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The Impact of FUD On The Crypto Market: Time To Fight Back
Fear, Uncertainty, and Doubt, or FUD, is a big problem in the cryptocurrency industry. As CEO of one of the industry-leading crypto exchanges, I often have to be prepared for dealing with rumors, misinformation and bias, and understand how all of these developments affect the broader crypto industry. While our company is dedicated to countering FUD whenever possible, individual users also have their roles. The FUD Problem In Cryptocurrency Anyone active in the cryptocurrency world for some time will know there have been numerous attempts at discrediting the industry. Many people appear to have a vested interest in affecting market prices for their personal gain. The easiest way to do so is by spreading misinformation and hoping it gets picked up by blogs, news outlets, or even mainstream media. Once the momentum starts to build with the negative news, the markets will often shed value, and the orchestrators can profit. A good example of such a FUD campaign was the report by Zeus Capital LLP — not the UK bank by the same name — and its focus on Chainlink pumping and dumping LINK, including the project's partnerships with major technology players. One of the Zeus reports points at the LINK price skyrocketing by 62% following partnership news, allegedly confirming Chainlink's self-fulfilling scheme. They also advised users to short LINK to a price of $0.07, although no one seemed intent on following that guideline. The reports by Zeus Capital LLP were eventually invalidated and the team disappeared into obscurity when its orchestrated FUD campaign did not deliver suitable results. The "FUD" factor is, in my opinion, a unique aspect of cryptocurrencies. Although there are technicals and fundamentals, like in any other financial market, FUD seems to be more prevalent in crypto space. That may be due to the inherently volatile nature of crypto markets or the sheer desire of traders to make money at all costs. Either way, FUD is a powerful weapon for speculators and a big threat for the market. One contributing factor to the success of FUD is the immaturity of cryptocurrency. Although the concept has changed many people's lives — including my own — it is still a very new industry. Moreover, the investors entering the market today will often lack knowledge about how and why these markets go up and down. Many people enter this market and trade with their emotions, which is a surefire way of losing money. Emotional traders are more prone to FUD and often make risky and hasty decisions, creating a cascading effect on market prices. What Types Of FUD Are There? Bitcoiners and altcoiners alike have seen their fair share of Fear, Uncertainty, and Doubt. We seem to encounter new fake stories and rumors more often than ever before, which coincides with the ongoing growth of the cryptocurrency industry. However, I have identified the traditional FUD types one is likely to encounter. These misconceptions, some of which are partially true facts, although not telling the whole story, have become engrained in society and sometimes are very hard to remove from people's mindsets. Volatility: No one denies cryptocurrencies are volatile, more so than other assets. Measuring the success of Bitcoin and altcoins through a traditional mindset leads to a wrongful interpretation of the volatility and why it happens. Quantum Computing Will Destroy Crypto: Advances in quantum computing may impact cryptographic measures found in Bitcoin and other cryptocurrencies. However, such threats are decades, if not longer, away, and the necessary technology for large-scale quantum computing is far from production-ready. Electricity consumption: There has been a lot of [incorrect] research on the electricity consumption of cryptocurrencies. This confusion turned into FUD that has been around for nearly a decade. Still, much has improved. There are dedicated efforts to rely on renewable energy for Bitcoin mining - up to 59.5% of all hashpower by Q2 2022 - and various other blockchains offset carbon emissions. It is not a big impact in the slightest. Company’s insolvency: Another pressing form of FUD is the rumor regarding major trading platforms and exchanges being insolvent. Such rumors have affected many big crypto exchanges including Coinbase and KuCoin. These rumors are getting worse now as crypto industry investors get nervous when bearish trends remain in place, but until proven correctly, they are nothing more than FUD. Recently, we faced two such FUD attacks that have been successfully countered through the proper investigation process and communications with our users As part of one of them, a Twitter user "urged" people to withdraw funds from KuCoin, seemingly intended to bring down the value of the exchange's native $KCS token. Ultimately, he deleted his Twitter account after he was publicly unmasked. It is not the first time such a FUD incident occurs, although previous FUDders were mature enough to admit they were wrong. That incident sparked the idea for us to have a new campaign at KuCoin that solely focuses on countering Fear, Uncertainty, and Doubt. The Anti-FUD Fund At KuCoin, we take matters like FUD very seriously. While we are a cryptocurrency exchange and trading platform, our mission also includes educating the mainstream on all crypto-related matters. As company CEO, I immediately supported the idea of creating an Anti-FUD fund with the purpose of online and offline anti-FUD education. Our effort will reward industry leaders and influencers fighting the growing amount of Fear, Uncertainty, and Doubt. Additionally, our fund will help track down FUDders who purposefully spread misinformation, and it will take legal action against those individuals if necessary. As the cryptocurrency industry grows, we need to fight back against those who want to limit innovation and chase personal gain at the cost of others. FUD can significantly impact market prices, but also those who invest in these currencies or are looking to set up their crypto portfolios. With the Anti-FUD Fund, the kid gloves have come off, and it is time to take this to the next level. Just like FUDders step up their game, it is now up to the cryptocurrency community and its influencers to do the same. FUD needs to be weeded out altogether, and that can only happen by joining forces and closing the ranks. Image sourced from UnsplashBenzinga•
LIVE AMA UPDATE: We have worked through the lag issues impacting the live AMA stream. We will now recommence with Paddy at 13.30 UTC. A new link will be shared on here, Telegram and in Discord shortly. Thanks again for your patience!
