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Ethereum, Altcoins and Bitcoin: What’s Happening?

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Ethereum

It’s certainly is a sea of red in the markets. Lord Rothschild famously said to buy when there’s blood in the streets. However, we don’t think that time has come yet. ICOs, which raised money in Ethereum, are dumping their ETH. Most of these ICOs raised when ETH was $800 and higher from between late last year to early this year. The price was pushed further up due to demand created by regular traders who wanted to participate in the ICOs using the most efficient method of ETH. Most ICOs had the conversion rates of their ICO tokens pegged to the value of ETH making it easier for an investor to calculate his buy-in amount of the said tokens.

Now, some of these projects are cashing out to cover expenses that involve project development, operations, marketing and more. This has resulted in the concern we are now seeing of the bear market being dragged out longer than is necessary and with ETH continuing to drop in value.

Biswa Das, who runs cryptocurrency quantitative hedge fund BloomWater Capital, summarized the series of events as follows:

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Is Ethereum going to survive?

The current pressure from ICOs cashing out on their ETH has further put a load on the current crypto bear market. The total market cap has been shaky at levels around $200 Billion with each morning being a puzzle as to whether it will go lower or higher.

With respect to the continued dominance of ETH in the markets and smart contracts industry, more projects are springing up that were ironically funded through the platform. These projects of Tron (TRX) and Zilliqa (ZIL) aim at offering faster, efficient and more cheaper alternative platforms for developers to create DApps. Therefore, the rest of the year could be one of constant decline for Ethereum. As a matter of fact, some Wallstreet firms had already predicted the gradual downfall of ETH and have been shorting the digital asset.

Possible continuation of the bear market

Spencer Bogart of Blockchain Capital LLC is quoted as saying the pain might not be over in the cryptomarkets especially for ETH. ICOs will probably continue to liquidate a large percentage of the over $5 Billion they raised last year and early this year.

Perhaps this is why traders are preferring Bitcoin (BTC) over Ethereum – or any other Alts – during this bear market. What we have seen is that BTC has increased its dominance in the markets from 36% back in mid-May, to its current levels of 53.5% as investors look for a safe haven to ride out the current stormy market.

BTC has proven to be less volatile than Alts and even surpassing the Turkish Lira in terms of market stability. With lots of Wallstreet interest from CBOE and the Intercontinental Exchange with its Bakkt project, BTC might be the wisest option for traders to ride out the bear market.

To trade cryptocurrencies, sign up with BitMex or Binance!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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