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Global Uncertainty, Hacker Plunge Bitcoin on Thursday

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Bitcoin Price Plunges to $9,050 on Growing Uncertainty

The world’s most dominant cryptocurrency Bitcoin declined to $9,050 on Thursday after failing to break the $10,000 resistant level.

The coin plunged from $9962 on Thursday to $9,050 a coin before retracing on Friday during the Asian trading session to $9,486 as of 1:00 pm Nigerian time.

This was after the Federal Reserve said the economy may take several years to recover from the COVID-19 pandemic downturn despite the huge stimulus being pumped into the economy by Donald Trump. The unexpected comments led to a huge selloff in the US stock market and weighed on other global assets as investors remain apprehensive amid rising global uncertainty.

“A switch to ‘risk-off’ in global markets could lead to further downside pressure for major cryptocurrencies,” said Matthew Dibb, co-founder of Stack, a provider of cryptocurrency trackers and index funds.

The drop was coming after several Bitcoin focused media have reported a substantial increase in the coin acquisition by large buyers within the crypto ecosystem, known as whales.

As predicted by Investors King on Thursday, the activity of the Whales would help establish strong support for the coin above $9,000 level but not enough to open up a $10,519 key resistance level. BTCUSDDaily 3Capital inflow from outside investors or funds from institutional investors is needed to support price above the current level through $10,519.

This may not happen in the near-term given global risk and also cryptocurrency exposure to hackers. On Thursday, 400 BTC estimated at about $4.1 million stolen from Bitfinex, a cryptocurrency exchange, in 2019 was moved to an unknown address, according to a twitter bot Whale Alert.

While another big transaction estimated at about $1.5 billion was performed by an unknown wallet on Tuesday. A combination of all these is fueling a notion that whales might be preparing to dump their holdings and plunge the digital currency below the current level.

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.

Cryptocurrency

Nigeria’s Securities and Exchange Commission Moves to Regulate Cryptocurrencies

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SEC Says Cryptocurrencies Are Assets Under its regulatory Jurisdiction

Nigeria’s Securities and Exchange Commission (SEC) said it will start regulating to unregulated digit assets like Bitcoin and other cryptocurrencies.

The Commission made the statement on Monday in a publication released on its website.

It said the objective is not to hinder technology or stifle innovation but to create standards that encourage ethical practices and protect both investors and businesses offering digital assets as an investment vehicle.

The statement reads, “Since digital assets offerings provide alternative investment opportunities for the investing public, it is essential to ensure that these offerings operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency.”

SEC said it has been conferred powers by section 13 of the Investment and Securities Act, 2007 to regulate investments and securities business in Nigeria.

It, therefore, stated that in line with these provisions, it has adopted a three-pronged objective to regulate market innovation, foster investment safety, deepen market provisions and provide solutions to investment problems.

It said, “Section 13 of the Investment and Securities Act, 2007 conferred powers on the commission as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria.

“In line with these powers, the SEC has adopted a three-pronged objective to regulate innovation, hinged on safety, market deepening and providing solution to problems. This will guide its strategy, its regulations and its interaction with innovators seeking legitimacy and relevance.

“Consequently, the SEC will regulate crypto-token or crypto-coin investments when the character of the investments qualifies as securities transactions.”

Accordingly, the commission explained that virtual assets are securities unless proven otherwise.

It said, “Issuers or sponsors are expected to satisfy the burden of proving that the virtual assets do not constitute securities by making an initial assessment filing.

“However, where the finding of the commission is that the virtual assets are indeed securities (not structured to be exclusively offered through crowdfunding portals or other exempt methods), then the issuer or sponsor must register the digital assets.

“The registration process for virtual assets will therefore involve a two-prong approach – an initial assessment filing to satisfy the burden of proof and a filing for registration proper, either made directly by the issuer or sponsor or where the burden of proof is not satisfied.

