roadrunner

Monero rebounded from recent losses on Tuesday, as the token attempted to recapture recent highs. The move comes as U.S. markets reopened following a public holiday on Monday. Polkadot also moved higher in today’s session, snapping a two-day losing streak. Monero (XMR) Monero (XMR) rebounded on Tuesday, as the token moved back towards a recent seven-month high. Following a low of $165.77, XMR/USD raced to an intraday peak of $173.28 earlier in today’s session. Today’s move saw monero bounce from its support at $165.00, and climb towards a resistance of $175.00. As of writing, the token remains below this ceiling, currently trading at the $172.65 level. Should this hurdle be overcome, XMR bulls will likely attempt to recapture last week’s peak of $187.20. In order for this to happen, the relative strength index (RSI), which is currently tracking at 68.71, will need to move back towards the 80.00 mark. Polkadot (DOT) Polkadot (DOT) snapped a two-day losing streak on Tuesday, with prices nearing a two-month high. DOT/USD hit a high of $6.07 earlier in today’s session, which comes less than 24 hours after trading at a low of $5.66. As a result of Tuesday’s surge, DOT moved to a ceiling at $6.10, and closer to Saturday’s high of $6.51. Looking at the chart, the rebound came as the 14-day RSI also bounced from its own support point at 72.45. Currently, the index is tracking at 74.88, with a ceiling at the 82.00 mark a possible target for buyers. As of writing, DOT has given up earlier gains, and is trading at $5.97. Register your email here to get weekly price analysis updates sent to your inbox: Will polkadot climb above $6.51 this week? Let us know your thoughts in the comments. View the full article

The cryptocurrency economy is doing well during the third week of the new year, compared to the end of 2022. It is currently valued at $993.17 billion, as many digital assets have seen double-digit gains during the last two weeks. While some of the top ten cryptocurrencies, like bitcoin and ethereum, are performing well, a few digital currencies have outperformed a number of the top ten coins in terms of gains this year. Top Cryptocurrency Performers of the Week: Decentraland’s MANA, Frax Share, and FTT Lead the Way Digital currency markets have been in the green recently, as the leading cryptocurrency, bitcoin (BTC), has risen 23.29% against the U.S. dollar in seven days. The second-leading digital currency by market capitalization, ethereum (ETH), has also gained 18.39% this week. Out of the top ten positions, bitcoin has outperformed its competitors in terms of seven-day gains. However, a large number of cryptocurrencies outside the top ten have exceeded BTC’s gains in the last week, with much higher increases against the U.S. dollar. For instance, Decentraland’s MANA token has risen 88.02% this week. Over the last 14 days, decentraland (MANA) has gained 131.8%. While the MANA gains have been significant, at $0.721 per unit, the digital currency is still down 87% from its all-time high on Nov. 25, 2021. The second-leading cryptocurrency this week is frax share (FXS), which has gained 81.69%. FXS has also increased 111% against the U.S. dollar in two weeks. The third-largest gainer this week is the ftx token (FTT), as the exchange token has climbed 62.82% higher during the last seven days. FTT managed to gain 160.5% against the U.S. dollar in 14 days. Another big gainer over the last seven days is helium (HNT), which jumped 59.53% during the week and 92.8% higher in two weeks. Aptos (APT) has increased 57.21% in seven days and 114.5% in 14 days. Other digital assets that have outperformed bitcoin’s and ethereum’s gains so far this year include solana (SOL), compound (COMP), optimism (OP), convex finance (CVX), the sandbox (SAND), and gala (GALA), respectively. Meanwhile, as there were a large number of gainers over the last two weeks, there have also been a number of losers. According to seven-day statistics against the U.S. dollar, the biggest loser is flare network (FLR), which has lost 16.76% this past week. The coin is newly launched and has only been around for just over seven days. Other losers against the U.S. dollar this week include nexo (NEXO) and unus sed leo (LEO). After a significant rise on Jan. 16, the cryptocurrency economy as a whole is up 1.47% during the last 24 hours. What do you think is driving the recent success of Decentraland’s MANA token and other double-digit gaining digital assets? Share your thoughts in the comments section below. View the full article

Bitcoin climbed back above $21,000 on Jan. 17, as markets reacted to better-than-expected Chinese gross domestic product (GDP) figures. The economic release comes as U.S. traders also returned to action, following the observation of the Martin Luther King Jr. Day celebration. Ethereum rose briefly above $1,600 earlier in the session. Bitcoin Bitcoin (BTC) rose back above the $21,000 mark on Tuesday, as markets reacted to the latest GDP figures from China. Figures from the world’s second largest economy showed that gross domestic product rose by 3% last year, higher than the 2.8% expected. As a result of this, BTC/USD rose to a high of $21,360.87 earlier in the day, less than 24 hours after falling to a bottom at $20,715.75. Looking at the chart, today’s rebound in price has pushed bitcoin closer to its long-term resistance level of $21,400. This ceiling has been in place for the past two months, and was marginally broken over the weekend. The 14-day relative strength index (RSI) continues to hover close to a ceiling of 90.00, and should BTC bulls intend to climb above $21,400, this ceiling on the RSI must first be broken. Ethereum In addition to BTC, ethereum (ETH) climbed higher in today’s session, with prices briefly moving beyond the $1,600 level Following a low of $1,529.57 to start the week, ETH/USD surged to an intraday peak of $1,603 in the early hours of this morning. Prices have since slipped, and as of writing, the world’s second largest cryptocurrency is trading at $1,569.75. Overall, with prices significantly overbought, and with bullish momentum seemingly at its peak, many expect a reversal could be on its way. Currently the RSI of 14 days is tracking at 83.84, which is its highest level since August 2020, when price was trading below $1,200. Although there are still long-term bulls, it is likely that ethereum could move into consolidation up until price strength is in more neutral territory. Register your email here to get weekly price analysis updates sent to your inbox: Could we see ethereum move lower in the coming days? Leave your thoughts in the comments below. View the full article

