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XRP effect? Did Jay Clayton really just echo Ripple’s talking points?

Jay Clayton, the former Chairman of the Securities and Exchange Commission, doesn’t exactly have the coziest relationship with the crypto-community. While he was never very popular, what pushed his fa

The post XRP effect? Did Jay Clayton really just echo Ripple’s talking points? appeared first on AMBCrypto.

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Jay Clayton, the former Chairman of the Securities and Exchange Commission, doesn’t exactly have the coziest relationship with the crypto-community. While he was never very popular, what pushed his favorables down the drain was his last act in office – The SEC charging Ripple and its executives with illegal securities offerings.

Needless to say, the pushback from the community was vocal and vicious, with many like defendant Garlinghouse using the aforementioned lawsuit to suggest that the United States and its SEC weren’t tech-friendly and were dead set against innovation in the country. Curiously, while the price of XRP tanked immediately after the news broke out, on the back of small legal victories and the “us v. them” narrative gaining steam, both XRP and Ripple recovered.

In doing so, many believe the SEC now has egg on its face, with a recent Forbes article going as far as suggesting that the SEC, not Ripple, is on trial right now.

Clayton isn’t SEC Chair anymore, “crypto-friendly” Gary Gensler is. However, the former’s last act as Chair has new meaning with every new deposition and every new motion in the ongoing case.

Ergo, it was in this context of these developments that Jay Clayton’s latest Op-ed for Wall Street Journal came out of the blue.

Now, Clayton touched upon quite a few points here, including the logistics of the U.S introducing the Digital Dollar and cryptocurrencies being the “preferred method” for hackers (Clearly, Clayton isn’t aware of January’s Chainalysis crypto-crime report which found that while ransomware attacks rose significantly over the last year, illicit activities made up just 0.34% of all cryptocurrency transaction volume – Down from 2% the previous year).

What grabbed the most attention, however, was Clayton’s assertion – “Innovation is welcome absent some legal reason to oppose it.” What’s more, the former Chair of the SEC also conceded to the need for regulatory clarity and efficiency, while also touching upon the need for a proactive and coordinated approach to ensure the “leadership role” of the U.S financial market.

Now, read the aforementioned points carefully. These aren’t just mere arguments in an Op-ed. They are talking points, with each one of them sharing glaring similarities with what the likes of Ripple, its execs, and other industry representatives have said over the past year. In common parlance, Clayton seemingly took a u-turn, with the ex-Chair’s viewpoints now, impossibly, in alignment with the views of most in the crypto-community.

What might have precipitated such a reversal, however? Well, one can only speculate. Clayton’s present role as advisor to One River Asset Management may have played a role, perhaps.

A simpler explanation, however, can be that Clayton has finally recognized which way the wind is blowing. As highlighted previously, of late, it has been the SEC on trial, not the San Francisco-based blockchain firm. The fact that Judge Netburn had to order the SEC, twice, to turn over internal Bitcoin, ETH, XRP communications, only to have the agency ask for yet another extension, is a case in point.

In the words of many in the community, Clayton is finally “cornered.”

Ripple’s Brad Garlinghouse was one of those to comment on the same as well, calling out the aforementioned Op-ed and its observations as “ironic.” While the exec did say that it is better late than never, he was quick to add,

“Cryptos, like nearly any new innovative technology, can be used for good or bad purposes. The problem is that US companies seeking to be compliant and use this tech for good are left in limbo (or for Ripple, worse!) because of a lack of a clear, predictable framework.”

Ripple already has Mary Jo-White, Clayton’s predecessor as SEC Chair, in its corner. Right now, it would seem that Clayton himself might be siding with the defendants’ talking points too. What does this mean though? Well, probably nothing much.

What it will do, however, is fan talks of a settlement once again. When that might be, alas, is a question for another time.


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Blockchain

What if Michael Burry is Right? BTC Price Confirms “Death Cross” Formation

Popular hedge fund manager Micahel Burry, who correctly predicted the 2008 financial crisis beforehand, has now predicted the “mother of all crashes”. Burry has been vocal about the latest developments in the crypto space along with his views on the global macroeconomic situation. Last Thursday, the founder of Scion Asset Management said: “All hype/speculation is

The post What if Michael Burry is Right? BTC Price Confirms “Death Cross” Formation appeared first on Coingape.

