Crypto News Archive - Seite 1583 von 1640 - Finanzmittel Info + Krypto + Geld + Gold

25. Januar 2022

Cardano extends negative price action to $0.94 after market supply outweigh demand

Strong bearish pressure pushed the price of Cardano to the south
$0.94 is the next bearish target for the asset
Cardano relation with Ethereum ( the essential things to know between the two assets)

According to Nerd wallet, Cardano (ADA) has been termed as a fast-rising digital currency network that should be considered as the next opposition to the Ethereum network. Despite the presence of bearish market situations across the entire crypto market, Cardano’s total market Cap as of the time of writing this analysis is worth $33 billion and $14 billion below the USD stable coin.

Technical outlook for ADA/USD Price Action

Cardano sight a fresh support at $0.94

At the moment, the all-round price action of Cardano remains negative as the value of the asset aims to hit a negative price target at $0.94, and if at all the market supply should outperform the demand for the asset, the value of Cardano will retain negative value.

ADA/USD hourly technical analysis viewpoint

Source – TradingView

From the hourly chart market, speculators would see that Cardano has for long been trading with a strong bearish price action after facing tight rejection along with the $1.39 near-term resistance.

However, if at all the price of action of the digital asset pair should break below the immediate support at $0.94 then the overall price action of Cardano will resume to the bearish zone. On the flip side, if the price movement of Cardano should bounce above the $0.94 immediate support, the value of ADA/USD will tend to hit immediate resistance at $1.10.

Cardano daily technical analysis

Source – TradingView

From the 1-day chart, Cardano Seems to trade with a strong bearish bias after making a series of lower lows into support in the previous trading bout. Yet $0.94 could be a turning point for the asset if the volume of the buyers should outweigh the sellers‘ pressure in the market.

Summary

Cardano trades with a strong bearish bias, as the value of the asset eyes to retest the previous negative price target of $0.94.

The post Cardano extends negative price action to $0.94 after market supply outweigh demand appeared first on Coin Journal.

25. Januar 2022

5 Reasons why you should buy Terra

What do you turn to in a period of incessant dips and reds? Stablecoins are cryptocurrencies that are pegged to non-digital assets. Unlike most cryptocurrencies, they can remain stable in the face of dips. So, if you are looking to invest in a stablecoin amidst the endless pool of stablecoins, why not invest in Terra instead?

Terra is a layer-1 blockchain platform that supports smart contracts and enables the creation of various stablecoins. It aims to serve as a base layer for the fintech ecosystem. These stablecoins are stabilised by algorithms and are used for payment purposes. They run on a seigniorage mechanism.

The development of Terra began in 2018 by Terraform Labs‘ Do Kwon and Daniel Shin. The whitepaper was in April 2019; the same month, the mainnet was launched. Terra is widely used in South Korea and its environs. It is very popular in the Asian e-commerce market.

1. Terra works in a unique way

Unlike most stablecoins, Terra uses smart contract algorithms to maintain the supply of its stablecoins. The stablecoins are collateralised by LUNA rather than their fiat currency equivalents. In essence, every stablecoin is pegged to LUNA. Terra serves as an intermediary for swapping between stablecoins and LUNA and vice versa, thereby helping to maintain supply.

To mint stablecoins on Terra, you need the LUNA equivalent of the amount you want to mint. Minting stablecoins generate seigniorage. This allocates a small portion of the LUNA used for minting into the community treasury, which is then used to incentivise mining on the network. Seigniorage is essential in minting, burning, and maintaining the supply and price of stablecoins.

As with other cryptocurrencies that burn, it is a deflationary measure to stabilise the economy. The community treasury also serves in reinvesting in apps that use UST. A decrease in demand causes the Terra algorithm to increase fees, automatically stabilising the network. It has an average block time of six seconds.

All transactions pay gas fees that are set by the validators. Transactions involving stablecoins on non-market swaps cost stability fees, and spread fees are paid on market swaps. Rewards are earned through gas, fees, and seigniorage rewards. Trading LUNA and stablecoins help maintain the supply of the stablecoins.

2. Terra uses an eco-friendly consensus algorithm for its operations

The blockchain is created using the Cosmos software development kit. The platform is run by its stakeholders. It uses the eco-friendly proof-of-stake consensus algorithm- Tendermint Delegated Proof-of-Stake. This involves using a group of decentralised validators who verify transactions in exchange for rewards. Terra had about 130 validators in October 2021.

Users can delegate their tokens to a validator, ensuring security by validating transactions. These validators determine the percentage of the rewards that will go to their delegators. The token exists in three states- the unbonded (when it can be traded freely), the bonded (when it is staked for rewards), and the unbonding (21 days during which unstaking occurs).

Both validators and delegators can govern the network depending on their delegated tokens. The rewards for validators and delegators are derived from Terra taxes. Validators can be slashed if they are caught in any malicious behaviour. This affects the stake of their delegators as it is slashed too.

