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Best Crypto Presales Launching in 2022

The remarkable growth in cryptocurrency’s popularity over the past few years has provided a platform for countless exciting projects to launch. Many of these projects make use of a presale phase, designed to raise capital and boost awareness – whilst providing investors with an opportunity to purchase tokens at a discount.

This guide will take an in-depth look at the best crypto presale to invest in, reviewing ten upcoming presales with huge potential before highlighting some of the key factors to keep in mind before investing.

Best Crypto Presales for 2022 – Full List

Finding the best cryptocurrency presales can be tricky, especially given the abundance of new coins within the market. However, through extensive research and analysis, we’ve narrowed down the selection to our top 10 presale crypto projects – all of which are listed below: 

  1. Say Network (SAY) – Overall Best Crypto Presale to Invest In
  2. LunaOne (XLN) – Cryptocurrency Presale Project Within the Metaverse Niche
  3. Panda Elon (PELON) – ‘Meme Coin’ Presale with Huge Price Potential
  4. Bonuz (BONUZ) – Exciting Social Media Presale Crypto Platform
  5. EstateX (ESX) – Best Crypto Presale to Invest In for Fractional Real Estate
  6. TechDoge (TECHDOGE) – New Crypto Presale Looking to Emulate Dogecoin
  7. Diferencial (DRL) – Utility-Based Token with Numerous Use Cases
  8. Leshy Inu (LES) – Best Crypto Presale to Invest In with DeFi Connections
  9. NFT Workx (WRKX) – Top NFT-Based Crypto Presale Project
  10. Sleep Care (SLEEP) – First-of-its-Kind ‘Sleep-to-Earn’ Crypto Presale

A Detailed Look at the Best Crypto Presales in 2022

Our list of best crypto presales 2022 features projects from various niches, ranging from DeFi to NFTs. Let’s take a closer look at these projects, focusing on their use cases and value potential over the longer term:

1. Say Network (SAY) – Overall Best Crypto Presale to Invest In

Say Network logo

Our pick for the best crypto presale to invest in is Say Network. Say Network is a Layer-1 blockchain network that aims to provide a foundation for constructing exciting decentralized applications (dApps). uSay is the incumbent social media app hosted on Say Network, designed to offer more control over the content that each user posts.

One of the most appealing features of uSay is that users will be compensated for posting content through distributions of the $SAY token. Although the uSay platform is still in production, this app looks to revolutionize how social media operates – whilst providing a way for users to earn passive income through engaging content.

Say Network presale

The other reason Say Network is our pick for the best crypto presale 2022 is that it will integrate seamlessly with NFTs. The litepaper mentions a feature for users to create NFTs from their social media profiles and posts, providing full ownership over the longer term. Finally, given that Say Network will function as a DAO, all network participants will have a say in the direction the platform takes.

2. LunaOne (XLN) – Cryptocurrency Presale Project Within the Metaverse Niche

LunaOne logo

Another exciting presale cryptocurrency to be aware of is LunaOne. LunaOne is a metaverse project that looks to combine business, gaming, and education into one ecosystem. As such, this will allow members of one niche to interact with demographics they wouldn’t usually communicate with – fostering new relationships and providing a platform for innovative creations.

LunaOne users will be able to create their own avatar, which will provide the basis for earning XLN – LunaOne’s native token. Although investors can purchase tokens through the LunaOne crypto presale, users will also be able to acquire them in-game through studying, working, or taking part in cybersport events. There will also be ‘quests’ for users to complete, offering rewards in XLN.

LunaOne presale

Aside from the passive income aspects, LunaOne will also provide an NFT launchpad driven by the community. The metaverse itself will operate as a DAO, meaning the users can decide on policies and other areas of how the world will work. The LunaOne crypto presale is due to end in Q2 2022, with a view to launching the metaverse in Q3 2022.

3. Panda Elon (PELON) – ‘Meme Coin’ Presale with Huge Price Potential

Panda Elon logo

As the name implies, Panda Elon is an upcoming ‘meme coin’ with inherent links to Elon Musk. Most crypto investors will understand Musk’s influence on the crypto market, which was evident during the peak of Dogecoin’s price rise. The Panda Elon creators are attempting to leverage this influence whilst combining it with China’s best-known animal – the panda.

Panda Elon’s creators don’t deny that this meme coin is designed to make money for investors. The $PELON token itself is hosted on the Binance Smart Chain (BSC), with a total supply of 1 billion tokens. However, 425,000,000 (42.5%) will be put aside for the presale before being listed on PancakeSwap after that.

Panda Elon presale

Details remain scarce on $PELON’s use cases, although the whitepaper mentions an 8% tax on buy and sell transactions. Half of the collected amount will be used for marketing, whilst the remainder will be used for further development and liquidity pools. So, although utility may pose an issue for Panda Elon, this project could be one of the best presale crypto coins due to its community-building potential.

4. Bonuz (BONUZ) – Exciting Social Media Presale Crypto Platform

Bonuz logo

Bonuz looks set to be the best crypto presale to invest in regarding social engagement and interaction with celebrities. Put simply, Bonuz is a turnkey engagement platform that allows content creators to develop their own tokens, which their fans can purchase. This helps create stronger communities filled with exciting benefits for token holders.

At launch, Bonuz will focus exclusively on celebrities, influencers, and brands. However, as the platform grows, the team will also begin targeting game studios and publishers, enabling them to tokenize their content through the platform. The tokens themselves are BEP-20 compatible and will allow holders to gain exclusive access to ‘channels’ hosted by the connected creator.

Bonuz crypto presale

In terms of benefits for token holders, these range from Q&As to offline meet-and-greet events. Creators may also host giveaways or even provide a one-on-one call with specific fans. Finally, given that the $BONUZ token is deflationary, speculative investors can also gain exposure to the project’s growth whilst benefitting from price appreciation driven by regular token burns.

5. EstateX (ESX) – Best Crypto Presale to Invest In for Fractional Real Estate

EstateX logo

EstateX is a regular presale crypto project that looks to revolutionize how real estate investing works. At its core, EstateX will offer a blockchain-based ecosystem that significantly improves the accessibility of real estate investing to retail investors. Since EstateX offers ‘fractional ownership’, investors can purchase shares in a property for as little as $100.

In turn, this enables investors to generate a passive income stream through $ESX – the ecosystem’s native token. Furthermore, liquidity shouldn’t pose an issue, as EstateX will offer 24/7 property token trading on a dedicated secondary marketplace. Users can even take out instant loans backed by fractional ownership in EstateX properties.

EstateX crypto presale

Given that the European tokenized real estate market is estimated to be worth €1.5 trillion by 2024, EstateX is poised to be one of the best crypto presales in 2022. Since all transactions are handled via smart contracts, the ecosystem will be entirely decentralized, boosting safety and transparency. Finally, investors who aren’t on the EstateX platform can still invest in $ESX tokens, providing a way to gain exposure to the platform’s growth and success.

6. TechDoge (TECHDOGE) – New Crypto Presale Looking to Emulate Dogecoin

TechDoge logo

Much like Panda Elon, which we discussed earlier, TechDoge is the latest attempt at a ‘meme coin’, looking to capitalize on the success of Dogecoin. However, not only does TechDoge aim to leverage the power of DOGE’s community, but it also seeks to provide real-world use cases. According to the roadmap, these include regular airdrops, mini-games, contests, and NFT collections.

One of the key elements going in TechDoge’s favour is that the token was designed by the team behind MiniDOGE – which surged to a $220 million market cap in 2021. None of the development team will own TechDoge tokens, which helps reduce the possibility that this is a ‘pump and dump’ scheme. What’s more, TechDoge has already been KYC verified and audited by Cyberscope, providing credibility to the project.

TechDoge presale

TechDoge will also include a ‘static rewards’ mechanism, whereby a 10% tax will be levied on each transaction. A total of 5% of the collected amount will be given back to TechDoge token holders, whilst the remainder will be used for marketing or burned – reducing the supply. As more tokens are burned, the remaining TechDoge tokens will become scarce, which will help drive the price over the longer term.

7. Diferencial (DRL) – Utility-Based Token with Numerous Use Cases

Diferencial logo

One of the best cryptocurrency presales to keep an eye on in the months ahead is Diferencial. Put simply, Diferencial (DRL) is a utility-based token hosted on the Binance Smart Chain (BSC) that looks to provide token holders with a route towards regular passive income. This is accomplished through Diferencial’s ‘reflection’ mechanism.

This mechanism works by taxing buy and sell transactions, meaning a 6% distribution is provided to remaining token holders. Notably, the amount each holder receives is in proportion to their investment – so larger investors will receive more passive income.

Diferencial presale

Aside from reflections, Diferencial’s whitepaper notes other use cases, such as NFT buying and selling, secure document transfer, DRL fashion, exercise rewards, and more. The NFT aspect is fascinating, as it will contain a staking and voting mechanism which can lead to further rewards. Finally, Diferencial will also be launching a dedicated mobile app where users can swap, stake, or trade their tokens.

8. Leshy Inu (LES) – Best Crypto Presale to Invest In with DeFi Connections

Leshy Inu logo

Leshy Inu is a presale cryptocurrency project that has already garnered significant attention on social media. At the time of writing, Leshy Inu’s Twitter page has nearly 14,000 followers, whilst the official Telegram group boasts more than 33,000 members. This community backing forms the foundation of Leshy Inu’s appeal, as the name is derived from the famous ‘Shiba Inu’ coin.

