Russian central bank proposes banning cryptocurrencies, crypto mining

By Elena Fabrichnaya and Alexander Marrow

MOSCOW (Reuters) -Russia’s central bank on Thursday proposed banning the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens’ wellbeing and its monetary policy sovereignty.

The move is the latest in a global cryptocurrency crackdown as governments from Asia to the United States worry that privately operated highly volatile digital currencies could undermine their control of financial and monetary systems.

Russia has argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned their use as a means of payment.

In December, the price of bitcoin fell after Reuters reported, citing sources, that Russia’s regulator was in favour of a complete ban on cryptocurrencies.

In a report published on Thursday, the central bank said speculative demand primarily determined cryptocurrencies’ rapid growth and that they carried characteristics of a financial pyramid, warning that bubbles in the market could form, threatening financial stability and citizens.

The bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat, or traditional currencies. The proposed ban includes crypto exchanges.

Russians are active cryptocurrency users, the central bank said, with an annual transaction volume of about $5 billion.

CRYPTO MINING

Russia is the world’s third-largest player in bitcoin mining, behind the United States and Kazakhstan, though the latter may see a miner exodus over fears of tightening regulation following unrest earlier this month.

The central bank said crypto mining created problems for energy consumption. Bitcoin and other cryptocurrencies are “mined” by powerful computers that compete against others hooked up to a global network to solve complex mathematical puzzles. The process guzzles electricity and is often powered by fossil fuels.

“The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank said.

In August, Russia accounted for 11.2% https://ccaf.io/cbeci/mining_map of the global “hashrate” – crypto jargon for the amount of computing power being used by computers connected to the bitcoin network.

In its report, the central bank pointed to steps taken in other countries, such as China, to curb cryptocurrency activity. It said it would work with regulators in countries where crypto exchanges are registered to collect information about the operations of Russian clients.

In September, China intensified its crackdown nL1N2QQ0MG on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Russia’s regulator said crypto assets becoming widespread would limit the sovereignty of monetary policy, with higher interest rates needed to contain inflation.

It said the long-term potential of cryptocurrencies being used for settlements was limited.

Meanwhile, the Bank of Russia is planning to issue its own digital rouble, joining the global trend to develop digital currencies to modernise financial systems, speed up payments and counter a potential threat from other cryptocurrencies.

(Reporting by Elena Fabrichnaya and Alexander Marrow; Editing by Emelia Sithole-Matarise)

Can Blockchain Drive the Gaming Industry to Full Decentralization?

The gaming industry has been around for many years. It is a multi-billion dollar industry that continues to grow year after year. It is safe to say that blockchain technology and gaming are two industries that have yet to unlock their full potential.

While both industries hold great promise, they are also in the early stages of development. But what if there was a way to combine these two promising spaces and unlock even more potential? According to some experts, Blockchain may be able to do just that – drive the gaming industry into a state of complete Decentralization.

The Gaming Industry Pre-Blockchain Technology

Since the days of initial console gaming, the industry has evolved considerably. Video games were formerly enjoyed in the comfort of your own home on consoles, and there was little to no interplay with other gamers. The game business was far more centralized before the Blockchain.

The game publishers were in command of which games are published and which ones gamers may play, as opposed to today, when they have a significant role. In addition, gamers were at the mercy of game publishers regarding how much they had to pay for games.

Games were previously hosted on centralized servers, which meant that players could only interact with people who lived in the exact geographical location. This restriction was due to data centers renting or buying server space from game developers to host their games.

The Gaming Industry Operations on Blockchain Technology

The invention of blockchain technology has revolutionized the gaming industry. This new technology allows for the creation of Decentralized Games, which can be played by anybody worldwide. As a result, new genres of games have emerged, such as Massively Multiplayer Online Role-Playing Games (MMORPGs) and First-Person Shooters (FPSs).

Gamers are now in command due to the emergence of decentralized application platforms. These blockchain-based solutions go beyond virtual reality games that allow players to get lost in different realities. Gamers use trustless systems to purchase and trade items without going through a central entity.

Blockchain technology enabled the creation of decentralized games, which eliminated the need for central servers. This new technology also allowed game developers to create games that utilized cryptocurrencies as in-game money. CryptoKitties was the first decentralized game to use cryptocurrency as an in-game currency.

Benefits for the Gaming Industry under Blockchain Technology

Because of its liquidity and the fact that gamers are accustomed to tokenization, integrating Blockchain into gaming is a piece of cake. Blockchain technology has a beneficial interaction between cryptocurrency and video games. This is because Blockchain attempts to address several long-standing issues in the gaming industry.

Blockchain technology provides a slew of advantages to the gaming industry. The following are some examples:

  • Increased Security 

Blockchain technology is known for its security. This is because data stored on a blockchain is decentralized and immutable. Because hackers cannot break into the system, it becomes more difficult for them to steal information. As a consequence, the gaming business can benefit from increased data security.

  • Better Game Development

Game developers are no longer restricted to traditional distribution platforms like Steam and the iOS app store with the advent of blockchain technology. Blockchain technology enables them to establish peer-to-peer gaming platforms in which gamers may directly contribute to game development.

  • Increased Transparency

Blockchain technology helps to improve transparency in the gaming sector. Blockchain can enhance and optimize the interaction between gamers and game developers. It also assists with in-game asset ownership by making the gaming business more transparent and requiring legislation. All transactions are handled via smart contracts in a blockchain-based game. Smart contracts are programmed to follow particular rules and are unchangeable.

  • Reduced Costs

Blockchain technology helps reduce costs for the gaming sector by automating procedures and eliminating intermediaries. This may save the gaming business a lot of money. The combination of cryptocurrency and entertaining video games is sure to result in an influx of investment.

  • Access to New Markets

Blockchain technology creates new opportunities for the gaming industry. It’s conceivable to utilize blockchain technology to create decentralized in-game economies in which gamers may trade virtual items with one another utilizing smart contracts. Consequently, this might open up new markets where game developers can profit handsomely.

The latest trends in the Decentralized Gaming Industry

The video gaming business is one of the world’s multi-billion-dollar fast-growing industries. Over the last few years, it has witnessed many changes, and it appears that this pattern will continue in the future. Companies are now using blockchain technology to transform the gaming industry. Some of the emerging decentralized trends include NFTs and play-to-earn (P2E).

In the video game industry, NFTs are frequently depicted in-game assets like weapons, armor, and property. NFTs may also be utilized to represent digital ownership of physical things, such as art or real estate. They’re also traded on decentralized marketplaces, which is a big deal. This enables gamers to trade virtual assets with each other, increasing the value of those items.

