JPMorgan sees higher BTC price potential, a16z unveils $4.5 billion crypto fund and PayPal hints at more crypto involvement: Hodler’s Digest, May 22-28
Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.
Top Stories This Week
Venture capital player Andreessen Horowitz, or a16z, has unveiled a new $4.5 billion cryptocurrency fund. The a16z fund is the fourth of its kind and more than double the amount of its third crypto investment fund. With $3 billion earmarked for venture investments and $1.5 billion for early-seed projects, the fund will look to invest in companies at various stages in their life cycle. Andreessens new fund provides a strong indicator that venture capital interest in the crypto market remains high despite evidence of a brutal bear market.
A client-focused note from JPMorgan this week detailed the banking giants thoughts on Bitcoin, claiming $38,000 as the assets fair value. The seemingly bullish outlook came on the heels of depressed price action for Bitcoin, which has been rangebound below $30,000. But even in February, when BTC was valued at $43,000, JPMorgan strategists said that $38,000 was fair market value. This weeks client note from JPMorgan also pointed to the possibility of positive price action for the entire crypto space provided venture capital investment doesnt waver.
Per comments from vice president Richard Nash, PayPal has its sights set on giving its platform more blockchain and crypto influence. Just walking slowly in the crypto shield with buy/sell/hold in certain jurisdictions, Nash told Cointelegraph at the World Economic Forum (WEF) in Davos, Switzerland. And then looking to work with others to embrace everything we can, whether itd be the coins that we have today in PayPal digital wallets, private digital currencies or CBDCs in the future.
With time ticking down until GameStops NFT marketplace launch, the company has unveiled the beta version of an Ethereum-based wallet. The self-custody crypto and NFT storage solution is called the GameStop Wallet. The browser-based wallet will go hand-in-hand with the companys future NFT marketplace. GameStop is also developing a mobile app version of the wallet.
Koreas Financial Supervisory Service (FSS) is working to standardize its evaluation of digital asset risks in the wake of the Terra ecosystem collapse. While the FSSs standardization efforts have only just begun, they are expected to lead to a legal framework for evaluating digital assets. Meanwhile, Terraform Labs CEO Do Kwon is moving ahead with an ecosystem recovery plan, having gained majority support from his community. The Terra 2.0 ecosystem went live on Friday with a new blockchain and crypto asset.
Winners and Losers
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are BORA (BORA) at 18.15%, Bitcoin Gold (BTG) at 17.79% and Ethereum Classic (ETC) at 11.09%.
The top three altcoin losers of the week are TerraClassicUSD (USTC) at -46.13%, STEPN (GMT) at -27.38% and Elrond (EGLD) at -25.70%.
For more info on crypto prices, make sure to read Cointelegraphs market analysis.
Most Memorable Quotations
Decentralization truly puts more control and power back into the peoples hands where it belongs.
Sonali Giovino, head of communications for Defiyield
Projects must watch the interests of their community and users because, in the end, thats the most valuable thing you have.
Nicky Chalabi, ecosystem success and enablement professional at Near Foundation
A lot of the policy and regulatory issues that limit the power of moving money have to do with stripping people of their economic freedoms.
Jeremy Allaire, CEO of Circle
In TradiFi people are thinking, I dont want to lose money how can you help me keep my wealth regardless of markets? So, its very risk-management orientated. While in DeFi, the degens are like, Gimme those triple-digit yields, woo!
Alexander Fazel, chief partnership officer for SwissBorg
The rise of the term Web3 is encouraging because it means that people are seeing this underlying technology feed into different applications the ones they didnt necessarily expect.
Gavin Wood, co-founder of Polkadot and Ethereum
Theres absolutely no reason that a deed to a house couldnt be a unique digital asset as long as that asset is created and stored in the correct way.
Alex Altman, chief operating officer of Seal Storage Technology
Prediction of the Week
Bitcoins price has continued to struggle in recent days, often trading below $30,000, according to Cointelegraphs BTC price index. However, the asset could still fall considerably further, according to Rekt Capital.
Over the course of Bitcoins history, the assets price has respected the 200-week moving average (200WMA). #BTC tends to wick -14% to -28% below the 200-MA, Rekt Capital detailed as part of a thread on Twitter. And since the $BTC 200-MA now represents the price point of ~$22000… A -14% downside wick below the 200-MA would result in a ~$19000 Bitcoin, they added. And if #BTC were to repeat the March 2020 downside wicking depth below the 200-MA $BTC would revisit the ~$15500 price point.
FUD of the Week
Did you watch a video of Tesla CEO Elon Musk advertising 30% gains via deposits on a crypto platform? Be warned that the video is a scam. Classified as a deepfake, the video was doctored to look real but is not, as verified by a Twitter comment from Musk himself. The video harnesses real footage of Musk doing a TED Talk earlier in 2022, altered to deceive viewers into a scam. Deepfakes are nothing new, however. This recent effort utilizes Musks fame in tandem with his known crypto involvement.
The last two years have resulted in a 3,894% uptick in crypto-related spam, according to recent data from LunarCrush, a crypto intelligence outfit. One aspect making detection difficult: The undesirable action is not all bot related, with a surprising amount coming from humans. Twitter is a hotbed for spam, based on the LunarCrush data.
A hacker or group of hackers recently took over the Twitter account of Mike Winkelmann, a.k.a. Beeple. The hacker(s) that commandeered the well-known NFT artists account posted phishing scam tweets, angling the scam around Beeples recent collaboration with Louis Vuitton. Although Beeple managed to take back control of his Twitter account, the phishing effort pilfered roughly $438,000 worth of Ether and NFTs from victims.
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