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Popular Nigerian hip hop artist Davido has sparked off a buzz about crypto assets after tweeting about his intention to start a bitcoin trading company. With the short tweet, Davido becomes the latest African celebrity to express interest in starting a crypto business. Senegalese singer Akon is another prominent African personality to embrace crypto assets. Before the tweet, Davido revealed in October 2020 that he had entered into a partnership with Bitsika, a Ghana-based crypto payment firm. As part of the agreement with Bitsika, Davido, who has more than 8 million followers on Twitter and Instagram, would promote the crypto firm’s app. After the start of this arrangement, reports soon emerged that the Nigerian singer’s influence had caused a massive surge of traffic to the Bitsika platform. Similarly, crypto players in Nigeria expect Davido’s tweet to have a similar effect towards that country’s digital asset space. This is a viewpoint that is also shared by Chiagozie Iwu, the CEO of Naijacryptos, a crypto exchange. Iwu also believes “seeing the increasing bitcoin trends in Nigeria” is what probably prompted Davido to post the tweet. Meanwhile, Iwu reveals why this tweet could be “massive for adoption,” saying: Crypto influencers in Nigeria has max 40,000 followers while Davido has millions of followers on different channels. According to the Naijacryptos boss, this means more people are likely to see or hear about bitcoin from “mainstream figures” than regular crypto influencers. Meanwhile, on social media, some of the singer’s millions of followers seized on the excitement resulting from the post. Some attempted to sell their crypto credentials while others still appear to be ignorant. What are your thoughts on Davido’s crypto exchange ambitions? You can share your views in the comments section below. View the full article

Indian crypto exchanges have pooled their resources together and launched a campaign to gain support from as many parliament members as possible about cryptocurrency regulation. The crypto bill is listed to soon be introduced in parliament. It seeks to prohibit cryptocurrencies while creating a framework for the digital rupee to be issued by the Reserve Bank of India (RBI). Indian Crypto Industry’s Campaign to Bring About Positive Crypto Regulation The Indian government plans to introduce the cryptocurrency bill entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021” during the current session of parliament. The bill seeks to create a regulatory framework for the digital rupee to be issued by the central bank while prohibiting “private” cryptocurrencies. Responding to the government’s plan, the Indian crypto industry launched an online campaign Thursday in order to convince as many representatives as possible about the crypto bill. A website has been created for the campaign to allow Indians to select their constituencies and send an email to their Lok Sabha representatives for their support if the bill is introduced in parliament. Five email templates are provided. The emails point out several key facts about the Indian crypto industry, including that there are between 10 and 20 million active crypto users in the country, over 340 startups offering crypto services, about 50,000 employees, and millions of dollars in venture capital funding. Following the country’s supreme court lifting the banking ban in March last year, “The crypto industry in India has experienced a massive boom” and “over 20 million Indian citizens have trusted the crypto market by investing in cryptocurrencies,” one email details. Another explains that “Cryptocurrencies are not here to replace INR or USD. They are digital commodities, just like gold or silver.” Addressing the “private” crypto part of the bill, one email notes that “popular cryptos like bitcoin and ethereum are not private. There is no company, no CEO and no jurisdiction to these.” Another email asserts: It’s incorrect belief that RBI creating its own crypto removes the need for other cryptocurrencies. Existing cryptocurrencies such as bitcoin, ether, etc. have their own specific use cases. Every blockchain needs its own native token to operate. INR cannot be used in such cases. The emails also urge parliament members to consider that “cryptocurrencies are legal and regulated in … every major country in the world.” Furthermore, the emails reference the guidance by the Financial Action Task Force (FATF) and the G-20, noting that cryptocurrency “is a trillion-dollar global industry with players like Elon Musk, Paypal, New York Stock Exchange, Blackrock, J. P. Morgan participating in it.” One email concludes that implementing “positive regulations will put India on the driving seat in the global blockchain and crypto space.” It will also “contribute significantly to the Prime Minister’s goal and vision of ‘self-reliant India’ (Atmanirbhar Bharat)” and bring about “a thriving digital Indian economy of $5 trillion by 2024.” Another email reads: If this bill is passed, India will be left behind in the crypto and blockchain technology space, and intellectual Indians will be forced to be brain drained from India for conducive regulations. Do you think the Indian government will listen to the crypto industry and not ban cryptocurrencies? Let us know in the comments section below. View the full article

Crypto-friendly travel website Travala has announced the integration of a brand-new payment application, Binance Pay. With such a move, the travel booking company becomes the first merchant to implement Binance Pay as a payment form after its launch on Feb. 3. Five Cryptos and One Fiat Currency Will Be Offered in the First Stage of Binance Pay Per the announcement, Travala allows its customers to use the new payment application, still in beta mode, to book travel products. They include hotels, homes, flights, among others. With Binance Pay, Travala’s users will have the option to pay straight from their Binance accounts with five cryptos and one fiat currency supported initially: bitcoin (BTC), ether (ETH), binance coin (BNB), binance USD (BUSD), swipe (SXP), and EUR. Changpeng Zhao, founder and CEO of Binance, confirmed via Twitter the integration of the payment application with Travala. The crypto-friendly travel company seeks to expand its portfolio of accepted payments to increase “cryptocurrency adoption and promote the freedom of travel.” Binance Pay is an application designed for mobile devices, which features a crypto wallet and allows its users to link the Binance Card. Binance Pay users could also make transfers to each other via QR-codes generated by the mobile app. Visa Planning to Offer Crypto Services The crypto payment market has been gaining traction in the last few months. Moreover, it keeps catching the attention of mainstream financial players. As news.Bitcoin.com reported on Feb. 3, Visa announced that it’s piloting a new system to enable banks to integrate crypto features seamlessly. Using Visa’s crypto APIs, banks can offer a number of crypto services to their customers, including the buying, trading, and custody of BTC. For this purpose, the multinational financial corporation signed a partnership with First Boulevard, a digitally native neobank focused on serving the Black community. What do you think about Binance Pay’s integration on Travala? Let us know in the comments section below. View the full article

A social media giant that significantly impacted South Korea’s internet influence in the early 2000s is set to take a second breath. The company plans to regain its popularity by launching a new cryptocurrency. New Ownership Reportedly Got Over $7 Million From Investors to Rebrand Cyworld According to Hanguk Kyungjae, Cyworld is paving the ground to relaunch its business under new ownership. The consortium of five domestic companies includes SKY E&M, a local entertainment company. The negotiation wasn’t a million-dollar transaction. In fact, the consortium bought Cyworld from its troubled former owner for $897,000 — the same amount owed to Cyworld’s employees at the time of the acquisition. The consortium has now revealed its plans to rebrand the firm as “Cyworld Z,” including the issuance of an Ethereum-based token, Dotori (Acorn). The new management expects the crypto can be listed on “one of the country’s (South Korea) top three crypto exchanges.” Moreover, Hanguk Kyungjae says the consortium received over $7 million from investors for the new ventures. However, the same media outlet quoted an unnamed employee from a local crypto exchange, saying that their platform never had talks with Cyworld. Cyworld Failed on Its First Crypto Business Venture But this is not the first time that Cyworld itself has been involved in a crypto business venture. When Cyworld was acquired by a company, Aire, in 2016, after a data leak incident, they raised around $0.5 million in token sales for a crypto called “Cling.” However, token prices bottomed out rapidly, and the business failed. The South Korean social media network launched in 1999. With the passing of the years, it became wildly popular across the country. After being purchased by SK Communications, Cyworld expanded its operations to the Chinese and Vietnamese markets. In 2005, some stats unveiled that every South Korean in their twenties and 25% of the country’s population were Cyworld’s users. What do you think about the resurgence of Cyworld by launching a token? Let us know in the comments section below. View the full article

