The Crypto Market Trembles after a Long-Dormant Whale Moves 15,000 ETH

Alexander Salazar
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The Crypto Market Trembles after a Long-Dormant Whale Moves 15,000 ETH

That imposing movement is particularly eye-catching as it occurred amid a bearish market after six years of inactivity. The owner of that wallet bought Ether massively when it was just above USD 1, reminding investors that long-term holding is an effective strategy.

An imposing Ethereum whale recently snorted, which did not go unnoticed in the market because it occurred at a very particular moment. In addition, the significant movement of tokens came from a wallet that had been dormant for many years.

Regulators Sound the Alarm When Detecting Movements by Crypto Whales

Large financial movements by the whales have always been relevant and meaningful in the crypto industry.

Those considerable movements of funds provide information on the tectonics of the industry, its dynamics, and its health.

Since the term whale is as old as traditional finance, it does not only apply to crypto assets. However, the nature of the blockchain networks on which they evolve allows for witnessing often-discreet live maneuvers.

The above would happen without considering the many regulators in the industry who sound the alarm when detecting an unusual movement.

According to Santiment, a considerable movement of funds in Ether (ETH) came from an enormous address.

That movement, already imposing in its numbers, is particularly eye-catching as it occurred amid a bearish market. Besides, the above Ethereum had been inactive for around six years.

Long-Dormant Whales Know Long-Term Holding Is an Effective Strategy

There has been a significant bearish movement in the crypto market over the last 48 hours, led by Bitcoin (BTC) and Ether.

It is impossible to determine whether there is a correlation, but the holder chose to wake his wallet after six years of dormancy. He moved 15,000 ETH, equivalent to around USD 22.5 million at the current price.

Although the Ethereum whales usually cause turbulence, an example of which was the pre-Merge period, the age of the wallet is striking.

The owner of that wallet bought Ether massively in 2016 when the price was just above USD 1. That argument reminds investors that long-term holding is often the most effective strategy.

The considerable movement of Ether over the last two days resulted in the staking of a large amount of Ether. However, the address still maintains 85,000 ETH, equivalent to around USD 133 million, enough to wait until the crypto winter ends.

The Trading of ETH Has Increased due to Massive Whale Activity

The value of ETH has risen significantly over the last 48 hours thanks to the massive whale activity in the market. After accumulating another four percent overnight, the price rally has caused growing pains to short traders in the futures market.

Data from Coinglass indicate over USD 475 million worth of liquidations in the ETH futures market over the last 24 hours. The figures are more staggering for the overall crypto market, which saw USD 1.2 billion in liquidations, with 87.21% of losses coming from short liquidations.

Meanwhile, Ether is trading at around USD 1,538 and has accumulated a 1% gain over the last 24 hours. While its daily volume is above USD 20.86 billion, its daily trading volume is about USD 185.63 billion, according to CoinGecko.

By Alexander Salazar

Reddit NFT Collection: How to Sell Your Avatars without Getting Scammed

Audy Castañeda
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Reddit NFT Collection: How to Sell Your Avatars without Getting Scammed

With the explosion in popularity of Reddit avatar NFTs, scams are targeting newcomers to the space. To do so, they are using at least two methods to steal NFTs: fake airdrops, and false information about NFT listing on OpenSea.

With the recent explosion in popularity of Reddit’s NFT avatar collections, new scams have emerged to take advantage of advertising.

Some scams include fake NFT airdrops and fake websites that ask for your wallet seed phrase.

In the first type of scam, you are informed that someone has airdropped you. When you arrive at the collection’s website, the collection looks legit because it has a team, a trading volume, and a reasonable minimum price. After putting the NFT up for sale, the hackers empty your wallet.

Another scam targets Reddit users asking questions about listing their Reddit NFTs on OpenSea and storing them in wallets. When Reddit users post questions on the Polygon subreddit, hackers often direct them to a website to connect “all” of their crypto wallets.

Hackers then ask users for their crypto wallet seed phrase. If a user loses their private key, the seed phrase is a sequence of words that you can use to recreate the private key. The private key gives the user complete control and ownership over the funds in their wallet.

How to Get Your Reddit NFT Appearing on OpenSea

Still, honest people are willing to help get an NFT listed on OpenSea. A user has created a list of steps to do this, which is summarized below. Please note that you must have MATIC in your wallet to sell your NFT.

First, click on your Reddit profile picture in the Reddit mobile app and click on “Vault”. Second, click on the three dots next to “Vault”, then click to display the recovery phrase.

