A dollar tsunami, bullish signs from the market, new Binance initiatives, and THON project — find out the hottest topics of the last week commented by ChangeNOW Chief Marketing Officer Pauline Shangett. Dig in!
Bulls on board
When anything challenging on the crypto market happens, most of the rates, news, and, sadly, people behind them are going nuts. This behavior is counter-productive, but I can understand it. People are afraid of uncertainty and want to protect themselves and their funds. This is normal. I wouldn’t blame people for this, though I believe (no, I know it!) there is a much better way to cope with such circumstances.
This may sound a little arrogant but in the times of any turmoil, ChangeNOW is doing everything to mitigate the anxiety in people’s minds. Sometimes we even feel like we’re doing this:
Except for the fact that the vessel of the economy is not going to sink. It just can’t. It may be harmed, but firstly, the less we believe it will, the less harm it actually gets (most of all, this rule applies to investors). And secondly, we just know it will stay afloat. Because it always did.
And today, while the pandemic is still out there, we already get very positive signs from financial markets. For Dow Jones, last week started off with the most rapid 3-day growth since 1931, while on Wednesday we witnessed the whopping 11.37% in green — which hit another maximum since 1933. (Interestingly, it’s like we collected here the dates of the famous New York skyscrapers construction dates — the ones built amidst the Great Depression).
Following this inspiring rise, Bitcoin traded near $7,000 on Thursday. After this weekend’s decline, BTC continues to grow. Another good news for our market is that despite the recession, blockchain jobs offer continues to grow.
A looot of green!
These last week’s 89-year records came along with the news of a dollar tsunami coming up to flood the American economy. It must have been a drought that hit the investors who were so excited to hear the wave is approaching.
As you may have heard, last week Donald Trump signed the largest-ever US financial stimulus package worth $2 trillion. This has been done in order to support the economy and businesses, to help the people, to fight against the corona outbreak. “This will deliver urgently needed relief to our nation’s families, workers and businesses,” the President said.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said the Federal Reserve has an “infinite amount of cash”. Just as this is something to be proud of! As , founder of Quantum Economics Mati Greenspan said, “this is basically the reason Bitcoin was created — to counter the notion that money creation can be inexhaustible”. “I think once the dust settles of liquidations, margin calls, and outright panic, Bitcoin will start to show its strength against unlimited fiat printing,” Alan Silbert, managing director at INX, told Decrypt.
As you have already figured, I believe this rain of money will bring more bad than good. Printing so many dollars overloads the economy with the money supply so that it swells up not really helping the people. This measure will help out large businesses who are rich enough, just lacking the liquidity at the moment. And when the economy soaks up with the exceeding amounts of money supply, USD value may decline which is apparently not the best scenario for any country of the world.
However, the crypto industry may profit (just as from any questionable news from the market). Binance CEO CZ made us happy again with his optimistic view regarding the Bitcoin price in 2020. He believes trillions of newly issued dollars is a good sign for BTC as only a small part of them put into Bitcoin can lift its price up to $100K.
Irrespective of the credibility of such a forecast, I want to note that CZ is doing a great thing: while raising the confidence of investors, he is raising the actual value of BTC as the money starts to flow in. We need more $100K Bitcoin enthusiasts, don’t we?
Binance in action
As for Binance in general, it seems the optimism and energy of the CEO have been directly transferred to the team. The company was extremely active this week: a charity initiative ‘Crypto against COVID’ was launched in order to collect $5 million of donations in cryptocurrency to help fight the coronavirus outbreak. Medical supplies will be obtained and sent to the countries hit most by the pandemic.
Our team could not stay aside — the decision to support the initiative has been taken in seconds. Here’s where you can donate right now:
Also, last week Binance unveiled a debit card to pay with Bitcoin. The exchange says Binance Card will allow users to load crypto and purchase goods with 40+ million Visa merchants. Great step towards the crypto adoption worldwide!
Telegram Hardly Open Network
However, another nice crypto adoption leap forward was delayed. Last week the US Court granted a SEC injunction to issue GRAMs, cryptocurrency coins of the Telegram Open Network (TON) ecosystem. While Telegram asked the court to appeal the halt on GRAM distribution, at least 10 large investors are reportedly ready to ask for ¾ of their funds back.
Even if this all has not been planned, doesn’t it look like a nice publicity stunt? If, of course, it won’t go too far. I don’t think this ban is that bad in the long term though — SEC can change their mind anytime, while Telegram can calm down and reassure their investors.
However — and the TON team must know that — you shouldn’t mess with the SEC. Deploying their work in the USA was a very ambitious idea, and it will be a great success if, in the end, it succeeds. Otherwise, TON might make a sad example to the crypto community — like the DigixDAO (DGD) team who initiated their dissolution last week.
Thanks for reading!
This was the second Another Week In Crypto with Pauline Shangett. I hope you enjoyed reading it, and see you in a week! Take care and don’t sink in the piles of newly issued dollars (seems like not the worst idea though, huh?)