Research by Binance: Major Crypto Trends until May, 2024

MAY 19,2024

BY NR.BALOCH

Principal Learnings

• This blog post provides an overview of the most important findings in the cryptocurrency markets during the previous month, as reported by Binance Research.
• April was a difficult month for cryptocurrencies, as the pace from earlier months stalled and the total market capitalization fell by 11.3%.
•  The DeFi and NFT markets also saw declines, with TVL declining by 0.7% and monthly trading volume falling by 21%, respectively.
  

 

 

This blog post examines significant Web3 developments in April 2024 to give a general picture of the ecosystem’s present situation. Before giving a sneak peek at the key May 2024 events to watch out for, we examine the performance of the cryptocurrency, DeFi, and NFT markets.

 

Performance of the Crypto Market in April 2024

Cryptocurrency had a challenging month in April, with the overall market value falling 11.3% as the upward momentum from earlier months reversed. This reversal was mostly caused by a slowing in spot bitcoin ETF flows, shifts in rate-cut expectations, and geopolitical uncertainties.

 

 

However, there were also encouraging advancements over the month. On April 30, six distinct spot crypto-based exchange-traded funds (ETFs) started trading in Hong Kong following regulatory clearance. Furthermore, the total amount of stablecoins tied to the US dollar hit its greatest level in the previous two years. The steady increase in USDT and USDC stablecoin supplies suggests that the cryptocurrency market is receiving steady inflows of cash.

 

 

Crypto market capitalization change on a monthly basis (%)

 

 

 

                                  CoinMarketCap (April 30, 2024) is the source.

 

 

Monthly market capitalization-based price performance of the top ten cryptocurrencies 

 

 

            CoinMarketCap (April 30, 2024) is the source.

The majority of the 10 most valuable coins at the end of the month had negative market capitalization. Relative resilience was demonstrated by TON and BNB, which saw gains of 1.0% and a minor decline of 1.4%, respectively. The reason for TON’s outstanding growth is the momentum its ecosystem has been experiencing lately. In April, the network’s total value locked (TVL) and monthly active addresses reached all-time highs. For the previous few months, BNB has remained among the best performers.

In April, ETH and BTC both experienced 8% decreases. Still, Hong Kong’s acceptance of three spot BTC and three spot ETH ETFs was a significant step forward for the two top cryptocurrencies. Greater price drops were seen in XRP and SHIB, which had monthly drops of 17.1% and 19.2%, respectively. Among the top four, DOGE, ADA, SOL, and AVAX showed the worst results, declining by over 30% at the conclusion of the month.

Financial decentralization (DeFi)

April was a quiet month for the DeFi sector, which experienced a 0.7% decline in TVL, in line with general market trends. With a monthly gain of 1000% and a TVL above $1 billion, Merlin Chain—a native Bitcoin layer-2 solution—grew at the fastest rate among the top ten chains. Pendle and Hyperliquid were two of the better achievers in terms of protocols. Pendle’s total trading volume surpassed $15 billion, and its TVL hit $5 billion. TVL for Hyperliquid surpassed $435 million, outpacing that of Near, Aptos, and Cardano.

 

TVL portion of leading blockchains

 

 

 

               DeFiLlama (April 30, 2024) is the source

 

Volume of monthly NFT trading

              CryptoSlam (April 30, 2024) is the source.

In April, the NFT market saw a 21% monthly drop in overall sales volume, amounting to $1.11 billion. With four of the top five collections by sales volume for the month being Bitcoin-based, Bitcoin collections continued to take center stage. The combined sales volume of these collections—Organals, PUPS, WZRD, and NodeMonkes—was $423 million. Reactions to Ethereum collections were still largely negative.

Bitcoin topped the list with $567 million in NFT sales volumes across the main chains, followed by Ethereum with $241 million and Solana with $153 million. In percentage terms, the entire volume of Bitcoin decreased by 5%, while the substantial losses in Ethereum and Solana were close to or greater than 50%. These figures indicate a recent shift in collectors’ attention toward Bitcoin-based offerings.

Future Happenings

The Binance Research team has compiled a list of noteworthy events and token unlocks for the upcoming month to help users remain up to date on the most recent Web3 news. Watch these impending blockchain-related developments closely.

 

Events to remember in May 2024

 

                   Binance Research is the source.

 

The biggest token unlocks in US dollars

                                            Source: Binance Research’s Token Unlocks

Binance Research

The goal of the Binance Research team is to provide thorough, unbiased, and impartial evaluations of the cryptocurrency market. We provide intelligent perspectives on Web3 subjects, such as the cryptocurrency landscape, blockchain applications, and the most recent advancements in the field.This article is merely a preview of the complete report, which includes in-depth examinations of the most significant market charts from the previous month. It also delves more into the most recent changes pertaining to the TON ecosystem, liquid staking, stablecoin supply, and the Runes protocol.

 

 

 

 

 

 

 

SAB 121: The US Senate repeals the SEC’s crypto regulation, but Biden threatens to veto it

 

 

 

 

Joe Biden disputes the claims made by lawmakers, prominent figures in the cryptocurrency space, and banking executives that an SEC policy on crypto custody and accounting hurts American investors and stifles innovation.

 

Washington is getting ready for a major showdown over a contentious SEC decision.The House of Representatives’ vote last week to abolish Staff Accounting Bulletin (SAB) 121 was a major step forward.

 

Contents Table of

• SAB 121: What is it?
  
• The founder of a consulting firm blames SAB 121 for the FTX 
• Debacle, calling the SEC’s response “insane.”

SAB 121: What is it?

