Author

dave

Dave is a seasoned cryptocurrency expert and passionate writer in the digital currency space. Since diving into the world of crypto in 2015, he has been an ardent observer and participant in this ever-evolving domain. His fascination with cryptocurrencies, especially Bitcoin, and his keen interest in the transformative potential of blockchain technology have fueled his journey. With a deep understanding of cryptocurrency markets and trends, Dave brings a wealth of knowledge to his readers.

Bitcoin

Marathon Digital MARA Buys $100 Million in Bitcoin, Holdings Surpass 20,000 BTC

by dave July 25, 2024

written by dave 5 minutes read

MARA Buys $100 Million in Bitcoin, Holdings Surpass 20,000 BTC

Introduction

Bitcoin miner MARA, also known as Marathon Digital, has made a significant move by purchasing $100 million worth of bitcoin. This big purchase takes MARA’s total bitcoin holdings to over 20,000 BTC. MARA plans to adopt a full “HODL” strategy, meaning they will keep all the bitcoin they mine and will continue to make additional purchases when the time is right.

MARA’s Big Bitcoin Purchase

MARA recently announced that it has bought an extra $100 million worth of bitcoin. This acquisition brings their total bitcoin holdings on the balance sheet to more than 20,000 BTC, which is valued at about $1.3 billion. This amount represents nearly 0.1% of bitcoin’s total supply of 21 million.

MARA didn’t provide specific details on when they made these purchases or the average price per bitcoin. However, Salman Khan, MARA’s CFO, mentioned that they took advantage of favorable market conditions to make these strategic purchases. Based on the dollar amount and their holdings of 18,536 BTC at the end of June, it is likely that the latest acquisitions are around 1,500 BTC, bought in the $54,000 to $68,000 price range.

Previous Bitcoin Purchases

This isn’t the first time MARA has bought bitcoin outside of its mining production. In January 2021, MARA purchased $150 million worth of bitcoin. According to Salman Khan, the majority of the bitcoin on MARA’s balance sheet has come from their mining operations.

MARA’s Full HODL Strategy

MARA has decided to fully adopt a “HODL” strategy for its bitcoin treasury policy. This means they will keep all the bitcoin they mine and make additional strategic purchases periodically. Fred Thiel, MARA’s chairman and CEO, stated that this strategy shows their confidence in the long-term value of bitcoin. He believes that bitcoin is the best treasury reserve asset in the world and supports the idea of governments and corporations holding bitcoin as a reserve asset.

Reducing Bitcoin Sales

In 2023, MARA reduced the percentage of bitcoin sold from their production from 56% to 31% in 2024. This change was highlighted in a report by Bernstein, a research and brokerage firm. Before last year, MARA used to keep all their bitcoin. Given the current positive trends for bitcoin, including increased institutional support and a better macro environment, MARA is once again focusing on growing the amount of bitcoin they hold on their balance sheet.

Leveraging Balance Sheet and Capital Markets

Following their renewed strategy, MARA plans to use the existing cash on their balance sheet and capital markets to fund their operations. This means they are leveraging their financial strength to support their HODL strategy and further investments in bitcoin.

Expanding into Altcoin Mining

Last month, MARA announced that they are expanding into altcoin mining to diversify their revenue streams, especially after the Bitcoin halving. They have started using Kaspa application-specific integrated circuit (ASIC) miners since September 2023. This move is part of their strategy to grow beyond bitcoin and tap into the potential of other cryptocurrencies.

MARA’s Confidence in Bitcoin

MARA’s recent actions reflect their strong belief in the future of bitcoin. They see bitcoin as a crucial asset and are committed to holding and growing their bitcoin reserves. By adopting a full HODL strategy, reducing the percentage of bitcoin sold, and expanding into altcoin mining, MARA is positioning itself for long-term success in the cryptocurrency market.

Encouraging Others to Hold Bitcoin

Fred Thiel encourages other entities, including governments and corporations, to hold bitcoin as a reserve asset. He believes that bitcoin’s long-term value makes it an ideal choice for treasury reserves. MARA’s strategy and actions serve as a model for other companies considering similar moves.

MARA’s Strategic Bitcoin Acquisitions

MARA’s strategy involves making strategic bitcoin purchases during favorable market conditions. This approach allows them to maximize their bitcoin holdings and take advantage of lower prices. Their recent $100 million purchase is a testament to this strategy and their commitment to growing their bitcoin reserves.

Impact of Bitcoin’s Price Decline

Bitcoin’s recent price decline has provided an opportunity for MARA to increase their holdings. The strength of their balance sheet has enabled them to make significant purchases even during market downturns. This ability to buy low and hold for the long term is a key part of their HODL strategy.

Conclusion

MARA’s recent $100 million bitcoin purchase and their full HODL strategy demonstrate their strong belief in the future of bitcoin. By holding and strategically acquiring bitcoin, reducing sales, and expanding into altcoin mining, MARA is positioning itself as a leader in the cryptocurrency market. Their actions and strategy serve as a model for others, highlighting the potential of bitcoin as a treasury reserve asset.

Memecoins

OKX to Delist Cardano, Shiba Inu, and XRP Trading Pairs: Everything You Need to Know

by dave July 25, 2024

written by dave 9 minutes read

Major Crypto Exchange Moves To Delist Cardano, Shiba Inu, And XRP Pairs

A major cryptocurrency exchange, OKX, has announced plans to delist trading pairs for several crypto tokens, including Cardano (ADA), Shiba Inu (SHIB), and XRP. This decision follows a performance check by the crypto exchange, which shows that these trading pairs aren’t meeting expectations.

OKX To Delist These Trading Pairs

OKX announced in a blog post that it will delist spot trading pairs for ADA-ETH, XRP-ETH, SHIB-BTC, ADA-BTC, and XRP-BTC, among others. Other crypto tokens like Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT) were also caught in the mix. OKX revealed plans to delist some spot trading pairs related to these tokens as well.

