ETHEREUM has today soared over $3,000 to quadruple its value in 2021.
It broke past $3,000 on Monday to set a new record high.
It was a dazzling rally that has outshone the bigger Bitcoin, with investors betting that ether will be of ever greater use in a decentralised future financial system.
The Ether/Bitcoin cross rate has soared more than 100 per cent so far this year.
There was a 2.5-year high on Sunday, pointing to a rotation into the second-biggest cryptocurrency as investors diversify their exposure.
On Sunday, a new record was broken as Ethereum reached $2,953 – up nearly 1,500 per cent since this time last year. One analyst claimed this week that “a ride to $5,000 is imminent”.
This means its value has risen by more than 1,300 per cent in less than a year and is currently outperforming Bitcoin in terms of percentage growth.
The price of dogecoin shot up from $0.25 to $0.30 in less than 15 minutes after Musk posted a cryptic tweet reading: “The Dogefather” – “SNL May 8”.
Read our cyptocurrency live blog below for the very latest updates…
CYBER-CRIMS HAUL IN OVER $100MILLION – REPORT
Cryptocurrencies had a strong start this year, with crypto asset prices, such as Bitcoin (BTC), reaching record-heights.
However, that caught the attention of cybercriminals.
The Atlas VPN team found that cybercriminals stole around $108.3 million from various blockchain projects in the first quarter of 202.
This is a 46% rise from the same period last year, Atlas VPN adds.
Ethereum DApps, blockchain wallets, and cryptocurrency exchanges were the criminals’ target of choice.
Credit: Atlas VPN
BANK TO ISSUE DIGITAL BOND OVER ETHEREUM BLOCKCHAIN
Bloomberg reported last week that the European Investment Bank plans on issuing a digital bond over the Ethereum blockchain.
Meanwhile JP Morgan plans a managed Bitcoin fund.
Venture capital giant Andreessen Horowitz is looking to raise a new fund of as much as $1 billion to invest in cryptocurrencies and crypto start-ups, the Financial Times reported last Friday, underlining interest in the sector.
Bitcoin, the world’s biggest crypto asset with more than $1 trillion in market capitalisation, regained the $50,000 mark last week.
It hovered around $58,700 on Monday, up about 4% but well below its record high at $64,895.22. The US dollar was broadly steady.
ETHER ‘ECLIPSES BITCOIN’
Cryptocurrency Ether scaled a new record high beyond $3,000 “as investors bet that it will be of ever greater use in a decentralised future financial system”, reports Reuters.
The news agency adds today: “Its lightning rally – now up 325% in 2021 – has eclipsed that of bigger rival Bitcoin.”
ETHER SMASHING CRYPTO RECORDS MONDAY… MORE
Ether’s big rally today is a catch-up to late 2020 gains in Bitcoin, said James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager.
It also reflects improvements to the ethereum blockchain, he said.
Plus, there’s a growing shift towards “DeFi”, or decentralised finance, which refers to transactions outside traditional banking for which the ethereum blockchain is a crucial platform.
“At first, the rally was really led by bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call,” Quinn said.
“But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on ethereum,” he added.
ETHER SMASHING CRYPTO RECORDS MONDAY
Cryptocurrency ether broke past $3,000 on Monday to set a new record high.
It was a dazzling rally that has outshone the bigger Bitcoin, with investors betting that ether will be of ever greater use in a decentralised future financial system.
Ether, the token transacted on the ethereum blockchain, rose 3% on the Bitstamp exchange to $3,144.81 in morning deals in London.
It is up 325% for the year so far, easily outpacing a 95% rise in the more popular bitcoin.
NOSTRADAMUS OF CRYPTOCURRENCY
Seattle-based Robert Weinstein, dubbed “the Nostradamus of Cryptocurrency” by Alys Key in the i, uses January 3 2009 as Bitcoin’s ‘birth’ and works out where the planets were at this time.
