It’s the first hump day of the new year and the crypto market is looking down as the Federal Reserve released minutes of its December meeting, suggesting interest rates are likely to start rising in March. Moreover, the big daddy, Bitcoin ($BTC.X), appears to be losing its dominance. The market capitalization of the cryptocurrency fell to 39.4% of the total crypto market – the lowest level since May 2018. The flip side is that this also means investors are pouring more money into non-fungible tokens, DeFi, and altcoins.
As the holiday selloff continued, the market mood remained bearish today. Bitcoin ($BTC.X) fell 7%, trading at $42,000. Ethereum ($ETH.X) plummeted 9%, hovering around $3,400. All this, while the crypto market mourned the loss of twin brothers who were behind popular crypto memes – read more about that below.
Even with a down market, there’s still a lot of excitement. With that, here’s what’s standing out to us today :
- BTCS to offer a dividend payable in Bitcoin
- China launches app for its digital currency yuan
- Crypto 101: What’s a non-custodial wallet?
- Crypto-meme twin brothers pass away due to COVID-19
Here’s how the major cryptocurrencies are performing:
|Binance Coin (BNB)||
Nasdaq-Listed Firm to Offer First Bitcoin Dividend, Shares Skyrocket
A Nasdaq-listed blockchain technology company, BTCS ($BTCS), is going to become the first to offer investors the option of receiving a dividend issued in Bitcoin. Based on the price of Bitcoin on the ex-dividend date, the company intends to pay its “Bividend” of 5% a share in Bitcoin. If investors do not elect to receive Bitcoin, they will receive the 5% dividend in cash.
After the announcement, the company’s shares rose as much as 43% to $4.40 a share, with its market capitalization swelling to over $43 million.
“We want to reward our long-time shareholders for their continued support and encourage financial freedom by providing the means to enable direct ownership of bitcoin and other digital assets,” the company said.
The “Bividend” will be payable on March 17. The company had been anticipating this payment since February 2015 and even bought the domain, bividend.com, at that time. The Maryland-based firm that provides staking and portfolio analysis services is evaluating whether future Bividend services are appropriate.
Despite the new move being unfamiliar for many, netizens welcomed it, noting that the market demands more crypto and that “Bividend” would give exposure to Bitcoin without even buying it.
Ahead of the Winter Olympics, China Launches Digital Yuan Wallets App
To expand the use of the digital yuan, the central bank of China released a pilot version of a wallet app. The “e-CNY (Pilot Version)” app is available on China’s Android app stores and Apple’s app store.
The app is still being tested, but foreign visitors who attend the Winter Olympics this February will be able to use the app and digital yuan, so long as they stay within the ten pilot cities where it’s being tested. As of October 2021, 140 million Chinese residents own digital yuan accounts. In addition, the service has accumulated ¥62 billion in transactions, or in US dollars, about $9.7 billion.
Since 2014, China has been developing a digital version of its official currency. However, it’s not like how PayPal and Apple Pay work. A two-tier system will be used to distribute the digital currency, with the PBOC transferring the e-CNY to commercial banks. Once that transfer is complete, the banks will distribute the digital currency to consumers.
Though it’s a digital asset, thee-CNY doesn’t really count as a traditional cryptocurrency. It’s not decentralized like Bitcoin ($BTC.X) or Ethereum ($ETH.X) but managed by the government of China. This is why it is called a digital currency with “controlled anonymity,” which means that users can choose to hide their identities while authorities can still monitor transactions for illegal activities like money laundering.
There have been a number of trials around China so far in the form of lotteries where users have been given a small amount of digital currency to spend. The e-commerce company JD.com accepted it as payment in the past year.
China’s move shows its desire to get more people to use digital currency before the Winter Olympics, especially when services like Alipay and WeChat Pay have strongholds in the country with 1.3 billion users.
What is a Non-Custodial Wallet?
Before buying a cryptocurrency, you must decide where and how to store it. It could be in the form of a crypto wallet, but there are two types of wallets: custodial and non-custodial wallets.