The crypto exchange explained that this move is part of their regular monitoring and review of all listed trading pairs. This review process helps them maintain a robust trading environment. According to OKX, they decided to delist these trading pairs because they do not fulfill their listing criteria. However, the exchange did not specify the exact reasons for this action.

Delisting Schedule and Details

OKX has outlined the dates and times when these spot trading pairs will be delisted. The ADA-ETH spot trading pair will be delisted on July 25 between 8 and 8:30 a.m. UTC. The XRP-ETH and SHIB-BTC spot trading pairs will be delisted on July 26 between 8 and 8:30 a.m. UTC.

Furthermore, the ADA-BTC and XRP-BTC spot trading pairs will be delisted on August 1 and 2, respectively, between 8 and 8:30 a.m. UTC. OKX has advised customers to cancel their orders relating to these pairs before the delisting date. If customers fail to do so, the system will automatically cancel these orders, although the exchange noted that cancellations might take 1 to 3 working days.

Maintaining a Robust Trading Environment

OKX emphasizes that their decision to delist certain trading pairs is part of their effort to maintain a robust spot trading environment. The exchange regularly monitors and reviews all listed trading pairs to ensure they meet their criteria. This ongoing review process helps them identify and remove underperforming trading pairs.

OKX’s listing criteria are designed to ensure that only the most reliable and popular trading pairs are available on their platform. By delisting pairs that do not meet these criteria, OKX aims to provide a better trading experience for its users.

Impact on Other Crypto Tokens

In addition to delisting Cardano, Shiba Inu, and XRP trading pairs, OKX is also planning to delist trading pairs related to other crypto tokens like Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT). This move is part of the same review process aimed at maintaining a robust trading environment.

Users of these tokens should be aware of the potential impact of these delistings. It is important to monitor OKX’s announcements and take necessary actions to manage their trading activities accordingly.

Steps to Cancel Orders

To prepare for the delisting of certain trading pairs, OKX has provided instructions for canceling orders. Customers should log in to their OKX accounts and navigate to the trading pairs that will be delisted. From there, they can cancel any open orders related to these pairs.

If customers fail to cancel their orders before the delisting date, the system will automatically cancel them. However, this process might take 1 to 3 working days, so it is best to cancel orders manually to avoid any potential delays.

OKX Launches Telegram-based Game

OKX has been busy lately, not just with delisting trading pairs but also with new initiatives. The crypto exchange has launched a Telegram-based game called ‘OKX Racer.’ This game is centered on Bitcoin’s price movement, challenging gamers to correctly guess the flagship crypto’s price action within five-second intervals.

Jason Lau, Chief Innovation Officer at OKX, highlighted the growing popularity of Telegram’s mini-app platform. He stated that it is becoming a “can’t-miss venue” for those looking to engage the crypto community. OKX aims to embrace this user-friendly approach to “cultivate communities, incentivize participation, and encourage fun.”

Engaging the Crypto Community

The launch of OKX Racer is part of OKX’s efforts to engage the crypto community in new and exciting ways. Telegram mini-apps have become popular due to their potential for token airdrops, which can be distributed later to gamers. This model is similar to Notcoin’s NOT airdrop campaign, which successfully engaged users.

Although Jason Lau did not confirm if OKX plans to incentivize gamers through airdrops, the potential for such incentives could make the game even more appealing. By offering fun and interactive ways to engage with the crypto community, OKX hopes to strengthen its presence in the industry.

Potential Token Airdrops

Token airdrops have become a popular way to engage users in the crypto community. By distributing tokens to gamers, exchanges can incentivize participation and build stronger communities. OKX’s new initiatives, including the OKX Racer game, could potentially include token airdrops to reward users.

The success of previous airdrop campaigns, like Notcoin’s NOT airdrop, shows the effectiveness of this strategy. By offering similar incentives, OKX could attract more users and increase engagement on their platform.

Why is OKX Delisting Cardano, Shiba Inu, and XRP Pairs?

The decision to delist Cardano, Shiba Inu, and XRP trading pairs is based on OKX’s regular performance checks. These checks are part of the exchange’s efforts to maintain a robust trading environment. By removing underperforming pairs, OKX aims to provide a better experience for its users.

Although the exact reasons for the delisting were not specified, it is likely that these pairs did not meet OKX’s listing criteria. This could be due to low trading volumes, poor performance, or other factors that make them less attractive to traders.

What Are the Affected Trading Pairs?

OKX’s announcement includes several trading pairs that will be delisted. These pairs include ADA-ETH, XRP-ETH, SHIB-BTC, ADA-BTC, and XRP-BTC. Other trading pairs related to Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT) are also affected.

It is important for traders to be aware of these changes and take necessary actions to manage their trading activities. Canceling orders related to these pairs before the delisting date can help avoid potential issues.

How to Prepare for the Delisting

To prepare for the delisting of certain trading pairs, customers should cancel their orders before the specified dates. Logging in to OKX and navigating to the affected pairs is the first step. From there, customers can manually cancel their open orders.

If orders are not canceled manually, the system will automatically cancel them after the delisting date. However, this process may take 1 to 3 working days, so manual cancellation is recommended to avoid any delays.

OKX’s Vision for the Future

OKX’s recent actions, including the delisting of certain trading pairs and the launch of the OKX Racer game, reflect the exchange’s vision for the future. By regularly reviewing and updating their platform, OKX aims to maintain a robust trading environment and provide the best experience for their users.

The launch of new initiatives, like the Telegram-based game, shows OKX’s commitment to innovation and community engagement. By embracing new technologies and offering fun ways to engage with the crypto community, OKX hopes to strengthen its position in the industry.

Conclusion

OKX’s decision to delist trading pairs for Cardano, Shiba Inu, and XRP, along with other crypto tokens, is part of their effort to maintain a robust trading environment. By regularly reviewing and updating their platform, OKX aims to provide the best experience for their users.

