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Italy’s central bank calls for framework to prevent stablecoin runs

Italy’s top banking authority has called for a “robust, risk-based” regulatory framework for stablecoins, which could help prevent a worst case scenario — a “run” on stablecoins.

The central bank’s recently released Markets, Infrastructures and Payment Systems report for June 2023 has called on regulators to apply the same financial conduct standards to stablecoin issuers in the industry.

The bank said the rise of cryptocurrencies, coupled with several “boom and bust cycles” in a largely unregulated environment has caused “significant consumer harm.”

Regulatory attention on stablecoin issuers in particular should be a priority because of its close connection to DeFi, the bank said:

“A robust, risk-based regulation of stablecoins ensuring the prevention of ‘runs’ on their issuers is a necessary condition to reduce the fragility of the DeFi ecosystem, given the prominent role of this asset class in decentralized finance.”

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Price analysis 6/28: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, LTC, MATIC, DOT

A large part of the recent leg of Bitcoin’s (BTC) rally started after BlackRock filed to list a spot Bitcoin exchange-traded fund (ETF) on June 15. Several applications by other firms have been rejected by the United States Securities and Exchange Commission in the past. However, BlackRock’s filing has a 50% possibility of getting approved, said Bloomberg senior ETF analyst Eric Balchunas. 

Another bullish catalyst for the cryptocurrency markets could be a filing by asset manager Fidelity Investments to launch its Bitcoin spot ETF. CoinShares Chief Strategy Officer Meltem Demirors said that firms managing $27 trillion of assets are “actively” pursuing efforts to allow their clients exposure in the crypto space.

Daily cryptocurrency market performance. Source: Coin360

Most of the focus in recent days has been on institutional money but the retail trader’s power should not be underestimated. Fireblocks CEO and co-founder Michael Shaulov said in an interview with Cointelegraph that institutional entry may not boost prices higher because they are likely to do it in such a way as to avoid large price bursts. Shaulov said there was a significant inflow of institutional money in 2020 but the prices did not appreciate until retail investors entered.

Will Bitcoin and altcoins break out of their respective overhead resistance levels or could they start a short-term correction? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Buyers tried to catapult Bitcoin above the overhead resistance of $31,000 on June 27 but the bears did not budge. This keeps the price stuck inside the tight range between $31,000 and $29,500.

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How smart people invest in dumb memecoins: 3-point plan for success

Back in 1984, a U.K. television advertisement for Kit Kat chocolate bars was set in a music label’s office where a keen young band played their demo for a bored music executive. Afterward, they were served the famous chocolate bars and the manager said:

“You can’t sing, you can’t play, you look awful… you’ll go far.”

This is as close as I can get to explaining the appeal of memecoins to sensible, smart and intelligent people. But don’t be fooled: Smart people are making a lot of money out of dumb memecoins — invariably at the expense of not-so-smart people without good timing.

PEPE is making memecoins great again. (Twitter)

And timing is everything in memecoins, which typically have no utility for anything except having fun and making money. So, without any fundamentals to trade on, can you still take a “smart” approach to making money by trading memecoins?

On Yavin, co-founder and head of business at Syndika, comes in with a hard “no” to that idea.

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Sui Foundation denies it sold locked staking rewards on Binance

Sui Foundation — the team behind the Sui network and its native SUI token — has denied allegations that the firm unlocked SUI staking rewards and “dumped” them on cryptocurrency exchange Binance .

The Foundation knocked back the claim in a five-part Twitter thread on June 27, stating that none of the locked or non-circulating tokens, including SUI staking rewards had been sold:

"Sui Foundation has not sold staking rewards or any other tokens from locked and non-circulating staked SUI on Binance or otherwise."

"All insider token allocations remain subject to and compliant with their lock ups and other restrictions on transfer,” the foundation added.

Sui is a decentralized proof-of-stake blockchain. Users can stake their Sui tokens to participate in its proof-of-stake mechanism in exchange for more SUI. No minimum staking period is required.

