Sushi Summar Drama: VCs Dumping Tokens & Counter-Proposing Premium Buy to Get Their Hands on Millions of SUSHI

Popular decentralized finance  project Sushi is now aiming to attract institutional investors, a growing trend in the DeFi sector as seen with Compound Finance’s fixed 4% interest rate feature and Aave launching Aave Pro.

But Sushi thrives in drama, and after a controversial beginning this summer, we have yet another spectacle.

“To onboard institutional investors,” a new proposal called “Sushi Phantom Troupe – Strategic Raise” has been introduced that offers to use a portion of 51 million SUSHI, currently worth $357 million.

Following an “insane” month in terms of volume and an “attractive pipeline of upcoming releases,” the distribution as part of the broader Treasury Diversification plan has proposed up to $60 million, 25% of Developer Treasury to VCs with 10 million allocated to community members.

“SushiSwap has been a DeFi Community darling since inception, and at this juncture, we feel that it’s ready to welcome established crypto funds and cement SushiSwap as a household DeFi blue chip,” reads the proposal.

Sushi aims to raise capital and deploy it into productive assets via safe yield solutions, including Yearn vault, seed liquidity in key Kashi markets, and LP in a stable pool on Sushi to generate liquidity.

The fresh capital will be raised by selling its $60 million worth of tokens (SUSHI) to VCs, which will be converted into xSushi and receive xSushi yield whilst vesting for a “6-month cliff followed by 18-month linear vesting.”

These SUSHI tokens are proposed to be offered at a 20% to 30% discount to 30-Day TWAP.

The proposal has mentioned a “confirmed strategic Investor list,” which includes the likes of Spartan, Dragonfly Capital, Polychain, Blockchain.com, Pantera Capital, Jump, 3AC, Zee Prime, CMS Holding, DeFiance Capital, and others.

“Most interested parties already have stakes in SUSHI, and voting through this capital raise via governance should be a formality,” it added.

What seems to be in anticipation of buying back at low prices, some funds are speculated to have sold their SUSHI sending the price of the token crashing by over 25% to $6.39 in about the last nine days when the proposal was first introduced.

Most crypto VCs are chasing 100x returns, “generally focus on private market where their perceived edge is stronger,” said Arthur Cheong, founder of DeFiance Capital, noting while institutions have arrived, they are not venturing beyond Bitcoin.

Unlike the traditional market, crypto doesn’t have mutual/passive index funds to smoothen the volatility, and “the buying pressure of all VC unlocked bags almost 100% go to retails, with occasional trading in and out by the crypto hedge funds and prop trading firms.”

The proposal, however, is receiving some flak with Jeff Dorman, CIO at Arca, the digital asset management company that holds 7.51% of the xSUSHI circulating supply, saying it is “value-destroying,” and has made a counter-proposal.

“Sushiswap does not need money… We agree that there is merit to diversifying the Treasury, but not at current depressed prices,” wrote Dorman, who advocates for a diversified community of many smaller investors than a concentrated group of large passive investors.

Instead of a discount, Arca actually proposes to buy at a higher price with a minimum purchase of $10mm at the first offering price of $7.04. SUSHI is currently trading at $7, down 70% from its all-time high of $23.38 four months back.

The discount and short lock-up are “not indicative of a vibrant growth project like SUSHI,” and Dorman believes SUHSI is currently trading at a massive discount to its fair value.

“Now is absolutely not the time to be selling,” he added.

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Author: AnTy

$9.5T BlackRock CEO says, Investors May Not Come to Them for Crypto, Not That “Type of Demand”

$9.5T BlackRock CEO says, Investors May Not Come to Them for Crypto, Not That “Type of Demand”

This could be why Larry Fink didn’t take a single question about crypto in the past two weeks while on his business travels but for the US stock market, he believes “the trend line is still going to be upward,” due to “the amount of cash that is looking to be put to work.”

