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Bitcoin price plunges to $17k as ethereum, BNB, cardano, solana and ripple also struggle

Bitcoin has pretty much lost all its gains throughout the pandemic and hit a new horror low that will make history.

Cryptocurrencies including bitcoin, ethereum, BNB, cardano and Ripple XRP have faced a tough year, with fluctuating values and more.

And it doesn’t look like the downward trend will turn around any time soon, reports The Sun.

Bitcoin, the world’s top-ranked cryptocurrency, has dropped by nearly 7.5 per cent in the last day.

At the start of last month, bitcoin was trading at US$36,141.33 (A$52,000), according to CoinMarketCap.

But now, a month and a half later, the outlook is even worse.

As of Sunday morning AEDT, bitcoin fell as low as $US17,601.58 (A$25,300) and stayed below $US20,000 according to CoinDesk. It is currently trading at US$18,900 (A$27,200).

That’s a loss of about 15 per cent from Friday, and represents a whopping 74 per cent dip in value since its all-time high in November when it nearly hit US$69,000 (A$99,000) per coin.

In fact, all bitcoin’s gains over the last two years of the pandemic have pretty much been wiped – BTC hasn’t been this low since October 2020.

Other cryptocurrencies were following similar trends, with sellers like ethereum, cardano and solana falling upwards of four per cent in just one day.

Admittedly, the stock market overall is down as investors sell risky assets, and the values are tightly linked, meaning a dip all around.

The latest plunge follows a crypto crash at the start of December, shortly after bitcoin hit a record value of US$69,000 in November.

One trader lost $5 billion after the price of bitcoin plummeted in December, highlighting the risks of investing in crypto.

And in another recent blow to the market, Crypto.com users were unable to access funds due to “unauthorised activity” on some accounts.

Last year users of cryptocurrency exchange Binance were unable to access their cash after suspending UK withdrawals.

And Etoro customers were locked out of their accounts after the service went down during a crypto crash.

To top that off, UK-based cryptocurrency lending company Celsius Network suspended all transactions on Monday as the bloodbath continued. Its 17 million users are still suspended.

Why have crypto markets been down?

Cryptocurrencies have been especially volatile lately and there a few reasons why.

Twitter’s chief financial officer Ned Segal said at the end of last year that investing in crypto “doesn’t make sense right now”, causing concern among Silicon Valley buyers.

China also announced plans to clean up virtual currency mining, according to CNBC.

Many crypto-mining regions in China are now radically reducing operations.

Previous moves by the country to crackdown on mining and trading of crypto has previously sent markets plunging.

Crypto volatility

Cryptocurrencies are highly volatile, meaning their values often make large swings with no notice, as the latest plunge shows.

Investing in cryptocurrency is a very risky business.

You can be left with less money than you put in, and could even lose it all – even if you spend on what appears to be a safe bet.

You might not be able to access your investment if platforms go down and you could be left unable to convert crypto back into cash.

There have also been warnings around scams related to cryptocurrencies, with people losing vast sums of money.

You should never invest in something you don’t understand and you should never put in money that you can’t afford to lose entirely.

This article appeared in The Sun and was reproduced here with permission.

Read related topics:Cryptocurrency

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Crypto Unfiltered – Are Smart Contracts True to Their Names?

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In this week’s episode we talk about Smart Contracts and their impact on BlockChain Networks. Smart Contracts are like typical legal contracts, that are written in code, not text, and on a blockchain network, rather than on paper. We’ll also look at how the crypto market is performing the world over and what’s the status of major tokens and coins. Stay tuned for this and a lot more in this week’s Crypto Unfiltered.(In Partnership With CoinSwitch)


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What’s Liquid Staking and Its Impact on DeFi?


In this week’s episode we talk about liquid staking and how it impacts the world of decentralised finance (DeFi). We will also talk about how investors can benefit from liquid staking. We’ll also look at how the crypto market is performing the world over and what’s the status of major tokens and coins. Stay tuned for this and a whole lot more in this week’s Crypto Unfiltered.

 


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Cryptocurrencies in free fall after biggest Fed rate hike in two decades


on Sunday witnessed another round of free fall, slipping below $35,000 per coin, as the global crypto market went through a massive slump of over 4.5 per cent in the past 24 hours to $1.66 trillion.


