Comes every sunday Hodler’s digest Follows all of the major crypto news from the past week. Basic reading for all hodlers!
Top Stories This Week
Bitcoin price of $ 12,000 back on the table after BTC surged above $ 11,400
Last but not least. Bitcoin rebounded $ 11,448 finally on Friday above the symmetrical triangle where price had been compressed for the past 30 days.
Earlier in the week, BTC had dropped to $ 10,528 when Donald Trump proposed Negotiations on a second stimulus package would only happen after the election.
But there were reasons to be happy. In a surprising move, Square announced it had acquired 4,709 BTCand describes it as an “instrument of economic strengthening”. This helped Bitcoin go bullish and put $ 12,000 back in sight.
DeFi tokens followed the upward trend of BTC with Yearn.finance increase by 58% within 72 hours. Bitcoin Wrapped again this week Locked over $ 1 billion in total after an increase of 900% in two months.
All eyes are now on the US election and whether that will affect the price of Bitcoin. One dealer, “BigCheds,” said Cointelegraph A clear winner has no impact on the crypto too much, but he believes “we should see a rebound in risk-off assets like gold and bitcoin” if the outcome is challenged.
SEC’s Conservative Approach to Crypto Must Change, Says Crypto Mom
Hester Peirce – the SEC Commissioner, affectionately known as “Crypto Mom” – has said that the regulator’s conservative stance on crypto needs to change.
In an interview with Cointelegraph, she admitted that the Securities and Exchange Commission was “very slowly” issuing guidance, despite growing interest in digital assets.
“I think we will have to face it more and more in the years to come,” said Peirce.
US Attorney General William Barr reported in other regulatory news published official guidelines for the accountability of the crypto markets, saying the space could “fundamentally change” society. Its framework contains examples of the legal and illegal use of crypto and sets a game plan for the future.
Meanwhile, the Justice Department said it is Jurisdiction for foreign crypto companies touching US servers and warned “rogue states” like Russia, Iran and North Korea could use crypto to fund cyberattacks designed to undermine national security.
You can see Hester Peirce’s interview with Cointelegraph Here.
BitMEX founder and ex-CTO have placed a $ 5 million bail pending court appearance
Former BitMEX technical director Samuel Reed was released from custody after signing a $ 5 million bond.
He was arrested on October 1 after he was accused of violating money laundering regulations, which violated the Banking Secrecy Act, and illegally trading derivatives for US retail customers.
Reed has deposited $ 500,000 in cash with the court under the agreement. His bail will be forfeited if he does not appear in court or surrenders to serve a sentence that may have been imposed by the court. His passport was also confiscated.
Its co-founders and colleagues – Arthur Hayes, Ben Delo, and Gregory Dwyer – are all charged on the same charges and remain “at large”.
BitMEX announced profound changes in top management This week, the three co-founders of the exchange will no longer hold leadership positions. But David Carman, a former Chicago Board Options Exchange trader, told Cointelegraph so The damage may already have been doneand the legal drama could put mainstream institutions off.
Shenzhen is distributing 10 million digital yuan as a giveaway for currencies
Even central bank digital currencies can have a drop of air.
The Chinese city of Shenzhen is distributing 10 million digital yuan (worth 1.5 million US dollars) to 50,000 lucky recipients through a lottery system.
The winners have a week to hand out their prize at more than 3,300 vendors in Luohu District.
All of this will happen if the Chinese government continues to promote the digital yuan to the public – and a pilot program is currently underway in nine cities.
In other CBDC news this week, seven central banks have shared one with the Bank for International Settlements Report setting out how these digital assets will be designed.
However, in a rather curious development, the BIS admitted that none of the central banks involved in the investigation actually decided whether to issue its own CBDC.
John McAfee was arrested in Spain for tax evasion
John McAfee was arrested in Spain for tax evasion and is now awaiting extradition to the United States.
He has faced five tax evasion cases between 2014 and 2018, and if convicted, faces a five-year prison term and a $ 250,000 fine for each case. McAfee was also charged with five cases of willfully failing to file taxes.
On the same day, the US Securities and Exchange Commission filed a lawsuit against McAfee for allegedly promoting ICOs without disclosing that he had been paid to do so. It is claimed that he made $ 23 million from it.
In a message delivered by his wife, Janice, McAfee said, “Hello from jail my friends. I have a fascinating time. The Spanish prison is not that bad. We can wear any clothes we want. We can smoke and socialize. It’s like staying at the Hilton with no service.”
Winner and Loser
At the end of the week, Bitcoin is at $ 11,372.62, Ether at $ 373.51 and XRP at $ 0.25. The total market capitalization is $ 358,488,544,443.
Among the top 100 cryptocurrencies are the top three altcoin winners of the week UMA, Ren and Storj. The top three altcoin losers of the week are PumaPay, Hyperion and SushiSwap.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“If we have a clear winner and an easy change of power, I don’t see much of an impact on the price per coin. On the flip side, with a narrow and / or controversial choice, we should see a surge in risky assets like gold and bitcoin. “
“Some bet on blue, some on red and I bet on gold.”
