The United States, home to the world’s largest economy, Silicon Valley, and a vast supply of talent and investment has some appeal for promising crypto startups. But motionless local adoption, an uncertain regulatory climate, and an increasingly inflexible tax regime threaten to make the country less attractive.

Strengths of the U.S. Crypto Sector

The United States has dominated global markets for more than a hundred years. And from the mid-20th century onward, high-tech innovation centered in Silicon Valley and other tech business hubs has been a cornerstone of the country’s economic growth.

In the years since its inception, the U.S. crypto space has exploded. Today, the largest U.S. crypto company, Coinbase, has a market capitalization of more than $9 billion. And in the second quarter of 2023, the company reported revenue of $708 million.

However, despite the sector’s strong growth over the past decade, some members of the business community have identified growing challenges for cryptocurrency startups in the United States.

U.S. Crypto Adoption Is Outpaced by Other Countries

In many ways, the United States was a pioneer in the use of cryptocurrencies among businesses and consumers. But in recent years, the adoption rate has decayed. In 2022, the U.S. ranked fifth in Chanalysis’ global crypto adoption index, behind Vietnam, the Philippines, Ukraine and India.

And while faithful U.S. proponents of cryptocurrencies are as passionate as ever, holders remain in the minority. Certainly, it is difficult to identify exactly what proportion of the country owns cryptocurrencies.

The slowing growth in adoption rates could suggest that most Americans remain wary of cryptocurrency investments and unconvinced of the technology’s potential for payments.

Regulation Drives an Exodus of U.S. Crypto Firms

Beyond slowing adoption, a challenging regulatory situation also threatens to derail the U.S. crypto sector as several major crypto exchanges have already exited the U.S. market.

Facing a court battle with the Securities and Exchange Commission (SEC), Bittrex ended its U.S. operations in April. It is a similar story for Revolut. Earlier this month, the FinTech startup blamed “an evolving regulatory environment” when it withdrew its crypto trading service in the United States.

Leaders Question the Future of the U.S. Crypto Sector

In the middle of a SEC crackdown and a slowdown in growth in the space, business leaders have suggested that startups turn their attention elsewhere. In a statement on August 25^th, Antonio Juliano, who founded the exchange dYdX, commented that Cryptocurrency creators should simply stop serving U.S. customers for now and try to re-enter in 5 to 10 years.

According to Juliano, the challenges of operating in the U.S. do not justify the rewards. Especially when there is plenty of appetite for crypto services elsewhere.

After all, dYdX is based in San Francisco but cannot legally offer its services in the United States. However, Juliano remains optimistic about the future of the U.S. crypto market.

For others, the future is less certain, Ryan Selkis, CEO of Messari, put his opinion bluntly in a recent tweet. As he put it: There is no future for cryptocurrencies in the U.S. if Biden is re-elected. In this respect, it is important to stress that few CEOs are as blatantly partisan or grandstanding as Selkis.

Nevertheless, fears remain high that the U.S. risks losing its edge in an area where it has all the ingredients for success. And crypto entrepreneurs face an uncertain future if they decide to set up shop in the country.

By Audy Castañeda

In the rapidly changing world of cryptocurrencies, Toncoin (TON) has recently emerged as a focal point of discussion due to its remarkable price increase of more than 8% over the past week.

Toncoin (TON) is the native cryptocurrency of the TON Blockchain project, which is an initiative developed by the team behind Telegram. TON Blockchain aims to create a scalable and fast blockchain platform that enables not only cryptocurrency transactions but also a range of decentralized applications and services.

This surge of Toncoin (TON) has sparked renewed interest in cryptocurrencies and generated inquiries about the coin’s potential for sustained growth in the foreseeable future. Toncoin (TON) boasts an impressive price of $1.46, securing its position as the 14th largest cryptocurrency by market cap at around $5 billion.

Technical Analysis Toncoin

From a technical perspective, the Toncoin price chart reveals several interesting developments worth noting. The relative strength index (RSI) currently stands at 58.29, suggesting a balanced interplay between buying and selling pressures. This indicates that the market is in a relatively neutral state. However, the uptrend in the RSI over the past week suggests that bullish sentiment among traders is strengthening. This has been debated by TradingView.com

The MACD (12, 26) level at 0.0287 further supports the bullish sentiment with a buy indication. In addition, the Momentum (10) at 0.0417 reinforces the positive momentum, indicating an opportunity for further upside movement. From a short-term perspective, the moving averages paint a bullish picture. The crossover of the 50-day moving average (MA) above the 200-day MA suggests a shift in momentum from bearish to bullish. This crossover is generally considered a positive signal, adding to the bullish outlook for Toncoin.