 

Public businesses must account for and disclose the risks and responsibilities of protecting their clients’ cryptocurrency holdings in accordance with SAB 121. Because it could make financial reporting more difficult and increase operational burdens, the policy is divisive.Since their implementation in 2022, these regulations have come under heavy fire from both the banking sector, which feels that they have effectively prevented them from providing services related to digital assets, and the cryptocurrency community as a whole.

Despite the US Senate’s vote on May 16 to repeal the SEC recommendations, opponents of SAB 121 are still very much in the game.

The President must still sign off on the Senate decision. But President Joe Biden has stated that he is willing to veto the resolution to completely repeal SAB 121. An assertion made by the White

 

 

SEC encounters resistance

 

Rather than waiting for Congress to take action, several Democratic lawmakers have been pressuring SEC head Gary Gensler to take SAB 121 off his own initiative.Among them is Congressman Wiley Nickel, the 13th District representative for North Carolina, who expressed confidence in the Senate’s passage of Joint Resolution 109.

According to Nickel, eliminating SAB 121 would improve investor protection and guarantee American competitiveness internationally. Banks that have a proven track record of delivering fiat custody services could expand to include cryptocurrency. Some have claimed that SAB 121 was ineffectual since cryptocurrency initiatives like Voyager and Celsius failed to safeguard their clients’ assets even after it was put into action.

 

The public animosity displayed by the SEC toward the digital assets sector is detrimental to President Biden’s goals. The SEC is pushing President Biden to take a stance on a topic that is important to a large number of Americans by using bitcoin regulation as a political football.Wiley Nickel, a congressman

Because of SAB 121, which Nickel described as a “prohibitively expensive regulatory burden,” American consumers are forced to rely on “riskier offshore custody solutions.”

Nickel continued by calling the SEC’s approach to digital assets “misguided” and bringing out issues with the way SAB 121 was being implemented. He said that the way staff accounting bulletins were used constituted a “breach of the rulemaking process,” despite the fact that they are typically intended to serve as guides on best practices.

 

 

“Insanity”: The founder of a consulting firm attributes the FTX Debacle to SAB 121

SAB 121 has been dubbed “insanity” by Austin Campbell, the creator of Zero Knowledge Consulting, in part because it was “unilaterally adopted with no consultation” and “damages the rights of crypto holders in a bankruptcy.” Campbell posted on social media and said:

 

 

“There is a good chance that this rule contributed to the FTX because, in the absence of it, there could have been regulated custodians servicing exchanges and customers in the United States, which would have stopped theft and self-dealing.”Austin Campbell

 

He continued by cautioning that the reason big banks detest SAB 121 so much is that it keeps them out of the expanding market for exchange-traded funds that are based on the spot price of Bitcoin.Charles Hoskinson, the founder of Cardano, has also expressed strong disapproval of Biden’s position on digital assets, alleging that his government has been working to kill the American cryptocurrency industry.

 

He continued by saying that the SEC should not be regulating cryptocurrency using laws that date back 90 years, and that the stringent regulations have already driven many reputable exchanges and trading platforms to relocate, boosting the economies of competing states by generating jobs and tax income.This story is far from done, as a veto is imminent. It will be interesting to watch how Capitol Hill lawmakers respond, as well as executives in the TradFi and cryptocurrency industries.

 

 

 

 

 

 

 

 

 

 

The AI plan for Dubai may serve as a “roadmap for wider region.”

MAY 16, 2024

BY NRBALOCH

Dubai recently revealed its Artificial Intelligence (AI) strategy, an annual project that aims to use AI’s potential to improve people’s quality of life worldwide.

 

First, the plan calls for the appointment of AI CEOs to government agencies. Next, an AI and WEB3 Incubator will be established, with the goal of competing to become the premier worldwide hub for AI and IT companies.This hub will draw entrepreneurs, AI pioneers, and inventors from all over the world, helping to transform their ideas into profitable businesses. The initiative also establishes AI Week in schools to include AI into the curriculum and promote coding abilities.

The founder of a Pakistani AI company calls Dubai’s initiatives to support tech companies “exhilarating.”

Launching the Dubai Commercial License for AI is another part of the plan to attract specialized businesses and individuals, encourage investment, and uphold Dubai’s standing as a leading center for innovation and technology. Dubai’s digital infrastructure will be strengthened even more by the land allocation for data centers.Dubai is committed to being the world’s leading metropolis for the adoption of technology and the application of innovation, as evidenced by its annual strategy.

Semih Kumluk, Head of AI and Digital at PwC, recently spoke with Business Recorder about Dubai’s recently unveiled Artificial Intelligence roadmap, which aims to maximize its potential to improve the city’s quality of life.

According to Kumluk, the blueprint will boost usage and encourage the implementation of AI in both the public and private sectors.

 

“This plan will be an excellent way to enable government agencies to use AI more frequently,” he declared.This transition will be led by the appointment of AI CEOs in every government agency, who will encourage data initiatives, awareness, and upskilling. “This transformation effort will be boosted by having an AI CEO because they will spearhead the data programs, raise awareness, and develop expertise within government entities,” Kumluk added.

 

The AI and Web 3 incubator will draw talent, investors, and startups, establishing Dubai as a major hub for technology and AI businesses worldwide.He declared, “It will attract investors to come to Dubai, promote startups, and allow networking between investors and startups.”

A new generation of AI specialists will be developed during AI Week in schools and universities, and specialized businesses and individuals will be drawn to Dubai by the commercial license for AI.

 

 

Kumluk stated, “It will inspire a lot of energy and encourage the younger generation to fill the roles that will emerge in the near future.”Additionally, Kumluk emphasized the vital role data centers play in facilitating Dubai’s digital transformation by guaranteeing data stays in the United Arab Emirates and satisfying regulations on the protection of personal data.

