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Gaming blockchain and NFT resist the bear market

By
Edmund Hurtt
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0
Gaming blockchain and NFT resist the bear market

According to the latest figures, the bear market is one of the most violent in history. However, the games and NFT sectors are particularly resilient to this market in the red.

The worst bear market in history?

According to many indicators and figures, this bear market would be the worst in history . In this context, NFT trading is doing more than well. Indeed, it saw its volume increased by 23%. For its part, blockchain gaming attracts many major investors and players continue to flock to take part in this gaming 3.0.

Total market capitalization has dropped 34% since the crash of the Terra ecosystem. Since all projects are experiencing difficult days starting with the leaders Bitcoin and Ethereum. Some of the big companies in the sector like Coinbase or BlockFi have been forced to lay off some of their employees. More seriously, companies like Celsius, Voyager or Three Arrows Capital found themselves close to bankruptcy or outright bankrupt. All of these events heightened investor concern and bearish sentiment for the entire ecosystem.

NFTs do well

Although the NFT sector has also taken a hit since the Terra crash, it is doing relatively well. Indeed, overall sales have increased by 59% since the second quarter of 2021. Stronger still, trading volumes have increased by 553% year- on-year. If we analyze the trading volume of NFTs in dollars over the last few months, we note a drop of 70% since May. This drop is less spectacular if we take the same figure in Ether: only 55% drop.

The NFT market cap continues to grow despite the bear market. Its low was in October at million ETH and its high was in April at 6 million ETH. In June 2022, it held more than well at 5 million ETH .

A study on the subject mentions:

“Year-over-year, the stats look even more impressive as Ethereum-based collections grew 2093% while Polygon grew 456%, with an overall increase of 1999%.”

The long-term trend is therefore clearly in favor of the various collections and the NFT sector in general. This study also tells us that the leader of NFT marketplaces, OpenSea , is losing market share to its competitors LooksRare or even Magic Eden . The recent phishing attacks on OpenSea have surely played a role in this drop in traffic for the leader of NFT marketplaces. However, despite everything OpenSea remains the leader in this sector but will surely have to expect new attacks from the competition in the months to come!

Blockchain gaming continues to progress

For its part, blockchain gaming is also doing well. According to recent figures, the blockchain gaming industry only fell by 5% compared to 26% for the crypto industry in general. The study tells us:

“This is a bullish indicator for blockchain games, as many have speculated that game dapps will lose most of their player base if they stop being financially profitable for the average user. It turned out that was not the case.”

Spliterlands has become the most played blockchain game . Launched 8 months ago now, it has over 350,000 active daily users with only a slight drop of 4% in recent weeks. Games like Alien Worlds, Farmers World or Axie Infinity follow closely in the top of blockchain games.

Even though Axie Infinity is not the leader, the numbers show that it is the most searched blockchain game in 122 countries. We recently told you about the strong comeback of the pioneer of NFT games.

Decline in Ethereum trade: $1,600 billion less in the second quarter!

By
Edmund Hurtt
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0
Decline in Ethereum trade $1,600 billion less in the second quarter

After a sad month of June, which saw it give up another 45% to close at $1000, Ethereum has regained some color by holding above $1200 for the past few days. But Ethereum trading volumes still continue to decline, with 1.6 trillion less in the second quarter.

Ethereum (ETH) trading volume hits low

It seems a long time ago when Ethereum moved more money on its network than Visa.

It will be recalled that in 2021, Ethereum saw more than 11,600 billion dollars being exchanged on its blockchain , far ahead of the Visa network (10,400 billion) and especially far ahead of Bitcoin (4,600 billion).

The crypto winter persists, and Ethereum has continued to navigate in a zone between $900 and $1200 for several weeks. But while buyers have for the first time made a tangible breakthrough against sellers, trading volumes are still at rock bottom.

Based on data from the specialized portal etherscan.io , it is estimated that almost 1,680 billion dollars were exchanged on the network during the second quarter of 2022. Almost half as much as in the second quarter of 2021 !

