Category Archives: Cryptocurrency
Top 11 cryptocurrency trends to look out for in 2023-24 – Investing.com India
From the inception of in 2009 to the DeFi revolution in 2020 and the rise of NFTs in 2022, cryptocurrencies have come a long way in the past decade or so. With the crypto market constantly evolving, 2024 promises to be an even bigger year for cryptocurrency, investors and enthusiasts in terms of the emerging industry trends. In this article, we will explore the top 11 cryptocurrency trends to keep an eye on in the coming year.
Cryptocurrencies have emerged as one of the most innovative creations of our time, changing the way we perceive finance and challenging traditional economic systems. A type of digital asset, cryptocurrencies are based on blockchain technology and provide a means for performing peer-to-peer financial transactions (without intermediaries) across the globe.
In formal terms, cryptocurrencies are decentralized digital currencies that operate on the blockchain, a distributed ledger technology. Blockchain is a distributed network of computers (nodes) where the exchange of information is completely peer-to-peer and without any middleman or centralized entity like banks or governments. Satoshi Nakamoto, the anonymous creator of Bitcoin, dreamt of a trustless system that eliminates the need for intermediaries when performing financial transactions, especially cross-border payments.
As we look into the future, the role of cryptocurrencies is expected to be even more pivotal given the possibility of a significant rise in fraud and corruption in financial transactions. With their potential to transform everything from how we conduct financial transactions to our approach to digital ownership and identity verification, cryptocurrencies are all set to give birth to a new financial system, one where individuals are in complete control of their finances without the need to rely on third parties. This article explores the latest and emerging trends in the crypto space that can shape our worlds future in years ahead.
Central banks around the world are already exploring the potential and possible impacts of issuing their own digital currencies. CBDC, which stands for Central Bank Digital Currency, is a type of cryptocurrency that is backed by a state government. The development and adoption of CBDCs are expected to expand in 2024 given the rising interest of worlds governments in blockchain tech. If and when this happens, traditional financial systems and payments will be changed forever.
Decentralized Finance (DeFi) refers to a financial system based on a decentralized tech like blockchain. DeFi gained significant attention over the past few years, especially in 2020, which is said to be the year of DeFi. In the coming year, we can expect further growth in the DeFi space with the development and launch of new DeFi projects seeking improved scalability and security and boosting overall user experience. Concepts like decentralized exchanges (DEXs) and blockchain-based lending and borrowing are likely to get more attention.
Non-fungible tokens (NFTs) have already become famous as a way to tokenize and trade digital assets like gifs and videos. In 2023, NFTs are expected to move beyond digital assets and venture into physical assets such as real estate and intellectual property, allowing more creators to tokenize and monetize their work and buyers/investors to have fractional ownership of high-value physical assets.
Interoperability between different blockchains remains a big issue in the crypto space. Projects that address this concern are expected to rise above others in 2023. Cross-chain solutions like and Cosmos that facilitate enhanced communication between blockchain will help improve the efficiency and functionality of the entire ecosystem by allowing different blockchains to operate together and enabling sharing of data and assets between them.
Privacy coins are cryptocurrencies created with a focus on enhanced user privacy. With privacy concerns growing, coins built on privacy are expected to gain wider adoption in the coming years. They may also be a topic of interest because of the regulatory developments concerning privacy coins. Next-gen privacy coins might help resolve issues like traceability and the anonymity of cryptocurrency transactions.
Cryptocurrency mining has forever been subject to environmental concerns due to the amount of electricity used and pollution caused by this industry. This has led the crypto community to look into the development of greener and more sustainable blockchain solutions. Be ready to witness more eco-friendly initiatives, including the creation of energy-efficient consensus mechanisms in 2024. Alternatives such as Proof of Stake (PoS) and hybrid consensus tools will see new revolutions in a bid to further reduce energy consumption.
Even after more than a decade of bitcoin evolution, cryptocurrencies remain far from mainstream access. People only have limited options to use cryptocurrencies in their daily lives. This is, however, changing fast with the introduction of new blockchain projects and ecosystems working towards boosting the global adoption of blockchain tech. REXX, for example, is a blockchain-based project developing an ecosystem of decentralized apps (dApps) and blockchain platforms to provide solutions for various challenges across industries like gaming, online payments, supply chains, news, and more, making blockchain-based inventions more accessible for consumers and businesses around the world.
