Crypto Guides, Knowledge & Insights

The Reasons Why Some Crypto Skeptics Have Not Entered the Market: Survey

The online web platform CouponFollow conducted research among over 1,100 individuals who have not entered the crypto market to determine what is stopping them from doing so. 42% said they dont understand the value of digital assets, while 35% admitted they stay away because it “seems like a scam.”　　Reasons Behind the Hesitation　　Cryptocurrencies, particularly bitcoin, have rapidly expanded their popularity over the past few years. For one, the primary digital asset became legal tender in El Salvador and the Central African Republic. At the same time, its merits, such as decentralization, transparency, and accessibility, are often touted by numerous experts and prominent individuals.　　However, it‘s still safe to say that the majority of the globe’s population remains unconvinced about the asset class. According to CouponFollow, the interest in crypto spikes significantly when bitcoin or some altcoins reach all-time high prices. On the contrary, individuals withdraw their enthusiasm when the USD valuation heads south like in the past few months.　　The crypto non-HODLers also explained their main reasons why they have not hopped on the bandwagon. 42% said they dont understand the value of digital assets, while 39% are concerned about their volatile nature.　　Critics of the sector often describe cryptocurrencies as a scam. 35%

2022-05-23Deep Dive

Insider Trading is Rife in Crypto, Says New Report

An analysis by Argus, a firm that helps companies manage employee trading, reveals that several crypto investors benefit from inside information about when exchanges would lose tokens, according to a Wall Street Journal report.　　The report, based on available public data, shows that several wallets show a pattern of buying tokens days before listing and selling them immediately after.　　This practice appears prevalent on most major exchanges, including Binance, Coinbase, and FTX. Major exchanges listing a token are usually a temporary catalyst for its prices.　　According to blockchain data, a wallet accumulated Gnosis coins worth $360,000 within six days in August. Binance announced that itd list Gnosis on the seventh day, leading to the price rising to more than 7 times its average in the last seven days.　　The wallet started selling 4 minutes after Binance announced the listing and liquidated everything in 24 hours. They made $500,000 from the sale, pocketing a profit of about $140,000. The analysis reveals that this isnt the first time the wallet has done the same thing.　　Argus discovered that 46 wallets bought $17.3 million worth of Cryptocurrencies just before they were listed on the three major exchanges. However, the identity of the owners remains unknown.　　Although visible profits from

2022-05-23Deep Dive

ECB’s Christine Lagarde Says Crypto Is Worthless

Christine Lagarde, president of the European Central Bank, has warned that cryptocurrencies are worthless and should be regulated.　　The ECB boss believes that regulating the sector will prevent people from gambling their life savings on cryptocurrencies.　　“My extremely modest opinion is that cryptocurrency is worthless. It is founded on nothing, and there are no underlying assets to serve as a safety anchor,” she said.　　Lagarde continued, “I have always stated that these types of assets are highly speculative and extremely risky.”　　Lagarde said on Dutch television that she is concerned about those who do not comprehend the risks, “who will lose everything,” and who would be severely disappointed by digital assets.　　Mounting Pressure And Scrutiny　　Lagarde made the remarks in the midst of challenging times for bitcoin markets, when major coins such as bitcoin and ether have lost half of their value from their 2017 peaks.　　Cryptocurrencies are also receiving increasing scrutiny and pressure from global regulators, who frequently cite dangers to the financial system.　　Other ECB officials have expressed doubts. Among them is Fabio Panetta, a member of the ECBs executive board. In April, he stated that crypto assets are “creating a new Wild West” and compared them to the subprime mortgage catastrophe of 2008.　　Lagarde Doesnt Invest

2022-05-23Deep Dive

Bill Gates: Crypto Has No Valuable Output — It's Not Adding to Society Like Other Investments

Microsoft co-founder Bill Gates has explained why he does not own any bitcoin or other cryptocurrencies. “I like investing in things that have valuable output,” Gates said, adding that crypto is “not adding to society like other investments.”　　Bill Gates on Crypto, and Why He Isnt Investing　　Microsoft co-founder Bill Gates shared his opinion about bitcoin and cryptocurrencies in a Reddit AMA (Ask Me Anything) session last Thursday.　　One of the questions he was asked was “What do you think about bitcoin and cryptocurrencies？” Gates replied:　　“I dont own any. I like investing in things that have valuable output.” Please download WikiBit for more blockchain news.　　He added: “The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments.”　　Gates stance on cryptocurrency echoes that of Berkshire Hathaway Warren Buffett. The Oracle of Omaha explained in detail why he would not invest in bitcoin or cryptocurrency earlier this month.　　“It doesn‘t produce anything,” Buffett described BTC, noting that he wouldn’t pay $25 for all of the bitcoin in the world. “What would I do with it？ I‘d have to sell it

2022-05-23Deep Dive

Crypto Disaster: Ethereum Co-Founder Vitalik Buterin Claims He’s Not A Billionaire Anymore

The recent crypto market crisis has not only hurt investors, but also notable entrepreneurs, erasing billions of dollars from their fortunes. Vitalik Buterin, co-founder of Ethereum, is one example.　　In 2014, the 28-year-old founded Ethereum, a leading cryptocurrency by market capitalization.　　Buterin revealed on social media on Friday that he is no longer a billionaire. After hitting a high of over $4,800 in November of last year, the digital currency has lost 60 percent of its value. ETH is currently trading at $1,972, as reported by Coinmarketcap.com.　　In response to a tweet about other billionaires — Elon Musk and Jeff Bezos, who are at the top of the list of the richest individuals — he admitted this.　　In 2014, Vitalik and a number of other engineers, notably Charles Hoskinson (creator of Cardano) and Joseph Lubin, established the Ethereum platform. Vitalik possesses a digital wallet whose ETH contents were valued approximately $1.5 billion in November.Youngest Crypto Billionaire　　In 2021, as the price of Ethereum surpassed $3,000, Buterin became the youngest crypto billionaire.　　However, this trend has since reversed, and ETH is currently straining against the tide. Despite this, it is the second-largest cryptocurrency in the world, with a market valuation of about $300 billion.　　Friday in another tweet,

