Crypto News | 24 May 2021 Update

This Week in Crypto (24-29 May)




Dacxi
Corporate


1 June, 2021 | 5 MIN

Billionaire Investor Ray Dalio Prefers Bitcoin Over Bonds

Minting More Coins, Tether Surpasses $60 Billion in Market Capitalization

Mark Cuban Throws his Weight Behind Polygon

Crypto-Friedly Bill Becomes Law in Nebraska 

Crypto Sceptic Trump Advisor Plans to Enter Crypto Market

Past week, the crypto market beamed with more stories of highly-revered, mainstream investors joining the crypto bandwagon. While billionaire investor Ray Dalio expressed his preference towards bitcoin over corporate or government bonds, Mark Cuban openly backed Ethereum scaling and infrastructure development platform, Polygon. Billionaire investor, and erstwhile crypto skeptic, Carl Icahn announced his plans to invest heavily in Bitcoin. The news of a crypto-friendly bill becoming a law in the state of Nebraska gained traction as well. 

Billionaire Investor Ray Dalio Prefers Bitcoin Over Bonds

More and more evidence of traditional HNI investors expressing interest in crypto assets over mainstream financial instruments is coming forward. In such an instance, billionaire investor Ray Dalio recently expressed his trust in Bitcoin as a better buy than bonds. 

Dalio is the co-chairman and co-CIO of Bridgewater Associates, a well-known investment management firm serving institutional clients such as pension funds, endowments, foundations, foreign governments, and central banks. On May 6th, Dalio spoke in an interview that was aired on May 24th. While speaking in this session, Dalio termed Bitcoin as a superior savings instrument compared to government or corporate bonds. Dalio was quoted saying, "I’d rather have Bitcoin than the bond."

The billionaire investor went on to say that with the increasing volume of savings going into crypto, the less powerful governments will become in wielding their authority over ordinary people’s capital. Yet, Dalio’s hopefulness is tempered with caution. Dalio notes that the greatest risk Bitcoin has - as an asset - is its success. While elaborating on what he meant by his statement, Dalio clarified that the surge in popularity and performance of crypto assets may provoke governments for a sweeping crackdown on the sector. 

Minting More Coins, Tether Surpasses $60 Billion in Market Capitalization

Industry experts and analysts have always noticed a positive correlation between the growth in stablecoin markets and volatility in the crypto markets. Increasing volatility on the market results in an uptick in the markets of stablecoin. A similar cause-and-effect digital-asset-backed dynamic has been noted in the crypto market recently. Early May, Musk announced the rolling back of Tesla’s decision to accept payment in Bitcoin, citing environmental reasons. It led to a massive outflow of cryptocurrencies and a fall in their prices. 

Such volatility led Tether (USDT), the largest stablecoin by market capitalization, to grow at an explosive rate. The market cap touched $60 billion and eventually surpassed it, registering a growth of more than 580% from one year ago. 

The growth in Tether’s market cap led to the minting of new USDT tokens at its treasury. The blockchain analytics service Whale Alert estimates that the number of new Tether USDT minted over the past month has been six billion at least. The latest minting of a batch of 1 billion tokens happened on May 24th. 

Mark Cuban Throws his Weight Behind Polygon

Polygon, the first-ever well-structured, easy-to-use Ethereum scaling and infrastructure development platform, now has the backing of billionaire investor Mark Cuban. In another testimony to the trend of well-known investors showing interest in the business of digital assets, Mark Cuban companies website now shows Polygon in their list. Over the recent past, Cuban, like many other high net worth investors, has grown into a more articulate supporter of the digital asset market. He has acknowledged - in no uncertain terms - the beginning of crypto assets as an answer to real demand in the market for its utility. 

Cuban has also endorsed the future of the crypto market, saying that it remains bright. In such a scenario, Cuban’s backing of Polygon hardly comes as a surprise. Formerly known as Matic, Polygon has seen its user-base grow by 75,000 in one week. It has translated into a growth of volume by $1 billion. Cuban endorsing Polygon will help in augmenting and accelerating this momentum. 

Crypto-Friendly Bill Becomes Law in Nebraska 

Witnessing nothing less than a historical development in the legislative history of the state, Nebraska saw a crypto-friendly bill - introduced by Senator Mike Flood - become a law. The Nebraska Financial Innovation Act will permit the regulation of digital asset depositories in the state. To achieve its objective, the act will first lead to the creation of a state banking charter tailored to digital-asset-backed financial services. 

A telecoms-focused blockchain firm, Telcoin, has actively participated in drafting the bill. The company found a like-minded collaborator in Republican senator Mike Flood who had pledged to make Nebraska a Fintech hub earlier this year. In passing the bill, Republican legislators significantly outnumbered the Democrats by 32 to 17. 

By the provisions of the act, banks, building and loan institutions, and similar other financial institutions can now operate digital asset directory businesses for which the state of Nebraska will facilitate charter, operation, supervision, and regulation.

Crypto Skeptic Trump Advisor Plans to Enter Crypto Market

In continuation to the trend of noted investors getting into crypto, billionaire Carl Icahn is contemplating investments into crypto that may go up to as high as $1.5 billion. Apart from his role as a noted investor, Icahn also served as an advisor to the Trump administration.

Many industry analysts are considering Icahn’s interest in digital assets as the unleashing of crypto’s real potential. In 2018, Icahn had expressed his pessimism towards crypto assets by terming them “ridiculous." Icahn went on to add that, “he wouldn’t touch that stuff."

With such a history of crypto aversion, Icahn’s decision to invest nearly 10% of his worth into the crypto market comes as a big surprise to many. Yet, it is also a reinforcement to speculations around crypto’s long-term winning potential. Icahn’s net worth, at present, is $15.6 billion.  



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