Author: Robert Drage

Robert is a freelance researcher, with a background in information science currently interested in blockchain technology and technical developments in the field.

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Blockchain Crypto News

Colombia’s Capital Releases $2.8 Billion Finance Plan for Blockchain-Based Companies

The city of Bogotá in Colombia has recently announced the “Hub Blockchain Bogotá” project, which aims to assist 100 companies in developing blockchain solutions.

Claudia Hernández, Mayor of Bogotá, Colombia’s capital city, announced that four financing programs totalling US$8.8 billion have been made available for companies to apply to, one of which is specifically aimed at companies using/developing blockchain technology.

The 100 companies selected by the Hub Blockchain Bogotá project will receive $2.8 billion in direct funding, logistical support, as well as the formation of a Blockchain academy to improve blockchain knowledge and skills.

Each venture, each company, will be able to receive from the Fund for Innovation, Technology and Creative Industries of Bogotá [FITIC] between $10 [million] and up to $50 million in capital to be able to take their idea forward, but also in support for strategic resources, whatever each entrepreneur needs, and also in markets.

Claudia López, Bogotá mayor

Official applications to FITIC were to be received from June 25 and the names of the winners announced on August 20.

Bogotá’s Push For a Smart City

The larger initiative, of which Hub Blockchain Bogotá is a part, is looking to help businesses and entrepreneurs through innovation and technology, keeping a broader focus on the environment and green technology to help solve problems faced by the city and businesses confronting the fourth industrial revolution.

We want to make Bogotá a benchmark in innovation and a smart city. With these four FITIC programs we will help those companies and entrepreneurs who are looking for new solutions to respond to current and future challenges, as well as those generated by the fourth industrial revolution.

Claudia López, Bogotá mayor

Colombia is Already Deep in Crypto

Colombia’s financial regulator launched a cryptocurrency sandbox earlier this year allowing banks to explore business models associated with handling crypto assets. The government is also working with the World Economic Forum (WEF) on a blockchain-based solution to track government contracts transparently. 

The country is emerging as one of the fastest-growing crypto markets in the South American region, second only to Venezuela, according to the Chainalysis 2020 global crypto adoption index. Colombia has ranked ninth in the index, only three places behind the US. Peer-to-peer marketplace LocalBitcoins reported that Colombia accounted for 11.3% of its global trading volume throughout the year, the third-largest market globally by trading volume. 

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Australia Crypto News Payments

Australian Auction House Lloyds Accepts Crypto to Buy Cars

Australian auction house Lloyds is accepting major cryptocurrencies as payment, sparking almost immediate interest from Aussies wishing to trade in crypto for collector or sports cars.

Lloyds now allows bidders to use major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to pay for goods, with sellers paid in cash. The auction house is known for selling some of the most expensive cars in Australia but says it will be accepting crypto for all goods.

In the meantime, Lloyds has seen a surge of interest, and “within hours of offering cryptocurrency as a payment option, an A$100,000 custom-built caravan was paid for entirely by crypto“, according to Lloyds’ chief operations officer Lee Hames.

The longtime patron of Lloyds who bought the caravan said that he had no second thoughts about using crypto for the purchase and that he was amazed at how simple the process was.

Lloyds has joined the ranks of auction houses that accept crypto. On July 9, Sotheby’s will auction a very rare diamond and will allow bidders to bid online with crypto from June 25. Mecum, one of the world’s largest collector car auction companies, also accepts crypto as payment.

In April, CarBuyers.com.au announced a new payment system that allows Aussies to sell their vehicles for Bitcoin.

Crypto For Cars and Earthmoving Machinery

Since Lloyds allowed payment with digital currency, it has noticed more potential buyers looking at everything from classic cars to heavy earthmoving machinery. According to Hames, Lloyds’ dedicated crypto line has seen inquiries “pour in” since making the option available.

We have seen people using this as a way of divesting out of cryptocurrency and back into real-life assets. As prices drop, people are taking some profits off the table and transferring [them] to something like a classic car or bulldozer and putting it to work.

Lee Hames, Lloyds COO

Lloyds Auctions offers some of the rarest and most desirable collectible cars for sale in Australia, and by opening channels for crypto it has allowed people to acquire them as easily as paying with Visa or Mastercard. Sellers can choose to be paid in digital currencies or Australian dollars.

Lloyds Has Dabbled in Blockchain Technology Before

Earlier in June, Lloyds also announced it would be minting non-fungible tokens (NFTs) for a collection of glass plate negatives capturing 140 years of “arguably the most significant photographic collection” in Australian history. The NFTs will serve as proof of ownership, stored on the blockchain for the owners of each piece.