Guggenheim Global Chief Investment Officer Scott Minerd has increased his bitcoin fair value estimate. He now says that the price of the cryptocurrency could reach $600K based on his firm’s fundamental research. Guggenheim’s SEC filing to invest half a billion dollars in bitcoin became effective early this week. Guggenheim’s Scott Minerd Says Bitcoin’s Price Could Reach $600K The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, talked about his new bitcoin price prediction in an interview with CNN Tuesday. Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. As of Dec. 31, 2020, Guggenheim Investments had more than $246 billion in total assets across fixed income, equity, and alternative strategies. Minerd began by discussing the current monetary policy against the backdrop of more stimulus, bubbles in the stock market and other speculative assets, as well as the Gamestop saga. “I think we are in a speculative bubble,” he conveyed. “It could go on for quite a while.” Regarding bitcoin, Minerd said that Guggenheim has been studying the cryptocurrency for almost 10 years. “The size of the market just wasn’t big enough to justify institutional money,” he opined, adding that “As the total market cap of bitcoin got bigger … it started to look very interesting.” He proceeded to talk about bitcoin’s price and valuation. “We do a lot of fundamental research,” he emphasized. “If you consider the supply of bitcoin relative, let’s say, to the supply of gold in the world … If bitcoin were to go to those kinds of numbers,” the Guggenheim CIO explained: You’ll be talking about $400K to $600K per bitcoin … That’s an indication of what might be a fair value. That gives you a lot of room to run. However, Minerd cautioned, “I don’t really see the institutional support today, which is just coming online from the likes of people like Blackrock and Guggenheim and other large institutional investors, being enough to support the valuation at its current level.” Pointing out that bitcoin has “had a setback of 50% from its high,” he asserted, “I wouldn’t be surprised to see that happen again.” Nonetheless, Minerd concluded: Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy. The Guggenheim CIO appeared bullish about bitcoin in December, when he predicted that the price of BTC could reach $400K. However, he subsequently focused on the negative aspect, stating that bitcoin’s parabolic price rise was “unsustainable.” He also advised investors to sell their coins. Several people immediately pointed out on social media that Guggenheim had not bought BTC at that time. The asset management firm filed with the U.S. Securities and Exchange Commission (SEC) to invest in bitcoin via Grayscale’s bitcoin trust; its filing became effective at the end of January. Some people believe that Minerd attempted to manipulate the price of BTC in order for his firm to buy low. Another asset manager that recently talked about bitcoin exceeding the market cap of gold is One River Asset Management. CEO Eric Peters expects the price of bitcoin to exceed $500,000. What do you think about Guggenheim’s bitcoin prediction? Let us know in the comments section below. View the full article

The State Agency for Tax Administration of Spain published guidelines to reduce tax evasion for cryptocurrencies, such as bitcoin. The document is part of the general program of the so-called Annual Tax and Customs Control Plan. Spanish Tax Authorities Could Ask Local Exchanges for Customers Data According to the paper, the Spanish Treasury’s entity seeks to apply three measures, as the crypto markets’ hype generates “tax risks.” That’s why the agency expects to gather information as countermeasures against tax-related crimes. The watchdog is looking with the first measure to ask for information from the local crypto exchanges about digital asset holders. The document clarifies they’re pursuing such measures to incentivize the voluntary tax payments on crypto transactions. The second input made by the Treasury’s entity reads as follows: Systematization and analysis of the information obtained, in order to facilitate the actions to control the correct taxation of the operations carried out and the origin of the funds used in the acquisition of cryptocurrencies. But the state-backed agency wants to go beyond the national boundaries. The paper says the Treasury’s plan aims to “strengthen international cooperation” by participating in international forums with the third measure. The purpose of such a move is to “gather more information” related to cryptos and other digital assets, the paper explained. Future Initiatives to Take Place for Incentivizing the New Era of ‘Digital Money’ The Spanish Treasury also raised concerns about how technological advances facilitate criminal organizations to pursue financial crimes through cryptos. However, the paper also unveils that Treasury is aware of the growing crypto adoption, specifically in Europe: Digital money and the trend to reduce the use of cash, has led to an increase in the use of cryptocurrencies as means of payment, so that by the end of 2020, there are already more than 6,500 cryptocurrencies in circulation. Most of the world’s central banks are developing their digital currencies, including the European Central Bank with the creation of the digital Euro, in which Spain participates. The Annual Tax and Customs Control Plan plans to strengthen the initiatives to promote collaboration with service providers and e-commerce platforms to adopt new digital money solutions. What do you think about the Spanish Treasury’s paper? Let us know in the comments section below. View the full article

This week the former Digital Currency Group (DCG) Vice President of Investments, Travis Scher, announced a $72 million crypto-focused venture capital fund backed by the billionaire investor Paul Tudor Jones and hip-hop star LL Cool J. The crypto VC fund was invoked by Scher, the private equity veteran Glenn Hutchins, and his son James Hutchins as well. On Thursday, February 4, 2021, a former DCG executive, Travis Scher tweeted about the new crypto-centric venture capital fund he started with two other partners. The crypto VC fund is managed by North Island Ventures partners Scher, Glenn Hutchins, and James Hutchins. The fund announcement explains that the new venture capital crypto fund initiated by North Island Ventures is backed by well known individuals. Investors in the fund include the rapper and hip hop star LL Cool J and also billionaire investor Paul Tudor Jones. Additionally, the announcement also mentions Twitter COO Anthony Noto and Pepsico CEO Indra Nooyi as investors. The press release also says that the crypto-focused VC fund has “raised some $72 million.” Moreover, Hutchins details that cryptocurrencies will be the next big trend. “Crypto promises not just to revolutionize finance but also to invent a new computing paradigm that will be as transformational as the PC, the internet, mobility, and the cloud,” Hutchins said during the announcement. “It is the proverbial next big thing,” the private equity veteran added. The three managers at North Island Ventures detail that the partners have been investing in crypto for years and Hutchins in particular, started investing in bitcoin (BTC) when it was around $400 in 2016. So far the new crypto VC fund has already started to invest, as the announcement details that it has made seven investments to-date. Investments include startups like Axelar, Dapper Labs, Nori, and more. “Crypto is no longer just a fringe technology movement,” Scher stressed. “There is extraordinary momentum behind decentralized solutions to some of society’s biggest problems, and our goal at North Island Ventures is to partner with the top entrepreneurs in the world bringing these solutions to life.” On Twitter, the former DCG Vice President of Investments further said that year one has been a blast, and that the team is “just getting started.” “We believe that crypto offers solutions to some of the world’s most pressing problems, and our mission is to support the best entrepreneurs in the world bringing these solutions to life,” Scher concluded. What do you think about North Island Ventures’ new crypto-focused VC fund? Let us know what you think about this subject in the comments section below. View the full article

While a number of digital currencies have seen price gains the two leading crypto assets, bitcoin and ethereum have seen transaction fees skyrocket. For instance, data shows that the median fee for a bitcoin transaction is $8.58, while the median fee is $9.35 when spending ether. Meanwhile, the average transaction fee for both networks has been much higher between $14 to over $20 per transfer. During the course of 2021, crypto assets have increased a great deal in value but alongside this, the fees to transact on these networks have risen as well. Bitcoin (BTC) and Ethereum (ETH) are the two largest blockchains, in terms of market capitalization. The two networks also take the cake when it comes to expensive transactions and this has been a complaint on social media and crypto-focused forums. At the time of writing, according to bitinfocharts.com data, the average transaction fee for bitcoin (BTC) is 0.00038 BTC or $14.25 USD per transfer. Of course, the median sized transaction is lower on the BTC network, but still $8.58 per transaction according to today’s messari.io data. Stats show that the average transaction fee on the ETH network today is 0.013 ETH or $20.68 USD at the time of writing. Messari stats show the median fees for ETH is also higher than BTC, but lower than the average ETH transaction, at $9.35 per transfer. BTC fees vs. ETH fees on February 4, 2021, @ 4:00 p.m. (EST) via messari.io. Of course, people have been complaining about the fees and the backlog of transactions. “Always remember people,” one person tweeted. “The sky high transaction fees of ethereum [and] bitcoin are there so someone wants to make profit, not because they’re necessary.” Financial reporter, Kyle Torpey tweeted about the fact that it cost more to send wrapped bitcoin (WBTC) using Ethereum, than it does to transfer bitcoin onchain. Other digital currency fans, specifically ETH supporters believe the high fees problem will be fixed. “On the surface, it looks far overstretched, but 2.0 is going to massively increase ETH’s speed, scalability, and value,” an individual claimed on Twitter. “Those outrageous fees will become a thing of the past.” Bitcoin cash proponents also discussed the massive fees on both the Ethereum and Bitcoin networks during the course of the past week. The cost to get a transfer into the next block using the BCH network costs $0.0021 according to bitcoinfees.cash statistics. The current median fee on the Bitcoin Cash (BCH) blockchain on February 4, 2021, is $0.0009. Bitcoin.com founder Roger Ver recently appeared with the nomadcapitalist.com founder, Andrew Henderson, and discussed the problem with BTC transaction fees. “Just try to make a bitcoin transaction and then try to make a bitcoin cash transaction,” Ver explained in the video. “The difference is staggering and may be the only evidence you need to know where you stand in the Bitcoin vs. Bitcoin Cash debate,” the entrepreneur added. The high fees have also seemingly pushed stablecoins who leverage these networks to alternative blockchains. For instance, when onchain fees became too burdensome, the most popular stablecoin tether (USDT) started migrating from BTC (Omni Layer) to the Ethereum chain. Since the ETH network fees have spiked in recent months, recently USDT settlements have seen more action on the Tron blockchain. Additionally, the second most popular stablecoin USDC is migrating to the Stellar network and fees may have spurred this decision as well. What do you think about the problematic issues with Bitcoin and the Ethereum network’s transfer fees? Let us know what you think about this subject in the comments section below. View the full article

