HSBC Bank (China) Ltd. announced on Friday the launch of digital yuan (e-CNY) services for corporate clients, becoming one of the first international banks to provide these services to both corporate and retail customers. The e-CNY, or digital yuan, is China’s central bank digital currency (CBDC) issued by the People’s Bank of China (PBOC). Following […]
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Bitcoin Is an ‘Intriguing Option for National and Corporate Financial Portfolios’ Says Billionaire Stelian Balta
Stelian Balta, the billionaire and co-founder of the digital asset management firm Hyperchain Capital, has said that while bitcoin is indeed a volatile asset it nonetheless helps to diversify and align an investment portfolio with digital trends. The top crypto asset’s high-return possibilities also “makes it an intriguing option for national and corporate financial portfolios,” Balta asserted.
Embracing BTC Enhances a Corporation’s Image
In his written answers sent to Bitcoin.com News, the billionaire also argued that as regulations around crypto assets become clearer, the top crypto asset’s perceived risks will slowly dissipate thus “making it a more viable option.” Furthermore, when corporations embrace BTC, this enhances their respective images as “modern and innovative” organizations. Balta suggested that this alone may be enough to attract new customers or “investors interested in advanced technologies.”
Meanwhile, the Hyperchain Capital founder has characterized some institutional investors’ bet on digital assets as a mutually beneficial move. For institutional investors, digital assets create growth opportunities while the Web3 industry benefits by way of more credibility and legitimacy.
Overall, institutional investors’ dabbling with digital assets potentially helps hasten the development of new technologies and Web3 apps. This, in turn, could also result in more people and businesses embracing Web3 technologies, Balta added. In his answers sent to Bitcoin.com News via Telegram, the billionaire also explained why he sees the blockchain as a technology that will reshape finance. He also offered advice on how budding entrepreneurs can emulate him and become equally successful.
Below are all of Balta’s answers to the questions sent.
Bitcoin.com News (BCN): Are traditional finance (Tradfi) and decentralized finance (defi) converging and in what ways could blockchain technology help Tradfi and reshape the future of finance?
Stelian Balta (SB): I think Tradfi and defi are starting to blend together, thanks to the enticing features of blockchain technology. This merger is making financial transactions quicker and more transparent, while also boosting security against fraud and cyber threats. However, this integration faces challenges, like navigating complex regulations and the need for traditional financial institutions to adapt both culturally and operationally to these new technologies. In short, blockchain is paving the way for a more efficient, secure, and inclusive financial future.
BCN: What makes you believe that nations and corporations would integrate Bitcoin into their financial strategies, especially considering it’s still a highly volatile asset?
SB: Nations and corporations are already considering adding bitcoin into their financial strategies for several reasons. Bitcoin offers a way to diversify assets, which can help manage risks differently from traditional financial markets. It’s often seen as a hedge, similar to digital gold, which can be appealing for protecting value in uncertain economic times. Bitcoin, though historically volatile, has also demonstrated a capacity for significant returns in the past.
The growing interest in blockchain technology and the shift towards digital finance also make bitcoin an attractive option. It aligns with the evolution towards more digital, innovative financial solutions. There’s also increasing consumer and investor interest in bitcoin, and by integrating it, countries and companies can meet this demand and stay competitive.
As regulations around cryptocurrencies become clearer and more established, the risks associated with bitcoin might reduce, making it a more viable option. Additionally, embracing bitcoin can enhance a corporation’s image as modern and innovative, potentially attracting new customers or investors interested in advanced technologies.
While bitcoin is indeed volatile, its potential for diversification, alignment with digital trends, and high-return possibilities make it an intriguing option for national and corporate financial portfolios. However, I believe it’s important to carefully weigh these benefits against the risks and evolving regulatory landscape.
BCN: After what is undoubtedly a brutal bear market, it now appears like the industry is on the cusp of a bull run as reflected by investor sentiment and crypto prices. Can you talk about your investment thesis for 2024 and beyond?
