Cryptocurrency

Over 3,500 New Cryptocurrencies Emerged in the Last 12 Months Amid Bullish 2020

Published

3 years ago

March 10, 2021

As the cryptocurrency sector matures, new digital assets are emerging to leverage blockchain technology’s diverse uses. With the industry mostly bullish over the last 12 months, newly created cryptocurrencies have spiked significantly.

Data presented by Crypto Parrot indicates that there were 3,531 new cryptocurrencies added to the Coinmarketcap.com database between March 2020 and March 2021. The number represents a growth of 67.94% from March last year when the figure stood at 5,197.

As of March 2019, the number of cryptocurrencies was 2,106, a growth of 35.17% from 2018’s 1,558. In March 2017, there were 649 digital assets to represent a growth of 1,244.83% over the last five years compared to the current total of 8,728 assets.

Main factors behind the surge in new cryptocurrencies

The significant growth of newly created digital assets in the last 12 months correlated with a period when the cryptocurrency sector was mostly bullish. Across 2020, the traditional market crashed to historical lows but later recovered, with the cryptocurrency sector remaining resilient, led by Bitcoin.

Additionally, the bullish trend was inspired by the entry of institutions into the sector. The investment potentially means that cryptocurrencies are on the path to mainstream adoption. This potential for mass adoption might have inspired the creation of new assets.

At the same time, Bitcoin hit the new all-time highs. The bullish trend meant that cryptocurrencies were gaining traction and therefore held the potential for massive returns; hence new projects entered the ecosystem.

The value gained by assets like Bitcoin over the years is an inspiration for new projects that seek to ride on the wave with the hope of maximum returns. Unfortunately, the emergence of some new cryptocurrencies during a bullish rally has turned out to be scams aiming to profit illegally.

Decentralized Finance (DeFi) boom

Over the last 12 months, the increased adoption of cryptocurrencies ushered in a Decentralized Finance (DeFi) boom. DeFi projects emerged leveraging the blockchain technology geared towards disrupting the traditional finance sector. Typically, a new DeFi project comes with its native currency upon which network transactions are based. The more the DeFi projects, the more assets enter the market.

Notably, the majority of DeFi projects are built on host platforms like Ethereum. The ease of a readily available host makes it more convenient for new tokens to launch since they save resources. Similarly, the rise of Initial Coin Offering in 2017 resulted in the significant growth of new assets as of March 2018.

Crypto forks and the emergence of new assets

Cryptocurrency forks have also potentially contributed to the emergence of new digital assets. Although crypto splitting scenarios were not common over the last 12 months, they contributed to the emergence of new assets in the previous years.

Historically, Bitcoin forks have led to the creation of at least four cryptocurrencies. On the other hand, forked cryptocurrencies are also responsible for new assets. For example, Zcash led to Zclassic (ZCL), and then a twin fork between ZCL and Bitcoin led to Bitcoin Private in 2018.

With new cryptocurrencies launching, the focus is now on their role in advancing the financial world. While some digital assets are created as speculative tools, others focus on mainstream adoption and seek solutions for real-world problems. However, only cryptocurrencies with a strong use case will potentially survive.

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Cryptocurrency

SEC Director General Lauds KuCoin’s Action, Urges Compliance with National Guidelines

Published

1 day ago

May 17, 2024

Samed Olukoya

The Securities and Exchange Commission (SEC) Director General, Dr. Emomotimi Agama, has commended KuCoin, a prominent cryptocurrency exchange platform, for its proactive measures to delist the Nigerian naira (NGN) from its trading options.

This move aligns with recent directives aimed at safeguarding the nation’s economic interests and combating illicit financial activities.

In an official statement released by the SEC on Thursday, Dr. Agama expressed satisfaction with KuCoin’s decision to suspend peer-to-peer (P2P) transactions involving the Nigerian currency.

This decision comes as part of KuCoin’s ongoing efforts to adjust its platform to comply with regulatory directives issued by the Office of the National Security Adviser and the SEC.

The SEC’s stance underscores a broader initiative by Nigerian authorities to address concerns related to foreign exchange manipulation and safeguard the integrity of the nation’s financial system.

Dr. Agama emphasized the importance of adherence to established guidelines, emphasizing that regulatory compliance is essential for maintaining national security and economic stability.

The delisting of the naira by KuCoin follows similar actions taken by other cryptocurrency exchanges, including Binance, in response to regulatory scrutiny from Nigerian authorities. These measures signal a concerted effort within the crypto industry to cooperate with regulatory agencies and promote responsible trading practices.

