Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
There was no shortage of excitement in the run-up to Wednesday’s direct listing on the Nasdaq, with Bitcoin rallying to $64,863.10 before the open. COIN’s reference price was set at just $250, with all 1,700 staff pocketing 100 shares each.
In true crypto form, it was a volatile debut. Coinbase’s stock quickly rose to $430 before falling sharply within the first few minutes of trading, closing its inaugural session at a still-impressive $328. It wrapped up Friday at $342, with a market cap of $67.2 billion.
COIN’s arrival on Wall Street is significant because of how it gives investors indirect exposure to cryptocurrencies. Ark Invest is especially bullish on the stock, snapping up more than 1 million shares that will be shared across three exchange-traded funds.
Overall, the stock’s performance has been hailed as positive so far, especially compared with how IPOs have performed in the past. Will this embolden other exchanges to follow suit?
As you’d expect, the exchange enjoyed much fanfare on the big day and even embedded the title of a New York Times article referencing Joe Biden’s stimulus package into the Bitcoin blockchain. Nonetheless, Coinbase CEO Brian Armstrong was keen to address some of the concerns raised by analysts.
Some fear that the mooted $100-billion valuation ahead of the listing was too high amid fears crypto exchanges will soon end up in bitter competition that will drive down fees — and affect overall profitability. Given how this accounted for 96% of Coinbase’s revenue in 2020, it’s kind of a big deal.
On CNBC, Armstrong sought to tackle this head on. While he said that fee reductions are possible in the long term, the executive doesn’t believe it’s an imminent threat. Plus, by the time it is, he predicts “maybe 50% or more” of revenues will come from alternative streams such as debit cards and crypto custody.
Bitcoin cooled once COIN started trading. And while Ether has comfortably outperformed the world’s biggest cryptocurrency this week (securing a new all-time high of $2,547.56 on Friday), altcoins have been stealing the show.
If Dogecoin is a joke, it’s certainly wiped the smile off cynics’ faces. DOGE was trading at just $0.07 on Monday but began a frenzied 514% climb to highs of $0.43 by Friday. That’s a surge of 8,735% since the start of the year — and there’s little doubt it will have turned a number of enthusiasts into overnight millionaires.
The frenzy saw DOGE leapfrog Bitcoin Cash and Litecoin in the rankings, with a market cap that’s twice as big as Deutsche Bank’s.
Even professional traders have been caught by surprise. There’s one thing we know for certain, though: Bold predictions of a $1 DOGE one day are now looking less outlandish.
With the market cap of altcoins surpassing $1 trillion, one clear theme has emerged this week: Older cryptocurrencies are enjoying something of a renaissance. And it isn’t just DOGE that’s mooning… XRP is racing higher, too.
XRP hit multi-year highs of $1.96 this week. Although that’s some way off the all-time record of $3.84 set in January 2018, this still reflects year-to-date gains of 790%. The latest spike caused a whopping $420 million of liquidations on derivatives exchanges.
Momentum for XRP has been building thanks to a series of legal victories for Ripple in its battle with the Securities and Exchange Commission, along with rumors that the token may be relisted on multiple exchanges.
Elsewhere, two forked projects that once sought to challenge Bitcoin and Ethereum for their seats at the top — Bitcoin Cash and Ethereum Classic — also racked up triple-digit gains. Will other retro cryptocurrencies be next?
Enigmatic CNBC host Jim Cramer risked attracting the ire of crypto enthusiasts this week — for two reasons.
Not only did he refer to Bitcoin as “phoney money,” something that causes the red mist to descend for many maximalists, but he also revealed he has sold 50% of his BTC portfolio to pay off a mortgage.
Cramer confirmed he had bought a lot of Bitcoin at $12,000 — meaning it had risen fivefold by the time he offloaded half of it. The anchor subsequently admitted: “I know people are going to be angry with me.”
Some Twitter users likened the one-time crypto critic’s move to the infamous pizza purchase for 10,000 BTC. But others have praised Cramer’s move and argued that it’s important to take profits off the table, writing: “Selling only 50% after a 5x gain doesn’t sound toooo silly.”
Winners and Losers
At the end of the week, Bitcoin is at $62,272.53, Ether at $2,466.78 and XRP at $1.69. The total market cap is at $2,274,625,979,472.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Dogecoin, Ethereum Classic and Siacoin. The top three altcoin losers of the week are KuCoin Token, Klaytn and Celsius.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most Memorable Quotations
“This is a really important day for the whole crypto world. This is saying ‘this is an asset class, and it’s an asset class that’s here to stay.’”
