Read in the Digest:
- Bitcoin falls under $29k to mark longest bearish streak as sentiments hits lowest point.
- Uniswap to launch on two new chains: Moonbeam and Gnosis.
- Binance to launch payment and trading in Dubai, with plans to set up its HQ in the Middle East.
- Japan’s second largest bank to launch institutional Bitcoin and crypto custodial service.
- Crypto advocates make waves at the World Economic Forum in Davos.
Bitcoin drops below $29k to Mark Longest Bearish Streak, Sentiment Hits Lowest Point
The 24 hour price chart for Bitcoin (BTC). Source: CoinMarketCap
The downtrend, which has pushed Bitcoin down to $29,256, marks the leading asset’s eighth consecutive week in the red for the first time ever. Over the course of these eight weeks, which started in late March, bitcoin has lost over 35% of its value.
The prolonged downtrend has seen Bitcoin’s sentiment hit its lowest point. The doom and gloom surrounding Bitcoin and the broader crypto market seems to be at its most negative level since #BlackThursday in March 2020—when Bitcoin lost 50% of its value in a matter of hours.
- As Bitcoin continues to struggle, its lesser-known hard fork, Bitcoin Gold, has been experiencing an uptrend.
- The price of BTG has jumped by 35% on Monday, May 23rd, to peak at $32.48.
The 7 day price chart for Bitcoin Gold (BTG). Source: CoinMarketCap
Uniswap to Launch on Two New Chains: Moonbeam and Gnosis
Uniswap, the second biggest decentralized exchange (DEX) on the market, is looking to extend its reach by launching on two new chains: Moonbeam and Gnosis. The move comes after two successful governance proposals to deploy Uniswap on the new chains.
The vote to deploy Uniswap on Moonbeam (which ended on May 19th) and Gnosis Chain (ending May 20th) were both successful, with more than 99.99% of the votes being cast in favor of deploying the exchange on the two chains.
On May 23rd, Uniswap Labs announced that the exchange would be launched on Moonbeam and Gnosis in addition to the Ethereum, Polygon, Optimism, and Arbitrum networks which are already supported.
The extra support for Uniswap could increase the use of the decentralized exchange, which now has $6 billion in total value locked (TVL) as of this writing, making it the third-largest DeFi platform.
- The total value locked (TVL) in Uniswap has taken a major hit, having lost more than $2 billion since the start of May.
Why You Should Care
Uniswap looks to expand its services to reach new corners of the DeFi ecosystem by launching on the two new chains.
Binance to Launch Payment and Trading in Dubai, with Plans to Set Up Its HQ in the Middle East
Continuing in its quest for global adoption, the world’s largest cryptocurrency exchange, Binance, is preparing to launch cryptocurrency payment and trading services in Dubai.
A license from the Virtual Assets Authority, an industry-specific regulator, will initially allow Binance to render its services to financial institutions and qualified investors, before later expanding to include retail investors.
Binance is working with local banks, as well as hiring country managers and compliance officers in Dubai and Bahrain. The service is expected to be launched in early June.
According to the regional head of the Middle East and North Africa Richard Teng, Binance plans to expand throughout the region and provide a full range of services that will enable it to be fully involved in the development of Web 3.0.
With regulators in the Middle East region supporting the development of crypto-assets and the Web 3.0 ecosystem, Binance’s long-term plan is to establish its first headquarters in the Middle East and build its reputation as a legitimate firm from the ground up.
- Argus, a firm that helps companies manage employee trading, has once again accused Binance of facilitating insider trading.
Why You Should Care
Binance has prioritized regulatory trust, and has soughtto obtain the relevant licenses across a multitude of regions as part of its push for global adoption.
Japan’s Second Largest Bank to Launch Institutional Bitcoin and Crypto Custodial Service
Japan’s second-largest bank, Sumitomo Mitsui Trust, is launching a new arm to offer institutional clients custodial services for bitcoin and other cryptocurrencies.
Sumitomo’s new arm is the product of a partnership with Bitbank, a Tokyo-based crypto exchange. The firm will offer institutional-grade custody for digital assets and NFTs.
Named the Japan Digital Asset Trust, the venture arm will open with an initial capital of $2.3 million, and is expected to reach $78 million through additional investments.
The Japan Digital Asset Trust is a joint-venture, with 85% ownership belonging to Bitbank, and 15% belonging to Mitsui Trust.
- Sumitomo’s competitor Nomura Holdings Inc. recently launched a subsidiary that offers custodial services to institutional clients looking to acquire bitcoin and other Altcoins.
Why You Should Care
Sumitomo Trust joins other financial institutions in pushing for the adoption of bitcoin as an institutional asset class.
Crypto Advocates Make Waves at the World Economic Forum in Davos
Despite the recent market crash and the consistent contempt of the mainstream financial sector, crypto advocates are making a statement at the World Economic Forum’s annual meeting in Davos, Switzerland.
Attendees of the WEF meeting in Davos are being greeted with street signs advertising crypto, a stall offering free bitcoin pizza, adverts on trains and airports, and a “Liquidity Lounge”.
Leading executives from the crypto sector are also in attendance, seeking to encourage faster adoption of their technology, which is largely unregulated.
Some of the issues to be discussed at Davos include the aftermath of the global pandemic, the Ukraine crisis, rampant inflation, digital assets, the tumbling stock markets, and climate change.
- IMF Chief Kristalina Georgieva has cautioned against confusing crypto with currencies, and has said that just having “coin” in the Bitcoin name doesn’t make it money.
Why You Should Care
Although it is largely on the sidelines of the main event, and on the streets outside, global financial leaders cannot overlook the show of support for crypto.