Since the launch of Bitcoin in 2008, Crypto has presented an endless amount of white space with imaginable and unimaginable market opportunities, often with mobile at the center of Art in Gaming. S3822
Crypto markets are struggling to recover on Monday due to global macroeconomic conditions. The market is struggling to maintain its $900 billion valuation. Investors maintained a cautious stance as they awaited the outcome of the US Fed’s monetary policy amid soaring inflation. Crypto leader Bitcoin fell to its lowest level in 3 months, while Ethereum plunged more than 8% during the day. The hype around Ethereum Merge has died down and there are currently fewer catalysts in the crypto market. Additionally, the strengthening US Dollar has also acted as a spoiler by dampening the mood of global markets, making cryptocurrencies vulnerable as well.
ETH Market Share Hits All-Time High After Merger
Ether’s market share of trading volume hit an all-time high of almost 70% compared to Bitcoin’s during the post-merger selloff last week. Significant liquidations of leveraged long positions in the derivatives markets exacerbated the drop in spot prices, driving up spot volumes. Overall, ETH’s market share has more than tripled since 2020, suggesting a lasting shift in market structure away from BTC. As volumes increased, liquidity evaporated for ETH spot markets, as measured by the amount of bids and asks within 2% of the average price on ETH order books. -USD(T). This suggests that market makers were apprehensive and removed liquidity to avoid getting caught up in merger-related volatility.
Who will bounce back? gaming & NFT 🙂
The first option among coins that could rebound from the crypto crash is IBAT. The digital asset functions as the native token of Battle Infinity, a fantasy sports game that incorporates trending concepts like the Metaverse and NFTs. In Battle Infinity, players are taken to the IBAT Premier League, a metaverse where they can purchase NFTs depicting actual athletes.
TAMA has just entered the crypto market. The asset is the native token of Tamadoge – a self-proclaimed play-to-earn Dogecoin that combines the sporadic earnings of coins even with blockchain gaming functionality. With Tamadoge, players can own digital pets that NFTs represent. These pets can be cared for and battled alongside other pets, with the chance to earn rewards if they win a battle. TAMA launched this year, and it’s still in pre-sale.
LBLOCK is another interesting option as it might bounce back from the crypto crash. The asset is the native token of Lucky Block, it is a growing NFT competition and rewards platform.
More regulation for a growing industry
- The Korea Financial Intelligence Unit (KoFIU) announced that it has reported the business activities of 16 Virtual Asset Service Providers (VASPs) to the Korea Investigation Authority for failure to register with the relevant financial authority.
- The South African Reserve Bank has issued guidelines for local banks to do business with cryptocurrencies and cryptocurrency companies. The guidelines advise banks to use anti-money laundering and counter-terrorism financing for all crypto transactions.
- Afghan police reportedly shut down 16 crypto exchanges in the western province of Herat. The Afghan central bank has banned crypto trading practices, following reports suggesting increased demand for cryptocurrencies from Afghan residents.
- The tax administration of Mendoza, the tax authority of the province (the fifth largest territory in Argentina) has announced that taxpayers can pay provincial taxes and fees with cryptocurrencies. Mendoza will only accept stablecoins, including DAI and USDT, as payment.
The digital prototype of the euro
The European Central Bank has unveiled its partners selected to collaborate on the digital prototype of the euro. The European Central Bank (ECB) has announced the selection of five new partners to support the development of a prototype digital euro. Each of the companies will play a different role in the development of the prototype. Among them is tech giant Amazon, which will be tasked with developing e-commerce payments under the project. Spanish bank CaixaBank will develop peer-to-peer online payments for a mobile app, while French multinational payment service, Worldline, is responsible for the offline version.
Payer and payee point-of-sale payments are in the hands of the ECB-backed European Payments Initiative and Italian payments technology company Nexi respectively. The ECB opened a call for partners at the end of April and received 54 respondents from national banks and multinational technology companies. The five chosen service providers were selected based on their compliance with “specific capabilities” which constituted an advantage in addition to the basic criteria required.
A new analysis and filtering tool
Coinigy, the leading cryptocurrency trading platform, today announced the availability of its new Crypto Screener tool, providing powerful analytics with access to years of data on over 8,000 tracked crypto markets. With this tool, Coinigy is making its entire cryptocurrency database publicly available in an effort to broaden access to the asset class.Traders can tap into a vast dataset spanning the entire crypto ecosystem to identify opportunities and act quickly.
Crypto billionaire Sam Bankman-Fried survived
Crypto companies have had a tough year as the price of digital assets has plummeted. Yet Sam Bankman-Fried’s FTX has become an industry safety net, bailing out struggling lenders. The billionaire CEO says this is due to hoarding cash, keeping overhead low, avoiding crypto lending, and being able to sign deals quickly as a private company. « It was important for the industry to come out of this in one piece, » Bankman-Fried told CNBC.
Most of FTX’s volume comes from clients trading « at least » $100,000 a day, he said. Bankman-Fried described the group as « highly engaged, high-volume » users who are « quite sophisticated. » These range from small quantitative trading firms to family offices and day traders. According to the company, the demographics of FTX have been less price sensitive and have held up relatively well in the crypto bear market. He pointed to the low number of employees as one of the factors of profitability. FTX has about 350 employees, about a tenth of Coinbase’s workforce.
Crypto fees are high
Small investors can pay a high price for the privilege of trading bitcoin and its many parallel digital tokens. The range of costs, from network fees to commissions or spreads for using an exchange or brokerage app to trade, looks like pennies but can be many times higher than what it costs to trade stocks or move money.
Coinbase generates an average net income of $34 to $45 per month from its 6.1 million retail customers who transact, the equivalent of $540 per year, the company revealed in its latest income statement. By comparison, a low-cost index fund that tracks a benchmark like the S&P 500 might charge $3 a year for every $10,000 invested. As another example, the Ethereum platform generated around 100 times the average fee per transaction last year compared to the revenue per transaction of Visa’s vast platform.
Crypto customers may actually pay more or less depending on factors such as their order size. But it’s been years since the typical commission on a $1,000 online stock trade was $10. Many brokerages have completely abandoned commissions or market spreads. This year, Binance.US reduced all fees for certain bitcoin transactions, which is similar to a commission-free exchange transaction. In fact, the history of trading activity might even give crypto investors hope for the future of crypto. On May 1, 1975, stockbrokers were forced to abandon fixed commissions. Will crypto follow?
Startup: helping teens discover and invest in crypto
Stack, a Seattle-based startup building a platform that lets teens invest and learn about cryptocurrencies, has raised $2.7 million to bolster its content production arm. originally spun out of a Seattle-based fintech incubator, closing a $500,000 pre-seed round at the time of On Deck and Santa Clara Ventures in January. Stack is launching iOS and Android apps, with a current waiting list of 5,000 people. The company aims to differentiate itself from other crypto trading apps by creating an educational platform alongside its investment infrastructure. This will include a stream of crypto-related content designed to draw teens away from other content on platforms like TikTok and YouTube.
The area of financial literacy is attracting growing interest among Gen Z viewers. A study found that by the end of September 2021, the hashtag “FinTok” on TikTok had over 500 million views, while the hashtags “cryptocurrency” and “investment” had over 2 billion and 3.7 billion views respectively. Stack will make its money from a $3 per month subscription. However, users can offset this cost by consuming content from the platform, which will reward crypto users for watching videos, Rush said.