Read in the digest:
- The cryptocurrency markets recover after a horrible week as BTC and LUNA lead the way.
- Bitcoin whales hit a record high as the ruble falls to new lows.
- Cryptocurrency exchanges will not block Russian accounts despite calls from the White House and Ukrainian government.
- FTX announces groundbreaking $1 billion fund to improve humanity.
Cryptocurrency Markets Recover After a Horrible Week as BTC and LUNA Lead the Way
After a sordid week, cryptocurrencies have managed to reverse the trend and gone on to rally against all odds. Bitcoin climbed to $43,291, marking a 15% growth over the last 24 hours, while Ethereum straddled the $3K mark with its 11% rally.
Altcoins seem to be the biggest benefactors of the rally as Terra’s (LUNA) value soared by a staggering 26.17% in a day. The weekly charts show a leap of 83.87% as Solana rode the waves to trade at $97.23, which represents an 8% gain over the last day.
The global crypto market cap now stands at $1.92 trillion as of this writing, and transaction volumes have roared upward by 31.39% at $115.76 billion. One prominent reason for the rally is likely that the markets have absorbed the initial shock of the Russia-Ukraine conflict.
Flipsider:
- The spike in asset values served to reduce Ethereum’s market dominance to 18.20%.
- ‘Ethereum killers’ seem to be the biggest gainers of the week’s price rally.
Why You Should Care
Investors are scanning the horizons for any signs of a reversal which typically follows a spike in the value of cryptocurrencies.
Bitcoin Whales Hit a Record High As the Ruble Falls to New Lows
On-chain data indicates that the number of Bitcoin whales have been on the increase since the beginning of Russia’s invasion of Ukraine. According to the data, the number of addresses with balances of over 1000 BTC has risen by 5% and now stands at 2,226.
The reason for the uptick in this metric is thought to be a result of the sanctions slammed against Russia. Wealthy Russians may be turning to Bitcoin as a way to protect their wealth, while the government itself mulls over a switch to crypto in order to circumnavigate the sanctions.
Since the imposition of the sanctions trading volumes between the Russian ruble and USDT reached a new high of $29.4 million. The value of the currency against the dollar has been singing fast in the wake of the removal of the country’s bank from SWIFT.
Flipsider:
- The unregulated nature of cryptocurrencies could allow Russia to continue its conflict with Ukraine despite the sanctions levied against it.
- The president of the European Central Bank has made calls for countries to move swiftly to regulate cryptocurrencies.
Why You Should Care
Cryptocurrency’s use cases are becoming more evident as the world marches inexorably to a decentralized future.
Crypto Exchanges Refuse to Block Russian Wallets As White House Asks Them to Intervene
Cryptocurrency exchanges have rejected the request of Ukraine’s vice prime minister to block the accounts of Russian users. Binance, Coinbase (NASDAQ:COIN) and Kraken have stated that they would not freeze any accounts unless there were legal precedent to do so.
A representative of Binance stated that the exchange will not “unilaterally freeze millions of innocent user’s accounts” and that the asset class was designed to provide financial freedom for the world. Coinbase added that “a total ban would punish ordinary Russian citizens,” while Kraken’s CEO firmly stated that the exchange will focus on “individual needs above those of any government or political faction.”
The White House has called on cryptocurrency exchanges to ensure that Russia is not using the asset class to skirt the imposed sanctions. The call comes as a result of a spike in the number of Bitcoin whales since the start of the armed conflict.
Flipsider:
- Dmarket, an NFT trading platform, has frozen the accounts of users from Russia and Belarus.
- Decentralized cryptocurrency exchanges may be an viable alternative for Russians.
Why You Should Care
Cryptocurrencies operate outside the reach of institutions such central banks, but they are still held under a measure of control by regulators.
FTX Launches Philanthropic Fund
Cryptocurrency exchange FTX has announced the creation of a $1 billion dollar fund with the goal of improving humanity. The fund christened the ‘Future Fund’ will commence with an endowment of $100 million in its first year, with the rest to roll out over the coming years.
The fund has a laser focused goal of improving artificial intelligence (AI), ending global poverty, and reducing the risk of chemical disasters. FTX Founder Sam Bankman-Fried underlined that the fund will use “critical, quantitative thinking and logic to try to do as much good as we can for the future of the world.”
The fund is currently on the hunt for massively scalable projects, and will fund nonprofits and for-profits so long as they are aligned with the exchange’s goals. FTX is one of the largest cryptocurrency exchanges in terms of volume, ranking third behind Binance and Coinbase.
Flipsider:
- FTX has not yet released a statement on whether or not it will freeze Russian accounts after requests were made by senior Ukrainian leadership.
Why You Should Care
Cryptocurrencies and fundraisers are becoming increasingly intertwined, with millions of dollars being raised using cryptocurrencies and cryptocurrency platforms for a range of causes.
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