Altcoins Analysis Bitcoin Blockchain

Most Influential Asians in the Blockchain Space

Most Influential Asians in the Blockchain Space

The blockchain and cryptocurrency markets have experienced rapid expansion in recent years. The crypto market has seen an unparalleled rise in users across countries worldwide, from big institutional investors to small retail investors, users seeking huge profits to people looking for safer, less expensive alternatives to bank transactions. Asia has been identified as a center […]

Altcoins Bitcoin Crypto News

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

Altcoins Analysis Bitcoin Blockchain

CoinLoan and Elliptic Collaborate to Strengthen User Crypto Security

Elliptic and CoinLoan Collaborate to Strengthen User Crypto Security

Elliptic, a leader in the field of crypto asset risk management solutions, has joined forces with CoinLoan, the only crypto lending platform with EU licensing. As acceptance and investments in cryptocurrencies grow, so do the hazards associated with cybercrime as criminals find new ways to defraud investors of their digital money. CoinLoan and other cryptocurrency […]

Crypto News

Crypto Meltdown Calls for a Decentralized Compliance Layer to Protect User Interest

Over the last few weeks, the cryptocurrency market has been rocked by extreme volatility. There has been a steep decline in the price of digital assets. Such has been the meltdown in that the entire market cap has fallen under $1 trillion, which surpassed the $3 trillion mark at the peak of the bull cycle. Being a nascent market means high volatility is a common phenomenon at this stage of growth. That said, this volatility has made crypto so attractive to investors and speculators. However, volatility doesn’t always mean just a significant upside but also a remarkable downside. And that’s what we are seeing in this fourth crypto cycle, so all this carnage is not unprecedented. In fact, a 70% to 80% drop in Bitcoin and Ether prices from their all-time highs can be seen as a golden ‘buy the blood’ opportunity to plan for the future with a focus on research and only investing what you can afford to lose. However, we also witnessed this time that the significant drawdown in the crypto prices was exacerbated by the lack of proper risk management practices adopted by some of the biggest names in the industry. Extreme Market Conditions One of the biggest centralized lenders in the crypto space, Celsius Network, was among this torrent of bad news as it abruptly froze customer withdrawals, swaps, and transfers between accounts due to what it said were “extreme market conditions.” This pause in withdrawals resulted in more volatility and raised concerns about Celsius’ solvency. It was a liquidity issue, according to the experts, a classic banking problem. Just late last year, Celsius Network raised $400 million in a Series B funding round at a valuation of $3.5 billion. Back in October, the crypto lender had $25 billion in assets from more than 1.7 million users, which fell to around $11.8 billion as of last month. Besides spooking investors and the market, this is catching the attention of the administration and lawmakers during times of economic uncertainty, including high inflation and global market instability. State securities regulators in Washington, Alabama, Texas, Kentucky, and New Jersey are now investigating Celsius Network’s decision to suspend customer redemptions this week. It is expected the proposed regulations to regulate stablecoins by the President Working Group could extend to the entire crypto space in order to “mitigate the risks of these assets.” The PWG report calls for federal regulatory oversight, restricting institutions from lending customers’ digital assets out, and compliance with liquidity and capital requirements. Need for a Better Solution Much like a bank, the centralized lender Celsius was using the crypto deposits from over a million retail customers and investing them in the crypto market, including DeFi but did not apply proper risk management or provide any safety measures to its users. Thus, the market needs a truly decentralized solution that doesn’t obscure how they deal with their funds. Astra protocol is one such decentralized solution that provides a compliance layer for the Web3 economy. In the DeFi sector, undercollateralized loans have been gaining traction. Still, while they offer the benefit of no central control, they carry considerable risks in terms of a lack of asset liquidity and instant payment. Astra’s truly decentralized project onboards traditional players for funding, allowing for lending on the Astra network, and eliminating the need for these under-collateralized loans. By converging the power of Web3.0 and traditional financial ecosystems, Astra Network aims to create the next iteration of decentralization and become the largest network in the industry. Zurich, Switzerland-based Astra basically allows protocols to comply with society’s numerous regulations without giving up the benefits of decentralization or putting investors at risk. Decentralized Compliance Layer Amidst the mainstream global adoption of crypto and the regulatory challenges coming its way, Astra has designed its network to be the only fully KYC (know your customer) compliant decentralized blockchain ecosystem which is available worldwide with the protocol performing all compliance practices. This regulatory compliance is offered across a vast number of DeFi protocols to reassure users that their investments are completely protected while preserving their anonymity. The Astra network further offers its infrastructure to countries and their treasuries to issue financial products such as regulated and sustainable CBDCs bonds and financial instruments while taking advantage of the incredible yield available through digital assets. To achieve this, Astra has equipped all DeFi smart contracts with a fully decentralized compliance layer, including KYC & AML capabilities, and leveraging the expertise of trusted legal firms to resolve real-world compliance issues. To provide the best KYC/AML services available, Astra has developed a unique Decentralized Legal Network (DLN), an ecosystem that contains major, global legal and audit firms. In terms of consensus mechanism, the system that allows distributed systems to work together and stay secure, Astra is using the environmental-friendly Proof-of-Stake (PoS), which is the perfect fit to build a real-world solution for billions of users through its improved scalability and increased transactional throughput. A Vast Network Compliance is not the only feature offered by Astra. The project provides several other services, including enhanced vetting, a dispute resolution platform, AML, and reporting for process feedback and improved procedures. The demand for these services is increasing rapidly as the crypto market continues to onboard more and more people and capital invested in the sector skyrockets. Not to mention all the challenges faced by the industry, such as lack of certainty for smart contracts, recurring derivative contract disputes, high legal risks in connecting real-world assets to the blockchain, and poor management of claims disputes on-chain. Astra here certainly has the potential to gain market fit with its customizable services that offer security in retrieving incorrect transactions, create secure escrow accounts to prevent unexpected withdrawals, provide a decentralized legal layer for user protection, and equip insurance protocols with an in-built claim verification tool. Overall, with its KYC, KYB, and AML services for decentralized organizations, Astra aims to ensure that all DeFi and crypto platforms keep pace with the ever-changing regulatory landscape.   Image by Gerd Altmann from Pixabay

