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Elon Musk Backed DogeCoin Dropped by 40 Percent Amid Controversies

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Elon Musk Backed DogeCoin Dropped by 40 Percent Amid Controversies

Dogecoin dropped by 40 percent from the recent high following a series of controversies.

Changpeng Zhao, Binance CEO, had said more than 50 percent of Dogecoin was being held by just 20 wallets with one of those addresses having 27 percent of Dogecoin available coins.

This was further confirmed by hawkeye, a Reddit user, who managed to identified a particular wallet that had more than $2 billion worth of DogeCoin. Also, several large buying transactions were observed on the account in recent weeks.

The revelation created uncertainties about the future of Dogecoin, especially among smallholders who immediately became scared that these majority owners could disrupt the coin if they decide to dump a lot of their holdings into the market.

Billionaire Elon Musk who has been supporting the coin in recent weeks, on Sunday said the real issue is major holders. He, therefore, said until major holders sell their coins or holdings he will not support the coin.

In the tweet put out on Sunday Musk said ” If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO.”

This coupled with the February 11th article by Coindesk that it was easy to attack Dogecoin and cheat its network to print new coins also contributed to the recent plunge in the value of the coin.

Even though Dogecoin refuted the claim and tagged it false, the management is yet to provide a solid response to allay investors’ fear regarding recent controversies.

DogeCoin’s market value dropped by 16.15 percent to $6.9 billion on Monday morning. While volume traded surged by 83.73 percent in the last 24 hours to $4.77 billion, largely by those looking to sell their holdings of the coin.

DogeCoin presently trading at $0.054 per coin, down from $0.08 it exchanged about a week ago.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Bitcoin

MicroStrategy Dumps Over $1 Billion on Bitcoin, Now Holds $4.78 Billion BTC

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Bitcoin

MicroStrategy Dumps Over $1 Billion on Bitcoin, Now Holds $4.78 Billion BTC

MicroStrategy, a business intelligence firm, announced it has purchased another 19,452 Bitcoin worth $1.026 billion.

The company joined Square and other companies that bought the dip witnessed earlier this week after Elon Musk, Bill Gates and Janet Yellen commented on the fast-rising digital currency.

MicroStrategy now holds 90,531 Bitcoin worth $4.78 billion, more than Elon Musk’s Tesla acquisition of $1.5 billion.

Michael Saylor, the Chief Executive Officer (CEO), MicroStrategy continues to pursue a coin acquisition strategy now codified in the business intelligence company’s mission.

Square purchased 3,318 Bitcoin at an estimated $170 million value on Tuesday when the world’s most dominant cryptocurrency dipped to $45,000 before rebounding to the current level.

Bitcoin presently trading at $49.233.71 per coin as of the time of writing.

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Cryptocurrency

CBN, SEC Anchor Cryptocurrency Ban on Financial System Protection

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CBN, SEC Anchor Cryptocurrency Ban on Financial System Protection

The Central Bank Governor, Mr Godwin Emefiele, on Tuesday said the bank’s decision to prohibit deposit money banks, non-banking institutions and other financial institutions from facilitating trading and dealings in cryptocurrency was in the best interest of Nigerian depositors and the country’s financial system.

Emefiele said this while briefing a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime; and Capital Market, on its directive to institutions under its regulation.

These were according to a statement from CBN titled ‘Cryptocurrency: We acted in Nigerians’ best interest – Emefiele’.

Describing the operations of cryptocurrencies as dangerous and opaque, the CBN governor said the use of cryptocurrency contravened an existing law.

He said the fact that cryptocurrencies were issued by unregulated and unlicensed entities made it contrary to the mandate of the bank, as enshrined in the CBN Act (2007) declaring the bank as the issuer of legal tender in Nigeria.

Emefiele, who also differentiated between digital currencies, which central banks could issue and cryptocurrencies issued by unknown and unregulated entities, stressed that the anonymity, obscurity and concealment of cryptocurrencies made it suitable for those who indulge in illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.

Citing instances of investigated criminal activities that had been linked to cryptocurrencies, he stated that the legitimacy of money and the safety of Nigeria’s financial system was central to the mandate of the CBN.

He declared that cryptocurrency was not legitimate money because it was not created or backed by any central bank.

“Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system,” he said.

Also speaking, the Director-General, the Securities and Exchange Commission, Mr Lamido Yuguda, clarified that there was no policy contradiction between the CBN directive and the pronouncements made by the SEC on the subject of cryptocurrencies in Nigeria.

He explained that the SEC made its pronouncement at the time to provide regulatory certainty within the digital asset space due to the growing volume of reported flaws.

Prior to the CBN directive, he said, the SEC had in 2017 cautioned the public on the risks involved in investing in digital and cryptocurrency.

He said that the CBN, the Nigeria Deposit Insurance Corporation and the SEC had between 2018 and 2020 issued warnings on the lack of protection in investments in cryptocurrency.

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Cryptocurrency

Demand for Crypto Debit Cards Surges 194% in 12 Months

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Demand for Crypto Debit Cards Surges 194% in 12 Months

Data presented by Crypto Parrot indicates that global interest in the keyword ‘crypto debit card’ has surged by 194.1% over the last 12 months on the Google Search platform. The interest attained a peak popularity score of 100 in February 2021 while a year ago it was at 34.

Among countries, Nigeria leads with a peak popularity score of 100 followed by Australia at 45. The Netherlands ranks third with a score of 44 followed by Canada at 40 while the United States comes in fifth at 39.

Interest from the United Kingdom ranks sixth with a score of 36 followed by India at 15 while Germany is eighth with a score of 12.

Entry of payment companies into crypto fuels interest

Several factors have led to the strong interest in crypto debit cards mainly due to the increased adoption of digital assets. The report highlights other drivers for the interest. According to the research report:

“Furthermore, there has been an explosion of companies like Visa and Mastercard getting involved in crypto payment systems through debit cards. At the same time, more merchants are increasingly adding digital currencies to payment methods. It is, therefore, logical that people would be interested in acquiring crypto debit cards.”

Being a new financial phenomenon, crypto debit cards might face regulatory hurdles from non-crypto friendly jurisdictions.

In general, the crypto debit cards are helping holders get involved in the digital assets’ space while bridging the gap between the digital asset world and traditional finance space.

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