One of the most significant benefits of decentralized gaming is that it allows players to earn rewards for playing games. These tokens may then be spent on in-game goods or exchanged for other cryptocurrencies. This type of reward system is not only more lucrative than those employed by existing centralized gaming platforms, but it also lets gamers learn what kinds of games they enjoy.

The Drive to Full Decentralization

Can Blockchain drive the gaming industry to full Decentralization? Yes. Blockchain technology has the potential to solve issues that game centralized organizations confront. With blockchain technology, games can be completely decentralized, with no need for a central server or data control. This addresses the security concerns and establishes a more equitable voting mechanism.

Blockchain technology also makes it easier to provide a more engaging gaming environment. Decentraland and the metaverse are poised to revolutionize the gaming industry by resolving its most serious issues. Some platforms such as Jedstar are set to revolutionize crypto DeFi and GameFi.

Jedstar’s games and NFT marketplace are designed to encourage players and creators first and foremost. It is a Decentralized Ecosystem (DECO) that revolutionizes DeFi, GameFi, and NFTs by providing new possibilities for finance. It aims to empower gamers and artists through actual ownership.

Conclusion

Blockchain technology is propelling the gaming industry to complete Decentralization. The advantages of Blockchain for gamers are significant, but certain obstacles must first be overcome before it can become entirely decentralized.

Blockchain has enhanced game designers’ and publishers’ possibilities to connect with their audiences with less fraud and censorship. Decentralized games might be one future trend that provides gamers a better experience than ever before. It also opens up some intriguing possibilities for online marketers interested in connecting with these consumers online.

Polygon (MATIC) Is At Risk Of Trend Reversal

MATIC is trying to rebound after the recent pullback, but the technical picture looks dangerous despite recent positive developments on the fundamental front.

MATIC Failed To Move HigherDespite Positive Catalysts

On January 18, EIP-1559 upgrade went live on the Polygon network. The network has also attracted almost 500,000 daily active users, and its popularity continued to grow.

However, these positive catalysts failed to provide enough support to MATIC as crypto markets found themselves under pressure due to rising Treasury yields.

The world’s leading cryptocurrency, Bitcoin, has been recently stuck in the $41,000 – $44,000 range, and smaller cryptos kept moving lower, pushing the world’s total crypto market cap below the psychologically important $2 trillion level.

Classic Head And Shoulders Pattern On The Chart

matic january 20 2022

On the daily chart, we can see that MATIC has developed a classic head and shoulders pattern. This pattern occurs when a financial instrument has three local peaks, and the second one is the highest.

Here, we can see that “shoulders” have occurred at roughly the same levels, so it is very easy to recognize the pattern. The head and shoulders pattern indicates that there is a growing risk of a trend reversal.

In case MATIC manages to settle below the nearest support level at $2.00, it will head towards the next support which is located near recent lows at $1.90. A successful test of this support level will open the way to the test of the support at $1.83.

On the upside, the nearest resistance level for MATIC is located at $2.15. A move above this level will push MATIC towards the resistance at the 50 EMA near $2.20. A successful test of the resistance at the 50 EMA will open the way to the test of the next resistance level at the 20 EMA near $2.24.

From a big picture point of view, MATIC needs to get to the test of the recent highs near $2.45 to destroy the head and shoulders pattern and have a chance to gain additional upside momentum that could push it back to December 2021 highs.

Bitcoin (BTC) and the Broader Market Follows the U.S Equities into the Red

It was a bearish day for Bitcoin (BTC) and the broader crypto market on Wednesday.

Bitcoin fell by 1.65% to end the day at $41,676, with resistance at $42,500 pegging Bitcoin back on the day.

Elsewhere, Litecoin (LTC) slid by 3.77%, with Ethereum (ETH) ending the day down by 2.39%. Cardano (ADA) was amongst the biggest losers on the day, however, sliding by 8.29%.

Cryptos and Interconnectedness with the U.S Equity Markets

Movement across the crypto market was once more aligned with the U.S equity markets mid-week. Market angst over inflation and FED monetary policy continued to weigh on riskier assets.

The NASDAQ followed Tuesday’s 2.60% tumble with a 1.15% slide. Things were not much better for the Dow and the S&P500, which saw losses of 0.96% and 0.97% respectively.

For regulators and IMF, the recent trends have been a source of concern. Earlier this year, the IMF had raised concerns over the interconnectedness of the crypto and U.S equity markets. The IMF’s concerns were aligned with those of the Bank of England. Late last year, the BoE had called for a global economic framework to address risks to financial stability.

For the crypto market, increased regulatory chatter and activity has contributed to the bearish start to the year. Market sentiment towards FED monetary policy, which has weighed heavily on the NASDAQ, has also been key.

In spite of the bearish moves, the Bitcoin Fear & Greed Index has avoided a fall back to a current month low 10/100. At the time of writing, the Bitcoin Fear & Greed Index sat at 24/100. We’ve seen the index hover at current levels for a number of days. Regulatory chatter and any apprehension ahead of today’s U.S Congress subcommittee hearing on cryptocurrencies have failed to instill greater investor fear.

Fear And Greed Index LookIntoBitcoin - Google Chrome

For the Day Ahead

With market jitters over inflation likely to linger, economic data from the Eurozone and the U.S will draw interest later today.

Finalized Eurozone inflation and German wholesale inflation figures are due out from the Eurozone. From the U.S, jobless claims will also be key. Rising consumer prices and weaker labor market conditions would be a negative for riskier assets.

Following two days of heavy losses for the NASDAQ, however, dip buyers could deliver both the NASDAQ and cryptos with support.

Much will depend on updates from today’s U.S Congress subcommittee hearing. A key topic will likely be crypto mining and the impact on the environment. Bitcoin mining has had plenty of airtime in recent weeks…

At the time of writing, Bitcoin was up by 0.33% to $41,814. A break back through to $42,500 levels would bring $43,000 levels into play. Avoiding a fall back through today’s $41,798 pivot will be key, however. A pullback to sub-$41,500 levels would bring sub-$40,000 into play.

Looking at the U.S futures, the NASDAQ was up by just 26 points at the time of writing.

BTCUSD 200122

BabyDoge Adds 13% to its Value in 24 Hours Following CoinEx Listing

BabyDoge Coin has more holders than Shiba Inu despite SHIB being the second-largest meme coin in terms of market cap.

BabyDoge Now Has More Than 1.2 Million Holders

BabyDoge has rallied by more than 13% over the past 24 hours, making it one of the top-performing cryptocurrencies in the market at the moment.

At press time, BabyDoge is trading at $0.000000006132. The rally comes as the meme coin was listed on the CoinEx cryptocurrency exchange yesterday. The BABYDOGE/USDT pair is now live on CoinEx, with deposit and withdrawal features also available.