Vueling, a low-cost Spanish airline, has announced it is exploring the functionality of blockchain and NFT (non-fungible token) technology to accept cryptocurrency as a means of payment for its services. The company enlisted the aid of Criptan, a registered Spanish cryptocurrency exchange, and aims to open this payment option for users by Q3 2023. Vueling to Collect Payment in Crypto Vueling, one of the Spanish budget airlines that has grown after the Covid-19 travel restrictions ended, is taking its first steps to accepting crypto as payment for its services. The company announced on Jan. 14 it was examining the usage of blockchain and NFT technology in order to allow customers to acquire plane tickets with crypto. For this task, Vueling has partnered with Criptan, a national exchange that has already registered with the Bank of Spain, to serve as a payments company, processing and completing customers’ orders using crypto. Vueling states this move will turn it into the first low-cost airline to accept crypto as a means of payment in Europe. On this, Jesus Monzo, Vueling’s alliances and distribution manager, stated: This agreement places us at the forefront of new technologies and innovation, further reinforcing our commitment to our customers and offering the best and most advanced tools and solutions on our website. Jorge Soriano, Criptan’s CEO, stated the company is convinced that the introduction of crypto payments could improve user experience by showing customers the potential there is behind the implementation of such solutions. The functionality is expected to be available on the website of the airline by Q3 2023, and it will be using UATP tech, the global payments network for airlines, although the company has not indicated which cryptocurrencies will be accepted. Airlines and Crypto Other airlines have already introduced crypto and even NFTs as part of their retail operations. One of these is Flybondi, an Argentine airline, that announced it would be issuing plane tickets as NFTs in September 2022, allowing users to sell them on secondary markets. As part of that alliance, the company would also accept payments in stablecoins like USDC, using Binance Pay as a payment processing partner. But even prior to that, the Venezuelan government reported it would be accepting several cryptocurrencies as payment for plane tickets in Oct. 2021, including among these the national token, the petro. What do you think about Vueling accepting cryptocurrency payments for tickets by Q3 2023? Tell us in the comments section below. View the full article

PRESS RELEASE. (Victoria, Seychelles, 17 Jan 2023) – Leading crypto derivatives exchange Bitget announces to be the first exchange to launch copy trading in the spot market. As the first exchange for offering copy trading for derivatives in 2020, Bitget has honed its highly liquid, highly innovative flagship product, One-Click Copy Trade, to deliver a similarly intuitive experience for spot traders in 2023. Copy trading provides a good starting point for beginners to shadow their trading portfolio with a more experienced trader and increase their chance of profitability. Also, users are entitled to more transparency and flexibility as the feature discloses detailed information on the traders’ ROI, buy and sell time and price, portfolio, and P&L records, together with personalized Maximum Investment, Stop Loss and Take Profit options. One-Click Copy Trade is Bitget’s flagship product, simplifying trading for beginners by allowing them to copy sophisticated futures trading strategies with minimal effort. As of December 2022, the company’s One-Click Copy Trade in the futures market has accumulated over 80,000 traders, and 338,000 followers. The newly launched Copy Trading feature in the spot market aims to provide a seamless and convenient experience by giving users the option to copy trading strategies and own the cryptocurrency in their wallet. Users can view trader profiles provided by the platform to choose their preferred trader to follow, based on their P&L, trader ranking, and portfolio as recorded in the system. One-Click Copy Trade is a win-win solution as followers’ trades will be automatically executed with the subscribed traders’ orders after subscription and a profit share percentage will only be charged when a profit arises from the trades. The feature also offers a passive income stream for successful and experienced traders to further increase their yield. Gracy Chen, Managing Director of Bitget, says, “Bitget was the first exchange to offer copy trading in the crypto futures market in 2020, and ever since, our One-Click Copy Trade has always been a featured product in the company. The product’s success has been proven by the numbers and also helped Bitget become the largest crypto copy trading platform. We are proud to extend the product to the spot market, as this will further expand our audience base and offerings for social trading, as well as solidify our leading position in the crypto space.” “Bitget has been dedicated to providing users with the best possible social trading experience. In addition to perfecting our product offerings, Bitget also rolled out a multitude of safety and protection measures, including Fund Custody, Merkle tree Proof of Reserves, and Bitget’s US$300 million Protection Fund during the crypto winter, in order to safeguard and protect the users’ funds on our platform.” About Bitget Bitget, established in 2018, is the world’s leading crypto derivatives exchange with a core focus on social trading, currently serving over 8 million users in more than 100 countries worldwide. The exchange is committed to providing secure, professional, and one-stop trading solutions to users and aims to increase crypto adoption through collaborations with credible partners. Bitget is the exclusive crypto exchange partner with legendary Argentinian footballer Lionel Messi, and the official eSports events organizer PGL, as well as the first sleeve partner of Italian leading football team Juventus. To safeguard users’ funds on the platform, Bitget adopts top-notch security and protection measures including a $300 million Protection Fund, a Fund Custody service, pledged to be fully reserved back by the Merkle Tree Proof of Reserves model. To learn more about Bitget, please visit https://www.bitget.com. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

The World Economic Forum (WEF) has published an article predicting how metaverse tech will evolve and how it will be introduced in different sectors. For the organization, the biggest impact of the implementation of this tech will be observed in industrial environments, where it will contribute to carrying out more tasks and reducing expenses. WEF Believes Metaverse Tech Will Impact Industry First The World Economic Forum (WEF) believes that the metaverse will be first applied in industrial environments, instead of being adopted first by consumers. In an article published on Jan. 13, the organization predicts that the implementation of the metaverse will be done at an industrial level first, helping different companies to complete designing and monitoring tasks in a more efficient way. Two of the metaverse technologies that will become integral for the industry in this new phase are digital twins and extended reality. Implementing digital twins, the digitalization of a group of elements coming from the real world, will allow testing the functionality of an element, or examining the possible inefficiencies of an assembly line, or simply prototyping a model without having to build it physically. Extended reality, another of the technologies mentioned in the article, will allow designers to mix elements from the real world with digital elements, to examine the interactions between both. These technologies are already being adopted by several companies, including automaker Renault, which launched its industrial metaverse in November, aiming to save $330 million by 2025 with the implementation. Consumer Metaverse While there is significant focus on the consumer metaverse from companies like Meta, which have been investing billions in the sector, the WEF believes that industries will be the ones pushing innovation. The article states: We will develop many technologies for the industrial metaverse that will make their way into the consumer metaverse – from micro-optics and advanced haptic interfaces to AI sensing awareness. The organization believes that, once these two different metaverses are established, one will be able to improve the other and vice versa. However, it recommends shifting the focus from putting resources into the consumer metaverse, to putting them into the industrial metaverse, which is already happening in various sectors. The WEF has referred to the metaverse before, issuing recommendations for maintaining safety and privacy in metaverse worlds in May 2022, especially when including children as part of these environments. What do you think about the World Economic Forum and its focus on the industrial metaverse? Tell us in the comments section below. View the full article

