Bitcoin rise is very similar to the bull market in 2019, Porsche stops issuing NFT[Top news from 1/21 to 1/27]| coindesk JAPAN | coin desk Japan

Criticism of the collection mounted on Twitter, with creators and collectors commenting on the company’s stance on pushing the Web3 strategy without considering the current NFT market conditions. ──Looking back on this week’s top news in a digest.

Members of the European Parliament have proposed a tax on crypto assets (virtual currencies) to fund the European bloc’s annual budget of around 170 billion euros (about 24.52 trillion yen).

A draft European Parliament Budget Committee report published on January 16 includes a tax on capital gains, trading and mining for crypto investors.

Bitcoin (BTC), bridged from the Bitcoin blockchain to the Avalanche blockchain, has surpassed the holdings of Bitcoin’s scalability solution, Lightning Network.

According to Dune Analytics, the supply of bridge BTC (BTC.b) on Avalanche reached a record high of 5,700 bitcoins (about $118.6 million) on January 17. Meanwhile, the Lightning Network has 4929 bitcoins.

Ethereum blockchain co-founder Vitalik Buterin updated his blog on January 20, proposing a “stealth address system” to better protect the privacy of blockchain users.

Ensuring privacy remains a major challenge for the ecosystem, and “improving this state of affairs is an important issue,” he said.

The Central African Republic has set up a committee of experts from multiple government ministries to draft crypto-related legislation, according to the country’s Faustin-Archangel Touadera. The president made the announcement on Twitter on January 20.

The ministries involved include the Ministry of Mines and Geology, the Ministry of Waters, Forests, Hunting and Fisheries, and the Ministry of Agriculture and Rural Development, according to a press release accompanying the tweet. The release states that crypto assets (virtual currencies) will be operated domestically based on this framework.

Inflation-stricken countries are always looking for alternative ways to protect their assets from devaluation. According to CryptoCompare’s 2022 report, cryptocurrency exchange Binance has capitalized on this trend the most in the last year. The primary reason retail investors in these countries seek ease of access.

Binance grabbed the largest share among cryptocurrency exchanges, up 16.3%.

“Binance’s growing market share is also a result of the increasing adoption of cryptocurrencies, especially in emerging markets,” the report states. In many cases, Binance has become the easiest option for users in emerging markets.

Crypto-asset (virtual currency) funds saw net inflows of $37 million last week, more than half of which went into “short” funds, i.e. those aimed at profiting from falling prices.

Bitcoin (BTC) short funds saw net inflows of $25.5 million, the highest since July last year when $51 million inflows, according to data released by CoinShares on Jan. 23. .

P2E (Play to Earn) game Axie Infinity’s crypto asset Axie Infinity (AXS) is on the rise despite looming unlocks worth millions of dollars .

AXS has surged more than 40% over the past 24 hours to a four-month high of $13.94, according to CoinDesk data.

According to Coinalyze, open interest in perpetual futures on AXS increased 156% in 24 hours to reach $104 million. An increase in open interest as the price rises indicates an influx of money on the bullish side.

According to new guidelines released on January 23 by the Advertising Regulatory Board (ARB), a self-regulatory body by the South African advertising and public relations industry, cryptocurrency ads in the country are a potential buyer. to warn that their funds may be at risk.

ARB is also looking to tighten regulations on social media influencers promoting crypto assets.

European Central Bank (ECB) Managing Director Fabio Panetta said on January 23 that the digital euro will never be programmable. We do not allow restrictions on its use.

“The digital euro is by no means a programmable currency. Central banks issue currencies, not certificates,” he told the European Parliament’s Economic and Monetary Committee.

The recent strength in the cryptocurrency market is likely due to a return to the mean, investment firm Bernstein said in a Jan. 23 report, making it the largest crypto asset by market capitalization. He mentioned that one Bitcoin (BTC) has fallen more than 65% in 2022. Mean-reversion is the theory used in finance that the price of an asset tends to revert to its long-term average value or average level.

DMM Bitcoin, a cryptocurrency exchange, announced on January 23 that it plans to start new IEO sales of “Nippon Idol Token (NIDT)” this spring. Based on the agreement concluded in May 2022 by DMM Bitcoin, Obers Co., Ltd., and coinbook Co., Ltd.

Ethereum (ETH) is once again a deflationary asset as the market rebounds.

According to ultrasound.money data, Ethereum’s net issuance rate, or annualized inflation rate, has fallen to -0.07%. This means that the amount of Ethereum that is burned exceeds the amount of Ethereum that is issued.

Marcus Sotiriou, a market analyst at cryptocurrency broker GlobalBlock, attributes the increase in Ethereum burn volume to a surge in NFT trading volume on the back of the cryptocurrency market rally.

Porsche will stop minting its first NFT collection, citing negative feedback from the community. The company made the announcement on Twitter on January 24.

Of the 7,500 NFTs prepared, only 1,818 NFTs were actually minted at the time of this writing. In secondary marketplaces such as OpenSea, it trades at prices below mint prices. In other words, it is cheaper to buy a resold NFT than to buy the original.

Nike’s NFT platform “.SWOOSH” announced on January 25 that it is looking for users to design their own sneakers.

