Blockchain
How the Ukrainian War Pushed Up The Price of Cryptocurrencies by Doctor Troller aka Andrew Brown
In the month following the outbreak of war in Ukraine, Bitcoin rose 25% and Ethereum around 34%.
Following the sanctions imposed on Russia and its businesses the ruble collapsed and crypto exchanges saw a substantial rise in transactions from rubles into crypto.
These transactions weren’t just from wealthy oligarchs trying to save assets from confiscation overseas, but also regular Russian citizens trying to save their cash assets from being devalued in early March when the ruble fell off a cliff.
The worry was that many Russian oligarchs would escape financial sanctions via crypto, but crypto entrepreneur Doctor Troller, aka Andew Brown says this isn’t that easy to do.
He said: “Crypto transactions can all be tracked, so large movements of assets would be spotted by exchanges and authorities. Big exchanges will insist on doing KYC (Know Your Customer) due diligence on transactions and will have global watchlists for banned Russian oligarchs and can block transactions from IP addresses belonging to sanctioned individuals or entities.
“That’s not to say that they can’t get third-parties to attempt transactions for them but they would be wary of trusting others with their assets in such a way.”
Brown thinks the surge in prices at the start of the war came from large numbers of regular Russians try to sell off their rubles for less volatile crypto-currrency like Tether, a stablecoin which is tied to the price of the US Dollar. At the time of going to press (19th April 2022) there were no laws preventing exchanges taking rubles from ordinary Russians trying to use crypto as a lifeline to protect their assets.
Brown said: “The volume of trade in Tether went up considerably in early March when sanctions started to bite and the ruble halved in value in a week.”
Since the start of the war the huge increases on cryptocurrencies have levelled out and are now just above what they were at the start of the war, although the volume of trade in Tether is still up 12% on pre-war levels. There are still volatile movements in the market for other digital currencies, which means that crypto is still a risky investment even in times of war.
It’s not just Russians that have been using cryptocurrency since the war started at the end of February. The Ukrainian government has received over £100 million in cryptocurrency donations for their war effort from well-wishers around the world.
Brown said: “Ukrainian officials posted addresses for two crypto wallets on their twitter account which attracted more than $10m in four days and now over 10 times that amount in the past month. The authorities in Ukraine have said it will be spent on daily rations and bullet-proof vests and helmets, and they are keen to use blockchain technology to help rebuild their country after the war is over. So hopefully crypto currencies can be instrumental in helping those who have lost so much in the past month.”
A recent warning from the FBI regarding a crypto money transmitter seems to be aimed at the Samourai Wallet. This development highlights the increasing scrutiny and regulatory challenges faced by privacy-focused cryptocurrency wallets and services.
The FBI warning raises concerns about the use of certain cryptocurrency wallets that prioritize user privacy and anonymity, potentially enabling illicit activities such as money laundering and terrorist financing. While the warning does not explicitly name any specific wallet or service, the language used suggests that the Samourai Wallet may be the target of the advisory.
Samourai Wallet is known for its focus on privacy and security features, including coin mixing and stealth addresses, which aim to enhance user privacy and protect against surveillance and tracking. However, these features have drawn the attention of law enforcement agencies and regulators, who are increasingly concerned about their potential misuse by criminals.
The FBI warning underscores the challenges faced by privacy-focused cryptocurrency wallets in navigating regulatory compliance and law enforcement scrutiny. While these wallets aim to empower users with greater control over their financial privacy, they must also address regulatory requirements and law enforcement concerns to avoid legal and reputational risks.
As the cryptocurrency industry continues to evolve, privacy-focused wallets like Samourai Wallet will need to strike a balance between privacy and compliance, ensuring that they can provide robust privacy features while also addressing regulatory concerns and maintaining transparency with authorities. This delicate balance is essential to foster trust and confidence among users and regulators alike, ultimately enabling the continued growth and adoption of privacy-enhancing technologies in the cryptocurrency space.
Source: cointelegraph.com
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Blockchain
Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets
Pantera Capital is reportedly planning to raise $1 billion for a new fund that offers exposure to various crypto assets, as reported by Blockchain.News. This ambitious fundraising initiative underscores Pantera’s continued confidence in the potential of the cryptocurrency market and its commitment to providing investors with diversified investment opportunities in the digital asset space.
The new fund from Pantera Capital aims to capitalize on the growing demand for exposure to cryptocurrencies and blockchain-based assets among institutional and retail investors. By offering a comprehensive portfolio of crypto assets, the fund seeks to provide investors with access to a wide range of investment opportunities, spanning cryptocurrencies, tokens, and other digital assets.
Pantera’s decision to raise $1 billion for the new fund reflects its optimistic outlook on the long-term growth prospects of the cryptocurrency market. With increasing mainstream adoption and institutional interest in cryptocurrencies, Pantera sees significant potential for value creation and capital appreciation in the digital asset space.
As one of the leading blockchain-focused investment firms, Pantera Capital is well-positioned to attract capital from investors seeking exposure to the cryptocurrency market. The firm’s track record of successful investments and its experienced team of investment professionals are likely to bolster investor confidence and support for the new fund.
Pantera Capital’s plans to raise $1 billion for its new fund underscore its commitment to driving innovation and growth in the cryptocurrency market. As the fund attracts capital and deploys it into promising investment opportunities, it is poised to play a key role in shaping the future of the digital asset ecosystem.
Source: blockchain.news
The post Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets appeared first on HIPTHER Alerts.
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