All cryptocurrencies were weighed down as central banks globally tried to control inflation by raising interest rates.





is down more than 20 per cent since the beginning of this year.


On Sunday, was hovering around $34,400 and ethereum, which is the second largest cryptocurrency, plunged 4.8 per cent to $2,545.


Dogecoin prices were trading about 1.2 per cent lower at $0.12 whereas Shiba Inu was down by over 4.9 per cent to $0.00001887.


The US Federal Open Market Committee (FOMC) last week voted to raise interest rates by 0.5 per cent, marking its biggest upward adjustment in over two decades.


Federal Reserve Chair Jerome Powell also raised interest rates to combat inflation.


Since the Federal Reserve laid out plans to begin hiking interest rates in November last year, Bitcoin’s price has fallen by over 40 per cent, reports Cointelegraph.


Bitcoin finished the month of April down by 17 per cent, making it the worst monthly performance this year.


Bitcoin investors are likely to lose up to $545 million this year, owing to various reasons like forgetting passwords to their wallets or making a mistake in recording their “seed phrases”, according to a new report.


A seed phrase is a series of words generated by your wallet that give you access to the crypto associated with that wallet.


Analysts have estimated that at least 20 per cent of all Bitcoin is lost and that the majority of those funds are irretrievably lost.


According to CryptoAssetRecovery.com, between $272 million to $545 million of Bitcoin will be lost this year.


–IANS


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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

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Coin Burning: How Is It Done & Why?

Crypto burning has been in the spotlight over the last few weeks, mostly due to the incessant burning of Shiba Inu tokens (SHIB). The developers of this meme coin are on a burning spree to save the coin from devaluation in a highly volatile crypto market. So far, close to 260 billion SHIB tokens worth $25,000 have been burnt, and a new burning mechanism is also underway to take this strategy forward.

But what is coin burning?

When a certain number of crypto tokens are said to be burnt, it means they have been permanently pulled out of circulation. This is done by simply transferring those tokens to a ‘dead wallet’. The private key for this wallet is unknown, so the crypto is lost forever.

But why would developers burn their cryptocurrency?

When there is excessive cryptocurrency flowing in the market, the price of that token remains low as the demand never exceeds the supply. In such a scenario, burning a portion of the cryptocurrency acts as a ‘deflationary’ move. The scarcity of the token rises and triggers a price appreciation of the remaining tokens in circulation.

One of the most famous crypto burns was when Ryoshi, the Aliased creator of the Shiba Inu, gave Ethereum founder Vitalik Buterin 50% of the SHIB supply upon its launch. However, in 2021, Buterin burnt 90% of his tokens and donated the remaining to charity, citing that he did not want to become “the locus of power”. The burnt tokens were estimated to be worth $6 billion then and would have been worth trillions of dollars now.

But what goes on under the hood of a burn transaction? How are these coins burnt? Well, coin burns can be segregated into two main categories, they are:

1. Protocol Level Mechanisms:

Proof-of-Burn (PoB): This consensus mechanism requires users to stake their coins to become network validators. However, the staked coins are sent to a dead wallet, after which, they can no longer be accessed or spent. The more coins you burn, the higher your chances of becoming a validator.

Having burnt their coins, the users can qualify as validators and receive newly minted coins for every block they verify and add to the blockchain. These mining rewards should then appreciate over time due to the continuous burning of coins as part of the network’s consensus mechanism (users are constantly burning their coins to qualify as validators).

Per-Transaction Burns: Cryptocurrencies like Ripple (XRP) are coded to burn a fixed number of tokens as a part of every transaction. It is usually taken from gas fees paid by the transactor and gets redirected to the burn address. While the gas fees ensure that legitimate transactions go through, burning a small portion ensures that the token upholds its value.

2. Economic Stability Moves:

Unsold Coin Burns at ICO: New tokens are launched at an Initial Coin Offering (ICO), wherein investors bid to gain ownership of the tokens. However, some tokens may remain unsold at the end of the event. Developers can decide to get rid of these tokens by burning them. This results in a significant price increase for existing owners and the developers themselves. It is also a sign of the developers’ commitment to the long-term goals of the project.

Dividend Burns: This is a mechanism to reward existing token holders. Blockchains like Binance implement the buyback-and-burn strategy wherein they repurchase some tokens from the open market (at market prices) and burn them. The price appreciation from this move acts as a dividend reward for the investors holding that token.