The launch of the OKX Racer game and potential token airdrops show OKX’s commitment to innovation and community engagement. By offering new and exciting ways to engage with the crypto community, OKX hopes to strengthen its presence in the industry and attract more users.

Traders should be aware of the upcoming delistings and take necessary actions to manage their trading activities. Canceling orders related to the affected pairs before the delisting date can help avoid potential issues and ensure a smooth transition.

As OKX continues to innovate and engage with the crypto community, their efforts to maintain a robust trading environment and provide a better experience for users will likely strengthen their position in the industry.

Ethereum

Ethereum Price Tanks 8% After Spot ETF Launch: Sell-the-News Event or Short-Term Dip?

by dave July 25, 2024

written by dave 8 minutes read

Ethereum Price Tanks After Spot ETF Launch.

Just a day after the launch of the US spot Ethereum ETF, Ethereum’s price has dropped significantly. The price fell more than 8%, hitting as low as $3,150. This sharp decline caused many investors to lose money, leading to substantial liquidations of long positions in Ethereum.

Ethereum Liquidations Surge

Data from Coinglass shows that Ethereum liquidations have surged past those of Bitcoin in the last day. Ethereum liquidations have reached an astounding $97.8 million, compared to Bitcoin’s $80.9 million. This is a significant difference, showing the impact of the ETF launch on Ethereum.

Long Positions Heavily Liquidated

Breaking down the Ethereum liquidations, a large portion, $94.4 million, were long positions. Only $43.3 million targeted short positions. Most of these liquidations happened within the past four hours, matching the intense selling pressure on Ethereum.

Sell-the-News Event?

Some analysts believe that the approval of the spot Ethereum ETF might have triggered a “sell-the-news” event. This is similar to what happened with Bitcoin in January this year. In July, Ethereum’s price reached $3,500. Now, investors seem to be cashing out due to the excitement around the ETF launch.

ETH Whale Activity and Market Pressures

On-chain data reveals that a big Ethereum whale sold a large amount of coins on July 24th. According to Spot on Chain, this whale deposited 10,000 ETH on Kraken, worth $34.2 million, just before the price drop. The whale made a profit of $173 million from the sale. This whale had bought these coins at $1,580 in September 2022 from Coinbase.

Moreover, 10xResearch suggests that ongoing distributions from Mt. Gox are putting extra pressure on the broader cryptocurrency market. They think that Ethereum, due to stagnant or declining fundamentals, might be the weakest link in this situation.

Recovery on the Horizon?

Crypto analyst Michael van de Poppe remains optimistic. He suggests that Ethereum might see a reversal amidst strong outflows from the Grayscale Ethereum Trust. He predicts a two-week downward trend for ETH before it starts to rally towards new highs. The price may find support around $3,150 before bouncing back.

Mixed Performance in Spot Ethereum ETFs

While spot Ethereum ETFs started strong with nearly $107 million in net inflows, data from Farside Investors shows a decline on the second day. Investors withdrew about $133 million.

Fidelity’s Ethereum Fund (FETH) led the pack, attracting $74.5 million in net inflows. It surpassed BlackRock’s iShares Ethereum Trust (ETHA), which gathered $17.5 million on Wednesday.

Grayscale’s Ethereum Trust Outflows

In contrast to the success of other ETFs, Grayscale’s Ethereum Trust (ETHE) saw significant outflows. These outflows totaled nearly $327 million, bringing the cumulative outflow since launch to $811 million. As a result, ETHE’s assets under management have dropped to $8.3 billion from $9 billion before the launch.

Other Ethereum ETFs See Positive Inflows

However, there were some bright spots. Grayscale’s Ethereum Mini Trust (ETH) recorded about $46 million in inflows, making it one of the most affordable spot Ethereum products in the US market. Similarly, Bitwise’s Ethereum ETF (ETHW) and VanEck’s Ethereum ETF (ETHV) reported net inflows of more than $29 million and $20 million, respectively. Other positive performers included Franklin’s EZET and Invesco/Galaxy’s QETH.

Market Downturn

The broader market also experienced a decline. Bitcoin’s price dropped 2.52% to $64,200, and the overall crypto market fell nearly 4%. This slump coincided with a decline in the US stock market, with the Nasdaq Composite and S&P 500 experiencing their worst days since October and December 2022, respectively.

Spot Ethereum ETFs Post $113M of Outflows on Second Day of Launch

The “newborn” eight ETFs didn’t manage to beat the $327 million of outflows from Grayscale’s recently converted Ethereum Trust.

Second-Day Performance of Ether ETFs

United States-based spot Ether exchange-traded funds (ETFs) returned net outflows of $113.3 million on their second trading day. This was mainly due to heavy losses from Grayscale’s Ethereum Trust.

Seven of the eight “newborn” spot Ether ETFs posted net inflows on day two of trading. The Fidelity Ethereum Fund (FETH) and the Bitwise Ethereum ETF (BITW) led with the largest net inflows, posting $74.5 million and $29.6 million, respectively.

BlackRock’s iShares Ethereum Trust (ETHA), which had the most robust inflows on July 23, only collected $17.4 million from investors on July 24.

Heavy Selling from Grayscale’s Ethereum Trust

The new ETFs were weighed down by another heavy day of selling from the recently converted Grayscale Ethereum Trust (ETHE), which saw $326.9 million in outflows.

Impact of Grayscale’s Ethereum Trust Conversion

Launched by Grayscale in 2017, ETHE allowed institutional investors to purchase ETH. However, it imposed a six-month lock-up period on all investments. Upon its conversion to a spot Ether fund on July 22, investors have been able to sell their ETH more easily.

In the two days following its conversion, ETHE has seen $811 million in outflows. This means that existing ETHE investors have now sold off just over 9% of the fund’s holdings.

Related: Ethereum ETFs Start Strong but Lag Bitcoin ETF Launch

The recent Ether ETF performance isn’t unprecedented. Spot Bitcoin ETFs posted cumulative net outflows for six out of 10 of their first trading days. Many blame outflows from the Grayscale Bitcoin Trust ETF.