Cryptocurrency regulations are changing all over the world. More countries are expected to form clear regulatory frameworks around crypto transactions and ownership in the coming years. This may very well change the future of the crypto industry. Clarity in regulatory developments will pave the way for legitimizing the cryptocurrency industry and ensuring improved protection for investors by reducing speculation.
Scalability has been a prominent issue for blockchain and other blockchain networks. New-age solutions like Lightning Network for Bitcoin are expected to boost scalability and allow for more flexible transactions at a reduced cost. Scalability has been a major concern stopping the general adoption of cryptocurrencies like bitcoin. Projects called Layer 2 solutions will help solve or ease the concern by allowing for off-chain processing of transactions off-chain, which are then settled on the main blockchain, thereby reducing transaction costs and improving speed.
has been the main driving force behind the success of smart contract technology, but even it is limited by concerns such as scalability and efficiency. In 2024 and beyond, we can expect the launch of new, improved smart contracts with improved security, efficiency, and scalability. Smart contracts are a vital part of the blockchain ecosystem, providing a means for performing middleman-free transactions.
DAOs are decentralized organizations created, run, and managed by communities. There is no central authority or ownership in DAOs, ensuring participants have full control and transparent access. In 2024 and beyond, we may see the rise of DAOs across many industries, enabling a more user-controlled and transparent approach to decision-making.
The cryptocurrency industry has changed a lot over the past decade or so and is poised to change even more in the coming years. The new year is expected to bring many significant developments and revolutions in the crypto space, both for providing solutions to existing problems and to create new ways for the masses to adopt and benefit from the blockchain revolution. From NFTs to DeFi ecosystems and eco-friendly crypto solutions, be ready to witness a new era of blockchain.
Whether you're an investor, developer, or an existing or potential crypto user, the blockchain market in 2024 is going to bring many opportunities for everyone. Keep an eye out for these trends.
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Top 11 cryptocurrency trends to look out for in 2023-24 - Investing.com India
Robinhood to launch crypto trading in EU even as cryptocurrency revenue slides almost 26% from last quarter – Fortune
Robinhood, the popular online stock brokerage perhaps best known for its role in the memestock craze of early 2021, announced in its third-quarter earnings report on Tuesday that it plans to launch crypto trading in the European Union in the coming weeks.
Looking ahead, we remain focused on providing industry-leading products that serve far more of customers financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better, Vlad Tenev, CEO and cofounder, said in a statement.
The brokerage apps planned expansion of crypto trading, currently only available in the U.S., into Europe, however, accompanied a slide in in the platforms overall crypto trading revenuefrom $31 million in the previous quarter to $23 million, a 26% drop. Compared year-over-year, Robinhoods decrease in crypto revenue was even more dramatic: a 55% downswing from $51 million in 2022.
The number of crypto assets held on behalf of customers decreased about 11% from the previous quarter, from $11.5 billion to $10.2 billion, but there was a 9% year-over-year increase from $9.4 billion.
In addition to the crypto downtick, Robinhood reported a 4% decrease in revenue from the previous quarter, from $486 million to $467 million. The companys loss of $85 million for the third quarter, a per-share loss of nine cents, was below analysts estimates of two cents. In the second quarter of 2023, Robinhood posted a profit of $25 million. Shares plummeted as much as 7.5%, to $9.03, in after-market trading.
Robinhoods plan to expand crypto trading into Europe follows the companys announced expansion into the U.K. earlier this year. It is also one of the more ambitious crypto announcements to come out of the firm since it unveiled its crypto wallet in 2022, especially as the brokerage has scaled back offerings in the U.S. following enforcement actions from the Securities and Exchange Commission.
In June, the SEC sued Coinbase and Binance, two of the worlds biggest crypto exchanges, and argued that they allowed users to trade unregistered securities, including the tokens for the Solana, Polygon, and Cardano blockchains. Days later, Robinhood delisted the tokens from its crypto trading platform.
And in August, Robinhood and Jump Crypto, one of the largest market makers for crypto that has earned scrutiny from SEC for its association with TerraUSDs creator Do Kwon, were reportedly no longer in business together.
