Category: Crypto News

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Bitcoin Crypto Exchange Crypto News

Web Traffic on Crypto Exchanges Hits New All-Time Highs

The crypto space has been turbulent during the past few months but according to new evidence, crypto exchange web traffic hit an all-time high in May.

According to data compiled by The Block, web traffic to cryptocurrency exchanges reached a record high of visits, with exchanges recording a total of 638.23 million visits in May. This represents a 20.4 percent increase compared to April and a 33 percent increase from March.

The most visited crypto exchange during May was Binance, with 39.4 percent of the traffic, followed by Coinbase with 19.9 percent. 

Binance Is Growing Fastest in 2021

Coinbase, one of the major US crypto exchanges, does not deal exclusively in crypto whereas Binance is a crypto-only exchange. Among the crypto-exclusive exchanges, Binance has by far the biggest market share with 72 percent in this category.

Binance looks to be dominating almost all research metrics relating to crypto exchange usage.

Cryptos Piquing Aussie Interest

At the same time, the number of Australians embracing crypto is clear when looking at who uses exchanges and related technology. Earlier this year, Binance Australia saw record growth in Q1 2021 and Swyft also saw record growth due to crypto’s massive increase in popularity and mainstream media coverage in Australia.

There has also been an increase in crypto-related searches on Google for Bitcoin (BTC) and NFTs, and an all-time high number of searches for Ethereum (ETH) in the past four months. Additionally, the volume of Aussies looking at cryptocurrencies on TradingView is up 132 percent since July 2020.

Looking at the information, it’s clear there is keen interest in cryptocurrencies and that people are more active on exchanges than ever. Whether it’s buying or selling, there’s lots going on.

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Crypto News Crypto Wallets

Crypto Wallet Provider Ledger Raises $380 Million to Expand into Defi and NFTs

Following a 500% surge in revenue for Q1 2021, Ledger has announced a new fundraising round that has elevated the company’s valuation to in excess of US$1.5 billion.

Ledger, a company best known for its cryptocurrency hardware wallets, already secures an estimated 15% of all cryptocurrency assets globally. Since its founding in 2014, it has sold 3 million hardware wallets in 190 countries and has more than 1.5 million monthly users.

Ledger’s flagship hardware wallet, the Nano X

Ledger Looks To The Future

In the announcement, Ledger chairman and CEO Pascal Gauthier highlighted that he was looking to capitalise on the hypergrowth of digital assets as they become increasingly mainstream. The funding, he said, would be used to extend Ledger’s leading position in cryptocurrency security and services to become “the secure gateway” to the entire digital asset ecosystem. In addition, it would allow the company to innovate its hardware products and expand its services via Ledger Live:

We expect to see the ecosystem diversify beyond cryptocurrencies to include NFTs, real estate and other forms of value that can be shifted onto the blockchain.  As we look to the future, we see ourselves as the secure gateway to this growing ecosystem. Our goal is to empower users to buy, sell, swap, borrow, and lend digital assets through the Ledger Live platform, which – when combined with our hardware – offers best-in-class security and a seamless user experience.

Ledger chairman and CEO, Pascal Gauthier

Concerns Over Ledger’s Data Breaches

While it certainly appears as if there is cause to be optimistic about Ledger and its future, the company continues to deal with user security concerns and reputational damage after last year’s data leak in which 270,000 users’ details were exposed.

We also saw Ledger hit with a lawsuit following a data breach with Shopify after 9,500 customers’ personal data was leaked along with up to 100,000 email addresses.

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Crypto Exchange Crypto News

Kraken Might Revaluate Its Launching Plans After Coinbase’s Poor IPO Performance

Kraken is re-evaluating its methods about going public after Coinbase’s poor results following its direct launch.

Kraken Rethinks Going Public

Coinbase debuted on the Nasdaq in April with a valuation of US$103 billion, calling the attention of many in the crypto industry and Wall Street as the first crypto exchange to be traded in the public market.

But seeing Coinbase’s results, Jesse Powell (pictured above), CEO of Kraken, is revaluating its plans to go public. Speaking to Fortune on June 11, Powell said a direct listing might have certain benefits, like no intermediaries – which makes it a cheaper process – but it might have a “dampening effect” in the long run.

An IPO is looking a little more attractive in light of the [Coinbase] direct listing’s performance. I would say we’re looking at it more seriously now, having the benefit of seeing how the direct public offering played out for Coinbase.