Examining Toncoin’s performance in recent months reveals a nuanced story. While the cryptocurrency has shown resilience, posting a gain of 8.83% in the past week and 8% in the past month, it is crucial to recognize its prior downtrend.

Toncoin experienced a significant drop of 25.90% in the last three months and an even steeper drop of 40.74% in the last six months. These figures underscore the inherent volatility associated with Toncoin’s market movements.

More Gains Ahead?

In light of prevailing market sentiment and recent price action, investors are presented with multiple potential scenarios. The bullish momentum seen in the near term may persist, especially if the bullish crossover of the MACD indicator gains additional strength.

However, a cautious approach is warranted, given the cryptocurrency’s history of significant declines. Traders are advised to meticulously monitor critical support and resistance levels to make well-informed decisions.

Based on current technical analysis, Toncoin (TON) is experiencing a positive phase, with indicators such as RSI, stochastic, CCI, and moving averages reflecting a neutral to bullish stance. Market momentum and the MACD level also point to a possible bullish move.

Nevertheless, as with any financial asset, there are inherent risks and market conditions can change rapidly. Staying informed and employing risk management strategies is critical when navigating the cryptocurrency market.

By Audy Castañeda

Why do people collect NFT?    

The non-fungible token market is one of the most striking emergences within the blockchain world. Millions of people around the world turned to this sector that remains solid despite the winter in the cryptocurrency market.

It should be noted that there is no particular reason to motivate people to acquire these collectibles. In that sense, it can be said that there are numerous justifications for entering this market.

4 Reasons Why People Collect NFTs

Listing the inclinations that motivate people to collect NFTs (or anything else) is a complex task. However, there are trends that can be used to group people who are attracted to a particular market.  In the case of non-fungible tokens, these are the 4 main reasons:

1.- Support and empower artists

Since it became a business stolen by the most archaic monopolies, artistic creation lost part of its inspiration. Consequently, artists have long been subjugated by publishers, producers, and auction companies. All these forced them to sign contracts often contrary to the interests of the creators of works and other content.

These tokens mark the beginning of a more equitable model since they bypass the commercial sewers that control the art industry. Artists now have the ability to develop their own creations and sell them independently. The great advantage is that they retain their intellectual property and creative control. Investments to enter the market are eliminated and middlemen are avoided.

2.- Collecting rare pieces

This is where social conventions come in. People accept that a collectible album card from the 1978 Argentina World Cup has value; people’s subjectivity adds values that could even be worth millions of dollars depending on the rarity.

With this, it is patented that it is not about the card, but about what it represents: cultural relevance, rarity, history, and other attachments. Non-fungible tokens largely represent all of this but in a digital version. Thus, cards, artwork, and NFTs appeal to people because of the originality of some creations.

The fact that these tokens are unique is a reason for many people to accumulate them as a collection. This is a great opportunity to access digital assets that in the future will arouse admiration since they will be the first NFTs minted in this era and will be seen as relics.

3.- Investment and profit

There are the motivations of traders to profit from these tokens. Like collectors, some people stockpile these pieces. The difference is that they do so with the motive of waiting for them to appreciate in value so that they can sell them at a profit on their investment.

Thus, investment and profit are among the motives that drive people who collect NFTs. Currently, the trade of these pieces is in its early stages, which makes it a highly volatile market. Hence, it can be considered a high-risk/reward investment.

4.- Being part of a community

Although undervalued by outsiders, the sense of community is one of the strongest in this universe. Many holders are encouraged to become one in order to be part of clubs and feel surrounded by fellowship and exclusivity.

In other words, it’s not about economic, historical, or cultural value, but rather they create identity for many buyers. As a result, a considerable number of creators orientate their NFTs toward collections that generate community. Thanks to blockchain features, creators make exclusive environments for the holders of their collections. As this market develops and acquires new features; it will also generate new attractions for people.

By Audy Castañeda