When asked about the downturn in the crypto market on an investor call following the third-quarter earnings release, Tenev, the CEO, said that we are focused on using this as an opportunity to build our capabilities to build our platform.
However, he said he believes that the expansion of crypto trading into Europewhere regulatory clarity, he said, will allow Robinhood to offer a different set of assets compared with the U.S.will open up the brokerages crypto business to hundreds of millions of new users.
As for the U.S., Tenev said Robinhood is still waiting for guidance from the government. It would be a shame, he said, for innovation in the cryptocurrency market to be coopted overseas.
Update, Nov. 7, 2023: This article has been updated with additional comments from Tenev.
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Robinhood to launch crypto trading in EU even as cryptocurrency revenue slides almost 26% from last quarter - Fortune
Expect new IRS crypto surveillance to come with a surge in confiscation – Cointelegraph
As the Internal Revenue Service (IRS) pushes forward with its proposal to increase cryptocurrency surveillance, a past report might offer a clue for how this information may be used in practice. In short, with the IRS set to keep tabs on Americans cryptocurrency usage through an expected 8 billion new returns, it seems the Department of Justice (DOJ) may soon have the tools it wants to start confiscating cryptocurrency at an unprecedented rate.
The issue stems from a 2022 report written by the DOJ in response to Executive Order 14067. For those who might not remember, Executive Order 14067 was President Bidens first major cryptocurrency initiative. Although many people initially feared an impending crackdown was coming, the executive order largely delayed making sweeping changes by first calling on agencies to issue reports to inform future policies around cryptocurrency and related issues.
The report, written by the DOJ, covered a vast range of topics. Largely falling into four categories, the recommendations spanned ways to aid prosecutions, ways to improve investigations, ways to expand penalties for cryptocurrency-related crimes, and ways to increase the resources available for government employees.
Related: Bitcoin beyond 35K for Christmas? Thank Jerome Powell if it happens
Whats most interesting for the present conversation, however, is where the DOJ argued for increasing its ability to seize cryptocurrency.
For example, the report states that it is critical that the United States have the authority to forfeit the proceeds of cryptocurrency fraud and manipulation as a means of deterring such activity and divesting violators of their ill-gotten gains. Therefore, the DOJ recommends expanding its authority over criminal, civil, and administrative forfeiture.
The DOJ has claimed these updates are necessary because the departments experience with cryptocurrency-related cases has revealed limits on the forfeiture tools used to deprive wrongdoers of ill-gotten gains and, in certain cases, restore funds to victims.
Yet this argument is difficult to understand considering how much and how often the government has been able to seize cryptocurrency over the years. In fact, the report itself mentions such cases. Between 2014 and 2022, the FBIseizedaround $427 millionin cryptocurrency. The IRSseizedanother $3.8 billionbetween 2018-21.
With more than $4 billion on hand, the DOJs argument that the U.S. government is struggling to seize cryptocurrency is just not as apparent as the reports recommendations make it out to be.
Related: IRS proposes unprecedented data-collection on crypto users
Still, the IRSs broker proposal puts the DOJs report into a new light given the vast surveillance that the proposal would likely create vast surveillance that could be used to start confiscating cryptocurrency at an even greater rate.
The problem is whats referred to as administrative forfeiture. As Nick Sibilla explained in Forbes when the report first came out, Under administrative or nonjudicial forfeiture, the seizing agency not a judge decides whether a property should be forfeited. In other words, agencies do not need to prove to a judge that a crime was committed in order to seize the property.
The DOJ commended this process for promoting an efficient allocation of government resources while discouraging undue burdens on the federal judicial system. In fact, this process seems to be the DOJs preferred practice given that administrative forfeitures made up 78 percent of its forfeitures between 2000 and 2019.
With the IRS collecting vast amounts of new information on Americans cryptocurrency use, its possible that the DOJ may suddenly find vast new arenas for cryptocurrency confiscation. And again, its important to stress that these confiscations dont have to start with an actual crime being committedjust the mere suspicion.
Given how often misunderstandings surrounding cryptocurrency have fueled headlines, its not difficult to imagine how such suspicions could emerge. For example, it was less than a month ago that more than 100 members of Congress cited a flawed report to call for a crackdown on cryptocurrency.
