bytes.
Earlier this month, Hanson announced further robot art was underway, as there was “a lot more where these artworks are coming from." He added that "we actually are forming a whole new venture called Sophia Collective - a collaboration of Hanson Robotics and SingularityNET - oriented toward pulling together a global community to help move Sophia toward beneficial general intelligence through open source software and creative digital arts.”
Indonesian Govt To Launch Crypto Exchange to Get a Piece of Crypto Pie
The Indonesian deputy minister of trade Jerry Sambuaga has announced that his ministry will launch its own crypto exchange in the near future. The initiative will allow the government to capture a share of the country’s booming crypto sector, with last year’s cryptoasset-related trade estimated to be worth about USD 4.44 billion, according to data cited by the deputy minister.
“In the near future, maybe within the coming months, or maybe even next month there will be an exchange especially regulating and accommodating the trades of these crypto commodities,” Sambuaga said during a webinar on crypto, reported the local media outlet Tempo.
Sambuaga pointed out the rising value of Indonesia’s crypto market, and the deputy minister said that what “this means is that it shows the future direction that digital assets and digital commodities can be an alternative.”
He added,
“This could even be the main pillar to increase our trade.”
In September 2018, the ministry legalized trading in cryptoassets for Indonesian residents.
A report published by the Indonesian Blockchain Association found that in 2020, there were more than 1.5 million crypto traders in the country – representing robust growth of 2,263% since 2015.
At the same time, some 80% of Indonesia’s 269 million citizens are still unbanked, the association noted.
The development is part of an international trend, with a growing number of governments launching state-owned crypto exchanges in a bid to lure domestic traders away from the private sector.
Among others, the crypto-keen Venezuelan government opened a crypto exchange in November last year, providing support for Caracas’ own petro (PTR) token, as well as bitcoin (BTC), litecoin (LTC), and dash (DASH) pairings with the fiat bolivar. The platform is named the Venezuela Exchange (VEX).
The Indonesian deputy minister of trade Jerry Sambuaga has announced that his ministry will launch its own crypto exchange in the near future. The initiative will allow the government to capture a share of the country’s booming crypto sector, with last year’s cryptoasset-related trade estimated to be worth about USD 4.44 billion, according to data cited by the deputy minister.
“In the near future, maybe within the coming months, or maybe even next month there will be an exchange especially regulating and accommodating the trades of these crypto commodities,” Sambuaga said during a webinar on crypto, reported the local media outlet Tempo.
Sambuaga pointed out the rising value of Indonesia’s crypto market, and the deputy minister said that what “this means is that it shows the future direction that digital assets and digital commodities can be an alternative.”
He added,
“This could even be the main pillar to increase our trade.”
In September 2018, the ministry legalized trading in cryptoassets for Indonesian residents.
A report published by the Indonesian Blockchain Association found that in 2020, there were more than 1.5 million crypto traders in the country – representing robust growth of 2,263% since 2015.
At the same time, some 80% of Indonesia’s 269 million citizens are still unbanked, the association noted.
The development is part of an international trend, with a growing number of governments launching state-owned crypto exchanges in a bid to lure domestic traders away from the private sector.
Among others, the crypto-keen Venezuelan government opened a crypto exchange in November last year, providing support for Caracas’ own petro (PTR) token, as well as bitcoin (BTC), litecoin (LTC), and dash (DASH) pairings with the fiat bolivar. The platform is named the Venezuela Exchange (VEX).
No Optimism For Ethereum In March - L2 Scaling Solution Delayed
After ignoring requests to comment on their progress, the team behind Ethereum (ETH) scaling solution, Optimism, finally confirmed that the network's mainnet public launch is not happening in March. Their new "rough estimate" for the launch is now July.
"The expedited timeline took most projects by surprise and we did not give ample notice for our community to prepare for launch. ... In our excitement, we only considered our own needs and failed to consider our partners’ timelines & requirements," the developers said today, adding that they're postponing the launch in favor of a more coordinated community launch.
According to them, an uncoordinated rush into Layer 2 without enough community preparation is dangerous and there's a risk that popular decentralized apps might get forked and launched by adversaries with the intention of defrauding users.
"Our goal is to make sure that foundational projects, infrastructure providers, block explorers, wallets, and token bridges have time to integrate, audit and test," the team said, adding that their main heuristic for opening mainnet to the broader public is "stability and ecosystem readiness."
