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Two companies have carried out Russia’s first transactions with digital financial assets as defined by the country’s current legislation. The deal involved the tokenization of debt issued by a third party and its subsequent acquisition. Russian Companies Conduct Issue and Placement of Digital Financial Assets VTB Factoring, a subsidiary of Russian majority state-owned Vneshtorgbank (VTB), and the fintech firm Lighthouse have announced the first transactions for the issuance and placement of digital financial assets (DFAs). The latter is a broad legal term in Russian law that encompasses various types of digital assets, including cryptocurrencies, until dedicated legislation is adopted. As part of the deal, commercial debt from an unidentified issuer was first tokenized on the platform of Lighthouse, a registered “information system operator” authorized to issue and transact with DFAs, and then VTB Factoring bought the digital assets, the companies detailed in a press release. By working with debt in the form of DFAs, the parties are able to reduce the time necessary to receive financing, while also taking advantage of relatively low transaction costs, the RBC Crypto news outlet explained in a report. This lowers the overall costs for the issuing entity. Anton Musatov, CEO of VTB Factoring, elaborated: In contrast with the standard factoring procedure, the client does not need to conclude a service contract to assign commercial debt. It is enough for the issuer to issue a DFA and [obtain] the factor’s consent to purchase it. The news of the successful DFA operation comes after in early June, Lighthouse and Tinkoff Business, the e-commerce division of the Russian neobank Tinkoff, announced the establishment of a platform to facilitate digital asset transactions. It will allow large and medium-sized businesses to raise funds using blockchain technology. Later in the month, deputy chairman of the management board of Sberbank Anatoly Popov unveiled that the first DFA deal on a platform developed by Russia’s largest bank will take place within a month. Also known as Sber, the state-controlled financial institution accounts for about a third of all bank assets in Russia and is also a registered information system operator authorized to issue digital financial assets. The developments in the DFA space come as Russian authorities are working to expand the country’s regulatory framework to more comprehensively regulate decentralized digital assets such as bitcoin as they are only partially covered by the existing law “On Digital Financial Assets.” A new bill “On Digital Currency,” designed to achieve that, should be reviewed by Russian lawmakers in September. Do you expect more transactions and deals with digital financial assets in Russia in the near future? Tell us in the comments section below. View the full article

The recent plunge in the value of cryptocurrencies may have wiped out millions from North Korea’s fund comprised of stolen crypto assets. The diminishing value of cryptocurrencies is believed to be affecting Pyongyang’s ability to fund its weapons programs. Stolen Crypto Assets and North Korea’s Weapons Programs The recent crash of the crypto market may have wiped out millions of dollars in value from North Korea’s fund of stolen cryptocurrency, digital asset investigators have said. The drop in value of the crypto assets could supposedly threaten the country which reportedly relies on stolen digital assets to fund its programs. According to a Reuters report, which quotes unnamed sources in the South Korean government, the bearish market will likely complicate North Korea’s ability to fund its weapons programs. The Seoul-based Korea Institute for Defense Analyses estimates that Pyongyang has spent as much as $620 million on missile tests this year alone. The blockchain analysis firm Chainalysis, which is reportedly monitoring crypto assets that were allegedly stolen by North Korea-backed hackers, believes the value of the stolen digital assets has plunged from $105 million to $65 million since the start of the year. Another investigator, Nick Carlsen, an analyst with TRM Labs, believes one of the cryptocurrencies that was stolen in a 2021 heist has seen its value plummet by between 80% and 85% this year alone. Fake News While global law enforcement agencies have insisted that North Korea is behind the cyber-criminal organization Lazarus Group, which is accused of carrying out the Ronin hack, a North Korean official stationed at the country’s embassy in the United Kingdom has rejected the accusations. The unnamed official said this is “totally fake news.” As global sanctions continue to inhibit its ability to access funding via global financial markets, North Korea is believed to have resorted to hacking cryptocurrencies. However, the report said North Korea hardly gets the fair market value for the stolen cryptocurrency because it only uses brokers that are willing to convert or buy cryptocurrencies without asking questions. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

After the downfall of the two most popular crypto assets on the Terra blockchain, the digital currencies terrausd (UST) and luna classic (LUNC) increased a great deal in value against the U.S. dollar in recent times. During the last seven days, LUNC has risen 96.3% and the once-stable coin UST has increased 472.4% this week. Luna Classic and the Once-Stable Coin UST Rise Significantly Against the US Dollar It’s pretty well known in the world of digital currencies that some crypto assets never die. That seems to be the case with the two notorious crypto assets luna classic (LUNC) and terrausd (UST), a former stablecoin that is sometimes referred to as terraclassicusd (USTC). LUNC took the name luna classic because Terra’s new token is now referred to as LUNA. UST was once stable and held the $1 parity from October 2020 up until May 9, 2022. When UST depegged it dropped below a U.S. penny, and tapped a low of $0.006 per unit on June 18, 2022. However, since the $0.006 per unit low, UST has jumped 617.5% from that range. UST swelled by 472.4% this week to $0.0926 per unit on June 29. While UST dropped in value after that rise, it still held a 24-hour trading range of around $0.04217516 to $0.081822 on Thursday, June 30. When UST depegged on May 9, LUNC was already dropping in value, but four days prior, LUNC was exchanging hands for $82 per unit. The day UST depegged, LUNC changed hands at a high that day at $61 per unit, but by the following day, it was trading for $27 per LUNC. Since then, LUNC hit an all-time low four days after the depegging incident to $0.000000999967 on May 13. Miraculously, not only has LUNC risen 96.3% this week, it is up 10,577% from the all-time low. At the time of writing, LUNC has seen $545.87 million in daily trade volume, while UST recorded $522.60 million during the past 24 hours. LUNC has a market valuation of around $812,399,236 with 6,907,072,876,045 LUNC in circulation today. There’s 10,254,324,366 UST circulating right now, which gives UST a market valuation of around $477.73 million. UST holders are still using the Anchor protocol as 573,636,728 UST is locked in the system. The Anchor savings protocol on the Terra Station wallet promises a 16.26% annual percentage yield (APY). Furthermore, defillama.com statistics indicate that there’s $9.23 million in LUNC held on the decentralized finance (defi) risk management marketplace Risk Harbor. The Terra Classic chain and luna classic (LUNC) still have a fairly active community by observing posts on social media. Terra Classic still has active validators as well, and just recently a governance proposal was introduced that would give validators a universal minimum commission of 10%. One particular validator called LUNC DAO told its 29,000 Twitter followers that the validator was against the minimum commission rate of 10%. At the time of writing, 37.04% voted in favor of the proposal and 24.80% said no to the idea. Meanwhile, the new LUNA 2.0 token has had a lackluster week compared to the digital currency’s siblings. LUNA 2.0 is up 7% this week, but the new crypto asset that stems from the Terra Phoenix blockchain is down 76.6% during the past month. Out of more than 13,000 crypto assets in existence today, LUNA 2.0 commands the 124th position with a $273 million market cap. The once-stable coin UST’s market capitalization ($477.73M), on the other hand, holds the 87th position. What do you think about UST’s and LUNC’s recent jumps in value during the last seven days? Let us know what you think about this subject in the comments section below. View the full article