However, Leshy Inu isn’t just a meme coin – it also offers use cases within the world of DeFi. These include a custom-built swap exchange, where users can trade tokens and yield farm. This exchange will be based on an Automated Market Maker (AMM) model, which will offer revenue sharing for liquidity providers.

Leshy Inu tokenomics

Leshy Inu also aims to offer lotteries and NFTs within the ecosystem, providing an ‘all-in-one’ platform for trading and investing. There are 10 trillion $LES tokens in existence, although 90% of these will be burned at launch. With only 3.5% of the total supply available for early investors to purchase, this regular presale crypto looks likely to be one of the most sought-after crypto events of the coming months.

9. NFT Workx (WRKX) – Top NFT-Based Crypto Presale Project

NFT Workx logo

Our pick for the best crypto presale 2022 within the NFT niche is NFT Workx. NFT Workx is an upcoming NFT platform that provides services related to Web 3.0, such as consulting, strategy, and marketing. The platform works with artists, athletes, musicians, and more to develop their own collections and build a loyal following.

In a sense, NFT Workx works similarly to a marketing company, as the project will also offer press releases, paid ads, promo videos, digital artwork, and more. One of the project’s main features is its ‘Starter Package’, which includes everything a creator needs to develop an NFT collection and build awareness.

NFT Workx presale

The NFT Workx platform will be powered by $WRKX, which has several compelling use cases. These include discounts on fees and prices, early access to new NFT collections, VIP partner benefits, and voting opportunities for governance. $WRKX users will even be able to stake their tokens on the NFT Workx platform and earn an attractive APY whilst still benefitting from price increases.

10. Sleep Care (SLEEP) – First-of-its-Kind ‘Sleep-to-Earn’ Crypto Presale

Sleep Care logo

Rounding off our list of the best crypto presale projects to invest in is Sleep Care. Sleep Care is a first-of-its-kind ‘sleep-to-earn’ protocol where users can receive passive income based on their sleep quality. This passive income is denominated in $SLEEP, Sleep Care’s native token.

To begin earning a return, users must own at least 500 $SLEEP tokens and complete a minimum of five hours of sleep each night. Since Sleep Care’s overarching goal is to make a noticeable impact on the world’s sleep quality, users who sleep ‘better’ will receive more income. Sleep quality is monitored by the Sleep Care app, which uses GPS technology and body sensors to help measure sleep.

Sleep Care presale

There will also be a monthly leaderboard where the top 10 ‘sleepers’ will receive a bonus prize. Sleep Care will also include built-in social media elements, allowing users to view the sleep habits of other users and form lasting relationships. Finally, with an inherent burn mechanism, $SLEEP will be a deflationary token, helping price appreciate over the longer term.

What are Crypto Presales?

Now that we’ve discussed the best crypto presale to invest in, it begs the question – what exactly are crypto presales? Put simply, presales are limited-time sales of a crypto token designed to raise awareness (and capital) for a project. These presales occur before the Initial Coin Offering (ICO) and tend to only be available through the provider’s website.

The main appeal of these presales is that they allow early investors to purchase tokens at a reduced price point. Naturally, this is a risky endeavour, as the project itself will still be in the very early stages of its growth. Nevertheless, risk-seeking investors can generate huge returns if they pick projects that achieve huge valuations.

Crypto presales

One of the most successful crypto presales was by Ethereum back in 2014. In just 12 hours, more than 7 million ETH was raised, which equated to roughly $2.3 million. Given the incredible prices that Ethereum has reached in recent years, it’s fair to say that presale investors hit the jackpot with this one.

How to Find the Best Crypto Presales to Invest In

Due to the regularity of crypto presales, finding high-value projects to invest in can be tricky. Fortunately, there are a few factors to keep in mind which can help narrow down the selection:

Keep Tabs on Crypto News Sites

Crypto news sites are an excellent resource for finding new crypto presales to invest in. These websites constantly monitor the market, providing updates on new projects or developers launching other enterprises. However, due to the abundance of news outlets, it’s best to use those that are objective and do not partner with any crypto projects – as they tend to showcase some bias.

Use Social Media

Social media is another excellent resource and one that led to great success with the Crypto Vault presale. Twitter and Reddit tend to be the best networks for information on presales, as they offer real-time updates with discussions from real traders. Subreddits like r/CryptoCurrency are great for established coins and soon-to-be-released projects with high potential.

Say Network Twitter

Review Whitepaper & Roadmap

Finally, once an exciting project has been found, it’s crucial to review the roadmap and whitepaper presented on the website. These two elements are essential to determining longevity (and price potential), so it can be a red flag if they aren’t present. It’s also wise to research the development team behind the project to ensure they have the relevant credentials to lead the project forward. 

Are Presale Cryptos a Good Investment Opportunity?

Crypto presale projects are inherently risky – there’s no escaping that fact. However, those investors who are happy to take on the risk can receive some tremendous benefits, such as: 

Become Part of Growing Community

Early investors in presale crypto projects can become part of a growing community at the ground level – which can be extremely rewarding. As there will likely be a limited number of investors at first, it’s easier to form connections with like-minded people. Furthermore, making connections can also lead to tips about other high-potential presales in the future. 

Market-Beating Price Potential

Naturally, investing in crypto presales presents a path to generating huge returns. This is because tokens will be priced at a discount, which can help produce triple-digit (or even quadruple-digit) returns if the project begins gaining traction. However, it’s also essential to remain grounded and realize that not all projects will be ‘winners’ – as many will not grow to the level required for notable returns.

LBLOCK price chart

Gain Exposure to New Niches

Finally, investing in crypto presales can also provide exposure to new areas of the market that investors may not have otherwise ventured into. The projects listed earlier hail from various niches, from DeFi to NFTs. Not only does this provide compelling use cases, but it can also help diversify crypto portfolios and optimize the risk/return ratio.

Best Crypto Presales – Conclusion

In conclusion, this guide has discussed the best crypto presale to invest in during 2022, highlighting which coins have the highest potential and the most hype. Although presales are undoubtedly risky, they can provide market-beating returns – ensuring they remain an essential part of the broader crypto ecosystem.

Say Network and LunaOne are two of the most promising projects on our list, offering compelling use cases and stellar development teams. However, any of the ten projects discussed in this guide could be the next to take off, so it’s crucial to conduct prior research and never invest more than you’re comfortable losing. 

FAQs

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Crypto stocks plummet and investors lose fortunes as Bitcoin, Ethereum and Luna prices plunge

Digital currencies are plunging in value today in a so-called ‘crypto winter’ that has lost investors billions and is fuelling fears that it is the harbinger of a wider stock market crash.

The world’s second largest cryptocurrency Ethereum has joined the crash – plummeting in value by 20 per cent over the last 24 hours – in the digital downturn that is hammering investors who bought during the Covid years.

Cryptocurrencies are a form of digital money that use mathematics to create a unique piece of code that customers invest in.

Bitcoin was the original digital currency started in 2009 to bypass central banks, and an increasing number of offshoot currencies have been founded in recent years as well as digital art called non-fungible tokens.

They have all been sharply decreasing in value over the past few days including one currency that has lost 98% of its value as fears for the global economy spread and investors start to sell off risky assets.

More than $200billion has been wiped off the cryptocurrency market today alone. 

However investors in more traditional stocks are also hurting, with US tech stocks also plunging in recent weeks including Amazon which has fallen 30 per cent in a month.

The FTSE 100 was down 2.5 per cent this morning after official figures showed the UK economy growing slower than expected in the first quarter – and going into reverse in the final month and 2 per cent, respectively.

Many amateur investors took to buying stocks and digital currencies during the Covid pandemic and made money because values were generally rising in a so-called bear market.

Ethereum has now lost more than half of its value this year, Bitcoin has shed a third of its value since January and Luna with 99 per cent of its value wiped out in the last 48 hours with suicide hotlines pinned to the currency’s Reddit page as a result.

Popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt due to the crash.

During the pandemic, record low interest rates intending to boost economies led to investors buying riskier assets like cryptocurrency with higher rates of return.

As skyrocketing inflation leads to a rise in interest rates in order to safeguard savings, these assets are being sold in favour of safer government bonds – which will provide better returns.

The Bank of England pushed up interest rates by 0.25 per cent to a 13-year high of 1 per cent on May 5.

The Federal Reserve also raised their interest rates to 1 per cent on May 4 – with further rises expected to fend off the worst effect of inflation.

The NASDAQ experienced its sharpest one-day fall since June 2020 earlier this week and the crypto hit implies an increasing integration between crypto and traditional markets.

The index which features several high-profile tech companies, finished May 5 trading at $12,317.69 with shopping sites such as Etsy and eBay driving the fall.

The two companies saw their values drop 16.8 per cent and 11.7 per cent respectively, after announcing lower than expected revenue estimates.

Previously high-flying tech stocks have begun to dramatically fall in value in recent months – fuelling fears of a broader economic crash and making investors less likely to purchase assets.

Elon Musk’s Tesla has fallen 36 per cent in the last month amid news of the eccentric CEO’s attempts to buy Twitter.

The electric car manufacturer is now trading at $732 (£600), a dramatic drop from $1145.45 (£937.69) a month ago.

