Autor Cointelegraph By Sam Bourgi

Bukele’s Bitcoin trade raises El Salvador’s sovereign credit risk: Moody’s

Bukele’s Bitcoin trade raises El Salvador’s sovereign credit risk: Moody’s

Uverejnil používateľ | jan 14, 2022 |

El Salvador’s historic embrace of Bitcoin (BTC) could have negative consequences on the country’s sovereign credit outlook, according to Moody’s Investors Service. Moody’s analyst Jaime Reusche told Bloomberg this week that El Salvador’s Bitcoin gambit “certainly adds to the risk portfolio” of a country that has struggled with liquidity issues in the past. Under the leadership of President Nayib Bukele, El Salvador has recognized Bitcoin as legal tender and issued a state-run crypto wallet to facilitate payments, transfers and ownership. Along the way, El Salvador has amassed a treasure chest of 1,391 BTC, with President Bukele famously “buying the dip” on several occasions by using Bitcoin’s volatility to add to his country’s holdings. Buying the dip 150 new coins added.#BitcoinDay #BTC— Nayib Bukele (@nayibbukele) September 7, 2021However, Reusche warned that accumulating more BTC would elevate El Salvador’s risk of default. “If it gets much higher, then that represents an even greater risk to repayment capacity and the fiscal profile of the issuer,” he said.PREDICTION: The El Salvador bitcoin bond will be ridiculously oversubscribed pic.twitter.com/2Kj0urm0SN— Pomp (@APompliano) November 23, 2021

In addition to downgrading El Salvador’s credit rating, Moody’s has warned that the country’s so-called Bitcoin volcano bond could limit its access to foreign bond markets. Proceeds of the volcano bond, which is expected to raise roughly $1 billion, will be used to fund El Salvador’s Bitcoin City project. Related: Tonga to copy El Salvador’s bill making Bitcoin legal tender, says former MPAttacks on El Salvador’s Bitcoin gambit by legacy financial institutions are nothing new. In November 2021, the Washington-based International Monetary Fund warned El Salvador against using Bitcoin as legal tender. Meanwhile, the World Bank has rejected the country’s request for assistance in implementing its Bitcoin Law over alleged environmental and transparency concerns. Nevertheless, El Salvador has remained steadfast in embracing Bitcoin and in creating an attractive environment for crypto investors and entrepreneurs. Last week, finance minister Alejandro Zelaya said the country’s Bitcoin Law has already attracted foreign investment.

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Crypto Biz: Here’s what you need to know about CZ’s $96B net worth, Jan. 6-13

