Daily crypto news alerts for 19th December, 2020.
🗞Coinbase CEO “Bitcoin, Beware of Volatility”… “Big fluctuation in price”
It has been argued that the price volatility caused by the bitcoin that has changed its new point should be watched.
On the 17th (local time), according to Fortune magazine, an economic magazine, Brian Armstrong, CEO of the cryptocurrency exchange Coinbase, warned through a blog that "the amount of bitcoin trading is exploding and the price fluctuation is also increasing."
He said, “As we witnessed in 2017, BTC is showing a sharp decline and an unbelievable rebound recently,” he said.
He pointed out that "cryptocurrency will definitely change the existing rules of the game" and "it will be accompanied by such risks. He also added that price flows can change up or down much faster than traditional stock markets.
Along with the recent BTC surge, they also commented on the case of the global cryptocurrency exchange Binance server crash. "This is because we underestimated the market demand for Bitcoin," he said. "We need to add more servers."
"The CEO of Coinbase, Armstrong is one of the most introspective bitcoin bulls," said Fortune.
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🗞About 100 non-FCA cryptocurrency companies in the UK... “We may suspend service next month”
While the UK's Financial Supervisory Service (FCA) has announced a plan for non-operational measures against undocumented cryptocurrency companies, it is found that there are more than 100 companies involved.
According to CoinDesk, a media specializing in cryptocurrency on the 17th (local time), there are only 4 cryptocurrency companies that have licensed FCA, and about 100 companies are waiting.
Previously, the FCA said, "Cryptocurrency businesses in the UK can only be operated by obtaining temporary registration by FCA."
In the future, local cryptocurrency businesses in the UK will be able to operate only after obtaining temporary registration by FCA.
FCA said, "We are continuing the examination for issuing licenses," and said, "It is difficult to finish until January 9th next year."
Considering this situation, it is expected that a number of cryptocurrency companies in the UK will temporarily suspend trading in January.
Two of the licensed companies are known as subsidiaries of Gemini, a large cryptocurrency exchange.
The media pointed out that “the FCA's review process was too slow,” and that “the city regulation registration has not been processed in the past three hospitals.”
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🗞Miller Bruise Strategist “Bitcoin May Adjust Early Next Year”… ”Expected 25~30%”
"Bitcoin (BTC) will receive an adjustment of around 25-30% early next year," said Matt Malay's market strategy director at Miller Tabak, an asset manager.
According to CNBC, a US economic media on the 17th (local time), Matt Malay said, "BTC will continue to rise in the short term, but I am worried about the midterms."
He explained the background, saying, “The excess liquidity of the market is a problem,” and “the funds that led the mega-tech stock rally last year have been transferred to bitcoin at the same time as the stock price stabilizes.”
In addition, he emphasized that investors should not underestimate the pattern of past volatility, citing the weekly relative strength of Bitcoin. It is explained that the current BTC weekly relative strength is lower than in 2017, when the number exceeded 90 twice, but at the time of 2017, a decline of 36% and 64% respectively followed.
Still, he pointed out that BTC will be super strong in the long run. Investors wishing to hold long-term, he explained, ignoring the adjustments that will be made at the beginning of the year and holding them for 3 years, 5 years and 7 years.
Meanwhile, BTC is recording $23101.09 based on the coin market cap provision at 11:49 on the 18th.
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🗞DeFi-project Opium Protocol will launch insurance and staking service
Supported by Galaxy Digital and Alameda Research, the Opium Protocol crypto derivatives platform has announced the launch of a risk hedging service for the DeFi sector.
Opium Insurance has the following features:
Buying and selling insurance if necessary;
A wide range of different types of insurance: from hacking smart contracts to default of a stablecoin issuer;
The ability to add assets to liquidity pools to generate additional profit.
“What do you choose: 9% income with the risk of losing everything at any time, or a protected 7% income after a 'donation' of 2% to cover your insurance with Opium Insurance and peace of mind?” - says the project blog.
Representatives of the platform propose to think for a moment what will happen to the capital placed in Tether (USDT) if it loses the peg to the US dollar, which is close to one.
Buyers select an insurance product, pay a premium to the pool, and receive a tokenized insurance position. In the future, they can sell this asset on the secondary market or use it to receive payment in the event of an insured event.
Opium Insurance is a non-custodian service, insurance products are sold by users who are willing to take such a risk. The payment is guaranteed by the security blocked by smart contracts.
Sellers contribute capital to the insurance pool and receive a liquidity provider token. Due to this, they receive income on their deposit, since the premium paid by the buyers is added to the pool.
The creators of the project announced the launch of a liquidity mining program for the native OPIUM token.
As a reminder, DappRadar analysts suggested that insurance will play an important role in the DeFi ecosystem.
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🗞Germany allowed registering electronic securities on the blockchain
The German Cabinet has passed a new law allowing the registration of electronic securities using the blockchain.
The law simplifies the rules that until now have compelled issuers and holders of securities to document transactions using paper certificates. German Finance Minister Olaf Scholz said:
"A paper certificate may be dear to someone for nostalgic reasons, but the future belongs to its electronic version."
He also added that e-securities cut costs and lower administrative barriers. The paper certificate can now be replaced with an entry in the central securities depository or in the register maintained by private sector banks. It is also possible to write in a blockchain based ledger.
Justice Minister Christine Lambrecht said the law would bring legal clarity and enhance the potential of new technologies. Achim Berg, head of the Bitkom business association, said:
"Blockchain has the potential to completely change current procedures and fundamentally affect the way entire sectors of the business operate."
In August, it became known that German regulators will amend the current legislation to facilitate the introduction of blockchain into the securities market.