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Price analysis 6/26: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, SOL, LTC

The S&P 500 Index (SPX) snapped a five-week winning streak last week but it is still on track to close the first half of the year with stellar gains of nearly 13%. The tech-heavy Nasdaq Composite has done much better as it is up about 29%. Both these indices have been overtaken by Bitcoin (BTC) which has risen nearly 83% year-to-date.

Bitcoin’s bullish price action and the recent rush by several firms to apply for a Bitcoin spot exchange-traded fund seem to have attracted institutional investors’ attention. Bloomberg senior ETF analyst Eric Balchunas highlighted on June 26 that the ProShares Bitcoin Strategy ETF (BITO) — a Bitcoin futures fund — witnessed its largest weekly inflow in a year.

Daily cryptocurrency market performance. Source: Coin360

Another bullish view was that of LookIntoBitcoin founder Philip Swift who said in his latest research that Bitcoin’s RHODL ratio metric is showing that Bitcoin’s supply has started to move from long-term holders to speculative investors, indicating increasing mainstream trading interest.

Could the entry of speculators boost prices further or is it a sign that the markets are overheated in the near term and may correct? Let’s analyze the charts to find out the next possible move.

S&P 500 Index price analysis

The S&P 500 Index turned down from 4,448 on June 16, indicating that the short-term bulls are booking profits. That has pulled the price to the breakout level near 4,325. The 20-day exponential moving average (4,314) is placed just below this level, hence the bulls are likely to defend it aggressively.

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Crypto investment products see largest weekly inflow since July 2022

A recent surge in activity surrounding exchange-traded funds has led to the largest weekly inflow for digital asset investment products since July 2022, according to a June 26 report via CoinShares.

Totalling $199 million, inflows for the week of 19–23 June turned around a nine-week string of consecutive outflows, with Bitcoin (BTC) representing the lion’s share at $187 million (94% of overall inflows).

CoinShares analysts attributed the reversal to increasing activity from exchange-traded product (ETP) issuers in the exchange-traded fund (ETF) space:

“We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission.”

As Cointelegraph reported on June 23, Bitcoin reached a 2023 high of $31,431 last week — movement that was largely attributed to institutional interest in ETFs, with both BlackRock and Fidelity Investments filing for spot Bitcoin ETFs in June.

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Venture capital financing in crypto, explained

Venture capital financing in the crypto space is no different from typical VC, except the startups benefiting from financing operate in the cryptocurrency market. 

Venture capital businesses in the cryptocurrency sector concentrate their investments on startups and initiatives linked to cryptocurrencies, blockchain technology, decentralized finance (DeFi) and other cutting-edge distributed ledger technology applications. Projects creating new cryptocurrencies, blockchain platforms, smart contracts, decentralized applications (DApps) and other technologies can be included.

Contrary to traditional venture capital, where stock holdings are often obtained, venture capital in the cryptocurrency industry frequently entails investing in tokens issued by the project or firm. These tokens can stand in for several different value types, such as utility tokens, which enable platform access, or security tokens, which grant ownership rights.

Many cryptocurrency firms use token sales to raise money by trading tokens for cash from investors. To assist in the project’s growth, venture capital firms may take part in these token sales and buy tokens early on, frequently at a discount.

To evaluate a project’s viability, venture capitalists in the cryptocurrency sector carry out extensive due diligence. This includes assessing the project’s technical viability, market demand, competitive environment, token economics and regulatory issues.

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Binance reverses decision to delist privacy coins in Europe

Binance has decided to reverse its plan to delist a number of privacy coins in Europe after it said it has revised operations in order to comply with local regulations. 

In a comment from the cryptocurrency exchange recevied on June 26, Binance said that:

"After carefully considering feedback from our community and several projects, we have revised how we classify privacy coins on our platform to comply with EU-wide regulatory requirements."

It also commented that since it operates as an exchange registered in various EU jurisdictions, it is “obliged” to follow local regulations that require exchanges to, “be able to monitor transactions for coins listed on our platform."

Initially, Binance was to delist privacy tokens for users in France, Italy, Spain and Poland, rendering them no longer able to buy or sell 12 privacy tokens beginning on June 26.

