bitcoin

Monday, April 4, 2022

Aussie convenience store giant to accept crypto at 170 outlets

On The Run (OTR) will work with Crypto.com to implement its Pay Merchant product, with a Sydney payment systems provider rolling out new terminals to allow consumers to pay with crypto.

Convenience store and gas station giant On The Run (OTR) will soon accept crypto payments at its 170 outlets across South Australia and Victoria. The move will allow customers to pay for gas, snacks, and even a Subway foot long in over 30 cryptocurrencies.

OTR’s parent company the Peregrine Corporation, one of the largest privately-owned companies in South Australia, will also be accepting crypto at its Subway, Oporto, and Smokemart stores. Once the system is finalized in July, it will become the largest business in the country to accept in-store crypto payments.

The company is working with Singapore-based exchange Crypto.com to implement its Pay Merchant service as its payment settlement layer. Datamesh, a Sydney-based payment systems provider, will roll out point of sale terminals allowing shoppers to pay through the Crypto.com app with their cryptocurrency holdings.

Yasser Shahin, Peregrines’ executive chairman, stated that accepting crypto payments was an opportunity to jump on board with the growth of cryptocurrencies, adding:

“The growth and mainstream acceptance of cryptocurrency adoption in Australia and the rest of the world has been phenomenal, and has offered us a clear opportunity to tap into the momentum of this fast-growing space for the benefit of our customers.”

A survey by Crypto.com released in February revealed that only 4% of globally surveyed merchants were already accepting cryptocurrencies as payment, although nearly 60% of merchants were interested in accepting payments within the next year.

In comparison, around 40% of customers globally are already paying using crypto, and the other 60% said they’re interested in paying with crypto within the next 12 months.

Of the industry sectors most willing to adopt cryptocurrencies, retail and grocery merchants tied with luxury goods providers, with 80% in each category enthusiastic about accepting crypto payments.

With cryptocurrency use in Australia becoming more prevalent, the Australian government is navigating how to regulate and address its usage. In March, Senator Andrew Bragg announced the Digital Services Act (DSA), a legislative proposal aimed at reforming market licensing, custody, and taxes, stating he wants to see Australia become a “crypto hub” and that the country is “open for business”.

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Sunday, April 3, 2022

Aussie crypto 'finfluencers' face tough new legal restrictions

The Australian securities regulator is taking a stand against financial influencers whom they believe to be bamboozling the general public with misinformation about crypto.

New warnings from the Australian Securities and Investments Commission (ASIC) on appropriate conduct for financial influencers could have a dramatic impact on the local crypto industry.

ASIC’s recent Information Sheet outlines the traps influencers and the companies that hire them could fall into while wittingly or unwittingly promoting financial products. The penalties for failing to heed ASIC’s warnings could lead to millions of dollars in fines for corporations and up to five years in prison for individuals.

Although it does not specifically mention crypto influencers, the guidelines certainly apply to them as cryptocurrency investing services are seen as financial products. To those financial influencers or ‘finfluencers’ who are not sure whether their brand is in violation of the law, ASIC writes “Think about your content carefully and whether you are providing unlicensed financial services.”

One point of confusion in the new rules concerns exactly what constitutes promotion as opposed to innocuous informing of financial products. Financial blogger from Strong Money Dave Gow wrote on March 29 that “Writing almost anything could influence someone to invest or use any financial product.”

Gow’s assessment is based on the somewhat nebulous distinction ASIC has made between objective facts about a financial product and the way in which influencers may present them. It states:

“If you present factual information in a way that conveys a recommendation that someone should (or should not) invest in that product or class of products, you could breach the law by providing unlicensed financial product advice.”

Australian Liberal Senator Andrew Bragg believes there is an incongruence between the new ASIC guidelines and how crypto is regulated in his country. He believes that under current laws, the crypto industry should be exempted from these new restrictions. He told Cointelegraph in an email:

“ASIC’s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product. Crypto is currently unregulated and not a financial product… I believe we can do more.”

Senator Bragg is a proponent of clearer crypto regulations, and recently introduced an ambitious new proposal concerning decentralized autonomous organizations (DAO) at Australia Blockchain Week last month.

