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📈CryptoSlate: BTC exchange rate may rise after the Fed meeting
The U.S. Federal Reserve will end its meeting on February 1. The key rate will rise again. This time, bitcoin and gold may experience a rise.
The Federal Reserve will finish its regular meeting on February 1. Most observers expect: the key rate will rise by 25 points (0.25%) and enter the range of 4.5-4.75%. The next meeting will end on March 22. Another 0.25% increase is likely to be announced at that meeting. After that, the Fed will hold rates at the new level.
13 out of 24 meetings resulted in bitcoin rate decrease. The first hikes raised concerns and caused selling pressure on BTC. But the market adapted to the hikes and began to react less sharply.
In the current environment, CryptoSlate observers suggest paying attention to the correlation between cryptocurrency and gold. Since February 2022, the coincidence in movement between the two assets reaches an absolute maximum of 83%.
At the same time, gold reacts positively to rate hikes. This means that we should expect BTC to rise during a rate hike.
However, the geopolitical and economic situation does not guarantee that the Fed rate hike in March will be the last. In addition, the cryptocurrency market may be pressured by the bankruptcy of Genesis.
🚫Former advisor to China's central bank explained the reason for banning cryptocurrencies
Huang Yiping writes that money-laundering problems were the main reason. The PRC authorities use several means to control the movement of capital. Trading digital assets like cryptocurrency without controls and restrictions will have more negative consequences than positive ones, the researcher believes.
Due to a lack of fundamental value, electronic cash like bitcoin is considered a digital asset rather than a real currency. Studies show that about 25% of all bitcoin accounts and 50% of all trading activity is linked to criminality, the professor persuades.
Huang Yiping insists that banning cryptocurrencies may bring benefits in the short term, but in the long term, such an initiative requires more serious thought. Some digital technologies introduced by the crypto industry, such as tokenization, distributed data registry, have advantages. But long-term restrictions on bitcoin trading carry the risk of leaving people without important technological benefits.
The scholar believes that there is no certain ideal prescription for a developing country: what stance the government should take on cryptocurrencies. But at some point, it is better to have an effective strategy in place.
Earlier, a Chinese company reported on the development of a cross-border payment system for settlements in stabelcoins and digital currency of central banks.
🏙️NFT blue-chip Azuki's new virtual city Hilumia touches physical and digital worlds
The blue-chip NFT project Azuki has launched a virtual city called Hilumia. Hilumia boasts a toy store, arcade center, gym and even a romance competition called "Love Island." The virtual city launched earlier this week to celebrate Azuki's one-year anniversary.
Hilumia is an interactive virtual city that is shaped by the community and will expand over time," the firm told The Block, adding that its native Physical Backed Token (PBT) threads its ecosystem together. "PBT will also play a part in how Azuki bridges digital and physical. For example, the owners of the physical golden skateboard, upon scanning the PBT, will be enshrined in the Ruins. Azuki universe, connected to Hilumia and the bustling marketplace called Alley.
🇺🇲U.S. Internal Revenue Service made it compulsory to pay tax on profits from stacking
What happened? On January 20, the Internal Revenue Service (IRS) updated its information on dealing with cryptocurrencies. Taxpayers will now have to pay a portion of profits from stacking, airdrops, hardforces and mining. According to the statement, transactions involving digital assets generally must be reported on a tax return.
What else does the statement say?
The agency qualifies digital assets as property, and the same tax principles apply to them as to real estate. The IRS considers convertible virtual currencies and cryptocurrencies, stackable tokens and non-exchangeable tokens (NFTs) to be digital assets.
Taxable gain or loss can arise from transactions involving, among other things:
Sale of a digital asset for fiat
Exchange of a digital asset for property, goods or services
Exchange of one digital asset for another
Receiving a digital asset as payment for goods or services
Receiving a digital asset as a result of a hardforward, airdrop, stacking or mining
Receiving or transferring a digital asset for free (without providing a fee) that does not qualify as a gift
Transferring a digital asset as a gift if the giver exceeds the annual value of tax-free gifts
In February 2022, the U.S. Treasury Department reported on plans to exempt miners, software developers, and stacking pools from reporting to the IRS.
🆕XRPL has a new DEX - XMagnetic
XMagnetic implements a new mining concept - Proof Of Trade. Proof Of Trade. And the concept allows to introduce such mining in XRPL.
All you need to mine is to start trading on Magnetic DEX .