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Australia’s token mapping to be ‘tech agnostic,’ says Treasury official

The Australian Treasury’s token mapping of digital assets will adopt a “tech agnostic” and “principles-based” approach in order to define crypto assets, according to a Treasury official.

Speaking to Cointelegraph on June 26 at the Australian Blockchain Week, Trevor Power, an Australian Treasury Assistant Secretary said the framework will be structured to easily classify tokens based on their “function” and “purpose.”

“The token mapping paper spends a lot of time talking about the token, the system, the value delivered for the very purpose of trying to structure whatever regulation such that it draws on those principles so then a token can be placed within that,” Power said, adding:

“It's trying to be tech agnostic. It's not trying to be token specific.”

Power said “it’s fair to assume” crypto-specific legislation will appear sometime in 2024 — but that it ultimately depends on how it is received by Australia’s lawmakers.

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Huobi sues… Huobi? 3AC rises from ashes, Korea crypto contagion: Asia Express

According to local news reports on June 21, Leon Lin Li, former co-founder of cryptocurrency exchange Huobi Global, has filed a copyright infringement lawsuit against the company in Hong Kong. Li claims that despite selling his majority stake to an entity controlled by Chinese blockchain personality Justin Sun last November, his company, X-Spo, still possesses trademark rights associated with the term “Huobi Global,” and that “Huobi Global,” the actual exchange, has been using the trademark without authorization. 

Former Huobi co-founder Leon Li. (Twitter)

Though it’s not immediately clear why Li seeks litigation against the very company and brand he previously built, a series of heated exchanges between Li and Justin Sun last month may offer some hints.

On May 16, Sun published a series of allegations against Wei Li, Lin Li’s brother. In the tweet, Sun accused Wei Li of “receiving millions of Huobi (HT) tokens through “abnormal means” at zero cost and of “consistently selling off these HT tokens and cashing out.” To which Lin Li replied: “I hope Huobi can provide evidence. If it is confirmed that it is zero-cost HT was obtained through illegal means, I will personally pay 10 times the HT [amount] to Huobi company.”

Hodlnaut’s last voyage? 

According to a recent court filing, the fate of whether troubled Singaporean crypto lending firm Hodlnaut is to be dissolved or restructured will be sealed on August 7. Last August, Hodlnaut halted operations after disclosing that it lost over $300 million of its client’s assets from the implosion of the $40 billion Terra Luna ecosystem in May 2022. 

Holdnaut team members before the onset of the crypto winter (SMU)

The firm faces approximately $300 million in claims from creditors, who mostly wish to see the firm dissolved. That said, both co-founders Juntao Zhu and Simon Lee want to continue Hodlnaut’s operations, even though the company had reportedly lost 69% of users’ deposits. Last November, Singaporean police began a probe into Hodlnaut’s activities as the firm initially denied exposure to the Terra Luna ecosystem. 


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Bitcoin’s ‘Great Accumulation,’ Binance.US resumes fiat withdrawals, and other news: Hodler’s Digest, June 18-24

Top Stories This Week

‘The Great Accumulation’ of Bitcoin has begun, says Gemini’s Winklevoss

Recently renewed optimism for an approved Bitcoin spot exchange-traded fund (ETF) is igniting “The Great Accumulation Race” for Bitcoin, according to industry pundits. Over the past week, Fidelity, Invesco, WisdomTree and Valkyrie have followed investment giant BlackRock in applying for a Bitcoin spot ETF with the United States Securities Exchange Commission, which some analysts believe is the reason for Bitcoin’s price surge in the past days.

Binance.US solves USD withdrawal issues but warns it won’t last long

Crypto exchange Binance.US informed customers that it has resolved U.S. dollar withdrawal issues after working with its banking partners, though it warned the relief may not last. The exchange suspended dollar deposits and notified its customers of an incoming pause to fiat withdrawal channels on June 9, amid its ongoing battle with the SEC. Binance.US has encouraged customers that have a failed withdrawal attempt to resubmit their requests. Any remaining USD balances held in customer accounts will be converted into Tether at a future date.