As someone who may now be considered an unlicensed finfluencer, Gow takes exception to restrictions on what they now may not do, which is make any sort of recommendation. He added that the rule limits influencers to simply “parroting what you can read elsewhere” and harms the investor knowledge base. He stated, "How does that help you wade through the sea of information and nonsense out there?”

Modify old content / minimise investing discussion / not mention any financial products, funds etc.

Some may choose to close up shop, I know one who is, while others will prob continue for enjoyment in a limited capacity.

Sad situation for free speech.
— Dave Gow | Strong Money Australia (@strongmoneyaus) April 2, 2022

As part of Australia’s Corporations Act, individual influencers must beware of how they promote financial products, while corporations must also keep a close watch on their hired influencers to ensure no rules are broken. The commission offers several case studies that provide context that could help identify whether an individual or company is promoting financial services.

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The evolution of blockchain: Transactions, contracts and applications

Blockchain technology is more than just Bitcoin. Let’s examine the evolution of Nakamoto’s brainchild.

The various types of blockchain permissions

Blockchain networks run on permission-based consensus methods, enabling various levels of use depending on a user’s needs and permission level.

Aside from the blockchain generations, there are also different types of blockchain when viewed from a permission-based angle. Some of those permission types are public, permissioned or private blockchains. Each of these types offers a different use case for a company or user’s needs. When asked to list the three types of blockchain, you’ll now know the answer.

Public blockchain

A public blockchain is the most basic form of a blockchain ecosystem. A public blockchain is available to anyone who wishes to utilize the database. Bitcoin and Ethereum are considered public blockchains, for instance.

On top of being open to all, these networks exist without a central authority. Instead, upgrades and other changes are implemented by developers from all over the world, and anyone can utilize a public blockchain’s infrastructure to build DApps.

Permissioned blockchain

A permissioned blockchain, also known as a consortium blockchain, restricts some or all parts of the database to nodes with special permission. For example, suppose a centralized team is working to develop a public blockchain network for the rest of the world. In that case, that team might have exclusive permissions to view network-centric information.

Private blockchain

While blockchain technology is essentially a decentralized distributed ledger, sometimes that ledger isn’t required to be public. A corporation’s employee database, for instance, doesn’t need to be shared but can still benefit from the efficiencies offered by blockchain technology.

In this case, a corporation would employ a private blockchain. This organization can then use its private blockchain just like a traditional database. It might have some information available to the entire workforce, while more private information is only open to C-suite executives.

Hybrid Blockchains

Hybrid blockchains can be considered a future of blockchain development as they employ characteristics from both public and private networks. Corporations might utilize hybrid blockchains with public-facing services.

Take a blockchain-powered video game, for example. If a team is working to develop a massively multiplayer online video game but doesn’t want to make development public, they might harness a hybrid blockchain.

This way, players can still interact with the public side of things by signing up, playing and possibly even enacting governance when proposing and voting on game mechanics. The private side of the hybrid blockchain enables the game’s developers to keep its code and inner workings from the public.

When choosing between a permissioned or private blockchain, it’s worth noting that enterprises can consider hybrid blockchains due to their multifaceted nature.

Blockchain 1.0 vs. blockchain 2.0 vs. blockchain 3.0

Blockchain 3.0 evolves the concepts introduced by blockchain 1.0 and blockchain 2.0 even more, introducing interoperability solutions and new consensus methods.

A third-generation blockchain ecosystem solves many of the issues that plagued blockchain 1.0 and blockchain 2.0 networks, such as scalability and interoperability. Blockchain 3.0 networks typically solve the scalability issue with a new consensus algorithm: proof-of-stake (PoS).

Instead of mining, PoS asks users to stake or lock-in their tokens to become validators. Validators ensure that incoming transactions are valid before committing them to the blockchain network, earning transaction fees for their efforts.

The idea is that users who have a stake in a network would want what’s best for it and would put their best foot forward when it comes to transaction validation. Also, transaction validation is faster than mining, ensuring a network can scale as more validators join.

Then there are blockchain 3.0 interoperability solutions. Despite the vast number of blockchain ecosystems out there, many of them are siloed away from one another. Converting funds from one blockchain ecosystem to another via a cryptocurrency exchange is time-consuming and expensive, locking users out of true financial freedom.

