Cryptocurrencies, the New Dotcom Bubble: There Are 19,000 Tokens and Thousands of them Bound to Disappear

Audy Castañeda
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Cryptocurrencies, the New Dotcom Bubble: There Are 19,000 Tokens and Thousands of them Bound to Disappear

There is a glut of cryptocurrencies and blockchain platforms. Bitcoin, the “canary in the coal mine” that warns of the collapse.

It seems that the cryptocurrency crash of a few weeks ago is just the beginning. There are currently more than 19,000 cryptocurrencies and thousands of them are likely to crash in the coming years, which will be accompanied by a reduction in the number of blockchain platforms.

Experts point to a glut of digital tokens and blockchain platforms as one of the main causes of what happened to the stablecoin terra and its associated digital token Luna, as well as the pressure on the cryptocurrency market. An example of this is that bitcoin has lost more than 50% of its historical maximum reached in November of last year. Ether, meanwhile, plummeted last week below $2,000, a level it has not yet managed to leave behind. However, the worst part is being borne by a whole series of cryptocurrencies that are in the shadow of bitcoin and that have dropped more than 80% from their all-time highs.

A Confusing Future for Cryptocurrencies

This excess of digital tokens and blockchain platforms is “confusing users”, which in turn is bringing “certain risks” for them, Bertrand Pérez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos. from last week. Pérez compares the current cryptocurrency market to the dotcom bubble, when there were many companies that were a “scam” and “did not add any value.”

For his part, Brad Garlinghouse, CEO of Ripple, believes that only a “dozens” of cryptocurrencies will survive this situation and will manage to remain in the future. “In the fiat world there are about 180 currencies,” so “are 19,000 new currencies necessary?” asks Garlinghouse.

Months before the terra crash, Guggenheim chief investment officer Scott Minerd already said that “70% of cryptocurrencies are junk and will disappear.” More recently, he told CNBC that bitcoin could sink to $8,000 because “when it breaks below $30,000 on a consistent basis, that’s the ultimate bottom.” According to him, this cryptocurrency is the “canary in the coal mine”, which warns of the collapse of this market.

However, Minerd believes that bitcoin and ether will be among the few that will survive the collapse of cryptocurrencies. Furthermore, it is still waiting for an even more significant token to emerge, as it did when the dot-com bubble burst.

Terra Tries again with Luna

The creators of terra, with the Korean Do Kwon at the helm, have approved relaunching the project with certain changes, with the aim of seeing if they achieve a different result this time.

The plan is to put its associated token, Luna, back into circulation from scratch. The old version, the collapse version, will be renamed “Luna Classic” and, in practice, will have no value.

What many people are wondering is what happened to the $3.2 billion of reserves in bitcoin and other cryptocurrencies that Kwon had accumulated from the investments of its users, and which it had promised to use to defend the stability of terra against speculative attacks.

By Audy Castaneda

The Internet Computer (ICP) Token Recovers from a Steep Drop of Nearly 99%

Alexander Salazar
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The Internet Computer (ICP) Token Recovers from a Steep Drop of Nearly 99%

Although the recent gains of ICP seem to lead to a significant pullback, the bullish volume is still not decisive enough. New momentum might begin shortly before the price rises to USD 14.28, but the confirmation of a significant rally would be necessary.

In 2021, one of the cryptocurrencies that surprised the community the most was Internet Computer (ICP). It occupied 5th place in the crypto market ranking just one day after its launch.

That cryptocurrency appears to have died after losing around 98.89% from its all-time high of USD 750.53. However, a recent recovery seems to offer an opportunity to traders.

ICP is trading at around USD 7.62 and has accumulated a 9.9% gain over the last seven days. While its daily trading volume is above USD 126.53 million, its market capitalization is about USD 1.78 billion. It occupies 39th place in the cryptocurrency ranking, according to CoinGecko.

It is relevant to know Internet Computer is a blockchain project launched by the non-profit organization DFINITY Foundation in May 2021. It seeks to push the boundaries of Internet functionality and encourage the development of smart contracts.

