Crypto Guides, Knowledge & Insights

BlockFi fined $943,000 for not registering securities in Iowa

Cryptocurrency trading and lending platform BlockFi has been fined $943,000 by the Iowa Insurance Division for failing to register securities in the state and offering and selling securities in Iowa without being registered as a broker-dealer or agent, according to a June 14 press release.　　The order was released after the conclusion of a multi-state investigation conducted by the U.S. Securities and Exchange Commission (SEC) and securities regulators from 53 jurisdictions, that were part of the North American Securities Administrators Association (NASAA).　　According to the press release, BlockFi will also pay settlements of $50 million to the SEC and another $50 million to the 53 investigating jurisdictions. The company has also been ordered to cease and desist from making false claims regarding securities.　　Iowa Insurance Commissioner Doug Ommen said in the press release:　　“While innovations, like cryptocurrencies, may provide for growth and evolution in the financial system, it is important that regulators ensure this occurs within an appropriate framework that protects investors while still facilitating responsible capital formation.”　　The investigation found that BlockFi offered and sold unregistered securities and misrepresented the risk level in its loan portfolio. In various website posts, BlockFi claimed that its institutional loans were “typically” over-collateralized, which was found to be

2022-06-15Deep Dive

Bank of America: 90% of US Adults Surveyed Plan to Buy Crypto in 6 Months

A new Bank of America survey shows that out of more than 1,000 U.S. adults, 90% plan to buy crypto in the next six months. Moreover, nearly 40% of respondents revealed that they use cryptocurrency as a means of payment.　　Bank of Americas Crypto Survey　　Bank of America (BOA) analyst Jason Kupferberg shared his crypto outlook in an interview with CNBC Monday. He was asked about a recent Bank of America survey that showed sustained interest in cryptocurrencies.　　The analyst explained that the survey was conducted early this month, which was after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He added that over 1,000 U.S. adults participated, noting that the sample size was “pretty significant.”　　Kupferberg opined:　　“It was interesting to see that 90% of respondents said they do plan to buy some amount of crypto in the next six months.”　　He continued: “That was actually the same percentage who reported having actually bought some crypto over the prior six months.”　　In addition, 30% of all respondents said they do not plan to sell their crypto in the next six months.　　Using Crypto as a Payment Method　　The Bank of America survey also examines whether consumers expect to pay for goods and services with bitcoin or

2022-06-15Deep Dive

Following LUNA-UST Crash: South Korea’s Top Crypto Exchanges to Establish a Joint Consultative Body

The five leading cryptocurrency exchanges in South Korea – Upbit, Bithumb, Coinone, Korbit, and Gopax – will reportedly set up a joint consultative body that will oversee the local digital asset market, scheduled to go live during the second half of 2022.　　Trying to Prevent Another Accident Like Terra　　A local media revealed that Koreas major platforms will join forces to grant additional protection for crypto investors. They vowed to sign a business agreement and then launch a joint consultative body to improve the regulatory standards in the space. They will also create a communication channel where victims and affected companies could address arising issues.　　The consultative body will be divided into three areas: transaction support, market monitoring, and compliance monitoring. The first action is scheduled for September this year, when the exchanges will prepare a virtual currency warning system and delisting standards. Additionally, the companies will provide valuable information, including evaluation reports and white papers.　　If there are any indications that certain cryptocurrency projects are related to money laundering activities or they pose a threat to the financial system, investors will receive a warning.　　In October, the platforms plan to introduce guidelines for listing screening. They will also periodically check the possible risks in

2022-06-15Deep Dive

Sequoia Capital Launches Two New Funds to Expand Web3 Investment

Global venture capital and growth investor Sequoia Capital has announced the launch of two new funds – a $2 billion early-stage venture, and growth product for India as well as an $850 million dedicated one for Southeast Asia. The focus will also be on the Web3 ecosystem.　　Sequoia has ambitious plans for the region and aims to “double down.” It currently operates several programs, including Surge and Spark. While the former supports very early-stage firms, the latter offers fellowship to female founders other than venture and growth investments.　　The official blog post wrote, “This fundraise, which comes at a time when markets are starting to cool after a very long bull run, signals our deep commitment to the region and the faith our Limited Partners have in the long-term growth story of India and Southeast Asia.”　　Sequoia India and Southeast Asia happen to be the most prolific investors in the region, but the unveiling of the two funds comes as a positive development amidst the increasing pessimism in the financial market space.　　While observing the emergence of a “thriving” Web3 ecosystem and new waves of innovation in markets like Vietnam, Philippines, Thailand, and Malaysia, Sequoia Southeast Asia aims to continue to invest actively at

2022-06-15Deep Dive

Coinbase Lays Off 1,100 People In Preparation For Prolonged Bear Market

It has already been a challenging couple of months for the crypto sector and nobody is feeling the heat more than crypto-related employees who have been dropping like flies in recent weeks.　　After initially freezing hiring, Coinbase has become the latest company to lay off workers as the market sees difficult times. The company is trimming 18% of its workforce, which equates to over 1,000 employees.　　Coinbase Anticipates Extended Crypto Winter　　According to a Tuesday blog post penned by Coinbase CEO Brian Armstrong, the company is reducing its headcount by 18% in an effort to remain healthy in the difficult macroeconomic environment.　　Armstrong noted that the company expanded too quickly during the bull market and had “overhired”. The Coinbase workforce grew from 1,250 employees at the beginning of 2021 to around 5,000. The company is now letting go of 1,100 of these employees, according to a filing with the U.S. Securities and Exchange Commission.　　The layoffs are expected to help the business endure the fast-approaching global recession, which “could lead to another crypto winter, and could last for an extended period.”　　The outgoing employees will be notified of their fates through their personal emails, the CEO posited, as the company had limited their access to Coinbase

2022-06-15Deep Dive

Crypto Market stays Bearish up to Q2 in 2022: Can traders make profits in the bear Season?

