Play & Earn: the Best GameFi Tokens that are Worth to Know

During the pandemic and global lockdown, the popularity of computer games increased significantly, fostering the development of the GameFi technology sector that combines entertainment with real tools for earning money. Applying blockchain solutions allows players to earn tokens for completing tasks and use them to buy artifacts, pump a hero, exchange them for other cryptocurrencies or for fiat money.

Earnings in games can be really effective, considering the value of some tokens reaches $1000. We have compiled the top GameFi tokens that are worth knowing in 2021-2022.

SAND

SAND is a utility token of The Sandbox gaming ecosystem. In early 2020, the company launched its meta-universe, where users can buy virtual lands, create their own neighborhoods, open stores or entire factories, purchase clothing and accessories for their avatars. Sand tokens act as a payment instrument for this virtual world and are currently traded on Crypto.com, Digifinex, Binance, Uniswap and Gate.io platforms. The first token buyers were CryptoKitties, My Crypto Heroes, Old Skull Games and Dapp.com.

In addition, token holders will be able to participate in the platform management and vote for decision making that concerns the technical development of the meta-universe, other blockchains integration, and much more.

True Flip Token (TFL)

Native token of the international iGaming holding True Group covers the full vertical of the structure from game development to operating brands on its own platform. At the same time, their main brand True Flip with a native TFL token won the main Askgamblers Awards in the Best Casino 2020 nomination.

It was recently reported that the company stood as a headline sponsor of the long-awaited event of the year iGaming NEXT: Valletta ’21, where the token update and its new strategy has already been discussed, shifting the focus to the GameFi industry. So far, representatives of True Group have not confirmed or denied this information. True Group announced ambitious development plans of tokenomics for its holders community in September , highlighting TFL as a separate segment.

Waiting for news, holders continue to accumulate True Flip tokens and do not hurry to sell them on exchanges. Today coins are available for sale and purchase on KickEx cryptocurrency exchange. In the near future, tokens may appear on other CEX and DEX.

AXS (Axie İnfinity)

Blockchain game Axie İnfinity was the breakthrough of the year and got ahead of the most popular blockchain platform Ethereum in terms of revenue. In August 2021, Axie Infinity commissions exceeded $319 million, 3.5 times more than the Ethereum blockchain. The token is used not only to pay game fees and purchase artifacts for game characters, but also as a trading tool. In August, AXİE token trading volume exceeded $1.1 billion.

The project creation was supported by many well-known companies, including Binance and Samsung, and game animals Axie, living in their meta-universe, are NFT tokens that can be sold on marketplaces. Axie cards can be purchased at OpenSea marketplace.

You can buy company tokens through Crypto.com, Digifinex, Binance, FTX, TokoCrypto, Coinbase.

MANA (Decentraland)

Another blockchain game set in the virtual Decentraland universe. Players can create virtual heroes, buy land or buildings, produce and sell goods, offer real services such as foreign language tutoring or virtual guitar training. You can pay for purchases with MANA tokens – the internal virtual currency of the meta-universe. A lesson with an English teacher will cost users 5000 MANA and buying new clothes for an avatar ranges from 50 to 300 MANA.

The token has been recognized as a leader in the GameFi market and is actively used in cryptocurrency trading. The maximum token price $1.46 was set in May this year after the company announced a virtual casino initiation in partnership with Atari. But after a large-scale market correction, it fell to $0.46 apiece.

MANA token is listed on Gate.io, Crypto.com and Binance.

Enjin Coin (ENJ)

ENJ is a native token of the Enjin blockchain platform, its solutions are used to develop computer games for the GameFi sector. The coins were launched back in 2019 and immediately caused a resonance in the market. Over the next year, ENJ token was recognized several times as the most profitable or credited to the outsiders, since its value constantly varied: from the top $3.27 to the bottom $0.9. ENJ is used to pay for platform services, as well as to buy NFT tokens on the Enjin NFT Marketplace platform. Tokens are listed on Binance, Coinbase, Huobi Global.

Conclusion

The GameFi field is rapidly evolving, creating new types of assets that can be used both inside the gaming platform and as an investment and trading tool. Today, GameFi tokens are capable of generating serious income and having coins allows users to take part in the platform management and to influence the company development. The number of GameFi token holders is constantly increasing and the market capitalization is growing. Next year, the GameFi sector may exceed $200 billion.

Huobi Group Vows to ‘Save the Ocean’ Ahead of Blockchain Summit

Huobi Group, a leading blockchain company, recently sponsored crypto experts to attend the Oceans 4.4 retreat held in the British Virgin Islands.

The 5-day retreat took place from October 9-14th. It was hosted by renowned entrepreneur Sir Richard Branson at his home on Necker Island. The event aimed to raise awareness of the water crisis affecting millions of people across the world.

During the retreat, founders, innovators and influential minds presented various solutions that can help conserve the ocean and combat climate change.

The Huobi representatives contributed to the discussion on how to tackle various issues contributing to environmental degradation. They also promised that Huobi would make climate commitments aimed at saving the ocean.

Commenting about the event, Jeff Mei, the Director of Global Strategy at Huobi Group, reiterated his company’s commitment towards improving society:

“As we continue to grow our business presence around the world, we are taking an increasing interest in the communities we operate in. Furthering social impact initiatives will be one of Huobi’s key goals going forward, and we will look to work with like-minded stakeholders that share our values.”

Huobi Group’s Blockchain Summit 2021

The Oceans retreat was a precursor to the upcoming Huobi Summit 2021, which will commemorate the blockchain company’s 8th founding anniversary.

The summit, set to take place on November 8, will host an online industry forum to discuss cutting-edge crypto and blockchain projects. Huobi Group has invited government leaders such as former Federal Reserve head Alan Greenspan and numerous business founders to participate in the event.

Huobi has been at the forefront of creating a more sustainable world. The Seychelles-based blockchain startup is involved in various initiatives geared toward fostering global blockchain development for the benefit of the society and global economy.

Contributing to a Brighter Future

Huobi Group leverages its resources and influence to create a fair and equitable future for all. Through its philanthropic arm, Huobi Charity Limited, the company taps the blockchain and cryptocurrency to tackle societal issues like poverty, healthcare, education, and more.

Huobi is committed to applying blockchain tech towards environmental development and bringing positive change to the world through innovation and social initiatives. Such efforts could help foster blockchain and crypto adoption by proving that the technologies can be a force of good for the environment.

More crypto industry participants need to join efforts to integrate environmental protection measures to silence critics who oppose the emerging sector.

Is Social Trading the Key to Faster Crypto Adoption?

They often look to crypto influencers on these sites to acquire strategies that can help them boost their profits from trading.

The increasing interest in crypto, coupled with the explosion of social media, has led to a trading strategy called ‘social trading’. Here is a look at what this exciting aspect of the crypto space entails and whether it can help speed up widespread cryptocurrency adoption.

What is Crypto Social Trading?

Social trading allows crypto users to connect with other traders on a decentralized network. Newbies can view and monitor the investment strategies of more experienced traders and copy their actions to improve their chances of success in the market.

Social trading platforms offer users a venue to share their market analysis, investment strategies, predictions, and much more. They offer an excellent starting point to successful trading for new entrants in the often unpredictable crypto markets.

Why is Crypto Social Trading Important?

Unfortunately, most newbie traders often lose money due to a lack of basic technical analytics skills and a tendency to fall for market speculation. Social trading helps these inexperienced investors reduce the risks inherent in the capricious crypto market by offering them access to expert traders’ winning tactics.

Crypto investors on social trading networks can also interact with their favourite professionals and influencers, ask questions, and learn how to better their trading approaches.

Top platforms often include leaderboards that rank different pro traders based on various metrics, including a win to loss ratio, margin allocation, success, risk, etc. Each pro’s trading history and statistics are displayed transparently on the platform, allowing amateur traders to choose the best trades from top strategy managers.

Social trading platforms such as KuCoin S are stepping up to introduce brand new social trading functions to help simplify crypto trading for starters. The KuCoin S app, developed by KuCoin exchange, features an enhanced UI tailored to the tastes of generation Z investors.

How Novice Traders Earn via Copy Trading

Copy trading is an integral part of social trading that allows beginners in the digital assets market to boost their winning streaks. The strategy also gives pro traders an excellent opportunity to make extra money by sharing their expertise with the crypto trading community.

Top social trading networks open up opportunities for both pros and novice traders to cash in on trades by facilitating one-on-one interactions between users. Essentially, pros can leverage copy trading to monetize their strategies and profit from novice traders who duplicate their tactics to maximize their returns.

Some social trading networks offer beginners the option to invest in an expert trader with a proven track record of earning returns. They entrust their funds to the pro and get a redeemable token equal in value to the crypto they have invested.

The professional trader gets to work leveraging his experience in the market to invest the actual funds for a specified time while the user holds on to the token.

Upon expiration of the trading period, the novice user can submit the token to the smart contract and receive their crypto investment back, along with a share of the profits generated by the professional trader.

Can Social Trading Foster Crypto Adoption?

Many individuals are interested in crypto investments but lack time to analyze the complex trends in crypto markets. Copy-trading strategies allow these users to earn profits by following the lead of experienced investors who have the time and resources to monitor and react to the markets.

Moreover, social trading shortens the steep learning curve for novice traders by allowing them to mimic the strategies of expert investors. It also creates a hub for investment insights where newbie investors can learn about the best crypto gems, trending topics, the latest trading tactics, and much more.

Social trading networks also make the trading experience more immersive and fun by facilitating real-time interaction among users. Investors worldwide can get together on these platforms to discuss their trading experiences, predictions, market insights, etc.

