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Cardano Ambassador Addresses FUD Surrounding The Project

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Cardano has been in the middle of some major FUDs these past weeks and this has not been good for the value of the digital asset. Numerous negative news circulated around the asset, the most prominent being the delisting of ADA for U.S. users from the eToro crypto exchange. Since then, the altcoin has suffered massive dips that have sent the price of the digital asset towards three-month lows.

Related Reading | Cardano Founder Addresses Liquidity Concerns Over eToro Delisting

Although news of the delisting is a week out, the FUD surrounding the project has not subsided. This has prompted a Cardano ambassador to take action and has led to a run-down of why the FUD around the digital asset has refused to die out.

Cardano Is A Legitimate Alternative To Ethereum

The Cardano ambassador took to Twitter to address all of the FUDs that have been circling the altcoin in recent weeks. For one, they explain that most of it have been because Cardano presented the only legitimate alternative to the leading smart contracts platform, Ethereum. This leans into the fact that Cardano has often been proposed as an “Ethereum killer” after smart contracts capability has debuted on the blockchain.

They pointed to the network activity that showed that Cardano’s activity has consistently been on the rise in the past few weeks. While Ethereum had maintained momentum in the same time period, Cardano had spiked significantly, pointing to increased adoption. Yet, the market continued to treat the digital asset like it is a failing project.

Furthermore, Cardano had recorded such heavy spikes in network activity despite still being a bit away from the first decentralized exchanges launching on the network. Right now, NFTs are the only avenue with which both blockchains compete and Cardano has already recorded more activity.

Cardano network activity spikes above Ethereum | Source: Twitter

The ambassador closed out the Twitter thread by saying pointing out that the network has not really been given any benefit of the doubt since it launched. Nevertheless, the project has proved the market wrong and will continue to do so.

Cardano price chart from TradingView.com

ADA continues to suffer dips | Source: ADAUSD on TradingView.com

ADA Struggles Against FUD

The impact of all the FUD that has been circling the project has shone through in the price of ADA. The digital asset had dipped below $1.5 for the first time in three months and had touched the low $1.4 before recovery back up again. All progress that Cardano had made during this period had been buried underneath the FUD and panic among investors as sell-offs continued.

Related Reading | Cardano Active Addresses Shoots To New Highs Amid Downtrend

Despite this, the asset has not lacked support from its community. Taking to Twitter, others expressed their outlook for the future of the cryptocurrency. Choosing to focus instead on the potential of the blockchain instead of the current situation.

Cardano founder Charles Hoskinson also took time out to approve of the message being passed. The founder tweeted that others were terrified of Cardano due to being a self-sustaining project that doesn’t need outside help to grow.

Featured image from Bitcoin News, chart from TradingView.com

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TA: Bitcoin Dives Below $40K, Why Bulls Could Struggle In Near Term

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Bitcoin started a strong decline from the $43,500 resistance against the US Dollar. BTC remains at a risk of more downsides below the $39,200 support.

  • Bitcoin started a major decline after it failed to clear the $43,500 resistance.
  • The price is still trading below $41,000 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move down if there is a break below the $39,200 support.

Bitcoin Price Declines Heavily

Bitcoin price gained pace for a move above the $42,500 level. However, BTC struggled to gain pace for a move above the $43,500 resistance zone.

A high was formed near $43,497 before the bears appeared. As a result, there was a fresh decline below the $42,000 support level and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair.

There was a fresh decline below the $41,200 support zone. Bitcoin even declined below the $40,000 support zone. A low is formed near $39,261 and the price is now consolidating losses.

On the upside, an initial resistance is near the $40,250 level. It is near the 23.6% Fib retracement level of the recent decline from the $43,497 swing high to $39,261 low. The first major resistance is near the $40,500 level. An upside break above the $40,500 resistance could start a steady recovery wave towards $41,200.

Source: BTCUSD on TradingView.com

The next key resistance is near the $41,200 level, above which the bulls might aim a test of $42,500. Any more gains may perhaps call for a move towards the $43,500 resistance zone.

Fresh Drop in BTC?

If bitcoin fails to start a fresh increase above $40,500, it could start a fresh decline. An immediate support on the downside is near the $39,500 zone.

The first major support is seen near the $39,200 zone. A downside break below the $39,200 support zone may perhaps spark another major decline. The next major support is near $38,500, below which the price could even decline below the $38,000 zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is in the oversold zone.

Major Support Levels – $39,500, followed by $39,200.

Major Resistance Levels – $40,250, $40,500 and $41,200.

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Binance’s CZ Explains Why Banning Crypto Ads Won’t Affect Demand

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Several regulators around the globe have taken a hostile approach around crypto exchanges and crypto-related companies by forbidding them to advertise the industry to the general public. However, Binance’s CEO Changpeng Zhao thinks this will not affect the high demand of the market.

Curbing Crypto Ads

Crypto-related firms have been accused by international regulators of marketing their services with misleading messages that undermine the risk digital assets investments could possess to users.

Spain, U.k., and Singapore have banned the advertisement of crypto to different extents.

In Singapore alone, crypto exchanges and other licensed companies can only publish ads on their own websites and mobile apps to avoid reaching the general public.