By: Damian Okonkwo　　The year 2022 has proved to be an unprecedented feast for the bears in the crypto market since the history of cryptocurrency. Bitcoin for instance had been trapped below 30K consistently for the past six months marking the first half of 2022. Historical records have shown that this is the first time Bitcoin had remained below a given range for more than six months. This bearish dominance, had caused the greatest number of liquidations for crypto traders this year - who severally forecasted a breakout for Bitcoin above the current range but were disappointed to be caught up on a false breakout. More than 120Billion investments have been recorded as the amount lost by traders who got liquidated from their longing positions in the market this year alone. Spot traders who considered Crypto trading as an investment have seen their portfolio return to dust; with more than 80% loss of value. This has pushed many newbies to raise the question: Can one make profits in the bearish Seasons？ Well, this article has responded positively to the foregoing contention while elaborating on the possible ways to make profits during the bear season.　　How can one make profits from crypto trading

2022-06-14Deep Dive

PWC: Majority of Crypto Fund Managers Surveyed Predict Bitcoin Could Reach $100K by Year-End

Major financial services firm PWC has conducted a study and found that the majority of crypto fund managers surveyed believe that the price of bitcoin would be between $75K and $100K by the end of this year.　　Bitcoins Price Estimate by Crypto Fund Managers　　PWC, a Big Four accounting firm, published its “4th Annual Global Crypto Hedge Fund Report” last week. It was produced together with the Alternative Investment Management Association (AIMA) and Elwood Asset Management (now part of Coinshares).　　The data in the report comes from a survey conducted in April across a sample of 77 specialist crypto hedge fund managers, PWC explained, adding that their total assets under management (AUM) were $4.1 billion in 2021.　　The report includes bitcoin price predictions. “We gave crypto fund managers the opportunity to contribute their estimates on where the price of BTC and the overall cryptocurrency market capitalization would be on 31 December 2022,” the Big Four accounting firm detailed.　　The results showed that “while the overall crypto market was quite bearish, managers remained extremely bullish on BTC,” the report describes. Noting that “the median prediction of BTC price being $75,000,” PWC detailed:　　“The majority of predictions were within the $75,000 to $100,000 range (42%), with another 35%

2022-06-14Deep Dive

France Could Deploy Blockchain Ticketing for Paris 2024 Olympic Games

The French Governments Olympics committee is willing to run the Paris 2024 Olympic Games with minimum security risks for fans. As such, the organization might incorporate blockchain technology into its ticketing system and provide non-transferable, personalized passes to spectators.　　Blockchain to the Rescue　　According to a recent coverage, Michel Cadot – the interministerial delegate of the French Governments Olympics – submitted a report to the Prime Minister of France containing some potential amendments for the 2024 Olympic Games.　　One recommendation focuses on the ticketing system that will support the event. In his view, permits based on blockchain technology will provide fans with additional security. According to his plan, tickets should be non-transferable and sent by the organization a few days before the start of the Olympics.　　Spectators will be able to acquire them via a rotating QR code using blockchain technology. Once entering the venue, everyone will check-in and deactivate their ticket.　　Cadot believes this personalization will grant individuals numerous benefits as they will be able to receive messages via digital channels on issues such as how to reach the venue from every district in Paris and safety procedures during the Games. He also argued that blockchain ticketing could be successfully integrated into other major

2022-06-14Deep Dive

Russian Parliament to Review Bill Prohibiting Crypto Payments

Legislation making it illegal to pay with cryptocurrencies has been filed with the State Duma, the lower house of Russias parliament. The sponsors of the bill want to task crypto platforms to prevent transactions that could facilitate payments with digital assets.　　Draft Law Banning Use of Cryptocurrency for Payments Submitted to Russian Parliament　　Russian lawmakers will review a new bill imposing a ban on the use of digital financial assets, a legal term currently encompassing cryptocurrencies, and utilitarian digital rights, or tokens, as a means of payment in Russia. The document has been submitted to the State Duma by the Chairman of the Financial Market Committee Anatoly Aksakov, the crypto news outlet Forklog reported.　　According to the legislature‘s information portal, following the draft’s approval by the committee, the members of the lower house are expected to vote on the legislation on first reading in mid-June. If adopted by the deputies, the law will explicitly prohibit crypto payments inside the Russian Federation, on the backdrop of proposals to allow them in foreign trade deals.　　The authors of the bill also emphasize that the Russian ruble is the only legal tender in the country. In an explanatory note, they insist the ban will eliminate the risk

2022-06-14Deep Dive

Goldman Sachs Executes First-Ever Ether-Linked Derivative Trade

Banking giant Goldman Sachs began trading a derivative asset tied to Ether on Monday. The asset is intended to provide investors with indirect exposure to Ether – the second-largest cryptocurrency by market cap.　　As reported by Bloomberg, the counterparty of the trade was Marex Financial – a London-based financial services firm.　　The move comes on a day when the entire crypto market – including Ether – has fallen to lows unseen since December 2020. The total market is now worth less than $1 trillion, with Bitcoins market cap below $450 billion.　　The trade arguably indicates a sense of long-term faith in crypto as an asset class, despite recent downturns. In January, the companys former CEO admitted that crypto is “happening” after being a longtime skeptic.　　In the past, the bulk of Goldmans crypto trading options has centered around Bitcoin-linked derivatives, after restarting such services in July of 2021. It became the first major US bank to offer a Bitcoin OTC options trade in March.　　Goldman announced that it would soon offer cash-settled Ether trading options in April, and even claimed the crypto could surpass Bitcoin as a store of value in July 2021. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory

2022-06-14Deep Dive

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