Therefore, social trading allows the masses to participate in the crypto sector by saving amateur investors the time and effort needed to successfully understand the markets and trade.

Social trading platforms offer multiple social trading features aimed at helping traders make better investment decisions. KuCoin S, for instance, offers users various tools to help simplify trades and maximize returns, helping to bring crypto to the masses.

Features such as copy trading, portfolio check and an easy buy function allow users to purchase tokens quickly, manage their holdings and browse the most successful trading strategies on the platform.

Final Thoughts

The main aim of crypto social trading is to connect newbie traders with top professionals. The approach lowers the barrier to entry in the crypto space by allowing less-experienced investors to succeed by following top traders’ time-tested strategies.

Social trading networks such as Kucoin open up the cryptocurrency sector to novice and expert traders by simplifying the trading experience and allowing investors to interact and learn from each other. They also enable traders to better their skills by interacting with community leaders and other successful investors on the network.

In conclusion, social trading holds the potential to speed up the widespread adoption of digital currencies. The growing trend is equipping crypto starters with the tools to book easy profits with minimal effort and experience.

Why Musical Artists are Choosing the NFT Experience

However, the undying need to serve people who are loyal to them comes at a heart-wrenching price; frequent issues regarding royalties and piracy. According to a recent report, the U.S. music economy counts over $10B of digital output loss to theft.

Many times, the artists get shortchanged for the hard work they put in composing music. Beneficiaries end up being other groups of people, such as music pirates. For musicians and other artists, the rise of Non-Fungible Tokens has been nothing but music to their ears.

Unique metadata and source codes mean that a piece of art is traceable to its legitimate owner, in this case, music. It is easier for the artist to trace how their music is used, with ownership rights ensuring they earn from them.

Several DeFi platforms have emerged, promising to overhaul the music industry using features that aid artists via NFTs. Musicians and producers have, in turn, been going the NFT way in droves. Read on to find out why and how the features improve musicians’ experiences.

Re-inventing the Music Industry

Much like the crypto world’s branding as a disruptive technology, NFTs are promising to overhaul the music industry in a major way. They come with several positive services, which streamlines the whole process of marketing one’s music. They include;

Secured Music Royalties

One of the primary challenges of any music artist out there is publishing their music. Yet, it is perhaps an essential step to any artist after the song has been composed. The process is not so straightforward, with the technical aspects of performance royalties being foreign to many artists.

To solve this issue, DeFi platforms offer partnerships with royalty owners all over the world. By issuing musicians with NFTs for their songs, ownership of music can be traced to its creator. It guarantees the rights to royalties of new songs and albums to the NFT creators or owners, guaranteeing them earnings.

A link Between Various Important Players in the Music Industry

Through such platforms, a writer can sign up with a publisher or producer and kickstart their career. It saves them the hustle of scouring all over for good producers.

On offers are opportunities to publishers since they get to connect with artists. Newbie publishers can also get to learn how to create a publishing entity.

A wealth of Information Availed

Musicians have increasingly grown interested in NFT platforms thanks to the important information, especially regarding royalties. In some music leaning NFT platforms, the data is even tailored to reflect region-specific performance royalties requirements. Specifics like the artist’s share of the royalties, the publisher’s share and how either can collect or access the shares.

Critical information about Record Producers is also made available on several of these platforms. For instance, artists can find the figure a specific record producer charges on average. The artist gets the information on making the payment, which may be as advances or royalties as determined by the producer’s experience, genre, the specific song or album etc. They also get to know just how involved the producer is in the production process.

Good and Secured Payment Opportunities

Artists should be able to enjoy outstanding opportunities to make earnings on their music. Therefore, it is imperative that they find a platform that secures their earnings while minimizing bitter losses from music piracy.

For starters, an artist may sell some or, at times, all of their music’s royalties to the platform. That is a good income-earning option.

There are several payment options available, tailored to suit clients’ preferences. One could settle on a flat fee option, pay by the hour agreement or receive income as per the number of recordings done by the artist.

The Types of NFTs to Expect on DeFi Music Platforms

To enable the re-invention of the music industry, there are different types of NFT tokens and features on such platforms. Each token is tailored to perform a specific role, working in different ways. The said tokens are;

Song-NFTs

The Song-NFTs are music catalogue-backed tokens. They are the primary enablers of royalty earnings for all artists subscribed to the platform.

They utilize the non-fungibility role of NFTs to tie the ownership of the backed music piece to the platform via such ownership. The rights to earning performance royalties to the backed music are therefore restricted to the platform.

Utility Token

Utility tokens are the most numerous digital assets on all DeFi platforms that support Song-NFTs. They also double as a platform’s native token.

Such coins play the basic role of enabling all processes within the platform. Utility tokens are integrated into the blockchain’s protocol, providing access to all the services offered by the NFT platform.

A Music NFT Marketplace

There are several NFT marketplaces for various artistic works, including music, dance choreography, paintings and art. Nonetheless, choosing the right kind of platform can be a headache for most, so an artist needs to take a step back and tread wisely.

Band Royalty is a good example of an NFT marketplace where artists can actually save themselves from the terrors that are digital theft. Users will have direct access to music royalties, stake their Band NFTs and access other DeFi services on the marketplace. All the while, they still get to enjoy listening to their favourite music. Users will be able to make music NFTs get ownership rights on songs on both the Ethereum and Polygon/Matic blockchains.

It is gearing up for a public launch, which should happen very soon. Currently, developers are proceeding with the final testing for the beta launch.

The Start of Better Things to Musicians

The NFT world is rapidly expanding and evolving, with Game-NFTs and Song-NFTs being some of the outcomes. Song-NFTs are different from the average NFTs that have been fuelling the NFT craze. Most of their cousins are either backed by art pieces or, many times, nothing at all.

Song-NFTs, on the other hand, act as the digital representation of the music people listen to. Such platforms offer a host of beneficial services to artists and music producers alike. The promise of a better and fair tomorrow for musicians could soon be a reality.

How to Use Cryptocurrencies in Everyday Life

In addition, more than 18,000 worldwide registered organizations accept cryptocurrency as a payment. According to TripleA experts, the number of crypto wallet holders will increase to 300 million by 2030 and the number of businesses supporting crypto payments will increase to 25 thousand. How the cryptocurrency sector will evolve in the future and whether the main digital currencies will be a full-fledged payment instrument will be discussed below.

Big business is ready to accept crypto payments

So far, more than 18 thousand companies around the world are ready to accept payments in digital currencies. And these are not online stores with the traffic up to 10 thousand people a month, but large corporations with their products and services across the globe. Companies such as Booking, Coca-Cola, PayPal, KFC, BMW and many others are ready to accept payments in bitcoins now. And every year the adoption of digital currencies will only increase.

According to TripleA experts, retail and e-commerce will be the main sectors accepting cryptocurrency as a payment instrument. This market accounts for almost 40% of all crypto payments in the world. The sector of premium goods (jewelry, yachts, planes, real estate), cross-border payments, also gaming and gambling circuits will take the lead as well.

“We see a gradual adoption of cryptocurrencies by retail users. And it’s a pattern! Besides, cryptocurrencies reduce costs when paying for goods in everyday life. The current goal is to create a unified technological system that will make it possible to use cryptocurrency anywhere without conversion and exchangers”, commented co-founder of MinePlex Alexander Mamasidikov.

It means that users have a real need now for services that allow converting fiat currencies into digital coins and vice versa. The demand for such solutions will only increase.

Paying with cryptocurrency is easier than it looks

Cryptocurrency payments are quite common all over the world. Some services, such as iVendPay, provide instant payments with coins from your crypto wallet. Other services use crypto-processing solutions or online banking tools that allow you to convert cryptocurrency into fiat money and only then send them to a seller account.

“We’re developing solutions to pay for goods and services in cryptocurrencies. It requires a MinePlex multicurrency wallet for not only securely store digital currencies, track purchasing capacity, but also make payment transactions in cryptocurrency directly, bypassing conversion to fiat. Our functionality will support 36 major fiat currencies, including US dollar, euro and our own liquid PLEX token”, says Alexander Mamasidikov.

The future integration of cryptocurrency

Shortly, cryptocurrency can be a full-fledged payment instrument. And in a few years we will be able to pay directly with Bitcoin or other coins in:

  • cafes, restaurants, bars. Many similar establishments accept so far crypto payments in Bitcoin, ETH or DASH tokens;
  • online stores, marketplaces;
  • travel services, such Booking and air, railway and other tickets purchase;
  • clothing, footwear, jewelry stores;
  • barber shops and beauty salons;

Most of the retail business will actively implement crypto payments over time and use them alongside traditional payment methods.

Conclusion

Cryptocurrency adoption will accelerate within the next few years, leading to widespread digital coins as a payment instrument. That brings up a growing demand for crypto processing companies and crypto online banks services, which allow converting cryptocurrencies into fiat money. E-commerce sector will develop rapidly, where cryptocurrencies will act as a full-fledged payment unit and won’t require a conversion. The most popular crypto payment areas will be retail, gambling, gaming, as well as food and beauty.

Flare Finance Releases ExFi Platform on Songbird Network

It has emerged as an alternative to real-world banking, at least for some of the services offered by legacy finance institutions. However, there have been several instances of hacks on DeFi platforms with millions in TVL and in spite of being around for months. Can releasing an Experimental Finance (ExFi) platform be the solution to these recurring problems in the DeFi Space?

Flare Finance has revealed the Experimental Finance platform (ExFi) on the Songbird Network. The ExFi platform will act as a playground for the developers empowering them to test various modules and scenarios. While that may be the case, it seems unlikely that all of the products introduced on the ExFi platform will make it to the main network. Songbird is the Canary Network for flare and is expected to remain even after the launch of the main network.