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Bitcoin Bitcoin Mining China Crypto News

Chinese Mining Businesses Migrate to Kazakhstan Amid the Crypto Crackdown

Canaan, a major ASIC miner manufacturer, and BTC.com, the fifth-largest Bitcoin miner group, are moving into China’s backyard, with particular focus on the Central Asian country of Kazakhstan.

As the crackdown on cryptocurrencies in China continues, so does the migration of miners looking to other parts of the world where they can set up shop. Today, political stability, regulatory clarity and respect for private property rights are the most important criteria for miners.

Miners Look to New Options

With confirmed bans in multiple regions including Xinjiang, Inner Mongolia, Sichuan and Yunnan, miners are looking for new options. One of BIT Mining’s data centres (part of the BTC.com mining pool) received a notice from the Sichuan State Grid informing it that the grid would cut its power supply by June 19. In response, the company expects to have 2600 Bitcoin miners shipped to Kazakhstan by the start of July.

Over the coming quarters, it plans to ship its remaining mining machines to other data centres outside of China. BIT Mining has also invested US$25 million in a new mining centre in Texas.

Following our investments in cryptocurrency mining data centres in Texas and Kazakhstan, we are accelerating our overseas development for alternative high-quality mining resources.

Xianfeng Yang, CEO of BIT Mining

Canaan the Latest Mover

Chinese ASIC manufacturer Canaan has also decided to set up a base in Kazakhstan, where it plans to diversify its mining operations.

One of the main considerations for these businesses moving from China is the high cost of transporting equipment halfway across the world. Miners need a place with existing infrastructure capable of supporting the needs of these types of businesses.

Some Operators Are More Cautious

Besides the country’s relative proximity, this is a contributing factor in moving to Kazakhstan as it is expected to host several other crypto mining firms in the future. Some operators, however, are more cautious.

I think Kazakhstan has already hit a sort of ceiling as to how many miners can move into the country.

Alejandro De La Torre,  Poolin vice-president

The US is a second option for miners who can afford it. States such as Texas, Mississippi, Tennessee and Florida have already indicated their openness to migratory miners. 

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Bitcoin Crypto News Ethereum NFTs

Flawless 101-Carat Diamond to be Auctioned at Sotheby’s Accepting Crypto As Payment

perfect diamond isolated on shiny background with clipping path.

International auction house Sotheby’s will accept Bitcoin (BTC) and Ethereum (ETH) for a rare 101.38-carat diamond, the first time cryptocurrency will be accepted as payment at auction of a diamond weighing more than 100 carats.

No other physical object with an estimate even approaching this amount has ever been publicly offered for purchase with cryptocurrency, according to the auction house.

This is a truly symbolic moment. The most ancient and emblematic denominator of value can now, for the first time, be purchased using humanity’s newest universal currency. Never was there a better moment to bring a world-class diamond such as this to the market.

Patti Wong, chair of Sotheby’s Asia

Dubbed ‘The Key 10138’, it is an example of type IIa diamonds, the most chemically pure variety of which only 10 over 100 carats have ever been sold at auction.

A Homage to the Digital World

Sotheby’s, a British-founded American multinational corporation headquartered in New York City and operating in more than 40 countries, is one of the world’s largest brokers of fine and decorative art, jewellery, real estate and collectibles.

With the name ‘The Key 10138’, we wanted to celebrate this enlightening virtue while also alluding to the crucial function of digital keys in the world of NFTs and cryptocurrency.

Wenhao Yu, deputy chairman of Sotheby’s Jewellery in Asia

Along with fiat, the auction house will also accept Bitcoin and Ethereum as payment for the diamond, estimated to be worth between US$10 million and $15 million. The live single-lot auction will be held in Hong Kong on July 9, with online bidding open from June 25. Sotheby’s will host the auction using its hybrid online and live bidding process.

Advertisement for the diamond [Sotheby’s]

The Key 10138 diamond is the main attraction of Sotheby’s inaugural “Luxury Edit” sale series in Asia, bringing together a variety of luxury items that include jewels, watches, wine, handbags and rare sneakers. The auction house has not stated whether these other items will be available for purchase with crypto as well.

Increasing Interest in the Digital Space

Sotheby’s has made significant strides in the adoption of blockchain-related technologies such as NFTs. The organisation recently sold a CryptoPunk non-fungible token (NFT) for a record US$11.8 million.

