The recent year has been facing a massive cryptocurrency fall. Several well-known crypto networks have dropped. The bear market performs worst for the cryptocurrency blockchains like Bitcoin, Terra, and Ethereum.
One of the greatest strategies to balance the volatility of cryptocurrencies is a strong portfolio. That strong portfolio helps a user track their assets. Also, it helps to identify which crypto is appropriate for shorting and which can be owned safely.
Big Eyes :
Due to the continued demand for two well-known meme coins, Dogecoin and Shiba Inu, meme coins came back this year. The meme coins became popular. It is taking inspiration from Elon Musk’s dog. The illustration of the dog, which is called Floki, got huge popularity. Shiba Inu is another meme coin and competitor of Dogecoin. Shiba Inu is a Japanese creation. Although there are several meme coins on the cryptocurrency market at present time.
Turbulence is going to bring its meme coin industry. The Big Eyes are coming from the Japanese industries to save and reinvent the meme coin's actual identity.
The Meme Coin's History :
There are so many categories of cryptocurrencies on the market. There are categories like Play-to-Earn, Metaverse and meme coins. Meme coins are inspired by a prominent online joke or meme. Later, some specific currencies changed into enthusiastic investments for crypto experts. Online communities also play a crucial role in their development.
But they might have a unique and humorous origin than other existing cryptocurrencies in the market. Meme coins and other cryptocurrencies are assets of wealth that are treated similarly to stocks and other investments. That is not any legal tender. Cryptocurrencies act with the help of blockchain technology. Blockchains are considered decentralized digital ledger that keeps track of transactions and makes transaction in blocks.
It is important to gain knowledge before investing in meme coins or other cryptos that what it is actually.
Big Eyes (BIG): The Cutest Kitten Identity :
Big Eyes plans to originate itself as a community-driven coin aiming to reroute assets into the ecosystem of decentralized finance (Defi). The blockchain network plans to contribute 5% of its profits to a charity wallet. That initiative will support projects that are focused on ocean and marine life conservation intended to safeguard an essential portion of the global ecosystem.
Through a unique mascot, Big Eyes aims to bring a part that they realize to be a “billion-dollar market” by targeting specific charitable organizations. The mascot is a big-eyed kitten or baby cat that was influenced by Japanese animation.
The platform chose a kitten as their recognition is a stark departure from the canine-based canon. That many meme coins follow as their model. The platform credits cats. Because the creator and developer of the Big Eyes platform followed a novel strategy that massively got attractions from people.
The token’s future is in the hands of the community. The activities or responses will matter. One of the projects, related to comic books and other media, will enlarge the Big Eyes setting and characters.
Additionally, BIG is also renowned for its dynamic tax structure, democratic community management, and above all the tax-free fees. After all, this idea has a huge potential to both raise meme currencies to a new level and keep the bear market recovering.
Mentionable, Billy Markus and Jackson Palmer, Dogecoin (DOGE) Originator said that when they invented Dogecoin in 2013, they didn’t want their humorous cryptocurrency to be taken seriously or heavily. Meme coins existed for a long time.
Notably, Dogecoin is a decentralized and open-source peer-to-peer digital currency whose features can be compared to Bitcoin, as it works around digital payment mechanisms.
Cryptocurrencies are highly volatile and randomly change their position. Cryptocurrency volatility depends on several matters. It can be highly influenced by large investors' regular massive transactions in the market. These massive investors or making transactions accounts are known as whales and their bulky transaction amounts or activity are known as whale movements. Strategic traders always follow the whale movements. It raises expectations to benefit from the price volatility. The whale movement is a crucial thing for the price of the crypto market.
How do whale movements impact the market?
When the market whales start to buy large amounts of crypto, the particular crypto's price would increase. On the other hand, if a group of large investors starts to sell any token or crypto, the price would drop later.
In this movement, the anticipation is easy. When the whale group starts to purchase massively, it causes scarcity. That led to a high rate. Contrarily, when the investors free their assets into the market or start to sell, that time supply increases. This causes the price to drop.
Though, many traders and investors start to follow and copy the whale's movements. When the group starts to sell or buy, the whole market follows the same.
The Indicator Of Whale's Selling Pressure :
One of the indicators of whale selling movement is when it is noticed that a wallet transfers a huge amount of crypto into any exchange wallet. That indicates that the whales are going towards selling the crypto which will cause a price fall in the market. That is the time for the users to get back their amount before the price falls.
Sign Of Whales' Buying Pressure :
Investors mainly choose cold wallets for storing cryptos for the long term. To make the wallets less secure from hack and attacks, the wallets are not connected to the internet. When it is seen that any massive withdrawals take place out of an exchange wallet and into a whale wallet, it is a great sign that the whales are preparing to hold their assets.
This holding pressure from crypto exchanges results in a scarcity of supply. That causes a high price rate.
In 2019, the price of Bitcoin rose to around $11,500 from $4,200 in June. This price breakout was caused by the purchase of 20,000 BTC executed across three different exchanges.
