FTT Cryptocurrency Falls after Hodlers’ Disappointments on FTX Future

Marina Meza
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FTT Cryptocurrency Falls after Hodlers’ Disappointments <strong>on FTX Future</strong>

FTX’s FTT token fell again. While its recent decline hasn’t been quite as catastrophic as last November when the crypto empire of FTX founder Sam Bankman-Fried quickly collapsed, the current stumble is still tied to the exchange’s existence (or absence).

The token offers investors reduced trading fees and other benefits when trading on FTX almost doubled yesterday after the exchange’s top bankruptcy attorney, Sullivan & Cromwell, mentioned the possibility that it might one day reopen. 

“All options are on the table, but we don’t have a specific path at this time,” Andy Dietderich said in response to questions from Judge John Dorsey about restarting the exchange in a Delaware district court.

Raising capital

Dietderich said a business restart, whether on FTX’s international exchange or one tailored to US investors, will likely require raising capital. He also noted that there are questions about whether the bankrupt should use their own money to fund a potential reboot or seek out third-party resources.

A possibility mentioned by Dietderich would be to allow affected FTX customers to transfer some of the funds they eventually recovered to “receive some future exchange interest.”

The token rose from $1.32 to $2.63 following the attorney’s statement. But almost as quickly as it rallied, FTT fell back to $2.04, losing nearly 19% in the past day, as stated by CoinGecko.

The rise resembles traders’ reaction to current FTX CEO John J. Ray III’s statement in January. The token hit $2.37 after Ray said he appointed a team to explore the recovery of the exchange’s international branch.

BlockTower Capital’s Chief Investment Officer and Managing Partner, Ari Paul, dismissed the idea that FTT would have any value in reopening FTX in a tweet on Thursday.

He wrote “It is extremely unlikely that the FTT token has any relation to FTX again for myriad reasons,” he wrote. “FTT tokens are probably just ‘collectible’ now.”

Paul explained that the token probably won’t be involved in any exchange’s reincarnations due to potential liability. At the same time, it makes no sense to place value on TTF holders who have no legal connection to the bankrupt exchange, he said.

Paul’s comments were in response to a tweet from Delphi Labs General Counsel Gabriel Shapiro, who said: “If you think FTT will play some role in FTX 2.0 besides the potential liability of SEC, then you’ve done brain damage.”

The majority of the token’s trading volume took place on Binance in the past day, representing 66% of the total volume tracked by CoinGecko, worth over $160 million. The other most active FTT trading sites are Gate.io and XT.com, which have a combined volume of around $50 million.

While yesterday’s nearly 100% gain seems impressive, the token is still down more than 97% from its $84.18 all-time high, set in September 2021.

FTX was filed for Chapter 11 bankruptcy last year after a massive drop in FTT caused a wave of FTX customer withdrawals, ultimately revealing that the exchange did not have enough customer asset reserves to deal with the massive cash flow of traders.

During the course of two weeks in November last year, the token fell to around $1.50 from around $26. The value of the token started to decline after CoinDesk reported that FTT was a key part of the balance sheet of Alameda Research, a trading firm co-founded by Bankman-Fried before FTX was founded.

By Marina Meza

Bitcoin and Other Cryptos Featured on China’s TikTok Version

Audy Castañeda
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Bitcoin and Other Cryptos Featured on China’s TikTok Version

Douyin, the version of TikTok for China, showed Bitcoin and other crypto price updates for approximately 24 hours.

For less than 24 hours, the prices of Bitcoin and other major cryptos were displayed on Douyin, the People’s Republic of China-only TikTok social network, which is under strict government surveillance. The novelty occurred on April 10, according to specialized media reports.

The first reaction was speculation, taking into consideration that anything that has to do with digital currencies carries a penalty in that country. Among cryptocurrency enthusiasts, the expectation of a possible relaxation of Beijing’s drastic measures against the sector was generated.

Since 2021, any type of trade with digital currencies has been penalized in the Asian country. Consequently, exchanges between crypto or between crypto and fiat, as well as trading with NFTs and related activities, are all penalized. Hence, the publication of the prices of these assets on the social network was more than surprising inside and outside the communist nation.

Douyin Removed Labels from Bitcoin and Other Cryptos

The dream that the authorities would move to a looser stage of control over Bitcoin and other cryptos quickly faded, though. In this sense, the platform removed all the price tags within 24 hours of placing them in view of the more than 750 million users it has in China.