“Similarly, all digital assets token offering, initial coin offerings, security token ICOs and other Blockchain-based offers of digital assets within Nigeria or by Nigerian issuers or sponsors or foreign issuers targeting Nigerian investors, shall be subject to the regulation of the commission.”

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Paxful Expands Beyond Bitcoin, Adds Tether (USDT) to its Platform

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Global peer-to-peer bitcoin marketplace, Paxful, announced today the addition of Tether (USDT) to its platform. USDT belongs to a class of cryptocurrencies known as stablecoins.

A stablecoin is a type of cryptocurrency whose value reflects an existing fiat currency (e.g. US Dollars). The inclusion of USDT, the world’s largest stablecoin by market value, will assist users in combating a volatile market, protecting their assets, and expanding their portfolio.

The industry has seen a surging demand for a stable digital currency amidst fears of an economic recession in both traditional and digital markets. In the last 12 months, Tether has established itself as a champion amongst stablecoins, with a market capitalization of over $13 billion (https://bit.ly/3kdjoHk).

“We consider this a big step for us since this is the first cryptocurrency other than bitcoin we have on the platform,” said Ray Youssef, CEO, and co-founder of Paxful. “We always listen to our customers. We understand that some come to Paxful for wealth generation and turn to crypto for stability when their national currency is affected by inflation. We hope that this can aid them to be more in control of their finances.”

The addition comes with a hedging option, allowing users to instantly convert BTC to USDT and vice versa, helping the users protect their funds during bitcoin price fluctuations.

The company also plans to enable USDT trading on the platform. Same as with the bitcoin (BTC) trading in the Paxful marketplace, users can buy and sell USDT with over 300 payment methods. The USDT balance is accessible via the wallet page, where the current market price for both coins is displayed. The launch of this feature marks Paxful’s first step towards potentially adding new cryptocurrencies in the future.

The company recently announced that the platform Paxful has hit 4.5 million registered wallets, reached 4.6 billion USD in trading volume, and reduced dispute levels to under 1%. Since inception, they have added 1 million users per year and so far in 2020 and are on track to sign up an additional 2 million users by the end of the year.

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Bitcoin to Replace Gold as Top Safe-haven Asset Within a Generation

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Bitcoin will replace gold as the ultimate financial safe haven within a generation, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The prediction from Nigel Green, chief executive and founder of deVere Group, comes as growing geopolitical uncertainty, including Brexit and the U.S. presidential election, and central banks’ historic money printing policies, amongst other issues, are prompting many investors to urgently rebalance their portfolios.

He comments: “For thousands of years, gold has been the ultimate financial safe haven.

“It’s always been the go-to asset in times of political, social and economic uncertainty as it is expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.

“Moving forward, older investors are likely to continue with gold, but millennials and Generation Z, who are so-called ‘digital natives’, can be expected to go for Bitcoin and other digital currencies instead.

“I believe that the precious metal will lose its crown as the most sought-after reserve asset to Bitcoin within a generation – particularly because the biggest-ever generational transfer of wealth – likely to be more than $60tn – from baby boomers to millennials is already underway.”

Mr Green continues: “Bitcoin’s key characteristics, such as its fixed supply and how transactions are immutable, distributed, non-sovereign and decentralised are highly attractive for investors in an uncertain but increasingly digitalised, tech-driven world.

“It has already earned it the label ‘digital gold’ and I believe its status in this regard will grow exponentially over the next year or two, especially with the economic fallout from Covid, central banks’ record-shattering levels of money-printing, heightening trade tensions between economic superpowers, and mounting social and political unrest.”

The deVere CEO concludes: “Until now, gold has been known as the ultimate safe-haven asset, but Bitcoin — which shares its key characteristics of being a store of value and scarcity — will take over.

“As the world turns ever-more digital and is more and more financially dominated by those who have grown up surrounded by technology, from an investment point of view, gold will increasingly be seen as a relic of the past.”

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