It hit an eight-month low today, briefly dropping below $700. 

Musk, a vocal proponent of cryptocurrencies, has heavily influenced prices of Dogecoin and Bitcoin, and at one point had said the company would accept Bitcoin for purchasing its cars before axing plans.

Musk’s frequent tweets on Dogecoin, including the one where he called it the ‘people’s crypto’, have turned the once-obscure digital currency, which began as a social media joke, into a speculator’s dream.

The panic over crypto’s future led to slower transactions on the cryptocurrency exchange Binance.

Crypto traders bemoaned the ill-timed ‘scheduled maintenance’ which Binance announced earlier on Thursday – with some users on social media accusing the company of a deliberate ploy to stop them trading their assets in.

EToro global market strategist, Ben Laidler, said: ‘Since the March 23, 2020 market low, Dogecoin has perhaps surprisingly led price performance, narrowly outperforming Tesla.

‘Meanwhile bitcoin, the market’s largest crypto asset, has outperformed other major tech stocks despite its recent dip, beating the likes of Apple, Amazon and Meta.’

The token’s price surged by about 4,000 percent in 2021, after Musk posted a flurry of memes promoting the joke currency.

Delivery giant Amazon saw a 30 per cent drop on its price since April 11 with the stock hitting $2132.60 (£1725.19) earlier today – down from $3011.34 (£2468.75).

The fall of these stocks are fuelling fears that the ‘dotcom bubble burst’ of the early 2000s could be about to repeat.

In the late 1990s, the increase in computer and internet access led to large scale speculative trading in internet companies.

The interest resulted in companies with a ‘.com’ suffix being valued very highly.

After the US Federal Reserve increased interest rates after the end of the 1990s boom, speculative trading dipped and caused the dotcom bubble to burst, sending values plummeting.

The amount of business done by crypto exchanges, which hold the ‘blockchain’ ledgers that record transactions, is already dropping heavily.

Despite the outlook, crypto traders on social media have taken to the platforms to poke fun at the crash, encourage others not to sell and in some cases grieve their losses.

The subreddit r/terraluna was inundated with several posts of investors noting their losses – with some saying they could lose their houses or had lost their life savings.

Admins of the online investing group even had to put suicide hotlines pinned to the top of the forum for investors.

The acronym ‘HODL’ – meaning Hold On for Dear Life – has been used in several of these memes after it gained popularity in previous crashes as traders bet their investments on the coins making a recovery.

‘The crypto sell-off has been driven by the daunting macro backdrop of rising inflation and interest rates that has sent shockwaves through the tech sector, dragging cryptos down with it, confirming that Bitcoin and others serve little purpose as a hedge against inflation,’ said Victoria Scholar, head of investments at Interactive Investors.

Popular cryptocurrency Luna lost its pegging to the dollar this week, falling below $1 per coin, causing prices to drop dramatically as the industry panicked (similar to a run on a bank).

The coin, also called Terra, lost 99 per cent of its value in the last 48 hours. 

‘The Terra incident is causing an industry-based panic, as Terra is the world’s third-biggest stable coin,’ said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. 

But TerraUSD ‘couldn’t hold its promise to maintain a stable value in terms of U.S. dollars.’

The crypto downturn has wiped more than $1.5trillion of value from the markets but investors will still be hoping that prices will be able to recover as they have done in the past. 

However, unlike previous crashes, experts think that this latest drop in prices could prove permanent due to broader fears about global recession

Bitcoin hit and then-high of $19,754.19 (£16,194.81) on December 17, 2017 before falling below $11,000 (£9,000) just five days later – losing nearly 45 per cent of its peak.

The price recovered to pre-crash levels in November 2021.

The downturn has led to Coinbase, an online trading platform, issuing a stark warning to customers: Your crypto is at risk if the exchange goes bankrupt. 

The popular exchange saw its value drop 27 per cent as a result of the crash. 

According to Coinbase’s official website, the company has more than 98 million verified users. It is the largest cryptocurrency exchange platform in the United States. 

Coinbase’s CEO Brian Armstrong attempted to calm shareholders in a series of tweets one of which read: ‘Your funds are safe at Coinbase, just as they’ve always been.’

Despite Armstrong’s claims, in an SEC filing the company referred to customers as ‘unsecured creditors’ in the event that Coinbase went belly-up.

This means that customers’ crypto assets would be considered the property of Coinbase by bankruptcy administrators.  

The SEC filing, Staff Accounting Bulleting 121, requires crypto platforms to include customer’s crypto holdings as assets and liabilities on balance sheets.  

Armstrong wrote on Twitter that the company is at ‘no risk of bankruptcy’ despite the filing, which he said was made so that company would be in compliance with SEC regulations.

El Salvador President Nayib Bukele announced last year that his government is planning to build an oceanside ‘Bitcoin City’ at the base of a volcano – after making crypto legal currency in September.

While some critics fear the country’s embrace of Bitcoin could encourage more criminal activity, the president hopes to boost the country’s economy with the investor-friendly Bitcoin City.

Kazakhstan crypto miners had their energy supply cut off in January as power consumption for the mining spiralled out of control.

All you need to know about cryptocurrency: How do you use it? Why is it popular? And why is it plunging in value 

By Harry Howard for the MailOnline

What is cryptocurrency?

A cryptocurrency is a decentralised digital currency that can be used for transactions online.

It is the internet’s version of money – unique pieces of digital property that can be transferred from one person to another.

Unlike centralised currencies such as the Pound Sterling or the U.S. dollar, there is no governmental authority that manages cryptocurrencies or how much they are worth.

All cryptocurrencies use what is known as blockchain technology – an open ledger that records transactions in code.

Explaining the blockchain, crypto expert Buchi Okoro told Forbes: ‘Imagine a book where you write down everything you spend money on each day.

‘Each page is similar to a block, and the entire book, a group of pages, is a blockchain.’

The blockchain allows all records of transactions to be recorded and checked to prevent fraud.

How do you buy them?

Cryptocurrencies can be bought on what are known as exchanges, with Coinbase and Bitfinex being among the most popular.

Exchanges allow ordinary people with little knowledge of the technical aspects of cryptos to buy them simply.

The exchanges allow traders to buy fractions of coins rather than whole ones.

It means they can spend as little as much as they like – rather than forking out what could be tens of thousands of pounds if they were to buy a whole coin.

However, most exchanges charge a fee to invest.

Generally, this is a small percentage of the amount of crypto purchased, along with a flat fee depending on the size of the transaction.

In the UK, Coinbase charges a 3.9 per cent fee for orders over £200 that are bought using a debit card.

Purchases through a UK bank transfer incur a smaller 1.4 per cent commission.

What can you use cryptocurrencies for?

Cryptocurrencies can be used to make purchases and to send money abroad easily.

However, at present, most retailers do not accept the likes of bitcoin as a form of currency.

One way to get around this is to exchanging cryptocurrencies for gift cards that can then be used at ordinary retailers.

Crypto debit cards can also be used to make purchases. The cards are preloaded with a cryptocurrency of your choice.

Whilst the user spends their cryptocurrency, the retailer will receive ordinary money as payment.

Cryptocurrencies are also increasingly regarded as a form of investment, although experts caution about their volatility.

Bitcoin has long been referred to as ‘digital gold’ because of the fact that, like the precious metal, it is regarded by some as a good store of value.

Why are cryptocurrencies popular?

Cryptocurrencies are popular in part because they remove the role of central banks and governments from the supply of money.

With cryptos such as bitcoin, there is a fixed number of coins that ever be produced, which supporters claim makes them invulnerable to inflation.

There is no central authority that suddenly devalue the currency by producing many more coins.

Another reason for their popularity is the fact that whilst governments can freeze bank accounts or even confiscate money from individuals, cryptocurrencies generally remain out of their reach.

This has however made cryptos such as bitcoin also popular with criminals wishing to hide assets from authorities.

Cryptocurrencies are also popular because there is no need to open a bank account to start trading them.

A final aspect contributing to their popularity is of course the ability to make large amounts of money investing in cryptocurrencies.

As an example, despite its recent plummet, bitcoin has still risen in value by nearly 11,000 per cent since its 2009 creation.

Ethereum, like Bitcoin, is a digital token used on a digital database called a blockchain. It has gained prominence as a popular method to pay for NFTs (Non Fungible Tokens)

Ethereum, like Bitcoin, is a digital token used on a digital database called a blockchain. It has gained prominence as a popular method to pay for NFTs (Non Fungible Tokens)

What is Bitcoin mining? 

People create bitcoins and other cryptocurrencies through what is known as mining.

Mining is the process of solving complex math problems using computers running bitcoin software.

These mining puzzles get increasingly harder as more bitcoins enter circulation.

Each time a puzzle is solved, a new groups of transactions – known as blocks – are added to the blockchain (the shared transaction record).

Miners are rewarded by being issued with bitcoin. 

However, mining is now out of reach of most ordinary people because of the immense cost involved.  

Spencer Montgomery, founder of Uinta Crypto Consulting, told Forbes: ‘As the Bitcoin network grows, it gets more complicated, and more processing power is required.

‘The average consumer used to be able to do this, but now it’s just too expensive.’

Bitcoin mining also uses an enormous amount of energy, estimated to be around 0.21 per cent of all the world’s electricity. 

This is similar to the amount of energy used by Switzerland each year.

