Wednesday , June 29 2022
Home / Andrew Throuvalas

Andrew Throuvalas



Articles by Andrew Throuvalas

Ray Dalio Still Holds ‘Tiny Percentage’ of Portfolio in Bitcoin

May 24, 2022

Bridgewater Associates founder Ray Dalio confirmed on Tuesday that a “tiny percentage” of his portfolio is allocated to Bitcoin. He acknowledged how it could play a special role in today’s worldwide inflationary environment, among a broader set of safe-haven assets.
Cash is Still Trash
In conversation with CNBC’s Andrew Sorkin, Dalio reiterated his “cash is trash” thesis, due to the speed at which its holders are losing buying power. Annual CPI inflation in the United States clocked in at 8.3% in April – only 0.2% down from the previous month’s 40-year high.
To combat this, the Federal Reserve has resolved to raise interest rates more aggressively than it has for the past two decades. However, this monetary tightening is already hammering equities, which Dalio claims are

Read More »

Tether Confirms Fully Backed Reserves in Latest Assurance Report

May 19, 2022

Tether’s USDT stablecoin is beyond fully backed, according to the latest assurance report provided by accounting firm MHA Cayman. The firm found that Tether’s total assets are worth at least $82,424,821,101, while its total liabilities (including issued stablecoins) amount to $82,262,430,079.
The State of Tether’s Reserves
The report’s figures match those in Tether’s unaudited Consolidated Reserves Report (CRR) as of March 31st, 2022. This ensures that Tether’s USDT stablecoin – the largest stablecoin available by market cap – is indeed fully backed.
Stablecoins are cryptocurrencies value pegged to traditionally “stable” fiat currencies, such as the US dollar. For a stablecoin to function, it must be redeemable at all times for assets of equivalent worth. Therefore,

Read More »

Over 10 Million CashApp Accounts Have Bought Bitcoin: Block’s Q1 Letter

May 19, 2022

More than 10 million people have now bought Bitcoin using Jack Dorsey’s CashApp, according to Block’s Q1 2022 shareholder letter. The app generated $624 million in gross profit for the company over that time, $43 million of which came from Bitcoin sales.
Expanding Bitcoin Access
The company states that it is focused on expanding awareness and access to Bitcoin among its customers, in order to bolster the network’s adoption. Block Head Jack Dorsey – who stepped down as CEO of Twitter in May – is very bullish on Bitcoin becoming the world reserve currency.
In April, CashApp announced its integration with the lightning network, granting customers access to immediate and free Bitcoin transactions.  It also announced its new “Get Paid in Bitcoin” feature, which converts its

Read More »

Mike Novogratz Breaks Silence on Terra’s Collapse

May 18, 2022

Mike Novogratz – billionaire investor and CEO of Galaxy Digital – has issued a statement addressing the recent meltdown of the Terra ecosystem. He highlights lessons he’s learned from the situation but reinforces his faith in the crypto economy as a whole.
The Idea That Failed
In a letter to shareholders and the crypto community, Novogratz lamented the loss of over $40 billion in wealth suffered by LUNA and UST investors alike. The UST stabilization mechanism meant to maintain its dollar peg only ended up devaluing LUNA into worthlessness.
“UST was an attempt at creating an algorithmic stable coin that would live in a digital world,” wrote Novogratz. “It was a big idea that failed.”
Not only has the collapse “dented confidence in crypto and DeFi,” but it also burned part

Read More »

Meta Files “Meta Pay” Trademark Applications Hinting at Cryptocurrency Services

May 18, 2022

Meta Platforms Inc. – the owner of the Meta (formerly Facebook) brand – filed for five trademark applications on Friday under the name of “Meta Pay”. They appear to be dedicated to a new digital payments platform that will integrate various cryptocurrency and blockchain-related products.
Examining “Meta Pay”
According to the applications filed on May 13th, Meta Pay is described as an “online social investment network.” It will allow users to conduct trades using digital currencies, blockchain assets, and crypto tokens, while providing user authentication and identity validation services.
Another description calls it “downloadable computer software” designed for “e-commerce”, including ordering and purchasing goods and services. Once again, it makes mention of “validating

Read More »