Layer 1 (L1) is the base protocol (the Ethereum blockchain), while Layer 2 (L2) is any protocol built on top of Ethereum.
As reported, Optimism is an L2 scaling solution, which allows for the Ethereum mainnet to be 'unburdened' from the great number of transactions it has to process. It uses optimistic rollups to achieve lower fees and latency, as well as greater throughput compared to Ethereum L1 alone. The team behind Optimism was funded by venture firm a16z (Andreessen Horowitz) back in November - a round that enabled the latest Optimism hires and with them, expedited timeline.
a16z described Optimism as "an extension of Ethereum, with adherence to Ethereum development paradigms, which results in a very easy transition for developers, wallets and users."
At the time of writing (05:12 UTC), ETH trades at USD 1,624 and is up by almost 3% in a day, trimming its weekly losses to less than 9%. The price is up by almost 4% in a month and 1,091% in a year.
After ignoring requests to comment on their progress, the team behind Ethereum (ETH) scaling solution, Optimism, finally confirmed that the network's mainnet public launch is not happening in March. Their new "rough estimate" for the launch is now July.
"The expedited timeline took most projects by surprise and we did not give ample notice for our community to prepare for launch. ... In our excitement, we only considered our own needs and failed to consider our partners’ timelines & requirements," the developers said today, adding that they're postponing the launch in favor of a more coordinated community launch.
According to them, an uncoordinated rush into Layer 2 without enough community preparation is dangerous and there's a risk that popular decentralized apps might get forked and launched by adversaries with the intention of defrauding users.
"Our goal is to make sure that foundational projects, infrastructure providers, block explorers, wallets, and token bridges have time to integrate, audit and test," the team said, adding that their main heuristic for opening mainnet to the broader public is "stability and ecosystem readiness."
Layer 1 (L1) is the base protocol (the Ethereum blockchain), while Layer 2 (L2) is any protocol built on top of Ethereum.
As reported, Optimism is an L2 scaling solution, which allows for the Ethereum mainnet to be 'unburdened' from the great number of transactions it has to process. It uses optimistic rollups to achieve lower fees and latency, as well as greater throughput compared to Ethereum L1 alone. The team behind Optimism was funded by venture firm a16z (Andreessen Horowitz) back in November - a round that enabled the latest Optimism hires and with them, expedited timeline.
a16z described Optimism as "an extension of Ethereum, with adherence to Ethereum development paradigms, which results in a very easy transition for developers, wallets and users."
At the time of writing (05:12 UTC), ETH trades at USD 1,624 and is up by almost 3% in a day, trimming its weekly losses to less than 9%. The price is up by almost 4% in a month and 1,091% in a year.
'Guys, File Your Crypto Taxes, the IRS is Coming'
A tax expert is warning that filing crypto taxes is a must in order to avoid penalties, as the taxman knows you've got reportable transactions.
This comes as the Internal Revenue Service (IRS), the service of the United States federal government responsible for collecting taxes, is officially permitted to seek the names of high-value customers of crypto financial services firm Circle, while it also wants the same from crypto exchange Kraken.
"Guys, file your crypto taxes. The IRS is coming," warned Coin Tracker's Head of Tax Strategy, Shehan Chandrasekera.
The IRS knows users have reportable crypto transactions via their "matching" mechanism embedded in the IRS Information Reporting Program (IRP), he said in an earlier post. Furthermore, the exchanges are required to create appropriate tax forms for the users who meet the criteria.
Chandrasekera concluded that,
"Therefore, if you receive any tax form from an exchange, the IRS already has a copy of it and you should definitely report it to avoid tax notices and penalties."
The IRS is now seeking the records of American citizens who engaged in business with or through the US-based Circle. More precisely, the IRS wants information about US taxpayers who conducted at the minimum the equivalent of USD 20,000 in transactions in crypto in the years 2016-2020.
Per a Department of Justice press release, on April 1, a federal court authorized the IRS to serve a 'John Doe' summons on Circle, "or its predecessors, subsidiaries, divisions, and affiliates," and this includes crypto exchange Poloniex. The exchange was acquired by Circle in 2018, but sold in 2019.