Ethereum Price Today

ETH is trading at $3,172 at the time of publication, down over 6.8% in the last 24 hours and 7.4% on the week, according to TradingView data.

Ether’s price drop happened during a wider sell-off in the equities market. The S&P 500 closed down 2.3% on July 24.

ETH’s Price Sensitivity to ETF Inflows

Notably, ETH fell more sharply compared to Bitcoin, which only dropped 2.6%. This matches Kaiko analyst Will Cai’s prediction that ETH’s price could be very “sensitive” to inflows following the launch of the ETFs.

Grayscale’s ETHE Shed $484.4 Million on First Trading Day

Grayscale’s ETHE lost $484.4 million on its first day of trading as a spot Ether ETF. However, strong inflows across the other eight products pushed cumulative net inflows to $106.6 million.

Ethereum’s Future Outlook

The future of Ethereum’s price remains uncertain. While some analysts predict a short-term dip, others see potential for a strong recovery. Investors should keep an eye on market trends, ETF performance, and whale activity to make informed decisions.

Conclusion

The launch of the US spot Ethereum ETF has significantly impacted Ethereum’s price and the broader crypto market. While there are mixed performances among different ETFs, the overall trend shows a substantial outflow from Grayscale’s Ethereum Trust. However, some analysts remain optimistic about Ethereum’s recovery. Investors need to stay informed and cautious as the market continues to evolve.

News

Japan’s Early Crypto Regulation: How It’s Paying Off in 2024

by dave July 23, 2024

written by dave 3 minutes read

Introduction to Japan’s Crypto Regulations

Japan has been quick to regulate crypto, unlike many other countries. After the big collapse of Mt.Gox in 2014, a Japan-based company, the government took swift action. They saw the crypto industry as very risky and decided to implement strict rules. These rules were put under the oversight of Japan’s financial regulator.

The Unique Evolution of Web3 in Japan

Ten years later, Web3 in Japan looks different from other countries. Instead of a lot of small startups, big companies are leading the way into Web3. They are doing this through strategic mergers and acquisitions (M&A) and investments.

One of the most active players is Softbank. In 2022, Softbank acquired a controlling stake in BITPoint, a crypto trading platform. They also invested heavily in a Web3 venture fund started by Deutsche Bank. In 2023, Sony also joined the trend by launching a rebranded crypto exchange called S.BLOX. This was after they acquired a local platform, Whalefin.

Highlights from Japan Blockchain Week Summit

During the Japan Blockchain Week Summit in early July, it was clear that big corporations are moving into Web3. Many speakers from large corporations attended, which made the event stand out. This trend is unique to Japan. In the United States, companies like Coinbase and Base Chain are big contributors to Web3. We can expect similar synergies to happen in Japan too.

Japan’s National Web3 Strategy

Japan’s move into Web3 is part of a national policy started in late 2022 by Prime Minister Kishida Fumio. This policy includes tax reforms, rules for stablecoins and NFTs, and allowing investment funds to hold digital assets. These changes are expected to lead to significant developments soon.

Challenges for Small Operators in Japan

However, Japan’s strict rules make it hard for small operators to start from scratch. Daiki Moriyama, Director at the gaming-focused blockchain Oasys, says this is why M&A is popular. Starting a new crypto exchange and getting the necessary licenses is expensive and time-consuming. So, buying existing exchanges is a smart strategy.

For smaller companies, the high compliance costs can make it hard to be profitable. Teaming up with larger companies is a better way to stay in business and reach global audiences.

Impact of Big Players Like Sony

The entry of big players like Sony is also good for the crypto industry’s reputation. It can help change the way people see the industry, which was once viewed with skepticism.

Japan is showing that even strict regulation can provide the certainty needed by big companies. This approach is proving to be effective. It lays the groundwork for a strategic path into Web3 through acquisitions and investments. This can help bring crypto to new audiences and industries.

Bitcoin

BTCTurk CEO Resigns Amid Major Global Expansion Plans

by dave July 20, 2024

written by dave 6 minutes read

Ozgur Guneri Steps Down After Seven Years

Ozgur Guneri, the CEO of Turkey’s largest cryptocurrency exchange BtcTurk, is stepping down after seven years. This announcement marks a significant change for the company, as BtcTurk looks to expand its reach beyond Turkey. Despite stepping down as CEO, Guneri will remain a board member, continuing to influence the company’s strategic direction.

Kerem Tibuk Takes Over as Acting CEO

BtcTurk’s founder, Kerem Tibuk, will take over as the acting CEO. Tibuk has big plans for BtcTurk, including launching a global exchange. He aims to tap into markets in Latin America, Africa, and the Asia-Pacific region. According to Tibuk, the current bull market in Bitcoin will lead to higher prices, making this an opportune time for expansion.

Turkey’s Growing Interest in Cryptocurrency

Turkey has become one of the top markets for cryptocurrencies. The country’s high inflation and collapsing local currency have driven many people to invest in digital assets. This surge in interest has also led to a growing number of former central bank officials joining cryptocurrency exchanges. President Recep Tayyip Erdogan even appointed an academic focused on blockchain technology to the monetary authority’s rate-setting committee last year.

Global Exchange Plans

BtcTurk’s global expansion plans are a significant part of its strategy. The company plans to launch a global exchange, targeting new markets in Latin America, Africa, and the Asia-Pacific region. Tibuk believes that Bitcoin, the world’s biggest cryptocurrency, is in a bull market, and he expects prices to be higher than they are today. This optimistic outlook is a key driver behind the expansion efforts.

Ozgur Guneri’s New Focus

Although stepping down as CEO, Ozgur Guneri is not leaving the cryptocurrency scene. He plans to focus on international cooperation and global matters. Guneri anticipates a lively final quarter and an exciting 2025 for cryptocurrencies worldwide. His experience and insight will continue to benefit BtcTurk as the company navigates the complexities of the global market.