Crypto Biz: Here’s what you need to know about CZ’s $96B net worth, Jan. 6-13

Uverejnil používateľ | jan 13, 2022 |

Binance CEO Changpeng Zhao, also known as “CZ,” is now the world’s 11th richest person, according to Bloomberg. The crypto entrepreneur has amassed a $96 billion fortune on the back of his booming exchange business and the rapidly appreciating value of Binance Coin (BNB).CZ’s wealth offers a startling reminder of just how lucrative crypto has become for early adopters. It’s also a sign of things to come as digital assets become more mainstream over the next decade. (If you’re reading this, there’s a good chance you’ll also be counted as one of crypto’s early adopters.)This week’s “Crypto Biz” delves into CZ’s net worth, the latest developments concerning Binance Labs, the growth of another Bitcoin (BTC) treasury and PayPal’s stablecoin plans. For a comprehensive breakdown of business developments over the last week, register for the full newsletter below.Binance Labs invests in Oasis ecosystem fundOasis Network’s $200 million development fund received another contributor this week in Binance Labs, the venture capital arm of CZ’s crypto exchange. Although Binance Labs didn’t disclose how much it invested in the Oasis Ecosystem Fund, head of investment Bill Chin touted the network’s Web3 capabilities and “privacy-preserving features” as reasons for backing the initiative. On the same day that Binance Labs made its announcement, Oasis Network saw the launch of its first decentralized exchange in YuzuSwap. The DEX’s total value locked exceeded $100 million in its first 24 hours of operations.CZ’s net worth surprises everyoneAccording to Bloomberg, Binance CEO Changpeng Zhao is crypto’s biggest billionaire and Asia’s richest person with a reported net worth of $96 billion. He’s “only” $11 billion shy of 10th ranked Larry Ellison, who’s worth $107 billion. CZ’s net worth is largely attributed to the overwhelming success of Binance, which is the world’s largest crypto exchange by volume. Despite a massive regulatory shake-up in 2021, the firm is ramping up efforts to obtain operational licenses to maintain its global presence. Bitfarms adds BTC to its treasuryCanadian crypto mining firm Bitfarms has made it abundantly clear that it’s trying to hoard as much Bitcoin as possible. Earlier this week, the firm said it had already acquired 1,000 BTC this year, bringing the total value of its holdings to $177 million. “Our guiding company strategy at Bitfarms is to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders,” said Bitfarms CEO Emiliano Grodzki. “With the dip in BTC while mining hardware prices remain high, we seized the opportunity to move cash into BTC.” Increased our #Bitcoin holdings 30%More Info: https://t.co/xCcIUHkWsU$BITF #BTC #BitcoinMining #Blockchain #NasdaqListed pic.twitter.com/zNz54ps5HK— Bitfarms (@Bitfarms_io) January 10, 2022Related: Top 5 bullish Bitcoin stories of 2021PayPal readies stablecoin projectPayPal’s embrace of digital assets appears to be broadening after a senior executive at the company confirmed the presence of an in-house stablecoin project. Dubbed “PayPal Coin,” the new stablecoin will reportedly be backed by U.S. dollars and bring more transactional functionality to the crypto space. No timeline was provided for the rollout of such a project, although PayPal’s vice president of crypto Jose Fernandez da Ponte has previously stated that further regulatory clarity would be needed before any stablecoin is given the green light.

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Former CFTC chair Giancarlo joins CoinFund as an adviser

Former CFTC chair Giancarlo joins CoinFund as an adviser

Uverejnil používateľ | jan 13, 2022 |

Blockchain investment firm CoinFund has appointed former United States commodities regulator J. Christopher Giancarlo as a strategic adviser — a move that should help the Brooklyn-based company navigate the complex, ever-changing regulatory requirements in its home country. Often referred to as “Crypto Dad” by the blockchain community for his support of digital assets, Giancarlo was nominated as commissioner of the Commodity Futures Trading Commission (CFTC) in 2014. In January 2017, he became the agency’s acting chair before assuming the role full-time in August of the same year. He held the position until July 2019. CoinFund president Christopher Perkins described Giancarlo as a “driving force” of innovation at the CFTC, especially for advocating “thoughtful crypto policy in the United States.” Jake Bruckman, CoinFund’s founder, said the former government official will provide expertise at a time when domestic crypto regulations are changing in real time. Since leaving the CFTC, Giancarlo has become a more vocal supporter of digital assets and has even served on the board of directors at crypto lending firm BlockFi. In June 2021, Giancarlo told Cointelegraph that the United States risks becoming a “backwater” without a central bank digital currency and that China was clearly the leader in CBDC development. As early as January 2020, Giancarlo was on record saying that the United States needs a digital dollar to compete with China’s CBDC project. [embedded content]Related: US lawmaker proposes bill aimed at limiting Fed’s ability to issue CBDCCoinFund has invested in several crypto-focused startups over the past year. As Cointelegraph reported, the blockchain investment firm closed an $83 million funding round in July 2021 to continue supporting emerging projects in the blockchain and cryptocurrency industry. The company was behind the recent $50 million Series A funding round for digital asset curator Metaversal and also contributed to NFT marketplace Rarible’s $14 million funding round in June 2021.