A team of cryptocurrency enthusiasts helps support smart contracts and scalability while maintaining security. However, its roadmap, which requires more than ten years to develop fully, has sharply curtailed interest among short-term investors.

Technical Analysis of the Price of Internet Computer

After arriving into the market with a very high price and capitalization, its initial investors took profits. That led to a considerable drop, which has continued without showing any signs of exhaustion.

However, the sellers have lost strength with each low they reach, which is evident in considerable divergence between the price chart and the RSI.

At least one major rally may occur soon, representing an excellent opportunity for short-term speculators.

The recent gains seem to be leading to a significant pullback, but the bullish volume is still little decisive.

The price maintains the 8-week EMA and 18-week SMA crossed to the downside. Those indicators may work as dynamic resistances if the price seekd to move to the upside.

Before thinking of a trend reversal, Internet Computer (ICP) should reach increasingly high lows in the weekly time frame.

Daily Analysis of the Price of Internet Computer

The daily ICP/USDT chart shows a recent behavior capable of breaking through several immediate resistances. It could also give way to a short-term trend transition of the price.

The bulls are now in control of the market and will likely make further gains within the next few hours/days.

The recent bullish volume of ICP is an excellent indicator of the strength of buyers. There was a brief correction after resistance at USD 9.47 hampered the price. A new momentum will possibly begin in the next few hours before reaching USD 14.28.

If the price broke through immediate support at USD 7.67, it would lose the recent momentum. In addition, it would be necessary to wait for further signs to confirm the start of a significant rally.

By Alexander Salazar

Emotions Can Lead Inexperienced People to Develop an Addictive Attitude toward Bitcoin Trading

Alexander Salazar
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Emotions Can Lead Inexperienced People to Develop an Addictive Attitude toward Bitcoin Trading

Specialists consider that the qualities of cryptocurrency trading facilitate addiction, especially among inexperienced people. Those who cannot control themselves in other aspects of life will not be able to avoid addiction.

Some people look at market charts or follow the swing of the Bitcoin (BTC) price for hours. They even open and close positions on exchanges compulsively. Those repeated behaviors may suggest that they have a trading addiction problem related to factors other than the cryptocurrency.

As with betting and gambling, the adrenaline rush of winning or losing money through Bitcoin trading can lead to addictive behaviors.

Inexperienced people swayed by their emotions may be at higher risk of developing an addictive attitude to trading. That is even worse in the cryptocurrency world as markets operate all day long.

Venezuelan psychotherapist and bitcoiner Elena Cazes helps better understand addiction in trading. She says people can become addicted to anything that might reward them in the end. Addiction is the underlying condition that leads them to direct their behavior toward a specific goal.

Bitcoin trading can have the potential to cause addiction, but so can apps that count steps, shopping, or exercising. Cazes adds that the former can generate the reward response and could turn into addictive behavior.

Trading with Bitcoin and Other Cryptocurrencies Is Available 24/7

According to Spanish trader Immortal Crypto, Cryptocurrency trading is a window of opportunity available all day long and can become a vice for inexperienced people.

He considers that the nature of trading may facilitate that behavior but argues that this will happen depending on the person. He explains that a person who cannot control himself in other aspects will not do so in this one.

Argentine trader Tenkan Trading believes that trading is one of the easiest ways to fall into addictions or vices. He summarizes that the goal of people in society is to have a lot of money. For that reason, there is considerable frustration with trading losses, which make people bet on losing positions and risk more money to recover their funds.

In addition to being open all day long, anyone can access the cryptocurrency market. In a few minutes, people can open an account on an exchange, buy cryptocurrencies with fiat money, and start operating. The lack of experience, added to desire and greed, makes the mix very dangerous.

Vice Might Depend on the Trader or the Trading Activity

Tenkan and Immortal say they have never felt addicted to trading and allude to experience as a crucial element. The former says he approaches trading with much respect, while the latter states he studied the activity and its psychology.

From that perspective, everything indicates that it all depends on the person.

Cazes comments that addictions are negative behavior when they interfere with life quality. She also says that they make the person anxious if he stops doing an activity, like in the case of trading.

