Despite Suffering a USD 2.8 Billion Loss, Mark Zuckerberg Does Not Seem to Worry

Alexander Salazar
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Despite Suffering a USD 2.8 Billion Loss, Mark Zuckerberg Does Not Seem to Worry

The price of Bitcoin has recently recovered lost ground amid confusion over whether the US is in a new recession. The Law Commission of England and Wales recognizes crypto asset users and proposes accommodating that growing space.

Reality Labs, the virtual reality (VR) and Metaverse division of Meta, suffered its seventh consecutive quarter of loss. However, Mark Zuckerberg wants to continue investing in that technology, which he calls a massive opportunity.

During the call for the earnings report from Reality Labs for the second quarter of 2022, the CEO of Meta expressed his opinion. He said that those losses might continue for several more years until VR apps and his Metaverse platform become more mature. According to the developer, that would allow taking advantage of the massive multi-million-dollar opportunity.

The Reality Labs second-quarter earnings report revealed extended operating loss. It is relevant to mention that these losses usually occur in divisions in the research and development phase.

Bitcoin Struggles to Reach the USD 23,000 Level amid Probable Technical Recession

The price of Bitcoin has recently recovered lost ground at the Wall Street open. That has happened amid confusion over whether the US had entered a new recession.

The momentum benefited from US gross domestic product (GDP) data, falling for the second quarter in a row. It thus fulfills the requirements for an economic recession in the country.

Bitcoin is trading at USD 23,978 and has accumulated a 4.1% gain over the last 24 hours. Its daily trading volume is above USD 50.19 billion, while its market capitalization is about USD 458.15 billion, according to CoinGecko.

The IMF Director Says that Algorithmic Non-Cash-Backed Stablecoins Will Fail

According to the director of capital markets of the International Monetary Fund (IMF), currency offerings might have more flaws. Amid the current crypto winter, Tobias Adrian considers that algorithmic stablecoins will drop.

He also noted that some fiat-backed stablecoins had suffered vulnerabilities, referring to US dollar-pegged Tether (USDT).

In that regard, Adrian also mentioned that stablecoins need a global regulatory approach to protect investors better.

England and Wales Propose Reforms to Recognize Cryptocurrency Users

The Law Commission of England and Wales proposes some legal reforms to provide greater recognition and legal protection to crypto asset users.

The officials are reviewing the current legislation on digital assets at the request of the British government to accommodate the growing space. They recently announced the call for public consultation of legal experts, technologists, and users.

Relevance of Cryptocurrencies in the Current World Economy

The world of cryptocurrencies is increasingly relevant, which the above events have made evident. While many crypto companies have suffered losses, regulators make efforts to control their use by citizens.

It is relevant to remember that various factors affect crypto assets, which have dropped considerably over the last few months. That situation has caused cryptocurrency-related businesses to file for bankruptcy, as they cannot respond to their uses.

By Alexander Salazar

Lack of Crypto Experts Becomes a Major Concern in the European Union

Jenson Nunez
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Lack of Crypto Experts Becomes a Major Concern in the European Union

The European Union lacks crypto experts available to help regulate the crypto-assets market.

The European Banking Authority (EBA) faces some trouble recruiting specialists to help determine what policies the digital asset industry requires to follow in the European Union.

In an interview with the Financial Times, José Manuel Campa expressed that the lack of specialists in the crypto space in the EU has generated a problem in the entity responsible for overseeing the EU banking sector.

The President of the EBA highlighted that the lack of specialists obstructed the development of the guidelines by 2025.

European Union – regulating the crypto market

Regulating the digital asset market has been among the European Union’s most important goals. The political-economic union represents 27 strong countries in the region. It recently finalized the Markets in Crypto Assets (MiCA) legislative package, which intends to consolidate a group of new standards, especially for stablecoins.

In addition, the parliament voted in favor of a proposal to prohibit the digital currencies that use the PoW consensus procedure. This proposal got later rejected, to the happiness of asset enthusiasts.

In this sense, Campa highlighted that this volatile and dynamic nature of digital assets has made it difficult for the bloc to approach an agreement, despite advances in recent weeks.

According to the President of the EBA, the proposal counts on a solid regulatory archetype, but it would still need improvements regarding the market. He also expressed that once the established guidelines get enacted in about three years, there is a high chance that digital currencies will have other uses that specialists can’t predict.

