Altcoins

Internet of Things (IoT) Blockchain Project Surges After Crypto.com Listing

An Internet of Things crypto project has surged after a surprise listing from a prominent exchange. Crypto.com rolled out support for Meta X Connect (MXC) on Tuesday, sending MXC’s price soaring nearly 17%. MXC is also up 8.44% in the past 24 hours. Meta X Connect, recently rebranded from MXC Foundation, wants to build a […]

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Are Small Cap Crypto Assets Rebounding A Sign Risk Appetite Returning?

The crypto market just saw some slight recovery, but the performances are upside down. Opposite to the way sellouts usually play out, the Bitcoin dominance dropped dramatically as the asset is underperforming the Small Cap index. From last November’s $3 trillion market cap, the crypto market is now down to around $800 billion: Smaller Altcoins Make A Strong Comeback Last week the crypto market saw its bottom, followed now by some slight recovery. As per Arcane Research’s latest weekly report, the smaller altcoins have also been seeing red numbers with the Small Cap index shedding 27%, but it has been the best performer overall. In contrast, Bitcoin had dropped 35%. Through this small window of relief during June, we have seen the blue-chip coin underperform all other indexes. As a result, BTC’s dominance in the market fell -1,51% this week to 43,5% while Ether fell -0,31. The latter has been declining since May from 19.5% to 15%. What’s Making This Crypto Winter Colder The report notes that the primary driver of this crypto crash has been the hedge fund Three Arrow Capital (3AC) collapse. Having invested over $200 million in Luna Foundation Guard’s token sale, 3AC’s liquidity ended up being wiped out and its margin call was the last straw for the already pressured market. Related Reading | How Long Will The CryptoWinter Last? Cardano Founder Provides Answers As per the Wall Street Journal, the crypto hedge fund hired legal and financial advisers to help work out a solution for its investors and lenders. The firm is looking for a way out, “including asset sales and a rescue by another firm”. The prognostic is not very positive at the moment, seeing the wave of liquidations and mitigations of losses by crypto exchanges that have followed the collapse. “We were not the first to get hit…This has been all part of the same contagion that has affected many other firms,” Kyle Davies, 3AC’s co-founder, said in an interview. Arcane Research explained that “In periods of insolvency, creditors unwind the most liquid assets first, which is likely the root cause of BTC and ETH’s relative underperformance in the last week.” The report adds that “illiquid altcoins are more challenging to sell at size, particularly during pressuring times, which explains why smaller coins have experienced less excessive selling pressure in the last week”. Meanwhile, Microstrategy CEO Michael Saylor described the events around this winter as a “parade of horribles” in which the consequences of lack of regulation in the crypto field have made it possible for wash trading and cross-collateralized altcoins to weigh down on Bitcoin. “What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin.” “The general public shouldn’t be buying unregistered securities from wildcat bankers that may or may not be there next Thursday,” Saylor added, slamming at the recent collapses and suggesting that future actions by regulators could prevent the level of volatility that BTC is now experiencing. Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

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The Metaverse Founders Club Wants To Unlock Cross-Metaverse Interoperability To Provide A Better User Experience

A growing interest in Web3 and metaverse development has created a schism. While there are many virtual experiences for users to explore, they all create gated communities. However, that will all change with the inception of the Metaverse Founders Club, a new project by Metametaverse and anitya.space. Unfracturing A Divided Virtual World There is no shortage of projects building their metaverse or virtual world with the help of blockchain technology. Various networks and layers offer the necessary tools for builders to begin creating their next-generation products or projects. However, there are many different worlds incapable of communicating with one another. It creates a long hallway of doors for players to explore, creating a less-than-ideal introduction to what the metaverse is all about. The Metaverse Founders Club aims to change that situation for the better. It is a collaborative project where founders of virtual worlds can come together to focus on cross-metaverse opportunities. The first example of such a cross-world effort is a virtual scavenger hunt, kicking off later in June. Participants will solve puzzles in one world to unlock access to the next metaverse, showcasing the potential when interoperability takes center stage. Metametaverse CEO Joel Dietz explains why collaboration is key in Web3 development: “You need dedicated people, honest people, hardworking people, folks with vision, and a willingness to adapt to the market conditions and work past regulatory barriers. So basically, it’s all a people problem in the end, and it is tricky to find all the attributes you want in a single person or team.” The Metaverse Founders Club will bring together teams from the many Web3 projects in development today or developed in the future. Its initial members represent projects like Metametaverse, Anitya.space, Space, Terra Virtual, GoDot, NFT Oasis, Spatial Web Foundation, and MetaverseTalks. More members are welcome if they are an executive or significant owner of a metaverse or related technology used to establish a private members area and/or puzzle as part of a virtual scavenger hunt. The Metaverse Founders Club Journey With the help of these eight initial members, the Metaverse Founders Club will promote interoperability between projects and virtual worlds. Doing so will, per Joel Dietz, help optimize the user experience for people entering the metaverse for the first time. If this technology is to gain mainstream traction, there needs to be a better user-oriented entryway to explore different worlds, rather than forcing people to be “on the right chain with the right wallet”.  Metametaverse CEO Joel Dietz states: “Who wants to wake up in a metaverse future dominated by a few corporations? We envision this club to be a space for an optimist and collaborative  future where we hopefully together are able to build critical infrastructure to make sure the metaverse stays open, accessible and playful.” The initial Founders Club members will come together every quarter and have a monthly consortium. All initial rules – called bylaws – can be updated during the consortium, with proposals submitted and voted on three days before the meeting. The team will shift the focus to the upcoming scavenger hunt across virtual worlds and other cross-world games to enhance the appeal of Web3 development.  