Are there any crypto billionaires?

According to Forbes, there are 19 individuals in the world who have become billionaires through cryptocurrencies.

The richest is Canadian citizen Changpeng Zhao, is said to be worth $65billion.

He is the founder of Binance, which is the largest cryptocurrency exchange in the world when measured by daily trading volume.

Zaho also owns a relatively small amount of bitcoin himself.

The richest crypto billionaire is Canadian Changpeng Zhao, is said to be worth $65billion

The richest crypto billionaire is Canadian Changpeng Zhao, is said to be worth $65billion

Other crypto billionaires include Sam Bankman-Fried, the founder of FTX, which is another cryptocurrency exchange.

He is believed to be worth an estimated $24billion. As well as owning half of FTX, he also owns $7billion of FTT, FTX’s native cryptocurrency.

Coinbase founder Brian Armstrong has also become a billionaire, with a net worth of $6.6billion.

A third individual to have made money from the world of crypto is Gary Wang, who is the co-founder of FTX.

Before his foray into cryptocurrencies, Wang was an engineer at Google. He is worth around $5.9billion.

What is Bitcoin mining?

People create bitcoins and other cryptocurrencies through what is known as mining.

Mining is the process of solving complex math problems using computers running bitcoin software.

These mining puzzles get increasingly harder as more bitcoins enter circulation.

Each time a puzzle is solved, a new groups of transactions – known as blocks – are added to the blockchain (the shared transaction record).

Miners are rewarded by being issued with bitcoin.

However, mining is now out of reach of most ordinary people because of the immense cost involved.

Spencer Montgomery, founder of Uinta Crypto Consulting, told Forbes: ‘As the Bitcoin network grows, it gets more complicated, and more processing power is required.

‘The average consumer used to be able to do this, but now it’s just too expensive.’

Bitcoin mining also uses an enormous amount of energy, estimated to be around 0.21 per cent of all the world’s electricity.

This is similar to the amount of energy used by Switzerland each year.

Why are cryptocurrencies crashing, and is this linked to the wider economy?

Many fans of bitcoin had argued that because it has no central authority and is not controlled by central banks, it would hold its value through economic dips, global conflicts or policy changes.

However, this has proven not to be the case. In recent years, bitcoin’s volatility has followed similar rises and falls in stock markets.

As an example, when the coronavirus pandemic struck in March 2020 and global markets plummeted, so too did bitcoin.

But both stock markets and cryptocurrencies then recovered more or less in parallel.

Bitcoin’s fall in recent weeks has again mirrored declines in the Dow, Nasdaq and S&P 500.

Part of the volatility is being caused by Russia’s invasion of Ukraine and the effect this has had on supply chains and oil prices.

Whilst some crypto fans hope that bitcoin’s price will at some point decouple from the stock market as it previously had been, this has so far not been the case.

Bitcoin’s value also fell when China cracked down on bitcoin mining in mid-2021 and plummeted again when Tesla founder Elon Musk said last year that his firm would no longer accept bitcoin for payments due to environmental concerns.

 

The ‘Crypto Bros’ who’ve lost up to $20bn in crash: Coinbase founder Brian Armstrong and the Winklevoss twins face a huge hit to their personal wealth… while Elon Musk’s Tesla bought massive amounts of digital currency

  • Billionaire-backers of crypto including Elon Musk and Brian Armstrong set to bear brunt of ‘bloodbath’
  • Armstrong, the founder of Coinbase, has seen $11billion vanish from his personal wealth 
  • Tesla, which took a $1.5billion gamble on Bitcoin last February, has already seen that investment fall flat 
  • Tyler and Cameron Winklevoss have reportedly lost half of wealth, down to $2.2billion from $4.5billion 

Some of the world’s cryptocurrency billionaires are seeing billions wiped from their fortunes as digital currencies plunge in value over fears for the wider global economy. 

Trader Brian Armstrong, the founder of Coinbase and was once worth $13.7billion, has seen $11billion vanish from his personal wealth as digital currencies went through the floor when investors started to sell amid fears of a new recession, high inflation and global economic turmoil.

He and Tesla founder Elon Musk are among the billionaires who have had $20billion wiped from the value of their investments as the great online currency crash continues today – with one mega-rich trader reportedly losing $800million in a day.

Tesla, which took a $1.5billion gamble on Bitcoin last February, has already seen that investment fall flat with its estimated value already $300million lower than it was 15 months ago.

Mr Musk is one of four so-called ‘Crypto Bros’ whose combined gigantic wealth, which for years has helped prop up the online currency market, has now taken the most colossal hit despite believing crypto would be a safe haven during the pandemic. But more than $20billion has been wiped off the cryptocurrency market today alone. 

Coinbase’s shares are down 84 per cent since their first day of trading in April 2021.

Michael Saylor, who runs software giant MicroStrategy, is one of the world’s biggest holders of Bitcoin and has seen his fortune fall to $2.5billion, from an estimated $8.5billion six months ago. Forbes reported his wealth may even be below $1billion now.

And Tyler and Cameron Winklevoss, the twins famous due to their protracted battle with billionaire Mark Zuckerberg over who created Facebook famously dramatised in The Social Network, have reportedly lost around half of their wealth, down to $2.2billion from around $4.5billion.

There’s also Michael Novogratz, CEO of crypto merchant bank Galaxy Digital, whose $8.5billion fortune may have plummetted to $2.5 billion. He’s championed of TerraUSD, an algorithmic stablecoin at risk of a complete collapse because Luna’s price has fallen in the same crypto ‘ecosystem’.

One trader with 288,000 Bitcoin lost $800million in 24 hours after the price plunged from $43,515 to $42,963 – a drop of $550.  In total the wallet, the snappily titled ’34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo’, has had $2.48billion removed from its $16.29billion value on Friday. 

Trader Brian Armstrong, the founder of Coinbase and was once worth $13.7billion, has seen $11billion vanish from his personal wealth as digital currencies went through the floor when investors started to sell amid fears of a new recession, high inflation and global economic turmoil

Trader Brian Armstrong, the founder of Coinbase and was once worth $13.7billion, has seen $11billion vanish from his personal wealth as digital currencies went through the floor when investors started to sell amid fears of a new recession, high inflation and global economic turmoil 

Elon Musk’s Tesla, which took a $1.5billion gamble on Bitcoin last February, has already seen that investment fall flat with its estimated value already $300million lower than it was 15 months ago

Michael Saylor, a tech CEO who staked his company, MicroStrategy, and its future on the volatile Bitcoin. Saylor's personal wealth has plummeted below $1bn in recent days, according to Forbes

Michael Saylor, a tech CEO who staked his company, MicroStrategy, and its future on the volatile Bitcoin. Saylor’s personal wealth has plummeted below $1bn in recent days, according to Forbes

Billionaire brothers Tyler and Cameron Winklevoss have also seen hundreds of millions of dollars wiped from their personal fortunes in recent days

Tesla holds 43,200 BTC, purchased in February 2021 for $1.5billion. Website bitcointreasuries.net believes reckons that gamble has cost Elon Musk and his shareholders about $300million since then.

Crypto exchange owners including Brian Armstrong – who runs Coinbase and was once worth $13.7bn – and brothers Tyler and Cameron Winklevoss have also seen billions wiped from their personal fortunes in recent days.

They’re joined by Michael Saylor, a tech CEO who staked his company, MicroStrategy, and its future on the volatile Bitcoin. Saylor’s personal wealth has plummeted below $1bn in recent days, according to Forbes. 

Meanwhile, popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt – after the downturn led to a 27 per cent fall in its share price. Its founder was forced to take to Twitter to bullishly defend the company’s record amid fears it could slip into bankruptcy. 

Previously high-flying tech stocks have begun to dramatically fall in value in recent months – fuelling fears of a broader economic crash and making investors less likely to purchase assets.

Elon Musk’s Tesla has fallen 36 per cent in the last month amid news of the eccentric CEO’s attempts to buy Twitter.

The electric car manufacturer is now trading at $734 (£600), a dramatic drop from $1145.45 (£937.69) a month ago.

Musk, a vocal proponent of cryptocurrencies, has heavily influenced prices of Dogecoin and Bitcoin, and at one point had said the company would accept Bitcoin for purchasing its cars before axing plans.

Musk’s frequent tweets on Dogecoin, including the one where he called it the ‘people’s crypto’, have turned the once-obscure digital currency, which began as a social media joke, into a speculator’s dream.

Bitcoin, the world’s most successful cryptocurrency, has seen its price drop by over a third and shed $300bn in market value since the end of March when it was trading at $48,000. 

Two American companies, including Tesla and MicroStrategy, appear set to bear the brunt of the crash as both hold tens of thousands of Bitcoin (BTC). 

Tracking website Bitcoin Treasuries, which reports on the cryptocurrency holdings of publicly traded companies, estimates both Tesla and MicroStrategy have seen their BTC portfolio dip by $300million in value since their original investment.

Bitcoin was the original digital currency started in 2009 to bypass central banks, and an increasing number of offshoot currencies have been founded in recent years as well as digital art called non-fungible tokens.

Many amateur investors took to buying stocks and digital currencies during the Covid pandemic and made money because values were generally rising in a so-called bear market.

