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Nigerian Regulator Warns Against Investing in Meme Coin Linked to Davido

Nigerian Regulator Warns Against Investing in Meme Coin Linked to DavidoThe Nigerian securities regulator warned residents against investing in a meme coin linked to singer and celebrity Davido. The regulator described the meme coin as a highly risky investment, saying investors who invest in it do so at their own risk. The Commission will continue to monitor the ecosystem and will exercise its authority if […]

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Report: Kraken Considers IPO Amid Renewed Investor Interest

Report: Kraken Considers IPO Amid Renewed Investor InterestKraken, one of the oldest cryptocurrency exchanges, is considering a final funding round ahead of a possible initial public offering (IPO) as soon as next year, according to Bloomberg. This move follows renewed interest from investors during the current digital-asset market rally and a perceived easing of U.S. regulatory scrutiny. Kraken Eyes IPO Bloomberg sources […]

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40% of American Investors Expect Crypto To Be Part of Their Future Portfolio, According to Grayscale Poll

40% of American Investors Expect Crypto To Be Part of Their Future Portfolio, According to Grayscale Poll

A new poll by crypto asset manager Grayscale finds that 40% of American investors anticipate adding digital assets to their investment portfolios in the future. In a survey titled “2024 Election: The Role of Crypto,” Grayscale found that the collapse of crypto exchange FTX had hindered the growth of the digital assets industry, but the trend […]

The post 40% of American Investors Expect Crypto To Be Part of Their Future Portfolio, According to Grayscale Poll appeared first on The Daily Hodl.

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What is market manipulation in cryptocurrency?

Market manipulation in cryptocurrency involves artificially influencing prices or trading volume to deceive investors.

Market manipulation in the crypto sphere, explained

In the cryptocurrency space, market manipulation refers to the deliberate use of different deceptive strategies to artificially inflate or deflate the price of cryptocurrencies. 

One of the signs of market manipulation includes sudden, unusual price increases or decreases that have nothing to do with important news or trends.

Moreover, persistent anomalies in the market or opaque trading methods may indicate manipulative activity, raising doubts about the market’s integrity among investors and authorities. Also, pump-and-dump schemes are prevalent in the crypto sphere, where a group deliberately inflates the price of a cryptocurrency by disseminating false information to entice buyers, who subsequently sell their holdings at a profit. 

Additionally, whale manipulation is a market manipulation technique used by large holders, or whales, to purposefully buy or sell huge sums of a cryptocurrency to manipulate its price. Moreover, spoofing — the practice of placing huge buy or sell orders and then canceling them before they are executed to simulate a false sense of market demand — aims to manipulate the crypto market. 

Crypto markets are also impacted by insider trading, which is the practice of people making trades based on secret knowledge.

Read more

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Web3 gaming investors more ‘choosy’ in crypto winter — Animoca’s Robby Yung

Animoca Brands CEO Robby Yung says investors have been more discerning when allocating capital to Web3 gaming projects during crypto winter.

Investing in Web3 gaming has required a greater level of due diligence through a testing cryptocurrency bear market, according to Animoca Brands CEO Robby Yung.

Yung, who is also co-founder of popular Metaverse platform The Sandbox, highlighted more robust check-boxes when considering Web3 gaming investments while speaking at the European Blockchain Convention in Barcelona.

Related: Animoca still bullish on blockchain games, awaits license for metaverse fund

The Animoca Brands CEO said that investment propositions involve finding a mix of passionate teams with specific skill sets who are building product ideas that have a clear market fit:

“Now that we’re in a sort of crypto winter and an economic downturn, from the investor perspective, we can afford to be quite choosy because, obviously, capital is scarce.”

Yung added that the stage of development of prospective projects that Animoca Brands considers investing in is typically more mature when compared to the standards it had a couple of years ago. 

Tim Stingelin, Leo Khan, Robby Yung and Saro McKenna delve into the state of Web3 gaming at the European Blockchain Convention 2023 in Barcelona. Source: Cointelegraph

Investors are more demanding as a result, requiring tangible progress for projects that are seeking to raise capital:

“You have to have an alpha build. Ideally, you have some kind of user testing out there when you first go out and look for external capital. It’s very difficult to raise just on the basis of the business plan in this market.”

While investors may be more discerning, Yung also conceded that companies continue to raise money and that the second half of 2023 has been a testament to that, with a number of deals being done:

“It has improved a lot, but there has been a flight to quality.”

User acquisition also remains a hurdle for the Web3 gaming space, which Yung attributed to challenges around the distribution of games. He pointed to hesitance from mainstream gaming platforms to list games that have Web3 infrastructure:

“We’ve historically been unwelcome in most traditional gaming distribution platforms, whether that’s mobile app stores, Steam or console platforms.”