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Circle, The Company Behind The USDC Stablecoin, Announces Euro Coin

Does the world need Euro Coin? There are already stablecoins pegged to the Euro in the market. The difference here, however, is Circle. As the issuer of the well-regarded USDC, they have the reputation, the know-how, and the clientele to make this happen. Even with all of those advantages, it’s the market that will decide if the world needs Euro Coin. Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse On the project’s page, they describe it as, “Euro Coin (EUROC) is issued by Circle under the same full-reserve model as USD Coin (USDC), a trusted dollar digital currency with more than $54 billion in circulation.” At first, Euro Coin will exist on the Ethereum blockchain, it’ll be a traditional ERC-20 already compatible with everything out there. 1/ CIRCLE LAUNCHES EURO COIN: Today, we announced our 2nd major fiat-backed stablecoin, Euro Coin, which went live on Ethereum mainnet, and will be available to mint and redeem on June 30th. https://t.co/vPZkItL0Fu — Jeremy Allaire (@jerallaire) June 16, 2022 The Euro Coin will be “100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros”. The difference with regular euros is that EUROC will be “available 24/7 and moves at internet speed”. The new stablecoin debuts on June 30th. “Businesses can mint Euro Coin straight from the source by depositing euros into their Circle Account using Silvergate’s Euro SEN network.” What’s Euro Coin ’s Main Use? In a recent tweet, Circle CEO Jeremy Allaire summarized the product’s value proposition. “Like USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle”. Does it solve a problem, though? Two words: foreign exchange. 4/ Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases. The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure. — Jeremy Allaire (@jerallaire) June 16, 2022 Back to the project’s page, Circle promises “multi-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally.” As we read a while ago in the Bitcoinist Book Club, “The Bitcoin Standard” explains how that huge market emerges just to solve “the age-old problem of lack of coincidence of wants.” As explained by Saifedean Ammous, the process goes like this: “The seller does not want the currency held by the buyer, and so the buyer must purchase another currency first, and incur conversion costs. As advances in transportation and telecommunications continue to increase global economic integration, the cost of these inefficiencies just keeps getting bigger. The market for foreign exchange, at $5 trillion of daily volume, exists purely as a result of this inefficiency of the absence of a single global homogeneous international currency.” As Circle’s numbers show, since the book’s publication the foreign exchange market kept growing. And since we’re far from living in a bitcoin standard, with a “single global homogeneous international currency,” the foreign exchange will keep growing. And that’s where Euro Coin comes in.  ETH price chart for 06/16/2022 on Kraken | Source: ETH/USD on TradingView.com The New Stablecoin’s Characteristics Where will the money that backs the operation be? “Circle will hold euros in euro-denominated banking accounts at leading financial institutions, beginning with Silvergate Bank in the U.S.” Related Reading | Crypto Company Circle Seeks To Become Global Digital Currency Bank “Businesses can use a free Circle Account to mint and redeem Euro Coin at no additional cost”. Circle can afford to treat businesses like that because they’re that big and established.  Circle will audit the Euro Coin. “Grant Thornton LLP will be issuing monthly attestations of Euro Coin reserves, starting with an attestation for the month of July 2022. Circle will publish the attestation reports on this webpage, with July’s report being available to view online by the end of August 2022.” It’s also worth noting that the main criticism the project received was because they choose Ethereum to start with. However, Circle promises the Euro Coin in other blockchains soon. And considering that USDC exists in every smart contract-enabled blockchain under the sun, there’s no reason not to believe them. Featured Image: Screenshot from Circle’s website | Charts by TradingView

