- The Altcoins Month: Sandbox, Celo, Solana, Cosmos, Arweave, Harmony.
- The Biden administration and new crypto reporting.
- Partnerships: IOTA + Gaia-X; Celo, Aave, Curve, Sushi for DeFi.
- Robinhood (NASDAQ:HOOD) suffers, PayPal (NASDAQ:PYPL) explores stock trading.
- NFT News: OpenSea hit $3B, Spider-Man, Vincent Van Dough
The Altcoins Month: Sandbox, Celo, Solana, Cosmos, Arweave, Harmony
August of 2021 could easily be dubbed “altcoin month.” Indeed, more than 80% of Altcoins overperformed Bitcoin over the last 30 days. Of note is that Bitcoin’s main rival, Ethereum, is among them. While Bitcoin’s price increased by 15%, Ethereum gained by approximately twice as much.
The main performers of August have been such cryptos as Cardano, Fantom, Avalanche, Terra, Arweave, and some smaller ones.
Here are best gainers regarding the last 24 hours:
- The Sandbox (SAND) reached a new all-time-high of $1.1.
- Celo (CELO) gained more than 60%, and 115% over the last 7 days.
- Solana (SOL) reached a new all-time-high of $119.85, gaining by about 20% in the last 24 hours.
- Cosmos (ATOM) gained almost 30% in the last 24h.
- Arweave (AR) surged more than 30% in the last 24h, and almost 90% over 7 days.
- Harmony (ONE) rose by 35% in the last 24h.
Flipsider:
- On the other hand, Bitcoin’s market cap still represents more than 40% of the total crypto market cap. Considering this aspect, it’s logical that BTC is less movable.
The Biden Administration and New Crypto Reporting
The Biden administration wants Democrats to speed up and include additional tax compliance rules for cryptocurrency transactions, after a provision in the Senate-passed infrastructure bill sparked a major industry lobbying offensive aiming to limit the reach of the new mandates.
According to an article published in Roll Call, an anonymous administration official has stated that the Biden administration wants to incorporate new crypto reporting requirements in an upcoming $3.5 trillion budget reconciliation bill. The language would require U.S. cryptocurrency firms, namely exchanges, to report data about non-U.S. users; this information could be shared with other countries to ensure that crypto traders pay taxes. None of this is in the spending package currently constituted.
Finally, this framework lays the groundwork for Democrats to write formal legislation that can pass without a Republican vote. Democrats have called for higher taxes on the wealthy and corporations, and stronger IRS enforcement to fund their agenda.
Flipsider:
- To crack down, the U.S. needs information from other countries. In order to get that information, it needs to come to the table with its own tradable information. It is fair to say that this would be a tricky task, thus the reporting requirements should be revised once again.
Partnerships: IOTA + Gaia-X; Celo, Aave, Curve, Sushi for DeFi
- The IOTA Foundation became a member of the Gaia-X community. Gaia-X is a European initiative that aims to create the next generation of data and services in Europe. The community unites over 500 leading companies, research institutions, and the European public sector.
- Leading DeFi protocols including Celo, Aave, PoolTogether and Sushi united to bring about the initiative “DeFi for the People.” The collaboration aims to bring DeFi to 6 billion smartphone users around the world. The program ensures $100 million in funding for educational initiatives, grants, and incentives.
Flipsider:
- Speed and scalability are big challenges for DeFi since the majority of protocols are still built on Ethereum. Cyber attacks against liquidity pools are also an issue.
Robinhood suffers, PayPal Explores Stock Trading
SEC Chairperson Gary Gensler has said that the SEC may entirely eliminate the Payment For Order Flow (PFOF) practice as it has “an inherent conflict of interest.”
PFOF is what small payment brokers attain for directing trade orders to certain market makers. It is also one of the top revenue streams of popular broker Robinhood, a leading trading app. Robinhood’s stock fell by 9% right after Gensler’s statement.
At the same time, PayPal is showing interest in stock trading. Although officially unconfirmed, has it that PayPal is researching the plausibility of enabling a stock trading platform for US users.
Mainstream trading apps became a highly profitable business in 2021. Robinhood played an important role in the GameStop (NYSE:GME) stock saga that took the investing world by storm in January.
Flipsider:
- Robinhood will have to adapt to this new and harsh reality, but while retail traders are on the hunt for meme stock, companies won’t stop offering their stock trading services. The democratization of finances is happening, and tighter competition among brokers is always good for us, the end-users.
NFT News: OpenSea Hit $3B, Spider-Man, Vincent Van Dough
- OpenSea trading volume surpassed the $3B threshold.
- Today, Marvel celebrates its birthday with the Amazing Spider-Man #1 NFT collection.
- Vincent Van Dough plans to raise $100 million in a new NFT fund with Three Arrows Capital.
Flipsider:
- NFTs are literally selling like hotcakes! Anyway, we wish Marvel a happy birthday and hope they have a tasty birthday cake. Maybe Vincent Van Dough has one? Sorry (not sorry) for the pastry pun.
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