Bitcoin drops more than 3% in the last 24 hours
Bitcoin (COIN:BTCUSD) suffered a sharp drop after Wall Street opened on May 24, resulting in a “long overdue retest” of major trend lines. The price reached as low as $26,154, the lowest level since May 12th. Persistent volatility has led traders to watch the 100-day and 200-week moving averages as key levels. In addition, concerns over the Biden government’s US debt ceiling impasse also impacted markets. Bitcoin bulls were advised to be cautious as the final outcome depends on the resolution of this issue. “While our medium-term bias is towards BTC higher, under a deal scenario – we think BTC could quickly sync with what other macro markets are suggesting. However, in a ‘no deal’ scenario, we will easily eliminate the highs of the year”, summarized the trading platform QCP Capital.
Blockchain market expected to grow at a rate of 67.57% by 2030
According to a report by Market Research Future, the Blockchain technology market could grow at a rate of 67.57% between 2022 and 2030, reaching around US$137.8 billion by the end of 2030. Blockchain technology offers security, transparency, efficiency and economics, being widely applied in finance, supply chain management, healthcare, digital identity and more. Leading companies in the industry include Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), Coinbase and Ripple Labs. The Covid-19 pandemic has highlighted the importance of Blockchain technology for secure and transparent digital transactions, driving its adoption. North America, Europe and Asia-Pacific are the main regions driving market growth.
Ava Labs launches AvaCloud to facilitate the creation of managed blockchain ecosystems
Ava Labs has launched AvaCloud, a Web3 platform that allows companies to build code-free managed blockchain ecosystems. With components like an automated blockchain builder, managed validators and comprehensive data tools, AvaCloud streamlines the process of creating and managing custom networks. This solution aims to accelerate enterprise entry into the Web3 market by reducing the costs and risks associated with deploying custom blockchains. Avalanche Warp Messaging was also released, allowing native communications between Avalanche subnets. Nicholas Mussallem, senior vice president of product at Ava Labs, said that AvaCloud enables companies to bring their Web3 products to market faster and with less risk, without the need to hire blockchain-focused staff. “Historically, custom blockchains have required intensive capital and human investment. One study cites end-to-end deployment for a custom blockchain having an average time and cost of over 12 months and $1.5 million per year,” said Mussallem.
Voltz Enables Trading of SOFR Interest Rate Swaps on Avalanche, Bringing Traditional Financial Products to DeFi
The Voltz decentralized financial protocol now allows Avalanche users to trade interest rate swaps based on SOFR, a global reference rate. This allows investors to hedge their exposure to interest rate fluctuations. The Voltz feature brings traditional financial products into the DeFi world, leveling the playing field between retail investors and institutions. This trend of integration between traditional finance and DeFi is gradually growing. In the opinion of Simon Jones, CEO and co-founder of Voltz Labs, the launch of the Voltz protocol makes “traditional financial markets accessible on DeFi rails”. “Everyone is exposed to what the Fed decides to do [but] only a handful of institutions have access to interest rate swap markets that allow them to hedge that exposure, so far”, said Jones.
Tenet teams up with Conflux and Qtum to strengthen net staking in China
The net staking blockchain Tenet is joining the Conflux and Qtum blockchains to strengthen the net staking industry in China. Conflux and Qtum users will stake their native tokens and receive net stake derivatives (LSD) issued by Ankr. This partnership seeks to integrate Tenet into the Asian blockchain community, which has been isolated from Western projects. Conflux is known for its regulatory compliance in China, while Qtum already collaborated with Amazon Web Services in 2018.
Coinbase seeks Mandamus to force SEC response to regulation petition
Coinbase (NASDAQ:COIN) has responded in support of its injunction petition to the US SEC seeking regulation for digital assets. Coinbase Chief Legal Officer Paul Grewal called mandamus “the tailor-made remedy for extraordinary events.” The company alleged that the SEC rejected its July petition without making it public, and highlighted the agency’s inaction on other petitions. “The SEC does not dispute that, since 2017, it has received five regulatory filings relating to digital assets and has not acted on any.” Coinbase requested a response within seven days or a defined timeframe. The SEC argued that the request was unreasonable and could take years for regulation.
Bitfinex invests in Chilean exchange OrionX to expand presence in Latin America
Cryptocurrency exchange Bitfinex has made an undisclosed investment in Chilean exchange OrionX, aimed at expanding its presence in Latin America, the company announced on Tuesday. OrionX offers cryptocurrency exchange and wallet services in Chile and has plans to expand to other countries in the region. The partnership seeks to drive the adoption of Bitcoin and decentralized technology in promoting financial freedom. In Chile, stablecoin transactions grew by around 50% in 2022, due to the search for protection against inflation and the devaluation of the Chilean peso. In April, Bitfinex received El Salvador’s first license for digital asset service providers.
Nanjing opens Metaverse Innovation Platform
Nanjing City, China inaugurated the China Metaverse Technology and App Innovation Platform, led by Nanjing University of Information Science and Technology (NUIST). The platform aims to strengthen research related to the metaverse, bringing together resources from academic institutions and companies across the country. Other Chinese cities, such as Shanghai, are also looking to develop the metaverse as part of their economic strategies. While China has strict regulations on cryptocurrencies, it recognizes the potential of the metaverse to drive the digital economy.
Japan to implement FATF “Travel Rule” to combat crypto money laundering
Japan will implement stricter anti-money laundering measures, including the FATF “travel rule”, starting June 1. The decision was taken after the FATF deemed the country’s anti-money laundering measures insufficient. Japan seeks to align with global standards and follow the guidelines of the G-7. The Japanese crypto industry has struggled with this rule since 2021, but is now working towards its implementation.
Pakistan toughens its stand against cryptocurrencies
The government of Pakistan has reaffirmed its anti-cryptocurrency stance, citing the condition set by the Financial Action Task Force (FATF) to avoid inclusion on the international regulatory body’s “Grey List”. The State Bank of Pakistan and the Ministry of Information Technology have received orders to ban cryptocurrencies. Meanwhile, banks are warning customers about the illegality of cryptocurrency trading. Political and financial instability in the country has led retailers to use stablecoins as a hedge against the devaluation of the Pakistani rupee. Blockchain investor Bilal Bin Saqib noted that the value of the Pakistani rupee has dropped by an “impressive” 57.4% against the US dollar in the past year. “For the majority of the population, stablecoins have emerged as the most convenient method of accessing the US dollar, as acquiring physical dollars is hampered by import restrictions currently in place,” he said.
Tornado Cash will receive permission to question Chainalysis in case of money laundering
A Dutch court has ruled that Tornado Cash developer Alexey Pertsev will be able to question blockchain analytics firm Chainalysis to defend itself against money laundering allegations. The case has drawn outcry from rights activists online, while Pertsev denies the allegations. With a new hearing scheduled for September, the process could drag on until 2024. “You’re not going to have a hamburger analyzed in the lab… I say, let’s go to the meat factory. Just ask them what the ingredients are,” said Keith Cheng, Pertsev’s attorney. On Saturday, Tornado Cash was the target of an apparently malicious attack that allowed a hacker or group of hackers to take control of the protocol, causing its TORN token (COIN:TORNUSD) to fall.
Cryptocurrency hacks drop 70% in Q1 2023
According to research by TRM Labs, approximately $400 million was stolen in cryptocurrency attacks in the first quarter of 2023, a 70% drop from the same period of the previous year. The average size of hacks has also decreased, but experts warn that this pause may be temporary and security measures and user education are needed to prevent future attacks.