A Nigerian Central Bank official reiterated that there’s no ban on individuals trading in crypto.
Banks remain barred from working with crypto companies.
A senior official from the Central Bank of Nigeria (CBN) rejected claims that the bank has ever banned crypto, reported local media outlet Today NG.
The CBN official, Adamu Lamtek, reportedly said that the bank protected the banking sector from cryptocurrencies—it didn’t ban crypto trading itself.
The clarification comes more than a month after Nigeria’s central bank told all banks to immediately cancel their services for customers who buy, sell, or trade cryptocurrencies. It isn’t clear what prompted the bank’s decision.
“The CBN did not place restrictions from use of [sic] cryptocurrencies and we are not discouraging people from trading in it,” Lamtek was quoted as saying in Today NG. “What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”
Lamtek spoke on behalf of the governor of the bank, Godwin Emefiele, and reportedly disclosed this at a recent meeting for journalists held by the bank in the Nigerian city Abuja.
But these words shouldn’t be taken as the Nigerian government endorsing crypto; the Central Bank has no jurisdiction over who can trade cryptocurrencies to begin with, explained Danny Oyekan, CEO of investment firm Dan Holdings and social payments app Coins App.
Crypto is under the jurisdiction of Nigeria’s Securities and Exchange Commission. Back in September, Nigeria’s SEC announced plans to regulate the crypto sector by deeming cryptocurrencies securities until proven otherwise.
Despite the regulatory uncertainty, Nigeria is often called Africa’s Bitcoin Nation as the country’s crypto trading volume outpaces most other countries in the world.
The Post-Ban Nigerian Crypto Industry
It’s been just over a month since the Nigerian Central Bank’s ban on financial institutions dealing with crypto companies came into force.
But the Nigerian crypto industry hasn’t died out. “The industry has shown resilience and quickly adapted by developing peer-to-peer exchanges,” Oyekan told Decrypt. “That’s not an easy feat to accomplish in 1-2 months.”
In response to the ban, OTC deals are still underway and the informal peer-to-peer market is also growing, explained Oyekan.
“So basically, the ban only forced the fiat channels underground.”
Crypto analyst Jason Pizzino is naming two non-fungible token (NFT) assets that he believes have the potential to earn traders massive gains this bull cycle.
In a new video, Pizzino outlines the criteria he uses to decide which NFT projects are still worth investing in as the NFT craze rages on.
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Pizzino recommends traders find projects that have not already gone parabolic. While projects like Chiliz (CHZ), which is sitting just under a $3 billion market cap and has increased in price by 9,000% this year, could still theoretically double in price, Pizzino looks for projects that realistically have room to grow 5, 10 or even 20x this NFT hype cycle.
The trader also notes that one has to look at an asset’s fully diluted market cap as well as its current market cap.
For example, NFT project Ecomi (OMI) currently has a market cap of $1.9 billion, but if one takes a look at what its market cap would be if all its tokens were in circulation, it would be sitting at a $8.5 billion valuation which would place it in the top 15 projects by market cap.
Two projects that Pizzino believes have room to grow and also have relatively small diluted market caps are those that crypto trader Josh Rager recently mentioned as well, Gameswap (GSWAP) and Shroom.Finance (SHROOM).
Shroom is building an NFT protocol for minting and swapping non-fungible tokens (NFTs), and its companion platform Gameswap specializes in allowing gamers to trade in-game assets.
Pizzino notes that both projects, even if they reached half the market cap that popular gaming token Enjin (ENJ) has, they could each grow by 15 and 20x.
“That’s why these look a hell of a lot more appetizing than getting into OMI or whatever the other tokens we just looked at.”
In particular, the trader notes that it is “still early days” for Gameswap (GSWAP) at it is sitting just above a $20 million dollar market cap.
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Research firm Santiment has determined that Ethereum’s supply radius on exchange platforms is at a 28-month low. With 20.1% of ETH in its reserves, the last time the metric was at similar levels was in November 2018.
Source: Santiment
Above is a look at the relationship between the increase in Ethereum supply on the exchanges and fluctuations in its price. ETH’s rally in recent months corresponds to a sustained decline in this metric.
Ethereum is trading at $1,808 with bearish performance in the 24-hour chart. However, in the last hour ETH is showing an uptrend with 0.3% gains, after a week of negative performance. If the cryptocurrency manages to stay above the current level it could gain more momentum and go after resistance at $1,850.