SB: Our focus has always been on long-term investments. Our investment thesis for 2024 and beyond centers on identifying and supporting big-vision projects with strong fundamentals and innovative technology. We don’t chase narratives and trends.
Looking back at our experience since 2013, we’ve seen the crypto market go through lots of ups and downs, with losses as big as 98% and gains up to 40,000%.
This has really shown us how important it is to think long-term through multiple cycles. Our early investments in Ethereum, Cosmos, Fantom, and many more, starting from 2016, 2017, and 2018 respectively, prove that we’re dedicated to sticking with this long-term strategy.
In summary, our investment thesis is rooted in a long-term approach, focusing on high-quality projects that demonstrate potential for enduring value. This strategy, we believe, will allow us to navigate future market cycles effectively and capitalize on the growth opportunities that the evolving crypto landscape presents.
Moving forward, our focus will be on investing in projects led by teams that are not only strong and loyal but also have a clear vision and mission.
BCN: You have been a vocal supporter of the Fantom network, which recently launched the Sonic Labs accelerator program and is anticipated to introduce the Sonic tech stack upgrade in 2024. What unique attributes of Fantom strengthen your conviction in the project?
SB: A core aspect of the Fantom ecosystem is its dedication to supporting its endemic creators across gamefi, defi, and more. One of the distinctive features for builders within Fantom is the direct monetization avenues such as gas monetization, which gives dApps a share of the gas fees they generate. This empowers Fantom-based builders to earn more compared to deploying on any other network, offering them a key edge over their competition.
Another unique feature of Fantom is its growing, grassroots community of creators. They are at the forefront of engaging experiences for users to jump into gaming with Estfor Kingdom, or explore within Fantom’s defi ecosystem with Beethoven-X, Equalizer, and more.
BCN: What factors are driving institutional investors to explore the digital asset space, and how would the growing institutional adoption impact the Web3 industry?
SB: I think institutional investors are diving into the digital asset space mainly because it’s a new and evolving area with lots of potential. They’re attracted by the opportunity to diversify their investments with something different from traditional stocks and bonds. Plus, the digital asset market is growing rapidly, offering exciting opportunities for growth. The improvement in how these assets are managed and clearer rules around them also make it easier and safer for these big investors to get involved.
As more and more institutional investors get into digital assets, I believe it’s going to have a big impact on the industry. Their involvement adds a level of credibility and might lead to a more stable and mature market. With more money flowing in, we can expect to see faster development of new technologies and applications in the Web3 space. This could also encourage more people and businesses to start using Web3 technologies.
In short, the growing interest from big investors is set to really shape and boost the world of Web3.
BCN: It is said that you began your entrepreneurial journey with nothing at the age of 16 and became a millionaire at 24. What would be your advice to Web3 builders starting their entrepreneurial journey in 2024?
SB: Embarking on an entrepreneurial journey in the Web3 space in 2024, my key advice, drawn from my own tough journey filled with countless failures, revolves around three fundamental principles: obsessive hard work, persistent curiosity, and being consistently driven by a clear vision.
Firstly, embrace obsessive hard work. Success in the rapidly evolving world of Web3 demands more than just effort, it requires an all-consuming passion for your work. My path was filled with challenges, teaching me the importance of dedication. Be prepared to dedicate countless hours, often at the expense of other pursuits, because in this field, the difference between success and failure often hinges on the extra mile you’re willing to go.
Secondly, nurture your curiosity relentlessly. The landscape of Web3 is ever-changing, with new technologies and possibilities emerging constantly. Stay hungry for knowledge and new experiences. This insatiable curiosity, which I maintained despite numerous setbacks, will not only keep you informed but also inspire innovative ideas and solutions that can set you apart in a crowded market.
Lastly, always be driven by a strong, clear vision. In the world of startups and especially in Web3, bear or bull markets, distractions and challenges will be plentiful. It’s your vision that will guide you, keep you focused, and motivate you during tough times. This vision should be the beacon that lights your path and the anchor that keeps you grounded, as it was for me through my difficult journey.
