Author: Faith Yakubu

TON Blockchain Unveils $115M Community Incentive Program

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The Open Network Foundation, the entity behind developing the TON blockchain powering Telegram’s new advertising platform, has unveiled a community incentive program worth $115 million. This initiative will see the allocation of 30 million Toncoin (TON) tokens to reward the community.

As outlined in the announcement on March 20, the incentives will be distributed across four key areas: $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts. Developers stated that the distribution of the 30 million Toncoin will commence on April 1 in monthly seasons, to facilitate a straightforward journey from Telegram user to on-chain participant.

During an initial pilot season, the TON Foundation disbursed 650,000 TON tokens ($2.6 million) through Liquidity Pool boosts and plans to allocate 550,000 TON tokens ($2.2 million) among winning projects in The League Pilot on March 31. Jack Booth, Director of Marketing at TON Foundation, remarked on the positive response from the community during the pilot season, indicating readiness for further engagement.

The Telegram Ad Platform, operating on the TON blockchain, was recently launched in March 2024. This platform enables Telegram channel owners globally to monetize their channels by selling advertising space and sharing revenue in TON tokens.

Originally developed by Telegram, the TON token’s development was halted in May 2020 following a legal dispute with the United States Securities and Exchange Commission. Despite this setback, Telegram remains a significant player in the messaging app landscape, boasting over 900 million users globally and ranking as the world’s fourth-largest messaging app.

In recent developments, Telegram co-founder Pavel Durov revealed plans for the company to pursue profitability, with considerations for an initial public offering (IPO). Durov also hinted at potentially offering priority access to loyal users for the firm’s IPO subscription, taking inspiration from Reddit’s approach. Over the past year, TON has seen a notable surge of close to 75% in value, currently trading at $4.12.

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Bitcoin Surges Beyond $63,500 Amid Market Volatility 

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In the wake of heightened market volatility, the price of Bitcoin has surged back above the $63,500 threshold. Over the past 24 hours, the crypto landscape witnessed a tumultuous period, with the liquidation of more than $150 million in leveraged bitcoin positions.

After dipping to a recent low of $69,900, Bitcoin’s value rebounded, showing a resilient increase of over 1% within the same period.  As of 7:50 a.m. ET, the largest cryptocurrency by market capitalization was trading at $63,559, according to data from The Block’s Price Page.

The volatility in price action led to significant liquidations across both long and short positions on centralized exchanges. CoinGlass data revealed that more than $78 million in bitcoin longs and over $72 million in shorts were liquidated, totaling over $150 million in liquidations.

While Bitcoin saw a rebound, the second-largest cryptocurrency, Ether, experienced a modest 0.3% increase, reaching $3,262 at 7:48 a.m. ET. Conversely, SOL, the native coin of the Solana network, recorded a decline of over 2% during the same period, according to The Block’s Prices Page.

The broader crypto market witnessed a total of over $275 million in liquidated long positions over the past day, contributing to a cumulative figure of $428 million in liquidations across various centralized exchanges.

Liquidations occur when traders’ positions are automatically closed due to insufficient funds to cover losses. This scenario arises when market movements go against the trader’s position, resulting in the exhaustion of their initial margin or collateral.

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Bitcoin’s Next Halving Nears: Block Rewards to Halve Again

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The countdown to Bitcoin’s next halving event, scheduled to take place in just a month, is underway. As estimated by The Block’s halving countdown, the event is set for April 20, where miners’ block rewards will be slashed from 6.25 BTC to 3.125 BTC.

Approximately 4,450 blocks remain until the anticipated date, based on Bitcoin’s average block generation time of 10 minutes. If the current pace holds, April 20 around 8 a.m. EDT marks the potential moment for the halving event, reducing miners’ rewards per block by half.

Bitcoin halvings occur automatically every 210,000 blocks, approximately every four years, in a programmed event. Following each halving, miners receive 50% fewer bitcoins as a reward for their mining efforts, although they still earn transaction fees per block as usual.

With three previous halving events in Bitcoin’s history, the block reward inflation has decreased from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016, and most recently to 6.25 BTC on May 11, 2020. Ultimately, there will only be 21 million bitcoins in existence, with the halving events set to continue until the last bitcoin is projected to be mined around 2140, after which miners will solely earn from transaction fees.

The Market Impact of Bitcoin Halvings

Bitcoin halvings historically correlate with significant price fluctuations in the cryptocurrency market. Although not directly causal, these events often precede notable bull runs in Bitcoin’s price trajectory.