This latest development came on the same day that the number of wallets holding BabyDoge surpassed that of Shiba Inu. Yesterday, the total number of wallets holding Shiba Inu topped 1.1 million.

However, BabyDoge has more holders. According to the data revealed by WhaleStats, 1,275,995 wallets now hold BabyDoge. WhaleStats added that the 1000 BNB wallets are holding 989,582,594,495,517 BabyDoge tokens (worth around $5,027,713).

BabyDoge has been recording positive milestones since the start of the month. Last week, BabyDoge flipped Ethereum to become the most traded cryptocurrency by Binance Smart Chain whales.

BABYDOGE Could Rally Higher Soon

The BABYDOGE/USDT daily technical chart shows that the cryptocurrency has been performing excellently over the past few days. The technical indicators are positive, pointing to a positive trend in its performance.

BABYDOGE’s MACD line is above the neutral zone. Source: Coinmarketcap / TradingView

BABYDOGE’s MACD line has been above the neutral zone since the start of the year, indicating a strong bullish performance. The 14-day RSI of 71 shows that BABYDOGE is in the overbought region.

If the positive momentum is maintained, BabyDoge could rally past the $0.0000000075 resistance level in the coming hours. In the event of an extended rally, BabyDoge could target the $0.0000000090 level before the end of the week.

Key Milestones of the Financial Market in 2021

The year 2021 was packed with exciting developments and meaningful circumstances in world affairs—its economy, politics, and policies—impacting the financial sector as a whole. With the help of its analytics team, the international Forex broker OctaFX compiled a basic rundown to deliver some of the more critical, vital events which it deemed especially important.

The U.S. dollar’s tumultuous journey through quantitative easing (QE)

During the COVID-19 crisis, the U.S. Federal Reserve (Fed) and the European Central Bank (ECB)—the central banks that issue the world’s reserve currencies—flooded the financial markets with new money. The official reason stated was helping the suffering economy because of the pandemic.

Therefore, U.S. president Joe Biden’s proposal of a 1.9 trillion USD stimulus package to Congress arrived on 21 January. The Republican Party was highly sceptical about this approach—some congressmen even recalled the already worrying, continual growth of the national debt (a mass total of 21.6 trillion USD at the time). It is a long-term development whose lack of resolution as of yet does not shake the market’s firm belief in the reliability of the U.S. dollar.

Biden follows suit by signing stimulus plan

Fast forward two months, the U.S. Senate (6 March) and the U.S. House of Representatives (10 March) both approved the stimulus plan before Biden signed it on 11 March as a 1.9 trillion USD economic rescue package. Far from being a bipartisan undertaking, no Republican approved the new order. Although, the document was amended, for example, the clause on raising the minimum wage was removed. New money flooding the market like this filled most market participants with a bullish sentiment.

Another 1.2 trillion USD for ‘infrastructure spending plan’

Towards the end of June 2021, expectations for a tight monetary policy were running high but then the U.S. Senate agreed on and approved a new ‘infrastructure spending plan’, totalling another 1.2 trillion USD. The reason was a sharp increase in inflation in the months prior to June.

Both institutions—the Fed and the ECB—have kept rates at zero or negative and implemented quantitative easing (QE) throughout 2021, increasing their balance sheets and buying bonds with that money. Because of this, their yields fell, which encouraged investors to put capital into companies’ stocks and look for other projects.

Fed announces the end of bailout measures

In September, the U.S. Federal Reserve officially declared that it is ready to end its quantitative easing programme and may raise the base rate already from 2022 rather than 2023, as previously assumed. The Fed further added it would continue to buy 120 billion USD worth of assets each month for the time being: 80 billion USD in treasuries and 40 billion USD in mortgage-backed bonds.

The regulator’s rhetoric initially spooked investors, but overseas markets moved higher on 23 September. The American S&P 500 was recovering from a marginal fall and rose by 1%. Finally, the U.S. monetary regulator started winding down asset purchases from the market to 105 billion USD in November (from 120 billion USD previously) and to 90 billion USD in December—strong signals for the market that the economy starts to revitalise itself.

Bitcoin reaches historic ATH in April before falling again by 53%

The whole of April, the crypto industry radiated with enthusiasm over an ongoing bull market before bitcoin—surprisingly to most—started a steep correction from a historical all-time high of 63,500 USD (13 April 2021) to 34,600 USD (29 May 2021). In those first initial waves downward, due to triggered margin calls, around 8 billion USD in position liquidations took place. This process had put most of the trading community on a new kind of alertness.

This downtrend continued up to 20 July 2021, reaching a price of 29,600 USD per bitcoin (that’s over 53% from the previous all-time high). Only after that point did an uptrend start with a late-summer high of 52,600 USD (6 September 2021). Most were sure the bottom for bitcoin back then had been hit and more frequent but careful trading resumed during that time.

Ethereum stays strong but stable while bitcoin tops twice more

Six weeks later, the mother of all cryptocurrencies topped off its previous all-time high twice in close succession—65,990 USD (20 October 2021) and 67,500 USD (8 November 2021), vindicating a suspected bull market across market observers, retail investors, and legacy institutions once again. All the while, the altcoin market soldiered on with a fluctuating performance, seeing Ethereum’s persistence and some success stories such as the Solana smart-contract platform.

The latter rose from 1.84 USD on 1 January to its all-time high of 258.93 USD on 6 November, gaining 13,972%. Many opportunities for lucrative trades and initial long-term investments were realised. At the same time, some solid altcoin projects stagnated during this period, only showing that their turn for growth has yet to come.

U.S. and E.U. prioritise the basic materials sector

In autumn, the E.U. and the U.S. have agreed to suspend duties on steel and aluminium products. During a speech, the President of the European Commission, Ursula von der Leyen, stressed that her institution planned to develop proposals to suspend duties imposed on goods from the U.S. She elaborated that this would bring trade in steel and aluminium products back to their levels before these tariffs were imposed in 2018.

U.S. President Joe Biden reiterated the intentions of the European Union and the United States jointly committing to a carbon-based agreement on steel and aluminium trade. After President Trump’s era of ‘economic isolationism’, many investors in the relevant industries understood this development as a bullish long-term sign.

European Union at a crossroads

In 2021’s fourth quarter, the euro fell to its lowest value since the start of July 2020. The reason for the plunge was the worsening business climate in the E.U.

In Germany, supply problems within most industries have worsened. Berlin, as the fourth-biggest economy in the world, also inaugurated its new government in December. One important aim of the new coalition is to introduce a wide variety of new taxes on secondary homeownership and carbon emissions on all levels, be it corporate or private. Germany is a major player in the European Union’s power dynamics structure. Its new government in Berlin will have much to say about the way onwards in terms of the continent’s financial and political development.