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Two sectors are currently taking a big part of ETH’s supply. Data from DeFi Pulse register 9,4 million ETH locked in DeFi protocols. After registering a drop at the end of February, ETH inflows into decentralized finance protocols have absorbed 1.5 million ETH since March 8.
This trend is continuing and shows no signs of weakening, as more and more users join the sector for profits or to participate in the Non-Fungible Token (NFT) craze.
Source: DeFi Pulse
MakerDAO, Compound y Sushiswap hold the biggest amount of ETH with 3 million and 1.4 million each, respectively. Uniswap, Aave, Alpha Homora, and Balancer follow, but only the decentralized exchange (DEX) holds over 1 million ETH.
On the other hand, Ethereum 2.0 deposit contract has also absorbed a lot of ETH supply. At the moment, it holds 3,559,362 ETH with an estimated value of $6 billion. According to Arcane Research, more institutional demand has come for ETH since late 2020:
the steady increase in ETH loans outstanding. After ending Q1 at 5.5%, the share of ETH loans outstanding grew 177% over the next three quarters, ending the year at 15.5%. Of course, some of this growth is attributable to ETH’s price inflation.
Sustained demand for ETH could positively impact its price and allow the rally to continue through 2021. According to ETH Gas Station, transactions fees on the blockchain are again at record levels with 161 Gwei for the cheapest.
Bitcoin (BTC) has been facing stiff resistance near the $60,000 level for the past few days. This suggests that market participants are cautious at these levels and a positive trigger may be needed to drive the price higher and start the next leg of the uptrend.
One of the developments that could be bullish for Bitcoin is that Brazil followed in the footsteps of Canada and gave the green light for the launch of a Bitcoin exchange-traded fund. The ETF will be managed by QR Asset Management and is expected to start trading in Q2 2021.
The Bitcoin ETFs launched by various countries are likely to put pressure on the U.S. Securities and Exchange Commission to approve a Bitcoin ETF because if they do not do that, institutional investors may use the alternatives available in neighboring countries.
Crypto market data daily view. Source:Coin360
Although Bitcoin is showing some fragility near $60,000, Cointelegraph contributor Marcel Pechman analyzed derivatives data from various exchanges to show that top traders are still adding long positions near $57,000.
Bitcoin seems to be consolidating its recent gains before starting the next trending move. But there are several cryptocurrencies that are in an uptrend and may continue their march north. Let’s study the charts of top-5 cryptocurrencies that could remain bullish in the short term.
BTC/USD
Bitcoin is in an uptrend and the bulls continue to buy the dips to the 20-day exponential moving average ($55,282). The long tail on today’s candlestick also shows that the bulls used the dips to accumulate.
BTC/USDT daily chart. Source:TradingView
The bulls will now try to propel the price above the $60,000 to $61,825 resistance. If they succeed, the BTC/USD pair could start the next leg of the uptrend that may reach $72,112.
Another possibility is that the price again turns down from the overhead resistance and the pair remains stuck in a tight range. If that happens, the next breakout is likely to result in a strong trending move.
The only bearish development visible on the chart is the negative divergence on the relative strength indicator (RSI). This bearish prediction could come into play after the price breaks and sustains below the 20-day EMA.
If that happens, the pair could drop to the 50-day simple moving average ($49,497), which is a critical support to keep an eye on. A break below this level could challenge the $43,006 support.
BTC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. The price has bounced off the support line of the triangle, indicating that the bulls are defending this support.
If the bulls can propel the price above the moving averages, the pair could again attempt to rise above the resistance line of the triangle. If that happens, a move to the all-time high at $61,825 is possible. A breakout and close above this resistance could resume the up-move.
Alternatively, if the price turns down from the moving averages, the bears will try to sink the price below the triangle. If they manage to do that, the pair could drop to $53,288 and then $44,752.
UNI/USD
Uniswap (UNI) is currently consolidating between $27.97 and $35.20. The bulls attempted to resume the uptrend on March 20 but the long wick on the candlestick and a close in the red suggests profit-booking near $35.20.
UNI/USDT daily chart. Source:TradingView
However, there hasn’t been any follow-up selling today. Both moving averages are sloping up and the RSI is in the positive zone, which suggests the path of least resistance is to the upside.
If the bulls can propel the price above $35.20, the UNI/USD pair could start the next leg of the uptrend that could take it to $42.43 and then $46.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA ($30), the pair could drop to $27.97. This is an important support to watch out for because if it cracks, traders may rush to the exit and that could result in a deeper correction to the 50-day SMA ($25.39) and then $22.