Per IRS, a Jon Doe summons is one that doesn't identify the person with respect to whose liability the summons is issued, but "allows the IRS to obtain the names, requested information and documents concerning all taxpayers in a certain group."
The petition, therefore, doesn't allege that Circle has engaged in "any wrongdoing," said the press release, but asks the company to produce records identifying the US taxpayers which the IRS finds "may have failed to comply with any provision of any internal revenue laws," as well as other documents relating to their cryptocurrency transactions.
The IRS issued guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21, stating that virtual currencies that can be converted into fiat are property for tax purposes. In the court's order, the judge found that "there is a reasonable basis for believing that cryptocurrency users may have failed to comply with federal tax laws."
Meanwhile, on March 30, a petition for leave to serve a John Doe summons on Kraken was filed as well, seeking the same as in Circle's case.
In November 2016, a judge approved the John Doe summons on major crypto exchange Coinbase, which fought the order, but finally had to comply in late 2017, handing over the records for some 14,000 customers.
In January this year, the IRS released a new version of its draft instructions that clarify the definition of virtual currency and guide individual taxpayers on how to fill in the required 1040 form.
A tax expert is warning that filing crypto taxes is a must in order to avoid penalties, as the taxman knows you've got reportable transactions.
This comes as the Internal Revenue Service (IRS), the service of the United States federal government responsible for collecting taxes, is officially permitted to seek the names of high-value customers of crypto financial services firm Circle, while it also wants the same from crypto exchange Kraken.
"Guys, file your crypto taxes. The IRS is coming," warned Coin Tracker's Head of Tax Strategy, Shehan Chandrasekera.
The IRS knows users have reportable crypto transactions via their "matching" mechanism embedded in the IRS Information Reporting Program (IRP), he said in an earlier post. Furthermore, the exchanges are required to create appropriate tax forms for the users who meet the criteria.
Chandrasekera concluded that,
"Therefore, if you receive any tax form from an exchange, the IRS already has a copy of it and you should definitely report it to avoid tax notices and penalties."
The IRS is now seeking the records of American citizens who engaged in business with or through the US-based Circle. More precisely, the IRS wants information about US taxpayers who conducted at the minimum the equivalent of USD 20,000 in transactions in crypto in the years 2016-2020.
Per a Department of Justice press release, on April 1, a federal court authorized the IRS to serve a 'John Doe' summons on Circle, "or its predecessors, subsidiaries, divisions, and affiliates," and this includes crypto exchange Poloniex. The exchange was acquired by Circle in 2018, but sold in 2019.
Per IRS, a Jon Doe summons is one that doesn't identify the person with respect to whose liability the summons is issued, but "allows the IRS to obtain the names, requested information and documents concerning all taxpayers in a certain group."
The petition, therefore, doesn't allege that Circle has engaged in "any wrongdoing," said the press release, but asks the company to produce records identifying the US taxpayers which the IRS finds "may have failed to comply with any provision of any internal revenue laws," as well as other documents relating to their cryptocurrency transactions.
The IRS issued guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21, stating that virtual currencies that can be converted into fiat are property for tax purposes. In the court's order, the judge found that "there is a reasonable basis for believing that cryptocurrency users may have failed to comply with federal tax laws."
Meanwhile, on March 30, a petition for leave to serve a John Doe summons on Kraken was filed as well, seeking the same as in Circle's case.
In November 2016, a judge approved the John Doe summons on major crypto exchange Coinbase, which fought the order, but finally had to comply in late 2017, handing over the records for some 14,000 customers.
In January this year, the IRS released a new version of its draft instructions that clarify the definition of virtual currency and guide individual taxpayers on how to fill in the required 1040 form.
MicroStrategy Spends Another USD 15M on Bitcoin
One of the most bullish non-crypto companies, US-based software developer MicroStrategy, just increased their bitcoin (BTC) by spending another USD 15m once again.
Per CEO Michael Saylor, the company has purchased an additional BTC 253 for around USD 15m in cash at an average price of USD 59,339 per BTC.
As of April 5, MicroStrategy owned BTC 91,579, acquired for USD 2.226bn at an average price of USD 24,311 per bitcoin, he added. This stash is now worth almost USD 5.29bn.
The previous most recent BTC purchase by the company was announced on March 12.
One of the most bullish non-crypto companies, US-based software developer MicroStrategy, just increased their bitcoin (BTC) by spending another USD 15m once again.