The ExFi platform will aid in eliminating bugs, hacks, and any similar errors at this level and prevent them from reaching the main network. This will help in reducing the risks for the community and also help the users get acquainted with the platform. Just like Flare Network, Flare Finance will also take a dual-approach and deploy on both ExNet and MainNet.

ExFi Platform

The ExFi platform was launched on the Songbird network in three phases. The first phase was the minting phase which allowed users with $SGB to mint $CAND. The second phase was the liquidity phase where the holders of $SGB and $CAND could provide liquidity to FlareX liquidity pools. The last phase of the launch was the trading phase wherein FlareX was open for users to swap $SGB and $CAND.

Users should keep in mind that the ExFi platform is a semi-audited platform for both the developers and the community users. It enables both to test, learn, and gain experience in the decentralized finance space. Some of the risks involved with the use of ExFi include malicious hacks or denial of service, bugs, and liquidations due to high market volatility and low liquidity.

The participants of the ExFi platform will also be eligible for rewards from a reward pool of 1 million $YFLR. Yield farming participants staking in SGB and SGB/CAND farms will receive rewards from a pool of 650,000 $DFLR, while the remaining $350,000 will be allocated for the loan and stablecoins participants. All rewards are expected to be distributed over a period of 63 days.

Conclusion

The idea of ExFi could go a long way in helping better the adoption of DeFi among new crypto users. Flare Finance’s ExFi platform could be the start of a new strategy of launching an Experimental finance platform to eliminate bugs and hacks and then launching a battle-tested DeFi platform.

For a look at all of today’s economic events, check out our economic calendar.

Top 5 Crypto Exchanges By 24H Volume: Statista’s Research

High trading volumes are driven by more on-chain activity; they are a great predictor of the general interest in the crypto market and the growing interest in a particular exchange. The 24-hour volume highlights the total value of crypto traded in the past 24 hours and represents a perfect metric to show the liquidity of that specific exchange. The higher the volume, the more secure that environment is for investors.

As per September, 2021, Statista’s biggest crypto exchanges in the world by 24H volume were: Binance, OKEx, LocalTrade, Upbit, and Huobi Global, in that order.

Binance, the Chinese crypto giant, is leading the list, even despite its regulatory issues in the UK and the US. In the UK, the Financial Conduct Authority recently announced that the firm cannot conduct any “regulated activity”.

OKEx, Malta-based OKEx is in second place. With more than $8.54 billion being traded everyday, OKEx is an asset exchange focusing on derivatives trading. According to the company, “it provides a safe, reliable and stable environment for digital assets trading via web interface and mobile app by adopting GSLB, and distributed server clusters”. They strive to achieve something unique and vow to never stop innovating and improving on their customer experience.

Local Trade, Right after with $8.32 billion 24h volume, LocalTrade, a full-fledged CEX trading exchange and DeFi investment platform, closes to the top 3. LocalTrade has experienced an impressive growth in the last months -fostered by the new executive team-, that has seen the platform expand their offerings into the DeFi space and with the sale of their new token: the LTT. Their goal is to: “become the first platform that allows anybody, even with a fiat bank card and a small $10 check, to have seamless access to the most profitable DeFi & CeFi products.”

LocalTrade is interesting because of its DeFi expansion. This area of finance has been a hot topic in the recent months to become the latest trend in the crypto market. In fact, DeFi’s market capitalization has reached $74 billion as of this year, an increase of more than 400% since the beginning of the year. Likewise, investors are increasing their exposure into the market, which now accounts for $88 billion of cryptocurrency held in DeFi.

UPbit, in fourth place, is an exchange from South Korea, supporting +150 digital assets, with 24/7 real-time security monitoring for enhanced security. It was the first to register with South Korea’s Financial Intelligence Unit (FIU) before a September  2021 deadline.

Huobi Global, a world-leading virtual asset financial services group. According to their team: “The Huobi team is dedicated to providing safe, professional, trustworthy, and world class services to its global clients in an effort to create a client first culture”. They have offices in Singapore, the United States, Japan, Korea, Hong Kong.

All of these exchanges offer innovative solutions; each of them, however, has different functionalities. Your choice will depend on what you are looking for, primarily. Which exchange to choose is up to you, based on your goals and objectives. Decentralized exchanges have recently become an interesting trend. The most important advantage of DEX is that it is possible to trade DeFi assets here while there`s no secret that today DeFi is the most promising and rapidly developing section of the blockchain industry.

DEX is completely transparent, its work is regulated by smart contracts, and the technology on which DEX is based eliminates the risk of hacking and loss of participants’ funds, since all funds are stored exclusively in their wallets, while the platform only provides the infrastructure for exchange. However, one of the biggest problems of DEX exchanges is the lack of liquidity, because funds are provided exclusively by platform participants, and not by professional market makers.

Based on this, the best solution today seems to be the merger of the reliability and wide trading capabilities of the DEX platform with the infrastructure and wide trading volumes of a centralized trading platform. In any case, whatever platform you choose, please remember that only you are responsible for your trades, so always act carefully based on the market situation and only after fundamental analysis and careful study of the news background. Good luck with your trades!

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin’s Hash rates Spikes Even After China’s Bans Crypto

An important point to note is that BTC achieved the peak hash rate on the very same day that the price of BTC hit its ATH price of $64,805. Both milestones became a reality on the 14th of April, 2021.

Of even more significance is the timing of the recent recovery’s occurrence. It is happening during one of the most trying times for the coin and the blockchain world at large, many thanks to China. The world’s second-largest economy is rolling out a total ban on all cryptos.

China’s Significance to the Crypto World

China against cryptos could be the worst position the crypto world could have ever wished to find itself in. There are three key reasons why such a position can be devastating.

For starters, the country has the world’s largest population. China accounts for 18.7% of the global population, with this Chinese being among the world’s most rapidly expanding wealth-wise. Removing such a market is most certainly a huge blow to the crypto world.

Second, the country has been dominating the world’s Bitcoin mining capacity. It commands a significant amount of active Bitcoin miners. The mining power located in China currently is estimated to be around 46%.

Lastly, the Chinese government is dominated by the CCP. If significant government actions such as the great firewall give a pointer, no one can contest it in a court of law. Crypto firms are therefore left with one option only, obedience.

A Sign of Resilience

Despite China arguably being the most important country to Bitcoin before any ban began, the blockchain seems to have weathered the storm well. Shortly after the announcement, the prices of major cryptos plummeted, losing $150bn in hours.

Prices, however, regained almost immediately, taking just 3 days to trace some recovery. To add to that, Bitcoin posted an impressive hash rate hike within ten days of the ban. The crypto world is increasingly becoming more resilient.

Adapting fast

Perhaps a major reprieve to crypto enthusiasts is that the blockchain world is adapting fast. Such a strong bounce back in hash rate figures is only possible if the mining norms rapidly change with the situation.

Two key points show adaptability well. While the Chinese proportion of mining power is significant, it is a far cry from previous times. The country accounted for 75% of all Bitcoin mining power by September 2020, just before the bans. The current 46% is just about 60%of the peak figure, with miners moving to less hostile nations like neighbouring Kazakhstan.

In addition, 46% of the mining power is still close to half of all Bitcoin mining activity. Yet, the crypto’s performance is still very strong. It shows that even those staying put in China have rapidly adapted and operate fluidly regardless of the ban.

Why Hash Rate is So Vital

The hash rate is a direct indicator of how much computing power is used to mine a single unit of BTC. The mining process is essential for verifying a transaction done by the global network of miners using specialized computers called ASICs.

When mining a unit of Bitcoin, the difficulty level gives a good indicator of how many miners are currently active. The process of mining involves the ASICs making millions of hash guesses per second to solve the computational problem.

When many new miners join, the mining difficulty goes up. The reason is that miners now need to make more guessed per second to increase their chances of solving the problem. Such a scenario is what causes hash rate spikes.

The Going Hasn’t Been All Rosy

The resilience of the crypto sector and its adaptability is a strength that many communities desire. Bitcoin hash rate performance has, however, seen tough headwinds in 2021.

At the start of July, the bitcoin hash rate set a record that is not to be proud of. More than 54% of all mining computing power dropped off the blockchain network. Such a massive loss in hashtags made the network readjust its mining difficulty by around 28% lower.

Miners were the biggest gainers since solving the computational problem was made significantly easier. Once again, China was in the middle of the fray, having made crackdowns on crypto-related activities that forced almost all Chinese to shut operations. The time taken to complete a block increased significantly as a result, from 10 minutes to between 14-19 minutes.

Maturity in the Horizon

Previous years have shown that cryptocurrencies were a lot more susceptible to government actions and moves by whale investors. That is more evident because Elon Musk somehow ironically failed to boost the price of memecoins recently.

Had such a move by China occurred a year earlier, Bitcoin might have possibly collapsed. There’s hardly any clear evidence to show the other cryptos could have fared any better.

The fact that the industry has rebounded strongly shows resilience and adaptability. Both are good pointers to a gradually maturing industry.

Is ExFi a New Benchmark in the DeFi Space?

However, there have been several instances of hacks on DeFi platforms with millions in TVL and in spite of being around for months. Can releasing an Experimental Finance (ExFi) platform be the solution to these recurring problems in the DeFi Space?

Flare Finance has revealed the Experimental Finance platform (ExFi) on the Songbird Network. The ExFi platform will act as a playground for the developers empowering them to test various modules and scenarios. While that may be the case, it seems unlikely that all of the products introduced on the ExFi platform will make it to the main network. Songbird is the Canary Network for flare and is expected to remain even after the launch of the main network.