3. Terra’s ecosystem is still young and growing

Terra’s ecosystem is made of stablecoins, native wallet, investment platforms, Mirror Finance, payment apps, and bridges, among other projects. Terra has hosted over 100 projects, including DeFi, NFTs, and Web 3.0.

As stated earlier, Terra supports the creation of stablecoins backed by algorithms and an elastic money supply mechanism. TerraUSD, TerraKRW, TerraCNY, TerraMNT, TerraSDR, and TerraJBY are some of the stablecoins that have been minted on Terra. UST is the fourth-highest stablecoin by market cap and is ranked 16th right now.

Terra station is the native non-custodial wallet of Terra. It allows users to interact with the blockchain, including funding, staking, and participating in governance. Users can also see their transaction volume, staking rewards, and active accounts.

It also serves as a host to the CHAI payment app, which aids frictionless transactions. It supports interoperability through the Terra Bridge, which links Terra to BSC, Ethereum, and Harmony, with plans to add Solana soon. Terra Bridge is a cross-chain system. Also, it has integrated the Inter-Blockchain Communication (IBC) protocol for interacting with other protocols in the Cosmos network.

Anchor Protocol is a fixed yield platform that supports payments, investments, and savings. Users can enjoy a stable interest of 20% APY on investments. It also supports margin trading and short-term loans. Mirror Finance enables the deployment of mirrored assets (mAssets), which aids trading and tracking real-world assets. It has Shuttle Bridge, which can move mAssets to the Ethereum blockchain.

Other notable projects on the ecosystem are Ozone, Terraswap, Wormhole Token Bridge, LoTerra, Lido, ApolloDAO, and many more.

4. Terra is backed by trustworthy investors and partners

In August 2018, Terra had a private sale that saw the likes of Binance Labs, Huobi Capital, OKEx, and Dunamu & Partners invest about $32 million. And due to the notable partnerships, it is forming, and it is gaining traction. CHAI, BC Card, Voyager Digital, Bison Trails, Qoo10, Axelar, Woowa Brothers, Bugs, Carousell, and Singsang Market have partnered with the network.

Arrington XRP Capital Hashed and Lightspeed Ventures, Lunex Ventures, BlockTower Capital, and Galaxy Capital have also invested in Terra. They invested over $150 million in its ecosystem fund. Terra has over $1.2 trillion of assets locked across protocols in the ecosystem right now.

5. LUNA; the multipurpose native token

In February 2019, LUNA was sold to the public for $0.8. Three years later, today, it is worth $69.13 with a market cap of $27.8 billion. Over 380 million LUNA was minted at launch, and 10% was allocated to Terraform Labs, 26% was given to project backers, 4% for genesis liquidity, and 20% each for project contributors Terra Alliance, and price stability reserve. There is a max supply of 1 billion, and 403.4 million is in circulation right now.

LUNA is used to maintain the stability of the stablecoins by absorbing volatility. It serves as a reward for validators and delegators. It is used to secure and run the network. Also, it can be staked and used as a governance token. LUNA serves utility functions as well.

It is one of the top ten cryptocurrencies by market cap. It peaked at $103.34 in December 2021.

Ending Note

Due to its less volatility, it is a worthy investment. Terra (LUNA) is currently very prominent in Asia, but as it expands to other regions, the need for LUNA will also increase. Although LUNA is not a stablecoin, its job in the ecosystem would impact its price dynamic in the long run.

As appealing as Terra is, don’t dive in without proper research. It would be nice to know this helped make the big decision, but it shouldn’t be the only thing you consult. Don’t forget to deal wisely, the crypto market is extremely risky.

The post 5 Reasons why you should buy Terra appeared first on Coin Journal.

24. Januar 2022

Ex-Goldman Sachs CEO: I can’t predict the future but ‘crypto is happening’

Lloyd Blankfein says crypto has benefited from trillions of dollars in investment and that though he remains skeptical, he’s practical about crypto’s potential.

Crypto has matured to a point it’s attracting trillions of dollars from institutional investors, pushing the burgeoning sector towards greater adoption.

That certainly is the view of former Goldman Sachs CEO Lloyd Blankfein, who was commenting on the current state of the crypto market during an interview with CNBC on Monday.

Blankfein says his view of cryptocurrencies might not have changed drastically since the early years of the pioneer crypto Bitcoin. However, he holds a pragmatic view and acknowledges the evolution that has happened across the space in the last couple of years.

This, even as the current market scenario leaves most digital assets badly battered.

The ex-Goldman executive t revisited the early days of mobile phone development and how skeptical people were of the technology. But he says the tech did work, noting:

“I can’t predict the future, but I think it’s a big thing to be able to predict the present. Like, ‘What is happening?’ And I look at the crypto, and it is happening,” he explained.