Atomic Wallet gives major update on hack but questions remain unanswered

Atomic Wallet users have been left wanting more answers, despite the decentralized wallet provider finally releasing a full “event statement” about the June exploit — which some estimate has run up to $100 million in losses. In the statement, Atomic didn’t point to what exactly led to the exploit, only laying out the four most “probable” causes, including a virus on user devices, an infrastructure breach, a man-in-the-middle attack or malware code injection. According to the company, “less than 0.1%” of app users were affected, but the figure is still rebuffed by many online.

UK government moves forward on financial markets bill for potential regulation of crypto

Lawmakers in the United Kingdom are moving forward with legislation that could help support the adoption of crypto in the country. First introduced to the U.K. Parliament in July 2022, the Financial Services and Markets Bill was aimed at ensuring the country maintained its place in the financial world following Brexit, including granting authority on digital asset regulation. The bill went through a third reading in the House of Lords, one of the final stages in passage before considering any additional amendments and being signed into law.

Fed sees stablecoin as form of money, wants ‘robust’ role in its oversight, Powell says

The U.S. Federal Reserve Board sees payment stablecoins as a form of money, Chair Jerome Powell said on June 21 when addressing Congress about the proposed stablecoin bill. Powell took a position that runs contrary to that of SEC chairman Gary Gensler. Last year, Gensler spoke at a Senate Banking Committee hearing saying that stablecoins may require registration and regulation with the SEC. Gensler has also consistently stated that all cryptocurrencies, except Bitcoin, are securities.


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Pepecoin (PEPE) vs. Dogecoin (DOGE): Is a flippening on the horizon?

A few months ago Pepecoin came and went, bringing quick, unimaginable riches to early investors and turning latecomers into reluctant bag holders.

While the chart resembles the standard crypto pump-and-dump scheme, Pepecoin’s (PEPE) price action this week suggests that the frog-themed token could be the newest contender to Dogecoin (DOGE) in the memecoin sector.

Dogecoin has dominated the memecoin space for years. Many copycats of dog-themed tokens, like Shiba Inu (SHIB) and Floki (FLOKI), have challenged DOGE’s position over the years but eventually faded.

SHIB briefly surpassed DOGE in market capitalization after rising 1,000% to a peak valuation of $41.1 billion on Oct. 28, 2021. At the time, Dogecoin’s market capitalization was $31.5 billion.

However, the near-vertical rally faded in the following weeks, and Dogecoin reclaimed its top spot in the memecoin category.

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Price analysis 6/23: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC, LTC, DOT

The rush to apply for a spot Bitcoin (BTC) exchange-traded fund (ETF) rejuvenated the bulls but this news is likely to boost the price only to a certain distance. As the price moves up, the risks of a crash increase if none of the ETF applications are approved. Trading firm QCP Capital is not convinced that a spot ETF will see the light of the day in the near term.

Another point of view came from Gemini co-founder Cameron Winklevoss who said on June 21 that the “floodgates” for accumulating Bitcoin are “closing fast.” Similarly, MicroStrategy Executive Chairman Michael Saylor said that the opportunity to “front-run institutional demand for Bitcoin” was ending.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin remains the center of attraction as its market dominance has been hovering near 50%. K33 Research analysis found that over the long term, Bitcoin investment has far outperformed an altcoin portfolio by a huge margin. Altcoins had their share of short-term outperformance in 2017 and again in 2021 but that could not sustain in the long term.

Could Bitcoin and the altcoins rise above their respective overhead resistance levels? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin is facing resistance at the overhead resistance of $31,000 but the bulls have not ceded ground to the bears. This enhances the prospects of a break above $31,000.

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Crypto City guide to Sydney: More than just a ‘token’ bridge

This “Crypto City” guide looks at Sydney’s crypto culture, the city’s most notable projects and people, its financial infrastructure, what retailers accept crypto and where you can find blockchain education courses — along with a history of its crypto controversies.

Jump to: Crypto culture, Projects and companies, Financial infrastructure, Where can I spend crypto? Controversies and collapses, Education, Notable figures.

