[music] welcome to the coin bureau weekly crypto review here.
Are this week’s top headlines in the crypto news, [music] altcoin, updates announcements by cardano, avalanche and thor chain send ada, avax and roon on a tear. How much higher could these cryptos go? building the biggest bitcoin treasury, terra’s luna foundation guard begins its accumulation of btc to the tune of 125 million dollars per day!
What does this mean for btc, luna and ust legal tender? rumors, malaysia and honduras deny claims that their countries will be adopting btc as the bitcoin conference in miami approaches. Will we see another historic announcement, social media suggestions, tesla ceo elon, musk teases, the creation of a new twitter and some are wondering whether he will buy the company outright? does dogecoin stand to benefit crypto companies raise capital, katie, hound, yuga labs and polka dots akala see billions flow into their coffers. Is this a sign? the bull run is back fat f in full force! Coinbase rolls out a controversial requirement in three countries, while south korea commits to the travel rule, and the eu considers it why this could be bad news for financial freedom. The tax that could trigger a crash, the u.
S president, is expected to propose a minimum tax on the rich today, which includes unrealized capital gains. Will this lead to a sell-off across the board and a closer look at what comes next in this week’s crypto market forecast? all this and more in just a moment, [music] good morning afternoon or evening.
Thank you for tuning in my name is guy, and what you’re about to see is educational content, not financial advice? you can find any topics you’re looking for using the timestamps in the video timeline and now for today’s top stories. Last week, cardano avalanche and thor chain made the crypto headlines as their respective coins rallied note that i hold ada and roon as part of my crypto portfolio. Ada’s explosion was partially due to the news that coinbase had added support for ada staking this likely resulted in individual and institutional users of the platform, allocating some capital to ada to earn the 3? 75 offered by coinbase staking in a custodial manner?
Ada’s ascent was also partially due to the announcement that cardano will be increasing its block size as part of the upcoming vessel, hard fork combinator, which is expected to occur in june. Increasing cardano’s block size will increase its transactions per second, something that’s much needed, given that the intense activity on cardano’s dapps has clogged up its blockchain in recent weeks? As for avax, its moderate price pump has its origins in announcements made at the avalanche summit, which occurred last week in barcelona!
The two announcements that took the spotlight were the creation of a new avalanche wallet, including a browser extension and the addition of bitcoin to avalanches existing bridge! Although avax didn’t react as much as many expected, these fundamental developments are likely to reflect positively on its price in the long term, then there’s thor chain whose rune ran on the news that thor chain’s hard fork had been successfully completed and that terror had been successfully added to its cross chain protocol. This caused the total value locked on thor chain to hit a new all-time high and terra is just one of the many cryptocurrencies it is looking to integrate? You can find out which other chains are in the works by checking out my most recent thought chain update and that will be in the description speaking of terror.
It too made the crypto news, and that’s because the lunar foundation guard has accelerated its accumulation of btc? For those who don’t know, terra is a smart contract cryptocurrency that makes it possible to create a decentralized stablecoin called ust, that’s backed by luna terra’s native crypto coin on terror. One dollars worth of ust can always be burned to mint one dollars worth of luna and vice versa. The arbitrage behavior, that’s incentivized by this mechanism makes it possible for ust to maintain its peg and luna’s value increases as ust’s adoption grows.
Over the last year, ust has become the largest decentralized, stable coin by market cap, and this is basically because we’ve been in a bull market during this time. As you might have guessed, the concern is what happens to luna and ust if we were to experience a sudden crash or even a bear market, and this is where the lunar foundation guards btc reserve comes in. Basically, if the crypto market starts to crash, the lfg reserve will make it possible to redeem ust for btc rather than luna, which will prevent luna and terra’s protocol from entering a death spiral. If you want the full details of exactly how this is expected to work, i’ll leave an insightful thread by a fellow lunatic in the description note that i hold luna as part of my crypto portfolio! Now, if that wasn’t crazy enough, earlier this month, terra co-founder do kwan implied on twitter that the luna foundation guard is aiming to accumulate 10 billion of btc as additional reserves for ust! According to three arrows capital, co-founder kyle davis, the lfg is planning on buying 125 million dollars of btc every day for the next three months. Lfg’s bitcoin wallet currently holds just 1. 1 billion dollars of btc, and that means there’s another 8.