The ExFi platform will aid in eliminating bugs, hacks, and any similar errors at this level and prevent them from reaching the main network. This will help in reducing the risks for the community and also help the users get acquainted with the platform. Just like Flare Network, Flare Finance will also take a dual-approach and deploy on both ExNet and MainNet.

ExFi Platform

The ExFi platform was launched on the Songbird network in three phases. The first phase was the minting phase which allowed users with $SGB to mint $CAND. The second phase was the liquidity phase where the holders of $SGB and $CAND could provide liquidity to FlareX liquidity pools. The last phase of the launch was the trading phase wherein FlareX was open for users to swap $SGB and $CAND.

Users should keep in mind that the ExFi platform is a semi-audited platform for both the developers and the community users. It enables both to test, learn, and gain experience in the decentralized finance space. Some of the risks involved with the use of ExFi include malicious hacks or denial of service, bugs, and liquidations due to high market volatility and low liquidity.

The participants of the ExFi platform will also be eligible for rewards from a reward pool of 1 million $YFLR. Yield farming participants staking in SGB and SGB/CAND farms will receive rewards from a pool of 650,000 $DFLR, while the remaining $350,000 will be allocated for the loan and stablecoins participants. All rewards are expected to be distributed over a period of 63 days.

Conclusion

The idea of ExFi could go a long way in helping better the adoption of DeFi among new crypto users. Flare Finance’s ExFi platform could be the start of a new strategy of launching an Experimental finance platform to eliminate bugs and hacks and then launching a battle-tested DeFi platform. Users who would like to test the ExFi platform can head over to Flare Finance Twitter for more details.

Analysis and Benchmarking of Tokenization Platforms Neufund, Harbor, Binaryx and Tokensoft

Just a few years back, asset tokenization required deep knowledge of blockchain, coding and legal aspects of recording the issuance of equities. Now the procedure has been simplified thanks to the emergence of platforms for asset tokenization which have shouldered the biggest portion of obligations associated with the tokenization process – from token issuance to their record and listing on exchange.

In this article we run through the four frontmost platforms: Neufund, Harbor, Binaryx and Tokensoft. Let’s compare their capabilities and discover their differences.

Neufund Harbor Binaryx Tokensoft
Launch year 2016 2017 2019 2017
Location Berlin (Germany) San-Francisco (USA) Tallinn (Estonia) San-Francisco and New York (USA)
Target market Companies of any type Equities tokenization Small and middle businesses Projects of any type
Type of crowdsale ETO UAICO ITO STO, ICO
Type of platform Decentralized Partially decentralized Partially decentralized Partially decentralized
Blockchain Ethereum Ethereum Ethereum Ethereum, Stellar, Corda, Hyperledger.
KYC, AML + + + +

Neufund is the platform for tokenization of assets on Ethereum blockchain, intended to bring together the blockchain startups and venture capital. It enables conversion of any equities or financial instruments into tokens of any kind and facilitates their subsequent sale within the platform or on various exchanges. Neufund also offers legal and technical support of token sale.

The salient feature of the platform is the tokensale model called Equity Token Offering (ETO). In essence, it’s a hybrid investment model combining advantages of IPO, ICO and venture capital round. Registered companies undergo ETO, issuers are submitted to verification similar to an audit for IPO, and ETO-token holders have the same rights as owners of physical shares: rights to vote, fractional ownership, dividends (if applicable), transfer of ownership etc.

Harbor is another blockchain platform, designed for the launch of security tokens and their further licensing. Initially it was geared towards the real estate market, but in 2020 the platform was purchased by BitGo, and its focus shifted to providing assistance with  tokenization of existing shares.

Among the main characteristics of Harbor are the crowdsale model called Underlying Asset Initial Coin Offering (UAICO) and automation of most routine processes. UAICO is in fact ICO, with the only difference that raised funds are blocked inside a smart-contract to back up the price of issued cryptocurrency. The raised funds are distributed among the issuers of UAICO in stages; usually 50% is instantly earmarked for development fund and founder stock fund, the rest will have been unblocked incrementally over 1-3 years.

Binaryx  is a safe and easy-to-use cryptocurrency exchange with a personal module of social trading and in-house educational platform for the newcomers in the cryptocurrency world. In 2021 Binaryx announced the launch of asset tokenization platform, enabling small and middle businesses to attract investment to finance their projects all over the globe.

Key element of Binaryx is the combination of tokenization services with instruments allowing the exchange of various digital assets within a single platform. This significantly streamlines the process of attracting investors and empowers them to buy and sell tokenized assets much more easily. Whatsmore, Binaryx boasts an easy and user-friendly interface, accessible to even novice users.

Tokensoft is, perhaps, the most well-promoted platform for asset tokenization allowing for tokenization of real estate, company capital, loan funds, physical and non-physical assets. Tokensoft supports not only Ethereum, but Stellar, Corda and Hyperledger. The platform also offers a cryptocurrency wallet with cold storage of assets.

In comparison with other platforms, TokenSoft stands out for its wide opportunities of setting up personalization and crowdsale. We are talking about a more comprehensive configuration of issuance (tokenization) process, advanced token distribution, dividend payout, automatic reinvestment, digital asset storage and asset trading by means of issuance of tokens with open architecture.

For a look at all of today’s economic events, check out our economic calendar.

A Door To Decentralized Finance: What is LocalTrade’s DeFi Lab?

“DeFi does show the opportunity which blockchain offers to finance. We believe that one of the best differences against being dis-intermediated by DeFi would be mainstream finance grasping these opportunities,” mentioned the Bank of America in a recent report, adding that they see a true radical change to mainstream capital markets.

Initiatives and projects are thriving, offering more and more financial services in a decentralized way, with Decentralized Exchanges or DEXs, peer-to-peer lending, stablecoins, prediction markets, and yield farming being the most popular DeFi products. These products are normally offered through platforms that have support for Ethereum ERC20 or any other blockchain that enable smart contracts. They do not only remove middle-man issues but increase flexibility and bring breakthrough returns to the investors.

Companies are exploring DeFi from different perspectives and solutions. For example, Chainlink is one of the most well known decentralized oracle network. Their technology feeds real-world data to smart contracts on the blockchain and thus serves as a link between the unprecedented amount of information going back and forth between crypto Decentralized Applications or DApps.

Another project worth mentioning is the Decentralized Exchange Uniswap. One of the leading initiatives in the DEXs market, their solution employs an Automated Market Maker system (AMM) to ensure that there is sufficient liquidity for the ERC20 tokens traded on its site. Uniswap has attracted a huge user base as per its crypto-asset solutions, which provides extra security, control over private keys and low fees.

And yet, these two projects are focused on a niche target, still a long way from mass adoption. LocalTrade, one of the biggest crypto exchanges by 24h volume, is trying to bring together the traditional crypto market and all the opportunities that DeFi can offer.

LocalTrade’s multiple solutions, written down in their white paper and in the company’s road map, is precisely to tackle all those challenges and simplify, literally, the entry point of investors to the DeFi sphere.

They have set out on one mission: “to remove the investment barriers by creating a simple & customized investment tool with the best CeFi & DeFi products in one ecosystem.” Because, indeed, there are some challenges.

Tackling the DeFi challenges

There are several challenges to account for for newcomers. As with any software-based solution, DeFi services always come with security risks. In fact, smart contracts are the most considerable DeFi’s risk since an attacker may use smart contract weaknesses to steal user money.

DeFi solutions work in a regulatory grey zone. You can find anything from cash instruments to derivative assets in DeFi, but since they are blockchain-based, none of these tools are fully legal in most jurisdictions; this creates additional barriers to entry.

DeFi’s global adoption is being slowed by inadequate user interfaces, a lack of customer service, and insufficient data. A lack of simple-to-use and simple-to-understand DeFi apps fosters mistrust and reduces retail market players’ rapid adoption.

The Entry Point hub: LocalTrade’s DeFi Lab

DeFi initiatives face multiple challenges but none as important as answering the question: how to attract mainstream investors into the space? There are various solutions in the market, though it is worth mentioning LocalTrade’s DeFi Lab as a holistic hub from which to build an entire DeFi ecosystem.

This DeFi Lab is one of the company’s solutions to make it accessible for all retail investors. In fact, the company has developed the tool specifically to cater to the mainstream crowd, making it easier for them to enter the market. DeFi Lab represents a set of distinctive digital investment tools, categorized by their risk basis.

“Our mission is to provide easy access to the most profitable and secure DeFi & CeFi financial products using existing CEX payment infrastructure and capacity. Combining CEX expertise and DeFi opportunities, we will run a DeFi Lab for a new generation of independent crypto investors looking for trustworthy tools to help them leverage market opportunities within an exponentially growing industry,” commented the company.

The DeFi lab is just the beginning for LocalTrade. It is the hub where they will launch a series of in-house financial services that will be available according to their ambitious roadmap, including a NeoBroker Smart-fund, Yield Farming Protocol, support fo Token Sale/ ICO, a DeFi wallet linked to the CeFi part of the company, TT Staking & Farming, a Launchpad and plans for the creation of a LocalTrade DEX.

The operability between the CeFi part of the company and the DeFi ecosystem will be based on a solution the company calls the Bridge. This is a protocol that will effectively bridge the CeFi exchange and the DeFi products of the company hosted in the DeFi Lab. This protocol, decentralized and trustless, will enable exchange of assets between different blockchains.

“Powered by LocalTrade DEX pools, the bridge provides swift execution and offers an additional incentive mechanism for users. LocalTrade Bridge will be integrated into the LocalTrade DeFi wallet, enabling instant cross-chain swaps from within the mobile app, with no limits on exchange volume,” as the company describes it.