Fast facts

City: Sydney
Country: Australia
Population: 5.2 million
Established: 1788

Sydney is Australia’s first, oldest and second-most populous city (just), world-famous for its harbor views and iconic landmarks, such as the Opera House and Harbor Bridge — affectionately nicknamed “The Coathanger” by locals. The Harbor City’s second-most notable feature is 100 beaches across the metropolitan area with Bondi Beach the best known.

Sydney has one of the world’s largest natural harbors. (Pexels)

Located on Australia’s east coast, Sydney was established as a penal colony for the British Empire, which needed somewhere to transport criminals after losing control of its colonies in the American Revolution. It’s probably no surprise then it earned the moniker “Sin City” in the second half of the 20th century due to rampant organized crime that corrupted judges, the top brass of the police and, maybe less surprisingly, politicians.

Sydney has one of the world's largest natural harbors
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Shiba Wings customers love the food, not so much the crypto, says owner

After a grand opening in March, Australian fast-food diner Shiba Wings has seen plenty of customers walking through the doors for their fried delectables. 

Their appetite, however, hasn’t translated to crypto payments.

The Shiba Inu (SHIB) themed diner first opened its doors in Australia’s beachside city Surfers Paradise on March 18, 2023.

Speaking to Cointelegraph, the pseudonymous owner of the diner, “Elijah,” said their first week saw roughly $168 (250 Australian dollars) worth of crypto payments. In the months that followed total crypto payments dropped off, falling to an average of around $34 (50 Australian dollars) per week.

Shiba Wings diner. Source: Paradise Centre.

Most of these payments have been Shiba Inu, followed by Dogecoin (DOGE) and then Cardano (ADA).


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‘Bitcoin only’ buy-and-hold investment strategy outperforms altcoins over the long term — Analysis shows

Altcoins offer diverse, innovative features, promising technological advancements, and potentially lucrative investment opportunities.

Many-a-time specific altcoins post handsome gains that surpass Bitcoin (BTC), popularly known as altcoin season. However, K33 Research analysis shows over the long-term, ‘Bitcoin only’ has been a better investment strategy than an altcoin portfolio.

Altcoin portfolio underperformed Bitcoin over the long run

Bitcoin has had three consecutive bull and bear market cycles, starting in 2013 with the latest one coming in 2021. In each cycle, Bitcoin’s price rose parabolically in a very short span, usually a few months, after surpassing the peak of its previous cycle.

In 2013, BTC peaked around $1,175 and after that followed a downtrend for two years. At the time, the altcoin market was in its nascent stage. The fiat onramps to Bitcoin were limited and exchanges to convert them to altcoins were rare.

However, by the end of 2015, a number of altcoins, including the invention of Ethereum had occurred. A few exchanges had also propped up that supported conversion of Bitcoin to other cryptocurrencies, paving the way for an altcoin market.

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Ripple gets in-principle nod for digital asset services in Singapore

Blockchain-based payments firm Ripple has obtained in-principle regulatory approval from Singapore’s financial regulator to offer digital asset payments and token products in the city-state.

Ripple confirmed the approval from the Monetary Authority of Singapore (MAS) in a June 22 statement. The approval will allow its subsidiary — Ripple Markets Asia Pacific — to further scale its On-Demand Liquidity (ODL). The ODL helps Ripple’s customers to move XRP around the world without the banks intervening as intermediaries.

The firm applied for the institutional payment license under Singapore’s Payment Service Act.

Ripple CEO Brad Garlinghouse praised the Singaporean regulator for its “pragmatic, innovation-first approach” to cryptocurrency-related services, adding that the country will provide a “prominent gateway” for Ripple’s business operations in the Asia Pacific region.

Ripple’s chief legal officer, Stu Alderoty also noted that Singapore’s “early leadership” is paving the way for other regulators looking to develop a “clear taxonomy and licensing framework.”