BlackRock CEO Larry Fink said he does not see much demand for crypto assets.

In an interview with CNBC Squawk Box published Wednesday, Fink said while he has been asked about Bitcoin and cryptos, in the past two weeks of his business travel, not a single question has been asked about digital assets.

“That is not part of the focus on retirement and long-term investors,” he said, adding, “We see very little in terms of investor demand on those types of things.”

While acknowledging that that kind of demand may not come to the asset manager, he said retirement funds are more interested in their portfolio over the long term. Fink said,

“Quite frankly, they may not come to BlackRock for that type of demand, but I would say for all the pension funds and insurance companies, for all that RIAs that we are talking to for their clients on behalf of their retirements, the dialogue is about how should I navigate my portfolio and how should I think about my portfolio over the long horizon.”

Previously, the CEO of the world’s largest manager said the leading cryptocurrency “had caught the attention and the imagination of many people” who are “fascinated” by it but noted that it hadn’t proven its long-term viability.

Just back in April, he said, Bitcoin can become a “great asset class.”

At the time as well, he said, “We make money on it, but I’m not here to tell you that we’re seeing broad-based interest by institutions worldwide,” adding that institutions may be “talking to somebody else.”

Upwards Trajectory

The asset management firm reported an adjusted quarterly profit of $10.03 per share during the quarter, beating the estimate, and had its assets under management surging to a record $9.49 trillion.

Still, BlackRock today fell 1.4% in premarket action.

Meanwhile, in his interview with CNBC, Fink said the long-term trend remains strong while talking about the US stock market. But, of course, he’s “not” saying that it’s going to be a straight-line upward. He added,

“But overall, with the amount of fiscal stimulus and monetary stimulus, and more importantly with the amount of cash that is looking to be put to work, I believe the trend line is still going to be upward.”

This, combined with low or negative rates is why, “Asset owners are the biggest beneficiaries of monetary policy,” he said.

As for meme stocks, Fink is hoping for improved financial literacy so that instead of only focusing on speculating, more people are investing in the long run — “I look at this as a possibly good first step,” he said.

However, he does not believe that inflation will be transitory as the Federal Reserve has been emphasizing; rather, it will be “more systematical.” Fink said,

“I believe it is a fundamental, foundational change in how we navigate economic policy…now we are saying jobs are more important than consumerism.”

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Author: AnTy

82% Wealth Managers & Institutional Investors to Dramatically Increase Crypto Holdings within 3 Yrs

82% of Wealth Managers & Institutional Investors say They will Dramatically Increase their Crypto Holdings within 3 Years

Only 7% of this new survey respondents said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holding.

Four out of ten institutional investors and wealth managers from the US, UK, France, Germany, and the UAE who have exposure to crypto-assets revealed that they will dramatically increase their holdings between now and 2023.

These findings were revealed by a new survey conducted by Nickel Digital Asset Management in early June. At the time, Bitcoin’s price was between $30k and $35k.

According to the firm, in most cases, institutional investors with holdings in cryptocurrencies have very low levels of exposure as they start testing the markets. Anatoly Crachilov, co-founder and CEO of Nickel Digital said,

“The number of institutional investors and corporates holding bitcoin and other cryptoassets is growing, and their confidence in the asset class is also increasing.”

The survey further reported that while 82% expect to increase their exposure, only 7% said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holdings.

When it comes to what is driving this interest, 58% of respondents said the main reason for investing more in digital assets is the long-term capital growth prospects of crypto assets. This was followed by 38% saying they are getting more comfortable and confident in holding the asset class.

37% cited more leading fund managers and corporates investing, giving them more confidence to invest, with 34% saying an improving regulatory environment is also a key factor in wanting to raise their allocation.

Many of these professional investors who already hold crypto and are looking to increase their exposure are driven by several factors, including strong market performance during the Covid-19 crisis, said Crachilov.