Mike Novogratz, Galaxy Digital founder and CEO
“We haven’t seen any margin compression yet, and I actually wouldn’t expect to see it in the short and the midterm. Longer term, yes I do think there could be fee compression just like in every other asset class out there.”
Brian Armstrong, Coinbase CEO
“PayPal really wants to use cryptocurrency as a funding source for everyday transactions. The endgame, though, is a more noble vision of this inclusive economy, and things will be done much differently than today.”
Dan Schulman, PayPal CEO
“Bitcoin is looking strong at RSI 92. Still not above RSI 95 like 2017, 2013 and 2011 bull markets.”
“You gotta buy Coinbase when that deal comes. Even though it’s a $100 billion deal, this has become common knowledge that there are many companies that are going to switch. MicroStrategy has always been the leader, so others would want to follow.”
Jim Cramer, CNBC host
“Coinbase is the watershed moment in terms of legitimizing some valuations you see in crypto.”
Ben Lilly, Jarvis Labs co-founder
“Coinbase IPO May Boost #Bitcoin to $70,000, Like #Tesla to $60,000 — The lowest 30-day volatility since October indicates Bitcoin is ripe to exit its cage and bull-market continuation is favored for the next $10,000 move.”
Mike McGlone, Bloomberg Intelligence
“Truth be told I seriously think we’ve entered the final leg of this $btc bull market. To be clear, final leg could be 2-3 weeks or even more. Price could reach 200k or even more who knows. Just don’t make irrational life decisions based on unrealized PnL.”
Mohit Sorout, Bitazu Capital founding partner
“An ETF would be a bigger deal, obviously, than Coinbase getting listed.”
Eric Crown, entrepreneur
Prediction of the Week
Back to Ether now, which has been in the ascendancy this week following an irreversible hard fork that aims to deliver some reforms to transaction fees. On-chain data suggests that ETH’s price could double between now and the end of May — but some analysts are going even further.
In an exclusive interview with Cointelegraph, Scott Melker said gaining exposure to ETH was “like investing in the internet in the early 1990s.”
Even though his price target for $10,000 by the end of this year may seem outlandish, he added: “I don’t see why that’s crazy. It’s basically just under a 5x from here. […] Bitcoin did almost three times that last year.”
FUD of the Week
This week, there seemed to be a major breakthrough when r/Wallstreetbets announced that it would allow Bitcoin, Ether and Dogecoin to be discussed in a daily thread on Reddit.
The new policy lasted a day, and the reason why the ban has been reimposed has raised eyebrows.
Bloomberg had claimed that r/Wallstreetbets was “bowing” to digital assets by opening up the discussion beyond stocks, something that really pissed off one moderator.
A new post read: “Due to the article that was written [by] Bloomberg who somehow felt that ‘WallStreetBets Bows to Crypto.’ Crypto discussion is banned indefinitely. I’ve read a lot of dumb articles written about wsb. This one takes the cake. P.S. Like always. Please be respectful.”
Despite the plea for respect, many Reddit users weren’t pleased with the dramatic reversal.
A new ban in Turkey will prohibit crypto holders from using their digital assets for payments in addition to preventing payments providers from providing fiat onramps for crypto exchanges.
The ban will come into effect on April 30, rendering any crypto payments solutions and partnerships illegal.
According to Turkey’s central bank, “any direct or indirect usage of crypto assets in payment services and electronic money issuance” will be forbidden.
Banks are excluded from the regulation, which means users can still deposit Turkish lira on crypto exchanges using wire transfers from their bank accounts.
The European Central Bank will put itself in jeopardy if it waits around to launch a digital euro for too long, according to a ConsenSys executive.
With a central bank digital currency set to be years away, Monica Singer said such projects are a chance for central banks to repair their mistakes and fix a broken financial system.
She warned that if global banks miss this opportunity, alternatives from private tech giants like Facebook could make fiat currencies obsolete.
Singer added: “If the central bank in Europe is gonna wait until 2028, by then there won’t be a central bank. Because who’s gonna use the euro in its current form? There are gonna be so many choices.”
Best Cointelegraph Features
NFTs are not an immediate solution to all IP rights issues, but eventually, they can give creators more power than they ever had.
Ethereum is the dominant force in DeFi, and layer-two solutions are a promising alternative, but the layer-one blockchains are not done just yet.
The impact of BTC mining on the environment has turned into a debate — here’s what academics think… and if “green Bitcoin” is possible.