Ethereum has now lost more than half of its value this year, Bitcoin has shed a third of its value since January and Luna with 98 per cent of its value wiped out overnight with suicide hotlines pinned to the currency’s Reddit page as a result.

Popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt – after the downturn led to a 27 per cent fall in its share price.

Digital currencies are plunging in value today in a so-called ‘crypto winter’ that has lost investors billions and is fuelling fears that it is the harbinger of a wider stock market crash.

The world’s second largest cryptocurrency Ethereum has joined the crash – plummeting in value by 20 per cent over the last 24 hours – in the digital downturn that is hammering investors who bought during the Covid years.

Cryptocurrencies are a form of digital money that use mathematics to create a unique piece of code that customers invest in.

Bitcoin was the original digital currency started in 2009 to bypass central banks, and an increasing number of offshoot currencies have been founded in recent years as well as digital art called non-fungible tokens.

They have all been sharply decreasing in value over the past few days including one currency that has lost 98% of its value as fears for the global economy spread and investors start to sell off risky assets.

More than $200billion has been wiped off the cryptocurrency market today alone. 

However investors in more traditional stocks are also hurting, with US tech stocks also plunging in recent weeks including Amazon which has fallen 30 per cent in a month.

The FTSE 100 was down 2.5 per cent this morning after official figures showed the UK economy growing slower than expected in the first quarter – and going into reverse in the final month and 2 per cent, respectively.

Many amateur investors took to buying stocks and digital currencies during the Covid pandemic and made money because values were generally rising in a so-called bear market.

Ethereum has now lost more than half of its value this year, Bitcoin has shed a third of its value since January and Luna with 98 per cent of its value wiped out overnight with suicide hotlines pinned to the currency’s Reddit page as a result.

Popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt – after the downturn led to a 27 per cent fall in its share price.

During the pandemic, record low interest rates intending to boost economies led to investors buying riskier assets like cryptocurrency with higher rates of return.

As skyrocketing inflation leads to a rise in interest rates in order to safeguard savings, these assets are being sold in favour of safer government bonds – which will provide better returns.

The Bank of England pushed up interest rates by 0.25 per cent to a 13-year high of 1 per cent on May 5.

The Federal Reserve also raised their interest rates to 1 per cent on May 4 – with further rises expected to fend off the worst effect of inflation.

The NASDAQ experienced its sharpest one-day fall since June 2020 earlier this week and the crypto hit implies an increasing integration between crypto and traditional markets.

The index which features several high-profile tech companies, finished May 5 trading at $12,317.69 with shopping sites such as Etsy and eBay driving the fall.

The two companies saw their values drop 16.8 per cent and 11.7 per cent respectively, after announcing lower than expected revenue estimates.

Previously high-flying tech stocks have begun to dramatically fall in value in recent months – fuelling fears of a broader economic crash and making investors less likely to purchase assets.

Elon Musk’s Tesla has fallen 36 per cent in the last month amid news of the eccentric CEO’s attempts to buy Twitter.

The electric car manufacturer is now trading at $734 (£600), a dramatic drop from $1145.45 (£937.69) a month ago.

Musk, a vocal proponent of cryptocurrencies, has heavily influenced prices of Dogecoin and Bitcoin, and at one point had said the company would accept Bitcoin for purchasing its cars before axing plans.

Musk’s frequent tweets on Dogecoin, including the one where he called it the ‘people’s crypto’, have turned the once-obscure digital currency, which began as a social media joke, into a speculator’s dream.

The panic over crypto’s future led to slower transactions on the cryptocurrency exchange Binance.

Crypto traders bemoaned the ill-timed ‘scheduled maintenance’ which Binance announced earlier on Thursday – with some users on social media accusing the company of a deliberate ploy to stop them trading their assets in.

EToro global market strategist, Ben Laidler, said: ‘Since the March 23, 2020 market low, Dogecoin has perhaps surprisingly led price performance, narrowly outperforming Tesla.

‘Meanwhile bitcoin, the market’s largest crypto asset, has outperformed other major tech stocks despite its recent dip, beating the likes of Apple, Amazon and Meta.’

The token’s price surged by about 4,000 percent in 2021, after Musk posted a flurry of memes promoting the joke currency.

Delivery giant Amazon saw a 30 per cent drop on its price since April 11 with the stock hitting $2104.36 (£1725.19) today – down from $3011.34 (£2468.75).

The fall of these stocks are fuelling fears that the ‘dotcom bubble burst’ of the early 2000s could be about to repeat.

In the late 1990s, the increase in computer and internet access led to large scale speculative trading in internet companies.

The interest resulted in companies with a ‘.com’ suffix being valued very highly.

After the US Federal Reserve increased interest rates after the end of the 1990s boom, speculative trading dipped and caused the dotcom bubble to burst, sending values plummeting.

The amount of business done by crypto exchanges, which hold the ‘blockchain’ ledgers that record transactions, is already dropping heavily.

Despite the outlook, crypto traders on social media have taken to the platforms to poke fun at the crash, encourage others not to sell and in some cases grieve their losses.

The subreddit r/terraluna was inundated with several posts of investors noting their losses – with some saying they could lose their houses or had lost their life savings.

Admins of the online investing group even had to put suicide hotlines pinned to the top of the forum for investors.

The acronym ‘HODL’ – meaning Hold On for Dear Life – has been used in several of these memes after it gained popularity in previous crashes as traders bet their investments on the coins making a recovery.

‘The crypto sell-off has been driven by the daunting macro backdrop of rising inflation and interest rates that has sent shockwaves through the tech sector, dragging cryptos down with it, confirming that Bitcoin and others serve little purpose as a hedge against inflation,’ said Victoria Scholar, head of investments at Interactive Investors.

Popular cryptocurrency Luna lost its pegging to the dollar this week, falling below $1 per coin, causing prices to drop dramatically as the industry panicked (similar to a run on a bank).

The coin, also called Terra, lost 98 per cent of its value overnight. 

‘The Terra incident is causing an industry-based panic, as Terra is the world’s third-biggest stable coin,’ said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. 

But TerraUSD ‘couldn’t hold its promise to maintain a stable value in terms of U.S. dollars.’

The crypto downturn has wiped more than $1.5trillion of value from the markets but investors will still be hoping that prices will be able to recover as they have done in the past. 

All you need to know about cryptocurrency: How do you use it? Why is it popular? What is Bitcoin mining? And why are digital values plunging in value now?

  • Bitcoin has lost more than 50 per cent of its value since its November 2021 peak
  • Ethereum is now worth less than half of what it was at the start of this year
  • A cryptocurrency is a digital currency that can be used for transactions online 
  • Cryptocurrencies can be bought on exchanges, such as Coinbase and Bitfinex 

Harry Howard for MailOnline 

They are the digital forms of money that have taken the world by storm in the past decade, with some making billions from their rise. 

But cryptocurrencies have taken a hammering in recent days as fears for the stability of the global economy spread and panicky investors sell of assets deemed to be risky.

Bitcoin – the most well-known cryptocurrency – has lost more than 50 per cent of its value since it reached a peak of nearly £50,000 per coin in November last year. 

Its main rival, Ethereum, is now worth less than half of what it was at the start of this year, while another crypto – Luna – saw 98 per cent of its value wiped out overnight. 

Amid their instability, many ordinary people continue to be confused about what cryptocurrencies are and how they work. 

Whilst Bitcoin and Ethereum are the most popular version, there are more than 5,000 different cryptocurrencies in circulation.  

Below, MailOnline answers key questions about cryptos. 

What is cryptocurrency?

A cryptocurrency is a decentralised digital currency that can be used for transactions online.

It is the internet’s version of money – unique pieces of digital code that can be transferred from one person to another.

Unlike centralised currencies such as the Pound Sterling or the U.S. dollar, there is no governmental authority that manages cryptocurrencies or how much they are worth.  

All crytocurrencies use what is known as blockchain technology – an open ledger that records transactions in code. 

Explaining the blockchain, crypto expert Buchi Okoro told Forbes: ‘Imagine a book where you write down everything you spend money on each day.

‘Each page is similar to a block, and the entire book, a group of pages, is a blockchain.’ 

The blockchain allows all records of transactions to be recorded and checked to prevent fraud. 

Bitcoin is the most popular cryptocurrency. It was created in 2009 by a person or group of people going by the name of Satoshi Nakamoto. 

Nakamoto has never been identified, although Australian businessman Craig White claims to be the man behind the pseudonym. 

The supply of bitcoins is carefully controlled – no one will ever be able to create or issue new coins at will. 

There will also never be more than 21million bitcoins, whilst each coin is itself divisible into 100million units that known as Satoshis . 

This stops the erosion of value – inflation – that plagues national currencies.  

They are the digital forms of money that have taken the world by storm in the past decade, with some making billions from their rise. But cryptocurrencies have taken a hammering in recent days as fears for the stability of the global economy spread and panicky investors sell of assets deemed to be risky

They are the digital forms of money that have taken the world by storm in the past decade, with some making billions from their rise. But cryptocurrencies have taken a hammering in recent days as fears for the stability of the global economy spread and panicky investors sell of assets deemed to be risky 

Ethereum, like Bitcoin, is a digital token used on a digital database called a blockchain. It has gained prominence as a popular method to pay for NFTs (Non Fungible Tokens)

Ethereum, like Bitcoin, is a digital token used on a digital database called a blockchain. It has gained prominence as a popular method to pay for NFTs (Non Fungible Tokens)

How do you buy them?