What the future holds

As Powell hinted throughout the year, in January 2022 there will be a monthly quantitative easing cap of 60 billion USD, halving the 2021 rate and initiating a probable and gradual farewell to the emergency policy. A process that market participants of all shapes and sizes (private and corporate) will have to pay close attention to.

All of the dynamics above will have exciting new developments in 2022 and the years after—many of which will hit most by surprise. So, financial education and constant research and training towards economic and financial literacy are paramount to navigating through these fast-paced markets. This plain truth applies just as much to Foreign Exchange as it does to the stock market or the cryptocurrency domain.

About OctaFX

OctaFX is a global broker that provides online trading services worldwide since 2011. It offers a state-of-the-art trading experience to over 7.5 million traders worldwide. The company is well-known for its financial expertise, analytics, and educational programme. It maintains a high emphasis on financial literacy in its trading community. OctaFX has also won more than 45 awards since its foundation, including the 2021 ‘Best Forex Broker Asia’ award and the 2020 ‘Most Transparent Broker’ award from Global Banking & Finance Review and Forex Awards, respectively.

 

Kadena (KDA) Retreats Amid Calls To Ban Proof-of-Work Mining

Kadena (KDA) continues to slide amid worries about a potential crackdown on proof-of-work (PoW) mining.

PoW Mining Is in Spotlight Due to Energy Shortage and Climate Change

The token of the PoW blockchain made an attempt to settle above the $17 level back at the end of December but lost momentum and declined towards the $7.00 level.

While crypto markets have been under pressure due to rising Treasury yields and fears about aggressive rate hikes from the Fed, it looks that there is an additional catalyst in Kadena’s decline.

The Vice-Chair of European Securities and Markets Authority (ESMA) Erik Thedéen has recently called for banning of the PoW mining due to concerns over energy usage and climate change.

It remains to be seen whether such calls will have any material impact on the dynamics of Bitcoin. Bitcoin makes up over 40% of the total crypto market cap, and many funds have positions in the world’s leading cryptocurrency. In this light, it is not easy to ban Bitcoin without consequences for financial markets. However, a war on smaller PoW projects is easier, and it looks that traders are worried that Kadena’s value proposition may hurt the project if regulators increase their efforts against PoW.

KDA Tests Important Support at $7.50

kda january 19 2022

KDA managed to settle below the support level at $8.40 and is testing the strong support at $7.50. In case KDA manages to settle below this level, it will move towards the next support level at $6.50.

A successful test of the support at $6.50 will push KDA towards the support at $5.75. In case KDA declines below this level, it will head towards the next support level at $4.85.

On the upside, the previous support at $8.40 will serve as the first resistance level for KDA. A move above this level will push KDA towards the resistance which is located near the 20 EMA at $9.50.

kda h1 january 19 2022

Taking a look at H1 chart, we can see that RSI has moved away from the oversold territory, so there is plenty of room to gain additional momentum if KDA settles below $7.50.

Britain to curb marketing of crypto investments

By Huw Jones and Tom Wilson

LONDON (Reuters) – Britain’s financial watchdog said on Wednesday it planned to curb the marketing of cryptoassets and other high-risk investments, a move that comes amid a boom in crypto ads and endorsements from celebrities.

The changes would strengthen risk warnings on ads and ban incentives to invest, such as new joiner or refer-a-friend bonuses, the Financial Conduct Authority (FCA) said.

A surge in investment scams, particularly online and via social media since the coronavirus pandemic began in 2020, has prompted the regulator to take action, such as refusing one in five licence applications from consumer investment firms in the year ended March 2021.

“We are concerned that too many consumers are just ‘clicking through’ and accessing high‑risk investments without understanding the risks involved,” the FCA said.

The planned rules cover high-risk investments such as cryptoassets, including cryptocurrencies such as bitcoin, as well as crowdfunding, peer-to-peer agreements, mini-bonds and speculative illiquid securities.

The FCA move comes as interest in digital currencies has surged. Across the world, a growing number of celebrities have promoted crypto companies online, with some getting into trouble as a result.

Reality TV star Kim Kardashian and boxer Floyd Mayweather Jr. are currently facing a U.S. lawsuit alleging the celebrities misled investors in their promotion of a cryptocurrency token.

The Spanish market regulator, meanwhile, scolded soccer star Andres Iniesta in November after he promoted cryptocurrency exchange platform Binance on his Twitter and Instagram accounts.

Spain moved this week to regulate crypto advertising, including by social media influencers.

Among other prominent figures to promote the emerging tech are the actor Matt Damon, who has fronted a campaign to promote digital asset platform Crypto.com.

(Graphic: FCA Graphic on High Risk Investments: https://fingfx.thomsonreuters.com/gfx/mkt/xmpjobwlmvr/FCA%20Graphic%20on%20High%20Risk%20Investments.PNG)

‘CLEAR, FAIR AND NOT MISLEADING’

The draft rules, put out to public consultation, also prepare the ground for Britain to bring promotions of cryptoassets under the watchdog’s remit for the first time, following a finance ministry announcement on Tuesday.

The watchdog plans to categorise some cryptoassets as “restricted mass market investments,” meaning consumers can only respond to promotions if they are classed as restricted, high net worth or sophisticated investors.

“Firms issuing such promotions would have to adhere to FCA rules, such as the requirement to be clear, fair and not misleading,” it said in a statement.

Removing cryptoassets from the reach of ordinary people should go a long way to stemming the growing gamified approach to investing, said Pippa Tasker, partner at law firm CMS.

Retail investors too often follow the advice of influencers on social media without researching products or their risks, she said.

Under the proposed rules, firms that approve and publish promotions must have relevant experience and understanding of the investments offered, the FCA said. People looking to make high-risk investments would also face stricter questions on their knowledge and investment experience.

PIMFA, an industry body for financial advisers, welcomed most of the proposals, but added there was a role for high-risk investments, which were not necessarily bad despite being risky.

The FCA will set out final rules in the summer. The crackdown is part of a wider strategy to buttress consumer protection, including a proposed consumer duty on firms.

(Reporting by Huw Jones Additional reporting by Tom Wilso; Editing by Iain Withers and Mark Potter)

IOTA Down by 5% in 24 Hours Following Management Changes

The total cryptocurrency market cap has dropped below the $2 trillion mark again as Bitcoin, Ether, and the other leading coins continue to underperform.

