News updates June 05, 2022
1. MicroStrategy CEO Saylor says bitcoin’s near-term volatility largely irrelevant.
Bitcoin’s near-term volatility is largely irrelevant once you understand the fundamentals of the leading cryptocurrency and how difficult it would be to create something better, according to MicroStrategy CEO Michael Saylor.
"Bitcoin is the most certain thing in a very uncertain world, it's more certain than the other 19,000 cryptocurrencies, it's more certain than any stock, it's more certain than owning property anywhere in the world,” he said in an interview with The Block last week after appearing at CoinMarketCap’s The Capital virtual conference.
People who have spent at least $100 on bitcoin can speak about the cryptocurrency, Saylor allowed, but otherwise they probably “shouldn’t have anything to say about it.”
2. Dollar Dominance and the Rise of Nontraditional Reserve Currencies.
The US dollar has long played an outsized role in global markets. It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades.
But although the currency’s presence in global trade, international debt, and non-bank borrowing still far outstrips the US share of trade, bond issuance, and international borrowing and lending, central banks aren’t holding the greenback in their reserves to the extent that they once did.
As the Chart of the Week shows, the dollar’s share of global foreign-exchange reserves fell below 59 percent in the final quarter of last year, extending a two-decade decline, according to the IMF’s Currency Composition of Official Foreign Exchange Reserves data.
3. Crypto Lovers Still Believe STEPN’s Time Is Not Over Yet.
Since the last week of May, the STEPN native tokens (GST/GMT) and in-game assets have seen massive dumps.
The prices for NFT Sneakers also dropped over the last few days. Sneakers that cost 13 to 15 SOL a month ago are now worth around 4 to 5 SOL.
At the moment, STEPN (GMT) is number 1 in CoinMarketCap’s trending list and is worth $0.9633 after a 4.66% drop in price over the last 24 hours.
When looking at the longer time periods, STEPN saw a 3.82% increase in price over the last week, but a 63.59% drop over the last month.
STEPN’s bad luck started with its announcement that it will officially be banned in China in the upcoming months. STEPN users were also urged to handle all their in-app assets before June 15, 2022.
Things only went downwards from there as GMT tokens moved from the app to exchanges to get sold, and huge amounts of sneakers also got sold on the app. Many people started selling their tokens and assets because of fear induced by STEPN’s announcement.
Even after this, many people in the crypto industry believe STEPN’s time is not over yet.
4. Community College Dropout Turned Crypto YouTuber Now Making Millions.
Brian Jung, a 25-year-old college dropout, made $3.7 million last year after becoming a full-time crypto YouTuber.
According to a profile by CNBC’s “Make It” series, Brain Jung decided to drop out of college in 2018 at the age of 21 to become an entrepreneur. Jung’s parents, who immigrated to America from South Korea, South Korean immigrant, were naturally shocked by this decision.
However, the millennial was determined to make his plan work, transforming a $200 a day in e-commerce side hustles into YouTube millions.
Jung said of his decision:
I had to tell my parents, ‘I know you’ve worked really hard and I know how scary this is going to be, but I’m not going to finish school.
5. Bank of Uganda finally accepts crypto in its regulatory sandbox.
The Bank of Uganda (BoU) has stated that it is open to considering crypto firms into the bank’s regulatory sandbox. Blockchain Association of Uganda received the news with positivity. Mr. Andrew Kawere, the Director of the Bank of Uganda’s National Payments Service, passed the information to chairperson BAU. Part of the email to BAU read.
Your plea to peer learning with our technical staff on crypto-economic models is granted with positivity by BoU. We have investigated whether or not the regulatory sandbox is the right environment for testing certain use cases.
6. Fed Governor on crypto: Losses can become morally intolerable, pushes for regulation.
The Federal Reserve Governor Christopher Waller has warned that if crypto investors continue making losses on a large scale, the situation could become morally intolerable.
Speaking during the SNB-CIF Conference on Cryptoassets and Financial Innovation in Switzerland, Waller noted that intolerance could occur, especially if investors lack sufficient knowledge and lose all their money.
According to Waller, if the losses emerge as witnessed with the Terra ecosystem, there will be demand for regulations. He, therefore, recommended action to be taken now.
“From a social perspective, there is another possible outcome when losses become widespread: Those losses become practically, politically, or morally intolerable. When everyday investors start losing their life savings, for no reason except wanting to participate in a hot market, demands for collective action can mount quickly,” said Waller.
7. End of the week Market Analysis
At the end of the week, Bitcoin (BTC) is at $29,540, Ether (ETH) at $1,750 and XRP at $0.38. The total market cap is at $1.21 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Waves (WAVES) at 114.63%, Cardano (ADA) at 24.19% and Helium (HNT) at 22.49%.
The top three altcoin losers of the week are Convex Finance (CVX) at -7.51%, Solana (SOL) at -6.93% and 1inch Network (1INCH) at -3.40%.
8. Japan passes bill to limit stablecoin issuance to banks and trust companies
A new bill from Japan, reportedly going into play in 2023, will only allow licensed banks and registered money transfer agents to issue stablecoins. The regulation aims to provide more protection around stablecoins, given their growing popularity. Japan’s intent to regulate stablecoins comes amid a crypto bear market that has seen declining asset prices and the downfall of a major stablecoin, TerraUSD Classic (USTC).
9. CBDCs To Kill Private Cryptos, Indian Central Bank Warns
The Indian Cryptocurrency market has been dealing with many restrictions lately. Finance Minister Nirmala Sitharaman announced the 30% tax over the profit made from the digital assets trading in this year’s Union Budget. However, she also mentioned the launch of the Central Bank Digital Currency (CBDC) backed by the government. Meanwhile, Deputy Governor of the Nation’s Central Bank has laid a warning for the private crypto tokens.
The Reserve Bank of India has been a big opposer to Cryptocurrency.
10. Global Web3 metaverse and tax initiatives continue in the face of a market meltdown
Immune to the digital asset market’s manic depressive volatility, Web3 developers, institutional investors, and regulators preparing to tax metaverse profits are calmly continuing with business as usual across the world.