The country’s ban includes “any form of advertisements or promotional materials in public areas such as Singapore public transport, public transport venues, broadcast media or periodical publications, third party websites, social media platforms, public events or roadshows.”

“MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore.“

Spain requires a pre-approval for any crypto advertisement directed towards an audience of 100,000 or more people and all ads and must include a warning like such: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”

In the U.K., authorities have banned several ads that they have claimed to be “irresponsible and took advantage of consumers’ inexperience or credulity.” 

Related Reading | Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

Why It Won’t Affect Price

The price of cryptocurrencies is driven by demand and supply, meaning the interest users have in the market and the availability of each digital coin. For this reason, the effects that bans might have on the adoption of cryptocurrencies are believed to be important for the future of the market.

Binance CEO Changpeng Zhao (also known as “CZ”) alleged during a CNBC International interview that the reason why regulators take this approach on advertisements is that the crypto industry has a huge demand.

Even though the CEO thinks these bans could slow down the industry’s growth, CZ is not worried about the macro picture because he thinks the demand for crypto is so high that curbing crypto ads will have little impact.

Changpeng Zhao claimed that most users are driven to the crypto industry through “word of mouth” marketing rather than ads.

“Clampdown on crypto advertising is unlikely to have much of an effect on demand, as most of the crypto users come from word-of-mouth promotions anyway.”

CZ noted that Facebook and Google opposed crypto ads for a long time and even though they are giant platforms that reign over the internet, this has not affected the adoption of digital assets.

Binance is the largest crypto exchange in the world and it recently withdrew its application to start a cryptocurrency exchange in Singapore after facing pressure from the country’s regulators over concerns of risks and consumer protection.

The exchange, however, has not lost interest in conducting business in the country. The global regulatory framework is miles away from becoming clear, and Binance is working to adapt and comply, taking “strategic, commercial and developmental” considerations.

CZ stated that Binance hasn’t driven its eyes away from Singapore for the country might change its regulatory framework later on.

The future location of Binance headquarters remains a mystery. CZ said they are exploring “everywhere in the world.”

The CEO noted that Binance is working with many authorities to help them build a comprehensive regulatory framework for the crypto market.

Related Reading | Binance’s CZ Wants Entrepreneurs To Create Coins. Does His Argument Make Sense?

Crypto Total Market Cap

At the time of writing, the global market cap of cryptocurrencies sets its price at $1,8 trillion, showing a decline of %3 in the daily chart.

Crypto total market cap at $1,8 trillion in the daily chart | Source: TradingView.com

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Bitcoin’s Plan To Fix The Crowdfunding Problem?

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Bitcoin's Plan To Fix The Crowdfunding Problem?

Crowdfunding has been around for some time now, and although it has been a hard time for some projects to gain funds, bitcoin could be the answer.

Let’s look at the root of the troubles and how crypto could potentially address them.

Related Reading | Downward DOGE: Descending Dogecoin Pattern Predicts Deadly Drop

The In’s and Outs…

Crowdfunding is a practice where you can donate money – including cryptocurrencies such as Bitcoin, Litecoin, and more cryptocurrencies – to projects, associations or people to develop ideas. It is a very powerful mechanism and tool for innovation and supporting social enterprises. Different platforms, such as Kickstarter and Indiegogo have not taken their foot off the brakes; the web 2.0 crowdfunding movement, which has led to the creation of several billion-dollar tech startups, like Oculus, and raised millions of dollars for thousands of causes, is ripe for development.

Crypto crowdfunding has the potential to be a network that connects people and their ideas. Today, crowdfunding is dramatically narrowed by its reliance on legacy finance, which limits the vast majority of the world from accessing it. Although this is good in theory, and has worked thus far, the major issue is the reliance on the legacy financial infrastructure, that is not only costly but globally fragmented.

BTC: Bitcoin bouncing back after hitting all time high in November 2021. | BTC:USD tradingview.com

Most crowdfunding platforms are only found in 30 countries. To date, the costs of operating crowdfunding in this network are very high, due to the many mediating third parties involved. The average crowdfunding platform charges a 7% fee per successful project. Could crypto’s aggressive transaction fees beat out traditional competitors?

Crowdfunding & Crypto: A Pair Of Aces…

Many platforms have had a hard time with the tight reliance of legacy financial infrastructure; this has made some crowdfunding platforms move over to the “web 3.0” model.

One big example is Kickstarter, who has decided to move from its reliance on Stripe to creating its own crowdfunding protocol on other blockchains. This may make sense for equity-based crowdfunding, which can enable the platform and it’s users to invest in new companies and their ideas.

A prime example of these worlds coming together was just last year with Bitcoin Smiles, which raised roughly 1.8 BTC. Bitcoin Smiles was an initiative aiming to raise funds and provide free dental care to impoverished people living in rural areas of El Salvador. Another project that can be used as an example is Kivéclair, a development project that educates people about bitcoin in the Democratic Republic of the Congo.

Although these are only few examples of early crowdfunding in crypto, these do provide a valid source and hope that bitcoin can still rally through its community of caring bulls and bears.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

 

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