BtcTurk’s User Base and New Developments

Established in 2013, BtcTurk has grown to have about 6 million users in Turkey. The company, managed by Elliptik Software and Trade Inc., is also working on an equity trading platform. This new platform is expected to launch at the end of the year, adding another dimension to BtcTurk’s offerings.

Cyberattack and Security Measures

BtcTurk faced a significant challenge in June when it was hit by a cyberattack. Several of its hot wallets were accessed, and cryptocurrency was stolen from some of them. However, the company has assured its users that their assets are safe. The exchange’s financial strength is well above the amounts taken, and user assets will not be affected by the losses. BtcTurk is carrying out detailed research on the attack and has contacted official authorities to address the issue.

Impact of the Cyberattack

Only some of the balances in the hot wallets of ten cryptocurrencies were affected by the cyberattack. BtcTurk’s cold wallets, where most of the assets are kept, were not impacted. The exchange’s response to the attack highlights its commitment to security and user protection. By compensating users for their losses, BtcTurk aims to maintain trust and confidence in its platform.

BtcTurk’s Financial Resilience

Despite the cyberattack, BtcTurk remains financially strong. The exchange’s financial resources far exceed the amount stolen, ensuring that user assets are not at risk. This resilience is crucial as BtcTurk prepares for its global expansion and the launch of its equity trading platform. The company’s ability to recover from setbacks and continue growing is a testament to its strong foundation and strategic planning.

Cryptocurrency Regulations in Turkey

The rise of cryptocurrency in Turkey has also brought attention to regulatory issues. The government has been working on creating a framework for cryptocurrency regulations. These regulations are expected to provide clarity and stability for the market, making it safer for investors. As one of the leading exchanges in Turkey, BtcTurk is closely monitoring these developments to ensure compliance and adapt to any changes.

Blockchain Technology in Turkey’s Financial Sector

Blockchain technology is becoming increasingly important in Turkey’s financial sector. President Erdogan’s appointment of a blockchain-focused academic to the monetary authority’s rate-setting committee is a significant step. This move reflects the government’s recognition of blockchain’s potential to revolutionize financial systems. BtcTurk, with its focus on blockchain and cryptocurrency, is well-positioned to benefit from these advancements.

Future of Cryptocurrency in Turkey

The future of cryptocurrency in Turkey looks promising. With high inflation and a weak local currency, more people are turning to digital assets as a hedge against economic instability. BtcTurk, as the largest cryptocurrency exchange in the country, is at the forefront of this trend. The company’s expansion plans and new initiatives, such as the equity trading platform, are set to further solidify its position in the market.

Conclusion

BtcTurk is undergoing significant changes with Ozgur Guneri stepping down as CEO and Kerem Tibuk taking over as acting CEO. The company’s plans for global expansion and the launch of an equity trading platform mark an exciting new chapter. Despite the challenges posed by the recent cyberattack, BtcTurk remains financially strong and committed to its users. As Turkey continues to embrace cryptocurrency amid high inflation and economic uncertainty, BtcTurk is poised to lead the market with its innovative approach and strategic vision.

Ethereum

Will BlackRock and Wall Street Giants Ruin Decentralized Crypto? Exploring the Future of DeFi

by dave July 19, 2024

written by dave 4 minutes read

BlackRock and Wall Street Giants Entering the Decentralized Crypto Industry: Will They Spoil the Party?

Traditional Finance Meets Decentralized Finance

Recently, big Wall Street companies like BlackRock and Fidelity have started getting involved in the decentralized crypto industry. Many people in the crypto community are worried that these financial giants might ruin the idea of decentralizing finance. Larry Fink, the co-founder and CEO of BlackRock, has shown strong support for cryptocurrency. In a recent interview, he said that Bitcoin is legitimate and believes that cryptocurrency should be part of an average investor’s portfolio.

What is Decentralized Finance (DeFi)?

Decentralized finance, or DeFi, is a part of the crypto world that aims to create an open and borderless financial system. This system operates without relying on traditional finance or centralized intermediaries like banks. The main goal is to limit the power of these centralized institutions and to provide financial services to billions of unbanked people around the world.

Financial Institutions Entering the Crypto Space

Financial institutions like BlackRock have now entered the crypto space. After getting approval from the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs in the U.S., BlackRock’s iShares group launched the iShares Bitcoin Trust (IBIT) earlier this year. This is the largest spot Bitcoin exchange-traded fund, holding more than $18 billion in assets. BlackRock also plans to launch an Ether ETF in the near future.

Views on DeFi and Traditional Finance

Noelle Acheson, a crypto expert and author of the “Crypto is Macro Now” newsletter, believes that the blockchain ecosystem will continue to grow whether or not large institutions are involved. She says that “BlackRock and Fidelity don’t control the development of decentralized services; rather, they complement it.” This means that while these big companies are involved, they don’t have full control over the decentralized finance world.

The Need for Some Centralization in DeFi

Even though crypto is decentralized, it still relies on certain centralized aspects like crypto exchanges, key players in mining, and core developers who often have control over the software. This traditional financial system is necessary for the development of cryptocurrency and blockchain ecosystems. For example, BlackRock’s BUIDL fund, launched in March, tokenizes assets like cash, short-term debt, and securities on the Ethereum blockchain network. This process enhances transparency and liquidity and shows how traditional finance and blockchain are merging.

Concerns About Bitcoin Centralization

Peko Wan, the co-CEO of blockchain platform Pundi X, is worried about a different issue. She thinks that decentralizing finance does not necessarily mean decentralizing ownership. BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin exchange-traded fund, holds more than $18 billion in assets. Similarly, Michael Saylor’s MicroStrategy holds 1% of the total Bitcoin in circulation.

