There are many acronyms and technical jargons that the cryptocurrency community uses, but there is one concept that is easy to understand for even liberal-arts majors: FUD. It all began with Bitcoin’s reputation for being the currency of choice by drug traffickers, money laundering, tax cheats, and malware ransomists. It stands for “Fear, Uncertainty and Doubt”, and it’s a catch-all term used to dismiss the seemingly endless list of criticisms and concerns that continue to plague the digital-asset class, even as it continues to grow at an incredible pace. The greatest threat to crypto-assets is the uncertainty, fear and doubt surrounding the actions of governments around the globe.
China
China’s decision not to allow crypto transactions and mining and the intensifying scrutiny of crypto assets by the Securities and Exchange Commission and other US regulators has created a peak FUD moment in crypto. A skyscraper of FUD was built upon that foundation. It now includes concerns about crypto’s rapacious use of energy and its potential to spread contagion into the traditional financial system as tokenised assets grow in value to the trillions. It won’t last long, at least not for too long. The remarkable thing about growing FUD is that it doesn’t seem to cause much damage to crypto assets. It’s almost like the “wall of worry” that never seems a to hurt the stock markets.
Bitcoin and other coins were actually hit harder this week as concerns about China Evergrande Group spread to all markets. Although Bitcoin is down 5% due to China’s latest ban of all crypto transactions and its vow to eliminate mining of digital assets from the market, it’s just one day in the virtual office of this volatile asset class. Stephane Ouellette is the CEO and cofounder of FRNT Financial Inc. a crypto-focused capital market platform. This is “because of the anti establishment mentality that crypto was birthed out of.” There is also a Chicken Little element in the spread of FUD. Many past purported threats to the asset type never came to fruition. The FUD revolved around the US infrastructure bill that Congress passed last month. It contained mandates for tax compliance for cryptocurrency brokerages.
Cardano and Solana
Cardano and Solana, two of the most recent coins, more than doubled. It didn’t stop the bullish sentiment in the crypto-community. Bitcoin, Ether, and other coins continued to rally. According to CryptoCompare, August volumes on Binance, the largest crypto exchange in the world, increased by 65% and open interest in Ethereum futures rose 41%. 99Bitcoins.com monitors what it considers “Bitcoin obsidians,” or hot takes declaring that the token is worthless by writers and websites that have large audiences. Zack Voell (director of research at Compass Mining) said that the bad news is not unexpected. It comes with all new technologies.
According to their statistics, Bitcoin has been killed 430 times. According to their tally, it has died 430 times. He said, “There’s just more attention on it and especially a lot of attention focused on trying to separate the negatives from the industry.” The industry’s players agree that regulations could change the way market participants conduct transactions. However, any news about the asset class’s death is exaggerated. It will change the way people interact with these assets, and how they interact from different jurisdictions. He said that he didn’t believe the assets would disappear overnight.
Brian Mosoff, CEO at Ether Capital Corp., a Canadian crypto-investment company, stated that “You can’t regulate at protocol level, which means you can’t change the code for Bitcoin.” He spoke on Bloomberg’s “What Goes Up”. “The access points and marketplaces are going to be regulated here,” said Brian Mosoff, CEO of Canadian crypto-investment firm Ether Capital Corp. Art Hogan, Chief Strategist at National Securities, believes there may be a “whistling beyond the graveyard” mentality among crypto investors as they ignore what could end up being a major shift in regulatory scrutiny. “But that is likely to change pretty abruptly. He said, “It just hasn’t settled in yet.”
Cryptocurrencies
Cryptocurrencies are known for their abrupt movements. They are never calm or steady. Ray Dalio, Bridgewater Associates’ luminary in the world of hedge funds, spoke out on Bitcoin this week on Bloomberg TV. He called it a “tremendous achievement” from a technology standpoint. It’s either volatile move higher or it’s often followed by volatile moves lower.” One thing is certain: the stakes are increasing as more big-money investors from traditional market – such as hedge-fund billionaire Steve Cohen- become crypto believers. Even that praise was full of FUD. He said that if “successful”, there’s a risk that the government will outlaw it. (c) 2021 Bloomberg
Chinese fud is a favorite, and I’ve made it many times since I can’t recall when. Geez! Geez! This is becoming a joke. It’s easy to forget that the Chinese are serious now. This fud, as always, will pass, just like before. Even though I am not a Bitcoin enthusiast or supporter, I have enough intelligence to see the potential for huge profit if one is smart enough to capitalize.
Augur MARKET
The cryptoeconomy’s nearly all high-profile decentralized prediction industry, Augur (REP), binance.
In the review, the scientists noted that having less Augur user interfaces (UI) up to now has resulted in a bottleneck effect where customers are relying on 1 of 2 platforms, augur. This pigeonhole powerful can facilitate manipulation since synthetic trade volume can more easily improve the profile of attackers’ marketplaces.
Binance Study noted that volume was reduced enough on the system that, at the very least for now, an broker could use a relatively little bit of ether (ETH) to quickly raise the exposure of attack marketplaces. Which are confiscated if marketplaces resolve as “invalid,” are little enough that malicious brokers can rather cheaply create a lot of problematic markets.
Are you aware that design flaw attack, the agent would then artificially boost awareness round the market with fake volume, drawing in organic bettors. The attacker, longing for an eventual invalid market determination, then sells shares of the reasonable outcome at what is apparently a discount.
Where you can Go From Here?
Binance’s researchers credited Augur’s builders with being conscious of these issues but argued that users may be vulnerable in the interim:
“With their credit, the Augur team has recently identified many of the considerations mentioned,
However, yet no official release of upgrades for a version 2 has been announced, ”
The authors help with their own ideas regarding the way the Augur team might start addressing the look flaw attack. For just one,
The researchers also said enforcing clarity around “ambiguous terms” like “time-zones, currencies, denominations, and units” could possibly be fruitful in stopping the forms of markets that build the foundations for design flaw attacks:
“If the UI were made to create default times, currencies, and denominations, the opportunity of accidentally making an invalid market will be much lower.”