Among the currencies that stood out on the display, some important ones such as Bitcoin, Ether, Doge, and Ripple stood out. The fact that hundreds of millions of people saw this display could have positive effects on this digital market. So far, the price of the pioneering digital currency remains above the $30,000 per unit range.

The popularity of Douyin, a twin platform of Tik Tok launched by ByteDance, with exclusive features for Chinese users, is overwhelming in the Asian country. The number of users is close to 750 million people, which suggests that a good part of them was exposed to cryptocurrency information.

It is worth mentioning that the maximum pressure measures on Bitcoin and other cryptos do not extend to the entire country. For example, in Hong Kong, an autonomous province belonging to China, the authorities are more open to these cryptographic assets. In fact, the local government of the province hopes to turn the territory into a global epicenter of cryptocurrencies.

Douyin Warned About the Dangers of Investing in Virtual Currencies

Although the displayed prices of Bitcoin and other cryptos caused a considerable impact on users of Douyin, they did not last long. In less than 24 hours, the platform decided to withdraw them, warning about the dangers of investing in virtual currencies. With this, the doubts about the iron attitude of the authorities towards this type of asset were cleared up.

According to relevant national regulations in China, unofficial digital currencies do not have the same legal status as fiat currencies. “Please invest with caution,” the platform read after the labels that caused a stir were removed. This message, if correctly translated from Chinese, leaves room for hope.

The Beijing authorities consider cryptocurrency trading as an activity that threatens the stability of the financial system. Despite the government’s hostility to these assets, the attitude towards the underlying technology, the Blockchain, is friendlier.

By Audy Castaneda

Ethereum Course after Shanghai Update

Audy Castañeda
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<strong>Ethereum Course after Shanghai Update</strong>

Ethereum price climbed back above $2,100 after the surge.

With the Shanghai Update, the next important step on the road to the final Ethereum 2.0 has been taken. After the major Ethereum merger in September 2022, the update, which also goes by the name Shapella, was rolled out on the night of Wednesday through Thursday. The course reacted surprisingly positively.

After the Shanghai upgrade, Ethereum saw its latest rise. Many observers feared a price drop as ETH network participants can withdraw their staked ether tokens. Before the Merger, they could stake at least 32 ETH on the beacon chain, later becoming a validator on the network. However, this ETH has been attracted.

Ethereum Price Could Keep Rising after Update – Here’s Why

Many observers assumed that the Ethereum price should drop after the upgrade, as participants would want to withdraw and trade their Ether tokens quickly. But there were no strong sales, so this did not have a negative effect on the price.

Large staked token holders will most likely sell their positions to recover funds and cash in on the progress. While some may be hurt in terms of price, they will have unlocked significant staking benefits along the way.

Selling could cause some short-term price volatility, but with more optimism propping up the market thanks to the prevailing macroeconomic factors we saw during the Merger, let’s hope this is short-lived.

Ultimately, the relief ensured that the Ethereum price remained bullish for the past 2 days. However, it is noteworthy that the bullish price of Bitcoin also pushed the price of Ethereum higher, with its rise above $30,000.

Current ETH Withdrawal Statistics

According to the latest data from Etherscan, participants have withdrawn thousands of ETH worth millions of dollars. At that time, about 150,000 withdrawals of more than 270,000 ETH were recorded.

Token Unlocks revealed that most of the withdrawals were reward withdrawals, while main stake withdrawals were relatively low. Furthermore, it was noted that more than 111,000 ETH were deposited following the successful implementation of the Shanghai Hardfork.

In addition to the Etherscan data, Dune Analytics provided a comprehensive analysis of the betting market, according to which Lido continued to dominate the market with more than 5 million ETH staked, representing more than 30% of the market share.

Can the ETH Rate Double in 2023?

Ethereum’s course is in an uptrend after the successful Shanghai upgrade and Bitcoin’s uptrend. In recent weeks, the price of ETH has repeatedly lagged Bitcoin in percentage terms, with the major cryptocurrency outperforming altcoins.

The successful upgrade could drive the Ethereum price even higher than the Bitcoin price (percentage). However, a doubling should come soon this year, while a move toward $3,000 seems possible.

