Connect with us

News

BSP Closely Monitors Local Axie Infinity SLP Merchants System

Published

on

Share some Bitpinas love:

By Shiela Bertillo

The Bangko Sentral ng Pilipinas (BSP) is closely monitoring Axie Infinity in regards to how players and merchants are using and exchanging the cryptocurrency Smooth Love Potion (SLP) as a form of payment and the extent of the number of merchants accepting it as mode of payment. In a statement, the central bank is looking into Axie Infinity’s possible classification as an operator of payment system (OPS), and if it is, Axie Infinity or Sky Mavis, the developers of the game, should register as one.

Is Axie Infinity a VASP?

According to the central bank, Axie Infinity owned by Vietnam-based Sky Mavis, “is not considered as VASP” or virtual asset service provider.

The BSP Circular No. 1108 or the Guidelines for VASPs issued in January this year, recognizes the evolving virtual asset systems or markets, and the risks associated with it because of its underlying features — anonymity, volatility of prices and “velocity” of transactions. BSP considers VASPs as money service businesses, when fiat money is converted into virtual assets, and are still transferable and be used for payment. (Read more: Cryptocurrency Tax Philippines | Play-to-Earn | Axie Infinity Tax 101 by PDAX and Taxumo)

Consequently, the BSP said Axie Infinity is not a VASP because the scope of BSP Circular No. 1108 “excludes digital units of exchange used as in-game tokens, such as the implementation of SLP within Axie Infinity.” (Read More: Are NFTs and Gaming Tokens Subject to Same Rules as All of Crypto in the Philippines?)

“However, we’re also actively monitoring the level of merchant acceptance of SLP as a form of payment for goods/services, which may fall within the activities of an OPS,” BSP stated. (Editor’s emphasis: Note that the BSP is pertaining to Sky Mavis and not to the merchants.)

Axie’s SLP is an uncapped token earned as rewards by Axie Infinity players through battle or adventure mode. The token is also needed to breed Axies, the game’s Non-fungible Token (NFT), and a major avenue to earn actual money from playing the game. The SLP can be exchanged to fiat through local exchanges and through peer-to-peer. (Read More: How to Trade SLP, AXS, ETH to PHP Instantly Through BloomX)

An OPS are entities that provide cash-in service, bills payment service, and other conveniences such as a payment gateway, platform provider, payment facilitator, and merchant acquirer that allows merchants to accept payments, in cash or digital form.

According to Manila Bulletin’s report on their email interview with the BSP, the central bank said that once it concluded that the players of Axie Infinity are using and exchanging SLP as a form of payment, it will require Vietnam-based Sky Mavis, it’s owner, or its local partner, to register with the BSP as an OPS under the Circular No. 1049 which provides the rules for the registration of OPS. Otherwise, the game should stop operating in the country.

Last month, the BSP suspended Lyka, a popular social media platform, as well as its local partner Digital Spring, on the grounds of unauthorized operation as a payment system. (Read More: BSP Orders Lyka to Stop Operating, Invites Registration)

Lyka allows its users to purchase, exchange, and use Gift cards in Electronic Mode or GEMs as payment for goods and services.

However, in an earlier opinion article, Luis Buenaventura II, crypto entrepreneur, author, and NFT Artist, stated that Axie Infinity may not be  an OPS. He explained that because Sky Mavis does not actively solicit and instead focuses on encouraging people to play the game, then they are not an OPS. “Sky Mavis only wants people to play its game, and it’s the gamers themselves that are soliciting other gamers. This is a critical distinction that puts it outside of the BSP jurisdiction, because the game platform itself doesn’t engage in the conversion of peso to crypto, and only accepts payments within its own ecosystem.”

This article is published on BitPinas: BSP Closely Monitors Local Axie Infinity SLP Merchants System

Share some Bitpinas love:

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://bitpinas.com/regulation/bsp-monitors-local-axie-infinity-slp-merchants/

Blockchain

Bitcoin, Ethereum will draw their market strength from this key aspect

Published

on

Bitcoin and Ethereum are currently surviving a bearish scare, with both assets just about holding a position above their immediate supports. For Bitcoin, the $41,000-level is establishing a strong bounceback range while Ethereum has managed to remain above $3000.

On the contrary, some altcoins have recorded strong recoveries, with Solana, Bitcoin Cash, and Uniswap hiking by more than 10% in one 24-hour window.

Now, these altcoins seemed to have the relative edge at press time. However, there are a couple of key metrics which may allow us to evaluate the actual strength of Bitcoin, Ethereum as the market goes forward.