Yung believes that mainstream players remain uncertain about the implications of including Web3 infrastructure in their offerings, which has initially led to a knee-jerk reaction:

“I think that the idea of putting Web3 infrastructure in would bypass their business models, as in the fees that they take for distribution.”

The Animoca Brands CEO added that the conclusions drawn prevented players like Steam, EA and Epic Games from learning more about the possibilities and engaging with the Web3 community to find solutions that cater to the wider gaming market.

Magazine: Blockchain games aren’t really decentralized… but that’s about to change

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Coinbase (COIN), Microstrategy (MSTR) and Grayscale’s Bitcoin Trust (GBTC) All Soar in Price As Crypto Heats Up

Coinbase (COIN), Microstrategy (MSTR) and Grayscale’s Bitcoin Trust (GBTC) All Soar in Price As Crypto Heats Up

Three stocks associated with digital assets are soaring amid a big jump in Bitcoin (BTC) and crypto markets. Coinbase (COIN), Microstrategy (MSTR) and Grayscale Bitcoin Trust (GBTC) shares are all soaring after BTC rose over 19% in the last week. Shares of Coinbase, the largest US-based cryptocurrency exchange, are worth $82.80 at time of writing, […]

The post Coinbase (COIN), Microstrategy (MSTR) and Grayscale’s Bitcoin Trust (GBTC) All Soar in Price As Crypto Heats Up appeared first on The Daily Hodl.

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Bitcoin Amsterdam: BTC shines in depths of crypto bear market

Prominent Bitcoin developers and market analysts highlight BTC’s relative performance to the broader cryptocurrency markets at Bitcoin Amsterdam.

The Bitcoin (BTC) value proposition continues to be a source of confidence for investors and proponents amid prevailing depressed market conditions in the broader cryptocurrency space.

This was a key takeaway from in-depth interviews with Bitcoin developers, advocates, analysts and influential figures during the Bitcoin Amsterdam 2023 conference.

Jameson Lopp, the CEO of Bitcoin custody firm Casa, provides food for thought with less than a year to go before Bitcoin’s next mining reward halving. In a conversation with Cointelegraph, the Bitcoin advocate and software engineer said BTC’s value proposition has been a stronghold through months of tough market conditions:

“During the bear market, so many people have lost money on all these other tokens. Once again, Bitcoin is shining as the safer asset.”

Dylan LeClair is another prominent voice in the Bitcoin space who continues to advocate the fundamentals of the asset amid an unprecedented economic landscape in the United States. The Bitcoin analyst tells Cointelegraph that the average investor continues to “passively plow” into a basket of government bonds and U.S. companies in the hopes of making money over the long term.

Related: Bitcoin Amsterdam: Focus on BTC fundamentals, says Edward Snowden

LeClair admits that while no analyst can guarantee returns on investments in any one asset or vehicle, there is an increasingly strong argument for the long-term potential of Bitcoin:

“Nothing is guaranteed, but its fundamentals suggest that in a very long time frame, you’re going to be securing a very good store of value. Like how people used to buy property or buy gold, whereas it has digital characteristics.”

The analyst adds that Bitcoin continues to be a means for citizens of countries facing hyperinflation to safeguard and control their wealth:

“The people using Bitcoin — the true adopters — have more conviction than ever, and it’s more widespread than ever. People in third-world countries are using Bitcoin not because it’s fashionable or hyped. It’s because they’re using it to save them from losing everything.”
Cointelegraph journalist Joe Hall (right) hosts a panel featuring Rene Pickhardt and Jimmy Song during Bitcoin Amsterdam 2023. Source: Cointelegraph

Meanwhile, Bitcoin developer and educator Jimmy Song tells Cointelegraph that altcoins have detracted from the transformational potential of Bitcoin by “muddying the waters between centralization and decentralization:”

“We’re seeing how a lot of people think that Sam Bankman-Fried is somehow the CEO of Bitcoin — it’s just dirtying Bitcoin’s good name.”

Song also suggests that various cryptocurrency projects have co-opted Bitcoin’s reputation for their own gain, which has left unsuspecting investors the ultimate losers:

“People get confused, they get screwed out of it, and then they swear off crypto forever or something like that, not having ever understood anything about it.”

Prince Filip Karađorđević of Serbia spoke to Cointelegraph just before hosting a one-on-one with President Miguel Albuquerque of Madeira. The autonomous Portuguese archipelago is set to launch a Bitcoin business hub as a means to drive the adoption of the cryptocurrency.