Last month, Sotheby’s sold a Banksy for US$12.9 million in the first instance of a work of physical art sold by a major auction house that was bought with cryptocurrency.

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Bitcoin Mining China Crypto News Regulation

Why China Closing Bitcoin Mining Operations is a Good Thing

Various factors have been impacting Bitcoin, some of which are due to the ripple effects caused by negative press, heavy regulation, and bans implemented by China.

Bitcoin’s hashrate is one of its most important metrics. Essentially, it is an indication of the processing power of the Bitcoin network. The higher the hashrate, the faster transactions are verified and blocks can be created.

China’s Continual Crackdowns

China currently accounts for roughly 65% of the Bitcoin hashrate. Previously many miners set up shop there because of cheap energy and hardware prices. Additionally, the ability to use excess energy from sustainable sources like hydro power in Sichuan was a positive reason to mine there.

However, during 2021 there have been multiple instances where Bitcoin (BTC) and the crypto market at large have been affected by uncertain regulatory conditions in China. Just last week, the Bitcoin hashrate dropped nearly 17% after a crackdown in Sichuan where power was cut to 26 mining farms.

In April, outages in Xinjiang cut Bitcoin’s hashrate by 30% and contributed to a US$10,000 decline in Bitcoin’s price. But since Xinjiang ordered several crypto mining farms to shut down on June 9 -one of several shutdown orders across the country – it now seems that China is intent on shooing miners out of the country.

Why Redistributed Hashrate is Good News

Firstly, mining difficulty automatically adjusts as per protocol adjustments in the code, which neutralises the effects of less (or more) mining rigs coming on/off-line. This means that the network won’t be heavily affected by the hashrate drop for long.

While there will be a rough patch as Bitcoin re-establishes the lost hashrate out of China, once that is rebuilt there will be many positives to come from this.

Bitcoin mining will become more decentralised, since China holds the majority of the hashrate. Heavily adopting South American countries like El Salvador could pick up some of the slack, along with the increase of sustainable mining operations in the US. This will also lead to Bitcoin miners in other countries becoming more profitable, as they will be able to buy mining rigs from China since there is a worldwide shortage, and because Chinese miners will no longer be using them.

Bitcoin miners around the world could get cheap mining rigs from China sellers if they decide not to relocate. If China ends up completely banning crypto, it will end the continual FUD regarding China’s centralisation of Bitcoin; China using dirty energy to mine; and China’s continual threats to ban Bitcoin, which affects the market.

Miami Enticing Banned Bitcoin Miners

As the government crackdown heats up, Chinese Bitcoin miners are looking for a new home. Places like Texas and Miami, Florida in the US have been shaping up in order to cater for Bitcoin miners by adjusting their laws and regulations around crypto.

Miners want to set up in places with zero regulatory/political uncertainty. As Wayne Lin, founder of Chinese venture capitalist Axia8 Ventures, has stated: “I wouldn’t want to spend millions of dollars setting up my facility if the policies could change suddenly.”

We want to make sure that our city has an opportunity to compete […] We’re talking to a lot of companies and just telling them, ‘Hey, we want you to be here.

Francis Suarez, Miami Mayor

Suarez is promising near-limitless supplies of cheap nuclear energy and a stable home. He told CNBC: “We understand how important this is […] miners want to get to a certain kilowatt price per hour. And so we’re working with them on that.”

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Crypto Exchange Crypto News Cryptocurrencies Investing

Bitcoin Exchange Flows Reversing Again as Investor Confidence Returns

Glassnode on-chain analysis is showing a possible reverse in exchange flows, indicating investors are looking to hold again.

Crypto Supply is Moving Back to Wallets

According to analysis done by Glassnode, there has been a reduction in supply held in exchange wallets. This means there are more cryptos being taken out of exchanges in the past month than being put in to trade with.

The analysis looks at the supply in all major exchange wallets, including Binance, Coinbase and Huobi, among others. The red bars indicate supply leaving exchange wallets, and green bars show supply moving into exchange wallets.

To some, this is an indication that investors are reverting to HODL mode by putting their digital assets back into their wallets. On June 18, the outflow increased to nearly six times the previous measurement.

Glassnode also recently released an article explaining why the bull run is far from over, based on patterns of accumulation and distribution.

Exchanges Have Been Booming

During the past two months, the amount of cryptos held in exchange wallets have been at a one-year-high. This could have been due to high volatility created by the media at large, as well as regulatory scrutiny that has made holders nervous and ready to sell. This is also why web traffic on crypto exchanges has been off the charts.