Jean-David Péquignot, Head of Markets at OSL, remarked on the positive impact of Bitcoin halvings on its price, attributing it to heightened optimism among crypto investors due to the event’s reinforcement of Bitcoin’s scarcity.

Furthermore, a recent report from ETC Group suggests that the forthcoming halving may not be fully priced into the current market. Their analysis indicates a potential increase in Bitcoin’s equilibrium price, projecting figures as high as $215,000 by the end of the next Bitcoin epoch in 2028.

Despite recent fluctuations, with Bitcoin sliding from $68,136 to $61,506 and eventually rebounding to $63,994, analysts at Bernstein view the dip as a buying opportunity ahead of the impending halving event.

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Bitdeer Stock Poised for Significant Growth, Analysts Say

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The meteoric rise of Bitcoin (BTCUSD) alongside the continued dominance of artificial intelligence (AI) stocks has been a notable narrative on Wall Street throughout 2024. Despite recent volatility, BTC has recently reached new highs surpassing $70,000, driven by the introduction of spot Bitcoin ETFs and optimism surrounding the upcoming “halving” event.

While the introduction of Bitcoin-based ETFs initially diverted attention from crypto mining stocks, analysts at Bernstein contend that miners remain the most viable equity proxy for BTC. They argue that the recent underperformance of these stocks, particularly pre-halving, presents an uncommon opportunity to acquire them at a discount. Here’s a closer examination of one such lesser-known Bitcoin mining company poised for substantial growth according to Wall Street analysts.

Overview of Bitdeer Technologies Stock

Bitdeer Technologies Group (NASDAQ:BTDR) specializes in Bitcoin mining, with a focus on blockchain and high-performance computing. Headquartered in Singapore, the company also provides advanced cloud services catering to clients with significant demand for AI. Bitdeer operates data centers in the U.S., Norway, and Bhutan, with a current market capitalization of $823 million.

Despite a year-to-date decline of 25.9%, BTDR stock has notably underperformed the broader equities market.

Strong Q4 Performance

Bitdeer recently announced its preliminary results for the fourth quarter of the previous fiscal year, reporting revenues of $114.8 million, marking a 49% year-over-year increase. Notably, self-mining revenues surged by over fourfold to $46.9 million in the quarter. The company achieved an EPS of $0.11, a significant improvement from the $0.07 loss per share in the corresponding period of the prior year.

Additionally, Bitdeer ended the quarter with a cash balance of $144.7 million, up 7.6% sequentially, and mined approximately 1,299 Bitcoins, a 19.7% increase from the previous quarter. Full results are anticipated to be released on March 22.

Strategic Initiatives

Bitdeer has undertaken several strategic initiatives to bolster its position in the market. The appointment of founder Jihan Wu as CEO received a positive market response, as did the recent opening of a data center in Bhutan, aimed at reducing operating costs through lower electricity expenses.

Looking forward, the construction of the Tydal data center in Norway, equipped with immersion cooling technology, is expected to enhance efficiency and cost-effectiveness. Furthermore, Bitdeer’s partnership with Nvidia to address the growing demand for AI supercomputing underscores its commitment to diversification and innovation.

Analyst Outlook

Analysts are bullish on Bitdeer stock, with Benchmark initiating coverage with a “Buy” rating and a $13 price target, suggesting an upside potential of approximately 103%. H.C. Wainwright analyst Mike Colonnese echoed this sentiment, highlighting the stock’s undervaluation based on forward enterprise value/revenue multiple, with a $20 price target representing a potential upside of 171.7%.

Overall, unanimous consensus among five analysts rates BTDR as a “Strong Buy,” with a mean target price of $14.50, indicating a potential upside of around 97% from current levels.

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Crypto Advocates Support Coinbase’s Call for SEC Rulemaking

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Several crypto organizations and lobbying groups have thrown their weight behind Coinbase’s efforts to prompt the Securities and Exchange Commission (SEC) to establish clear regulations for the cryptocurrency industry. In amicus briefs filed on Monday in the Court of Appeals for the Third Circuit, these groups highlighted the SEC’s lack of clarity in regulating crypto and argued that existing securities laws are ill-suited for the digital asset landscape.

Among the proponents are the U.S. Chamber of Commerce and the Crypto Council for Innovation, who emphasized the necessity for the SEC to intervene and draft comprehensive rules tailored to the crypto sector. They voiced concerns that without regulatory clarity, more businesses might opt to relocate due to the uncertain regulatory environment in the United States.