In summary, as you step into the entrepreneurial arena, let obsessive hard work be your daily mantra, curiosity your constant companion, and a clear vision your guiding star.
What are your thoughts about this interview? Let us know what you think in the comments section below.
The Quest to Stabilize GHO — Navigating Challenges to Reach $1 Peg Amidst Aave’s Corporate Rebrand
The blockchain technology enterprise Aave Companies, recently rebranded as Avara, is still navigating challenges in stabilizing its stablecoin GHO, which is currently struggling to sustain its desired peg. The project’s Liquidity Committee is actively working on strategies to strengthen the stablecoin, aiming to elevate its value above .985 by November 30, 2023.
GHO’s Liquidity Committee Targets .98 Value by Month’s End in Stability Push
This week, the overseeing entity for Aave, Sonar, GHO, and Lens disclosed Aave Companies’ transformation into Avara. Concurrently, the company announced its acquisition of Los Feliz Engineering, a firm specializing in Web3 crypto software development. Amidst these developments, the company’s stablecoin continues to trade below its targeted value. Since its inception, GHO has remained below the benchmark, averaging around .96 per unit over the past week.
As of November 17, 2023, the 24-hour trading data shows GHO’s value fluctuating between .957 and .964 per token. Bitcoin.com News highlighted GHO’s struggle to maintain its dollar peg on November 4. At that time, the GHO Liquidity Committee, led by “Token Brice” (TB), was initiating measures to enhance GHO’s value. Six days later, on November 10, TB revealed a series of potential solutions being explored.
TB reported that GHO’s price hovered between 0.96 and 0.97 in the recent week. A social media post underlined that the total supply of 35 million GHO is approaching its cap. On the Maverick Protocol, two pool pairs (GHO/USDC and GHO/LUSD) are being incentivized, alongside new Uniswap Merkl campaigns for GHO/USDC and GHO/USDT pools. Additionally, a new Bunni Pool for GHO/USDC with a broad price range (0.8499 to 1.0496 USDC per GHO) has been established.
TB also mentioned considering strategies to boost GHO’s utility, such as using wrapped GHO (wGHO) as collateral on Aave, while excluding GHO borrowing. The committee’s goal is to elevate GHO’s price to at least .985 per unit by the end of November. “All these initiatives are synergetic with one another, helping to create positive momentum for GHO,” TB stated in conclusion in the social media update.
What do you think about GHO’s issues? Do you think the stablecoin can get up to the parity or .98 by the month’s end? Share your thoughts and opinions about this subject in the comments section below.
Terra Beats Tesla As Second-Largest Corporate Bitcoin Holder After $1.5B Purchase
Terra’s commitment to filling up its coffers with Bitcoin has been solidified once more with another .5 billion purchase. This is the fruit of a pledge that the project had made to buy more than billion worth of BTC to serve as a reserve for its stablecoin, UST. More importantly, though is how this boosts the foundation’s standing when it comes to corporations holding the digital asset.
Terra Now Holds More BTC Than Tesla
Before Terra had begun its bitcoin buying spree, there have been other corporate bodies that had already made the plunge to do so. The likes of MicroStrategy, Galaxy Digital, and Tesla come to mind when thinking of this. While MicroStrategy had cemented its lead as the company with the largest BTC holdings, Tesla had retained its position in second place. That is, until now.
Related Reading | Bitcoin Institutional Outflows Near One-Year Highs, More Downside Coming?
With its most recent buy, Terra has now become the second-largest corporate bitcoin holder, beating out Tesla for the title. The deal was carried out as an over-the-counter (OTC) purchase in conjunction with cryptocurrency broker Genesis and Three Arrows Capital, a crypto trading and venture capital firm.