Key explains that he “observes the movements of the planets and what they might mean for Bitcoin, looking for signs of how it will move and it if will encounter challenges.
“He does not claim to be able to predict exact prices, but is instead looking for indications that it will go up or down.”
Weinstein told her: “We don’t believe the planet is actually causing Bitcoin to go down. It’s a correlation. It’s the study of energy patterns.”
BITCOIN’S ‘FATE WRITTEN IN THE STARS’
There “appears to be a blossoming relationship between astrology and finance,” according to a fascinating story on Bitcoin in the i.
Alys Key writes: “Bitcoin really likes full moons. That’s one of the things I learned from delving into the world of Bitcoin astrology.
“Many have tried to crack the pattern of what makes it go up and down… and astrologers are no exception.
“Seattle-based Robert Weinstein has been following Bitcoin’s astrological patterns since 2017, and shares public perceptions on his Twitter account, @AstroCryptoGuru, where he goes by the moniker ‘Crypto Damus’, an allusion to the 16th century figure Nostradamus.
“Bitcoin has several inception dates attached to it, but its birthday is most commonly celebrated on 3 January. This is the date when, in 2009, the currency’s mysterious creator known as Satoshi Nakamoto, created the ‘genesis block’, thereby beginning the Bitcoin network.”
‘THERE’S A GROWING SHIFT AWAY FROM TRADITIONAL BANKING’
More on that blog post.
In part, the huge surge is a catch-up to late 2020 gains in Bitcoin, said James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager.
It also reflects improvements to the Ethereum blockchain, he said, and a growing shift towards “DeFi”, or decentralised finance, which refers to transactions outside traditional banking.
“At first, the rally was really led by Bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call,” Quinn said.
“But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on Ethereum.”
ETHER’S RECORD-BREAKING SURGE
Big news from Singapore overnight – cryptocurrency Ether broke past $3,000 to set a new record high in a dazzling rally that has outshone the bigger Bitcoin, Reuters reports.
Ether, the token transacted on the Ethereum blockchain, rose 3 per cent on the Bitstamp exchange to $3,051.99 by lunchtime in Asia.
It is up more than 300 per cent for the year so far, easily outpacing a 95 per cent rise in the more popular Bitcoin.
WHAT DO SIM-SWAPPING ATTACKS INVOLVE?
The US Department of Justice explains: “SIM-swapping attacks involve convincing a victim’s cellphone carrier to reassign the victim’s phone number from the SIM card inside the victim’s cellphone to the SIM card inside a cellphone controlled by the cybercriminals.
“Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by them.
“The cybercriminals can then reset the victim’s account log-in credentials and use those credentials to access the victim’s account without authorization, or “hack into” the account.”
MILA KUNIS WARNED ASHTON KUTCHER AGAINST BITCOIN
Mila Kunis warned Ashton Kutcher against investing in Bitcoin.
The actress said she gave her partner “bad financial advice”.
Speaking on The Late Show with Stephen Colbert, she said Ashton sat her down and said: “Hey, babe, I got to explain this thing to you. Tell me if I’m crazy.
“There’s this thing, it’s like mining for money. It’s called cryptocurrency, and there’s this company. It’s called Bitcoin.”
She said she was concerned about the cryptocurrency not being insured and said it was a “horrible idea”.
“And he went, ‘Cool, we’re investing in it.’ So he didn’t listen to me. I mean, this happens all the time.”
WHAT IS LITECOIN?
Litecoin entered the cryptocurrency market as a competitor to Bitcoin in 2011.
Like the other cryptocurrencies – it is run on Blockchain. Each individual Litecoin is known as a token – which is the digital asset that you own when you invest.
According to GoBankingRates, in 2017 Litecoin was the first cryptocurrency to complete a Lightning Network transaction.
WHAT ARE THE RISKS OF BUYING WITH CRYPTOCURRENCIES?
Investing and making a purchase in cryptocurrencies such as Bitcoin is risky. Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money. You should also think carefully about making purchases with a cryptocurrency.