Members of the .SWOOSH community are invited to participate in a contest dubbed “#YourForce1”, where participating users post their sneaker designs on Instagram. Four people will be selected from the submitted designs and given a prize of $5,000 (about 650,000 yen) and the chance to create their own digital sneaker with a Nike designer.

According to data compiled by JP Morgan Chase, the trading volume of Coinbase, a major US crypto asset (virtual currency) trading company, has continued to decline as of January 2023. is on a recovery trend. After the demise of FTX, Coinbase’s reputation as a reliable exchange seems to be paying off.

It’s worth noting that Coinbase’s average daily trading volume (ADV) is $1.6 billion so far in January, up slightly by 0.3% from the previous quarter. On the other hand, the trading volume of other exchanges decreased. For example, Kraken is down 13% and Gemini is down 46%.

The market capitalization of the crypto asset (virtual currency) exchange Binance stablecoin “Binance USD (BUSD)” continues to decline.

According to CoinGecko, the market cap of Binance USD fell to $15.4 billion on Jan. 25, down $1 billion in a week and $2 billion in a month.

US Democratic Senator Elizabeth Warren (Massachusetts) praises the country’s Securities and Exchange Commission (SEC) and Chairman Gary Gensler’s crackdown on the cryptocurrency industry. and called on lawmakers to give the SEC the resources and authority it needs to continue.

Warren said in an interview on January 25 with the American Economic Liberties Project, a group known for its anti-monopoly stance, that Gensler, who will lead the SEC from 2021, is a former president of Donald Trump. After regulators “allowed the explosion,” he said it had to “put the spirits back in the jar and force the crypto ecosystem to comply with regulations,” but it was off to a good start.

On January 25, SBI VC Trade Co., Ltd. and SBINFT Co., Ltd. announced the launch of the “SBI Web3 Wallet” service. With this service, “SBINFT Market” will be able to trade on-chain NFTs with only Japanese yen.

Bitbank, a crypto asset exchange, has announced that it has started handling The Sandbox (SAND) from January 25.

SAND is a user-driven gaming platform based on Ethereum blockchain technology that can be used for governance voting to determine the policy of purchasing, staking, and game operations on The Sandbox.

On January 25, DMM Bitcoin, a crypto asset exchange, newly started handling polygon (MATIC) in spot trading and leverage trading.

Former UK Finance Minister Philip Hammond, who has been named as the new chairman of crypto custodian Copper, said the UK is on track to establish itself as a cryptocurrency hub. said it was lagging behind its neighbors.

In an interview with the Financial Times, Hammond said Britain needs to accelerate its efforts to establish more effective regulation of digital assets.

Cryptocurrency exchange Binance has introduced a new feature to prevent its API users from self-trading on the platform.

It has been available to Binance API users since January 26th. Users via websites and apps are unaffected.

Floor prices for Porsche’s NFT collection have risen in the secondary market after Twitter’s growing criticism of Porsche’s Web3 strategy.

Currently, the floor price is more than double the mint (issue) price. Immediately after the issue started on January 23, the floor price was below the issue price, but the situation is changing.

Crypto quant trading firm Pythagoras Investment Management LLC weathered 2022 turmoil on a positive note. The fund posted an 8% year-on-year gain despite exposure to the FTX collapse and other factors. That said, the market turmoil has forced some investors to take a wait-and-see approach, cutting assets under management in half to below $40 million.

Pythagoras founder and CEO Mitchell Dong says his company’s market-leading strategy, changing risk mitigation strategies after the collapse of FTX, and the future of crypto still holds hope. He talked about why he thinks.

Bitcoin (BTC) has the potential for a big rally going forward if history is any guide, with a similarity to the recent bull market resurgence in mid-2019 when the price jumped about 250%.

Bitcoin, the number one cryptocurrency by market capitalization, surged nearly 40% this month to $23,000, according to CoinDesk data. The rally follows a sharp decline in 2022 that slashed prices by as much as 68%, followed by a long slump around $18,000 in a bear market before risky assets, including cryptocurrencies. It happened at a time when the US Federal Reserve (Fed) monetary tightening that rocked the US was coming to an end.

Ethereum blockchain Layer 2 scaling solution Polygon’s native cryptocurrency Polygon (MATIC) is up 12% in 24 hours, near $1.11. Strong momentum has continued since the beginning of the year, with the stock up nearly 50% since Dec. 31.

According to Token Terminal data, daily active users (DAU) also surged to about 345,000, making it second only to Binance’s BNB chain, ahead of Ethereum and Solana.

Bitcoin (BTC) has had its strongest start since 2013. The price of Bitcoin, the world’s largest cryptocurrency by market capitalization, has surged 40% this month on the back of a weak US dollar. The rise was largely driven by domestic buyers, observers said on Jan. 27.

Derivatives decentralized exchange (DEX) Gains Network has recorded over $1.5 billion in trading volume in about a month after its deployment on the Arbitrum blockchain.

The Gaines Network also contributed to a rise in trading volume on the Polygon network when it was first launched.

Huobi Japan, a crypto asset exchange, announced on January 27 that it will start handling Palette Token (PLT) deposits and withdrawals on the exchange from January 31.

PLT is a crypto asset used in the NFT platform “Palette”, which specializes in the entertainment area. It is also known for being the first in Japan to raise funds through an IEO.

｜Text and editing: coindesk JAPAN editorial department
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