It is enough to make a transaction for a few XRP and you are already a miner! Wait until the end of the block (once every 60 minutes) and you will already receive your first reward.
Magnetic has already added a lot of mining pools for different tokens (MAG, xSTIK, LUC, RLT and others). On the pools page you can see increased rewards (per hold), remaining pool and other parameters: xmagnetic.оrg
Mining rewards increase based on token hold and NFT Magnetic Girls Buy NFT ownership
The main token of the exchange is MAG. It will only be distributed by the Proof Of Trade concept. There will never be an Airdrop MAG. There will never be free MAG giveaways. The project team will never have a fixed share of tokens. The team also gets its reward according to the mining algorithm.
The complexity of mining is gradually increasing, which reduces the incoming issue(like bitcoin) and increases the demand.
📈SushiSwap’s Jared Grey Unveils “10x Market Share” Plan
SushiSwap’s new initiatives for “revitalizing SushiSwap” will focus on scalability and sustainability. Grey’s announcement further stated: “by executing our vision, we intend to 10x our market share in 2023.”.
Positioning Sushi as a market-leading, community-centric DEX via “deep liquidity, optimal pricing, sustainable tokenomics,” and a user-friendly platform. Maintaining a decentralized organizational structure to promote product autonomy via best principles like “self-custody, equitable governance, & permissionless trading.”.
Implementing newly optimized tokenomics and improving liquidity, sustainability, community ownership, and DAO treasury diversification.
❗️RSI ON BITCOIN HAS TOPPED AT 90 POINTS
If we take a look on the chart, we will see that such highs on RSI took place before, here are some examples:
- December 2017 when Bitcoin formed an ATH and then dumped
- January 2021 when Bitcoin faced $40,000 resistance and dumped
- January 2023 — current case, Bitcoin grew up from $16,800 to $21,500 in a very short period of time and extremely overbought right now
🧐Tron’s USDD Stablecoin Experiences Fluctuations Again, Drops Below $1 Parity in Early 2023
The Tron-based stablecoin USDD fell below $1 parity again during the first week of 2023 and on Jan. 10. Four days ago, the stablecoin dropped to $0.972 per unit and on Tuesday, Jan. 10, 2023, USDD slipped to $0.977 per unit. At the time of writing, the Tron-issued stablecoin is trading at 98 cents per coin.
There have been some slight fluctuations in USDD’s price at the start of the new year, as the stablecoin has dipped to the 97-cent range on a few occasions in 2023. After Terra’s stablecoin depegging event in May 2022, USDD started to slip slightly below the $1 peg, causing anxiety in the crypto industry. A number of other stablecoins saw similar deviations. On June 19, 2022, USDD reached a low of 92.8 cents per unit, but the stablecoin managed to regain the $1 peg, trading between 98 cents and 99 cents per unit.
In mid-Dec. 2022, USDD deviated from the $1 parity, and Tron’s Justin Sun said that the team deployed more capital. USDD has seen fluctuations in value since Dec. 11, 2022, and it reached a low of $0.971 on Dec. 13, 2022, according to coingecko statistics. Last week, a similar instance occurred as the USDD price dipped to $0.972 per unit on Jan. 6, 2023. Charts show that USDD’s action four days later on Tuesday, Jan. 10, 2023, indicates that the stablecoin slid to a low of $0.977 per unit during the past 24 hours.
‼️TeraWulf has increased bitcoin mining by 2.2 times and is doubling its fleet of miners
U.S. mining company TeraWulf, amid a bearish phase of the bitcoin market, chose to increase its operational activity. During the fourth quarter of 2022, the company mined 2.2 times more bitcoins than in the third quarter, that is, 378 BTC.
In total, a fleet of 18,000 miners with more than 2 Eh/s were in operation. The company intends to double the number of mining machines in operation within a short period of time: 15 thousand additional miners are to be put into operation till April and then another 3 thousand miners will be put into operation till the end of the year. The supplier of this equipment is a company from China, Bitmain Technologies Limited. In addition, the company has agreed to purchase another 31,000 miners on the open market.
TeraWulf is also known for the fact that at present, in accordance with the requirements of Washington in the United States, the energy consumed by the organization is 91% generated from renewable sources. At its two U.S. sites, the average cost per kWh of energy consumed is 3.5 U.S. cents.