After months of research, the Tanzanian central bank announced recently that it had chosen a more cautious and risk-based approach towards the adoption of its central bank digital currency (CBDC). During the research phase, the central bank said it paid particular attention “to risks and controls associated with issuance, distribution, counterfeit and usage of currencies.” Finding the Right CBDC Technology The Bank of Tanzania (BOT) announced on Jan. 14 that it had “adopted a phased, cautious and risk-based approach to adoption of CBDC [central bank digital currency].” The bank also said it will continue with its efforts aimed at finding “a suitable and appropriate use and technology for issuance of Tanzanian shillings in digital form.” According to a statement on the bank’s website, the BOT said it chose a more cautious approach after spending months researching and exploring the pros and cons of issuing the digital currency. During this period, the BOT said it found that other central banks had adopted the same posture, while six countries had chosen to cancel their CBDC adoption “mainly due to structural and technological challenges in the implementation phase.” As reported by Bitcoin.com News in May 2022, the Tanzanian central bank said it planned to launch its CBDC because this had become a trend among central banks. In addition, the bank said the digital currency would be “a safe[r] alternative because many people are being affected by cryptocurrency speculators.” However, fears the CBDC could disrupt the country’s financial system eventually forced the BOT, which signaled its readiness to launch in the first half of 2022, to adopt a more conservative approach. Risks Associated With CBDCs Meanwhile, during the research phase, the Tanzanian central bank revealed that it considered the type of CBDC to be issued, the models for issuance, the form of the digital currency, as well as the “degree of anonymity or traceability.” The statement also suggested the bank had given more attention to associated risks. “Particular attention also is paid to risks and controls associated with issuance, distribution, counterfeit and usage of currencies,” the central bank said. In the statement, the BOT said once the research is complete, the Tanzanian public will be given information on the way forward and this will likely include a roadmap for the “transition to CBDC adoption.” Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The central bank of Georgia intends to publish a document detailing the concept of a national digital currency in the coming months. Other participating parties will use it to finalize their proposals for the pilot which the monetary authority plans to initiate in the first half of the year. Financial Authorities in Georgia Gear Up for Digital Currency Trials The National Bank of Georgia (NBG) is going to release a ‘digital lari’ whitepaper, allowing potential partners to fine-tune their proposals for the test phase of the project. A pilot version of the central bank digital currency (CBDC) was initially expected in 2022 but the NBG postponed the trials for this year. “In the first half of 2023, we will publish the document and soon after that, together with the winning partner, we will discuss how long it would take to implement the project,” Deputy Governor Papuna Lezhava explained in an interview with the Rustavi 2 TV channel. Several alternative approaches to testing the digital incarnation of the Georgian lari have been approved already, the official further revealed. Noting that it remains to be decided whether to continue with the realization of the project, Lezhava said: At the first stage, it will be a rather limited pilot version. On this basis, the technical characteristics of the ‘digital lari’ will be evaluated. “The mandate of the NBG is to ensure financial and price stability. The development of digital technologies has necessitated the development of the central bank currency and the creation of a digital version of the lari,” Georgia’s monetary policy regulator commented in a prior statement. The bank elaborated that the need for a CBDC also stems from the need to better meet the requirements of the digital economy and increase the effectiveness of economic policy. It also emphasized that the state-backed coin will have legal tender status in Georgia. “The digital lari will become a cheaper, more secure and faster means of payment than the current fiat lari in its cash and non-cash forms. The services of intermediaries, commercial banks or payment systems, will not be required to carry out operations with the digital lari,” the NBG detailed while highlighting that the new platform will also be able to function offline. Do you think the National Bank of Georgia will issue a digital lari this year? Let us know in the comments section below. View the full article

Authorities in Germany, Bulgaria, Serbia, and Cyprus have taken down a cryptocurrency scam network in collaboration with Europol. “The suspects used advertisements on social networks to lure victims to websites covertly operated by the criminals, which offered seemingly exceptional investment opportunities in cryptocurrencies,” Europol detailed. Authorities Cracking Down on Cryptocurrency Scams Europol announced Thursday that authorities from Bulgaria, Serbia, Cyprus, and Germany, in collaboration with Europol and Eurojust, have taken down “call centers selling fake crypto.” The criminal network, operating through call centers, “lured victims into investing large amounts of money into fake cryptocurrency schemes,” Europol explained, elaborating: The suspects used advertisements on social networks to lure victims to websites covertly operated by the criminals, which offered seemingly exceptional investment opportunities in cryptocurrencies. Fifteen people have been arrested in the case while 261 were questioned and 22 locations were searched, including four call centers. The authorities also seized three hardware wallets containing about $1 million in cryptocurrencies, approximately 50,000 euros in cash, three vehicles, electronic equipment, documents, and data backups. Victims, primarily from Germany, were initially convinced to invest small sums of money. “Fake price hikes leading to supposedly lucrative profits for investors then persuaded them to make transfers of higher amounts,” the EU law enforcement agency noted, adding: Currently, it is estimated that the financial damage to German victims is over two million euro. Europol further revealed that there are also victims in other countries, including Switzerland, Australia, and Canada. What do you think about the authorities cracking down on cryptocurrency scams? Let us know in the comments section below. View the full article

Following the launch of Donald Trump’s non-fungible token (NFT) card collection, winners of the Trump-themed prizes are selling prize NFTs on secondary NFT marketplaces such as Opensea. The Polygon-minted NFTs act as passes for a one-on-one Zoom meeting with the 45th president of the United States and a gala dinner with Trump. During the past 24 hours, the “Win Trump Prizes” collection has seen 38 ether, or roughly $53,000 in sales, on Thursday, Jan. 12, 2023. Trump’s NFT Prize Collection Auctions off on Opensea’s NFT Marketplace The former president of the United States, Donald Trump, recently sold a collection of non-fungible token (NFT) cards that sold out on the first day of its launch. The NFT collection caused a stir among pundits on the left side of the political spectrum. When the sale was conducted, NFT owners were given a chance to win special prizes related to Trump, including golfing with the former president, a one-on-one Zoom call, and an invitation to a gala dinner with Trump in Florida. Those prizes were minted as NFTs on the Polygon blockchain, just like the trading card set. They are now seeing secondary sales on Opensea, the leading NFT marketplace in terms of sales volume. At 3:00 p.m. Eastern Time on Jan. 12, 2023, the “Win Trump Prizes” collection on Opensea has seen 38 ethereum (ETH), or roughly $53,000 in sales, during the last 24 hours. At the time of writing, the Win Trump Prizes collection has a floor value of around 0.0219 ETH. One particular ticket, called a “Group Zoom Event w/ Pres. Trump,” is selling for 0.0466 ETH or $66.43 for the NFT ticket. Trump’s prize NFT sales currently hold the 48th position in terms of NFT collection sales in the last day. It has surpassed the Rarepass NFT collection, which raked in $52,458 today, and it is below the Rektguy NFT collection’s $54,444 in sales over the last 24 hours. The Win Trump Prizes NFT collection, however, has done better in 24-hour sales than collections such as Cool Cats, Zed Run, Solana Monkey Business, and World of Women on Jan. 12. The Win Trump Prizes collection sales are lackluster and they only represent 0.18% of the $29.77 million in NFT sales on Thursday. Trump’s original trading card NFTs have seen $20,701 in sales on Jan. 12, which is 44.90% lower than the day prior. What do you think about Trump’s NFT prize collection and its secondary market? Share your thoughts in the comments section below. View the full article

