After Bitcoin now the Altcoins?

After Bitcoin now the Altcoins? Tokens of the 2017-era experience parabolic rise

It is atypical that decentralised finance coins (DeFi-Coins) such as Yearn.finance’s YFI and AAVE have retreated into the background in the last 24 hours, while Ethereum, together with a number of other Altcoins, is rising higher and higher.

According to market data, the crypto currencies with the best performance by BitQT in the top 100 by market capitalisation are all 2017-era coins, which recovered strongly from the previous bull market but have since seen an extremely subdued price performance.

Ripple’s XRP has risen 35 per cent in the last 24 hours, making it the best-performing crypto asset in the top 100 by market capitalisation. Coins such as IOTA, VeChain, Huobi Token, Stellar, Dogecoin and many others have also gained over 20 per cent in the last 24 hours.

Top 20 crypto currencies by market capitalisation

It is interesting that the majority of these top performers have nothing to do with DeFi. Instead, they are coins that many would define as „dead“ – or at least tokens that die slowly.

The last few weeks have been marked by absurd DeFi rallies, with names like YFI, Synthetix Network Token (SNX) and many others literally recovering by hundreds of percent from their lows in October or November. But the last few days have shown that even „dinosaurs“ still have rally potential.

Trader „Hsaka“ comments on the ongoing crypto-market rally as follows:

„The first day in a long time that dinosaurs have outperformed DeFi blue chips. I guess there is a big catch-up process ahead“.

This rally marks the first day that these 2017 era Altcoins have surpassed Bitcoin, Ethereum and DeFi-Coins to such an extent. It is unclear whether this will continue – although many see this as a time when retail investors are buying well-known, established names.

Price adjustment to DeFi

Analysts assume that there will be a revaluation of the DeFi-Coins at some point.

Eric Conner, podcaster and developer of Ethereum, comments that „zombie chains“ with low activity in the chain (as is the case with Bitcoin-Forks, for example) have about nine times as much capital as DeFi tokens:

„Zombie chains and DeFi protocols still have to be massively re-evaluated relatively. Combined MC of XRP, BCH, LTC, DOT, BNB, ADA: 33 billion dollars Combined MC from UNI, AAVE, SNX, YFI, MKR, COMP: $4 billion…“

However, there is no guarantee that the market will operate rationally in the near future – especially as DeFi-Coins are not yet accessible to many users – both in terms of availability and intrinsic value.

Real banknotes may be running out of days, says Brazilian Central Bank

Director of the Brazilian Central Bank highlights that Pix and digital payments have the potential to „run out“ of physical money and that this is a trend without a turnaround

The physical money may be running out of days, according to a recent statement by one of Brazil’s Central Bank directors.

Thus, for the director of Organization of the Financial System of the Central Bank of Brazil, João Manoel Pinho de Mello, digital payments have the potential to „end“ Real notes.

For Mello, a trend without return in the financial system is the digitalization of means of payment, as the Central Bank intends with Pix, and so this form of ‚digital money‘ should gradually replace the issuance of paper money.

Still according to Mello, the whole ‚ecosystem‘ that is needed for the production, distribution and acceptance of paper money is very expensive for society and digital payments make this process less costly and faster.

But while the director stressed that paper money must ‚die‘ soon, he stressed that the CBB will ‚print‘ money as long as it is needed.

„The Central Bank will not shy away from offering cash when there is demand, as in the pandemic,“ he said.

„End of the money“

This is not the first time that the Central Bank has stressed that paper money can be replaced by digital payments.

The Central Bank’s own President, Roberto Campos Neto, said that Pix will help to reduce Brazilians‘ demand for Real notes.

„With the Pix, we will reduce the costs of money transfer and reduce the use of cash, whose management costs society dearly,“ Campos Neto said.

In this line, Campos Neto also stated that the Real, the national currency, needs to be improved, possibly with the creation of a Digital Central Bank Currency, CBDC, inside the Pix.

„In our case PIX is very important because we see from now on the union of an instantaneous, open and interoperable form of payment with an open data system. Where it is at some point up front together with a currency that has to be perfected“, he said.

Digital payments on the rise

A recent Visa survey revealed that about 78% of the Brazilian population stopped using physical money in 2020.

According to Visa, the decrease in the use of money and the increase in digital payments occurred due to the coronavirus pandemic.

„Consumers in Brazil and throughout Latin America and the Caribbean have understood that they can buy virtually any product digitally and pick it up via drive-thru, receive it at home or pick it up at the shop,“ said Fernando Pantaleão, vice president of Solutions for Commerce at Visa do Brasil.

According to Statista, the country is already the fourth largest country in the world for mobile payments.

Another survey, carried out by Mastercard, also revealed that Brazilians are migrating to digital payments.

Thus, according to the world card giant, more than half of Brazilians (53%) intend to stop using physical money in their purchases.

In addition, according to the company, 63% of those interviewed stated that payments by proxy are a trend that is here to stay.

„We are happy to serve consumers where they are today, fully ready for cash withdrawal and the adoption of secure digital payments for the long term,“ said Ana Paula Lapa, Vice President of Products and Innovation at Mastercard Brazil and Southern Cone.

Pakistan: le SECP publie un rapport exploratoire sur la réglementation cryptographique

Un source officielle montre que le régulateur financier pakistanais travaille à la régulation des crypto-monnaies.