LIVE AMA UPDATE: We have worked through the lag issues impacting the live AMA stream. We will now recommence with Paddy at 13.30 UTC. A new link will be shared on here, Telegram and in Discord shortly. Thanks again for your patience!Bloktopia•
Vitalik Buterin: Ethereum Miners Moving Chains Won't Impact The Merge
Ethereum (CRYPTO: ETH) creator Vitalik Buterin isn’t fazed by miners moving to other blockchains. What Happened: “I don’t expect Ethereum to really be significantly harmed by another fork,” stated Buterin in a webinar seen by Bloomberg on Saturday. “In general my impression from pretty much everyone I talk to in Ethereum ecosystem, they have been completely supportive of the proof-of-stake effort and the ecosystem has been quite united around it.” In fact, last month, Buterin encouraged users who preferred Proof-of-Work over Proof-of-Stake to move onto the Ethereum Classic (CRYPTO: ETC) blockchain. Outside of Ethereum, ETC has undoubtedly been the recipient of the most Merge-related attention. This is evident given the asset’s 140% price rally over the last month and the fact that the network’s hash power surged to an all-time high ahead of 30.34 TH/s, meaning more miners are mining ETC. Still, some crypto market participants have suggested that the Ethereum network could be subject to another hard fork that would retain the Proof-of-Work mining consensus. See Also: 33% Think ETH Will Fork Into 2 Chains Post Merge: Survey Buterin said that those who were pushing for a Proof-of-Work ETH chain post-Merge are “simply trying to make a quick buck.” “I’m sure there’s going to be problems… if they want to make a fork, it’s on them to mitigate those problems,” Buterin said, during South Korea Blockchain Week, reported by CryptoSlate. Price Action: ETH was trading at $1,731 at press time, gaining 2.84% as per data from Benzinga Pro. © 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Block Inc Q2 Earnings Highlights: Revenue And EPS Beat, Shares Fall On Outlook And Bitcoin Impact
Financial company Block Inc (NYSE: SQ) reported second-quarter financial results after the market close Thursday. Here are the key highlights for investors and details on how Bitcoin (CRYPTO: BTC) impacted the results. What Happened: Block Inc, which changed its name from Square in December, reported second-quarter revenue of $4.4 billion, down 6% year-over-year. Revenue beat a Street consensus total of $4.35 billion, according to data from Benzinga Pro. The company said excluding Bitcoin, second-quarter revenue was $2.62 billion, up 34% year-over-year. Block reported earnings per share of 18 cents in the second quarter, beating a Street consensus of 17 cents per share. The company reported a gross profit of $1.47 billion in the second quarter, up 29% year-over-year. Gross profits for both Square and Cash App grew by 29% year-over-year, with Square seeing $755 million and Cash App seeing $705 million. Block highlighted its food and drink business seeing the fastest gross profit of any company unit on a five-year CAGR basis. GPV from Square for Restaurants has more than doubled year-over-year through the first six months of the year. New mobile point-of-sale software was launched in the second quarter for tableside ordering and queues. The company’s Cash App Borrow segment was highlighted ,with over 1 million active accounts in June. For growth for its Cash App business, Block is focusing on: community, financial services, crypto, operating system, trust, commerce and global. Forty-seven million accounts that transacted on Cash App in the month of June. Retention was cited as strong and improving for Cash App. In-person buy-now, pay-later with Afterpay was launched in May for sellers in the U.S. and Australia. “These in-person capabilities build upon our online integration, creating a truly omnichannel BNPL experience for buyers,” the company said. Related Link: More Runway Left For Block What’s Next: Block sees a focus on three strategic priorities moving forward: omnichannel, growing upmarket and expanding globally. The company said the month of July is expected to see Square GPV up 18% year-over-year. Cash App business is expected to see gross profits up year-over-year for the month of July. The company said Cash App and Square are both well positioned to help customers and grow based off recent trends. Block updated investors on its operating expenses guidance. “We intend on being disciplined with our investments, particularly as we enter a potentially dynamic macro environment,” the company said. SQ Price Action: Block shares were down 5.35% at $84.90 in after-hours trading Thursday. Photo courtesy of Square. © 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fearful Impact of Global Recession on Crypto Market
According to the IMF, the economy dropped from 6.1% last year to 3.2 %in 2022. The crypto market dropped below
Sustainability and impact focused Topl blockchain closes $15 million round
Topl, the creator of a purpose-built blockchain that helps companies track sustainable initiatives, raised $15 million. The post Sustainability and impact focused Topl blockchain closes $15 million round appeared first on The Block.
