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Traders began discarding tokenized bitcoins. The US Treasury Department will keep a watchful eye on digital innovations. And the trading volumes on OKEx plummeted.
Upper shelf
Forced burn
David Schwartz, Ripple’s Chief Technology Officer, tweeted that the community could force the community to burn billions of protocol XRP native tokens held as collateral to prevent the price drop that would likely occur if those billion frozen tokens invade the market. On December 2, a Twitter user asked the CTO: “If nodes, validators and the community at large came together and we agree that it is better for the community to burn the 50 billion XRP that Ripple has as collateral, it would be possible? ” Responding to the tweet, David Schwartz hinted that majority rule would win in such a decision.
Innovation or risk?
The US Treasury Department wants state and federal regulators to keep an eye on digital asset innovation, which could upset the balance of the current financial system. According to a report released Thursday by the Financial Stability Oversight Council, digital assets are a “particularly good example” of both the benefits and potential risks associated with innovation. The report highlighted the ambitions of nations around the world in their experiments with central bank digital currencies (CBDCs) as a way to “improve the global position of their currencies and enable faster payments.”
Related: Money Reinvented: Bitcoin vs. Gold is a battle of narratives
WBCT not packaged
Wrapped bitcoin, the bitcoin-backed token on Ethereum that is now worth over $ 2 billion, has seen an increase in burns (or “discards”) from some of its largest users as the Ethereum-based decentralized financial sector continues to cool . BitGo clients, including Three Arrows Capital and Alameda Research, are trading an increasing amount of their tokenized bitcoins minted earlier this year for real bitcoins as the bull market in cryptocurrencies continues to focus on bitcoin and decentralized finance. Ethereum for now takes a back seat. In the months following DeFi’s scorching summer, when bitcoins were wrapped faster than they were mined, the sector cooled significantly.
Not well
A sharp decline in OKEx’s trading volume and stablecoin reserves – especially tether – could reveal an ongoing exodus of its users after the popular crypto derivatives exchange unexpectedly stopped all cryptocurrency withdrawal activities for around five weeks. Data from CryptoQuant analytics service shows that the amount of tether held in OKEx wallets fell to 6.69 million from 275.0 million between November 25 and December 1, down 97.6% in less than a week . At the same time, the total daily trading volume on OKEx decreased significantly during the same time period, down about 67.7% since November 25, according to data compiled by CoinDesk. The volume of tether traded on OKEx plummeted by 70%.
Mirror mirror
The creators of the stablecoin Terra platform announced Thursday the launch of the Mirror protocol, a way to mint crypto assets that mimic the share value of publicly traded companies like Apple or Tesla. The new protocol will also bring a new liquidity mining opportunity to Terra’s Tendermint-based blockchain. Known as mAssets, these tokens will track the price of US shares in the real stock market, using an Oracle system that can check prices every six minutes. “The retail investor is at the heart of this growing demand for US equities and global equity derivatives. The stock market is no longer the exclusive domain of Wall Street clothes, whether in New York, London or Tokyo, ”says Arrington XRP in his report.
Quick bites
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FINTECH BANKING: Stripe partners with Goldman, Citigroup and others to offer current accounts, services: reports (CoinDesk)
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BITCOIN BUNCH: This family bet everything on bitcoin when it cost $ 900 and bought more when it crashed in 2018 (CNBC)
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DEFINE DEFI: Lex Sokolin: How do you rate open source software? DeFi’s recent acquisitions could shed some light. (CoinDesk opinion)
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NOT CAPTCHA’D: Human Protocol, the backbone of the hCaptcha anti-bot system, announced Thursday that it will expand beyond Ethereum to a future Polkadot parachain, Moonbeam. (CoinDesk)
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OMG, RALLY! Genesis Block Ventures acquired OMG Network (an off-chain Ethereum solution) triggering a double-digit rally in the network’s OMG token. (CoinDesk)
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CENTRALIZED CBDC: The Russian crypto community fears that the digital ruble could mean going back “to the USSR”. (CoinDesk)
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$ 41 BILLION: Decentralized financial platforms were responsible for 99% of Ethereum’s transaction volume last month. (Decrypt)
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$ 600 MILLION: One million ETH is now locked in Ethereum 2.0. (Decrypt)
At stake
Price point!
I was reading that CNBC story about the Dutch family who bet everything on bitcoin. In 2017, a small business owner sold all of his assets – business, home, and accumulated debris – and moved his family of five into a van. “We got into bitcoin because we wanted to change our lives,” Didi Taihuttu told CNBC.
Related: First engine: Bitcoin under $ 19K and customers flee OKEx
It’s wild! The media also cited Taihuttu’s price prediction for a $ 200,000 bitcoin by 2022. He is a man who acts on instinct and knows things by his instincts. It seems to have worked for him so far. CNBC went on to cite several price predictions from respected and reputable people in cryptocurrency.
Mike Novogratz, CEO of the Galaxy Digital investment bank, allegedly said that bitcoin could hit $ 60,000 within the next year. While a Citibank report aimed at institutional clients claimed that a BTC could change hands for $ 318,000 by December 2021. That’s insane!
Unlisted was Bloomberg’s recent and more modest prediction that bitcoin could hit $ 50,000 in the next year. That’s more than double the price of bitcoin’s all-time high! And it deducts a market cap of $ 1 trillion!
A lot of good data is put into price predictions. There is a technical analysis of candles and wedges, there are surveys of high-net individuals and comparisons with similar movements in both historical bitcoin charts and analog assets. (Want to understand bitcoin today? Study gold in the 1970s!)
But I wouldn’t put much into account. This time three years ago, computer wizard and self-proclaimed madman John McAfee had such strong beliefs that bitcoin would hit $ 500,000 within three years (this year, by the way) it would ingest his genitals.
After years of target prices that were far from their mark, it is reasonable to suggest that most claims about bitcoin’s future price are more instinctive than analysis, more bets than insured. Sometimes it pays. But understanding that a BTC is always a BTC, you will never go wrong.