In the long term, the case for investing in Ether is in order, which will soon include the stake, the return on profits, and the freedom to withdraw when necessary. This is an important moment for the industry and another turning point in the debate between proof-of-stake and proof-of-work protocols.

By Audy Castaneda

Resurrection without a Clear Future for Bitcoin

Audy Castañeda
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<strong>Resurrection without a Clear Future for Bitcoin</strong>

Bitcoin’s price rapid recovery awakens a community in search of good news, while the authorities seek to avoid a new meltdown.

Bitcoin, the main cryptocurrency globally, has crossed the threshold of $30,000 this week for the first time since June 2022. The good performance of the asset, which has remained in a rapid upward trend this year, recovering 80% of its value so far, has not gone unnoticed among users.

The number of holders of this token has exceeded 45 million people, according to data from Santiment. This new all-time high, with 3% growth since January, is almost equivalent to the total population of countries such as Spain or Argentina.

The crypto community is hopeful that this rally marks the return of good times, after ten months of repeated crises, as well as traumatic episodes such as the ‘disappearance’ of the Terra Luna stablecoin, and the fall of the FTX empire.

Official distrust is also on the rise, being the most critical voices from Washington. At the end of March, the Commodity Futures Trading Commission (CFTC) sued Binance for offering unregistered investment assets to US clients.

Less critical are the voices from Brussels, as this month the European Parliament will finally vote on the community regulation for the crypto sector. However, the major provisions of the law would not take effect for another 12 to 18 months. At the same time, the most critical voices warn that MiCA, as the regulation is known, does not cover some market niches, such as loans in digital currencies or paid deposits.

Unchanged Foundations

The rapid recovery in the value of Bitcoin and the rest of the main currencies such as Ethereum, with a return of 62% so far this year, has two main explanations, both related to the economic context, without changes in the basic foundations.

First, the relative drop in inflation in the United States, which was limited to 5% year-on-year in March, reinforces the expectation that the Federal Reserve will decide in May what may be the last interest rate hike in the US. The long-awaited break that crypto enthusiasts dream of could be closer.

Second, the fear of a financial crisis, generated by the collapse of banks in March on both sides of the Atlantic, generated a rebound in the curiosity of many investors for other more lucrative alternatives for their savings. Despite the discussion on social networks, cryptocurrencies still do not have any type of official insurance that protects users.

Matter of faith

Isolated users repeat the mantras of the gurus that still exist, such as CZ, the owner of Binance, who shields himself from any critical comment, claiming that everything is about fear, uncertainty, or doubt (FUD).

The frenzy to break the $30,000 mark has even generated a series of headlines that were unthinkable months ago. For example, the lawyers in charge of the bankruptcy of FTX have made it public that the exchange could return to operation at some point in the near future. This caused this token to double in price after the news.

Some are also encouraged to challenge the environmental concerns against digital currencies. Challenges to the volatile history of crypto assets, are fueled again by a euphoria that can dissipate again at any moment.

By Audy Castaneda

From Crypto to AI: The Rise of Artificial Intelligence in the Crypto Asset Industry

Audy Castañeda
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<strong>From Crypto to AI: The Rise of Artificial Intelligence in the Crypto Asset Industry</strong>

AI has been entwined in digital assets with projects like The Graph’s, ImmutableX, and Futureverse. AI adoption will come with challenges like regulatory hurdles and venture capital funding. AI-powered projects could create the next evolution of the digital asset industry.

As the ever-evolving landscape of digital assets is navigated, a very visible and significant shift is unfolding. The cryptocurrency kingdom may be gradually giving way to a new competitor: artificial intelligence (AI).

Based on the information provided by BeInCrypto, the transformative impact of AI on the cryptocurrency sector is examined, while discussing key developments as well as potential challenges.

A Shift in the Crypto Landscape

The digital asset industry has witnessed a dramatic change in recent times. Scandals and price drops have disappointed many investors, but amid the chaos has emerged a new trend: artificial intelligence (AI).

The Graph, a decentralized software project launched in 2018, uses AI to improve Blockchain data lookups, which has led to its GRT coin being classified as an AI token. The association with AI has given The Graph a new influence, attracting the attention of investors and analysts.

Blockchain gaming is another area where AI is having a significant impact. ImmutableX, a development platform, uses AI to automate the creation of in-game visuals. This innovation further entwines AI with digital assets, highlighting the potential of such a partnership.