Crypto-winter and Ethereum’s drop in traffic

The drop in traffic on the Ethereum network is flagrant with less than 415,000 active addresses over the last days of June . You have to go back to November 2020 to find such low values.

June also saw several yearly lows in the number of daily transactions. As with the number of active addresses, daily transactions fell below the symbolic million for the first time on June 26.

Again, you have to go back to November 2020 (November 29: 993,930) to find equivalent values.

Unexpectedly, this drop in liquidity on ETH also benefits users. As we told you recently, the cost of transactions on Ethereum has dropped considerably in recent months, reaching $0.40, a far cry from the $60 you had to pay in May 2021.

(Let’s set aside the statistical aberration of May 1 , when fees jumped to $200 in the first virtual land sales from Otherside, Yuga Labs’ metaverse.)

Burns, staking and The Merge: several factors at play?

Where does this persistent drop in liquidity on Ethereum come from? First of all, it is obvious that the drop in volumes traded is not exclusive to Ethereum, but rather a basic trend on all crypto markets .

Prices are falling, and buying investors are showing up much less than during the best months of the last bull run .

Then it may be necessary to make a connection with the long-awaited passage of Ethereum to proof-of-stake. Indeed, the number of ethers locked on the Ethereum 2.0 staking contract is breaking records, peaking at more than 13 million ETH. Clearly, more than 10% of ethers have been withdrawn from circulation !

13 million ETH already locked (source: etherscan.io)

Finally, the drop in liquidity on Ethereum is also due to the burn mechanism implemented in August 2021. Due to the EIP-1559 update, approximately 3.10 million ETH must in principle be burned out of the 5.40 million produced each year by the miners.

Since January, no less than 2.40 million ETH have been burned.

The combined influence of these factors leads us to believe that the decline in trading volumes on Ethereum is not about to stop. At least until The Merge , scheduled between August and November.

Ledger now allows the use of FTX

By
Christopher Patillo
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0
Ledger now allows the use of FTX

The Ledger Live crypto wallet now allows the use of FTX to exchange cryptocurrencies. This update brings significant comfort to users combining a secure wallet with a centralized platform.

FTX and Ledger team up

Ledger, the brand recognized worldwide for its highly secure crypto wallets and the FTX exchange platform are joining forces to bring more convenience to their users. Thus, the Ledger Live application now offers the possibility of exchanging cryptocurrencies directly. In fact, it simply offers an option to connect to the FTX exchange platform in order to carry out such a transaction through your account.

Thanks to this novelty, it not only facilitates transactions, but also saves money while having optimal security. Indeed, you do not need to first send funds to FTX then make the exchange and then send everything back to your wallet. Here, everything happens through the Ledger Live application with just a few clicks.

You not only save time, but money. Here is an update that is likely to delight users! As a bonus, that’s over 120 different cryptos you can trade this way. There is also a combination of over 7000 different pairs.

Towards an essential ecosystem

Ledger is not only creating a powerful and very secure application for its users, but also thinking big. Indeed, the Ledger Connect extension was recently released for iOS and Safari. Still in beta, it will surely be available on more browsers in the future and plans, for example, to integrate Metamask management.

Similarly, the development of the clear signature is planned. Thanks to this new feature, it will prevent many scams. For example by validating a transaction without knowing with whom it is signed. This could result in a smart contract aimed at emptying the wallet.

The Ledger Live app doesn’t just stop at its partnership with FTX. It also offers other services in the Discover tab, allowing you to use ParaSwap, Alkemi or even 1inch.

Having such a successful ecosystem for both experts and beginners who may feel confused by all the information to consider is definitely an important step to democratize the cryptocurrency industry much more.

Ledger is, according to the CEO, Pascal Gauthier, around 20% of crypto fortunes who use their hardware. Renowned reliable and secure throughout the world. With Celsius’ setbacks, sales of a Ledger crypto wallet have increased.

