Binance.US Removed Fees on Bitcoin Transactions

Jenson Nunez
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The Binance.US exchange eradicated spot trading fees on Bitcoin. Exchange users can exchange bitcoins for US dollars tether and other stable coins without extra fees.

The exchange Binance.US, the US subsidiary of Binance, highlighted it is waiving fees on spot Bitcoin trading for all of its customers.

Binance.US’s new decision effectively allows customers to exchange spot bitcoins for US dollars, Tether, USD Coin, and Binance USD, or vice versa, without paying spot trading fees.

Binance.US published it in a press release, and on social networks, many US media outlets revealed the news to the public.

Zero Charge

Binance.US explained that it offers, perhaps, some of the lowest trading fees in the crypto space and charged a 0.1% spot trading fee on less than $50,000 of the trading volume. The entity says it will now not charge any fee per transaction at all.

The entity also expressed that they see this decision as an opportunity to improve the way fees are approached in the industry, increase accessibility to digital assets, and boost the market and customers in such a difficult time.

Attract Investors

According to The Wall Street Journal, it is the latest sign of how entities, both traditional brokerage houses, and digital startups, offer discounts or get rid of fees to awaken the interest of individual investors.

To compensate for lesser transaction fees, some brokerages took action to migrate customers’ uninvested cash from brokerage accounts to banking products. Others have directed customer orders to e-commerce entities called market makers in a procedure described as pay-per-order flow.

Binance.US, revealed in September 2019, is one of the most prominent exchanges by trading volume, according to data provided by CoinGecko. In April 2022, the entity achieved over $200 million in a seed round valued at $4.5 billion.

On the other hand, this event comes as Bitcoin and major cryptocurrencies are in a clearly rude market, and various exchanges, including Binance.US rivals Coinbase and Gemini, had to implement measures to fire part of their staff and face the difficulties generated by this period. It is unclear at the moment if Binance will also go in that direction or if it will keep maintaining the same plant with the same staff.

It is worth noting that investors impacted by the Terra Crashdown threatened to file a legal complaint against Binance.US for misleading information to sell the coin before its fall.

By: Jenson Nuñez

Mike McGlone Considers that Bitcoin Could Recover Better than the Stock Market

Alexander Salazar
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Mike McGlone Considers that Bitcoin Could Recover Better than the Stock Market

After the price of BTC rose to USD 21,000, analysts made bullish predictions for the second half of 2022. Mauricio Bartolomeo believes that the Bitcoin bearish market could end if the Fed stops raising interest rates.

The price of Bitcoin (BTC) recently exceeded the USD 21,000 level, allowing buyers to make profits over the weekend. That happened after it dropped to USD 17,600, its lowest point of the year. That optimistic news led some long-term bullish predictions to emerge within the crypto market.

Amid a wave of bearish forecasts, renowned commodity analyst Mike McGlone brought some hope to the Bitcoin market. He said the fall in the price of risk assets in the first half of 2022 is raising inflation dramatically.

The expert knows this may lead pre-COVID-19 devaluation forces to re-emerge in the second half of 2022. Therefore, he thinks the primary beneficiaries may be Bitcoin, gold, and long US Treasury bonds.

McGlone explained that there might be a maturation of the Bitcoin market as the stock market is in the red. He finds that the long-term volatility of stock indexes, like the Nasdaq 100 Index, is higher than with Bitcoin.

He recognizes that Bitcoin is in adulthood as he predicts a turbulent stage for stocks, bonds, and commodities. Likewise, he attributes the current bearish trend of the pioneering cryptocurrency to a typical drawdown.

It is not the first time Bitcoin has suffered sharp depreciation of up to 93% before overcoming that losing streak with an all-time high. This month marked the 11th anniversary of the first considerable rise in its price, which ended up with a terrible collapse. Although that drop wiped out almost all the growth it had obtained, the cryptocurrency managed to recover and exceed that value.

Bullish Predictions Re-Emerge as Bitcoin Slightly Recovers

Mike McGlone recently anticipated that the US Federal Reserve (Fed) might not raise interest rates any further. Considering that the 75-point increase announced would be the last, the fall in the price of risk assets would complete the economic adjustment.