The Green Aspect of the Metaverse: We Are Making a Positive Impact, DecentWorld Says
Climate change has put sustainability at the forefront of people’s minds. Seems like there could be yet another positive aspect to metaverse living, that is - reducing emissions via access to virtual reality. Continue reading The Green Aspect of the Metaverse: We Are Making a Positive Impact, DecentWorld Says at DailyCoin.com.
Chelsea Manning Bullish on Bitcoin Technology but ‘Skeptical’ of Economic Impact
She said Bitcoin paved the way for technology that can be used to transmit data more securely.
The Sandbox Co-Organizing Metaverse Summit 2022 Showcasing Ecosystem Impact
Paris, France, 8th July, 2022, Chainwire The metaverse has gained momentum recently, and it is predicted to continue to expand in the years to come. Metaverse Summit, with […]
AAX Launches Impact Lab to Drive Inclusion and Sustainability within the Digital Assets Industry
Victoria, Seychelles, 8th July, 2022, Chainwire AAX Impact Lab’s recent research report provides insights on the intersection of impact investing
How Will The EU's Finalised Regulations Impact The Crypto Market?
Whilst Bitcoin (CRYPTO: BTC) remains below $20,000, the EU have finalised the MiCA Proposal - Markets in Crypto-assets (legislative proposal developed to help streamline distributed ledger technology (DLT) and virtual asset regulation in the European Union). These regulations will challenge crypto companies to help prevent money laundering and other illicit activities potentially involving digital assets. Spanish Green Party lawmaker Ernest Urtasun, who took part in the process, explained: “The new rules will enable law enforcement officials to be able to link certain transfers to criminal activities and identify the real person behind those transactions.” A key development has occurred with ‘unhosted wallets’ - wallets held by private individuals that are not managed by a licensed platform. The EU Parliament has always been in favour of forcing CASPs (crypto asset service providers) to identify their "unhosted" counterpart when transacting. The finalised regulations claim, "in case a customer sends or receives more than 1k euros to or from their own unhosted wallet, the CASP will need to verify whether the unhosted wallet is effectively owned or controlled by this customer." This will not be taken well by many crypto users, who value their privacy, however for most transfers from/to wallets, there won't be a mandatory verification. Also, the initial demand called ("unhosted wallet verification") from the EU Parliament was weakened. In addition, unfortunately for stablecoin issuers, MiCA have introduced an option for EU authorities to stop stablecoin issuance (ARTs & non-Euro EMTs) if used on a large scale for payments. On a positive note, lengthy negotiations have resulted in DeFi being left out of MiCA scope. However, the commission will publish a separate report in 2023 for a new form of "embedded DeFi supervision". Furthermore, the Bitcoin ban which was discussed previously (involving the Proof of Work mechanism) has been neglected. Instead, CASPs will have to disclose information the sustainability of the crypto-assets they provide services for. Why are these regulations so key for the crypto market? As the EU is the first major jurisdiction to implement a comprehensive regulatory framework for crypto, these rules will set global standards and affect regulations globally (including the U.S.) Are these regulations a positive for the industry? MiCA includes aspects which many will be aggrieved about, including the ‘unhosted wallet’ rule, but in my opinion the rules are a net positive development for the crypto industry within the EU. Aside from the added clarity that many businesses and financial institutions have been waiting for, I think the most pleasing aspect was that the Proof-of-Work ban (introduced because of its environmental impact) has been taken off the table. This demonstrates how policy makers have listened to those fighting back against the proposed rules, and recognition of a concerted effort towards a sustainable future for Proof-of-Work mining. © 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.Benzinga•