Day: February 7, 2022

Mitsubishi UFJ Trust to Issue a Stablecoin to Accelerate Settlement Processes: Report

by CryptoPotato

The financial services company – Mitsubishi UFJ Trust – hopes to enhance its transaction system by utilizing blockchain technology for trading and a cryptocurrency for payments. As such, it will create a stablecoin tied to the value of the Japanese yen, claimed a new report.

Mitsubishi’s Stablecoin

According to a recent report by Nikkei Asia, Mitsubishi UFJ Trust – a Tokyo-headquartered bank with over $1.5 trillion in assets under management – is seeking to enter the world of crypto by issuing a digital asset of its own. The financial product will be a type of stablecoin pegged to Japan’s national currency.

The token will enable the institution to boost its payment process, instantly settling securities transactions. Currently, such monetary procedures take a couple of days and cost tens of millions of dollars a year in Japan. Many expect that the use of a stablecoin could eliminate those costs.

Additionally, the initiative should propel the employment of blockchain technology in securities trading. The Japanese Trust Bank has promoted its use in partnership with Daiwa Securities and SBI.

Digital securities enable investments in a more flexible format. For example, blockchain technology has turned traditional assets such as real estate or corporate bonds into products that can be purchased in small quantities, opening the doors for retail investments.

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Japan – one of the most developed economies globally – is a key player in the cryptocurrency industry. At the same time, locals have displayed a growing interest in the asset class recently. In 2021, digital transactions marked more than 50% increase than 2020 and reached over 103 trillion yen ($900 billion).

Stablecoins Might Face Strict Regulation

It is safe to assume that Mitsubishi UFJ Trust’s project might come upon some regulatory backlash before launch. Last summer, some Japanese officials opined that stablecoins could harm Japan’s financial ecosystem, and for that reason, they should be strictly supervised.

“Japan can no longer leave things unattended with global developments over digital currencies moving so rapidly,” one of them stated.

In 2020, the Financial Services Agency (FSA) established a division to monitor the regulation of cryptocurrencies. Shortly after, the Ministry of Finance contemplated increasing the personnel needed.

The possible regulation might favor Japan’s central bank, which aims to issue a CBDC. Trials are expected to start sometime this year, while the product’s initial release might come around 2026, Governor Haruhiko Kuroda outlined.

Featured Image Courtesy of World Finance Informs

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Assange DAO Has Now Raised More Ethereum Than ConstitutionDAO Did

by Decrypt

Since starting its fundraising efforts on February 3, AssangeDAO has raised over 14,329 ETH, around $44.8 million, according to DAO fundraising site Juicebox.

In four days, AssangeDAO, whose mission is to free Julian Assange, has raised more than the now-defunct ConstitutionDAO formed last fall to bid on a rare copy of the United States Constitution. That effort pulled in 11,613 ETH, worth around $45 million at the time.

AssangeDAO, which includes members of the Assange family, launched December 10 in response to a U.K. court overturning a ruling that barred Assange’s extradition to the U.S. The DAO, which utilizes the Ethereum blockchain, distributes the AssangeDAO JUSTICE governance token to those who donate ETH. Those tokens currently have little in the way of actual value, but people who hold them can vote on future DAO proposals.

AssangeDAO’s efforts are pulling in notable contributions, including 10 ETH ($31,000) from Ethereum co-founder Vitalik Buterin.

 

“Just like in the past, many of the contributions to #Assange’s fundraising have been small but large in aggregate,” tweeted Assange’s fiancée Stella Moris. “Contributions of every kind are what make @AssangeDAO such a success.”

AssangeDAO’s plan is to bid on a one-of-a-kind NFT produced by celebrated digital artist Pak, who collaborated with Julian Assange on the “Censored” collection. Proceeds from the auction will benefit the Wau Holland Foundation for Assange’s legal defense.

“The Assange NFT is doing real numbers. Very much looks like a protest vote against the White House’s abuse of the Espionage Act,” tweeted famed whistleblower Edward Snowden over the weekend, referring to the tidal wave of Web 3 financial support for the WikiLeaks founder.

Assange is wanted on espionage charges stemming from WikiLeaks publishing classified government documents. He is currently in pre-trial detention in the U.K., fighting extradition to the United States. If extradited and found guilty of all charges, Assange faces up to 175 years in prison.

https://decrypt.co/92332/assange-dao-raised-more-ethereum-constitutiondao

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Crypto Price Prediction: What’s In Store For Bitcoin And Ethereum In 2022 As XRP, Dogecoin And Shiba Inu Suddenly Soar

by Forbes

Bitcoin, ethereum and other major cryptocurrencies have bounced back after a lackluster start to 2022.