Considering the IRS proposal in this light helps to showcase one of the major risks of mass data collection. Whether its the DOJ seeking to expand its confiscation activities, the IRS looking to increase audits, or a hacker seeking out an exploit, massive government databases create tempting targets for both internal and external abuse.
If the IRS pushes forward with its proposal, cryptocurrency users should keep a careful eye on how that data is ultimately used by the government at large.
Nicholas Anthony is a policy analyst at the Cato Institutes Center for Monetary and Financial Alternatives. He is the author of The Infrastructure Investment and Jobs Acts Attack on Crypto: Questioning the Rationale for the Cryptocurrency Provisions and The Right to Financial Privacy: Crafting a Better Framework for Financial Privacy in the Digital Age.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Expect new IRS crypto surveillance to come with a surge in confiscation - Cointelegraph
The role of cryptocurrency in financing terrorism – PBS NewsHour
Ali Rogin:
Experts in terrorist financing say the military wing of Hamas was an early adopter of cryptocurrency soliciting Bitcoin donation starting in 2019. Hamas told supporters that the transactions were anonymous, but all cryptocurrency exchanges are recorded on a public ledger called a blockchain, that allowed the Department of Justice to confiscate 150 crypto accounts associated with Hamas al-Qassam brigades in 2020.
In April 2023, Hamas announced it would stop Bitcoin fundraising efforts, but as the Treasury Department's new sanctions show, terrorist groups, including Hamas, al Qaeda and ISIS are still finding ways to use cryptocurrency exchanges to raise and launder money and evade detection.
I'm joined now by Ari Redbord. He's the Global Head of policy at TRM Labs, a blockchain analytics company that helps protect organizations against crypto related fraud and financial crime. He's also a former senior Treasury official, and a former federal prosecutor. Ari, thank you so much for joining us.
Ari Redbord, Global Head of Policy, TRM Labs: Hey, thank you so much for having me.
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The role of cryptocurrency in financing terrorism - PBS NewsHour
Coinbase blocked in Kazakhstan amid tighter cryptocurrency … – Investing.com
Investing.com|EditorAmbhini Aishwarya
Published Nov 07, 2023 08:06AM ET
Kazakhstan's Ministry of Culture and Information has taken a decisive step in its ongoing efforts to regulate the burgeoning cryptocurrency market, blocking access to global cryptocurrency exchange, Coinbase (NASDAQ:COIN). The move follows the implementation of the Law on Digital Assets initiated in February 2023, which mandates digital currency activities to secure a license from the Astana International Financial Center (AIFC).
The blockage, reported by local news outlet Kursiv, is part of a broader strategy by the Kazakh government to manage digital assets and introduce a Central Bank Digital Currency (CBDC). The so-called "great Kazakh investment firewall" has been causing access issues to Coinbase and other exchanges like Kraken since September.
Several exchanges, including Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT have managed to secure approval from AIFC, thereby ensuring their continued operation within the country. However, Coinbase's failure to comply with these licensing requirements has resulted in its current blockage.
In addition to exchange regulation, Kazakhstan's strict rules also extend to its prominent mining sector. In October, eight major crypto-mining firms penned an open letter to President Kassym-Jomart Tokayev, highlighting a "very distressful situation" due to high energy costs.
The implications of this blockage are significant for both Coinbase and its Kazakhstani users. With a surge in cryptocurrency interest and usage in the country, users will no longer be able to trade or access their accounts on the platform. The response from Coinbase regarding this regulatory action is yet to be seen.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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TRON and Pundi X Collaborate to Boost Cryptocurrency Adoption with XPOS Integration – Yahoo Finance
Geneva, Switzerland --News Direct-- TRON DAO
Geneva, Switzerland / November 6, 2023 / - TRON, a globally recognized leader in the blockchain space, has taken a monumental step forward by announcing a strategic collaboration with Pundi X, a pioneer in blockchain-based point-of-sale (POS) solutions. Central to this collaboration is the integration of Pundi X's innovative XPOS platform with the TRON network, facilitated by the TronLink wallet. This integration sets the stage for TRON users to seamlessly transact and oversee their digital assets, enhancing the practicality and accessibility of cryptocurrency transactions.
