Autor: dot-traders

• Indonesia is planning to launch a national cryptocurrency exchange in 2023.

• The government will transfer regulatory powers over such assets to the Financial Services Authority soon.

• The country’s central bank is also working on launching its digital currency (CBDC).

Indonesia to launch a national crypto exchange

Indonesia plans to establish a national cryptocurrency exchange before the end of the year, according to a recent report by Bloomberg. 

Bloomberg revealed that the government would launch the cryptocurrency exchange before it shifts regulatory powers over such assets to the Financial Services Authority, from a commodities agency.

This latest cryptocurrency news would be a huge development for the crypto industry in Indonesia. At the moment, crypto assets in the country are traded alongside commodity contracts and are regulated by the Commodity Futures Trading Regulatory Agency, known as Bappebti.

Bappebti acting head Didid Noordiatmoko revealed earlier today that as part of a broader financial sector reform, the FSA would be given regulatory power over the assets over the next two years, during which time the exchange would be established. 

Indonesia continues to support crypto growth

Indonesia is one of the countries in the world with a certain level of regulatory clarity in terms of cryptocurrency. 

The country’s apex bank issued a white paper discussing its digital currency. The central bank digital currency (CBDC) is currently in development. However, there is no timeline for its launch yet. 

Indonesia also passed a law recognising cryptocurrency and digital assets as regulated financial securities in the country. 

The positive stance regarding cryptocurrencies comes after the Bank of Indonesia banned the use of cryptos for payments in the country in 2021. 

At the moment, there are 383 cryptocurrencies and 10 local coins that can be traded in Indonesia. The Bappebti is also reviewing another 151 assets and 10 coins in a bid to make the assets available to local investors. 

The post Indonesia intends to launch its own cryptocurrency exchange appeared first on CoinJournal.

• Bonk is a meme coin launched on Solana on Christmas Day
• It has surged close to 2,500%
• Solana, meanwhile, has collapsed following associations with Bankman-Fried and top projects fleeing the blockchain
• Our Analyst writes that this is not the climate for memecoin hysteria

Woah, this is a throwback. Twitter is alive this week with talk of Bonk, a doggy token on the Solana blockchain. There is something a little nostalgic in talking about a good old-fashioned meme token. All we need is a COVID mask and some Elon Musk tweets, and we would be squarely back in 2020.

The Shiba-Inu themed token was issued on Christmas Day, and has risen close to 2,500% since. The price rise in the last hour as I write this is 150%.

Of course, the intriguing thing here is that the token has been launched on Solana, which has been struggling mightily over the last few months. I wrote a deep dive only yesterday analysing the demise of Solana, with multiple top projects fleeing the blockchain, repeated outages causing massive problems, and its ominous association with Sam Bankman-Fried pulling down the price.

But while it is still down hugely, Solana has bounced back a little in conjunction with this surge for Bonk. It jumped back above $13 Tuesday having dipped as low as $8 last week. Looking at Coinglass data, there has been close to $7 million of short positions liquidated, the largest amount since FTX collapsed in November.

The Layer 1 seems to be benefiting from the surge in interest for Bonk, which announced a large airdrop of 50% of its supply to drive up hype around the coin. It has worked – Bonk now has a market cap of $120 million and is following the meme coin playbook perfectly.

Why is Bonk rising?

Like any meme coin, it is difficult to ascertain how exactly bonk has pulled this off. It really comes down to marketing and luck. A number of Solana projects have even integrated Bonk as payment tokens, while $BONK has been trending incessantly on Twitter.

It all amounts to the same hysteria we saw over the last couple of years. As everybody knows by now, meme coins are nothing but a gamble. But what makes this so unusual is that the rise is occurring not only at a bearish juncture for Solana, but for the market as a whole.

The past year has seen interest rates hiked and liquidity pulled from the market, with risk assets collapsing. There is nothing further out on the risk spectrum than meme coins, and they have hence cratered as a result.

What next for Bonk?

All I will say to any investor (gambler) is that Bonk is a very dangerous game, like any meme coin. There is zero utility here and that means that in the long run, the coin is likely to drop to zero.

Of course, everybody knows that anyway, and these are memes we are talking about. But in the current tight monetary policy environment, the hysteria of the pandemic, where stimulus-cheque-wielding retail investors were pumping everything within sight, is long gone. This is not the climate for gambles like meme coins, and that is without even mentioning the carnage with Solana.  

The post Why is BONK going up? Be careful of doggy tokens, we have seen this movie before appeared first on CoinJournal.