Welcome to the Decentral Weekly Crypto News Wrap-Up for the week, where our colleagues Neil and Emily debate, declare, or deny: “Is this a thing?”
It can be overwhelming to keep up with cryptocurrency news on a daily basis. Lucky for you, we’re here to provide a weekly wrap-up that summarizes some of the most important and interesting topics of the week.
Oops...China cracked down...again
If you’ve been following cryptocurrency news for a while, you may not be too surprised to find out that China has recently cracked down on cryptocurrencies. Specifically, the superpower is looking to crack down on both crypto trading and crypto mining. The news has obviously had a negative impact on Bitcoin.
The problem is that China regularly announces that they will crack down on crypto, only to switch their position later, “clarify” their stance, or walk back their statements. The superpower is famous for purposely spreading FUD (fear, uncertainty, and doubt) that affects the markets, so is this time any different?
If you were a savvy investor, you might have even benefited from the crypto ban in China. A lot of money ended up flowing into decentralized exchanges, which meant that many top decentralized exchanges directly benefited. Many DEX tokens rose in value once the crackdown news spread.
Neil says:
China’s tried to stop Bitcoin even before Bitcoin “became mainstream.” It didn’t work then, and it looks like they are getting more desperate than ever. With the rise of DeFi, China probably realizes the ability to “crack down” on cryptocurrency is extremely challenging.
China can announce crackdowns all it wants, but it doesn’t seem to be affecting markets like it used to.
Em says:
China’s crypto-banning ratchet only goes one way, you guys. I think they’ll always tighten restrictions and increase bans and that those will always have some impact on the market.
Even if the impact decreases with time, China is a big player and markets will react.
Bottom line:
Neil thinks this isn’t a thing, while Emily points out that China’s stance still makes a notable difference.
Who’s right?
Hamster watch: Mr. Goxx
Since we started off with some bad news, let’s move on to something more fun: a hamster that is better at managing their portfolio than you may be. That would be the cryptocurrency trading hamster, Mr. Goxx, who lives on Twitch and has captured the hearts of many crypto traders. The hamster already boasts over 10,000 followers. A hamster that trades crypto is already cool, but did you know that Mr. Goxx is beating the NASDAQ…and Bitcoin…and Warren Buffett???!!!
When Mr. Goxx spins his hamster wheel, he selects a cryptocurrency to trade. Later, he chooses between two tunnels, which indicate whether he “bought” or “sold” that cryptocurrency. His decision is then sent to a real-time trading platform, where funds are traded based on what the hamster chooses and does. Time will tell whether the crypto ban in China will slow his profits down.
Mr. Goxx started trading in June, and he’s already up 20%. We’re not saying that you should take all of your investments and let a hamster decide your financial future, but we are saying that this is a lot more adorable than an algorithm or trading bot. The owners have stressed that Mr. Goxx’s portfolio exists “for entertainment purposes only”.
Neil says:
This has already made headlines everywhere, so it could spread awareness about crypto. In a world where a hamster trading crypto can beat NASDAQ, that’s probably overall positive cryptocurrency news.
People who didn’t know about crypto before might be interested in this article, and the fact that it went viral means more people are learning about cryptocurrency markets.
Em says:
Anyone who thinks that they can call markets or the next breakout projects might as well just trust a hamster.
Even if you’re Encyclopedia Brown, in a complex and changing ecosystem, you’re ultimately guessing because you never have all the information.
Bottom line:
Neil thinks this COULD be a thing, while Emily remains unimpressed.
Who’s right?
Crypto + true crime = Netflix gold
For those new to the cryptocurrency space, a crypto mystery has plagued the community for years. What exactly happened to Gerald Cotten? Cotten was the founder of Quadriga, a Canada-based cryptocurrency exchange. A new Netflix documentary will explore his life, Quadriga, and his mysterious death. “Trust No One: The Hunt For The Crypto King” will be released on Netflix sometime in 2022.
At one point, QuadrigaCX was Canada’s largest cryptocurrency exchange. In 2017, during the cryptocurrency bull run, Quadriga processed a staggering $2 billion in trades. The real issue emerged when Cotten died while traveling to India in December 2018. Cotten reportedly died of Crohn’s complications. His death made it so that somewhere around $145 million of the crypto holdings of Quadriga users is now inaccessible.