By aligning the robust TRON network with the capabilities of the XPOS device via the TronLink wallet, TRON emphasizes its commitment to fostering widespread cryptocurrency adoption in everyday retail transactions. The XPOS device, admired for its user-centric design and efficiency in processing cryptocurrency trades, will now be geared to support TRON's expansive ecosystem, including its native utility token, TRX, as well as a spectrum of TRC-20 tokens. In supported jurisdictions, this collaboration by TRON and Pundi X promises to bridge the gap between traditional commerce and digital currency, ensuring a seamless and enriching transactional experience for both merchants and consumers.
Prominent Features of the Integration:
- Streamlined Transactions: Users, through their TronLink wallets, can now execute crypto trades utilizing the XPOS device, making transactions effortless in a wide range of physical retail environments.
- A Commitment to Security: Pundi X's innovative technology with the robust security of the TRON network ensures transactions are executed with paramount safety.
Zac Cheah, CEO and Co-Founder at Pundi X expressed his enthusiasm, saying, "Integrating with TRON is a monumental stride towards rendering cryptocurrency dealings to be more streamlined and user-centric. With the XPOS registering a 47% surge in USDT transactions on the TRON network this quarter, our alliance is in perfect sync with our vision of making blockchain technology mainstream for cryptocurrency transactions."
Story continues
Echoing these sentiments, Ecosystem Lead at TRON DAO Dave Uhryniak stated: "Our collaboration with Pundi X is a pivotal move in heightening the practicality and versatility of cryptocurrency usage. Integrating the TRON network with the capabilities of the XPOS device through TronLink wallet solidifies our collective vision of championing the digital payments industry."
The synergy between Pundi X and TRON is poised to reshape how consumers engage with cryptocurrencies in brick-and-mortar settings. This collaboration is a testament to the transformative power of blockchain technology, heralding an era of innovation and convenience in financial systems. Please note that TRON network tokens on Pundi XPOS devices and other Pundi products are geo-restricted and not available to U.S. persons for purchasing or selling.
About TRON DAO
TRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps.
Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network has gained incredible traction in recent years. As of October 2023, it has over 192.59 million total user accounts on the blockchain, more than 6.62 billion total transactions, and over $17.84 billion in total value locked (TVL), as reported on TRONSCAN.
In addition, TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin across the globe, overtaking USDT on Ethereum since April 2021. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. Most recently in October 2022, TRON was designated as the national blockchain for the Commonwealth of Dominica, which marks the first time a major public blockchain partnered with a sovereign nation to develop its national blockchain infrastructure. On top of the governments endorsement to issue Dominica Coin (DMC), a blockchain-based fan token to help promote Dominicas global fanfare, seven existing TRON-based tokens - TRX, BTT, NFT, JST, USDD, USDT, TUSD, have been granted statutory status as authorized digital currency and medium of exchange in the country.
TRONNetwork | TRONDAO | Twitter | YouTube | Telegram | Discord | Reddit | GitHub | Medium | Forum
Media Contact
Hayward Wong
About Pundi X
Based in Singapore, Pundi X was founded in 2017 with the aim of harnessing the power of blockchain technology to make a more secure and inclusive world. Pundi X is a leading developer of blockchain-based point-of-sale solutions, committed to making blockchain technology accessible to mainstream users. The company's XPOS device has been widely recognized for its role in simplifying cryptocurrency transactions at physical retail locations. Pundi X has also been selected as one of the top 50 Innovative Fintech Startups in 2018 by KPMG and H2 Ventures, cool vendors in blockchain business by Gartner, and one of the top 10 fintech leaders by Singapore Fintech Association in 2019. For more information, please visit https://www.pundix.com.
Media Contact
Hayward Wong
View source version on newsdirect.com: https://newsdirect.com/news/tron-and-pundi-x-collaborate-to-boost-cryptocurrency-adoption-with-xpos-integration-784722212
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TRON and Pundi X Collaborate to Boost Cryptocurrency Adoption with XPOS Integration - Yahoo Finance
Fraudulent Ledger Live App in Microsoft Store Linked to $768K … – Blockchain.News
The cryptocurrency community faced a significant security breach when a fake Ledger Live application, titled "Ledger Live Web3," appeared in the Microsoft App Store, leading to substantial financial losses for unsuspecting users. Notorious for mimicking the genuine interface of Ledger's hardware wallet application, this fraudulent software managed to siphon off a sizeable sum before its removal.