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Popular hedge fund manager Micahel Burry, who correctly predicted the 2008 financial crisis beforehand, has now predicted the “mother of all crashes”. Burry has been vocal about the latest developments in the crypto space along with his views on the global macroeconomic situation. Last Thursday, the founder of Scion Asset Management said:

“All hype/speculation is doing is drawing in retail before the mother of all crashes. #FOMO Parabolas don’t resolve sideways; When crypto falls from trillions, or meme stocks fall from tens of billions, Main Street losses will approach the size of countries. History ain’t changed”.

Burry’s comments have raised anxiety in the crypto space. Bitcoin has been constantly trading under pressure for the last week and collapsed another 8% on the weekend to slip below $33,000 levels. The bitcoin price crash comes with the liquidation of multiple long positions in the last few hours.

Crypto Analyst Confirms Death Cross Formation on Bitcoin Price

The recent Bitcoin price drop on the technical charts has also confirmed the formation of ‘death cross’, a bearish indicator that occurs when the short-term average of Bitcoin drops below its long-term average.

This can lead to further downside pressure on the Bitcoin price leading to a major crash. Fred Ehrsam, co-founder of the world’s largest crypto exchange, Coinbase, also issued a similar warning with the death cross.

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  • Bitcoin price and Wall Street’s Correlation

Although Bitcoin (BTC) has been many times referred to as a hedge asset to stock, it has rather shown strikingly similar price movements with Wall Street. Recently, popular crypto analyst Willy Woo noted that Bitcoin’s further price action will be based on how Wall Street reacts.

Last Friday, June 18, the Dow Jones closed under its support levels striking fear in the market. However, the Dow Jones futures have opened 200 points up at positive levels earlier today. thus, analysts are expecting a positive opening for the start of this week. It will be interesting to see whether any positive price action on Wall Street will help BTC recover from the bottom.

Burry – “The Problem With Crypto Is Over Leverage”

The famed investor noted that the major problem with the crypto market today is very high leverage. “If you don’t know how much leverage is in crypto, you don’t know anything about crypto, no matter how much else you think you know,” he added.

But Burry added that he is not a critic of Bitcoin. “I don’t hate BTC. The long-term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies.”

burry is not shorting BTC because “In the short run anything is possible”. Famed author of Rich Dad Poor Dad Robert Kiyosaki also noted that there’s a major bubble brewing in the stock market. He said that he will buy more Bitcoins as it reached $24,000.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Bitcoin Price Dips Again; Is Michael Burry Right Or Just Another Chinese FUD?

Bitcoin price is taking a dip again as it crashed to $32,000 over fears of Chinese Central Bank denying any kind of banking and payment services access to crypto establishments. Also, the predictions made by “the big short” fame Michael Burry about the greatest stock bubble burst ever seems to be playing out as S&P

The post Bitcoin Price Dips Again; Is Michael Burry Right Or Just Another Chinese FUD? appeared first on Coingape.

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Bitcoin price is taking a dip again as it crashed to $32,000 over fears of Chinese Central Bank denying any kind of banking and payment services access to crypto establishments. Also, the predictions made by “the big short” fame Michael Burry about the greatest stock bubble burst ever seems to be playing out as S&P 500 index continued to decline for fourth consecutive day.

Chinese Central Bank Interviews Banks & Payment Services

As if China’s crackdown on miners was not enough to crash Bitcoin Price, on June 21st early morning another FUD citing cease of banking and payment services to crypto business surfaced. Chinese and few other journalist reported that Central Bank of China (PBoC) has asked banks and payment services in China to immediately stop essential services like opening accounts, clearing and settlement etc. for crypto related businesses.

A chinese newspaper published an update in regards to this matter. As per Chinese news website, cls.com , Chinese officials interviewed various banks and payments firms to discuss virtual currency manipulation. These banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank of China, Industrial Bank and Alipay (China ) Network Technology Co., Ltd. and other banks and payment institutions.

                                    Source: cls.com, Chinese Central Bank Interviews banks and payment firms.

The People’s Bank of China has clearly instructed banks and payment services to halt,

“Products or services such as trading, clearing, and settlement. Institutions must comprehensively investigate and identify virtual currency exchanges and over-the-counter dealers’ capital accounts, and cut off the payment link for transaction funds in a timely manner;”

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Stock Markets Continue to Fall. Is Michael Burry Right?

The US stock market prices suffered the biggest dip MoM on Friday and the stock prices continued to decline for four consecutive days. The weekly losses of S&P 500 has spiked to 1.9% which is highest since early February this year. New york times, cited the reason for downfall as,

“Investors have been adjusting their expectations for interest rates, leading to a turbulent stretch for the stock market.”

