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SpaceX CEO Elon Musk Says Governments Cannot Destroy Crypto, Can Only Slow It Down

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Elon Musk has once again hit back at U.S. regulators coming for crypto. Talking at the Code Conference which concluded Wednesday, Musk gave his opinions on the current regulatory battle being waged between the United States government and the crypto space. The CEO said that regulators should not try to regulate the crypto market, and asked the government to “do nothing” to regulate the space.

During the infrastructure bill fiasco, Musk had called upon the government to avoid rushing to regulate the crypto industry. Asking that careful considerations be made before putting into law regulations that would harm the crypto industry.

Musk also explained that it was impossible for the government to completely destroy crypto with regulations. The billionaire admitted that the government could slow down its growth, but there was no way it would eliminate cryptos completely. Speaking on this, Musk said, “It is not possible to, I think, destroy crypto, but is possible for governments to slow down its advancement.”

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The CEO has always been vocal about his support for cryptocurrencies, with his tweets pushing meme coin Dogecoin to become a top 10 cryptocurrency by market cap. An early supporter, he has always believed in the value that cryptocurrencies posed for the future of technology.  Tesla, on which Musk serves as CEO, had earlier in the year begun accepting bitcoin payments for its electric vehicles.

Crypto Mining And The Environment

Musk also commented on the ongoing mining crackdowns in China. The government of China had completely banned the mining of cryptocurrencies in the country, citing energy concerns as the reason for the crackdowns. Talking on this, the Tesla CEO admitted that China has had “significant electricity generation issues.” Musk explained that the crackdowns can be attributed to the power outages that had been experienced in the southern parts of the country. And said that crypto mining may have been a contributing factor to these power outages.

Crypto total market cap chart from TradingView.com
Crypto total market cap down below $2 trillion | Source: Crypto Total Market Cap on TradingView.com

Musk’s own company Tesla had halted bitcoin payments for its vehicles shortly after the automobile manufacturer had announced it would be accepting the cryptocurrency for its cars. Tesla had also cited energy concerns as being the main reason behind this and would consider accepting the cryptocurrency again once the energy consumption of its mining activities reaches at least a 50% renewable energy threshold.

The SpaceX CEO also pointed out that there might be a more sinister reason behind the crackdown on crypto by the Chinese government. Given that cryptocurrencies cannot be controlled by the government, it poses a threat to the control that governments possess over their citizens. “I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government. They don’t like that,” Musk stated.

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Bitmart Says It Lost USD 150M In a Hack, Suspends Withdrawals

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One of the top 30 crypto exchanges, Bitmart, confirmed it has lost around USD 150m in a hack today, December 5, and has temporarily suspended withdrawals until further notice.

The company said they have identified “a large-scale security breach” related to one of their Ethereum (ETH) hot wallets and one of their Binance Smart Chain hot wallets.

“At this moment we are still concluding the possible methods used,” Bitmart said, adding that the affected wallets “carry a small percentage of assets on BitMart and all of our other wallets are secure and unharmed.”

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The exchange was established in 2017 and claims it has more than 9 million users. It listed Alexander Capital Ventures and Fenbushi Capital among its investors.

The 24-hour trading volume on Bitmart surpassed USD 1.4bn, per Coingecko data, which ranks the platform as the 25th largest exchange by daily trading volume.

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Fidelity to Launch Spot Bitcoin ETF This Week

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Fidelity is aiming to launch its first spot Bitcoin ETF

Fidelity, an American multinational financial services corporation, is set to launch its first spot Bitcoin ETF in Canada this week, according to Bloomberg senior ETF analysts.

ETF launch

Fidelity is a multinational financial services corporation that was established in 1946, and it remains one of the largest asset management companies in the world with $4.9 trillion AUM with a total AVN of $8.3 trillion.

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According to Bloomberg analysts, the fund with FBTC CN is currently pending listing on the Canadian exchange and will be trading under the name Fidelity Advantage Bitcoin. Balchunas also notes that the new fund might possibly become the biggest asset management company that includes Bitcoin products.

Spot ETF as main advantage

While futures-backed Bitcoin ETFs are not something new for the market, the physically-backed exchange-traded fund would actually be a more convenient solution for Canadian investors who are willing to receive exposure to the cryptocurrency market and Bitcoin specifically.

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Compared to futures-backed funds, physical settlement Bitcoin products allow investors to receive direct exposure to the cryptocurrency market without facing high roll costs. Since Bitcoin-tracking funds utilize short-term one-month futures, they have to renew their contracts every month, which puts investors in an unfavorable position.

Due to funds operating with large volumes, the futures market faces significant buying power that puts futures contracts prices higher than the actual underlying asset. Such a market condition is called contango bleed when investors have to overpay for opening new positions on the market, which puts them at around a 20% annual loss.

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Former PayPal CEO’s Cryptocurrency Exchange Goes Live for Institutional Clients

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“Bullish” exchange backed by PayPal co-founder is set to launch for institutional investors.

The cryptocurrency exchange backed by Peter Thiel and Richard Li began operating for a batch of institutional investors on Tuesday. The start for institutional investors is only the first step before the full launch for private investors and traders.

The Bullish Exchange will offer Bitcoin, Ether and EOS tokens for trading against USD coins. With further development and expansion in the future, the exchange will broaden its digital assets offering for both institutional and retail investors.

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Exchange founders

Among the exchange’s first clients are firms like Virtu Financial (non-U.S. affiliate) and Hong Kong-based crypto finance firm Amber Group. The first company is an electronic market-making firm that is based in New York.

The new exchange, which is also backed by hedge fund managers Alan Howard and Louis Bacon, was established earlier in 2021. The exchange has numerous distinctive features that come from the world of decentralized finance, including automated market making, lending tools and portfolio management mechanisms that will help traders to properly handle their funds.

The chairman of Bullish exchange presented his product like a tool designed for investors who are looking for secure and efficient exposure to the digital assets market on a platform that will ensure funds safety from both the technical and legal sides.

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The exchange will initially use its own assets to add more liquidity to pools that would be used by automated lending and market-making mechanisms. The backend of Bullish exchange is powered by EOSIO—open-source blockchain software developed by Block.one.

Plans for the future

Bullish exchange is planning to further broaden its offering by going public on the New York Stock Exchange by merging with SPAC company Far Peak Acquisition Crop. The transaction between the two companies will set the exchange’s value at approximately $9 billion.

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