The crypto market attracts new investors eager to make money out of volatile assets. However, it’s important to remember which factors can affect the price of Bitcoin and, by extension, the rest of the market.

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Crypto News NFTs

CNN To Sell “Historic News Moments” as NFTs

CNN is joining in the crypto space by sharing “moments” from its archives as non-fungible tokens (NFTs). The prominent news network has officially dipped its toe by minting these moments and selling them as NFTs.

According to a press release from CNN, “Vault by CNN: Moments That Changed Us” will house a select set of digital collectibles, called “Moments”, from CNN’s television archives, minted as NFTs using blockchain technology, to be sold on vault.cnn.com.

The NFTs will be minted from CNN’s 41 years’ worth of archived material and will available on the Flow blockchain, which is also home to NBA Top Shot, a basketball digital collectibles marketplace. The network has not revealed which specific historic moments will be tokenised, but examples may include what it describes as “key historical moments organised around specific themes including early CNN exclusives, world history, and presidential elections”.

The launch is scheduled towards the end of June, from when there will be six weekly drops. As the collector community grows, so will the Vault‘s content, adapting to its community, according to the release.

CNN has also partnered with video framing firm Infinite Objects so users will have the option of rendering their NFTs onto a screen and displaying them physically while offline.

Can Anyone ‘Own’ History?

‘Owning’ historical events captured by news reporters, recorded and aired by CNN? Sounds like a bit of an ownership issue.

Until now, there has been no way to ‘collect’ these moments. Users can often find old footage online, or packaged up in documentaries, but they cannot ‘own’ them or display them in the way they can with a print newspaper or magazine.

CNN press release
Vault by CNN website

CNN’s online archive already boasts 700,000 hours of news content that can be purchased and downloaded without conferring ‘ownership’. Despite putting forward ‘ownership’ as a value proposition of the NFTs, the network notes that “CNN retains copyright and ownership over the content”.

What is CNN going to do to create value around its NFT offering? Is simply putting a ‘moment’ into a video frame enough to capture the interest of potential buyers?

Mainstream Media Using Blockchain Technology

This year, various businesses have started experimenting with blockchain and related technologies. However, organisations that operate in the public eye have also recently shown how they can apply these technologies to their own industries.

Fox Entertainment recently spent US$100 million on an NFT creator fund to support the entire development process of NFTs. Similarly, Marvel recently announced a launch of an NFT marketplace on the Binance Smart Chain (BSC).  The development is focused on Marvel comic fans and content creators can transmit assets into NFTs.

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Crypto Exchange Crypto News Fan Tokens NFTs Regulation Tokens

Thailand Bans Meme Coins, Fan Tokens and NFTs

New regulations for Thai crypto exchanges have been introduced that ban specific digital assets, including meme coins, fan coins, non-fungible tokens (NFTs), and tokens issued by exchanges.

According to a release from the Thailand Securities and Exchange Commission (SEC), new rules have been implemented that will prohibit crypto exchanges in Thailand to offer digital assets that have any of the following characteristics:

  • 1)  Meme token: having no clear objective or substance or underlying, and whose price [is] running on social media trends
  • 2)  Fan token: tokenised by the fame of influencers, such as the Juventus Fan Token (JUV)
  • 3)  Non-fungible token (NFT): a digital creation to declare ownership or grant of right in an object or specific right. It is unique and not interchangeable with digital tokens of the same category and type at the equal amount
  • 4)  Digital tokens which are utilised in a blockchain transaction and issued by digital asset exchanges or related persons

DOGE no exception

There has been no specific mention as to which coins will and won’t be allowed. Meme coins like Dogecoin (DOGE) are likely to be among those prohibited by the ban.

The final item on the list refers to tokens issued by exchanges. This is designed to make it hard for crypto dealers to create tokens they use to trade among themselves, or that their customers can use to make payments for exchanges’ services.

Thai Exchanges “Tokens Must Comply Or Be Delisted”

Additionally, the SEC has called for crypto exchanges to set requirements that token issuers need to meet with their whitepaper and relevant rules; if they can’t comply, the token will be delisted.

The SEC stated that exchanges need to comply with the guidelines prescribed in order to “enhance protection of digital asset traders’ interest”.

The exchanges are required to comply and revise their listing rules in accordance with the Notification within 30 days from the effective date thereof.

Thailand Securities and Exchange Commission press release

Individual Thai investors remain free to use any of the tokens prohibited by the SEC if they wish to, providing they can find someone, or some exchange, willing to handle their trades.

Last year we saw Australian exchanges be forced to delist privacy coins to prevent users performing anonymous transactions.