Argo Blockchain said Wednesday that it bought 172.5 bitcoins in the second half of January as part of its asset management strategy. ● In a trading update, the London Stock Exchange-listed bitcoin miner also reported strong revenue growth during the review month, climbing 52% to £2.48 million ($3.37 million) from £1.63 million ($2.21 million) in December. ● Argo did not reveal how much it spent buying the reserve BTC, but bitcoin prices during the last half of January oscillated between $30,000 and $38,500. The company said it now holds the equivalent of 501 in bitcoin, as of the end of January. ● For the month in review, Argo Blockchain mined 93 bitcoins, down from 96 BTC in December. Mining output appears to have progressively declined at the London firm over the last few months. In November, Argo extracted 115 BTC, falling from 126 BTC mined in October. ● Peter Wall, chief executive officer of Argo, said: “I am thrilled that Argo has delivered our best month in the company’s history in both mining revenue and profits. The year has started off very strong.” ● Argo operates 16,000 bitcoin mining rigs located throughout North America, with a capacity of 645 petahash per second (PH/s) in bitcoin mining hashrate. The company also mines privacy coin zcash (ZEC) and claims to operate 5% of the global ZEC hashpower total. Argo’s total mining capacity is currently 787 petahash (SHA-256) in addition to 280 Megasols of equihash mining capacity as well. ● Shares of Argo Blockchain are up 0.64% at £95 ($129) in afternoon London trading Thursday. The stock has soared more than 1,100% over the last three months. What do you think about Argo’s bitcoin purchase? Share your thoughts in the comments section below. View the full article

During the last few months, a few reports from mainstream media (MSM) outlets tried to prove that a large sum of bitcoin is controlled by a small group of people. Recently, Bloomberg claimed that “2% of accounts control 95% of all bitcoin,” a claim that doesn’t hold weight to onchain analysts. On Tuesday, Glassnode researcher Rafael Schultze-Kraft’s latest report refutes this claim by MSM, stressing that bitcoin ownership is not highly concentrated. Shrimps to Humpbacks: The Ocean of Bitcoin Entities Oftentimes MSM outlets and reporters publish a story about the cryptocurrency ecosystem without much research and knowledge concerning digital assets. More recently, after bitcoin (BTC) surpassed the crypto asset’s 2017 all-time high (ATH) and touched a new ATH in 2021, MSM reports concerning the digital currency’s ownership concentration have appeared. The reporters usually leverage the ‘Bitcoin Rich List’ stemming from the web portal Bitinfocharts, a page that shows BTC addresses with the largest holdings. Glassnode researcher Rafael Schultze-Kraft has debunked this theory, as others have in the past, by explaining that “bitcoin ownership is not highly concentrated” but also adds that “whales are accumulating.” Figure 2 from the Glassnode report– “The estimated distribution of Bitcoin across network entities over time.” Schultze-Kraft says that the issue with reports like the one published by Bloomberg is that these journalists simply comb the distribution of bitcoin across the network’s addresses. “This leads to misleading statistics, which result in false narratives around BTC ownership among stakeholders,” the researcher’s report notes. Highlighting the fact that not all bitcoin addresses are equal and bitcoin addresses should not be considered an “account.” “We analyze the distribution of bitcoin across network participants, and show that BTC ownership disperses over time and is much less concentrated than often reported,” the Glassnode analyst said. “Meanwhile, BTC supply held by whales has recently increased, suggesting institutional investors are entering,” the researcher added. The report separates the network entities into specific marine species names including: “shrimps (5,000 BTC).” Chart (left) Glassnode’s Figure 1 – “The estimated distribution of Bitcoin supply across network entities as of January 2021.” Chart (right) Figure 5 – “The estimated number of network entities by size (as of Jan 2021, log scale).” Schultze-Kraft says the Glassnode team also segregated the entities of known exchanges and mining operations into separate categories. Conclusion: ‘2% of Network Entities Control 71.5% of All Bitcoin’ Miners have 9.7% while exchanges have 12.7% and 1,000 to 5,000 BTC whales category makeup 18.4% of the bitcoin supply distribution. “On the large end of the spectrum, whales and humpbacks are the biggest non-exchange entities that together control around 31% of the bitcoin supply. These are most likely institutions, funds, custodians, OTC desks, and other high net worth individuals,” Schultze-Kraft emphasizes. The researcher adds: On the other hand, smaller entities holding up 50 BTC each (shrimp, crab, and octopus) control almost 23% of the supply. This shows that a substantial amount of bitcoins are in the hands of retail investors. One particular figure in the Glassnode study shows the crypto asset’s supply distribution across entities over time. “In particular, it becomes apparent that the (relative) amount of BTC held by smaller entities has been growing over the course of Bitcoin’s lifetime,” Schultze-Kraft adds. After a number of other figures and charts, the report highlights the misleading and unfactual claims made by Bloomberg’s financial contributor Olga Kharif. “We can derive that around 2% of network entities control 71.5% of all bitcoin,” Schultze-Kraft’s report concludes. “Note that this figure is substantially different from the often propagated ‘2% control 95% of the supply.’” What do you think about the recent report highlighting that bitcoin ownership is not highly concentrated? Let us know what you think about this subject in the comments section below. View the full article

Michael Saylor, the ‘bitcoin slayer’ that needs no introduction, continues his attacks on everything non-bitcoin, this time unleashing his wrath on gold. It Feels Great, Says Saylor of Owning More Than 71K Bitcoins In an interview with Andrew Henderson of Nomad Capitalist, a legal finance advisory, Saylor, condemning gold as a “dying asset” and “dead money,” offered his view of the future of investment: gold is out, bitcoin is in. To recap Saylor’s ascent to bitcoin supremacy, his firm Microstrategy made headlines for its relentless bitcoin shopping spree during 2020, buying 29,646 coins in December alone. 2021 is no different, with Saylor announcing today another purchase of 295 bitcoins, bringing his total to 71,079. MicroStrategy has purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of ~ $33,808 per #bitcoin. We now #hodl ~ 71,079 bitcoins acquired for $1.145 billion at average price of ~ $16,109 per bitcoin.https://t.co/lmj3QCgKbw — Michael Saylor (@michael_saylor) February 2, 2021 Here’s how Saylor explains in the interview his aggressive purchasing behavior It’s a long-duration, safe-haven asset. You can’t debase it. If you look in the long term, ten, twenty, thirty years, owning bitcoin is like encrypting your monetary energy in a way that will preserve it, without any degradation in the long term. And it seems to be paying off for his firm, as he boasts in this tweet: Regarding the grim future of gold, Saylor had this to say: Gold is dead money. Sell your gold, buy Bitcoin because other people are going to sell their gold and if you wait until you’ve been front-run by all the hedge funds when they dump their gold, you’re going to be the last person out. Saylor doesn’t stop at gold. For him, any other form of investment that is not Bitcoin, is just not worth it: Look at every asset class for the last six months. Look at gold, look at NASDAQ, look at the S&P, look at bonds. They’re all chopping. They’re not going anywhere. What’s working? Bitcoin’s working. It’s tripled or quadrupled, but let’s say tripled easy. Watch the full interview below -> What do you think of Gold vs Bitcoin as investment vehicles? Let us know in the comments sections below. View the full article