Due to the onset of cold weather in December 2022, the average cost of bitcoin mining nearly doubled from November, to $12,984,000 versus $6,151,000.
On January 9, when TeraWulf's operating results came out, the company's stock was up 2.45% on the Nasdaq. Investors' optimism towards the securities of this technology company contrasted with the fact that the general Nasdaq Comp index went down on that day, having lost 0.76%.
🔱Channel about everything everywhere all at once.
Discussing projects before the whole world talks about them.
Enjoy
©️Beosin: DeFi projects were attacked the most in 2022
Experts from Beosin believe that hackers are increasingly inclined to attack decentralized finance (DeFi) projects, as security in this sector leaves much to be desired.
Beosin, which specializes in smart contract security, published its 2022 Web3 security report. In it, the analysts highlighted that 113 of the 167 major hacks came from DeFi projects. This represents 68% of all attacks in the past year. This is followed by hacks of cryptocurrency exchanges, NFT projects, firewalls and wallets.
The report says the total loss of DeFi projects in 2022 was $950 million. To this is added another $1.89 billion that the industry lost due to bridge hacks. In total, about $3.6 billion was lost from attacks on all types of cryptocurrency projects last year, 47% more than in 2021 - then the amount did not exceed $2.4 billion.
According to experts, this situation is due to several factors, including the emergence of a large number of new DeFi projects and a lack of proper security testing before they are launched.
"Despite the significant decline in the global capitalization of the crypto market, the overall crime rate in the industry reached $13.7 billion in 2022, while the number of attacks has also increased. In 2023, security and regulatory issues will become more relevant than ever and will need to take the industry to the next level," the report says.
Immunefi, a cryptocurrency security company, estimates that 2022 was the largest year for total hacking and fraud in digital assets.
😗ARK Fintech Innovation ETF sells 99% stake in crypto bank Silvergate
ARK Fintech liquidated nearly all of its reserves in Silvergate Capital shares after the crypto-asset-focused bank reported that customer deposits fell from $11.9 billion to $3.8 billion. The bank was forced to sell securities and related derivatives at a loss of $718 million.
Silvergate told investors that the reason for this situation was the undermined confidence in this asset class by venture capital investors due to the consequences of the collapse of FTX.
By the end of last week, Silvergate's stock price was down nearly 50%. Since its record high of $222 in November 2021, the stock has fallen more than 94%, losing market value by about $5.5 billion. Recall that just two months ago, the ARK Fintech Innovation fund bought more than 200,000 shares of the bank.
In mid-December 2022, a lawsuit was filed against Silvergate and its CEO in the U.S. District Court for the Southern District of California. The suit alleges that the company and personally Alan Lane directly facilitated the fraudulent activities of the FTX cryptocurrency exchange.
📈The volume of crypto-payments in e-commerce increased by 63%
Payment processor CoinGate published a report detailing the behavior of buyers and sellers interested in cryptocurrency
Cryptopayment processor Coingate reported a significant increase in payments in digital assets in 2022, despite a prolonged bear market.
For example, Coingate said in its 2022 report that payments to businesses increased 63%, with customers using bitcoin (BTC) in 48% of transactions, down 7.6% from the previous year.
Customers using USDT, Ether (ETH), Litecoin (LTC), TRON, BNB and ADA took 7.6% of the altcoin market share in 2022, according to the company. About 15% of transactions used USDT Tether, while newcomers ADA and BNB were among the top 10, accounting for 1.1% and 3.5% of payments, respectively.
According to BitPay CEO Stephen Pehr, transaction costs were more important to consumers in 2022 than the price of cryptocurrency. As a result of Litecoin's lower transaction fees, users preferred it over bitcoins for small purchases.
However, Pair says that in 27 percent of merchant transactions, customers used LTC, while 41 percent used bitcoin. Because of its wider network and significant "mining power," customers likely preferred BTC for higher value purchases.
It is also reported that users invested cryptocurrencies in hosting and VPN services to improve their online privacy. Consumers also used cryptocurrency to pay for electronics, prepaid gift cards and video games.
In addition, there were 338% more Ethereum transactions in 2022 (408.5 million) than BTC (93.1 million). Average daily transactions for assets are estimated to be around 1.1 million for Ethereum and 255,000 for BTC.
Despite the volatility of the cryptocurrency market in 2022, a significant number of consumers still hold cryptocurrency. In addition, more and more users are willing to use cryptocurrency as a means of payment, despite the dominance of traditional methods, which include cash or credit card. At the same time, more than half of customers, 58%, are still hesitant to make transactions in the metaverse due to a lack of trust in available payment systems.