Peer-to-peer cryptocurrency trading platforms have come under increased scrutiny due to their potential for facilitating illicit financial activities, including money laundering and fraud. By delisting the naira and suspending related trading activities, KuCoin demonstrates its commitment to upholding regulatory standards and fostering a secure trading environment for users.

Dr. Agama reiterated the SEC’s commitment to collaborating with stakeholders, including the Economic and Financial Crimes Commission (EFCC), to address challenges within the cryptocurrency space and combat financial crimes effectively.

He emphasized the importance of regulatory cooperation in tackling illicit trading practices and maintaining investor confidence in the market.

Furthermore, Dr. Agama highlighted the SEC’s ongoing efforts to implement the Revised Capital Market Master Plan, aimed at enhancing the resilience and competitiveness of Nigeria’s capital market.

He highlighted the potential of the capital market to drive economic growth and attract foreign investment, emphasizing the need for regulatory measures to protect investors and promote market integrity.

In response to Dr. Agama’s comments, the EFCC Chairman, Ola Olukoyede, reaffirmed the Commission’s commitment to combatting financial crimes and emphasized the importance of regulatory collaboration in addressing emerging challenges.

He commended the SEC’s efforts to enforce regulatory compliance within the cryptocurrency sector and pledged the EFCC’s support in safeguarding Nigeria’s financial interests.

Cryptocurrency

KuCoin Announces Temporary Pause on NGN Services to Prioritize Compliance

Published

3 days ago

May 15, 2024

Samed Olukoya

KuCoin, one of the leading cryptocurrency exchanges globally, has announced a temporary pause on its P2P Nigerian Naira (NGN) services and Fast Buy service via Naira cards.

This move, set to commence from 2024-05-15 08:00 (UTC), aims to prioritize compliance measures within the platform.

In a message addressed to its valued users, KuCoin expressed its dedication to providing a robust and secure trading environment.

The temporary suspension of NGN services is part of the exchange’s commitment to accelerating the compliance process.

During this period, ongoing orders will be completed normally, and all other services on the platform will remain available.

KuCoin assured its users that their assets are safe and secure on the exchange. While acknowledging that adjustments might be required in trading preferences, KuCoin explained that this decision is a step toward enhancing the overall trading experience for its users.

The exchange reiterated its focus on compliance and creating a secure environment for all users. KuCoin aims to resolve the compliance-related matters swiftly and efficiently to ensure a seamless transition back to full functionality of NGN services.

The decision to temporarily suspend NGN services underscores KuCoin’s proactive approach to regulatory compliance, reflecting its commitment to maintaining transparency and trust within the cryptocurrency ecosystem.

KuCoin expressed gratitude for the understanding and cooperation of its users during this period of change.

Cryptocurrency

Crypto Exchange Giant Coinbase Grinds to a Halt in System Meltdown

Published

4 days ago

May 14, 2024

Samed Olukoya

One of the world’s largest cryptocurrency exchanges, Coinbase, has been plunged into chaos as it experienced a catastrophic system-wide outage, leaving traders and investors stranded and unable to access their accounts.

The disruption, which commenced at 4:15 am UTC on May 14, has rendered both the desktop and mobile platforms of Coinbase completely unusable.

Users attempting to access the exchange are greeted with a frustrating “503 Service Temporarily Unavailable” error message, indicative of the severity of the situation.

Coinbase, known for its reliability and user-friendly interface, has been a cornerstone of the cryptocurrency market for years.

However, this unprecedented outage has shaken the confidence of countless traders who rely on the platform for their daily transactions and investments.

Coinbase swiftly notified its user base of the issue through its official status page, acknowledging the severity of the problem and assuring customers that their funds remain secure.

The exchange’s support team took to social media to disseminate updates, pledging to investigate the issue and work tirelessly to find a resolution.

This isn’t the first time Coinbase has faced technical difficulties during periods of heightened market activity.

Just months prior, on February 28, the exchange experienced temporary outages alongside several other platforms amidst a frenzy of trading activity during a Bitcoin flash crash. Such incidents highlight the strain that surges in traffic can place on even the most robust of systems.

While outages like these are undeniably frustrating for users, they often spark speculation within the crypto community.

Some enthusiasts view these disruptions as a bullish sign, interpreting the influx of traffic and subsequent downtime as indicators of growing interest and adoption in the cryptocurrency space.