Wan says that if a large quantity of Bitcoin is held by certain organizations, people don’t know what these organizations will do with their holdings. She added that it’s a common fear because 70% of the world’s assets are actually held by maybe 5% of the population. Even though crypto is built on a decentralized network, who holds the crypto is becoming centralized. “If Bitcoin becomes too centralized because of who is holding it, people may lose trust in that,” she said.

The Future of Money

The financial model is now a mix of centralization and decentralization instead of just one or the other. DeFi has brought about some groundbreaking changes, but it has also experienced several setbacks. To rebuild confidence in the system, a hybrid model is becoming more popular. It’s important to consider the original purpose of decentralized finance and whether it is truly addressing the needs of the unbanked population.

Conclusion

At the time of writing, Bitcoin was trading at $66,320, up 4.2% over the last 24 hours. The involvement of financial giants like BlackRock and Fidelity in the decentralized crypto industry is both exciting and concerning. While it is promising to see cryptocurrency gaining mainstream acceptance, there is a real fear that these big players might undermine the core idea of decentralizing finance. As traditional finance merges with decentralized finance, the future of money looks like a blend of both worlds, aiming to benefit everyone, especially the unbanked.

Memecoins

Meme Coins Surge After Failed Trump Assassination Attempt: Pepe, Dogwifhat, and Dogecoin Lead Gains

by dave July 16, 2024

written by dave 5 minutes read

Meme coins, some of the riskiest cryptocurrencies around, have surged in value since a failed assassination attempt on Donald Trump last Saturday. This article will explore the recent trends in meme coins like Pepe, Dogwifhat, and Dogecoin, and their connection to recent events.

Meme Coins on the Rise

In the last day, meme coins such as Pepe (PEPE) and Dogwifhat (WIF) have been among the biggest winners in the cryptocurrency market. According to CoinGecko data, Pepe has jumped 21% and is now priced at $0.00001256, while Dogwifhat has risen 18% to $2.24.

Another meme coin gaining attention is Popcat, a Solana-based token. Popcat has shot up nearly 18% in the past 24 hours, now priced at $0.8995.

Among the largest-cap meme coins, Dogecoin—the original meme coin and the 10th biggest cryptocurrency by market cap—has also seen significant gains. Dogecoin is up nearly 5% in the past day, currently standing at $0.1252. This increase marks a bigger jump than both Bitcoin and Ethereum.

What Are Meme Coins?

Meme coins are cryptocurrencies often based on internet memes, jokes, and current events. These virtual coins and tokens can run on their own blockchains or on major networks like Ethereum and Solana. Meme coins are known for their high volatility, meaning their prices can swing wildly up or down.

The Trump Effect

“Risk-on” assets—investments that tend to fluctuate in price—have performed well following the failed assassination attempt on Donald Trump. A bullet skimmed Trump’s ear at a rally on Saturday, but he was not seriously injured. Investors are now betting that Trump will win the upcoming election and be the most Wall Street-friendly candidate.

As a result, crypto and meme stocks have surged, with Trump-themed meme coins in particular skyrocketing in value over the weekend. Trump has positioned himself as a crypto-friendly presidential hopeful. He has promised to “defend the right to mine Bitcoin” and is scheduled to speak at the 2024 Bitcoin Conference in Nashville, TN, later this month.

Bitcoin’s Surge

Bitcoin has also seen a rise, breaking above $65,000 per coin for the first time in nearly a month. It is currently priced at $64,359, up more than 1% over the past 24 hours. This rise in Bitcoin is part of a broader trend in the cryptocurrency market, where other major coins like Ethereum have also seen gains.

Why Are Meme Coins So Volatile?

Meme coins are highly volatile for several reasons. First, their value is often tied to internet trends and jokes, which can change rapidly. Second, they are relatively new and less established compared to major cryptocurrencies like Bitcoin and Ethereum. This lack of stability makes their prices more susceptible to sudden changes.

Investing in Meme Coins

Investing in meme coins can be risky but potentially rewarding. Due to their high volatility, meme coins can offer significant returns in a short period. However, they can also result in substantial losses just as quickly. Investors interested in meme coins should be prepared for this volatility and only invest what they can afford to lose.

The Role of Social Media

Social media plays a crucial role in the rise and fall of meme coins. Platforms like Twitter, Reddit, and TikTok can drive interest and investment in these cryptocurrencies. Memes and viral content can quickly boost a coin’s popularity, leading to rapid price increases. Conversely, negative news or jokes can cause prices to plummet.

Future of Meme Coins

The future of meme coins is uncertain but likely to remain tied to internet culture and trends. As long as memes and jokes continue to be popular online, meme coins will likely have a place in the cryptocurrency market. However, their long-term viability will depend on their ability to adapt to changing trends and maintain investor interest.

Conclusion

Meme coins have experienced a significant surge following the failed assassination attempt on Donald Trump. Coins like Pepe, Dogwifhat, and Dogecoin have seen substantial gains, driven by investor speculation and Trump’s crypto-friendly stance. However, investing in meme coins remains highly volatile and risky. As the cryptocurrency market continues to evolve, meme coins will likely remain a fascinating but unpredictable part of the landscape.

Stablecoins

A Comprehensive Guide to China’s Digital Yuan (e-CNY) in 2024

by dave July 16, 2024

written by dave 6 minutes read

Overview Of The E-CNY, China’s Digital Yuan

One of the most interesting areas in studying China and Bitcoin is the Digital Yuan. This guide summarizes the latest updates on the Digital Yuan (e-CNY) project as we enter 2024.

What is the e-CNY/Digital Yuan?

The Digital Yuan is China’s version of a central bank digital currency (CBDC). This means the central bank is directly involved in issuing accounts to individuals. The Digital Yuan is a retail CBDC, designed for use by the general public, unlike wholesale CBDCs that are used by banks. It is intended to replace cash, does not bear any interest, and is pegged 1:1 with the Chinese Yuan.

Where Can You Use the e-CNY?