Crypto: Restrict or Prohibit?

Although Bitcoin is over 10 years old, many countries still do not have declared systems that either restrict, regulate or ban cryptocurrency. Several are still analysing ways to regulate these digital assets. Overall, Bitcoin and crypto in general remain in a legal grey area for much of the world.

This move from the Thailand SEC aims at regulation with the vision of protecting the money of Thai citizens. India had previously indicated it wanted to ban Bitcoin, but has since stated that India would rather regulate it. This is a positive move, considering the millions of dollars India has received in crypto for COVID-19 relief.

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Crypto News Cryptocurrencies Cryptos Investing Surveys

Nearly Half Of Millennial Millionaires Have At Least 25% of Their Wealth in Crypto

The crypto boom has created wealth for young early adopters and according to a new survey, nearly half of millennial millionaires have at least a quarter of their money in crypto.

CNBC Millionaire Survey Findings

According to the CNBC Millionaire survey, about 47% of millennial millionaires have more than 25% of their wealth in crypto. The survey sampled 750 investors with at least $1 million in investible assets, and showed that more than a third of millennial millionaires have at least half their wealth in crypto. Australian millennials are no different, as we recently reported that aussies are more interested in crypto than real estate.

The younger investors were more intellectually engaged with the idea even though it was new. Older investors and the boomers were largely saying, ‘Is this legit?’

George Walper, president of Spectrem Group

Older millionaires are far less likely to invest in crypto due to a lack of interest or an inability to understand it. The survey shows that 83% of American millionaires have none of their wealth in crypto, and only one in 10 keeps more than 10% of their wealth in crypto assets.

Generational Gap Opens Wider on NFTs

The generational divide is at its largest with regards to non-fungible tokens (NFTs). The majority of millionaires say they don’t know what NFTs are, and regarding millennials a third of them are saying they are an “overhyped fad”. The other two-thirds are saying NFTs “are the next big thing”.

Nearly half of millennials surveyed own NFTs, and 40% say they don’t currently own an NFT but have “considered” it. In comparison, 98% of boomer millionaires say they don’t own any NFTs and aren’t considering acquiring any.

US Millionaires Plan To Sell Stocks and Cryptos Before Tax Time

The survey also showed that 69% of US investors with more than US$1 million expect higher taxes under the Biden administration, specifically higher capital gains tax and business tax. This could push investors to sell their investments before the tax hikes come into play. According to the survey, 19% of participants plan to do this.

Businesses Should Be Prepared For New Buyers In The Market

The importance of crypto to young millionaires could shift the wealth management industry as private banks, brokers and wealth management firms scramble to cater to a new, crypto-heavy clientele. Businesses that wish to capute this new market segment must therefore cater to their needs.

We see more and more providers offering access to crypto investing. It’s changing fast.

George Walper, president of Spectrem Group

And as younger millennials become home owners, businesses need to adapt to their needs to survive. Some Aussie buyers are even using crypto as house deposits.

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Bitcoin Crypto News Investing

Hedge Fund Manager Paul Jones Calls Bitcoin ‘a Way to Invest in Certainty’

Billionaire hedge fund manager Paul Tudor Jones says he would want to have 5% in Bitcoin now that he sees how it can protect wealth in the long term.

In an interview with CNBC on June 14, when talking about Bitcoin (BTC) Jones stated that he likes investing in something that is “reliable, consistent, honest, and 100% certain”, and added that he favours Bitcoin as a portfolio diversifier.

Jones’s firm, Tudor Investment Corp, has US$44.6 billion assets under management (AUM) and has recently secured custodial ties with institutional crypto powerhouses Coinbase and Bakkt. Jones had previously recommended 1% to 2% BTC holdings in a portfolio in 2020 but has now stated that 5% would be a good allocation given the current state of the US Federal Reserve.

Uncertainty About Inflation

One of the reasons for changing his position is that Jones is “going all in on inflation trades” depending on US Federal Reserve decisions to address inflation by shifting its policies this week.

If they say, ‘We’re on path, things are good’, then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold …

Paul Tudor Jones

If the FED decides not to do anything about inflation and prices continue to go up, investing in things that increase as price increases is a strategy (inflation trades). In the meantime, inflation data revealed the biggest price spikes in 13 years for two months in a row.

Additionally, Jones stated that stockmarket value has increased to 220% of the US gross domestic product (GDP); at the time the dot.com bubble burst, it was around 200%. This is something Jones said is of concern to him. The FED is currently meeting behind closed doors to discuss the economic figures, with a statement and press conference expected on June 16.