The crisis becomes a takeover party as Nexo wants to buy the next bankrupt rival

By
Naomi Glover
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0

After FTX, Nexo is now using the bankruptcy wave of crypto lending platforms to take over cheap rivals. It wants to swallow Vauld.

Also Read: Friendly weekly close on Wall Street with a push in Ethereum Price, Crypto Price Prediction and more

  • Leading crypto lending service Nexo is initiating a process to acquire its rival Vauld , according to The Block .
  • Nexo announced on Thursday that it has signed a preliminary letter of intent with Vauld.
  • It wants to acquire up to 100 percent of the company.
  • Vauld has suspended all withdrawals, trading and deposits since this Monday.
  • The crypto lending service was founded in 2018 and is mostly based in India.
  • At its peak, the service managed nearly $1 billion in assets.
  • Last month, Nexo offered to take over struggling rival Celsius . But he didn’t go into it.
  • FTX this week initiated the $680 million purchase of BlockFi, another battered crypto lending service.

Friendly weekly close on Wall Street with a push in Ethereum Price, Crypto Price Prediction and more

By
CT Forecast (Staff Writer)
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0
Ethereum price the lowest level for 15 months has been reached

The positive weekly close on Wall Street in the USA also brings Bitcoin (BTC) and Co. significant price increases. Many alternative cryptocurrencies are increasing in value by double digits.

  • Positive economic data from the USA caused prices on the traditional financial markets to rise significantly in the second half of the week.
  • The crypto market is currently also benefiting from this bullish trend, which has gained around eight percentage points in the last 48 trading hours.
  • The price strength of the key cryptocurrency Bitcoin (BTC) is also pulling many alternative cryptocurrencies north.
  • In addition to Ethereum (ETH) with a good seven percent price increase, Polygon (MATIC) with 16 percent and Uniswap (UNI) with 18 percentage points in value growth are particularly convincing.
  • The total market capitalization also rose again to the psychological $1 trillion mark.
  • Sustained friendly sentiment in the coming trading days could push the value of the entire crypto market up to the key resistance level at $1.16 trillion.

Ethereum: Bulls and Bears again in battle for the key resistance

Ethereum (ETH) price is making another bullish breakout attempt. The recapture of USD 1,267 should result in follow-up buying.

  • Rate (ETH): $1,231 (previous week: $1,069)
  • Short-term resistances/targets: $1,241/1,267, $1,326/1,359, $1,425/1,480, $1,571, $1,713, $1,829, $1,909, $2,050, $2,164, $2,305, $2,448/2,485, $2,733
  • Short-term supports: $1,125, $1,063, $992, $935, $882, $720, $663/634, $531/489
Price Analysis Ethereum (ETH) 08.07.22
Price analysis based on the value pair  ETH/USD on Bitfinex

Ethereum Recap

  • The ether price continues its price recovery in the current trading week.
  • This Friday morning, the ether price jumped again to the important resistance level at USD 1,267, but failed, as it did last time, at this strong resist level.
  • The fact that Ethereum was able to continue to defend the purple support zone and is currently trying to form a floor above it is still positive.
  • The bulls must now do everything in their power to sustainably break through today’s daily high. The next price target between USD 1,326 and USD 1,359 will only be activated if this relevant price level is dynamically recaptured.
  • If these two resistances are pulverized, the ether course could target the gray resistance area between USD 1,425 and USD 1,480 in a timely manner.
  • At the time of writing this analysis, today’s daily candle seems threatening after a bearish reversal candle, a so-called “shooting star” is threatening to form.
  • The fact that the labor market data from the USA published at 2:30 p.m. (CET) was well above analysts’ expectations is certainly positive from an economic point of view, but the unchanged robust condition of the US economy points to further interest rate hikes in the coming months. As a result, investors’ hopes of getting “cheap” money again faster than expected could be dashed for the time being.    