This development stems from a protracted dispute between Coinbase and the SEC regarding the need for specific regulatory frameworks for crypto. Coinbase initially requested formal rulemaking from the SEC in July 2022 and subsequently sued the agency in April 2023 to compel a response to its petition. However, the SEC rejected the call for new rules, with Chair Gary Gensler asserting that existing regulations already encompass crypto activities. In response, Coinbase sought relief from the appeals court to compel the SEC to initiate rulemaking for the crypto industry.

Meanwhile, the SEC has been pursuing enforcement actions against numerous crypto firms, including Coinbase, for allegedly operating as unregistered exchanges.

In their amicus briefs, the Crypto Council for Innovation criticized the SEC’s enforcement approach as arbitrary and lacking stakeholder input. They highlighted the challenges faced by industry participants in deciphering the SEC’s stance based on public statements and judicial rulings.

Similarly, the U.S. Chamber of Commerce expressed concern over the economic repercussions of regulatory ambiguity on investors and the digital asset economy. They criticized the SEC’s reluctance to adapt regulations to accommodate the evolving crypto landscape.

Paradigm, a crypto investment firm, argued in its brief that the SEC’s traditional regulatory framework for securities is incompatible with crypto, given its decentralized nature. They highlighted the inadequacy of issuer-centric disclosures mandated by the SEC for crypto projects, emphasizing the decentralized nature of crypto networks.

Overall, these amicus briefs underscore the pressing need for regulatory clarity in the crypto space and advocate for the SEC to take proactive steps in drafting tailored rules for the industry.

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Crypto Market Turmoil: Altcoins Plunge as Bitcoin Dips Below $63k

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In a tumultuous turn of events, the cryptocurrency market saw a significant correction as Bitcoin (BTC) plummeted below the $67,000 mark, hitting a low of $62,460. At present, bullish sentiment is waning, with bears eyeing the $62,000 support level, potentially pushing Bitcoin below the $60,000 threshold.

Altcoins bore the brunt of the downturn, experiencing declines ranging from 20% to 40% from recent highs. Investors scrambled to secure profits amidst the market turbulence, awaiting a stabilization period.

Data from Coinglass reveals that long positions suffered the most during this pullback. The relentless ascent of Bitcoin over the past few weeks led many traders to believe in a one-way trajectory, only to be met with a significant correction.

Monday witnessed negative flows into spot Bitcoin exchange-traded funds (ETFs) for the first time since March 1, primarily due to a staggering $642.5 million outflow from Grayscale’s GBTC, marking its largest single-day outflow on record.

According to Farside data, GBTC has witnessed total outflows surpassing $12.4 billion, while BlackRocks IBIT recorded inflows reaching $12.96 billion. Combined, these ETFs have seen a net flow of $12 billion, currently holding 836.6k BTC valued at approximately $53.1 billion.

Despite skepticism from some quarters regarding the current bull cycle’s longevity, the looming halving, still over 30 days away, suggests otherwise. Historical trends indicate that peak cycles typically occur six to nine months post-halving.

While ETF inflows have been notable, many investment advisors have yet to advocate for Bitcoin allocations to their clients. Grant Engelbart, Vice President and Investment Strategist for Carson Group, notes that only a few advisors have allocated to Bitcoin ETFs, with an average allocation of 3.5%.

Analysts anticipate the halving to serve as the next significant catalyst for Bitcoin and the broader crypto market, foreseeing sideways price movements until then.

Henry Robinson, Co-founder and Head of Crypto at Decimal Digital Currency emphasizes Bitcoin’s evolving role as a vital institutional asset, driven by substantial weekly net inflows into new Bitcoin ETFs. He predicts further price surges in 2024, attributing them to reduced monthly BTC supply post-halving.

Robinson views the recent correction as an opportunity for leveraged traders to reassess their positions, cautioning against overconfidence amid bullish sentiments. He underscores the growing sophistication and liquidity in the BTC market, thanks to ETFs, which are also educating traditional asset managers about Bitcoin’s potential.

As the market navigates through accumulation phases and price adjustments, Rekt Capital, a market analyst, advises newcomers to brace themselves for the volatility inherent in cryptocurrency bull markets.

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Bitcoin ETFs: Balancing Stability and Volatility

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Introduction

In recent years, Bitcoin has transitioned from being a symbol of extreme price volatility to a relatively stable investment asset. The introduction of Bitcoin exchange-traded funds (ETFs) has played a significant role in this transformation, attracting institutional and retail investors alike. However, despite the newfound stability, Bitcoin remains a complex asset that presents both safety and volatility concerns.

