Crypto Guides, Knowledge & Insights

Terra Will Launch a Spin-Off Blockchain This Friday

The governance vote to create a new Terra blockchain with new LUNA tokens (and no algorithmic stablecoin) has passed.　　Terra to Launch New Blockchain　　Do Kwons plan to revive the Terra ecosystem seems to be coming to fruition.　　The Terraform Labs co-founder and CEOs proposal to launch a new Terra blockchain was approved in a governance vote Wednesday. 65.5% of the total votes tallied in support of the proposal, while only 13.2% of the ballots strongly opposed it and voted “no with veto,” arriving 20.2% short of the veto threshold that would have nulled the proposal.　　The move comes in response to Terra‘s $40 billion collapse that transpired earlier this month. The revival plan, submitted by Kwon and supported by Terraform Labs and the Terra Builder Alliance, suggests creating a new blockchain with a new LUNA token. Unlike the original Terra network, the new one will not be attached to an algorithmic stablecoin. According to the proposal, it’s set to be called Terra, while the existing chain that crashed to zero will be renamed Terra Classic.　　The approved proposal aims to make Terra investors whole by airdropping the new LUNA tokens—based on a set distribution—to those who held LUNA and UST before and during Terra‘s

2022-05-26Deep Dive

5 Up-and-Coming DOGE Projects that Might be Worth Your Money

In the 2021 bull run, cryptocurrencies that played on the dog theme dominated the market. It all started on April 2nd, when Elon Musk tweeted “Dogecoin might be my fav cryptocurrency. It‘s pretty cool.” In the weeks that followed, Dogecoin – cryptocurrency’s original meme – skyrocketed from a meager $0.05 to a high of $0.75 on May 7th. That means a DOGE holder who had $100 of Dogecoin on April 2nd would have had $1500 less than a month later.　　With the Tesla CEO incorporating DOGE into its accepted payments for merchandise sales and supercharging stations and suggesting that people who subscribe to Twitter Blue should be able to pay with Dogecoin, DOGE itself (approximately $0.08 at the time of writing) still has massive upside potential. But many feel as though they‘ve missed out on the asset’s heyday. Theyre looking for the next 10,000x that only comes from early adoption. These five dog-themed coins have the potential to do just that.　　Baby Doge ($BABYDOGE) is a deflationary token designed to become more scarce over time. They charge a 5% fee for each sale of the asset and redistribute that fee to Baby Doge Coin holders – meaning the longer you hold, the

2022-05-25Deep Dive

Survey: Companies Accepting Bitcoin, Crypto Have Positive Impact On Their Image

CoinsPaid, a European cryptocurrency infrastructure provider, released research to Bitcoin Magazine that shows companies accepting bitcoin and other cryptocurrencies are viewed positively and provide noticeable impact on peoples lives in Brazil, Columbia and Argentina.　　The survey, which was conducted this past March, showed that 50.5% of Brazilians viewed bitcoin and other cryptocurrencies being accepted by companies with a positive outlook, or that they believed cryptocurrency would be the future of money. Likewise, Argentina reported 38.1% positively towards their outlook while Colombia surveyed at 35.7%.　　Respondents from all three countries reportedly stated that one of the main factors that would determine whether or not they wanted to use something like bitcoin for daily transactions is greater security in transactions. This shows a clear demand for bitcoin as its network is by far the largest and most decentralized providing the strongest form of transactional security with a verifiable and uncontrollable public ledger.　　Brazilians also showed 36.3% of respondents would prefer to use a currency like bitcoin for daily purchases, which was echoed by the Brazilian Senate as they passed a bill this past February seeking to regulate the broader market.　　The movement of countries like Brazil, Argentina and Colombia considering the adoption of new forms of