Likewise, the co-funder of Ledn, Mauricio Di Bartolomeo, expressed that he believes the bearish market of Bitcoin could end in three months. The businessman agrees with McGlone in that the Fed should first stop raising interest rates, adding to the forecasts of the analyst.

According to McGlone, the economic situation in 2022 resembles the 1929 crash, the most catastrophic in history. He said it characterized itself by having aggressive rate hikes despite the drop in the stock market, global GDP, and consumer confidence.

The well-known crypto market analyst TechDev also made a bullish prediction about Bitcoin. He commented that the direction of the cryptocurrency has potential symmetry with its behavior before the considerable rise in 2013. That scenario aims to sweep away the uncertainty in the market, where extreme fear remains.

Bitcoin is trading at around USD 20,097 and has accumulated a 6.1% loss over the last 24 hours. While its daily trading volume is above USD 23.38 billion, its market capitalization is about USD 383.69 billion, according to CoinGecko.

By Alexander Salazar

The Recent BIS Report States Bitcoin Cannot Support the Financial System

Alexander Salazar
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For the BIS, Bitcoin has severe structural limitations that prevent them from achieving efficiency, stability, and integrity. They allege that decentralized cryptocurrencies facilitate illicit activities despite studies showing that hackers prefer fiat currencies.

The collapse of Terra and the Bitcoin (BTC) bearish market has led regulators to criticize the ecosystem more than ever before. An example of that situation is the new report from the Bank for International Settlements (BIS).

According to the above international financial institution, decentralized cryptocurrencies and DeFi have severe structural limitations. They say this prevents them from achieving efficiency, stability and integrity as an adequate monetary system.

The BIS further suggests that decentralized cryptocurrencies lack a nominal anchor, which they try to import, imperfectly, through stablecoins. They argue that central bank digital currencies (CBDC) offer a more stable solution for a future monetary system.

The financial institution thinks that CBDCs allow central banks to be in a position to provide the core of the financial system. They believe the private sector can adopt those currencies for their programmability, composability, and tokenization.

The report indicates that 90% of recently surveyed central banks are working on their CBDCs. The study is in line with the promise by the BIS to promote the use of CBDCs for 2022.

The bank stated the Innovation Hub, seeking to identify trends in financial technologies relevant to central banks, would also launch CBDC projects. In addition, they plan to establish next-generation payment systems and DeFi.

It Is Necessary to Close Exchanges Not Meeting Some Standards

The BIS also criticized platforms offering services with Bitcoin and other cryptocurrencies, specifically those hiding the identity of users.

They also suggest fining or closing those not complying with the know-your-customer (KYC) rule and the Financial Action Task Force (FATF) requirements.

The financial institution insists that decentralized cryptocurrencies facilitate money laundering, tax evasion, and terrorism financing. However, various studies have shown that hackers prefer to launder money with fiat currencies and altcoins rather than with Bitcoin.

Cybercriminals have laundered over USD 33 billion worth of cryptocurrencies since 2017, moving much through centralized exchanges. According to UN data, they launder between USD 800 billion and USD 2 trillion in fiat currencies, about 5% of the world GDP.

The BIS Acknowledges that Cryptocurrencies Have Technological Possibilities

According to the BIS, cryptocurrencies offer promising technological possibilities but do not meet the high-level objectives of a digital monetary system.

The bank believes that CBDCs and new digital technologies must support the future of the financial system.

Their report seems to attack Bitcoin and other cryptocurrencies due to the unavoidable interest it arouses among retail and institutional investors.

In May, they talked about the impact of the exponential expansion of the Bitcoin industry on the financial sector, particularly banks.

Bitcoin is trading at around USD 20,107 and has accumulated a 3.7% loss over the last 24 hours. While its daily trading volume is above USD 25.22 billion, its market capitalization is about USD 383.54 billion, according to CoinGecko.

