What happened this week around blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a pointed and compact weekly review.
Selected articles of the week:
With the increasing global importance of cryptocurrencies, regulatory authorities worldwide are taking measures to supervise the sector. While the United States, unfortunately, is closing itself to the industry, jurisdictions in the Middle East have recognized the opportunity to provide fair rules to the growing market. By developing their own crypto framework and recently revising their anti-money laundering (AML) and counter-terrorism financing (CTF) measures, the United Arab Emirates (UAE) already offers more legal certainty for crypto companies than most Western countries.
The UAE initiative is seen as an improvement to the existing regulatory framework and aims to strengthen the Arab region as a crypto hub.
Mining is a process in which computers compete to solve complex mathematical problems to validate transactions on a proof-of-work blockchain. This process requires a significant amount of computational power to make a malicious attack on the network economically infeasible and ensure the security of a decentralized financial system. However, critics of the crypto industry see this as a major flaw. They argue that the potential benefits of the technology are not truly evident, as stated in this year’s economic report by the White House. They claim that mining is just wasted energy, which has a negative impact on the environment, quality of life, and power grids throughout the country. Therefore, a newly proposed tax plan should have burdened the mining industry with an additional 30% tax. This would be a death blow for an industry with already slim profit margins. However, due to the debates surrounding the US debt ceiling, these plans by the White House have been put on hold.
The White House’s proposed taxes on crypto mining will be put on hold as part of the agreement on the U.S. debt ceiling.
The crypto industry is teeming with numerous startups – dynamic and innovative young companies bringing new ideas and groundbreaking solutions to the market. These emerging firms often seek external support to accelerate their growth through exchanges with industry experts. Stakeholders such as venture capitalists and venture builders provide young companies with vital resources, expertise, and advice to increase their chances of success. In an interview with CVJ.CH, Cryptix CEO Armin Reiter provides insights into the activities of a Swiss venture builder and explains how blockchain technology can disrupt various industries.
Cryptix CEO Armin Reiter explains a Venture Builder’s role in supporting upcoming startups in the FinTech and blockchain space.
The term “tokenomics” refers to the economic system and rules governing a specific cryptocurrency. This includes various factors such as token supply, distribution, utility, and governance mechanisms that impact the value and functionality within a blockchain ecosystem. Unlike traditional assets, tokenomics often involve unique features such as programmability and community participation, enabling new forms of value creation and decentralized decision-making. For crypto investors, the ability to distinguish good tokenomics from bad ones is essential.
Tokenomics are the rulebook defining a crypto asset monetary policy, aligning the incentives between all relevant actors.
In addition: The changing global regulatory landscape has led to significant market shifts among crypto exchanges in recent months. For example, there has been an increased concentration of liquidity on a handful of trading platforms as market makers increasingly withdraw from unregulated platforms. Some of the most influential players, such as Jump Trading, have decided to completely withdraw due to regulatory pressure from the United States. Additionally, there is increased skepticism towards centralized service providers since the FTX debacle, further exacerbating this situation. An overview of the recent market events.
A summarizing review of what has been happening at the crypto markets of the past week. A look at trending sectors, liquidity, volatility, spreads and more. The weekly report in cooperation with market data provider Kaiko.
