US Treasury Secretary Janet Yellen Calls for Crypto Regulation as Very Risky Option for Retirees

Jenson Nunez
-
0
US Treasury Secretary Janet Yellen Calls for Crypto Regulation as Very Risky Option for Retirees

Janet Yellen advocates the regulation of cryptocurrencies, saying they are a risky alternative for retirement savings.

The Secretary of the Treasury of the United States of America, Janet Yellen, always remains updated regarding the crypto world and the news that it launches to protect the economy of her nation.

In May, she highlighted that the collapse of Terra, which severely impacted the rest of the crypto environment, did not suppose a risk for the US. She had also stated that this Crashdown was a warning to strengthen the regulations over stable coins.

The senator also included another problem regarding digital assets linked to their inclusion in American retirement strategies.

Related to this, Yellen highlighted that digital assets might be a risky alternative to include in the retirement plans of average savers and that Congress addressing the danger would be reasonable.

Yellen answered a question about a statement revealed by Boston-based Fidelity Investments in April by saying it would include a crypto feature in the retirement plans it controls. The Department of Labor has already made clear its opposition to the measure.

In this regard, Yellen highlighted that it would be advantageous for Congress to set up regulative policies and determine which assets could get addressed in tax-advantaged retirement plans, such as 401(k) plans.

On the other hand, Fidelity revealed in April its intention to bring 401(k) with Bitcoin later this year. Savings programs got strongly regulated, so the Treasury secretary and its stance on the new strategy carried out by Fidelity is a common thing. The US Department of Labor has also released a warning statement against holding digital assets in 401(k) accounts, signaling its opposition.

Senator Cynthia Lummis recently argued whether Bitcoin should get added to the 401(k) retirement plan, to which some US employees give a portion of their salaries to their accounts to save funds intended for retirement.

 In this regard, she expressed that she thinks that the rejective stance of the Department of Labor about the inclusion of digital assets in retirement savings could be a wrongful move. She debated that Bitcoin could serve as part of a diversified retirement asset allocation and as a house of value.

A smart investment strategy, according to Lummis, mixes currencies that generate short-term profits as well as assets that can keep funds from depreciating. According to her, Bitcoin may be one of the latter, as BTC “really shines” as a store of value.

By: Jenson Nuñez

The Economy of El Salvador is on a Tightrope, and Bitcoin does not Help

Jenson Nunez
-
0
The Economy of El Salvador is on a Tightrope, and Bitcoin does not Help

El Salvador would stop bitcoin bonuses due to its economic struggles. The bitcoin national reserve funds are facing several losses.

Almost a year after El Salvador accepted bitcoin as legal tender, the nation achieved a slow economic evolution, with a fiscal deficit and at least 90% of gross domestic product (GDP) in public debt. This information arrived according to the newsletter of Frank Music, a member of the London Institute School of Public Policy, LSE.

The report highlights that the sovereign bond of USD 800 million will mature in January 2023, which might include a default probability of 48 %. On the other hand, international financial markets think that there is an opportunity that El Salvador would stop payments for the next eight months, after a year of bitcoin acceptance in the Latin American nation.

The scenario in El Salvador became dangerous to the extent that Salvadorans even house their foreign funds in safe entities based in the United States of America instead of in local banks. These large outflows of cash to the US will boost the liquidity of the national entities of the Central American nation, which will lead to a total stage of insolvency.

The bulletin ends by presenting that, although the situation might be complicated for Salvadorans, there is a chance that the national leaders would pay the debt to keep maintaining international financing. According to Muci’s perspective, the bankruptcy of the country would get circumvented by the presidency, especially considering that the elections are near again and the adoption of Bitcoin ended up becoming a significant improvement for the nation. However, this does not solve the subsequent uncertainty in which the country’s population got trapped.

Bitcoin did not Improve the Salvadoran Economy

Since the acceptance of bitcoin as legal tender in El Salvador, the nation revealed that inflation crumbled slightly in the last month. The population still thinks this policy did not bring enough advantages to solve the economic problems of Salvadoran citizens.

In addition, the historical maximum price of USD 67,800 is now worth USD 30,000, which is 55.7% less than a few months ago. These figures demonstrate that Bitcoin is no longer an option for the nation and is now a current problem for the administration.

Instead of helping to bring advantages to the local economy, the Salvadoran government’s purchases of bitcoin, at a time when its price was at its highest, currently brought a wave of losses in the national reserve of the first digital asset. El Salvador counts 2,301 bitcoins in its reserve, which would be at least 69 million US dollars or more.

Not Only El Salvador is Falling Down

The World Bank updated its report on Global Economic Perspectives and sent the global growth forecast down to 2.9%, that is, 1.2% less than what was projected in January when it positioned it at 4.1%. This reduction takes effect due to the impact of the more than 100 days that Russia was attacking Ukraine, which seriously damaged the global economy with an increase in the price of raw materials.

By: Jenson Nuñez

Despite Constant Outages on the Network, the Price of Solana Holds Up

Alexander Salazar
-
0
Despite Constant Outages on the Network, the Price of Solana Holds Up

Unless the price breaks through the descending wedge pattern to the upside, it is not convenient to trust too much. There might be a respite before the value of SOL drops again to a support zone of around USD 22.