Crachilov also pointed to more established investors and corporations endorsing the market, and the improving infrastructure and regulatory framework as other factors for the same, saying, “These trends will continue to expand.”

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Author: AnTy

Where’s Retail? Individual Investors Pouring Billions in Stocks But The Tide is Now Turning

Individual investors are now accounting for a bigger share of US equities trading volume with new brokerage accounts by them going above 10 million, already the first half of 2021 roughly matches the total accounts created throughout 2020.

Volume on cryptocurrency exchanges is drying fast, and gas fees on the Ethereum Network is staying at a single digit.

Mere $35 billion is currently recorded in exchange volume, down from nearly $90 billion in late May, representing a fall of more than 60%. The same is the case for Google Search volumes for crypto assets, NFTs, and centralized and decentralized exchanges. New Twitter followers in space have also gone down, much like the ranking of crypto apps on the App store.

The crypto market may have seen an exodus of retail, but the stock market is seeing an increased stream of retailers.

Retail has poured in a net $140.57 billion into the US market this year, up 33% during the same period a year ago and over six times the amount invested by them in 2019, according to data from Vanda Research.

Inflows surged again in recent weeks, but the tide is now turning, having fallen 17% over the past week.

“This is changing the way that one potentially trades these spaces—gone are the days when you can buy and hold a small-cap name and hope it yields 50% over time. It almost does that now in a matter of days,” said Viraj Patel, global macro strategist for Vanda Research.

Growing Share

The flood of new retail traders that started last year during the coronavirus pandemic has now turned into a leading indicator.

According to Goldman’s Derivatives Research group, retail trading activity is an indication of a large number of traders “paying attention” to a stock.

Because retail is not short-sellers and chooses between “buying” or “not-buying” the stock, it results in temporary net-buying flow from retail investors, pushing the stock up temporarily.

This volatility then attracts the institutional investors’ attention, who then uses their understanding of options market positioning, delta hedging requirements of market makers, and fundamental valuation to position for outsized profits.

And at some point, retail traders become a smaller percentage of overall volume resulting in a significant drop in retail trading as a percentage of total volume in the days ahead of the ultimate peak and subsequent decline.

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A WSJ report published Friday shared that new brokerage accounts opened by individual investors in the first half of 2021 have already roughly matched the total created throughout 2020.

These new individual brokerage accounts have hit more than 10 million, according to estimates from JMP Securities.

Individual investors’ share of US equities trading volume, which surged to 20% last year, roughly double the figure from a decade before, has also increased to 26%, according to data from Larry Tabb, head of market-structure research at Bloomberg Intelligence.

Some online brokerages account for a sizable chunk of this, with Robinhood Markets accounting for 4% and E*Trade estimated to be 2.4%.

While the traditional market is seeing increased participation from retail, the crypto market is getting institutionalized. However, it is possible this is a rotation of profits from crypto into stocks which may get rotated back into crypto after some time. But that’s to be seen, for now, the market is devoid of much activity, and prices are trading sideways in a “crab market.”

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Author: AnTy

Senator Ted Cruz: Investors Attracted to ‘BTC as a Hedge’ Against Inflation Due to Biden’s $7T Spending

Senator Ted Cruz: Investors Attracted to “Bitcoin as a Hedge” Against Inflation Due To Biden’s $7T Spending

Senate Foreign Relations Committee member Ted Cruz, R-Texas, believes Bitcoin has a lot of potential.

In an interview with Sean Hannity on Fox News, when asked about the cryptocurrency, Sen. Cruz said its growth is the result of inflation caused by monetary policy.

“I think it has a lot of potential. I think we’re seeing enormous growth in it. I think part of the reason we’re seeing people go to Bitcoin is because we’re on the verge of an inflation crisis. Joe Biden has proposed $7 trillion in spending and we’re seeing inflation.”

Cruz pointed out how the prices across different sectors have been going up, which is prompting people to turn to BTC as a hedge.