In a custodial wallet, another party controls your private keys – which is a large set of numbers that proves your ownership of the funds. So if you want to trade or send your funds elsewhere, you have to trust a third party to secure them and return them. Custodial wallets lessen personal responsibility; however, they require trust in the custodians, which are typically cryptocurrency exchanges that hold your funds.
It is not, however, a fully- decentralized method for securing your funds. It poses a threat to the security of your cryptocurrency assets since a third party (here, crypto exchanges) would hold custody over them.
In the crypto world, there is a phrase that goes, “Not your keys, not your coins.” It implies that if your crypto is stored in your wallet and you do not have keys, is it really yours?
This is where a non-custodial crypto wallet becomes helpful. A non-custodial crypto wallet allows you to have control over your money and keys. It means the individual can have full control over their money and that it can’t be seized by a third party. In a non-custodial wallet, you control your private keys, which control your cryptocurrency and prove the funds belong to you. This means that you are also solely responsible if you lose your keys, and you must take all the necessary precautions to protect your funds.
Types of Non-Custodial Wallet
Non-custodial wallets come in both software and hardware forms. Laptops and mobile phones can be used to install the software. Users of non-custodial wallets generally have to remember a 12–24 word seed phrase composed of random words to access their accounts. It serves as a backup account recovery tool. Do not share the account details with anyone.
A non-custodial wallet is also available in hardware forms that resemble USB drives or pen drives. Hardware non-custodial wallets must be connected to a computer via a USB port or Bluetooth in order to perform transactions. Even though the hardware wallets are technically connected to the internet during a transaction, the private key signature is done offline inside the hardware wallet before being sent online to the blockchain for confirmation. Experts say the most secure way to hold cryptocurrency is by using hardware wallets.
But there’s a risk.
If you use a non-custodial wallet, you must trust yourself to keep your keys and your wallet safe. Losing your wallet, destroying your wallet, or forgetting your password, without taking precautions to be able to regenerate your wallet could result in losing access to your funds. Crypto newbies may find non-custodial wallets challenging to understand and intimidating. Based on the research and study, however, non-custodial wallets seem to be the best solution for decentralization and security.
The Last Adieu To Crypto Famous Bogdanoff Twins
The faces of one of crypto’s most popular meme formats have passed away because of COVID. The Bogdanoff twins, two French TV presenters, passed away within one week of each other at the age of 72.
According to Le Monde, two brothers entered an intensive care unit at a Paris hospital on Dec. 15. Gritchka passed away on Dec. 28; Igor passed away six days later on Jan. 3. Pierre-Jean Chalençon, a family friend, told BBC that they waited too long to seek medical attention, assuming it was a flu.
Back in 2015, the brothers’ high cheekbones, puffed lips, and elongated chins made them cryptocurrency meme stars. The stars denied their signature look was the result of plastic surgery. In one of the most iconic crypto memes, Grichka is depicted as an omniscient, omnipotent figure who is able to crash or pump cryptocurrency markets by making a single phone call. Over four million people have viewed the famous YouTube video since February 2018. The video has also been a staple of crypto conversations on Twitter.
The brothers were no strangers to fame and glamour. Their television show Temps X became a big hit in France in the 1980s, and their best-selling book “Clefs pour la science-fiction,” or Keys to science-fiction, became a French classic.
The twins used to enjoy making fun and getting along with their meme fame. For instance, In an interview last year, they claimed that they had predicted a Bitcoin-like currency in 1982 as part of their Temps X TV show. They even claimed to have met Satoshi Nakamoto, the mysterious Bitcoin creator, in the 1990s.
Contrary to their TV and meme star status, the brothers had quite different educational backgrounds. Both of them studied applied mathematics and earned doctorate degrees in physics from the University of Burgundy. However, there were also accusations of plagiarism, and some even doubted their academic work.
Despite controversies surrounding the twin characters, crypto lovers adored them. Twitteratis mourned the loss of the twins today, saying there is a reason why the crypto market is so red these days. Monsieur Eduoard de Lamaze, the brothers’ lawyer, remarked that it was “very difficult to lose these two men who were so happy, kind, and original.”