TrustSwap Launchpad hosts token offering for RegTech platform Sekuritance
Sekuritance, a CeFi/DeFi ecosystem delivering compliance, regulatory, transaction monitoring, and identity management solutions, is collaborating with TrustSwap, a full-service blockchain asset platform, to support the execution of its SKRT token offering starting on May 8th, 2021 at 9:00 AM PST.
The cryptocurrency economy has taken the world by storm and it is here to stay. Just like traditional finance, the risk of fraud, misuse, abuse also exists in the crypto space. Due to the decentralized and semi-anonymous nature of blockchain, these factors can be compounded resulting in hesitation of adoption by financial regulators and banking institutions. While there may not yet be a bulletproof solution, there are ways to mitigate risk and potential losses, and blacklisting.
Most people who are active in the DeFi space are also using some form of traditional banking service (credit cards, bank accounts, mortgage/insurance payments, retail commerce, etc.). When crypto proceeds start moving between these realms, the banks and regulators want to know where the money came from, whether it has been declared or taxed effectively, whether it has passed through unauthorized darknet services, and so many more questions needing specific answers. In the event that any of the above questions result negatively, the traditional finance ecosystem is most likely to reject the onboarding or the use of those proceeds to pass through their networks.
The Sekuritance RegTech Suite addresses this by making available specific services and modules to address the various regulatory and compliance requirements.
Sekuritance recognizes that there are many jurisdictional challenges in the RegTech niche so, rather than competing with other software-as-a-service providers in the RegTech industry, they are invited to make their API offerings available also through the Sekuritance Partner Marketplace so that merchants and individuals around the world can enjoy an All-In-One RegTech Gateway.
The Sekuritance ecosystem is comprised of 8 main products:
1. Sekur.Vault (Data Tokenisation Vault)
Sekur.Vault is a unique omni-vault, audited to the highest level of industry security standards and tweaked to not only store what is commonly referred to as “Rubbish In, Rubbish Out” but to add value to the output upon retrieval by cross-consumption of the other Sekuritance modules such as BIN checks, KYC checks, AML checks and more.
The platform’s robust and simple to use API set and dedicated user interface allows the secure storage of Card Data (Debit, Credit, Alternate); Crypto Wallet Private & Public Keys; Sensitive Personal Data; Confidential Corporate Data; KYC, KYB Related Data; Transaction Data for BI and AI and more.
2. Sekur.MFA (Multi-Factor Authentication)
This omni-auth module caters primarily to 3D Secure services for the traditional card payment industry. Development has also started for an on-chain decentralized identity management and claiming process. Our own unique acquirer-agnostic 3D Solution allows merchants to validate and process 3D checks (both versions 1 and 2) before taking payment.
3. Sekur.Connect (RegTech Marketplace)
The Sekuritance RegTech SekurSuite platform is a powerful toolkit on its own but trying to stay ahead of all the global jurisdictions, updates to regulations and policies, AML guidelines, etc. is a mammoth task. So, rather than try to outsmart all the other valuable and recognized players in the industry, Sekuritance is creating a RegTech marketplace where software-as-a-service providers and developers can showcase their solutions and participate in the SKRT token economy.
Sekur.Alert functionality connects to specialized datasets to help keep our customers safe and help them ensure that they are doing business with wallets and identities of good standing. To help grow this dataset, the crypto community is invited to report any fraudulent activity to Sekuritance so that the whole community can be better protected. Every new unique and verified report gets to participate in the SKRT Loyalty and Reward program.
KYC, KYB, KYT, AML, Sanction Screening, and other rule engine applications are all available on the Sekuritance platform. Businesses and institutions can use these tools to identify who customers are and their eligibility for specific product offerings. They can use the Sekuritance RegTech platform to get transaction and IP “Risk Scores” and sub-scores as well as other data in order to prevent fraud and abuse.
The anonymity of cryptocurrencies is a myth. Very few mixing services can outwit modern de-anonymization technologies for Bitcoin tracking and other cryptocurrency alternatives. No one has a clear understanding of how fast the RegTech niche will be evolving but one thing beyond question — regulation of the cryptocurrency space will tighten and all will have to accept the new rules and play by them.
Sekuritance strives to become one of the leading vendors of RegTech solutions for the crypto and fiat industry and believes that the openness of financial data on blockchains will be a driver for regulatory institutions to reinforce control. With a powerful blockchain analytics toolset like Sekuritance, regulatory bodies could end money laundering and make financial reporting easy and transparent.