Cryptocurrencies can be bought on what are known as exchanges, with Coinbase and Bitfinex being among the most popular. 

Exchanges allow ordinary people with little knowledge of the technical aspects of cryptos to buy them simply. 

The exchanges allow traders to buy fractions of coins rather than whole ones.

It means they can spend as little as much as they like – rather than forking out what could be tens of thousands of pounds if they were to buy a whole coin. 

In the first quarter of 2022, Coinbase posted a loss of $430 million amid a 19% drop in monthly users. The company has said that trading is likely to keep going down in the second quarter

In the first quarter of 2022, Coinbase posted a loss of $430 million amid a 19% drop in monthly users. The company has said that trading is likely to keep going down in the second quarter

However, most exchanges charge a fee to invest. 

Generally, this is a small percentage of the amount of crypto purchased, along with a flat fee depending on the size of the transaction.  

In the UK, Coinbase charges a 3.9 per cent fee for orders over £200 that are bought using a debit card.

Purchases through a UK bank transfer incur a smaller 1.4 per cent commission.

What can you use cryptocurrencies for? 

Cryptocurrencies can be used to make purchases and to send money abroad easily. 

However, at present, most retailers do not accept the likes of bitcoin as a form of currency. 

One way to get around this is to exchanging cryptocurrencies for gift cards that can then be used at ordinary retailers.

Crypto debit cards can also be used to make purchases. The cards are preloaded with a cryptocurrency of your choice.

Whilst the user spends their cryptocurrency, the retailer will receive ordinary money as payment. 

Cryptocurrencies are also increasingly regarded as a form of investment, although experts caution about their volatility. 

Bitcoin has long been referred to as ‘digital gold’ because of the fact that, like the precious metal, it is regarded by some as a good store of value. 

Why are cryptocurrencies popular? 

Cryptocurrencies are popular in part because they remove the role of central banks and governments from the supply of money. 

With cryptos such as bitcoin, there is a fixed number of coins that ever be produced, which supporters claim makes them invulnerable to inflation. 

There is no central authority that suddenly devalue the currency by producing many more coins.  

Another reason for their popularity is the fact that whilst governments can freeze bank accounts or even confiscate money from individuals, cryptocurrencies generally remain out of their reach. 

This has however made cryptos such as bitcoin also popular with criminals wishing to hide assets from authorities. 

Cryptocurrencies are also popular because there is no need to open a bank account to start trading them.

A final aspect contributing to their popularity is of course the ability to make large amounts of money investing in cryptocurrencies. 

As an example, despite its recent plummet, bitcoin has still risen in value by nearly 11,000 per cent since its 2009 creation. 

Can you make money from cryptocurrencies? 

In short, the answer is yes. But the same is also true in the reverse. 

As has been proven by their recent plummets in value, cryptocurrencies such as bitcoin and Ethereum are very volatile. 

As an example, whilst bitcoin was trading at around $1 per coin in its very early days, it went on to peak at more than $60,000 in November last year.

Over the course of 2020, bitcoin nearly quadrupled in value. It then plummeted in the summer of 2021 before reaching its peak.

But since the turn of the year, it has lost more than half of its value once again. 

As a result, many experts advise ordinary investors to stay away from cryptos in favour of more stable investments. 

Are there any crypto billionaires?

According to Forbes, there are 19 individuals in the world who have become billionaires through cryptocurrencies. 

The richest is Canadian citizen Changpeng Zhao, is said to be worth $65billion. 

He is the founder of Binance, which is the largest cryptocurrency exchange in the world when measured by daily trading volume. 

Zaho also owns a relatively small amount of bitcoin himself. 

Other crypto billionaires include Sam Bankman-Fried, the founder of FTX, which is another cryptocurrency exchange. 

According to Forbes, there are 19 individuals in the world who have become billionaires through cryptocurrencies. The richest is Canadian citizen Changpeng Zhao (pictured), is said to be worth $65billion

According to Forbes, there are 19 individuals in the world who have become billionaires through cryptocurrencies. The richest is Canadian citizen Changpeng Zhao (pictured), is said to be worth $65billion

He is believed to be worth an estimated $24billion. As well as owning half of FTX, he also owns $7billion of FTT, FTX’s native cryptocurrency. 

Coinbase founder Brian Armstrong has also become a billionaire, with a net worth of $6.6billion.

A third individual to have made money from the world of crypto is Gary Wang, who is the co-founder of FTX. 

Before his foray into cryptocurrencies, Wang was an engineer at Google. He is worth around $5.9billion. 

What is Bitcoin mining?

People create bitcoins and other cryptocurrencies through what is known as mining.

Mining is the process of solving complex math problems using computers running bitcoin software.

These mining puzzles get increasingly harder as more bitcoins enter circulation.

Each time a puzzle is solved, a new groups of transactions – known as blocks – are added to the blockchain (the shared transaction record).

Miners are rewarded by being issued with bitcoin. 

However, mining is now out of reach of most ordinary people because of the immense cost involved.  

People create bitcoins and other cryptocurrencies through what is known as mining. Above: Technicians at a bitcoin farm in Quebec

People create bitcoins and other cryptocurrencies through what is known as mining. Above: Technicians at a bitcoin farm in Quebec

Spencer Montgomery, founder of Uinta Crypto Consulting, told Forbes: ‘As the Bitcoin network grows, it gets more complicated, and more processing power is required.

‘The average consumer used to be able to do this, but now it’s just too expensive.’

Bitcoin mining also uses an enormous amount of energy, estimated to be around 0.21 per cent of all the world’s electricity. 

This is similar to the amount of energy used by Switzerland each year.  

Why are cryptocurrencies crashing, and is this linked to the wider economy? 

Many fans of bitcoin had argued that because it has no central authority and is not controlled by central banks, it would hold its value through economic dips, global conflicts or policy changes. 

However, this has proven not to be the case. In recent years, bitcoin’s volatility has followed similar rises and falls in stock markets.

As an example, when the coronavirus pandemic struck in March 2020 and global markets plummeted, so too did bitcoin. 

But both stock markets and cryptocurrencies then recovered more or less in parallel.

Bitcoin’s fall in recent weeks has again mirrored declines in the Dow, Nasdaq and S&P 500.

Part of the volatility is being caused by Russia’s invasion of Ukraine and the effect this has had on supply chains and oil prices. 

Whilst some crypto fans hope that bitcoin’s price will at some point decouple from the stock market as it previously had been, this has so far not been the case. 

Bitcoin’s value also fell when China cracked down on bitcoin mining in mid-2021 and plummeted again when Tesla founder Elon Musk said last year that his firm would no longer accept bitcoin for payments due to environmental concerns. 




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6 dynamics that will determine the future of cryptocurrency

Those who invest in cryptocurrencies such as Bitcoin and Ethereum often wonder about their favorite asset’s long-term prognosis. It’s a fair question, even for people who only keep a small percentage of their portfolios in crypto for hedging purposes. However, recent political, economic, and other dynamics are likely to have a profound effect on the long-term viability of crypto as an asset class. This is particularly true for investors and traders who operate as independent practitioners for their own accounts. Many home-based trading enthusiasts view cryptocurrency as a potentially rewarding asset that can serve as the centerpiece of an account.

No matter how you choose to structure your capital account or what techniques you use to earn profits in the markets, it’s essential to understand the main factors that have the greatest chance of affecting the future of alt-coins of all kinds, not just the major players like Bitcoin. Working with a reputable broker is one of the best ways to learn about how the alt-coin markets operate. Account holders who do cryptocurrency trading with AvaTrade have access to a large number of educational resources. The following summary can serve as a guide for new and experienced cryptocurrency traders and investors, as they try to navigate the turbulent decade of the 2020s. Note that no single dynamic will dominate the financial landscape. Instead, it’s highly probable that a mixture of factors will determine the short, medium and long-term health of the alt-coin markets. Here are the factors which are likely to determine the health of the alt-coin markets.

Regulation

Regulation is the big question mark in the future of alternative currency. Whenever national governments make serious moves to establish new rules about alt-coins, the markets react almost immediately in a negative way. Currently, in the US, the UK, and Japan, to name just three examples, there are proposals in various stages of development that would more carefully control the cryptocurrency markets. In China, for instance, citizen ownership of digital assets like bitcoin is strictly regulated and, in some cases, banned. Outside of purely dictatorial nations, there are various levels of alt-coin control, including taxation, limits on use, and other restrictions.

ETFs (Exchange Traded Funds)

So far, the alt-coin market has responded favorably to the creation of ETFs. In most cases, any new asset that allows people to more easily acquire an ownership stake in digital currencies, is a positive development. When consumers buy ETFs, they gain most of the advantages of owning crypto without the high volatility that often comes with acquiring individual coins. The reason being that ETFs, by their nature, serve as miniature portfolios of a given assets class. As more exchange traded funds come into the digital currency space, expect to see more stability in the niche.

Ukraine-Russia Effect

So far, the war between Russia and Ukraine has not had a pronounced effect on cryptocurrency prices. However, the longer the conflict lasts, the greater the chance that international investors will begin to view alternative currencies as a more stable place to park their capital. Historically, whenever large military clashes damage a national currency, in this case, the Russian Ruble, many people search for alternatives such as gold, commodities, and alt-currencies.

