Review of current news from the crypto space 15.12.2020

The crypto industry, like any other global industry, is extremely eventful. From the next throwback of BTC to the new” jamb “ of Facebook — only a small fraction of the most interesting events.

Past week news digest

There is no shortage of positive news in the crypto space, and let’s take a look at a brief overview of the events in the blockchain and cryptocurrencies that took place last week.

  • MicroStrategy raises $ 650 million to buy Bitcoin

We’ve already talked about MicroStrategy seeking to raise $ 400 million by selling debt securities to buy BTC.

After all, it was an astronomical $ 650 million that the Nasdaq-listed company managed to raise by selling debt securities as part of a private sale to institutional buyers.

Therefore, the company, which is famous for its Bitcoin purchases, is expected to announce soon how much more BTC will be in its secure digital vaults.

Its CEO, Michael Saylor, is clearly betting on a rise in the price of the cue Ball in the future, and this operation should bring significant profits in the coming months if the price continues to rise on the back of positive news.

Analysts such as Glassnode CTO Raphael Schulze-Kraft believe that BTC could reach $ 100–250, 000 when it reaches its next peak.

MicroStrategy’s announcements of BTC purchases will certainly encourage other companies to follow suit, as the Guggenheim investment Fund is bidding to buy BTC for $ 500 million.

  • US Insurance Giant MassMutual Invests $ 100 Million in Bitcoin

A new institutional investor, the American insurance company MassMutual, invests a significant amount in Bitcoin. The company, founded in 1851, has 8,000 employees, and its revenue in 2016 was $ 29 billion.

MassMutual points out that investing in Bitcoin is based on an overall strategy to take advantage of new opportunities while remaining diversified, “which gives us measurable but significant access to the economic aspect of a growing part of our increasingly digital world.”

After MicroStrategy invested hundreds of millions of dollars in Bitcoin, MassMutual joins a group of institutional investors who want to diversify their investments by betting on the growth of the price of the crypto asset in the future.

Therefore, more and more institutional investors are buying bitcoins, as confirmed by a Reuters report. The Guggenheim investment Fund has announced that it plans to buy $ 500 million worth of BTC.

As such, we are seeing a major shift in institutional investors who are finally turning to Bitcoin as a safe haven and reliable investment.

  • Growing investment interest in Ethereum

Bitcoin, the number 1 crypto asset in the market, is in the spotlight, and attention is focused on its recent growth, which broke new records in 2020.

But it is not only he who arouses the interest of investors. More and more of them want to invest in Ethereum, and sometimes only in it.

Thus, the Grayscale investment fund sees more and more clients-investors interested in Ethereum, and sometimes willing to invest only in this cryptocurrency, said Michael Sonnenschein, executive director of Grayscale Investments.

Grayscale manages at least 500,000 BTC for its investor clients, but also has a large number of ETH coins under management, as well as Litecoin LTC.

During 2020, we see a new group of investors primarily interested in Ethereum, or exclusively in Ether.

“Ethereum as an asset class is in growing demand,” Michael Sonnenshein told Bloomberg.

The Ethereum blockchain is indeed the most commonly used blockchain in the crypto industry. Just remember that 80% of Dapps and smart contracts use Ethereum.

Another important element is the emergence of decentralized Finance (DeFi), which also relies mainly on this blockchain for its work.

DeFi protocols use the ETH token or ERC20 derivative tokens to conduct all transactions and generate revenue in liquidity pools. Decentralized finance accounts for more than 90% of the activity of Dapps applications in Ethereum.

We should also take into account the increase in the price of Ether: if the price of Bitcoin has increased by 170% since the beginning of the year, then ETH by 360%. This has not gone unnoticed and attracts many investors to this reliable crypto asset.

And of course, the staking of Ether, which only started with the launch of Ethereum ETH 2.0 on December 1. Any coin owner will actually be able to place Ethereum bets individually, with a minimum of 32 ETH, or via staking platforms.

