Paypal, ADA and Binance Strike Back

Paypal, ADA and Binance Strike Back


2022-08-30 21:18:59

Market situation

Stocks rose 0.8% to 1% over the past day for both the Dow Jones, S&P 500 and Nasdaq. In contrast, stock futures fell in all three indexes. Oil remains at a high of 120 USD/barrel.

The crypto market has fluctuated up and down according to BTC over the past day. Bitcoin is still holding around $30,000.

The price dropped yesterday and a large amount of BTC was also withdrawn from the exchange. On-chain data shows signs of accumulation of BTC. The amount of BTC on exchanges has continued to decrease recently.

Meanwhile, Ethereum on exchanges has been almost flat recently. The amount of deposit and withdrawal is also not much and the difference is not significant.

The good news for the crypto market is that a new bill has been proposed. Two Senators Sens. Kirsten Gillibrand and Cynthia Lummis have introduced the first major bipartisan legislation aimed at creating a regulatory framework for the cryptocurrency market. The bill includes tax regulations for crypto; the role of the CFTC and the SEC; energy used in crypto as well as mining companies; 401K pension fund and crypto investment; investor protection regulations as well as a number of other laws.

Overall, this measure also helps to establish a standard for classifying digital assets as commodities and empowers regulation to the Commodity Futures Trading Commission (CFTC) for redevelopment. The CFTC is arguably the more pro-crypto body. Under this bill, the majority of cryptocurrencies would be classified as commodities. They are also tasked with developing a set of cybersecurity guidelines for digital asset service providers. Although the bill is new, the positive points made by the two parties are also a good step forward for the development of crypto.

Possible financial crisis

According to the definition of the Fed, a financial crisis is confirmed as when two consecutive quarters of negative GDP growth. The Atlanta Federal Reserve’s GDPNow tracker is now pointing to a year-over-year increase of just 0.9% for the second quarter, down from an estimated 1.3% gain less than a week ago. With first-quarter growth down 1.5%, the second consecutive quarter of negative growth and officially defined as a financial crisis by the usual definition. According to the Fed, this possibility is possible.

Like the sharp drop of the market when covid broke out in March 2020. After that, the fund’s first and second quarter GDP results were negative growth. At that time, the economy had a very short financial crisis and the market quickly recovered. In case the financial crisis occurs, this is not necessarily bad if the market has a quick recovery. Similarly, when the financial crisis was confirmed in 2009, the economy could be close to bottoming out and preparing for a new growth season.

The market continues to receive bad news. Retail company Target has warned investors that their profits will take a hit in the short term, as there is an increase in unwanted items, canceling orders and taking aggressive steps to Eliminate excess inventory. They see people’s consumption habits change, reducing luxury, unnecessary items and focusing only on essential goods. The situation is similar at retailers from Walmart to Gap, Abercrombie & Fitch and American Eagle Outfitters, and more.

There are still people who are very optimistic about the current situation. JPMorgan’s head of market strategy and head of global research, Marko Kolanovic, believes the US economy is strong enough to handle oil prices up to $150 a barrel. This, according to him, will not affect stocks much and the market will continue to rise, especially technology securities. A rise in tech stocks could also have an impact on the price of BTC because of the current high correlation between the two assets. The reason why stocks rose was because the market had sold off recently, fearing investors had sold, causing the market to drop a lot. Therefore, he thinks that stocks will have a high probability of continuing to rise.

Binance Speaks

Despite the news that the SEC is investigating, Binance.US continues to launch staking services and shows that it is not afraid of the SEC. Binance’s staking service allows users to earn an annual return (APY) of up to 18%. The PoS blockchains that Binance.US supports include Audius (AUDIO), Avalanche (AVAX), BNB Chain, Cosmos (ATOM), Livepeer (LPT), Solana (SOL), and The Graph (GRT) and will expand soon more codes in the future.

Binance also emphasized that, contrary to the dismal job news from Coinbase and Gemini, Binance will continue to hire, including employees who have been laid off from other exchanges if they bring value to Binance.

Information about Binance being investigated by the SEC is believed to be a rumor (by Currently, the SEC has not confirmed and Binance has not responded to this.

In addition, another allegation from Reuters claimed that Binance acted as a conduit for money laundering, concealing the illicit origins of at least $2.35 billion within five years of its existence. Binance has responded to Reuters’ allegations. Binance has provided more than 50 pages of email exchanges back and forth and pointed out that Reuters gave false information.

The reason explained by Binance is that the exchange, anyone can create an account and use the money transfer, and this exchange cannot prevent that individual from sending. Binance also emphasized that it has always cooperated with government agencies to address hacks or breaches. They have also helped agencies recover money from many breaches, hacks when freezing hackers transfer that money to their exchange.

Some other information:

  • PayPal is finally allowing crypto holders to move their digital assets off its platform to other wallets and exchanges. This feature has been the most requested since the service to buy, sell and hold cryptocurrencies on Paypal’s platform was launched in October 2020.

  • Accounting firm Accenture conducted a survey of more than 3,200 wealthy clients across China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and Thailand. The company defines a wealthy investor as anyone who manages assets that can invest between $100,000 and $1 million. The survey results showed that 52% of the participants were holding some form of digital asset in Q1 2022. At the same time, digital assets made up 7% of their portfolio on average. . As can be seen, investors with money started entering the crypto market. With Asian companies still quite shy about crypto. 67% of wealth management firms said they have no plans to offer digital asset products or services. Wealth management firms attribute a lack of trust and understanding in digital assets, a wait-and-see mindset, and operational complexity of launching digital asset offerings. is the main reason for holding back, causing them to prioritize other channels instead.

  • In Grayscale’s aggregated investment fund, ADA is the fund’s largest value altcoin, after ETH. Grayscale is quite confident in the development of ADA.

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