The buzz around DeFi is growing exponentially, and not only by hard-core crypto investors, but by media outlets and traditional banks alike. In fact, the Bank of America states that DeFi is “potentially more disruptive than Bitcoin”. As the second biggest bank in the US sees it, DeFi is a radical change to traditional capital markets that can eventually disrupt the current system. But there are still some costly entry points to solve, including a mix of distrust among investors and highly complex products that drag its mainstream adoption back.

Building trust and supporting investors entering the DeFi space is a challenge that crypto and blockchain-based companies are working hard to solve. From Uniswap and their leading DEX exchange, through decentralized oracle network Chainlink, to CeFi/DeFi initiative LocalTrade, there are many pioneers opening the door to decentralized finance.

Can a Cannabis Crowdgrowing Movement Challenge the Canadian “green rush”?

Canada was promising to be a leader in legislation, cultivation and patient care and access throughout the industry but bureaucracy, bad manufacturing practices and lack of care have made Canada an unwilling example on how not to implement a successful cannabis strategy.

Recreational cannabis has been legal and available since 2018, yet two years on billions have been wiped off the values of the top Cannabis companies and why is the Canadian cannabis community still sourcing their much loved bud from the black market?

Key factors in answering this lie within quality and cost. A high percentage of people asked both online and within Government available data suggest that the quality of legally available weed is not up to standard in comparison with the blackmarket. Add this to the fact that government cannabis is more expensive, it’s clear to see why the market and the money has stayed where it is respected.

This is not to place blame on those cultivators and sellors who are doing their best among unsupportive legislation, high taxes and harsh rules for distribution and advertising. Although that is no excuse for selling dry, mouldy, bug ridden buds; it is a reason to keep in mind.

The billions that have vanished like smoke in the wind solely comes down to overpromising, mismanagement and bad practices. Too many startups received funding or went public either too soon or with the wrong infrastructure and operations in place. The devastating returns of many products and batches originating from Canada over the past years continues. From failing GMP standards and benchmarks to tens of thousands of products being recalled due to being contaminated from yeast, mold or bacteria.

However, this is not to say that this is what will happen elsewhere. The EU and LATAM have varying strategies at various stages of legalisation in both recreational and medicinal markets. The medicinal sector is by far the most advanced with an agreed framework for standards and an infrastructure for distribution.

While researching I came across several successful ‘Cannabiz’ methods but one that garnered most attention was the ‘Crowdgrowing’ model. Seemingly introduced by the company JuicyFields, it’s a revolutionary way of bringing cultivation and investing in cannabis together, allowing entry points to those normally prohibited from doing so.

Crowdgrowing allows anyone from around the world to enter the medicinal marijuana market with just access to the Internet required. Via JuicyFields platform supporters, or e-growers as they are called, help fund licensed, legitimate, community based, medicinal cannabis cultivators and extractors. They then receive a share of the profits once the projects or the harvests are completed and the cultivators and extractors have sold their produce.

What struck me here was the simplicity of the model. Give money to those already in the system and are scalable, receive back once projects or contracts are completed.

The beauty of this is that although they are community or start up projects they are all licensed and conform to EU GMP and GCAP standards and the infrastructure to support them.

JuicyFields applies strict quality standards for cultivating only medicinal cannabis at the licenced greenhouses around the world and by providing users of the platform the benefit after the plants are harvested and sold.

With headquarters in Europe and partners’ facilities in countries with cannabis-friendly legislation, JuicyFields has expanded vastly over 12 months by partnering with more strategic companies and with agricultural, legal, sales and scientific experts in all spheres.

Partnering agreements rather than simple acquisition has led to JuicyField’s operations to cover more than 150,000 sqm of land with minimal expense to the company. Marijuana harvested totaled in excess of 37 tonnes of medicinal marijuana in the first quarters of 2021 alone, with them stating more growth to come continuously.

According to founder and CEO, Alan Ganse, the growth has only just begun and the company’s “major goal is to be listed in the TOP 5 cannabis producers by 2025 along with such giants as Curaleaf, Trulieve Cannabis, Canopy Growth and Green Thumb Industry. We aim to produce not less than 379 tonnes of cannabis and become the number one brand among psychoactive medical and recreational cannabis products.”

A bold statement to be sure, but with their ever increasing number of users and e-growers and the content produced to keep in touch with their community it would be hard not to be enthusiastic regarding this stated growth. When we compare this model to that of Canada’s recreational model there are striking differences.

As of today, the Canadian market is saturated with low prices and poor quality produced bud, a large part of which is being pushed onto patients.

A flood of licenses issued by the government has opened the doors for entrepreneurs, cultivators and patients and yet, left them without quality standards, regulations and audit control. Even the overly regulated medicinal market is suffering with rejections of products and closures of facilities have been reported all over. In 2018, 129 medical cannabis sales and cultivation licenses were given out by Health Canada versus 540 licenses issued in 2020 and yet the black market prevails.

The black market understands their industry, they have been at the forefront for years and with these years comes experience in many forms from cultivation to market desires and needs.

What the legitimate market failed to account for is the value of experience and knowledge of both the product and the market. Most growers know about the reality and pitfalls of drying, curing and storage, avoiding loss through mold and bugs and the hundreds of other factors affecting a good crop. Most dealers know the clients wants and needs and trends and adhere to them. All of them were very much aware that someone or some product that was equal or better was waiting on the sidelines for the chance to take their slice of the market.

Quite simply the legitimate market has years of experience and knowledge to catch up on, the intimate details of cultivating, distributing and understanding your market do not come overnight with theory and statistics, they come from relationships, partnerships and real world experience.

Assessing what has just been uncovered above it is clear to see that the success here not only lies in having a unique and sturdy business model but the fact that companies like JuicyFields, whether knowingly or not, are building the bridges between the black market and the legitimate one, connecting people, something that’s safe to say that Canada has neglected and is now uncomfortably and anxiously coming down from its high.

For a look at all of today’s economic events, check out our economic calendar.

What Happened to Akon’s City Developments

At the 2018 Cannes Lion Festival, Akon stated that his cryptocurrency, Akoin, would bring freedom back to Africa. In a way, it brings financial security decentralization away from governments. However, residents did not receive his vision with open arms, and a gap remains in absolute crypto adoption in Africa.

The Akon city is projected to hail in the Senegal mainland and not an autonomous island. However, that was a significant concern due to the centralized nature of the Senegalese government. Akoin crypto would have to adhere to state laws.

The Akoin Ecosystem

In the wake of an economic crisis in Senegal, Akon breeds an alternative. The proposed Akon city would help deal with mass protests and poverty. Consequently, the $6 Billion project’s success would initiate a sister project in Uganda.

Akon’s ecosystem is not a utility token but an entrepreneurs hub across Senegal. Further, it works with a decentralized exchange and a wallet that facilitates transactions among users. It enables transactions between major crypto coins without the limitations of traditional finance.

Akoin can be purchased on designated online exchanges using fiat currencies, Bitcoin, ethereum and Stellar. Additionally, a user can buy with credit or debit cards. Akon’s main aim is reducing paperwork and procedures for entrepreneurs and small businesses.

Akoin gives African entrepreneurs a chance to compete in international economies. With Akoin token as a medium of exchange for gig economies, health and financial sectors, and governance, among others, lead to a healthy African economy.

The goal and mission could become a reality using any other crypto coin. However, the music mogul stated that Akon is a means of transaction with more prominent brands internationally. As impressive as that is, it faces challenges with government regulations in Senegal, among other African nations.

Challenges Faced By Akon

French Speaking nations in Africa, among them Senegal, use CFA Franc. Franc currency is regulated and issued by BCEAO central bank based in Dakar. The institution warned of the dangers of adopting cryptocurrency and termed it illegal. Moreover, central banks operating in the region are in agreement on the matter.

On a global scale, they warned investors using cryptocurrency and peer-to-peer platforms of “unsafe investments”. From now on, Akon relies on prepaid mobile network vendors to render services to the unbanked population. However, that heavily relies on cooperation from telecommunication companies.

Governments regulate most telecommunication entities in Africa. Consequently, that proves a problem to Akon adoption and success. If mobile firms choose to go on and support crypto, they risk government sanctions. The only legal tender available for Akon in Senegal is CFA Franc.

Many African countries have expressed Scepticism toward cryptocurrency. Additionally, some nations like Zimbabwe have prohibited banks from processing virtual currency transactions. Also, other nations like South Africa are looking for ways to tax digital currencies.

Cryptocurrency Trend in Africa

Akon foundation works to gain partnerships with crypto companies operating in Africa. Akon’s target revolves around firms, foundations, and countries willing to adopt crypto and integrate it into their economies. As established, most companies are eager to venture into a blockchain-based economy. However, their main concern lies with central regulators.

Nigeria, the leading economic giant in Africa, comes third globally for the crypto trade. Its massive business provides hope for the rest of the continent on aspects of crypto investments. However, in February, its Central bank’s unexpected ban on crypto exchanges sent harmful waves across the continent.

In the future, Akon will partner with Mwale Medical and Technology City in Kenya. The $2 billion hubs have over 2000 merchants and 35,000 residents. The pilot project phase in Kenya proceeds without a glitch or government interference. More crypto enthusiasts believe that in a matter of time, governments will yield to cryptocurrency.

Akon solution in Africa

Violent protest and a poor economy has rendered Senegal and mostly its youths jobless. Akon city offers job opportunities as it ventures into real estate. Following the housing problem in Senegal, the project solves house shortages on a national and international level.

The lighting project in Africa pioneered by Akon serves as grounds of consideration for Akon city. Since its launch in 2014, the project has brought solar power to more than 18 countries across Africa. After securing $4 billion from investors, Akon sets to launch developmental stages.

