Week 2 - 2020 News Recap
Seasoned Traders Prefer Desktop Computer Trading, A New Study Reveals
A digital agency called BDCenter, joined forces with the sociology department of the Belarus State University in order to create a report and conduct research on the topic of preferred methods of trading. The report was published back in October 2018, comprised of data collected from over 800 traders across 75 countries worldwide. The participants were due to answer 30 questions regarding cryptocurrency trading, cryptocurrency exchanges and trading in general. The groups of questions referred to qualities that make a cryptocurrency exchange attractive, also asking the participants to provide their opinion on users’ expectations regarding trading platforms, Forex traders and crypto investments, as well as provide their insight on trading behavior based on different regional and demographic groups.
The core of the research was exploring the general functionality of different crypto exchanges where it was concluded that over 80% participants who entered the market in the course of the last three years, sought simplicity and trading tools for beginners in a trading platform. Based on participants’ answers, most crypto exchanges failed in delivering simplicity while 71% claims that tutorials for trading are one of the key qualities they are looking to find at a crypto exchange. According to the research, 63% of crypto exchanges said to be overwhelmed with complicated features and charts. What was also brought up by the study, is that users between 35 and 44 years old, are more likely to use smartphones for trading, while more seasoned traders tend to choose desktop trading.
Bitcoin Ready for the Next Move After Surpassing $8,000
After the weekly high of over 8,400$ per one Bitcoin unit, it appears that bulls decided to push the price further above the level of 8,000$, while the record weekly price set at 8,437$ is said to be the result of the tension between the US and Iran. As many people seemed to have expected to see the signs of war bursting out between the two countries, the rise of Bitcoin contributed to geopolitical changes that took place at the beginning of 2020. In addition, the record weekly price was achieved on January 8th, 2020. After the President of the United States, Donald Trump, decided that further escalation of the tensions between Iran and the US is unnecessary from the US end, the price of Bitcoin fell back to 7,660$.
Bitcoin once again moved back above the value of 8,000$, giving out a sign that other factors aside from geopolitical changes are responsible for the next Bitcoin’s movement. As the price above 8,400$ showed cleared exhaustion of upward trends, analysts expected to see Bitcoin go down below 8,000$ and touch 7,500$. Many analysts rely on the CME gap at 7,600$, while relying on 8,000$ as the level of support for further price rise. Analysts are currently targeting the price of 8,600$ for Bitcoin, following with predictions that include the target of 9,200$ and 9,500$ in the following period.
US is No Longer the Number One Bitcoin Recipient
Since 2013, the United States held the first place in terms of representing the number one recipient of Bitcoin when exchanged to US dollar. For the first time in more than six years, the US no longer has supremacy in receiving Bitcoin-based payments. Concluded with December 5th, 2019, Singapore is said to become the number one recipient of Bitcoin according to Crystal Blockchain, an analytics website. According to data provided by Crystal Blockchain, around 8.58 billion US dollars in BTC was sent to Singapore by global users of Bitcoin. Having that in mind, more BTC units were sent to Singapore in 2019 than anywhere else on the globe, making Singapore a number one recipient of Bitcoin in 2019.
As a follow-up, the US is now holding the second place in this category, having received around 7.46 billion dollars, according to Crystal Blockchain data. Although Singapore received the greatest number of BTC units during 2019, Singaporeans weren’t the most diligent senders of Bitcoin. Instead, Seychelles represents the leading sender of Bitcoin across the globe, having around 10.07 billion dollars sent in BTC in 2019 alone. Many cryptocurrency exchanges have found home outside the US, due to the rigorous and/or undefined regulations, which is why it is no wonder that the US is showing less activity in the area of sending and receiving US dollars via BTC. Still, the US is also holding the second place in transaction volumes of BTC for 2019.
SEC Offers Evidence to Prove Telegram Prolonged with Token Sales After $1.7 Billion ICO
After the Securities and Exchange Commission decided to take their case against Telegram to court, the company was supposed to seize the issuance of their tokens, known as grams. After collecting around 1.7 billion dollars within ICO sale, Telegram was due to stop with all sales, charged by the Securities and Exchange Commission for selling unregistered securities. Although Telegram denies that grams represent securities, but rather poses as digital assets much like other cryptocurrencies sold in the market, SEC is pushing their accusations further, claiming that the SEC has a valid proof that Telegram prolonged with token sales even after “illegally” raising nearly 1.8 billion dollars with their initial ICO sale.
Gem Limited and investment fund, Da Vinci Capital, invoiced their requests for commissions to Telegram, asking for 1.1 million dollars and around 206,000 dollars for subsequent sales and future issuance of gram tokens. According to the SEC and physical proof showcased by the US regulatory body, Gem Limited 8.6 million worth of Telegram’s grams to Goliat Solutions, in addition to selling 4.5 million dollars-worth grams to Space Investment Limited, back in July, 2018. Moreover, sold 2 million-worth grams to ITI funds back in June of the same year. Under the Regulation D, all sales of grams should have been stopped after the initial token sale. The SEC should meet Telegram in court around mid-February, 2020.
Cobinhood Exchange Announces a One-Month Shutdown
Cobinhood exchange announced that they will be shutting down their services for all users with no exceptions, starting from January 10th. The shutdown is said to be temporary as per the announcement shared by Cobinhood representatives and should last till February 9th, 2020. The exchange is said to re-open on February 10th, 2020, one month after the initial shutdown. Within the shared announcement, Cobinhood claims to be planning on making an audit for all users’ accounts, warning all users not to make deposits during the shutdown time. Although Cobinhood announced the temporary shutdown of their platform and all services included, the exchange didn’t mention whether they will resume all their services after February 10th.
The exchange only stated that all users will be able to retrieve their funds after the exchange returns on February 10th. The exchange has been keeping their silence during most of 2019, which is why many are doubting that Cobinhood went bankrupt despite having the award-winning actor Jamie Foxx promoting their upcoming ICO that managed to raise 10 million dollars. Popo Chan, the founder of Cobinhood, claims that the exchange is far from bankruptcy, despite admitting that the company has had some issues during 2019.