Therefore, many investors are considering the possibility of long-term placement of their Ethers in order to make a significant profit

  • If the price of Bitcoin breaks records, darknet revenues will also grow in 2020

It didn’t escape everyone’s attention that Bitcoin is breaking new records, and recently surpassed its historical high. The darknet market has not been left out and is reaching new heights, according to the Chainalysis report.

The darknet is a place where everything that is forbidden is sold, such as drugs, passwords or bank card numbers stolen during break-ins.The year 2020 is not over yet, but Darkweb is showing significant revenue growth, exceeding $ 1.5 billion in 2020.

Despite the reduction in the number of sites in the darkweb and the reduction in cryptocurrency transfers, revenues continue to grow. The decrease in the number of trading platforms in the darknet, which can be explained by the resumption of actions by the authorities to identify and close certain criminal activities. Famous sites like Flugsvamp 2.0 and Empire have really disappeared.

The drop in Bitcoin in March was accompanied by a drop in orders on the darknet, chainalysis notes, purchases that have clearly resumed since may. BTC is still the majority on the darknet exchanges, even if more and more hackers are now asking for Monero.

If the number of customers has decreased and revenue is growing, it means that the number of past purchases on the darknet has increased.

“The figures show that customers in 2020 make fewer purchases, but by a larger amount per purchase, compared to 2019.

This may indicate that casual buyers or those who buy drugs for personal use are leaving the dark web markets, while those who buy in large quantities (either for personal use or to sell to others) are buying more,” Chainalysis says in its study.

Activity on darknet is complicated, some sites regularly disappear, and there is an increase in the number of closures, which leads to the consolidation of this market.

The fact remains that this market’s revenue continues to grow, and we’ll have to wait until next year to see if that growth continues to progress.

  • Diem (Ex Libra) may be sued for trademark infringement

Although Facebook just changed the name of its Libra association to Diem, the social media giant could find itself in court for trademark infringement.

London-based FINTECH is already using the DIEM brand is considering taking its rights to Facebook and its Association, which is now called Diem rather than Libra.

It is really concerned about the confusion that may arise between her mobile app and the Diem stable coin project, which is scheduled to launch in 2021. The Diem app allows consumers to sell their products instantly, rather than waiting for bidders on eBay.

The London-based startup said it was surprised to find that Facebook had chosen their Diem brand to rename its Libra association, without even bothering to check if there were any analogues.

It seems that the Libra team really did not bother to check or pay attention to the fact that it is possible that someone is already registered under a similar trademark.

With billions of dollars in revenue, the social media giant can indeed face any costly legal action, but also find opportunities to dissuade a small startup from the temptation to sue it.

What happens next will depend on Facebook and its Association: whether they want to start a fight in court with the risk for its Diem project to abandon the brand if they lose, or peacefully persuade Fintech Diem to a good financial compensation, which mark Zuckerberg clearly can afford.

  • Visa integrates USDC into its payment network

Giant Visa is teaming up with Circle to make it easier to send and receive USDC stablecoin to its payment system. The fact that Visa is integrating the USDC may encourage large-scale adoption of the cryptocurrency.

Developing innovative initiatives throughout the year, Circle announced in Forbes its partnership with a payment network of 60 million merchants worldwide. USDC is the second stablecoin by capitalization in the crypto market, and its capitalization is approaching $ 3 billion. Its Association with Visa portends an even brighter future.

However, the effect will not be instantaneous, as the integration will take place in stages. First and foremost, Circle must meet all the conditions of the Visa Fast Track program, a program of integration with the credit card network to help innovative enterprises “scale effectively”. After that, the technology company will issue the first corporate Visa card connected to the USDC. This way, its professional clients will be able to spend their stablecoins from all sellers in the network. Only after this stage, all companies approved by Visa under its program will be able to join the USDC.

Kai Sheffield, head of Visa’s crypto division, said:

“We see the significant potential of stablecoins like USDC to help our customers create new payment flows, and we are committed to helping them integrate into the payment ecosystem in a safe and convenient way”.

It is expected that the integration of USDC into the Visa network will take place in 2021.


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