Meanwhile, Michael Burry predicted in February 2021, the greatest stock market bubble of all times and even disclosed that he is short on Tesla, one among the best performing stocks this year. For those who don’t know, Michael Burry is famous for predicting 2008 banking crisis and making millions on his shorts.

So, Will Bitcoin Follow Stock Market Crash?

Historically, Bitcoin is positively correlated with S&P 500 Stocks index meaning that a downfall in stock market will be followed by Bitcoin crash as well. Covid19 crash proved that Bitcoin is no safe haven when it comes to a widespread fall in stock prices.

Although many A rated analysts including Ark Capital’s Cathie Wood believe that bull run in stocks and bitcoin is not over and that prices will rebound later this year.

To sum it up, here’s  transcript of a tweet by Michael Burry, which was later deleted.  In February 2021 he predicted that stock prices will fall in coming months and that we are headed to largest stock bubble burst ever.

“$TSLA and $BTC correlation coefficient is 0.951967 over the last six months,” Burry said. “@elonmusk going for perfect unity? Nah, Elon dreams the impossible. He is determined to break unity. Correlation > 1. And he has history on his side. $TSLA and $BTC investors can make anything happen.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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Real Estate Mogul Investing in Blockchain-Based Social Network

Billionaire real estate mogul Frank McCourt is investing $100 million into a blockchain-based social network protocol.

The post Real Estate Mogul Investing in Blockchain-Based Social Network appeared first on BeInCrypto.

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Billionaire real estate mogul Frank McCourt is investing $100 million into a blockchain-based social network protocol.

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The endeavor is called Project Liberty, which is focusing on building a publicly accessible database of people’s social connections. Using blockchain technology, Project Liberty aims to construct a new internet infrastructure called the Decentralized Social Networking Protocol (DSNP). This would enable users to move records of their relationships between social media services. 

McCourt is funding the project out of concern of the overwhelming market power of prominent social networks, particularly Facebook. “I never thought I would be questioning the security of our underlying systems, namely democracy and capitalism,” McCourt said. “We live under constant surveillance, and what’s happening with this massive accumulation of wealth and power in the hands of a few, that’s incredibly destabilizing. It threatens capitalism because capitalism needs to have some form of fairness in it in order to survive.”

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Social network blockchain

Essentially, McCourt is striving to make social networks competitive, by having users provide their data on the DSNP. As it stands, Facebook currently owns the data about the social connections between its users. This gives it an enormous advantage over competitors. 

However, if all social media companies had access to a common datapool, they would have to compete by offering better services. Ideally, the prospect of any single company becoming dominant would diminish significantly. 

Building DSNP

McCourt hired former Fandango chief technology officer, Braxton Woodham, to build the protocol. Although Woodman had already been considering such an idea, he was surprised that someone is putting forward the capital to create it. 

Some $75 million of the investment will go into researching technology, which will take place at an institute at Georgetown University in Washington, D.C., and Sciences Po in Paris. Project Liberty will use the other $25 million to incentivize entrepreneurs to build services utilizing the DSNP. After previous attempts at trying to improve social media, McCourt is now convinced that entrepreneurs need academic support.

Eventually, Project Liberty will create its own consumer product on top of the DSNP infrastructure. Ultimately, its goal is an “open, inclusive data economy where individuals own, control, and derive greater social and economic value from their personal information.”

Facebook crypto

Meanwhile, Facebook has already started making strides into offering its own digital currency. Facebook initially proposed its digital currency project in June 2019, under the name Libra. With a stablecoin tied to a basket of sovereign currencies, Facebook intended it as a universal currency. However, the project stalled after the proposal drew immense negative regulatory feedback and lost prominent sponsorship.

Since then Facebook has scaled back and rebranded its efforts as Diem. The association overseeing its development aims to launch a pilot project by the end of the year. The project will primarily focus on transactions between individual customers, with potentially an additional option for users to make purchases. Although originally based in Switzerland, the Diem Association announced plans to move to the U.S. last month.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Article 7: Is It Obligatory For Vendors To Receive Bitcoin In El Salvador?

