The crypto world has been abuzz with the news that COVID, an initial coin offering (ICO) company, just hit a major milestone in the development and funding of its blockchain based crypto currency. COVID raised over $1.4 million in ICO funding within the ICO week, and the company has exceeded its fundraising targets by almost 2 million dollars. The token is now on track to launch in the coming weeks.
The COVID Bitcoin fund is a relatively new cryptocurrency fund that was launched in early February 2017. The fund aims to provide a mathematical security proof of the stock of a basket of top-performing cryptocurrencies. In other words, it aims to prove that every Bitcoin in the fund is backed by a portfolio of top cryptocurrency performers. This is a much needed step forward in the cryptocurrency investment process, which often is plagued by scams and fraud.
Albert Einstein once said, “Insanity is doing the same thing over and over again and expecting different results.” He was right. Every year it is the same story. Bitcoin gets a huge surge in price, and then comes another lull. When the price goes up again, the media are all over it, but by the time the price goes back down, the attention is gone.. Read more about did dogecoin go public and let us know what you think.Every Saturday, the Hodler Digest helps you stay on top of all the important news of the week. The best (and worst) quotes, highlights of introduction and regulation, top coins, predictions and more – the week on Cointelegraph in one link.
News of the week
Bill to make bitcoin legal tender in El Salvador passed
El Salvador has officially become the first country in the world to accept bitcoin as legal tender. The draft law submitted by President Nayib Bukele was approved by a large majority of 62 votes out of 84. Under the so-called Bitcoin Act, merchants must accept both bitcoin and U.S. dollars – and must price goods and services in both currencies. The government will issue an official crypto currency wallet for consumers to use, but they will also be able to use private providers if they wish. Permanent residency will be possible for those who invest 3 BTC in the country, and a 90-day implementation period has now started. As the 90-day implementation period begins, the president has asked the state’s geothermal energy company to explore plans to provide bitcoin mining capacity with very low-cost, 100 percent clean, 100 percent renewable, emissions-free energy – from its own volcanoes. Unsurprisingly, the response from regulators has not been overwhelmingly positive. A senior official at the Bank for International Settlements called El Salvador’s initiative an interesting experiment, but warned that BTC had failed the test of its suitability as a means of payment. The International Monetary Fund also warned that the decision could have significant legal and financial consequences.
New report: Salvador The bitcoin pump is not attracting smart money, so far
Salvador’s plans were first announced during a speech at the Bitcoin 2021 conference in Miami, but the markets didn’t seem to pay attention. That all changed on Wednesday – the day Congress passed the legislation in question. Bitcoin posted its best daily performance since the 8th. In February, Tesla announced that it had added $1.5 billion in BTC to its balance sheet. While there are reasons to cheer, Lennard Neo, head of research at Stack Funds, warned that the bullish response from so-called savvy investors was weak. He put the bulls back on the ground and warned them: Don’t expect a big impact on bitcoin from a country whose per capita GDP is less than 7% of the US GDP and whose economy suffered the worst crash in decades last year. Bitcoin’s seven-day high is $38,334.33. The sharp rise helped the bulls on Friday’s option expiration, as any level below $34,000 would have released 98% of the calls.
MicroStrategy receives $1.6 billion in orders in Junk Bond issue
MicroStrategy raised $1.6 billion in a recent unsolicited bond issue, four times what the business intelligence company was originally seeking. Junk bonds are debt securities issued by companies that do not have an investment grade rating and generally offer investors higher returns but also carry higher risk. The announcement comes days after the publicly traded company, which owns 92,079 BTC with a current market value of $3.2 billion, announced plans to separate its cryptocurrency holdings into a new subsidiary called MacroStrategy LLC. While this was seen as bullish news, alarm bells started ringing after the announcement of an unwanted bond issue – the latest in a series of bond issues aimed at buying more bitcoin. MSTR shares fell after the news. MicroStrategy closed the week at $516.44, slightly below its year-to-date high of $1315 , set in February. In a recent article, analyst Juan de la Hoz said that MicroStrategy was at risk of going bankrupt if the price of bitcoin fell: MicroStrategy is a rare investment opportunity with high risk and low return and should be sold.
Positive COVID-19 tests on subjects of bitcoin 2021 conference go viral
Some attendees of the Bitcoin 2021 conference in Miami have tested positive for COVID-19, leading to a wave of negative media coverage and speculation that it may be a super-public event. Thousands of people participated in a two-day event that did not require proof of vaccination or the wearing of masks. There was little social distance in the crowded classrooms. One of the most influential users of the cryptocurrency Twitter, Mr. Whale, estimated that more than 50,000 participants attended the event. He noted that this was the first major in-person conference since the pandemic began, and said dozens of participants had been found to be positive.
Vitalik Buterin earned $4.3 million with a $25,000 investment in Dogecoin…..so far
Ethereum co-founder Vitalik Buterin reveals that he invested $ $25,000 in DOGE in 2016… and made quite a bit of money. His first concern was how he was going to tell his mother – not least because the only interesting thing about this coin was the dog logo. Buterin told the Lex Friedman podcast that he was caught off guard by the speculative frenzy sparked by Elon Musk’s enthusiasm for crypto-currencies. He remembers being locked up in Singapore when the price of DOGE 775% rose from 0.008 to 0.07 in one day, and he thought: Oh my god, my DOGE is worth a lot! Buterin added: I sold half of DOGE and made $4.3 million, gave the profits to GiveDirectly, and within hours the price dropped again from about $0.07 to $0.04. Assuming he kept the remaining 50% of his DOGE stock, he would now be sitting on tens of millions of dollars in paper profits.