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The bitcoin price is now up around 10% since early January with the ethereum price climbing even further—despite dire warnings. However, smaller cryptocurrencies, including Ripple’s XRP, the meme-based dogecoin and its biggest rival shiba inu have suddenly surged, leaving bitcoin and ethereum in the dust.

Now, analysts at crypto research company FSInsight, led by JPMorgan’s former chief equity strategist Tom Lee, have issued a huge 2022 bitcoin and ethereum price prediction—forecasting this year will see another wave of crypto investors.

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MORE FROM FORBESCongress Introduces A Radical Crypto Bill To ‘Unleash Innovation’ As The Price Of Bitcoin And Ethereum Suddenly SoarBy Billy Bambrough

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“This is much different from in 2018 where tech stocks were still doing well but bitcoin sold off along with the rest of the crypto market cap,” FSInsight’s Sean Farrell, head of digital asset strategy, wrote in a note first reported by Coindesk, adding the predicted rally will come due to the “legacy market capital entering the fold.”

Financial institutions and Wall Street giants have shown a lot of interest in bitcoin and cryptocurrencies of the last year, with some now offering trading services to clients.

Farrell predicts that the bitcoin price could climb as high as $200,000 per bitcoin in the second half of 2022, despite bitcoin’s rough start to the year. Bitcoin crashed around 50% from its all-time highs during the two months to January, falling to around $32,000 per bitcoin.

Farrell also predicted the ethereum price could soar to $12,000 per ether thanks to the growth of decentralized finance (DeFi), non-fungible tokens (NFTs) and other Web 3 applications, adding ethereum is undervalued relative to cloud platforms.

Bitcoin, ethereum and most other major cryptocurrencies fell sharply through the final months of last year and into 2022 as investors fretted over looming interest rate hikes from the Federal Reserve, causing surging stock markets to stall.

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MORE FROM FORBES‘Risk-Reward Model’ And NFTs Reveal The Price One CEO Is Looking To Buy Bitcoin And Ethereum ‘Very, Very Aggressively’By Billy Bambrough

However, Farrell warned that stronger-than-expected action from the Fed could cause crypto and stock markets to move sharply lower in the short-term, with policymakers now eyeing this week’s inflation data, due Thursday.

“All assets can sell off and drop another 50% if the Fed hikes 4% … next month,” he said during a webinar last week. “But right now, as things stand, the upside to both bitcoin and ethereum is much larger than the downside.”

Meanwhile, other bitcoin and crypto market watchers are also feeling upbeat as sentiment turns positive.

“While inflation remains a big consideration for investors, rotating funds back into supposedly risky assets like bitcoin is fast becoming an attractive proposition to many,” Alexander Mamasidikov, co-founder of mobile digital bank MinePlex, said in emailed comments.

“Bitcoin investors are also attempting to decouple from the mainstream stock market, a move that will prevent any serious plunge even as tech stocks continue to take a beating based on the anticipation of a tighter monetary policy from the Feds.”

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Here’s What’s Ahead for Ethereum (ETH), Polkadot (DOT) and Terra (LUNA), According to Top Crypto Strategist

by Dailyhodl

A popular crypto strategist and trader is outlining what’s next for Ethereum (ETH) and its rivals Polkadot (DOT) and Terra (LUNA) as altcoins flash signs of life.

Pseudonymous analyst Altcoin Sherpa tells his 167,100 Twitter followers that while leading smart contract platform Ethereum looks bullish on the lower timeframes, he warns that a correction is in sight as ETH is now trading at a key resistance area.

“This isn’t generally how bottoms are formed; I think a return to the lows is likely (eventually). With that said, price has still maintained a bullish market structure on the 4h with [higher highs and higher lows]. Approaching a scary area in the $3,000s. Be careful.”

Image
Source: Altcoin Sherpa/Twitter

Next up is interoperable blockchain Polkadot. According to the crypto analyst, DOT looks ready to ignite a 27% rally from its current price of $21.90 to his target at $28.

“I think that a short-term bottom may be forming; to be determined if this is the long-term bottom. Price will need to consolidate here for a while before I think that happens. Possible lower high to mid $20s near the 200-day exponential moving average and then lower.”

Image
Source: Altcoin Sherpa/Twitter

Another coin on the trader’s list is decentralized finance (DeFi) payment network Terra. Altcoin Sherpa says LUNA may be carving a bottom between $45 and $53 as it trades in a high-volume node (HVN) region.