Specific merchants accept the e-CNY, and it is also used in public transit systems in major cities like Beijing. During the Winter Olympics, it was one of the three accepted forms of payment.

Can I Buy Digital Yuan?

No, you can’t buy Digital Yuan unless you are in one of the 29 pilot areas in China. If you are abroad and don’t have access to the Chinese app store, you won’t be able to get it. More detailed guides explain the 29 areas where you can get the Digital Yuan.

If you try to buy Digital Yuan on an iPhone, you will be denied if your phone location isn’t in one of the pilot areas. However, if you are in one of these areas, there is now a guide for foreigners to onboard the system. Alipay and WeChat Pay also allow registration with international credit cards. This is part of China’s broader effort to attract international visitors, including offering visa-free access for certain countries in 2024.

Is the Digital Yuan an Alternative to Bitcoin?

The Digital Yuan is China’s answer to Bitcoin, a cryptocurrency that the Chinese state has tried to ban. Research for the Digital Yuan started around 2014, with the Digital Currency Research Initiative beginning in 2016. However, there are significant differences between the Digital Yuan and Bitcoin.

Privacy Tiers: Even though there are privacy tiers, the Central Bank requires personal identifiers to use the system. Even at the lowest tier, you need to provide a phone number, which in China, is tied to your real ID.
Vendor Selection: The central bank chooses all vendors, and the code is closed-source and cannot be verified online. Initially, the bank experimented with decentralized ledger technology but now uses a centralized ledger. This has cybersecurity implications, as the software is maintained by the government, with access to user data. Unlike Bitcoin, there is no way to verify the code publicly or develop additional features.
Transaction Data: The central bank selectively releases transaction data, so the network’s status is unclear. From available data, many wallets don’t transact often, and we have to rely on statistics from the People’s Bank of China.
Price Determination: Bitcoin’s price is determined by the market, while the Yuan is semi-pegged to the US dollar. Some prefer this to avoid volatility, but it may mean missing out on long-term gains that exceed the risk.

Current Status of the Digital Yuan in 2024

The Digital Yuan has been rolled out in 29 cities. Despite the “pilot” language used by the Chinese state, it’s clear that the Digital Yuan is set for full-scale implementation. It is part of how China’s central bank tracks the monetary supply. Although the pilot included expiring funds, adoption is slow. Public stats confirm that the Digital Yuan isn’t very popular. Anecdotal evidence, like reports from the South China Morning Post, indicates that most people prefer Alipay and WeChat Pay.

While the payment volume has grown, reaching $250 billion in the first half of 2023, it still represents just 0.16% of all Chinese monetary volume. This is an uptrend from the $14 billion reported in the first two years of the e-CNY’s start.

Hong Kong has piloted e-CNY acceptance, with guides and favorable mentions in state media, showing China’s intent to fully roll out the e-CNY.

Privacy Implications of the Digital Yuan

The privacy tiers of the Digital Yuan mean that the central bank controls personal identifiers and knows each account balance. The Digital Yuan offers an offline version with hardware smart cards that can transmit value over NFC, but these cards can only hold small amounts.

The Central Bank likely knows each balance and wallet account, along with personal information needed to create those accounts. It can also expire funds, as seen with the airdrops used to trial the e-CNY.

Goals of the Chinese State with the Digital Yuan

The Digital Yuan is not intended to replace Alipay and WeChat Pay. However, China has had issues with the tech sector, detaining founders, and preventing IPOs. The banking system, which works closely with regulators, provides a stable backdrop for the Chinese financial system. China’s main goal with the e-CNY is to create another domestic payment option.

The Digital Yuan was introduced to prevent monetary substitution from Libra and cryptocurrencies like Bitcoin. A paper from the People’s Bank of China cites cryptocurrencies as tools that “pose potential risks to financial security and social stability.”

China is also piloting Project M-Bridge with the BIS Innovation Hub, which involves wholesale CBDCs interfacing with other central banks. The project includes the UAE and Saudi Arabia’s central banks and aims to internationalize the Yuan. China’s strategy is to export digital cash standards to other governments and improve cross-border payments for critical commodities.

By understanding the e-CNY, its uses, and its implications, we can see how China is shaping the future of digital payments. The Digital Yuan represents a significant move towards a cashless society, with both benefits and challenges. Whether it becomes a popular alternative to existing payment systems remains to be seen, but it certainly marks a significant development in the global financial landscape.

Stablecoins

Tether Freezes $29.62M in Tron Address Linked to Cambodian Ruling Family

by dave July 16, 2024

written by dave 5 minutes read

Tether Freezes $29.62 Million in Tron Address Linked to Cambodian Ruling Family

Introduction

Stablecoin issuer Tether has frozen $29,620,000 in USDT held in a Tron network address. This address is linked to an online bazaar used by scam operators in Southeast Asia, including the Cambodian ruling Hun family.

The Frozen Funds

On July 13, 2024, Tether froze the TRON address TNVaKW, holding over $29.62 million in USDT. Blockchain data analysis firm Bitrace confirmed that this wallet is tied to Huione Guarantee, an online marketplace owned by a conglomerate connected to Cambodia’s ruling family. Bitrace’s analysis showed that the address was activated on July 9, 2024.

Who is Huione Guarantee?

Huione Guarantee is an online marketplace owned by a Cambodian conglomerate. This group is linked to the ruling Hun family of Cambodia. According to Bitrace, Huione Guarantee has facilitated at least $11 billion in transactions. Many of these transactions are linked to scams like pig butchering, sextortion, and other cybercrimes. They mainly use USDT for payments, making it easier to move money quickly and anonymously.

Why Tether Froze the Address

Bitrace suggests that Tether froze the TRON address because of its ties to illicit activities. The address was likely assisting in laundering funds for crimes such as fraud and crypto theft. By freezing the address, Tether aims to prevent further criminal activities.

