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Digest: The Main News On The Cryptocurrency Market (February 22-28)

This week, one of the main topics of discussion in the crypto space was the question, when will the Bitcoin correction end? While traders were making predictions for BTC, Nigeria has taken seriously the development of a “regulatory sandbox” for the crypto, Tesla has made more money on Bitcoin than selling electric vehicles, and Tether may finally celebrate the resolution of a 2-year conflict with the regulator.

There will be the regulation of cryptocurrency in Nigeria

Nigeria has come close to solving the issue of cryptocurrency regulation. The Securities Commission (SEC) has repeatedly tried to create a “regulatory sandbox for cryptocurrency”, but here, too, the Central Bank continues to “put a spoke in its wheels.”

Earlier, the SEC approved digital assets, but the Central Bank said “No!” in early February and banned financial institutions from serving crypto exchanges. However, the regulator did not take into consideration one “but”: Nigeria is already at such a level of acceptance of cryptocurrency by the society that it will not be possible to freeze this issue (even if really want to).

As statistics show, every third resident of Nigeria used cryptocurrency during 2020; every fourth has installed a mobile app for crypto payments. According to Google Trends, Nigeria dominates search traffic for the keyword “Bitcoin”. Realizing that the crypto train can no longer be stopped, the SEC and the Central Bank announced the beginning of a joint discussion of the regulatory framework for cryptocurrency. In this case, the words of Tim Agama, head of the SEC, are very revealing:

We cannot ignore the cryptocurrency market, which is approaching $2 trillion in turnover. The world is moving forward on a daily path towards digital asset adoption. Nigeria will not be static and will not stay out of the general trend.

The loyalty of the SEC is also not devoid of a share of pragmatism: the regulator considers cryptocurrency as a channel for attracting foreign investment for the development of the Nigerian economy.

Nigeria is not the only example where people are beginning to take benefits of the digital economy. As we all know, Estonia passed laws and legalized cryptocurrency circulation much earlier, as well as Japan, China, Ukraine, and other countries. Many people have taken the path of legalizing and regulating digital assets.

SushiSwap intends to join the Solana ecosystem

SushiSwap, a decentralized exchange, continues to sharpen its product “to perfection”, aiming to become “the best exchange on the DeFi market”. This time, the SushiSwap team announced that they are considering integrating with AMM Raydium, an automated market maker based on the Solana blockchain.

What is the purpose of this collaboration? SushiSwap claims that expanding with the Solana ecosystem will solve several problems at once: lower Ethereum transaction fees, increase token exchange speed, and set limit orders. As such, SushiSwap plans to provide broader trading and staking opportunities for small traders and investors.

A detailed integration plan, codenamed “Bonsai,” has been posted on the SushiSwap blog. The developers plan to use Raydium as a bridge to bring SushiSwap to Solana. Bonsai pools from SushiSwap are expected to be deployed on Raydium’s testnet in the first quarter of 2021.

According to the developers, the final product will be an additional offer on the SushiSwap page, which will retain the familiar user interface but it will connect to the Raydium backends. The market reacted immediately to this news: within 12 hours after the publication of the Bonsai offer, Solana, SOL, and SRM tokens have risen in price by about 27%.

Let’s take a look at the value of the SUSHI token from a technical analysis point of view. At the 4-hour chart, we are in a steadily upward channel, the price fluctuates around 14-17 USD per unit, with an amplitude of 15%, which cannot but please the trader. Investors can also purchase this asset to sell at levels of 20-25 USD.

The regulator dropped charges against Tether, but the fine of $ 18.5M will have to be paid 

Tether can be congratulated – 22 months of legal red tape and claims from the New York Attorney General ended in a settlement agreement between the sides. According to the verdict, Tether and Bitfinex must pay a fine of $ 18.5 million and have pledged to report to the regulator quarterly on their reserves.

We are ready to pay the fine to put an end to this story and finally focus on the development of Tether. We are grateful to the customers who remained loyal to us despite the lengthy investigation.

The story of the “Tether case” began back in 2018. Thereat, the General Prosecutor’s Office expressed doubt that the company’s bank accounts contained the same volumes of fiat currency as tokens on crypto-exchanges. The news of an $850 million loan that Tether provided to partner Bitfinex added fuel to the fire.

Allegations of artificial printing of stablecoins flew towards Tether to pay off the resulting deficit. Back in 2019, the New York Attorney General published investigation data, according to which only 74% of Tether’s stablecoins were backed by real cash reserves at that time. Of course, this news hit Tether’s reputation, but the company’s representatives continued to fight for “their truth” and eventually managed to achieve a settlement to the conflict.