Spacex and Tesla CEO Elon Musk has been trying to get to the bottom of what happened with the popular trading app Robinhood when it stopped people from buying shares of hot stocks, like Gamestop. The shares of these stocks became popular due to the Wallstreetbets movement. Elon Musk Says People Want the Truth From Robinhood During an interview on The Good Time Show via the Clubhouse app Sunday night, Elon Musk grilled the CEO of trading app Robinhood, Vlad Tenev, over the company’s decision to restrict hot stocks last week, including Gamestop. On Friday, Robinhood also restricted crypto trading, citing “extraordinary market conditions.” “What happened last week? Why can’t people buy the Gamestop shares? The people demand an answer and they want to know the details and the truth,” Musk said. Tenev began by explaining the structure of his company. “Robinhood is actually a couple of companies,” he described. Robinhood Financial processes trades, Robinhood Securities clears and settles the trades, and Robinhood Crypto which deals with crypto trades. The Robinhood CEO detailed that last Wednesday, his platform experienced “unprecedented volume” as “a lot of these so-called meme stocks were going viral on social media and people were joining Robinhood” to buy these stocks. Consequently, the company “received a file” from the National Securities Clearing Corporation (NSCC) Thursday morning at about 3:30 AM PST. It requested Robinhood to “put up money to the NSCC based on some factors,” including the volatility of certain securities. Tenev clarified that “this is the equities business so it’s based on stock trading and not options trading or anything else,” elaborating: They gave us a file with a deposit and the request was around $3 billion dollars which is about an order of magnitude more than what it typically is. Musk interrupted Tenev, questioning: “Why is that so high? It sounds like this is an unprecedented increase in demand for capital. What formula did they use to calculate that?” Tenev replied: “We don’t have the full details. It’s a little bit of an opaque formula but there’s a component called the VAR of it, which is the Value at Risk, and that’s based on kind of some fairly quantitative things … and then there’s a special component which is discretionary so that kind of acts as a multiplier.” Tenev also noted that up until that point, his company “has raised a little bit around two billion dollars in total venture capital,” so the request was “a big number.” The Tesla CEO interrupted again, asking: “What everyone wants to know is did something maybe shady go down here? It seems weird that you’d get a sudden $10 billion demand in the morning … suddenly out of nowhere.” Tenev swiftly corrected Musk that the number was $3 billion. The Robinhood CEO then emphasized: I wouldn’t impugn shadiness to it or anything like that, and actually the NSCC was reasonable subsequent to this. They worked with us to actually lower it. It was unprecedented activity. Musk abruptly asked Tenev: “Is there anyone holding you hostage right now?” Tenev chuckled and replied: “No, no, I’m okay. Thanks for asking.” Both laughed. The Robinhood CEO proceeded to explain what happened, calling the experience “nerve-wrecking.” He said after receiving the request for $3 billion, his chief operating officer called up someone higher up at the NSCC to discuss what to do. “There was another call and they lowered it to something like $1.4 billion from $3 billion,” Tenev reiterated that it was still a high number. His company then proposed a plan to the NSCC of “marking these volatile stocks that were kind of driving the activity position-closing only.” Then, at about 5 to 5:30 AM PST, before the market opened, the NSCC came back and reduced the deposit requirement to $700 million, “which we then deposited and paid promptly,” Tenev emphasized. Acknowledging that the move was bad for customers, the Robinhood CEO said, “We had no choice, in this case. We had to conform to our regulatory capital requirements and so the team did what they could to make sure we were available for customers.” The Spacex CEO further questioned: “Who controls this organization, this clearinghouse?” Tenev replied: “It’s a consortium. It’s not quite a government agency. I don’t really know the details of all of that.” Nonetheless, he emphasized that “To be fair … I think there was legitimate sort of turmoil in the markets … so there probably is some amount of extra risk in the system that warrants higher requirements so it’s not entirely unreasonable.” He noted that lots of other brokers were in the same situation and had to restrict the same activity. “So it sounds like this organization calls you up and they basically have a gun to your head: either hand over this money or else,” the Spacex CEO summarized, elaborating: Basically, what people are wondering is did you sell your clients down the river or did you have no choice. If you had no choice, that’s understandable but then we got to find out why you had no choice and who are these people that are saying you have no choice. “I think that’s fair. We have to comply with these requirements. Financial institutions have requirements,” Tenev responded. Nonetheless, he suggested that it would be helpful to know the formula the NSCC uses to calculate these requirements so companies can plan better. Musk proceeded to ask about whether there was outside pressure forcing Robinhood to take the action it did. Tenev affirmed that there is “a rumor that Citadel or other market makers kind of pressured us into doing this.” However, he clarified, “that’s just false,” emphasizing that “this was a clearinghouse decision and it was just based on the capital requirements so from our perspective Citadel and other market makers weren’t involved in that.” During the same Clubhouse interview, Elon also revealed that he is a supporter of bitcoin and should have bought the cryptocurrency eight years ago. He believes that bitcoin is on the verge of getting broad acceptance by traditional finance people. On Monday, Robinhood raised another $2.4 billion from shareholders after it secured $1 billion last Thursday. What do you think about the Robinhood CEO’s explanation? Let us know in the comments section below. View the full article

PRESS RELEASE. Bitcoin.com Exchange is thrilled to announce the listing of BTCV on the 2nd of February 2021 at 14:00 UTC. BTCV, a cryptocurrency launched back in 2019, claims to have come up with a theft-proof security solution. According to its makers, Bitcoin Vault (BTCV) was developed as the ultimate coin for the crypto enthusiast, hodlers, and traders alike. BTCV will be listed with BTC as a trading pair on Bitcoin.com Exchange, with more trading pairs being introduced at a later stage. What Is Bitcoin Vault (BTCV)? Since decentralized blockchains are immutable, canceling transactions is not possible. So, if someone makes a mistake while transferring the funds or if there was an unauthorized transaction there is no way to revert the funds back into the wallet. BTCV is not a fork of Bitcoin, it is a new blockchain based on the code behind Bitcoin which uses the same hashing algorithm needed to mine new coins – SHA-256. Since its inception, the creators behind BTCV have continuously worked on methods to advance the safety of the coin, and fill the security void evident in other cryptocurrencies, which has not been focused on. After a year of research and development, they were able to launch a 3-key security solution. This feature has been designed to secure digital assets in case of an unauthorized or erroneous transaction. Each of the 3-keys (Standard Transaction Key, Cancel Transaction Key, and the Fast Transaction Key) has a unique role to play in increasing wallet security. More information can be found here. BTCV Security Keys Standard Transaction Key The Standard Transaction key is generated along with each wallet. It mainly runs in the background to ensure the smooth operation of all transactions. Apart from functioning like an invisible layer of extra safety, it can also be used to recover the wallet in case of a security breach or technical issue. Cancel Transaction Key As the name suggests, this key allows users to cancel transactions. This has been made possible by regulating the number of blocks it takes to confirm the transaction on the blockchain to 144. It allows wallet owners to reverse a transaction within approximately 24 hours of a regular BTCV transfer. Fast Transaction Key This key is necessary to perform Fast transactions. It can be used to execute a transfer in about 10 minutes, after one block is generated, allowing BTCV users to make quick transactions with trusted parties. This anti-theft feature has made it possible for BTCV users to cancel and reverse transactions without changing the nature of the blockchain. The 3-Key Security Solution is the answer to your security issues in the world of crypto! Why Choose BTCV? Secure: Enhanced anti-theft solution providing safety of your funds. Simple: Based on Bitcoin Core with additional features. Flexible: Users can decide between fast and ultra-secure transfers. Strong Endorsement Danish Chaudhry, CEO of Bitcoin.com Exchange, shared his views on BTCV: “The team behind Bitcoin Vault has really done something special, by developing a cryptocurrency based on a higher standard of security for their community, answering certain issue the whole crypto community has been facing for the past decade or so. With its strong emphasis on transparency, BTCV will flourish within our exchange, and I am sure our users will gain a lot of interest in what their team has to offer.” Piotr Kozłowski, Chief Growth Officer in the Bitcoin Vault development team says that, “We were searching for a solid partnership for quite some time, and we finally found the perfect candidate in Bitcoin.com Exchange – with their big community they can help us achieve high liquidity and increased awareness. The cooperation and implementation process went through smoothly. We were really satisfied by the professionalism of their team and they definitely stood up to the challenge. About Bitcoin.com Exchange The mission of Bitcoin.com Exchange is to empower people from all over the world to trade cryptocurrencies with ease and confidence, from first-time traders to advanced trading professionals. With high liquidity, 24/7 multilingual support and dozens of trading pairs, complemented with a high level of security, we offer an attractive platform for trading any cryptocurrency. Within one year since launch, on average, our exchange has been visited by more than 500K active traders per month, and this number continues to grow as you read this sentence. About Bitcoin Vault Bitcoin Vault is developed to provide an extra level of security based on a three-private-key security structure. It features all the convenience of Bitcoin while adding important features allowing user transparency and freedom. The plan is to have Bitcoin Vault fully accepted by not only the current crypto-community, as one of the major players in the space, but also by newcomers to the industry, and enterprises. Despite the fact that the first Bitcoin was mined over 11 years ago, this crypto space is still in its infancy. The dream is to have produced a product that can improve people’s lives. Media Contact Info Bitcoin.com Exchange Contact Name: Antonio Bileci Contact Email: antonio@bitcoin.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 Indian government has clarified its position on cryptocurrency and the country’s digital currency in answers provided by the Ministry of Finance in Rajya Sabha, the upper house of India’s parliament. The Indian crypto industry sees this clarification as positive news and that the government is unlikely to impose an outright ban on cryptocurrencies, including bitcoin. Indian Government Answers Questions About Cryptocurrency and Digital Rupee Rajya Sabha, the upper house of India’s parliament, published a list of questions and written answers on Feb. 2 that include the topic entitled the “Introduction of India’s own cryptocurrency.” Member of Parliament Sri Sanjay Raut asked the finance minister whether the Indian government is aware that many business companies are using cryptocurrency for international transactions during the last year and whether the government is considering the possibility of introducing India’s own cryptocurrency. The questions were answered by Minister of State for Finance Anurag Singh Thakur. He replied “No, Sir” to the first question. To the question about the digital rupee, he replied: “No, Sir. It was announced in the Budget Speech of year 2018-19 that the government does not consider crypto-currencies legal tender or coins and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The government will explore use of the blockchain technology proactively for ushering in digital economy.” Answers about cryptocurrency and digital rupee by Minister of State for Finance Anurag Thakur in Rajya Sabha. The questions and answers published by Rajya Sabha followed the listing of the cryptocurrency bill to be introduced in the Budget session in Lok Sabha, the lower house of India’s parliament. According to Lok Sabha’s booklet, the crypto bill seeks to create a regulatory framework for the issuance of the digital rupee by the Reserve Bank of India (RBI) and ban “private cryptocurrencies.” The RBI also recently revealed that it is exploring the need to issue a central bank digital currency (CBDC). Advocates Say Complete Ban Unlikely, Definition of ‘Private Digital Currencies’ Commenting on the Minister of State for Finance’s answers, the CEO of local crypto exchange Wazirx, Nischal Shetty, said that the answers by Shri Anurag Thakur “goes to show that government is focused on curbing illegal activities & payment systems.” He elaborated: This clears more confusion that there won’t be a complete ban on crypto. Shetty previously said: “I do not believe there will be a complete ban on crypto in India. Most importantly, no government anywhere in the world will destroy Rs. 7,500+ crore worth of assets belonging to 7 million people.” The CEO of Unocoin crypto exchange, Sathvik Vishwanath, opined: “While this does not indicate the future of crypto industry in India, this is evidence that it is moving in a direction favorable to crypto.” The CEO of crypto banking platform Cashaa, Kumar Gaurav, told news.Bitcoin.com: It is too early to comment on what exactly the term ‘private cryptocurrency’ refers to as per the draft. Further, understanding that cryptocurrency is a global and decentralized system, there is no way any government can ban it. “That would require that kind of technology and control, which technically does not rest with anyone. They can certainly ban the legitimate use of crypto which will only make it difficult for a common person who does not understand it to get involved in it,” he added. “However, what we understand is that the Indian government is trying to crack down on scams that are running in the name of bitcoin, considering that 90 percent of these scams do not even operate on a proper cryptocurrency,” he further opined. “We are positive that the government will come up with regulations and policies that will put control on the scams and let the innovation in the industry, including the crypto like bitcoin, cashaa, ethereum that are built on the public chain to grow and thrive.” Do you think the Indian government will ban bitcoin? Let us know in the comments section below. View the full article