Important course markers for the coming trading days

  • If the buyer side again fails to bring Ethereum back above USD 1,267 and Ethereum builds a so-called double top, at least a correction back to the support at USD 1,125 can be expected.
  • The relevant support area for Ethereum is unchanged between $1,063 and $992.
  • The RSI and MACD indicators are currently showing an inconsistent picture. As in the previous week, the MACD has an active buy signal. The RSI indicator can also continue to recover with a value of 47 and is now back in its neutral zone between 45 and 55. Only a breakout above 55 would also generate a new buying impulse for the RSI.

Bullish Scenario Ethereum Price Forecast

  • The bull camp again tried to clear the strong resistance at $1,267 in the last 24 hours of trading. As 14 days ago, however, the ether course seems to have taken over for the time being.  
  • The buyer camp must now do everything possible to ensure that the ether price does not slip back below USD 1,125 and in turn to raise it above the first relevant resist level at USD 1,267 in a timely manner.
  • If a sustained breakout above this resistance is successful, the supertrend, currently at USD 1,326, comes into view as the first target. A spike up to the upper edge of the blue resistance zone should also be planned for.
  • If these price marks are overrun and Ethereum can generate further upward momentum, the gray resistance zone awaits as the next price target.  
  • Another relevant resist zone awaits between USD 1,425 and USD 1,480. However, the EMA50 (orange) is also found on the upper edge.
  • If Ethereum does not bounce sharply south here and the crypto market continues to gain momentum, a price increase to the purple downward trend line, currently at USD 1,667, can be expected in the future. In addition, the tear-off edge at USD 1,713 is within reach. Significant profit-taking and renewed sell-off attempts by the bears are to be planned here.
  • A further correction movement to the south would be conceivable.

Plan for further price increases in Ethereum

  • The next price target in the form of the 23 Fibonacci retracement at USD 1,909 will not be activated until the buyer side can stabilize the ether price sustainably above USD 1,713.
  • If this resist is recaptured in the medium term, investors will focus on the next potential recovery targets at USD 2,050 and USD 2,164. However, the Ethereum price should again consolidate more significantly at USD 2,164.
  • However, a renewed drop below USD 1,713 must be prevented at all costs. Only then is a sustained upward movement into the yellow resistance zone between USD 2,305 and USD 2,485 possible. As repeatedly mentioned in the previous weeks , this resistance zone acts as a maximum bullish price target for the coming trading months.
  • Further price potential up to at least USD 2,733 is only activated when Ethereum dynamically breaks through this resistance area.

Bearish Scenario Ethereum Price Prediction

  • For the time being, the bears prevented a sustained breakout above the historical high of June 26 of the previous month in the early hours of the morning.
  • Even an increase up to USD 1,480 would still be manageable from the point of view of the seller camp.
  • However, in order to generate sustained selling pressure again, the ether course must be sold back below USD 1,125.
  • Only then is further consolidation up to at least USD 1,062 available. If Ethereum falls back below this support from the 38 Fibonacci retracement and horizontal support at the daily closing price, the chance of a sell-off to the low of June 30 at USD 997 increases.      
  • Should Ethereum then break below the purple support zone again, the support levels at USD 935 and USD 882 will come into focus again.

The old breakout level as a target in view

  • If the ether price cannot stabilize here this time and generates a new annual low, the downward movement extends to around USD 720.
  • If the crypto market continues to be bearish, a fall back into the zone between USD 663 and USD 634 should not come as a surprise. In addition to the higher-level 50 Fibonacci retracment, the breakout level from December 2020 also runs here.
  • Plans are definitely to be made with increased resistance on the part of the buyers.
  • However, if Ethereum does not manage to use this area to bottom out, a sell-off to the higher target area between USD 531 and USD 489 is not excluded.  

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

Ethereum price: the lowest level for 15 months has been reached!

