Month: February 2023

Massive Sell-Offs Looming: Shiba Inu Price at Risk

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• Shibu Inu is facing potential sell-offs after Voyager reportedly sold off some of its SHIB holdings.
• A “smart money” investor has recently transferred 182 billion SHIB to the cryptocurrency exchanges Crypto.com and Gemini.
• If these transactions continue, the price of the meme coin could experience downward movements.

Shiba Inu Facing Massive Sell-Offs

A massive transfer of Shiba Inu (SHIB) tokens was seen from SHIB wales just after Voyager made reports of some sell-offs of the meme coin. The price of Shiba Inu could take a significant blow if there is a considerable drop in demand for the stock in the near term or medium term amid these developments.

Whale Moves 183 Billion SHIB

A “smart money” investor reportedly carried out a sizable Shiba Inu transaction a few hours before press time, as reported by an on-chain data source called Lookonchain. The whale recently transferred 182 billion SHIB to the cryptocurrency exchanges Crypto.com and Gemini, which is equal to around $2.3 million.

Voyager Selling Assets via Coinbase

Lookonchain yesterday said that Voyager is selling assets via Coinbase most of which are comprised of SHIB tokens. Coinbase has given Voyager $100 million USDC over the last four days and since Feb 14th, Voyager has been sending assets to Coinbase almost daily.

Effects on Price

If these transactions carry on, the price of the meme coin could see downward movements due to decreased demand for it increases significantly due to large transfers from whales like this one witnessed recently . However, at press time Shiba Inu had increased by over 1.5% in the previous twenty-four hours according to CoinMarketCap indicating that no immediate effects have been seen yet on its price movement due to this transfer and possible sell offs by voyager at present..

Conclusion

The price impact remains uncertain but it is clear that any further major drag on SHIB’s prices could be caused if voyager continues selling all its crypto holdings through Coinbase as witnessed in recent times with this whale transferring 182 billion SHIB tokens across two exchanges

Bitcoin Surpasses Visa In Market Capitalization: A Crypto Milestone

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• Bitcoin (BTC) has surpassed Visa in market value and is now ranked 18th.
• Visa’s market capitalization is approximately $460 billion while Bitcoin’s is over $472 billion.
• The limited supply of bitcoin and its decentralized mode have driven its growth in the market.

Bitcoin Surpasses Visa In Market Value

Bitcoin (BTC) has passed renowned payment card company, Visa, in terms of market value. Despite high volatility levels in the crypto industry, bitcoin has steadily risen to become one of the top companies in the world with a market capitalization of more than $472 billion according to CoinMarketCap. This ranks it at 18th while Visa’s current market capitalization stands at approximately $460 billion as reported by tradingeconomics.com.

The Impact Of Bitcoin’s Entry Into The Financial World

The entry of bitcoin into the financial world has changed several dimensions and attracted debate among economists, investors, and governments alike. Despite skepticism and unpredictability, bitcoin’s market capitalization continues to rise since its inception in 2009 which proves how powerful this cryptocurrency can be despite external conditions or conditions within the industry itself.

Why Is Bitcoin Outperforming Other Flagship Companies?

Bitcoin operates through a decentralized mode whereby transactions are not under the control of financial institutions or government entities but depend on peer-to-peer processing through blockchain technology which makes it attractive for investors looking for stability against devaluing fiat currencies and large stock markets shares that are subject to government manipulation or printing new money whenever they deem fit. Additionally, bitcoin also has a limited supply of 21 million coins which further drives its growth due to scarcity compared to fiat currencies such as US Dollar which can be printed without limit by central banks when needed.

Examples Of Companies That Have Been Outdone By Bitcoin

At the end of January 2021, bitcoin surpassed Johnson & Johnson – one of the world’s largest healthcare companies – making it just one out of many other prestigious companies offering international financial services that have been outdone by cryptocurrencies such as NVIDIA Corporation, Berkshire Hathaway Inc., Facebook’s Meta Platforms Inc., Tesla etcetera .

Final Thoughts

It is momentous for bitcoin to outdo such great companies despite crypto winter due to its decentralized mode and limited supply driving demand amongst investors who are looking for stable investments away from government manipulation or devaluing fiat currencies . With Visa recently announcing their embrace towards cryptocurrencies , there will be even more avenues for growth opened up in future .