Bitcoin ETFs: Driving Stability

Institutional Interest: Bitcoin ETFs have witnessed a surge in demand, driven by growing institutional interest. The introduction of regulated ETFs has provided investors with a regulated and accessible avenue to invest in Bitcoin, contributing to increased liquidity and price stability.

Record Inflows: ETFs like Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), and others have experienced record inflows, surpassing $1 billion in a single day. This underscores the escalating enthusiasm for cryptocurrency investment vehicles among investors.

Corporate Engagement: Companies like MicroStrategy have significantly increased their exposure to Bitcoin, further bolstering the cryptocurrency’s legitimacy as a long-term investment asset.

Diversification and Long-term Strategy

Asset Allocation: Long-term investors are increasingly allocating funds to Bitcoin for diversification purposes, recognizing its potential as a store of value and hedge against traditional financial assets.

Price Predictions: Research firms estimate Bitcoin’s price to surpass $100,000 by the end of the current year, with projections ranging from $116,000 to $170,000 by 2025. These forecasts reflect growing confidence in Bitcoin’s long-term prospects.

Safety vs. Volatility

Historical Volatility: Despite its recent stability, Bitcoin remains susceptible to sharp price swings, a characteristic that has led some investors to exercise caution.

Vanguard’s Stance: Vanguard CEO Tim Buckley has described Bitcoin as a speculative asset, emphasizing its unsuitability for inclusion in long-term investment portfolios.

Conclusion

While Bitcoin ETFs have contributed to the stabilization of the cryptocurrency market, investors should remain vigilant of its inherent volatility. Balancing the safety and potential returns of Bitcoin requires a thorough understanding of its market dynamics and risk factors. As institutional and retail interest in Bitcoin continues to grow, prudent risk management strategies will be essential for navigating this evolving asset class.

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Unveiling Europe’s Crypto Boom: Opportunities and Innovations

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Europe stands as a burgeoning hub for cryptocurrency adoption and innovation, positioning itself as the second-largest cryptocurrency economy globally. With a thriving market and a conducive regulatory environment, European investors are driving significant advancements in the crypto space. The launch of cash-settled Micro Euro-denominated Bitcoin and Ether futures contracts is poised further to accelerate the institutionalization of the European Crypto market, offering enhanced risk management tools and liquidity.

Europe’s Crypto Landscape

Market Dominance and Growth: Central, Northern, and Western Europe (CNWE) accounts for 17.6% of global transaction volume, solidifying its position as a leading cryptocurrency economy. The region has witnessed substantial growth, propelled by various factors including regulatory clarity and institutional inflows.

Factors Driving Adoption

Market Growth Amidst Regulatory Developments: Crypto clampdowns in other regions have diverted attention to Europe, fostering a conducive environment for market expansion.

Liquidity and Investment Opportunities: Access to diverse investment instruments, including ETFs, ETNs, and derivatives, has attracted institutional interest, with reliable onramps enhancing accessibility.

Regulatory Framework: The approval of the Markets in Crypto-Assets (MiCA) Regulation establishes a unified regulatory approach, instilling confidence and clarity among investors and market participants.

DeFi Yield Opportunities: Decentralized Finance (DeFi) platforms offer attractive yield opportunities, addressing the growing demand for alternative investment avenues amidst low interest rates.

Technological Advancements: European financial institutions prioritize technological innovation, fostering a seamless integration of traditional and crypto financial systems. The convergence of centralized and decentralized blockchain-based applications heralds a new era of innovation and collaboration.

Opportunities in Euro-denominated Crypto Futures

The launch of cash-settled Micro Euro-denominated Bitcoin and Ether futures contracts represents a significant milestone in Europe’s crypto evolution. These contracts, sized at 0.1 bitcoin and 0.1 ether, offer institutional investors precise tools for trading and hedging, fostering market liquidity and efficiency. Furthermore, the Euro-denominated contracts facilitate regionalized risk management and align with the growing demand for localized financial products.

Conclusion

Europe’s embrace of cryptocurrency presents a compelling opportunity for investors and market participants. With a conducive regulatory environment, robust technological infrastructure, and innovative financial instruments, Europe continues to spearhead the global crypto revolution. The launch of Euro-denominated futures contracts underscores the region’s commitment to driving market growth and institutional participation, heralding a new era of innovation and prosperity in the European Crypto market.

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