For example, Bitcoin has had wild price fluctuations in recent months and the price can change on an almost hourly basis. The price of a Bitcoin was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% drop. These price swings are risky for a business as you could sell an item for a Bitcoin at one price and the value may drop soon after, leaving you with less money from a sale.
Similarly, the price of Bitcoin has soared by more than 21% since the start of this week so it can be hard for a shopper to get an accurate idea of the price of an item if its value changes on a daily basis.
WHAT IS BLOCKCHAIN TECHNOLOGY?
Blockchain technology, which can seem very complicated, is a kind of database used to record transactions.
It’s the technology at the heart of cryptocurrencies such as Bitcoin.
Typically, this storage is referred to as ledgers, or digital records.
These can be shared publicly among a network of linked computers around the world.
HOW TO SPEND YOUR BITCOINS
Crypto website Coinbase says paying with Bitcoin has its advantages as you don’t have to give as much personal information such as your name and address when buying online.
Instead, transactions are stored in a network called the blockchain.
The cryptocurrency can be spent anywhere so you could avoid forex fees on overseas purchases.
It can also be cheaper for retailers as they don’t have to pay fees to VISA or Mastercard to accept card payments through chip and pin readers.
Some shops will accept Bitcoin like any other currency. They may display a sign on their website or shop window that says Bitcoin accepted here.
TURKEY ADDS CRYPTO TRADING TO TERROR FUNDING RULES
Turkey added cryptocurrency trading platforms to the list of firms covered by anti-money laundering and terrorism financing regulation, it said in a presidential decree published on Saturday.
The Official Gazette said the country’s latest expansion of rules governing cryptocurrency transactions would take immediate effect and cover “crypto asset service providers”, which would be liable to the existing regulations.
Last month Turkey’s central bank banned the use of crypto assets for payments on the grounds such transactions were risky.
In the days that followed two Turkey-based cryptocurrency trading platforms were halted under separate investigations.
The probe into one of them, Thodex, led to the jailing on Thursday of six suspects including the siblings of its chief executive, Faruk Fatih Ozer, who Turkish authorities are seeking after he travelled to Albania.
CONTINUED: CHINA RAMPS UP CRACKDOWN ON FINANCIAL SCAMS
Last year, China busted over 7,500 financial scams, according to the regulator, up 27% from the previous year.
The clampdown on swindlers comes as rules combating illegal fundraising come into force on May 1, putting the onus on local officials to kill off investment scams at an early stage, said a local financial regulator who attended several mobilization conferences this week.
“Previously, you asked victims to go to court. Now, victims can bring officials to court for negligence of duty,” said the official, who is not authorized to speak to the media and declined to be identified.
CHINA RAMPS UP CRACKDOWN ON FINANCIAL SCAMS
China has ramped up a crackdown on financial scams, from cryptocurrency swindles to bogus patriotic fundraising that capitalizes on the coming 100th birthday of the ruling Communist Party, as new anti-fraud rules took effect yesterday.
In recent years, China has shut roughly 6,000 peer-to-peer (P2P) platforms in a purge of an industry that still owed victimized investors over $100 billion as of last August.
But financial frauds are mutating in their complexity and widening, according to China’s banking regulator, which last week called for a tougher crackdowns.
AMAZON HIRES EX-FCA OFFICIALS AHEAD OF RUMOURED CRYPTO LAUNCH
Amazon has hired a team of British financial regulation experts ahead of its rumoured cryptocurrency launch.
At least six regulatory specialists from the UK banking watchdog the Financial Conduct Authority (FCA) in the past two years, The Telegraph reports.
It follows rumours that the tech giant is starting its own digital currency job adverts appeared online earlier this year.
There were listings for Amazon’s Digital and Emerging Payments (DEP) division which will mean customers can “convert their cash into digital currency” and use it to buy products on its website.
A virtual currency already exists on the site – Amazon Coin – which can be used to purchase apps and games on its app store.