Cryptocurrency investigator ZachXBT first brought attention to this scam on November 5, 2023, warning users of the counterfeit application. Analysis of the transactions to the scammer's Bitcoin address (bc1q...y64q) revealed the theft of approximately 16.8 Bitcoins, amounting to around $588,000, through 38 transactions. Further scrutiny indicated an additional address associated with the scheme accumulating roughly $180,000 across the Ethereum and Binance Smart Chain networks.
Microsoft responded by removing the deceptive application following the uproar. However, questions about their app vetting process and accountability have risen, especially since it's not the inaugural instance of such a scam. Reports from victims have intensified the call for stringent app store oversight and highlighted the risks associated with downloading cryptocurrency-related applications from less stringent sources.
The activity in the scammer's wallet commenced with a transaction dated October 24, suggesting a well-orchestrated plan that escalated from November 2. The largest single transfer recorded was $81,200 on November 4. Historical data indicated that the faux "Ledger Live Web3" app was listed on Microsoft's platform as early as October 19.
This event serves as a stark reminder of the dangers lurking in seemingly secure app stores and the importance of rigorous due diligence before downloading any financial management software.
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Fraudulent Ledger Live App in Microsoft Store Linked to $768K ... - Blockchain.News
Cryptocurrency scam worth 2,500 crore uncovered in Indian … – Investing.com
Investing.com|EditorAmbhini Aishwarya
Published Nov 07, 2023 05:40AM ET
The Special Investigation Team (SIT) led by Deputy Inspector General of Police Abhishek Dhullar has been probing a massive 2,500-crore (INR100 crore = approx. USD12 million) counterfeit cryptocurrency scam in the northern Indian province of Himachal Pradesh. The fraudulent scheme centers around a fictitious digital currency named 'Korvio Coin'.
The fraudsters targeted individuals who had received compensation from infrastructure projects, enticing them to invest their funds into the scheme. High-performing agents were rewarded with costly foreign trips, amounting to 3.5 crore for approximately 2,000 trips.
The scam impacted around one lakh investors, including a significant number of government employees. The fraudsters manipulated 'Korvio Coin' prices using fake websites to deceive the investors.
In connection with this case, 18 people have been apprehended so far. Among those arrested are individuals who created chains of investors and profited over 2 crore from the scheme. Some police personnel involved in the scam have opted for voluntary retirement after making substantial gains.
The investigation has now turned its focus towards those who reaped substantial profits from the scam. However, the mastermind behind the operation, identified as Subash, remains at large.
The Himachal Pradesh Police is coordinating with central and financial agencies as well as other state police forces to take action under the BUDS Act, 2019, which carries a penalty of ten years imprisonment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Why have cryptocurrency values rebounded recently and can they get back to previous peaks? – ABC News
Mark Grubski isn't a crypto bro he's a crypto grandpa.
"I am not supposed to be involved in crypto because I am a baby boomer," he says.
"I have to say,I love it."
But it's a fraught relationship, with Mark investing at "totally the wrong time" when prices of these decentralised currencies were at their last peak in mid-2021.
"I was typical investor on a hype," he admits.
The price of the best-known cryptocurrency, Bitcoin, started droppingfrom its record high of around $US65,000 ($102,000) in late 2021.
Eventually, it spectacularly crashed. Other crypto currencies generally followed this trend.
"I was almost crying. It obviously wasn't a good feeling," Mark recalls.
Now there is a glimmer of hope for Mark's nest egg, which today includes about 20 different cryptocurrencies.
Bitcoin one of the "big daddies" as Mark calls it is back up to more than half its peak, tradingaround $US34,000 this week.
Others like Ethereum, Solana and the much-derided Dogecoin are also rising.
The question is whether this is just another boom and bust cycle or cryptocurrency's final moon landing.
As one local fund that helps retail investors get into crypto puts it: "market sentiment is everything".
"We seem to be stepping over some of the negative news," Digital X chief executive Lisa Wade says.
This includes the appearance of Sam Bankman-Fried before United States courts, as the former industry darling deals with the reckoning of the fallout of his fund, FTX.
The collapse of FTX in 2022 added to woes that year from the "death spiral" of the Luna stablecoin.