IOTA’s Co-Founder Moves to the Supervisory Board

The IOTA team announced yesterday that its co-founder Serguei Popov has moved from the Board of Directors to the Supervisory Board. The management changes come as Serguei feels it is time to focus on managerial oversight rather than day-to-day decisions and responsibilities.

IOTA is a permissionless distributed ledger that targets the Internet of Things ecosystem. The project aims to support the growth of a machine economy by promoting fee-less machine-to-machine payments. It also seeks to offer greater scalability than blockchain networks.

Since the announcement, MIOTA, the native token of the IOTA ecosystem, has lost more than 5% of its value. At press time, MIOTA is trading at $1.0490 per coin.

IOTA’s poor performance in recent days comes despite being selected for phase 2 of the EU Blockchain Pre-Commercial Procurement last week. The selection will see IOTA improve its protocol over the coming months.

MIOTA Could Soon Enter the Oversold Region

MIOTA has been underperforming since the start of the year, losing 23% of its value during that period. At press time, MIOTA is trading at $1.0490, below its 50-day moving average price of $1.2247.

MIOTA could soon enter the oversold region. Source: FXEMPIRE

The MACD line has been below the neutral zone for more than two weeks now. Meanwhile, the RSI of 39 shows that MIOTA is facing selling pressure and could soon enter the oversold region if the bearish trend continues.

If the negative performance persists, MIOTA could drop below the $1 psychological level for the first time since August.

Crypto.Com (CRO) May Soon Get to the Test of the $0.40 Level

Crypto.com Coin is currently trying to settle below an important support level at $0.43 and risks developing additional downside momentum in case the crypto market pullback continues.

Several Negative Catalysts Are in Play

Crypto.com has recently denied that $15 million worth of assets were lost to a hack, but the controversy has clearly served as an additional bearish catalyst for CRO.

Bitcoin’s move below the important support at $42,600 put additional pressure on crypto assets, while rising Treasury yields hurt all riskier assets.

Today, Treasury yields are moving higher again as traders bet on aggressive rate hikes from the Fed. In this environment, cryptocurrencies may find themselves especially vulnerable.

A Move Below the Support at $0.43 Will Push CRO Towards $0.40

cro january 19 2022

CRO is currently testing the important support level at $0.43. This support level has already been tested in January and proved its strength. RSI remains in the moderate territory, so there is enough room to develop additional downside momentum in case the right catalysts emerge.

A successful test of the support at $0.43 will open the way to the test of the next support at $0.40. If CRO declines below this level, it will head towards the next support at $0.38.

On the upside, CRO needs to settle above $0.45 to have a chance to gain upside momentum in the near term. The next resistance level for CRO is located at $0.47. In case CRO gets above this level, it will head towards the next resistance at the 20 EMA at $0.4840.

cro h1 january 19 2022

Taking a look at H1 chart, we can see that shorter-term RSI also remains in the moderate territory, so CRO will have a good chance to develop additional downside momentum in case it manages to settle below the important support level at $0.43.

The near-term trend is bearish, and CRO looks ready to move lower amid broader crypto market pullback which is triggered by rising Treasury yields.

THETA Rallies After Payment Option Goes Live on the Curate Marketplace

The first part of the Theta and Curate partnership has been completed, and the second part will see Theta NFTs launch on the Curate marketplace.

THETA/TFUEL Payment Options Now Available on Curate

Theta is a decentralized video delivery network. The platform is powered by the users and operates on a dedicated blockchain (Theta Network). The network is designed to reduce the costs involved in delivering content by creating a mesh network of shared content.

On Monday, the Theta Network team announced that the first part of its collaboration with the Curate marketplace is complete. This means that THETA and TFUEL payment options are now available on the Curate marketplace.

Theta Fuel (TFUEL) is the operational token of the Theta Network. It is used as the gas token to complete transactions on the network, such as deploying or interacting with smart contracts.

The Theta team said they are now working on the second part of the partnership, which will involve Theta nonfungible tokens (NFTs) being tradable on the Curate app.

THETA has been performing well in the last few hours. At press time, THETA is trading at $4.1, up by more than 5% in the last 24 hours.

THETA Could Break Past its 50-day EMA Level Soon

The THETA/USD daily chart shows that the cryptocurrency is bullish at the moment. THETA looks likely to top its 50-day moving average price of $4.52 over the next few hours if the positive performance is maintained.

THETA’S RSI is out of the oversold region. Source: FXEMPIRE

The MACD line is still below the neutral zone as THETA has been underperforming in recent weeks. The RSI of 46 shows that THETA is out of the oversold zone and could move higher if the bulls remain in control.

THETA reached an all-time high of $15.72 on April 16, 2021. However, the coin has lost more than 73% of its value since then.

Can Crypto Really Beat Inflation?

Crypto has been vaunted variously as an inflation-proof asset and a digital answer to gold. But just how accurate are these descriptions? With inflation on the rise, the answer could well be around the corner.

The Problem of Inflation

Everyone with fiat savings fears the dreaded “i” word. But after years of low or almost no inflation in many parts of the world, it suddenly seems we cannot escape talk of a coming inflationary storm.

Much of the economic talk in 2021 centered on inflationary hotspots in Turkey, Argentina, Venezuela and the like.

Source: https://dolartoday.com/indicadores/; http://www.bcv.org.ve/estadisticas/tipo-de-cambio
Graphic: Nicolas Perrault III

But while these were once seen as outliers, nations that have been living without inflation for decades are now posting worrying figures. In countries like the UK and the United States, central banks are now finding themselves under increasing pressure to raise interest rates to fight back.

However, the problem cannot be so easily swept under the carpet. Wages in the West are on the rise, food prices are shooting up worldwide and energy price hikes are becoming commonplace.

If inflation is now a given, it is only logical to expect fiat currency holders to respond. Pressures like these naturally push investors toward “safe assets” – traditionally blue-chip stocks and gold. But more recently, the “safe asset” category has a new member: crypto.

Does Crypto Work as a Store of Value?

Many major economists say they think so, with some calling Bitcoin and the like “digital gold.”

One notable example is the Visa CEO Alfred Kelly, who last year said: “We see all [cryptoassets] as digital gold. They are predominantly held as assets that are not used as a form of payment in a significant way at this point.”

Just as gold or “safe-bet” stocks often experience price volatility, they are simply too valuable to bottom out. They are also a safe distance from currency markets, meaning that they might get dragged into periods of fiat-related volatility, but can never (or so the theory goes) experience the same kind of hyperinflationary pressures that can cause a currency to collapse, à la Germany in the 1920s.

While the Turkish Lira and the Argentine Peso are not quite at the same level, they too are edging ever closer to inescapable currency chaos.