Crypto News

In a Bear Market, Hold Onto Your Coins & Try to Earn More Cryptos

Hit by the collapse of Luna and UST, as well as another round of interest rate hikes and balance sheet shrinking by the Fed, cryptocurrencies suffered a market-wide plunge in May 2022, and the market has not significantly rebounded so far. In addition, compared with their historical highs, the prices of Bitcoin and Ethereum have fallen by more than 50%. Meanwhile, other altcoins have suffered bigger falls. The entire crypto market is still going through a bearish period. That being said, will Bitcoin and Ethereum go to zero? The answer is a hard no. As the blockchain technology advances and becomes more widely adopted, a growing number of users have joined the crypto space, and the market cap of Bitcoin has even once exceeded that of Meta (formerly Facebook). Meanwhile, some conventional institutional investors are venturing into the crypto market, and Bitcoin appears on the balance sheet of an increasing number of listed companies. More and more institutions are paying close attention to the function of Bitcoin and Ethereum as hedging tools, and some countries have even adopted Bitcoin as their legal tender. According to the general trend, a growing number of individual users, companies, and governments will adopt Bitcoin. Moreover, during the past decade, Bitcoin has witnessed all sorts of attacks and smears. It has even been banned by some state regulators. Despite all that, Bitcoin has survived with great tenacity, which is sufficient proof of its ability to withstand tests and challenges. Additionally, more investors are starting to notice the value of Bitcoin. As crypto categories such as DeFi, NFT, and the metaverse boom over recent years, the crypto market has been driven to a whole new level. In today’s market, people can profit not only from direct investments but also from a growing number of crypto-based financial services. As the relevant products mature, more investors are flocking to crypto finance. Therefore, we can draw two basic conclusions: 1) The crypto market will not diminish. On the contrary, an increasing number of global users will adopt cryptos, and the user base of cryptocurrency will keep expanding; 2) The overall price trend of Bitcoin will remain flat. In other words, the price fluctuations will not be as significant as its previous records, which is to say that the BTC price would not go down by much. As such, you do not need to panic if you are holding mainstream cryptos because they are likely to become more valuable according to past market cycles. In our view, the best strategy in a bear market is to hold onto your cryptos and do nothing. Meanwhile, we also advise you to seek to expand the cash flow to ensure the source of income and buy more crypto at low prices. Although some say the best bear strategy is to hoard cryptos, a better approach is to earn more cryptos with one’s existing holding, which resembles earning interests on bank deposits. Right now, many crypto exchanges have launched products focusing on crypto finance, and we can choose a suitable product according to our own needs. What are the indicators to consider when we choose a crypto finance product? Security is the No.1 priority. In the crypto market, the significance of security cannot be overstated, and leaving deposits in an unsafe environment for small profits frequently results in huge losses. For example, some exchanges run by scammers use high returns as the bait to trick users into making crypto deposits. Users are tempted by the financial product’s promise of high returns, yet the scammers are targeting their deposits. In the crypto space, a lot of users have suffered enormous losses when trying to earn small profits. That is why we must choose a safe exchange. As we all know, many crypto exchanges have suffered security breaches, and even some of the top exchanges have lost huge amounts of Bitcoin, incurring losses in user assets. CoinEx, on the other hand, is one of the few exchanges that have never been hacked. Haipo Yang, the founder of CoinEx, once said that safety is always the most essential promise of CoinEx as well as its core advantage. As CoinEx always puts users first, the products it developed have kept users’ assets safe and secure, earning the exchange extensive user recognition. When foraying into crypto finance, we can go with CoinEx, a zero-accident exchange. With Financial Account, a product introduced by CoinEx that provides interests for deposit holders, users can receive daily returns simply by depositing their idle assets into the Account, with compound interests settled on a daily basis. In addition, such compound interests come from 70% of the revenue generated by crypto loans in margin trading, which is a stable and reliable source. Although the financial services provided by some exchanges offer high returns, there are often many strings attached. For example, many of these services require a minimum deposit period of 30 days, 60 days, or even longer. In contrast, CoinEx’s Financial Account does not require any minimum deposit period, and users can deposit/withdraw cryptos at any moment. What are the advantages of on-demand deposits/withdrawals? Cryptos are subject to significant price volatility, and a cryptocurrency can sometimes plunge by over 20% within a week. If we choose a crypto finance product with a minimum deposit period (e.g. 7 days), then once the price plummets, we will find it hard to withdraw our deposits or sell the cryptos to minimize losses. Considering the huge risks involved, the small profits generated by such financial products are apparently not worth it. With CoinEx’s Financial Account, users can deposit/withdraw cryptos anytime they’d like to, which means that they could swiftly withdraw their deposit in the event of significant market volatility while earning profits. Apart from that, Financial Account features no minimum deposit amount, and users can choose to deposit whatever they want. A crypto bear is nothing to be afraid of because it allows us to hoard cheap bargain chips. As such, when a bear comes, we should continue to expand our cash flow. While stocking up on more cryptos with rational strategies, investors also need to deposit their holdings to secure exchanges for financial management and wait for the next crypto bull.