Jesse Powell, Kraken CEO

The Pros and Cons of an ICO

Coinbase went public earlier this year at $381 per COIN after a massive increase in users and revenue for 2020.

While a company that goes public with a direct listing doesn’t depend on intermediaries, an Initial Public Offering (IPO) does, and this has raised concerns in the crypto community. An IPO usually involves a Wall Street bank and, according to Powell, Wall Street still doesn’t understand crypto.

I think it’s the same thing that the Street missed about Amazon 20 years ago and what they are missing about Tesla now. I think they are just so tied up with the legacy way of doing things.

Wall Street in particular, and this is financial services, and I think there are a lot of players that have a lot to lose from the success of this space. I think you might be seeing people facing this cognitive dissonance of becoming increasingly aware of the impending doom of the legacy financial system.

Jesse Powell

However, Powell added that a direct listing aligns better with the nature of the decentralised crypto world, but that this also presents some problems:

Not having lock-ups, having billions of dollars of insiders be able to dump their shares, you know, on day one […] I think it has a dampening effect on the market.

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Bitcoin Bitcoin Mining Crypto News Digital Asset Mining

El Salvador is Planning a Huge Bitcoin Mining Operation that is “100% Eco-Friendly”

El Salvador President Nayib Bukele is planning to use a state-owned geothermal electric company to facilitate cryptocurrency mining, using geothermal energy from the country’s 20 active volcanoes. 

In a recent tweet, Bukele revealed his plan to use the country’s hundreds of megawatts of geothermal energy potential to mine Bitcoin.

The country has 644 MW of wasted energy. If harnessed, it would make the small Central American country the biggest Bitcoin mining facility in the hemisphere, while remaining 100 percent clean, according to Bukele.

The IMF Expresses Concerns

Unsurprisingly, regulatory and financial bodies globally shared their concerns about the country embracing and mining Bitcoin. The International Monetary Fund (IMF) said Bukele’s plan might raise “macroeconomic, financial, and legal issues”. However, the crypto community has embraced the move, echoing the fact that 75 percent of Salvadoreans are unbanked and have no access to traditional financial systems.

Crypto enthusiasts have also pointed out that using geothermal energy could push miners globally to move towards clean production of Bitcoin. Besides, countries like Norway and Iceland are already using hydro-electric and geothermal energy to power their mining rigs.

Other Countries Set to Follow El Salvador’s Example

El Salvador accepting Bitcoin as legal tender has been in the news in the past week – a move that surprised many in the crypto community as it has become the first country to do so. Days later, Wikipedia added Bitcoin as the country’s official currency alongside the Colón and US Dollar.

While powerful nations like China have been causing FUD in the market – in cracking down on BTC trading and mining – smaller countries like Argentina, Panama and Paraguay are now working on plans to adopt cryptocurrencies, following El Salvador’s example.

We could soon see more smaller countries and states, even cities, moving towards crypto mining as an alternative income. A recent example is Rockdale, a small town in Texas that became a mining farm soon after losing its Alcoa aluminum mine in 2019.

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Bitcoin Crypto News Cryptocurrencies Cryptocurrency Law

South America is going Bitcoin crazy: Argentina, Brazil, Panama, Paraguay, Nicaragua and El Salvador

Bitcoin’s influence is having a domino effect across almost the entire South American continent as crypto-fever rises in neighbouring countries south of the border from the US.

El Salvador is Leading the Way

El Salvador passed a bill this month to become the first country in the world to approve Bitcoin as legal currency. Late on June 8, the two-paged proposal put forward by 39-year-old El Salvadorean President Nayib Bukele was voted in by Congress with a supermajority in favour of the new Bitcoin law.

El Salvador President Nayib Bukele

President Bukele is undoubtedly one of the coolest political leaders pushing crypto forward, even adopting laser eyes for his Twitter profile. He is a Bitcoin supporter who has put El Salvador on the map, making history as the first nation to adopt Bitcoin as legal tender.

The Rest of South America to Follow

Bitcoin and cryptocurrency entrepreneur Tyler Winkelvoss tweeted about the South American countries following El Salvador’s lead:

Panamanian congressman Gabriel Silva posted on Twitter (also sporting laser eyes as part of a meme contest) that he was preparing a proposal to present at the national assembly.

This is important, and Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies.

Gabriel Silva, Panamanian congressman

Argentina is also looking at Bitcoin as its inflation soars above 42.6%. Argentinian congressman Francisco Sanchez joined in the laser eyes meme, as did two Brazilian congressmen.