An Ontario man based in San Bernardino County of the U.S. has agreed to plead guilty to federal charges of illegally operating a bitcoin to cash exchange business. According to the U.S. Department of Justice (DOJ), the man, Hugo Sergio Mejia, 49, operated the unregistered exchange business between May 2018 and September 2020. Accordingly, Mejia now faces “a statutory maximum sentence of 25 years in federal prison” once he pleads guilty. In a statement announcing the charges, the DOJ says Mejia had, as part of his plea agreement, admitted that he had not “registered his business with the FinCEN.” The DOJ explains in the statement that during the “nearly 2½-year period” Mejia had managed to exchange at least $13 million. However, as part of efforts to conceal his true activity, Mejia also admits that he created companies specifically for this purpose. Further, the DOJ statement adds: Mejia advertised his business online and was referred to customers by word of mouth, communicating with them via encrypted messaging services, and meeting them in person at coffee shops, the plea agreement states. However, after Mejia “conducted five bitcoin to cash transactions that cumulatively exceeded $250,000”, his activities were exposed. According to the DOJ, Mejia’s client had apparently cooperated with law enforcement, which led to his capture. In the meantime, the DOJ says as part of the plea agreement, Mejia will “forfeit all assets derived from the illegal conduct, including $233,987 in cash seized from residences in Santa Ana and Ontario.” Silver coins and bars, and approximately $95,587 in various cryptocurrencies will also be forfeited to the state. What do you think of the jail sentence that Mejia is expected to serve when he pleads to the charges? Tell us what you think in the comments section below. View the full article

The Wall Street Bets saga, an incredibly ridiculous story about a group of amateur Reddit investors who beat career Wall Street hedge funds at their own game, is to be made into a movie. According to a report by online news site Deadline on Jan. 31, Metro Goldwyn-Mayer (MGM) won the rights to produce the film in a bidding war involving major Hollywood movie houses. The movie is to be based on a book proposed by author Ben Mezrich. Mezrich’s previous work, “The Accidental Billionaires: The Founding Of Facebook, a Tale Of Sex, Money, Genius and Betrayal,” was adapted into the motion picture “The Social Network.” The title to his planned latest book offering is called “The Antisocial Network,” said the report, quoting sources familiar with the development. The book is expected to go out to publishers later this February, it said. However, it is not yet clear what shape or structure the movie will take. MGM’s Michael DeLuca will produce the film. DeLuca also produced the Academy-Award winning The Social Network. Cameron and Tyler Winklevoss will executive produce via their Winklevoss Pictures production company. The Wall Street Bets group noticed that major hedge funds on Wall Street had been placing short bets against companies they considered to be dying. The funds particularly targeted Gamestop, the world’s largest video game retailer, continually shorting the company’s shares. But the Redditors saw an opportunity to make profit and collectively bet the other way, buying shares and stock options. This resulted in the value of the Gamestop shares soaring by more than 2,600% in January. Hedge funds that had shorted the stock incurred losses running into several billions of dollars. One fund, Melvin Capital, reportedly lost up to $7 billion to the “short squeeze” in January, forcing it to restructure its investment portfolio to ensure a faster escape in future “squeezes.” The Reddit traders also extended the pump to a few other stocks considered to be dying, including AMC (which climbed over 900% in January), as well as Nokia and Blackberry. This surge of activity resulted in a major controversy when the trading app Robinhood began restricting trade on certain stocks. What do you think about the Wall Street Bets saga being turned into a film? Let us know in the comments section below. View the full article

Alongside the cryptocurrency’s meteoric climb over the back half of 2020 and early 2021, a curious phenomenon has unfolded; heightened profit-taking and conversion to fiat currencies. Data collected by Simplex, a fiat-crypto gateway, underscores this seemingly paradoxical development. A Curious Race to Convert Crypto to Fiat Has Accompanied Bitcoin’s Latest Drive Higher Sharing exclusive data with Bitcoin.com, Simplex cofounder and chief analytics officer Netanel Kabala says: While the international press coverage of Bitcoin’s rally has caused a swathe of new users to flock to the industry and buy-in, outflows have been equally significant. Of the total amount of cryptocurrency sold in the last six months, 43% was off ramped in December alone. A quick look at Google Trends for the term ‘Bitcoin’ echoes these developments, especially now that new equity instruments like Grayscale Bitcoin Trust and big-name funds like Blackrock are adding exposure and raising crypto awareness. Still, given the increased ability to quickly convert crypto and withdraw in fiat currencies, the uptick in funds leaving the ecosystem is astonishing. Part of this can be attributed to the growing fungibility of cryptocurrency, primarily helped by the support of players like Simplex, which empowers users to buy, sell, and spend crypto through Visa partnerships. Although some of the latest rally’s onlookers have decried the rapid rise in crypto valuations as proof that a bubble is forming in this nascent asset class, others within the industry see the development as a harbinger of times to come. One of the areas this is most apparent is altcoins. Data compiled by Simplex illustrates that as Bitcoin prices have leveled off above $30,000, daily purchases of altcoins have risen by approximately 65%. More interestingly, the data highlights that newer users account for nearly 20% of this volume, marking a sharp increase in the number of novice retail investors expanding and diversifying their exposure within the ecosystem. Poloniex, one of the top 20 global cryptocurrency exchanges, which has adopted Simplex’s platform, has experienced these results firsthand. Karen McHenry, Poloniex’s Director of Product, attributes this development to greater access within the ecosystem, especially with Simplex’s buy option, which promotes instant account funding alongside the heightened ability to cash out quickly. She also doesn’t see the ability to more quickly convert from crypto to fiat as harming interest despite the eyepopping amounts taken off exchanges. It may sound surprising, but adding the ‘sell’ option actually has a positive impact on the number of crypto transactions too. Though this easy offramp and soaring volume of sell orders might seem negative for prices, it can also be viewed as a healthy reflection of the ecosystem’s growing use cases. Besides making it easier to exit and enter, growing areas like decentralized finance (defi) and greater fungibility all contribute to a cryptocurrency’s value proposition. As institutions begin lining up to add exposure as retail accumulation climbs, Bitcoin momentum may actually accelerate, and by extension, lift the altcoins sought after by the newcomers seeking opportunities outside the seminal crypto coin. McHenry adds: If the bull market can maintain its momentum, some of these BTC profits will flow into altcoins, which are particularly popular among retail investors. This creates a positive feedback loop, with traders who turn a profit prone to telling their friends about crypto, which brings more investment into the space. Do you think the offramping will continue throughout 2021? Let us know in the comments sections below. View the full article