Coinbase Defends Staking Services in Court, Will Fight Ban

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• Coinbase CEO Brian Armstrong declared on Twitter that the company’s staking services are not securities.
• The US Securities Act and Howey Test do not consider staking as a form of security.
• When customers stake their assets, they maintain full ownership of such assets and can “unstake” them following protocol.

Coinbase Staking Services Not Considered Securities

Coinbase CEO Brian Armstrong took to Twitter to make it clear that the company’s staking services are not securities. He also added that Coinbase would defend this position in court if necessary in response to rumors of a staking ban. According to Coinbase, the US Securities Act and Howey Test do not consider taking a form of investment as a security because it does not meet the requirements of the test, which require an investment of money, joint enterprise, reasonable expectation of profits and other people’s efforts.

Staking Services Do Not Satisfy Requirements Of Howey Test

The Howey test is based on a decision made by the Supreme Court in 1946 but there is debate about whether this applies to current assets like cryptocurrency. In any case, Coinbase asserts that staking services do not satisfy these requirements as customers do not give up anything when asking Coinbase to stake part of their cryptocurrency; rather they continue to own what they had before requesting for staking services. Furthermore, no common business exists since validation is done by decentralized networks instead of central organizations and clients’ fortunes are independent from the company since rewards are predetermined so there is no need for profit expectations from others’ efforts.

Customer Ownership Retention Declassifies Staking As An Asset

Coinbase states that providing staking services does not qualify as an investment even with an enlarged definition including compensation surrendered for distinct financial interest. When customers ask for staking, they retain full ownership of their assets with ability to “unstake” them following protocol underpinning the process; therefore customer fortunes remain independent from Coinbase’s decisions or actions.

SEC Employs Howey Test To Determine Investment Contracts

The SEC employs the Howey test to determine whether an investment contract constitutes a security or not and while this decision was made by Supreme Court in 1946, there is still debate over its application on current assets such as cryptocurrency. Regardless, Coinbase claims that its staking service cannot be considered a security due to customer ownership retention and lack of any common enterprise between customer fortune and company decisions or actions.

Coinbase Will Defend Position In Court If Necessary

After rumors spread about potential bans on staking services, Brian Armstrong declared on Twitter that Coinbase will happily defend its position in court if needed; emphasizing his point about how their service does not constitute securities according to both US Securities Act and Howey Test requirements which necessitate investments consisting out monetary values, joint enterprises with reasonable expectation of profits from other people’s efforts – all criteria met here by customer ownership retention without any common business between client fortune or company action/decisions involved in governing rewards given through this service..

South Korean Regulator Sets Guidelines for Security Tokens

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• South Korea’s Financial Services Commission (FSC) has published guidelines on how blockchain-based tokens will be regulated as securities in the country.
• Assets that qualify to be treated as securities include staking assets and those used to derive dividends.
• The FSC is also encouraging innovation while ensuring consumer protection with its new regulations.

South Korean Regulatory Body Publishes Security Token Guidelines

The financial services commission (FSC) of South Korea recently released guidelines for regulating security tokens in the country. According to the FSC, these guidelines are meant to encourage innovation while protecting consumers from potential risks posed by digital assets.

What Qualifies as a Security Token?

The new guidelines stipulate that any blockchain-based token can be considered a security if it has certain characteristics that fit within the scope of South Korea’s capital market act. These include assets used for staking and those which generate dividends or other investment returns for investors.

Digital Asset Regulations

Apart from security tokens, the FSC also plans to regulate other digital assets like stablecoins through upcoming regulations. It further noted that cryptocurrency and other digital asset-like financial securities will be assessed on a case-by-case basis, with issuers and brokers such as crypto exchanges held accountable for evaluating them according to the rules set out by the government body.

South Korea’s Proactive Stance on Crypto

South Korea has been one of the most proactive countries when it comes to regulating cryptocurrencies and embracing blockchain technology in general. The government has invested 4 billion Korean won into developing a virtual power plant based on blockchain, declared plans to launch a virtual currency tracking system aimed at fighting money laundering activities, and announced its intention to develop a decentralized digital commodity market before H2 2023 – all within just two years!

Conclusion

It is clear that South Korea is taking tremendous steps towards promoting crypto adoption in its economy while simultaneously protecting consumers from potential risks associated with investing in digital assets such as cryptocurrencies and security tokens. The nation’s friendly disposition towards cryptocurrencies continues to attract attention from investors around the world looking for opportunities within this emerging asset class.