By
Edmund Hurtt
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0
Ethereum price the lowest level for 15 months has been reached

This Saturday, the price of Ethereum recorded a decline of almost 8%, thus dropping to its lowest level in 15 months . Ethereum has indeed fallen below the $1,600 mark, just after the first merger tests on its Ropsten network. Remember that these tests are necessary before the update The Merge, scheduled for this summer. Worse still, as of this writing, Ethereum price has risen to $1,267, how high can it go?

A continuing downward trend

The cryptocurrency market, driven by the high volatility of Ether and Bitcoin, has recently had a bad time. Stock markets also fell on Friday following the release of an inflation report showing that price increases are much higher than expected.

According to NextAdvisor, while Bitcoin has lost 36% of its value since the start of the year, Ethereum has lost more than 51% . Analysts say this may be due to the anticipation of the network transitioning from proof-of-work to proof-of-stake. As a reminder, The Merge makes it possible to improve transactions on Ethereum, but above all to make them more efficient and more sustainable.

Increased volatility for Ethereum

Last December, Ethereum broke above $4,100 and then hovered between $2,100 and $4,000 over the following days. In January, the cryptocurrency fell below the $2,200 mark and this week the pattern is repeating itself, as the price of the asset is between $1,600 and $2,000.

Recall that the end of the year 2021 was rather positive for the asset which set a new record when it exceeded $4,850 on November 10. The upward trend lasted until early December before falling again at the end of the month. Ethereum still ended the year above its starting level before moving back above $1,000 in January 2022.

Even with the current situation, experts remain optimistic, because according to their forecasts, the price of Ethereum could potentially reach or even exceed $12,000 this year .

What should investors do?

As with any long-term investment, experts recommend ignoring the ups and downs. Indeed, the latest price up in no way means that Ethereum’s volatility is entirely gone .

Investors have to wonder if cryptos will continue to see compound and exponential growth . Of course, nothing is certain in this sector and it is simply impossible to guarantee that the value of a cryptocurrency will increase or not.

However, experts advise never to invest more than 5% of your asset portfolio in cryptocurrencies. Indeed, this could be an obstacle to achieving other financial goals, such as repaying high-interest debt or retirement savings, for example.

In summary, to avoid headaches, it is better to ignore the hype surrounding new highs or lows of Ethereum and instead aim for a long-term strategy such as DCA. In addition, it is essential, if you want to invest, to proceed on a reliable platform. As such, we can for example advise you eToro which recently obtained its PSAN registration in France.

Samsung launches a Discord server dedicated to web3

By
Stella Mason
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0
Samsung launches a Discord server dedicated to web3

The group announced on Monday the launch of a Discord server dedicated to web3 and NFTs . Samsung had already taken its first steps into the world of web3 by offering the Samsung837X experience in the Decentraland metaverse as well as an immersive event, the Samsung Superstar Galaxy on Roblox.

Samsung does not want to miss the web3 revolution

Samsung’s official Discord server went live on Tuesday and is billed as “a virtual destination for deepening consumer connections and cultivating a community of creators . “

In its press release, the brand adds “The Samsung US Discord server will allow users to enjoy revolutionary new experiences thanks to the brand’s passion for bold innovation and its ability to push the limits, both in the real world and in the world. the digital world .

Samsung is therefore not left out of superlatives to qualify this launch after all. She also adds that her choice fell on Discord because it would be the preferred channel for the web3 community.

Commenting on this, Michelle Crossan-Matos, CMO of the US branch of Samsung, said: “Virtual communication platforms, such as Discord, allow us to cultivate a community where both Samsung enthusiasts and new fans .

Confessing, half-wordly, the company’s fear of missing out on a small revolution, she adds: “While enthusiasts anticipate the launch of an NFT , the distribution of an exclusive product or a virtual event , we explore this new frontier alongside them, allowing us to experiment, learn, and ultimately shape our future metaverse . ”

A business with uncertain success?

On the occasion of this launch, Samsung will win gifts for a handful of Discord subscribers drawn from until June 10. The company will also offer, on its server, access to virtual events as well as Samsung Odyssey games.