Third, record the recovery phrase digitally or physically. Fourth, download the Metamask app from the official store of your operating system. After downloading the app, dismiss all splash screens until you have the option to import from a passphrase.

Tap this, paste the recovery phrase you recorded earlier, and create a password. Next, once in the Metamask account, click on “Wallet” at the top of the screen. Then click the “Add Network” button, select and confirm the Polygon network.

To connect to OpenSea, tap the three lines in the upper left corner of the Metamask app, then tap the browser button. Go to OpenSea.io. Once there, click on the hamburger menu in the left corner and tap on the blue button to connect your wallet.

Choose Metamask and confirm your selection in the message that follows. Now when you click on the hamburger icon and select your profile, all your NFTs will be there. You can sell them by tapping on the desired avatar, pressing the blue sell button, and then filling in the remaining fields.

How Reddit Conquered OpenSea

Reddits NFT avatars have skyrocketed in popularity since the social media company launched its marketplace in July 2022. It all started with a Reddit report titled “ABC of NFTs,” through which the company calculated the users’ likes and dislikes.

So far, the social media giant has onboarded more than 2.5 million wallets. A recent uptrend saw prices of some NFTs rise to as high as 30 ETH. This week, the collection topped the OpenSea rankings with 489 ETH in transaction volume.

By Audy Castaneda

The Singaporean Authorities Seek to Ban Retail Investors from Borrowing Funds to Invest in Crypto Assets

Alexander Salazar
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The Singaporean Authorities Seek to Ban Retail Investors from Borrowing Funds to Invest in Crypto Assets

The MAS recommends verifying whether investors understand the potential risks of crypto assets, but high-net-worth investors are not subject to restrictions. Various crypto breaches like the TerraUSD crash led the MAS to announce stricter regulations to offer users maximum security amid market volatility.

The authorities of Singapore have proposed new regulations to supervise how citizens use cryptocurrencies and protect consumers.

The central bank of the Asian country and the Monetary Authority of Singapore (MAS), the financial regulator, have been working together. They recently released two consultation documents with suggestions to support the government’s regulatory position on crypto assets.

MAS Recommends Banning the Use of Credit Cards to Buy Cryptocurrencies

The consultation document outlines the proposal of banning retail investors from using credit cards to borrow funds to buy or sell crypto assets.

The MAS has also recommended requiring cryptocurrency investors to answer a questionnaire to see if they understand the potential risks of those assets.

However, high-net-worth investors are not subject to those restrictions, as they qualify for a broader range of investments. The document proposed a limit of SGD 200,000 (about USD 142,000) for accredited investors to invest in cryptocurrencies.

The volatility of cryptocurrencies has led the MAS to ban crypto companies from offering loans, staking, and leveraged transactions. The central bank of Singapore considers that the instability of prices may cause consumers to suffer considerable losses.

The financial regulator also highlighted that crypto service providers must segregate their clients’ assets. Besides, it said it was necessary to provide information about risk assets to mitigate consumer complaints.

The document addresses the recent bankruptcy of several companies in the digital payment token (DPT) sector. It states that this situation underscores the importance of having effective and robust arrangements to identify and segregate their clients’ assets.

MAS Plans to Regulate the Issuance of Stablecoins in Singapore

The MAS revealed its plans to regulate the issuance of single currency-pegged stablecoins (SCS) in a separate consultation document. It said that the value of the tokens in circulation exceeds 5 million Swiss dollars, equivalent to around USD 3.6 million.

The document noted that stablecoins must have parity with the Singapore dollar or a group of 10 currencies fully backed by reserve assets. In addition, the issuers of those crypto assets must publish a white paper revealing essential details, like the redemption rights of holders.

The Central Bank Does Not Plan to Ban Cryptocurrency Services Completely

The Singaporean authorities made those proposals a few months after various crypto breaches, like the TerraUSD crash, affected the country.

The MAS announced in August that it seeks to establish stricter regulations to offer cryptocurrency investors maximum security against market volatility.

However, the central bank of Singapore has made it clear that it does not plan to ban cryptocurrency services completely. They intend to prevent retail consumers from seeking those services on unlicensed platforms.

During the new consultation period endings on December 21st, the regulator expects to collect feedback on the guidelines from stakeholders.