Lack of professionals?

Campa also spoke about the struggles of the European Union regarding labor recruitment in the crypto market. This situation makes it hard to have the industry under the radar. The problem itself would not be the lack of skilled workers but rather the competition against high salaries offered by private entities in the sector.

According to the head of the European Banking Authority, investing heavily in hiring and offering higher salaries to experts is not within the scope of possible discussions. However, mass layoffs by large crypto entities in recent months may bring a new change to this situation. Some dismissed professionals may intend to find a spot in regulatory entities.

Crypto winter, or the multitrillion-dollar slump in digital assets prices, comes after the industry hit record highs in late 2021. The global cryptocurrency market reached a peak registered at $3 trillion in November, making it more valuable than either Microsoft or Apple at the time.

But now, fears of a recession and soaring inflation warned investors about staying away from digital assets.

One prominent crypto entity stands apart from its competitors. Leaders at Binance said that the entity could still afford to recruit more than 2,000 roles this year. Many large companies and exchanges, such as Binance, intend to collaborate with government agencies to consolidate guidelines that do not obstruct the crypto market evolution.

By: Jenson Nuñez

US Senate Asks Apple and Google for Information on Fraudulent Cryptocurrency Apps

Audy Castañeda
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US Senate Asks Apple and Google for Information on Fraudulent Cryptocurrency Apps

Apple and Google should detail their crypto app review and monitoring processes to prevent apps from becoming phishing scams. The companies must respond to the letter sent by the US Senate before August 10, 2022.

The chairman of the US Senate Committee on Banking, Housing and Urban Affairs, Sherrod Brown (D-OH) requested through a letter that the companies Apple and Google explain their review and approval processes for cryptocurrency platforms in their app stores.

Senator Sherrod Brown sent a letter to Google and Apple because, according to a recently released report by the FBI, 244 investors have been scammed out of $42.7 million dollars by fraudulent cryptocurrency apps. Such platforms claim to be safe and reliable investment services.

For the senator, it is imperative that application stores have the necessary protections to prevent fraudulent mobile app activities.

Senate Member Requests

“Crypto mobile apps are available to the public through app stores, including the Apple App Store (…) while cryptocurrency apps have offered investors easy and convenient ways to trade cryptocurrencies, reports of fake cryptocurrency apps that have scammed hundreds of investors.”

In letters to Apple CEO Tim Cook and Google CEO Sundar Pichai, the U.S. Senate member asked the CEOs to detail their processes for reviewing and monitoring cryptographic apps to prevent apps from “transforming into cryptocurrencies.” phishing scams.”

US Government Demands Answers

In the text of the letter from the chairman of the US Senate Committee on Banking, Housing and Urban Affairs, Tim Cook and Sundar Pichai are questioned due to the increase in fraudulent applications and affected users.

“In recent years, cryptocurrency trading platforms and exchanges have seen a surge in popularity, with millions of investors downloading mobile apps to trade and invest in digital assets (…) The FBI recently issued a warning about the proliferation of Fake cryptocurrency apps created by cyber criminals to mislead investors.

Criminals have stolen logos, names, and other identifying information from crypto companies, then create fake apps to trick unsuspecting investors into thinking they are doing business with a legitimate crypto company.”

Specifically, the document asks the two companies to clarify and share information about the review they carry out before approving cryptocurrency apps, taking into account the following points:

  1. List the factors or criteria used by your business to determine whether to grant approval to an app, including the steps your business takes to confirm that the app requesting approval is a trusted and secure app.
  2. Describe the steps your app store takes to prevent cryptocurrency apps running on your platform from circumventing policies by becoming phishing apps.
  3. In your response, please describe in detail how often your app store monitors apps to protect against fraudulent activity, as well as the steps you take to remove apps that are determined to be fraudulent.
  4. Describe all the systems and processes your company has in place for people to report fraudulent apps.
  5. Please describe any actions your app store has taken to alert people to actual or potentially fraudulent activity associated with cryptocurrency investing apps.
  6. Since January 2020, has your app store coordinated or shared actions or activities with other app stores related to the suspension or removal of fraudulent cryptocurrency apps? If so, please explain.