The U.S. Federal Reserve (Fed) has posted a job advertisement that seeks to hire a role related to stablecoins and central bank digital currencies (CBDC). The Fed is looking for a research manager to join its team to assess the “benefits and risks” of digital assets. The Role Is Part of the Fed’s Digital Innovation Policy Per the Linkedin job posting, the Federal Reserve Board expects the selected candidate to manage the “Digital Innovation Policy Program.” The department oversees “all aspects of a program focused on emerging issues at the intersection of technology and payments.” The Fed highlights in the post, the “changing nature” of payment platforms in a digital environment. However, the role is not limited to doing in-depth research on how digital assets could benefit the economy. In fact, the U.S. Federal Reserve is aiming with the research manager of the Digital Innovation Policy Program to address “regulatory framework for emerging payments platforms” issues. The job advertisement also adds: These topics require the Program to take into account diverse views across the Board and the Reserve Banks, necessitating a significant investment of time and resources in collaboration and communication across relevant bodies as well as the ability to cooperate with a range of domestic and international partners on digital innovations topics. As of press time, there are 28 applicants interested via the Linkedin job posting. Latest Developments on Stablecoins and CBDCs in the United States The Fed has been recently treading waters on CBDCs through Jerome Powell’s speeches, the Federal Reserve chairman. During an online event at Princeton University in New Jersey earlier in January, Powell expressed that the American central bank is in no rush to be the first to work in a CBDC. Moreover, the Fed’s chairman stressed that it could “take years” before the U.S. Federal Reserve releases a central bank digital currency. In December 2020, three U.S. lawmakers introduced a bill that will force private stablecoin issuers to obtain a banking charter (or license) and get approval from the Fed before they can issue a stablecoin. What do you think about this Fed’s job posting? Let us know in the comments section below. View the full article

This past week, another social media trend started on the Reddit forum r/wallstreetbets, which aims to initiate a large silver short squeeze in order to push the price of the precious metal to $1,000 per ounce. However, the silver squeeze trend comes with controversy, as numerous wallstreetbets supporters believe hedge funds like Melvin Capital and Citadel are behind the silver push. The Controversial ‘Silver Squeeze’ During the last week, news.Bitcoin.com reported on the wallstreetbets (WSB) saga taking place on social media forums and the infamous subreddit r/wallstreetbets. Since the mega short squeeze on the Gamestop (GME) shares, the squeeze maneuver has also spilled into a number of other stocks. This week, shares from the Russell 3000 Index (RUA) were targeted including tickers like NOK, GOGO, AMCX, and FIZZ. But the trend didn’t stop there, as one post, in particular, had called for a “silver squeeze.” The WSB Reddit post called for the silver squeeze to push the price of silver from $25 per ounce to $1,000. Now since the post was published, the Reddit admins in charge of moderating r/wallstreetbets removed the post. But that was long after the message was made viral by the participants discussing the pros and cons of attempting to squeeze silver. Now the reason people think the silver short squeeze post may be shady, is because a number of WSB Redditors believe the silver squeeze was invoked by the hedge funds losing money in order to cover their GME losses. There are a great number of Reddit posts warning that people should not participate in the silver short squeeze. One post said: Citadel is the 5th largest owner of [silver], it’s imperative we do not ‘squeeze’ it. These are hedge fund bots spamming awards. Some WSB participants think the silver squeeze is a set up by hedge funds like Citadel and Melvin. Citadel is the fifth-largest silver shares holder according to documents. However, many of these hedge funds own paper silver and shares of mining companies which is different than the physical bullion market. Some people think whether or not the hedge funds are doing something shady, it doesn’t really matter as silver has always been considered sound money. The people who dislike the silver trend on WSB, have also warned that Melvin Capital Management is also a big silver holder. Unfortunately, it is hard to tell where the silver pump threads and posts are stemming from, as there are many free-market supporters who are fans of the precious metal sometimes referred to as the ‘poor man’s gold.’ Despite this, there are numbers of WSB fans and Redditors claiming the silver pump stemmed from hedge fund people and they believe there are imposters everywhere now. Some of these people are growing irrational, getting mad at anyone who posts about silver. Many WSB supporters might be feeling the pain from Gamestop Corp. shares dropping significantly on Monday. Silver soars past $30 a troy ounce as Reddit-fuelled buying frenzy continues for 3rd day. #Silversqueeze pic.twitter.com/mLmasUBrq1 — Holger Zschaepitz (@Schuldensuehner) February 1, 2021 In Spite of Controversy, Something Is Sparking Silver Demand Despite the speculation, some sort of demand was invoked when it comes to silver prices and obtaining physical bullion. For instance, if you are attempting to purchase an ounce or ounces of silver bullion online, the process is far more complicated now than it was last week. A large portion of bars and coins are either sold out or the prices are marked up considerably. This is simple arbitrage. #Silver futures are 28.67. Silver Eagles on Apmex are $41.66, thats a 45% premium to futures. Obvious opportunity to buy futures & stand for delivery for a 35% discount on physical right? But when they don't have it, Futures = $41.66/oz. #silversqueeze — Jonathan #SILVERSQUEEZE Mergott (@Jmergz1985) February 1, 2021 All the American Eagles are sold out across a number of bullion dealers. On Sunday morning, a few big-name dealers have halted a great number of silver sales. News.Bitcoin.com’s most recent WSB report disclosed how SD Bullion sold nearly 10x the number of silver ounces than usual. People visiting bullion dealer websites like Provident, Apmex, and JD Bullion could see the unprecedented demand targeting physical silver. “In the last week, we have seen a dramatic shift in Silver demand from our customers,” said Ken Lewis CEO of the bullion dealer Apmex. “For example, the ratio of ounces sold per day was running about two times earlier in the week and closer to four times the average demand by the end of the week,” Lewis added. The Apmex CEO further stressed: Once markets closed on Friday, we saw demand hit as much as six times a typical business day and more than 12 times a normal weekend day. Combined with the extremely high demand levels, we are also seeing a surge in new customers. On Saturday alone, we added as many new customers as we usually add in a week. Additionally, the hashtag “#silversqueeze” has been trending throughout the United States and a few other countries on Twitter during the last 48 hours. By the late afternoon on Sunday, spot silver and futures traded at $27 per Troy ounce, and by Monday morning spot silver traded 7.7% higher at $29.76. The commodity hopped above the $30 region, and silver prices per ounce exchanged hands at $30.35 an ounce. One ounce of .999 silver is hovering in the $29 price handle at the time of publication What do you think about the controversial silver squeeze? Let us know what you think about this subject in the comments section below. View the full article

As dogecoin’s frenzy keeps making the headlines in the crypto sphere, some people are not happy with it. Billy Markus, Dogecoin’s cofounder, has been a target of long-lasting online harassment, which still doesn’t end, he claims. Markus Sold All His Doge in 2015 The so-called meme coin, DOGE skyrocketed well over 325% in a single day, specifically on January 29, 2021. The dynamic was the similar one followed by the Gamestop/Wallstreetbets saga. In this case, a Reddit group called Satoshistreetbets was allegedly behind the recent dogecoin’s pump. However, Markus, also known in the crypto industry as “Shibetoshi Nakamoto,” published some tweets, clarifying publicly that he sold all his DOGE in 2015 after “getting laid off and freaking out about money.” In fact, he pointed out that money was enough to buy a used Honda Civic car. Dogecoin’s cofounder also claimed that he left the Dogecoin project seven years ago due to harassment from the community. However, Dogecoin’s cofounder says he’s now “being harassed again.” Although “Shibetoshi Nakamoto” didn’t provide additional details on who was behind the harassments against him, nor the nature surrounding it, he said: Also, I don’t say this as a sob story – I’m financially fine – I just want to offer some perspective of what it feels like to have a mob demand you to do something for them on a project that you have no current involvement in, that you’ve seen others make many millions off of. There are no reports on how much Markus’s net worth is nowadays. Dogecoin Madness Remains Alive as the Month Kicks Off At the start of February, dogecoin hit highs at $0.045, but its hovering around that neighborhood lasted briefly. According to markets.Bitcoin.com data, DOGE is exchanging hands at $0.0398, up 40.30% on Monday, with a market capitalization of $5.11B. Twitter is featuring the hashtag #Dogecoinarmy as a trending topic in several countries like the United States and the United Kingdom. Also, there are still active efforts from dogecoins’ investors within the Reddit community to pump prices as the frenzy keeps alive. In fact, as news.Bitcoin.com reported last week, one particular Reddit thread talks about holding dogecoin to get the price per unit to $10. What do you think about Dogecoin’s co-founder words? Let us know in the comments section below. View the full article