Grayscale Investments, the world’s largest digital currency asset manager, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) challenging the securities regulator’s decision to reject its application to convert the Grayscale Bitcoin Trust to a spot bitcoin exchange-traded fund (ETF). Grayscale Takes SEC to Court Over Spot Bitcoin ETF Application Grayscale Investments filed a “petition for review” Wednesday challenging the decision by the U.S. Securities and Exchange Commission (SEC) to deny the company’s application to convert the Grayscale Bitcoin Trust (GBTC) to a spot bitcoin exchange-traded fund (ETF). Michael Sonnenshein, Grayscale’s CEO, tweeted soon after the SEC rejected his company’s application: “We’ve filed a lawsuit against the SEC.” Sonnenshein commented: “We are deeply disappointed by and vehemently disagree with the SEC’s decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market.” He added: We believe American investors overwhelmingly voiced a desire to see GBTC convert to a spot bitcoin ETF, which would unlock billions of dollars of investor capital while bringing the world’s largest bitcoin fund further into the U.S. regulatory perimeter. Donald B. Verrilli Jr., Grayscale’s senior legal strategist and former U.S. solicitor general, detailed: The SEC is failing to apply consistent treatment to similar investment vehicles, and is therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934. The lawyer continued: “There is a compelling, common-sense argument here, and we look forward to resolving this matter productively and expeditiously.” Do you think Grayscale will win against the SEC? Let us know in the comments section below. View the full article

Rosfinmonitoring is conducting hundreds of investigations into cases involving cryptocurrencies, the head of the agency announced. Hundreds of thousands of Russians take part in crypto deals abroad, the top regulator also reported to the Russian president. Russian Authorities Initiate 20 Criminal Cases Linked to Crypto Assets The Federal Financial Monitoring Service of the Russian Federation, also known as Rosfinmonitoring, is trying to unravel around 400 cases in which cryptocurrencies are involved. The agency’s director, Yury Chikhanchin, revealed the number during a meeting with President Vladimir Putin. The financial watchdog is working on them together with representatives of the Ministry of Internal Affairs (MVD) and the Federal Security Service (FSB), the high-ranking official noted. Law enforcement authorities have already initiated 20 criminal cases related to digital assets, he also said. Commenting on the volume of the crypto turnover registered by his department, Chikhanchin acknowledged that Russians continue to actively use cryptocurrency platforms based outside of the country. He elaborated: This phenomenon continues to exist. And only on two foreign sites, two exchanges, several hundred thousand Russian citizens participate in transactions worth tens of billions. Quoted by the crypto outlet of Russian business news portal RBC, the regulator pointed out that these are not only settlements or investment deals. Yury Chikhanchin is convinced that some of these transfers are related to crime. According to official data released earlier this year, the number of court cases relating to cryptocurrency or crypto mining in Russia has exceeded 1,500 in 2021. Of them, 62% were criminal cases, mostly related to drug trafficking. The numbers represent a 40-percent annual increase. Russia is yet to fully regulate its crypto space with a law “On Digital Currency” that lawmakers are expected to review during the fall session of the State Duma, the lower house of parliament. While most intuitions in Moscow agree that the ruble should remain the only legal tender in the country, officials are exploring the option to allow crypto payments for small settlements in international trade. Do you expect investigated cases involving crypto assets to increase or decrease after Russia adopts comprehensive regulations? Tell us in the comments section below. View the full article

PRESS RELEASE. The cryptocurrency industry has certainly become oversaturated with hundreds of crypto projects being established everyday with many of them failing before ever reaching any significant milestone. The mass success of the industry has led to many believing they can achieve that very same amount of success despite not putting in as much work or providing as many solutions for users in the crypto space. The likes of Binance Coin (BNB) and Cardano (ADA) has long been established as two of the most influential cryptocurrencies and have both reigned as top 10 cryptocurrencies, measured by market cap, according to data from CoinMarketCap, for a number of years. Offering different solutions in the crypto space, their dominance has inspired many new projects including Xchange Monster (MXCH) who aim to make a similar impact in its respective sector, which is the GameFi sphere. What does Xchange Monster (MXCH) have to do to reach the pinnacle of crypto? The most important aspect of becoming an influential cryptocurrency and one that has value is providing solutions to legitimate issues within the industry. The good thing for Xchange Monster (MXCH) is that their whole project is based around solving issues within the GameFi space and making the experience better for its users. This project is primarily driven by the urge to provide a unique crypto gaming platform that provides numerous solutions to the gaming community and providers. Specifically, Xchange Monster will serve as a one-stop crypto platform for both the gaming community and providers/developers. Beyond that, other features such as the use of Xchange Monster as an exchange platform, decentralized payment gateway, and so forth. Xchange Monster is an novel crypto platform that brings together both the gaming community and operators/publishers through the creation of a value driven ecosystem. Through Xchange Monster, we intend to strengthen the interaction between gaming community and operators for enhanced gaming experience. The Xchange Monster token, $MXCH, will be available for sales on the primary exchange platform. Users can store these tokens and cryptocurrencies in their Monster Wallet that can be accessed on wallet.xchangemonster.com. For more information on Xchange Monster visit: Presale: https://xchangemonster.boostx.finance/register Website: https://xchangemonster.com/ Discord: https://discord.gg/M5hu5HwbeJ Telegram: https://t.me/xchangemonsterofficial Twitter: https://twitter.com/Xchange_Monster 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 Tuesday, the Canada-based investment firm Cypherpunk Holdings Inc. announced that the company has sold all of its bitcoin and ethereum due to the “risk of further significant drawdowns.” The company has transitioned its treasury to cash after selling 214.72 bitcoin and 205.82 ethereum as Cypherpunk Holdings continues “to see systemic risks propagating” across the crypto economy. Cypherpunk Holdings Sells All of the Bitcoin and Ethereum on Its Balance Sheet Crypto winter has done a lot of damage since the bull run’s price highs, as more than $2 trillion has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth roughly $945 billion and bitcoin (BTC) is coasting along just above the $20K per unit range. BTC is down more than 70% from the all-time high ($69K) on November 10, 2021, and ethereum (ETH) has lost more than 77% since the ATH ($4,878) recorded on the same day. On June 28, 2022, or eight months later, the publicly listed Canadian investment company Cypherpunk Holdings revealed it had dumped all of its bitcoin and ether holdings. Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of the many publicly listed companies that held bitcoin and ethereum on its balance sheet. The update from the company notes that the sale was due to risk and it said the crypto economy may see “significant drawdowns” going forward. Cypherpunk Holdings sold approximately 214.7203 BTC and 205.8209 ETH and it got around $4,927,000 for the lot of crypto assets. The company said that it currently has just over $14 million worth of “cash and stables” on hand. After the sale, the CEO and president of Cypherpunk Holdings, Jeff Gao, spoke about dumping the digital assets for cash. “Recently, Cypherpunk liquidated all of its treasury holdings in BTC and ETH for cash and withdrew back to custody,” Gao wrote in an update concerning the company’s cryptocurrency holdings and strategy. “We continue to see systemic risks propagating throughout the crypto ecosystem and, in our assessment of the risk reward and opportunity costs involved in holding asset tokens, we believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion,” Gao said. “On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases.” The Cypherpunk Holdings executive continued by adding: Until such a time as our thesis on market conditions change, our treasury will remain in cash. Cypherpunk maintains its long-term bullish outlook on crypto and currently plans to actively seek to capitalize on compelling risk reward opportunities as and when they present. Company Sold 196.74 Bitcoin and 382 Ether Prior to the June 28 Announcement and Amid the Terra LUNA Fallout Furthermore, Cypherpunk Holdings dumped bitcoin (BTC) before the June 28 announcement, as it told investors on June 13 that it sold 96.74 BTC for $2.9 million and 50 ETH for $100K. Cypherpunk Holdings’ management also decided to unload shares of Animoca Brands, as it sold the company’s last block of 500,000 Animoca shares for “a realized profit of 234%.” Amid the Terra LUNA and UST fallout, on May 11, 2022, Cypherpunk Holdings sold 100 BTC and 332 ETH for just over $4 million. With Cypherpunk Holdings removed from the Bitcoin Treasuries list, and Microstrategy’s recent purchase of 480 bitcoins, publicly-listed companies hold 268,357 BTC worth 5.382 billion at current bitcoin exchange rates. Exchange-traded products hold 828,641 BTC, countries hold 50,699 BTC, and private companies own 174,381 BTC, according to the Bitcoin Treasuries list on June 29. What do you think about Cypherpunk Holdings dumping its bitcoin and ether because it believes “weaker price action” is coming? Let us know what you think about this subject in the comments section below. View the full article