The price action of Solana (SOL) could be very pessimistic if a negative catalyst adds to the general bearish sentiment in the crypto market. However, it has been holding up quite a bit despite the constant outages on the network.

SOL is trading at around USD 37.46 and has accumulated a 5.3% loss over the last 24 hours.  While its daily trading volume is above USD 1.16 billion, its market capitalization is about USD 12.81 billion. It occupies 9th place in the cryptocurrency ranking, according to CoinGecko.

That altcoin has been one of the most successful projects in the crypto ecosystem for the last two years. However, the continuous interruptions on the network have caused uncertainty among investors.

The most recent outage on the Solana network, which lasted around four and a half hours, occurred on June 1st. The biggest one, taking place in January, lasted about 18 hours.

Even though the price reacted to the downside due to that development, the bulls have recently defended that coin.

Daily Technical Analysis of the Price of Solana

The daily SOL/USDT graph shows that the price has remained locked in a descending wedge pattern. That chart figure indicates that there might be a pullback.

The prediction of the figure is more likely to be correct as it formed above relevant support around USD 40.

The RSI indicates a bullish divergence between the price chart and the indicator to support that view.

Since the previous trend is bearish, it is not time to trust too much unless the price breaks through the above figure to the upside. For that reason, the target of the bulls is to exceed the barrier at USD 42.29.

If the price lost support at USD 37.37, it would delay a possible short-term rally.

A Rally Would Only Be a Respite before Dropping Again

After over two months of continuous decline, the daily chart shows signs of bearish exhaustion, suggesting that a rally might occur soon.

However, a dominant medium-term bearish strength could still exert pressure on the price. It seems there will be a respite before the value of SOL drops again. The following relevant support zone is around USD 22.

It is necessary to remember that the trend in the price remains bullish in the long term. The drop over the last few months is just a correction in that direction. There should not be further strong selling with over 85% retracement from the all-time high.

The price of SOL might start a rally in the short term, which will make it more attractive. Even though the Solana network has had continuous outages, the crypto asset has remained strong. However, it is convenient to research before investing in this or another project to avoid losses.

By Alexander Salazar

After Chainlink Releases a New Road Map, the Price of LINK Rises Sharply

Alexander Salazar
-
0
After Chainlink Releases a New Road Map, the Price of LINK Rises Sharply

The price maintains the 8-day EMA and 18-day crossed to the upside, but the 200-period SMA is still far away. Since the recent rise in the price of LINK is still not relevant enough, it seems a necessary respite before another drop.

LINK recently broke out of the short-term bearish trend after Chainlink released a new road map. That raised optimism among investors and the volatile rally in the price.

LINK is trading at around USD 9.20 and has accumulated a 32.5% gain over the last seven days. While its daily trading volume is above USD 885.66 million, its market capitalization is about USD 4.30 billion. It occupies 21st place in the cryptocurrency ranking, according to CoinGecko.

The cryptocurrency Chainlink (LINK) aims to incentivize node operators rather than make everyday purchases. Those network participants in charge of securely transferring data to and from blockchains receive their payment in LINK.

There are currently 467,009,550 circulating Chainlink coins out of a maximum supply of 1,000,000,000. The same as happens with Bitcoin, LINK has a limited supply that guarantees its relative scarcity.

Technical Analysis of the Rise in the Price of LINK

The price of LINK overcame the short-term bearish trend after the positive catalyst caused a sharp rise. It is possible to expect higher gains within the coming hours/days.

Following the current momentum, the price breaks through the 8-day EMA and 18-day to the upside. However, the 200-period SMA is still far from the price, a sign of significant medium-term bearish strength.

LINK Needs to Make Significantly Higher Gains

The weekly chart shows that the recent rise in the price of LINK is still not relevant enough. It seems to be a necessary respite before it drops again.

Since early May 2021, the price of LINK has continuously reached lower lows. Besides, it will take long before there is a change in that direction.

However, the price holds relevant support at USD 6.51, an excellent point to expect a reversal after the sharp drop. However, it is still too early to confirm that view.

There may probably be a broader rally in the value of LINK, followed by a new drop. It would be necessary to monitor the price if it broke through the above support after falling again. On the contrary, the bulls would start to seek to reach a new higher low.

Performance of the Price of LINK against Bitcoin

Cryptocurrencies play a relevant role in the economy, evident in the growing number of investors on exchanges. In the case of LINK, its price has been gaining ground over the last week, making it more attractive.

While Bitcoin has only accumulated a 0.9% gain, the price of LINK has increased by 32.5% over the last week. That way, the latter has become the best-performing crypto asset on the top 50 list.

However, it is convenient to research before investing in any cryptocurrency to reduce the probability of losing money. Knowing how the price has evolved over some time will allow making more accurate decisions.

By Alexander Salazar

Anonymous Hacker Receives a Restraining Order on an NFT

Audy Castañeda
-
0
Anonymous Hacker Receives a Restraining Order on an NFT

International law firm Holland & Knight served a defendant in a hacking case with an NFT created and submitted by their asset recovery team.

