This week, Bitcoin Cash and Bitcoin SV have been halved successively. However, the price trend after the halving is not ideal. What does this mean for the halving of Bitcoin blockchain rewards one month later?
Macro situation and crypto market
The global new crown epidemic is still severe this week. As of press time, the number of confirmed cases of new coronary pneumonia has exceeded 1.75 million, the United States has more than 500,000 cases, and Spain, Italy, France and Germany are closely followed by more than 100,000 confirmed cases.
However, as the Fed launched a US $ 2.3 trillion credit plan to support the economy, OPEC and the G20 Group held a meeting to discuss strategies to stabilize the market, and the market responded positively. This week the Dow Jones index rose 12.6%, the Nasdaq index rose 10.6%, the best performance since 2009, the S & P 500 index rose 12.1%, the largest weekly increase since 1974.
JP Morgan CEO Jamie Dimon said in a shareholder speech released this week that he expects a "serious recession" in the US economy. He mentioned that in the worst case, the economic downturn will continue into the second half of this year. In this environment, the unemployment rate will soar to 14%.
The Bank for International Settlements said in a report that the pandemic of the New Crown Outbreak may change the public ’s payment habits. One possible result is that “flexible and easy-to-access central bank payment infrastructure may emerge, for example, for individuals. Of Central Bank Digital Currency (CBDC). "
In the cryptocurrency market, the highest-value bitcoin failed to hold this resistance level on Friday after breaking through $ 7,000 at the beginning of the week, and then fell back below $ 7,000. Bitcoin's two most important forks, Bitcoin Cash and Bitcoin SV, have reached the block height of the block reward halving on Wednesday and Friday, and the halving has been completed. However, after the halving, the price shows no signs of rising. With the withdrawal of some miners, the hash rate of the network has dropped, which has also raised concerns about the reduction in network security.
In fact, the halving of Litecoin block rewards last year was considered a preview of the halving of Bitcoin block rewards this year. However, from the trend of more than half a year later, the price has not risen sharply due to changes in supply and demand.
However, whether it is Litecoin, Bitcoin Cash, or Bitcoin SV, its influence in the crypto market cannot be compared with Bitcoin. The survey shows that more than half of crypto miners still believe that Bitcoin will halve the block reward Usher in price increases. Some in the industry believe that this will also drive up the prices of other cryptocurrencies such as Bitcoin Cash and Bitcoin SV.
The cryptocurrency exchange Gemini announced this week that it will support the BAT token of the Brave browser on April 24. BAT will become the sixth digital asset on the Gemini platform after BTC, ETH, BCH, LTC and Zcash.
Cryptocurrency exchange Bitfinex announced its involvement in the pledge field this week, saying that users depositing and holding equity proof tokens on the exchange can earn 10% annual returns. Paolo Ardoino, Bitfinex's CTO, said, "We will support EOS, V.Systems and Cosmos (ATOM) tokens at launch, and Tezos (XTZ) will support it in May."
The peer-to-peer trading platform Paxful now allows users to trade physical gold using Bitcoin. Paxful CEO Ray Youssef said that due to the economic downturn caused by the new crown epidemic, people are still more inclined to use gold as a safe investment, and there has been a shortage of supply.
Fidelity Digital Assets has expanded its trading platform to include cryptocurrency exchange ErisX. A Fidelity spokesperson said in an email, "ErisX is the first exchange for Fidelity Digital Assets." ErisX said it is still in other integrations with large brokers, including Wedbush Securities and TDAmeritrade.
Cryptocurrency market maker B2C2 has acquired equity in the institutional bitcoin exchange LGO. The French-based LGO exchange said this week that the partnership has been in existence for several months.
Regulation and safety
American law firm Robbins Geller Rudman & Dowd LLP announced in a statement this week that the deadline for selecting the main plaintiff in the Jianan Technology Class Action is May 4, 2020. Prior to this, Jianan ’s shareholders had to decide who would represent their interests in the case.
The Bank of England (BoE) is open to the possibility that private cryptocurrencies may play a role in the future of the currency. In a webinar held this week, Bank of England analyst Ben Dyson, who is working on the Bank of England's digital currency plan, said that private companies are likely to play a greater role in currency issuance and distribution. Dyson said that although they may bring new risks to the currency system, if private currency can really work, it can work with any future central bank digital currency plan.
Cryptopia, the hacked cryptocurrency exchange, notified its users this week that the New Zealand High Court has issued a judgment on the status of its stolen assets. The exchange shared 74 pages of court documents detailing the verdict. It said, "Judge Gendall has ruled that the cryptocurrency is property, the account holder ’s cryptocurrency is held by multiple trusts, and different crypto asset types are stored in groups. This means that the cryptocurrency is beneficially owned by the account holder, Not corporate assets. "Therefore, account holders within each specific group are considered to be the co-beneficiaries of the same trust. Regarding whether the encrypted assets comply with New Zealand ’s trust law, the judge firmly believes that the encrypted currency is “an intangible personal property, which is obviously an identifiable value.”
London-based Travelex has paid hackers nearly $ 2.3 million in Bitcoin this January. The British company was infiltrated by cybercriminal malware on New Year ’s Eve in 2020 and demanded a ransom. Travelex is one of the world's leading exchange companies, providing foreign exchange services at airports and tourist destinations around the world.