📋SushiSwap unveils new SUSHI development plan
SushiSwap CEO Jared Gray announced a new tokenomics for SUSHI to improve liquidity and decentralization of the project
SushiSwap developers could allocate a portion of the commissions from SUSHI's turnover to support the altcoin's quotes and improve the project's decentralization. This was the suggestion on tokenomics at the SushiSwap forum made by Jared Gray, head of the project.
As SushiSwap's CEO assures, the goal of the new tokenomics is to provide "long-term value for token holders and liquidity providers."
"The new economic model promotes holistic and sustainable value that scales with a decentralized exchange while increasing deeper liquidity to help revitalize the Sushi ecosystem," Gray said.
One tokenomics proposal proposes a freeze of up to 0.05% of the commissions that developers earn through user activity on SushiSwap. The fee freeze is supposed to help support SUSHI quotes.
SushiSwap proposes to use a similar percentage of commissions to burn SUSHI tokens. The innovations also apply to liquidity providers. For example, if a user is willing to block assets for a certain period of time, they will receive more bonus payments. SushiSwap intends to discuss the details of tokenomics by mid-January, and then decide whether to make changes to the project structure.
In December 2022, SushiSwap warned that the project is incurring significant operating losses, which could lead to a future shutdown. As Gray noted, the project had an annual loss of $9 million, which was later reduced to $5 million. However, even that reduction was not enough to maintain liquidity. SushiSwap's current reserves will only last a year and a half, Gray warned. At the same time, he noted that the company is not in danger of bankruptcy or mass layoffs if users approve the plan to redirect 100% of commissions to replenish reserves.
SushiSwap has long tried to establish an effective redistribution of capital between users and management. For example, in December 2021, former SushiSwap CTO Joseph DeLong threatened to leave the project if the community did not approve a plan to change the management structure.
🧐Bitcoin mining brings more than money to this East African country.
A Bitcoin mining project in a remote corner of Malawi connects more families to the grid while delivering economic empowerment to an impoverished region.
A Bitcoin mining project that taps into clean, stranded and excess hydro energy in Malawi, a landlocked country in southeastern Africa, has picked up steam. The company behind the project, Gridless, tweeted that there are now “1600 families connected to this remote hydro minigrid in the mountains of southern Malawi.”
The project exploits 50 kilowatts (kW) of stranded energy to test out as a new Bitcoin mining site. Erik Hersman, CEO and co-founder of Gridless, told Cointelegraph that while it’s a brand new mining project, the “impact was immediately felt.”
“The power developer had built these powerhouses a few years ago, but they weren’t able to expand to more families because they’re barely profitable and couldn’t afford to buy more meters to connect more families. So, our deal allowed for them to immediately buy 200 more meters to connect more families.”
Bitcoin miners are flexible but energy-hungry clients. They are a plug-in-and-play solution for sources of excess energy around the world. In Malawi, the miners run off environmentally friendly hydropower.
In Hersman’s words:
“The environmental footprint is quite light, as it is run off a river. And the Bitcoin mining didn’t change any of that.”
It’s Gridless’ second project in Sub-Saharan Africa to date. Late last year, a mining project in Kenya connected a remote community using excess hydropower.
The environment aside, the Bitcoin mine brings economic empowerment and job opportunities to Malawi. Hersman explained that electricity load shedding is common in Malawi, but the 1,600 families using the hydropower source do not have any power issues:
“It’s always amazing to me to see how useful and valuable mini-grids are to the community. It Bitcoin mining immediately changes the education, healthcare, business, logistics and wealth of the community where they go in.”
The #FIL broke through a major resistance zone and came back as major support around $4.63 to $5.00. The market is still healthy and #FIL maintains a bullish market structure. The set-up is already played out, so wait for the price to go back inside.
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🗣️According to Galaxy Digital, even more turbulent times lie ahead for bitcoin miners
Flat-rate contracts from hosting providers may become a thing of the past as the bitcoin mining hosting landscape changes in 2023, according to a recent Galaxy Digital report.
The hash rate will also rise 23% to 325 EH by the end of the year, according to the company's year-end mining report.
"The bitcoin mining industry is currently undergoing a purge of all the excess and misallocation of capital that supported weak business models during the 2021 bull market," the bank said in the report. "Miners ended 2022 in survival mode, setting the stage for more turbulent times in 2023."