"We actually crashed and underperformed by about 100 per cent," Ms Wade says.
In recent weeks, Bitcoin was boosted by news that one of the world's biggest asset managers, Blackrock, has applied for a licence to runan exchange-traded bitcoin fund.
"This is a big deal," RMIT Blockchain Innovation Hub's deputy director Dr Darcy Allen says.
Blackrock has not actually confirmed what it will do if it is granted a license by US regulators but its application appears to be a good enough signal for the market.
"What this means for investors is that cryptocurrency markets are likely to have an air of regulatory legitimacy around them," Dr Allen explains.
There have also been moves abroad and in Australia to more tightly regulate cryptocurrencies in a similar way to more traditional financial products.
When FTX collapsed, mum and dad investors in Australia who sunk their self-managed superannuation funds into crypto via firms that dealt with FTX found themselves with little recourse.
Regulators, such as the Australian Securities and Investments Commission (ASIC),have long been warning people that this new-age style of investment is a "wild west".
Last month, the federal government put out a proposal paper recommending that crypto exchanges and platforms be subject to existing financial services laws.
Amongst other changes, that would require exchanges to have Australian Financial Services Licences (AFSL) to operate.
Cryptocurrency initially came about as a decentralised alternative to currencies, such asthe Australian dollar,that are tied to nation statesand regulators.
Diehards still question whether regulation is the right route, because it would mean more intervention.
But those hoping it becomes entrenched in traditional financial markets are welcoming regulation, including Australian fund Digital X.
Its chief executive describes Bitcoin as like any other asset, because it can "store wealth, be exchanged, and traded for credit".
"Not all crypto is created equally. That's why we filter our portfolio from 19,000 down to five, six or seven," Ms Wadesays.
Digital X, which already has an AFSL, doesn't recommend people put more than 5 per cent of their portfolio into this asset class.
Its fund is still underperforming by around 35 per cent.
"It's certainly not for the faint hearted. We wouldn't recommend anybody bet their house on Bitcoin," Ms Wade adds.
As regulation looms, sceptics still dispute crypto's fundamental legitimacy.
"It's a classic speculative bubble," the University of Canberra's John Hawkins says.
He argues that unlike property investment where you get a house that you can live in or rent out, or stocks that are tied to a company which might produce profits cryptocurrencies have no inherent income-generating asset behind them.
"So when people get jittery, the market crashes," he argues.
"It is all based on rumour, and people's hope and people's greed."
He believes the federal government will have a hard time implementing any flagged laws.
"It's all happening in the ether, not in Australia. So it's a difficult task to regulate," he explains.
"Don't gamble money you cant afford to lose is always good advice."
That is also what Mark Grubski now tells others, after buying at the peak taught him a lesson.
After the crash and the partialrebound, the retiree is taking a non-emotional approach to cryptocurrency. He has kept his money in it since the market dived.
"I had to go through the bottom of it, and then we'll see what's going to happen at the top," Mark says.
"It is a good investment. A very, very long-term investment.
"At the moment, I want to make a little bit quicker money and then for the long term buy Bitcoin at the next dip because now I know how to do it.
"In my mind, crypto is giving me that opportunity of still being retired but be actively involved in something tangible.
"I treat it as a legacy that I want to leave for my grandchildren and children."
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Why have cryptocurrency values rebounded recently and can they get back to previous peaks? - ABC News
The Alameda gap and crypto liquidity crisis explained – Cointelegraph
FTX collapse: Unraveling the cryptocurrency crisis of November 2022
In November 2022, the cryptocurrency world was rocked by the collapse of FTX, one of the largest cryptocurrency exchanges. The collapse was triggered by a liquidity crisis at FTX, which was caused by a combination of factors, including mismanagement of customer funds and risky trading practices by FTXs sister company, Alameda Research.
The collapse of FTX had a ripple effect across the crypto market, causing a sharp decline in cryptocurrency prices, a drain of liquidity and a loss of confidence in the crypto industry. It also raised serious questions about the safety and security of customer funds on cryptocurrency exchanges. The crypto industrys lack of risk management standards was exposed through the crisis.
FTX has filed for bankruptcy, revealing a debt of over $3 billion to its creditors. Additionally, the exchange is unable to locate approximately $8.9 billion worth of customer assets. The exact amount of money lost by customers is difficult to determine, as some customers may have been able to withdraw their funds before the exchange suspended withdrawals. However, it is estimated that customers lost billions of dollars in the FTX crash.