One common blockchain 3.0 interoperability solution is that of bridges. Bridges connect two or more blockchain networks, enabling users to convert assets from one network to another. In doing so, bridges unify all types of blockchain ecosystems, genuinely capitalizing on offering financial freedom.

Applications

Decentralized applications are entirely trustless, ensuring users can harness their abilities without involving an intermediary.

While a barebones version of smart contract technology exists in Bitcoin, Ethereum took it to the next level by offering developers a platform on which to build DApps while utilizing the power of smart contracts.

Now, one can consider Ethereum a second-generation blockchain or blockchain 2.0, thanks to its capabilities, which extend beyond Bitcoin, a first-generation blockchain. After all, Ethereum allows users to create their cryptocurrencies on top of its platform, harnessing the Ethereum blockchain for security and speed purposes.

For example, developers might build an application for lending and borrowing managed entirely through smart contracts. In this case, smart contracts would act as escrow and hold the funds securely before facilitating the lending of the loan and serving as a space for borrowers to pay back the loan.

However, despite the innovations provided by smart contracts and decentralized applications, Ethereum suffers from severe scalability issues, meaning it struggles to validate transactions when its network becomes too busy. This struggle is due to the consensus method harnessed by both Bitcoin and Ethereum: proof-of-work (PoW).

PoW asks miners to validate blocks by harnessing their computer power to solve complex equations. However, there can only be so many miners validating so many transactions. If too many people are trying to transact, miners will be overwhelmed, and the validation process will take much longer. To solve such issues, Ethereum is moving to a proof-of-stake (PoS) consensus method in its network upgrade called Ethereum 2.0.

Now, let’s enter the third-generation blockchain, or blockchain 3.0.

Contracts in blockchain

Blockchain technology has evolved past simple peer-to-peer transactions. Innovations have led to decentralized applications (DApps) being built on top of the blockchain, and solutions for speeds and security have increased. Much of this innovation is due to smart contracts.

Since the introduction of Bitcoin’s first-generation blockchain, or blockchain 1.0, the blockchain ecosystem has come into play. Ethereum (ETH), for example, is what many enthusiasts consider to be the future of blockchain.

This moniker comes from the fact that Ethereum focuses more on blockchain applications and harnessing blockchain smart contracts than simply existing as a decentralized currency.

Ethereum’s founder, Vitalik Buterin, envisioned his platform as a replacement for the online experience, which will decentralize all digital processes. Why stop at revolutionizing peer-to-peer payments when one can revolutionize financial lending and borrowing, gaming and social media, right?

Buterin harnessed smart contracts to help realize his vision. Smart contracts are digital agreements made between two or more parties, not unlike contracts in real life. However, a real-life contract requires a lawyer or similar intermediary to function, complicating the process.

A smart contract is enforced by an immutable set of rules agreed upon before its inception. These rules are hard-coded into Ethereum’s blockchain, ensuring no one can alter them once the contract begins and removing the need for an intermediary. The contract will execute when both parties fulfill their side of the agreement.

Transactions in blockchain

Nakamoto evolved transactions into trustless entities, removing the need for an intermediary.

Nakamoto’s white paper presented their problems with traditional finance, stating that e-commerce had come to rely almost entirely on third-party intermediaries to process digital transactions. These intermediaries must spend time and money on mediating transactions, increasing costs for the transacting parties and limiting the potential for smaller, everyday transactions, among other problems.

This solution entailed immutably timestamping transactions via computational proofs and hashing those transactions into an “ongoing chain of hash-based proof-of-work.”

Such a chain would exist in a decentralized manner — as a timestamp server distributed among willingly participating nodes. If nodes were to leave and come back, they would take on a copy of the longest existing chain and continue from there.

Decentralizing the transaction process allowed for trustless peer-to-peer interactivity, removing the need for third-party involvement and, ideally, providing cheaper and faster transactions to all. However, once the technology was in place, users needed a way to transact on top of it, which is where Bitcoin came into play.

So when asking whether Bitcoin or blockchain came first, we now know the answer is blockchain.

What is the blockchain?