Several bitcoin miners filed for bankruptcy amid falling bitcoin prices and rising energy prices, causing their margins to shrink. Those who have survived so far have been more cautious about spending on equipment that has lost tremendous value, and have been more financially responsible.
"In the future, it is important that miners develop a treasury management strategy that fits their future money needs," Galaxy said. However, they added, "We don't expect the same level of pressure from miners in 2023."
The firm notes that more than 1 GW of hosting capacity will go bankrupt in 2022.
Fixed-rate contracts may be a thing of the past.
"We could see hosting providers pushing for end-to-end capacity plus spread contracts, as well as offering customers certain revenue reduction incentives," Galaxy said.
🛡️FTX VCs liable to ‘serious questions’ around due diligence — CFTC Commissioner.
The lack of recordkeeping of FTX coupled with “an auditor no one’s ever heard of” forces the CFTC to ask questions about the mindset of the institutional investors.
Amid ongoing investigations around the defunct crypto exchange FTX, the Commodity Futures Trading Commission (CFTC) questions the due diligence conducted by institutional investors and their accountability regarding the loss of users’ funds.
CFTC Commissioner Christy Goldsmith Romero stated that VCs that had to write down their investments in millions of dollars to nearly zero raises “serious questions” about the due diligence conducted over the last year, speaking to Bloomberg.
She raised concerns about FTX CEO John Ray’s revelations in court about not having any records and controls over the exchange’s financials.
The lack of recordkeeping coupled with “an auditor no one’s ever heard of” forces the CFTC to ask questions about the mindset of the institutional investors. In this regard, Romero asked a series of questions:
“How is that possible? So do they turn a blind eye to it? Were they just distracted by this promise of innovation?”
FTX founder and former CEO Sam Bankman-Fried used trust as a marketing technique to gain investor confidence. However, Romero echoed the current investor sentiment while stating that “We know now that that's not true.”
As a result, she believed that the VCs backing FTX ignored the red flags when it came to due diligence, further questioning their involvement.
“So was there some conflicts that prevented them (VC backers) from really paying attention to the due diligence and the facts that they were uncovering?” asked Romero while concluding the topic at hand.
Shark Tank star and investor Kevin O’Leary, who once supported FTX, warned against the possible fall of unregulated crypto exchanges. He stated:
“If you’re asking me if there’s going to be another meltdown to zero? Absolutely. One hundred percent it’ll happen, and it’ll keep happening over, and over and over again.”
As Cointelegraph previously reported, based on a report by the National Bureau of Economic Research, up to 70% of the trading volume on unregulated exchanges is wash trading.
📉Kazakhstan's share of bitcoin hashtray fell 11.6% to 6.4%
ClimateTech Vice President Daniel Batten reported that Kazakhstan's share of the global bitcoin (BTC) hashtag has dropped to 6.4%, resulting in a 10% reduction in the entire network's carbon footprint.
In this regard, Batten noted that this proves that the bitcoin network is moving in the right direction.
According to Batten, the BTC network is now 52.2% using zero-emission energy resources. This suggests that there has been a 2.9% increase in clean energy use since the beginning of 2022. The remaining 47.8% still use fossil fuels, which contributes to carbon emissions.
Kazakhstan's current share of the bitcoin network's hashrate is 6.4%; in early 2022, the country accounted for 18% of global hashrate.
Kazakhstan's cool climate and abundant coal reserves have turned the country into a miner's paradise, allowing the state to rank second in hashrate share at the end of 2021.
Then, however, the country's energy costs began to rise, as did the strain on the power grid, forcing authorities to suspend operations of the mining farms. In July 2022, the country introduced a differential tax rate based on miners' energy consumption.
These steps forced miners to switch locations again, which led to a decrease in Kazakhstan's contribution to bitcoin's hash rate.
📈BitBoy gave a prediction of BTC at $30,000 in February 2023
Popular cryptocurrency youtuber Ben Armstrong wrote on social media: he expects the price of the flagship cryptocurrency bitcoin (BTC) to jump to $30,000 by the end of February 2023. The well-known BitBoy blogger also assured that all is not as positive for digital gold as one would like. He noted that it is not yet time to get excited.
