Schlagwort: crypto business

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Guggenheim’s Scott Minerd says everything in crypto is “suspect”

Scott Minerd, Guggenheim Partners’ chief investment officer, now says cryptocurrencies haven’t really become that investment vehicle he thought they would when he first entered the space.

In his opinion, “everything is suspect”, and that “no one has cracked the paradigm in crypto,” with Bitcoin’s use as a currency not fitting the definition and characteristics that go with it – medium of exchange, store of value and unit of account.

Minerd made the comments during an interview with Bloomberg TV at the World Economic Forum held in Davos Switzerland. In an apparent dismissal of the sector, the billionaire investor said, “none of the stuff – stablecoins, the whole bit – everything is suspect.”

“Bitcoin and any cryptocurrency at this point has not really established itself as a credible institutional investment. It’s really become the market of a bunch of yahoos and backwaters,” he added.

Minerd also revealed that Guggenheim sold its Bitcoin holdings (which was acquired at $20,000) when prices reached $40,000. He also reiterated that he doesn’t hold any Bitcoin at the moment.

Bitcoin will fall to $8,000

On the price of Bitcoin, he predicts the benchmark cryptocurrency will crash to $8,000 before recovering. But this isn’t the investor’s first forecast about BTC price.

He’s been bullish and bearish before, notably stating in February 2021 that the cryptocurrency’s value could reach $600,000. BTC was trading at around $40,000 at the time.

But in June, with BTC/USD around $35,000, Minerd said in an interview with CNBC that Bitcoin could correct to $10,000. The cryptocurrency fell to about $28,000 before bouncing to eventually hit the all-time high of $69,000.

After shedding over 50% of the gains seen during the bull rally, BTC is bearish and currently trades near $29,900. Minerd says a technical outlook for the cryptocurrency points to a new drop to $8,000.

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Is Terra LUNA 2.0 a good long-term investment?

The Terra ecosystem is gearing for a relaunch after this month’s spectacular collapse that led to over $40 billion in losses. As this happens, the current LUNA token has collapsed to $0.00018, which is a remarkable collapse considering that it was trading at $120 a few months ago.

How will Terra relaunch?

Terra’s revival plan has several important parts. The goal of this revival will be to ensure that the strong community that existed before the collapse continues. The same is true for some of the most important projects that were built in Terra like Astroport, Station, and Stader.

First, the current Terra will change its name to Terra Classic while its token will be known as LUNC. The new blockchain and the token will be known as Terra and LUNA respectively. 

Second, the network will do away with TerraUSD, the stablecoin that caused this problem. Therefore, it is still unclear whether the developers will launch a new stablecoin or not. Also, it is still not clear whether they will create a new collateralized stablecoin or whether they will embrace existing coins like USD Coin and Tether.

Third, to promote that essential developers stick with the network, they will be allocated 0.5% of the total supply. They will also receive 1.5% of total assets as part of the developer alignment program and 8% of total supply for mining program. The remaining coins will be rewarded to pre-attack and post-attack LUNA and UST holders. 

Some of the holders who will not be eligible for allocation include UST or LUNA bridged off of Terra and LUNA protocols that cannot be verified. Terra 2.0 will launch on Thursday this week.

Is Terra 2.0 a good investment?

Terra’s collapse has caused a lot of pain to many people and there is a possibility that most of them will not have an incentive to buy the coin again.

While South Korean prosecutors are making a case against Do Kwon, it is too early to determine whether he was responsible for its collapse. In my opinion, UST was a brilliant idea that failed. 

As such, there is a likelihood that the Terra 2.0 will address the gaps that existed in the previous version. Due to its strong name recognition, we cannot rule out a situation where Terra price bounces back in the near term.

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Singapore VC firm announces $100M fund for Web3 projects

NGC Ventures is an early backer of Algorand and Solana and will use the new fund to invest in early-stage DeFi, NFTs and Metaverse projects.

Singapore-based institutional investor NGC Ventures, which focuses on venture funding for projects in the blockchain space, has announced a new fund targeted at early-stage projects in the Web3 and metaverse ecosystems.