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Price analysis 6/21: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC, LTC, DOT

BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF) has encouraged other financial firms to follow suit. First, it was the New York-based asset management fund WisdomTree, which made a new filing on June 21 for a Bitcoin (BTC) ETF. This was then followed by investment manager Invesco, which reactivated its application for a spot ETF.

These announcements boosted investor sentiment, resulting in a short squeeze and additional buying interest from traders who may have been waiting on the sidelines. The slew of events over the past few days has increased buying interest in Bitcoin, which sent its market dominance to above 50% on June 19.

Daily cryptocurrency market performance. Source: Coin360

The short-term traders who are expecting a quick rally to the all-time highs may be in for a shock. In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode warned investors that their patience could be tested for another eight to 18 months before the market hits a new all-time high.

Will Bitcoin’s rally continue to rise for a few more days, or is it time to book profits? Let’s study the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin broke and closed above the 20-day exponential moving average (EMA) of $26,934 on June 17. The bears tried to sink the price back below the level on June 18, but the bulls held their ground.

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3 reasons why Ethereum’s market cap dominance is on the rise

Ethereum has been the dominant smart contract and decentralized application (Dapp) network since its inception. An analysis based on Ether’s price (ETH), and its market capitalization, shows indisputable evidence that the blockchain has been gaining market share over time. 

Ether market capitalization dominance (%). Source: TradingView

As shown above, Ether’s dominance in market capitalization terms grew over the past couple of years, from an 18% average in July 2021 to the current 20%. Excluding Bitcoin (BTC) from the analysis, Ether’s market share presently stands at 40.6%, while the next competitor, BNB, holds a 7.2% share.

This shows the disparity from the leading Dapp-focused network to the incumbents, which is also evident when analyzing the total value locked (TVL) on each network’s smart contracts. Ethereum is the absolute leader with $24.6 billion in TVL, followed by Tron’s $5.4 billion and BNB Chain’s $3.3 billion.

Total value locked market share (%). Source: DefiLlama

The above chart depicts the Ethereum network’s TVL market share declining from 70.5% in June 2021 to 49.5% in May 2022. The movement happened while Terra and Avalanche gained a combined 20% market share in smart contract deposits. However, after the Terra-Luna ecosystem collapse in May 2022, which culminated with developers halting network activity, Ethereum quickly regained a 58% market share.

Despite the emergence of Dapps on the BNB and Tron blockchains, Ethereum’s leadership has remained unquestioned over the past 12 months. This data shows the irrelevance of the total number of unique active wallets interacting with smart contracts (UAW) per chain.

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Bitcoin 2023 in Miami comes to grips with ‘shitcoins on Bitcoin’

Among the more memorable displays at Bitcoin 2023 is a real-life toilet with the logos of various non-Bitcoin cryptocurrencies. It’s an ad for a booth selling “buttwipes” that are “moistened with the tears of no-coiners.” The marketing message is clear: Bitcoin is the real thing — everything else is a shitcoin that belongs in the toilet. 

But only a few steps away is another booth selling trading solutions for BRC-20 tokens, which some have labeled shitcoins for Bitcoin. Across the walkway are more booths slinging NFT minting software — also on Bitcoin. The conference even hosts a Bitcoin NFT art gallery. 

As Miami hosts the largest Bitcoin conference for the third year in a row in May, the air feels markedly different. Though there are only 15,000 attendees compared to last year’s 35,000, the atmosphere has an energy and freshness that’s a world away from the gloom and bear-market blues that one might expect after the massive drops from the 2021 highs.

Bitcoin is the real thing — everything else belongs in the toilet (Elias Ahonen)

What’s changed this year is the ordinal renaissance, brought on by the recent reality of not only NFTs but tokens being issued on the Bitcoin blockchain. There are certainly haters — with some calling for a fork to undo the Taproot updates that made “spam” possible on the chain. 

But despite the Bitcoin community’s traditional hatred for NFTs, tokens and DeFi, however, things are surprisingly quiet. Despite the blowback online, almost no one Magazine encounters at Bitcoin 2023 has anything particularly bad to say about Ordinals — and some did not even realize they are related to Bitcoin. 

Shitcoins
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