HMRC DEMANDS BRITS HAND OVER CRYPTO DATA
HM Revenue & Customers is demanding people under investigation for tax evasion hand over data on the cryptocurrencies they hold.
It also wants information on other assets commonly used by organised crime and Latin American drugs cartels, The Times reports.
A new section on the tax forms sent to those under investigation states they must declare “worldwide assets, liabilities and business interests”.
David Jones from Hacker Young, the accountancy firm, said: “HMRC suspects that an increasing amount of hidden wealth is slipping through its fingers thanks to the rise of cryptocurrencies and other unsanctioned money transfer systems.
“This demand for information is an important step in HMRC’s fightback against that.”
CONTINUED: INVESTING IS ‘NOT AN EASY WAY TO MAKE A FORTUNE’
Buffett has said that most people will fare better by owning an S&P 500 index fund instead of betting on individual stocks.
He said many of the novice investors who jumped into the market recently and drove up the value of video game retailer GameStop are essentially gambling.
INVESTING IS ‘NOT AN EASY WAY TO MAKE A FORTUNE’
Billionaire Warren Buffett warned people not to think investing is an easy way to make a fortune as he answered a variety of questions at Berkshire Hathaway’s annual meeting on Saturday.
Buffett said it can be tough to pick the long-term winners and pointed out that in 1903 there were more than 2,000 car companies, and nearly all of them failed even though cars have transformed the country since then.
“Theres a lot more to picking stocks than figuring out what will be an incredible industry in the future,” said Buffett, who is known for his remarkably successful investing record.
“I just want to tell you that its not as easy as it sounds.”
Buffett said the stock trading platforms that allow people to buy and sell stocks for free, such as Robinhood, are only encouraging that gambling.
VISA ‘LEANING TOWARDS CRYPTOCURRENCY’
Visa is leaning towards the cryptocurrency “in a very, very big way”, according to CEO Al Kelly.
He said the company is “extremely well-positioned”, adding: “Our focus is on five different opportunities that we see in this space,” Bitcoin.com reports.
- Enabling consumers to make a purchase of these currencies or bitcoin.
- Enabling digital-currency cash-outs to fiat.
- Enabling financial institutions and fintech partners to be able to offer a crypto option for their customers.
- Upgraded infrastructure to allow a financial institution to settle with these in a digital currency with stablecoin, starting with USDC.
- Just working with central banks.
UZBEKISTAN LEGALISING CRYPTOCURRENCY TRADING
Uzbekistan looks set to legalise cryptocurrency trading.
The National Agency for Project Management under the President of the Republic of Uzbekistan (NAPM) said in a statement: “Residents of the Republic of Uzbekistan have the right to carry out on crypto-exchanges all types of crypto-exchange trades in crypto-assets and tokens for national and foreign currencies.
“The choice of crypto-assets as an object of acquisition and, accordingly, the consequences of this choice are the risk of the buyer himself.”
The country previously banned all citizens from trading in crypto and the rules have fluctuated since.
INVESTING IN SAFEMOON & DOGECOIN ‘LIKE BETTING ON A SLOT MACHINE’
Experts have compared investing in SafeMoon and Dogecoin to betting on a slot machine.
Speaking to Business Insider, Susannah Streeter, an analyst at British financial services company Hargreaves Lansdown, said: “Gains are being fueled by frenzied chat across social media with influencers jostling for position to push their favored coins.”
She added: “Its model appears to be geared towards helping early holders of the currency get rich, as others pile in after them, pushing the price up further.
“Traders buying in late with the expectation of celestial rewards are likely to be sorely disappointed when the price falls back to earth with a bump.”
Edward Moya, a market analyst at crypto platform Oanda, warned further, stating: “Many view it as a pump-and-dump coin. Safemoon’s initial buzz started off as many anticipated it will have a similar rise like dogecoin. It seems unlikely Safemoon will ever make it to the moon.”
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