How much importance should be given to utility?

Source: Sanbase

Over the past few years, market stability has been dependent on different aspects. During the bullish rally of 2017, investor sentiment was key and when major traders started to become bearish, the digital assets collapsed.

Then, it was constructive institutional inflows at the beginning of 2019. At the time, it was suggested that institutions can allow tokens such as BTC, ETH to hold higher price positions. The price fell in 2020, irrespective of rising interest.

However, one key idea missed by most speculators might be the utility side of things, which is presently one of the most important functionality. Gone are the days when astute marketing allowed assets such as TRON to climb into the top-10.

Now, according to Santiment, Bitcoin has hit a two-month high in terms of circulation. What’s more, if the chart is closely observed, the average BTC transferred has risen consistently over the month of September.

Source: Sanbase

Similarly, Ethereum hit a similar feat but its 1-day circulation index was at a 3-month high, indicative of high token utility and movement.

Ethereum’s price has dropped sharply over the course of the past few weeks, but circulation has remained high.

Bitcoin, Ethereum spaces have evolved

Now, to be fair, it is important to account for volatility and the fact the circulation isn’t as high as it was during May 2021. However, maintaining a development and transaction-intensive ecosystem, one which allows the price to be built on strong foundations, is eventually advantageous.

Now, with respect to the assets that have grown over the past few days, besides BCH, both Solana and Uniswap are extremely utilized tokens. While one is the native token of a major DEX, another asset is currently responsible for bringing better L2 solutions.

Likewise, for Bitcoin and Ethereum, higher utility and circulation should keep the asset relevant, and progressively exhibit significant recoveries over Q4 of 2021.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/bitcoin-ethereum-will-draw-their-market-strength-from-this-key-aspect

Continue Reading

Blockchain

Bitcoin has never been better, yes, but here’s why perspective is key

Published

on

Bitcoin is a volatile asset. We know that, but people who fear losing their investments always scream murder at the slightest fluctuation. While those exist, there are also those who keep calm and stay invested. And for them, their patience is paying off.

On a macro scale, this is the time for Bitcoin HODLers.

Bitcoin at its best…

… for long-term investors.

This week, the total supply existing on exchanges fell to 2.45 million BTC, levels last witnessed back in August 2018. This is a result of the consistent accumulation the market has been seeing since March 2020.

This macro-accumulation held its course over the 2020 and 2021 rallies and reached where it is today.

Bitcoin supply on exchanges | Sources: Glassnode – AMBCrypto

This consistent behavior of buying Bitcoin has led to outflows dominating exchanges. Periods of inflows were observed around July 2020’s local top and again during the May crash, but went back to indicate buying.

As a result, on average, 80k to 100k BTC have been bought out between July and September. 

Bitcoin exchange net position | Source: Glassnode

This kind of pattern can be expected only from a particular set of investors who remain mostly undeterred by the micro-fluctuations. Long-term holders have been continuously increasing their holdings.

And presently, their holdings have hit an all-time high of 80.5% of all circulating supply. Now, some sell-offs were seen around April as a result of profit-taking. This fueled a fall to the low peak of 67.7% this year.

However, it also underlined the bullishness of LTH as back in 2018, the same fell to 58% and around 54 – 56% back in 2014. 

Bitcoin LTH supply | Source: Glassnode

Why the bullishness though?

The bullishness that we observed from long-term holders this year can be attributed to 2 phenomena –

  1. Bitcoin’s new ATH on the charts
  2. Bitcoin’s overall increased adoption

A proof of the hike in adoption comes from the growth observed beyond Bitcoin itself, particularly, in Lightning Network’s stats. El Salvador’s adoption of Bitcoin might have served as a catalyst but Lightning Network has seen greater participation since way before.

The network capacity has increased by 170% since January this year, up by 22% this month alone, touching 2,904 BTC.

Bitcoin LN capacity | Source: Glassnode

This macro bullishness will probably continue as Bitcoin’s adoption is growing with every passing day. People remain in anticipation of the king coin going back to its ATH levels.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/bitcoin-has-never-been-better-yes-but-heres-why-perspective-is-key

Continue Reading

Blockchain

‘Bitcoin maxis’ like Solana, but is there sound logic to that

Published

on

Recent changes in cryptocurrency market dynamics have fueled the popularity of altcoins like Solana [SOL]. It recently became one of the most trending blockchain platforms around on the back of its surging price.