The blockchain periodically burns its native tokens to sustain or enhance their value. This periodic burning is achieved by using a ‘burn function’. This smart contract automatically sends a specific number of circulating tokens to the burn address. Binance aims to eventually eliminate 50% of its volume with this strategy.

One of the most significant crypto burns in history is that of the Terra network in November 2021. Terra burnt 88.7 million LUNA tokens which amounted to $4.5 billion back then. Terra also burnt 29 million more LUNA tokens worth $2.57 billion in February 2022.

Crypto burning serves only one purpose — an increase in the value of each remaining token. Sometimes developers announce a vast crypto burn, but instead of sending the assets to a dead wallet, they just redirect them to a controlled wallet which can be used for nefarious purposes. This is why due diligence is critical before investing in any cryptocurrency.


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Criminals had $11 billion worth illicit cryptocurrencies in 2021


have made criminals richer and in 2021, criminals held $11 billion worth of funds with known illicit sources, compared to just $3 billion at the end of 2020, a new report has revealed.


As of the end of 2021, stolen funds account for 93 per cent of all criminal balances, at $9.8 billion.





Dark Net market funds are next at $448 million, followed by scams at $192 million, fraud shops at $66 million, and ransomware at $30 million, reports Blockchain data company Chainalysis.


Criminal balances also fluctuated throughout the year, from a low of $6.6 billion in July to a high of $14.8 billion in October.


“The fluctuations are a reminder of the importance of speed in cryptocurrency investigations, as criminal funds that have been successfully traced on the Blockchain can be liquidated quickly,” the report mentioned.


This year, their has been a large drop in criminal balances in February due to the US Department of Justice’s $3.6 billion seizure of stolen in the 2016 Bitfinex hack.


“Following that seizure, criminal balances currently stand at roughly $5 billion as of February 9, 2022,” the report noted.


Overall, Chainalysis has identified 4,068 criminal whales holding over $25 billion worth of cryptocurrency.


“Criminal whales represent 3.7 per cent of all cryptocurrency whales a” that is, private wallets holding over $1 million worth of cryptocurrency,” said the report.


In total, 1,333 criminal whales received between 25 per cent and 90 per cent of all funds from illicit addresses.


“Illicit funds received by criminal whales also come from more varied sources than the funds making up overall criminal balances,” the report added.


When it comes to the location of criminal whales, Russia, South Africa, Saudi Arabia and Iran top the list.


In a biggest-ever cryptocurrency haul, the US Department of Justice (DOJ) last week seized and recovered over 94,000 Bitcoins worth $3.6 billion, stolen from crypto exchange Bitfinex by a US-based entrepreneur couple in 2016.


The couple — Ilya Lichtenstein, 34, and Heather Morgan, 31 — faces charges of conspiring to launder money and to defraud the US government, facing up to 25 years in prison if convicted.


–IANS


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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

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As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

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Meta winding up its ambitious cryptocurrency project: Report


Facing regulatory hurdles, Meta (formerly Facebook) is reportedly winding up its ambitious yet controversial project that its CEO Mark Zuckerberg once defended in front of the US Congress.


Originally launched as Libra and later renamed as the Diem Association, the initiative “is weighing a sale of its assets as a way to return capital to its investor members,” Fortune reported on Tuesday, citing people familiar with the matter.





Diem is reportedly in discussions with investment bankers about “how best to sell its intellectual property and find a new home for the engineers who developed the technology”.


The association apparently made an arrangement with Silvergate Capital Corp to issue Diem digital token, but “resistance from the US Federal Reserve dealt the effort a final blow”.


The Diem Association as well as Meta didn’t immediately respond to the report.


Facing regulatory backlash, the Libra Association in December 2020 decided to change its name to Diem Association in a bid to reinforce its organisational independence.


The Diem Association (Diem means day in Latin) also had its subsidiary called Diem Networks to serve as the payment system operator.


and 20 partner organisations formally joined the digital currency project during a meeting in Geneva in October 2019.


In a move to win regulators’ hearts, the association had announced that its will offer stable coins backed by just one nation’s currency, meaning some coins offered would serve as the equivalent value of a dollar or a Euro.


However, several heavyweights pulled out of the Libra project, like PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe and Booking Holdings and Vodafone over privacy concerns.


–IANS


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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

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