By Alexander Salazar

Governments Should Regulate Cryptocurrencies to Protect Bitcoin, According to Michael Saylor

Alexander Salazar
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Governments Should Regulate Cryptocurrencies to Protect Bitcoin, According to Michael Saylor

The CEO of MicroStrategy views the nearly 19,000 cryptocurrencies and digital tokens in circulation as not comparable to Bitcoin. He said that the general public should not buy unregistered securities from owners that may be gone in the next few days.

Michael Saylor, one of the biggest Bitcoin hoarders, recently asked governments to regulate the dangerous and immature practices of the crypto industry. He believes those improper practices represent a parade of horrors bringing unfair consequences on the price of Bitcoin.

The CEO of business intelligence firm MicroStrategy has talked about the nearly 19,000 cryptocurrencies and digital tokens in circulation. He considers it necessary to view them as unregistered securities not comparable to a tangible product like Bitcoin.

Along with NorthmanTrader founder Sven Henrich, Saylor said Bitcoin was in a crossfire amid a falling crypto market. He explained that this happens because Bitcoin often works as collateral in margin loans for less developed tokens.

Saylor noted that there are USD 400 billion worth of opaque, unrecorded securities without full disclosure, cross-collateralized with Bitcoin. He added that institutions do not touch Bitcoin due to the sludge from all unregistered securities.

Well-known economist Nouriel Roubini was among those that predicted the global financial crisis of 2008. He referred to cryptocurrencies as a Ponzi scheme collapsing under its own weight.

According to Saylor, the intervention of governments in cryptocurrencies could protect investors from a possible further collapse of Bitcoin. It is relevant to know that MicroStrategy has invested more than USD 3.97 billion over the past two years, accumulating 129,218 BTC.

There Is a Parade of Horrors in the Crypto Market

Saylor commented that they would all fall within ten years if he listed the parade of horrors in the crypto market. He considers that strong companies like Apple would see greater volatility in their share price without regulations preventing wash trading.

Besides, the CEO of MicroStrategy pointed to cryptocurrency hedge fund Three Arrows Capital (3AC) as an obstacle to the adoption of digital assets. He said that the general public should not buy unregistered securities from wild owners that may be gone in the next few days.

The crypto fund 3AC might collapse due to its unsuccessful bet on the value of Terra (LUNA). That governance token backed the recently collapsed stablecoin TerraUSD.

During a liquidity crisis, crypto lending company Celsius Network recently suspended all withdrawals and transfers. That kind of financial cryptocurrency corralito led to the collapse of BTC to lows not seen since December 2020.

The Bitcoin holdings of MicroStrategy are now worth about USD 2.647 million, representing losses of over USD 1.2 billion. In 2020, Saylor turned his firm into a bet on the future price of Bitcoin. However, the value of the cryptocurrency has recently dropped below USD 18,000.

Bitcoin is trading at around USD 20,285 and has accumulated a 1% loss over the last 24 hours. While its daily trading volume is above USD 25.59 billion, its market capitalization is about USD 386.76 billion, according to CoinGecko.

By Alexander Salazar

Crypto Mining Firm Bitfarms Earned $62 Million in Bitcoin to Minimize Its Debt

Jenson Nunez
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Crypto Mining Firm Bitfarms Earned $62 Million in Bitcoin to Minimize Its Debt

The miner sold 3,000 BTC, almost half of its treasury of the flagship digital asset, as part of a plan to re-organize its reserves amid declining prices.

Amid price decay in the market, crypto mining entity Bitfarms decided to restructure its Bitcoin holding strategy to improve its liquidity and reduce debt.

The Canadian entity, listed on the Toronto Stock Exchange, highlighted last week that it got rid of at least 3,000 bitcoins (BTC) for approximately $62 million to support part of a debt collateralized in the digital currency. The sale accounted for nearly half of Bitfarms’ total housed funds in Bitcoin, which now stands at 3,349 BTC.

In a statement launched Tuesday, Bitfarms highlighted that the proceeds generated from the sale served as an instrument to increase its liquidity while also giving the miner the possibility to draw down a Bitcoin-backed line of credit from Galaxy Digital to $38 million.

The Toronto-based miner also assured the outlets that the strategy led its corporate liquidity to $100 million and closed a $37 million equipment financing agreement with NYDIG. Bitfarms revealed this news last week in a statement, which got revealed through its official Twitter.