Akon’s Current Situation

The 1st phase of Akon City expects to be complete by December 2023. Full coverage would include Hospitals, malls, residences, schools, police stations and a solar power plant. The 2nd phase is expected to run from 2024 to 2029. Akon City, located two hour’s drive from Dakar and south of Diagne International Airport.

While certain government officials praise Akon city, it has received Scepticism from natives. Some doubt its legitimacy given its decade of poverty for its 15.4 million residents. The plan for the futuristic city is yet to kick start in Senegal.

However, the Minister for Urban Development in Uganda has agreed to offer government land for ‘Akon City` development. They term it a “satellite city”, a copy of the plan already laid out for Senegal.

Akon plans on building a real-life Wakanda version in Senegal. Due to the amount of infrastructure required, the city would not be complete until 2036. Opposition leaders from Uganda claimed it’s a “public secret” that Akon City would never exist.

Additionally, they urged the government to stop giving “sweetheart deals” to Celebrities and wealthy investors. Akon City is yet to become what many aspired it to be, and all eyes are on Senegal’s establishment of real-life Wakanda.

Tether Settles a $1 Trillion Lawsuit Regarding Manipulation

The U.S District Judge Katherine Polk Failla, who was in charge of the case, ruled in their favour. She dismissed half the claims that the plaintiffs presented against the defendants. The remaining claims, Tether and Bitfinex, described them as “meritless.” Hence, they are not willing to settle with them.

The Market Manipulation Saga

The plaintiffs who presented the case to the court said that the accused were deceptive, market manipulative, and anti-competitive. As a result, they claimed to have lost money. In over five years, Tether issued unbacked USDT tokens. Bitfinex would later purchase cryptocurrencies on the open market to increase the price during market plunges.

According to the complaint, this caused the total market capitalization of cryptocurrencies to skyrocket to $795 billion in late 2017.

The plaintiffs are five crypto traders who claim they purchased cryptocurrencies at inflated prices and suffered financial losses as a result. As a class action, the suit represents anyone in the United States who inflated prices may have harmed.

However, the defendants’ lawyers argued in a supporting memorandum that the case would fall apart. Because of the accusation, Tether printed its USDT stablecoins without any solid backing based on the allegation. There is no direct knowledge and proof of the matter.

They also argued that the plaintiffs had not shown that cryptocurrency prices were indeed artificial at that time.

Based on the memorandum, the court would dismiss claims of market manipulation and RICO conspiracy. The reason is that the plaintiffs can’t prove they suffered a monetary loss at the defendants’ hands.

The court would also dismiss claims of anti-competitive and monopolistic behaviour. The class action failed to demonstrate how defendants attempted to claim a dominant market position by raising prices.

Lawsuit After Another

In 2019, New York state Attorney General Letitia James said they were investigating Bitfinex. Tether also came into the spotlight because of the exchange’s affiliation with it. The case revolved around the alleged $850 million cover-ups for a loss. It was around this time that the Tether lawyer admitted that Tether was only 74% backed.

Tether was able to settle the case with New York state. Tether got barred from doing business in New York under the terms of the settlement agreement. Bitfinex and Tether did not admit wrongdoing, but the court fined them $18.5 million.

The court also asked Tether to provide quarterly reserve reports for the next two years. There have since been more lawsuits, both major and minor, regarding Tether and Bitfinex.

How Deflationary Tokens Empower A Crypto Project’s Value

Blockchain technology has ushered us into a digital era, including in finance. More people are opening their minds to the idea of dealing with digital currencies. This progress is something most of us never expected. However, the crypto sector is continuously booming to unprecedented levels. The global pandemic was a situation that led to crypto getting their moment to shine.

Currently, there are over 11,800 coins in the market and still increasing. The crypto market cap is swinging over $2 trillion and is expected to continue on an uptrend. Therefore, it is crucial to note that the economic models of some coins in the market are the reason behind their growth. These coins are deflationary tokens, a booming economic model in the newer coins.

What are deflationary tokens, and how are they influencing crypto projects to reach newer levels? Stay tuned for a clear explanation and my opinion on how they can boost crypto projects’ value.

Understanding the Concept behind Deflationary Tokens

A few of you may confuse the concept of deflation in traditional finance and cryptocurrencies. While in traditional finance, deflation is a bad thing, it is a positive element for cryptocurrencies. In traditional finance, deflation refers to an asset’s decrease in price due to certain conditions such as over-minting.

A deflationary crypto decreases in its market supply as time goes by. This factor implies that users or the project’s team will participate in activities that reduce the coin’s supply on the blockchain. A common way to achieve this end is burning tokens.

A point worth noting is that cryptocurrencies with a finite supply are deflationary by default. They achieve this status since as long as investors buy and hold the coin, its supply reduces. An excellent example is Bitcoin, the king coin in the crypto market and retaining the highest dominance to date.

According to many crypto enthusiasts, deflationary tokens are here to outsmart DeFi. Some of us may still be skeptical about this factor as DeFi shows promise in building web 3.0 into the future. However, projects such as Ethereum turning to deflationary token mechanism raises the question of what the fuss is about. Before we answer that question, let us have a look at how the deflationary token model works.

How Do Deflationary Tokens Work?

As mentioned earlier, deflation in cryptocurrencies mainly involves burning tokens from circulation. The confusion comes in how exactly a blockchain destroys its tokens. It is not a literal activity as it consists in locking the tokens in a wallet without the private keys, rendering them inaccessible.

Platforms employ two types of burning mechanisms: buyback and burn and transaction burning. Buyback is a self-explanatory mechanism as it involves the platform buying back tokens from holders and locking them in an inaccessible address; a platform may use part of its profits to execute this process.

As for burning on transactions, a platform employs a smart contract that automatically burns part of transaction fees. This mechanism heavily depends on the number of transactions on a platform; the more the transactions, the more tokens the platform burns and vice versa.

Major Projects Turning to Deflationary Mechanisms

Some argue that Bitcoin’s finite supply is the reason behind the coin’s great value. Crypto experts call it both inflationary and deflationary. However, focusing on the deflationary side, the coin undergoes halving every four years, reducing its circulation in the market.

Since its halving in 2020, the coin managed to reach a new all-time high, gaining the interest of both retail and institutional investors. It currently stands as an excellent option as a store of value more than an investment.

Nonetheless, Bitcoin is a glimpse at how deflation may work on an asset with a finite supply and high demand; other projects are shifting into deflation as their tokenomics model. Ethereum and Binance are two notable projects using deflationary mechanisms to their advantage.

Benefits Crypto Projects Can Derive from Deflation

There are several advantages both investors and projects can derive from deflationary tokens. Beyond everything else, deflationary tokens wish to solve the issues with traditional finance. Going against popular outcomes, deflationary tokens have a positive impact on the crypto space. Here are some of the ways projects can benefit from them:

  • Increase A Coin’s Value

In the fundamental law of supply and demand, an increase in supply leads to a decrease in demand. Deflationary cryptocurrencies focus on reducing their supply in the market, increasing their scarcity, and heightening their demand. Why, you may ask? It is common knowledge that rarer things to get are more enticing than those which are readily available. Using the same concept, investors have a stronger attraction to scarce coins than those flooding the market. In the long run, this will lead to an increment in the coin’s value.

  • Generating Profits

During the recent bull run, deflationary tokens have been taking the spotlight. This element directly contributes to investor interests as they amass more profits. Another scenario for the same is if a platform decides to buy back coins from holders. The whole process leading to the coin burning will profit those who choose to short their coins. At the end of the day, the expected results will be a boost in value after burning.

  • Removing Extras from the Market

Unsold tokens in circulation are detrimental to the progress of a cryptocurrency. Deflationary mechanisms help a project to remove them from circulation instead of flooding the market. Furthermore, if there were coins distributed incorrectly, burning would be beneficial to rectify the mistake.

Author’s Thoughts

The number of deflationary tokens entering the crypto market today is staggering. We have heard of Burny and Boom tokens, which are some of the popular deflationary tokens. Nonetheless, deflation seems to be catching the eye of big fish in the industry, as is in the case of the Ethereum EIP-1559 upgrade.

This move is an eye-opener for many who were discrediting deflation as a positive impact on the industry. I think it is time for deflation to take over crypto markets, providing alternative ways to store value. Lastly, it is not a matter of how, but when the coins manage to control the crypto market.

For a look at all of today’s economic events, check out our economic calendar.

Why are Regulators More Focused on Clamping Down Crypto Platforms?

For years now, regulators have conflicted with major crypto projects. However, in recent months, regulators have been increasing their efforts to control crypto. National and international regulators like the SEC, FCA, CTFC and FSCA often conflict with crypto networks.

They seem to be more focused on clamping down on crypto projects. The question is, why are they fighting crypto? Keep reading for more. The guide will provide examples of projects involved in SEC conflicts, and discuss why regulators continue to fight crypto.

Projects Involved In Regulatory Fights

Coinbase

One of the biggest most recent spats was between the SEC and Coinbase. Currently, Coinbase is the most popular crypto exchange. It has tons of trading pairs and markets available for users.

However, Coinbase conflicted with the SEC. The network announced that they would be introducing a Lending service(Lend) to help users earn interest.

Immediately on announcing the product’s launch, the SEC warned that they would sue Coinbase if they launched Lend. They said that the product in question falls under the securities category. However, immediately after the SEC response, the Coinbase CEO went public, terming the SEC sketchy. Later, Coinbase cancelled the launch of the product.

Binance

Another ongoing spat is concerning the Binance exchange. Recently, this network has been on the SEC radar with several accusations. Binance has been facing compliance issues. Its activities were banned in the US, leading to the creation of Binance US.