Over-The-Counter Trading :
When whales do not go for any movement in the market, they follow to opt for over-the-counter or OTC trades. It refers to the transfer of crypto from one wallet to another wallet for a fixed price that is predetermined. The wallets are secretly owned by an exchange or another buyer. These OTC trades only affect the markets during any breaking news.
The Tracking Tools Of Whales :
Some of the whale tracking basics are known to several users. Let's have a look at some of the tools that a user can follow to track whale movement. The tracking is possible because of the transparent nature of cryptocurrencies. There could be anonymity but not full secrets.
Blockchain Explorers :
The cryptocurrency's transparency is unlocked through blockchain explorers. They function as crypto search engines. Here, a user can search for a wallet and explore its holdings and all the transactions.
Several blockchain explorers offer the user to sort transactions by amount. This helps them to get precise data on the whales and get in-depth information on what they are preparing for. To get the information, the explorers help the users.
Though these explorers' actual use was to check and track the success or failure of the users' transactions. Now, they have also shifted into whale tracking platforms.
Censorship resistance is one of the features in blockchains that assures a transaction will go through as long as all the set criteria are met. In other words, it is a kind of property of a cryptocurrency network that helps to prevent any entity from altering transactions on it. This ensures that any government or organization can not influence or alter transactions on a blockchain along with the amount of power they dominate.
If any country or government plans to bring any influential person or organization, they first lock their assets and freeze their bank accounts for security. It can compare to a person or organization being paralyzed. Then the government can try to manipulate them into doing what they aim to do.
Since the Kremlin invaded Ukraine, the market has seen such influence with western sanctions on Russia. Though, it seems like an appropriate thing to implement weakening an individual or organization. Notably, the chances of misuse are always there.
Overview of censorship resistance in blockchains:
As previously discussed, furthermore, censorship resistance in blockchains is different from how regular banks work. In banking, everything is under tracking, and also there is government activity. Government can order banks to freeze specific assets and accounts. It can even stop transactions from happening.
Censorship resistance can compare to the blockchain's unchanged record of transactions. Blockchains are similar to distributed ledgers. Every node in the network's system stores and updates its version of the ledger. It contains details of all the transactions ever made. Hence, any government or authority cannot censor or alter these transaction details.
Why Is Censorship Resistance Important?
The top Blockchains like Bitcoin and Ethereum are revolutionary and remarkable as they provide the power back to the people
One of the important things about censorship resistance is that it offers a way for users to own assets without the stamp or authorization of the authority of governments. It doesn't take much time for well governments to change into sour or act as dictators. But if people use blockchains for transactions, there is a limitation of the government's control.
The next importance of censorship resistance is securing the idea of privacy. As the blockchain ledgers are public, there is a good possibility of complete privacy. For instance, Bitcoin's pseudonymous founder, Satoshi Nakamoto, is known to everyone, and even how much bitcoin he owns is also known. But no one knows what is his actual identity.
Lastly, censorship resistance is important because that prevents blockchains from being brought down. No government or authority or hackers can bring down a blockchain. Unless they take control of 51 percent of the total dominance rate on the network.
The Threats To Censorship Resistance :
There are two threats. These threats can lead the censorship resistance of blockchains to take a fall.
First is the internet availability. The internet service providers and governments control that. Governments have the right to block or cease the internet or certain websites that matter for blockchain transactions.
These kinds of threats are witnessed in some parts of Ukraine. At that time Russian forces blocked the internet in certain areas. A remarkable solution was Elon Musk's Starlink. It succeeded in providing the internet from beyond the clouds.
The next threat is the straight manipulation of blockchains. That occurs through an entity taking over a majority of the hash rate. Then the misleading activity takes place in the blockchain. Though, this threat is very costly and theoretical in the current situation. But the possibilities are there. Its cost is approximately more than 100 billion dollars. To take over the bitcoin blockchain, this amount has to be spent. Though it is true, this massive amount is the obstacle to being spent.
Cryptocurrencies fell roughly last week. The selling of bitcoin was sudden upward. The falling market pulled it down to a three-week low.
The Price Analysis :
During the European morning, at nearly 0640 GMT, Bitcoin fell around 7.7% which led the price to $21,404 within a few minutes. Though, it managed to retain again. Later, BTC was trading at around $21,528 at 1651 GMT. I was 8.05% down on the day. Notably, Ether was last seen to drop 8.32%. That was trading at $1,721.
Analyst at digital asset broker GlobalBlock, Marcus Sotiriou, in an analytic note stated that there did not reach to be a single catalyst that led the market to the heavy selling.
According to him, the S&P 500 rejection and failure to continue its recovery contributed to bitcoin’s drop. Furthermore, the S&P 500 fell around 1% by early Friday last week.
Alongside, the senior investment and markets analyst at Hargreaves Lansdown, Susannah Streeter, remarked that the activity was a "result of a large sale transaction."
According to her, it did not seem like the pattern of a flash crash. Because the assets did not instantly recoil sharply but managed to sink even lower in the hours that followed.
Streeter said it caused the cryptocurrency, Cardano, to first move following the bitcoin and ether and also other coins like altcoin, and Dogecoin.
The Experts' Views :
Cryptocurrencies fell remarkably this year. Because the Federal Reserve rate was on a hike and ultra-high inflation worked as a catalyst to the investors not to go with riskier assets.