The Luna Foundation Guard (LFG) which had begun accumulating BTC earlier this year has ramped up its buying. It is one of the fastest accumulation trends of any corporate bitcoin holder. Its first purchase had taken place in February, and now, barely three months later, the non-profit foundation now holds 80,393 total BTC. All of which come out to a dollar value of .9 billion at the time of its last purchase. It now holds almost double what Tesla holds, which currently sits at 48,000 BTC.
Reiterating The Promise
When Do Kwon, founder of Terra, had announced that the foundation was planning to buy billion worth of BTC for its treasury, the question had been when. While participants in the space had speculated it would take a while before they began buying the coins, Terra had quickly moved forward to start. It had gradually added BTC to its treasury and in three months has now purchased more than a quarter of the billion BTC.
BTC falls below ,000 | Source: BTCUSD on TradingView.com
In an additional move, Terra had also moved to add another cryptocurrency to its treasury. This time around turning to Avalanche (AVAX) to do so. It had purchased a total of 0 million worth of AVAX, a trade that was carried out directly with the Avalanche Foundation.
Related Reading | Bitcoin ETP Outflows Spell Bearish Sentiment Among Institutional Investors
The Luna Foundation Guard reserves have now grown to .23 billion. Bitcoin makes up 90.7% of the reserves with a total of 80,393 BTC valued at .93 billion. LUNA makes up the second-largest portion with 6.63 million making up 4.2%, AVAX at 3.5%, USDT AT 0.8%, and USDC at 0.7%.
Featured image from Portal do Bitcoin, chart from TradingView.com
NewsBTC
Corporate NFT – The Antidote To Counterfeit Products
It has long been said that imitation is the highest form of flattery. The rapid development of technology, shortening the production chains and product life cycle, new distribution models developed by the world’s largest corporations, the progressive shift of retail trade to the web, changes in consumer habits and the ever-increasing dominance of large internet platforms, meant that this sentence should now read: copying is the simplest form of theft.
Radosław Krzycki , COO Skey Network
According to one of the best current studies of this type, the OECD report on world trade and counterfeit goods, in 2019 the share of counterfeit products in global trade was 3.3% and was growing rapidly.
In the European Union itself, the share of counterfeit goods was even higher and accounted for 6.8% of imports. Importantly, this number does not include counterfeits produced within the EU countries and their distribution via the Internet (so in reality it is probably much higher).
According to the estimates of the ICC – the International Chamber of Commerce, the value of the trade in counterfeit products will increase to almost one trillion dollars in 2022, and the number of jobs lost will be between 4.2 and 5.4 million.
More difficult to estimate is the size of counterfeit digital goods, which increases in direct proportion to the traffic and importance of the global network. In 2022, piracy of music, movies, series and software will cost up to $ 854 billion in losses.
How do you stay authentic in a world that is becoming more and more artificial and repetitive? How to transfer quality, value and brand reputation from the physical to the digital world without losing the attributes of originality?
The answer is provided by blockchain technology and its latest version – NFT – (non-fungible token). In short – it is a unique, inimitable piece of information stored in the blockchain data chain, constituting a kind of digital “tag” and a certificate that guarantees the originality of a non-physical product or work.
With the help of NFT tokens, we can confirm that the product we have purchased comes from a legal source, was produced by exactly this company or a specific artist.
Today, the real world is more and more often mixed with the digital world, and NFTs combine both dimensions.
Let’s take an example product – a bag from a reputable manufacturer X. When you buy it in a store in a shopping center, you get a real product with a sewn-in tag, logo and barcode on the label.
By applying the NFT technology to the sales process, the client, when purchasing a physical product, receives an additional, special code (e.g. QR), which gives him the right to have an equivalent of an exemplary bag in the digital world, with all the advantages – prestige, a certificate of originality, a value carrier or the right to resale.
What are the advantages of this solution for companies?
It is not only an effective method of fighting counterfeit and piracy, but the first step to the digital transformation of their brands and a smooth transition to the world of the metaverse, as well as gaining new markets and entering dynamically growing sales channels. An additional advantage is building the image of the company as modern, quickly adapting to changes and attractive for the youngest, technologically conscious consumer segment.