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Crypto heavyweights back inflation-resistant savings protocol

Crypto heavyweights back inflation-resistant savings protocol

Uverejnil používateľ | jan 13, 2022 |

Fintech startup Seashell has raised $6 million in seed investments from some of crypto’s biggest venture funds and project founders as it seeks to build out an inflation-resistant finance app — a timely initiative as consumers struggle with the pressures of rising costs.  The investment round was co-led by Khosla Ventures and Kindred Ventures, with additional participation from Robinhood co-founder Vlad Tenev, billionaire investor Mark Cuban, former U.S. Commodity Futures Trading Commission Chair J. Christopher Giancarlo and Coinbase Ventures. The founders of crypto-focused projects Terra, Polygon, Avalanche and Solana were also among the investors. Seashell is launching a consumer app that gives users a simple way to earn higher yields on their money. The company claims that its Seashell Save product gives users up to 10% interest on their funds, with flexible redemption options. The app is available on both Android and iOS devices. Company founder and CEO Daryl Hok, who also served as executive vice president and chief operating officer at blockchain security firm CertiK, told Cointelegraph that the app generates yield from both “on-chain and off-chain sources” despite not being an actual DeFi product. He further explained:“Similar to how traditional banks put customer money to work by loaning out the funds, Seashell invests customer money across DeFi protocols and off-chain lending to generate higher yields for its users.”Although Seashell isn’t built on the blockchain, the app could still appeal to savers who are worried about inflation and the erosion of their purchasing power.Fed gone wild. M1 money supply edition.Operative word: Wow.$SPX #M1 pic.twitter.com/DQlxOqznZZ— Sven Henrich (@NorthmanTrader) April 6, 2020Inflation has made front-page news over the past six months as governments struggle to contain surging prices. Although politicians have blamed supply shortages for the rise in prices, the more plausible explanation is the ballooning money supply. The United States Federal Reserve, for example, has printed more money in the last two years than in all of the country’s previous history combined. Related: ‘Most bullish macro backdrop in 75 years’ — 5 things to watch in Bitcoin this weekThe United States’ M1 money supply rose from over $4 trillion in January 2020 to over $20.3 trillion in November 2021. Source: Federal Reserve Bank of St. LouisCost pressures increased again in December, with the U.S. consumer price index, better known as the CPI, rising 0.5% during the month to a total of 7% annually. That was the highest year-over-year gain since 1982. Sarah House, a senior economist at Wells Fargo, told the Wall Street Journal that “There is still tremendous momentum when it comes to inflation right now,” adding that price increases are likely to peak in the coming months.

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First DEX on Oasis Network hits $100M TVL in 24 hours

First DEX on Oasis Network hits $100M TVL in 24 hours

Uverejnil používateľ | jan 12, 2022 |

YuzuSwap, the first decentralized exchange operating on the Oasis Network, has seen rapid uptake since launching on Jan. 11, underscoring heightened demand for decentralized finance protocols. In its first 24 hours of operations, YuzuSwap achieved a total value locked, or TVL, of $100 million, the company reported Wednesday. Trading volumes over the 24-hour time frame reached $323 million. Within DeFi, TVL refers to the total value of assets being staked on decentralized protocols.YuzuSwap was built using Oasis Network’s Emerald, a smart contract environment that is fully compatible with Ethereum Virtual Machine. The DEX uses a peer-to-peer automated market maker to provide users with low-cost token swaps on Ethereum and within the Oasis ecosystem. The DEX also supports token and nonfungible token asset transfers from six other blockchains via Oasis Network. YuzuSwap launched on the same day that Binance Labs, the venture capital arm of the Binance cryptocurrency exchange, announced it had invested in Oasis Network’s $200 million developer fund. The Oasis Ecosystem Fund, which is also backed by venture firms Hashed, Jump Capital and Dragonfly Capital, among others, was designed to bootstrap projects building on the Oasis Network. The positive newsflow contributed to a sharp rise in the value of ROSE, Oasis Network’s native token. ROSE was last seen trading above $0.49, having gained 14.2% over the past 24 hours. The token is up 43% over the past two weeks and 67% over the past month, according to data from Cointelegraph Markets Pro and TradingView.In terms of total value locked, decentralized exchanges dominate the DeFi sector. At the time of writing, 14 DEXs had achieved a TVL of at least $1 billion, according to industry data provided by DeFi Llama. TVL highlights DeFi’s explosive growth over the past 12 months. Source: DeFi LlamaTotal TVL across the DeFi sector rose 5.5% on Wednesday to $239.6 billion. The value of assets staked peaked close to $260 billion in early December.

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