Per CEO Michael Saylor, the company has purchased an additional BTC 253 for around USD 15m in cash at an average price of USD 59,339 per BTC.
As of April 5, MicroStrategy owned BTC 91,579, acquired for USD 2.226bn at an average price of USD 24,311 per bitcoin, he added. This stash is now worth almost USD 5.29bn.
The previous most recent BTC purchase by the company was announced on March 12.
New South Korean Crypto ‘Crackdown’ not ‘Bluster’ as Banking Ties Strain
The South Korean government has announced that it will embark on a “crackdown” on illegal crypto transactions, including those made on international crypto exchanges – following a meeting of high-powered political leaders, law enforcers and financial regulators.
Chosun reported that the Second Deputy Secretary of State Moon Seung-wook had convened a meeting of the Financial Services Commission, the Ministry of Strategy and Finance, the Ministry of Justice and the National Police Agency in a bid to tackle what the government has labeled an “overheated market.” Last time Seoul made noises like these, it followed up with a mini-crypto crackdown, which involved a (still extant) total initial coin offering (ICO) ban.
Janet Cho, an IT journalist based in Seoul,
“This doesn’t seem like bluster to me. There are certainly a lot of things the government can choose to do to squeeze the crypto sector. The real question is: ‘Will they scare off investors like they did in 2018?’ Perhaps this time around, that strategy won’t work – but only time will tell.”
Thus far, the ministries have been somewhat cagey with their plans, making only vague remarks about crypto’s status as “not legal tender” and noting that tokens’ value “is not guaranteed.”
The measures they are set to take so far also do not sound ground-shaking – with a “crackdown on cryptocurrencies being used in illegal activities such as market manipulation, money laundering and tax evasion” in the pipelines “in cooperation with the police, prosecutors and financial authorities.”
But while previous clampdowns have focused on domestic platforms, Chosun reports that this time ministers are “responding to illegal activities being conducted on overseas exchanges in cooperation with international organizations such as Interpol.”
However, a bigger problem could come from the world of banking.
Per new legislation, all crypto exchanges must now abide by banking regulations, with all exchange accounts linked to special real-name authenticated bank accounts. But with South Korean crypto fever booming, there are signs that the three banks that have agreed to work with the “big four” crypto exchanges on banking – namely Upbit, Korbit, Bithumb and Coinone – may have bitten off more than they can chew.
As reported yesterday, one of these banks, K-Bank, a newcomer to the crypto banking game, has already been experiencing problems due to its Upbit contract. A massive influx of new crypto business this year, while core mortgage and other lending products have experienced sluggish sales, has thrown the K-Bank monetary model dangerously out of kilter.
Fn News reported that one (unnamed) of the three commercial banks had asked its crypto exchanges partner to stop accepting new account signup requests – despite waves of “crypto moms” and younger (20-39) investors snapping up bitcoin (BTC) and major altcoins. Crypto market entry is “no longer optional” for younger demographics, one expert claimed.
Cho explained,
“The role of banks is key. If banks get cold feet, or scared off by the ‘crackdown,’ things could escalate.”
On Twitter, it appears that most will not be frighted off so easily.
One poster wrote that they did not want to “blame the government,” but opined that with “crazily escalating real estate prices,” the “only way” to escape the trap of low wages and increasingly expensive cost of living was via crypto.
The South Korean government has announced that it will embark on a “crackdown” on illegal crypto transactions, including those made on international crypto exchanges – following a meeting of high-powered political leaders, law enforcers and financial regulators.
Chosun reported that the Second Deputy Secretary of State Moon Seung-wook had convened a meeting of the Financial Services Commission, the Ministry of Strategy and Finance, the Ministry of Justice and the National Police Agency in a bid to tackle what the government has labeled an “overheated market.” Last time Seoul made noises like these, it followed up with a mini-crypto crackdown, which involved a (still extant) total initial coin offering (ICO) ban.
Janet Cho, an IT journalist based in Seoul,
“This doesn’t seem like bluster to me. There are certainly a lot of things the government can choose to do to squeeze the crypto sector. The real question is: ‘Will they scare off investors like they did in 2018?’ Perhaps this time around, that strategy won’t work – but only time will tell.”