Every economic agent in El Salvador must find a way to accept Bitcoin and the law comes into force in less than 90 days. Yikes! The controversial Article 7 of President Bukele’s Bitcoin law sparked analysis, a few interesting conversations, and doubt. Can they even enforce it? Is it ethical? Aren’t they coercing the population? […]

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Every economic agent in El Salvador must find a way to accept Bitcoin and the law comes into force in less than 90 days. Yikes! The controversial Article 7 of President Bukele’s Bitcoin law sparked analysis, a few interesting conversations, and doubt. Can they even enforce it? Is it ethical? Aren’t they coercing the population? Is it necessary? Is there something everyone’s missing?

Related Reading | El Salvador Set to Accept Bitcoin as Legal Tender

What do the Bitcoin ecosystem’s brightest minds think about the subject at hand? Let’s check with them. And with Peter McCormack. 

The Case Against Article 7 Of The Bitcoin Law

In “The conundrum of Bitcoin legal tender laws,” Bitcoin Magazine’s Level 39 explains the situation:

There is something about the law — mandating that vendors accept bitcoin — that goes against the voluntary “opt-in” ethos of Bitcoin. However, there are key features of the law that many people may have overlooked that protect vendors from the risk of holding the volatile asset while maintaining the benefits of using bitcoin in transactions.

In “El Salvador Doesn’t Need a Bitcoin Mandate,” Nic Carter expands the concerns:

To the critics, led by George Selgin, this amounts to a “forced tender” mandate that goes far beyond a mere legal tender law (which would declare a monetary medium an acceptable but not obligatory medium of exchange) and moves into the domain of coercion.

The Defense Of Article 7 Of The Bitcoin Law

For a completely opposite perspective, we have to check with “What Bitcoin Did’s” Peter MacCormack. In this episode of the podcast, regarding article 7 he said, “I thought the bravest thing they did. And I think it’s going to turn out to be one of the smartest things.” As for the reasons.

I feel like that’s so important for driving Bitcoin into the country. Raising the net wealth of the country. Increasing prosperity for people.”

I met with one guy and he said to me: listen, we can do it slowly or we can just put it on the people and people will learn. If they’re forced to do it, they’ll learn. And they’ll learn quickly.

That sounds authoritarian. But like it might work. 

BTCUSD price chart for 06/21/2021

BTC price chart on Bitbay | Source: BTC/USDT on TradingView.com

What Will Actually Happen On The Ground?

Is the article even enforceable? Nic Carter doesn’t think so, and he doubts the government will even try. He goes a little too far with his expectations, though.

I question the hysterical projections of the critics regarding a mass mobilization of state force to mandate bitcoin acceptance at every pupuseria and supermercado. Most likely, the Bukele administration will recognize the burdensome nature of the law and de facto walk it back. But to eliminate doubt as we progress toward implementation, El Salvador should reconsider Article 7 and let bitcoin flourish on its own merits. 

In the “What Bitcoin Did” podcast, Jack Mallers gave us insight into the machinations of El Salvador’s lawmakers.

The conversation was about this open network. And my impression from the conversations I had with them is that they want people to use this open monetary network and not to discriminate away from Bitcoin.

And eased our minds about what Article 7 actually implies: 

To be clear, it’s not a mandate to touch Bitcoin the asset, to hold Bitcoin the asset. They became very familiar with Strike’s infrastructure and understood that you can be interoperable with this open monetary network that gives all these efficiencies, while just touching Dollars. And it wasn’t subscribing people to volatility concerns or anything like that. It was everyone should be interoperable with this network.

And Bitcoin Magazine summarizes the situation:

This isn’t a full legal tender mandate in the traditional sense. Users aren’t forced to take on the risk of holding bitcoin nor provide change in bitcoin and are free to receive dollars if someone sends them bitcoin. Vendors only have to have a Lightning QR code and they can instantly and automatically receive dollars when someone gives them bitcoin.

What Are The Penalties For Not Using Bitcoin?

That wasn’t specified anywhere, but Mallers isn’t worried. “It’s not like, if some papusa lady isn’t accepting Bitcoin she’s going to jail.” According to him, the population can use any wallet or application they want, scan a QR code, “and the papusa lady is going to get dollars.”

Related Reading | How El Salvador Embracing Bitcoin Signifies “The Separation Of Money And State”

And to close this off, Maller explains what the rationale behind Article 7 was.

The thesis that they held is that an open monetary network, and the network effects, and economies of scale that come associated with it. It will become the most innovative, and dominant, and impressive monetary network in the country. And that people should be influenced to go use it.

And now, you have all the necessary information to make your own mind about the controversial article and what it implies. 

Featured image by John T on Unsplash - Charts by TradingView

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