It is worth emphasizing – this is not an investment dedicated only to premium brands, as evidenced by the movements of companies such as Nike, which bought the creator of NFTs and shoes existing only in virtual space. The mass use of this solution is only a matter of time. Probably in the near future, the authenticity of each product can be confirmed on the Internet by scanning its code / label. They will not only be a carrier of value (because who would not like to have shoes that never deteriorate, look like new and can always be sold), but a real source of income for their owners and creators. An example is the popular “skins” in computer games, that is, graphical modifications of the appearance of a character or part of their outfit. One of these skins in CS: GO recently sold for $ 150,000.
What will the future hold? In Q3 2021, the NFT market exploded to $ 10.7 billion, up from just $ 1.3 billion in Q2. The vast majority of sales were made by NFTs from the “cheap” segment, ie those with prices between 0-100 and 100-1000 dollars. This confirms the thesis that the solution is universal for every company, not only those from the premium segment.
As you can see, the entry threshold is rather low and the growth potential is very high. In entering this new, lucrative market, the key is to choose the right technology – the provider and type of blockchain on which we want to base our digital products. There are still relatively few companies with the appropriate know-how and experience in this field.
To be successful, you need to act boldly, decisively, and most importantly – quickly, and grab the bull by the horns. Only more and more often it turns out that the bull does not have to be material …
Coinbase Is Set To Increase Corporate Bonds Amid Rising Demand
In a recent development, Coinbase issued a junk bond, and the market seemed to be hungry for the instrument. Currently, the US crypto exchange is recording more demands for these bonds every day. With these demands, the crypto exchange’s sales have grown from .5B to B.
Bonds are fixed investments that yield interest monthly. But when we talk of junk bonds, investors make higher returns but face higher risks as well. Companies usually issue junk bonds to raise capital very fast for a major project.
Corporate Bond Orders Keep Rising
The orders have continued to troop in for the Coinbase junk bond. One of our sources reveals that the orders amounting to billion are competing for 7 and ten-year bonds, with interests of 3.375% & 3.625% each. From our sources, we also learned that some claims have risen that the interest rates were lower than what Coinbase offered in the first quotes.
Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course
This increasing demand proves that the exchange didn’t know the extent to which the public regarded its creditworthiness. If they offered higher rates in the quotes, it meant that Coinbase was unsure that many people would invest in the bonds. So, the high demand showed them their worth, and the company reduced the rates.
Moreover, an analyst with Bloomberg stated that this high demand shows that debt investors have endorsed the exchange positively. But these bonds rank a bit lower than investment-grade bonds, according to Bloomberg bond indexes showing that debts offerings like what Coinbase issued get an average of 2.86% yield.
Coinbase And The Junk Bond Journey
The US-based crypto exchange announced this junk-bond issue on September 13. According to that announcement, the company aims to use the capital for its products developments. Also, they aim to acquire other technologies, companies, and products that they might find in the time to come.
Coinbase is the second crypto company to offer this debt instrument. Before now, MicroStrategy issued Notes worth 0M to invest in Bitcoin following the June market crash.
So, the crypto community has seen the likes of junk-bond offerings before now. This might be the reason for the surging demand plus the popularity of Coinbase in the industry.
On its opening day, the bond traded at 2 while the company’s COIN Stock sold for 3. But the COIN has managed to gain 20% since the end of June. What surprised the community more is that the exchange is facing a lot of threats from the SEC, yet the investors pushed money into the bond.
Related Reading | Since China’s Mining Ban, Bitcoin Hashrate Has Recovered by 68% And Counting
The Securities and Exchange Commission threatens the crypto exchange with possible legal action if it launches a USDC lending product. Before this threat, Coinbase planned to launch the USD Coin. But it seems that the company is keeping the plans at bay for the time being.
