Crypto space hot news review dated 17.05.2021
Another week full of crypto news has passed. There were good events, and not so good, but they all showed that cryptocurrencies and blockchain have become an integral part of our world.
News digest of the past week
The crypto industry is reaching new heights. Let it be another person who saw financial freedom in the crypt, or a bank that included cryptocurrency in its service – this is an achievement of the crypto sector. And the events of the past week confirm this.
- Crypto Experts Predict that the growth of Ethereum is just beginning
Ethereum, the second-largest cryptocurrency by market capital, soared above $4,000. This comes just a week after the asset price exceeded $3,000. According to CoinMarketRate, the all-time high price of ETH was $4,140. 10, meaning that Ethereum has gained about 470% since the beginning of the year, when it was trading at $725.
Ethereum has set several record highs this year, however, this month saw the biggest uptrend – the value of ETH has risen by more than 30% in less than a week. Ethereum’s market dominance has grown significantly to 19% – the level the asset last touched three years ago.
On the eve of the weekend rally, Mark Cuban said that Ethereum will rise in price, and gave three reasons for this in support of his forecast. Several other crypto experts and analysts are convinced that the token expects even greater profits.
Magnetic co-founder Megan Kaspar also predicted that by the end of the year, Ether will be worth about $10,000. Kaspar previously claimed that Ethereum would reach an average of $3,000, and this prediction came true in less than five months. She announced her new target price, speaking on Yahoo Finance Live, and added that the market capital of Ether will grow to $1 trillion.
“Network upgrades alone can push Ethereum to the trillion-dollar market cap that Bitcoin is today, and this will bring the crypto asset a value of approximately $8,000 to $10,000.”
In a Saturday interview with the Altcoin Daily YouTube channel, crypto influencer Ben Armstrong made his Ether price predictions. He told the channel’s hosts that Ethereum will reach $10,000 before September:
“I’m waiting for the mid-June Broadcast for $5,000. I am waiting for the end of August to Air for $10,000, but I still believe that it can grow to $27,000. I’ll shave my head in the New Year if it doesn’t reach 10K by then.»
Lark Davis, commonly known as The Crypto Lark, also outlined his optimistic prediction on Twitter that the price of Ether is approaching $10,000.
According to CoinMarketRate, Ether’s market capital is currently outpacing some big-name companies, including NVIDIA, Johnson & Johnson, Walmart, MasterCard, and PayPal. It is also on track to surpass JPMorgan Chase, which has a market capitalization of $488 billion, and could challenge Samsung if the upward trend continues.
- UBS to offer wealthy clients access to cryptocurrency
It is reported that the Swiss bank UBS is exploring ways to offer its wealthy clients access to cryptocurrencies.
Last year, many traditional financial institutions entered the cryptocurrency market. Some of them directly or indirectly offer customers access to cryptocurrencies. UBS could be next in line.
According to Bloomberg reports, UBS wants to offer its rich clients access to cryptocurrencies. However, customers will be allowed to allocate only a small portion of their capital to limit their exposure to cryptocurrencies due to their volatility. The sources added that UBS is keeping its options open, and one of them is allowing clients to invest through third-party investment vehicles.
The move will mirror the actions of Morgan Stanley and Goldman Sachs. A few weeks ago, investment banks announced that their rich clients could access cryptocurrencies. Morgan Stanley has already launched the service, and Goldman Sachs plans to launch this quarter.
Citigroup and JPMorgan Chase are two other leading U.S. banks that are reportedly considering similar moves. The sources added that UBS is considering entering the cryptocurrency market due to high demand from its customers.
The high demand for crypto and related products is the reason why other leading investment banks have entered the crypto space. “We are closely monitoring the development of digital assets. It is important to note that we are most interested in the technology underlying digital assets, namely distributed ledger technology”, UBS said in a statement.
The Bitcoin rally over the past twelve months has attracted the attention of retail and institutional investors in various parts of the world. As a result, a large number of both have entered the market, raising the industry’s turnover to $2 trillion.
- The world’s First Regulated Stablecoin GYEN starts trading on Binance
Binance and GMO Internet Group have teamed up to list GYEN, a Japanese yen stablecoin that is now available on the crypto exchange.