Blockchain technology is a cryptographic chain of peer-to-peer transactions. Blockchain transactions are stored in a trustless manner, thanks to decentralized nodes that validate and commit them.

Bitcoin, the first-ever cryptocurrency, introduced blockchain technology and the concept of a blockchain ecosystem to the world. When examining the history of blockchain, we’ve got to look back to 2009. Revealed in 2009 by the anonymous Satoshi Nakamoto, the Bitcoin white paper detailed a solution to the double-spend problem surrounding digital peer-to-peer payments.

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Celebrity tokens: Signs of rising crypto adoption in Indonesia

Some of Indonesia's best-known celebs have helped fan the flames of interest in digital assets.

Cryptocurrency investments in Indonesia have seen considerable growth between 2020-2022, with 4% of the country’s population having invested in crypto.

In 2021, crypto transaction volumes surpassed $34 billion, according to Indonesia’s Commodity Futures Trading Regulatory Agency.

This growth has formed a new mindset toward crypto investment, especially in the mainstream media. One example of cryptocurrencies’ growing appeal in the mainstream is the participation of Indonesian celebrities and influencers.

Crypto adoption among celebrities

Celebrities and influencers in Indonesia seem to have become much more involved in Indonesia’s crypto investment industry since 2021.

Many have become brand ambassadors for exchanges and crypto projects to help promote them and essentially raise the trading volume.

The participation of individuals such as Joe Taslim, an Indonesian actor that has gone global, and Indonesian models and actresses Jessica Iskandar and Shandy Aulia might not be surprising, considering celebrities’ inescapable presence in advertising and branding.

Some celebrities have even created their own cryptocurrency.

The trend of celebrity tokens has boomed, especially after one of the most prominent musicians in Indonesia, Anang Hermansyah, created his own token.

Three tokens have gone viral in Indonesia as of February 2022: VCG (VCG), Asix (ASIX) and I-Coin (ICN).

Asix is led by Anang Hermansyah, a prominent figure in Indonesia’s music industry.

VCG went viral thanks to a partnership with RANS Entertainment. This company is owned by Raffi Ahmad and Nagita Slavina, a married couple who are prominent movie stars and business figures in Indonesia and were recently nominated as the Sultans of Contents by Forbes Indonesia.

I-Coin was created by Wirda Mansur, a public figure and daughter of a renowned Indonesian Islamic cleric.

The name of celebrities supporting them and their marketing team has made their token viral and gotten a lot of fear of missing out, or FOMO, from Indonesia’s newbie investors.

But, long before these, the trend started with an influencer named Indra Kenz, who created his own token with his team named Botxcoin (BOTX).

Celebrity NFT projects

BOTX, an Ethereum-based project that plans to be a decentralized social trading platform, launched in 2021.

BOTX is the first celebrity token in Indonesia and its goal is to become the first decentralized copy trading platform for crypto in Indonesia.

Following its launch, influencers seemed to pay more attention to the growing blockchain and crypto trend. The trend led to an array of influencers talking about cryptocurrency on their own social media.

When this happened, nonfungible tokens (NFTs) also became very popular in Indonesia, especially when the Indonesian NFT collection dubbed “Ghozali Everyday” became globally known for its uniqueness.

Because of the booming crypto and NFT trends, influencers and celebrities have started creating their own NFT and cryptocurrency projects.

One Indonesian celebrity who created their own NFT Projects and went viral globally was Syahrini, an Indonesian singer and socialite.

Under the pseudonym Princess Syahrini, she created an NFT collection and sold them on Binance’s NFT marketplace. It was reported that her “Syahrini’s Metaverse Tour” NFT collection sold out after just eight hours of being listed.

Another prominent figure in Indonesia’s entertainment industry that created their own NFT project was actress, model and singer Luna Maya.

She launched her collection consisting of just 10 NFTs with Tokau, a Japan-based art company that has NFT creation experience.

Her collection was sold on the BakerySwap NFT Marketplace and caught a lot of attention, including from Changpeng Zhao, CEO of Binance.

The trend continued with more celebrities in Indonesia exploring, promoting and creating their own NFT projects.