According to information provided by CoinDesk last week, the mining entity had reported the sale of 1,500 BTC to minimize its debt. This week’s announcement confirmed to the outlets that Bitfarms just chose to double this sum, setting a significant reduction over its Bitcoin holdings. According to the report, the company generates a standard of 14 BTC.

Bitfarms still Believes Bitcoin will Rise in the Future

The news arrived at a moment of extraordinary pressure for Bitcoin miners and holders, who are afraid of a sudden Crashdown the markets experience.

The flagship cryptocurrency plunged below $20,000 last week, more than 70% below its all-time price high in November. The situation appears to be the same for the altcoins, as the global capitalization of digital assets has shrunk to less than $1 trillion after approaching at least $3 trillion last year.

According to CoinDesk, the drop in the price of Bitcoin led miners’ profit margins to fall after many miners went heavily into debt to support their financial activities.

According to CoinDesk, Bitfarms was one of the miners with a plan to keep its daily bitcoin output balanced, applying loans and stock offerings to set an expansive activity and keep daily costs under the radar.

In April, when Bitcoin was trading at almost double its current cost, the company’s director of mining, Ben Gagnon, spoke about a more confident scenario to experience an increase in the flagship digital asset.

On the other hand, Bitfarms shows optimism about BTC price appreciation in the long term and that the change in holding strategy allows the entity to keep the integrity of the business while they keep growing along with the fluctuations in the market.

By: Jenson Nuñez

Cardano Experiences a Delay in Vasil Update Due to Outstanding Bugs

Jenson Nunez
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Cardano Experiences a Delay in Vasil Update Due to Outstanding Bugs

Cardano developers postponed the Vasil hard fork due to outstanding bugs, although they highlighted they are not serious.

Cardano is not yet prepared to show its highly anticipated Vasil update because of various struggles that need a rapid solution.

The development company behind Cardano, Input-Output (IOG), highlighted that it postponed the rollout of the Vasil hard fork, which got initially intended to get carried out on June 29 on the Cardano main net.

Cardano said that after some consideration, they agreed not to send the hard fork update proposal to the test net to gain more space and time for testing. IOG further explained that the delay happened due to seven bugs still on hold, although it did not rate any as critical.

The developers highlighted that some outstanding items got required to assure that everything was working and that they would need a few more days to test the update.

According to the new tentative schedule, a hard fork in the test net could occur in late June. For its part, the final update of Vasil on the Cardano main net could arrive in the last week of July.

Vasil: the Long-awaited Step into the Basho Era

Vasil is an update expected to increase Cardano scaling skills. It got described as one of the most significant updates for the network since the Alonzo fork in September of last year, as it will usher in the new “Basho” era.

As Crypto Briefing notes, Vasil arrived as part of Cardano’s long-planned transition from the so-called Goguen era to the Basho era, designated as an era of evolution, upgraded network scalability, and improved interoperability.

While previous periods focused on decentralization and introducing smart contract capabilities to the network, Basho’s goal is to upgrade the underlying performance of Cardano to back up decentralized finance (DeFi) applications.

That media outlet also explained that the Vasil hard fork would implement four essential network improvements: CIP31, CIP32, CIP33, and CIP40. These updates intend to check the logic behind some of Cardano Plutus scripts. Together, they would try to minimize the size of transactions, thus increasing network performance and minimizing transaction fees.

The fork would also improve the concurrency flaw that impacted the scalability of DeFi applications on Cardano. A hard fork is a network improvement that causes the blockchains to validate and generate new blocks with new default policies, leaving the old ones behind.

The Actors of the Ecosystem Would Take Part in the Improvement

In its statement on Monday, IOG explained that releasing the new update would require significant coordination between stakeholders. The final decision to fork the Cardano main net will happen jointly with the decentralized application (dApp) development community.

Criteria got evaluated to trigger the Vasil fork resolving any critical flaws in testing and leading tests for the software. It also updates the broader developer community to give enough space and time for renewing the testing procedure in their dApps before the hard fork.

By: Jenson Nuñez

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