The heavy hitters in traditional finance have been concerned about the recent stock market action fueled by Redditors and a colossal number of retail investors. This week a Goldman Sachs executive warned that if these short squeezes continue it could “snowball through the market.” Moreover, Interactive Brokers founder Thomas Peterffy made similar comments this week saying these types of systemic risk can “take down the entire system, theoretically.” Wallstreetbets Trend Could ‘Snowball Through the Market’ 2021 has been an interesting year so far and this week a Reddit forum called r/wallstreetbets sparked a whole new hot topic. Four days ago, news.Bitcoin.com reported on the stock market fiasco that started with short squeezing Gamestop (GME) shares. But GME shares were not the only stocks that felt the push as the wallstreetbets (WSB) trend started leaking into a number of other types of shares. The stock market story and Wallstreetbets (WSB) trend has shaken financial markets this week and has been one of the hottest topics in the United States. If you missed out on the WSB story this week, make sure you read news.Bitcoin.com’s report on the subject here. For instance, stocks from the Russell 3000 Index (RUA) were targeted including tickers like NOK, GOGO, AMCX, and FIZZ. The social media craze even leaked into the cryptocurrency world pushing up coins like dogecoin and XRP as well. Estimates assume that short-sellers have lost “$70.87 billion from their short positions,” according to statistics from the financial data analytics firm Ortex. An analysis from Zerohedge discloses that Melvin Capital lost a whopping $7 billion during the month of 2021. “Melvin Capital lost 53% in January, as Gabe Plotkin (a former SAC Portfolio Manager), lost over $5.3 billion in one month,” the report noted. The financial newsdesk has also been reporting on another WSB trend taking place during the last week as short squeezers want to squeeze the silver market. One thread on r/wallstreetbets suggested that the power of the masses could squeeze the price of silver from $25 to $1,000. Zerohedge has been reporting on trends that show Redditors and social media users have managed to invoke demand for silver. “In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open,” the finance reporter disclosed. “In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend).” Additionally, polygon.com contributor Owen S. Good reported this week on how the meme-driven stock’ rally rescued AMC theaters from $600 million in debt. Meme lords and Redditors saved this business, not the U.S. federal government, not the bankers. Those groups were actively shorting AMC down the toilet. “Theater chain gets unexpected lifeline when private equity trades a corporate IOU for stock,” the author’s report explains. r/wallstreetbets is now the largest hedge fund in the world. Excepts it’s completely decentralized and entirely democratic. — Chamath Palihapitiya (@chamath) January 30, 2021 Furthermore, the infamous Tyler Durden from Zerohedge wrote about an investors report published by Goldman Sachs executive David Kostin. Durden writes that the latest Goldman report warns “if the short squeeze continues, the entire market could crash.” “The most heavily-shorted stocks have risen by 98% in the past three months, outstripping major short squeezes in 2000 and 2009,” Kostin’s study details. “This week demonstrated that unsustainable excess in one small part of the market has the potential to tip a row of dominoes and create broader turmoil,” the Goldman analyst added. According to Durden from Zerohedge, Goldman’s Hedge Fund VIP list declined by 4% this week during the WSB fiasco. “In recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one fund’s unwind could snowball through the market,” Goldman’s David Kostin concluded. Durden interpreted Kostin’s final conclusion in a different way. The author writes: Translation: if WSB continues to push the most shorted stocks higher, the entire market could crash. Interactive Brokers Chairman: ‘It Can Take Down the Entire System, Theoretically’ Goldman Sachs executives are not the only financial heavyweights weighing in on the stock market craziness and the possible aftermath. The founder and chairman of Interactive Brokers Group Inc., Thomas Peterffy, discussed his thoughts about the stock market madness in an interview with Marketwatch financial author Mark DeCambre. Thomas Peterffy, founder and chairman of Interactive Brokers Group Inc. On Thursday, DeCambre said that Peterffy explained that the short squeeze action could go on for a very long time unless it was stopped. DeCambre also wrote that Peterffy was worried about systemic risk and “the potential” for this trend “to ripple throughout the market.” “It can take down the entire system, theoretically,” Peterffy stressed in his interview with DeCambre. “There is no reason why a short squeeze cannot go on indefinitely,” the Interactive Brokers founder detailed. i'll be on @business at 4:20 pm ET to talk memestocks, gamestonk, robinhood, bitcoin, dogecoin, papa musk, and where we go from here should be a 🌶️spicy🌶️ one the revolution *will* be televised — Meltem Demirors (@Melt_Dem) January 29, 2021 Meanwhile, a number of cryptocurrency enthusiasts have been cheering the WSB trend on as the virality of WSB vs Wall Street has encapsulated nearly all the social media conversations in the U.S. Meltem Demirors, the CSO of Coinshares, Europe’s largest digital asset manager with $3 billion in assets under management (AUM), gave her interpretation of the recent stock market events rattling the status quo. “At its core, the events of this week are about free speech, censorship, and power. We are witnessing the fastest roll-up of power in human history,” Demirors said. “As our lives become increasingly dependent on digital mediums,” Demirors continued. “So does the ability of powerful entities like governments and corporations to censor our right to free speech, our right to gather, our right to protest, and more. There is an unprecedented amount of power up for grabs, and what we see is a battle for control. It already played out on the political stage, and is now playing out in financial markets, financial media, Fintech platforms, and social media,” the Coinshares CSO added. Furthermore, on January 29, the cryptocurrency trading platform Bittrex Global revealed that it was listing tokenized stocks for a number of the shares the WSB trend has been affecting. The exchange detailed that it made the decision because Bittrex wanted to “ensure retail investors have exposure to stocks they may wish to trade anytime during any day of the week.” The crypto exchange also plans to list any other mainstream stocks that other finance trading platforms may censor in the future. The newly listed tokenized shares on Bittrex Global include Gamestop (GME), AMC Entertainment (AMC), Blackberry (BB), Nokia Corporation (NOK), and the Ishares Silver Trust (SLV). However, U.S. residents cannot participate, as Bittrex Global geo-blocks American citizens visiting the web portal. “Bittrex is regulated in Lichtenstein and Bermuda and thus U.S. investors may be blocked from trading in these securities but other jurisdictions may be able to trade in these securities if they are interested,” the company details. What do you think about the recent wallstreetbets (WSB) trend and Goldman and Interactive Brokers executives warning of systemic risk to the traditional finance system? Let us know what you think about this subject in the comments section below. View the full article

Ripple Labs has officially responded to the complaint by the U.S. Securities and Exchange Commission (SEC). Besides explaining that the XRP cryptocurrency is not a security, Ripple accuses the securities regulator of being out of step, picking winners and losers, as well as distorting facts regarding the cryptocurrency. In the court document filed on Jan. 29, Ripple claims that XRP is not an “investment contract,” insisting that the crypto “is a virtual currency and thus, outside the SEC’s jurisdiction.” Furthermore, the company stated that it never held an initial coin offering (ICO), never offered future tokens to raise money, and has no relationship with the vast majority of XRP holders. The SEC, however, is “out of step domestically and globally,” claims Ripple. The company noted that no other regulators in the world have considered XRP to be a security. Ripple alleges that “Basically, on its way out, the Trump administration sought to undo the determination that XRP was a virtual currency made during the Obama administration.” Among the regulators that have concluded that XRP is not a security include the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN), Ripple noted in its response. The two U.S. authorities determined in 2015 and 2020 that XRP is a virtual currency. Furthermore, the company added that the U.K. Financial Conduct Authority (FCA) and the regulators in Singapore and Japan have similarly concluded that XRP is a not a security. Ripple also accuses the SEC of “picking winners and losers.” The company claims that “there is no principled distinction between XRP’s current function and that of BTC or ETH.” Yet, the SEC determines that the two cryptocurrencies are not securities. In addition, Ripple asserted that “XRP is a great deal more environmentally friendly than BTC and ETH, considering it avoids the mining process … That must matter from a policy perspective.” Moreover, Ripple alleges that the SEC has “distorted the facts,” stating that “The complaint filed by the SEC is full of cherry-picked quotes taken out of context, and draws conclusions that are unsupported by both the facts and the law.” The SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Christian Larsen in December alleging that they sold over 14.6 billion units of XRP, which it considers unregistered security, for at least $1.38 billion. After the SEC’s lawsuit, several major cryptocurrency exchanges delisted XRP, including Coinbase, Binance, Okcoin, and Blockchain.com. Ripple says it wants to resolve the dispute with the SEC as fast as possible, noting that since the securities watchdog brought the lawsuit against the company and its executives, XRP lost almost half of its market value. This has caused retail XRP investors with no connection to Ripple to suffer billions of dollars in losses. What do you think about Ripple’s response to the SEC’s allegations? Let us know in the comments section below. View the full article