One example of recent Indonesian influencers and celebrities promoting NFT projects was actor Brandon Salim, renowned Indonesian chef Arnold Poernomo and influencer known as Jejouw.

They promoted one of the most successful NFT projects in Indonesia that went global, “Karafuru,” which has a current trading volume of 37,200 Ether (ETH).

Government response

With the runaway hype of celebrities creating their own NFT and crypto projects, regulators are stepping in to protect investors.

The Commodity Futures Trading Regulatory Agency, also known as BAPPEBTI, is currently giving warnings to celebrities to get their projects approved in the Indonesia legal crypto list before promoting them.

BAPPEBTI, which is responsible for regulating crypto in Indonesia, warns that there are only 229 cryptocurrencies that are legal to trade and transact in Indonesia.

By that warning, BAPPEBTI wants investors to understand that buying or selling celebrity-created tokens in Indonesia is not yet legal. The warning comes from a Twitter thread, originating when new investors began pouring money into viral celebrity tokens:

“New crypto assets that are going to be traded in Indonesia, should be registered under BAPPEBTI through registered crypto exchanges in Indonesia to be assessed by the rules that are applied in Indonesia. For that reason, crypto assets that have not been registered on BAPPEBTI’s legal crypto assets list cannot be traded in Indonesia.”

As of right now, most of the illegal cryptocurrencies have not been fined or given any sentences because most of them are in talks with BAPPEBTI. BAPPEBTI is open to new crypto to be legal in Indonesia, as long as they want to comply with the requirements and processes to be legal and be supervised under the agency.

Currently, there hasn’t been any talk of banning these tokens from the government but rather an invitation for these tokens to be listed as a legal commodity in Indonesia.

BAPPEBTI has also worked with its committees such as the Indonesia Blockchain Association to help create a better environment for crypto in Indonesia, especially with the rise of celebrity tokens.

Coinvestasi has successfully gotten a comment from the aforementioned committee around the topic of celebrity tokens.

The comment directly came from the chairwoman of Indonesia Blockchain Association. She stated:

“My perspective on the celebrity token trend in Indonesia is neutral as long as they comply with existing regulations, because for the past couple of years, there are lots of Indonesians that created their own cryptocurrencies. But what I think is important for Indonesian developers to understand is that their cryptocurrencies must have values for investors and users and must have something that differentiate them from other existing cryptocurrencies. This is because they have a responsibility to their investors and token holders. Developers need to work together to help change the mindset of cryptocurrencies as a scam in Indonesia.”

This statement clearly shows that the government wants the best for crypto investors and creators in Indonesia. It can be concluded that Indonesia’s government supports the growth of cryptocurrencies as long as it is done in a regulated and safe manner.

Growing crypto adoption in Indonesia

The trend of celebrities and influencers joining up to create and promote crypto projects has made Indonesia’s crypto landscape bigger.

Data showed that the growth has been exponential, reaching more than 100% growth in transaction volumes since 2020, largely supported by retail investors.

Institutions also became interested, as evidenced by their participation in funding and investing in blockchain or crypto-related projects.

Major business conglomerate Sinar Mas supported the launch of a new cryptocurrency named NanoByte (NBT), which has Tokocrypto exchange as its partner.

Nanobyte is a token created by an exchange that also plans to be integrated into the current fiat payment system, integrating with e-money and credit cards in Indonesia. This is to help investors and holders use their crypto wallets and NBT to pay for their everyday needs.

Another example is BRI Ventures, the venture arm of one of Indonesia’s leading government-owned banks, which created an accelerator that acts as an incubator for Indonesian blockchain companies to grow globally.

These projects could trigger a domino effect among Indonesian financial institutions to invest in the blockchain or crypto sector.

But, this also pressures regulators to develop new regulations to support the growth so that Indonesia does not get left behind.

Reporting by Muhammad Naufal.

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Here’s how pro traders use Bitcoin options to profit even during a sideways market

BTC price might be consolidating or even reaching a short-term top, but that doesn’t stop pro traders from using options to generate profits.

Bitcoin (BTC) price swings might be impossible to predict, but there is a strategy frequently used by pro traders that yields high returns with minimal cost.