He predicted that data centers will be crucial to Dubai’s digital transformation effort, particularly in light of the personal data protection law’s need that data be kept physically in the United Arab Emirates.

The city’s landscape will change as a result of AI applications in a number of industries, including education, healthcare, and transportation (self-driving taxis). But there are issues that need to be resolved, such as valuation services and due diligence for startup investors.

“Due diligence is essential to overcoming any potential startup challenges.”

BTC/USD: As we wait for the next leg up above $63,000, Bitcoin sways around its 100-day moving average.

KEY POINTS:

•  Bitcoin aims to reach the $63,000 mark.
  
• We’ll have inflation figures on Wednesday.
  
• Bitcoin is down 17% from its peak.

 

 

If pricing pressures indicate a downward trajectory, new buying impulse could be generated by US inflation data.

 

• The week began with Bitcoin (BTCUSD) rising sharply following a weekend of gains. For the previous few days, prices have been gradually rising and are already approaching $63,000. As markets generally got ready for major events over the following few days, investors continued to extend their long bets on the OG token early on Monday morning. A significant report may cause a stir and spark a new upswing in the cryptocurrency market.

 

• The United States’ April inflation figures are expected to be released on Wednesday. Enthusiasts of digital assets will be keeping an eye out to see whether consumer prices have dropped, as this would indicate a strong economy and encourage more daring wagers on riskier assets like Bitcoin and companies. However, another strong inflation report might raise concerns about an oversupply of money and cause a significant decline in the value of cryptocurrencies.

 

• Bitcoin is currently trading at about $62,000, or roughly 17% less than its top of roughly $74,000 per coin, which it reached in mid-March. Bitcoin has increased its valuation by more than 40% this year, or over $500 billion in market capitalization to a total worth of $1.2 trillion, despite the little decline (by crypto standards). From its record high valuation of $3 trillion, the whole digital asset industry has lost roughly 23%, hovering around $2.3 trillion.

An analyst explains why the post-halving rally in bitcoin is certain.

 

According to CoinMarketCap data, the price of bitcoin dropped 3.06% on Friday, reaching as low as $60,372.36. A trading expert using the X pseudonym Titan of Crypto has voiced unwavering confidence in Bitcoin’s ability to create a post-halving price rise, despite the fact that the leading cryptocurrency market is now in a consolidation phase.

Analysts Suggest That Bitcoin Will Rise, With a $150,000 Price Target

Titan of Crypto made some intriguingly optimistic forecasts about the Bitcoin market on Friday in a series of X posts. First, the analyst pointed out that the daily price pattern of the token had created a positive signal during the drop in the price of Bitcoin.

This indication, which shows a possible turnaround from a downtrend to an uptrend, is known as the bullish engulfing candle, according to Titan of Crypto. It happens when a larger bullish candle fully emerges from the preceding smaller bearish candle.

In light of these findings, the analyst also projected that Bitcoin will soon see a significant post-halving price increase. Titan of Crypto used data from Bitcoin’s price history to characterize this prediction as “inevitable.”

The analyst for cryptocurrency stated:

You must look to the past in order to comprehend the present. Furthermore, historical data indicates that there has never been a time when #BTC has not rallied following the halving.Titan of Crypto also agreed that the short-term fluctuations in price could be “confusing,” but he anticipates that Bitcoin will continue to rise in the long run. Titan of Crypto projects that Bitcoin will trade at $150,000 in 2025 based on past post-halving rebounds.

Bitcoin Nears Its Lowest Price As Buy Interest Dips

According to Santiment, a blockchain analytics website, the recent decline in the price of Bitcoin may soon come to an end since the token is getting close to its “bottom,” or the point at which a market fall’s price stops falling and begins to rise rapidly.

Remarkably, Santiment’s estimate is predicated on a decrease in Bitcoin investors’ dip-buying behavior. According to the analytics platform, trade activity in Bitcoin is far below levels linked to prior price declines following its most recent plunge on Friday.

As of this writing, the price of Bitcoin has dropped by 3.26% over the past week to hover at $60,968. Also, the digital coin appears on the monthly chart.

With Rollblock’s ICO debut, there is a slight tremble in both Bitcoin and Solana.

MAY 11,2024

NR.BALOCH

 

 

After reaching their peaks, Bitcoin and Solana correct; Bitcoin’s halving is expected to rise despite bearish pressure, while Rollblock presale is gaining pace as a possible 30x token by 2024.

Over the past month, there have been declines in both Bitcoin and Solana’s prices; within that quarter, Bitcoin reached an all-time high. Experts predict that with the impending halving of Bitcoin, BTC will rise despite further bearish pressure, whereas Solana may continue to fall. In light of this, investors are beginning to take notice of Rollblock, an igaming provider that is presently in the first phase of its presale. With its many advantages and revenue-sharing functionality, investors think Rollblock has a chance to become the next 30x token by 2024.

There are rumors that Solana might fall below $100.

One of the cryptocurrencies that has suffered the most from the latest market downturn is Solana. Once Solana reached $202, it encountered strong opposition and a number of problems in its ecology. Among these were issues with overloaded networks and disputes on social media between the creators of two initiatives centered in Solana.Due to these occurrences, Solana’s value has decreased by over thirty percent. As of this writing, Solana’s price was trading at $133.87, down 23% from the previous week. Solana was no longer among the top 5 cryptocurrencies by daily trading volume as a result of its decline in daily trading volume to $4.8 billion.

 

The performance of Bitcoin is acknowledged.

