ALPEX Global Weekly Newsletter — November Week 3
Latest news and updates from ALPEX Global, a leader in digital asset trading!
As a leading fintech company, ALPEX Global aims to educate people on how this disruptive technology will benefit the entire world. ALPEX Global introduces a variety of subsidiaries including ALPEX Derivatives Exchange, ALPEX Academy, and its own APX Token. With a keen eye on the market, ALPEX Global aims to create a safe, reliable, and flexible trading platform building its core on innovation and sustainability. We utilize our years of broad experience and sharp insights to provide our investors with secure operating systems, complete transaction tools, and various financial resources. Our technology helps investors better understand risk and make more powerful trading decisions.
We begin by wishing everyone a Happy Thanksgiving. Is it time for Christmas yet? This week’s recap of interesting news includes the announcement that Staples Center will be called Crypto.com Arena. In the meantime, OpenSea raises $100 million at a $1.5 billion valuation for its NFT marketplace. What does a London Assembly member have to say about crypto ads, all this, and more in this week’s newsletter?
According to reports, Staples Center will become Crypto.com Arena in a $700 million naming rights deal. Crypto.com Arena will open on Christmas Day. Arena owner AEG announced Tuesday that the Los Angeles Lakers and Clippers, NHL’s Kings, and WNBA’s Sparks would change their names after 22 years of existence. Crypto.com is reportedly planning to rename the building for $700 million over 20 years. There is no public announcement of the financial terms of what is believed to be the richest naming rights deal in sports history.
Since the arena opened in October 1999, the 20,000-seat venue has been known as the Staples Center. The American-based office-supply retailer owns the naming rights for 20 years. In the NBA’s annual Christmas showcase, the Lakers will face the Brooklyn Nets under a new name.
Singapore-based Crypto.com provides a cryptocurrency exchange platform. Crypto.com has been investing heavily in the global sports landscape since its founding in 2016. The platform recently partnered with Formula One, the UFC, Italy’s Serie A, Paris Saint-Germain, and the NHL’s Montreal Canadiens, as well as purchasing the Philadelphia 76ers’ uniform sponsorship patch.
In other news, nearly $600 million worth of long (buy) Bitcoin futures contracts were liquidated last week. The number might sound impressive, but it represents less than 2% of the total BTC futures market. The lack of a significant liquidation event following the 19% drop to $56,000 is the first indication that the price move marked a local bottom. As a result of excessive buyers’ leverage, a sign of an unhealthy market, the open interest would have shown an abrupt change, similar to the one seen on Sept. 7.
Bitcoin has lost almost 20% over the past two weeks, demonstrating the extreme volatility of the crypto market. According to the daily price chart for the flagship Crypto, upside momentum continues to slow, indicating consumers continue to take profits.
In the wake of a 40% price surge in October, some analysts predict a sharp decline. The crackdown on crypto by China and new tax reporting provisions in the U.S. that are viewed negatively by crypto investors have soured sentiments, as well.
As interest rates rose and liquidity dried up, crypto lost its wind during the 2016/2017 Bitcoin winter. Prices of cryptocurrencies commonly fluctuate by 20% or more. In early April, the cryptocurrency hit a record high of almost $65,000. By late June, it had fallen more than 50%. From early September’s peak of nearly $53,000, the price dropped by about 25% within a couple of weeks.
The market for digital assets is sometimes unfazed by pullbacks as large swings are to be expected. Despite such arguments being controversial, some people regard Bitcoin as a modern-day inflation hedge.
OpenSea was making headlines last week. To scale its open nonfungible tokens (NFTs) marketplace, OpenSea raised $100 million from A16z for a $1.5 billion valuation. OpenSea, which is based in New York, said it has become the largest digital market for crypto-collectibles and NFTs. The company sells NFTs, which are digital items that can be authenticated with blockchain (the digital ledger behind cryptocurrencies).
Investors Michael Ovitz (co-founder of CAA) and actor/investor Ashton Kutcher participated in the second institutional funding round led by Andreessen Horowitz, also known as A16z. OpenSea has a $1 billion valuation, which makes it a unicorn company. In all, 900 unicorns are worth a total of $3 trillion. With this capital, OpenSea will continue the scalability of its NFT platform, with an immediate focus on attracting engineering talent, expanding internationally to new markets and audiences, and making it easier for users to access, buy, and sell digital assets.
As part of a recent interview, CEO Devin Finzer said that we’re witnessing one of the biggest fundamental changes in the internet economy in decades, and he feels privileged to have been leading it as what he considers the best user experience and entry point for NFTs. Previously, OpenSea was only available to Ethereum users, a popular cryptocurrency platform criticized for using a lot of computing power and wasting energy. Now it is adding transactions to the Polygon platform, which minimizes transaction fees related to computing.