GYEN, a regulated stablecoin pegged to the Japanese yen, will start trading on Binance. This follows a partnership between Binance , the world’s largest cryptocurrency exchange, and Tokyo-based global financial technology conglomerate GMO Internet Group.
GYEN is a financial-grade stablecoin designed to ensure that more people benefit from the growing blockchain financial sector. The companies agreed to purchase GYEN directly from GMO Trust so that users could exchange the 1:1 token for fiat.
The use of stablecoins has grown over the past couple of years as the number of major companies and institutions seeking to adopt digital assets continues to grow. They play an important role in the cryptocurrency market, offering price stability, as a result of which the crypto and blockchain space attracts new participants.
It is this need for a stable digital asset that has led to an increased trend towards digitization of some of the world’s leading currencies, including the US dollar and the Japanese yen. For example, the popular stablecoins Tether (USDT) and TrueUSD (TUSD) are pegged to the US dollar. In the case of GYEN, it is 100% Japanese yen.
In addition to 100% fiat support, GYEN is fully regulated in the US by the New York Department of Financial Services( NYDFS), a body that also licenses cryptocurrency-related transactions.
GYEN will be available to institutional firms as well as retail users looking for trading, hedging and arbitrage opportunities. Stablecoin will also allow you to make calculations and payments based on the blockchain.
- eBay now allows you to Buy NFT on its platform
eBay, already a hub for physical collectibles, is now implementing its plan. The company told Reuters that customers will be able to purchase NFT. eBay is one of the first major e-commerce platforms to offer NFT.
The announcement said the company would start with a small group of trusted sellers and then expand to attract more. eBay’s decision to allow the sale of NFT on its site appears to be part of its plan to break into the digital collectibles market. The announcement revealed that the company is also working on introducing “blockchain-based collectibles” to the site over the next few months.
Payments for tokens will be made only in US dollars – this is a significant difference from other trading platforms that use Ethereum payments. In the absence of a cryptocurrency payment option, interested buyers will use a traditional payment system linked to a PayPal account or credit card.
eBay is trying to capitalize on the recent interest in NFTS, however, not all NFTS categories will be put up for sale on the platform. Currently, customers will be offered NFTs in exchange cards, entertainment, music, and art. It is reported that based on eBay user reviews, more NFT sectors will be presented on top of the current selection.
According to The Block, most of the NFTs available for sale on the platform are in the WAX blockchain. Therefore, buyers will need to create a WAX wallet to complete transactions and receive tokens.
- As it turned out, Elon Musk does not know how Bitcoin works
A huge surprise was caused by the statement of Elon Musk, when he announced that Tesla no longer accepts payment in BTC for the purchase of an electric car.
Recall that in March, the automaker made headlines by integrating bitcoin payments on its website so that customers can buy cars and pay in the BTC cryptocurrency.
Now, referring to Bitcoin mining, which is harming the environment due to the high electricity consumption of mining farms, Elon Musk says that this is the reason for refusing payments in Bitcoin.
This announcement did not please the Bitcoin community and supporters of the crypto industry in general. Did Elon Musk just learn how Bitcoin works? And this is the great inventor of modernity, from which the image of Iron Man Tony Stark was made?
Anyone who knows anything about the crypto sector knows how BTC coins are mined, and that this mining is really very greedy for electricity. So what?
And this is the reason why Elon Musk is reconsidering his decision to integrate payments in Bitcoin, but indicates that the company will not sell its BTCs? He added that cryptocurrency is good, but its promise cannot have a “high price for the environment”. His message indicates that the company will resume transactions with Bitcoin when this cryptocurrency uses more sustainable energy. Does it mean, never?
Will this maneuver be aimed at replacing the payment of one asset with another?
On May 11, Elon Musk posted a survey on his Twitter account asking his audience whether to embed a Dogecoin (DOGE) payment on the Tesla website. Unsurprisingly, fans of Elon Musk and Dogecoin overwhelmingly responded in the affirmative.
The announcement of the suspension of crypto payments on Tesla appeared immediately after the publication of the survey on Twitter. This may also explain this sudden move, which surprised the whole world, and caused an immediate drop in the price of BTC.
However, there is one small but very important nuance: the Dogecoin cryptocurrency is mined in the same way as Bitcoin, and therefore also consumes electricity. Musk doesn’t know that either?
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