In roughly 202 days, the cryptocurrency network Litecoin (LTC) will experience a block reward halving on or around Aug. 3, 2023. Litecoin will be the first major proof-of-work (PoW) blockchain to see a reward reduction before Bitcoin’s upcoming halving, which is expected to occur 203 days from now. Litecoin Halving Set to Occur on or Around Aug. 3, 2023 Litecoin, the 14th-largest cryptocurrency today, is preparing to experience a block reward halving in 202 days. It will be the first major proof-of-work (PoW) cryptocurrency to have a reward halving, besides the upcoming reduction scheduled to happen in 158 days for Dash. However, Dash’s reduction is different than a halving as the reward will be reduced from 2.763 Dash to 2.566 Dash. Like Bitcoin, Litecoin’s block halving cuts the reward in half (by 50%) and it will drop from 12.5 LTC to 6.25 LTC. While litecoin (LTC) holds the 14th-largest market capitalization today, it used to be a top-ten cryptocurrency contender in the early days of the crypto market. LTC’s network has many differences from Bitcoin (BTC) as there are more coins in circulation — currently more than 72 million LTC in circulation. However, LTC is nearing its maximum supply of 84 million. Bitcoin’s block time is usually around 10 minutes per block, but LTC blocks are much faster at 2.5 minutes per block. 🔥Litecoin Halving Cycles 2W chart🔥 Something to give us some bullish vibes for short term future and real strong bullishness starting from June 2024. 💡 Next Litecoin halving will be on August 3rd 2023 pic.twitter.com/8tzlCUQICp — Zen ☮️ (@WiseAnalyze) January 8, 2023 Two-week market statistics show that litecoin (LTC) has gained 29% against the U.S. dollar, but LTC is down 79% from the cryptocurrency’s all-time high. LTC reached an all-time high of around $410 per unit over a year ago on May 10, 2021. In addition to the difference in supply between LTC and Bitcoin (BTC), Litecoin’s proof-of-work algorithm, Scrypt, is different from SHA-256. The upcoming LTC halving will be Litecoin’s third block reward reduction since its inception. LTC experienced its first halving on Aug. 25, 2015, and this halving reduced the block reward for miners from 50 LTC to 25 LTC. LTC block halvings occur every 840,000 blocks, or four years. The second Litecoin block reward halving occurred on Aug. 5, 2019. This particular halving reduced the block reward for miners from 25 LTC to 12.5 LTC, the current reward level for Litecoin miners today. In addition to Dash and Litecoin, the next three blockchains that will see block reward halvings are Bitcoin Cash (BCH) in 450 days, Bitcoin SV (BSV) in 455 days, and Bitcoin (BTC) in 474 days. Ethereum Classic is expected to see a block reduction similar to Dash’s in 568 days. And, Zcash (ZEC) will see a halving in 677 days. The ZEC block reward halving will see the subsidy drop from 3.125 ZEC to 1.5625 after the halving occurs on or around Nov. 20, 2024. What do you think will be the impact of the upcoming Litecoin halving on its mining ecosystem and price? Leave your thoughts in the comments below. View the full article

Bitcoin’s mining difficulty, the measure of how difficult it is to find a new block and add it to the blockchain, is set to increase significantly on Jan. 15, 2023, according to current estimates. At the time of writing, Bitcoin’s mining difficulty appears to be on track for a 10% increase, rising from 34.09 trillion to an all-time high of 37.57 trillion. Upcoming Difficulty Retarget to Boost Hashrate Requirements The leading cryptocurrency network, Bitcoin (BTC), is set to experience a record-setting difficulty increase in three days, on or around Jan. 15, 2023. At the time of writing, the network’s hash rate is at 268.79 exahash per second (EH/s) and the blockchain’s computational power reached an all-time high on Jan. 6, 2023. On that day, at block height 770,709, the network’s hash power reached 361.20 EH/s. Bitcoin block times, also known as block intervals, have been between 8 minutes, 52 seconds, and 9 minutes, 6 seconds in length. The block interval is the average amount of time it takes for a new block to be added to the blockchain, and the network’s difficulty is designed to keep the block time around 10 minutes per block. The actual time between blocks can vary from this average, and since the last difficulty change on Jan. 2, 2023, at block height 770,112, block intervals have been faster. For this reason, the difficulty retarget on Jan. 15 will be a notable increase, and a rise that has not been recorded since October 2022. Foundry USA and Antpool Command Nearly Half of Bitcoin’s Global Hashrate At the time of writing, and up until the next difficulty change, BTC’s network difficulty is approximately 34.09 trillion. This means that, on average, it takes 34 trillion hashes (or attempts) to find a valid BTC block and add it to the blockchain. Currently, analytics sites detail that Bitcoin’s next difficulty change is expected to rise by 10.1% to 10.21% in three days. At the highest estimate, the difficulty would reach an all-time high of 37.57 trillion, and bitcoin miners would need to exert 37.57 trillion hashes to find a block on the Bitcoin blockchain. Presently, Foundry USA is the top mining pool during the last three days, with 29.57% of the global hashrate. Foundry is followed by Antpool (19.36%), F2pool (16.38%), Binance Pool (8.72%), Viabtc (8.30%), and Braiins Pool (3.40%), respectively. Between Foundry and Antpool, the two pools currently command 48.93% of the network’s total hashrate. What do you think about Bitcoin’s upcoming mining difficulty change? Share your thoughts and predictions in the comments below. View the full article

Avalanche was one of Thursday’s big gainers, as the token rose by as much as 22% in today’s session. The move came as inflation in the United States fell to 6.5% as markets were expecting. Polkadot was another notable mover, with prices climbing close to a four-week high. Avalanche (AVAX) Avalanche (AVAX) rose by as much as 22% in today’s session, as cryptocurrencies reacted to the latest U.S. inflation report. AVAX/USD moved to a peak of $16.11 earlier in the day, which comes less than 24 hours after falling to a bottom of $12.41. Thursday’s spike in price pushed avalanche to its highest point since November 8, when price was at a peak of $18.15. Looking at the chart, earlier gains have somewhat eased, with AVAX now trading at $15.18. This came as the 14-day relative strength index (RSI) failed to break out from a resistance at the 80.00 level. As of writing, the index is now tracking at 69.94, which is still deep in overbought territory. Polkadot (DOT) Polkadot (DOT), was another big gainer in today’s session, with prices moving closer towards a four-week high. Following a low of $4.84, DOT/USD managed to reach an intraday high of $5.16 earlier on Thursday. As a result of this move, DOT broke out of a key resistance level of $5.15, hitting its strongest point since December 16 in the process. As can be seen from the chart, the 14-day RSI has failed to move beyond its long-term ceiling of 68.00, and has since slipped lower. Price strength is now tracking at 63.10, with DOT declining from its earlier peak, and the asset is trading at $5.09. In order for the token to continue to move higher, there will first need to be a rally above its 68.00 point on the RSI. Register your email here to get weekly price analysis updates sent to your inbox: Will we see a reversal in polkadot now that price is overbought? Let us know your thoughts in the comments. View the full article