Le Pakistan élabore un cadre de réglementation de la cryptographie

Selon un rapportpar Finance Magnets ,Pakistan le régulateur financier – la Securities and Exchange Commission of Pakistan (SECP) – travaille à l’élaboration d’un cadre réglementaire pour les actifs numériques.

Récemment, le SECP a publié un article sur les actifs numériques privés, dans lequel, il dit qu’il «accueille favorablement toute entrée / commentaire».

Selon le document officiel, le Bitcoin Rush réfléchit à la création d’une «définition pour reconnaître les actifs numériques au Pakistan». En outre, il cherche à trouver une «voie à suivre pour concevoir et développer un régime de réglementation robuste au même niveau que le monde pour réglementer les actifs numériques» et à «présenter des propositions politiques aux participants et aux parties prenantes de l’industrie».

Cela dit, il convient de noter que le document du SECP ne contient nulle part d’informations sur les projets de création d’une monnaie numérique de la banque centrale pakistanaise (CBDC). Cependant, le Pakistan a notamment déclaré qu’il prévoyait de créer une CBDC fonctionnelle d’ici 2025.
Pour les non-initiés, la CBDC est essentiellement une forme de monnaie souveraine numérisée contrôlée par la banque centrale d’un pays ou d’un État. Récemment, plusieurs pays, tels queChine, Japon, Corée du Sud, et le Royaume-Uni, entre autres, ont fait une incursion dans l’espace CBDC.

Quelles sont les options?

Dans le document, le SECP déclare que les actifs numériques sont le «début d’une nouvelle ère de la finance numérique» et que leur réglementation «ne pourrait être possible que par le début d’une nouvelle ère qui réinvente le régime réglementaire [ou] les mesures à mesure qu’elles sont connus des régulateurs du monde entier aujourd’hui. »

En particulier, le document met en évidence deux approches spécifiques pour réglementer les actifs numériques.

La première de ces approches préconise «de réglementer et de restreindre les nouveaux produits conformément aux réglementations existantes, et peut même, dans certains cas, entraîner une interdiction pure et simple». Selon cette approche, le document mentionne que «les innovateurs sont obligés de s’adapter à l’environnement réglementaire en vigueur».

Alternativement, la deuxième approche est largement basée sur la conjecture de «laisser les choses se passer». Cette approche, celle du laissez-faire, implique une interférence minimale du gouvernement ou de la réglementation et est davantage une approche «attentiste» où les réglementations sont élaborées après avoir soigneusement observé le comportement du marché pendant une période de temps considérable.

Says the buyer of the NFT 1-1-1: ‚So I spent $111,000 on a digital F1 machine‘.

The identity of the purchaser of the most expensive NFT of 2019, the „1-1-1“ digital car, has finally been revealed.

In May 2019, an NFT that represented the first F1 digital car, issued for the blockchain videogame „F1 Delta Time“, was sold for $110,000! The winner of the auction has just come forward, revealing why he bought the expensive token.

The Formula 1 car named „1-1-1“ was the most expensive NFT car to be sold in 2019 and was designed for the official motorsport championship game, in partnership with F1. So far the buyer had remained anonymous.

Details of the buyer were disclosed in the podcast Bitcoin System Blockchain Gaming World: Animoca Brands, the blockchain video game company that sold the NFT and created Delta Time, revealed that the buyer was a certain ‚MetaKovan‘:

„We had a nice chat with @ysiu, @xanderatallah and the owner of the NFT 1-1-1 from @F1DeltaTime, @MetaKovan, about the auction and the not only physical but also emotional value of the digital assets“.

MetaKovan [@MetaKovan] is an investor, entrepreneur, whale of Ethereum and collector of NFT. During an interview with podcast presenter Jon Jordan, he revealed that he has not yet taken a lap on the track with his digital camera. What aroused his interest was the brand and the auction:

„A branded NFT was one of the first things that caught my attention. But I didn’t know the company. […] I saw that there was a bidding war. […] When I saw the auction I noticed that something interesting was happening here.“
He explained that what attracts him to the NFT is the uniqueness of each individual token and the story that accompanies it:

„I could have bought a real car for that kind of money. And in fact that’s what makes this a good story.“
NFTs like the 1-1-1 can be run in the game, as well as being used for staking REVV tokens. In a tweet, MetaKovan explained why NFTs mean so much to him:

„The way the digital art market is evolving makes me totally confident that NFTs are the perfect medium for cryptos. That’s because NFTs were, and are, a lot of fun. […] With NFT, I collect experiences, both those that have been fully completed and those that will happen in the future.
The co-founder and president of Animoca Brands, Yat Siu, was enthusiastic about the news:

„After almost a year and a half we finally know that MetaKovan is the owner of the 1-1-1, we couldn’t be happier“.
Siu added that art is not made famous by the artists themselves, but by collectors: it is they who make history grow and make it much more powerful and interesting.

The designer of the 1-1-1, Ibrahim El-Mouelhy, wrote a long personal account of the auction and the subsequent research of the owner. El-Mouelhy revealed that the auction was held in wETH, which cost around $272 at the time.

The winning bid of 419.5 ETH was a good omen, as it was equivalent to $111,111 with the prices at the time. Applying today’s ETH price, the figure would amount to about $191,200. MetaKovan stated that he chose that price to leave an „easter egg“ to those who were trying to trace it.

NFT sales grew significantly in 2020, and this trend does not look set to slow down.