In both nations, crypto adoption is flying up. Turks make a million crypto transactions a day, Reuters reported last month. In Argentina, even the President has called crypto a “hard currency, somewhat,” with the power to “nullify inflation.”

Bitcoin prices over the past five years

Is There Really Any Truth to All This?

This month, Rio de Janeiro’s Mayor said that he intends for the Brazilian city to keep 1% of its treasury reserves in crypto. Other cities have taken a similar tack, while there is now no shortage of mainstream financial advisors speaking to media outlets like CNBC and Time about the benefits of buying crypto. Most now advise investors to keep at least a small portion of crypto (10% or less, mostly) in their portfolios.

It looks like global politicians are starting to take this advice to heart.

Could Crypto Actually Replace Fiat?

Most critics think that crypto’s weak point is its use as a form of payment. Visa’s Kelly is just one of those who have pointed out that people seem happy to buy, trade and hold crypto, but seem unwilling to spend their coins on goods or services.

High gas fees, slow and transaction prices are often cited as prohibitive factors, while crypto pay incentives have thus far failed to blossom. But micro-payment-friendly solutions have been mooted, including the Bitcoin Lightning Network, which has been championed by the Bitcoin-keen government of El Salvador’s President Nayib Bukele.

Bukele’s government last year adopted BTC as legal tender, and has since snapped up hundreds of tokens using public funds. That means that crypto is now being put to the test in the Central American nation as not only as a treasury reserve asset (a store of value), but also as a means of payment.

As these are perhaps the two key properties an asset needs to possess if aspires to be called a currency, perhaps we will find out very soon if crypto really has what it takes to go toe-to-toe with fiat!

U.S. regulators must provide more clarity on crypto rules, says BNY Mellon CFO

By Michelle Price

WASHINGTON (Reuters) – U.S. regulators need to provide more clarity on the rules of the road for cryptocurrencies and other digital assets amid ongoing confusion over what activities are allowed, a top banking executive said on Tuesday.

“We’re hoping for more clarity around digital assets,” Emily Portney, chief financial officer for Bank of New (BNY) York Mellon Corp, the country’s tenth largest lender, told Reuters in an interview.

“Frankly, it’s a bit confusing about who actually regulates digital assets and especially crypto … and of course exactly what you can or cannot do,” said Portney, speaking after the bank posted a 17% rise in fourth quarter profits.

Portney’s comments highlight growing frustration among banking industry executives as U.S. President Joe Biden’s regulators have taken a cautious approach to digital assets. With cryptocurrencies surpassing $3 trillion in November, banks are keen to enter the space but many feel they cannot launch new products or expand existing offerings until the rules are clearer.

BNY Mellon, which specializes in holding and servicing assets on behalf of clients, in February announced it was developing a custody and administration platform for digital assets.

The Office of the Comptroller of the Currency (OCC) said in November that banks must obtain written permission from their bank supervisors before engaging in cryptocurrency-related activities, including custody services, a reversal from the Trump administration’s policy which gave banks permission to provide crypto custody services.

The OCC and other regulators are engaged in a “policy sprint” to understand where to offer regulatory clarity for banks on cryptocurrencies. That effort will likely inform new guidance or rules, which could be released as soon as this year.

“A lot of the activity is happening in I guess what I would call the shadow banking system just because of the lack of clarity,” said Portney.

(Reporting by Michelle Price; additional reporting by Hannah Lang; Editing by Marguerita Choy)

Bitcoin and Ether Resume Slide, Why ADA Could Rally Again

Bitcoin

After multiple failures above $43,500, Bitcoin price started a fresh decline. There was a clear break below the $43,000 and $42,000 support levels. It is sliding steadily and seems like the price could decline towards the $41,250 level.

The next major support sits near the $40,400 level, below which there is a risk of a larger decline.

Bitcoin

If there is a fresh recovery, the price could face resistance near the $42,000 level. The main breakout zone is now forming near the $42,400 level and a connecting bearish trend line on the hourly chart.

Ether (ETH)

Ether also failed to surpass the $3,400 resistance zone. There was a fresh bearish reaction below the $3,300 support zone. The price declined below the $3,200 support zone and the 21 simple moving average (H1).

It is slowly moving lower and declining towards the $3,100 support. The next key support is near $3,000, below which the bears might aim a larger downtrend.

Ether

On the upside, there is a key bearish trend line forming with resistance near $3,170 level on the hourly chart. The next key barrier is $3,250, above which the price could start a steady increase.

Cardano (ADA)

Cardano (ADA) started a major decline from well above the $2.20 level. ADA declined below a couple of important support levels and extended decline below $1.50.

However, it found support near the $1.20 zone. A base was formed near $1.20 and started a fresh increase. There was a clear move above the 23.6% Fib retracement level of the downward move from the $2.32 swing high to $1.08 low.

There was also a move above a connecting bearish trend line with resistance near $1.25 on the daily chart. ADA settled above the $1.40 level and the 21-day simple moving average.

ADA

It tested the $1.60 level and is currently correcting lower. It is slowly moving lower and declining towards a major support at $1.45 and $1.42. Any more losses might find a strong buying interest near $1.25.

A downside break below $1.25 might start a strong bearish wave. The next stop for the bears could be $1.05. On the upside, the price is facing resistance near the $1.55 level.

The next major resistance is $1.72 and the 50% Fib retracement level of the downward move from the $2.32 swing high to $1.08 low, above which it could rise towards $2.00.

BNB and DOT price

Binance Coin (BNB) is moving lower towards the $450 support zone. A clear break and close below $450 could push the price towards the $420 level. The next major support is near the $400 level.

Polkadot (DOT) is down 5% and is trading well below the $28.00 level. An immediate support is near the $24.00 level. The main support is near $22.50, below which the price could dive towards $22.00.

A few coins are rising, including ETC, THETA, and STX. Out of these ETC rallied over 7% and surpassed the $32.50 level.

More Than 1.1 Million Wallets Now Hold Shiba Inu Meme Coin

Shiba Inu is the second-largest meme coin in terms of market cap, and it has been gaining adoption in recent months.

Shiba Inu Sets a New Milestone

Shiba Inu is one of the leading cryptocurrencies in the world in terms of market cap. It is currently the second-largest meme coin, behind Dogecoin. Shiba Inu (SHIB) is a dog-themed meme cryptocurrency that is hosted on the Ethereum blockchain.

Since its creation in November 2020, Shiba Inu’s value has increased by 49,539,173%, making it one of the best-performing cryptocurrencies over the past two years.

Shiba Inu reached a new milestone yesterday. According to the latest data obtained from WhaleStats, the total number of wallets holding SHIB tokens now stand at 1,145,212.