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ARK: “Bitcoin’s Correlation With The S&P 500 Reached” ATH, Opportunity Knocks

This counterintuitive thinking by ARK Investment is the reason why we subscribe to their  “The Bitcoin Monthly” report. While everybody complains about bitcoin’s dance in unison with the stock market, they keep it cool and even frame it as an opportunity. Which it is. It’s not ideal that traders treat bitcoin like a risk-on asset, but there’s certainly logic behind it. Short-sighted people see bitcoin as an investment vehicle and little else. Excited to introduce the first official issue of “The Bitcoin Monthly” Starting this month, ARK will be publishing an in-depth report covering Bitcoin’s market action and sharing where we think the market's headed. Here are the major highlights from this month’s report: — Yassine Elmandjra (@yassineARK) June 3, 2022 In our first article about “The Bitcoin Monthly,” we defined it as: “Over at Twitter, ARK Analyst Yassine Elmandjra described “The Bitcoin Monthly” as: “Starting this month, ARK will be publishing an in-depth report covering Bitcoin’s market action and sharing where we think the market’s headed.” On ARK’s website, they describe the new venture as: “Considering the market’s fast pace of change, ARK publishes The Bitcoin Monthly, an “earnings report” that details relevant on-chain activity and showcases the openness, transparency, and accessibility of blockchain data.” BTC p- S&P500 Correlation | Source: “The Bitcoin Monthly” ARK On Bitcoin’s Correlation With The S&P 500 When the Russia/ Ukraine conflict started, it seemed like bitcoin was not in synch with traditional markets anymore. However, the tide quickly turned. By May, “Bitcoin’s correlation with the S&P 500 reached an all-time high of 80%.” The previous ATH was way back in October 2020, near that magical time when bitcoin woke up from a hundred years’ nap to pass the $20K line for the first time.  "If your time horizon is one month, Bitcoin looks like a volatile asset. If your time horizon is 10 years, it looks like a risk-off store of value." – @saylor I couldn't agree more. — Dr. Jeff Ross (Pleb counselor) (@VailshireCap) June 15, 2022 So, what’s ARK ‘s take on the situation? Well… “Based on fundamentals, we believe bitcoin and most equities should not be highly correlated, highlighting a potentially significant market inefficiency.” A “significant market inefficiency” is an investor’s wet dream. It means that you’re seeing something that the market’s not. It means opportunity. If you play your cards right, it could mean money. How to use that “significant market inefficiency” in your favor, that’s another question altogether. Take into account that “Bitcoin still faces an uncertain macro environment, as the global economy shows signs of a recession,” though. Let’s also take into account these recent words by MicroStrategy’s Michael Saylor, “If your time horizon is one month, Bitcoin looks like a volatile asset. If your time horizon is 10 years, it looks like a risk-off store of value.” Apparently, bitcoin traders suffer from high time preference. And that probably explains the correlation with the S&P 500. BTC price chart for 06/16/2022 on Binance | Source: BTC/USD on TradingView.com Arcane Research Weights In ARK isn’t the only game in town. Our friends at Arcade Research have the most recent information regarding bitcoin’s correlation with the S&P 500, “BTC followed U.S. markets closely on Friday and, in extension, also during this weekend. However, as prices plummeted, new ghosts emerged, and the dangers of impactful insolvencies have contributed to further drag on the crypto market,” they say in “The Weekly Update’.” When Arcane Research says “ impactful insolvencies,” they certainly refer to the Celsius case. “While the crisis in Celsius has contributed to putting a further drag on the market, the initial catalyst was the inflation surprise in the U.S. We note a decline in the 90-day correlation between BTC and S&P 500. However, short-term correlations grew heavily following Friday’s inflation news – with the market preparing for more hawkish policies enacted by the FED.” The fact of the matter is that bitcoin’s price is determined at the edges of the network. And high time preference people are trading there. And if they want to treat bitcoin as a risky asset, there’s nothing anyone can do about it. Except, somehow, taking advantage of the opportunity it brings. Featured Image by Sergei Tokmakov Terms.Law from Pixabay | Charts by TradingView and “The Bitcoin Monthly”

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Shark Tank Investor Kevin O’Leary Details Crypto Holdings, Name-Drops Bitcoin, Ethereum, Solana and Additional Altcoins

Shark Tank star and billionaire investor Kevin O’Leary is sharing his latest crypto investment strategy in the wake of volatility affecting most asset classes. In a new interview with the Bankless podcast, O’Leary explains how he abides by the general rules of portfolio theory when allocating capital for cryptocurrency investments. “I’ve been layering in now […]

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