Tuesday Trades: Elon Musk and the XRP Crash

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Good morning. Today, we briefly discuss what Elon Musk said he thinks of Bitcoin and the epic XRP hype that culminated in a crash.  

Welcome to Tuesday Trades, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad. 

Market Price as of February 2, 2021:

Bitcoin$33,412.95+1.00%
Ethereum$1,369.27+3.90%
Tether$0.99-0.30%
Polkadot$16.34+1.50%
XRP$0.370553+1.50%
SLP$0.021+29.90%


Bitcoin closed February 1, 2021, at $33,412.95 per BTC. We’re up 3.2% in the last 7 days and up 15% since the year began. This is 20% below the previous all-time high of $41,940, which was hit on Jan. 8, 2021.

Bitcoin’s market capitalization stands today at $621,609,464,753 which is 60% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,022,312,092,706 (+2%).

On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.

Elon Musk

Billionaire says he supports Bitcoin

On the audio social network Clubhouse, Elon Musk said that while he’s late to the party, he is a supporter of Bitcoin. “Bitcoin is on the verge of getting broad acceptance by traditional finance people,” he told the audience listening on Clubhouse. 

He also said he doesn’t have any strong opinion on other cryptocurrencies but said it will be entertaining if Dogecoin actually becomes the cryptocurrency of the future.

Finally, after realizing that his word has a lot of weight, “I have to be careful what I say, it can affect the market.”

XRP

The crash

The short gist is that there was chatter around Telegram and Reddit groups about a concerted effort to pump the price of XRP. 

The pump was supposed to happen at 6:30 pm (PH time) and the XRP army were shilling it hard on Twitter and elsewhere. You can already guess from the chart below what happened:

FinCEN

FinCEN’s wallet rule aims to close crypto to cash reporting gap, says official

If FinCEN’s proposed rule on crypto wallets are to be approved, it means U.S. exchanges will havet o collect counterparty information on wallets that receive $3,000 worth of crypto and report transactions involving “unhosted wallets” worth $10,000. 

In a panel, FinCEN Deputy Director Michael Mosier argued that if crypto is cash, why does currency transaction reports need to only apply to cash and banks and not to crypto. He was answered by Hai Ramaswamy, Head of Compliance at CLabs, who said that the ruling applied to a world where there are intermediaries. 

“When you move to a world where those financial intermediaries are no longer the gatekeepers, if you will, and individuals are transacting peer-to-peer, it raises concerns about ‘okay what do you do in a disintermediated world when the regulatory regime is focused on having those financial intermediaries play a pretty important and crucial role in managing the risk of bad money in the system,’”he said, as reported by Coindesk.

Binance

Binance X invests in Furucombo

Binance X, a developer-focused initiative of Binance, announces that it invested in Fuirucombo, a decentralized finance (DeFi) aggregator.

There’s basically a lot of things you can do on DeFi. Some are yield farming, some are providing liquidity for rewards, others are taking advantage of flash loans. Some of these strategies are very complicated and require you to open too many pages at once. For example, you will swap ETH for a token on Uniswap and then supply that token on another DeFi protocol. Furucombo is here to optimize a person’s DeFi strategy visualizing the complex DeFi protocols into cubes then bundling all of that in one transaction before executing it. A tutorial can be found here.

Binance X head Teck CHia said they see Furucombo as a game-changer, making it very easy for users to understand DeFi. Hsuan-Ting, CEO of Furucombo said the investment from Binance X demonstrates the immediate need for drag-and-drop tools to visualize complex DeFi protocols into cubes.

#CryptoPH

TechSabado

If you can watch something today, why not Miguel Cuneta and Colin Goltra’s interview on TechSabado, a tech radio show that also streams on Facebook Live. The head of SCI and the Director of Binance Southeast Asia, discuss, among other things, the feasibility of Bitcoin mining in the Philippines and even the WallStreetsBets/GameStop story. 

What else is happening

  • Digital art project sells out $10M in NFTs in four days
  • Axie Infinity escapes Ethereum gas fees as Ronin sidechain goes live
  • Exchange Tokens Hit New All-time Highs as Stock Traders Rush to Crypto
  • Crypto exchange Coinbase has chosen Nasdaq as its direct listing venue

This article is published on BitPinas: Tuesday Trades: Elon Musk and the XRP Crash

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A business ad graduate from the Pamantasan ng Lungsod ng Maynila, Mike is the website manager of Bitpinas.com. He is responsible for almost every content you see on the site, from topic/news selection to editing of articles. Mike believes correct information about blockchain and cryptocurrency can empower people to make accurate decisions about the industry, which, in turn, should deter bad actors from taking advantage of crypto & blockchain. [Telegram @mikemislos]