Taiwan’s central bank is yet to conclude work on its central bank digital currency (CBDC) and according to the bank’s governor, the institution may need two more years to finish its work, a report has said. Some of the bank’s next tasks include winning the public’s support, ensuring the system is stable, and building the currency’s legal framework. Simulating Use of the CBDC Some two years after work on Taiwan’s central bank digital currency (CBDC) commenced, the governor of the country’s central bank, Yang Chin-long, recently revealed that his organization is still working on the project. Yang warned the central bank may need as long as two years to complete the task. Yang, who spoke at a digital currencies forum, also disclosed the central bank had been simulating the use of the CBDC in what a Reuters report called a closed-loop environment. However, the same report said the central bank now faces three key tasks. These include communicating and ultimately winning the public’s support, ensuring the system is stable, and building the currency a legal framework. According to the report, the governor also conceded that the entire process may last more than the anticipated two-year period. While the Taiwanese people are reported to be more accustomed to using cash, Yang said the central bank had to consider the fact that future generations will likely use digital currencies more than they use physical cash. “We still have to push forward. After all, most of the young people in the future will use mobile phones, so we have to think about the next generation,” Yang is quoted in the report explaining. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

E-commerce giant Ebay has filed two trademark applications covering a wide range of products and services relating to the metaverse and non-fungible tokens (NFTs). Ebay’s NFT, Metaverse Trademark Applications Ebay Inc. (Nasdaq: EBAY) filed two trademark applications with the United States Patent and Trademark Office (USPTO) last week covering a wide range of products and services relating to non-fungible tokens (NFTs) and the metaverse. A USPTO-licensed trademark attorney, Mike Kondoudis, tweeted Tuesday: “Ebay Inc. is coming to the metaverse.” He explained that the filings indicate the e-commerce giant’s plans for virtual good marketplaces, online retail stores with actual and virtual goods, NFTs, NFT exchanges, and NFT trading. The applications’ serial numbers are 97473696 and 97473620. One day before Ebay filed the two trademark applications, the company announced that it has acquired NFT marketplace Knownorigin. According to Ebay, the two companies signed and closed the deal on June 21. Ebay CEO Jamie Iannone described at the time: “Ebay is the first stop for people across the globe who are searching for that perfect, hard-to-find, or unique addition to their collection and, with this acquisition, we will remain a leading site as our community is increasingly adding digital collectibles.” The e-commerce platform began allowing NFT sales in May last year, citing a “massive wave of attention” in the area. This month, McKinsey and Company said that the metaverse could generate $5 trillion by 2030. “By 2030, it is entirely plausible that more than 50 percent of live events could be held in the metaverse,” the company noted. In addition, a survey conducted in April showed that the metaverse will be the most popular place for crypto, with 70% of respondents agreeing that “cryptocurrency and blockchain technology advancements will be critical to shaping the future of the metaverse.” Moreover, Citigroup predicted that the metaverse could be a $13 trillion opportunity with 5 billion users by 2030 while Goldman Sachs sees the metaverse as an $8 trillion opportunity. What do you think about Ebay filing trademark applications covering metaverse and NFT services? Let us know in the comments section below. View the full article

Warren Buffett-backed Nubank, one of the world’s largest digital banking platforms, is now offering cryptocurrency trading to all of its 54 million customers. Nubank also holds bitcoin on its balance sheet. Nubank’s Crypto Service Now Available to All Customers Nubank, one of the world’s largest digital banking platforms, now offers cryptocurrency trading to all clients, according to its blog post, updated Monday. The bank serves around 54 million customers across Brazil, Mexico, and Colombia. “Nubank Cripto is the solution to buy and sell cryptocurrencies directly through the Nu app,” the bank wrote, adding: The option to buy cryptocurrencies through Nubank is now available to all our customers. Update your app. “To help you enter this universe more safely, we decided to offer, first, the largest cryptocurrencies on the market: bitcoin and ether,” the bank added. Nubank further clarified: For this launch, Nubank has a partnership with Paxos, an exchange specializing in cryptocurrencies. The crypto trading option was announced in May. It was launched first in Brazil. Nubank also announced in May that Nu Holdings, its parent company, has allocated “~1% of its balance sheet cash to bitcoin.” Warren Buffett’s Berkshire Hathaway is a current shareholder of Nu Holdings. According to its 13F filing with the U.S. Securities and Exchange Commission (SEC), Berkshire’s holdings as of Dec. 31, 2021, included Nu Holdings shares worth more than $1 billion. Berkshire Hathaway also invested $500 million in Nu Holdings in June last year, months before the company went public. Buffett, however, recently said that he will not invest in cryptocurrencies because they do not produce anything. Meanwhile, Berkshire Vice Chairman Charlie Munger believes that crypto is “stupid and evil.” What do you think about Warren Buffett-backed Nubank offering crypto to all customers? Let us know in the comments section below. View the full article

Microstrategy has purchased more bitcoin amid a heavy market sell-off. The announcement followed a clarification by the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stating that bitcoin is a commodity. Microstrategy Buys the Dip The Nasdaq-listed software company Microstrategy has bought the bitcoin dip again. In a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company declared that during the period between May 3 and June 28, it “acquired approximately 480 bitcoins for approximately $10.0 million in cash, at an average price of approximately $20,817 per bitcoin, inclusive of fees and expenses.” The filing adds: As of June 28, 2022, Microstrategy, together with its subsidiaries, held an aggregate of approximately 129,699 bitcoins. Overall, the company’s BTC “were acquired at an aggregate purchase price of approximately $3.98 billion and an average purchase price of approximately $30,664 per bitcoin, inclusive of fees and expenses,” the filing further details. Microstrategy recently dispelled the rumor that it may be facing a margin call on a bitcoin-backed loan from Silvergate Bank. Michael Saylor, the CEO of the Nasdaq-listed software company, said in May: “We are in it for the long term … Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target. I expect we’ll be buying bitcoin at the local top forever.” He added: “I expect bitcoin is going to go into the millions. So, we’re very patient. We think it’s the future of money.” Microstrategy’s latest bitcoin purchase announcement followed a statement by SEC Chairman Gary Gensler earlier this week clarifying that bitcoin is a commodity. The company was in the middle of acquiring the latest batch of BTC when Gensler made a comment about BTC being a commodity. Saylor tweeted in response to Gensler’s clarification: Bitcoin is a commodity, which is essential for any treasury reserve asset. He continued: “This allows politicians, agencies, governments, and institutions to support bitcoin as a technology and digital asset to grow the economy and extend property rights and freedom to all.” Bitcoin, being a commodity, falls under the purview of the Commodity Futures Trading Commission (CFTC). The chairman of the derivatives watchdog, Rostin Behnam, recently said that bitcoin and ether are commodities. The SEC has been seeking to collaborate with the CFTC on crypto regulation. Last week, Gensler proposed having “one rule book” for the regulation of crypto trading. The SEC chairman warned last month that a lot of crypto tokens will fail. What do you think about Microstrategy buying the bitcoin dip? Let us know in the comments section below. View the full article