9 billion or so to go. I’ll leave a link to the wallet address in the description if you’re interested? Now, all this buying pressure is likely to have a positive effect on the price of btc for the next few months, especially since the balance of btc on exchanges is very low. This means any buying pressure directly on the spot market is likely to increase its price, but it appears that the lfg is buying all its btc over the counter directly from binance. As for luna, it’s hard to say, because the 10 billion dollars the lfg is using to buy all this btc probably came from the sale of luna at some earlier point in time, recall that the lfg recently raised one billion dollars in an otc sale of luna to kickstart, its btc reserve it’s possible, if not likely, that the cell pressure coming from the parties it’s sold to is why luna hasn’t pumped as much as you’d expect.
Given the circumstances! However, it’s worth pointing out that luna’s price isn’t nearly as important as the confidence in ust, which has likely increased significantly. Now that it’s known, it will be more than 60 percent, backed by btc.
This will increase the demand for ust in the long term and in turn this will have a positive impact on the price of luna. If you want to learn more about how terra works and what it’s been up to, you can find out using the link in the description, while terra adds btc to its treasury? It looks like governments around the world are getting ready to do the same. As many of you all know, el salvador made bitcoin legal tender last september and it’s been accumulating btc ever since el salvador’s, adoption of bitcoin led to a lot of speculation that other countries could follow suit and some foreign politicians even came out to say that they would be pushing for this on their home turfs. Many are assuming that we’re likely to see another country announce its adoption of btc at the bitcoin conference in miami two weeks from now. This is because el salvador announced its own adoption of btc at last year’s bitcoin miami conference and salvador, and president najeeb bukelli predicted? We will see a similar announcement this year! Recently, all eyes have been on honduras, el salvador’s neighbor. This is because honduran president xiamara castro recently remarked that honduras should consider quote escaping dollar hegemony, as i mentioned in my video about bitcoin adoption in latin america, dependence on the dollar is one of the primary reasons why many latin american countries are apparently keen to adopt crypto in response to the rumors, the honduran central bank released a statement that seemingly shot down the speculation as it specified that bitcoin was not regulated and will not be legal tender quote. For the time being.
Meanwhile, the malaysian ministry of communications came out to say that it supports making various cryptocurrencies de facto legal tender. A few days later, the malaysian ministry of finance came out to crush hopes of this ever occurring and said. The government is focused on the creation of a central bank digital currency. This is similar to what the honduran central bank said as part of its statement as well, and it begs the question of whether countries are torn between adopting cryptocurrency or a cbdc as their alternative legal tenders! Now i’ll be exploring this topic in depth later this week and give you my take on which countries i think are most likely to adopt btc as legal tender next in the meantime, i strongly suggest watching my video about cbdc’s to get a sense of what alternatives the central banks are planning that will be in the description. Anyways countries adopting bitcoin as legal tender is just one of the many rumors we’ve seen circulating on social media recently, and some are wondering if or when we’ll see tech giants clamp down on these rumors the same way they have with other topics. This was the impetus behind a recent twitter poll by tesla ceo elon musk, which asked whether twitter adheres to the values of free speech, to which 70 percent of people responded! No, in a reply to his own poll, elon emphasized that quote, the consequences of this poll will be important? Please vote carefully when asked whether elon was considering creating his own social media platform! He responded with quote i’m giving serious thought to this after the poll concluded! Elon asked his followers what they thought he should do, and this led to all sorts of recommendations, including an outright acquisition of twitter, to transform it into a free speech platform.
As you might imagine, it didn’t take long for the dogecoin community to give its two cents and the wall street bets chairman, suggested elon acquire twitter and change its logo to a shiba inu dog, to which elon replied quote that would be sick.