By Alexander Salazar

Weren’t Cryptocurrencies Banned in China? Curiously: Yes, but No

Audy Castañeda
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Weren’t Cryptocurrencies Banned in China? Curiously: Yes, but No

Despite half a dozen bans on cryptocurrency-related activities, there was one thing that was never banned: owning them.

China would not be China if there were no ways to circumvent the strict regulations. Ownership of cryptocurrencies remains legal and legally protected. Most in the West greatly underestimate the flexibility of the Chinese system, whose employers are masters of the gray area.

Wait a minute, hasn’t China banned everything related to cryptocurrencies? Well yes and no. The government has banned all services related to cryptocurrencies, for example, trading platforms, promotion or sale, and even cryptocurrency mining.

After China has long been the largest and most vibrant crypto market in the world, today, an entire industry has seemingly disappeared. However, China would not be China if it did not have ways to evade the strict regulations.

Ban on Cryptocurrencies in China

Despite half a dozen bans on cryptocurrency-related activities, the government has never banned one thing: owning cryptocurrency.

Surprisingly enough, owning Bitcoin (or any other cryptocurrency) is still legal and legally protected in China.

And if you can legally own something, then you also have the right to sell it to someone else. After all, it is legal property and everyone can decide for themselves what to do with it. You are only in legal trouble if you are trying to set up professional cryptocurrency trading.

Holding on to property rights may surprise some. The Chinese government views private cryptocurrencies largely as a means of money laundering, tax evasion, and illegal fundraising.

However, this is not surprising for those who know China well. The system is ambiguous.

China and Cryptocurrencies: A History of Misunderstandings

China is the only country in the world that has managed to remain officially communist while operating a hyper-capitalist economy. Likewise, the country has managed to be the largest economy with the strictest regulation towards cryptocurrencies, and at the same time be one of the most active crypto markets.

That may seem contradictory, but contradictions are exactly what the Chinese economy lives on. They make a naturally rigid bureaucratic system incredibly flexible.

The reasons why cryptocurrencies are so popular in China are obvious: a repressive government, strict capital controls, and massive state surveillance. All of this drives demand for immutable, privacy-focused, and freely transferable assets, with the idea of creating wealth for its citizens.

However, the main goal of the government has always been to maintain control, while remaining open to new and promising technologies.

As Kai von Carnap, an analyst at Europe’s largest China think tank, explains:

“The government is happy to receive all the ‘free’ expertise in cryptocurrency and Blockchain-related areas, while keeping its large number of engineers busy. In fact, someone programming on Ethereum today might as well switch to government initiatives like China’s BSN (Blockchain Service Network) or writing smart contracts for e-CNY.”

The law in China is not there for citizens to always follow to the letter, they see it as an instrument in the hands of the government. It’s often only used when something gets out of control. In practice, local authorities often turn a blind eye.

In conclusion, Chinese entrepreneurs are masters of the gray area, long been used on the border with legality, since all private business in China was illegal until the beginning of the reform period.

By Audy Castaneda

After Moving Sideways for Several Weeks, the Price of Bitcoin Rises above USD 20,000

Alexander Salazar
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After Moving Sideways for Several Weeks, the Price of Bitcoin Rises above USD 20,000

The favorable development of external factors like the loss of interest in government bonds suggests the price of Bitcoin might increase. If the value of BTC breaks out of the previous stabilization, it might achieve more significant increases again.

The price of Bitcoin (BTC) recently rose above USD 20,000 after moving to neither the upside nor the downside for several weeks. The latest price developments in the market suggest a bullish breakout in the coming days before the start of a rally.

The Price of Bitcoin over the Last Few Days

Following a long period without significant gains, the value of Bitcoin recently rose above USD 20,000. The price exceeded the range from USD 19,000 to USD 20,000, where it had moved over the last few weeks.

The value of Bitcoin has been closer to the USD 19,000 level over the last few days. After breaking above USD 20,300 in just 1 to 2 hours, it remained above the USD 20,000 mark.

The Price of Bitcoin Might Rise in the Short Term

Over the last few weeks, the price of Bitcoin has been almost exclusively between USD 19,000 and USD 20,000. Many investors lost interest in the crypto market due to that stability and the dullness of the market. However, a lengthy stabilization period in that narrow corridor suggests that a significant price move might occur soon.

Since external factors develop favorably for Bitcoin and other cryptocurrencies, nobody should rule out an increase. Investors are losing interest in government bonds again but might feel attracted to risky investments like cryptocurrencies. Besides, the value of crypto assets stabilized despite the drop in stock prices.