Authorities in Uzbekistan have drafted and put forward for public consultations a set of rules for crypto miners operating in the country. Companies that want to mint digital currencies will have to register with the government and use renewable energy. Uzbekistan Discusses Draft Regulations for Crypto Mining Sector Entities involved in cryptocurrency mining will need to register and renew their certificate every year, according to a draft decree by the director of Uzbekistan’s National Agency for Perspective Projects. NAPP is the country’s main crypto watchdog, which is directly subordinated to the administration of President Shavkat Mirziyoyev. The document was recently published for public consultations that will continue until July 9 and have already attracted a number of suggestions. It introduces key definitions pertaining to the industrial activity of digital currency extraction, including for the terms crypto mining, miner, and mining equipment. The decree states that crypto mining is subject to mandatory registration while noting it is not an activity that requires licensing. It also obliges crypto miners to utilize electricity produced by photovoltaic stations and bans them from providing power from their supply source to any third party. Bitcoin mining farms will also be allowed to connect to the national power grid, to ensure the stable operation of their hardware, through a separate electricity meter. That applies to the peak times of consumption, between 5 p.m. and 10 p.m., and also at night, from 10 p.m. until 6 a.m., when they will pay a surcharge. However, not having access to an operational solar power station, ready to generate electricity, will be considered a violation of the rules. The same applies to “hidden mining,” when someone else’s hardware is used without their knowledge, mining at a location different from the one specified during registration, as well as minting of “anonymous crypto assets.” Certified miners will be required to file information on the transactions with the mined cryptocurrencies with the NAPP, complying with the deadlines and procedures established by the regulatory body. They will not pay tax on the crypto assets received as income. The minted digital coins must be sold only on crypto exchange platforms registered in the country, the decree says. What’s your opinion about the upcoming crypto mining regulations in Uzbekistan? Let us know in the comments section below. View the full article

Circle Internet Financial has revealed a usd coin custody partnership with the American bank holding company New York Community Bancorp (NYCB). Under the agreement, NYCB’s subsidiary, New York Community Bank, will become a custodian for the company’s stablecoin reserves. Circle Partners With New York Community Bancorp On Tuesday, Circle announced that it is collaborating with NYCB, the parent company of the U.S. Bank National Association. According to the announcement, NYCB’s subsidiary, New York Community Bank, will custody reserves for Circle’s popular stablecoin usd coin (USDC). USDC is the second largest stablecoin today with a $53.9 billion market capitalization. During the past 24 hours, Circle’s USDC stablecoin has seen $5 billion in global trade volume. New York Community Bank will also work with Circle in order to provide unbanked communities with access to low-cost financial solutions. The companies’ strategies will leverage blockchain solutions and stablecoin systems. Solutions include the allocation of USDC dollar-denominated reserves to Minority Depository Institutions Programs (MDIs) and community banks. Dante Disparte, the chief strategy officer and head of global policy for Circle, explained that the future of money will be more inclusive. “If we want to make the future of money and payments more inclusive than the past, we have to build new partnerships and connections at the community level,” Disparte remarked in a statement. Circle’s chief strategy officer added: By partnering with NYCB, we are opening up new pathways for community banks and MDIs across the country to be key participants in the fast-growing digital assets market. Circle Wants to Improve Financial Inclusion — Blackrock and BNY Mellon Also Handle USDC’s Reserve Management and Custodial Services On November 17, 2021, Disparte wrote a blog post that explained how Circle wants to “[improve] financial inclusion and economic prosperity for all.” The post discusses working with community banks and MDIs, and the concept of “raising global economic prosperity through the frictionless exchange of financial value.” The partnership with NYCB follows Moneygram launching a USDC crypto-to-cash program in specific markets. Furthermore, Circle recently launched USDC on the Polygon blockchain network and issued a second major stablecoin backed 1:1 with the euro. Andrew Kaplan, the executive vice president and chief digital bank and banking as a service officer at NYCB said that the financial institution was “proud to be a leading digital asset innovator among U.S. banks.” “We are thrilled that together with being a custodian for USDC reserves, we are also able to partner with Circle on meaningful initiatives to impact inclusion and education to our communities and customers,” Kaplan concluded. In addition to NYCB, the financial giants Blackrock and BNY Mellon have partnered with Circle as well. Blackrock was named “a primary asset manager of USDC cash reserves,” and America’s oldest investment bank BNY Mellon was also revealed as a USDC custodian last April. What do you think about Circle’s partnership with NYCB? Let us know what you think about this subject in the comments section below. View the full article

The chairman of China’s Blockchain Service Network (BSN) Development Alliance Shan Zhiguang, and his colleague, insisted in a recently published op-ed that virtual currency is “undoubtedly the largest Ponzi scheme in human history.” However, they have said the “value of blockchain technology should not be ignored because of virtual currency.” Opinion Piece Claims 90% of 100 Richest People Have Bad-Mouthed Virtual Currency The chairman of the Chinese Blockchain Service Network (BSN) Development Alliance, Shan Zhiguang, and executive director He Yifan, have said virtual currency is “undoubtedly the largest Ponzi scheme in human history.” They also claimed that this Ponzi scheme has since morphed into one that is “no longer just about cash.” In a recent opinion piece published by the People Daily Online newspaper, the BSN chairman and his colleague begin their attack on virtual currency and bitcoin by pointing to the fact it has been “bad-mouthed” by at least 90% of the 100 richest people in the world. The duo also gives the reasons which compelled them to similarly view BTC or virtual currency negatively. They wrote: This type of Ponzi scheme can be classified as ‘equity-type,’ and it has three main characteristics: first, it is based on equity that can be denominated; second, the equity can be traded and circulated; finally, and most importantly, this equity is not Associated with any asset, productive labour, or social value, but is entirely fictional. According to the duo, the equity in virtual currency equity Ponzi schemes is not linked to any real asset or labor hence the risk is “close to infinity.” When looking at the characteristics of virtual currency, Zhiguang and Yifan said it is apparent that these are consistent with those of a so-called equity Ponzi scheme. Blockchain Must Not Be Ignored Elsewhere in the article, the BSN chairman and Yifan use the example of dogecoin to show how just one influential individual can manipulate or control the value of a virtual currency. “So it’s easy to understand that Musk can turn his hands on dogecoin as a cloud, and turn his hands into a rain. Just sending a tweet can make the price of virtual currency flat,” the duo claimed. Despite their stance on virtual currency, Zhiguang and Yifan insisted in their opinion piece that blockchain technology, which anchors most cryptocurrencies, “should not be ignored.” The duo, however, suggested that regulation technology is still needed to ensure the blockchain plays “a huge role in various application fields.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

