Banks and other financial institutions who still refuse to recognise major cryptocurrencies, such as Bitcoin, as a legitimate asset class are putting themselves on the wrong side of history, says the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The bold observation from Nigel Green, chief executive and founder of deVere Group, comes despite the cryptocurrency market shedding more than $1 trillion in a week after all-time highs, which have prompted some financial institutions to speak out on the likes of Bitcoin.
However, the world’s largest cryptocurrency advanced as much as 19% on Monday.
Mr Green says: “Bitcoin, amongst other digital tokens, has had a hugely impressive run over the last six months, so it’s not surprising that there’s a period of consolidation and short-term correction in such a hot market.
“We can expect market turbulence of this nature to continue until it fully matures and there is even greater institutional investment.
“But if you zoom out on the charts and take a look, they show that Bitcoin and Ethereum, the two biggest cryptocurrencies, have consistently been on an upward trajectory over the longer-term – but no financial market ever moves up in a completely straight line, yet the upside direction is clear.”
He continues: “As such, I find it baffling that some banks have decided to refute the legitimacy of cryptocurrencies.
“By doing so, they are not only placing themselves on the wrong side of history, but they’re not providing clients access to the potentially significant opportunities of key digital assets that could define the future.
“Of course, cryptocurrencies are not for every client – but neither is any investment. Therefore, a refusal of one particular asset class seems somewhat peculiar.”
He goes on to say: “The blistering pace of the digitalisation of economies and our lives means that from now on there will be a growing demand for digital, global, borderless money.
“Indeed, digital currencies have already changed forever the way the world handles money, makes transactions, does business, and manages assets.
“They are becoming an integrated part of the mainstream financial system, which is evidenced by more and more Wall Street giants, social media platforms and multinationals, amongst others, becoming increasingly actively pro-crypto.
Mr Green, who has long been an advocate of cryptocurrencies, is one of the leading voices calling for greater regulatory scrutiny of the market.
Last week, he said that the U.S. Treasury Department’s new, stricter cryptocurrency rules underscore how the likes of Bitcoin are becoming increasingly mainstream.
“I believe that this is recognition by those running the world’s largest economy that cryptocurrencies, in some form or another, are the future of money. The genie can’t be put back in the bottle,” he noted.
He went on to say that he believed it could be the first significant step towards global regulation.
“It is inevitable as the market grows and matures. Proportionate regulation should be championed. It would help protect investors, shore-up the market, tackle criminality, and reduce the potential possibility of disrupting global financial stability, as well as offering a potential long-term economic boost to those countries that introduce it.”
The deVere CEO concludes: “When everything from voting to entertainment is already digital, dismissing digital currencies in a digital era as part of a properly diversified portfolio, to my mind, seems a little archaic.”
Lympo Launches NFT Staking, Enabling Users to Utilize NFTs and Receive Monthly Rewards
Lympo, the sports NFT ecosystem and a subsidiary of Animoca Brands, announced that it has launched NFT Staking, which allows users to monetize and receive rewards for locking up and delegating their NFTs issued by Lympo and their partners. Lympo’s NFT Staking will deliver additional value and utility to its community of NFT holders.
Up to this point, the Lympo NFT Minting Platform allowed users to stake LMT and partner tokens to mint sports NFTs depicting and officially licensed by top-level athletes. With the launch of NFT staking, Lympo has created a way for users to monetize their NFTs through monthly staking rewards.
Lympo’s NFT Staking will allow NFT holders to delegate or lock up their NFTs in staking pools. Users stake up to 15 NFTs together with LMT tokens and receive between 2% and 17.5% of the value staked in rewards every 30 days based on how many NFTs they stake and their rarity. The first Lympo NFT staking pool offers a total of 888,888 LMT (~$220,000) in rewards.
In the future, Lympo will partner with other NFT projects to release joint NFTs which can be staked to get double rewards in the form of two different types of tokens. Just like double reward pools on DeFi platforms, this will enable cooperation on this new Lympo GameFi product, opening new venues for additional value to NFTs.
Staking allows users to utilize their NFTs beyond collectible value and generate additional LMT that they can utilize in the Lympo NFT ecosystem. With multiple staking pools, a dynamic reward system, and community engagement events enabled through NFT staking, Lympo is pioneering new NFT staking mechanics.
Ada Jonuse, CEO of Lympo, said, “Lympo is taking big steps to bring the latest innovations into the GameFi sector. NFT Staking is one of the first methods that Lympo is using to provide additional utility to our NFTs. We have designed the process to be as fair as possible and we will be monitoring the NFT staking platform to make tweaks if necessary. Our goal is to integrate the Lympo NFTs into as many different activities and games as possible and to create a broad network of industry-wide partnerships for NFT interoperability in games and other GameFi products.”