Thus far, the ministries have been somewhat cagey with their plans, making only vague remarks about crypto’s status as “not legal tender” and noting that tokens’ value “is not guaranteed.”
The measures they are set to take so far also do not sound ground-shaking – with a “crackdown on cryptocurrencies being used in illegal activities such as market manipulation, money laundering and tax evasion” in the pipelines “in cooperation with the police, prosecutors and financial authorities.”
But while previous clampdowns have focused on domestic platforms, Chosun reports that this time ministers are “responding to illegal activities being conducted on overseas exchanges in cooperation with international organizations such as Interpol.”
However, a bigger problem could come from the world of banking.
Per new legislation, all crypto exchanges must now abide by banking regulations, with all exchange accounts linked to special real-name authenticated bank accounts. But with South Korean crypto fever booming, there are signs that the three banks that have agreed to work with the “big four” crypto exchanges on banking – namely Upbit, Korbit, Bithumb and Coinone – may have bitten off more than they can chew.
As reported yesterday, one of these banks, K-Bank, a newcomer to the crypto banking game, has already been experiencing problems due to its Upbit contract. A massive influx of new crypto business this year, while core mortgage and other lending products have experienced sluggish sales, has thrown the K-Bank monetary model dangerously out of kilter.
Fn News reported that one (unnamed) of the three commercial banks had asked its crypto exchanges partner to stop accepting new account signup requests – despite waves of “crypto moms” and younger (20-39) investors snapping up bitcoin (BTC) and major altcoins. Crypto market entry is “no longer optional” for younger demographics, one expert claimed.
Cho explained,
“The role of banks is key. If banks get cold feet, or scared off by the ‘crackdown,’ things could escalate.”
On Twitter, it appears that most will not be frighted off so easily.
One poster wrote that they did not want to “blame the government,” but opined that with “crazily escalating real estate prices,” the “only way” to escape the trap of low wages and increasingly expensive cost of living was via crypto.
Prepare For 'Uncertain Future of Money' – US Intelligence Center
America’s National Intelligence Council, a mid- and long-term strategic planning center, has issued a warning to the USA and its allies about “threats” to the dollar and the euro from stablecoin projects and “privately issued digital currencies.”
In its latest four-year report, named “Global Trends 2040: A More Contested World,” the body claimed that private-sector coins and other non-state-issued tokens “could add complexity to the conduct of monetary policy by reducing countries’ control over their exchange rates and money supply.”
The report’s authors also noted that China would likely emerge as America’s biggest rival with “greater contestation” in store at “every level” – including industry 4.0 tech.
Although the authors did not mention cryptoassets like bitcoin (BTC) by name, they did name-check “Facebook’s proposed Libra” project (now Diem) – a stablecoin project that is still yet to materialize after regulatory wrangling in the United States and elsewhere. The Chinese digital yuan also received a name check, as did other central bank digital currency (CBDC) projects.
In a section named the “uncertain future of money,” the authors wrote,
“The financial sector is not immune from the technological changes that are transforming other industries. Digital currencies are likely to gain wider acceptance during the next two decades as the number of CBDCs increase.”
They added that should Facebook and other countries succeed with token rollouts, this “would further drive acceptance of digital currencies, but indicated that regulators could play a crucial role.
They wrote,
“The extent to which privately issued digital currencies will provide a substitute for the use of national or regional fiat currencies, including the US dollar and the euro, to settle transactions will depend on the regulatory rules that are established.”
And these “privately issued digital currencies,” the authors remarked, “could add complexity to the conduct of monetary policy by reducing countries’ control over their exchange rates and money supply.”
There were other financial-sector warnings ahead, too. Over the course of the next two decades, they added, “several global economic trends,” could plague international unity, “including rising national debt, a more complex and fragmented trading environment, the global spread of trade in services, new employment disruptions and the continued rise of powerful firms.”
Also in the forecast were the following:
states will experience reduced economic flexibility as they navigate greater debt burdens
trading rules will diversify
public pressure to deal with challenges including demographic shifts and climate change will increase
Asian economies will continue decades of growth – but at a slower pace
higher growth in Asia could help countries avoid middle-income traps
The report’s sentiments echoed those of thinkers at the World Economic Forum in Davos earlier this year, where world economic leaders were warned not to take the economic status quo “for granted for the next decades.”