Winners and losers
At the end of the week Bitcoin is at $35,211.65, Ether at $2,318.90 and XRP at $0.81. The total value of the contract is $1,493,755,186,500. Among the top 100 cryptocurrencies, the only two altcoins that gained the most this week were amp and Chiliz. The top three losers of the week are Internet Computer, THORChain and Synthetix. For more information on crypto currency prices, be sure to check out Cointelegraph’s market analysis.
Most memorable quotes
Clarity in regulations allows companies like BlockFi to keep innovating. This allows consumers and investors to participate in the sector with full confidence. Zach Prince, CEO of BlockFi The ~$38,000 range for BTC is one to keep an eye on right now. Rect Capital Cryptocurrencies have all the hallmarks of bad money: unclear origins, uncertain valuations, dubious trading practices. Peter Hasekamp, Netherlands Bureau for Economic Policy Analysis Investors should consider the volatility of bitcoin and the bitcoin futures market, as well as the lack of regulation and the possibility of fraud or manipulation in the underlying bitcoin market. US Securities and Exchange Commission @davidguetta knows what’s going on. His condo in Miami is for sale. You can buy for #Bitcoin or #Ethereum. All in all, not the best idea to part with a disinflationary #cryptocurrency that consistently outperforms real estate….. But smart people like Getta will gladly take it from you. @ShaokyCinemaBTC The introduction of bitcoin as legal tender raises a number of macroeconomic, financial and legal questions that need to be analyzed very carefully. We are monitoring the situation closely and will continue to consult with the authorities. Jerry Rice, IMF representative A few minutes ago in our London showroom, an extremely rare Cryptopunk Alien #7523 from the @sillytuna collection sold for $11.8 million in our #NativelyDigital NFT auction, setting a new world record for a single Cryptopunk. Sotheby’s Stable parts don’t catapult us into a new world…The key here is to make sure that just because something is wrapped in shiny technology, we treat the associated risks differently. Christine Segal-Knowles, Bank of England Central bank digital currencies are promising. Legitimate digital public money can help replace fake digital private money. Elizabeth Warren, Democratic Senator I don’t think @michael_saylor is familiar with Murphy’s Law. What happens when #Bitcoin crashes below $20K? Will MicroStrategy sell shares at undervalued prices to strengthen its balance sheet? Is she going to sell bitcoins to get money? If MicroStrategy goes bankrupt, are HODL’s creditors his bitcoins? Peter Schiff, economist and crypto-skeptic I should have bought a lot more, that was my mistake. Mark Lasry, CEO of Avenue Capital Group
FUD of the week
US authorities recovered $2.3 million in crypto currency after Colonial Pipeline takeover
US government officials have seized more than 2 million dollars in cryptocurrencies paid as ransom after an attack on the Colonial Pipeline system that caused fuel shortages for many US residents. The bitcoin in question has been linked to Russian hackers DarkSide, and some of the 63.7 BTC has been pushed back. While few doubt that this is a good thing, the price of bitcoin eventually fell due to concerns about how the FBI might seize the cryptocurrency. Coinbase has denied speculation about his involvement. Mati Greenspan, founder of Quantum Economics, said the ransomware received was beneficial for bitcoin, as many expected US politicians to use the cryptocurrency as a scapegoat for the attack and introduce strict regulations.
Proposed ban on bitcoin mining in New York relaxed to allow green projects
A proposed ban on cryptocurrency mining, which provided for a mandatory three-year suspension of all mining activities in New York, has been relaxed – and now allows green projects. The bill passed on 8. The bill passed the Senate and now goes to the State Assembly. If the bill passes, it will be sent to Governor Andrew Cuomo, who must approve or veto it. New York Senate Bill 6486A originally called for a three-year suspension of cryptocurrency mining for an environmental assessment of mining activities in three states. However, the bill was amended in the Senate, and the revised version of Bill 6486B now exclusively targets all companies that use carbon-based fuel sources to power proof-of-work cryptocurrencies.
Alleged victims of a $3.6 billion cryptocurrency Ponzi scheme still believe the exchange is legal
Victims of an alleged $3.6 billion Ponzi scheme in South Korea are reportedly obstructing the police investigation and joint trial because they still believe in the scheme and have not yet given up hope of recovering their investments. V Global is accused of defrauding some 69,000 people out of four trillion won ($3.6 billion) by promising investors a threefold increase in their investments. A statement on the company’s website said that it strongly denies the false allegations and that it had filed a report for defamation and obstruction. If V Global is found guilty, it would potentially become one of the largest cryptocurrency Ponzi schemes in history, similar to the infamous multi-billion dollar OneCoin Ponzi scheme in 2015.
G7 rules allow green fintechs to thrive
Sustainable development and the need to combat climate change in light of the VOCID 19 pandemic have become a global economic agenda.
Miami claims to be the bitcoin and cryptocurrency capital of the world
Miami has a dynamic mayor, lots of money from venture capitalists and is closing the largest cryptocurrency deal in history, but is that enough without legal clarity?
More crypto currency declarations to tax authorities, more danger
US authorities have developed a serious interest in cryptocurrencies, which makes unregistered cryptocurrencies even more dangerous.
There’s a battle brewing between the two biggest cryptocurrency projects, buterin and dogecoin. The former is running the testnet for their new protocol, while the latter is building a new coin from scratch. Meanwhile, another cryptocurrency is making a big move, and even a big name was dragged into the battle.. Read more about benzinga dogecoin and let us know what you think.
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