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Cryptocurrency exchanges note a multiple increase in the number of traders. Market accepts an additional amount of cryptocurrency from miners. Telegram is looking for loopholes after a court decision.
Amid tensions in the global financial markets and the coronavirus pandemic, bitcoin exchange rate shows sufficient stability. The last two weeks, it is in the range of USD 5,900-6,800 for one coin. At the same time, cryptocurrency exchanges register a record influx of new visitors.
Cryptocurrency exchanges are trading platforms where users can make purchases, sales and exchange transactions using cryptocurrencies and fiat money. The number of assets on them is measured in hundreds; moreover, transactions with leverage are allowed in some cases.
One of the largest platforms, Kraken, reports an increase in registrations of 83%. The number of new users who have passed the verification procedure has increased 4 times. It allows to instantly depositing funds in fiat money. The Paxful cryptocurrency exchange reports a doubling of new registrations; whereas the growth dynamics of active traders on the Luno platform has reached 50% since the beginning of March. Bitfinex indices are a bit more modest, this figure here was 30%.
At the same time, the global economy situation negatively affects cryptocurrency exchanges. Glassnode, an analytical resource, reports that the balance of exchange wallets in bitcoins has reached its minimum value in 8 months. That is, many users refuse to trade choosing a long-term investment. According to Pierre Rochard, Kraken Strategic Development Specialist, a massive influx of new traders indicates a desire to find new options for calculating and gain independence from the outdated financial system.
It is not yet clear how this world will emerge from the coronavirus pandemic. The collapse in the market of raw materials and energy resources, the allocation of colossal amounts by the US authorities and many other factors indicate geopolitical instability. People are looking for options to solve their own problems and buying cryptocurrencies is quite suitable as a backup option for saving money.
ByteTree has published data that miners are selling more cryptocurrency than they are mining. As the result, on March 26, they received 1,588 bitcoins, and 2,788 coins were sold. The MRI (miners behavior indicator) developed by the company has been above the mark of 100 points for the third week already. This indicates the active bitcoin implementation.
Charlie Morris, ByteTree founder, is convinced that this market situation is a bright bullish signal. Judging by the cryptocurrency price stability, there is sufficient demand here. Mining pools have always had a significant impact on the asset price. The fact that now the market is ready to absorb the additional volume has become evidence of the imminent growth of the rate. Connor Abendschein, analyst at Digital Assets Data, shares this thought.
The dumping of trillions of dollars of liquidity by the Federal Reserve and Central Banks gives investors and markets additional liquidity. Another factor in stimulating demand is the oncoming of May. This month, the planned bitcoin blockchain halving will take place. As the historical data show, halving the block reward always allows bitcoin graphics to grow.
However, Jihan Wu, Bitmain co-founder, does not share this assumption. His company carried out staff optimization last year. In his opinion, it is unreasonable to expect an instant jump in bitcoin price after halving. Most likely, in the coming years, cryptocurrency will show little volatility. However, Jihan Wu sees this as positive aspects. Course stabilization makes it possible to use ASICs of the latest generation for several years. In particular, Antminer S19 Pro will be relevant for at least three years.
Jihan Wu is sure that in the nearest future not only bitcoin will show increased stability. Ethereum coins also play an important role in the settlements decentralization, and they will be in constant demand.
The decision of Kevin Castel, New York Federal Judge, put Telegram in a difficult position. Now the company needs to decide what to do next. Investors leveraged about USD 1.7 billion in the development of the TON project under the Simple Agreement for Future Tokens (SAFT), which was supposed to be registered as a security. However, the judge decided that tokens in particular were supposed to be used as an asset with a changing value.
The Telegram agreement with investors provides for the return of 77% of the invested amount upon difficulties incurrence with the launch of the Telegram Open Network (TON) project. The ban on the TON distribution by the primary buyers is just a case in point. However, there is no talk of project minimizing yet.
The first step of the Telegram attorneys’ team was to request a geographical coverage. However, the SEC refused to even discuss this item. The court ruling clearly speaks of prohibiting the sale to any individual without reference to the country or region. Although American investors invested only USD 424.5 million in the project, this gives it such rights. However, it is likely that after the refund to the Americans, the TON project will be able to develop further.
The second option is to launch TON without Telegram. This initiative was launched by the TON Community Foundation. Its founder, Fedor Skuratov, said that the code required for this is in the public domain. It is just necessary to start the initial block and get 13 network validators. The issue is that not all investors liked this initiative. A significant part of them simply wants to return the money invested in GRAM.