UNI/USDT 4-hour chart. Source:TradingView
The moving averages on the 4-hour chart have flattened out and the RSI is just above the midpoint. This suggests a balance between supply and demand.
If the price dips below the moving averages, a drop to $27.97 is possible. A bounce off this support could extend the stay of the pair inside the range.
The next trending move could start after the bulls push the price above $35.20 or the bears sink the pair below $27.97. Until then, the price may oscillate between the support and resistance levels of the range.
LUNA/USD
VORTECS™ data from Cointelegraph Markets Pro turned positive as the signal for LUNA rose above 70 on March 18, indicating a positive outlook when the price was still undecided about the next move fr $18.17.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. LUNA price. Source:Cointelegraph Markets Pro
The chart above shows the VORTECS™ score climbed steadily from 62 to 76 on March 18, well before the price picked up momentum on March 19.
Since then, the VORTECS™ score has remained bullish and has not fallen below 65. Meanwhile, LUNA continued to move up and reached $22.32 on March 21 in tandem with the VORTECS™ score, which hit 77.
LUNA is in a strong uptrend as it continues to make record highs on a daily basis. The bears attempted to stall the uptrend on March 17 but could not keep the price down for more than a day, which suggests strong buying on every minor dip.
LUNA/USDT daily chart. Source:TradingView
The long wick on the March 19 candlestick also shows profit-booking at higher levels, but the bulls again bought the dip and have pushed the price to a new all-time high today. This suggests the trend remains intact.
Both moving averages are sloping up and the RSI is above 84, indicating that bulls are in control. The next target objective on the upside is $27.46.
However, vertical rallies are rarely sustainable. Therefore, traders may wait for a correction or a consolidation to initiate fresh positions rather than chase the price higher. A break below $18.51 could result in a drop to the 20-day EMA ($14.79).
A strong rebound off this support will suggest the sentiment remains bullish as traders are buying the dips. But a break below the 20-day EMA could signal the start of a deeper correction.
LUNA/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the LUNA/USD pair is in a strong uptrend. The bulls have not allowed the price to dip below the 20-EMA during the most recent leg of the uptrend, which is a positive sign.
Therefore, traders should keep a close eye on the 20-day EMA because a break below it will be the first sign that the momentum may be ebbing. The next support on the downside is the 50-SMA. A break below $17 could suggest that the bears have the upper hand.
THETA/USD
THETA has been in a strong uptrend for the past few days. The token rose to a new all-time high at $8.97 on March 19 but witnessed profit-booking at higher levels as seen from the long wick on the day’s candlestick.
THETA/USDT daily chart. Source:TradingView
However, the shallow correction on March 20 showed that traders were buying the dips and not rushing to the exit. During strong uptrends, the pullbacks are generally short-lived.
The bulls have again pushed the price to a new all-time high today, which shows the resumption of the uptrend. The THETA/USD pair could rally to $10.35 and then to $12.35. The upsloping moving averages and the RSI in the overbought zone suggest the bulls are in command.
This bullish view will invalidate if the bears sell at higher levels and pull the price back below $7.99. If that happens, it will suggest the current breakout was a bull trap.
THETA/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the price bounced off the breakout level at $7.999 and the bulls did not allow the pair to drop below the 20-EMA. The bears attempted to stall the up-move at the downtrend line but failed.
Strong buying by the bulls has pushed the price above the downtrend line and the $9 overhead resistance. This suggests the next leg of the uptrend may have begun.
Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will signal that the momentum has weakened. A break below the 50-SMA will suggest that the bears are attempting to make a comeback.
FIL/USD
Filecoin’s FIL token is in a strong uptrend. After its sharp rally on March 16 and 17, short-term traders seem to have booked profits, which has resulted in a minor correction on March 18. However, the shallow pullback is a positive sign as it shows that the majority of the traders are not rushing to the exit.
FIL/USDT daily chart. Source:TradingView
The bulls are attempting to keep the FIL/USD pair above $73.79, which is just below the 38.2% Fibonacci retracement level at $75.74. If the bulls succeed, the pair could again rise to $96.66.
A breakout and close above this resistance could start the next leg of the uptrend, which could reach $128.55.
On the contrary, if the bears sink the price below $73.79, the pair could drop to the 20-day EMA ($59.95). A strong rebound off this support will indicate that the trend remains positive but a break below it will suggest a short-term top may be in place.