Recently, Anthony Pompliano of CNBC’s Squawk Box welcomed the recent performance of Bitcoin. Bitcoin is performing very well, Pompliano pointed out, despite its recent price dip. He explained that it was a pipe dream years ago for Bitcoin to hit $64,000.

 

 With an all-time high of $73,750, Bitcoin has blown beyond predictions. Pompliano went on to say that Bitcoin has increased in value by over 800% in the last four years, indicating that it is one of the most promising investments in the world.Pompliano highlighted throughout the discussion that Bitcoin has outpaced many of the world’s top assets, noting that gold has increased by just 7% in the past year.

Rollblock initiates its initial coin offering

Leading blockchain innovations in the online gaming industry is Rollblock, a creative DeFi igaming supplier. Rollblock has drawn interest from investors since launching its initial coin offering (ICO) due to its distinctive features and creative approach to online gaming. Users of the project can choose from more than 100 different games, including table games like roulette, Texas hold’em, and blackjack. Blockchain technology underpins every game, ensuring maximum security and permitting the use of cryptocurrencies.

Rollblock does not require players to finish a KYC in order to visit their casino, in contrast to other casinos. Users only need to link to their wallet or register with an email address to get started. Rollblock has witnessed an increase in users as a result of removing these straightforward entrance obstacles, and this has in turn led to an increase in investors buying their native RBLK cryptocurrency. By rewarding player participation and enabling holders to stake for future rewards, RBLK plays a vital role in the ecosystem. Additionally, Rollblock has included a revenue-sharing function that allows holders to split the casinos’ daily earnings.

To further raise the value of the RBLK token, buy back RBLK on the open market and burn it.The Rollblock ecosystem will benefit greatly from the use of RBLK coins. A portion of the platform’s earnings will be distributed to token holders; up to 30% of Rollblocks’ earnings will be utilized to buy RBLK on the open market. A deflationary token will be created, meaning that investors’ tokens will gain value merely from this technique, with 50% of these tokens being used as awards and the remaining 50% being permanently burned.

RBLK is trading at $0.01 and is in stage 1 of the presale. In less than a week, the token has sold over 9 million tokens, indicating strong investor interest.

The scale of the Rollblock ICO is noteworthy.

RBLK has the potential to be one of the most promising DeFi tokens of 2024 since it is the native token of the platform designed to support the growth of the online gaming and casino industries. RBLK has room to expand because of its broad utility, revenue share, and opportunities for token holders. In the upcoming weeks, analysts believe RBLK has what it takes to become a 100x token.

 

Visit the official Rollblock presale website or become a part of the online community for more details.

What is a Bitcoin? Key phrases in cryptocurrencies and their definitions

What is a Bitcoin? Key phrases in cryptocurrencies and their definitions

MAY 8,2024

NR.BALOCH

With the price of Bitcoin hitting a record high in March, the contentious topic of cryptocurrencies is once again receiving attention.Furthermore, although many people are aware of market-moving events like the “halving” of Bitcoin or the introduction of “spot ETFs,” their significance is not always clear to those outside the industry.

Don’t worry, though.

Here are some crucial words and their definitions in case you’re new to them or just want a reminder.

 

Bitcoin

 

 

Although many may find it difficult to understand the nuances of cryptocurrency, almost everyone is aware of its most well-known product: Bitcoin. However, what is it in reality?

 

 

 

One kind of digital currency is a cryptocurrency, such as Bitcoin. In contrast to conventional currencies like the dollar or pound, Bitcoin is not governed by financial entities with a central authority. This makes it attractive among those who believe that financial freedom can be achieved through decentralization, but it also makes it quite volatile, with its value fluctuating based on the whims of buyers and sellers of Bitcoin.Its price increased quickly in February and March 2024, briefly setting a new record high. However, the cryptocurrency’s value can fall just as fast as it can rise; this is a pattern that has appeared repeatedly since the coin’s introduction.

 

The “halving” of Bitcoin

The technology that powers Bitcoin, known as the blockchain, is maintained by compensating so-called “miners” with bitcoin for their work of validating transactions.There isn’t an endless supply of bitcoins, though, in contrast to certain other virtual currencies. There is a limit of 21 million that can be mined, the most of which are already in use.

Accordingly, the quantity of bitcoins awarded to participants who successfully validate transactions is divided in half about every four years, or when the size of the Bitcoin blockchain reaches a particular threshold. The most recent “halving” (also known as “halvening”) of Bitcoin occurred on April 20, 2024, when the incentive for miners was lowered from 6.25 bitcoins to 3.125 bitcoins.

 

This guarantees that, theoretically, as demand for Bitcoin increases over time, its supply is stretched farther. However, since there are less incentives for miners, some may wonder if it makes sense financially for them to keep up the expensive maintenance of their potent machines.

 

Blockchain

All cryptocurrencies and several associated items, such as non-fungible tokens (NFTs), are based on blockchain technology. It is essentially a virtual spreadsheet that keeps track of every cryptocurrency purchase and sale. The name comes from the way they are arranged—in blocks that are connected in a massive chain.A vast network of volunteers records each bitcoin transaction individually onto the blockchain, using computer programs to confirm the transaction’s legitimacy.

The network of Bitcoin is encouraged to do this since the first individual to validate a transaction will receive a Bitcoin reward. In addition to being potentially profitable, mining is also controversial due to the enormous amount of energy required as individuals compete globally to update the blockchain first.

 

 

Cryptocurrency Trading

The online marketplace where investors can purchase, sell, and trade cryptocurrency is known as a crypto exchange. A cryptocurrency exchange functions as a brokerage, much like a traditional investment bank, where users may move fiat currency, such as dollars or pounds, from their bank into cryptocurrencies, such as Bitcoin or Ethereum. The majority of transactions come with costs.