Bitcoin Drops Over $10,000 in Value in 24 Hours
Global financial markets rout plunged Bitcoin, the world’s most dominant cryptocurrency, by $10,000 to $47,000 a coin, according to the data obtained from Coindesk.
Bitcoin was trading at slightly above $57,000 a coin on Friday before falling by 17 percent or $10,000 to $47,000 within 24 hours to further highlight the state of the global financial markets amid growing concerns over the Omicron COVID variant spread.
Ether, the second most capitalised cryptocurrency, also sheds 10.26 percent to $4,047.96 a coin while Solana, XRP, Terra (Luna), Cardano and Stellar dropped 10.19 percent, 17.54 percent, 11.96 percent, 13.95 percent and 16.74 percent to $204.67, $0.796952, $60.85, $1.40 and $0.292059, respectively.
There is no clear reason as to why bitcoin and other cryptocurrencies are falling besides rising global uncertainty surrounding the fast-spreading Omicron covid variant.
Selling pressure in the Bitcoin spot market seems to have dragged on the entire cryptocurrency before triggering huge stop losses in the derivative markets.
“The evidence points to this being yet another derivative-induced selling event,” wrote J.C. Parets, chief market strategist for All Star Charts technical research, in a note Saturday morning. “The September flash crash had the same drivers as this selloff — leverage was flushed from the system in a violent fashion, which later enabled the market to eventually move higher toward a new all-time high in October.”
Despite the uncertainty surrounding financial assets, El Salvador, the first country to accept Bitcoin as a legal tender, announced it has bought the dip. President Nayib Bukele acquired 150 Bitcoin for about $48,700 a coin.
Tether (USDT), the largest stablecoin by market value, moved away from its 1:1 peg against the US Dollar to $1.025, largely because of its usage as a hedge against market uncertainty. Traders usually move their cryptocurrency to USDT during high market uncertainty.
“Our expectation for the coming days/weeks is sideways choppy price action. A contraction and basing process is likely to take place after such a violent move and we want to treat sharp upward rallies suspiciously right now,” added Parets.
Bitcoin and Ether Will be Outperformed by Solana in 2022: deVere CEO
Cryptocurrency Solana is likely to again outperform both Bitcoin and Ethereum, the world’s two biggest digital currencies, in 2022, according to the CEO of a $12bn financial giant.
The bullish prediction from Nigel Green, chief executive and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations, comes amid another sharp bearish dip for leading cryptocurrencies on Friday.
Bitcoin, Ethereum and Solana were down around 5.7%, 6.8%, and 8.9% respectively over the previous 24 hours of trading.
Mr Green says: “End of the week trading was hit by negative sentiment of high-growth stocks, which went on to impact Bitcoin, the world’s largest cryptocurrency by market cap which, in turn, weighed on the wider crypto market.
“Despite this current volatility, crypto investors who have consistently stayed in the market have generally had a positive year. Year-to-date Bitcoin is up 46%, Ether 376%, and Solana around 13,000%.
“Savvy investors – both retail and institutional – know that crypto is the future of money. In times of volatility, in which there are lower entry points to top up portfolios, they typically continue to drip-feed money into the digital assets market.”
He continues: “I’m confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap. It started off the year trading at around $2, now it’s changing hands on the deVere Crypto app for about $200.
“It’s likely it will outperform both Bitcoin and Ethereum again next year.
“Why? Because of its masterful technology and its cost-effectiveness.”
Mr Green explains: “Solana is a blockchain platform that has superior high transaction speeds, processing over 2,500 transactions per second – main rival Ether’s is 15 – and at a lower cost and without compromising decentralisation.
“Like Ether, it supports smart contracts, which are algorithms that are designed to operate automatically based on predefined agreements on blockchain technology.
“This revolutionary tech will ultimately change the way almost all business and financial services are delivered in the future. As such, a growing number of decentralized finance (DeFi) applications are moving to Solana.
“They’re also attracted by the considerably cheaper fees compared to Ether, whose prices have exploded in recent months.”
In September, the Solana network went down for about 17 hours. At the time, on Twitter, Solana explained a large jump in transaction load to 400,000 per second overwhelmed the network.
“It’s a young network still and this was just a temporary glitch,” comments Nigel Green.
He concludes: “In-the-know investors are watching it with interest.
“There’s no reason why it shouldn’t again outperform headline grabbers Bitcoin and Ethereum next year if the current momentum continues.
“It’s a momentum driven by a booming DeFi space as retail investors seek alternative funding opportunities and institutional investors continue to pile in.
“2022 will be Solana’s breakout year.”
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