WhaleStats added that the top 1000 Ethereum (ETH) wallets are holding 51,660,947,525,321 SHIB ($1,481,475,410).

This latest development means that an increasing number of investors are buying SHIB despite the cryptocurrency’s poor performance in recent months. SHIB is currently trading at $0.000027, down by 67% from the all-time high of $0.000086 it attained on October 28, 2021.

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SHIB Continues to Struggle Below its 50-day EMA

The SHIB/USD daily chart shows that the cryptocurrency has been underperforming in recent weeks. SHIB’s technical indicators are negative at the moment, thanks to the losses recorded recently.

SHIB’s RSI is heading to the oversold region – Source: FXEMPIRE

SHIB is trading below its 50-day moving average price of $0.000033. The MACD line has been below the neutral zone since November, indicating a strong bearish trend for Shiba Inu.

The RSI of 39 shows that SHIB could soon enter the oversold region if the existing market condition is sustained.

If the bears remain in control, SHIB could lose its first major support level at $0.000022 over the next few hours. In the event of an extended bearish performance, SHIB could trade below the $0.000020 level for the first time since October.

Shiba Inu would need the support of the broader cryptocurrency market to enable it to come out of its ongoing bearish trend.

Bitcoin and Ethereum Elliott Wave Cycles Eye Down

We see stocks in risk-off mode at the same time which makes US currency very attractive, so those who are selling stocks will also look to go out of risky and volatile assets like cryptocurrencies. That been said, we think that under these circumstances, there is room for more potential weakness on major BTC and ETH coins as described lower

Bitcoin, BTCUSD is coming even lower in the 4-hour chart, breaking even below December 2021 lows, ideally within wave (C) or (3) and there can be room for more weakness, at least towards 39k-37k area for wave ©. So, we remain bearish and we should be aware of more downside pressure while the price is below strong trendline connected from the highs and below 52200 invalidation level.

BTCUSD 4h Elliott Wave Analysis

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Ethereum, ETHUSD is also coming down, below December 2021 lows as expected into wave C with room down to 2800 area or slightly lower; a leg that should be completed by a five-wave cycle. Just have in mind that we will need to see strong bounce and recovery back above 3600 level to confirm a completed wave C of an A-B-C correction, but for now we see current recovery as a sub wave (4).

ETHUSD 4h Elliott Wave Analysis

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Bitcoin investors dig in for long haul in ‘staggering’ shift

By Medha Singh and Lisa Pauline Mattackal

(Reuters) – As bitcoin heads into 2022, a growing cohort of long-term investors is doubling down on its stashes of the cryptocurrency, hoping a December dip was merely a festive blip.

Some industry watchers point to the underlying stability of such long-term investments as potentially promising indicators for the capricious cryptocurrency.

Since last July, for example, the amount of bitcoin held in digital wallets with no outflows for more than five months has been steadily increasing, according to digital currency brokerage Genesis Trading.

In addition, the amount of the bitcoin held in “illiquid” wallets – which spend less than quarter of their inflows – is also rising, meaning fewer coin are being actively traded, it added, citing wallet data across several exchanges.

“The number of bitcoins that haven’t moved in over a year has been climbing since July,” said Noelle Acheson, head of market insights at Genesis Trading. “That’s pretty staggering.”

Many investors were nonetheless sent diving for cover in December when the world’s most popular cryptocurrency sunk almost 20%, roughly the same as the second-biggest coin ether, with risk appetite hit by inflation fears and a quicker pace of interest rate hikes from the U.S. Federal Reserve.

While bitcoin and ether both posted gains last week – up 2.9% to $43,107 and up 6.3% to $3,350, respectively – they are still some way off their 2021 highs of $69,000 and $4,868

‘STRONG HANDS’

Many cryptocurrency experts caution that no one has been known to reliably predict bitcoin’s characteristically wild price swings. In 2017, for example, it went from about $1,000 to around $20,000. In early 2020, it sunk below $4,000 at one point before beginning a dizzying rise.

Yet advocates of bitcoin and other coins say the increasing acceptance of cryptocurrencies in mainstream financial and investing in recent years has shored up the sector.

Cryptocurrency research firm Delphi Digital said their research showed a similar shift towards bitcoin being held for longer period by investors, which it said “illustrates a transference from shorter-term ‘weak hands’ to long-term ‘strong hands’.”

Crypto data platform Coinglass’s bitcoin Fear & Greed index, has wavered between 10 and 29 since the start of the year, which could be an indicator of a possible market bottom and buying opportunities, according to Will Hamilton, head of trading & research at Trovio Capital Management.

“Previous market bottoms in July 2021 and March 2020 correlated with Fear and Greed scores of 19 and 10 respectively,” he added.

For the uninitiated, 0 indicates “extreme fear” and 100 is “extreme greed”

MUSK AND DOGE

There were, meanwhile, more headlines for cryptocurrencies last week.

Meme-based dogecoin stole the spotlight after Tesla CEO Elon Musk tweeted that the company would accept it as payment for select merchandise.

The tweet sent dogecoin up nearly 12%.

“If more people are looking to buy Tesla merchandise with dogecoin then there’s more demand,” Acheson said, adding that this move could improve fundamental factors for dogecoin.

Cryptocurrency Solana was another altcoin in focus, with Bank of America analysts saying the Solana blockchain could pull market share away from ethereum and “could become the Visa of the digital asset ecosystem”.

Elsewhere, bitcoin miners bounced back from mining crackdowns in China and the recent unrest in Kazakhstan, one of the world’s primary centres for bitcoin mining.

Bitcoin’s mean “hash rate” a measure of the power of the bitcoin computing network, touched an all time high of over 215 million terahashes per second on Thursday, according to blockchain data provider Glassnode.

(Reporting by Medha Singh and Lisa Mattackal in Bengaluru; Editing by Vidya Ranganathan and Pravin Char)

Bitcoin Looks Ready For Another Test Of The $40K Level

Bitcoin looks weak technically and may find itself under more pressure if Treasury yields continue to move higher.

Higher Yields Push Traders Out Of Riskier Assets

The yield of 2-year Treasuries has recently managed to settle above the psychologically important 1.00% level as traders sold U.S. government bonds on inflation fears.

Markets believe that Fed will be forced to raise rates aggressively (perhaps, more than 4 times this year) and may also cut the size of its balance sheet, which will push Treasury yields higher.

In this environment, riskier assets find themselves under material pressure. S&P 500 futures are down by roughly 1% in premarket trading. The tech-heavy Nasdaq is down by more than 1.5%.

Not surprisingly, cryptocurrencies are also under pressure. The recent dynamics of Bitcoin indicate that financial markets do not view it as a hedge against inflation. Bitcoin is still considered to be a speculative asset which declines in sync with other riskier assets.