 

Digital Currency Wallet

An investor’s cryptocurrency is kept in a crypto wallet. It keeps the digital assets in a similar manner to how a conventional wallet keeps cash. A heated wallet and a cold wallet are the two varieties. Since hot wallets are online, they may be accessed more easily and quickly for transfers. Cold wallets are actual physical objects, similar to USBs with specific design, that are used to store cryptocurrency offline for longer-term and safer storage.

 

Ethereum

The term Ethereum refers to both the blockchain that powers it and the second-largest cryptocurrency after Bitcoin, which is symbolized by the Ether token. This facilitates a wide range of digital assets and applications, including non-fungible tokens.It operates similarly to Bitcoin and other cryptocurrencies, but in 2022 it made the switch to a more environmentally friendly operating system that uses less computers and energy.

 

 

What are NFTs, and why do some have a million dollar value?

 

ETFs, or exchange-traded funds

With ETFs, investors may wager on a variety of assets without having to own any of them directly. Similar to shares, they are traded on stock exchanges and their value is determined by the real-time performance of the entire portfolio. They may consist of bullion in both gold and silver, or a blend of shares in insurance and technological firms.Throughout the day, a spot Bitcoin ETF makes direct purchases of the cryptocurrency “on the spot” at the going rate. Although Bitcoin was already indirectly present in certain ETFs, the US approved multiple spot Bitcoin ETFs in January 2024. This made it possible for new investors to enter the speculative Bitcoin market without worrying about digital wallets or understanding cryptocurrency, including investment management companies like Fidelity and Blackrock.

 

 

 

 

Is Blockchain Enough for a Major Role?

• Is Blockchain Enough for a Major Role?
  

MAY 6,2024

NR.BALOCH

The emergence of Bitcoin in 2009 marked the general awareness of blockchain technology. It was once heralded as a ground-breaking financial transaction solution, but its potential has now been realized in a wide range of sectors, including supply chain management and healthcare. But even with all of its promise, the question still stands: Is blockchain really ready for the big time?

 

Comprehending Blockchain Technology

Prior to exploring its preparedness, let us understand the basics of blockchain technology. A blockchain is fundamentally a distributed, decentralized ledger that keeps track of transactions over a network of computers. A chain of blocks is created when all of the transactions, or blocks, are safely connected to each other by means of cryptographic hashes. Transparency, immutability, and security are guaranteed by this design.

 

The Promise of Blockchain Immutability and Transparency: Blockchain’s decentralized structure, which allows all network members to access the same data, accounts for its transparency.

 Transactions are irreversible once they are recorded, guaranteeing immutability and user confidence in the system.

Security: Blockchain is extremely secure against fraud and tampering because to its cryptographic algorithms. Because decentralized consensus mechanisms like Proof of Work or Proof of Stake require network participants to validate transactions, they further increase security.

Effectiveness and Economical Benefits:Blockchain promises potential cost savings and operational efficiencies by doing away with middlemen and automating operations through smart contracts. This is especially important for sectors like financial services and supply chain management that have a lot of intricate and time-consuming procedures.

Adoption’s Obstacles

Although blockchain technology has great potential, there are a few obstacles in the way of its general adoption:

• Scalability: Scalability is one of the biggest obstacles. Transaction throughput slows down as blockchain networks expand, causing congestion and increased costs. Although sharding and layer-two scaling are being explored as solutions, they have not yet been widely implemented.
• Regulatory Uncertainty: Blockchain and cryptocurrency regulations are subject to vast variations in international law. Regulations that are too loose or too severe can prevent investors and users from investing in blockchain ventures.
• Interoperability: Since many blockchain networks run independently of one another, interoperability across many platforms can be difficult. The ecosystem’s ability to communicate and share data across heterogeneous networks must be seamless.
• User Experience: Complex procedures and a lack of user-friendly interfaces are common problems with blockchain applications. Enhancing the user experience is crucial for gaining widespread acceptance, particularly in apps that interact with customers.

Utilization Examples and Achievements

Several businesses have adopted blockchain technology in spite of these obstacles:

• Financial Services: Financial firms are very interested in blockchain due to its ability to cut costs and streamline procedures. Projects like Ripple, which seeks to transform international payments, serve as examples of how blockchain is affecting the sector.
• Supply Chain Management: One of the main challenges in supply chain management is tracking the provenance of items and verifying their validity. Transparent and traceable supply chains are made possible by blockchain technologies, such as IBM’s Food Trust, which boost productivity and consumer confidence.
  
• Healthcare: Blockchain has the potential to revolutionize the healthcare industry by securing patient data and streamlining the maintenance of medical records. Blockchain technology is being used by initiatives like Medicalchain to enable telemedicine and secure access to medical records.

Final Thought: Primetime Prospects

Blockchain technology has the ability to upend sectors and spur innovation, despite certain difficulties. With the ongoing development of scaling solutions, regulatory clarity, and interoperability standards, blockchain is progressively becoming a practical solution for practical uses.Collaboration between technology developers, regulators, and industry stakeholders is essential to realizing blockchain’s promise. Blockchain is positioned to become a cornerstone technology in the future digital economy with coordinated efforts to overcome its drawbacks and build on its advantages.

China: A Stablecoin Pilot?

 China: A Stablecoin Pilot?

MAY 6,2024

NR.BALOCH

Hong Kong’s open, market-oriented, and internationally interconnected institutional structure, along with its well regarded monetary and regulatory agencies, make it an excellent choice for prototype financial ventures. The development of a stablecoin for usage in China’s Greater Bay Area that is tethered to the offshore yuan is one such plan.