According to several reports, Bulgarian law enforcement officials are investigating crypto lender Nexo for alleged money laundering and sanctions violations. Siika Mileva, a spokesperson for Bulgaria’s attorney general, said the probe into Nexo is a large-scale operation involving 300 investigators from various agencies, including the National Security Service, Gendarmerie, and Sofia Police. Bulgarian Law Enforcement Raids Offices of Crypto Lender Nexo for Suspected Money Laundering and Sanctions Violations On Jan. 12, 2023, reports indicate that Bulgarian law enforcement officials raided cryptocurrency lender Nexo’s offices. The company is under investigation for violating sanctions against Russia and money laundering crimes, according to Siika Mileva, spokesperson for Bulgaria’s attorney general. The head of Bulgaria’s cybercrime unit, Svetlio Vasilev, stated: A client of the platform who transferred cryptocurrency has been officially declared an organizer of terrorist activity. It remains to be determined who will be charged with the crimes. More than 15 addresses are being searched, and new persons of interest are being established. Nexo, which is based in London but also operates offices in Sofia where the raid took place, immediately denied any wrongdoing in a statement on Twitter following the story. “Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business,” the company said on Thursday. Nexo added: Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries, it is bordering with racketeering, but that too shall pass. The news follows reports at the end of September 2022 that a half-dozen securities regulators from the United States were probing Nexo and filed actions against the firm’s lending services. The state of New York and attorney general Letitia James also filed a lawsuit against Nexo. Following the lawsuit from James, Nexo declared it was exiting the U.S. market. The spokesperson for Bulgaria’s chief prosecutor detailed that roughly $94 billion has been funneled through Nexo over the last five years. Nexo’s executives believe the investigation and raid are unfounded and further stressed that the company is “always cooperating with the relevant authorities and regulators.” In addition to searching the offices in Sofia, prosecutors detailed that the investigation was launched several months ago after alleged suspicious transactions were made. Allegedly, the reported transactions were meant to circumvent Western sanctions imposed against the Russian Federation. What are your thoughts on the allegations against Nexo and the ongoing investigation into their business practices? Let us know what you think about this subject in the comments section below. View the full article

Bitcoin rose to a four-week high on Thursday, as price surged above $18,000 hours before the upcoming U.S. inflation report. This comes as many expect today’s figures to show a considerable drop in consumer prices. Ethereum also moved higher, climbing above $1,400 in the process. Bitcoin Bitcoin (BTC) surged above $18,000 on Thursday, as markets prepared for a further drop in U.S. consumer prices. BTC/USD raced to an intraday high of $18,268.55 earlier in today’s session, less than 24 hours after trading at a low of $17,337.99. Today’s move saw bitcoin climb to its strongest point since December 14, when prices were at a peak of $18,385. Looking at the chart, the rally took place as the 14-day relative strength index (RSI) continued to move deeper into overbought territory As of writing, the index is now tracking at 75.98, which is its highest mark since October 2021. Depending on this afternoon’s inflation rate, there could be a reversal in BTC, as earlier momentum may have already peaked. Ethereum Ethereum (ETH) was also significantly higher in today’s session, with prices moving to a two-month high. Following a low of $1,323.58 on Wednesday, ETH/USD jumped to a peak of $1,408.13 earlier in the day. As a result of this rally, the world’s second largest cryptocurrency is now trading at its strongest position since November 8. Like with bitcoin earlier, the move has occurred as the RSI broke out of a ceiling at 69.00, and it is currently tracking at 75.89. In addition to this, the 10-day (red) moving average has continued its upwards crossover versus its 25-day (blue) counterpart. Should this momentum maintain this trajectory, then the next target for bulls will likely be a ceiling of $1,470. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect the inflation report to send cryptocurrencies even higher? Leave your thoughts in the comments below. View the full article

The agency overseeing the financial sector in Germany has issued a warning about the ‘Godfather’ malware attacking banking and crypto applications. Hundreds of these platforms have been targeted, the regulator noted, including those operating in the Bundesrepublik. Financial Authorities Advise Germans How to Protect Their Mobile Apps From Malware The Federal Financial Supervisory Authority of Germany (Bafin) has warned consumers about the threats from a malicious software known as ‘Godfather.’ The Trojan often mimics a legitimate app and records user input when accessing fiat and crypto accounts. In a notice published on Monday, the watchdog pointed out that Godfather has already attacked around 400 banking and cryptocurrency apps, including those developed by financial institutions operating in Germany. It is yet unclear how precisely the malware loads onto the targeted devices but it usually launches as a fake interface of a regular banking or crypto application to collect login information and transmit it to cybercriminals, Bafin explained. The malware also sends push notifications to obtain codes generated for two-factor authentication purposes. The acquired data allows hackers to gain access to customer accounts and digital wallets, the press release detailed. In November, Germany’s Federal Office for Information Security (BSI) published a video providing consumers in the country with practical tips on how to safely use their mobile apps. Godfather is designed to infect and take control of Android-based devices in order to download and install other malicious software. It may also use them to send messages, including spam, and for conducting denial-of-service (DDoS) attacks. The all-time highs of 2021 provoked an increase in attempts to steal coins, including hackers using fake apps to drain wallets. However, according to recently released blockchain security data, crypto incidents involving hacks, code exploits, and exit scams reached a record low for 2022 last month. The negative market developments also took a toll on the industry. In the aftermath of the collapse of major players such as crypto exchange FTX, Bafin issued a call in mid-December for global regulations ensuring better protection for consumers in the space. Do you expect attacks through malware like Godfather to increase in the future? Share your thoughts on the subject in the comments section below. View the full article