Currently the USD Coin is trading sideways | Source: USDCUSDT on TradingView.com
Featured image from Business Insider, chart from TradingView.com
NewsBTC
Allied Payment Partners NYDIG, Adds Bitcoin To Corporate Treasury
One latest news making rounds in the crypto space is the new partnership between the digital payment platform-Allied Payment Network, and the Bitcoin subsidiary of Stone Ridge, a billion alternative asset manager called NYDIG.
Related Reading | GBTC Unlocks Spells Doom For Bitcoin? Top Expert Breaks It Down
The latest developments come with the addition of Bitcoin to the former Corporate Treasury.
BREAKING: Allied Payment Network, a digital payment provider, has announced they will put bitcoin on their balance sheet.
Bitcoin is inevitable.
— Pomp 🌪 (@APompliano) July 6, 2021
Allied Payment Network is the industry’s most progressive online and mobile bill payment service provider to banks and credit unions. The Allied Payment Network is seeking to increase its business scope, and market comprehensibility has gone crypto.
Following many others, the digital financial platform openly declared its intention to cooperate with NYDIG and at the same time moved to utilize the crypto-power by including Bitcoin on its balance sheet.
What Allied Payment Network Stands To Gain Through Bitcoin Adoption?
An increasing number of companies worldwide are using Bitcoin and other digital assets for a host of investments.
The BTC price is trading sideways on the daily chart | Source: BTCUSD on TradingView.com
This could be for operational and transactional purposes. Of course, just like every business horizon, there are unknown dangers, but there are far strong incentives to gain.
The benefits allied stands to gain include:
● Better security in operations,
● Low fees,
● Swift and easy payment,
● Decentralized advantage, and
● Universal recognition
Explaining these, the adoption of cryptocurrencies that are digital and encrypted will ensure that Allied is repaid from the generation of bogus copies, as against the traditional payment methods where this is possible.
Again, no cryptocurrency transactions carry personal data about the user; thus, privacy is now sacrosanct.
Related Reading | Philippine Stock Exchange Plans To Become A Cryptocurrency Trading Platform
Talking about the economy of BTC adoption, users of the platform can eliminate middlemen like brokers and lawyers from the arena, who usually charge service fees on transactions.
Now again, the speed and accuracy of transactions will be improved upon, as users of the platform can just as of the other person’s address to transfer funds.
By this, the processing time is almost negligible, and the whole transaction is completed in a matter of seconds.
Decentralization is one notable feature of Bitcoin. Thus, users If the payment platform can now always control their currency units, as there is no central authority in the network.
Lastly, digital currency is gaining worldwide momentum each day, as many are already joining the party; this includes government bodies – El Salvador’s story is well and alive.
NYDIG And The Benefit Of Partnering
A newly disseminated press release says that the provider of digital payments Allied Payment Network has inked a partnership deal with NYDIG.
NYDIG is a leading technology and financial services firm dedicated to Bitcoin. The financial platform is aligned with the mission of safely unlocking the power of BTC through technologies and financial services that enable forward-thinking companies and investors to access this asset class.
Related Reading | TA: Bitcoin Consolidates Below K, What Could Trigger Fresh Rally
Partnering with it will facilitate the BTC adoption drive, as clients of financial institutions are enabled to purchase, sell and hold Bitcoin. This is made possible with Allied Payment Network having its Bitcoin in an NYDIG-enabled corporate treasury.
Thus, the company will become the first-ever payment provider that will introduce Bitcoin in its platform and enable financial institutions to offer it to their clients.
Featured image from Pixabay, chart from TradingView.com
Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become Corporate Vehicle
If you need reassurance on just how early you’re to Bitcoin, head to Fortune.com. They interviewed the managing director of Treasury Partners, Jerry Klein, to find out if corporations are thinking about Bitcoin as a store of value. Short answer, “Not one of our clients has expressed interest in Bitcoin.” Good to know. But let’s explore further.
Related Reading | Stone Ridge’s 10k Bitcoin Bet Shows Changing Sentiment of Corporate America
The article begins with alliteration and dishonesty:
“The lead cryptocurrency so far offers practically no practical uses.”