“I still think the bottom is in for the short term. Lots of volume and a HVN on volume profile is around this area. Expecting this to chop and then go up.”

Image
Source: Altcoin Sherpa/Twitter

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Federal Reserve and MIT Begin Developing a New Digital Dollar

by Dailyhodl

The United States Federal Reserve and researchers at the Massachusetts Institute of Technology (MIT) are collaborating on a central bank digital currency (CBDC) initiative called Project Hamilton.

Project Hamilton has now tested a digital dollar that the Fed claims can process 1,700,000 transactions per second.

According to the project’s whitepaper,

“Our primary goal was to design a core transaction processor that meets the robust speed, throughput, and fault tolerance requirements of a large retail payment system. Our secondary goal was to create a flexible platform for collaboration, data gathering, comparison with multiple architectures, and other future research. With this intent, we are releasing all software from our research publicly under the MIT open source license.”

Phase 1 of the project sought to implement two different digital dollar architectures which address the performance, resiliency, and flexibility problems associated with CBDCs.

“The first idea is to decouple transaction validation from execution, which enables us to use a data structure that stores very little data in the core transaction processor. It also makes it easier to scale parts of the system independently. The second idea is a transaction format and protocol that is secure and provides flexibility for potential functionality like self-custody and future programmability. The third idea is a system design and commit protocol that efficiently executes these transactions, which we implemented with two architectures.

Both architectures met and exceeded our speed and throughput requirements.”

According to the project whitepaper, phase 1 of the project highlighted key insights into digital dollar design.

“Select ideas from cryptography, distributed systems, and blockchain technology can provide unique functionality and robust performance…

CBDC design choices are more granular than commonly assumed…

[And] by implementing a robust system, we identify new questions for CBDC designers and policymakers to address, regarding tradeoffs in performance, auditability, functionality, and privacy.”

Project Hamilton now plans to move to Phase 2, which will explore alternative technical designs from a wide range of research topics.

“Research topics may include cryptographic designs for privacy and auditability, programmability and smart contracts, offline payments, secure issuance and redemption, new use cases and access models, techniques for maintaining open access while protecting against denial of service attacks, and new tools for enacting policy.”

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Bitcoin Prices Reach Highest Since Early January As Adoption Bolsters Sentiment

by Forbes

Bitcoin prices rallied today, rising to their loftiest value in more than a month as the latest signs of institutional adoption helped strengthen the optimism of market participants.

The world’s most prominent digital currency reached $44,508 around 2:30 p.m. EST, CoinDesk data shows.

At this point, the cryptocurrency was trading at its highest since January 5, additional CoinDesk figures reveal.

Further, the digital asset was up more than 30% from the recent low of roughly $33,000 it hit late last month.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Institutional Adoption

When explaining these latest price movements, multiple analysts pointed to recent signs that organizations are embracing bitcoin.

Earlier today, KPMG Canada, the Toronto-based branch of professional services firm KPMG, announced that it had purchased some bitcoin, as well as its digital sibling ether, CoinDesk reported.

Further, automaker Tesla Inc. revealed in a recently filed 10-K that it held almost $2 billion in bitcoin at the end of last year.

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“Tesla’s 10K SEC filing update was released yesterday, reaffirming notions that Tesla held onto their BTC holdings amidst declines in Bitcoin’s price to the lower 30 thousands,” said John Iadeluca, founder & CEO of multi-strategy fund Banz Capital.

“Combined with the news of KPMG Canada adding Bitcoin onto its balance sheet, encouraged a sharp rise in positive Bitcoin price sentiment,” he stated.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered similar input.

“The bounce from low 30 thousands gave the market confidence and we saw sentiment improving over the last few days,” he noted.

“Today news of Tesla maintaining its BTC holdings and KPMG Canada adding BTC to its balance sheet have also bolstered sentiment,” emphasized DiPasquale.

Josh Olszewicz, head of research at Valkyrie Investments, also spoke to these developments, noting how they are simply the latest sign of progress for cryptocurrencies.

“KPMG Canada, a big four accounting firm, announced today they will be holding BTC and ETH in their corporate treasury. The new allocation represents a growing list of significant institutional adoption and maturation of an emerging asset class.”

Lawmakers Embrace Bitcoin

Andrew Rossow, an internet and technology attorney, also spoke to adoption, but took a different angle, focusing on the actions of U.S. government officials.

“From a legal perspective, I believe a huge source of credit comes from Congress, with many members of the U.S. Senate speaking favorably on Bitcoin,” he stated.