“We’re seeing lumber going up, homes going up, oil going up, gasoline going up, energy going up, commodities going up and I think people are going to Bitcoin as a hedge against that.”

However, he noted that there is an inherent risk with Bitcoin as an investment.

“That being said, it is a new cryptocurrency. To be honest, I don’t understand it. I think a lot of people don’t, and so I would say it has upside, but there’s risk there.”

Cruz’s bitcoin endorsement could be of significance as Bitcoin is particularly popular among millennials who see it as digital gold, a store of value, while 37% of Fox News viewers are 65 or older, according to research from 2020.

Not only the older generation has found it hard to grasp the cryptocurrency, but they are also the ones with the big pockets, with the biggest ever generational wealth transfer involving trillions of dollars underway.

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Author: AnTy

SEC Extends Approval Window On WisdomTree’s Bitcoin ETF Decision

Institutional investors have been on the long path of listing a crypto ETF in the US, and by the looks of it, the wait may be much longer.

SEC Delays ETF Decision Again

The U.S Securities and Exchange Commission (SEC) has announced that it would be extending its decision on WisdomTree’s proposed Bitcoin exchange-traded fund (ETF) listing.

The announcement made on May 26 said that this decision is anchored on a follow-up listing by the Cboe BZX Exchange for the same Bitcoin ETF, which sought to list and trade shares of the WisdomTree Bitcoin Trust.

Even though the proposal has received varied comments, the SEC says it needs more time to consider the proposed rule change and the Bitcoin ETF comments. Therefore it would be extending its decision window from May 30 till July 14, 2021.

This is not the first Bitcoin ETF that has to wait on a decision. According to an April announcement, the digital assets investment firm also saw its Bitcoin ETF proposal delayed by another 90 days. Just like the WisdomTree decision, the SEC cited rule changes as a reason behind the delay. It has NOW selected June 17, 2021, TO MAKE A FINAL decision.

The SEC has seen a flood of Bitcoin ETFs, with most institutional investors seeking approval for a Bitcoin ETF. But unlike its Canadian counterpart, the SEC has remained adamant in its decision to approve any Bitcoin ETF.

According to the top regulatory dog, crypto-assets like Bitcoin are susceptible to market manipulation and fraud. Even though a lot has changed in the past few months, with the crypto market surpassing a $2 trillion valuation, the SEC has not approved any of the eight proposals on its table.

Canada Leading The Crypto ETF Space

The SEC’s continued denial of a Bitcoin ETF is tied to the regulatory uncertainty prevalent in the US crypto space. Even as cryptocurrencies are gaining wide adoption in the American nation, federal agencies have not provided any guidelines on cryptocurrencies.

This continued ambivalence has seen the SEC lock horns with blockchain firms it feels do not have the necessary permits to operate in the US market.

Making a case about the SEC’s aggressive approach to the nascent industry, embattled digital payment firm Ripple Labs CEO Brad Garlinghouse said this is forcing many crypto startups to friendlier climes.

The Ontario Securities Commission has taken an entirely different approach. Starting with the Purpose Bitcoin ETF approval, the security commission has greenlighted over eight crypto ETFs in its region.

Not to be outdone, the Brazil Securities and Exchange Commission (CVM) also approved QR Capital’s Bitcoin ETF proposal. According to a March 19 tweet, the fund would trade under the ticker QBTC11

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Author: Jimmy Aki

Simplify Buying GBTC at a Discount for its ETF

Crypto assets’ non-correlation to equity and fixed income markets and a “vast majority of U.S. investors have yet to invest in crypto” has Simplify investing 10% of the fund in Bitcoin.

Simplify Asset Management has announced the launch of Simplify US Equity plus GBTC ETF.

Filed with the US Securities and Exchange Commission (SEC) on May 23, the fund will invest at least 80% of its net assets in equity securities. The vast majority of the fund’s equity portion is invested in the iShares Core S&P 500 ETF and the remaining in futures contracts.