Mergers and acquisitions
Mining giant Janan released this week its first unaudited earnings report since it went public in the US in November last year. The report shows that in 2019, the net loss was 148.6 million US dollars, in the fourth quarter of 2019 alone, the net loss was 114.7 million US dollars, and last year's revenue was 204.3 million US dollars. The report also shows that the computing power it sold totaled 10.5 EH / s, which accounted for about 20% of the increase in computing power of the Bitcoin network last year. Since the US $ 90 million IPO, its share price has been in a downward trend and is currently about US $ 3.5 per share, which is 61% lower than the issue price.
Neo Foundation (NF) officially released its financial report for fiscal year 2019. NF reached its progress on key components such as NeoFS, NeoID, and local oracle networks, and emphasized the growing number of gaming and DeFi use cases in the Neo ecosystem. Looking ahead, NF stated that it will commit itself to maintaining the pace of development in 2019 and outlined its main goals for 2020. These goals include promoting a smooth transition from Neo2 to Neo3 for ecosystem participants, continuous improvement of Neo developer experience, and establishing governance mechanisms that incentivize community participation and maintain the network. The Neo Foundation reports that the total expenditure in various fields within the Neo ecosystem in 2019 is 1,760,015 NEO.
Cryptocommercial bank Galaxy Digital disclosed its financial position for the fourth quarter of 2019 in this week's earnings conference call. Galaxy Digita disclosed a net loss of US $ 32.9 million in the fourth quarter of 2019.
Clearpool Group, an electronic trading solution provider and independent agency broker-dealer, announced this week that the company has now been acquired by BMO Financial Group. According to the company's statement, the completion of the acquisition transaction will accelerate the development of its electronic transaction solution, and it did not disclose the terms of the acquisition amount. After the acquisition, Clearpool will serve as an independent brand under the BMO Financial Group.
SoFi, a personal finance startup, agreed to acquire Galileo, a payment software company, for $ 1.2 billion. The CEOs of both companies said that cash plus stock trading will help the two companies launch new products, expand internationally, and take advantage of consumers' opportunities to switch to digital finance. SoFi's latest valuation is $ 4.8 billion.
Crypto hedge fund Three Arrows Capital has invested in BlockFi, which bought BlockFi shares from Able Partners. BlockFi said Three Arrows Capital has been its client for nearly a year and has now become its investor through secondary market transactions. Su Zhu, co-founder of Three Arrows Capital, said, "BlockFi is growing at an alarming rate, and we look forward to helping drive the company forward in the global market."
After failing to complete the Series B financing for many years, the enterprise blockchain company Factom, Inc. reduced its number of employees from 10 to 2. Jay Smith, Factom's chief operating officer, said the company has not gone bankrupt. The company's main investor, FastForward Innovations, has always asked Factom to enter the bankruptcy process. In addition to Smith, the company's other employee is CEO Paul Snow.
VoIP pioneer (VoIP) pioneer and Vonage co-founder Jeff Pulver announced on Monday the launch of a decentralized social application Debrief. According to Cointelegraph, the app claims to provide "the most secure end-to-end commercial communication network."
The Algorand Foundation officially announced this week that all token assets including Algo on the Algorand chain can be fully compatible with the Ledger Nano S and Nano X hardware wallets through the Algorand mobile wallet. In the future, any token assets issued on the Algorand chain will also be automatically supported by Ledger Nano X and Nano S, which provides additional security for developers and asset holders.
Some of Chicago's most experienced trading companies are joining forces to promote the development of decentralized finance (DeFi). TD Ameritrade, Cumberland, CMT Digital, DV Trading and Jump Trading, and venture capital firms Volt Capital and DeFi startup Compound announced on Wednesday that they joined the Chicago DeFi Alliance (CDA). This alliance will focus on providing consulting services for cryptocurrency startups.
Some Swiss cryptocurrency companies have launched the one-to-one Bitcoin token "tzBTC" on the Tezos blockchain. Lucas Betschart, chairman of the Swiss Bitcoin Association, told TheBlock, "Our goal of using tzTBC is to make Bitcoin easier to use and flexible."
The closed-end fund 3iQ, which aims to provide investors with regulated bitcoin investment, has been listed on the Toronto Stock Exchange (TSX). The fund operates in the same way as an exchange-traded product (ETP): investors buy the fund and bear the risk of the underlying asset price changing over time. It uses an index feed jointly developed by VanEck Europe subsidiary MV Index Solutions (MVIS) and cryptocurrency market data provider CryptoCompare to track Bitcoin prices.
Blockchain analysis company Chainalysis has launched a cooperation plan with major global infrastructure providers. Chainalysis has cooperated with many service-oriented and technology-oriented partners to strengthen its transaction monitoring. These partners include providers of compliance software, core banking infrastructure, and cryptocurrency wallets. The company said it will release a complete list of partners soon. Chainalysis was established in 2014 to provide compliance and investigation software for governments, banks and crypto companies to understand regulatory requirements and track the flow of funds.
Reddit, the most popular social news and online content aggregator, launched community points in the form of Ethereum ERC-20 tokens. Users can earn community points by posting articles and comments on Reddit. In the user's wallet, points are visible to everyone on Reddit, but only its owner can access it. Reddit community points will become an indicator to measure user reputation and their contribution to the community.
Mobile phone manufacturer HTC announced that it has cooperated with ASIC chip design company Midas Labs, and users can directly mine the privacy coin Monero (XMR) through its EXODUS 1S blockchain smartphone.
South Korea's largest cryptocurrency project "ICON (ICX)" officially released the Loop Fault Tolerance 2.0 (LFT2) consensus algorithm to improve the performance of the blockchain. Founded in August 2017, ICON is the largest and most famous cryptocurrency project in South Korea. The company aims to build a hybrid blockchain network that connects autonomous online communities with real-world private companies.
By Liang CHE
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