Typically, retail traders rely on leveraged futures positions which are highly susceptible to forced liquidations. However, trading Bitcoin options provide excellent opportunities for investors aiming to maximize gains while limiting their losses.

Using multiple call (buy) options can create a strategy capable of returns six times higher than the potential loss. Moreover, these can be used in bullish and bearish circumstances, depending on the investors' expectations.

The regulatory uncertainty surrounding cryptocurrencies has long been a significant setback for investors and this is another reasons why neutral market strategies have drawn traders' attention since Bitcoin's rally stagnated near $47,000 on March 30.

How to profit in a sideways market

The long butterfly strategy allows a trader to profit even if Bitcoin's price remains flat. However, it's important to remember that options have a set expiry date. This means the desired price outcome must happen during a specified period.

The Bitcoin options were set for the April 29 expiry, but this strategy can also be used on Ether (ETH) options or a different time frame. At the time of writing, Bitcoin was trading at $47,370 and although the costs will vary, their general efficiency should not be affected.

*Profit / Loss estimate. Source: Deribit Position Builder*

The suggested bullish strategy consists of buying 7.3 BTC call (buy) options with a $46,000 strike to benefit from a price increase. Meanwhile, selling 16 BTC call (buy) options at 50,000 creates a negative exposure above that level.

The trader should buy 4.8 BTC worth of $52,000 call options and 3.9 BTC at $55,000, balancing out the risk above this price.

The gains can be four times higher than the potential loss

As the estimate above shows, any outcome between $46,700 (down 1.5%) and $53,500 (up 12.9%) yields a net gain. The best possible outcome happens at $50,000 and results in a 0.47 BTC net gain. Meanwhile, this strategy's maximum loss is 0.11 BTC if the price on April 29 trades below $46,000 or above $55,000.

The allure of this butterfly strategy is the trader can secure gains that are 6 times larger than the maximum loss. Overall it yields a much better risk-reward versus leveraged futures trading, considering the limited downside.

This options strategy trade provides upside even if Bitcoin's price remains flat and the only upfront fee required is 0.11 BTC, which also reflects the maximum loss.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Top 5 cryptocurrencies to watch this week: BTC, VET, THETA, RUNE, AAVE

BTC is holding a key support level, which is allowing altcoins like VET, THETA, RUNE and AAVE to push higher.

Bitcoin (BTC) is attempting to hold above its closest support level and traders are watching to see if the price can remain strong and close above the 2022 yearly open price at $46,200 for the second week in a row.

April has historically been the best performing month of the year for the S&P 500, according to Sam Stovall, chief investment strategist at CFRA. If history repeats itself and the close correlation between the U.S. equity markets and Bitcoin continues, it could bode well for the crypto markets in the near term.

*Crypto market data daily view. Source:* *Coin360*

Another sentiment booster could be that the 19th million Bitcoin entered circulation on April 1. For the remaining 2 million Bitcoin, the crypto markets will have to wait for a long time because the last Bitcoin is expected to be mined by 2140. This could shift focus on how only a small quantity of Bitcoin is left to be mined and its growing demand could lead to scarcity and boost prices higher.

Could Bitcoin hold above its critical support and if it does, will altcoins rally? Let’s study the charts of the top-5 cryptocurrencies that may extend their recovery in the short term.

BTC/USDT

Bitcoin is witnessing a tough tussle between the bulls and the bears near the important level at $45,400. The bears tried to pull and sustain the price below this level but the bulls held their ground. This suggests that the bulls are attempting to flip the level into support.

The upsloping 20-day exponential moving average ($44,333) and the relative strength index (RSI) in positive territory indicate the path of least resistance is to the upside. The critical level to watch on the upside is the 200-day simple moving average ($48,276).

If bulls thrust the price above this barrier, the BTC/USDT pair is likely to pick up momentum. The rally could face minor resistance at the psychological level at $50,000 but if this level is crossed, the next stop could be $52,000.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance, the bears will again try to pull the pair below $45,400 and the 20-day EMA. If that happens, the pair could drop to the 50-day SMA ($41,615).

*BTC/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price has been correcting since hitting the resistance line of the ascending channel. Recovery attempts by the bulls are facing stiff resistance at the downtrend line. If bulls push and sustain the price above the downtrend line, the pair could rise to the resistance line of the channel.

