The Newsletter by Tokenize Xchange (Vol.125| February 2021)

Hillary

Published in

Tokenize Xchange

6 min readFeb 24, 2021

What To Be Expected In 2021?

2021 comes with so many opportunities and ideas. This year Tokenize Xchange is going to be extremely busy bringing drafted ideas to life with technology and our passion for crypto.

New updates are on their ways to you:

March: Tokenize Smart Chain based on Ethereum Network.
May: Tokenize Xchange UI upgrade.
The End of 2021: Tokenize Chain based on Polkadot Network.

Look forward to an improved trading experience with Tokenize Xchange.

How To Enable Two-Factor Authentication (2FA)

Two-factor authentication (or “2FA”) is a secondary security measure meant to verify your identity before login. Tokenize Exchange encourages users to enable the 2FA to ensure that your account stays protected.

Follow the guide below to enable 2FA.

Step 1: Select Settings from your dashboard. Click on Two-factor Authentication. You will see this page.

Please be reminded to back up your Secret Key. Resetting your two-factor authentication requires opening a support ticket and may take up to 7 days.

Step 2: Download Google Authenticator on your mobile device.

Step 3: Open the Google Authenticator application.

Tap on Begin.
Tap on Scan a barcode, or Enter a provided key.
Scan the QR code or enter the Secret Key, provided in the page in Step 1.

Step 4: Once it is successful, you will see Tokenize on the Google Authenticator.

The 6 digit code will be automatically generated. Note that the 6 digit code will always change.
Enter the 6 digit code as the Authenticator Code in the page in Step 1. Click on “Send”.

You will see a green notification at the top that an activation email has been sent to your email.

Note: If you encounter issues, please check that you sync the date and time on both devices with time servers over the internet.

Step 5: You will receive an email.

Click on “Enable 2FA“.
You will be directed to this page. Key in the 6 digit code generated on Google Authenticator and click “Send“.

After clicking Send, you have successfully enabled Two-Factor Authentication.

Log in with Two-Factor Authentication enabled.

There will be an additional step in your login process, whereby you will be required to key in the Authentication Code which is generated by Google Authenticator on your mobile device.

Square Buys Another $170M in Bitcoin.

Payments giant Square said Tuesday it had purchased an additional $170 million of bitcoin (BTC), adding to the stash it purchased in October.

According to the payment processor’s press release, the company added 3,318 BTC to its treasury for $170 million. Doing the math, that results in a per bitcoin purchase price of $51,235.70.

Unfortunately for Square, after setting a record high above $58,000 over this past weekend, bitcoin hit a recent low of $44,964.49 before rebounding to about $50,700 at press time.

When Square’s announcement was released, just after 4 p.m. New York time, the price of bitcoin was below $48,000, which means those 3,318 BTC were then worth less than $160 million.

In disclosing it’s lost more than $10 million on its latest investment in BTC, the company may inadvertently draw attention to an argument JPMorgan analysts made recently about why they think many companies won’t follow in the footsteps of Square and others (Tesla, MicroStrategy) who’ve added BTC to their treasuries: the cryptocurrency’s volatility.

The company made the announcement just before the release of its fourth-quarter earnings call that it had added to the 4,709 BTC it purchased in October 2020, which were worth $50 million at the time. Currently, that investment is worth $224 million and the company’s total value of BTC (-2.76%) on Square’s balance sheet is $394 million.

Square has $4.4 billion in total cash and securities, so the $220 million it spent on bitcoin is only 5% of its total liquid assets at the end of the fourth quarter.

You Can Now Rent This Private Island Surf Resort for 1 Bitcoin

According to an announcement shared with CoinDesk on Monday, Beran Island Resort, located in the Marshall Islands, has begun accepting bitcoin as a form of payment in a bid to attract a “younger demographic.”

Surf explorers can book a journey to “the middle of nowhere” with 15 of their friends and rent out the private island for 1 BTC, roughly $50,000 at press time, where they will have access to a top surf break, fishing and scuba diving.

This move is in line with the Sovereign Currency Act 2018, passed as part of the Marshall Islands’ attempt to transition away from a reliance on the U.S. dollar.

The resort claims to be eco-friendly, with its energy supply coming from solar panels and wind turbines. It’s also working with the government to create a shark sanctuary, according to the statement.

Bitcoin Faces Price Turbulence as Market Liquidity Falls, Says JPMorgan

“Market liquidity is currently much lower for bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact,” bitcoin’s falling market liquidity — how much is available for trades — makes it prone to wild price swings, JPMorgan’s Nikolaos Panigirtzoglou wrote in a note on Friday, as reported by Bloomberg.

While bitcoin has rallied by over 300% since mid-October, the number of coins held in exchange addresses has declined by 6.6% to 2.38 million, according to Glassnode data. This sell-side liquidity shortage has been exacerbated by strong institutional demand, allowing the steep price rally to record highs over $58,000 Sunday.

The low liquidity is also evident from bitcoin’s average daily spot and futures market volume of $10 billion, which is just 10% of gold’s $100 billion, according to Panigirtzoglou. Hence, relatively few large buy or sell orders could lead to significant price moves either way.

Bitcoin’s three-month realized volatility, its level of actual price fluctuation over the past 90 days, stood at 92% on Sunday, the highest since June 9, 2020, according to Skew. Meanwhile, the three-month implied volatility, or investors’ expectations of price swings over the next 90 days, was 94%.

At press time, bitcoin is trading near $54,070, representing a 5.7% drop over 24 hours, according to CoinDesk 20 data.