From Bitcoin finally staying above $35k to SafeMoon execs getting sued, here is a 3-minute breakdown of things that happened in crypto today.
Co-author: Davier M
Well, well, well, looks like Christmas came early this year for crypto investors. After a long and harsh crypto winter with spectacular downfalls of popular crypto firms, the markets are finally giving us a nice green streak just in time for the holidays. I guess all that wishing upon stars and hoping for a Bitcoin-above-35k miracle finally paid off.
CoinMarketCap is here as always with the day's top crypto stories. Grab a warm cup of cocoa, get cozy, and let's dive into the latest headlines.
Today we've got:
- The Fed held rates and crypto investors rejoiced - markets rallied!
- SafeMoon execs got arrested on fraud charges for shady activities. No profits for investors as promised - just big losses! But what are the exact charges?
- Elon Musk warned NFTs could go "bye-bye" if servers crash. Do NFTs have a point of failure?
- Solana pumped 20% while Bitcoin and Ethereum just stretched their legs. But can the rally last?
- PayPal got a pat on the back from UK regulators to restart crypto purchases. They promise to be on their best behavior under the new rules. A win for both compliance and crypto?
- Visa absolutely nailed its test of a Hong Kong digital currency pilot. Is the mainstream crypto adoption coming soon?
Now let's unwrap the details on each of these…
Fed Holds Rates
The Fed kept rates unchanged and crypto investors shouted “Hallelujah!” Bitcoin smiled, moving above $35k and gaining over 2% after the news. Ethereum and other major cryptocurrencies also breathed a sigh of relief with the Fed's decision.
For now, the Fed feels inflation is under control enough to hold steady. Crypto investors are cheering the Fed's stance and the boost it gave to prices. Read the full story!
SafeMoon Sued for Fraud
Authorities charged SafeMoon execs for shady activities that misled investors resulting in billions of losses.
But I guess, there is still a bright side…?
Though details are still limited, it sounds like authorities have built a strong case. SafeMoon promised profits but investors got heavy losses instead.
The full story has yet to emerge but the outlook appears grim for SafeMoon at the moment. Here are the details of the charges against these execs!
Elon Calls Out NFTs
Elon Musk raised concerns about how NFTs store their underlying assets during his Joe Rogan interview. He warned if servers go down, those expensive JPEGs go bye-bye.
It echoes problems seen last year when some NFTs vanished due to outages. Though Elon makes a good point, not all NFTs are exposed as he described.
Still, Musk makes a thought-provoking point about potential NFT risks. Read the full story!
Solana Outperforms Large Caps
Solana rallied over 20% this week, outpacing Bitcoin and Ethereum. Investors are intrigued by Solana's parabolic gains as an Ethereum competitor. It became the 7th largest crypto asset in terms of market value.
With interest surging in Solana and its apps, the rapid gains may continue. However, such vertical takeoffs can also signal volatility. Solana is having a moment but sustainability remains challenging long-term. Read the full story!
And that brings us to our Word of the Day!
It’s Large Cap!
So what are large caps?
Large caps are assets (and in this case, cryptocurrencies) that have a market capitalization of or above $10 billion are called large cap tokens. The market capitalization of a project’s token can be calculated by multiplying the currency price with its circulating supply.
Based on market capitalization, crypto tokens can be classified into three categories: large, mid, and small cap. One of the purposes of this categorization is to let investors know what they are investing in.
The market capitalization of a project gives a lot of context to investors. While every project is different, market capitalization lets investors better judge the financial standing and the trust of the crypto community in a specific project.
But why do investors prefer large caps over small caps? Check it out!
Now back to our daily stories!
PayPal Gets UK Crypto Nod
After hitting a pause on crypto services, PayPal got the green light from British regulators. This approval allows them to reboot UK crypto services.
PayPal promises to carefully validate all crypto-related promotions under the new rules. The UK continues to be proactive about prudent crypto oversight to protect consumers.
Regulators will be watching closely, but so far they seem pleased with PayPal's compliance. Overall it's a positive sign for crypto oversight done right. But does this affect the global crypto market? Read more!
Visa Completes e-HKD Test
Visa aced its trial of a new Hong Kong CBDC. It provided near real-time bank transfers on its blockchain network, far faster than old systems. The e-HKD pilot also demonstrated secure encryption for private transactions.
Next up, Visa will explore tokenizing assets like property and automated finance services. While CBDCs have drawbacks, Visa's platform displayed great potential. This could become the global standard for mainstream digital currency. Here are the details of the test!
There you have it - the top crypto updates for today! Check back tomorrow as we analyze the latest news and trends.
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