“On Friday, Texas Sen. Ted Cruz disclosed that he invested in $50K worth of bitcoin during its dip back in Jan., which lended additional favor to Texas’s journey towards becoming a notable bitcoin mining hub,” said Rossow.

“This cannot be overlooked, regardless of your political affiliations.”

Market Dynamics

In an effort to shed further light on current market conditions, as well as provide some clarity on what might come next, Olszewicz highlighted some important key factors.

“Crypto derivative funding rates still lean negative, even with rising price and open interest, suggestive of on-going short interest,” he stated.

“Price may continue upward momentum so long as shorts continue to get squeezed and are forced to cover positions or become liquidated.”

Further, he spoke to the relationship between the price movements of digital currencies and the values of major indices like the S&P 500.

“Crypto also continued to decouple from traditional finance indices, such as the S&P 500 and Nasdaq, throughout the day,” said Olszewicz.

“Strong correlations between crypto and these indices held through the month of January, but began to break after the non-farm payroll numbers were released on Friday. A decorrelation between the two sectors could be suggestive of returning risk-on sentiment in Crypto.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.

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The Bear Signal That Suggests Another Bitcoin Crash Is Coming

by NEWSBTC

Bitcoin has recently recovered above $40,000 to much fanfare from investors. This has been a long time coming given how low the digital asset had gotten following the market crash. It is a significant point to cross in the road to another bull rally. One thing though, is that the cryptocurrency still has a long way before it is back in bull territory, which market analyst Justin Bennett puts at the $45,000-$46,000 level.

As the market tries to work its way towards this bull trend, there are also signals that suggest that a bull rally is not the only likelihood in the near future of the digital asset. In fact, bitcoin recently tripped a trigger that suggests that the market is likely to fall into another crash before bulls can take proper hold of the values.

Bitcoin Falls Below 50-Day Moving Average

Indicators like the moving average and simple moving average can often point investors and traders towards the next steps in the market. For the longest time, bitcoin continued to trade above its 50-day moving average, suggesting a continuation of the bull rally, which has mostly been the case. This time, however, the digital asset has not been able to hold above this important metric.

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Related Reading | Dave Portnoy Is Now A Bitcoiner, Thinks You’re An Idiot If You Don’t Hold Any

For the first time in over a year, bitcoin has traded below its 50-day moving average. Now, this may not seem like a big enough deal to pay attention to given that the cryptocurrency just started to mark another bullish recovery trend. However, it becomes more pertinent data to look at when we take a look at what has happened historically when this happens.

Bitcoin trading below 50 moving average

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BTC falls below 50-day moving average | Source: TradingView.com

Bitcoin has only traded below its 50-day moving average three times previously. Each time that this has happened, the outcome has always been the same; there is a crash. It followed this in 2014, 2018, and 2019. Once again, bitcoin has failed to trade above the 50-day moving average, and if history is any indicator, then BTC could very well be headed towards a price crash.

Where Are The Points To Sell?

For bitcoin and other cryptocurrencies, there is never a ‘perfect’ point to sell given that it is near impossible to predict where the market will swing. However, placing buys and sells between indicators can help one come close.

Related Reading | Bitcoin Hits Two-week High Imitating The Stock Rally

This trader expects the digital asset to see further downside before the bulls take over. This means that investors who do not wish to hold for the long term must decide the best points to offload their bags before bitcoin continues to decline.

Bitcoin head and shoulders suggest incoming sell-off

BTC selloff coming with breakout sellers | Source: TradingView.com

The current head and shoulders pattern will see breakout sellers target the current bullish trend, making it short-lived. The time between when these sellers emerge and when the current bull run ends will be the sweet spot. From there, the imminent crash will see bears take over the market, and fast, too.

Bitcoin price chart from TradingView.com

BTC trading north of $42K | Source: BTCUSD on TradingView.com
Featured image from Bitcoin News, charts from TradingView.com

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Aave Launches Lens, an NFT-Based Social Media Protocol

by Cryptobriefing

Key Takeaways

  • The team behind Aave has launched Lens, a social media protocol that makes extensive use of non-fungible tokens.

  • Lens will use NFTs to manage data including user profiles, publications, and relationships with followers.

  • Lens is built on Polygon, a second-layer network for Ethereum. It will also make use of IPFS for off-chain storage.


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The team behind the DeFi platform Aave has launched Lens, a social media protocol that relies on NFTs for data management.

Lens Will Promote User Data Ownership

Today’s announcement describes Lens as a social media platform “powered by NFTs, so you own and control all of your content.”