Chinese billionaire Jack Ma recently agreed to give up control of Ant Group as part of changes to the fintech’s corporate structure, which will supposedly not have an impact on “the economic interests of any shareholders of Ant Group and their beneficiaries.” Once the process is complete, no single shareholder will have control over Ant Group, the fintech said in a statement. Shareholders’ Economic Interests Unaffected Billionaire and Chinese fintech giant Ant Group’s controlling shareholder, Jack Ma, recently agreed to an arrangement that dilutes his shareholding and his voting rights. As a result of these changes, Ma, who directly and indirectly controlled more than 50% of Ant Group, will see this influence whittled down to just 6%. According to a statement issued by the fintech firm on Jan. 7, the adjustment to the Ant Group’s respective shareholders’ rights will see “the founder, representative of our management and employees exercising their voting rights independently.” Still, the adjustment is not expected to alter or adjust shareholders’ respective economic interests. “The Adjustment is being implemented to further enhance the stability of our corporate structure and sustainability of our long-term development. The Adjustment will not result in any change to the economic interests of any shareholders of Ant Group and their beneficiaries,” the Ant Group said in a statement. Chinese Authorities Still Expected to Fine Ant Group The fintech giant added that once the adjustment process is complete, no shareholder including Ma will “enter into any form of concert party arrangements with any other party” or “seek control over Ant Group alone or jointly with any other party.” The changes however do not affect Ant Group’s day-to-day operations, the statement added. Although Ma, who has been targeted by Chinese regulators in the past, has reportedly agreed to cede control of the fintech firm, one report suggests authorities in China will still impose a $1 billion fine on Ant Group. Furthermore, the fintech said the changes to its corporate structure do not mean it is reviving its much-publicized $37 billion initial public offering. Meanwhile, following this announcement, the share price of Ant Group-linked firms as well as that of the e-commerce giant Alibaba all reportedly went up by 5%. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The U.K. is mulling over launching a digital pound as it remains committed to becoming a cryptocurrency hub, a government representative has indicated. British authorities should also regulate payments with stablecoins, according to the official. United Kingdom Prepares to Begin Consultation on Digital Pound Currency The executive power in London is considering the introduction a digital version of the national currency, Economic Secretary to the Treasury Andrew Griffith told lawmakers, the BBC reported. A public consultation on the attributes of a digital pound would be launched in the coming weeks, he said, speaking to the parliamentary Treasury Select Committee. Quoted by Reuters, he also emphasized: The consultation is going to say this is an if and not a when. We are not fully into the inevitability of doing this. A digital pound raises many public policy issues and the government has to “get them right,” Griffith stated. He addressed concerns that a state-backed coin could erode privacy, insisting that its design would not allow the authorities to track individual transactions beyond measures targeting crime like money laundering. Griffith further elaborated that the first use case for a central bank digital currency (CBDC) issued by the Bank of England would likely be in wholesale settlements but admitted that a privately issued, fiat-backed stablecoin “would probably get there first.” “I want to see us establish a regime, and this is within the FSMB, for the wholesale use for payment purposes of stablecoins,” the minister added referring to the Financial Services and Markets Bill, which is currently being debated in the British Parliament. UK May Adopt Broader Crypto Regulations Than the EU Andrew Griffith also revealed that another consultation will be initiated on the U.K.’s regulatory approach toward crypto assets in general. While the EU has already agreed on a set of comprehensive rules for the market expected to come into force in 2024, the minister pointed out that the U.K. regulations could be even broader and include decentralized finance. “We want the right regime, operated in the right way, that has the right balances in it,” he told the members of the committee while vowing to hold multiple roundtables with industry participants as part of the discussions. Andrew Griffith’s statements come after last year’s slump in the valuations of major cryptocurrencies like bitcoin and the following the collapse of large market players such as crypto exchange FTX. Amid an ongoing crypto winter, consumer protection in the space has come under scrutiny, the reports noted. Do you expect the U.K. to develop and issue a digital pound? Share your thoughts on the subject in the comments section below. View the full article

A former Coinbase employee’s brother has been sentenced to 10 months in prison in what the U.S. Department of Justice (DOJ) called a “groundbreaking cryptocurrency insider trading case.” ‘Groundbreaking’ Crypto Insider Trading Case The U.S. Department of Justice (DOJ) announced Tuesday that Nikhil Wahi “was sentenced to 10 months in prison” in a “groundbreaking cryptocurrency insider trading case.” He pled guilty to one count of conspiracy to commit wire fraud. The Justice Department explained that Wahi was sentenced “for his participation in a scheme to commit insider trading in cryptocurrency assets by using confidential information from his brother, a former product manager at Coinbase Global Inc. (Coinbase), about which crypto assets were scheduled to be listed on Coinbase’s exchanges.” Referring to the case as “the first-ever insider trading case involving cryptocurrency markets,” U.S. Attorney Damian Williams commented: At a time when the cryptocurrency markets have been plagued by fear, uncertainty, and doubt, insider trading creates the impression that everything is rigged and that only people with secret advantages can make a real buck. “Today’s sentence makes clear that the cryptocurrency markets are not lawless. There are real consequences to illegal insider trading, wherever and whenever it occurs,” he continued. The DOJ and the U.S. Securities and Exchange Commission (SEC) filed “insider trading charges” in July last year against Nikhil Wahi, his brother Ishan Wahi, and their friend, Sameer Ramani. The authorities explained that around October 2020, Nikhil Wahi obtained confidential information from his brother, who was working on which cryptocurrencies would be listed on Coinbase exchanges. He then anonymously acquired those crypto assets shortly before Coinbase publicly announced that it was listing them on its exchanges. “On multiple occasions following Coinbase’s public listing announcements, Nikhil Wahi sold the crypto assets for a profit,” the DOJ noted, adding: In addition to the prison sentence, Wahi, 27, of Seattle, Washington, was ordered to pay $892,500 in forfeiture. Do you think the ex-Coinbase employee’s brother should go to prison for 10 months for insider trading? Let us know in the comments section below. View the full article

The Central Bank of Russia has detailed two methods for implementing the digital ruble and other state-backed coins in international settlements. The monetary authority also plans to start testing consumer-to-business (C2B) operations in the first quarter of the year. Russia’s Central Bank to Propose Platforms for Digital Currency Payments in Foreign Trade Moving forward with efforts to introduce its central bank digital currency (CBDC) amid sanctions and financial restrictions, the Bank of Russia is preparing to offer solutions for processing cross-border CBDC payments, the Russian press unveiled. The proposals are part of a presentation seen by the business daily Kommersant. The document outlines two potential payment models which the Russian monetary policy regulator intends to develop in the first quarter of 2023. The first one relies on bilateral agreements between countries to integrate their digital currency platforms. This approach puts an emphasis on ensuring convertibility between the CBDCs of two partnering nations and facilitating transfers in accordance with pre-agreed rules. As an alternative, the Bank of Russia suggests the establishment of a single, multilateral platform enabling payments between the digital currencies of multiple nations. These transactions would be carried out under common standards and protocols, too. Bank of Russia to Trial C2B Transactions With Digital Ruble Russia’s access to global finances and markets has been severely limited by penalties imposed by the West over its invasion of Ukraine. Besides the push to speed up the introduction of the digital ruble, the Russian central bank has also softened its stance on crypto payments as long as they are employed exclusively in international trade or under special legal regimes. The presentation quoted by the Russian daily also provides a glimpse of other next steps in the CBDC project, including the testing with C2B transactions with participating banks. Over a dozen banking institutions and other financial companies have joined the trials so far. Preparing the necessary legislation to regulate operations with the digital version of the national fiat is another objective for the said period. A respective bill was already filed in December. The monetary authority also plans to pilot digital ruble payments between customers on a limited scale. Do you expect international payments with central bank digital currencies to soon become a reality? Share your thoughts on the subject in the comments section below. View the full article

