Institutional adoption of Bitcoin continues globally: Japanese financial giant Nomura has launched a Bitcoin Adoption Fund for institutional investors. Nomura is Japan’s largest investment bank with over US$500 billion worth of assets. The Bitcoin Adoption Fund includes long-only exposure to Bitcoin and comes amid intense discussion by regulators around Bitcoin-based products, with the next decision on US spot Bitcoin ETFs pending October 15. The US, Canada, and Europe have also approved several Bitcoin-focused funds over the past couple of years.
Market Spotlight
Note: Market prices captured in USD at the time of sending. Explore more on Crypto.com/Price.
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News Snaps
New Ethereum Test Network
Ethereum developers launched a new test network, ‘Holesky’, that will improve the blockchain’s testing capability. The testnet should have 1.4 million validators, double the 700,000 on its mainnet, to help address scalability problems.
South Koreans Declare Over US$98 Billion in Crypto Assets
South Korea’s tax agency announced that taxpayers have declared overseas cryptocurrency assets worth US$98.5 billion following the introduction of mandatory reporting requirements — a steep rise from the previous year’s figures.
PayPal Launches Crypto Off-Ramp
PayPal has added to its crypto product suite with the launch of a new off-ramp service to convert crypto tokens to US dollars directly from wallets into PayPal accounts. PayPal has also made its stablecoin, PYUSD, available on Venmo — with Venmo users now able to send PYUSD to friends and family with compatible external wallets, such as Crypto.com.
SWIFT CBDC Project
SWIFT announced that three other central banks, including the Hong Kong Monetary Authority and the Central Bank of Kazakhstan, have joined the beta phase of its central bank digital currency (CBDC) interoperability project. It has also entered a new phase of sandbox testing.
Meta’s Metaworld Game
Meta CEO Mark Zuckerberg announced in a Sept. 15 blog post that Meta has started rolling out its first Metaverse game to mobile and web in an early-access state. The only experience available now is Super Rumble, a free-for-all shooter.
What’s Ahead
Boerse Stuttgart to Offer Staking
Boerse Stuttgart Digital, the crypto-focused arm of Germany’s Stuttgart Stock Exchange, plans to introduce a fully insured cryptocurrency staking service next year.
Chart of the Week
TON x Telegram
Telegram has endorsed the TON network as its blockchain of choice for its Web3 infrastructure and will integrate it into the app’s user interface. The TON network uses a Proof of Stake (PoS) consensus model and supports sharding. Following the announcement, TON Token (TON), the blockchain’s native token, has surged in price and TVL:
Research & Insights
Monthly Feature Article | Alpha Navigator
Each month, the Alpha Navigator analyses trading data of the previous month for a comprehensive market analysis.
Key Takeaways:
- Major asset classes mostly dipped in August, with BTC and ETH the relative underperformers.
- BTC’s 1-month correlations with other assets flipped into positive territory, in contrast to mostly negative correlations back in July.
- BTC options implied volatilities (vols) crept up during August but are still at subdued levels.
- For the BTC vs. ETH trading pair, the price ratio (BTC price divided by ETH price) continued to be flat in August, staying around the 1-standard deviation (SD) ceiling. Ethereum launched a new testnet called ‘Holesky’ on September 15, and Grayscale’s recent win against the SEC could have implications for spot Bitcoin ETFs.
Read the full Alpha Navigator report: Alpha Navigator: Quest for Alpha [August 2023]
NFT Spotlight
Introducing LOFI Pods Mystery Box, a utility NFT designed for LOFI’s innovative app, LOFI EQ, dropping on Wednesday, Sept. 27. This is a voucher drop to receive the actual utility items. (Primary holders will receive the guideline to redeem their NFTs.)
LOFI Pods Mystery Box NFT contains LOFI Pods NFT with various rarities like Basic, Rare, Epic, and Legend, and each of the five tiers varies by its earning rate, batteries, and aesthetics.