Another crypto youtuber called steven steele commented that, regardless of whether elon started up his own social media company or acquired twitter, it would likely feature a dogecoin tip jar to which elon replied with the 100 emoji! All this back and forth caused doge to pump, and this makes more sense than you think. That’s because tesla is already accepting doge for specific merch items and even as payment at select supercharging stations?
The idea that elon would include a dogecoin integration in his new social media platform is not that far-fetched and it would be a perfect fit given that dogecoin was originally designed for tipping on reddit? Unfortunately, elon has yet to release additional details about his upcoming social media platform, but rest assured i’ll be letting you know!
As soon as i know, you can find out more about dogecoin’s history and its future.
Using the link in the description anyhow, elon musk doesn’t seem to be the only one with money these days, despite the sluggish state of the crypto market. Over the last few months, billions of dollars are still being invested into crypto companies every week. The largest raise in recent memory is for katie hounds new crypto vc firm, called hound ventures, which secured a staggering 1! 5 billion dollars in funding a record for any female operated fund in any industry for those unfamiliar katie hound used to be a partner at another big crypto vc, firm, called andreessen horowitz, which has invested in just about every major crypto project on the market. Katie left andreessen horowitz last december, but before she did, she secured investment deals for infrastructure-focused crypto projects like r weave and nft related crypto projects like open c. This means we’re likely to see some serious investment into these crypto niches in the coming weeks. The nft niche in particular has continued to attract attention despite a noticeable decline in retail interest and the latest nft company to get mad cash is none other than yoga labs!
As many of you will know, yuga labs is the company behind the board, 8 yacht club nfts and recently acquired the intellectual property rights to the crypto punks. This seems to have inspired some fomo amongst crypto vcs, because yuga labs secured 450 million dollars from them shortly afterwards! Uglabs is planning to use these funds to expand its team, create more nfts, secure, more partnerships and presumably acquire other nft or even metaverse oriented crypto projects, and then there’s acarla one of polkadot’s top projects? It’s raised, 250 million dollars from various crypto vcs, including digital currency group, to accelerate the adoption of its ausd stablecoin across polkadot’s ecosystem of parachains? This could result in some serious demand for dot, given that it’s used to mint the ausd stablecoin, and if this demand manages to outstrip supply-side cell pressure, then maybe just maybe dot will hit a new all-time high. Note that i also hold dot as part of my personal portfolio, and if you want to know how well my crypto portfolio performed last year, you can find out using the link in the description anywho as bullish as all these recent announcements might be. We’ve seen no shortage of bearish announcements too over the last week?
The most bearish announcement of all is that coinbase will begin requiring users in certain countries to provide detailed information when they try to send crypto to an external wallet? The three countries in question are canada, japan and singapore, and coinbase’s new requirement is slightly different in each one.
In canada, users will only be required to provide information when sending more than 1 000 canadian dollars worth of crypto to another financial institution such as another cryptocurrency exchange, that’s about 800 usd, not a large sum by any means.
This is all thanks to the canadian government’s crackdown on the people who were protesting pandemic restrictions in the nation’s capital for context. The canadian government invoked an emergency law intended for wartime to freeze the bank accounts of people who are donated to the protests, even though the emergency law was revoked shortly afterwards, many people’s bank accounts reportedly remain frozen and some emergency powers have become permanent? In this case, the detailed tracking of any transactions involving cryptocurrency in japan. The requirements for coinbase users are slightly less severe, as providing information for external wallets is only required when that wallet’s funds are being sent to an individual or institution who resides outside of the country! In singapore. The requirements for coinbase users are much more severe since they will be required to provide detailed information about every outside, address being transferred to now in coinbase’s defense! It’s simply complying with the regulations of the jurisdictions it’s operating in, and this was the same explanation given by south korean crypto exchanges, who recently came into full compliance with the same regulations!
If you’re wondering where this regulatory coordination is coming from, the answer is the financial action task force or fat f. One of the fat f’s most famous recommendations is the infamous travel rule which requires financial institutions to collect information about individuals and institutions engaging in every transaction above a certain amount, usually around one thousand dollars all in the name of money laundering prevention. Now, besides the fact that the travel rule hasn’t had any effect on money laundering, it is just the tip of the fat f’s crypto iceberg. Its mission is to tie every crypto wallet to a real world identity and its end game is to make it impossible to hold crypto in your own wallet on the grounds that it’s too risky?