PRESS RELEASE. Victoria, Seychelles 11 Jan 2023 – Leading crypto exchange Bitget launches the Fund Custody service for professional investors and institutions. The service will provide dedicated wallets to qualified accounts to maximize protection of customers’ funds on the platform. The exchange also recently released the latest snapshot of its Merkle tree Proof of Reserves to reassure users that their assets are held in 1:1 reserves. To be qualified for the Fund Custody service, users will have to store more than or equal to 100,000 USDT worth of combined assets (including spot, futures, Bitget Earn, fiat currency, and leverage) on the platform. Once the application is approved, the user will then be assigned a separate custodial wallet, with its own dedicated address to check and withdraw funds separated from the main reserve. Storing the asset in a separate wallet prevents users’ funds from being affected in case of emergencies such as an exchange run, or other cybersecurity threats. The wallet assets will be rounded on a daily basis to make sure the user still meets the required conditions. Additionally, Bitget has recently updated its Merkle tree snapshot as of December 31, 2022, and the latest reserve ratio of the most popular tokens are as follows: BTC reserves are held at 650% USDT reserves are held at 185% ETH reserves are held at 237% The exchange is committed to be fully reserved holding customers’ assets on the platform at least on a 1:1 reserves ratio. Gracy Chen, Managing Director of Bitget, remarks, “Protecting our customers’ assets is, and always will be, our top priority at Bitget. Ever since the collapse of some bad actors in the industry, we have taken a series of initiatives for heightened protection. In addition to the security offered with our US$300 million Bitget Protection Fund and Merkle tree Proof of Reserves, we are proud to announce our Fund Custody service. The new service, equipped with industry-grade security systems and dedicated wallet addresses for qualified users, shall further foster transparency and elevate safety for our users and their funds.” About Bitget Bitget, established in 2018, is the world’s leading cryptocurrency exchange with innovative products and social trading services as its key features, currently serving over 8 million users in more than 100 countries around the world. The exchange is committed to providing a secure, one-stop trading solution to users and aims to increase crypto adoption by collaborations with credible partners, including legendary Argentinian footballer Lionel Messi, the Italian leading football team Juventus, and the official esports events organizer PGL. To learn more about Bitget, please visit https://www.bitget.com. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

On Jan. 10, 2023, the World Bank published its Global Economic Prospects report, stating that the outlook for the global economy and future economic conditions is bleak. According to the report, 2023 growth forecasts have been cut across the board, with the global economy projected to grow by 1.7% in 2023 and 2.7% in 2024. The World Bank also cited a number of adverse developments that could push the world’s economy into a deep recession. World Bank Report Urges Action on Climate Change, Increased Investment to Offset Adverse Economic Shocks The World Bank, the financial organization with 174 member countries, released its Global Economic Prospects report on Tuesday. The report envisions a “sharp, long-lasting slowdown to hit developing countries hard.” The World Bank cites numerous issues plaguing the global economy, including the Covid-19 pandemic and “escalating geopolitical tensions,” as reasons why the world’s economy could spiral into a recession. The report also mentions interest rate hikes by central banks and “higher-than-expected inflation” as contributing factors to the “adverse developments.” The World Bank’s report further detailed that inflation has dropped to some degree at the end of 2022. It also noted that skyrocketing commodity and energy prices have subsided for the time being. The World Bank warns, however, that global economies will likely still see inflation persist, and supply disruptions could stem from adversities such as the Covid-19 pandemic and the Ukraine-Russia war in Europe. If inflation persists, the World Bank warns that benchmark bank rates could continue to climb in order to curb inflationary pressures. “Growth in advanced economies is projected to slow from 2.5% in 2022 to 0.5% in 2023. Over the past two decades, slowdowns of this scale have foreshadowed a global recession,” the World Bank’s Global Economic Prospects report details. “In the United States, growth is forecast to fall to 0.5% in 2023—1.9 percentage points below previous forecasts and the weakest performance outside of official recessions since 1970. In 2023, euro-area growth is expected at zero percent—a downward revision of 1.9 percentage points. In China, growth is projected at 4.3% in 2023—0.9 percentage point below previous forecasts.” The report’s summary concludes that one thing that can help the global economy is by improving “long-term growth prospects by bolstering resilience to climate change.” The World Bank insists that policymakers need to “address climate change and support people affected by crises and hunger.” In order to “offset the long-term damage from the adverse shocks of the past three years,” emerging markets and developing economies will need to “substantially increase investment,” according to the World Bank’s report. What are your thoughts on the World Bank’s Global Economic Prospects report and its predictions for the global economy? Let us know your thoughts about this subject in the comments section below. View the full article

The U.S. government has arrested and charged the creator of “Mutant Ape Planet” non-fungible tokens (NFTs) for allegedly defrauding crypto investors. “The purchasers were ‘rug pulled,'” the Department of Justice (DOJ) described, adding that millions of dollars in cryptocurrency were diverted for the NFT creator’s personal benefits. DOJ Takes Action Against NFT Rug Pull Scheme The U.S. Department of Justice (DOJ) announced Thursday that Aurelien Michel has been charged with “defrauding purchasers of ‘Mutant Ape Planet’ NFTs, a type of digital asset, of more than $2.9 million in cryptocurrency.” The defendant is a French national residing in the United Arab Emirates (UAE). He was arrested Wednesday at John F. Kennedy International Airport. The Mutant Ape Planet (MAP) NFTs were marketed and sold with false promises of numerous rewards and benefits, including exclusive opportunities for additional investments, giveaways, merchandise, and other rewards, the DOJ detailed, elaborating: After selling out of the NFTs, the purchasers were ‘rug pulled’ … Millions worth of the NFT purchasers’ cryptocurrency was diverted for Michel’s personal benefit. Mutant Ape Planet is a collection of 6,799 unique mutant apes that has no relationship with the popular Bored Ape Yacht Club, a different set of monkey-themed NFTs. Ivan J. Arvelo, special agent in charge of Homeland Security Investigations (HSI) in New York, described: “Aurelien Michel perpetrated a ‘rug pull’ scheme – stealing nearly $3 million from investors for his own personal use.” The DOJ noted that “in a social media chat with current and prospective purchasers, Michel admitted to the fraudulent ‘rug pull,’ but blamed the community of NFT purchasers for his actions, stating, ‘We never intended to rug but the community went way too toxic.'” While the Mutant Ape Planet NFT developers “promised to fund a community wallet for marketing, and would offer purchasers raffles, giveaways, airdrops, and tokens with staking features,” the DOJ said: The purchasers of the Mutant Ape Planet NFTs did not receive any of the promised benefits set out above. What do you think about this case? Let us know in the comments section below. View the full article