The collapse of FTX caused a sharp decline in cryptocurrency prices. The total market capitalization of the crypto market fell from over $1 trillion in November 2022 to under $800 billion in December 2022. This represents a market collapse of over $200 billion in dollar terms.
SBF saw an opportunity to create wealth at an unparalleled pace by combining the ICO method of token creation and subsequent leveraging.
SBF saw an opportunity to profit by creating a new cryptocurrency exchange that would exploit the shortcomings of existing exchanges. Bankman-Fried began by setting up a quantitative trading firm called Alameda Research.
Alameda Research used sophisticated algorithms to trade cryptocurrencies on a variety of exchanges. Alameda Research was very successful, and it quickly became one of the largest cryptocurrency traders in the world.
In 2019, Bankman-Fried launched FTX, a cryptocurrency exchange designed to be more user-friendly and efficient than existing exchanges. FTX also offered a number of features that were not available on other exchanges, such as margin trading and derivatives trading. However, none of the regulatory controls typically needed by mainstream financial services trading platforms were addressed.
FTX and Alameda Research were closely linked. Bankman-Fried and Caroline Ellison were the CEOs of FTX and Alameda Research respectively. However, Bankman-Fried controlled a majority of the shares in both companies. Alameda Research also used FTX as its primary exchange.
The close relationship between FTX and Alameda Research allowed Bankman-Fried to engage in a variety of fraudulent activities, including:
The scam began to unravel in November 2022 when it was revealed that Alameda Research held a large position in FTT, the native token of FTX.
The report sparked a sell-off of FTX Token (FTT), which caused the tokens price to plummet. It also raised concerns about the financial health of Alameda Research and FTX. This led to a liquidity crisis at FTX, as customers rushed to withdraw their funds from the exchange.
FTX was unable to meet the withdrawal demands, and it was forced to suspend withdrawals. FTX also filed for bankruptcy on Nov. 11, 2022. The collapse of FTX had a devastating impact on the crypto market.
In November, a significant decrease in liquidity within the crypto market was coined as the Alameda gap by blockchain data firm Kaiko. This term emerged due to the notable role played by Alameda Research, the largest market maker during that period.
The Alameda Gap represented a substantial decline in available liquidity, impacting trading volumes and market stability. This phenomenon underscored the influence of major market participants and highlighted the intricate dynamics that govern cryptocurrency markets.
While the FTX episode may have been the last domino to fall in a series of bankruptcies that were filed during 2022, it was easily the biggest event of the year, and it put the industry under a legal and regulatory microscope.
SBF was arrested in the Bahamas on Dec. 12, 2022, after United States prosecutors filed criminal charges against him. He was extradited to the U.S. in January 2023 and went on trial in October 2023.
The arrest and trial of SBF was a major development in the crypto industry. It was the first time that a major crypto founder had been arrested and tried on criminal charges. Bankman-Fried was charged with seven counts of fraud and conspiracy.
The key witnesses for the prosecution were:
Ellison, Singh and Wang all pleaded guilty to multiple charges and cooperated with the prosecution. They testified that Bankman-Fried knowingly misled investors and customers about the financial health of FTX and Alameda Research. They also testified that Bankman-Fried used FTX customer funds to cover losses at Alameda Research and to fund his own lavish lifestyle.
Bankman-Fried was found guilty of all seven charges on Nov. 2, 2023. He faces a maximum of 115 years in prison. Bankman-Fried denied all of the charges against him. He said that he made mistakes but that he did not commit any crimes.
There is often a silver lining with black swan events. A black swan event is one that is impossible to predict and has severe consequences. In the wake of the FTX and Alameda Research scam, several things have gained momentum, and the industry has focused on getting itself regulated. Across the world, regulators and crypto firms have worked collaboratively and consciously to protect investors.
The following are some notable developments in the crypto industry post the FTX crisis:
Investors also need to be vigilant and do their own research before participating in any cryptocurrency exchange-related activities. Investors should look for exchanges that are regulated, transparent and have a good reputation.
Link:
The Alameda gap and crypto liquidity crisis explained - Cointelegraph