Expectations v Reality: Vitalik Buterin on His Vision for Ethereum 

May 17, 2022

Vitalik Buterin – co-founder of Ethereum – outlined some of his conflicting realizations and beliefs around cryptocurrency on Monday. He detailed the way that his idealistic vision for how Ethereum should grow – and what it should become – is failing to match reality.
Comparing Ethereum and Bitcoin
The programmer – who has never hesitated to criticize Bitcoin in the past – began his lengthy Twitter thread with a display of admiration for the primary crypto network. While Bitcoin successfully emphasizes “long term stability”, he believes Ethereum will require significant “active short term change” to be able to mimic that.
Compared to Ethereum, Bitcoin upgrades and changes far less frequently, and its community is extremely resistant to hard fork attempts. For example,

Read More »

Jack Dorsey Responds to SBF’s Comments on Bitcoin Scaling and Proof of Work

May 17, 2022

Jack Dorsey was not pleased with FTX CEO Sam Bankman Fried (SBF)’s recent criticisms of Bitcoin’s viability as a payments system. The Block Head confronted him yesterday over his failure to acknowledge the lightning network and provided defense for the necessity of mining.
SBF’s Interview
The conflict began when SBF responded to some backlash over his comments about Bitcoin in an interview with the Financial Times. While he stood by his claim that Bitcoin cannot sustain high transaction volume, he acknowledged the lightning network as an alternative, alongside the cryptocurrency’s store-of-value role.
Jack Dorsey replied with skepticism, however, pressing the CEO on why he didn’t acknowledge the lightning network during his FT interview in the first place.

and you didn’t

Read More »

Bitcoin Has Failed as an Alternative Money, says Former Fed Chairman

May 16, 2022

Ben Bernanke – former chairman of the U.S. Federal Reserve – does not believe Bitcoin or other cryptocurrencies can succeed as an alternative money. He claims their prices are too volatile to serve as a practical means of exchange and lack the underlying use cases to serve as stores of value.
Bitcoin is for Criminals, Says Bernanke
In a recent interview with CNBC’s Andrew Sorkin, Bernanke claimed that cryptocurrencies have been successful as a “speculative asset”. However, as substitutes for fiat currency, they haven’t lived up to the hype.
“If Bitcoin were a substitute for fiat money, you could use it to go buy your groceries,” he argued. “Nobody buys groceries with Bitcoin because its too expensive, and too inconvenient to do that.”
He added that the price of groceries

Read More »

Do Kwon Officially Proposes Hard Forking Terra to Revive Ecosystem

May 16, 2022

Terra co-founder Do Kwon has unveiled a detailed plan to hard fork Terra and revive the network’s ecosystem. It will involve abandoning its algorithmic stablecoin, and launching a new cryptocurrency to replace its old governance token, LUNA.
The proposal is a follow-up to Kwon’s informal plan he posted last week, in which he admitted that UST was a failed stablecoin, and that the blockchain needed a fresh restart.
It roughly reflects his original plan to distribute 1,000,000,000 new LUNA tokens to prior TerraUSD (UST) and LUNA holders as compensation for their recent losses.
UST now trades at just a tenth of its intended dollar value, while LUNA has collapsed to virtually zero following its hyperinflation.
The current, devalued LUNA token will have its ticker changed to

Read More »

Portugal to Begin Taxing Cryptocurrencies, says Finance Minister

May 16, 2022

Portugal’s Finance Minister Fernando Medina has confirmed plans to apply capital gains taxes on cryptocurrency profits. Though he has not committed to a specific date, he stressed that there can no longer be gaps within the tax system around transactions involving digital assets.
Ending the Tax Haven?
Cryptocurrencies are currently subject to very few tax rules in Portugal, making the country something of a crypto hub. However, the government finally committed to creating a fiscal framework for these assets on Friday, which will cover profits made through the sale of Bitcoin, among other things.
Minister Medina said it will examine relevant frameworks already created in other jurisdictions when building its own. He personally plans to prioritize “justice” and “efficiency”,

Read More »

Do Kwon Proposes Revival Plan for Terra Ecosystem

May 13, 2022

Terra co-founder Do Kwon has unveiled a revival plan for the Terra community, which will involve abandoning the UST stablecoin entirely. Instead, he suggests that validators reset network ownership under a new token by forking the chain, and distributing it to fairly compensate all damaged parties.
UST Has Failed, says Do Kwon
In a forum post on Friday, Kwon argued that Terra (LUNA) has been diluted to such a degree that its joint ecosystem with TerraUSD (UST) can no longer be rebuilt – even if UST’s peg somehow recovers.
UST was the former third-largest stablecoin pegged to the US dollar, while LUNA was a governance token that provided support for UST’s peg. Each coin has collapsed by 84% and 99% this week, respectively.
The co-founder claims the collapse has so

