A daily round-up of the most interesting news stories on the cryptocurrency market and its sub-sectors like DeFi and NFT.
It’s unsure if social media giant Facebook has had any effect on the crypto market. But, along with Meta’s shares (FB’s project), the global crypto market cap is down, more precisely by 4.81% in the last 24 hours and currently stands at $1.69 trillion.
This has further affected most cryptocurrencies, including Bitcoin and Ethereum. The top virtual currencies by market cap are down by more than 4%. However, despite the bearish sentiments, cryptocurrencies like Silva Token and Valentine Floki observed more than a 200% price increase in the last day.
It’s well known that when Bitcoin bleeds red, altcoins follow the rally. Decentralized Finance (DeFi) lost more than $2 billion over the last day. While MakerDAO continues to dominate the space, it is also down by 3.28%. As of writing, ninety percent of DeFi protocols are down, although Uniswap is up by 6.48%.
In the NFT market, more than $40 million were poured into both “art and collectible” and “gaming” sectors in the last 24 hours. After the addition of this sum, the weekly trading volume of NFTs is currently valued at $146.5 million.
News Around The World
Bitcoin evangelist Michael Saylor – who added a fresh batch of 660 BTC to his portfolio yesterday – said in an interview with CNBC today that “clear crypto regulations would speed institutional adoption.” The comment comes in response to U.S. Securities and Exchange Commission Chairman Gary Gensler’s plan to create and enact rules for cryptocurrency markets.
The crypto regulation market has added another African country Botswana, which passed a bill yesterday to regulate the trading of cryptocurrencies. Bloomberg reports that the legalization of cryptos and digital tokens is the country’s effort to strengthen its policies on anti-money laundering (AML). Botswana’s PM, Peggy Serame has, in fact, confirmed the news.
Contrary to the Bank of Russia’s stance against cryptos, Russian Minister of Finance Anton Siluanov suggests regulating cryptocurrencies through banks rather than banning them. However, he agrees with the central bank that cryptocurrencies should not be used as legal tender in the country.
What’s Hot In DeFi
Wormhole is the hottest project in the news today as hackers steal over $320 million worth of funds. The platform confirmed the hack in a series of tweets that over 120,000 wETH tokens were stolen and that they have shut down the network to look for a potential exploit.
However, their latest tweet suggests they have dispatched the vulnerability and are working to get the network up again.
The tax agency of the UK, Her Majesty’s Revenue and Customs (HMRC) updated their guidelines on the taxation of returns from DeFi protocols. The guidance suggests that the taxable amount will be calculated on whether the return is considered capital or revenue. However, it’s a complicated process, as the HMRC itself admits.
Buzz Around NFTs
The gaming retail giant GameStop partners with Immutable X as it taps into the NFT market by launching an NFT marketplace. Both platforms also announced the launch of a $100 million fund to support the Web 3 gaming ecosystem. Earlier, GameStop has partnered with Trace and Cool Effect to reduce the carbon footprint for minting NFTs.
Remember the Asian couple who decided to get married in Metaverse? They are all set to host their Hogwarts-themed virtual wedding in Metaverse on Feb 6th. Their wedding NFT collection is being launched by GuardianLink.io on its marketplace platform, Beyondlife.Club. This NFT collection will have twelve NFTs.
In a Q&A session yesterday, Nintendo expressed interest in the NFTs and Metaverse but wondered what joy they could bring to the community. However, after a while, he cleared that his answer is directed towards Metaverse and not NFTs.
Airdrops and Freebies
A Japanese Metaverse company Torekko is offering an exclusive collection of NFTs. In order to receive the airdrop, a user must have more than 5,000 Torekko ($TRK) tokens in their wallets. Every holder will get a 1st edition Torekko original NFT, which will be directly airdropped to the wallet address.
Sun Crypto, a cryptocurrency designed to enhance the DeFi sector, is distributing Baby DogeCoin tokens worth $40,000. Anyone can participate in the airdrop with a minimum trade of $34 from the 1st of Feb to the 28th of Feb 2022. Learn more about the eligibility criteria on their official page.