The law firms Holland & Knight and Bluestone have served a defendant in a hacking case with a non-fungible token (NFT) temporary restraining order, the first known legal process to be facilitated by a digital asset.

The so-called “service token” or “service NFT” was given to an unnamed defendant in a hack case involving LCX, a Liechtenstein-based cryptocurrency exchange that was hacked in January for nearly $8 million. As Cointelegraph reported at the time, the attack compromised the platform’s online wallets, resulting in the loss of Ether (ETH), USD Coin (USDC), and other crypto assets.

Events Unfolded

On Twitter, Holland & Knight announced that their firm “has become the first law firm to serve a defendant by #NFT, which was created and airdropped by our #AssetRecovery Team.”

LCX reported on June 7 that approximately 60% of the stolen funds are now frozen with open investigations in Liechtenstein, Ireland, Spain, and the United States. Approximately $1.3 million in USDC was frozen by the Center Consortium, an organization founded by USDC issuer Circle and Coinbase, based on an injunction from the New York Supreme Court.

LCX identified in recent days the compromise of one of its hot wallets after temporarily suspending all deposits and withdrawals on the platform.

The hack was first identified by PeckShield, a Blockchain security company, based on the suspicious transfer of ERC-20 tokens from LXC to an unknown Ethereum wallet.

LCX said the funds were laundered through cryptocurrency mixer Tornado Cash, but were later traced through “forensic algorithmic analysis.” The analysis also allowed the company to identify the attacker’s wallets.

Monty Metzger, CEO and Founder at LCX posted on Twitter that, “You’ve been served! #subpoena. About 1 hour ago, @LCX’s lawyers served a “Service NFT” to a subject address. Approx. 1.3M $USDC frozen on chain. Additional details and statement by LCX will be published within 24h.”

In light of these findings, Holland & Knight and Bluestone, the law firms representing LCX, sent the anonymous defendant a temporary restraining order that was issued on-chain using an NFT. This method “was approved by the New York Supreme Court and is an example of how innovation can provide legitimacy and transparency to a market that some believe is ungovernable,” LCX said.

Further Actions towards Security Concerns

LCX has confirmed that it will take security measures to protect other wallets and assets, claiming that, “during this difficult period, we greatly appreciate the support of our customers, other exchanges, security experts, and the broader crypto community.”

A recent report by security platform ImmuneFi found that cryptocurrency companies incurred losses of more than $10.2 billion in 2021 due to hacks, scams, and other malicious activities. This points to the need to take action against hackers so that their illicit operations are stopped, or at least, reduced.

By Audy Castaneda

“The Metaverse will Empower Human Beings,” Declares Qatar Airways

Audy Castañeda
-
0
“The Metaverse will Empower Human Beings,” Declares Qatar Airways

Qatar Airways plans to launch NFTs and allow the purchase of tickets in the metaverse for physical flights.

Qatar Airways announced on Tuesday the launch of its first metaverse experience, QVerse. This virtual reality platform allows interested parties to virtually visit and navigate through the Premium check-in area of ​​Hamad International Airport (HIA).

However, according to the company’s statements to Cointelegraph, QVerse is nothing more than the company’s first foray into the metaverse.

Qatar Airways Views on Metaverse

The company said it intends to expand its virtual environment initiatives and believes the metaverse is part of the future of human relations.

“We believe that the future is virtual. The metaverse will empower human beings, expand their horizons and break their limits by defying the most basic methods that were once limitations.”

“As physical limits begin to be challenged by the metaverse on an ever-increasing scale, it is exciting to equip technology that allows all travel enthusiasts to enjoy a unique and immersive experience of our award-winning products and services,” said Qatar Airways Group CEO, H.E. Akbar Al Baker, earlier in April.

On Twitter, @qatarairways proudly asked, “Have you got your ticket to the #QatarAirways #QVerse?”

According to the company, its entry into the metaverse reflects its passengers’ desire for “immersive content that can empower their decision-making before buying a ticket, and they are often eager to discover the plane they will fly on.”

“That’s why we believe QVerse will change the way passengers make their purchasing decisions,” company representatives said.

More Plans Lie Ahead

The company has also highlighted that it plans to add more functionality, places, and interactions to its metaverse platform, and intends to make the experience sociable and accessible through the Oculus Quest VR platform.

It also intends to include the purchase of physical flight tickets and the choice of seats on real planes through the metaverse. The company noted that actions on metaverse gateways such as Decentraland and The Sandbox could occur in the future.

“We are currently focusing on building our metaverse rather than investing in Decentraland or Sandbox. But we are not ruling out this plan. We are continuing to explore how we can develop this area and strategically incorporate NFTs into QVerse.”

Last year, Qatar Airways became the first airline in the Middle East to adopt the IATA Blockchain “digital passport”, in collaboration with the International Air Transport Association (IATA). Recently, the US Air Force also announced their entry into the metaverse and filed a trademark application for an initiative called SpaceVerse. Although details of the application and what the SpaceVerse is are scarce, the application highlights that it will be a virtual reality training, testing, and operations environment for the US defense agency.

By Audy Castaneda

1...769770771...1,654Page 770 of 1,654