The US Discord server currently has over 88,000 members . Access to the latter is currently laborious, slowed down by strong demand. For now, we wonder if the aura of the company number 1 in mobile telephony will crystallize the timid enthusiasm of its community intrigued by the web3.

Conversely, it is doubtful that Samsung will succeed, for the time being, in convincing enthusiasts of the essential nature of its role in the sector. That said, the number of memberships to this server, launched on Tuesday, testifies to a certain curiosity.

Hong Kong treats some NFTs as financial assets and imposes regulations

By
Ismael Brooks
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0
Hong Kong treats some NFTs as financial assets and imposes regulations

Hong Kong is taking on the non-fungible token (NFT) sector. The country’s financial watchdog believes that certain tokens certified on the blockchain can be considered financial assets. They are subject to the same regulations. Firms specializing in NFTs will have to apply for a license to operate in Hong Kong.

Hong Kong distinguishes 2 categories of non-fungible tokens (NFT)

Hong Kong seems determined to regulate the non-fungible token (NFT) sector . In a press release published on Monday, June 6, 2022, the Securities and Futures Commission (SFC), the country’s financial policeman, distinguishes two categories of digital assets certified on the blockchain.

According to the SFC, the majority of NFTs on the market are intended “to represent a single copy of an underlying asset such as a digital image, artwork, music or video” . In this case, the digital works are beyond the organization’s control.

On the other hand, the financial policeman considers that the second category of NFT falls within its “regulatory competence” . These are non-fungible tokens that sit on the border “between a collectible and a financial asset” . The regulator ensures that certain tokens are “structured in a form similar to financial securities” within the framework of a “collective investment regime” .

Regulations to govern the sale of NFTs

Clearly, the SFC seems to target NFTs whose objective is to finance a project and which make it possible to receive benefits. In this case, the organization recalls that regulations have been put in place in Hong Kong. Companies that offer digital assets of this ilk must apply for a license from the SFC . This is also the case for firms located abroad that target investors residing in Hong Kong.

The financial policeman also assures that the NFT market exposes investors to “increased risks, including volatility, opaque prices, piracy and fraud” . The SFC recommends that investors be aware of the risks inherent in the non-fungible token sector before embarking.

Once very soft on cryptocurrencies, Hong Kong has gradually hardened its stance in recent years. Regulators first started increasing their oversight of crypto-asset exchanges and imposing strict rules for trading. Despite the measures taken, the regulations in force in the country remain particularly vague, which complicates the development of specialized companies.

In this context, Binance was forced to abandon its derivatives offering in Hong Kong territory. Many companies then moved their activities to other countries , such as Singapore or the Bahamas. This is particularly the case of FTX, which transferred its headquarters to the Bahamas last year.

Binance’s BNB is under new SEC investigation

By
Naomi Glover
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0
Binance's BNB is under new SEC investigation

Bloomberg reported on Monday that the US Securities and Exchange Commission (SEC) has opened an investigation against Binance. The leading company of cryptocurrency exchange platforms is once again in the sights of American justice, which suspects that the initial circulation of its token, the BNB, violated the law relating to securities.

Binance was already in the crosshairs of the SEC

In September 2021, the Commodity Futures Trading Commission, the federal body in charge of regulating the derivatives markets, had already opened an investigation to determine whether employees of the platform had committed insider trading and manipulated the markets through privileged information.

Separately, Binance has also been the target of money laundering charges that have led to new joint investigations by the Department of Justice and the Internal Revenue Service (IRS).

It does not stop there, last February, the SEC attacked the CEO of Binance, Changpeng Zhao, whom it suspects of sharing confidential information with two American companies, Merit Peak Ltd and Sigma Chain. These market makers carry out transactions on a continuous basis on the Binance US platform and thereby limit price volatility there, according to the Wall Street Journal. The American regulator wants to examine the nature of the ties that unite these two firms to the CEO of Binance following the revelation, in 2019, of corporate documents which would testify to their proximity.