Widespread Adoption

With each passing month, the strongest force in the crypto niche is general acceptance. Retailers, governments, institutions, and individuals are getting used to digital transactions. That means it’s just as easy to pay for your fuel, groceries, or home products with Bitcoin or Ethereum as it is to use traditional forms of money, like yen, dollars, or Swiss francs.

Day Trading

Day trading has done a lot to support the growth of cryptocurrency because traders enjoy the volatility, potential for out-size profits, and exciting price action within every session. Already, millions of individuals include at least one alt-coin in their day trading menu. Most often, it’s either Ethereum or Bitcoin, but others are making headway into the mainstream.

COVID and Its Variants

The COVID-19 pandemic, which began in China in December 2019, has already left a mark on the entire global financial system, including virtual currencies of all kinds. But, how will the pandemic continue to wreak its havoc, even as lockdowns, shutdowns, mask mandates, and vaccine laws remain in some places? In general, the pandemic caused problems for financial and exchange markets, which sent many people running to assets like gold and, in some cases, blue-chip stocks. One interesting development since 2020 and COVID’s arrival has been the increase in the overall price level of Bitcoin and other major cryptos. Apparently, enough investors view alternative currencies as a safe haven to give the new asset a luster close to gold in times of trouble.

Like any financial or business market, crypto currency will face challenges and fluctuations. How they are solved and overcome will determine the future of cryptocurrencies.




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Citizens group wins court-ordered freeze of Freedom Convoy accounts, cryptocurrency

OTTAWA An Ottawa judge has frozen the bank accounts and digital “wallets” of convoy leaders believed to hold more than $1 million in bitcoin and cryptocurrency after an extraordinary secret hearing.

Late Thursday, Ontario Superior Court Justice Calum MacLeod granted an injunction to a private citizens’ effort to stanch the flow of money that was a lifeline for the 21-day occupation of Ottawa.

MacLeod issued the sweeping order freezing all the digital assets and bank accounts of convoy leaders, several of whom are directors of a corporation they created three weeks ago.

He ordered any banks, financial institutions, money service businesses, fundraising platforms or websites, cryptocurrency exchanges or platforms, and custodians of any cryptocurrency wallets to halt transactions related to the organizers’ accounts and digital wallets.

And the institutions and platforms must disclose the assets held within to the court.

Lawyer Paul Champ, acting on behalf of a group of Ottawa residents who have launched a class-action lawsuit for damages caused by the protest, won the injunction during an unusual “ex-parte” hearing, held “in camera” — without public notice or access. The targeted defendants did not receive advance warning, nor did they have an opportunity to get a lawyer to court to contest the claims.

It was a calculated effort to halt the flow of funds after a private investigator and a bitcoin expert hired by Champ flagged that the “Freedom Convoy” organizers were moving cryptocurrency funds out of digital wallets and into new ones faster than the RCMP could keep up, and outpacing the federal government’s efforts to track them, Champ said.

At last count, according to information in the court order, at least 146 different digital wallets were believed to be in play. Most were listed as containing bitcoin, but other digital currencies were also identified.

Champ, his co-counsel, and a group of Ottawa citizens have filed a broader class-action lawsuit seeking $306 million in damages against the convoy organizers, but fear the ability to recover any reparations would be lost without the order. Champ is the same lawyer who won an injunction last week halting the trucks parked downtown from blaring their horns.

The federal government says it has been freezing accounts related to the convoy, under the Emergencies Act invoked Monday. But Champ said the government is moving too slowly.

“They keep moving to bitcoin and other shadowy fundraising platforms to avoid the reach of authorities,” said Champ in an interview.

Justice MacLeod’s order freezes all assets up to a value of $20 million.

It says the individuals and the corporation are “restrained from directly or indirectly” selling or moving any of the assets or money around, and from instructing or compelling any other person to do so, and from facilitating or “aiding and abetting” any act that has the effect of moving the money and cryptocurrency beyond reach.

It targets the accounts of individuals, specifically Patrick King, Tamara Lich, Christopher Garrah, Nicholas St. Louis and Benjamin Dichter — all key players in the convoy.

The court order names a corporation called Freedom 2022 Human Rights and Freedoms that Champ said was set up Jan. 30 to collect money from GiveSendGo, the U.S.-based online platform that collected more than $10.7 million in donations for what it said was food, fuel and shelter for convoy participants.

That flood of money poured in after another platform GoFundMe halted fundraising because of “police reports of violence and other unlawful activity” and said it would give more than $10 million raised at that point to charity. It later agreed to return donations to donors.

Late Thursday night, as arrests of Lich and Chris Barber, a director of Freedom 2022 Human Rights and Freedoms, were being made on the streets of Ottawa, the targets of the order were being served notice of the court order via their lawyers.

The order is broad.

Within a week, the court says the defendants have to provide an affidavit declaring their worldwide assets “whether solely or jointly owned, which are being used, have been earmarked for, or are intended to be used to fund, directly or indirectly, activities associated with the Freedom Convoy protests in or around the City of Ottawa … including but not limited to any digital assets (and any associated cryptocurrency wallet addresses),” it says.

If they refuse to do so, they could be facing a contempt-of-court charge, the judge says.

Deputy Prime Minister Chrystia Freeland told reporters earlier Thursday that an unspecified number of accounts related to the protests had already been frozen, but she would not say how many, citing operational concerns.

“The names of both individuals and entities as well as crypto wallets have been shared by the RCMP with financial institutions and accounts have been frozen, and more accounts will be frozen,” she said.

“We will have zero tolerance for the establishment of new blockades or occupations. We now have the tools to follow the money. We can see what is happening and what is being planned in real time and we are absolutely determined that this must end now and for good.”

She said online crowdfunding platforms and payment service providers “have started the registration process with (the federal financial intelligence agency) FINTRAC.

The federal government has not publicly spoken about its own analysis of the convoy’s fundraising totals.

But in documents justifying the declaration of a national emergency, the government cited a CBC analysis that showed 55 per cent of donations made public came from donors in the U.S compared to 39 per cent of donors located in Canada.

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TD Bank to hand convoy funds to court as organizers turn to cryptocurrency

A Canadian financial institution has struck another blow against the attempts by the convoy group blockading Ottawa to collect on the millions of dollars it has solicited in online donations.

On Friday, TD Bank told CTV News that it would apply to surrender to an Ontario court the money that had not been refunded by GoFundMe, totalling about $1 million, as well as some $400,000 the group had accepted through direct donations.

“TD has asked the court to accept the funds, which were raised through crowdfunding and deposited into personal accounts at TD, so they may be managed and distributed in accordance with the intentions of the donors, and/or to be returned to the donors who have requested refunds but whose entitlement to a refund cannot be determined by TD,” spokesperson Carla Hindman said.

Convoy lawyer Keith Wilson said that the group planned to fight to retrieve any money they had raised — and could be seen in a video promoting the group’s next play: a cryptocurrency fundraiser that has raised almost US$1 million.

“We will be taking expedited legal steps to have the restrictions on the donated funds lifted as soon as possible,” Wilson said in an email to CTV News.

It’s another hurdle in collecting any donations for the convoy, which has occupied Ottawa for about two weeks and blocked other border crossings as a protest of vaccine mandates. The ongoing protest prompted Ontario Premier Doug Ford to declare a provincial state of emergency Friday.

Of the more than $10 million raised by crowdfunding platform GoFundMe, only $1 million was deposited, before GoFundMe opted to return the remainder of the funds.

A second set of fundraisers, set up on GiveSendGo, has reached almost $9 million as of Friday.

But late Thursday, the Ontario Superior Court froze funds coming from those accounts, after an application from the province’s Attorney-General that alleged the funds would further a criminal act: mischief on the streets of Ottawa. GiveSendGo has said the order does not apply to it and is still raising the funds.

In a video posted on Facebook by supporters, convoy organizers discuss the strategy online for fundraising, turning to a crowdfunding website that has raised $913,000 as of Friday afternoon, in satoshis, which each represent a 100 millionth fraction of a bitcoin.

“The principle philosophy of what Bitcoin is is freedom,” one says. “For everyone who had their voice stolen by “GoFraudMe”, “GoFundMe,” you should feel solace that there are now alternatives.”

According to documents filed in an Ontario court, the Ottawa Police were watching that video too. In their affidavit, an officer referenced the convoy’s cryptocurrency fundraising strategy, but authorities didn’t apply to freeze any of it.

The digital currency is decentralized, say experts, so it is difficult to regulate. This crowdfunding approach may become the norm, Erica Pimentel of Queens University said.

“I think Bitcoin is going to become the currency of social movements. And they are going to be playing international whack-a-mole trying to stand in the way of those transactions,” Pimentel said.

James Cohen of Transparency International Canada said the widely publicized use of cryptocurrency to fund what authorities have deemed an illegal act could be the catalyst for more transparency in how groups fundraise internationally.

“This isn’t new. The warning signs have been up well before this event,” he said. “This situation kind of amplifies things as all Canadians are witnessing the effects of anonymous money in real time, so there’s more momentum to do things.”

Cohen said any international money or cryptocurrency will become subject to Canadian rules as soon as someone attempts to convert it to legal tender to buy things protesters have been spending money on, including gasoline.

“They can say Canada doesn’t have jurisdiction, but the second it touches a Canadian financial institution it does have jurisdiction,” he said.