FIL/USDT 4-hour chart. Source:TradingView
The rebound off the $73.79 support indicates strong demand at lower levels. However, the bears are not relenting as they are aggressively defending the $86 level. If the bears sink the price below the 20-EMA, the pair could again drop to $73.79. A break below this level will suggest advantage to the bears.
Alternatively, if the pair rebounds off $73.79, it may extend its stay inside the range for a few more days. The flattening 20-EMA and the gradually weakening RSI also point to a possible consolidation. A break above $86 could signal resumption of the uptrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
In an interview for CNN’s First Move, digital artist Mike “beeple” Winkelmann talked about “the craziness” he has experienced with the sale of his NFT for $69 million. Acknowledging that the process has been “overwhelming,” beeple the consequences of the marriage of art and technology.
The digital artist has a career that spans 20 years. The work sold for millions as part of a “unique auction” at Christie’s and was created with images made over 13 years. Non-Fungible Tokens (NFT), Beeple said, has become “a real way” to connect with an audience. Beeple said:
To be quite honest, this is not something that I saw coming. It has just been overwhelming (…). Every part of me looks at this and says, “this is insane”. I always thoughted they will be some attention paid to it, I did not think it would be this quick or this much.
The digital artist considers himself a political critic of sorts and showed disbelief about the NFT market during the interview. Beeple believes that digital techniques and media have the opposite effect of devaluing artworks:
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I don’t think art is being devalued, I think in some cases a lot of value is being placed on the work. I think there is definitely, on some level, a bubble when you have NFT of toilet paper selling for $2,000. That seems kind of ridiculous.
Comparing NFTs to the early days of the internet, Beeple said the technology is “exciting.” However, he highlighted how at that time “a lot of bubbles” were created, speculation, hype.
After that stage was over, the Internet reached its next level of development. Something similar, Beeple believes, will happen with NFTs. The digital artist stated:
There is gonna be a huge rush of people into this (saying), ‘ok, here is chapstick, let’s NFT it’. You already see that now. But I think people are going to pretty quickly get wise to that and all that stuff is going to fade away. The things that connect with people in an emotional level, or have a lot of utility, those are the things that are going to stick around.
Calvin Harris and Steve Aoki bid thousands on Beeple’s NFTs
Beeple believes that NFTs will be technologies that will be integrated into many use cases in people’s everyday lives. The digital artist is participating in “The Carbon Drop”. An initiative created by The Social Alpha Foundation.
Via Twitter, Beeple has celebrated participation in its NFT auction. Receiving millions of dollars in bids from Calvin Harris, Steve Aoki, and others, the proceeds will go to the Open Earth Foundation to:
(…) develop innovative open digital infrastructure for improved management of planet Earth —helping track transparently the global progress on the Paris Agreement to avoid the existential risk of climate change.
ETH gaining momentum in the last hour. Source: ETHUSD Tradingview
The legal counsel of the U.S. Securities and Exchange Commission (SEC) is arguing that XRP is unlike Bitcoin (BTC) and Ethereum (ETH).
During a hearing in the SEC’s case against Ripple in which the regulatory agency accuses the digital payments firm of illegally selling unauthorized securities in the form of XRP, legal counsel Jorge Tenreiro argues that XRP is dissimilar to the two large-cap crypto assets which have already been cleared by the SEC.
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U.Today reports that within his case against Ripple, Tenreiro notes that XRP, unlike BTC and ETH, is backed by a knowable and singular body.
“Mr. Solomon (Ripple’s general counsel) tries to say that ‘we are no different than Bitcoin and Ether.’ As Ripple’s own lawyers told them, you are not like Bitcoin because you are one entity that has created these assets. That is fundamentally different.”
The lawyer also asserts that even though the company has attempted to find a use case for its XRP token, the firm has been unable to demonstrate that its token has any utility.
“We dispute whether this utility actually exists, your honor. But the point is: even if it did exist, Ripple and the defendants’ efforts to develop a use for XRP is what makes XRP a security.”
Judge Sarah Netburn, the presiding official in the case, attempts to clarify the difference between XRP and the first and second-largest crypto assets.
“My understanding of XRP is that not only does it have a currency value but it also has a utility and that utility distinguishes it from Bitcoin and Ether.”
Ripple’s general counsel replies that, while XRP’s utility is different from that of ETH and BTC, it does in fact have a use case.