BitBoy stressed that on the bitcoin exchange rate chart, "the same thing happens every four years." The expert hinted at halving, which happens once every four years. The previous halving occurred in 2020, so the next one should take place in 2024. This means that it is too early to expect price highs, and the rise in value to $30,000 will be short-lived.
After halving, which was programmed by developer Satoshi Nakamoto, miners will begin to produce half as much BTC per block. This will make digital gold more scarce. After the previous halving, the leading cryptocurrency began to rise in value only a year later, then reaching new historic highs. The record was fixed at the value of $69,000 in November 2021.
Another analyst, Ali Martinez, wrote on Twitter that bitcoin miners were actively selling their mined assets and acquired ones to lock in profits. In addition, the specialist assured: traders trading on the world's largest cryptocurrency exchange Binance massively opened short positions on BTC.
According to analytical resources, as of the morning of January 17, 51% of users of the trading platform had shorts on bitcoins. This number then increased to 57%.
At the time of writing this news, the flagship cryptocurrency BTC was trading at an average value of $21,244. This figure was up 1.88% in the past 24 hours. The market capitalization of digital gold was fixed at $409.27 billion. Daily transaction volumes of the virtual coin amounted to $22.54 billion.
💳Huobi and Solaris crypto-to-fiat debit card launches in the EU.
The Visa-backed debit card will allow Huobi users in the European Economic Area to pay from their crypto accounts at point-of-sale stations globally.
As the crypto space continues to expand into the mainstream, bridging the gap between digital and fiat currencies is a priority for many legacy financial institutions.
Cryptocurrency exchange Huobi announced its partnership with Solaris, a European financial services provider, to launch a crypto-to-fiat debit card.
The program, approved by Visa, allows Huobi users to use their digital assets globally at the point of sale. Users residing in the European Economic Area (EEA) will have access to the card beginning in the second quarter of 2023.
The EEA comprises all 27 European Union (E.U.) member states, as well as Iceland, Liechtenstein and Norway.
Commenting on the partnership, Andrea Ramoino, the chief strategy officer at Solaris, hinted at future developments in its collaboration with Huobi.
🤝Prime Numbers announces partnership with Impel
From the beginning, only the XDC Network (XDC) coin has been used to buy non-exchangeable tokens (NFTs) or do business on the Prime Numbers platform. This is changing with Prime Numbers' new strategic partnership with Impel . The all-new US+ stablecoin will be included in all of Prime Numbers' decentralized applications (DApps) in the future, allowing another asset option that the user base can take advantage of.
In late 2022, Impel introduced US+ to the XDC Network through an alliance with Fluent Finance so that the XDC Network community could take advantage of the best stablcoin offering on the market throughout the blockchain ecosystem.
The new Prime Numbers NFT trading platform, PrimePort, will also feature recently issued limited edition commemorative NFTs. NFTs were awarded to each attendee at the very first XDC Networking Community Social Event held in New York City on November 28, 2022 at the Marriott Marquis Hotel, which Impel organized with support from the XDC Community and XDC Foundation teams .
Impel is a financial technology innovator using distributed blockchain registry (DLT) technology to redefine the standard for cross-border payments and financial messaging through its dedicated ISO 20022 API, which provides additional instant settlement capability, including digital assets such as XDC or Stablecoin US+. Impel also offers a bridge from the publicly available XDC Network blockchain to the CorDapps private DLT R3 Corda platform, enabling banks and corporations to use digital assets for instant contracts and agreements.
Troy S. Wood, CEO and founder of Impel, said:
"Prime Numbers is committed to providing professional and useful products to the XDC Network community, and we at Impel are excited to work with them as we all strive to provide robust solutions that help make the XDC Network a great blockchain, recognized industry leader. ".
📎Grayscale BTC (GBTC) is finally bouncing off lows! This is something #BTC needs to jump above $17550 resistance!
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🐶Dogecoin surpasses bitcoin in mining revenue
Despite the recent decline in bitcoin mining sophistication, Dogecoin (DOGE) still outperforms the first cryptocurrency in terms of coin mining revenue.
According to CoinWarz, DOGE mining yields 75% more than BTC mining. At the same time bitcoin is only the fifth in the ranking of virtual currencies by the amount of profit from mining. On the first line is Verge (XVG), the mining of which promises huge profits.
In addition, Dogecoin proved to be more attractive than bitcoin in terms of investment. Despite a prolonged bearish trend, 56% of DOGE owners are still in the black. Among BTC buyers, the figure is 51%.