And financial experts at the International Monetary Fund (IMF) wrote in January that “uncertainty has reached unprecedented levels” during the coronavirus pandemic, with infectious spillovers from some influential nations threatening to cause further economic instability in the years ahead.
America’s National Intelligence Council, a mid- and long-term strategic planning center, has issued a warning to the USA and its allies about “threats” to the dollar and the euro from stablecoin projects and “privately issued digital currencies.”
In its latest four-year report, named “Global Trends 2040: A More Contested World,” the body claimed that private-sector coins and other non-state-issued tokens “could add complexity to the conduct of monetary policy by reducing countries’ control over their exchange rates and money supply.”
The report’s authors also noted that China would likely emerge as America’s biggest rival with “greater contestation” in store at “every level” – including industry 4.0 tech.
Although the authors did not mention cryptoassets like bitcoin (BTC) by name, they did name-check “Facebook’s proposed Libra” project (now Diem) – a stablecoin project that is still yet to materialize after regulatory wrangling in the United States and elsewhere. The Chinese digital yuan also received a name check, as did other central bank digital currency (CBDC) projects.
In a section named the “uncertain future of money,” the authors wrote,
“The financial sector is not immune from the technological changes that are transforming other industries. Digital currencies are likely to gain wider acceptance during the next two decades as the number of CBDCs increase.”
They added that should Facebook and other countries succeed with token rollouts, this “would further drive acceptance of digital currencies, but indicated that regulators could play a crucial role.
They wrote,
“The extent to which privately issued digital currencies will provide a substitute for the use of national or regional fiat currencies, including the US dollar and the euro, to settle transactions will depend on the regulatory rules that are established.”
And these “privately issued digital currencies,” the authors remarked, “could add complexity to the conduct of monetary policy by reducing countries’ control over their exchange rates and money supply.”
There were other financial-sector warnings ahead, too. Over the course of the next two decades, they added, “several global economic trends,” could plague international unity, “including rising national debt, a more complex and fragmented trading environment, the global spread of trade in services, new employment disruptions and the continued rise of powerful firms.”
Also in the forecast were the following:
states will experience reduced economic flexibility as they navigate greater debt burdens
trading rules will diversify
public pressure to deal with challenges including demographic shifts and climate change will increase
Asian economies will continue decades of growth – but at a slower pace
higher growth in Asia could help countries avoid middle-income traps
The report’s sentiments echoed those of thinkers at the World Economic Forum in Davos earlier this year, where world economic leaders were warned not to take the economic status quo “for granted for the next decades.”
And financial experts at the International Monetary Fund (IMF) wrote in January that “uncertainty has reached unprecedented levels” during the coronavirus pandemic, with infectious spillovers from some influential nations threatening to cause further economic instability in the years ahead.
Bitcoin Fees Hit ATH, Transactions Slow Down after China Explosion
Bitcoin (BTC) transaction fees have hit an all-time high after an explosion in Xinjiang, China, drove miners offline last week.
According to data from BitInfoCharts, the average (mean) fee is now USD 58.42, eclipsing the former record of USD 55.16 set in December 2017.
The disruption is likely to continue in the short term.
"I've personally had a BTC transaction pending for the last nine hours, with no confirmation in sight. This is not fun," Mati Greenspan, Founder of Quantum Economics, wrote in his newsletter yesterday. "Unless we see a quick recovery in the hash rate, it seems safe to say that things are gonna be a bit slow for a while."
The mining difficulty of Bitcoin is adjusted around every two weeks (or more precisely, every 2016 blocks) to maintain the normal 10-minute block time. The 7-day simple moving average block time on April 19 was more than 12 minutes.
In the longer term, some figures within the industry are looking forward to a future where Bitcoin becomes less reliant on Chinese hashpower.
Barry Silbert, the Founder and CEO of the Digital Currency Group, championed non-Chinese mining pools on Twitter, claiming they would provide the “diversity” the industry “needs.”
According to the Cambridge Bitcoin Electricity Index, China’s share of the Bitcoin hashrate declined between 2019 and 2020, falling from 75% in Q3 2019 to 65% in Q2 2020 (the latest period for which it provides data).
This gradual decline may well have continued into 2021, with new mining pools such as Foundry USA, SBI Crypto and others coming online over the past year.