A break and close above the channel could signal the resumption of the uptrend. Alternatively, if the price turns down from the downtrend line, the bears will attempt to sink the pair to $44,000. If this level cracks, the decline may extend to $42,594.

VET/USDT

VeChain (VET) surged above the overhead resistance at $0.07 on March 27 but the bears stalled the recovery at the 200-day SMA ($0.09). A minor positive is that the bulls have not allowed the price to slide below the breakout level at $0.07.

If the price turns up from the current level, the bulls will make one more attempt to clear the overhead hurdle at the 200-day SMA. If they manage to do that, it will suggest a possible change in trend. The VET/USDT pair could then rally to $0.10 and later to $0.13.

The rising 20-day EMA ($0.06) and the RSI in the positive territory indicate advantage to buyers. This bullish view will invalidate if the price turns down and breaks below the 20-day EMA. Such a move could pull the pair to the 50-day SMA ($0.05).

*VET/USDT 4-hour chart. Source: TradingView*

The 20-EMA has flattened out and the RSI is near the midpoint on the 4-hour chart, indicating a balance between supply and demand. If the price breaks above $0.08, the bulls will attempt to propel the pair above $0.09. If they do that, the pair could extend its up-move.

Conversely, if the price turns down and breaks below the 50-SMA, the pair could drop to the critical level at $0.07. If bulls flip this level into support, the pair will again try to rise above $0.09 but if the support at $0.07 cracks, the bears may be back in the game.

THETA/USDT

Theta Network’s THETA token has been range-bound between $2.50 and $4.40 for the past several weeks. The bulls attempted to push the price above the overhead resistance but failed. This suggests that the bears continue to defend the level aggressively.

If the price does not break below $3.80, it will suggest that traders are not closing their positions in a hurry as they expect the up-move to continue. The upsloping 20-day EMA ($3.54) and the RSI near the overbought zone indicate that the path of least resistance is to the upside.

If buyers drive the price above the overhead zone between $4.40 and the 200-day SMA ($4.77), it will signal the start of a possible uptrend. The THETA/USDT pair could then pick up momentum and rally to $6.

Contrary to this assumption, if the price slides below the 20-day EMA, the next stop could be the 50-day SMA ($3.17). Such a move will suggest that the pair may remain range-bound for a few more days.

*THETA/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bears have repeatedly thwarted attempts by the bulls to thrust the price above the overhead resistance at $4.40. The 20-EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand.

If the price slips below the 50-SMA, the short-term advantage could tilt in favor of the sellers. The price could then drop to $3.50. On the other hand, the bulls will gain the upper hand if the price breaks and sustains above the overhead resistance.

RUNE/USDT

THORChain (RUNE) has been trading inside a large descending triangle pattern for several months. The sharp rally of the past few days pushed the price to the downtrend line of the triangle where the bears are mounting a strong resistance.

If the price turns down from the current level, the RUNE/USDT pair could drop to the 20-day EMA ($9.75). This is an important level to watch out for because if the price rebounds off the 20-day EMA, it will suggest that the sentiment remains positive and traders are buying on dips.

That may enhance the prospects of a break above the downtrend line. If that happens, the bearish triangle setup will invalidate, which could be a bullish sign. The pair may then rally to $17.

This bullish view will be negated in the short term if the price turns down and breaks below the 20-day EMA. That could pull the pair down to the 200-day SMA ($7.88).

*RUNE/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the pair is facing strong resistance near $13. A minor positive is that the bulls have not allowed the price to dip and sustain below $11. Therefore, this becomes an important level to keep an eye on.

If the price breaks below this support, the pair could drop to the next major support at $10. Conversely, if the price rebounds off $11, the buyers will again try to resume the uptrend by driving the pair above the overhead resistance.

AAVE/USDT

Aave (AAVE) broke out of the downtrend line on March 29 which indicated a potential change in trend. The bears tried to stall the recovery at the 200-day EMA ($226) but the bulls did not give up much ground.

The buying resumed on April 1 and the AAVE/USDT pair broke above the 200-day SMA. If the price sustains above the 200-day SMA, it will signal the start of a new up-move.