The Price of Bitcoin Might Achieve a Significant Rise Again

Over the last few weeks, the bearish market has caused the value of cryptocurrencies to stabilize. Six months after prices increased massively, they have reached a phase where they remain at a low level without further losses. Therefore, Bitcoin may have reached its bottom.

If the price of Bitcoin breaks out of the previous stabilization, it might achieve more significant price increases again. After the stabilization phase in the bearish market, prices rose again following the last Bitcoin cycle. In 2019, BTC increased three times after bottoming out.

Where the Price of Bitcoin Will Head in 2022

Over the following weeks, the price of Bitcoin might rise if it breaks above its current resistance level. When it enters the volatile phase again, the course of Bitcoin might become quite bullish again.

There must be a clear breakout in the price for a move toward USD 30,000 to be realistic this year. However, Bitcoin has recently bounced off the top of the resistance repeatedly, suggesting an exciting outlook over the next few days.

It Is Worth Investing in Bitcoin in the Long and Medium Term

The value of Bitcoin might rise further over the coming weeks, but it should be at the low end in this bearish market. Therefore, investing in Bitcoin should be profitable, at least in the medium to long term. In 2023, there might be considerable increases that exceed current price ranges.

Meanwhile, Bitcoin is trading at around USD 20,378 and has accumulated 5.6% over the last 24 hours. While its daily trading volume is above USD 47.03 billion, its market capitalization is about USD 391.06 billion, according to CoinGecko.

By Alexander Salazar

Economic Experts Consider Crypto Assets Experience a Boom Time in Latin America

Alexander Salazar
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Economic Experts Consider Crypto Assets Experience a Boom Time in Latin America

Limited and decentralized cryptocurrencies help control inflation as people can easily convert them to US dollars or other physical currencies. Many people seek refuge against inflation in cryptocurrencies like Bitcoin in Argentina, Colombia, and Venezuela.

Some economic experts recently explained how to take advantage of cryptocurrencies amid the uncontrolled increase in inflation. The monetary policies to face the COVID-19 pandemic have led to an excess money supply and the depreciation of regional currencies.

Rodolfo Andragnes, the co-founder of ONG Bitcoin Argentina, stated that governments could not issue Bitcoin (BTC) according to their changing interests. He explained that it requires investing in energy and computing infrastructure, unlike the US dollar and other state currencies. Besides, he pointed out that its processing power exceeded that of Google considerably.

The Economic Outlook of Latin America Looks Uncertain

According to the United Nations Conference on Trade and Development (UNCTAD), the economic outlook in Latin America remains uncertain. They predict it will register a slowdown in its GDP, dropping from 6.6% in 2021 to 2.6% this year and only 1.1% in 2023.

In contrast to different regional currencies, limited and decentralized cryptocurrencies help keep inflation under control. One of their advantages is that they are 100% digital money, easily convertible to US dollars or other physical currencies. That is possible because they are transferable, unforgeable, divisible, fungible, and storable.

Therefore, people may use cryptocurrencies as a store of value to protect themselves against the problems affecting the region. For example, different national fiat currencies have depreciated while the prices of goods and services have increased.

Cryptocurrencies Experience a Boom Time in Latin America

Various cases in Latin American countries show the success of adopting cryptocurrencies to face the economic crisis.

Venezuelans, which have generated a peak of USD 303 million over the last few years, recently traded nearly USD110 million. The adoption of cryptocurrencies has allowed those living abroad to send money to their relatives in the country.

Argentina is the second country with the highest Consumer Price Index (CPI). While prices have risen by 56.4%, the national currency has depreciated by 25% since January. That situation has led many more people to seek refuge in cryptocurrencies like Bitcoin.

According to FinTech, there is USD 70 billion worth of cryptocurrency transactions in Colombia monthly. In addition, they have tracked more than 600 sites where people can buy and sell crypto assets.

Experts, businesspeople, and world-class analysts should work together with the main actors in the industry. They can help encourage regional economic growth by adopting and using decentralized crypto assets.

Cryptocurrencies like Bitcoin have proved relevant in the economic system worldwide, which experts know very well. That has led them to share their observations, allowing an increasing number of people to understand how those assets work.

Meanwhile, Bitcoin is trading at around USD 20,378 and has accumulated 5.6% over the last 24 hours. While its daily trading volume is above USD 47.03 billion, its market capitalization is about USD 391.06 billion, according to CoinGecko.

By Alexander Salazar

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