Category: Crypto market

World Liberty Finance Launch US dollar-pegged Stablecoin

Posted on by Olumide Adesina

World Liberty Finance (WLFI) has officially introduced a US dollar-pegged stablecoin, marking a significant advancement for the cryptocurrency market. The arrival of USD1 was announced by the decentralized finance protocol (DeFi) on Tuesday.

According to World Liberty Finance, the stablecoin is a derivative of the US dollar, US treasuries, and other cash equivalents

It will now compete with some of the largest stablecoins available.

US President Donald Trump urged Congress to enact stablecoin legislation. This appeal has been a crucial aspect of his presidency and has drawn considerable attention to the digital asset industry. Since his return to office, Trump has sought to restructure the country’s crypto policy, accomplishing significant progress in under three months.

Now introduced by World Liberty Financial, the USD1 stablecoin was inspired by US President Trump, continuing that legacy beyond the Oval Office. The asset, which aims to compete with some of the most prominent digital currencies, was revealed by the DeFi protocol.

“USD1 provides access to the strength of DeFi, supported by the legitimacy and protection of the most reputable names in traditional finance—something algorithmic and anonymous crypto projects cannot offer,” stated Zach Witkoff, co-founder of WLFI.

He continued, “We’re delivering a digital dollar stablecoin that major institutions and sovereign investors can confidently incorporate into their strategies for smooth, safe cross-border transactions.” This action was taken as the stablecoin market continues its rapid growth, with the industry’s market capitalization surpassing $230 billion this week.

Ripple working with Central Banks, boost XRP adoption

Posted on by Olumide Adesina

Cryptocurrency analyst Amelie highlighted remarks made by Brad Garlinghouse, the CEO of Ripple, about the company’s collaborations with central banks. “Ripple has partnered with several central banks around the world, some we’ve announced, some we haven’t yet announced!” she wrote in her post, quoting Garlinghouse. “Now that the SEC case is over, imagine all the partnerships that will be announced soon…XRP.”.

The post referenced a video clip where Garlinghouse discussed Ripple’s role in working with central banks and using the XRP Ledger for digital asset issuance.

His remarks focused on the challenges of cross-border payments, the distinction between central bank digital currencies (CBDCs) and stablecoins, and the ongoing experimentation by various governments with blockchain technology. Garlinghouse described Ripple’s primary goal in the video as addressing cross-border payment inefficiencies. He noted that “central bank digital currencies are domestic by nature” and are generally not designed to solve international payment challenges.

He acknowledged the broader trend of governments experimenting with digital assets, including CBDCs and stablecoins, and how Ripple has positioned itself within this space.
Ripple will be able to reveal these partnerships following its legal battle with the Securities and Exchange Commission (SEC).

The lawsuit focused on the SEC’s claims about XRP; however, recent events have given Ripple and its business operations more regulatory clarity.

Ripple has previously announced collaborations on CBDC projects with organizations like the Republic of Palau and Bhutan, and there are still rumors of additional, possibly undisclosed agreements.

GameStop GME Stock Jumps 8% on Bitcoin Reserve Move, Despite Lower Sales

Posted on by Skerdian Meta

The GME stock price has surged higher after the close as GameStop enters the Bitcoin market, despite lower 2024 sales revenue.

GameStop enters the BTC crypto market
GameStop enters the BTC crypto market

Continue reading “GameStop GME Stock Jumps 8% on Bitcoin Reserve Move, Despite Lower Sales” →

BlackRock starts Bitcoin ETP in Europe

Posted on by Olumide Adesina

BlackRock, the world’s largest asset manager with over $11 trillion under management, launched a Bitcoin ETP in Europe, on the success of its US-listed spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which has $51 billion in assets under management.

The iShares Bitcoin ETP will trade on Xetra and Euronext infrastructure as IB1T and Euronext Amsterdam as BTCN.

The product’s expense ratio is reduced to 0–15 percent through the end of the year amid a 10-basis-point temporary fee waiver. The fund is BlackRock’s first ETP with a cryptocurrency connection outside North America. BlackRock had previously introduced the iShares Bitcoin ETF and IBIT on Cboe Canada.

“A combination of robust retail demand and increasing interest from professional investors is driving real momentum,” said Manuela Sperandeo, BlackRock’s head of iShares Product for Europe and the Middle East.

She stated  BlackRock’s entry into the European market reflects and advances this change. According to Bloomberg ETF analyst Eric Balchunas in February, the European market for crypto ETPs has been around for a while, with over 160 products that track different digital assets,  smaller than the US market.

US spot ETFs have already accounted for about 91% of the global market, primarily due to their high liquidity and competitive cost structures

According to the analyst, BlackRock could potentially see significant market growth if it effectively mimics the dynamics of the US market. He also pointed out that European investors typically have a lower risk tolerance.

Forex Signals Brief March 25: Home Sales to Increase as US Mortgage Rates Fall

Posted on by Skerdian Meta

Yesterday we saw a surge in US stock markets, while today home sales are expected to increase, with US mortgage rates 37 bps lower from January high.

US new home sales are reversing the slowing trend of 2024
US new home sales are reversing the slowing trend of 2024

Continue reading “Forex Signals Brief March 25: Home Sales to Increase as US Mortgage Rates Fall” →

IMF tags XRP, Solana Ethereum Securities. Ripple Fights Back

Posted on by Olumide Adesina

The IMF’s attempt to classify these digital assets in this update has generated controversy, particularly about XRP. The seventh edition of the IMF’s Balance of Payments and International Investment Manual (BPM7) highlighted cryptocurrencies classification

IMF categorizes cryptocurrency assets according to whether they result in a financial claim or liability on the issuer under the revised framework. IMF claims utility tokens encompass different altcoins and should be categorized as “debt securities” since they grant future access to goods or services.