10% of the fund is invested in Bitcoin (allocation capped at 15%) through Grayscale Bitcoin Trust (GBTC). Paul Kim, CEO of Simplify, said in a statement,

“Recent research has shown how uncorrelated crypto assets are to equity and fixed income markets, making them a possibly compelling part of a well-diversified portfolio.”

“But allocating to crypto-assets is difficult since over-the-counter offerings can present a host of challenges for investors and advisors, managing direct crypto exposure can be incredibly time consuming and onerous, and there remains no ETF on the market providing direct exposure to crypto itself.”

Through its SPBC, Simplify aims to solve these challenges and provide a “liquid, scalable way to add Bitcoin exposure to a portfolio.” The Fund charges a fee of 0.50%.

While the “true diehard” crypto investors are already into bitcoin, a “vast majority of U.S. investors have yet to invest in crypto,” said Kim, adding that surveys show the majority of financial advisors have been asked about crypto by their clients.

GBTC is a closed-end fund that invests in Bitcoin, which is currently trading at a discount of nearly 13%, recovering from a 21.23% low from May 14.

As we reported, GBTC shares which are locked for a six-month period, will start unlocking by this weekend and gain pace next month, especially in the second half of June, and the biggest unlock of shares in mid-July that will flood the market.

“We’re acquiring bitcoin via GBTC at a discount,” Kim said. “If GBTC trades at a premium in the future, we can manage the entry and rebalancing both from tax and strategic targeting perspectives, and also from the standpoint of the premium/discount.”

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Author: AnTy

In the Last Month, People Are More Interested In Trading Ethereum Than Bitcoin

The same trend holds for OI as investors and traders are more interested in Ether ahead of its London upgrade. Also, there is confidence about the shift to PoS being on track with just “non-trivial issues” to be figured out.

Ether price is now aiming for $3k as it trades around $2,850, marking a spectacular recovery, up 25% from Sunday low of $1,725.

This strong recovery is the result of people being more interested in trading Ether than Bitcoin. ETH is actually the 2nd most traded crypto-asset right now at $55.9 billion in the past 24 hours, after Tether’s nearly $132 billion, as per CoinGecko.

Bitcoin comes behind Ether at $47.4 billion, which started happening last month.

Polygon, Ethereum Classic, XRP, BUSD, and Cardano are also recording huge volumes between $6 to $10 bln.

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The same trend can be seen in the open interest in the futures market as since the Sunday low, while Ethereum’s OI increased by $1.25 billion, Bitcoin added $1.03 billion to its OI, as per Bybt.

This suggests what started before the correction, with investors and traders getting more interested in Ether sending its prices to an ATH of $4,385 in a very short period of time while Bitcoin consolidated.

Despite the ongoing volatility, Eth holders continue to increase at a steady pace. In fact, long-term holders took this as an opportunity to scoop up cheap coins.

Ether is gaining traction ahead of its London hard fork, which involves EIP 1559, considered a big catalyst for Ether prices as by burning the gas fees paid in ETH, it will effectively make the crypto asset “deflationary.”

Not to mention, 9.6 million ETH are locked up in DeFi, though they are on a downtrend since mid-April, nearly 5 million ETH are in ETH 2.0 deposit contract, which is on an uptrend, and another 3.16 million ETH are locked in Grayscale.

Steady Progress

When it comes to the network development side of things, developer Danny Ryan who works with Ethereum Foundation, shared on Tuesday that Altair, the first planned upgrade of the Beacon Chain, is making steady progress.

Meanwhile, the Rayonism hackathon, which allowed teams to rapidly prototype core Merge designs and better understand how this merged system will work in practice, has been wrapped up. Client teams are now focused on London and Altair hard fork and researchers on Merge spec refinements and testing, he said. The update reads,

“After the summer upgrades, teams will shift their focus to the Merge and begin tackling the production engineering with an eye toward public testnets.”