Adios Capital Gains, Hola Bitcoin!

It isn’t hard to understand why Latin American countries would be so supportive of cryptocurrency adoption. For Salvadoreans living abroad, using Bitcoin instead of cash (with its high international transaction costs) will make it easier, faster and far cheaper to send money home. The new law will also open up financial services to the 70 percent of Salvadoreans who do not have bank accounts.

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Banking Bitcoin Crypto News Institutions

Berkshire Hathaway Invests $500 Million into Digital Bank Company

Warren Buffett’s American multinational holding company Berkshire Hathaway (one of the largest publicly held companies in the world) now has a US$500 million stake in Nubank, the world’s largest independent digital ‘Bitcoin-friendly’ bank, based in Brazil.

With 8.5 million customers, Nubank is the biggest online bank outside of Asia and has positioned itself as the most valuable financial institution in Latin America and the world. It was recently recognised as one of the most influential global companies by TIME magazine and one of the most innovative by CNBC. Launching its first product in Mexico just over a year ago, it has already received 1.5 million applications and is one of the largest issuers of new credit cards in that country.

The company is the largest digital bank in the world in terms of customer numbers – it has just reached the 40 million mark and, in the first five months of 2021, has grown at a pace of more than 45,000 new customers per day.

Nubank Blog

The company acquired Easynvest, a digital brokerage firm that offers a Bitcoin exchange-traded fund (ETF), in 2020 and is seriously challenging the global financial system by expanding its core credit card service to the unbanked to include personal lending and entrepreneurial investment loans.

On June 8, Nubank announced that it plans to use the money raised to fund its international expansion to Mexico and Colombia, launch new products and services, and hire more employees.

Superstar Executive Line-up

Nubank boasts an all-star team of brainiacs, including: Chief People Officer Renee Mauldin (Google, Twitter and Uber); Director of Operations Youssef Lahrech (MIT engineer and former senior vice-president at Capital One); and Product Director Jag Duggal (ex-Google and Facebook).

Although many Brazilians don’t have bank accounts, they do have mobiles and thus can use Nubank’s no-fee credit cards with a smartphone. The future we’ve been talking about is finally here. No wonder the banks and governments are FUDding. They are scared. Very scared – because the world is changing and they are being left in the dust.

Berkshire Hathaway Annual Shareholders Meeting 2021 – source

Billionaire investor Charlie Munger‘s fear and negative sentiment towards Bitcoin and cryptocurrency in general will soon be a thing of the past. The old-school generation of corporate finance and Wall Street manipulation must die so the new generation of open source money, free from banks and institutional control, can live.

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Bitcoin Crypto News Institutions Investing

$1.5 Trillion Investment Fund To Launch Two Crypto ETFs

Invesco is the latest investment management firm to apply for crypto-based exchange traded funds (ETFs), adding to the pile of ETFs the Securities and Exchange Commission (SEC) still needs to decide on.

According to the filing sent to the SEC, Invesco – which holds US$1.5 trillion in assets – has applied for two ETFs that are crypto-linked equities like Square and Microstrategy. These are the Galaxy Blockchain Economy and Invesco Galaxy Crypto Economy ETFs, where nearly 85 percent of the funds will sit. The rest of the portfolio will be put in other trusts and funds that hold cryptocurrencies.

ETF Applications Queueing Up

A queue of companies waiting to hear about their Bitcoin (BTC) ETFs has already formed. There are at least 12 issuers, including Fidelity Investments, Grayscale Investments and WisdomTree Investments, which are currently chasing Bitcoin ETFs, and the SEC has acknowledged at least six applications. This means it has a limited amount of time to make decisions about approval.

Some of the current Bitcoin ETFs [Bloomberg]

The logic is that since the SEC doesn’t seem to have a favourable view of Bitcoin, Invesco’s funds may be able to sidestep the SEC’s Bitcoin ETF blockades by only investing indirectly in cryptocurrencies.

Other companies have tried a similar route, such as an application for the Volt Bitcoin Revolution ETF filed recently that would also target companies exposed to Bitcoin. Or Bitwise Crypto Industry Innovators ETF, which tracks companies such as crypto miners and payment firms, launched in May.

Earlier in 2021 we also saw the ASX set to launch a Crypto ETF later this year due to high demand in Australia.