For creators, buyers, and sellers on OpenSea, the company announced the removal of Ethereum gas fees (which are used to mint NFTs on the blockchain). Those are the steps OpenSea needs to take to bring blockchain into the mainstream and make it less esoteric. A future strategy for NFT includes lowering transaction costs across platforms, enabling people to pay by whatever method they choose, and educating the market about NFTs. With OpenSea, users can use any crypto wallet they want.
Who remembers Bryon Adams Classic? Can’t stop this thing we started. The lyrics reminded me of the following news. A London Assembly member wants crypto ads to be banned from trains and buses. The question is, can they stop the crypto-adaption? Former Green Party leader Ian Berry plans on cracking down on crypto advertisements on public transportation in London, where he is a member of the London Assembly.
During a Twitter post, Berry announced she would be recommending the mayor of London, Sadiq Khan, ban all crypto advertising on the city’s transport networks, including many rail and bus services. This assembly member’s call comes after token project Floki Inu announced plans to post posters on buses and underground trains to “attack the London public transportation system.”
There are several crypto projects and exchanges in the UK’s capital. HEX has been advertised in newspapers, on public transportation, and even during sporting events in the city in the past. A year ago, Binance blanketed London with advertisements before launching its British branch.
The vast majority of these campaigns have gone ahead without incident, but Berry appears to be worried about possible “pump and dump” schemes, where a project may cause a large number of Londoners to buy tokens, but only a few investors profit when the token price rises. The UK ad authority blocked a campaign by crypto exchange Luno in May by saying its “it’s time to buy” slogan gave the impression that Bitcoin (BTC) investing was straightforward and accessible.
In the end, Let us not forget this interesting incident from last week as we recap last week. Following the announcement of Proof-of-Stake, Zcash’s price jumps 29%. In its official roadmap for the next three years, Electric Coin Company, the company behind privacy coin Zcash, outlined its plans. Within hours, the price of Zcash jumped from $147 to $189, a 28.6% increase.
In a blog post, the privacy-focused organization said it would release an official ECC wallet in 2022, before switching Zcash to a more sustainable proof-of-stake consensus mechanism within the next three years.
Electric Coin Company plans to use Zcash as the foundation for Web 3.0, which connects data in a fully decentralized manner, giving users their own segment of the internet. People will have total control over their information in society’s collective vision of the decentralized web to come; the ECC sees privacy as an integral part of this new web. Also, ECC announced that the wallet code will be open-source and that a software development kit will be available in the future.
A proof-of-stake consensus mechanism will also be implemented that will shift the blockchain away from an energy-intensive proof-of-work mechanism, which validates transactions based on whose mining power is the largest, to one based on who staked the most Zcash. Consequently, Zcash’s carbon footprint will be reduced by moving to proof-of-stake. Also, ECC hopes a downward price pressure will be reduced on Zcash. Presently, most miners immediately liquidate their Zcash earnings to pay the high energy costs associated with proof-of-work mining. Proof-of-stake will eliminate this need.
ECC’s roadmap concludes with the section on interoperability. As the company transitions to a proof-of-stake model, it will open up new opportunities for cross-chain interoperability, such as the use of Cosmos, the interoperability network. As more utility is added to Zcash in the coming years, ECC hopes it will outgrow its reputation as a privacy coin.
Please stay tuned to our weekly newsletter to stay up-to-date. We look forward to sharing more exciting news with you next week.
In market news: The Chinese government continued to crack down on the mining industry, and deputy provincial official Xiao Yi, was arrested for participating in “mining”. The China Development and Reform Commission met in the afternoon of November 10th to urge local governments to resolutely implement the necessary arrangements for rectifying virtual. In Jiangxi, Xiao Yi, the former secretary of the Fuzhou Municipal Party Committee, had been dismissed for encouraging mining.
In an interesting move, the Ethereum Foundation moves 20,000 ETH to Kraken, increasing the risk of a sell-off. Kraken has received $9.5 billion worth of Ethereum tokens (20,000) from the Ethereum Foundation. Developers will receive compensation from the sale of these tokens. A sale of ETH tokens by the Ethereum Foundation has historically triggered a sell-off. In 2018, traders believe Vitalik Buterin timed the sale ahead of a drop in the price of ETH, as seen in 2018. Recent transfers (November 11) caused a whale to move on Bitfinex. On Bitfinex, a mysterious whale recalled a long position in Ethereum worth $2 billion. According to the exchange, the retraction of a position did not significantly impact ETH price. As a result of these two events, analysts expect Ethereum’s price to drop by 20–30%.
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