The Tron-based stablecoin USDD fell below $1 parity again during the first week of 2023 and on Jan. 10. Four days ago, the stablecoin dropped to $0.972 per unit and on Tuesday, Jan. 10, 2023, USDD slipped to $0.977 per unit. At the time of writing, the Tron-issued stablecoin is trading at 98 cents per coin. USDD Stablecoin Dips Down to 97 Cents per Token There have been some slight fluctuations in USDD’s price at the start of the new year, as the stablecoin has dipped to the 97-cent range on a few occasions in 2023. After Terra’s stablecoin depegging event in May 2022, USDD started to slip slightly below the $1 peg, causing anxiety in the crypto industry. A number of other stablecoins saw similar deviations. On June 19, 2022, USDD reached a low of 92.8 cents per unit, but the stablecoin managed to regain the $1 peg, trading between 98 cents and 99 cents per unit. In mid-Dec. 2022, USDD deviated from the $1 parity, and Tron’s Justin Sun said that the team deployed more capital. USDD has seen fluctuations in value since Dec. 11, 2022, and it reached a low of $0.971 on Dec. 13, 2022, according to coingecko.com statistics. Last week, a similar instance occurred as the USDD price dipped to $0.972 per unit on Jan. 6, 2023. Charts show that USDD’s action four days later on Tuesday, Jan. 10, 2023, indicates that the stablecoin slid to a low of $0.977 per unit during the past 24 hours. According to the project’s Tron DAO Reserve page, USDD is over-collateralized by 202.41% compared to projects like DAI, which is 120%, and USDT and USDC at 100%. USDD is currently the eighth-largest stablecoin by market capitalization, which is $710.03 million at the time of writing on Tuesday 4 p.m. Eastern Time. The number of USDD in circulation is higher at 725,332,035. Currently, there is roughly $33.44 million in global USDD trade volume during the past 24 hours. With USDD trading at 97 cents at times, it means that someone who owns 1,000 USDD can only get around $970 in U.S. dollars. Meanwhile, the rest of the top ten stablecoins on Jan. 10, 2023, are trading for USD values between $0.997 to $1. Statistics further show that USDD’s coins in circulation grew by 0.8% over the last 30 days. What are your thoughts on the price fluctuations USDD has experienced at the start of 2023? Share your opinion on this topic in the comments section below. View the full article

A newly-released study published in December 2022 reveals that South Korea’s “kimchi premium,” the divergence in cryptocurrency valuations on Korean exchanges compared to Western trading platforms, is strongly associated with a surge in international remittances to China. Examination of Overseas Remittances to China Uncovers Strong Correlation with South Korea’s ‘Kimchi Premium’ According to a study conducted by Jangyoun Lee, an assistant professor at Incheon National University, and Taehee Oh of the Bank of Korea, South Korea’s kimchi premium appears to be significantly correlated with an influx of overseas remittances to China. The researchers note that the first instance of the kimchi premium in South Korea occurred in 2016, when there was high demand for bitcoin among Korean investors but a limited supply of BTC. Essentially, the kimchi premium refers to the price of bitcoin and other cryptocurrency assets being significantly higher in South Korea than on Western exchanges. The researchers detailed that the team analyzed financial data concerning overseas remittances to China from approximately 1,211 foreign exchange businesses between Jan. 2016 and May 2021. Prior to Jan. 2018, during the bitcoin bull run of 2017, the researchers stated that the premium peaked at close to 55% before subsiding. However, the kimchi premium reemerged during the first quarter of 2021, and the study’s authors noted that on May 19, 2021, the premium jumped by more than 20% higher than the price on Western cryptocurrency trading platforms. The research paper’s authors add: Our findings imply that Chinese arbitrageurs use Korean financial institutions as bitcoin-cashing outlets, converting virtual currencies into fiat ones when the kimchi premium was persistently high. The authors of the study suggest that a significant portion of the premiums and increase in foreign arbitrageurs were related to events in China. For example, the paper details that while China banned cryptocurrencies, South Korea and countries like the U.S. decided to regulate the industry. “Therefore, Chinese arbitrageurs could only cash out their cryptocurrencies outside of the country,” according to the producers of the “kimchi premium” research paper. “This paper shows that the kimchi premium was positively related to the upsurge of remittances to China after controlling for the important drivers that directly impact it, such as equities, bonds, foreign exchanges, and the real economy,” the writers of the paper contend. The authors further posit that the findings illustrate the complexities of the global cryptocurrency market and that international standards and common regulations are necessary to protect investors. South Korea has been a “target of cryptocurrency arbitrage traders exploiting excess demand,” the paper insists. South Korean Bitcoin Premiums in 2023 The kimchi premium persists to this day, and at 9:00 p.m. Eastern Time on Jan. 9, 2023, the price of Bitcoin (BTC) on Upbit and Bithumb, two of South Korea’s top cryptocurrency exchanges, was around $17,427 to $17,437 per unit. However, at the same exact time, using the global average on coinmarketcap.com, the price of BTC on Western exchanges was $17,205 per coin. This means that arbitrage traders swapping BTC can fetch a premium of around 1.35% on South Korean exchanges, and there is also a difference in the prices of ethereum (ETH) on Western exchanges compared to its value on South Korean exchanges. High premiums for BTC have also occurred periodically on the Japanese cryptocurrency exchange market. Premiums on bitcoin have further been observed in countries such as Thailand, Hong Kong, Brazil, Malaysia, the Philippines, and Chile. Furthermore, before in-person trades were banned on the trading platform Localbitcoins, arbitrage opportunities were readily available. While the trend has decreased depending on the country and the liquidity of bitcoin in the region, foreign arbitrageurs can still profit from exchanging funds between two locations. What do you think about the study concerning the South Korean kimchi premiums and the findings that suggest they are related to Chinese remittances? Let us know what you think about this subject in the comments section below. View the full article