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Crypto News Ethereum Gas

Users Raise Security Concerns of Chrome/Brave Extension “GasNow”

Browser extension GasNow, which is used to keep track of Ethereum gas fees, has recently gained permission settings that are unsettling some of the crypto community.

GasNow is an extension available on Chrome and Brave browsers that allows users to track gas fees and set up alerts. Following a recent update to the app, it now asks to have access and modify what’s in your clipboard (when you copy text or other data with a device it gets put on the clipboard).

Security Concerns

This is a major security concern because, when you copy an address to send funds to, the extension can detect that event and switch the address with another when you paste it.

This will lead to your funds being sent to another address and your crypto being lost in cyberspace if you don’t double-check the address you pasted. Other scams have happened before due to malicious Chrome extensions.

Comments on Chrome web store

This automatically creates a problem for Brave users as well since third-party extensions are not vetted by Brave individually, and the Brave browser can only use Chrome extensions.

What The Developers Said

Most financial/crypto developers are usually aware of the massive security risk with this permission (not just crypto but in general, as it can be used to collect passwords). With such a potential added risk, individuals in the crypto space are becoming increasingly skittish with the proliferation of scams in recent times.

If you are using another similar extension, check the permissions that have been granted because there are other extensions using this technique. And remember to Do Your Own Research (DYOR).

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Bitcoin Crypto News Regulation

It’s Official, Bitcoin is Legal Tender in El Salvador – How it Will Work

El Salvador

In a historic move for the story of global Bitcoin adoption, the El Salvador legislative body has officially voted in favour of a bill adopting Bitcoin as legal tender.

On June 9, in a vote of 62 in favour, 19 opposed and 3 abstentions, history was made. All that’s left is for the president to sign it into law, expected to happen June 10.

This news following the breaking news on June 7, where Nayib Bukele, President of El Salvador, at the Bitcoin 2021 conference, announced that he would be submitting a bill to Congress that would effectively treat Bitcoin as legal tender.

Users Won’t Require a Government Issued Wallet

President Nayib Bukele discussed the development with Coindesk columnist Nic Carter, highlighting financial inclusion and noting that users won’t necessarily be required to have a government digital wallet. However, businesses would be mandated to accept Bitcoin for the sale of goods and services.

A Trust Fund Will Manage Bitcoin’s Volatility

To manage the volatility of the cryptocurrency, a trust fund would be set up to instantly convert Bitcoin to US dollars, effectively transferring the volatility risk to the trust. From time to time, the trust would replenish its US dollars through the sale of Bitcoins.

If there’s an ice-cream parlour [and the owner] doesn’t really want to take the risk, he has to accept Bitcoin because it’s a mandated currency but he doesn’t want to take the risk of convertibility, so he wants dollars deposited in his banking account and when he sells the ice cream, he can ask the government to exchange his Bitcoin [for] dollars. Of course he can do that in the markets also but he can ask the government to do it immediately.

Nayib Bukele, President of El Salvador
El Salvador President
Nayib Bukele’s recently updated Twitter profile image: note laser eyes

Government officials are expected to meet with the IMF later in the week. Analysts eagerly await the outcome of the meeting as their response is likely to set the precedent for other nations following suit.

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Bitcoin Crypto News Hackers

BTC Wasn’t Hacked; the FBI Just Seized Control of the Bitcoins via the Server

FBI

Following a ransomware attack last month, US investigators have seized close to 64 Bitcoin valued at approximately A$2.73 million. Bitcoin’s price dropped by almost 10 percent on the news and commentators were left speculating as to how this might have occurred. Some claimed the Bitcoin wallet was hacked, but this was not the case.

How It Was Reported

Mainstream commentators and cryptosceptics were vocal from the outset, some implying that Bitcoins could be seized by law enforcement agencies at will:

Bitcoin Community’s Response

The Bitcoin community, in characteristic fashion, fired back promptly with a barrage of tweets, some charitable and others less so:

What Really Happened

In the end, it was Blockstream CEO Adam Back who offered a considered response to help clear things up:

Bitcoin commentator Marty Bent, however, remained somewhat suspicious:

How could these attackers be smart enough to take down a vital piece of energy infrastructure but too dumb to run their own full node with a connected xpub associated with a dedicated device?

https://tftc.io/martys-bent/issue-1008/

While we may never know all the details as to how the Bitcoins were recovered, Bitcoiners were quick to point out that the episode proved how unsuitable Bitcoin is for illicit activity.

As to how this may occur, respected BTC developer Matt Odell offered a neat summary:

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