AI’s influence extends to the metaverse, a decentralized virtual world where users can interact and transact. Eight companies have merged into a single entity, Futureverse, to explore this realm. In the metaverse, AI can power virtual assistants, facilitate dynamic economies in the world, and even help create realistic simulations of real-world events.

Some experts believe that the combination of Blockchain and AI could lead to a new generation of decentralized applications (dApps) and smart contracts. These innovations could help solve some of the biggest challenges in the Blockchain industry, including scalability, security, and trust.

Some Challenges and Double-Edged Swords

Venture capital funding, already hit by the SVB and Silvergate bankruptcies, may become even more elusive. The growing interest in AI-powered projects has intensified competition among investors seeking utility and value. As a result, traditional venture capital firms may need to adapt their strategies, focusing on AI-focused projects that demonstrate the potential for long-term success. Startups seeking funding will need to show their ability to leverage AI to solve real-world problems and create value for both users and investors.

The integration of crypto AI has been met with both enthusiasm and skepticism. On the one hand, the potential of AI to revolutionize various sectors is undeniable. On the other hand, concerns persist about the impact of AI on privacy, security, and control.

As AI gains momentum in the cryptocurrency sector, regulatory frameworks will need to evolve. Governments and industry players must work together to develop regulations that promote innovation and mitigate risk.

All in all, the future of the industry will be determined by how effectively AI is harnessed, and whether it can live up to expectations. The digital asset sector can forge a path toward a more sustainable and prosperous future through the integration of AI into its processes.

By Audy Castaneda

Analysis of Bitcoin and its Current Price: Time to Buy or Sell?

Audy Castañeda
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<strong>Analysis of Bitcoin and its Current Price: Time to Buy or Sell?</strong>

In recent months, the price of Bitcoin has been increasing, and it maintains an upward trend. Bitcoin’s volatility, however, as well as its lack of government support, are factors to take into account.

The cryptocurrency market has always generated curiosity in all types of investors, from the smallest to the large companies and fortunes. However, the increase in the price of Bitcoin in recent months, as well as its upward trend, has caused the question that many users ask themselves to reappear: is it now a good time to buy or sell Bitcoins?

Before making a decision, it is paramount to analyze the factors that can influence the price of Bitcoin. A fundamental key is to understand how the cryptocurrency market works. Unlike traditional currencies, cryptocurrencies are not backed by any government, which means that the value of cryptocurrencies can be extremely volatile, and it is determined by many different factors, explained below.

Factors Influencing the Buy and Sell Bitcoin Price

One of the main factors that influence the price of Bitcoin is supply and demand. As Bitcoin has a limited supply of 21 million coins, when all of them are in circulation, the supply will drop drastically compared to the demand.

Another factor influencing the price of Bitcoin is institutional adoption. In recent years, there has been an increasing acceptance of Bitcoin by businesses and institutional investors, which has helped boost the price of the cryptocurrency. Institutional acceptance is also often seen as a sign of trust in cryptocurrencies.

Government regulation can also have a significant impact on the price of Bitcoin. Governments around the world are working to establish clear and consistent regulations for cryptocurrencies. If the regulations are seen as positive, this can boost the price of Bitcoin.

Regarding the sale of Bitcoin, it is important to note that this may be subject to tax. The way cryptocurrencies are taxed varies by country; therefore, it is always best to research tax regulations before selling Bitcoin. Additionally, selling Bitcoin may also be subject to fees, which may vary depending on the exchange platform being used.

Three Tips Before Selling or Buying Bitcoins

First of all, it is important to keep in mind that the cryptocurrency market is highly volatile due to its decentralized nature, and prices can fluctuate rapidly. It is easy to get carried away by fear or greed, and for this, informed decisions must be made so as to avoid reacting impulsively.

Second, investors are required to do their own research. Before buying or selling Bitcoin, you should research the market and current trends. A large amount of news and verified information about Bitcoin is published daily on the internet, and it is easily accessible.

Thirdly, it is also necessary to have a clear strategy to follow, whether to hold cryptos for the long term or to make profits in the short term, in order to make a profit or to minimize losses.

In summary, when investing in Bitcoin, its current price is an important factor to consider in whether to buy or sell the cryptocurrency. Researching the market, and the associated investment costs, as well as having a clear strategy in mind, are powerful moves to make informed choices, and thus not getting carried away by emotions.

By Audy Castaneda

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