The drop in hashrate, which coincided with the increase in BTC mining difficulty, has caused a rise in unconfirmed transactions, resulting in an upsurge in fees as users outbid each other to have their transactions sent to the front of a fast-growing queue.
And with Bitcoin’s automatic difficulty adjustment not due to take place for around 11 days, these new record fees may persist for some time yet.
While mean Bitcoin network fees are at an all-time high, median fees have hit a three-year high of USD 26.89, per the same data compiler. That – in the current market – is equivalent to roughly BTC 0.00049.
This figure is still relatively high, and has been caused mostly by a blackout in Xinjiang.
Alex Zhao, the CEO of Standard Hashrate Group, explained that miners in Xinjiang would likely be out of action for at least a week.
He said,
“A malfunctioning substation exploded in an industrial development zone designated to receive electricity utility fee abatement. This triggered a mandatory week-long shutdown and a safety inspection of the entire industrial development zone, which currently hosts a significant portion of Bitcoin hashrate.”
Accounts of just how far Bitcoin’s hashrate fell following the Xinjiang gas explosion vary. Data from BitInfoCharts indicates that it has plunged by as much as 37.5% since April 15, although analysts who have studied data from mining pools suggest that the fall may actually be closer to the 20% mark.
Bitcoin (BTC) transaction fees have hit an all-time high after an explosion in Xinjiang, China, drove miners offline last week.
According to data from BitInfoCharts, the average (mean) fee is now USD 58.42, eclipsing the former record of USD 55.16 set in December 2017.
The disruption is likely to continue in the short term.
"I've personally had a BTC transaction pending for the last nine hours, with no confirmation in sight. This is not fun," Mati Greenspan, Founder of Quantum Economics, wrote in his newsletter yesterday. "Unless we see a quick recovery in the hash rate, it seems safe to say that things are gonna be a bit slow for a while."
The mining difficulty of Bitcoin is adjusted around every two weeks (or more precisely, every 2016 blocks) to maintain the normal 10-minute block time. The 7-day simple moving average block time on April 19 was more than 12 minutes.
In the longer term, some figures within the industry are looking forward to a future where Bitcoin becomes less reliant on Chinese hashpower.
Barry Silbert, the Founder and CEO of the Digital Currency Group, championed non-Chinese mining pools on Twitter, claiming they would provide the “diversity” the industry “needs.”
According to the Cambridge Bitcoin Electricity Index, China’s share of the Bitcoin hashrate declined between 2019 and 2020, falling from 75% in Q3 2019 to 65% in Q2 2020 (the latest period for which it provides data).
This gradual decline may well have continued into 2021, with new mining pools such as Foundry USA, SBI Crypto and others coming online over the past year.
The drop in hashrate, which coincided with the increase in BTC mining difficulty, has caused a rise in unconfirmed transactions, resulting in an upsurge in fees as users outbid each other to have their transactions sent to the front of a fast-growing queue.
And with Bitcoin’s automatic difficulty adjustment not due to take place for around 11 days, these new record fees may persist for some time yet.
While mean Bitcoin network fees are at an all-time high, median fees have hit a three-year high of USD 26.89, per the same data compiler. That – in the current market – is equivalent to roughly BTC 0.00049.
This figure is still relatively high, and has been caused mostly by a blackout in Xinjiang.
Alex Zhao, the CEO of Standard Hashrate Group, explained that miners in Xinjiang would likely be out of action for at least a week.
He said,
“A malfunctioning substation exploded in an industrial development zone designated to receive electricity utility fee abatement. This triggered a mandatory week-long shutdown and a safety inspection of the entire industrial development zone, which currently hosts a significant portion of Bitcoin hashrate.”
Accounts of just how far Bitcoin’s hashrate fell following the Xinjiang gas explosion vary. Data from BitInfoCharts indicates that it has plunged by as much as 37.5% since April 15, although analysts who have studied data from mining pools suggest that the fall may actually be closer to the 20% mark.
Coinbase Pro Lists Tether, Prompting Debates Over Meaning Of This Move
Coinbase Pro has listed the most popular stablecoin tether (USDT) days after the parent company of the exchange went public, while the company behind the stablecoin has been criticized for lack of transparency.
Starting April 22, inbound transfers for USDT are available in the regions where trading is supported, ahead of the start of trading set for April 26, if liquidity conditions are met, said the crypto trading platform owned and operated by Coinbase.
