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Vinny Lingham: Crypto Market Won’t Recover Anytime Soon

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Vinny Lingham, a general partner at Multicoin Capital and the CEO of Civic, believes the crypto market won’t recover any time soon.

He said:

The crypto market will rise again, but most likely only when the pain of the recent fall becomes a distant memory. Don’t underestimate the power of psychology in free markets.

Why Crypto Could Take a Long Time to Recover

bitcoin price ethereum ripple xrp
Top cryptocurrency assets including bitcoin (blue), ethereum (red), and ripple (orange) have taken steep losses over the past several days.

In 2017, the crypto market saw one of the most intense bull runs in its decade-long history fueled by the sudden emergence of retail traders and individual investors in regions like Japan and South Korea.

At one point, the demand for crypto in South Korea surged to a point in which the premium of the Bitcoin price achieved 20 to 30 percent. When Bitcoin was trading at an all-time high at $19,500 in the U.S. market, it was trading at over $23,000 in South Korea.

At the time, investors of all ages from teenagers to middle-aged employees invested heavily in the cryptocurrency market. Many investors saw their neighbors getting rich off of crypto and could not resist.

Teenagers utilized their parents’ bank accounts without authorization to purchase crypto and many individuals in their 40s that felt stuck in their jobs that pay less than $30,000 per year — the GDP per capita in South Korea is $29,742 — invested in crypto, seeing a glimpse of hope.

Nathaniel Popper, a journalist at The New York Times, reported that Kim Hyon-jeong, a 45-year-old teacher and a single mother, invested $90,000 into cryptocurrencies in the fall of 2017, $25,000 from a loan.

South Korea bitcoin cryptocurrency
The crypto crash has been hard on investors in South Korea.

In South Korea, especially in the outskirts of Seoul, teachers are paid on average about $3,000 a month, and with the irrationally high rent costs at the capital, the majority of teachers and government employees are left with less than $1,500 to save on a monthly basis.

As crypto prices plunged, Kim lost most of her money, which may take well over 10 years to recover considering the interest on the bank loan she acquired.

“I thought that cryptocurrencies would be the one and only breakthrough for ordinary hardworking people like us. I thought my family and I could escape hardship and live more comfortably, but it turned out to be the other way around,” she said.

Even now, after the fourth largest bear market in the last 10 years, cryptocurrencies are recognized as a sign of hope for millennials that have given up on the idea of obtaining a stable job, earning enough money to purchase a house in Seoul, and getting married due to the declining economy of South Korea.

Regardless of how millennials perceive cryptocurrencies in markets like Japan and South Korea, it could take a long time for retail traders to psychologically recover from the three-month period from November to January of 2018 when prices spiked by well over 200 percent and plunged to extremely low levels.

How Long?

On average, it has taken the crypto market 62 weeks to recover from major corrections, approximately a year and three months.

But, because of the mainstream media coverage it received and the exposure it gained, crypto could certainly take longer than a year and a quarter to fully recover.

Source. ccn

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Twitch discontinues crypto payment options, Binance Launchpad update and more

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Crypto News – 25th March 

Bitcoin hash rate vs Ethereum hash rate: Recent reports show that Bitcoin’s hash rate had seen a drop of 50% but then steadily increased to register an 80% gain.

Read more on https://bit.ly/2Wp2IAS

Charles Hoskinson on Cardano’s status as a multi-asset ledger: He stated that it would not be a “particular usual financial system,” if users cannot issue their own assets, adding that Cardano was a multi-ledger system that would support multi-currencies.

Read more on https://bit.ly/2Fr6Eu3

Cryptopia on deposits: The statement said that deposits that took place more than 24 hours after the announcement would not be recovered.

Read more on https://bit.ly/2HWDCW5

Bitfi adds XRP: Bitfi claimed that XRP addition was another step in the wave of mainstream adoption because the platform was mainly Bitcoin-friendly.

Read more on https://bit.ly/2upongl

Bitmain’s IPO filing officially lapses this week The mining firm is back in the spotlight yet again after Dovey Wan, Founding Partner at Primitive, pointed out that Bitmain’s Hong Kong Stock Exchange initial public offering filing would expire this week on 26 March, 2019.

Read more on https://bit.ly/2TYYses

Justin Sun’s Twitter followers may be fake: A researcher found out that most of Sun’s latest followers are fake or are bots.

Read more on https://bit.ly/2CEPtEu

 

Source.ambcrypto

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Cryptopia reveals that funds deposited 24 hours after declaration of breach would not be recovered

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The New Zealand-based cryptocurrency exchange, Cryptopia released a statement detailing information regarding the deposits that took place after the hack on 14 January. The exchange, which was attacked twice in January, warned its customers about the breach and put their website under maintenance to avoid any further damage.

The statement said that all customers were notified about the breach on 15 January at 12:00 AM NZT and thus, deposits that took place more than 24 hours after the announcement would not be recovered. Cryptopia stated,“This means that if you sent funds after 16/01/2019 12:00AM NZT we will not be recovering those funds for you.”

Cryptopia did not set any specific deadline to recover the funds that were sent before the cutoff. However, any deposit they recover would be “subject to the same haircut” that was already applied on their users. The option to deposit funds remains disabled on the exchange and users have been asked to wait until an official announcement is made.

Once the deposits are re-enabled, users can deposits funds after generating a new deposit address for each of their coins. The users were also warned not to use any existing wallets to send funds and instead, were advised to create a new wallet address.

Cryptopia already made a CoinInfo page available to its users, providing them with the option to check the status of their coins after the hack. The exchange previously said that they would be securing 35% of the coins to new wallets and that they would be enabling the option for users to cancel orders.

However, to get back on track, it will have to secure all the listed coins. According to an email shared by the exchange, it is planning to get back into business by the end of March. The statement said,“We will be emailing you again shortly with more details around the rebates and the projected dates for trading to be active again. Please be aware, we are hoping to achieve this by the end of the month.”

Source.ambcrypto

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Bitmain’s IPO filing is about to expire

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Twitter user @DoveyWann recently spotted some significant news related to Bitmain. The Chinese crypto mining firm’s Initial Public Offering (IPO) filing is due to officially expire later today (25/03/2019), officially signalling the failure of its first effort to go public.

Bitmain first filed for the IPO six months ago, still riding high in the wake of the astronomical profits that the company had previously made, as the mining industry leader at the time of 2017’s historic bull run. Since then, a number of major investors have pulled out, claiming that they were misled by the company. Bitmain has been beset by various issues, and some have speculated that it may now be insolvent.

Lost revenue due to plummeting prices in the crypto market was compounded by the company’s leadership unwisely investing a large amount of its profits into Bitcoin Cash (BCH), as well as losing its edge in terms of the quality of its mining rigs. Bitmain’s co-founder, former CEO, and figurehead, Jihan Wu, now appears to have lost a significant amount of his previous influence.

An IPO filing has six months from submission to move on to its next stage, the hearing, and this now appears to have passed. While few suspected that the IPO would ever be successful, this official confirmation is a notable development in the ongoing bear market and saga of Bitmain. The company was hoping to be floated on the Tokyo Stock Exchange, but Bitmain may still have a chance to go public with a further filing on the NASDAQ.

Source:chepicap

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