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Hijab Row News Live Updates: Karnataka High Court bars all students from wearing saffron shawls (Bhagwa), scarfs, hijab, religious flags or the like in classroom

!1 New UpdateClick here for latest updates

Karnataka HC also makes it clear the order on Hijab was confined to such of the institutions wherein the College Development Committees have prescribed the student dress code or uniform

Hijab Row

Karnataka high court bars all students regardless of their religion or faith from wearing saffron shawls (Bhagwa), scarfs, hijab, religious flags or the like within the classroom, until further orders.

We request the State Government and all other stakeholders to reopen the educational institutions and allow the students to return to the classes at the earliest

– Karnataka High Court on hijab row

Two jawans of CoBRA battalion got injured in IED blast in Bulbul-Peshrar area where a joint team of Jharkhand Police & CRPF destroyed Maoist camp.

Both have been evacuated by helicopter. An extensive operation has been launched in the area: Jharkhand Police

Prez inaugurates Durbar Hall

Rajya Sabha adjourned till 14th March 2022 as the first part of the Budget Session 2022 concludes today

Sitharaman says there is no slowdown or recession in India, cites estimated 9.2 per cent GDP growth in current fiscal

Banning or not banning cryptocurrencies will come subsequently after consultations: FM replying to Budget debate in Rajya Sabha

Big economies gave large stimuli, which resulted in high inflation: FM

Airtel’s users reported outage for 5-10 minutes across India

Economy was Rs 1.1 lakh crore 7 years ago, now it is Rs 2.32 lakh crore: FM on charge of economy running on treadmill

I will tax (cryptocurrency) because it is our soverign right

– Finance Minister Nirmala Sitharaman in Rajya Sabha

Taxing cryptocurrency does not mean we are legalising it: FM Sitharaman

Breached the 6% tolerance limit for inflation on 6 occasions since 2014; inflation management is robust

– FM Nirmala Sitharaman

Rs 73,000 cr provided for rural employment guarantee scheme MNREGA, will give more if demand comes

– FM Sitharaman in budget reply in RS

Fertiliser subsidy rose from budgeted Rs 79,530 cr for FY22 to Rs 1.4 lakh cr in revised estimates; shows govt receptive to needs: FM

Hijab row: SC says it will protect constitutional rights of every citizen & take up pleas at appropriate time

We are on track to support the production of an additional 1 billion vaccine doses in India: Australian Foreign Minister Marise Payne at the 4th Quad Foreign Ministers’ Meeting in Melbourne

India saw the worst inflation between 2010 and 2014

Sitharaman says the study cited by opposition on MSMEs says 67 per cent MSMEs were shut, but temporarily

Hijab row: Supreme Court refuses to give an urgent hearing on plea challenging interim order of Karnataka High Court.

  • Supreme Court says it will take up the matter at an appropriate time
  • Supreme Court says it is watching what is happening in Karnataka and in the hearing before the High Court. Supreme Court asks lawyers to not make it a national-level issue and it will interfere at an appropriate time

FM clarifies the difference in GDP numbers in economic survey and budget; says there is no cause of worry

The difference was due to different sources of data

Rs 7.5 lakh cr spending will create jobs; job creation not limited to 60 lakh jobs from productivity linked incentive plan for 14 sectors

– FM Sitharaman

Indian economy suffered biggest contraction because of pandemic…Indian economy suffered Rs 9.57 lakh cr loss due to pandemic, compared to a loss of Rs 2.12 lakh cr in global meltdown in 2008-09: FM

Inflation was 9.1% during lesser financial crisis of 2008-09, while it is at 6.2% during pandemic that has bigger impact on eco: FM

Coming 25 years are going to be important for India. No wonder we’re calling it Amrit Kaal. If we don’t have a vision for India at 100, we’ll suffer similarly as first 70 years, when 65 years were with Congress that had no vision except supporting, building & benefitting one family

– Finance Minister Nirmala Sitharaman

Stable, sustainable recovery important motive for Budget 2022-23: FM Sitharaman in Rajya Sabha

Bringing in drones as an instrument or as a very effective tool for improving and modernising India’s agriculture. When you bring in drone, it has got several adaptations: FM Nirmala Sitharaman in Rajya Sabha

We went in for a Budget which would stand for continuity, which will be bringing in stability to the economy and predictability in taxation and also a vision for India at 100

– Union Finance Minister Nirmala Sitharaman, in Rajya Sabha

BharatPe has a huge amount of cash in bank, existing investors continue to back co; don’t need to raise capital in foreseeable future: CEO

Guidance which comes from PM Gati Shakti was essentially as we needed to bring in greater synergy, greater complementarity between various infrastructure spending that we’re undertaking because it’s not to say that infrastructure spending never happened in this country

– FM Sitharaman

External auditor’s interim report on governance review in BharatPe likely in a couple of weeks: CEO Suhail Sameer tells employees in a letter

Rupee slumps 31 paise to 75.46 against US dollar in early trade

74.78 cr total Covid19 tests conducted so far; 14,91,678 tests conducted in the last 24 hours: Union Health Ministry

Jab Update

171.79 cr vaccine doses have been administered so far in India

Minimum temperature in Delhi below normal at 8.2 degrees Celsius, air quality in the moderate category at 187 at 9 am

Thane district of Maharashtra reported 261 new coronavirus positive cases, which took its overall tally to 7,06,72

India reports 58,077 fresh COVID19 cases, 1,50,407 recoveries and 657 deaths in the last 24 hours

  • Active cases: 6,97,802 (1.64%)
  • Death toll: 5,07,177
  • Daily positivity rate: 3.89%
  • Total vaccination: 1,71,79,51,432

Sensex slumps 611.54 pts to 58,314.49 in opening session; Nifty declines 168.95 pts to 17,436.90.

EAM Dr S Jaishankar and US Secretary of State Antony Blinken hold a bilateral meeting on the sidelines of the 4th Quad Foreign Ministers’ Meeting in Melbourne, Australia

We can now affirm that the Quad as a grouping has delivered over 500 million vaccines over our commitment in the region. Across Indo-Pacific, those partnerships are very, very important

– Australian Foreign Minister Marise Payne in Melbourne

CPI(M) MP John Brittas has given a suspension of business notice in Rajya Sabha under rule 267 over Uttar Pradesh Chief Minister Yogi Adityanath’s statement on Kerala, West Bengal, & Jammu & Kashmir

11 pc jump in cyber crime in 2020, NCRB data in Home Panel report

EAM at Quad meet

China reports 56 new local COVID-19 casesChina reports 56 new local COVID-19 casesChina reports 56 new local COVID-19 cases

Defence Minister and BJP leader Rajnath Singh to address election meetings in Ghansali, Karnaprayag and Narendranagar assembly constituencies today.

US Secretary of State Antony Blinken to hold a bilateral meeting with EAM Dr S Jaishankar in Melbourne, Australia today.

Secretary Blinken is on travel to Australia, Fiji & Hawaii from Feb 7-13, while EAM Jaishankar is in Melbourne for QUAD Foreign Ministers meet.

7 new COVID-19 cases in Andamans, tally rises to 9,958

Finance Minister Nirmala Sitharaman to reply in Rajya Sabha on Budget, likely around 11.30 am today.

Meghalaya to ease Covid curbs from today

Double vaccinated people will not require RT-PCR tests to enter Meghalaya, from February 11 onwards

Delhi: Mughal Gardens to open for public from February 12 to March 16

Russia’s daily COVID-19 infections near 200,000 for 1st time

Russian authorities on Thursday reported nearly 200,000 new confirmed coronavirus cases, in another record fuelled by the rapid spread of the omicron variant amid a low vaccination rate and the absence of major restrictions for adults.

One dead after portion of a high rise collapses in Gurugram

  • A portion of the roof of the sixth floor of D tower of Chintels Paradiso housing complex in Gurugram’s Sector 109 has collapsed.
  • Total 3 trapped, of which 1 woman from 2nd floor dead. Of the remaining two, woman on the 1st floor still not spotted

US President Joe Biden warns American citizens in Ukraine to ‘leave now’: AFP

SC to hear plea on quota in private sector jobs today

The Supreme Court will hear today the appeal of the Haryana government challenging the Punjab and Haryana High Court order granting an interim stay on its law providing 75 per cent quota in private sector jobs for residents of the state.

President Ram Nath Kovind to inaugurate the newly-constructed Darbar Hall at Maharashtra’s Raj Bhavan in south Mumbai today

India and West Indies will lock horns in the third and final ODI at Ahmedabad’s Narendra Modi Stadium today

Tripura govt to impose night curfew from today

  • Tripura government has imposed a night curfew from 11 pm to 5 am from February 11 to 20 with an aim to curtail the spread of COVID-19 in the state.
  • The state government in its order released on Wednesday under which cinemas, spas and gyms will be allowed to operate with 50 per cent capacity. The order stated that restaurants are allowed to open till 10 pm with 50 per cent.

Delhi High Court to hear pleas over Future Retail Ltd’s Rs 24,731 crore merger deal with Reliance Retail today

Quad foreign ministers to meet today, S Jaishankar to participate

Australian foreign minister said she was looking forward to welcoming her counterparts from India, the US and Japan to “discuss our positive and ambitious agenda in support of a secure and prosperous Indo-Pacific”.




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