Karađorđević has become a Bitcoin advocate in recent years and now works for Jan3, a Bitcoin firm founded by Samson Mow looking to drive nation-state use of BTC. Conversations centered around the potential of Bitcoin highlighted how the digital asset has different value propositions for developed, developing and first-world economies.

“In developing countries, you’ll see much more adoption there — countries that really have double and triple-digit inflation, your Lebanon’s, Nigeria’s, Argentina’s.”

Meanwhile, developed nations like the United States, the United Kingdom, France and Switzerland will see varying degrees of adoption dependent on regulation and education.

NSA whistleblower Edward Snowden stressed the importance of Bitcoin in combatting tyranny and governmental overreach while providing individual sovereignty of wealth during a virtual address at the conference.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin

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Strong Dollar and Regulatory Woes Causing Negative Sentiment Among Institutions: CoinShares

Strong Dollar and Regulatory Woes Causing Negative Sentiment Among Institutions: CoinShares

Digital assets manager CoinShares says institutional investors are currently less optimistic about crypto due to a strong dollar and ongoing regulatory concerns in the United States. In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that digital assets saw outflows of nearly $60 million last week, marking the fourth week of outflows in a row. […]

The post Strong Dollar and Regulatory Woes Causing Negative Sentiment Among Institutions: CoinShares appeared first on The Daily Hodl.

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5 peer-to-peer (P2P) lending platforms for borrowers and lenders

Discover five platforms — Aave, Compound, MakerDAO, dYdX and Fulcrum — that are transforming lending and borrowing through decentralization.

Peer-to-peer (P2P) lending, which links borrowers and investors directly, has become a well-liked substitute for traditional banking. P2P lending networks enable decentralized lending, in which people can borrow money from other people or institutions directly without the use of intermediaries, such as banks.

Both borrowers, who can receive loans with flexible terms, and investors, who can earn competitive returns on their investments, can profit from this lending arrangement. This article will look at five decentralized P2P lending services that let lenders and borrowers become involved in this expanding market.

Aave

Aave is a decentralized lending platform built on the Ethereum blockchain. By using digital assets like cryptocurrencies as collateral in smart contracts, it enables borrowers to receive loans. On the other hand, investors can lend borrowers their assets while still earning interest on their deposits.

Flash loans, which allow borrowers to obtain loans without providing collateral as long as the loan is repaid in the same transaction, are Aave’s distinguishing feature. This creates new opportunities for immediate liquidity and cutting-edge financial applications.

Compound

Compound is another decentralized lending platform operating on the Ethereum blockchain. It enables borrowers to place security and borrow items backed by the platform. Depending on the demand for particular assets, investors might lend their assets to borrowers and earn interest.

To ensure efficient capital allocation, Compound uses an algorithm that dynamically modifies interest rates based on the availability and demand of assets. By giving users the option to vote on suggestions for platform updates and parameter changes, the platform also lets users take part in governance.

MakerDAO

The Ethereum blockchain-based decentralized lending platform MakerDAO is well-known for its Dai (DAIstablecoin. By using their digital assets as collateral, borrowers can create DAI stablecoins, which are tied to the value of the United States dollar. Lending money to borrowers allows investors to receive interest in the form of stability fees.

Tokenholders who engage in voting on important choices, such as collateral kinds, stability fees and system upgrades, are a part of MakerDAO’s decentralized governance architecture.

Related: DAO governance models: A beginner’s guide

dYdX

The decentralized derivatives trading platform dYdX also provides borrowing and lending features. Borrowers can trade on the site and borrow additional assets using their digital assets as collateral. Investors can lend borrowers their assets while earning interest on their deposits.

Users have freedom and leverage when trading thanks to dYdX’s lending and borrowing options. The platform, which supports various assets and marketplaces, runs on the Ethereum blockchain.

Fulcrum

On the Ethereum blockchain, Fulcrum is a decentralized lending and margin trading platform powered by bZx. Investors can lend their assets and receive interest on their deposits, while borrowers can pledge their assets as security and obtain extra credit.

Related: Margin trading vs. futures: What are the differences?

Users can effectively manage their holdings thanks to the seamless integration of Fulcrum’s lending and trading services. Through the use of its native token, which enables users to vote on protocol updates and parameters, the platform also uses decentralized governance.

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Biden Appoints New Fed Vice Chair as Fedwatch Tool Shows Slim Chance of Rate Hike at June Meeting

Biden Appoints New Fed Vice Chair as Fedwatch Tool Shows Slim Chance of Rate Hike at June MeetingInvestors believe it is highly likely that the target rate will remain unchanged at the June 14 Federal Open Market Committee (FOMC) meeting, following the U.S. Federal Reserve’s decision to increase the federal funds rate by 25 basis points on May 3. As the battle against inflation in the U.S. rages on, the Biden administration […]

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