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To help the cryptocurrency and blockchain industries move forward in innovative practices in the future, and facilitate innovations in the digital age, Gate.io has officially launched early-stage crypto venture capital fund - Gate Ventures.
Gate.io believes that continued innovation in Layer 1, Layer 2 and cross-chain solutions will be keys to the mass adoption of cryptocurrencies in the future. As the DeFi, NFTs, and Gaming markets are reaching new heights, and other new sectors like the ‘metaverse’ emerge, Gate.io aims to promote the forefront of innovations in people's lives.
To learn more about Gate Ventures or submit an application, please visit ventures.gate.io.
The cryptocurrency market is still in an adjustment period this week, and price fluctuations are relatively stable. The overall adjustment direction has been upwards. It is expected that the cryptocurrency price may continue to rise steadily next week. In terms of mainstream currencies, the price of BTC has gradually moved closer to the midline after falling below the 2x standard deviation Bollinger Band on the 10th. On the 15th, the BTC price has reached the 20-day moving average, and it will stand at the midline position in the next three days. Although the DeFi project has bounced back recently, the ETH spot price trend has maintained a trend that is highly similar to the BTC spot price this week. The spot price of ETH has also recovered from the downtrend and broke through the middle line of the Bollinger Bands, but it is obviously unable to continue to hit the upper line of the Bollinger Bands upwards. In terms of momentum indicators, both BTC and ETH prices showed an upward momentum. The ROC indicator and the WillR indicator both showed an upward trend, indicating that the two parties have begun to show their strength, and the price may increase further.
Shiba Inu Coin(SHIB) performed outstandingly this week, achieving four consecutive positives on the daily line and a sharp rise on the 16th. The current price of SHIB has broken through the upper bound of the Bollinger Bands, and the momentum indicator also suggests that the currency is in a state of strong growth. At the moment of the DeFI revival, SOL as a cross-chain project has attracted much attention in the early stage, and the price has risen.
Affected by the technical accident, the price of SOL, which has shined in the past few months, has seen a 7-day consecutive decline in price this week. The subsequent price trend will depend on the speed of solving its technical problems.
On the evening of the 13th, fake news surrounding Walmart's decision to adopt Litecoin went viral on the internet. This fraudulent piece of information exploded on social media on account of Litecoin's retweet, as well as the reports by several mainstream media outlets, including Bloomberg. At one point, Litecoin rose 32.8%, reaching $235.88 briefly. When Walmart came out to debunk the rumors, claiming no related collaboration with Litecoin was in place, and that an investigation was ongoing, the cryptocurrency quickly plummeted to $180. With over $3.5 billion worth of futures contracts liquidated across the network, the hype has clearly instigated extreme volatility in Bitcoin.
TIME magazine has recently announced its list of the 100 Most Influential People in 2021, in which Bitcoin and Dogecoin supporters, Tesla CEO Elon Musk, and Ethereum co-founder Vitalik Buterin both topped the chart. Former Reddit CEO Alexis Ohanian wrote, "What makes Vitalik so special … is that he is a builder's builder. No one person could've possibly come up with all of the uses for Ethereum, but it did take one person's idea to get it started."
The NFT marketplace OpenSea has surpassed 250,000 users in the past 30 days, and the trading volume topped 4 billion USD, both of which were record highs. However, a few days ago, some users publicly accused its internal staff of front-running to make illicit profits with insider information, which led to heated discussions and investigations in the community. A top executive was identified for misconduct and has since left OpenSea. Legal sources say that while these actions are not currently in violation of the law, they could raise the ire of regulators and lead to more stringent review conditions.
During Apple's 2021 keynote event on the 14th, an unknown bitcoin fraudster conducted a fake live stream by setting up a YouTube channel that highly resembled Apple's official channel. The meticulously crafted channel appeared at the top of search results, attracting over 160,000 viewers to be exposed to the fake news of Apple's purchase of 100,000 BTC. A giveaway was also set up for unsuspecting viewers to send a certain amount of crypto to the scammers.
News in the Financial Market
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has issued another warning that cryptocurrency exchanges like Coinbase should register with the agency. Gensler added: "They haven’t yet registered with us, even though they have dozens of tokens that may be securities." In addition, he assured the Senate that the agency is working on a set of rules to oversee the cryptocurrency market to protect the interests of investors as well as innovators.
Chinese real estate giant Evergrande Group is currently facing a serious debt default crisis, with several credit rating agencies including Fitch and Moody's saying that Evergrande faces a total debt of more than $300 billion and the default is very likely. Standard & Poor's has also downgraded Evergrande Group's credit rating to CC with a negative outlook. Speculations surrounding Stablecoin issuer Tether's commercial paper being backed by Evergrande have been publicly denied and refuted.
U.S. Treasury Secretary Janet Yellen has publicly warned that the government's limited cash for fiscal spending could run out as soon as next month. At that point, if the White House and Congress are unable to raise the debt ceiling in time, the U.S. government may risk a technical default in October. Goldman Sachs has also issued a warning stating that the imminent default is on par with the debt crisis in 2011. If decision-makers do not arrive at a consensus soon, the United States, burdened with trillions of dollars of government transfer payments will soon fall into another economic depression.
The House Committee on Ways and Means has released a proposal on raising the long-term capital gains tax rate for "certain high-income individuals" to 25 percent from the current 20 percent, along with a 3.8 percent surtax on net investment income. There are also plans to add digital assets to the "Wash Sale Rule", in an effort to prevent tax evasion via capital gains deductions by selling certain assets at a loss, and then immediately repurchasing the same asset within 30 days.
After officially banning residents from using cryptocurrencies such as Bitcoin for payments at the end of 2019, Behzod Khamraev, deputy chairman of Uzbekistan's central bank, said Bitcoin is widely considered "speculative" and can never be equal to legal tender such as the US dollar and the Euro. He also stated that Uzbekistan may never allow residents to use cryptocurrencies such as Bitcoin as a means of payment.
The Laos government has approved a pilot program allowing six companies in the country to try out cryptocurrency mining and trading, including four construction companies, one IT company and state-owned JDB Bank, according to local media reports. The aforementioned companies will be allowed to trade with Bitcoin and Litecoin. Meanwhile, the Laos government has instructed several regulators to set standards for cryptocurrencies that will be used in the country.
South Korean regulators are set to shut down more than 60 cryptocurrency trading platforms in the coming days, with 35 of them failing to obtain the certification required to register with the Financial Intelligence Unit, Bloomberg reported. Despite the large number, the top four South Korean platforms, including Upbit and Bithumb, are registered as legitimate trading platforms and account for about 97 percent of South Korea's trading volume. The closure of these 60-plus trading platforms is not expected to have a large impact on South Korean cryptocurrency trading volume, but could still result in a loss of nearly $2.6 billion for investors in cryptocurrency assets primarily listed in Korea.
Gate.io Weekly Blogs:
Author: Gazer. C & Charles. F (Gate.io Researchers)
* The article only represents the researcher’s views and does not constitute any investment advice.
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