2022-05-25Deep Dive

ECB: One in ten households in eurozone population centers now own cryptocurrency

On Tuesday, the European Central Bank, or ECB, published the results of a new survey conducted in six eurozone areas; the Netherlands, Spain, Italy, Belgium, France, and Germany. Together, approximately 10% of respondents from the surveyed countries said they own cryptocurrencies. Out of this group, only 6% of respondents said they own digital assets worth more than 30,000 euros. Meanwhile, 37% of respondents said they owned up to 999 euros in crypto.　　Across all of the countries surveyed, investors in the fifth income quintile (or the wealthiest 20% of the population) consistently had the highest proportion of cryptocurrency ownership relative to other income groups. The Consumer Expectation Survey asked adults aged 18 to 70 if they or anyone in their household owned financial assets in various categories, such as crypto-assets.　　The survey was included in a new report published by the ECB the same day regarding the growing adoption of crypto assets despite their risk factors. As cited by the ECB, 56% of respondents in a recent Fidelity survey said they had some exposure to crypto-assets, up from 45% in 2020. Increased availability of crypto-based derivatives and securities on regulated exchanges, such as futures, exchange-traded notes, exchange-traded funds, and OTC-traded trusts, have

2022-05-25Deep Dive

European Central Bank Says Crypto Unsuitable As Store Of Value

The European Central Bank (ECB) said on Tuesday that cryptocurrencies are largely unsuitable as an investment or a store of value.　　The bank said if the current growth and market integration of cryptocurrencies persists, they could pose a bigger threat to the economy. But it still sees their popularity growing, especially among retail investors.　　So far, despite volatility in the crypto market this year, it has not resulted in any major contagion to the real economy. But the ECB thinks this could change.　　The ECBs comments, which were released in a report, come shortly after President Christine Lagarde said crypto is “worth nothing.” The central bank has also previously derided crypto for its volatility and risks to investors.　　ECB thinks crypto regulation lacking, investors vulnerable　　A recent survey ECB shows that at least 10% of European households own crypto assets. Retail investors also make up a significant portion of crypto holders, according to the bank.　　But it is on this notion that the bank states that crypto assets are lacking in consumer protection risks. Investors in the space are more vulnerable to fraud, regulatory relief mechanisms and market manipulation.　　While major crypto projects are growing, the ECB says they lack “internal shock absorbers” for extreme market events.

2022-05-25Deep Dive

Three Factors That Will Favor Bitcoin Vs Crude Oil This Decade: Bloomberg’s Chief Expert

Chief commodity strategist of Bloomberg, Mike McGlone, has taken to Twitter to share his view on the trajectory of crude oil price versus that of Bitcoin, where the latter has been rising.　　McGlone believes that Bitcoin is going to rise unlike crude oil thanks to three factors within this decade – adoption, supply and demand.　　So far, he stated the trajectory on the chart has been unfavorable for crude oil and favorable for the flagship cryptocurrency also known as digital gold. He reckons there is a high probability that it would remain the same way.　　Bitcoin adoption has been widely expanding recently, as more and more financial institutions and retail investors have been acquiring BTC to bet on it long-term.　　Recently, major investor and author of the “Rich Dad, Poor Dad” book Robert Kiyosaki tweeted that he remains bullish on the future of BTC, however, he expects a new bottom test for the asset.　　Similar view has been shared by chief investment officer of Guggenheim Partners, Scott Minerd. He believes Bitcoin may go down as much as to test the $8,000 bottom from the current price. However, since, according to him, the majority of the 19,000 cryptocurrencies is “garbage” and “not even currencies”, such coins

2022-05-25Deep Dive

Coinbase Becomes First Crypto Company in Fortune 500

The largest US-based crypto exchange has reached yet another milestone by entering the top Fortune 500 companies for the first time.　　Despite the recent uncertainty and unfavorable market sentiment, Coinbase has climbed into the list of the Fortune top 500 firms. The exchange registered one of the most significant yearly increases in profits and revenue compared to the previous year.　　Started in the 1950s, the Fortune 500 list is an annually-published ranking of the largest US corporations by total revenue for their respective fiscal years.　　The latest edition, updated by Fortune magazine today, showcased the first-ever entrance of a cryptocurrency-focused company – Coinbase.　　The exchange ranked 437, with a 513% increase in the revenue year over year and a mind-blowing 1,024% surge in profits. Please download WikiBit for more blockchain news.　　Last year was highly positive for the largest US crypto exchange, as it made history in April when it became a publicly-traded company. Its COIN stocks started trading at $400 amid the ongoing bull run.　　However, the tides have changed since then, and the firm‘s shares have shed more than 80% of their value, closing yesterday’s trading day at $66. It will be interesting to follow how they will react to the inclusion in the