“Bitcoin and Ether also have utility… Bitcoin does have use cases that it has developed. So does Ether. They have smart contracts for example that can be done over the Ethereum blockchain. XRP also has developed a number of use cases and these started very early in the process which is why its so baffling that the SEC has charged this long-running scheme from 2013 to the present because XRP for example has a product called On-Demand Liquidity (ODL) that is used to assist financial institutions in having seamless and less costly transactions in key corridors…
XRP as a digital asset is helpful because it means that banks don’t have to have their own fiat accounts on either end and can deploy that money more effectively elsewhere and XRP can be used as a bridge currency and Mr. Garlinghouse (Ripple CEO) has been brought to Ripple to help develop these additional use cases.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
The Bank of Thailand splits stablecoins into two: baht-backed and others.
There’s room to influence policy-making for the Thai crypto industry as the bank also announced it’s seeking input.
The Bank of Thailand (BOT) on Friday published guidance on stablecoins and also called for input on a regulatory consultation.
The BOT grouped stablecoins into two, distinguishing stablecoins backed by the country’s currency, the baht, from the rest.
The bank’s baht-centric approach is different from other central banks that distinguish between fiats and non-fiats, for instance a stablecoin whose value is tied to the US dollar and a stablecoin pegged to the price of gold.
📌📋 Stablecoins Regulation Policy
👉 The following guidelines appropriate for the regulation of financial services involving stablecoins
🔵 Baht-backed stablecoins
🔵 Other forms of stablecoins#BankofThailand #BOT #Stablecoins #CBCD #RetailCBDC
— Bank of Thailand (@bankofthailand) March 19, 2021
Baht-backed stablecoins
The BOT calls stablecoins intended for everyday use “e-Money”, in line with terminology from the country’s Payment Systems Act of 2017.
Anyone who wants to offer a baht-backed stablecoin must ask the BOT for permission, it said.
The BOT highlighted that this policy is aligned with international standards, citing the United Kingdom, Singapore, and Japan.
Other stablecoins
But the BOT said much less about the second type, ”other forms of stablecoins.”
It’s a broad category that includes asset-backed stablecoins and algorithmic stablecoins, but also foreign currency-backed stablecoins.
For the Thai crypto industry, however, there’s some room to influence policy-making.
The bank welcomes input on its guidelines with respect to other forms of stablecoins. “The BOT is open to receive comments and feedback before considering regulatory guidelines as appropriate,” it said.
Thailand and crypto: it’s complicated
The bank also added that it’s currently developing a Retail Central Bank Digital Currency “to meet the needs of the general public, improve service efficiency in the business sector, and increase access to financial services.”
A central bank digital currency has been a long-running ambition of the bank; it prematurely announced last summer that such a coin would be ready soon.
But there’s one blockchain project of the bank that’s already in full swing.
Last June, the BOT announced that, through a partnership with The Hong Kong Monetary Authority, it had built a prototype for a cross-border blockchain payment system called Project Inthanon-LionRock. The project allows banks in Hong Kong and Thailand to send funds to each other via smart contracts.
It’s not only the financial service in which Thailand wants to exploit crypto. It also wants to promote its tourism with crypto; “Even Elon Musk, the founder of Tesla and a crypto influencer, might be interested in visiting Thailand,” Yuthasak Supasorn, governor of the Tourism Authority of Thailand (TAT), told The Bangkok Post last month.
Meanwhile, earlier this month, the country attempted to adopt a restrictive approach toward local crypto investors and traders, only to take a step back after public backlash.
Thailand’s Securities and Exchange Commission had to walk back a draft proposal that would have required crypto investors to have a minimum annual income of one million baht ($33,000).
That threshold would have prevented low-and middle-income individuals from investing in cryptocurrency.
But the subtext is indelible: Thailand is up for crypto, but by its own rules.
With the creation of Bitcoin back in 2009, Satoshi Nakamoto would have probably never guessed that the world would buy digital, collectible CryptoKitties, Punks, Hashmasks, celebrity music, and so forth.
However, all of the above made use of a whole new Ethereum standard for identifying unique assets on its blockchain – the ERC-721, better known as the solution for the creation and transfer of non-fungible tokens.
This article discusses the following questions related to non-fungible tokens:
What is a non-fungible token (NFT)?
We can describe an NFT as a cryptographic token that defines an asset uniquely. It can represent both a digital asset such as an image, but it can also track real-world assets, such as a house or car, or a song, for example. As you can uniquely define assets, this means you can also prove ownership over said assets, and moreover, prove their authenticity.