Read More »

CryptoCom Reverses LUNA Trades From May 12th

May 13, 2022

In the aftermath of Terra (LUNA)’s price collapse, multiple crypto exchanges have begun preventing users from buying or selling the token. However, Crypto.com has taken measures a step further, opting to reverse LUNA trades taking place in a certain time frame on May 12th.
In an “important update” on Friday, CryptoCom claimed that users who traded LUNA in the hour from 12:40 – 13:39 (UTC) were “quoted an incorrect price”.
Trading of the token was halted after the exchange detected the error, and remains frozen at the time of writing.
However, the exchange has also stated that all LUNA buys and sells within that hour will be reversed, and affected users will be notified by email.

“Affected users will be credited USD $10 in CRO for the inconvenience caused,” reads the

Read More »

Raoul Pal Gives His Macro Analysis of the Crypto Bear Market

May 12, 2022

Raoul Pal – CEO of Global Macro Investor – is predicting a “nasty recession” and “liquidation writ large” within the next few weeks, as the Federal Reserve continues tightening monetary policy. He believes the current panic within the crypto markets is similar to that seen during the bear market of June 2021, and the flash crash of March 2020.
The Effect of the Fed
In a Twitter thread on Thursday, Pal argued that global markets across the board are in for a bruising – not just crypto. “Layoffs are coming, as are house price falls,” he said, claiming that demand is collapsing due to the “largest monetary tightening in history.”
Last week, the Federal Reserve announced a 0.5% interest rate hike – the greatest monthly hike since May of 2000. Both the crypto and stock markets

Read More »

Terra Blockchain Officially Halted to Prevent Governance Attack

May 12, 2022

Terra validators have reportedly decided to freeze Terra’s blockchain due to LUNA’s collapsing market price. The team argues that at such low costs, a whale buyer could easily commit a governance attack on the network.
The chain was officially frozen at block 7,603,700, making native transactions on Terra’s blockchain impossible.
Terra (LUNA), which has seen a price collapse of over 99% within the past week, also serves as the protocol’s governance token.
Governance tokens let holders submit and vote upon the governance proposals related to upgrading a blockchain protocol.
However, if one gains control of over 50% of a governance token’s supply, he could theoretically alter the protocol in a malicious way. Fortress protocol was struck by such an attack last week when a

Read More »

Axie Infinity (AXS) Releases Origin Android APK

May 12, 2022

Axie Infinity Shards (AXS) appear to be one of the only cryptocurrencies to trade up slightly in the past 24 hours, despite the current bear market. Buyers appear optimistic over the blockchain game’s Origin Android APK launch, announced over Discord on Thursday.
According to the announcement, the update will include UI improvements, and a “full HD graphic” option in the game’s settings.
It will also make the game run at a faster pace by having all status and rune effects activate simultaneously. Bug fixes include decreased volume at the start of the battle and a patch to prevent users from looking at their next drawn cards without spending energy.
Finally, it will change the turn that Bloodmoon starts to turn 15. Bloodmoon is a battle effect that deals damage to all axies

Read More »

Grayscale Holds Private Meeting With SEC Discussing Bitcoin Spot ETF Transition

May 11, 2022

Grayscale – the world’s largest Bitcoin fund – reportedly met with the Securities and Exchange Commission (SEC) in private last week. The company argued that the commission should approve its transition into a Bitcoin Spot ETF to unlock over $8 billion in value for its investors.
Why Convert Grayscale?
In a presentation shared with CNBC, Grayscale claimed that a Bitcoin spot ETF would be “no riskier than a Bitcoin futures ETF”. The company believes that both spot and futures markets are influenced by the same inputs, due to their significant overlap in constituents and tightly correlated prices.
Grayscale currently holds over 640,000 Bitcoin on behalf of over 850,000 US accounts. That’s about 3.4% of Bitcoin’s total supply, worth $18.6 billion at the time of writing.
The

Read More »

FASB Votes to Review Accounting Rules for Crypto on Balance Sheets: Saylor

May 11, 2022

The Financial Accounting Standards Board (FASB) has unanimously voted to review accounting rules for exchange-traded digital assets in the United States. This could have major implications for corporations seeking a regulatory pathway for better managing cryptocurrencies on their balance sheets.
Celebration Among Bitcoiners
Microstrategy CEO Michael Saylor claimed the result of the vote was 7-0 over Twitter on Wednesday. Though the official result is yet to be posted by the board itself, the FASB’s website shows that a discussion for digital asset accounting was indeed scheduled for May 11th. The discussion itself was live-streamed this morning, but archival footage of the meeting hasn’t been uploaded.
Saylor offered congratulations to the Bitcoin community for the result.