Hong Kong – As soon as possible, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will set up a regulatory framework for stablecoin issuers operating in the region. Fintech companies and asset managers are apparently keeping a close eye on the initiative. Other administrations ought to follow suit.

One kind of cryptoasset called stablecoins is designed to keep its value consistent with a target currency. Stablecoins that are “collateralized” are supported by a reserve asset pool that may consist of commodities, other cryptoassets, or fiat money. However, not all stablecoins are supported by reserve assets. Unbacked stablecoins, on the other hand, aim to preserve a steady value by other strategies, like supply-limiting algorithms that establish a market value.

As of right now, stablecoins lack both a widely accepted standard and a legal structure to control them. However, the market is huge and expanding quickly. The estimated total market value of stablecoins has increased dramatically from $5.9 billion to over $130 billion since the start of 2020. Because of the US dollar’s dominance in the market, stablecoins linked to it

With almost 70% of the market, Tether is in the lead, followed by USD coin with 20%. According to Tether, as of the end of September 2023, it had $86.4 billion in assets against $83.2 billion in liabilities. These assets included approximately $56.6 billion in US Treasury bonds, $5.1 billion in secured loans, $3.1 billion in precious metals, $1.7 billion in Bitcoin, and $2.3 billion in other investments. During the first quarter of 2023, the company declared a $1.4 billion profit.

Stablecoins aim to provide a more dependable substitute for cryptocurrencies such as Bitcoin, which are highly volatile and dependent on nothing. Collateralized stablecoins have “generally been less volatile than traditional cryptoassets,” according to the Bank for International Settlements. Meanwhile,

Furthermore, as stated by the BIS, “users’ stablecoins could not always be fully and instantly redeemed by stablecoin issuers.” In the end, not one of the more than 200 stablecoins that are now in use satisfies the “essential requirements for being a reliable means of payment in the real economy” and a safe store of value.

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There is cause for optimism that Hong Kong could propel advancement. Since the Hong Kong dollar, the official currency of the region, is fixed against the US dollar, “Digital HKD” is effectively a stablecoin. (The Digital HKD was effectively treated as such in the September 2023 policy statement published by the HKMA.) Above all, Hong Kong’s open, market-oriented, internationally interconnected institutional structure makes it an excellent choice for pilot projects. Its monetary and regulatory agencies are also highly recognized.

The development of a stablecoin based on the offshore renminbi for use in the Greater Bay Area, an economic region with a combined GDP of $1.9 trillion that consists of nine cities in Guangdong province surrounding the Pearl River Delta as well as Hong Kong and Macau, might be one such initiative. This “GBA stablecoin” can be easily traded for the US dollar, Hong Kong dollar, and offshore renminbi, and it could help with the creation, trading, and settlement of new digital financial instruments in Hong Kong. GBA stablecoin may be used to price financial items that are issued outside of China’s mainland.

Under this plan, the financial goods and digital infrastructure—such as offshore bonds issued by GBA firms and local governments—would be sold in Hong Kong, while the majority of their underlying physical assets would be located in mainland China. This system is comparable to H-shares, which are Hong Kong-based stocks of vital mainland-based enterprises traded. In essence, what would emerge from this would be an offshore digital renminbi that is operational and gains from the increased trust in the market that comes from HKMA monitoring. Without endangering the stability of onshore renminbi, this would increase demand for offshore renminbi and hasten the internationalization of the yuan.

Together with its counterparts in mainland China, Thailand, and the United Arab Emirates, the HKMA has already carried out a six-week central bank digital currency (CBDC) experiment. One of the first multi-CBDC programs to settle real-value, cross-border transactions on behalf of enterprises was Project mBridge.

The monetary authorities are currently developing the mBridge platform to speed up cross-border retail or wholesale payments in response to the pilot’s success. This shows that GBA stablecoin could support China’s ambitious multi-country Belt and Road Initiative (BRI) with offshore financing and enable international trade and investment more generally with the right digital financial infrastructure, which makes use of distributed blockchain technology to enable “smart contracts.”

The success of such a pilot would depend on the demands of banks, companies, investors, and consumers in addition to financial institutions’ willingness to issue the stablecoins. Some people might be hesitant to use GBA stablecoin in the existing US dollar-based financial system. However, many market players, including those involved in BRI projects, are looking for a solid alternative to the US currency, including dollar-backed stablecoins, given America’s geopolitically motivated weaponization of global banking.

Which stablecoins succeed will ultimately depend on how well the returns on equity and the risks attached to a particular coin are balanced. There is a lengthy trial and error procedure ahead.

America Has to Take the Lead in Crypto Regulation

America Has to Take the Lead in Crypto Regulation

MAY 6,2024

NR.BALOCH

The United States needs to utilize the upcoming year to encourage transparency and confidence in the digital asset market if it hopes to keep its position as a global rule-maker and avoid turning into a rule-taker. The United States of America has three options for preserving its competitive advantage in cryptocurrency: designation, regulation, and legislation.

Compared to 2022, which proved to be a catastrophic year for the digital asset markets, 2023 was marked by proactive regulatory measures and favorable industry advancements. The largest cryptocurrency exchange in the world, Binance, and US regulators have reached a deal that is expected to increase market-wide responsibility, openness, and confidence. In the meantime, the majority of international financial hubs have established precise rules for the cryptocurrency sector.

Even with this progress, if new regulations are not established in 2024, the US runs the risk of being an exception. Three possible avenues exist for policymakers to manage opportunities and hazards in the cryptocurrency market: designation, legislation, and regulation.

When US President Joe Biden issued his Executive Order on Ensuring Responsible Development of Digital Assets two years ago, it was a significant step toward bringing regulatory clarity. Despite the fact that almost all digital assets are valued in US dollars, legislative measures have since faltered, and the US has lagged behind other nations in industry regulation.