If bulls drive the price above $262, the rally may extend to the psychological level at $300. The bears may mount a stiff resistance at this level but if bulls overcome this barrier, the up-move could reach $350.

This bullish view will invalidate in the short term if the price turns down and plummets below the 200-day SMA. The bears could then pull the price to the 20-day EMA ($187).

*AAVE/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls are buying the dips to the 20-EMA. If bulls push the price above $261.20, the uptrend could resume. This rally could face resistance in the overhead zone between $283 and $300.

The RSI is showing signs of a negative divergence, indicating that the bullish momentum may be weakening. If the price turns down and breaks below the 20-EMA, it will suggest that the short-term bulls may be booking profits. That could sink the pair to the 50-SMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Saturday, April 2, 2022

DAO regulation in Australia: Issues and solutions, Part 1

Certain laws need to be passed before DAOs can be properly regulated, which the Australian government aims to achieve.

Lawmakers in Australia want to regulate decentralized autonomous organizations (DAOs). In this three-part series, Oleksii Konashevych discusses the risks of stifling the emerging phenomenon of DAOs and possible solutions.

On March 21, 2022, during Blockchain Week Australia, Australian Senator Andrew Bragg made a few interesting statements, one of which was about the intention of lawmakers to introduce regulations for decentralized autonomous organizations.

Per se, it is not new, as the Australian Senate Committee led by Senator Bragg recommended in October 2021 that decentralized autonomous organizations be brought under the fold of the Corporations Act, which provides standards for corporate governance and personalities.

Senator’s plan

So, what did Senator Andrew Bragg say?

“Decentralized Autonomous Organisations can replace Companies. It might be the most significant development since the first joint-stock companies floated on the Amsterdam Stock Exchange in 1602.”

He continued: “If that doesn’t make policymakers listen, perhaps this will. Given that DAOs are recognized as partnerships, not companies, they are not liable to pay company tax. Company tax accounted for 17.1% of total Commonwealth government revenue. Our reliance on company income tax is unsustainable.” Bragg added, “DAOs are an existential threat to the tax base and they must be recognized and regulated as a matter of urgency.”

On his website, you can find an extended version of the statement, where the senator shows some economic figures to support his conclusions.

At this point, I should clarify that the partners of a partnership do pay taxes but separately: Individuals pay income tax and companies in the partnership still pay the company tax, as would any other normal company.

Then the senator clarifies what aspects of the DAOs, exactly, the government plans to regulate, “Recognizing the fact that DAOs are self-regulating and transparent, with an in-built system for governance.”

He continued, “The Treasury will need to address these issues, leaving the field open for DAOs to continue to live up to their name. Any attempt to prescribe a code [would] be self-defeating.”

Issue

And it sounds not bad, doesn’t it?

Indeed, if properly implemented, all three objectives can be achieved: the consumers will be protected from malicious and unscrupulous businessmen, revenues will be duly taxed and at the same time, the emerging industry of DAOs will not be stifled.

And here is a snag. All DAO and fintech regulations we have seen in the world so far went down that bureaucratic path of relying on conventional approaches and methods. The red tape. The difference between them is just about the tightness of the noose.

The problem is that new approaches to regulating this industry are not discussed widely in society and among politicians. They are not on the agenda. But these concepts exist, and I spent five years of my academic research working on them.

The risk is that because these new concepts are not raised, they are not on the agenda of politicians and bureaucrats, so when it comes to regulating, they will refer to the existing methods, to something that they know, and this is not good because they only know the conventional ways of regulating. But DAOs appeared as the response to obsolete approaches, excessive bureaucracy and red tape.

Read about replacing a company registry and the “Code is Law” paradigm in Parts 2 and 3.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Oleksii Konashevych has a Ph.D. in Law, Science, and Technology, and is the CEO of the Australian Institute for Digital Transformation. In his academic research, he presented a concept of a new generation of property registries that are based on a blockchain. He presented an idea of title tokens and supported it with technical protocols for smart laws and digital authorities to enable full-featured legal governance of digitized property rights. He also developed a cross-chain protocol that enables the use of multiple ledgers for a blockchain estate registry, which he presented to the Australian Senate in 2021.

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