PRESS RELEASE. With crypto markets down around 50% in the past month and over 70% from their highs in late 2021, many crypto investors are searching for answers after their profits from the last few years have evaporated into the ether. Following the incredible bull market, crypto investors enjoyed over 2020 and 2021; you may now find yourself nursing losses rather than gains ahead of the upcoming tax season. Crypto tax platform Koinly shares 5 little-known tax hacks you need to know after the crypto crash. 1. Pay less tax by holding Want to avoid paying tax on crypto? While you can’t dodge your tax obligations entirely – there are quite a few ways you can optimize your tax position. But here’s the catch, you’ll need to do it before the end of the financial year to pay less tax overall. You’ve probably heard it before, but the easiest way to pay less crypto tax is to simply HODL. In many jurisdictions, holding your crypto investment (or other assets like shares) for longer than one year qualifies any gains as long-term capital gains. Depending on where you live, any crypto sold 12 months after purchasing is: Tax-free in Germany Discounts capital gains tax by 50% in Australia Taxed at lower tax rates of 0%, 15% or 20% in the US, depending on individual income over the year 2. Tax-free gains Tax-free thresholds on your capital gains can help you automatically owe less tax. In the UK, individuals have a CGT allowance of up to £12,300 before paying tax. Germany has a relatively low threshold of €600, while Australians have no such allowance. If you’re in the US, the IRS states any individual’s income under $40,400 pays no Capital Gains Tax. Knowing the tax-free maximum for capital assets in your country is a great way to help determine your crypto disposal strategy, so make sure you understand how crypto is taxed wherever you are. Offset your gains with losses via tax-loss harvesting Tax-loss harvesting allows you to claim capital losses by recognising and selling your assets at a capital loss. These capital losses may be carried forward against future capital gains and even over multiple financial years. For example, if you made $10,000 after buying and selling Bitcoin but lost $10,000 after selling your Ether, you won’t owe any tax since you broke even. This also works if you’ve had a good year in share trading, you can offset those gains with crypto losses. However, if you have an unrealized loss and do not crystallize it by selling before the end of the current financial year, you won’t be able to take advantage of this capital loss until next year’s tax return. Be careful of wash sales rules which prohibit selling assets at a loss to create an artificial loss this financial year, then immediately repurchasing them. To avoid this, you can swap one crypto for another cryptocurrency or sell and buy a different cryptocurrency (sell ETH for USDC and then buy BTC). Track your crypto to spot opportunities Tax offices, including the IRS, HMRC and ATO, demand investors keep detailed records over at least 3-5 years. With shares, this may be easy, but in crypto, with dozens of different wallets, hundreds of blockchains, multiple exchanges, DeFi protocols and NFT platforms, it can be a headache come tax time. Using crypto tax software like Koinly not only helps you file your crypto taxes in half the time, but it can also help you track your unrealised gains and losses for each asset throughout the financial year. 5. Pick the best cost basis method When calculating your crypto taxes – the cost basis method you use matters. It dictates which of your assets you’ve sold and how much your subsequent capital gain or loss is. First in, first-out (FIFO) tends to produce the highest gains but may lower your tax bill if a long-term CGT discount applies in your country. Alternatively, last in, last out (LIFO) usually produces the lowest gains but may increase the tax rate you pay due to paying short-term CGT. Koinly supports both of the above cost basis methods (and more) – so check out your settings to see which accounting method could produce the lowest tax liability. Talking to an accountant about your crypto taxes can be helpful for you to navigate any confusion and ensure you’re doing the right thing while still optimizing your taxes. About Koinly: Koinly calculates your crypto taxes for you, catering to investors and traders at all levels. Whether it’s Crypto, DeFi or NFTs, the platform helps you save valuable time by reconciling your holdings to generate a compliant tax report in under 20 minutes. Sign up today and see how much you owe! 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 results of a new report commissioned by the CNMV, the securities watchdog in Spain, have found that three out of four citizens have heard about cryptocurrencies. However, the report, which included opinions from 1,500 participants, also found that this knowledge is still minimal, and that less than 10% have actually purchased cryptocurrency as a means of investment. CNMV Reveals Results of Crypto Study The CNMV, the institution that oversees the securities markets in Spain, has revealed the results of its latest cryptocurrency report. The study, commissioned by the institution and carried out by a company called “Grupo Analisis e Investigacion,” surveyed 1,500 participants and an alternative sample of 300 cryptocurrency investors to take a snapshot of the penetration that crypto has had regarding Spanish investors. One of the most relevant results of the study has to do with the popularity of crypto in the country. According to the numbers released, three out of every four Spaniards have heard about cryptocurrencies, meaning that these instruments have achieved some degree of penetration in the country. However, the knowledge that people have on the subject is still very limited. Only 1.4% of the surveyed had a deep knowledge of cryptocurrency. Most of the surveyed lack knowledge about crypto, or have only heard or read about crypto on some occasion. Almost 70% of the surveyed were included in this dominant group. Investing in Crypto in Spain While other reports have stated that a significant number of Spaniards have invested in crypto in during recent years, this one hints at crypto still being a niche product as an investment. Only 6.8% of the surveyed reported having invested in cryptocurrencies at some point. More than 80% also stated that they haven’t invested in crypto and don’t plan to do so in the future. However, most seasoned crypto investors invest 5% or less of their net worth in cryptocurrencies, which suggests they use these as diversification assets rather than their main investment vehicles. The study also informs that even these investors believe that cryptocurrencies are risky investment products. 66.3% of the surveyed think that cryptocurrencies present more risks than other investment assets. Spanish regulators have been highly critical of cryptocurrencies. On June 4, the governor of the Bank of Spain, Pablo Hernandez de Cos, stated that cryptocurrency was bigger than the subprime mortgages sector before the 2008 financial crisis and that its links to traditional finance, though weak at the moment, might be dangerous in the long run. What do you think about CNMV’s latest crypto report in Spain? Tell us in the comments section below. View the full article

The Advertising Standards Council of India (ASCI) has reportedly revealed that more than 400 crypto ads violated its guidelines so far this year. The majority of complaints the ad council received are directed at influencers. “Some influencers talk so confidently about crypto without fully understanding it.” 419 Ads in Violation — Most Complaints Concern Influencers The Advertising Standards Council of India (ASCI) has reportedly revealed that it received 453 complaints relating to crypto ads between January and May. The council added that out of all complaints, 419 cryptocurrency advertisements required modifications, the Economic Times reported Monday, noting that most complaints concern influencers. Manisha Kapoor, CEO of ASCI, described: Some influencers talk so confidently about crypto without fully understanding it. It does create an impression that it is safe, it’s fine and a cool thing. She explained that the council will continue to focus on adequate disclosures and risk disclaimers for payment-based promotions. The standards body is currently focusing on raising awareness with crypto exchanges. “Some of these influencer ads don’t even talk about the risks, which is not right and against our guidelines. Technically, they are ads with no disclosures or disclaimers, which is mandatory,” Kapoor detailed, elaborating: This is in violation of our guidelines. We will escalate it to the government in case of no compliance. There are two sets of guidelines applicable to most crypto ads in India. One covers the promotion and advertisement of cryptocurrencies, crypto exchanges, and non-fungible tokens (NFTs). It was issued by the ASCI in February and went into effect in April. The other set of guidelines, which entered into force in June last year, regulates the advertising and marketing activities of influencers. Since the ASCI is a self-regulatory organization and its guidelines are not legally binding in India, when there is a breach of guidelines, it publishes the names of those in violation and escalates the case to relevant government regulators. In May, the Securities and Exchange Board of India (SEBI) proposed banning public figures, including celebrities and sportsmen, from advertising and endorsing crypto products and services. The securities watchdog also proposed that public figures be held liable for any legal violations when promoting crypto products. What do you think about the number of crypto-related ads in violation of advertising guidelines in India? Let us know in the comments section below. View the full article