Is the implication here that, for example, instantaneous wealth transfer is not practical enough? We consulted the linked article to find out exactly what the author meant. It starts with:
“In reality, Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a safe harbor during the past year’s stock market crash.”
Oh yeah? Let’s ask the people with strong hands that held on to their Bitcoin until today. Are they not satisfied with Bitcoin’s performance? There’s turbulence, but the harbor is safe. And about the other point. nobody wants to be the next person who pays 10.000 BTC for two pizzas. Bitcoin is and will be in price discovery phase for the foreseeable future. Buying things with it is not a priority.
BTC price chart for the last year on KuCoin | Source: BTC/USDT on TradingView.com
But let’s get back to corporate cash
According to Klein, his client’s portfolios usually consist of three kinds of investments: government bonds, money-market funds, and corporate stocks. Klein claims that their priorities are safety and liquidity, and that risk is out of the question. Furthermore, the article continues, “companies want to avoid owning assets that risk even the slightest decline in value.”
Oh yeah? Isn’t Fiat currency in the United States devaluing at a 15% annual rate? Doesn’t that pose a risk of its own? To drive the point home, let’s quote the pioneer of displaying Bitcoin in the company’s balance sheet. MicroStrategy’s CEO Michael Saylor recently told Time magazine:
“If you’re going to make a rational investment decision today, whether you’re a real estate investor, a stock investor, a bond investor, or just a wage earner or you’re a treasurer, you have to estimate the rate of monetary expansion for the next eight years. We know there’s a commitment to run deficits, and we know this commitment to stimulus.”
That means the US government is printing money like there’s no tomorrow. And will be for the foreseeable future.
Related Reading | This is why all companies should buy Bitcoin, says Square’s CFO
You’re early to Bitcoin
Among the crypto community, there is a fear that the arrival of MicroStrategy, Square, and Tesla means that it’s corporations time. That the head-start that Bitcoin gave to the little people is over. Fortune.com’s attitude while handling the subject suggests that the crypto community might be wrong. Big institutions have no idea what’s going on. You probably have more time to stack those Sats.
And that is a good thing.
Featured Image by Josh Hild on Unsplash - Charts by: TradingView
Bitcoin Holds $50,000 on Global Corporate FOMO; What to Expect?
An early morning sell-off in the Bitcoin market hinted at calming down after more corporates revealed their investments into the cryptocurrency.
Meitu, renowned globally for its photo editing app, incorporated .9 million worth of Bitcoin and .1 million worth of Ether (the native cryptocurrency of the second-largest blockchain project, Ethereum) into its balance sheet.
In a press release published Sunday, the Chinese firm said it sees the two cryptocurrencies as viable diversifications to cash, reiterating the popular store-of-value narrative that propelled the Bitcoin price higher by more than 1,200 percent against a bearish US dollar. Earlier in February, US carmaker Tesla had also used the same reason for investing .5 billion in Bitcoin.
“Holding cash is subject to depreciation pressure due to aggressive increases in money supply by central banks globally,” the Meitu press release noted.
Retaining Uptrend
Bitcoin rose above ,800 on Sunday, also as the US Senate voted majority in favor of President Joe Biden’s .9 trillion stimulus bill. Nevertheless, higher valuations prompted traders with short-term risk appetite to secure early profits, leading to a price correction in the early Asian trading session on Monday.
![Bitcoin, cryptocurrency, BTCUSD, BTCUSDT](https://www.newsbtc.com/wp-content/uploads/2021/03/zBtJrGI1-860x498.png)
The cryptocurrency fell to as low as ,238 ahead of the London morning bell, only to pare a portion of its intraday losses as the session matured. The short-term bullish revival came in the wake of the news of another corporate investing in Bitcoin.
Norwegian holding company Aker ASA announced that it is launching a new wing called Seetee AS. The firm’s press release stated that it would invest in projects and companies throughout the Bitcoin ecosystem through Seetee, for which it allotted 1,170 BTC as default capital reserves. At the current exchange rates, they are worth around million.
