Weekly Crypto Market Review (24.01.2021)

Positive News in the Crypto Market:

  • Grayscales Secret altcoin trust?

What else does Grayscale have up their sleeves? With the removal of the XRP trust reported last week, a bit of positive light for those #LINK hodlers out there. There seems to be a ‘SECRET’ LINK trust. BUT, it doesn’t just stop there… there was also talk of additional ALT coins such as Basic Attention Token (BAT), Decentraland (MANA), Filecoin (FIL), Livepeer (LPT) and Tezos (XTZ).

Could grayscale be seeing the future potential for altcoins? Grayscales involvement in the crypto market is a huge step to mass adoption by allowing investors to gain exposure to digital assets growth without having to purchase and hold the cryptocurrency. Now, this is still new… watch this space…just because there is a filing with these altcoin names listed DOES NOT MEAN they will bring the product to market – wait and see what comes from Grayscale themselves.

  • BlackRock Asset Manager (7.81 Trillion) may enter the crypto world

BlackRock, which is the largest asset manager in the world, with almost an asset management portfolio worth almost $8 trillion, may be entering the crypto space according to their form 497 submission to the SEC. The form submitted expresses the risks involved with investing in BTC; with their main focus on BTC futures. Nevertheless, the consideration stage still has positive, and significant potential.

  • Central banks weighing up on CBDC’s!

The Bank of International Settlements (BIS) is embarking on a journey in their innovation hub to explore ways to incorporate the evolving technology trends in relevance to central banks and enhance the functionality of the global financial system. The 2021/22 programme, endorsed by the Economic Consultative Committee (ECC), has a strong focus on Central Bank Digital Currencies (CBDC).

The initiatives within the programme will be driven by the innovation hub centres in Hong Kong, Switzerland and Singapore. One initiative, tasked to Singapore, is the creation of an “international settlement platform” where regulated banks use different CBDC’s to finalise transactions.

BIS currently has six working group chairs appointed to a strategic focus theme each from central banks in Australia, Thailand,  Lithuania, Brazil, Israel and Ireland. This news is just another example of banks stepping up to see the value in digital assets and the evolving technology trends to support the global financial system.

Source: https://www.bis.org/img/topics/ih_prog2122.pdf

  • President Biden PAUSES FINCEN’s

You may remember the short push for comment on the FINCEN proposal not long ago; there were concerns raised with the required level of recording exchanges will need to do on transaction amounts into wallets IF the FINCEN proposal was to be approved. With Biden stepping into the role of President this week, the FINCEN proposal had been put on PAUSE.

Now, while this is positive (and we can take a moment to breath), this doesn’t mean it is the end, it merely means, the new president needs time to understand the means of the FINCEN proposal. Leading on from Biden’s inauguration, comes the incoming Treasury, Janet Yellen. Now, Janet believes cryptocurrencies have links with illegal activity such as terrorist financing and money laundering.

There was a large concern for the new Treasury Secretary’s view on cryptocurrency; however, she has shined a bit more of a light on her intentions. Her written responses to questions asked by the United States Senate Committee on Finance articulated that yes, the illegal activities is of concern; however, the priority is to imbed an effective regulatory framework for cryptocurrencies to control the threats and allow innovation to continue within the crypto space.

Yes, there will be changes to come and it will shake up the crypto market; however, in order to continue our steps toward mass adoption, we need an appropriate regulatory framework to allow investors to entrust in digital assets.

Negative News in the Crypto Market:

  • XRP selling 28 million, despite the SEC lawsuit

Now, ripple has been the talk of the show for over a month now, almost daily you will see new information on the ripple and SEC case. You may remember from our previous weekly crypto market reviews, that we said more bad news would continue coming until the lawsuit can be resolved. However, while we see this as troubling news of uncertainty, ripple themselves are taking another casual walk in the sun, selling more XRP despite the lawsuit in place. Now is this confidence, or arrogance?

This week, we also had news of the new acting SEC Chair, Allison Herren Lee. From what I can see, the new acting SEC Chair has a strong focus for climate and sustainability; we are yet to see what her take will be on cryptocurrency until the nomination of Gary Gensler can be completely confirmed.

  • Differentiating Fear, uncertainty and doubt (FUD) from FACTs

The challenge we have in the crypto market, especially for those just entering or may not have the time to invest in keeping up to date with information, is knowing when to differentiate FUD from FACT. We saw this week, a massive dump and break of trend in BTC. Some may argue that the change of president had an effect, which could be the case as we saw during the presidential election, a lot of uncertainty with the potential to be president and how this may impact the crypto market. However, something that is also floating around is the double-spending attempt of BTC. Now, this news was inflicted to show that a double-spending attempt BROKE BTC but it really is a miscommunicated information to inflict FEAR; especially for those who may not understand the technical concept of double-spend. Andreas Antonopoulos took to Twitter to clarify the BTC double-spend and shine some light on the misinformation circulating.

Source: https://cryptopotato.com/bitcoin-reorganization-triggers-panic/

This is one of the biggest challenges I see as an investor in the crypto market; how to differentiate FUD from FACT and what the appropriate steps are to take in order to protect your portfolio, because unfortunately, whether it’s factual or not, it’s a risk you need to manage.

There was an interesting Medium article shared back in 2018 relating to FUD, please check it out as some of the questions you can ask yourself to ‘FUD-proof your portfolio’ are available.

Upcoming Events in Crypto

  • COSMOS (ATOM) news with AltheaNetwork launching their mainnet with Peggy

AtheaNetwork Mainnet Deployed with Peggy this month (January 2021). The Peggy bridge will allow interoperability between COSMOS and ETHEREUM moving transactions from Ethereum to Cosmos and back again with an aim for efficiency and reduction in transaction costs. Althea have recently advertised the next steps to revolutionise the peggy concept, with ‘Gravity Bridge’.

  • THORChain (RUNE) Multichain Testnet

THORChain, the decentralised liquidity protocol, back in November 2020 released the multichain testnet 1 allowing users to swap between BNB and BTC assets and provide liquidity to BNB and BTC pools. The next stage for THORChain is to redeploy the multichain testnet to include ETH, LTC and BCH along with the COSMOS 0.40 update. The new version of the testnet is due to occur the following week.

  • CELO Mainnet – Celo Core Contracts Release 2

Only recently CELO was launched on BINANCE, and is soon to launch the Celo Core Contracts Release 2, with the mainnet launch date pushed back from 26th of January to 2nd of Feb according to CELO Twitter.

Upcoming with ADAPT Crypto:

This week, we released our Kylin Network GEM review video – if you haven’t done so already check it out on our channel! 

This week coming, we aim to provide our community with…. a GEM review of PAID Network.

For a quick wrap up of the week ending 24th January 2020, check out our video below:

Don’t miss PAID NETWORK’s launch on UNISWAP this Monday 25th of January @ 3:30pm UTC/GMT!