According to Blankfein, what he terms as “happening” relates to the staggering growth seen within the crypto ecosystem. He looks at the amounts of money coming into the ecosystem from mainstream investors, including major Wall Street banks, as an indicator of growth.

The banker noted that despite the crypto winter that has seen Bitcoin and other crypto assets decimated in the market; the “trillions of dollars of value” in the space should see the ecosystems around it continue to grow.

He also talked about blockchain technology benefits such as instantaneous transfer of value and reduction of credit risk as positives that contribute to the increased adoption of crypto.

About his personal take, Blankfein said he’s still skeptical but that doesn’t mean that he cannot be pragmatic about it.

“I may be skeptical, but I’m also pragmatic about it. And so guess what? I would certainly want to have an oar in that water,” he concluded.

Blankfein’s remarks come at a time crypto has seen billions of dollars worth of value wiped off the market amid a brutal correction.

Bitcoin slipped to lows of $33,064 earlier on Monday before recovering to trade above $35,000 at the time of writing. The cryptocurrency is down over 16% this week and more than 48% since its all-time high in December.

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24. Januar 2022

Crypto trading is a ‘clear growth area,’ says Jane Street Group

Jane Street actively trades global equities, exchange-traded funds (ETFs), bonds, and options.

Global market maker and trading firm Jane Street Group, whose growing footprint across Wall Street has come amid a massive growth in the market, says it sees more adoption across the crypto trading space.

The firm, according to Bloomberg, says cryptocurrency trading offers a “clear growth area”, citing the company’s increased number of traders now into crypto.

Turner Batty, one of the firm’s founding traders, the last sixteen months has seen dozens of employees around the world focus on crypto trading. While the number is still relatively small compared to those at Wall Street rivals, Jane Street says related fields like tax and accounting are seeing a jump in dedicated staff.

The liquidity provider says demand from institutional investors has been growing, despite Bitcoin and other crypto-assets seeing their worst bloodbath since May last year.

The firm’s Head of Institutional Strategy Mina Nguyen told Bloomberg that the platform had recorded a steady jump in inquiries.

They range from established asset managers, sovereign wealth funds, endowments, and private wealth institutions, Nguyen added.

According to him, these growing groups of investors are being driven by the need to be well-positioned in case the crypto regulatory climate in the US becomes clearer. He noted that some, like sovereign wealth funds, have shown interest in getting direct exposure to cryptocurrencies.

Jane Street’s growing reputation comes from its active trading of global equities, corporate bonds, exchange-traded funds (ETFs), and options.

The firm highlights on its website that it is actively involved in more than 5,000 ETFs across the globe. It also leverages cutting-edge technology to avail its order-book liquidity in 45 countries worldwide.

Crypto is thus a critical sector to venture into, given the spike in trading interest in the sector even as volatility decimates bulls after a stellar 2021.

Other than digital asset trading, the New-York based platform is reportedly eyeing opportunities in the decentralised finance exchange niche.

One of Jane Street’s partners is Robinhood Markets LLC.

The post Crypto trading is a ‘clear growth area,’ says Jane Street Group appeared first on Coin Journal.

24. Januar 2022

Bitcoin is still ‘firmly in growth mode,’ says crypto investment firm

BlockTower Capital’s Michael Bucella is bullish on crypto, noting that volatility in Bitcoin and Ethereum or other crypto isn’t surprising at all.

As Bitcoin price plummets to lows last seen in July 2021, crypto investor and BlockTower Capital general manager Michael Bucella says retailers should use this as an opportunity to re-enter the market.

The entrepreneur also says that while volatility remains a key issue for some investors, it should not be a surprise to the market given the asset class is still maturing.

Despite a “blowout” in prices that has seen the benchmark crypto fall more than 50% from its all-time high; the investor says Bitcoin’s future outlook is bright.

In a previously recorded interview with CNBC, Bucella noted crypto is likely to see fresh momentum as broader markets look to bounce from the latest sell-off. He says the expectation of higher interest rates from the Fed and other central banks continues to weigh on investor sentiment.

However, with liquidity in crypto available 24/7, the BlockTower Capital executive sees an upside materialising to keep Bitcoin price above a long-term bullish trend. He said the flagship cryptocurrency was “firmly in growth mode” even as it trades alongside the trends in the risky assets market.

On the issue of volatility, Bucella points to Bitcoin and other cryptocurrencies as “a young asset class.” In this case, wild price moves such as witnessed over the years should not be “too surprising.”

He also says the degradation seen over the last several months follows the sharp rise in Bitcoin and Ether in the first half of 2021. He says the price surge that catapulted the coins to fresh was more out of value creation and not fundamental growth.

However, he sees crypto accelerating upwards amid fundamental growth as market structures reestablish themselves.

The analyst also says crypto has held well in the face of the sell-off, compared to some traditional assets in the IPO and SPAC markets that are down as much as 80% over the past few weeks.

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