Aker partnered with blockchain development firm Blockstream for Seetee.
“We will be hodlers,” said Øyvind Eriksen, President and CEO of Aker ASA.
Yield FUD Sustains
Bitcoin was down 1.33 percent ahead of the New York opening bell despite the optimistic news.
So it appears, the cryptocurrency’s upside bias faced headwinds an ongoing sell-off in the government bond market. Of late, rising yields on long-dated US Treasuries sapped investors’ demand for pandemic winners like bitcoin, tech stocks, and gold.
On the other hand, a faster vaccination program and additional fiscal stimulus prompted investors to believe that the US economy would rebound speedily. That resulted in a capital outflow from seemingly overvalued assets to sectors that would benefit the most from the economy’s reopening. These winners include banks, energy, travel, and hospitality.
![US Treasury, US government bonds, US10Y, US 10-year Treasury note](https://www.newsbtc.com/wp-content/uploads/2021/03/WifHlqro-860x498.png)
Nasdaq-100 futures fell 1.5 percent in pre-market trading on Monday, pointing to tech stocks extending losses. Bitcoin remained correlated with the tech-heavy index in the short-term.
But hardcore crypto bulls remained convinced that inflation would push corporates, investors, and traders back into the Bitcoin market. Teddy Cleps, an independent analyst, stated that he expects BTC/USD to hit ,000 in the coming sessions.
Corporate Capitulation: Is Ripple’s Buyback A Sign Of XRP Struggles?
XRP continues to be one of the most disappointing and dormant altcoins in the cryptocurrency market, three years running. The recent Bitcoin rally has caused the altcoin to fall to new lows on the XRPBTC pair, which analysts claimed could cause its army of supporters to “admit defeat.”
Instead, Ripple themselves have decided to buy back XRP at a critical support level against Bitcoin. Is this a sign of the parent corporation essentially capitulating itself, injecting capital so that crypto investors themselves don’t finally wave the white flag?
Ripple Introduces XRP Buy Back Program To Support “Healthy Markets”
All throughout the bear market, Ripple executives added salt to the wound of pained XRP investors, by selling down each rally. Even former Ripple executives have a sizable supply they regularly dump at investor’s expense.
It became so frequent, it started to tick off the community and the company’s leadership had to reel it in. Now the trend has reversed fully, and Ripple is buying back XRP even when they already own the lion’s share of the total supply.
Related Reading | Trader: Bitcoin Bull Run Could “Force XRP Army To Surrender,” Admit Defeat
Ripple revealed in a new report that it has purchased some million worth of XRP tokens in the third quarter of 2020. The company claims that it was done to support “healthy markets” and that the buybacks could continue to support the brand’s new Line of Credit initiative.
But when the purchase was announced in correlation to the XRPBTC price chart, can’t just be a simple coincidence.
Ripple suspiciously begins buying XRP back at support against Bitcoin | Source: XRPBTC on TradingView.com
Parent Company Picks Pivotal Moment On XRPBTC Trading Pair For Reveal
As the chart above reveals, Ripple’s buyback in Q3 perhaps lifted XRP against Bitcoin slightly. When the tides turned back in favor of Bitcoin while the cryptocurrency charged to ,000 this month, XRP only collapsed further to new bear market lows.
Interestingly, Ripple has chosen to reveal its buyback program the moment the XRPBTC price chart reaches a critical support level.
This area happens to be a do or die zone for XRP against Bitcoin, and if it can’t hold, could suffer a further decline where the “XRP army” finally “admits defeat.”
Related Reading | XRP Sweeps Bear Market Lows Against Bitcoin, Is It RIP For Ripple?
Ripple’s giving in and buying back XRP tokens could be a last ditched effort to save face with crypto investors before Bitcoin’s rally cannibalizes whatever capital is left.
If it works, however, it could kick off an extended uptrend in XRP finally, and reverse the negative sentiment associated with Ripple done during the bear market.
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