Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

The crypto market crashed amid a rising inflation rate. BTC, ETH and others lose the market cap

The crypto markets have hit a new low for the year, with the market capitalisation plunging below the $1 trillion mark for the first time since February 2021. Bitcoin has dropped below $23,000, its lowest point since December 2020. And BTC isn’t the only one, nearly every top coin is now worth half or less of its all-time high.

The total market capitalisation of the market at the time of writing stands at $963 billion, a drop of around 4.1 percent since yesterday. Bitcoin (BTC), the most valuable crypto by market capitalisation, dropped sharply, and its market dominance fell to 45 percent, registering a decrease of 2 percent over the day. Ethereum, the second-largest crypto by market cap, slipped below the $1300 mark, with a total valuation just above $149 billion.

Both tokens are roughly down by 70 percent from their November peaks.

According to Kunal Jagdale, founder of BitsAir, investors have lost around $2 trillion due to the recent market carnage. “The risk aversion sentiments have weighed hard on the digital assets and the new investment asset class,” he added.

Data released on Friday showed that the annual inflation rate in the US accelerated to a 40-year high of 8.60 percent. The bears maintained their dominance in the global crypto market over the weekend. It is important to note here that the US Dollar Index (DXY) is also at a six-month high, having gained 2 percent in a single day and causing a drop in the stock and crypto markets.

“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptos suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” Edul Patel, co-founder and CEO of crypto investment platform Mudrex, said in a statement.

Besides the high inflation rates, several intramural and extramural factors have adversely impacted the crypto market. The market hasn’t yet revived completely from the Terra-UST crash and might face another in the form of Celsius’s looming shutdown.

“The tightening of monetary policy is denting the appeal for riskier assets like crypto and equity. Other than this, rising inflationary worries and looming recession concerns are also hurting the market for digital assets, which is quite in the nascent stage,” Jagdale said.

Despite the pessimism in the crypto market, some experts advise investors to buy the dip in order to average out their costs and make long-term gains. Based on current market sentiments and statistics, the recovery will be slow, according to Anndy Lian of BigONE Exchange. He added, “This could be a start to another crypto winter which could last for another 2 years.”

Among the intramural factors, there is a lot of talk about regulatory actions from various global governments, making the industry and investors nervous. Furthermore, Terra’s LUNA fiasco is a major contributor to the fallout. It is rumoured that Luna has wiped out $40 billion from investors’ bank accounts. Last week, digital assets worth approximately $102 million were sold by US crypto funds ‘in anticipation of hawkish monetary policy from the US Federal Reserve.

Despite the fact that the crypto market has tanked, NFT trading volumes have increased. Top NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Crypto Punks have increased by 100 percent in the last 24 hours.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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GALA coin price prediction: Where is the token headed in a bear market?

GALA coin price prediction: Where is the token headed in a bear market?

The GALA (GALA) cryptocurrency, responsible for the smooth running of the Gala Games ecosystem, saw a positive start to February 2022 as its value surged by 102.72% from $0.1875 on 2 February to $0.3801 six days later.

However, the GALA coin value dropped by the end of February to $0.2321 on the 27th of the month (a 38.93% decline) triggered by Russia’s invasion of Ukraine that led to an overall fall in the crypto market.

Following recent news of the platform launching Web3 Women, a community initiative by women for women in Web3, as well as positive endorsement from celebrities like Paris Hilton and Snoop Dogg, what does the long-term sentiment look like for the GALA price prediction in 2022, 2025 and 2030?

What is GALA coin?

Gala Games was founded in 2018 by Eric Schiermeyer (co-founder of game developer Zynga), Wright Thurston (crypto miner) and Michael McCarthy (creative director behind viral gaming like Farmville) with one goal in mind: to give power back to the gamers.

Through this initiative, Gala Games’ co-founders are targeting a wide niche of gamers who would like to change the gaming ecosystem.

The introduction of non-fungible tokens (NFTs) into the Gala Games ecosystem was the first step into making gaming more decentralised as well as helping players take control over the ownership of their game items. NFTs can be collected, traded and sold, not just within their own game but throughout the entirety of the Gala Games ecosystem.

In order to give power back to the gamers, Gala Games has established a blockchain network powered by the GALA tokens, which power the entirety of the platform. Built on the Ethereum network, GALA tokens are transferable between users who have full control over how to use them.