The world’s obsession with true crime is well-documented. Cryptocurrency was formerly associated with the dark web, and those associations prevented people from embracing Bitcoin and other cryptocurrencies. Will this documentary have a positive or negative effect on the markets?
Neil says:
I hate to be cynical, but a couple of years ago, there was a movie called Crypto that came out with Kurt Russell. A lot of crypto enthusiasts were convinced that it would take a mainstream movie to really “spread the word” to reach more people, but the movie didn’t really go anywhere.
This is also more of a negative story: investor funds were lost, and Cotten died mysteriously. If I can summarize my stance, I would say: this may satisfy true crime fans more than crypto enthusiasts.
Em says:
My demographic—millennial white women—doesn’t have deep crypto knowledge. It does, however, have deep true crime knowledge! Yes, I said it.
If you want to increase visibility in new demographics, a true crime/crypto crossover is a perfect way to do that. ;P
Bottom line:
Emily thinks this could be a thing; Neil disagrees.
Who’s right?
Can’t cancel this: using crypto to tip on Twitter
It might not have been publicized that much, but there’s something different about Twitter. Yes, the new font is incredibly annoying…but the platform now allows for Bitcoin tipping! You can “tip” influencers on Twitter by sending them Bitcoin, but will their audience actually choose to support them this way?
This does beg the question: how will cryptocurrency fare on a platform known for “canceling” people? The blockchain cannot be censored, and the technology allows fans to support content creators without giving the middleman (a platform) a cut.
While this is great news for accounts with massive followings, will this result in more people tipping this way? Is Patreon in trouble? Will crypto users flood to Twitter to use the new feature?
Jack Dorsey may have founded Twitter, but he’s also famously pro-cryptocurrency. The billionaire CEO has previously said that “Bitcoin will unite the world.” He’s also the founder of Square, a financial services company that has been supporting cryptocurrencies for some time now. Square, which is publicly traded, has a market capitalization of over $100 billion.
Neil says:
I don’t think Patreon should be too worried about this. They have had a huge head start since they started back in 2013. Twitter is trying out what works, just like they have done before.
It IS good overall though…Jack Dorsey is very pro-crypto, and it could potentially be a great way to incentivize artists, journalists, writers, or influencers in general. Not the best Twitter marketing move, but it’s a net positive for the cryptocurrency sector.
Em says:
Please, Jack Dorsey. This, to me, feels like an empty gesture of crypto support from a platform that is known as the pinnacle of cancel culture and censorship.
Why would crypto users rush into using crypto to tip on Twitter when they’re trying to escape the fintech death grip?
Bottom line:
While it might be a cool new feature, Emily and Neil agree that this will not really be a thing.
Do you agree?
2.1 million people in El Salvador can’t be wrong
Several weeks ago, there was a huge milestone for countless cryptocurrency enthusiasts: a country chose Bitcoin as its official currency. El Salvador was that country, and while some people might doubt this economic experiment, it appears as though the transition is going smoother than many had thought. It was a huge cryptocurrency news headline that dominated the sector for several days.
Would it actually work? Would people actually start using Bitcoin, or would it fail?
There were countless skeptics regarding the Bitcoin decision. One notable critic called the entire ordeal “a scam” in a WSJ Opinion column. Mary Anastasia O’Grady argued that this was really about undermining dollarization more than anything else, and that this represented a threat to “currency stability.”
It’s safe to say that her comments haven’t aged too well. 2.1 million people already actively use their Chivo Bitcoin wallets, which represents a third of the entire country. Given that the announcement only took place several weeks ago, this kind of progress is astonishing. Clearly, the citizens of El Salvador see some value when it comes to using cryptocurrency rather than other well-known payment providers like Moneygram.
Neil says:
A lot of people were doubting this, and hoping it failed…but a third of the country is actively using Bitcoin? After a couple of weeks? It’s hard to argue this is anything other than a win. I’m not saying Bitcoin will single-handedly solve everything, but this is pretty big cryptocurrency news, and other countries might follow its example.