You might wonder why we need non-fungible tokens to uniquely track assets? The problem with regular tokens created using the ERC-20 standard is that they are divisible and can be interchanged.
We don’t want this property for tracking unique assets. This would mean you can divide your digital image or physical car into different tokens and distribute it. That would defeat the whole purpose of non-fungible tokens, as you want only one of them pointing to a single asset. Moreover, if we can make copies of tokens, it becomes impossible to uniquely define them.
For that reason, non-fungible tokens solve the interchangeability problem. A regular ERC-20 token can be interchanged with any other ERC20 token. Again, ERC-721 tackles this exact property. Therefore, each NFT token tracks a different asset and can’t be interchanged with another asset.
To give you a better understanding, let’s take a look at a fungibility example. The fungibility property matters most for digital currencies such as Bitcoin. This allows people to freely trade Bitcoins with each other as it doesn’t matter which Bitcoin you own.
However, when we apply fungibility to digital assets, that would mean users can freely trade them, and we can’t prove ownership of the asset as you can interchange them with any other asset. That’s a problem if we want to uniquely identify assets. For that reason, non-fungible tokens have been created.
What are the Characteristics of Non-Fungible Tokens?
So, we have already discussed the importance of non-fungibility for NFTs. Let’s take a look at the following three properties that make NFTs so desired – uniqueness, rarity, and indivisibility.
Uniqueness
We’ve already discussed the importance of uniqueness. NFTs allow you to uniquely define an asset by providing metadata that describes the asset and sets it apart from other assets.
For example, a project, such as Decentraland, sells virtual pieces of land. To uniquely define each piece of land, the metadata consists of virtual coordinates and the properties of the land, such as the percentage of land that’s covered by grass or what buildings it has.
Rarity
Rarity, also referred to as scarcity, is an element that makes NFTs popular. With a traditional ERC20, token developers can freely define the limits for the token. Let’s say you want a supply of 1,000,000 tokens? Yes, that’s possible. Do you want more tokens? Just increase the total supply within your smart contract (different algorithms put different rules on that possibility or prohibit it entirely).
With NFTs, it’s not possible to infinitely create new assets. Rarity makes sure that you can only define each asset once on the blockchain, which makes NFTs so desired among collectors.
Someone else can’t register the same asset for a second time, which makes assets rare. In other words, rarity gives value to NFTs, as long as people want to spend money on them. To get back to the Decentraland example, you can truly own a piece of land in a game and trade it just like a real piece of land.
Indivisibility
Lastly, you can’t split NFTs. For example, you can own one full bitcoin. However, if you don’t have enough money to buy a full bitcoin, you can split a bitcoin into smaller denominations and buy 1/10 of a bitcoin. The denominated units of bitcoin are known as satoshis.
To expand on this example, you don’t want to allow users to buy 10% of a train ticket. In other words, if Bitcoin had non-fungible characteristics, you would only be able to buy a full bitcoin.
How do Non-Fungible Tokens work?
As mentioned before, Ethereum introduced the ERC-721 standard that allows developers to define unique assets. It was finalized on the 24th of January 2018 and defines the functions for Ethereum contracts to comply with it. However, the ERC721 metadata contract is much more interesting for us as the real magic happens here.
We can provide both a name and symbol for the NFT we want to define. Furthermore, we have to provide a URI that points to a JSON file that describes the unique properties of the NFT. A JSON file is another form of data notation where we keep track of properties such as name, description, and image URL to further define the NFT.
Why do we need non-fungible tokens?
NFTs are very convenient for digital economies. The gaming industry, for example, is home to many micro-economies. Just take a look at games such as CS:GO, League of Legends, or Fortnite: Battle Royale. Each of those games hosts an economy of in-game assets that can be traded among players. Players often receive in-game assets for winning a game, such as skins for their avatar or stickers for their weapon.
Source: CSGO marketplace
Here, gamers are willing to pay money for receiving a beautiful skin to enhance their gaming experience. However, gamers do not truly own those assets, and often, the game can still control the price for in-game assets or make modifications to a particular skin which can cause its price to drop sharply. This has happened in the past with CSGO skins.
To avoid this:
“NFTs are a great use case for gaming economies so that digital assets can’t be altered, the scarcity can be controlled, and gamers can trade these digital assets.”
This would even open up the possibility to create inter-game economies where a weapon or avatar skin can be used across different games.
Furthermore, the decentralized identity movement also benefits from NFTs as you can link physical properties such as your house or car to your decentralized identity, becoming a true proof of ownership where you can trustlessly transfer assets in a global market.