The Sekuritance Sekur.Certify Blockchain Wallet Verification service allows for a user to claim controlling power certification on a particular wallet once a number of actions would have been performed, KYC & AML checks confirmed and crypto investigation on the wallet completed.
Details of Sekuritance Token Offering
The Sekuritance token offering will be executed by leveraging the TrustSwap Launchpad. Upon the successful conclusion of the offering, a Uniswap pool will be created on May 13th, 2021, and trading can commence for use of SKRT in the Sekuritance network. Alongside the offering, Sekuritance will be showcasing a preview of its RegTech Suite and Partner Platform.
TrustSwap technology utilizes secure peer-to-peer transactions via TrustSwap SmartLaunch; which ensures that Sekuritance and its community can transact securely and without fear of participants or team members negatively impacting the markets following the public offering. TrustSwap’s time-based SmartLock ensures a methodical distribution to mitigate the risk of unauthorized token transfers.
Sekuritance will use TrustSwap SmartLocks for:
- Team token vesting
- Token holder vesting
- Liquidity locks
For more information about Sekuritance visit https://www.sekuritance.com.
Shanghai Man: VeChain on TV, DOGE flips BTC volume, Hotbit hack and more …
This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.
Will DOGEmania ever stop?
Dogecoin has officially flipped Bitcoin in a few categories here in China, with DOGE trading volume on leading Chinese exchange Huobi surpassing that of leading assets ETH and BTC. On May 6th, according to CoinGecko, DOGE volume made up more than 15% of total exchange volume, whereas BTC and ETH were around 8% each. Searches for ‘Dogecoin’ on WeChat surpassed searches for Bitcoin, with 2.3 million versus 1.7 million on May 5th. Dogecoin has become increasingly appealing to the Chinese retail community since earlier this year as many are attracted to the virality and get-rich-quick potential of the colorful DOGE community.
Hacking attempt fails, but causes a major ruckus
Centralized exchange Hotbit was the victim of a hacking attempt on April 30th. The good news was that assets appear to be safe on the platform. The bad news was that user data was compromised, leading to a corrupted database. Trading, deposits and withdrawals have all been paused while the exchange attempts to restore normality. The Chinese exchange has been communicating actively via Twitter, with the interrupted service lasting potentially another week. Hotbit is well known for listing a diverse range of assets, making it a popular spot among more risk averse investors.
Shenzhen-based HOO launches Smart Chain contender
Hoo.com became yet another exchange to launch an Ethereum Virtual Machine, or EVM-based, smart chain, attempting to bridge their CeFi users into the DeFi space. The chain, currently in testnet, boasts low fees of just 0.001 USD per transaction and over 500+ transactions per second, as well as compatibility with Ethereum, BSC, and HECO. Since the start of the year, Hoo’s token has increased by over 350%. Other Chinese exchanges, including OKEx and Gate, have also launched smart chains. Smart chains are proving an attractive way to let users maximize yield while still letting the exchange capture value from the process.
VeChain on national TV
English-language and state-run business channel CGTN created a short expository video on blockchain’s growth post-COVID19. The video and article featured a close look at VeChain’s progress in developing business solutions, explaining how the technology could be applied to the food safety and infection control industry. The media company shot a short video inside the office and interviewed a few of the developers, indicating that the company has done well to comply with regulatory requirements in the tightly run country. It’s no secret that VeChain has a top position and close relationship with many government backed organizations, which is an enviable position for any enterprise Blockchain-as-a-Service provider.
Rising salaries for blockchain devs
The Beijing Human Resources and Social Security Bureau recently released the 2021 Beijing Human Resources Market Salary Survey Report (First Quarterly)”. According to the report, new and hot jobs, which included the tech space, had a median average monthly salary mainly in the $3,000 to $4,600 range. Blockchain engineers comfortably eclipsed that with a wage of $6,700 per month, showing the growing demand for the skills. By contrast, the average annual salary of a blockchain developer in the U.S. often exceeds $12,500 per month, according to recruitment firm Hired.com, nearly double the going rate in Beijing.
Miners back up and running… away?
Mining appears to have resumed as normal following the outages after a deadly coal mine accident last month. The incident required rigorous inspections of mining facilities, forcing many ASIC miners to turn off their machines. Hashrates have currently recovered to near the rates they were prior to the incident in the middle of April. One interesting shift, however, is that the industry appears to be gradually shifting from China to North America. F2Pool founder Chun Wang noted that for the first time in 8 years, more than half the BTC hashing power was coming from outside of China. This may have been partially tied to the incident, but is a trend that many experts are following as mining regulations in China appear to be growing stricter.