Users can also purchase nodes in GALA, ether (ETH) and Basic Attention Token (BAT) and acquire voting rights on which games will be published next on the platform, allowing players to exercise full governance. This process is also known as the Founder’s Nodes within the Gala Games Ecosystem, which is powered by over 16,000 player-run nodes.

GALA cryptocurrency can also be used as a reward to owners and is distributed daily to Founder’s Nodes that have operated for at least a required time using a point system. Running a node for six hours within a cycle will earn players one point. In order for the network to run smoothly, 50,000 Founder’s Nodes were released upon its launch.

In the long run, Gala Games is planning to establish multiple game studios that will each work on multiple games, creating a steady stream of NFTs, which will get dropped to the node network in order to incentivise the network and keep it stable.

So far, the platform has released one playable game – Town Star  – and an NFT collectible series – VOX.

No data is available on the maximum supply of GALA tokens; however, total supply exceeds 35 billion, with nearly seven billion in circulation. The token reached over $1.5bn in market capitalisation and is ranked as the 60th largest cryptocurrency by CoinMarketCap as of 18 March 2022.

GALA cryptocurrency did not have an initial coin offering (ICO) upon its launch.

Since its launch, the platform has acquired 1.3 million monthly active users and sold more than 26,000 NFTs, with the most expensive so far selling for $3m.

“I wouldn’t be doing this if I didn’t think this was literally the next phase of the internet. Everything that touches ownership is going to be affected by what’s happening here,” said GALA’s founder Eric Schiermeyer.

“Art and music and everything that has a digital life is going to be touched by this. Anything that you thought was digital that you thought you owned but didn’t really own — that’s what’s about to be revolutionised,” he added.

Key drivers of the GALA crypto price

The Gala Games token started to gain traction in September 2021 after being listed on Binance as well as Bibox crypto exchange platforms in the middle of the month as its price surged by 51594.13% to $0.1129 on 23 September 2021 from its previous all time low of $0.0002184 on 28 December 2020.

Following updates to Gala Games inventory, which made transferring items from within the platform’s ecosystem to Ethereum much easier, as well as the signing of a memorandum of understanding between Gala Games and Wemade Tree (the blockchain subsidiary of Korea-based gaming giant Wemade), the GALA crypto price moved sideways throughout October and mid-November.

Gala to USD price chart, 2020 - 2022

News published on 15 November that the company would be releasing its very first limited supply of Game Node licences for Town Star boosted the GALA token by 192.11%, up from $0.1268 on 15 November 2021 to $0.3704 a week later.

The token’s price managed to keep a steady growth pace and by 28 November 2021 surged to $0.7121, its all-time high, following the announcement of the release of a new series of its VOX NFTs.

Success, however, did not last long for the GALA cryptocurrency despite a general hype surrounding play-to-earn platforms, which in November surpassed a $1bn record in NFT trading volume, according to data published by DappRadar.

Between its all time high at the end of November and 3 December, the token’s value dropped by 28.88% to $0.5064.

The Gala Games coin continued on a downward trend in the following month until it reached $0.1813 on 22 January 2022 despite securing a $100m blockchain gaming fund in partnership with C² Ventures and preparing for the launch of Phase 2 of the nodes ecosystem at the start of January.

What is your sentiment on GALA/USD?

The token then moved sideways for a little over a week before jumping by 109.65% to $0.3801 on 8 February from its 22 January value, as anticipation built around the upcoming release of 8,888 membership NFTs in the Flare realm where Gala Games had integrated with the Flare Network.

In more recent GALA coin news, the platform announced that it had partnered with popular American rapper Snoop Dogg and would be releasing his latest record, B.O.D.R, on the blockchain and that the tracks would be sold as NFTs.

By 15 February, the token’s value started to rapidly decline once again, falling by 36.84% in one week from $0.3547 on 15 February to $0.224, following Russia’s invasion of Ukraine that triggered overall negative market sentiment.

“The surge in GALA token is mainly due to the interest in metaverse and gaming tokens worldwide,” BigONE Exchange chair in Asia, Anndy Lian, told Capital.com.

“Its founders have done well in gaming and crypto mining. This becomes an added advantage. The token itself is based on Ethereum and is well supported by the community of faithful investors. Adding steam to the whole equation is that they are listed on most of the leading exchanges including Binance, FTX, Coinbase, Bybit, Huobi and Kucoin.”

What’s next for the Gala Games crypto?

Since 15 February 2022, the GALA crypto price has been moving sideways despite having been endorsed by the likes of Snoop Dogg and Paris Hilton. As of 18 March 2022, the token is trading at $0.222.