In the current environment where proof-of-work (PoW) is getting bashed for its energy usage, Ethereum’s shift to proof-of-stake (PoS) works in its favor.

“It’s amazing,” said Ethereum co-founder Vitalk Buterin in an interview. “I’m definitely very happy that one of the biggest problems of blockchain will go away when proof of stake is complete.”

While many continues to be skeptical about the shift, for which Buterin has been advocating from the beginning, to be done by the end of this year or next year as expected by community members, Tim Beiko, who coordinates the developer work on the new network for the Ethereum Foundation, is “confident.” He said,

“There’s a bunch of non-trivial issues to figure out, but the fundamental architecture is set and pretty promising.”

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Author: AnTy

Data Shows Institutional Investors Diversifying Out of Bitcoin and Into Ethereum & Other Altcoins

Data Shows Institutional Investors Diversifying Out of Bitcoin and Into Ethereum & Other Altcoins

Bitcoin is the only one to record outflow, that too the largest ever; meanwhile, Ethereum and other cryptocurrencies, especially ADA and DOT, continued to see inflows last week, as per the CoinShares report.

Crypto asset investment products registered a net outflow of $50 million last week, the first since October last year and the largest since May 2019.

However, “historical data implies that outflows of this nature have not marked pivotal points in sentiment change for digital assets,” notes CoinShares in its weekly report.

Interestingly, Bitcoin (BTC) investment products were the only ones to record outflows at $98 million, 0.2% of total assets under management (AUM). While small, this represents the largest outflow recorded, with the second-largest at $19 million in May 2019. BTC -1.43% Bitcoin / USD BTCUSD $ 42,635.41
-$609.69-1.43%
Volume 55.57 b Change -$609.69 Open $42,635.41 Circulating 18.71 m Market Cap 797.85 b
4 h IOHK Unveils ERC-20 Converter Tool for Testnet, Allowing Ethereum Tokens to Migrate to Cardano 6 h FTC Data Reveals Big Jump In Crypto Investment Scams, Losses Totaling $80M 6 h Crypto Investment Firm Valour Unveils Cardano (ADA) and Polkadot (DOT) Exchange-Traded Products (ETPs)

Total Bitcoin inflows amounted to $4.3 billion for the year, while last year, investors pumped $15.6 billion into Bitcoin funds and products, and Ethereum inflows reached almost $2.5 billion.

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Unlike Bitcoin, all the other digital asset investment products continued to see inflows totaling $48 million last week. The data implies that “investors have been diversifying out of Bitcoin and into altcoin investment products,” it states.

The investment vehicles for the second-largest cryptocurrency, Ether, continued to see continued inflows, gathering $27 million last week. The products also had Ethereum trading volumes at the largest ever, totaling $4.1 billion for the week.

This has been the first time that there have been more investment product trading volumes in Ethereum relative to Bitcoin, which only recorded $3.1bn last week.

“Bitcoin’s perceived environmental costs are becoming a bigger and bigger part of the narrative, boosting the relative appeal of ethereum and its upcoming transition to the less energy-intense proof-of-stake security model,” said Matt Weller, global head of market research at Forex.com.

Besides Ethereum (ETH), Cardano (ADA) and Polkadot (DOT) remain the most popular and recorded inflows of $6 million and $3.3 million respectively.