Another blow for Binance

This week, the SEC again attacked the first cryptocurrency exchange. The federal agency, which boosted the capabilities of its crypto unit in early May, is determined to scrutinize the sector. This time she questions the legality of the BNB ICO in 2017 . The initial token offering may indeed have violated securities law. According to the latter, Binance was required to register this asset with the American authorities prior to any public sale. It’s a now classic accusation in the cryptocurrency industry, with several other companies having come under similar investigation .

Binance has not yet reacted to this new lawsuit. On the other hand, in a blog post promoted on Twitter, the platform refuted, on Monday, the accusations of money laundering of which it is the subject. She also claims that, citing a study conducted by Chainalysis, only 0.15% of cryptocurrency transactions could be linked to illegal activities. It also claims to have one of the most sophisticated anti-fraud systems on the market and recalls, in its words, an “ inconvenient truth ”: the vast majority of money laundering takes place via the traditional banking system.

Following the opening of this new SEC investigation, the price of BNB fell 11% in just over 24 hours, slipping below its key support level at $280 . It should be noted, however, that the other major cryptocurrencies have also suffered substantial falls over the same period of time.

US law on cryptocurrencies: the project has leaked

By
Ismael Brooks
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0
US law on cryptocurrencies

Documents stamped with the words ‘EMBARGOED‘ made the rounds on social media on Monday night and stirred the crypto community on Twitter. But what was the nature of the leak? This is said to be over 600 pages of the US Cryptocurrency Exchange Regulation Bill .

As it stands, the Cryptocurrency Bill provides some clarity. It would make it possible to remove the doubt on certain gray zones and to answer questions hitherto dodged. However, there are a few hard points which, if adopted, could become problematic for investors and companies. Nevertheless, there are some positive aspects to remember.

The content of the bill

Let’s start first with the subject of compliance. DAOs (Decentralized Autonomous Organizations), exchanges and stablecoin providers will have to become registered entities. Otherwise, they will be subject to taxation. In addition, some provisions propose to increase compliance costs.

Investors may have to bear the brunt of this indirectly, as exchanges will potentially want to compensate by charging higher fees . New fee compensation rules have also appeared. This means that platforms will have to pay the government from transaction fees, likely amplifying this phenomenon of cost escalation.

From a more positive point of view for the users, these documents clarify many laws relating to security. Information disclosure laws have been made stricter. This will make it almost impossible for anonymous projects to see the light of day in the future.

In addition, a modification of the terms of the bankruptcy is discovered . According to the bill, deposited assets would be returned to users and not liquidated. This extremely clear proposal could prove beneficial to users if adopted.

The bill also includes a section devoted to the conditions of service of trading platforms. Among other things, it stipulates that any update of the source code would require a new agreement from the user. What’s more, the bill would unify some laws on money transmission between states. Finally, information sharing should become even smoother between government agencies.

What should we think of this bill?

Most members of the crypto community on Twitter have pointed out that the crypto landscape is likely to become stricter as a result of this set of regulations. They add, however, that these documents only appear at the draft stage and that they will probably evolve.

Billy Markus of Dogecoin for example tweeted:

“At this point, it should be noted that the documents that have been leaked are likely early drafts of the bill. Once presented, lobbies enter the scene and try to distort the stated lines.”

Concurring, Adam Cochran, Partner at DAO MetaCartel Venture, comments:

“Since this is only the first form of a bill, that’s when the lobbies will start to get involved and try to shape it and iron out some wording that would pose problem, so all lost hope is not lost. There are good intentions in this project. “

However, he added:

“If it passes in this form, it is good in the long term for large entities, but very painful in the short term for 99% of cryptocurrency users.”

While waiting for their authenticity to be confirmed, the leaked documents should be taken with a grain of salt. It should be noted, however, that with the proliferation of scams abounding in the world of cryptocurrencies, clearer regulations could be beneficial to all users.

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