LOFI, powered by viewers, was created as a viewer-governed platform that makes watching live streams fun, engaging, and rewarding. It is where you can enjoy your favorite live streams and potentially earn stable rewards on a daily basis. By unlocking the LOFI Pods NFT, you can maximize your earning efficiency and amplify the value of your contributions.
What’s in the Mystery Box? And what’s buzzing around?
Product Picks
Steadily Build Your Portfolio Across 75-Plus Tokens With Recurring Buy
PYUSD has been added to the Recurring Buy feature in the Crypto.com App. Users can now apply the Dollar Cost Averaging (DCA) strategy for over 75 tokens with Recurring Buy. Find out more here.
Trade PYUSD Spot Pairs with 0% Fees and Stand to Win US$1,000
With the listing of BTC and ETH pairs for PYUSD, all users can now trade PYUSD pairs on the Crypto.com Exchange with 0% maker and taker fees. What’s more, users who trade at least US$100 of any PYUSD pair are eligible to win up to US$1,000 in this week’s Trading Competition.
Earn Plus Offers Increased Reward Rates
Earn Plus now offers an increased reward rate of 5.25% p.a. for PYUSD and USDC allocations. You can allocate an additional US$1 million per token to Earn Plus on top of the existing Crypto Earn allocation limits, enabling you to earn more. For more details, visit the blog here.
Crypto Level Up
What Is PYUSD?
PYUSD is a US dollar-pegged stablecoin from global payment services provider PayPal. It was launched on August 7, 2023, and is currently the only stablecoin subject to regulatory oversight by the New York Department of Financial Services (NYDFS). Read on for more details about PYUSD.
What Network Is PYUSD Native To?
PYUSD is issued on the Ethereum blockchain as an ERC-20 token. Also, within the PayPal network, it is the only stablecoin that’s supported.
What Are PYUSD’s Tokenomics?
PYUSD currently has a total supply of approximately 43.3 million tokens. Additionally, as of this month, Paxos (the firm issuing PYUSD) will publish a monthly PYUSD Reserve Report while facilitating third-party audits of the stablecoin’s reserves.
What Can PYUSD Be Used For?
At this point, eligible US PayPal users can make purchases with PYUSD, convert PayPal-supported cryptocurrencies to and from PYUSD, and more. PayPal plans to seamlessly integrate PYUSD into its network and, eventually, Venmo.
Learn More About PYUSD and Where You Can Purchase It.
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Decoder
What Is a Death Cross?
A death cross is a chart pattern that reflects an asset’s price weakness. The cross is formed when its short-term moving average is positioned above its long-term moving average price and the lines therefore cross.
A moving average is the average price of an asset over a set period of time. Traders commonly use the 50-period moving average against the 200-period moving average as an indicator of the short- and long-term moving average, respectively.
The death cross indicates that an asset’s price action has deteriorated over a certain period and market sentiment could be negative. A trader may choose to sell more during such an event.
Security Tips
Vitalik Buterin Falls Victim to SIM Swap
In mid-September 2023, the X (formerly known as Twitter) account of Ethereum co-founder Vitalik Buterin was hacked via a SIM swap attack. Hackers gained control of his mobile phone number by social engineering telephone company T-Mobile. They then stole US$691,000 worth of cryptocurrency from his followers via a fake NFT giveaway.
Here’s How to Shield Yourself From SIM Swap Attacks
1) Protect Personal Information: Avoid sharing it on social media.
2) Enable PIN/Passcode for Mobile Account: Most carriers allow you to set a PIN or passcode for your mobile account.
3) Use Non-SMS Multi-Factor Authentication: Use app-based authentication like Google Authenticator or Authy.
4) Keep Your Phone Operating System Updated: Security patches can protect against vulnerabilities.
5) Report Suspicious Activity Promptly: If you feel that you may be a victim, contact your phone carrier immediately.
That’s it for this week’s Snapshot. Want more? Head over to our Insta feed for bite-size crypto lessons.