This is almost exactly the kind of regulation that the european union will attempt to push through this thursday and crypto analyst patrick hanson explained in a recent thread that the eu intends to apply the travel rule to every single transaction and make it impossible to interact with self-hosted wallets! Patrick also noted that european politicians seem to be on the same page with these crypto regulations! This wasn’t the case with the recent eu bill, which almost included a ban on proof of work cryptocurrencies! If you’re wondering what kind of future the fat f is planning for crypto look no further than the link in the description. Now, if all this fat f stuff wasn’t bad enough, it looks like the current u! S administration is looking to resurrect a controversial tax proposal.
It first floated last year. In short, it wants to enact a 20 tax on anyone making 100 million dollars per year or more starting in 2023! This will not only apply to income but also unrealized capital gains. In theory, the tax will bring in 360 billion additional tax dollars over the next 10 years, which is a drop in the bucket compared to the tens of trillions of dollars of debt! The u. S government is currently in in practice. The tax will likely force these folks to sell whatever assets they have and encourage them to move themselves and their operations overseas, which is probably why the current administration is also pushing for a global minimum tax! In case you missed the memo. Most of the money in the crypto market comes from wealthy individuals and institutions, and many of these individuals and institutions have made massive gains in both the crypto and stock markets over the last two years that they have yet to realize. Make no mistake: if this law is passed, we will almost certainly see a fall in the markets late last year, a similar tax proposal was left out of a spending bill at the last second, and the general unpopularity of the current administration means it’s unlikely to pass the second time around! On that note, if you haven’t done your crypto taxes, yet you can check out my video about the top crypto tax tools to help you with that. You can find it. Of course, in the description? Turning to the charts we can see, the btc is on the brink of breaking out of the triangle pattern! We’ve been tracking for a few weeks now, the surprisingly green week, we’ve seen leads me to believe that we’re overdue for a correction, the bollinger bands and rsi indicators suggest this could be the case, but we do still have a bit of room to the upside. If and when we do see a correction, i expect btc to fall to around 42k, where there’s no shortage of support. It’s starting to look like. We won’t see a serious rally until the bitcoin conference in two weeks, but maybe christmas will come early so to speak. This week’s winners are zilliqa, convex, finance, holochain, v-chain and chili’s.
That is one hell of a combination? Zil seems to be pumping on the news that zilliqa will be launching metropolis a metaverse as a service platform at an upcoming event in miami? I reckon you don’t need any technical indicators to see that this price pump is unsustainable, but the good news is that zil has blasted through every zone of recent price resistance if it can hold this level? It’s headed higher next up is convex finance and i honestly couldn’t find anything that explains cvx’s impressive pump.
I suspect it has something to do with its recent integrations with other d5 protocols, but the relative lack of reaction to the news about them suggests it’s something else. In any case, the big wick you see on that candle indicates that cvx is experiencing some serious resistance around the 30 range and it might see a slight correction in the coming days. As for holochain, hot is rallying on the news of holochain’s roadmap, but its recent price action paints a similar picture to cvx lots of resistance and a long distance from its all-time high. Then there’s v-chain, whose vetcoin has gone vertical on the news of v-chain’s! First ever hackathon v-chain, also partnered, with billionaire tim draper’s, draper university entrepreneurship program. Now vets, long-term price action isn’t looking that pretty, but i will point out that it remains in a long-term uptrend. This isn’t surprising, given how bad supply chains have been lately and how much v-chain could help out on that side? Last but not least, we have chiles whose ecosystem and community are anxiously awaiting the release of the chile’s chain 2. 0 at the end of the month. Their excitement has caused chc to bear flag its way out of its recent bottoms, but it’s going to take a lot more hype to break through that insane zone of resistance at 32 cents.
If you’re wondering what chile’s is about i’ll leave a link to my video about the project in the description spoiler, it’s not about food, and that’s all for today’s coin- bureau- weekly crypto review.
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