The psychotherapist points out the same happens with those who check the price of Bitcoin several times a day. She also includes those who study it tirelessly or become Bitcoin evangelists among the group of addicts.

By Alexander Salazar

The WAVES Token Recovers by More than 120% after Dropping to USD 4.13

Alexander Salazar
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The WAVES Token Recovers by More than 120% after Dropping to USD 4.13

The price has shown some exhaustion, suggesting that a pullback might start soon before a new rise toward USD 16.17. WAVES left a significant rejection of low prices, suggesting that the drop might bottom out to resume the long-term bullish trend.

The death spiral of Terra seriously affected the price of many cryptocurrencies, including the WAVES token. However, the latter has recovered from its dramatic drop by more than 120%. The following analysis will allow knowing the details of how that happened.

WAVES is trading at around USD 9.67 and has accumulated a 1.1% gain over the last 24 hours. While its daily trading volume is above USD 1.09 billion, its market capitalization is about USD 964.99 million. It occupies 63rd place in the cryptocurrency ranking, according to CoinGecko.

The Price of WAVES Seems to Have Bottomed out

The space for selling was very tight after the value of WAVES dropped by 93.53% from its all-time high of USD 63.88. The bulls exploited the weak resolve of the sellers, but the price seems to have already reached the bottom.

WAVES rapidly fell in early April, when a stablecoin native to its blockchain lost its peg with the US dollar. However, the team took measures that prevented a worse situation and restored the parity of the USDN with the American fiat currency.

The death spiral of Terra instilled further fear into the investors of WAVES, who expected something similar to happen.

Ironically, the factor that determined the strong rally of the price of that cryptocurrency was its earlier considerable drop. If the base holds or improves and the price drops out of fear, it is reasonable to expect to see previous price levels.

Following a crash like that of the price of WAVES, the potential gains are considerable. Even with the recent big rally, the price is still 550% away from its all-time high.

Weekly Technical Analysis of the Price of WAVES

The WAVES/USDT daily chart shows an excellent behavior of the price after a single candlestick on May 30th. It managed to overcome almost thirty days of continuous decline.

The current momentum is upward, as the bulls control the short-term trend.

Since the price has shown some exhaustion over the last two days, a pullback seems likely to start soon. After that, there could be a new rise in the value of WAVES. Its next target is to reach USD 16.17 and break above the still bullish 200-day SMA, tracking the medium-term trend.

Monthly Analysis of the Price of WAVES

The monthly chart shows that WAVES left a significant rejection of low prices, suggesting the fall might bottom out. In that way, it would resume the long-term bullish trend.

The value of WAVES might still be in trouble for a while longer and may remain locked into a sideways range. After that, it would effectively resume the previous trend.

The price has recently broken through the 8-day EMA and 18-day SMA to the downside, giving a short-/medium-trend signal. However, the strong rejection of support at USD 4.90 indicates little room for selling.

By Alexander Salazar

New York Senate Approved Bill Prohibiting New Miners with Coal-Based Power from Bitcoin Mining for at Least Two Years

Jenson Nunez
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New York Senate Approved Bill Prohibiting New Miners with Coal-Based Power from Bitcoin Mining for at Least Two Years

New York Senate passes the Bitcoin mining ban bill over the current environmental concerns.

The New York State Senate passed a law aiming at Proof-of-Work (PoW) mining to address some environmental concerns involving crypto mining activities. This bill got also approved one day after the White House itself got ready to boost policies to fight against the environmental impact of Bitcoin mining.

The bill, which passed the New York Assembly in April, would impose a two-year moratorium on any new carbon-fuel-powered PoW mining projects in the state. The imposition gets validated even if existing mining entities or those currently are working on renewing permissions may receive the green light to continue carrying out their activities.

The Senate Voted 36-27 in Favor of the Policy

According to the bill’s Democratic sponsor, Senator Kevin Parker, there is currently only one plant actively operating which would receive any harm from the account. He added a pending application, which may be on hold until the study ends.

During the moratorium, the state will lead a subsequent study on the potential environmental impacts that trial-of-work mining implies.