In August, The SEC noted that it was holding some documents from the Binance network. However, they had not yet filed a complaint. The SEC began investigating the Binance exchange for possible insider trading and market manipulation activities. Investigations will look into whether the Binance network profited from insider information.

However, The Binance network publicly confirmed that they have zero tolerance for any insider trading. They have policies for preventing such occurrences within the network. Even though the SEC is investigating Binance, there is no formal charge.

Other regulators like CTFC also investigated whether Binance allowed US users to exchange Bitcoin derivatives. The US Treasury, FSCA, FCA have also shown interest in Binance’s operations.

Bitmex Exchange

Another trading platform that has been on the wrong side with the regulators is the Bitmex exchange. In October last year, the exchange and its top executives faced charges of failing to implement AML. Several of its top executives were arrested earlier this year. Bitmex faced accusations of allowing users from sanctioned countries like Iran to operate.

Robinhood

Robinhood is not essentially a crypto-only exchange. This network has been working on fiat related trades too. However, the SEC announced plans to ban the Payment For Order Flow. The PFOF is a system that allows the Robinhood network by itself to make an income. The SEC banning would mean that Robinhood loses its primary way of earning income. SEC’s actions could be due to Robinhood’s connection to crypto.

Why are Regulators Fighting Crypto Platforms?

The SEC is fighting against crypto and any platforms slightly connected to the blockchain world. XRP, Binance, Coinbase, Bitmex and Robinhood are among the few cases of regulator’s fight against crypto. So, why are regulators focused on a war against crypto? Let’s consider several reasons.

To Have Control Over Crypto

The most primary reason is to gain control of crypto. Controlling digital assets means they will be capable of creating regulations for the crypto space.

For instance, the SEC expressed interest in crypto networks registering some crypto assets on multiple occasions. In fact, in the spat between Coinbase and SEC, the regulator wanted Coinbase to register the Lend service as a regulated product.

The problem is, even after one decade of crypto’s existence, the SEC does not have a list of crypto tied securities. As such, this network is always in fights with crypto and blockchain networks.

It’s in the interest of Other regulatory bodies to centralize the operations of crypto exchanges to regulate them.

To Get More Taxes From Crypto

Some government agencies are interested in earning more income from crypto networks. Recently, in the US, congress introduced regulations in crypto to gain more taxes. Whereas, experts still thought US government owned more bitcoins than any other holder.

When discussing the $1 trillion infrastructure bill, they included a section that will increase crypto. The new bill touches all projects slightly tied to crypto. The idea is to raise billions for funding the infrastructure bill. Thus, the increased efforts by regulating authorities like treasury are to get more income from crypto.

To Protect Consumers

Another for the increased fights against crypto is consumer protection. Generally, crypto since its launch has been under criticism from security and regulating authorities. Many claims that crypto is a mere bubble, and as such, can easily disappoint users. Therefore, the SEC, CTFC and FCA are trying to protect their users.

To Ban Cryptocurrency

Finally, governments may be using regulatory bodies to fight against crypto and ultimately kill it. Some governments like China have enhanced the fight on crypto, intending to ban it. As such, they are increasing regulations every other day.

Final Word

This guide has looked into the regulatory environment surrounding crypto today. It seems like many regulators today are trying to suppress crypto in every way. The cases of Coinbase, Binance, Bitmex and Robinhood, are good examples of regulatory suppression. But why are they fighting crypto?

There are four possible reasons behind their increased fights. Foremost, most governments and regulators want to have control of crypto. They want to centralize the blockchain world and create regulations to take complete control.

Moreover, the regulators’ interest could be increasing the national revenues. It’s also possible that consumer protection and possible crypto bans are reasons behind the increased regulations. However, Governments should focus more on helping crypto grow instead of suppressing its adoption.

Binance Halts Several Crypto Trading Services in Australia, as Regulatory Issues Continue

In an announcement, Binance revealed its plans to stop offering certain products to Australian traders. Users from the region will have no access to leveraged tokens, options, and futures. The new guideline starts on September 24, 2021. What’s more, Australians have a 90-day period to shut down or minimize their positions.

An End to Derivative Trading in Australia

Binance continues to examine how it can relate well with global regulators. By stopping derivative trading in Australia, Binance believes it can be on the safe side of the law. Thus, Australian traders cannot complete their positions once December 23, 2021, arrives.

Furthermore, the exchange is going to close any open position after the deadline. Binance issued yet another directive to Australians in August 2021. In the report, Binance said it is restricting Australian users from opening an account with the exchange. It blocks traders from creating margin products, options, and leveraged token accounts.

The Compliance Journey

The majority of countries are against the product offerings that Binance extends to users. For instance, the Cayman Islands claims that the exchange is operating in the region illegally. The Island’s regulator says that Binance is providing digital asset services without a license.

Hosting such products in the region requires companies to obtain a waiver from Cayman’s monetary authority. The Netherlands had a similar argument with Binance in August 2021. As per the Dutch Central Bank, the platform is offering crypto services without any official registration.

The bank also says that Binance could expose users to illegal financing and money laundering activities. Other countries in conflict with Binance’s offerings include Holland, Japan, and the U.K.

Taking up Centralization

The latest development shows that Binance may adopt centralization in its operations. Binance’s head, Changpeng Zhao, admits that centralization can improve its compliance status. The statement means that the platform could reveal its headquarters in the future.

However, the downside is that governments might constantly monitor the customers’ financial dealings. Revealing such data breaks the basic rules in the crypto space concerning privacy. In the long run, involving financial regulators also allows Binance to work without any conflicts. Hence, the exchange can secure licensing support from global regulators.

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How Much Will Bitcoin be Worth in 2025?

However, it lost more than half of its market value compounded by China’s harsh regulations and a crackdown on mining activities. The year has also witnessed an increase in Bitcoin adoption rate with several global financial institutions and established technology firms. Notably, they include PayPal, Visa, JPMorgan, Goldman Sachs, MicroStrategy, Apple, and Tesla, all adopting Bitcoin.

Following increased Bitcoin adaptation coupled with increased blockchain-based investments, it’s evident that hyperbitcoinisation is almost a reality, predicted to occur by 2050. It means the moment Bitcoin takes over global finance.

However, even before hyperbitcoinisation, what will be the price of Bitcoin in 2025? Considering Bitcoin’s price history, behavior, and relevant expert predictions here’s what you could expect Bitcoin to be worth in 2025.

Bitcoin’s Price History

Bitcoin was launched in January 2009 by pseudonymous Satoshi Nakamoto. Satoshi presented the idea of a decentralized digital currency under a whitepaper titled: Bitcoin: A Peer-to-Peer Electronic Cash System. Ten months after the whitepaper presentation, Bitcoin’s market worth debuted at the rate of $1 US Dollar = 1,309.03 BTC. Initially, the price of the crypto world-beater was determined based on the electricity cost needed to mine a single coin.

Bitcoin’s Price Surges

Bitcoin made the first-ever positive price movement in 2010 to trade at $0.08. However, the price movements were slowed down by high volatility and unregulated markets, contributing to excessive fraud. In 2011, bitcoin jumped to $32, only to drop to $2 later.

Later on, Bitcoin gained some popularity among tech enthusiasts and corporate investors, leading to an enormous price growth from $4 in 2012 to $1,200 in 2017. However, despite the massive price growth, the BTC market was still volatile and still vulnerable to security challenges marked by the millions worth of cyberattacks.

In 2017, bitcoin went against all expectations hitting $20,000 price value before tumbling to $7,000 months after. It made a price recovery in 2018 and 2019 thanks to increased public awareness and adoption by institutional investors.

In 2020, the COVID-19 pandemic brought the global economy to its knees. Regardless, Bitcoin saw its rise to a high of $23,400, gaining over 200%. Bitcoin’s enormous price growth in 2020 was attributed to the inclination to Bitcoin by Wall Street institutions. The reason for this was to hedge funds following the tumbling of other financial markets.

Bitcoin’s growing acceptance by both institutional investors and consumer-facing companies was instrumental for its price growth witnessed in 2020.

Bitcoin’s Current Price

Bitcoin kick-started 2021 at $29,048.39 amidst increased demand and interest from institutional investors and companies. The market was still pretty volatile, marked by short and sharp price fluctuations. Tesla’s founder and CEO announced the company had bought $1.5 billion in bitcoin and planned to accept it as a means of payment. As a result, it led to a big bull run that saw the coin hit an all-time high of $63,729.5 in April.

However, the crypto’s value started tumbling in mid-May owing to China’s intense crackdown on mining activities. Other negative headlines, notably Tesla’s CEO Elon Musk U-turn on his decision to accept Bitcoin payments. He termed Bitcoin mining activities as bad for the environment. Moreover, this led to the coin losing almost half of its market value, trading at $30,895.42 at the time of writing. In essence, 2021 has arguably been the most volatile year in Bitcoin’s trading history, evidenced by unstable prices with intense market movements.

How much will Bitcoin be Worth in 2025?

Despite losing more than half of its value, Bitcoin has still got bright prospects. Numerous institutional investors and companies increasingly continue to adopt BTC after realizing its enormous potential. Various companies consider Bitcoin as a long-term institutional investment.

Bitcoin supply is capped at 21 million, and 18.5 million bitcoins have already been mined in its ten years of existence. Considering this, the increasing demand with a gradually diminishing supply will undoubtedly lead to a high price tag in 2025. Why? By then, there will be less Bitcoin to mine. The last Bitcoin is expected

Predictions by Crypto Experts

Different crypto experts hold varied opinions regarding the price of Bitcoin in 2025. In one study to map the future outlook of Bitcoin, a panel consisting of 42 crypto experts. They included crypto asset managers and cryptanalysts, predicted the price of Bitcoin in 2025. The panelists predicted that the price of Bitcoin would be $318,417 by December 2025 and rise to $4,287,591 by December 2030.