Finally, Senator Brown requested that Apple and Google respond to the questions raised in the document before August 10, 2022.

By Audy Castaneda

SUN, VET, OCEAN, ROSE – Technical Analysis

Audy Castañeda
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SUN, VET, OCEAN, ROSE – Technical Analysis

Technical analysis of Solana (SOL), VeChain (VET), Ocean Protocol (OCEAN), and Oasis Network (ROSE) will be presented in this article.

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SOL is driven by trying to break the $44.23 barrier. VET maintains its price stable within a lateral channel that includes 0.026 dollars and 0.020 dollars. OCEAN builds bullish momentum with the intention of breaking above the $0.2 barrier and ROSE hits the $0.067 barrier after fresh momentum higher in the last few hours.

Sunshine (SUN)

Solana creates a short-term higher low after creating a bounce off the $35.5 level. The upward momentum leads the Solana price to reach the barrier of 44.22 dollars.

The price of SOL reached a very important resistance in daily time, which, if broken, confirms the bullish continuity with the objective of reaching 48.25 dollars.

Confirming the importance that the barrier of 44.22 dollars currently has, if this resistance area is rejected, the short-term bullish momentum would end and a new bearish momentum would begin that could return Solana’s price to 25.7 Dollars.

VeChain (VET)

Despite the great movements presented in the two cryptocurrencies with the highest capitalization (Bitcoin and Ethereum), in the case of VET there has not been a great upward or downward movement.

In VET two chartist formations can be detailed. The first is a cumulative side channel, which is a sign that at any time there may be a strong volume movement at any time, which can be both bullish and bearish.

The second formation is a descending triangle, although it is not unusual to see this type of formation with two highs at the same level, so the structure can be invalidated if VET manages to break above the $0.026 barrier.

On the other hand, VET may reject the $0.026 barrier again, projecting further bearish momentum with a target of $0.017.

Ocean Protocol (OCEAN)

For the second time, Ocean Protocol creates bullish momentum with the intention of breaking the $0.2 barrier.

The price quote in OCEAN in low timeframes has created the ascending triangle chart figure.

This pattern formed by maximums of the same level and increasing minimums has a probability that the price will present an upward impulse which proposes as a target to reach 0.254 dollars in the case of OCEAN.

However, it can become a failed pattern as, within a bear market, the chances of success in this pattern are only 12%. A timely short entry can be exploited after a second rejection above the $0.2 barrier with a target of $0.12.

Oasis Network (ROSE)

Oasis Labs recently partnered with Meta to assess the fairness of their AI models, a pivotal scenario that encouraged a 23.51% rally in ROSE’s share price.

The $0.067 barrier could be considered a fairly solid area to be broken in the coming hours due to the weakening in its upward momentum.

The side channel forming between $0.067 and $0.041 indicates accumulation in the ROSE price.

The behavior is very similar to what we studied in both OCEAN and VET, although it has the peculiarity of forming a possible cup that is bullish in the short term.

The best scenario for ROSE is that its price continues within the lateral range, accumulating during the months of August and September, since bearish conditions may appear for the crypto assets with the highest capitalization, and its price increases again for a possibly bullish October.

By Audy Castaneda

Singapore-Based Cryptocurrency Exchange Zipmex Requests Bankruptcy Protection

Alexander Salazar
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Singapore-Based Cryptocurrency Exchange Zipmex Requests Bankruptcy Protection

Zipmex filed for bankruptcy protection, saying it wants to focus on resolving liquidity issues. It is one of many crypto companies facing financial stress due to the bearish market.

Zipmex, a Singapore-based cryptocurrency exchange, recently filed for bankruptcy in Singapore. It requested relief from the moratorium for five companies as it solved its liquidity problems.

Cryptocurrency exchange Zipmex joins other firms taking action against financial stress by filing for bankruptcy in Singapore.

The lawyers of Zipmex filed five applications under Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act 2018. They said they expect to prevent users from experiencing service interruptions as they continue to operate their Trade Wallet and NFT platform.

According to the lawyers, that helps protect Zipmex from third-party actions, claims, and proceedings while it is active. In addition, they said this allows them to focus on resolving the liquidity situation without worrying about potential lawsuits or adverse actions. They explained that a moratorium does not involve liquidation, which keeps its status almost unchanged.

Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Thailand-based Zipmex Company Limited, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd are among the firms seeking relief.

Singapore law stipulates that those companies receive an automatic moratorium for 30 days or until the court decides what to do.

More Crypto Companies Experience Financial Stress

The bearish market has affected crypto companies, which have had to suspend withdrawals, face liquidity problems, or declare bankruptcy.

The primary victims of the crypto winter have been Celsius Network and Three Arrows Capital. It is also relevant to mention that Terraform Labs now faces serious legal trouble.

Cryptocurrency companies will adopt a more cautious approach as the bearish market has affected several firms associated with each other.

Although the cryptocurrency market has experienced similar problems before, it is painful at the current level of adoption and scale.

The Outlook of the Crypto Market amid the Current Bearish Trend

The bearish market has destroyed any hope of reaching new highs in the short term, but not all is gloomy regarding cryptocurrencies.

The general sentiment indicates perseverance, as institutions and retail investors remain optimistic about the medium to long-term future. There might be difficulties in the short term, mainly stemming from corrections and new regulations on cryptocurrencies.

According to Boston Consulting Group, there might be around one billion cryptocurrency users by 2030. The firm stated the crypto market resembles the Internet of the early 1990s, which means it can grow further.

Cryptocurrencies play an increasingly relevant role in the economy, evident in the efforts by many governments to regulate them. Amid the current bearish trend, many exchanges like Zipmex have filed for bankruptcy, as they cannot respond to their users.

Meanwhile, Bitcoin (BTC) is trading at around USD 23,978 and accumulated a 4.1% gain over the last 24 hours. Its daily trading volume is above USD 50.19 billion, while its market capitalization is about USD 458.15 billion, according to CoinGecko.

By Alexander Salazar

The Federal Reserve Increases Interest Rates Once again, this Time by 0.75%

Jenson Nunez
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The Federal Reserve Increases Interest Rates Once again, this Time by 0.75%

The Federal Reserve increased the interest rate by 75% points. Federal Reserve representative Jerome Powell explained that he does not think the U.S. is facing a recession. The Fed intends to return to the 2% target.

The United States Federal Reserve has increased its interest rates once again to stand firm in its combat against inflation. The 0.75% point hike leads the borrowing rate to 2.25–2.50%.

The United States Federal Reserve has once again elevated its interest rates by 0.75%. The central bank highlighted the weakening information regarding the economy as the main reason for the increase; its representative explained that it would stand firm to fight against this crescent inflation.

The United States of America is currently facing its worst inflation in decades, as global macroeconomic trends do not look optimistic for many countries across the globe. The U.S. is not the only nation dealing with high inflation; many countries are currently struggling to keep the problem in check.

Jerome Powell, The Federal Reserve Official, said that it doesn’t make sense that the U.S. would be facing such a recession and that he does not think that the U.S. is under a recession. The borrowing rates are now between 2.25% and 2.50%.

Powell also explained that another ramble could happen in September while The central bank highlighted that the recent index of spending and production had diminished.

However, job gains remained strong in recent months, and the unemployment rate has been low. Inflation remains at a high peak, reflecting supply and demand disparities linked to the pandemic, higher food and energy costs, and comprehensive price pressures.

According to The Federal Reserve, there is a focus on getting back to the 2% goal. In the meantime, consumers and markets will have to deal with uncertain times.

Consumers will Have to Deal with the Pressure Generated by the Impact

Meanwhile, consumer costs have skyrocketed this year. The U.S. Consumer Price Index approached 8.55% in March 2022, and this increase got observed across many other regions.

FTX CEO Sam-Bankman Fried has also highlighted that the most prominent reason for the crypto market Crashdown was the interest rate fluctuation. However, the businessman did not criticize the Fed and said, in their defense, that they were having a difficult time. He explained that The Fed is not alone in this action, as other entities with legal authority have done the same thing, including India.

Crypto as a Hedge

Crypto has long been described as a shield to protect economies against inflation. It is the reason why many large entities have invested in those assets. Many entities keep investing in those assets despite the ups and downs the market has faced.

But over the past two years, the narrative has weakened, as crypto and the comprehensive global markets have begun to present a more solid correlation. Some investors have turned away from more volatile assets like crypto as they intend to stay with safer currencies in uncertain times.

By: Jenson Nuñez

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