For end users, the experience will be similar to traditional social media. However, certain data such as user profiles and follower relationships will be represented by non-fungible tokens.

This will allow users to monetize and freely manage those pieces of data. For example, users can hold multiple profile NFTs in a crypto wallet, sell NFTs that represent follower relationships, or manage DAO voting by working with follower NFTs.



Furthermore, users will be able to create various “publications” such as posts and comments. Users can also create mirrors of content, which seem to be similar to retweets on Twitter.

Though publication data will be stored on-chain, the protocol will also support IPFS hosting for the off-chain storage of large files such as videos, music, and images.

Lens Protocol is also advertising its features to developers, calling itself a “composable and decentralized social graph” that “makes building a Web3 social platform easy.”

Relationship With Aave and Polygon

Lens Protocol has close ties with Aave, a leading DeFi protocol and crypto lending platform with $11 billion of locked value.


Aave acknowledged Lens today, stating that Lens is made by the “by the dev team who brought you the Aave Protocol.”

Aave founder Stani Kulechov also confirmed that the “Aave fam launched the Lens Protocol” and has changed his icon to the Lens logo. Kulechov was also one of the first to hint at the idea of the social network protocol as early as January 2021.

Despite those connections, Lens does not appear to be built directly on Ethereum, as Aave is. Rather, it is built on top of Polygon, a second-layer network for Ethereum noted for its low-energy consumption.

Aave itself has previously worked with Polygon. In March 2021, Aave worked with Polygon to avoid congestion on Ethereum. In April 2021, the two projects partnered to offer liquidity mining rewards.

Disclosure: At the the time of writing, the author of this piece owned ETH and other cryptocurrencies

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Russia’s Second-Richest Man Has Sights Set on Digital Ruble, Not Bitcoin

by Decrypt

Russia’s second-richest man believes digital tokens and a central bank digital currency would help the country move forward—and make the current debate in the country regarding cryptocurrency regulation pointless, according to reports. 

Business magnate Vladimir Potanin, who is worth $30.4 billion, said that advancement in the world of tokenization would “squeeze unreliable products out of the market,” in a Monday Bloomberg interview. 

Russia is currently at a deadlock about what to do about cryptocurrency regulation. The country’s central bank said last month that Bitcoin mining and transactions should be banned, citing concerns about the amount of energy that these activities consume. But the finance ministry added that it would be “necessary to allow these technologies to develop” and regulation was instead needed. 

President Vladimir Putin then called for a compromise—but he did say that Russia has “certain competitive advantages” when it comes to mining cryptocurrency, due to an energy surplus in the country.

Cryptocurrency mining in Russia is a big business. The practice requires large amounts of energy as so-called miners compete to solve complex mathematical problems and earn freshly minted Bitcoin while securing the network. Russian Bitcoin miners provide more than 10% of the computing power to the Bitcoin network. But the country’s authorities have repeatedly talked about restricting the industry. 

But Potatin, who is close with President Vladimir Putin, said that the real future in Russia is the tokenization of real-world assets—not decentralized currencies such as Bitcoin and Ethereum. 

“Metal coins were replaced by paper money, and then transactions became cashless,” Potanin was quoted saying. “Digital financial assets are just the next stage.” He reportedly also said that Atomyze, a blockchain company he is invested in which tokenizes physical things like metals, is an example of how digital assets can be valuable. 

The tokenization of real world assets puts things like art and even rare clothing on a blockchain network to give people a slice of ownership via digital tokens. 

Potanin added that a CBDC, in this case a digital ruble, could also help the country advance. A CBDC is a digital version of a fiat currency (like the US dollar or Russian ruble), backed by a central bank. They are different to cryptocurrencies like Bitcoin and Ethereum, because they are centralized and tightly controlled.

Countries around the world are in different stages of researching the technology. Some countries, like the Bahamas, have already released a digital version of their home currency. 

A number of nations have already banned cryptocurrencies like Bitcoin. A report by the Global Legal Research Directorate (GLRD) of the Law Library of Congress, states that nine countries—including China, Egypt and Morocco—have an absolute ban on cryptocurrencies, while another 42 have an implicit ban. 

https://decrypt.co/92279/putin-russia-billionaire-potanin-digital-ruble-bitcoin

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Bitcoin (BTC) $ 26,637.14 1.55%
Ethereum (ETH) $ 1,595.00 1.75%
Litecoin (LTC) $ 65.04 0.25%
Bitcoin Cash (BCH) $ 209.73 1.88%