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Chilly Start to The Week

Good evening. Well, that was a cold start to the week! Despite a recent rally, bitcoin has shrunk by $500 billion since it hit an all-time high of $69,000, as investors have cashed in on the uptick. 

Today, $BTC.X dropped nearly 5%, hovering at $56,000. Since last week, it has dropped 11%. $ETH.X followed that trend and was ended the day around $4,100. A few altcoins did gain traction after some announcements, with traders finding some reasons to invest in them. Read more below.

In hopes of seeing a rebound in the market, here are today’s headlines: 

  • El Salvador plans first ‘Bitcoin City,’ backed by bitcoin bonds
  • Square releases white paper detailing protocol for a decentralized bitcoin exchange
  • The altcoins that caught investors attention
  • Payments infrastructure firm MoonPay raises $555M at a $3.4B valuation

Check how the major cryptocurrencies are looking: 

Bitcoin (BTC)
$56,295.33
-5.42%
Ether (ETH) $4,080.55 -6.45%
Binance Coin (BNB)
$561.01
-5.50%
Solana (SOL) $216.50 -6.43%
Cardano (ADA)
$1.77
-5.24%
XRP (XRP)
$1.04
-3.31%
Polkadot (DOT)
$39.48
-9.20%
Avalanche (AVAX) $137.26 +4.25%
Dogecoin (DOGE) 
$0.2197
-3.75%
Shiba Inu (SHIB) $0.00004345 -3.19%

HODL For a Sec

El Salvador Plans To Create A ‘Bitcoin City’ At The Base Of A Volcano

El Salvador, the only country in the world to make bitcoin legal tender, is going to build an entire city using the largest cryptocurrency. This so-called “Bitcoin City” will be built near the Conchagua volcano in the country’s southeastern part.

President Nayib Bukele shared this latest development at a Bitcoin event on Saturday. He said the government plans to build a power plant near the volcano to supply energy to both the city and bitcoin mining. The city will have residential and commercial areas, services, entertainment, restaurants, and an airport. 

According to Bukele, an enormous bitcoin symbol will be located in the center of the city, which will be laid out in the shape of a circle. The city will have no income, property, capital gains, or payroll taxes. 

On top of that, the Central American country will also issue a $1 billion “bitcoin bond,” a tokenized financial instrument developed by Blockstream, on the Liquid Network. It will create a securities law and grant Bitfinex Securities a license to process issuances. $500 million of those funds will be used to build energy infrastructure and bitcoin mining equipment, while $500 million will be used to buy more bitcoin. The current market price of the largest cryptocurrency is about $56,000, so that would be under 2,000 bitcoins.

President Bukele has always been pro-Bitcoin. The country has not only made bitcoin legal tender but also launched a bitcoin wallet earlier this year. However, not everyone in the country is a fan of Bitcoin. Some El Salvadoran citizens protested Bukele’s decision earlier this year, calling him a dictator.


HODL For a Sec

Square Unveils White Paper For Its Bitcoin DEX

Jack Dorsey continues to show loyalty to Bitcoin—and only Bitcoin. The CEO of payments giant, Square, released a white paper detailing a new decentralized protocol for exchanging digital and other assets known as tbDEX.

The 18-page document gives a rough sketch of how the bitcoin DEX (decentralized exchange) would look. TbDEX, for instance, won’t feature its own governance token, unlike most DEXs that rely on a trustless model. It is instead a message protocol that fosters trust relationships without the need for federation.

“The tbDEX protocol facilitates decentralized networks of exchange between assets by providing a framework for establishing social trust, utilizing decentralized identity (DID) and verifiable credentials (VCs) to establish the provenance of identity in the real world,” the company wrote.

Mike Brock, who heads the project, has previously tweeted that bitcoin will be the native currency of the internet. “You can think about this as a decentralized exchange for fiat,” he wrote further.

Square announced the plans for a developer platform to support a decentralized bitcoin exchange in August. The company published the white paper on GitHub so that the community could contribute. Currently, it is encouraging feedback on the white paper on a newly created Twitter account.


One to Watch

Despite The Slow Market, These Tokens Continue To Rally

Although the week started cool, some coins attracted the attention of retailers. Take a look:

  • Avalanche: Avalanche ($AVAX.X) reached an all-time high of $144.96 on Sunday, making it one of the top ten most valuable coins in the world, with a market cap of $31.5 billion. The coin is up over 3,000% from one year ago.

Thanks to a new deal with consulting firm Deloitte that likely helped in the growth of the cryptocurrency. Deloitte announced it would use Avalanche’s blockchain technology to support its work with the Federal Emergency Management Agency (FEMA). The two firms will deploy a new ‘Close As You Go’ platform that will streamline FEMA’s processes for aggregating and validating federal disaster claims.

Crypto pundits believe that Deloitte’s partnership with Avalanche will enable more exponential partnerships with the token.

  • IOTA: The price of IOTA (MIOTA.X) continued to rise today, reaching $1.50. The latest surge has come after the IOTA network announced it would move forward with its multi-asset ecosystem. A staging network – the Shimmer network – will be launched soon for testing the new staking process for IOTA tokens. The staking feature is designed to foster fair token distribution for new digital assets.

“With the introduction of staking to IOTA, we want to make fair token launches accessible to the entire community and give innovators the opportunity to incentivize a large and passionate community,’’ per the announcement.

Holders of IOTA will soon be able to stake their tokens and receive newly minted alternative tokens. 

  • Voyager Token: $VGX.X, the token for a cryptocurrency brokerage service, jumped 30% today to $4.73. Getting listed on Coinbase Global Inc’s Pro platform lifted the coin. The cryptocurrency includes advanced utility features on the VGX platform that include staking with a current 7% reward. 

The token has seen its value soar by over 75% in the past week because investors are placing their bets on it, and it was seen trending on Stocktwits. The 24-hour trading volume of VGX has risen 749.24% to nearly $63.7 million. 


Keep An Eye On It

MoonPay Raises $555M, Valuing It At $3.4B

In its first venture capital round, cryptocurrency fintech startup MoonPay reached a post-money valuation of $3.4 billion.

The firm announced today that it closed a $555 million Series A funding round led by prominent industry investors like American investment firm Tiger Global and tech-focused investment manager Coatue. Other participants included Blossom Capital, Thrive Capital, Paradigm, and the New Enterprise Associates venture capital firm.

Since its launch in 2019, MoonPay claims to have processed more than $2 billion in transactions and has over 7 million users. The company specializes in providing payments infrastructure for crypto and enabling crypto-to-fiat transactions for 30 fiat currencies and more than 90 cryptocurrencies. Per the announcement, MoonPay’s fiat-to-crypto on-ramp enables over 250 crypto applications, websites, and wallets, including Bitcoin.com, covering more than 160 countries.

In addition, MoonPay offers a native nonfungible token (NFT) solution that enables users to buy and sell NFTs. It got a high-profile endorsement last week when, in a new music video, musician Post Malone was seen purchasing a Bored Ape NFT using MoonPay.

The new funding will allow the firm to hire new talent and expand its services globally. MoonPay CEO and co-founder Soto-Wright said that the company is positioning itself as “the world’s largest crypto payments infrastructure provider.”