To summarize, here’s a shortlist of possible representations for NFTs:
Collectibles
Art: both physical as digital
In-game items, such as skins or stickers
Items in a virtual world, such as a piece of land
Real-world assets, such as cars or houses
Identity-related properties, such as certifications or medical history.
Next, let’s list five popular projects using NFTs.
Which projects are actively using NFTs?
Many projects have introduced NFTs. Let’s take a look at some of the most prominent projects that make use of this technology.
CryptoKitties
It’s impossible not to talk about CryptoKitties as this was the first use case of NFTs to hit mainstream media. Its concept is closely linked to that of Pokemon Go. Instead of collecting Pokemons that each have unique characteristics, you can collect digital crypto cats that come with certain characteristics. Through breeding cats, you can create new cats and so discover new characteristics.
(Source: CryptoKitties tutorial)
Decentraland
Next up, Decentraland is a virtual reality world in which you can own a piece of virtual land. The game allows you to further develop your piece of land or build things on top of it. All of these details are stored in the metadata of your NFT. Most importantly, the game allows you to trade virtual land with other gamers so you can create large virtual communities.
Gods Unchained
Remember playing card games and exchanging them with your friends, such as Yu-Gi-Oh? Some collectors went as far as listing cards on eBay or other online marketplaces to complete their collection. As you can see, it wasn’t easy back in the days to trade and collect cards. Card collectors had to deal with various uncertainties –
What if I pay for a card and don’t receive it?
What if the card I just bought online is counterfeit?
How do I prove ownership of a card after buying it?
Gods Unchained has created a collectible card game where cards are issued as NFTs. Therefore, solving all of the above problems as the ownership of cards can be transferred digitally, and you can verify the authenticity of each card. Furthermore, you can quickly exchange ownership of cards via a simple Ethereum transaction.
NBA Top Shots
NBA Top Shots is undoubtedly one of the most popular platforms for NFTs, built on the FLOW blockchain.
It’s a novel concept where different moments from various NBA games are captured and then minted into NFTs. There are various tokens with a different rarity.
For instance, some moments are only minted into a few NFTs, while others – into thousands. This is why some are skyrocketing in value as investors flood the market to own them.
More interestingly, the platform has quickly risen to become one of the most hyped ones, and every pack drop receives thousands of people on the waiting list, eager to participate.
OpenSea Marketplace for NFTs
Lastly, it’s worth mentioning the OpenSea marketplace, which allows for any NFT to be auctioned on the platform. OpenSea acts as a decentralized marketplace where trading happens through a smart contract. It allows you to trade more than 200 types of NFTs, including CryptoKitties, SuperRare art, Gods Unchained cards, and even Ethereum domain names.
How to Buy NFTs?
Now that you’re aware of what NFTs are let’s see how you can buy them. First off, there are a few very popular marketplaces that are booming with volume on NFTs. One of them is OpenSea, and the other one is Rarible.
Let’s have a look at how to buy an NFT on OpenSea. To use both of them, you need to connect an ERC-721 compatible wallet such as MetaMask.
This is how the browsing section of the platform looks like. As you can see, on the left side, you can find various collections that are usually the ones trending the most.
Below each NFT, you can see how much time there is until the auction is completed. For this example, we’re clicking on the first available NFT – the one of the Wrapped MoonCat.
This is how the specific NFT buying page looks like. You have all the information needed in front of you. This includes the price history (if there’s any trading data), the creator, a description of the NFT, as well as the current offers down below. From here, there are two options.
First, you can buy the NFT directly for its listing price. In this case, it’s 0,9999 ETH. If you want to participate in the auction, however, you need to “make an offer” using the button down below. If your offer is accepted, your account will be debited, and you will receive the NFT in return for the ETH.
NFTs and Beyond
So, how did NFTs manage to receive value? It’s the same as asking why a particular painting is valued at 1,000 euros. Why would you pay $1,000 for a physical painting that may as well be counterfeit as you can own a digital painting of which you know you are the sole owner, and you can prove its authenticity.
In the end, the value of an NFT depends on how much money one is willing to pay for it, just as with any collectible item. The value isn’t inherent to the object itself but is rather assigned by people who deem it valuable. In essence, value is a shared belief.
It’s also interesting to note that some particular NFTs have absolutely exploded in value. For instance, Beeple’s “The First 5,000 Days” NFT sold for a whopping $69 million.