Read More »

Bitcoin Breaks Below $28.6K: Recording Its Lowest Level Since January 2021

May 11, 2022

Bitcoin’s price has now broken well below $30,000, touching down to $28,228 just moments ago. That’s Bitcoin’s cheapest price since January 4th, 2021, retracing some of the gains made in its early bull market.
On Wednesday at 20:50 UST, Bitcoin’s price slipped from $29,000 to $28,228 within less than 5 minutes.
The price remains at $28,551 at the time of writing, down about 8% on the day.
The rest of the crypto market is also struggling with Ethereum barely holding $2000 as a support level.
Traders are getting wiped amid the chaos: within the last 24 hours, over $1 billion have been liquidated from the crypto market, according to Coinglass.
The price has even breached Bitcoin’s low as of June 21st, 2021 at $28,600.
This puts MicroStrategy a step closer to its margin call

Read More »

LUNA Collapses Below $16 as TerraUSD Remains Unpegged

May 10, 2022

Terra (LUNA)’s price collapse from Monday continues, now tracing down beneath $16 per coin. Meanwhile, the network’s dollar-pegged stablecoin TerraUSD (UST) continues trading at just $0.8, far below its intended $1.00 value peg.
LUNA trades at just $15.84 at the time of writing, down 63.13% in the past 24 hours, and 80.74% over the week.
The cryptocurrency doubly serves as a governance token for the Terra blockchain, and the reserve asset made to preserve the stability of its various stablecoins.
The most popular stablecoin – TerraUSD – began drifting off of its dollar peg on Sunday, as noted by the Luna Foundation Guard (LFG). To fix the problem, the organization tried deploying some of its Bitcoin reserves on the market to prop up UST’s price.
However, these reserves

Read More »

Townsquare Media Purchased $5 Million in Bitcoin During Q1 2022

May 10, 2022

Townsquare Media (NYSE: TSQ) – a New York-based radio network and media company – revealed that it purchased $5 million in Bitcoin during Q1 2022 in a recent SEC filing. It claims to believe in the “long-term potential” of Bitcoin – despite being down on its current investment.
The filing explains that the company had purchased $5 million in Bitcoin before March 31st of 2022. Its coins are secured through third part custodial services.
That said, the Townsquare acknowledges an impairment loss of $0.4 million by the end of the quarter, due to Bitcoin’s declining fair value price. Similarly, MicroStrategy registered a whopping $170 million loss on its own Bitcoin holdings during the same period.
Conversely, had the company sold its Bitcoin at the end of March, it would have

Read More »

MicroStrategy Gives Lowest Possible Bitcoin Price to Require Maintenance Collateral

May 10, 2022

With Bitcoin’s price on the decline, rumors have buzzed about whether MicroStrategy risks getting liquidated on its $205 million Silvergate loan. On Tuesday, company CEO Michael Saylor cleared the air on how much collateral that loan requires, and how much breathing room they have.
MicroStrategy’s Bitcoin Loan
As Saylor clarified over Twitter, the loan requires maintenance collateral worth $410 million to stay active – which is twice the value of the loan itself.
MicroStrategy took out its Silvergate loan in late March and used the funds to increase its Bitcoin position by 4,167, up to 129,218 BTC in total. Interestingly, the loan is Bitcoin collateralized, meaning it’s backed by the company’s existing crypto holdings.
As the price of Bitcoin drops, it’s common for traders

Read More »