ETH 3.59% Ethereum / USD ETHUSD $ 3,362.95
$120.733.59%
Volume 40.08 b Change $120.73 Open $3,362.95 Circulating 115.93 m Market Cap 389.87 b
3 h Polkadot to Roll Out Parachains on Kusama Canary Network, the Final Phase Before Full Launch 4 h IOHK Unveils ERC-20 Converter Tool for Testnet, Allowing Ethereum Tokens to Migrate to Cardano 6 h Crypto Investment Firm Valour Unveils Cardano (ADA) and Polkadot (DOT) Exchange-Traded Products (ETPs)
ADA -1.73% Cardano / USD ADAUSD $ 2.00
-$0.03-1.73%
Volume 6.7 b Change -$0.03 Open $2.00 Circulating 31.95 b Market Cap 63.88 b
3 h Polkadot to Roll Out Parachains on Kusama Canary Network, the Final Phase Before Full Launch 4 h IOHK Unveils ERC-20 Converter Tool for Testnet, Allowing Ethereum Tokens to Migrate to Cardano 6 h Crypto Investment Firm Valour Unveils Cardano (ADA) and Polkadot (DOT) Exchange-Traded Products (ETPs)
DOT 5.30% Polkadot / USD DOTUSD $ 40.39
$2.145.30%
Volume 3.9 b Change $2.14 Open $40.39 Circulating 938.99 m Market Cap 37.92 b
3 h Polkadot to Roll Out Parachains on Kusama Canary Network, the Final Phase Before Full Launch 4 h IOHK Unveils ERC-20 Converter Tool for Testnet, Allowing Ethereum Tokens to Migrate to Cardano 6 h Crypto Investment Firm Valour Unveils Cardano (ADA) and Polkadot (DOT) Exchange-Traded Products (ETPs)

Grayscale remains the largest digital asset manager with $47.268 million in assets, which saw zero inflows not only last week but also so far in May.

CoinShares, the second-biggest and largest European digital asset manager, oversaw about $6 billion as of last week, which along with 3iQ, ETC issuance, and Purpose Investments, all recorded more outflows last week than inflows, with 21 Shares being the only exception to that.

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Author: AnTy

BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble

BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble

  • Andrew Bailey’s public criticism of cryptocurrencies is well known, and the crypto detractor has not let up.
  • In a recent event, Bailey said crypto investors might see their investments go down the drain.

Crypto Has No Intrinsic Value

The Bank of England (BoE) Governor Andrew Bailey reiterated his earlier remarks that crypto investors should be prepared to lose all their money, per CNBC reports.

According to Bailey, crypto-assets generally do not have any intrinsic value, and their value proposition is zero.

The BoE governor has long been a critic of the nascent industry and was once quoted as saying that investors should be ready to see their investments erode. The first criticism was during the 2017 rally of Bitcoin. The digital asset, which traded as high as $20,000 then, subsequently dropped to a meager $3,122 in the opening months of 2018.

However, Bitcoin has made significant all-time highs (ATHs) in the past two years, rallying 80% since the beginning of the year but Bailey is not having any of it.

“I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.”

Bailey’s comments closely resemble the Financial Conduct Authority’s (FCA) take on cryptocurrencies. The UK regulatory agency cautioned investors on trading cryptocurrencies in a released statement and said they might see their funds erode given the asset class’s volatility.

But this bad take does not seem to faze crypto investors who are most keen on the massive returns these virtual currencies bring.

Bitcoin itself has brought recognition to the crypto market and institutional investors now see it as a hedge against inflation.

Ethereum, the second most valuable cryptocurrency by market cap, has climbed 360% since the beginning of the bull run after making new all-time highs, and even meme-based cryptocurrency Dogecoin has not been left out, posting a whopping 12,700% increase since the turn of the year.

Other altcoins like Polkadot’s DOT and Ripple Labs’ XRP have not been left behind, with some increasing as much as 300% given the growing adoption.

Blockchain To Be Used In CBDC Design

Despite the many criticisms that trial cryptocurrencies, many central banks are looking to leverage the potential upsides blockchain affords to create central bank digital currencies (CBDCs).

CBDCs would be state-sanctioned and state-issued. They will also be equivalent to the fiat currency of the host country, only that they will be in digital format. Many national banks are already developing the digital form of their fiat currency, with Asian giant China leading in the race of wholesale CBDC use.

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Author: Jimmy Aki