The cryptocurrency, in fact, had a 1-year ROI of over 4,200%, despite dropping by 34% since its peak in early September. Despite the latest hiccup in value, however, market observers believe the project has managed “winning over a significant number of Bitcoin Maxis or near-maxis.”

Ikigai Funds’ Travis Kling offered this observation on Twitter when he said,

“After talking to a bunch of folks over the last couple months, it’s pretty clear that SOL is successfully winning over a significant number of BTC Maxis or near-maxis, which have previously owned zero ETH or very little ETH.”

While the crypto-space is competitive, the tech-twist to the age-old saying – “competition of your competition is your ally” also holds true. Solana is not competing with Bitcoin. Instead, it is competing with Ethereum’s position in decentralized finance, NFTs, and smart contract offerings. Given the fact that transacting on Ethereum is still a pain for some users, Solana’s cheap and fast transactions provide a better alternative to many.

Solana’s DeFi projects recently crossed $3 billion, despite Ethereum hosting the maximum number of DeFi and NFT projects. While Bitcoin “maxis” are also opting-in for smart contracts, they prefer SOL over ETH, according to Kling.

Why? According to the exec,

“I think maxis look at ETH vs SOL and think –

Well as long as its not going to be all that decentralized, might as well have a smart contract platform that can actually handle enough throughput with cheap enough fees where it can really scale, instead getting choked up like ETH.”

However, not everyone agrees with Kling’s opinions. Many believe the decentralization narrative to be wrongly used by Kling, with another Twitter user @mikemcg0 noting that Ethereum is “more decentralized than BTC.” Anyone can run an Ethereum validator,” he said, “but only a select few oligopolies can mine BTC.”

Even so, Bitcoin mining has spread out even more after the recent China crackdown. Although the process is extensive in terms of effort, time, and money, according to another user, “anyone can” mine BTC “if they have the entrepreneurial mindset.”

Now, the latest outage faced by Solana did raise questions about the level of centralization. However, that has not really discouraged those who want to indulge in DeFi, NFTs, and smart contracts. As Solana forges new contracts with Hacken Foundation and Gate.io, others institutions like Osprey Funds and Grayscale are in a race to include Solana in their respective bouquet of products.

In fact, Osprey Funds has already registered Osprey Solana Trust with the SEC.

‘Ethereum killer’ or not, Solana is en route to gaining more interest from the booming crypto-market. Even turning so-called BTC maxis in the process.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/bitcoin-maxis-like-solana-but-is-there-sound-logic-to-that

Continue Reading
News5 days ago

Axie Infinity: Pagbabago ng SLP at AXS Breeding Requirements

Uncategorized5 days ago

How to identify items in Diablo 2: Resurrected

Blockchain4 days ago

Most expensive NFTs ever sold and the Non-Fungible Token’s expansion of expense.

Blockchain5 days ago

QuadrigaCX Saga to Be Covered By Netflix Documentary

Uncategorized4 days ago

Hashrate beats the S&P 500 or A word on the benefits of hashrate rental.

Uncategorized5 days ago

Why is NFT art valuable? Understand why they are worth millions

Blockchain3 days ago

The Three Kingdoms: Bringing a New Era of Play-to-Earn Games to The Blockchain Industry

Uncategorized3 days ago

NBA 2K22 City Spawn Locations: How to Unlock

Blockchain2 days ago

BOOM Esports and NoPing e-sports claim the top spots in BTS Pro Series Season 8 SEA and Americas

Blockchain5 days ago

Cardano Launches dAppStore for Certified DeFi Apps

Blockchain4 days ago

Mars4 NFT Land Tokenomics

Blockchain5 days ago

Netflix Set to Premier Documentary About QuadrigaCX CEO in 2022

Blockchain5 days ago

With BlockFi, Celsius under the radar now, what next for crypto-regulations

News4 days ago

The World’s Top 10 Companies Could Be Interested in Cryptocurrencies

Blockchain5 days ago

Bitcoin’s LN packs a punch, but is it truly far from having security concerns 

Uncategorized3 days ago

Best Stats for the Barbarian in Diablo II: Resurrected

Uncategorized4 days ago

FTX Relocates From Hong Kong to Bitcoin-Friendly Bahamas

Blockchain4 days ago

Top 10 NFT Sales Of This Week: September 19-25

Uncategorized5 days ago

The Andy Milonakis NFT Show, EP. 5 – Sponsorships, Degen’s, And Cheeth

Blockchain5 days ago

Bitcoin’s Recovery Picks Up Steam Following Twitter’s Launch Of Crypto Tipping Globally

Trending