The Price of BTC Slipped Below $50,000_ Experimental “Crypto Country” KONG Land Seeks to Bridge the Metaverse and Real World

2021-08-30, 01:55

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Cryptocurrency Market

This week, the price of crypto markets went down slightly. On the 26th, the price of BTC closed at $46,845, fell by $2,114.2, a drop of 4.32%. The price of ETH closed at $3,058.84, fell by $134.79, a drop of 4.17%. On the 27th, the market continued to weaken again following the trend the day before. As of press time, the price of BTC has dropped by 2.36%, and the price of ETH has dropped by 2.23%. The prices of other mainstream currencies also declined to varying degrees.

From the daily line, the price of BTC has reached a V-shaped bottom, with the bottom price of $46,762.33 on the 19th. The price drop of BTC this time did not break through the bottom point, indicating that the selling forces are not strong. On the 27th, the spot price of BTC went back and forth on the 20-day moving average, while both the long and the short traders have fought anxiously in this price range. The 20-day moving average is a key boundary on which the market will go in the near future. During this week, all technical indicators of Bitcoin showed a stable state at the daily level, and there was no obvious buy or sell sign.

Although the crypto coin market fell slightly on the 26th, the overall market volatility was not stimulated. Since May, the price of ETH has always shown the high synchronicity of changes in the spot price of ETC. On the 26th, the price of ETH had broken the 20-day average but failed to bounce back on the 27th. The price of ETH is very likely to demarcate BTC, but if the price of BTC rebounds, the price of ETH may rebound more strongly than BTC.

Crypto News

Emilie Choi, the president and COO of Coinbase said on Twitter that from September, every USD coin(USDC) will be “backed by a dollar in a bank account” as the reserves to be held in cash and short-term treasuries. Earlier in May, the investment portfolio of Circle for USDC reserves changed by extending the range. But due to the “evolving regulations landscape” and “community sentiment”, Circle has announced that USDC reserves will be held entirely in cash and short duration US Treasuries.

One of the most popular ETH wallet providers MetaMask is open to a token launch and airdrop, as discussed in their first community call. The development team discussed potential plans for an eventual token release, but clarified that while there are no immediate plans, a token could be released in the future. Senior software engineer at MetaMask, Erik Marks also added that the team didn’t want to create a token “that doesn’t have a use case”.

Poly Network, which was hacked last week and lost $610 million in crypto assets, recently announced that it has restored all assets previously returned by hackers for users. According to a time roadmap released by Poly Network, the fourth phase of “recovery of assets” has been realized, while the fifth phase of “recovery of services” is in progress, that is, after completing the necessary security checks, other functions will be gradually restored.

KONG Land, the experimental “crypto country” recently disclosed the qualifications for purchasing citizenship. The Alpha edition citizenship token is CITIZEN, which charges 7.51 ETH at the moment. Every Alpha citizen will receive a physical passport, an NFT and the qualification to join the discord channel. As an experimental “crypto country”, its mission is to connect the Metaverse and the real world by adopting the public product SiLos on a global scale.

News in the Financial Market

Over the past week, the US stock market continues to rise, among which the total market value of the four leading technology giants Amazon, Apple, Alphabet and Facebook has reached $7.05 trillion, even exceeding the overall market value of the Japanese stock market. Meanwhile, the S&P 500 index reached another record high, reaching a maximum of 4,500 points. The Jackson Hole Global Symposium is about to happen, featuring Fed’s Jay Powell and many other central bankers.

Grayscale Bitcoin Trust(GBTC), which is sponsored by Grayscale Investments, was fully unlocked on August 26, with the last unlock(58 bitcoins unlocked) occurring on August 25. This compares to a total of nearly 34,900 bitcoins unlocked from July 13 to 20. Currently, the Ark Fund, managed by fund administrator Cathie Wood, is the largest shareholder of the Grayscale Bitcoin Trust, holding a total of $30.7 million worth of shares, or 1.28% of the total share.

Meitu has released its 2021 interim results announcement, reporting that first-half revenue was $806 million, up 44.6% year-on-year, but a net loss of $129 million in the first half. As for the reason for the loss, it shows in the announcement that the fair value of 940 bitcoins held was greatly impaired by the previous crash in the crypto market, resulting in a loss of $17.3 million. But the purchased Ether helped the company gain $14.7 million.

Big News

The Department of Finance of the Philippines recently publicly stated that income from various Play-To-Earn games such as Axie Infinity is subject to income tax. Tionko, the head of revenue operations at the Department, said that although the Securities and Exchange Commission and the Central Bank have not yet determined whether Axie is a currency or a security, income tax should be paid anyway. Axie Infinity also issued relevant tips on Twitter, saying that Filipino players need to prepare for paying taxes, and issued a guide for players to learn to pay taxes.
The Financial Services Commission (FSC) of South Korea has announced that a Crypto Asset Monitoring Bureau will be established to further strengthen the regulation of crypto assets and service providers to keep a close eye on possible risks from money laundering. The bureau will monitor all possible financial activities in relation to the crypto assets, determine the renewal of licenses for related service providers, and seek approaches to strengthen investor protection programs.

Salvadoran President Nayib Bukele published on Twitter that the government-backed Chivo Wallet will be available for download and use on September 7, and that users will receive $30 in BTC during the setup process. Bukele also reiterated that the use of the Chivo Wallet is optional and that not all citizens must participate in digital commerce. But the wallet offers a more convenient payment service for those interested.

Australian residents lost more than $70 million in various investment scams in the first half of 2021, and losses are expected to be over $100 million by the end of the year, according to data from Scamwatch, a website run by the Australian Competition and Consumer Commission (ACCC). More than half of the $70 million in losses were related to cryptocurrencies, with 2,240 reports.

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Author: Gazer. C & Charles. F (Gate.io Researchers)
* The article only represents the researcher’s views and does not constitute any investment advice.
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