That said, it should be noted that Bitcoin is firmly holding its top position in the crypto world. Bitcoin Dominance, which shows the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has recently moved back above the 40% level which indicates that Bitcoin declined less than other cryptocurrencies during the current pullback.

Bitcoin Could Soon Test The Support At $41,000

bitcoin january 18 2022

Bitcoin has recently managed to settle below the support at $42,600 and is moving towards the next support level at $41,000.

A successful test of the support at $41,000 will push Bitcoin towards the key support level at $40,000. In case Bitcoin manages to settle below this level, it will gain additional downside momentum and head towards the $39,000 level. This move may be very fast.

On the upside, Bitcoin needs to settle back above $42,600 to have a chance to gain upside momentum in the near term. The next resistance level for Bitcoin is located at the 20 EMA near the $44,000 level. A move above this level will push Bitcoin towards the resistance at $45,500.

Swiss National Bank against issuing retail central bank digital currency

ZURICH (Reuters) – The Swiss National Bank does not see any overall benefit from issuing a central bank digital currency (CBDC) to be used by the general public and used in day to day transactions, governing board member Andrea Maechler said on Tuesday.

“We believe the risks outweigh the benefits,” Maechler told a financial conference held in Frankfurt, saying a retail CBDC meant central banks taking on the risks carried by the private sector and increased the risk of bank runs.

There also needed to be a balance struck between safeguarding privacy and the potential misuse of retail CBDCs in criminal activity, Maechler said.

Financial inclusion was also not a sufficient argument for CBDCs in Switzerland, Maechler said, with almost 100% of the country’s working population having access to bank accounts, while cash was still widely used.

“This does not mean the SNB is not interested in CBDC, but our focus is to look at the role that wholesale CBDCs could play,” Maechler said, referring to their use in transactions between financial institutions like banks.

The SNB last week said it has successfully used digital currency to settle transactions involving five commercial banks, and has also looked into how the technology can be used to improve cross-border payments..

Still, Maechler remained cautious.

“None of these projects are an indication that the SNB is ready to issue a wholesale CBDC,” she said.

(Reporting by John Revill, editing by Silke Koltrowitz)

Here’s Why Gaming is the Top Passive Earner in the Metaverse World

The internet continues to provide unimaginable possibilities to users worldwide. Through it, the gaming economy has become more popular and worth more than $100B as of 2020. Blockchains and cryptocurrencies are further enhancing the gaming experience with a decentralized financial structure.

Coming into the limelight is the metaverse concept which allows users to interact in virtual environments. Basically, a metaverse ecosystem blends blockchains, augmented, and virtual realities. The innovative idea makes it possible to move to various locations, purchase, and maintain assets. Besides the entertainment experience, metaverse enables users to generate fortunes from playing games.

In that regard, this article sets out to discover why gaming is the top passive earner in the metaverse world.

Impacts of Metaverse Gaming

Data reveals that the overall market cap for metaverse coins is almost hitting the $100B mark. The reading suggests that for some reason, numerous users find metaverse gaming as a worthwhile activity.

As such, some of the reasons that make metaverse gaming an appropriate source of securing passive incomes include:

Fast transactional services

Blockchain technology empowers metaverse games with quicker financial services. The technology supports local and cross-border trades which use minimal execution periods.

Compared to traditional systems, blockchains help reduce transactional delays. Furthermore, players can mint and distribute digital assets such as non-fungible tokens (NFTs) and in-game assets in a fast manner.

Transparency

The digital asset economy advocates for transparency through blockchains. Before, there were limited options for earning rewards and trading in-game assets. The current metaverse gaming system is promoting several earning opportunities to players.

Hence, it encourages the growth of a financial system where users can trade their assets. At this point, blockchains provide a better solution to support and manage all trading details.

What’s more, publishing the transaction information encourages transparency since users can view every record.

Decentralization

Metaverse games help promote the idea of adopting a decentralized structure. Decentralization gives users the power to make several decisions related to the gaming platform.

Transaction verification processes are also done by ordinary members of the community. In the end, users can accumulate adequate rewards for performing these tasks.

Ownership

Engaging with metaverse games encourages digital ownership of items/assets. It therefore means that players can possess digital assets the same way they can own physical items.

Endless Possibilities

Anything is possible in the metaverse gaming world. Players get to take part in unique quests, own digital items, or even develop their own universe.

Therefore, the entertainment aspect of metaverse worlds enhances the growth of a virtual economy. Users get to play, interact, and receive an income from a digital universe.

Security

Despite facing several cyber-related threats, metaverse games apply several security features for their users. Auditing is an example of the steps that gaming projects take to maintain security.

Metaverse game developers can eliminate bugs found in the platform’s code all thanks to the existing security firms. Blockchains also provide another layer of security considering they are spread across various computers. Thus, it may be difficult to hack every user maintaining the blockchain network.

Most metaverse games let users remain in custody of their assets and earnings. Such advantages boosts security and financial freedom since players are in control of their holdings.

Privacy

Maintaining an anonymous environment is one of the core principles of blockchains. It removes the need for submitting confidential data which may fall into the wrong hands. In that case, players only work with their gaming usernames and wallet addresses to conduct transactions.

Applying privacy in metaverse games makes it easier to counter identity theft cases.

Cheaper Transactions

Traditional financial services mostly charge higher fees to process transactions. Shifting to metaverse gaming allows users to carry out their transactions at an affordable charge.

Trading fees are cheaper due to the application of blockchain technology. Players can therefore trade, buy, or sell their assets at an affordable fee.

Play-to-Earn: the Emerging Concept in the Metaverse Gaming World

Play-to-earn mechanisms work as a rewarding system whereby users can earn NFTs. On top of that, the system allows players to secure digital tokens that may have real-world utility.

While the concept may not be relatively new, metaverse games are taking up this idea to attract more participants. Axes Metaverse presents a similar P2E system where users can earn tokenized assets or NFTs.

As mentioned earlier, users are sometimes unable to access rewards or trade in-game assets. Through Axes Metaverse and NFTs, players can earn real money while playing mobile games.

Final Word

The evolution of technology is paving the way for several life-changing innovations- such as the metaverse world. Gaming companies are taking advantage of metaverse worlds to create limitless virtual realities. Blockchains and digital currencies further empower the digital universe with a financial structure to enhance the players’ experience.

Other than entertainment, players can come across income-generating opportunities in the virtual world. The games offer several prizes which could range from digital tokens to gaming items/characters.

More importantly, every user has control over their digital assets. Such benefits fuel the growth of metaverse games even as the number of internet users increases.