Payments giant Visa Inc’s CEO Alfred Kelly has revealed his firm’s plans to enable cryptocurrencies trading on its network. Kelly, who is also chairman of the firm, explains that there is no reason not to add cryptos when these are increasingly becoming “a recognized means of exchange.” Digital Gold Segment In an earnings call with analysts, Kelly opines that due to Visa’s “global presence, its partnership approach as well as its trusted brand”, the fintech giant is “uniquely positioned to help make cryptocurrencies more safe.” The CEO adds that Visa also wants to make cryptos “more useful and applicable for payments.” However, to achieve this, Kelly says his organization will divide the crypto market into two segments, namely cryptocurrencies and digital currencies. Describing the assets that will be included in the cryptocurrency segment, the CEO says these will be viewed “as digital gold.” According to Kelly, such currencies are “predominantly held as assets that are not used as a form of payment in a significant way at this point.” The Visa boss then discusses the firm’s plan for such currencies saying: Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto a Visa credential to make a fiat purchase at any of the 70 million merchants where Visa’s accepted globally. According to Kelly, this strategy will be similar to Visa’s approach to “connect closed-loop wallets such as Line Pay and Paytm.” Digital Currency Segment Concerning digital currencies that will feature in the second segment, the Visa CEO says these will be consist of “fiat-backed digital currencies including stablecoins and central bank digital currencies.” He adds that these emerging payments innovations can potentially be “used for global commerce much like any other fiat currency.” Meanwhile, the Visa CEO reveals some of the 35 organizations that have already chosen to issue Visa cards. These include leading digital currency platforms and wallets providers like “crypto.com, Blockfi, Fold, and Bitpanda.” According to Kelly, these wallet relationships “represent the potential for more than 50 million Visa credentials.” What do you think of Visa’s plan to introduce crypto trading on its platform? You can share views in the comments section below. View the full article

Just recently, the Bitcoin Cash community has been discussing the large number of transactions the network has been seeing on a daily basis during the last month. Statistics show that bitcoin cash daily transactions have been increasing every day since the last week of 2020. Bitcoin Cash miners have processed upwards of 300,000+ daily transactions on various days during the past week. The crypto economy and myriad of blockchain networks have been getting a lot more attention during the last few months. Not only has a number of digital assets jumped tremendously in value, but many of these tokens are seeing increased usage as well. More recently, Bitcoin Cash proponents have been noticing that the BCH chain is handling a whole lot more transactions than usual. Since the last week of December 2020, BCH transaction counts per day have steadily risen northbound and have come awfully close to matching the Bitcoin (BTC) network’s daily output. At the time of writing, onchain data shows the BCH chain processed 282,010 transactions during the last 24 hours while BTC has processed 334,793 in that time. This shows that BTC is handling 3.87 transactions per second, while BCH does 3.26 at this transaction rate. Additionally, statistics from messari.io show that bitcoin cash (BCH) is currently the fourth most active blockchain under dogecoin (DOGE). Most of the time during the last month, BCH was the third-most active blockchain. In terms of settlement, during the last 24 hours data shows the Bitcoin Cash network settled $4.34 billion among 80,529 active addresses. On Friday, Bitcoin Cash supporters discussed the increasing transaction count on Reddit. One thread noted that on January 29, 2021, BCH had 322.26k transactions compared to BTC’s 322.22k daily count. “Community growth and utility is on the rise, and that’s the most important thing,” the author of the Reddit post stressed. Another person dubbed the “Transaction Maximalist” wrote: The same throughput but still $0.001 transaction fees. Cool. Even with the increase in transaction throughput BCH transaction fees have not risen. BCH has a 32MB block size parameter and in September 2018, participants observed the chain processing upwards of 2 million+ transactions in a 24 hour period. During this period of time in 2018, a time the community called the “stress tests,” BCH miners processed massively sized blocks all week long. Bitcoin cash miners still process very large blocks, while BTC miners still deal with the 1MB limit and segregated witness (segwit) improvements. On Saturday, BCH supporters celebrated a large 4723.044kB (4.7MB) block at block height 672,532. The large block processed 14,910 transactions and with the 6.25 BCH block rewards only $25 in fees were paid for the transaction confirmation. Software developer Jonathan Toomim talked about the larger sized block on Saturday morning as well. “This block (672532) was mined at 8:30am UTC,” Toomim said. The previous block (672531) included only [one] transaction (Hathormm, aaarg!). The block before (672530) was mined at 7:12am UTC. So this 4.7 MB block comprised 1h28m worth of transactions. That’s about 0.53 MB per 10 minutes,” he added. What do you think about the increased transaction count on the Bitcoin Cash blockchain? Let us know what you think about this subject in the comments section below. View the full article

The founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund firm, has clarified his view on bitcoin and cryptocurrency. Ray Dalio also reveals that he and his colleagues at Bridgewater “are intently focusing on alternative storehold of wealth assets.” Bridgewater Founder Ray Dalio ‘Greatly’ Admires Bitcoin Ray Dalio, founder and chief investment officer of Bridgewater, has clarified his view on bitcoin and revealed what his company has in store for cryptocurrency. With about $140 billion in assets under management, his hedge fund is the largest in the world. AICIO Magazine and Wired Magazine have called Dalio the “Steve Jobs of Investing,” and TIME Magazine has named him one of the 100 Most Influential People. In a research note published on the Bridgewater Associates’ website on Thursday, Dalio wrote: “I am writing this to clarify what I think of bitcoin. Please pay attention to what I am saying here and not what those in the media are saying I said because this is reliable.” He began by admitting that he is not an expert on bitcoin or cryptocurrency. “Still, people demand my non-expert assessment of bitcoin and clarifications in my own words are better than distortions in the media so here it goes, presented with the warning not to rely on it,” Dalio declared, elaborating: I believe bitcoin is one hell of an invention. To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment. Emphasizing the current need for “alternative gold-like assets,” Dalio asserted that “Because there aren’t many of these gold-like storehold of wealth assets that can be held in privacy and because the sizes of their markets are relatively small, there exists the possibility that bitcoin and its competitors can fill that growing need.” The Bridgewater founder noted: “It seems to me that bitcoin has succeeded in crossing the line from being a highly speculative idea that could well not be around in short order to probably being around and probably having some value in the future.” He further said: “I greatly admire how bitcoin has stood the test of 10 years of time, not only in this regard but also in how its technology has been working so well and has not been hacked.” Nonetheless, the Bridgewater executive cautioned that those “holding digital/cyber assets at a time when cyber offense is much more powerful than cyber defense, the cyber risk is a risk that I can’t ignore.” In conclusion, Dalio said bitcoin looks to him “like a long-duration option on a highly unknown future that I could put an amount of money in that I wouldn’t mind losing about 80% of.” He concluded, “That is what bitcoin looks like to this non-expert. I am eager to be corrected and learn more,” elaborating: Believe me when I tell you that I and my colleagues at Bridgewater are intently focusing on alternative storehold of wealth assets. Dalio further revealed: “Expect Bridgewater to soon offer an alt-cash fund and a storehold of wealth fund in order to better deal with the devaluation of money and credit that we consider to be a major risk and opportunity, and bitcoin won’t escape our scrutiny.” The head of Bridgewater clarified that when he uses the word “bitcoin,” he means “bitcoin and its analogous competitors.” Dalio has recently been talking more about bitcoin. In November, he admitted that he may be wrong about the cryptocurrency but still had doubts. In December, he said bitcoin could be an alternative storehold of wealth to gold. What do you think about Ray Dalio’s view on bitcoin? Let us know in the comments section below. View the full article