The Role of Blockchain Analytics Firms

Blockchain analytics firms like Bitrace and Elliptic play a crucial role in identifying and tracking illicit activities on the blockchain. These firms analyze blockchain data to uncover patterns and connections between addresses and transactions. In this case, Bitrace and Elliptic both identified the suspicious activities linked to Huione Guarantee and its related addresses.

The Impact of the Freeze

Despite Tether’s action, Huione Guarantee continues its operations. Bitrace reports that Huione has activated a new business address, TQuFSv, and transferred 114,800 USDC from the frozen TNVaKW address. Additionally, their old business address, TL8TBp, is still operational. This means that Huione Guarantee can still receive and move funds through these other addresses.

Cybercrime and Crypto Scams

Huione Guarantee has been linked to various cybercrimes and crypto scams. These include pig butchering scams, sextortion scams, and other fraudulent activities. In pig butchering scams, victims are tricked into investing in fake schemes, while sextortion scams involve threatening individuals with the release of private information unless they pay a ransom. These scams often use cryptocurrencies like USDT to facilitate transactions, making it difficult for authorities to trace the funds.

The Importance of Freezing Illicit Addresses

Freezing addresses involved in illicit activities is essential to prevent further crimes. By freezing the TRON address linked to Huione Guarantee, Tether has made it more challenging for the group to continue its fraudulent activities. This action also sends a message to other scam operators that their activities can be tracked and stopped.

Tether’s Role in the Crypto Ecosystem

As a stablecoin issuer, Tether plays a significant role in the crypto ecosystem. USDT is widely used for various transactions due to its stability and liquidity. However, this also makes it attractive to criminals who want to move large sums of money quickly and anonymously. Tether’s actions to freeze illicit addresses help maintain trust in the stability and security of its stablecoin.

The Future of Blockchain Security

The collaboration between Tether, blockchain analytics firms, and other stakeholders is crucial for enhancing blockchain security. By working together, they can identify and stop illicit activities more effectively. As technology evolves, so will the methods used by criminals. Therefore, continuous efforts and advancements in blockchain analytics are necessary to stay ahead of cybercriminals.

Conclusion

Tether’s decision to freeze $29.62 million in USDT linked to a Tron address associated with the Cambodian ruling family highlights the ongoing battle against crypto-related fraud and cybercrime. With the help of blockchain analytics firms like Bitrace and Elliptic, illicit activities can be identified and stopped, ensuring a safer and more trustworthy crypto ecosystem. Despite the challenges, actions like these are essential in maintaining the integrity of the crypto market and protecting users from scams and frauds.

Ethereum

Ethereum ETFs Set to Launch July 23: Major Boost for Crypto Market

by dave July 16, 2024

written by dave 4 minutes read

Ethereum ETFs Launching July 23, Bloomberg Analyst Reports

Introduction

Exciting news for crypto enthusiasts and investors: Ethereum ETFs are set to launch on July 23, as reported by a Bloomberg analyst. This event is expected to coincide with the Bitcoin Conference in Nashville, which could draw even more attention to the crypto market.

Key Details of the Launch

Ethereum ETFs will begin trading on July 23, according to Eric Balchunas, a Bloomberg ETF analyst. He shared that the SEC is asking issuers to submit their final S-1 forms by July 17. This means the launch is very close and should happen without any last-minute issues.

SEC and S-1 Forms

The SEC requires S-1 forms as an initial registration before any security can be publicly traded. The Ethereum ETF issuers filed these forms on July 8, but most left out the fees. This move is likely to check how competitive the funds’ fees are, especially compared to big names like BlackRock.

Impact of the Bitcoin Conference

The timing of the Ethereum ETFs’ launch is strategic, as it will occur during the Bitcoin Conference in Nashville. This overlap could boost market attention significantly. Ethereum’s debut as an exchange-traded fund is a big step for crypto adoption by mainstream investors. It shows that Ethereum is becoming a solid asset for institutional investors.

Market Predictions and Inflows

According to Matt Hougan, the Chief Investment Officer at Bitwise, Ethereum ETFs could see $15 billion in inflows by the end of 2025. This prediction was shared in a report by Crypto Briefing. Hougan believes that these investment instruments will attract significant capital from both institutional and retail investors.

Comparison with Bitcoin ETPs

Currently, US investors hold around $56 billion in Bitcoin ETPs, and Bitwise expects this number to rise above $100 billion by 2025. Ethereum’s market cap, which stands at $432 billion, suggests it has a huge potential for asset inflow, aiming to match Bitcoin ETPs at around $35 billion.

Challenges and Expectations

Despite the optimism, there are some challenges. Ethereum ETPs are slightly underperforming relative to their market cap weight. They are currently gathering 22-23% of total assets under management, whereas they should be at around 26%. Hougan has adjusted his expectations accordingly, predicting $18 billion instead of $25 billion in assets, excluding those from Grayscale’s trust.

Solana ETFs and Future Prospects

The launch of Ethereum ETFs also opens doors for other crypto ETFs. VanEck and 21Shares have already filed for the first spot Solana ETFs in the US. This development shows the growing interest and potential for other cryptocurrencies to follow in Ethereum’s footsteps.

Ethereum Price Surge

Ahead of the key ETF decision, Ethereum’s price surged by 5%, reaching over $3,400, according to data from TradingView. This price rally indicates strong market anticipation and confidence in the upcoming ETFs.

Carry Trade Strategy

Another factor influencing the market is the carry trade strategy. This involves buying spot Bitcoin ETPs and selling Bitcoin futures contracts against that position. Traders profit from the premium between futures and spot prices. This strategy might also impact Ethereum ETFs once they launch.

Conclusion

The launch of Ethereum ETFs on July 23 is a significant event for the crypto market. It aligns with the Bitcoin Conference, potentially boosting market attention. With predictions of substantial inflows and growing interest from institutional investors, Ethereum is set to solidify its position as a key asset in the crypto world. This move not only benefits Ethereum but also paves the way for other cryptocurrencies to gain mainstream acceptance through similar investment products.

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