However, long-term investments in Dogecoin have a higher risk, because during the dump, which began in 2021, DOGE fell in price by 84%, while bitcoin - by 77%.
At the same time, both digital assets began to appreciate in early 2023. Bitcoin went up by 4% and DOGE by 10%. Accordingly, the cryptocurrency meme was more profitable to trade than BTC.
👥Ferrari ends partnership with crypto sponsor of Formula 1 team
"Scuderia Ferrari, the racing division of the Italian supercar maker, has added to the growing list of Formula One teams that have ended their cooperation with cryptosponsors. Ferrari terminated its partnership with Velas Blockchain and chip maker Snapdragon. As a result, the company lost $55 million before the start of the 2023 season.
The agreement Ferrari and Velas signed in 2021 called for payments of $30 million a year. The main objective was to attract new fans, particularly through nonreciprocal tokens. However, according to RacingNews365, the company ignored provisions that allowed Velas to create such NFTs.
In November 2022, the Mercedes team suspended its cooperation with the exchange FTX, which led to the loss of $15 million. This was due to the fact that the exchange filed for bankruptcy. The same fate befell the Red Bull Racing team and its partner Tezos Foundation. The initiator was a blockchain company, citing the inconsistency of the agreement with the company's strategy.
🏷️Renowned strategist gave a short-term prediction of the bitcoin rate
Renowned analyst and trader, as well as CEO and founder of Eight Global, Michael van de Poppe, gave a short-term forecast for the rate of the flagship cryptocurrency bitcoin (BTC). He noted: as of January 6, 2023, traders are not too keen on longs.
The expert did not recommend opening a lot of long positions. According to the analyst, to get confidence in the future, the rate of BTC should hold above $16,600 for several days. If it doesn't happen, the price will collapse to a local minimum of $16,000. Otherwise, the upward momentum will be preserved and it will be possible to talk about new heights.
Van de Poppet said that it is possible to open long positions only a little bit and sell below $17,000. According to the specialist, theoretically the chances of a bullish rally have increased significantly in recent days. This is due to the news, which came from the USA.
The strategist assured that this scenario is only a matter of time. Everything depends on when the representatives of the Federal Reserve (Fed) will say that they will suspend their repressive policy with regard to raising the prime rates and will report a lowering of the global inflation rate. At that point, according to van de Poppet, there will be short-term relief before the recession.
He said he is very positive and has no doubts that all will be well if the BTC stays above $16,600. The expert advised traders to keep a close eye on U.S. unemployment data reports, which will be published on January 6, 2023, and not to go crazy by trading with leverage.
🔌Bankrupt Core Scientific will shut down 37,000 mining units
Bankrupt mining giant Core Scientific will shut down more than 37,000 mining farms due to late payments to Celsius Network
Mining company Core Scientific, which filed for bankruptcy in late 2022, will shut down more than 37,000 mining rigs that belonged to another bankrupt cryptocurrency company, Celsius Network. This was reported by Bloomberg, citing legal representatives of Core Scientific.
Celsius reportedly made a partial commitment to cover Core Scientific's power costs before the bankruptcy. In exchange, the miner hosted Celsius' cryptocurrency mining devices. However, after Celsius went bankrupt in July 2022, the company stopped fulfilling its part of the agreement. Celsius Network reportedly owed Core Scientific at least $7.8 million. Shutting down the mining units would help the company save thousands of dollars daily.
According to Bloomberg, more than 40 percent (100,000) of Core Scientific's mining units belong to the company's customers, not the miner. Luxor Technologies Chief Operating Officer Ethan Vera believes the court's decision to side with Core Scientific will help the bankrupt company avoid surprise actions from customers.
Meanwhile, the mining provider is expected to receive $37.5 million from creditors as early as January. Creditors' representative Chris Hansen told the court that existing stakeholders continue to believe in Core Scientific's long-term viability, despite the company's recent problems and the drop in the bitcoin price. The company is still making profits, but not enough to cover its debts to creditors
Core Scientific first became aware of Core Scientific's problems in late October 2022. At that time, the company said it could run out of funds by the end of 2022. At that time, the miner had only 24 BTC and about $26.6 million in cash. According to the miner, the difficult situation was caused by a long-term decline in bitcoin prices, increased energy costs, an increase in the hashing rate of the global bitcoin network, and the lawsuit with the cryptocurrency lender Celsius.
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