The platform has lined up a number of exciting partnerships including Frank Miller, Under Armour and AMC’s hit show The Walking Dead. Upcoming projects include the release of more games such as Last Expedition #, legacy and The Walking Dead: Empire, which will drive a new range of users to the Gala Games ecosystem.

It is also planning to expand its sustainable initiatives.

Between 6 and 8 June 6 2022, the platform will be in Copenhagen, Denmark, where it will host Galaverse, an immersive world experience for each one of its games.

Because the GALA token was built on the Ethereum network, it heavily relies on the ETH performance, making it quite volatile. Moreover, the token could start facing competition as tensions rise in the gaming/NFT space amid their growing popularity, Invezz’s data analyst, Dan Ashmore told Capital.com.

However, he noted that brighter times for the GALA coin value could be looking up ahead.

“GALA, the community-led gaming platform, spiked 20% in 24 hours at the start of February following the news that Galaverse will occur in June. At the last event last December, numerous projects were launched (including Legacy & The Walking Dead: Empires), and there is speculation more will be announced this June,” he told Capital.com.

“20% represents a huge jump for merely an event, and markets have pulled the token back below levels even before the announcement. GALA earlier announced a $5bn investment to expand their NFTs, and if that or the Galaverse don’t work out, this token could continue to tumble… If, however, projects remain on track and Galaverse does not disappoint, GALA could rise above a $3.5bn market cap. The all-time highs of $5bn set last November seem a reach.”

GALA coin price prediction: Will this be a good few years?

Algorithm-based forecasting service WalletInvestor gave a positive GALA prediction at the time of writing (18 March), calling it an “awesome long-term investment”.

Based on its analysis of the cryptocurrency’s past performance, the site predicted that the GALA cryptocurrency could trade at $0.559 by 2023 and reach $1.918 by 2026.

DigitalCoinPrice supported the bullish GALA crypto price prediction but at a much slower pace, seeing the coin reach $0.31 by the end of 2022 and $0.46by December 2025.

The site did not see a GALA price prediction surpassing its all-time high any time soon as its long-term GALA coin forecast showed the cryptocurrency reaching $0.64 by the end of 2027 and $1.19 by 2030.

Note that these predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing, and never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/gala-coin-price-prediction-is-it-a-good-investment

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Market Manipulation in the Cryptocurrency Industry

Market Manipulation in the Cryptocurrency Industry

News last week of the first ever seizure of NFTs by the UK tax agency in response to suspected tax fraud was a sign that last year’s booming NFT economy maybe running into some roadblocks in 2022. While recent data show that trade in NFTs rose from $106 million in 2020, to $44.2 billion in 2021, it’s a sign this meteoric rise is attracting the attention of authorities. And in the US, following reports of insider trading in NFTs and price manipulation, crypto-related crimes are the focus of a new National Cryptocurrency Enforcement Team. While there has been a lag in enforcement, as criminal and tax enforcement authorities struggle to play catch up, it’s clear cases of fraud and market manipulation in the crypto market are likely to hit the headlines in ever growing numbers in 2022.

Just last month it was reported that OpenSea NFT marketplace rival LooksRare was experiencing significant wash trading as some traders were taking advantage of its token-based rewards system. LooksRare gives away its own LOOKS token to users who trade in specific collections, worth over $12 million a day back in January. What raised suspicions was the trading back and forth of NFTs for inflated prices, which appears to have been motivated by a desire to boost the share of trading rewards. “Such wash trading tactics to manipulate token rewards distribution may not be illegal, but it’s distorting the data coming out of the marketplace,” argued Andrew Hayward in Decrypt. “LooksRare can tout figures that show significantly higher trading volume than OpenSea, but when the bulk of the top transactions appear to have been executed purely to game the system, the data holds little value,” he added.

The problem of wash trading in NFTs is a critical problem, both for the industry at large as well as for individual investors who want to invest in this exciting asset class without fear of fraudulently inflated prices. The practice of wash trading is when someone both buys and sells the same NFT or cryptocurrency to give the impression of greater trading volume, creating an impression of greater demand; this in turn helps inflate the NFTs price and attractiveness to buyers. In a recent investigation into this practice blockchain experts Chainalysis discovered that 262 NFT sellers had conducted more than 25 times to a self-financed address, in other words wash trading. While more than half the wash traders made a loss, by paying more in gas fees than they made, the investigation found that, “110 profitable wash traders have collectively made nearly $8.9 million in profit from this activity. Even worse, that $8.9 million is most likely derived from sales to unsuspecting buyers who believe the NFT they’re purchasing has been growing in value, sold from one distinct collector to another.”