They stated that the price prediction was possible due to increased adoption by corporations and institutional investors, increased asset inflation, and loose monetary policy. Besides, the next bitcoin halving will also be instrumental in propelling BTC to this price point.

In a tweet Pavel Shkitin, CEO at Nominex exchange emphasizes that all industries are looking forward to deeper crypto adoption by world’s leading corporations so it could raise the Bitcoin price to 6 figures even before the end of this year. The next halving cycle will show us increased adoption of Bitcoin as a legal tender by developing countries.

Pavel believes this trend will continue onwards and until 2025, Bitcoin will have replaced gold as a global reserve asset. It’ll start an enormous bull market and lead BTC prices to as high as $500,000.

Justin Chuh, Wave Financial’s senior trader, predicts that BTC will end 2025 selling at $210,000 per BTC. He claims that Bitcoin has proven itself as a tried and tested haven of digital assets. He also stated that it would reach the price point due to halving events and extreme inflation, triggering enormous price moves.

Max Keiser, the Host of The Keiser Report, predicts that BTC will be worth around $100,000 in 2025 and $400,000 in 2030. Robert Kiyosaki, the author of the New York Times bestselling book Rich Dad, Poor Dad, predicts BTC will reach $75,000 by 2020.

Price Prediction Based on Stock-to-Flow Mechanism

Developed by Bitcoin expert Plan B, the stock-to-flow price prediction model is a widespread mechanism of indicating the price of commodities and financial assets in the long run. The price prediction mechanism uses the assets’ digital scarcity, i.e., supply-demand mechanism, to predict the asset’s price at a particular point in time.

According to the stock-to-flow price prediction mechanism, Bitcoin will hit $100,000 at the beginning of 2025. The forecast also states it will rise to $150,000 by the end of the year.

How Will Bitcoin Halving Influence Bitcoin Price in 2025

Bitcoin halving refers to an event that occurs every four years where Bitcoin mining rewards are reduced by half. Currently, the mining reward is 6.25 BTC per block. However, it will reduce to 3.125 BTC in the next bitcoin halving expected to occur in the Spring of 2024.

The halving event will make bitcoin more scarce leading to a price rise. Historically, each Bitcoin halving event has been followed by an enormous price rise owing to the demand and supply rule.

Closing Words

Most crypto experts are optimistic that Bitcoin will rise in value by 2025, with its price ranging between $100,000 to $400,000 per BTC. 2025 will very much likely be the year of Bitcoin with a considerable probability of doubling its price. Increased institutional adoption, dwindling supply with the upcoming halving event, and increased fiat currency inflation are some of the reasons Bitcoin will grow in value by 2025.

Despite the optimistic predictions, the crypto market is highly volatile. It’s fostered by numerous extra factors such as global politics, business interest, global economic performance, and other factors coming into play in determining BTC’s price. Bitcoin’s market price is also increasingly being determined by enormous investors such as Tesla, led by its CEO Elon Musk. Such investors can cause a significant price movement by just a tweet.

Whether or not you should rely on these predictions to make a financial decision depends on your personal goals and investment strategy. However, one thing is almost certain: Bitcoin’s value and adoption will rise by 2025.

Chinese Crypto Miners are Back Online in New Locations, Hashrate Says it All

Chinese crypto miners are finally back online after a government-led crackdown forced them out of the country in June 2021. Much of the mining capacity moved to North America, Russia, Kazakhstan, among others.

Consequently, the hash rate had jumped about 55% from July when it had hit a two-year low. Bitcoin is also almost hitting $50,000 after losing more than half its value from its April peak.

The Chinese Crackdown

Cryptos are created or “mined” by powerful computers or devices. They use electricity to solve complex mathematical puzzles.

According to estimates by Adam James, a senior editor of OKEx Insights, about 90% of all mining in China fell offline. With China’s closure, any mining operation outside China gained immediately. It is because their mining compensation automatically rises. It works in proportion to its share of the global bitcoin network hash rate. Hashrate, on the other hand, is a measure of miners’ processing power.

After the ban on the mainland, mining plant prices plummeted. In April, a machine that sold approximately 4,000 yuan ($620) was available for only 700-800 yuan by May.

The Chinese manufacturers of crypto mining devices paused their sales soon after. They started searching for “excellent” power in foreign regions with their customers.

Although the price of Bitcoin was 50% below the all-time high throughout much of the summer, plugged-in miners were making tremendous profits. Several mining companies reported that Q2 of this year was the best they had seen.

Difficulty and Hashrate

Bitcoin’s hashrate is now about 85 percent recovered after China banned it earlier this summer. It shows that the crackdown has caused extreme volatility. For example, by July, when the hashrate was at its lowest rate of 84.79 million (TH/s) by 2021, the network had its largest downward change ever, 28 percent.

The hashrate also came from huge North American miners. They most likely were plugging in computers ordered this year and recently got delivered.

The difficulty adjusts every two weeks roughly (or every 2,016 blocks). Depending on the number of miners in the network, the network ratchets it up or down. If more hashrate comes online during one of these two week periods, it will upward adjust the difficulty. That is because more miners produce more calculations than before to locate blocks.

Even if the difficulty of Bitcoin mining is growing, it is a favourable moment for miners. “Look at the price run percentage that Bitcoin has had throughout the previous 12 months. You will see the increase in the hashrate percentage, and it is nowhere in line.”

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Bitcoin is trading at $49,410 at press time, up 4.23% over the past seven days.

 

Here’s Why Short Term Trading is More Profitable than Long Term

Millions of merchants join the cryptocurrency world with a common goal of maximizing profits. As such, investors must grasp several trading strategies to become successful in the decentralized economy.

Today, there exist many types of traders within the digital asset market. What separates these investors is the long-term or short-term trading route they take. Long-term trading involves holding digital assets for extended periods. Traders under the long-term method usually believe that specific digital coins may turn out as profitable in the future.

Investors perform trades for shorter periods in a short-term setup, ranging between hours, days, or weeks. This piece uncovers why short-term traders have an advantage over long-term traders.

Why Short Term Generates More Income Than Long Term Trading

A lot can happen in the digital asset market, depending on the set timeline. Thus, durations play a significant role in determining the outcome of an investor’s trading strategy. Bearing that in mind, here’s why short-term trading is more profitable than long-term trading:

It Leverages Recent Trends

Short-term investments heavily rely on the recent events taking place in the crypto market. Here, users watch the market and make sound trading decisions based on their findings. For instance, influential figures such as Elon Musk embracing Bitcoin payments is positive news that can accumulate profits for users.

However, the mogul declined to use Bitcoin because of the environmental harm it causes during the mining process. As such, leveraging occurrences cannot be applicable for long-term trading since trends tend to change over time.

Requires Less Capital

In long-term trading, users make heavy investments because they are optimistic about a crypto asset’s future. However, the volatility rates of cryptocurrencies do not guarantee that investors can save their capital. Investors in the short-term trading field can make profits out of a small amount of capital.

It removes the pressure of requiring a bigger capital just to accumulate profits. As time goes by, short-term traders can continue upgrading their capital depending on their budgets.

The Market is Active

The cryptocurrency industry is a highly active market that operates around the clock. Being a broad and dynamic market, short-term investors vigorously make trading decisions that can uplift their incomes. So, short-term crypto investments are reliable for anyone at any given time.

Immediate Reinvestment

Investors using short-term methods can make immediate reinvestments from what they gain. Long-term strategies such as staking hold the investors’ assets and, in most cases, lock their holdings in digital wallets.

It, therefore, limits users from reinvesting in their growing coins. Short-term trading eliminates such barriers and enables investors to make an extra investment after making profits.

Limits the Hassle of Researching

Finding out more about a platform’s offerings is part and parcel of any investment journey. Nevertheless, short-term trading methods require less research time than long-term trading strategies. Short-term investors only need to grasp basic information and carry on with their trading activities.

Long-term tactics take a more comprehensive approach since users will commit their holdings for a longer time. In the end, long-term investors may experience losses even after dedicating their time to research.

Short Term Strategies Investors Can Use

Crypto traders can use the following types of short term strategies to secure adequate profits:

Scalping

Scalping involves making trades using a digital currency’s price movements. Under this strategy, traders act upon price shifts taking place within seconds or minutes. Experienced scalpers earn incomes by looking for time-sensitive opportunities. Thus, Scalpers develop consistency and chart reading skills as they gather continuous profits.

Arbitrage Trading

Arbitrage trading operates as a short-term strategy that relies on different market offerings. Investors buy digital assets from one exchange and sell them in another exchange, offering higher prices. The speed of an investor is what matters a lot in arbitrage trading. Another option is triangular arbitrage which uses the values of three assets on one exchange. Arbitrageurs make use of the price differences between exchanges to realize profits.

Leverage Trading

In leveraged trading, crypto exchanges allow investors to borrow funds and use that position to generate profits. Traders with smaller holdings can increase their buying power using the exchange’s long-short positions.

Trend Lines

Trend lines allow users to analyze the crypto’s momentum and enter into a trading position. On some occasions, traders hold the same positions for more extended periods. Nonetheless, the general idea behind trend lines is to watch for any upward or downward shift and speculate the asset’s next movement.

The most common trend indicators used include relative strength index, moving averages, and the moving average convergence divergence (MACD)

Closing Thoughts

Short-term trading allows investors to exploit the current market movements and accumulate gains. More importantly, short-term trade caters to budget-sensitive traders who wish to stick to their plans.

Through short-term trades, investors can receive updates on what is happening in the digital asset market. In the long run, investors gain more experience in handling and executing different types of trades.

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