News updates February 10, 2022

1. Crypto Advocates Push Back on Sweden’s Call for EU Mining Ban

Regulators are worried renewable energy will be channeled towards crypto mining instead of national grids as EU'sIf recent headlines are to be taken at face value, the European Union (EU) could be on its way to banning crypto mining because of energy concerns.

The call for a ban on crypto mining across the EU’s 27 member nations is mainly coming from regulators in Sweden, who are concerned about renewable energy being used to mine cryptocurrencies like bitcoin instead of being channeled for public use. Politicians in Germany, Spain and Norway are supporting the call. energy crisis worsens.

2. UN approves NFT standards proposed by Tencent, Ant Group: report

The United Nations specialized agency for telecommunications standardization, ITU-T, has approved a non-fungible token (NFT) technical framework proposed by Chinese tech giants including Tencent Holdings and Ant Group, state-owned media reported.  

The framework, which introduces an NFT standard, proposes technical and security requirements for digital collectibles on the blockchain. 

The international standards approved by ITU-T are now referenced recommendations, and become mandatory only when adopted by national laws of different nations.

The initiative’s first draft is expected to be completed by the end of 2022, and the final draft will be finished next year before submission, according to a report from South China Morning Post.

The initiative project is led by Internet giant Tencent and supported by entities including Ant Group, China Academy of Information and Communication Research (CAICT), Beijing University of Posts and Telecommunications, and Zhejiang Lab, a research institute backed by Zhejiang province.

In China, the phrase “digital collectibles” is often used to avoid references to NFTs due to state media’s criticism of the non-fungible token (NFT) frenzy. 

China’s crypto ban has discouraged Chinese firms from using public blockchains for NFTs, but local tech leaders have developed their own blockchains for non-crypto NFTs.

3. Crypto Winter Is Thawing With Bitcoin And Ethereum Rebound Signal

It’s been a rough few weeks for cryptocurrencies, but things are finally looking up! Cryptocurrencies that have fallen off their highs over the past three weeks appear to be on an upward trajectory again.

Crypto winter is thawing as crypto markets are showing some signs of life. For example, Bitcoin, which fell 52% from its November highs to a low of around $33,000, has gained 15% in the past seven days, and Ethereum, which dropped 55% from its all-time high, has rebounded 13%.

January was a tough month for crypto investors. Still, Bank of America’s global strategist Alkesh Shah says he saw increased interest from people who want to invest or trade cryptocurrencies. He expects prices will rise throughout 2022 and into 2023 as more regulatory clarity emerges about digital assets like Bitcoin.

4. Bitcoin Whales Wreck Bears, This Is What Happened Last Time They Were Active

Bitcoin whales have become active once again. While whale activity is normal and to be expected, the rate at which they purchase and accumulate coins can point to further movement in the market. Given that these investors control a large enough volume to affect the price of bitcoin, watching their every move can be beneficial as shown bypass data.

When whales begin moving BTC in large volumes, it can either signal a market dump or pump. In the same vein, it can also who how big money is dealing with the digital asset. These addresses which hold 1,000 or more bitcoin on their balance have significantly impacted the market movement with their accumulation trend in the past. Now, again, they have begun to accumulate

Bitcoin Whales Are Stocking Up

Santiment has reported that the bitcoin mega whales are coming out of their shells to stock up on more of the asset. These whales who hold at least 1,000 BTC on their balances have taken purchasing bitcoin at a rapid rate. Over the span of 7 days, these wallets have stocked up on more than 220K BTC, almost $10 bitcoin worth of the digital asset.

5. NFT prices misfire as OpenSea daily active user volume drops 30% in a week

OpenSea closed out over $1.3 billion in sales in the last seven days, yet the number of daily active users on the platform dropped by more than 30%.

While it seems OpenSea is keeping pace with January’s total volume of $5 billion by generating over $1.3 billion in total volume the last 7 days, the number of active users has decreased by more than 30% according to data from Dune Analytics.

The closest rival to the market-place is LooksRare has generated approximately $3.49 billion in the last 7 days, but persistent issues of wash-trading have also decreased its active trader count by 3%.

There are a few factors that could be influencing OpenSea’s overall decrease in volume and drop-off in active traders. After all, nothing lasts forever. However, the NFT market doesn’t fail to surprise either.

6. Before Senate, CFTC cites crypto as basis for biggest expansion since Dodd-Frank

* CFTC Chair Behnam is seeking new regulatory authority, technological tools and a major increase in funding to bring crypto “into the regulatory fold.” 

* Senators and Behnam himself were quick to draw parallels to Dodd-Frank’s expansion of the CFTC’s authority over swap markets in the aftermath of the financial crisis. 

The Commodity Futures Trading Commission wants to bring spot markets for cryptocurrencies into its regulatory regime, in what would potentially be its biggest expansion since the 2010 Dodd-Frank legislation.

On February 9, CFTC Chairman Rostin Behnam testified before the Senate Agriculture Committee on cryptocurrencies. Central to his appearance was his push to bring crypto “into the regulatory fold.”

6. Hawaii’s Billion-Dollar Crypto Sector Could Disappear If Legislators Do Not Pass New Laws

Hawaii has some of the strictest crypto laws in the US. Under existing laws, crypto exchanges are treated as money transmitters in the state. Consequently, most major exchanges, concluding Coinbase, do not offer their services in the state. Despite these restrictions, the state’s crypto industry is estimated to be worth around $1 billion. However, the industry could disappear unless legislators act soon.