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Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

I have also added more insights to what I was quoted in The Economic Times.

Anndy Lian said: “The key weakness to crypto is that we are too closely linked to traditional assets. This weakness is amplified by traditional institutions that were here just for short-term gains. The quick outflow of money left us high and dry.

I think the major tokens contributing to this fall started off with the TERRA LUNA and UST saga last month. Then we saw a global economic slow down choked amid inflation and war, which then resulted in weaker demand in Bitcoin from long-term holders on top of higher selling pressure from the short-term holders. This added pressure to Ethereum too, which has fallen close to 28% in the last 7 days. The downstream issues have snowball effects as the two big brothers continue to fall. Today we saw Celsius tanking 70% in 1 hour after they stop withdrawals citing extreme market conditions. Withdrawals also cause liquidity issues and could result in unsustainable APY.

We need to understand that the whole crypto market is tightly knitted together. While many out there are spreading FUDs about Ethereum for instance. They are also indirectly killing themselves. At such times, we need to stay united and make relevant decisions to reduce losses to the investments made in the most logical manner.

The recovery will not be anything soon based on the current market sentiments and statistics. This could be a start to another crypto winter which could last for another 2 years or so.”

 

Crypto carnage continues! Investors lose over $2 trillion in eight months

New Delhi: The carnage in the crypto market has gathered pace with no near-term respite in sight. Considering the latest slide, investors have lost over $2 trillion (about Rs 15.65 lakh crore) over eight months.

If we compare the notional value lost, only eight countries have a GDP more than what the crypto market eroded in less than three quarters. Countries like Canada and Italy have a GDP of little more than $2 trillion, whereas Brazil’s GDP stood at $1.83 trillion.

The total market capitalization (m-cap) of the digital market is marginally above the $1 trillion mark, which was more than $3 trillion at its peak in November 2021.

Bitcoin, the largest crypto token, is barely above the $25,000 level. It has dropped more than 20 per cent over the weekend, with its market cap slipping below $500 billion or half a trillion.

Its largest peer, Ethereum, has barely managed to hold the $1,300 mark, with total valuation just above $160 billion.

Both the tokens are down about 70 per cent from their peaks. Bitcoin’s dominance in the total market cap has been about 47.25 per cent, which shows that altcoins are left with value worth merely a few billion dollars.

Market participants are linking the weakness in the crypto market closely with the traditional asset class.

Shivam Thakral, CEO, BuyUcoin said after the consumer price index reported the highest inflation since 1981, financial markets across the globe have seen a sharp downturn. The rising food, gas, and energy prices are putting tremendous pressure on the crypto market, he added.

“The market is expected to remain choppy in the coming weeks and the globe continues to report high inflation numbers.”

Anndy Lian, Chairman, BigONE Exchange said the weakness is amplified by traditional institutions who were here just for short term gains. The quick outflow of money left us high and dry, he added.

“We saw a global economic slowdown amid inflation and war, which then resulted in weaker demand. There are liquidity issues and could result in unsustainable annual per cent yield.”

Among the altcoins, Curve Dao Token, Nexo, Fantom, Stepn, Waves, Kava and THORChain have taken a big hit. These tokens are down by 20 per cent in the last 24 hours.

On a weekly basis, Convex Finance, ApeCoin, Avalanche, Near Protocol, Axis Infinity, Harmony and The Graph are down by 35-50 per cent. The major part of this correction has been witnessed over this weekend.

Praveen Kumar, Founder & CEO, Belfrics Group said the volatility in the market would continue which would have a significant impact on the valuation of other coins including Ripple, Cardano, Tether, Solana, among others.

The recovery will not be anything soon based on the current market sentiments and statistics, said Lian from BigONE Exchange. “This could be a start to another crypto winter which could last for another 2 years,” he adds.

On the other hand, some experts are suggesting investors to buy the dips to average out their cost and make gains in the longer term. Going forward, I believe the volatility would continue and there would be immense pressure on Bitcoin and other key altcoins as well, said Kumar of Belfrics.

Thukral from BuyUcoin said that the current dip in the crypto prices allows investors to buy crypto at 2021 prices and we expect the seasoned investors to take advantage of the dip.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

 

 

Original Source: https://economictimes.indiatimes.com//markets/cryptocurrency/crypto-carnage-continues-investors-lose-over-2-trillion-in-eight-months/articleshow/92179178.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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 the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. 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.

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”.

www.anndy.com
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Singapore rejects over 100 licensing applications from digital currency firms

Singapore rejects over 100 licensing applications from digital currency firms

Singapore’s central bank is proving to be the toughest regulator in the world for digital currencies to obtain an operating license from. According to a recent report, of the 176 firms that applied for the coveted license, about 100 have seen their applications rejected and only five have obtained the license so far.

Singapore was once seen as a digital currency haven, with many firms setting up local operations or moving their headquarters there. However, the local regulator has become very tough on these firms in the past two years. The Monetary Authority of Singapore (MAS) has shown just how serious it is on ridding the country of unregulated entities after kicking out Binance and its local subsidiary Binance.sg from the country, despite its CEO Changpeng Zhao residing in Singapore.

A report by Japanese financial newspaper Nikkei reveals that the MAS crackdown goes beyond bringing down the world’s largest exchange. The newspaper reports that out of the 176 businesses that applied for a license to offer “digital payment token services,” 103 have either been rejected by the MAS or the applicants have withdrawn their application.

The MAS insists that it’s a supporter of blockchain technology and digital currencies and believes they have a role to play in the future of finance. However, it recognizes the risks they pose and is determined to protect Singaporean investors.

“Cryptocurrencies could be abused for money laundering, terrorism financing or proliferation financing due to the speed and cross-border nature of the transactions,” a spokesperson for the watchdog told Nikkei.

“Digital payment token service providers in Singapore … have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions,” the spokesperson added.

At first, the MAS let the virtual asset service providers (VASPs) operate with little oversight. However, it introduced a new licensing regime in January 2020 when the Payment Services Act took effect. Companies that were already operating were allowed to keep on serving their clients by being granted an exemption until the MAS could review their applications. In July 2021, there were 90 companies in this category. A week ago, this number had shrunk to just over 70.

Currently, the MAS has only listed three firms as licensed digital currency entities. These are Independent Reserve, an Australian exchange; FOMO Pay, a digital payments startup; and DBS Vickers Securities, a subsidiary of DBS Group Holdings, Singapore’s largest bank.

Coinhacko and TripleA are the other two that have made announcements claiming to have received the coveted license, although the MAS hasn’t officially recognized them on its website.

Some appreciate the MAS’ strict regulations and requirements for the VASPs. However, there have been many complaints, especially from companies whose license applications have been denied.

Anndy Lian, the chair of Dutch exchange BigONE, is one of those who’ve expressed disgruntlement over the process under which the MAS is handing licenses. He believes that the regulator arbitrarily selects winners and losers in the Singaporean digital currency sector.

“The whole process of selecting who to give the license to is not very transparent. It gives the impression that the government is favoring big players and foreign exchanges,” Lian stated, speaking to Nikkei.

Even those that have obtained this license have some complaints about the MAS. Eric Barbier, the CEO of TripleA, one of the five licensed firms, called out the regulator for its refusal to engage with the industry and tell firms what it requires from them.

“MAS never talks. MAS asks questions and questions and questions. You can ask questions but they will not answer, and most regulators are like this,” said Barbier.

 

 

Original Source: https://coingeek.com/singapore-rejects-over-100-licensing-applications-from-digital-currency-firms/

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 the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. 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.

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”.

www.anndy.com
j j j