In conclusion, NFTs have gained a lot of popularity and exposure over recent years as they act as proof of ownership and authenticity of both digital and physical items. On top of that, NFTs allow users to trustlessly transfer ownership, eliminating fraud.
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Bitcoin price is losing bullish momentum. Although it has still managed to hold above support at $55,000, after a failed attempt to clear the $60,000 resistance, the trend has been down over the last week (-6.6%).
Jiang Zhuoer is the CEO of BTC.Top mining pool, he claimed things might continue to go south during the year. In a recent interview with Wu Blockchain citing “study models”, Zhuoer predicted a change in crypto market dynamics.
Bitcoin’s price has seen gains of 824.4% in one year, but Zhuoer believes that between September 2021 and June 2021, the market could move “from a bull to a bear market.”
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BTC.Top is one of the largest mining pools in the sector. Data from Statista indicates that this pool owned 0.75% of Bitcoin’s total hashrate as of mid-February. Wu has interviewed other representatives of the blockchain industry in China and received similar predictions. The idea behind this reasoning is:
they believed that this autumn might start to turn into a bear. The reason was the economic recovery after the popularization of the vaccine and the beginning of a shift in US monetary policy. (…) after Tesla purchased 1.5 billion U.S. dollars in Bitcoin and Meitu purchased 90 million U.S. dollars in Bitcoin and Ethereum, there are no other large listed companies in North America and Asia to follow up.
A Bitcoin ETF approval in the U.S. or another company like Tesla adopting BTC could return the upside momentum. On this possibility, MicroStrategy CEO Michael Saylor said:
If you go back to March 2020, it was only the rare institution involved. In the 12 months that followed, there’s been an avalanche of institutional involvement. MicroStrategy is the first publicly traded company that made a material investment, but Square followed. And Tesla followed. But they’re the tip of the iceberg.
Where could Bitcoin’s price go in the coming days?
In the short term, newsBTC crypto market strategist Aayush Jindal sees a chance for a fresh increase in BTC if support along the $57,000 level is held. Currently, Bitcoin trades for $57,488 with 3.3% of losses in the 24-hour chart.
Bitcoin with bearish performance over the past week. Source: BTCUSD Tradingview
Trader Bitcoin Jack is cautious about Bitcoin price action and believes there are “many reasons” for the cryptocurrency to continue to pull back. The trader believes BTC could all the way down to $45,000, he added:
Looks pretty weak to me, bias neutral to bearish. Will be looking for locations to hedge on bounces until this turns bright again. Maybe I’m wrong but to be bullish I wanted to see 57.5 hold and push ath’s. I think price wants to test demand at high 40’s / low 50’s
Godwin Emefiele, governor of Nigeria’s central bank which previously banned banks from servicing crypto exchanges, has reportedly clarified the bank’s position on the use of cryptocurrencies in the country.
According to local news outlet TodayNG, Central Bank of Nigeria, or CBN, deputy governor Adamu Lamtek said on behalf of Emefiele that the bank had not banned Nigerian residents from buying, trading, or selling crypto, but “[protected] the banking sector from the activities of cryptocurrencies.” Lamtek spoke at a seminar for the Finance Correspondents and Business Editors in the capital, Abuja.
“The CBN did not place restrictions from use of cryptocurrencies and we are not discouraging people from trading in it,” said Emefiele. “What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”
The statement follows the CBN announcing last month in a circular that it had placed a ban on all regulated financial institutions from providing services to crypto exchanges in the country. The ban directed all commercial banks to close accounts belonging to crypto exchanges and other businesses transacting in cryptocurrencies in Nigeria, warning of “severe regulatory sanctions” for any institution in breach of the rule. Some account holders at Nigeria’s Access Bank have already reported their accounts have been closed.
Emefiele previously referred to cryptocurrencies as “not legitimate money” with no place in Nigeria’s monetary system. The governor said at the time the central bank was doing its due diligence to better understand the implications of the emerging space.
However, many regulators and crypto enthusiasts in Nigeria have criticized the ban. Some lawmakers in the Nigerian Senate have proposed inviting the CBN governor and major crypto stakeholders to a hearing to discuss issues related to crypto regulations in the country.
Since the CBN introduced the crypto ban, the price of Bitcoin (BTC) has been trading at a premium in the country. Valued at $57,349 in the United States, data from crypto exchange Luno currently shows BTC has risen to a more than 70% premium in Nigeria at a price of $97,509.
