On Friday (25), the largest cryptocurrencies by market cap continue the gains of the previous session, while altcoins slam on the brakes. Bitcoin (BTC) is up 2.7% over the past 24 hours at $44,089, according to data from CoinGecko. Ethereum (ETH) is up 3.1% to trade at $3,135. In Brazil, Bitcoin advances 2.1% to R$213,566, according to the Bitcoin Portal Index (IPB). Most cryptocurrencies saw gains on Thursday in reaction to news that Russia could accept countries like China and Turkey to pay for oil and other natural resources with Bitcoin and other currencies. The possibility was raised by Pavel Zavalny, chairman of the Energy Committee of the Duma (lower house of the Russian Parliament), during a press conference. Cardano is down 0.8% after jumping 19% on Thursday with the announcement that Coinbase is offering to stake the token. Dogecoin trades down 3.7% after rising double digits on news that Bitcoin of America added the token to its cryptocurrency ATMs. Among other cryptocurrencies, Friday is one of gains and losses: Binance Coin up +0.8%, XRP (+0.4%), Avalanche (+0.4%), Earth (-1.8%) %), Solana (+4.1%), Polkadot (+1%) and Shiba Inu (-0.9%). This week, two announcements showed the appetite of institutional investors. Goldman Sachs unveiled its first over-the-counter cryptocurrency options trading, while investment bank Cowen launched a digital assets division to offer virtual currency trading and custody solutions. In seven days, Bitcoin has gained 7.6%, while Ethereum has gained 11.5%, data from CoinGecko shows. But some market watchers say the prevailing narrative is the battle between long-term and short-term investors. Long-term traders have been entering the market during downturns, while short-term traders have taken advantage of rallies to sell. With that, Bitcoin doesn’t take off, Noelle Acheson, head of market insights at Genesis Global Trading, said in an interview with Bloomberg.
At a meeting with European leaders in Brussels on Thursday, US President Joe Biden mentioned the possibility of excluding Russia from the G20, according to the New York Times. The US president also said he will donate $1 billion to help Ukrainian refugees and welcome 100,000 immigrants from Ukraine. In an interview with CoinDesk, Michael Chobanian, founder of Ukrainian cryptocurrency exchange Kuna, said that the European Union should investigate whether Binance is “cooperating” with the Russian government to evade sanctions. When asked if he has evidence for his claims, Chobanian said: “Of course we don’t have evidence as it’s a ‘closed box’.”
Risks of airdrops: Token distribution has proven “a very effective tool for building community and ‘momentum’ around a project,” according to analysis by crypto trading data firm Kaiko. “However, airdrops are not risk-free,” the company highlights, with token prices rising in the short term followed by a steady decline. In the case of ApeCoin, the amount in circulation will increase at regular intervals over a 48-month period, which raises the risk of diluting the value of previously distributed tokens, Bloomberg highlights. Mining gas: An Exxon Mobil pilot program is diverting surplus natural gas that would otherwise be flared (a practice known as “flaring”) from North Dakota oil wells to cryptocurrency mining operations. The oil company is also studying applying the method in Alaska, Nigeria, Argentina, Guyana and Germany, sources told Bloomberg. The pilot project, launched in January 2021 and expanded in July, is partnered with Crusoe Energy Systems. Exxon declined to comment on “rumors and speculation about the pilot project”. Crypto investor profile: Young people make up the majority of cryptocurrency investors, according to data collected by cryptobank Monnos. The platform has more than 45,000 users, spread across 118 countries – among these, 67% are between the ages of 18 and 25. At B3, for example, younger investors, between 16 and 25 years old, account for only 12% of the CPFs on the Brazilian stock exchange, according to Estadão.
Regulation, Security and CBDCs
Challenges of regulation in Brazil: Valor Econômico, in partnership with the Bitcoin Market, promoted the Digital Currencies Regulation Forum on Thursday. For Edison Fernandes, lawyer and professor at FGV Law – SP, the need for State intervention to ensure transactions with digital assets requires the regulation of this market, with constant observance of governance rules and relationships with the various stakeholders. open finance: The National Monetary Council approved on Thursday the official launch of the open finance project, a new nomenclature for what until then was being addressed mainly by the term open banking. According to the Central Bank, the change reinforces that the Brazilian model of an open financial system will encompass not only traditional banking products, but also financial services such as foreign exchange, insurance and pensions, Exame reported. fake accounts: Taking advantage of frequent database exposures, hackers created 500,000 fake accounts with leaked emails in Brazil in 2021, the year in which the country recorded 3.7 online fraud attempts per minute, according to a study prepared by AllowMe. Loyalty programs, traditional banking institutions, fintechs, online rating systems and cryptocurrencies, in that order, were the segments most affected by malicious transaction threats, shows a study published by Folhapress. BoE eyeing crypto: The Bank of England has begun drafting the UK’s first regulatory macro for crypto assets, according to Reuters. Although the sector is still small, points out the British central bank, its rapid growth could pose risks to financial stability in the future if it is not regulated, according to a statement published on Thursday (24).
Metaverse, Games and NFTs
profitable launch: Lumx Studios, a Brazilian startup specialized in metaverse and NFTs, earned BRL 2 million in 24 hours after the launch of 55Unity, a collection in RPG game format that brings together more than 3,000 tokens launched in February, according to Forbes. Crypto Ambassador: Former soccer player David Beckham has been named global brand ambassador for the DigitalBits Blockchain, an open source blockchain on which any asset can be tokenized, including non-fungible tokens, sports teams and other brands. Beckham will launch a series of NFTs and digital assets based on DigitalBits, reports CoinDesk. Fashion Week in the metaverse: Brands like Forever 21, DKNY and Estée Lauder joined the first “Metaverse Fashion Week”, which started on Thursday and runs through Sunday at Decentraland. “This sends a signal that virtual fashion is here to stay and will continue to be of interest to brands,” said Cathy Hackl, president of Metaverse Fashion Week, in an interview with the Wall Street Journal.