The irony is that international efforts to regulate the cryptocurrency market have been spearheaded by US-led organizations including the Financial Stability Oversight Council, the President’s Working Group on Financial Markets, and the Financial Stability Board. Treasury Secretary Janet Yellen, who chairs the Financial Stability Oversight Committee, has also pushed Congress to move legislation governing stablecoins denominated in dollars. Chair of the Federal Reserve Jerome Powell has repeated these demands.

The potential concerns connected to cryptocurrency are highlighted by these calls for legislation, which are reinforced by international regulatory authorities. Utilizing blockchain and other cutting-edge technologies would be a better course of action than allowing the industry to collapse or imposing strict regulations, as some economists advocate. This is because it will ensure that financial services can meet market demand outside of regular banking hours, a challenge that is particularly relevant to international payments. Now that almost all of the world’s largest banks, asset managers, fintechs, and payment services providers have created digital asset strategies, it is past due for US lawmakers to catch up and enact technology-neutral, morally-based laws that promote competition in the financial markets.

Congress must so provide federal regulatory bodies the authority to create market regulations. In spite of criticism from politicians such as former US President Donald Trump, who is expected to be the Republican Party’s nominee for president in November, this involves investigating digital currencies issued by central banks. Along with modernizing state and federal banking and payment systems, it also entails developing regulations for digital wallets. In order to preserve America’s competitive advantage and prevent a potential fintech “constitutional crisis,” several steps are essential.

The necessity for prompt action has again been stressed by the Treasury Department. Deputy Secretary Wally Adeyemo urged Congress to address the risks associated with illicit operations sponsored by cryptocurrency in November, citing the lack of regulatory control and the opaque nature of some cryptocurrency products. These items are financial fentanyl at worst, and financial alchemy at best.

American interests are threatened by the lack of a US regulatory framework for dollar-referenced stablecoins, which are becoming more and more licensed in places like Singapore, Hong Kong, and the United Arab Emirates. This void might encourage the development of goods that circumvent US laws and take advantage of consumer confidence in the dollar, thereby serving as a haven for unscrupulous operators.

The US must, at the very least, make sure that foreign issuers of stablecoins pegged to the dollar abide by the Bank Secrecy Act, as well as applicable sanctions, anti-money laundering, and counterterrorism legislation. If not, digital dollars might compromise global security instead of reducing the technological threats brought about by dollar primacy.

However, the US needs to create new regulations before labeling cryptocurrency companies or technologies as dangers. Although open-source technologies have previously been categorized as national security threats, significant token issuers or exchanges have not yet been designated as systemically important financial institutions—a designation that would imply they are too large to fail. Rather than permitting unrestrained offshore or near-shore cryptocurrency operations to flourish or letting other nations establish the parameters for a business that is as fundamentally American as the

There is a lot of policy movement because to the stablecoin bill that the House Financial Services Committee advanced in July 2023. If this bill is approved by Congress with bipartisan support, it will be the greatest legislative chance to address the rise in cryptocurrency dollar counterfeiting. Furthermore, it might be America’s last opportunity to continue dominating the markets for digital assets.

It will undoubtedly be challenging to move forward during a divisive presidential campaign. However, if the US wants to continue being a rule-maker rather than a rule-taker, digital asset policy must be advanced. This is especially important now that the Markets in Crypto-Assets (MiCA) framework of the European Union is about to take effect later this year, potentially producing a transatlantic gap in the regulation of digital assets.

This year’s US policy agenda for digital assets must prioritize worldwide regulatory harmonization over regulation, legislation, and designation in order to avert such a result. However, without clear regulations and American leadership in the cryptocurrency business, these initiatives would inevitably fail.

BINANCE NEWS

MAY 5,2024

BY NR.BALOCH

BINANCE NEWS

Investors in altcoins have been the main victims of the latest slump in the cryptocurrency market, according to CryptoPotato, with many of them suffering losses. On the other hand, holders of meme coins, such Dogecoin (DOGE) and Shiba Inu (SHIB), are comparatively better off as a result of prior price hikes.

In spite of a strong start to the year and the halving of Bitcoin (BTC) last month, there has been a significant pullback in the cryptocurrency market. In little than a week, the main cryptocurrency’s price dropped by 10% and fell below $60,000. Leading digital assets including Ripple (XRP), Solana (SOL), and Ethereum (ETH) are also sharply negative.

The top ten cryptocurrency projects with the highest number of holders that are now suffering paper losses were listed by market intelligence portal IntoTheBlock. Investors in Algorand (ALGO) led the

KNOWING HOW TO LAUNDER MONEY USIING CRYPTO VS. REAL ESTATE

 Article Outline

• The next sections include an introduction, a brief summary of the subject and its significance, Understanding Crypto vs. Real Estate for Money Laundering a comparison of the two types of properties in terms of money laundering.
• Data from Europol an overview of Europol’s money laundering results, and more. 
• Real estate is preferred for money laundering due to the following reasons: 
• Factors Contributing to Real Estate’s Prevalence
• Challenges with Cryptocurrency Regulation
• Discussion of Cryptocurrency Regulation
• Benefits of Real Estate for Money Laundering
• Public Perception vs. Reality**; Dispelling myths about money laundering; The following are some examples of how real estate is used in money laundering
• Case Studies
• Techniques Used in Real Estate Laundering
• Common Methods Applied in Real Estate Laundering
• Measures to Combat Real Estate Laundering
• Efforts to Prevent Real Estate from Being Misused
• Conclusion 
• Highlighting Important Points and Stressing the Need for Vigilance 

Commonly Held Myth: The Predominance of Real Estate Over Cryptocurrency in Money Laundering When it comes to financial crime, Bitcoin is frequently highlighted as the main instrument used for money laundering. But as recent data from Europol reveals, real estate is a more effective means of laundering illicit profits than cryptocurrency. Let’s examine the truth behind this common misperception. 