A Sudden approval

Coindesk points out that many expected the bill not to pass the committee. Last year’s version of the bill did after the Senate Environmental Conservation Committee showed a rejective stance about considering it during its final meeting of the Senate session.

Committee chairman Senator Todd Kaminsky explained to CoinDesk that he showed some concerns about the bill possibly damaging New York’s economic system if people perceive it as hostile to crypto. City agencies have warned about the damage caused by mining activities to the environment.

Missing Signature

New York Governor Kathy Hochul still has to sign the bill into law before it can become an enacted law. New York got described as an ideal place for crypto mining companies to set up their financial and mining activities due to cheap hydroelectric power sources.

Mining entities have also repurposed obsolete coal-fired power generation facilities in more recent years. Greenidge Generation, for example, upgraded one such facility to run on natural gas.

According to previous information delivered by BeInCrypto, various critics have pointed out that the NYDFS lacks the regulatory solidity to properly carry out programs against mining activities because the law does not give it such powers.

However, the regulator considers that the risk to property and business activities posed by natural disasters and weather events is sufficient to justify its attempts to take action on the matter directly.

Climate change could negatively impact unregulated deposit balances by adversely affecting their clients’ activities, including loss of profits and devaluation of investments due to transition risks.

By: Jenson Nuñez

2TM, the Parent Company of Brazil’s Bitcoin Market, is Getting Rid of More than 80 Employees

Jenson Nunez
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2TM, the Parent Company of Brazil’s Bitcoin Market, is Getting Rid of More than 80 Employees

Unicorn Company 2TM, the parent company of Mercado Bitcoin, joins other exchanges with laid-off workers in less than a month.

The global crisis, which impacts entities from all over the environment, also severely hit digital currency companies. The phenomenon strongly damaged exchanges, which, looking for new procedures to keep their activities ongoing, decided on a very drastic one: to eliminate an essential part of their workers.

The procedure got highlighted before by US exchanges like Gemini and two vital Latin American ones: Bitso (Mexican) and Buenbit (Argentine). Now is the chance for the most prominent exchange in Brazil.

2TM, the holding company of Brazilian exchange Mercado Bitcoin, fired more than 80 employees on Wednesday. Some media even say that the number of dismissals is higher and approaches 90.

2TM said that the mutating global financial panorama, rising interest rates, and inflation generated a vast impact on technology-based entities; the entity also published a list of 86 fired workers.

The company also highlighted that the current scenario required procedures beyond reducing operating expenses. The process they executed happened through policies under transparency and respect to honor the legacy of each collaborator who helped the company grow.

According to 2TM, the dismissed workers received a package of beneficial features to back up their personal and professional growth, citing aid for job placement and extension of the term of the health plan, among other benefits.

According to its LinkedIn page, Mercado Bitcoin Market currently counts more than 580 employees, while 2TM counts more than 80. Other media claim that the total number of employees surpassed 750.

Other Exchanges Take Action

The 2TM announcement arrived just a week after Bitso, the Mexican-born exchange Mercado Bitcoin’s main rival in Brazil, fired at least 80 employees citing long-term business strategy reasons; this figure represents just over 10% of its current staff.

Also, last week, Buenbit, the exchange headquartered in Argentina and carrying out activities in Mexico and Peru, fired 45% of its staff due to the global overhaul of the tech industry.

This problem is not only happening in Latin America; the robust exchange Gemini also got rid of 10% of its staff due to the consequences of the current crypto winter. The notice, highlighted on the firm’s blog, argues about the requirement to reduce costs amid uncertain market conditions that would be about to persist for some time.

What Happens to this New Unicorn?

2TM became the second crypto unicorn in Latin America, after Bitso, after raising a total of USD$250 million in 2021 to spread across Latin America and achieving a value registered at USD$2.2 billion.

In addition, he managed to reach another continent: in January, he acquired a majority stake in CriptoLoja, Portugal’s first regulated crypto exchange, while also planning to enter the Spanish-speaking part of Latin America. Also, in March, Mercado Bitcoin was in talks to get purchased by Coinbase Global, but the negotiations didn’t come to fruition.

By: Jenson Nuñez

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