The senior market analyst at Oanda, Craig Erlam, stated bitcoin's failure which aimed to recover its losses "suggests there is an opportunity to move".
Often these kinds of sharp moves are shown in the highly volatile cryptocurrency market. During the middle of June, bitcoin dipped by more than 15%. This causes the investors to be scared to trade.
Hargreaves Lansdown's Streeter stated that anticipation in the cryptocurrency market is causing extremely high risk and it is not pointful for the large community.
The Investments :
Corporate investors like asset management companies, BlackRock, investment banking corporation Morgan Stanley and electronics company Samsung invested a massive amount in the market. BlackRock invested $1.17 billion, Morgan Stanley contributed $1.11 billion, and electronics company Samsung provided $979.2 million. Alongside, Google gave $1.5 billion to Blockchain companies.
Current Condition :
In November 2021, the global crypto market reached a $3 trillion market cap. That was its last high market cap. At the end of the year, the market started to fall. Later it fell below the $1 trillion market cap. The top cryptos like Bitcoin, and Ethereum dropped lower. The volatility of the global market increased and the total value of the market is still in a lower trend. Coins that stand in the middle of the list, start to regain their value. Investors shifted their investments to other platforms. Even, in a phase, it was speculated that BTC's price could fall to zero! Though, the current market is focusing to upgrade the technologies to regain
customers. Ethereum's upcoming Beacon merge is now the hottest topic in the media. Cardano is also waiting for its Vasil Hard fork.
Notably, the metaverse project and web3 technologies are going to dominate the global market. Due to the crash, the individual platforms have already lost their value. In these circumstances, they are improving their mechanisms and technologies. Several metaverse projects are going to be implemented through gaming platforms. Also, NFTs are taking the market gradually. Multiple companies have started their NFTs acceptance. Cryptocurrencies have now become acceptable in several companies for purchasing purposes. Even, the countries like Japan, the US, European region bring their cryptocurrency ATMs into the market.
The world's largest stablecoin, Tether, announced last week that it reserved $66.4 billion at the end of June. That is down from $82.4 billion during March. According to Tether, the fall took place due to fulfilling $16 billion worth of redemptions.
Tether And BDO Connection :
Tether announced it had switched to accountancy firm BDO Italia for certifying its reserves. The platform intended to release monthly reports by the end of the year. A day after that announcement, the reserves statement on Tether's website came.
Notably, stablecoins are a type of cryptocurrency that is minted to keep unchanged or stable value. For instance, a 1:1 U.S. dollar peg. These pegged coins or stablecoins are mainly used in cryptocurrency trading to transfer funds between different cryptocurrencies or they can be regular cash.
The world's several financial regulators have warned that stablecoins could cause riskier financial stability. Presently, Britain and other major economies are looking to regulate the sector.
Tether remarked that the stablecoins balance their value by holding dollar-denominated savings to equalize or increase the value of Tether coins in circulation. Tether commented that BDO is a top-five firm and participates with BDO Italia and agrees with their commitment to the Tether community to work with a wider and more experienced firm.
BDO Italia is an audit and consolation company. It is based in Italy and is an independent member firm of BDO International Limited. At least two executives from Italy are included with Tether management.
BDO Italia stated that Tether's $66.4 billion reserve assets have crossed its $66.2 billion liabilities.
The Statements Regarding The Redemptions :
In June, Paolo Ardoino, the chief technology officer of Tether, said that Tether had reimbursed its $16 billion in redemptions. On the other hand, Tether stated, last week, that these redemptions were caused by the fall of the reserves. A wider portion of the crypto market had requested investors to swap their Tether holdings back into dollars.
The investment partner at Securitize Capital, Joseph Edwards stated that the report seems positive for Tether as it amplifies that there might be no bank big enough to run them down to the sections of their treasury that might raise questions. He further added that the questionable segment of the report is switching auditors again.
According to Tether's website, since 2017, it has already published reports witnessing its reserves from at least five other firms.
Noteworthy, the statement noted that Tether's holdings of the U.S. Treasury bills dropped to $28.9 billion in the second quarter. That is a $10.3 billion fall down from the $39.2 billion. it held $39.2 billion in the first quarter.
The Aim To Slash Commercial Papers :
Alongside, commercial papers and certificates of deposit showed an $11.7 billion drop. That stands at $8.4 billion now.
For further information, commercial papers are unsecured promissory notes with a permanent maturity date predominantly issued by large institutions to acquire or earn funds for their short-term debt responsibilities.
Earlier in July, Tether announced it had slashed the commercial paper holdings as part of a plan to decrease the exposure of riskier assets.
In the second quarter of 2022, Tether decreased its commercial paper holdings from $8.5 billion. That stood at $20 billion. That was a reduction of more than 58% according to the reports of company.
Arduino further added that the company (Tether) will slash its commercial paper holdings to $200 million. Which could take place by the end of August and it would go to zero by the end of October.
In addition, Tether said the amount that was previously invested in the commercial paper is now primarily held in U.S. treasury bills. It has been used to repay Tether’s clients appealing redemptions.