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, says he’s waiting for the price of bitcoin to test $1,100. He added that he will buy more if the cryptocurrency recovers from that price level. Robert Kiyosaki on Bitcoin Testing $1,100 The author of Rich Dad Poor Dad, Robert Kiyosaki, has returned with a new bitcoin outlook. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. The famous author tweeted a “Rich Dad lesson” Monday night. He explained that “losers quit when they lose,” but “winners learn from their losses.” Asserting that “Bitcoin losers are quitting,” he said he is waiting for BTC to test $1,100, adding that he will buy more if the crypto recovers. “If it does not, I will wait for losers to ‘capitulate’ quit then buy more,” he further stated. Many people on Twitter disagreed with Kiyosaki that bitcoin will ever see $1,100. Some suspected that the Rich Dad Poor Dad author made a typo and he actually meant $11K. The famed investor has been saying for several months that he will buy more bitcoin when its price bottoms out. When BTC began declining heavily in recent months, he started saying that the crypto could bottom out at $20K. When BTC continued to fall, he revised his bottom price forecast several times. In May, Kiyosaki indicated that BTC could bottom out at $9,000. The price of bitcoin was hovering around $30,000 at the time. He explained that he was still bullish on bitcoin because he sees the Federal Reserve and the Treasury Department as corrupt organizations. He also said that once he knows that the bottom is in, he will “back up the truck,” noting that “Crashes are the best times to get rich.” Kiyosaki also made some dire predictions about the U.S. economy. Last month, he said the stock and bond markets are crashing, predicting a depression and civil unrest. In April, he claimed that hyperinflation is here. In March, he warned that the U.S. dollar is about to implode, advising investors to buy bitcoin, ethereum, and solana. At the time of writing, bitcoin is trading at $20,277, down almost 3% over the past 24 hours and 30% over the last 30 days. What do you think about the comments by Rich Dad Poor Dad author Robert Kiyosaki? Let us know in the comments section below. View the full article

Nigerian author and crypto advocate Nathaniel Luz has said his recently published book represents his attempt to remind people of the initial reason why bitcoin was created. He said bitcoin is the summation of over three decades of research and experimentation. Noise of Other Cryptos Drowning Out Message of Bitcoin A Nigerian author and crypto advocate, Nathaniel Luz, has published a new book on bitcoin wherein he reminds readers of the reasons why the cryptocurrency was created. Luz also uses the book to highlight the fact people now use bitcoin to “transact globally without restrictions of age, gender, race or location.” According to Luz, the release of the book is coming at a time when many — particularly those new to crypto — appear to be attracted more by the promise of an “infinite percentage of returns” than by BTC’s primary selling points. He also said seeing the noise of various cryptocurrencies drowning “the message of bitcoin” motivated him to write a book that explains to people why, in his view, the top cryptocurrency was created. “It calls for a reminder to separate the wheat from the [chaff]. Also, to inform people of the decades of work it took to reach this point; Bitcoin is the summation of over 3 decades of research and experimentation. It’s not an overnight fast-food invention by some millennials,” Luz said in a written response to Bitcoin.com News. BTC Whitepaper Title Not ‘Some Afterthought’ The top cryptocurrency’s potential meant governments were always going to go after it, Luz added. However, he also told Bitcoin.com News that it’s not “some afterthought that the title of bitcoin’s whitepaper foretold its transaction medium as ‘peer-to-peer.'” When asked about the book’s target audience, Luz said his goal is to reach anyone who has adopted bitcoin either “out of necessity or for speculation purposes.” Meanwhile, in the book — titled Bitcoin is Cash — Luz chronicles the journey of money over the centuries and how it evolved to become what it is today. He also makes the case for private currencies and how a digital currency like bitcoin can be a tool for activism. Luz additionally addresses the mystery surrounding the identity and whereabouts of Satoshi Nakamoto, the person[s] or organization that is thought to have created bitcoin. The author said the book is now available on Amazon and those that wish to get a copy can do so by using his profile link. What are your thoughts on this story? Let us know your views in the comments section below. View the full article

The crypto economy has slipped under the $1 trillion mark to the $970 billion range, as a large number of digital currencies have lost more than half their USD worth since November 2021. Bitcoin is down 70% from the all-time high last year, and a new report from Glassnode Insights calls the current bear market “a bear of historic proportions,” while highlighting that “it can reasonably be argued that 2022 is the most significant bear market in digital asset history.” Glassnode Researchers: ‘Bitcoin Is Currently Experiencing the Largest Capital Outflow Event in History’ Many people understand that the crypto economy is currently in a bear market but no one knows where it will lead or when it will end. Bitcoin and the crypto economy, in general, have been through several bear markets and a recent Glassnode Insights report claims it just might be the worst on record. The analytics company Glassnode provides an analysis of bitcoin’s (BTC) current price drop and how the digital asset slipped below the 200-day moving average (DMA). The 40-week timespan gives traders perspective on whether or not the current trend will continue dropping lower and it can also identify potential floor prices. Glassnode’s post describes the Mayer Multiple and the 200DMA and how they can signal a bear or bull market. “When prices trade below the 200DMA, it is often considered a bear market,” Glassnode’s analysis notes. “When prices trade above the 200DMA, it is often considered a bull market.” Additionally, Glassnode leverages data like “realized price,” “realized cap,” and the market value and realized value oscillator (MVRV Ratio). “The 30-day position change of the realized cap (Z-Score) allows us to view the relative monthly capital inflow/outflow into the BTC asset on a statistical basis,” Glassnode’s blog post explains. “By this measure, bitcoin is currently experiencing the largest capital outflow event in history, hitting -2.73 standard deviations (SD) from the mean. This is one whole SD larger than the next largest events, occurring at the end of the 2018 Bear Market, and again in the March 2020 sell-off.” Glassnode has been researching and discussing the current bear market for quite some time and on June 13, it published a video called “The Darkest Phase of the Bear.” The video looks into whether or not it is the final phase or final capitulation period in bitcoin’s price cycle. Historically, BTC has dropped 80%+ lower on all of its major bear markets and an 80% drop in price from $69K is $13,800 per unit. Some crypto investors believe the end of the bear may be near while others think max pain has not arrived yet. Max pain, the depths of despair, the lowest of lows, or the bottom may not be in yet. Glassnode’s report details that because bitcoin got so large, the impact has been magnified. “As the bitcoin market matures over time, the magnitude of potential USD denominated losses (or profits) will naturally scale alongside network growth,” Glassnode’s research report says. “However, even on a relative basis, this does not minimize the severity of this $4+ billion net loss.” Glassnode researchers also delve into ethereum (ETH), a coin that often drops lower than BTC’s 80% drawdown. “Ethereum prices have spent 37.5% of its trading life in a similar regime under the realized price, a stark comparison to bitcoin at 13.9%,” Glassnode researchers wrote. “This is likely a reflection of the historical out-performance of BTC during bear markets as investors pull capital higher up the risk curve, leading to longer periods of ETH trading below investor cost bases.” Glassnode added: The current cycle low of the MVRV is 0.60, with only 277 days in history recording a lower value, equivalent to 11% of trading history. Last week, BTC and ETH prices increased in value after taking a hard hit the week prior and remained consolidated for most of the week. BTC prices are still down 8.1% during the past two weeks and the crypto asset’s USD value is down 0.3% over the last 24 hours. ETH values have slid 0.1% during the last 24 hours and two-week stats show ETH is down only 1.3% against the U.S. dollar. Glassnode’s post shows that the data and studies done point to one of the most significant crypto bear markets in history. The Glassnode Insights report concludes by saying: The various studies described above highlight the sheer magnitude of investor losses, the scale of capital destruction, and the observable capitulation events occurring over the last few months. Given the extensive duration and size of the prevailing bear market, 2022 can be reasonably argued to be the most significant bear market in the history of digital assets. What do you think about Glassnode’s bear market report? Would you say that this is one of the worst bear markets on record? Let us know what you think about this subject in the comments section below. View the full article

A Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The company has rejected the allegations in the anonymous attack, which comes after Nexo offered a buyout deal to troubled rival Celsius. Anonymous Allegations Against Co-Founders Circulated on Social Media A Twitter user going by the handle @otteroooo has drawn attention to media reports about misuse of donations to a charity allegedly linked to the people behind Nexo, a major provider of crypto-backed loans. In a thread published on Sunday, the unidentified author accuses Nexo co-founder Kosta Kantchev and his family of siphoning money from the Helpkarma foundation which raises funds for various goodwill causes. Nexo denies affiliation with the Bulgarian charity organization and maintains the connections between the two have been alleged to damage the reputation of the company and that of its co-founders. Another two of them — former Member of Parliament and Managing Partner at Nexo Antoni Trenchev and Georgi Shulev — have been mentioned as well. According to his Linkedin profile, Shulev left Nexo in 2019. Otteroooo cites reports by two Bulgarian websites — Bird.bg, or Bureau for Investigative Reporting and Data, and Lupa.bg, another supposedly investigative outlet. In the spring of 2018, the first found that Kalin Kantchev, Kosta’s father, had been installed on the management board of Helpkarma while the second established that as Helpkarma’s donations piled in, the instant loan provider Credissimo, featured in Nexo’s whitepaper as the platform that powers the crypto project, started to report capital increases. One of the allegations is that donated money had been used to purchase real estate and finance personal travels. Another is that the charity handed out huge salaries and commissions to its management and staff, the total of which exceeded a 5-percent cap on such expenses, while also writing large invoices to related companies. Helpkarma withholds a portion of the received donations to finance its operations. Kosta Kantchev has been presented as the beneficial owner of both Nexo and Credissimo, the online lending business of which is licensed by the central banks of several European countries. The two companies share the same co-founder but he is no longer a shareholder in Credissimo. Nexo Accuses Otteroooo of Defamation, Issues Cease-and-Desist Notice In a blog post devoted to the Twitter tirade, Nexo labels it “click-bait fake news” and calls it “the latest attack” on the company. It says it wants to refute the “ludicrous allegations for the sake of transparency and clarity,” including by highlighting certain discrepancies. For example, Nexo noted that the man in a photo referred to as “Konsta Kanchev”, is actually not Nexo’s co-founder Kosta Kanchev but Helpkarma’s founder and Chairman Constantine Krastev. Nexo also claims the purpose of the whole undertaking was to monetize on followers. “The self-proclaimed ‘crypto patriot’ is looking to sell his profile for the right price, in an instant, as reported to Nexo by a person who attempted to buy the account,” the lender said, sharing a screenshot of a conversation with @otteroooo. Leading Bulgarian bTV channel reported in December, that a little over a year after it launched its own investigation into the Helpkarma saga, Krastev has been charged with embezzlement while prosecutors in Sofia continue their work to unravel the case. “Nexo and the Bulgarian non-profit charity, accused of wrongdoing, have not and never had any common operations, common beneficial owners, or common management,” the crypto platform insisted. It also published a cease-and-desist letter to the unidentified individual or group behind the tweets, accusing them of “malicious spreading of inaccurate, fake and unfounded information… with the sole intention to disparage, defame and discredit Nexo.” Besides providing crypto-backed loans, Nexo also offers clients a way to earn interest on crypto holdings. According to its website, the company has $12 billion in assets under management and 4 million users in different jurisdictions. Its platform currently supports close to 40 cryptocurrencies. Earlier in June, Nexo announced it had offered to buy the assets of its competitor, Celsius Network, which is reportedly being probed by U.S. regulators over its decision to freeze withdrawals. Last week, Nexo unveiled it had hired Citigroup to advise it on deals to acquire other crypto lenders. According to crypto media reports, U.S. banking giant Goldman Sachs is also a potential buyer of the distressed assets of Celsius. What are your thoughts on the allegations and Nexo’s response? Tell us in the comments section below. View the full article

The embattled crypto lending platform Celsius has kept withdrawals and transfers frozen since June 12 and told the Celsius Network community that the “process will take time.” Since then, Celsius users are wondering why they are still receiving weekly rewards, and reportedly the company’s management has been arguing with its lawyers over whether or not the business should file for Chapter 11 bankruptcy. However, most of the Celsius articles these days are quoting ‘people familiar with the matter,’ and ultimately these sources cannot be verified. Celsius Customer Says It Is ‘Insulting’ That the Lending Company is Still Paying Weekly Rewards 16 days ago, the crypto lending platform Celsius told customers that it was pausing swaps, transfers, and withdrawals and did not refer to a time when the company would reinstate the services. Since then, it has been assumed that Celsius is suffering from a financial hardship and possible insolvency. Last week it was reported by the Wall Street Journal (WSJ) that the company was seeking restructuring advice from the advisory firm Alvarez & Marsal. Another report that followed claimed that Goldman Sachs was allegedly looking to buy distressed assets from the firm “at potentially big discounts in the event of a bankruptcy filing.” Furthermore, on June 27, Bnktothefuture CEO Simon Dixon wrote about still getting his weekly rewards from the company, despite the frozen withdrawals. “Email on one of my accounts,” Dixon wrote. “Can’t withdraw but Celsius Network [is] still paying out. I’m curious if you think the rewards should still be coming? Thoughts?” Dixon added. Some members of the crypto community called the dispersal of weekly rewards offensive. “This is honestly insulting, Celsius Network is still paying weekly rewards while holding my crypto hostage,” an individual tweeted on Monday. Meanwhile, some users asked if there were any onchain activities stemming from the Celsius Network or whether or not capital has been moved. “Is anyone still keeping up with Celsius Network’s onchain activities of their funds? If they still paying down their loan/moving capital etc…,” one person wrote on Twitter. Another person mentioned it was likely a legal chess move by Celsius’s management. “They’re likely still “paying” rewards because if they stop, they violate their terms of service (contract) and then have no lawful reason to hold your funds in earn any longer,” the individual tweeted on Monday. Sources Say Celsius Is Arguing With Lawyers About Filing for Chapter 11 Bankruptcy — Most Celsius Articles Over the Last Week Quote ‘People With Knowledge of the Situation’ On the same day, a report from the theblock.co’s reporter Andrew Rummer says that Celsius’s lawyers want the company to file for Chapter 11 bankruptcy. Rummer’s report notes that the company has been against the proposition to file Chapter 11, which is one of the most expensive routes of bankruptcy available. The reporter’s source stems from “people with knowledge of the situation,” and this has been an ongoing trend as far as Celsius news is concerned. Many reports from publications like theblock.co, WSJ, Bloomberg, and others covering the Celsius Network subject have quoted people familiar with the matter. For instance, the WSJ claimed people familiar with the matter said that Celsius was working with the restructuring law firm Akin Gump Strauss Hauer & Feld LLP. However, not too long after that report, the WSJ quoted individuals with knowledge of the situation again and noted that Celsius was seeking advice from the restructuring advisory firm Alvarez & Marsal. It was the theblock.co that wrote about Celsius looking for help from the financial giant Citigroup when The Block author, Yogita Khatri, quoted two sources “familiar with the matter.” Moreover, it was the crypto publication Coindesk that reported on Goldman Sachs looking to buy distressed assets from Celsius. That information derived from “two people familiar with the matter,” according to Coindesk author Tracy Wang. The Block’s Rummer said his sources claim that Celsius has been “prevented from making any public pronouncements due to legal advice.” The sources claimed that Celsius Network users would prefer an alternative to bankruptcy proceedings. “To that end, users can show their support by engaging ‘HODL Mode‘ in their Celsius account, said the people,” Rummer wrote on Monday. With all the anonymous sources, people with knowledge of the situation, and those familiar with the matter, it is hard to find accurate information on what Celsius is actually doing to fix its issues. People are likely inclined to wait for Celsius’s official statements as most everything else has been hearsay and speculation. Yet there is no certainty on when Celsius will respond to the issues customers are facing and until then, they have to rely on so-called individuals with knowledge of the situation. What do you think about the latest reports about Celsius? Do you think people ‘familiar with the matter’ sources are legitimate? Let us know what you think about the Celsius subject in the comments section below. View the full article

