Crypto is National Security? – Chung’s Weekly Digest (1/30)

The Biden Administration has to now move to regulate crypto as ‘a matter of national security’.

The Biden Move

The Biden Administration has classified crypto regulation as a matter of national security as crypto adoption continues at an unprecedented rate but without proper regulation. Biden is likely to issue an executive order that will significantly move the crypto market depending on whether the treatment of crypto assets is positive or negative. 

Regulation has been long overdue and in the hearing in Congress, industry leaders have been reverberating the same call. Crypto regulation should have been legislated instead of being decreed through an executive order. The market is jittery as a result despite positive news that have been flooding the market. https://cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=96f1f04c5f4143bcb0f2e68c87d65feb&schema=twitter&url=https%3A//twitter.com/intocryptoverse/status/1487890052336304129&image=https%3A//abs.twimg.com/errors/logo46x38.png

Bitcoin ($BTC) has been trying to build its support above $37k and has been finding it hard to break the immediate resistance of $38.5k. Bitcoin bulls are starting to turn bearish and short to mid-term investors that are still invested, are holding to unrealized losses. 

The recent US Federal Reserve (Fed) meeting did not provide the affirmation that the market was seeking. Overall in the global market, technology stocks have been tanking because of the shrinking liquidity and tightening interest rates. The Crypto market is largely a technology-based industry and was one of the worst-hit.     

Weekly Recap

Ethereum ($ETH) has rebranded Ethreum 2.0 to reflect its relevance.  

Changpeng Zhao (CZ) dismisses the report by Reuters, calling it FUD. 

BSC sets its 2022 priorities on community building, multi-chain, and scalability.

FTX US allows direct multichain stablecoin withdrawals for the US dollar. 

American bank, JP Morgan Chase closed Uniswap’s founder’s bank account.  

Head of YouTube gaming leaves Web2 for Web3. 

Binance has reopened SEPA bank transfers. 

NFTs are decoupling from the crypto market and NFT collectors are seeing gains. 

Congress makes another attempt to cripple the crypto industry. 

BSC announces the first batch of MVB IV projects. 

Nigerians express outrage at Binance’s restrictions. 

OpenSea inadvertently exposes users to exploitation. 

Saylor remains upbeat on Bitcoin’s prospect on UpOnlyTV. 

Crypto.com partners LeBron James Foundation for crypto education. 

Market Sentiment

Bulls are turning into bears as the market is still searching for catalysts. 

Many short-term to midterm investors are holding on to unrealized losses. 

Some Bitcoin whales are finding this dip as an opportunity to increase their stash.

• Bitcoin’s price slump is a result of risk-off behavior.  

Russia’s President looks favorably at Bitcoin mining and Intel is creating mining chips. 

Goldman Sachs believes that crypto will take away gold’s market share as a ‘store of value’. 

Coins to Watch

Terra ($LUNA), the native token on the Terra blockchain took a nose dive and is an attractive investment opportunity. A decentralized ecosystem requires decentralized money. 

Fintech apps are bullish on $UST, the decentralized stablecoin powered by $LUNA. 

$SAND, $SOL, $THG are good buys with very strong fundamentals representing different segments of the crypto ecosystem. 

Thetan Arena has the traction and community to be the next big name in the Play-to-Earn category. 

The Irene DAO Debate

One crypto influencer shot to fame and fortune with a series of photos with a simple message of disrupting the creator economy. Photos of the Instagram model are sold as Non-Fungible Tokens (NFTs) and the collection attracted the attention of YouTuber Logan Paul and billionaire investor Mike Novogratz.     

The collection has a floor price of 0.414 eth which is approximately $1,036 at the time of writing. There are many brickbats thrown for various reasons. One of them is the misleading title using the word DAO (Decentralized Autonomous Organization). 

The entire crypto space is intended to be censorship-resistant and promises autonomy. If participants in this space believe in the values of a decentralized ecosystem, however distasteful the action is deemed, it has to be accepted. 

There will be countless other instances in the future whereby the utopian dream of a decentralized economy will be mocked, but that does not derail from other instances where it has made huge differences. 

Source : bsc.news