Some people made the amusing prediction that XRP might soon be added to the permanent list of securities because of this classification  Interestingly, XRP Ethereum, and Solana are categorized as “debt securities” under the IMF’s methodology for classifying utility tokens.

However, David Schwartz, the CTO of Ripple, disagreed with such an interpretation. If XRP meets this criterion, he contended, other well-known cryptocurrencies like Bitcoin and Ethereum should also be added. “If XRP meets the IMF’s requirements for a utility token or security because it can be used to pay future transaction fees, then Bitcoin and Ethereum ought to be categorized similarly,” Schwartz contended.

The Securities and Exchange Commission (SEC) sued Ripple, claiming the business had broken securities laws by selling XRP.

District Judge Analisa Torres, however, decided in 2023 that Ripple’s public sales of XRP were not securities transactions. Nevertheless, she discovered Ripple had broken securities laws by selling directly to institutional investors.

The IMF also discusses the difficulties associated with mining and staking bitcoins. It implies that, depending on the size and intent of the holdings, token ownership earnings might be handled similarly to stock dividends. Furthermore, tasks that aid in blockchain transaction verification, such as mining and staking, are now being recognized as services by the IMF.

It will be simpler to track their economic impact if these are included in a nation’s imports and exports of computer services.

Forex Signals Brief March 24: Can Services & Mfg. PMIs Signal a Global Economic Rebound?

Posted on by Skerdian Meta

Manufacturing has been in contraction for years and today we’ll see if tariffs are actually improving it or services PMI. Continue reading “Forex Signals Brief March 24: Can Services & Mfg. PMIs Signal a Global Economic Rebound?” →

Ripple: XRP might Sink To $2 mark

Posted on by Olumide Adesina

The Ripple-based token struggled to break through key resistance at $2.5 despite Bitcoin breaking above the $85K mark in the early hours of Monday.

Market action showed XRP’s bullish run switched off despite Ripple’s closure with SEC. There are indications of strain in XRP’s macro momentum. On-chain data showed XRP’s network’s growth is now at its lowest point in four months because of reduced production of XRP addresses.

The altcoin is trading just below the $2.5 resistance level. XRP has failed to break through this level twice this month amid weak market condition

The absence of new address creation for XRP indicates that the altcoin is having trouble luring new investors. The token’s prospects are hampered by no market incentives for new investors to join the Ripple network. XRP’s inability to overcome this resistance may indicate that the consolidation phase will continue given the state of the market.

XRP is presently in a consolidation phase. If bearish sentiment intensifies, the remittance token may fall below its $2.2 support.  The price might drop to $2 or less under this market condition. This is a crucial metric for evaluating a cryptocurrency’s traction in the market since a surge in active addresses typically signifies increased adoption.

XRP’s value surged after Brad Garlinghouse, the CEO of Ripple, declared earlier this week that the case against the SEC had ended favorably for the company.

The token rallied as high as $2.6 before sinking lower. Whether it was another traditional “sell-the-news” incident was another topic of discussion.

Additionally, Sentiment cautioned that digital assets frequently perform oppositely from what the general public anticipates. Therefore, XRP may soon undergo a correction, which would have a more severe and agonizing impact if it results in a wave of liquidated long positions.

Black Swan Capitalist co-founder Vandell Aljarrah questioned why people are selling now and maintained that XRP will hit a double-digit price this year.

Aljarrah questioned the reasoning behind this action on social media. He said, “It’s unbelievable that people are selling right now.”.Interestingly, with the Ripple vs. SEC deal and America entering a new era of regulatory clarity, it now appears that selling XRP was a bad idea.

According to a community member, some investors who are currently selling may be doing so because they are struggling financially. Aljarrah admitted that these can be difficult, but maintained that investors who want to be successful must be tough during this time.

Solana Shows High interest Amid Muted Risk Appetite

Posted on by Olumide Adesina

Market actions show increasing SOL interest due to investors’ urge to profit from a possible rally expected this week. Solana supporters are still certain that the market’s volatility is to blame for the slight price decline because the coin shows a bullish bias.

 

 

Glassnode data revealed over 11 million addresses with 0.1 SOL or higher by March 21, up from about 9.2 million in late December. This spike indicates that users are becoming more involved.

The Solana ecosystem is another factor contributing to an elevated level of interest. Developers and investors are drawn to this blockchain because of its reputation for speed and cheap transaction costs. Its token, SOL, is evolving into a representation of the development of decentralized finance rather than merely a speculative asset.

At a low of $114, the asset climbed above bearish pressure to touch the $136.4 mark this month. Solana’s optimistic outlook for the future It is likely that Solana’s price has bottomed out and could eventually turn the $135 resistance into support

Meme coin speculation was a major contributing factor to this crash, especially after the launch of the contentious $Trump. Many investors purchased Solana to take advantage of the euphoric rush that was sparked by this cryptocurrency just a few days after the US president was sworn in. However, the rally proved unsustainable, resulting in a swift correction and a destabilized market, as is frequently the case in these situations.

Numerous investors withdrew their money from DeFi protocols based on Solana’s blockchain because of the worsening circumstances caused by the falling levels in liquidity.
This outflow reduced the network’s Total Value Locked (TVL) accelerated price decline and weakened investor confidence in the project. Price volatility and the drop in TVL in an industry where perception is crucial caused a cascade of effects that affected the entire ecosystem.