The fund, the company’s third in its crypto-focused programs, has secured $100 million in funding from various investors as it looks to help projects build and launch across the industry.

According to an announcement the company made on Wednesday, participating investors included Huobi Ventures, Babel Finance, Nexo Ventures, and GBIC.

Per the venture firm, the new funds will go into early-stage projects in decentralized finance (DeFi), blockchain gaming, non-fungible tokens (NFTs), and the metaverse.

Selected projects will also benefit from expert input on tokenomics, with access to major industry influencers, launchpads, market makers, and exchanges also available.

NGC is an early investor in several projects, including Algorand and Solana. Recently, it participated in the $8 million funding round for Africa-based DeFi startup Cassava Network.

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Filecoin dips further after a 56% drop in the past 30 days: here’s why it’s dropping

The price of Filecoin (FIL) has dropped by more than 56% in the last 30 days as the firm continues to face allegations of pyramid schemes and fraud and is now under police investigations.

 It has dropped by 2.41% today to trade at $8.19.

The Boss of Filecoin’s largest firm under police custody

Shikongyun boss, Filecoin’s largest firm in China, Lai Chuhang has been arrested by Guangxi police after being suspected of organizing pyramid schemes and fraud.

However, this is not the first case as a couple of Filecoin companies in China were under police investigation in November last year after running FIL mining scams and pyramid schemes.

During the investigation, the police arrested about 30 suspects who had seized over $50 million during the scam.

Chinese government action on pyramid schemes

Chinese police have continued with the crackdown on the suspected Filecoin companies running mining pools in the country. Several agents carried out pyramid schemes to increase project participation after which the Chinese media reported in 2019, that the scheme raised about $300 million.

However, Shikongyun’s authority and technical account have been transferred to the police at the moment after which the services will resume after the investigations are over.

Besides, some executives are currently collaborating with the police to provide evidence. However, some employees have been released back to their jobs by the police after helping the police with the investigations.

Filecoin (FIL) price trend

Filecoin price has been dropping since last year September and is currently at 89% drop for the past 9 months following the fraud and scams reports. 

At the time of writing, FIL was trading at $8.25 down 1.86% in the last 24 hours from an all-time high of $237.24 set a year ago on April 1.

In addition, the current drop in Filecoin price has also been highly influenced by the current crypto market crash.

Filecoin Foundation partnership with Lockheed Martin

As the price of FIL continues with the dip, Filecoin Foundation and Lockheed Martin, an aerospace company, have planned to carry out an InterPlanetary File System (IPFS) node in space to increase data downloads as well as allow network participants to share or hold information.

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Binance Loans starts accepting AVAX and ADA as collateral assets 

Binance has announced that Binance Loans has started accepting AVAX and ADA tokens as collateral assets.

Binance Loans’ new Collateral assets (AVAX and ADA)

Binance Loans will now be accepting AVAX and ADA as collateral where they will provide loan orders that are backed by the two tokens so as to lower the borrowing cost.

However, Binance Loans also offers a number of cryptos as collateral assets, loanable limitations, and interest rates which depends on the internal risk mitigation and market situations. 

Difference between Crypto Loans and traditional loans

Basically, Crypto loans and traditional loans depend on the same principle but the main difference between the two is how people account for their money. In traditional loans, credit ratings are used to determine the risks, but in crypto loans credit rates are irrelevant. Institutions can use traders’ crypto as collateral until the borrower repays the loan. 

In Crypto Loans the period of repayment can be shorter than that of regular loans, for example, Binance Loans offers a loan term of about 7 to 180 days.

The risks involved in Crypto Loans

One of the risks involved in Crypto loans is the volatility of cryptos which makes them unstable as compared to normal currencies. For example, the value of crypto can drop making the collateral value of the lender less than that of the loan.

However, crypto loans may appeal to investors for a number of reasons as a number of traders might not consider liquidating their assets. Crypto loans can help traders to receive interest on their assets.

Besides, traders can use Bitcoin (BTC) to borrow USDT or BUSD as there is a high probability for the collateral value to increase and worth more than the loan. BTC value might rise to make some profits for the loan borrower.

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