XRP, Dogecoin, Cardano Price Analysis: 06 May
With Bitcoin’s market dominance falling once again and the altseason gaining steam, the likes of XRP, Dogecoin, and Cardano have all appreciated significantly on the price charts over the past week or so.
XRP’s recovery since falling to close to $0.20 on the back of the SEC filing a lawsuit against Ripple Labs has been impressive, with the alt recording YTD returns of 510% at press time. Its price action over the past week, however, has been very inconsistent, with bouts of appreciation followed by sharp price falls on the charts. Even so, the cryptocurrency was close to recuperating all its losses following the depreciation on the 25th of April.
While Parabolic SAR’s dotted markers were under the price candles and underlined the bullishness in the XRP market, Awesome Oscillator gave the opposite signal, with its histogram picturing a fall in market momentum.
Dogecoin has been one of 2021’s best crypto-performers, with the alt hiking astronomically to register YTD returns of 10,800% this year. DOGE’s hike has been particularly exponential since the month of April, with the same more or less being the trend in May too. In the last week alone, DOGE has climbed by over 115% on the charts, with many expecting the popular meme-coin to continue surging at least until Tesla CEO Elon Musk’s appearance as “Dogefather” on Saturday Night Live.
The scale of its bullishness was evident when Dogecoin’s technical indicators were checked out. While Chaikin Money Flow was holding steady close to the 0.20-mark, Relative Strength Index noted a slight dip after a visit to the overbought zone.
Mark Cuban was one of the many crypto-proponents to come forward and comment on the meme-coin’s utility and purpose recently.
After a brief phase in February which saw ADA surge up the charts to lead the altseason for a time, the past few months have mostly seen Cardano trade within a tight price channel. At the time of writing, ADA was close to breaking out of the said range, while also inching closer to its previous ATH of $1.55 on the price charts.
In the last three days, ADA hiked by almost 20% on the charts.
While Bollinger Bands remained far apart to highlight volatility, MACD line was moving away from the Signal line to indicate the crypto’s latest bullish credentials.
The altcoin was in the news recently after IOHK’s Charles Hoskinson hit back at critics to comment that it’s bizarre to suggest that Cardano is a blatant scam.
Sign Up For Our Newsletter
Mastercard adds 6 blockchain payments startups to accelerator program
Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program
Starcoll To Issue Limited Edition Star Wars Collectibles as NFTs
Pro traders buy the Bitcoin price dip while retail investors chase altcoins
eBay could add a crypto payment option, says CEO
China’s Central Bank to Partner With Alibaba’s Ant Group on Digital Yuan
‘This ain’t no game’ as DOGE briefly flippens Nintendo and takes #4 spot from XRP
Singapore’s largest bank posts tenfold crypto volume growth in Q1 2021
S&P DJI Releases Bitcoin and Ethereum Indexes
Iranian companies can now pay for imports with officially mined cryptocurrencies.
S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether
Bitcoin Miners Moving Away from China, F2Pool Observes
Bybit Launches Ether (ETH) Cloud Mining Service as Demand Booms
Here Is Why XRP Volume Has Recover Across Payment Corridors
CBDCs Could Harm Bitcoin But BTC May Replace Gold as a Store of Value: Deutsche Bank
Bitcoin and Ethereum Indices Debut on S&P Dow Jones
Another XRP lawsuit update: SEC accuses XRP Holders of ‘reciting’ Ripple’s litigation position
The Reason for Ethereum’s Recent Rally to ATH According to Changpeng Zhao
eBay is Considering Adding Crypto Payments & NFT Sales
Qredo raises $11M in seed funding to launch new cross-chain asset management infrastructure
Blockchain3 days ago
Mastercard adds 6 blockchain payments startups to accelerator program
Blockchain1 week ago
Aave v2 launches liquidity mining program targeting stablecoin borrowers
Blockchain7 days ago
Australian senate committee calls for national blockchain land registry
Blockchain7 days ago
100M euro digital bond was a CBDC test, says Banque de France
Blockchain1 week ago
Residents of Caribbean island can conduct local transactions using Bitcoin
Blockchain2 days ago
Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program
Blockchain7 days ago
The Crypto Weekly Recap: ETH Eyes $3000, Bitcoin Dominance at 33-Month Low
Blockchain7 days ago
Biden’s capital gains tax plan to pull crypto down to earth from the moon?