Frank Holmes, CEO of U.S. Global Investors
“Andre said he won’t tweet anymore. People got what they asked for … The crypto community in general has always been childish and irresponsible which is the opposite of what Andre was preaching. This witch hunt is something other thing, the last week was very demoralizing. “
Banteg, Longing developer
“There are many reasons the price of Bitcoin can go up or down, but S2F is not one of them.”
Charlie Morris, Co-founder of ByteTree
“There’s more hype around NFTs right now. To some extent, this is an extension of the DeFi excitement. We have seen at DeFi that an incipient trend creates a snowball effect. “
Ilya Abugov, DappRadar project manager
“The crypto market has gotten into a sea of red this week, with most DeFi blue chips posting double-digit losses over the past 7 days.”
“What is BitMEX thinking about? What do these companies think that they can act like this and not go overboard and are honest, have a high level of integrity and are transparent? What do they think will happen here?”
David Carman, former CBOE dealer
“I’ve never been so excited about #Bitcoin’s potential for a significant short-term price increase (less than 18 months).”
Bill Barhydt, CEO of Abra
“Conservative. I’d say #bitcoin will likely hit $ 1 trillion in market cap in 2 years, probably sooner. $ 1 trillion is about 50,000 BTC.”
Adam back, CEO of Blockstream
Forecast of the week
The bitcoin pioneer predicts a bitcoin market capitalization of $ 1 trillion by 2022 or “earlier”.
Adam Back Said It Is “Conservative” To Believe Bitcoin Will Reach A Market Cap Of $ 1 Trillion By 2025 – and believes it could happen within two years.
This would cause Bitcoin to rise to a price around $ 50,000 per coin.
In order for the Blockstream CEO’s forecast to come true, Bitcoin’s market capitalization would have to increase by almost 400% given its current valuation of around $ 210 billion.
Other crypto managers also believe there is a lot to discover.
Bill Barhydt, the CEO of the payment gateway Abra, tweeted in this week: “I’ve never been so excited about #Bitcoin’s potential for a significant short-term price increase (less than 18 months).”
He believes we could see a retest of the all-time highs at $ 20,000, which would trigger “a run to $ 50,000 and beyond.”
FUD of the week
Coinbase employees are bleeding from controversial cultural stance
At least 60 Coinbase employees plan to leave the exchange after making controversial adjustments to company policies.
Brian Armstrong, Coinbase CEO, stated that employees are expected to avoid political and social distractions and focus on building an “open financial system to the world.” Employees who felt uncomfortable with this instruction were asked to accept a “generous exit package” worth four to six months’ salary.
Armstrong has now announced that around 5% of Coinbase’s workforce have decided to take up the offer, and other workers have also expressed an interest in leaving.
Some feared that the cultural change would affect the company’s “under-represented minority population”. However, according to Armstrong, people from such groups did not accept the severance package in disproportionate numbers.
In an email to employees, he wrote, “While leaving team members is never easy, I think we will emerge as a more aligned company. From time to time we need to reformulate and clarify our cultural norms as we continue to scale. “
Multimillionaire Dick Smith is threatening to sue The Guardian over Bitcoin fraud reports
One of Australia’s best-known entrepreneurs has threatened to sue The Guardian after running ads referring to fake articles suggesting it is promoting a fake Bitcoin investment program.
Dick Smith has vowed to initiate defamation proceedings against the media within 14 days, unless his legal team receives a satisfactory response.
Although The Guardian turned off ads after the notification, Smith’s attorney warned “that it will not prevent Australian readers from falling victim to this prolific cryptocurrency scam.”
Smith has been fighting the ads on various platforms for months. In his case, the fake articles were about how to “make money easy” with cryptocurrency and “get rich in a few days”.
Several high-profile individuals – including Dutch billionaire John de Mol and UK financial expert Martin Lewis – have also taken legal action after fraudulent advertisements with their image were found on Facebook.
So far, 75 crypto exchanges have been closed in 2020
The crypto exchange is quickly disappearing this year. At least 75 of them shut down due to hacking or fraud, some just vanishing into thin air.
According to research by the Crypto Wisser Exchange Graveyard, five of the exchanges were believed to be fraudulent, four were hacked, 31 were voluntarily closed, and 34 were labeled “MIA” because they disappeared without explanation. Two were shut down by governments.
There are a few macro trends that explain why so many smaller exchanges are failing. The growth of DeFi and the rise of decentralized exchange in 2020 have put the final nail in the coffin for many smaller businesses.
Regulatory pressures have also increased since the industry began, and many exchanges simply couldn’t keep up with the demands.
Best Cointelegraph properties
North Korean Crypto Hacking: Separating Fact and Fiction
How do North Korea’s hacking groups work, how serious is the problem and what can be done to stop it? Alex Cohen of Cointelegraph Magazine takes a look.
These are the end days for crypto criminals and a good release
Nobody who believes in crypto wants it to be a sector committed to crime or poor commitment to security, argues Paul de Havilland.
NFTs take over DeFi? Non-fungible tokens are becoming the next crypto craze
NFTs have grown in importance in the background, but where is the industry going? António Madeira takes a look.