Em says:
This project seems like regulation bait to me. El Salvador is a small country that’s not a big player in the global economy. It’s probably just attracting the attention of governments who’d love to crack down. Most countries would likely rather develop their own CBDC than adopt Bitcoin as legal tender.
Bottom line:
Neil thinks that this is a good thing! Emily thinks it’s regulation bait.
Who’s right?
Stablecoins remain stable...will Djed succeed?
There are several stablecoins out there, and they serve a real purpose for the DeFi sector. However, all stablecoins are not necessarily equal in the eyes of the cryptocurrency investor. Tether has had all sorts of issues, with some critics calling it a threat to the entire cryptocurrency ecosystem, others criticizing the rate at which it issues new USDT, and the Department of Justice investigating possible Tether bank fraud.
Cardano plans to issue a new stablecoin, however, by the name of Djed. Djed will officially be launched by Coti, Cardano’s payment provider, and it markets itself as a DeFi-focused stablecoin. Djed, apparently, is an ancient Egyptian symbol representing stability.
Djed plans on dealing with volatility by being an algorithmic stablecoin, meaning that the system keeps a reserve amount of coins and uses smart contracts to ensure price stabilization. It promises a lot more transparency and stability for stablecoins, which is ironic considering that stablecoins were created for stability!
Issues with other stablecoins have many crypto investors believing that this will be the most reliable stablecoin moving forward. Stablecoins are incredibly critical to the cryptocurrency markets, since they help to bridge the gap between fiat and crypto, and help significantly with liquidity issues.
Neil says:
This could definitely be big news. Out of all the major cryptocurrencies, Cardano has been doubted for a long time…that seems to be changing. The concept of an algorithmic stablecoin contract actually makes a lot of sense, and it could end up being pretty necessary. When you consider that Tether has massive transparency issues, I think Djed could end up being bigger than analysts realize.
Em says:
We definitely need new innovations. They’re cool. But I don’t think Djed will make a huge difference in the DeFi space. So far, it’s unproven and considering the number of projects that stay unproven while the rest of the ecosystem moves on, I probably won’t be putting my eggs in the Djed basket.
Bottom line:
Both Neil and Emily agree that this could be a big thing.
Do you agree?
Bad idea of the week: don’t consult with North Korea
There are several stablecoins out there, and they serve a real purpose for the DeFi sector. However, all stablecoins are not necessarily equal in the eyes of the cryptocurrency investor. Tether has had all sorts of issues, with some critics calling it a threat to the entire cryptocurrency ecosystem, others criticizing the rate at which it issues new USDT, and the Department of Justice investigating possible Tether bank fraud.
Cardano plans to issue a new stablecoin, however, by the name of Djed. Djed will officially be launched by Coti, Cardano’s payment provider, and it markets itself as a DeFi-focused stablecoin. Djed, apparently, is an ancient Egyptian symbol representing stability.
Djed plans on dealing with volatility by being an algorithmic stablecoin, meaning that the system keeps a reserve amount of coins and uses smart contracts to ensure price stabilization. It promises a lot more transparency and stability for stablecoins, which is ironic considering that stablecoins were created for stability!
Issues with other stablecoins have many crypto investors believing that this will be the most reliable stablecoin moving forward. Stablecoins are incredibly critical to the cryptocurrency markets, since they help to bridge the gap between fiat and crypto, and help significantly with liquidity issues.
Neil says:
This was very obviously such a bad idea. I have no idea what he got paid, but I imagine he is spending much more than that on legal fees.
Em says:
Yeah. Bad idea confirmed. The only good reason I see for doing something that could be construed as “conspiring with North Korea” is if you’re so itchy for thrills that the rollercoaster of the crypto-verse still doesn’t inject enough adrenaline for you.
Bottom line:
Both Neil and Emily agree that this was 100% a bad idea.
Do you agree?
Meme of the week
We hoped you enjoyed your weekly wrap-up of the cryptocurrency news!
Here is your beloved meme of the week. It celebrates none other than the world’s most famous non-human cryptocurrency trader, Mr. Goxx.