It is a very good signal for the market. It is strange, of course, that the market did not react to this event with an increase in the volume of capitalization. It looks like Tether’s statements are not competitors with Musk’s statements 🙂

The UAE may lead the ranking of the most crypto-friendly countries

Regulatory authorities of the UAE announced the development of a regulatory framework for cryptocurrency as part of the country’s development strategy for 2021. Perhaps, a lot of European countries should take the UAE as an example in solving the “cryptocurrency issue”. While other players in the global market are delaying the inevitable, the UAE already has a state licensing firm Kiklabb, which allows customers to pay for a visa and a trade license using cryptocurrency.

The UAE government is open to dialogue with companies focused on the use of digital assets and blockchain. It is why many crypto startups choose the UAE as their headquarters.

As part of the digital asset ecosystem development strategy, the UAE intends to transfer 50% of government transactions to the blockchain by the end of 2021. Unlike other countries, here the Central Bank plays in the cryptocurrency team, as evidenced by the decree on the development of a loyalty program for crypto companies. It is also planned to launch regulated crypto exchanges in the next few months.

The UAE wants to remain a very attractive country for investment, not only in real estate and technological growth but also in the digital sphere. A lot of conferences and events related to cryptocurrencies and asset digitization are held in Dubai, which fruitfully influences the creation of a hub in it for the development of this industry. The Binaryx company is holding a drawing for a package tour to this emirate: for those who are not yet in the know, follow the link below.

Tour draw to Dubai

Tesla made more money on Bitcoin than selling electric vehicles

Elon Musk is no longer the richest man in the world according to Bloomberg. The list of billionaires is again headed by Jeff Bezos with a capital of $180 billion. Some analysts associate Musk’s loss of primacy with a correction in the Bitcoin rate and a fall in the value of Tesla shares.

Tesla shares fell 13% this week from $890 to $698 for the first time since September 2020. Bitcoin price also dropped 17% on Tuesday to $48,170. The transition of Bitcoin to the phase of correction gave rise to the spread of the opinion that Tesla acquired “in the person of Bitcoin as a friend and an enemy.” But, if you look at Tesla’s profit from buying Bitcoin, most likely “friendly relations” reign here.

Tesla currently owns approximately 48,000 BTC. The company earned about $1 billion from Bitcoin in a month, which exceeded Tesla’s total profit from the sale of electric vehicles in 2020. Despite the current correction in Bitcoin, Tesla continues to be in positive territory as Bitcoin was bought at $39,000.

At the time of this writing, Bitcoin is stuck in the $44- $45,000 range. Analysts reacted rather calmly to the correction since they did not see signs of a “black swan” in the Bitcoin pullback.

Elon Musk is the direct catalyst for the current bull run. His posts and the rise in the BTC price are directly proportional. With the last tweet, he drove the BTC price by 55,000 USD. After that, a local correction followed. The current values of Bitcoin, from the point of view of technical analysis, are between the descending average by the 1-hour chart and the rising average at the 4-hour chart. It is necessary to wait for the outcome of the situation and observe the market for now.

Visa and Mastercard plan to increase commissions on credit cards

Payment giants Visa and Mastercard have announced an upcoming increase in credit card fees for online retailers, restaurants, and other merchandise providers. Oftentimes, consumers are unaware of the commissions that merchants pay on their customers’ credit card purchases. Today the commission is about 2% and is the subject of disagreement between the two camps – business and payment systems.

The commission increase was planned last year, but COVID-19 made its adjustments. On the one hand, the pandemic increased the demand for online shopping and allowed businesses to stay afloat, on the other hand, entrepreneurs faced high commissions. In such conditions, sellers will be forced to look for alternatives to payment systems, and digital assets will come to the fore in this race.

Of course, digital assets also require payment of transaction fees, but some may be cheaper alternatives to credit card payments. An additional advantage in the form of decentralization of the cryptocurrency can become the trigger that will gradually lure online business owners into the camp of digital assets.

Not every cryptocurrency can compete with such world-famous and popular payment systems. Not every cryptocurrency has a sufficiently low transaction cost since the blockchain itself is an expensive pleasure. For example, the commission on the network of the same Tether or Ethereum can go up to 10 USD. Not every item has a 10 USD value. Therefore, for cryptocurrencies to enter our device as a means of payment, a lot of work still needs to be done.

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