XTZ rose to its highest point in nearly three weeks on Tuesday, as the token climbed for a second straight session. The move came as FLOW was also trading higher, as prices of the coin moved closer to $2. Overall, crypto markets were 0.90% lower as of writing. Tezos (XTZ) XTZ rose to a multi-week high on Tuesday, leading prices to a collision with a long-term resistance level in the process. Tuesday saw tezos climb to an intraday peak of $1.68, which is nearly 9% higher than yesterday’s low at $1.49. As a result of this rally, XTZ/USD collided with its long-term resistance level at $1.65 for the first time since June 12. Following recent lows, prices of the token have steadily increased, and as of writing are 11.48% higher than at the same point last week. In addition to prices, another resistance has been hit, as the 14-day RSI hit a ceiling of its own at the 50.20 point. Tezos bulls appear to be attempting to enter the $2 region, however this will likely not occur until we see a breakout of the RSI resistance. FLOW FLOW was also trading near a multi-week high on Tuesday, as prices rose by as much as 8% during today’s session. Whilst XTZ bulls may need to wait a while longer before re-entering the $2 region, FLOW was close to this point following today’s gains. Following Monday’s low of $1.65, FLOW/USD surged to an intraday peak of $1.81 earlier in the day. This is the highest point the token has traded since June 13, and comes as prices also hit a resistance point of $1.80. Bulls opted to secure profits rather than hold onto their positions, which resulted in prices falling lower as the session progressed. As of writing, FLOW is currently trading at $1.77, which is marginally below earlier highs. Do you expect FLOW to reach $2 as early as tomorrow? Let us know your thoughts in the comments. View the full article

Analysts from the multinational investment bank and financial services company Goldman Sachs Group Inc. have downgraded Coinbase Global Inc. in a note to investors on Monday. Today, Coinbase shares are down 83.68% from the stock’s all-time high (ATH) in November 2021. Goldman analyst William Nance explained that his group of market strategists believes “Coinbase will need to make substantial reductions in its cost base.” Goldman Downgrades Coinbase, COIN Shares Down 83% From Price High Coinbase shares have suffered during the bear market as many crypto company stocks have lost considerable value during the last few months. When Coinbase first went public on April 14, 2021, the company’s shares were listed on Nasdaq via a direct listing under the ticker COIN. At the time, the Coinbase initial public offering (IPO) reference price was set at $250, and investors saw the crypto exchange’s listing as a “watershed” moment. Following the stock coming out of the gate 14 months ago, amid that timeframe COIN tapped an ATH at $342.98 per share on November 12, 2021. Two days prior, bitcoin (BTC) reached its lifetime price high at $69K per unit. While BTC lost 70% over the next eight months, COIN has lost 83.68% since that time. On Monday, in a report published by Bloomberg, Goldman Sachs’ analysts weighed in on Coinbase shares and downgraded the stock to a sell rating. In a note to investors, the investment bank’s lead research analyst for payments and digital assets sectors, William Nance, made a statement about the downgrade. “We believe Coinbase will need to make substantial reductions in its cost base in order to stem the resulting cash burn as retail trading activity dries up,” Nance explained. Nance has given ratings on a number of other firms recently like Western Union, Fiserv, Fidelity National Information Services, and Shift4 Payments. Bonds Under Pressure, Goldman Says Coinbase ‘Faces a Difficult Choice’ Moreover, in the report, Bloomberg’s Subrat Patnaik and Matt Turner detailed that equity investors “aren’t the only ones souring on Coinbase.” “The firm’s bonds have also come under pressure, with its senior unsecured bonds maturing in 2031 among the biggest decliners in the U.S. high-yield market on Monday,” Patnaik and Turner wrote. Nance further added that the cryptocurrency exchange was facing some difficult decisions going forward. “Coinbase faces a difficult choice between shareholder dilution and significant reductions in effective employee compensation, which could impact talent retention,” Nance remarked. The Goldman downgrade follows the company laying off 18% of its staff, and Coinbase also combined the firm’s Coinbase Pro (exchange) product with a user’s Coinbase account. The company recently launched a derivatives product (nano bitcoin futures) via the Coinbase Derivatives Exchange. Coinbase has faced a number of lawsuits since the IPO, including two separate class-action lawsuits over the once-stable coin GYEN and Terra’s UST token. What do you think about Goldman Sachs’ analyst William Nance downgrading Coinbase shares to a sell rating? Let us know what you think about this subject in the comments section below. View the full article

After seeing the country’s inflation rise to 191.6% in June, Zimbabwean monetary authorities said they have resolved to increase the benchmark interest rate to 200% per annum. In addition, the central bank said it will introduce gold coins which will act as an instrument that will “enable investors to store value.” Discouraging Speculative Borrowing Monetary authorities in hyperinflation-stricken Zimbabwe reportedly plan to hike the benchmark interest rate to 200% per annum, one of the highest in the world. According to an official quoted by Bloomberg, this plan is expected to help put the brakes on the country’s runaway inflation. The latest data from Zimbabwe’s statistical body shows the country’s inflation rate now stands at 191.6%. Explaining the rationale behind the planned move, Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe (RBZ)’s monetary policy committee, said that by hiking the benchmark rate the central bank will discourage speculative borrowing. Gwanyanya added: At a time when banks were still adjusting their interest rates, they will be confronted with steep rates. Before this latest announcement, the RBZ had on June 17 asked banks to cease lending at rates below 80% starting on July 1, 2022. Gwanyanya is also quoted in the same report conceding that the central bank’s initial year-end inflation target of between 25% and 35% can no longer be achieved. Due to the effect of what he called “external shocks,” the monetary policy committee has now upped its inflation rate forecast to a figure that is above 100%. Gold Coins as Alternative Store of Value Meanwhile, in a statement, the RBZ said its monetary policy committee (MPC) had resolved to introduce “gold coins into the market as an instrument that will enable investors to store value.” According to the statement, the gold coins will be produced by the country’s sole buyer of gold and will be “sold to the public through normal banking channels.” In addition to recommending the minting of gold coins, the MPC is resolved to hike the medium-term accommodation interest rate from 50% to 100%. On the other hand, the “minimum deposit rate for ZW$ savings is set to be hiked from 12.5% to 40% while the minimum rate for local currency time deposits is set to jump from 25% to 80%.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article