Is this a tsunami? (How long will crypto keep going up) - Week 15-21.02.2021

in #leofinance3 months ago (edited)


This week was a good week for everybody, with people getting annoyed when their choices increase slower then the other tokens. A week where BNB was the star, with Binance Smart Chain getting more and more relevant, and Bitcoin/Ethereum reaching new ATH. 

  • Bitcoin good news: Monday, Jay-z and Jack Dorsey created and endowment to fund with Bitcoin African and Indian initiatives, allocating 500 BTC ($2.85M) for it. Bitcoin also tried the 50k, but failed to achieve the target and and suffered a correction all the way to 46k. Not too much to worry if you are a Bitcoin miner, as you can earn about 0.97 BTC per block as transaction fees (average on the last 2000 blocks). Then Tuesday came and BTC finally broke through the 50k barrier, finishing the week at 57-58k. The Motley Fool invested $5M in BTC, and Blackrock is getting ready to get some of it too. Even the Swiss canton of Zug is accepting now crypto to pay your taxes (BTC/ETH only). Thailand is also trying to accept crypto in the tourism industry, in a bid to recover faster after the pandemic. Counterpoint Global, an $150B branch of Morgan Stanley Investment, is exploring the possibility of adding BTC offers to their investors. Deutsche Bank started to offer cryptocurrency custody for the institutional clients, and to make it accessible to everyone as soon as possible. In Canada the second Bitcoin ETF is approved.

  • Bitcoin bad news: US regulators are not feeling good now that the big corporations like Tesla are replacing dollars with crypto. They are vaguely threatening to ''regulate the hell out of it'', but i think the cat is already out of the bag, and the crypto development cannot be stopped anymore, even with a major government ban. China tried, India is trying right now, and maybe US will try something soon. Chinese Lotto company 500.com bought a whole Bitcoin mining pool (BTC.com - the 5th largest mining pool). Even Vitalik mentioned that the current tensions between China and US are in fact beneficial for crypto. Federal Reserve President James Bullard contradicted US regulators saying that Bitcoin does not pose a threat to the dollar. 

  • Hack of the week: Cream Finance and Alpha Finance were targeted in one elaborated hack, losing $37.5M, with Alpha Homora v2 being the root cause, and the Iron Bank lending feature being compromised and later suspended by Cream. Andre Cronje was happy to assist them and the loophole has been patched, according to their latest updates. This is coming right after the Yearn Finance exploit on the DAI lending pools, where they lost an estimated $11M. Not to forget to mention Verge, a network that has been under a 51% attack, losing more than 5-6 months worth of transactions and balances because of it. 

  • Elon continues to create mayhem into the crypto market, with DOGE losing 23% after he pointed out that 10-11 people hold close to 50% of the total supply, with the first place having 28.7% of all the DOGE. A mention to a crypto meant to be used on Mars boosted another unrelated token called Marscoin with more than 220%. 

  • Charlie Lee (Litecoin founder) attacked the NFT  market, complaining about artificial scarcity, warning about the market flooding by all the artists trying to cash in the latest trend. This comes at a time when all the celebrity endorsed NFTs are selling for record prices. Meanwhile, the auction house Christie's was selling Beetle NFT collection ''Everydays:The first 5000 Days''. But this cannot compare with the launch of Capcom NFT's collection inspired by the Street Fighter game

  • Apple Pay customers can now use BitPay wallet app to make secure purchases on BTC, ETH, BCH and BUSD. Soon they will be also introduced on Samsung Pay and Google Pay. 

  • The Graph (token allowing programmers to build API in order to extract blockchain data for dApps using Web3.0) are planning to support more blockchains (layer one such as Near, Celo, Solana, Polkadot and Bitcoin)

  • Another funny Bitcoin story, a car enthusiast bought a vintage Honda NSX with 30.5 BTC, when bitcoin price was around 1000. The car is not worth more than $15M (in theory only). 

  • Coinbase opened a ETH 2.0 waitlist, trying to find out if their users are interested in locking up their ETH. This could be a viable option if you don't have the 32 ETH needed to launch your own node. Not that Coinbase would need more glam to attract the investors, being already evaluated at $77B. Right now, rising gas cost for the ETH fees are making the people more inclined to use DEFI aggregators like 1inch, with $10B in volume, as aggregators can provide better swap rates and they are not defaulting on bigger amounts. But this is nowhere close to Uniswap $100B cumulative volume. There are 11 DEFI projects right now with more than $1B locked in them, with a total of $40B overall. 

  • Matic, Binance and Cake increased quite nicely, with more than 70% each. At the end of the week, BNB is hovering around 280-300, far away from the 150 value at the start of the week. I am bullish right now on REEF, LIT, CAKE, BNB and LUNA. 

  • Akon is getting ready to start his pilot program, testing AKN on the Mwale Medical and Technology City in Kenya (a place with 35.000 residents, 5000 hospital workers and 2000 merchants), before starting the Akon City in Senegal. In China, in Beijing, people are testing the first real-world digital yuan, and they can convert the cash to digital and vice versa. 

And now i need to stop here, i hope you enjoyed the journey into the unknown, see you next week. 

 

Yours truly

George

 

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