2022-05-25Deep Dive

Central African Republic to Launch Bitcoin Investment Platform

The Central African Republic is working on launching the continents first cryptocurrency investment hub, which is aimed at embracing more investors into digital assets despite rising regulatory concerns all over the world, Reuters reports.　　Following decades of armed conflict, CAR became the first country in Africa and the second country in the world to adopt Bitcoin as an official currency, which can be used for payments and exchange legally. At press time, the government has not provided the technical details for implementing the new technology.　　The announced “SANGO” cryptocurrency project already has a website available for investors who are willing to enter the waitlist. According to the president of the republic, a traditional financial system could not be implemented in the country, which is why they went with the digital option.　　Bureaucracy is the main issue with traditional economies like those of CARs. Please download WikiBit for more blockchain news.　　According to a Reuters article, there was no proof of the actual functionality of the announced cryptocurrency hub, nor any details about the technical background of the project.　　The adoption of Bitcoin in the Central African Republic was a rather surprising move as the country still remains heavily underdeveloped in terms of interest and electricity

2022-05-25Deep Dive

EL Salvador shows other Countries the way to Bitcoin adoption

By: Damian Okonkwo　　The march towards Bitcoin global adoption has taken another dimension across the globe following the just concluded Bitcoin conference held in El-Salvador last week. The conference which started on Monday 16 May 2022, lasted for three days. Forty-four different countries including twenty-three African countries participated in this conference. Representatives from these countries including 32 central banks and 12 financial authorities had met at El-Salvador to discuss what President Nayib Bukele described in his tweet before the meeting as “the financial inclusion, digital economy and banking the unbanked”. The conference also gave the opportunity to discuss the progress made so far in El-Salvador since they adopted Bitcoin as a second legal tender in September 2021.　　The majority of the participants from different countries were amazed to see the citizens of El-Salvador buy and sell different items using Bitcoin. Hence, all participating member was requested to download their Bitcoin wallets to make purchases with BTC during their stay in the country.　　Nevertheless, the event was organized by the Alliance for Financial Inclusion, a global policy leadership alliance in partnership with El Salvadors central bank. All participating countries have been referred to as the members of the Alliance for Financial Inclusion (AFI) in

2022-05-24Deep Dive

Tether remains unshaken despite $10 billion withdrawals in 2 weeks

Crypto traders withdrew around $10 billion from Tether USDT in the last two weeks as talks of increased regulatory scrutiny for stablecoins continue to grow. 　　CryptoSlate data shows that the circulating supply of USDT dropped to $73.3 billion on Monday from the $84.2 billion on May 11.　　On May 20 alone, on-chain data shows that traders withdrew $1 billion from Tether. The massive withdrawal was fueled by Terra blockchain UST and LUNA collapse.　　Following USTs crash, USDT, alongside several stablecoins, temporarily lost its peg. This brought much attention to this crypto class and how “stable” they were.　　Tether, in a recent blog post, wrote that its de-pegging across crypto exchanges does not mean that USDT has broken its peg; instead, the de-peg shows that.　　“There is more demand for liquidity than exists on that exchanges order books.”Tethers USDT 1:1 claim　　Tether had earlier claimed that USDT has a one-to-one dollar backing in a bank account but later changed its tune to say it uses other assets such as commercial paper and even digital tokens as collateral. It revealed this when it settled with authorities in New York.　　The firm must publish its reserves every quarter as part of the settlement. The latest attestation report shows it

2022-05-24Deep Dive

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