Crypto.com, Crypto.com Again, and Lastly Crypto.com
In this week's news, Crypto.com accidentally sent a woman $10.5 million dollars when processing a refund for $100. The centralized exchange didn’t notice the mistake until 7 months later. When probed, the woman allegedly spent the money on a $1.35 million dollar home along with other luxuries.
The company since then has taken the issue to the Victoria’s Supreme Court. The court ordered that the house be sold along with other property and return the money. In addition to that, the court issued a default judgment in favor of Crypto.com and ordered the woman to pay interes on the funds that add up to $2800.
It is apparent that the company needs the funds now, suffering a $34 million dollar hack recently. Further, the state of the crypto market has not been favorable to Crypto.com either. It has been in a bear market this past year causing many exchanges to cut staff in order to produce healthy balance sheets.
Unstoppable Force meets Immovable Object!
Despite the recent bear market in the crypto space, BTC traders have utilized one simple trading strategy for more than a year: hodling.
According to On-chain analysis, 62% of BTC holders have held BTC for a year or more. Only 8% of wallets have held BTC for less than a month. Further on chain data has also indicated that about 48% are in profit, while the same amount are in losses. Only 4% are in neither profit or loss.
Despite recent fluctuations in price, another metric that was analyzed was that 25% of wallets have maintained and not moved their BTC in over 5 years. This shows that these individuals are in it for the long run.
As of now, the crypto market is down from it's all time highs. BTC was down as much as 72% from it's all-time high of $69,000.
Going, Going, Gone!
The Ethereum merge is upon us. It is supposed to take place sometime in September. As a result, Ethereum will move from a Proof-of-Work Model to a Proof-of-Stake consensus mechanism. Although the persisting network fees have been an ongoing issue for Ethereum, this change will NOT reduce gas fees. Instead, it will reduce energy usage by more than 99%.
So one may ask, what is the point of the merge if it won’t solve the single greatest issue on the network, the fee issue? I think the merge is happening for two reasons, one to reduce the energy usage and two to make Ethereum an attractive investment for institutional investors.
It is no surprise that Ethereum is jumping on board the go green movement. By moving to a proof of stake consensus model it will position itself a green alternative to Bitcoin. Further, in a Proof-of-Stake model, the more coins you own, the more power and say you have on the network. This makes ethereum a much more attractive investment for institutional investors since it allows them to have more power and influence over the network.
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