 

1. Knowing How to Launder Money Using Crypto vs. Real Estate
2. Understanding Crypto vs. Real Estate for Money Laundering
3. The Crypto Narrative

Cryptocurrency is portrayed in the media as the ultimate means of financing illegal activity. This impression has been influenced by its decentralized structure, pseudonymous nature, and seeming anonymity. Crypto is obviously a part of money laundering, but it’s not the main player in the game.

 Real Estate’s Underestimated Role

The media portrays cryptocurrency as the most effective way to finance illicit activities. Its pseudonymous nature, decentralized structure, and apparent anonymity have all contributed to this image. Although cryptocurrency plays a role in money laundering, it is not the primary actor. 

Data from Europol

The most recent money laundering report from Europol provides a clear picture. As per their research, a considerable proportion of monies that are laundered are facilitated through real estate transactions as opposed to cryptocurrency exchanges. This casts doubt on the widely accepted story and emphasizes the need for a more comprehensive understanding of financial crime. 

 

• A Factor Affecting the Prevalence of Real Estate
• Tangibility and Perceived Legitimacy

In contrast to cryptocurrencies, which are only available online, real estate provides a physical asset that can be purchased, sold, and kept in person. Compared to cryptocurrency transactions, real estate transactions are less investigated because of their intrinsic tangibility.

 Regulatory Loopholes

Unlike cryptocurrencies, which are exclusively accessible online, real estate is a tangible asset that can be bought, traded, and retained locally. Because real estate transactions are inherently more tangible than bitcoin transactions, they are subject to less investigations

Value Appreciation and Wealth Preservation

The added benefit of long-term wealth preservation and value appreciation is provided by real estate. Criminals can profit from rising property values over time in addition to laundering their money by investing illicit monies in real estate.

Diversification and Portfolio Concealment

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Money launderers might spread their risk and hide the full amount of their criminal holdings by spreading their illicit assets across several properties. It becomes more challenging for law enforcement organizations to locate and successfully seize criminal assets as a result of this diversification. 

 

Reality versus Public Perception

The public is frequently misled by the dominant narrative to believe that bitcoin is the main medium used for money laundering. Europol’s results, however, refute this notion by emphasizing how crucial real estate is in aiding illegal financial activity.

Case Studies

1. Luxury Real Estate Purchases

Luxurious real estate has been used as a means of laundering illicit funds in a number of well-publicized situations. Criminals have used real estate investments to hide the source of their unlawful money, from large estates in the Caribbean to penthouse apartments in Manhattan.

       2. Hell Company Transactions

Real estate transactions are typically facilitated by shell firms, which are frequently founded in jurisdictions with loose disclosure laws. These enigmatic business formations act as intermediaries for money laundering, hiding the ultimate benefactors’ identity behind a curtain of secrecy. 

Methods Applied in the Laundering of Real Estate

1. Property Flipping

Flipping properties refers to the quick purchase and sale of real estate with the goal of deceitfully raising its value and transferring money from one source to another. Money launderers can create the impression of genuine revenue while concealing the true source of funds by quickly transacting a number of times.

     2. Mortgage Fraud

Mortgage fraud schemes entail getting loans to buy real estate by providing false or misleading information. Through the appearance of genuine mortgage payments, these fraudulent transactions successfully pump illicit cash into the lawful financial system.

Measures to Combat Real Estate Laundering

Enhanced Due Diligence

Strict due diligence procedures can be used to detect and reduce the risk of money laundering in real estate transactions. Financial institutions and regulatory agencies can better identify suspicious activity by thoroughly screening buyers and sellers. 

 

 Enhanced Reporting Requirements and Transparency 

Closing regulatory gaps and discouraging money launderers can be achieved in part by enforcing more stringent reporting requirements on real estate brokers and agents and by improving transaction transparency. Regulations requiring thorough disclosures and transaction reporting can help authorities monitor and hold the real estate industry more accountable.

Conclusion

Even though cryptocurrency is frequently the main topic of conversation when it comes to money laundering, real estate still plays a big part in helping to facilitate illegal financial activity. The data from Europol highlights the need for a more comprehensive understanding of financial crime and a multifaceted strategy to tackle money laundering in all of its forms. 

 

 Frequently Asked Questions (FAQs)

1. Is cryptocurrency completely irrelevant in money laundering compared to real estate?

 Although real estate is still the most popular instrument for money laundering, bitcoin is nonetheless being used in some illegal activities because of its global accessibility and pseudonymous character.

2. Are there any specific regions known for their lenient real estate regulations?

   Yes, certain jurisdictions, such as offshore tax havens and countries with lax oversight, are notorious for their lenient real estate regulations, making them attractive destinations for money launderers.

3. How can people safeguard themselves against unintentionally taking part in real estate laundering schemes?

 Being alert is essential. Investigate properties and parties to transactions in detail, and notify appropriate authorities or financial institutions of any questionable conduct. 

 

4. What are some indicators that money laundering might be involved in a real estate transaction?

 Unusual huge cash payments, intricate ownership arrangements involving shell corporations, and deals involving properties with no discernible legal use or purpose are examples of red flags. 

 

5. How can financial institutions help stop the money laundering of real estate?

 Financial institutions play a critical role in identifying and stopping money laundering related to real estate by putting in place rigorous due diligence procedures, flagging suspicious transactions, and collaborating with