2022-05-22Deep Dive

CZ Recommends Diversifying Investments Even Though He's 'All in' Crypto and Bitcoin

Binance CEO Changpeng Zhao took to Reddit earlier today to discuss a variety of topics, including investment advise that he gives but doesnt necessarily follow.　　“Investment wise, I am not a good example. I dont diversify,” Zhao said. “I recommend most people to diversify. But for me, I am all in Binance.”　　He added that hes “all in crypto, BNB, and BTC. I use my Binance Card everywhere I go.”　　The 44-year-old, who previously worked at the Tokyo Stock Exchange developing trading systems and at Bloomberg Tradebook on futures trading systems, began Binance in 2017. According to Forbes, he holds a total of 30% stake in the company and currently is the 19th richest person in the world, with a net worth of $17.4 billion.　　In a wide-ranging AMA—that apparently was taken down shorty after it finished—Zhao answered a variety of questions, including Binances decision to trade LUNA despite its collapse, how Binance handles user funds, and the future of the Binance Chain.　　In a response to a question on why Binance resumed the trading of LUNA, Zhao explained it had been halted because of the network being halted by the validators. He added that it was Binances trading that put pressure on the validators

2022-05-22Deep Dive

Terra Crashed Spectacularly. Here's How It Launched.

TerraForm Labs spent four years building its ecosystem and connecting it to other blockchains before things began to unravel earlier this month. 　　When the TerraUSD algorithmic stablecoin (UST) lost its peg, millions of dollars were wiped out in a matter of days. The coin, which used to carry a redeemable-for-a-dollar guarantee, has been trading for just a nickel. And LUNA, its governance token, which last month had a market cap of more than $30 billion, has seen that metric slip to $680 million.　　The company behind it all got its start in 2018.　　Business partners Do Kwon and Daniel Shin founded Terraform Labs in January, and that April registered it as a private limited share company in Singapore.　　By August, Terraform had completed a $32 million raise that included Translink Capital, Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, and Arrington XRP. Four of the largest crypto exchanges—Binance, OKEx, Huobi Capital, and Dunamu—invested in Terras Layer-0 blockchain as well.　　From the onset, Terra wanted to become a payments giant that could rival the likes of Alipay and PayPal. Shin, the founder of Korean e-commerce giant TMON, would later help bring more than 20 other companies to the table to form the Terra Alliance and

2022-05-22Deep Dive

Russia Trade Minister：Legalizing Crypto Payments Will Happen "Sooner or Later"

Within months, the sentiments to ban cryptocurrencies in Russia have changed dramatically, and at present, key government officials are the ones advocating for ways to incorporate the nascent asset class into the system.　　In a recent revelation, Russias Minister of Industry and Trade Denis Manturov said the move to legalize cryptocurrencies as a means of payment in the country is bound to happen “sooner or later.” The claims were made at a forum Wednesday when the minister was asked whether crypto will become a legal payment method in the country.　　“The question is, when this happens, how it will be regulated, now that the central bank and government are actively working on it,” he replied. “But everyone tends to understand that ... sooner or later this will be implemented, in some format or other.”　　The Russian government and the Central Bank of Russia (CBR) have divergent views when it comes to how cryptocurrencies should be handled. While the government submitted a counter-proposal that will prevent a blanket ban and harsh fines on cryptocurrencies back in February before the ongoing war with Ukraine kickstarted, the stance of the Industry and Trade minister suggests both parties are beginning to shift grounds.　　What Bitcoin Can do for

2022-05-22Deep Dive

Do you have the right to redeem your stablecoin?

Stablecoins are often discussed with regard to their “stability.” It is usually questioned whether a stablecoin is sufficiently backed with money or other assets. Undoubtedly, it is a very important aspect of stablecoin value. But, does it make sense if the legal terms of a stablecoin do not give you, the stablecoin holder, the legal right to redeem that digital record on blockchain for fiat currency？　　This article aims to look into the legal terms of the two largest stablecoins — Tether (USDT) by Tether and USD Coin (USDC) by Centre Consortium, established by Coinbase and Circle — to answer the question: Do they owe you anything？Tether　　Article 3 of Tethers Terms of Service explicitly states:　　“Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves. Tether makes no representations or warranties about whether Tether Tokens that may be traded on the Site may be traded on the Site at any point in the future, if

2022-05-21Deep Dive

A16z Launches $600 Million Web3 Gaming Focused Fund

A16z Doubles Down on Gaming　　Executives at a16z seem to be enticed by the intersection of metaverse, Web3, and gaming happening now in the industry. The company has announced the launch of a $600 million gaming fund called Games Fund One, which seeks to power startups in the industry in three key sectors, including gaming studios, gaming relationships, and infrastructure building.　　The fund, according to the company, bases its operation on the belief that “games will play a pivotal role in defining how we socialize, play, and work over the next century.” This is a natural step up from the investments that the company has made in traditional and Web3 gaming startups, including Epic Games and companies like Metatheory and Sky Mavis.　　On how the fund might help their portfolio startups, the company stated:　　We will continue to add more functions and develop deeper networks that are tailored to the games ecosystem so we can help our portfolio companies with everything from building digital communities, to managing their virtual economies, to IP licensing best practices, to helping build their development teams.A Metaverse Opportunity　　A16z supports the idea that these investments will also be key to the development of the metaverse, an alternate world in which

2022-05-21Deep Dive

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