Of course, market manipulation is wider than the NFT market, and in a relatively unregulated environment this has the tendency to increase the volatility of the market, affecting market sentiment and pricing. Although in principle cryptocurrency and tokenized assets rely on decentralized networks, the dangers of crypto criminal activity force regulators to monitor the crypto sector. Indeed, the market is still so easy to manipulate that even a tweet by a famous influencer. While Matt Damon’s ‘Fortune Favors the Brave’ crypto ad was widely mocked on social media, it underlines the power of celebrity endorsement in the space which shows no sign of changing. In the recent Super Bowl leading marketplace Coinbase spent close to $14m on a simple bouncing QR code-based ad, but the remainder drew heavily on celebrity endorsement, from LeBron James giving advice to his teenage self to comedian Larry David satirizing the fear of missing out in an FTX ad. It’s true the core appeal of NFTs going forward is the way it enables a direct relationship between fans and celebrities, the power of celebrity is also ripe for exploitation.

Within the wider cryptocurrency market, regulators are increasingly focusing on this kind of market behavior with recent warnings to retail investors in Singapore. While the FCA in the UK is currently consulting on  concerns about “the ease and speed with which people can make high-risk [crypto] investments by proposing a significant strengthening of its rules on how high-risk financial products are marketed.” Sarah Pritchard, Executive Director of Markets at the FCA, explained the thinking behind the current action in preparation for the UK Government bringing the promotion of crypto investments under the FCA’s remit: “Too many people are being led to invest in products they don’t understand, and which are too risky for them. People need clear, fair information and proper risk warnings if they are to invest with confidence, which is the central aim of our consumer investments strategy.”

Typical market manipulation strategies:

Pump and dump

Pump and dump refer to an individual or a group pooling funds to inflate a token and profit from the price growth, by selling a token once it has attracted the attention of other investors, at an inflated price. While so-called ‘pump and dumps’ have made a lot of money for a few people, the causalities are new investors who are unaware of what is going on are more likely to fall victim and lose their money.

Wash trading

As outlined wash trading is the practice of buying and selling a NFT or token asset to yourself to inflate its volume, which in turn attracts attention and helps inflate prices. There are numerous instances where unregulated exchanges or crypto traders use this method by trading a token in huge volumes for its value to receive attention, distorting the market even further and benefiting the manipulators.

Spoofing

This strategy was prevalent, particularly in the early days of cryptocurrency, and it is still used on small, unregulated exchanges. The approach involves placing a huge order to generate create fake demand. Essentially, the order can influence a bullish or bearish sentiment to the favor the fraudulent trader. Typically, they will place big sell orders to trick novice investors into panic-selling, before removing their sell order and acquiring tokens at a lower price.

How to best avoid market manipulation

The best advice to crypto investors is to conduct thorough research to avoid falling prey to manipulated cryptocurrency projects. You can also cross-check all information about a token to verify and fully understand the factors behind an asset’s movement and price action. Furthermore, traders can make informed selections by sticking to making decisions based on longer term trends rather than recent bias. It’s also critical for you to diversify your portfolios to protect yourself from unforeseen market manipulation, as the likelihood of market manipulation affecting all your crypto assets is low. And to bear in mind that the lower the volume of certain coins is makes them easier to manipulate.

The cryptocurrency market is risky like any other asset trading market. The downside is that continued market manipulation is prompting regulators to step up their efforts to monitor the cryptocurrency market. However, with big money to be made market manipulators will seek to conceal their actions, so investors still need to educate themselves on how to detect and deal with these issues. Within the industry cryptocurrency exchanges are taking the initiative, for example with the recent launch of the Crypto Market Integrity Coalition, to help combat fraud and promote public and regulatory trust. BigONE Chairman Anndy Lian said that in terms of NFTs there needed to be a common industry standard to ensure both ownership and copyright. “I always encourage everyone in crypto to work hard for their holdings. Shill properly, ethically, and smartly. It is a fine line between good shill and spam. My motto is ‘respect everyone’. This is my way of life. But when I see a scam, I will point it out. At the end of the day, it’s a shared responsibility between crypto community members and the teams behind crypto projects.”

 

Original Source: https://www.securities.io/market-manipulation-in-the-cryptocurrency-industry/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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