Support for USDT will generally be available in Coinbase’s supported jurisdictions, with the exception of New York. Also, USDT is not yet available on the Coinbase platform or via the mobile apps.
As USDT has been launched on multiple chains over the years, including OMNI, EOS, Tron (TRX) and, as was recently announced, Polkadot (DOT), the exchange stressed that they only support ERC-20 USDT running on the Ethereum (ETH) blockchain.
The company behind the stablecoin, Tether Limited, claims to hold reserves that fully back each USDT (its market capitalization surpassed USD 49bn), said the announcement. As reported, in a February settlement with the New York Attorney General's office, Tether was obliged to disclose how its stablecoin is backed in more detail. Its March independent accountant's report claimed that the company's assets exceed its consolidated liabilities as of February 28.
Analyst Adam Cochran's view is that this listing is the "most bullish piece of news" he's seen in a long time. "This strongly legitimatizes Tether, which underpins huge price action, and now makes arbitrage to non-fiat exchanges more direct which is huge for capital flows," he wrote.
Researcher and Tether critic Cas Piancey tweeted that it's "mind-boggling" that Coinbase waited until after its direct listing to list tether. "Either the greatest move to finally make skeptics shut up or the absolute worst introduction of systemic risk possible, or both."
And while Cochran claims this news legitimizes tether, Partner at Anderson Kill Stephen Palley opined that this move maybe "strongly delegitimizes Coinbase," adding that "it's a terrible move and injects systemic risk right into the heart of crypto."
Cochran agrees there's a risk, but that it's "orders of magnitude smaller." If odds are laid out, it's more likely that it's in favor than not. "With their stake in USDC, & institutional footprint, I don't think their upside for USDT is that large. So this risk they'd weigh for it has to be comparable," he said.
But Piancey argued that Coinbase has USD and "it doesn’t really matter how anyone feels about Tether and it’s backing now. They’re 100% easily tradable for USD (or USDC) on a US platform."
Coinbase Pro has listed the most popular stablecoin tether (USDT) days after the parent company of the exchange went public, while the company behind the stablecoin has been criticized for lack of transparency.
Starting April 22, inbound transfers for USDT are available in the regions where trading is supported, ahead of the start of trading set for April 26, if liquidity conditions are met, said the crypto trading platform owned and operated by Coinbase.
Support for USDT will generally be available in Coinbase’s supported jurisdictions, with the exception of New York. Also, USDT is not yet available on the Coinbase platform or via the mobile apps.
As USDT has been launched on multiple chains over the years, including OMNI, EOS, Tron (TRX) and, as was recently announced, Polkadot (DOT), the exchange stressed that they only support ERC-20 USDT running on the Ethereum (ETH) blockchain.
The company behind the stablecoin, Tether Limited, claims to hold reserves that fully back each USDT (its market capitalization surpassed USD 49bn), said the announcement. As reported, in a February settlement with the New York Attorney General's office, Tether was obliged to disclose how its stablecoin is backed in more detail. Its March independent accountant's report claimed that the company's assets exceed its consolidated liabilities as of February 28.
Analyst Adam Cochran's view is that this listing is the "most bullish piece of news" he's seen in a long time. "This strongly legitimatizes Tether, which underpins huge price action, and now makes arbitrage to non-fiat exchanges more direct which is huge for capital flows," he wrote.
Researcher and Tether critic Cas Piancey tweeted that it's "mind-boggling" that Coinbase waited until after its direct listing to list tether. "Either the greatest move to finally make skeptics shut up or the absolute worst introduction of systemic risk possible, or both."
And while Cochran claims this news legitimizes tether, Partner at Anderson Kill Stephen Palley opined that this move maybe "strongly delegitimizes Coinbase," adding that "it's a terrible move and injects systemic risk right into the heart of crypto."
Cochran agrees there's a risk, but that it's "orders of magnitude smaller." If odds are laid out, it's more likely that it's in favor than not. "With their stake in USDC, & institutional footprint, I don't think their upside for USDT is that large. So this risk they'd weigh for it has to be comparable," he said.
But Piancey argued that Coinbase has USD and "it doesn’t really matter how anyone feels about Tether and it’s backing now. They’re 100% easily tradable for USD (or USDC) on a US platform."