El Salvador Buys Another 500 Bitcoin Amid Market Pullback

May 9, 2022

El Salvador president Nayib Bukele has announced another Bitcoin purchase amid the current crypto market turmoil.
Over Twitter, Bukele claimed to have bought exactly 500 Bitcoin for an average of $30,744 dollars each on Monday.
The president, who has admitted to making Bitcoin buys from his phone using the country’s money, referred to the purchase as “buying the dip”.
As of today, Bitcoin has closed its 6th consecutive red weekly candle for the first time since 2014.
It’s also reached the lowest price point since July of 2021 and is more than 50% below its all-time high.
Bitcoin collapsed as low as $31,000 earlier today, wiping $300 million in open interest from the crypto markets within an hour. It now trades even lower at $30,972 at the time of writing.
Bukele has never

Read More »

Over $300 Million Liquidated in an Hour as Bitcoin Plunged to $31K

May 9, 2022

More carnage swept through the crypto markets today, with another $300 million worth of trades liquidated within an hour. This happened as Bitcoin’s price plunged as low as $31,000 – its lowest level since July 2021.
According to Glassnode, exactly $314.3 million in trades have been cleared within the last hour and $724.99 million within the last 24 hours.
Interestingly, about half of the lost positions were on ETH trades ($154 million) while significantly less were lost on BItcoin trades ($92 million).
Bitcoin was trading above $34,000 at the start of Monday, yet steadily descended throughout the day. Between 16:15 and 17:00 UTC, it then collapsed by $1500 down to $30,990, before rebounding to $31,800 at the time of writing.
With the recent fall, over $300 billion have

Read More »

Fortress Protocol Hacked for $3 Million, Drained of All Funds

May 9, 2022

Fortress Protocol – an algorithmic money market and defi lending protocol – has been drained of all funds following an oracle manipulation attack. The stolen crypto has since been bridged from Binance Smart Chain to Ethereum and mixed using the privacy protocol Tornado Cash.
Buying Out the Protocol
Blockchain security firm CertiK shared information about the hack with CryptoPotato on Monday. It began with the hacker using ETH to purchase a substantial amount of FTS – the governance token managing the FTS protocol.
The quorum votes on Fortress loans’ governance contract is 400,000 FTS. That was worth just $18,000 at the time of the hack and represented a smaller number of tokens than the attacker held. In other words, he now held the authority to pass any protocol change

Read More »

Over 100,000 Cubans Are Now Using Cryptocurrency (Report)

May 8, 2022

Many Cubans are now using cryptocurrencies as an alternative means of exchange due to limitations imposed by US sanctions on the country’s traditional payment rails. Over 100,000 Cubans are reportedly using digital assets, largely thanks to mobile internet reaching the country just three years ago. 
Cuba’s Crypto Economy
NBC News recently interviewed Nelson Rodriguez – a Cuban cafe owner who now accepts both Bitcoin and Ethereum for payments. He said he believes in the “philosophy” of crypto – often associated with free-market ideals, property rights, borderlessness, and censorship resistance. 
Cuba, by contrast, is governed by a Communist Party, and citizens are unable to use internationally accepted debit and credit cards due to American sanctions. Paypal, Revolut, and

Read More »

Historical First: Portuguese Home Purchased Directly Using 3 Bitcoin

May 6, 2022

The first-ever Portuguese real-estate purchase has been settled for Bitcoin – without involving a conversion back to fiat money.
Buying a Home With Bitcoin
As reported by the local news outlet Idealista, the deal was for a T3 apartment in Braga, costing the buyer exactly 3 Bitcoin. That’s about 102,000 euros, or 108,000 dollars, at current prices.
Until last month, purchasing real estate using cryptocurrencies required buyers to first convert their holdings to euros. However, Portugal’s Order of Notaries has since established clear rules on how to form deeds for real-estate sales made directly in digital assets.
“This deed represents a historic milestone, the transfer of a digital asset to a physical asset – a house – without any conversions to euros,” said real estate

Read More »

A Third of All Britons Have Now Used Crypto, Says Coinbase Report

May 5, 2022

Crypto adoption in the United Kingdom continues to rise, with a reported 33% of the country’s consumers having previously invested in such assets. The figure is up 4% from six months prior, and is second in Europe only to the Netherlands’ whopping 47% statistic.
Britons Buying Bitcoin
The stat was gleaned from a bi-annual analysis conducted by Qualtrics, on behalf of cryptocurrency exchange Coinbase. It found that 61% of Britons who already own cryptocurrency plan to increase their positions within a year, up from 54% in October 2021.
Of that group, about two-thirds plan to increase their position in the cryptocurrency they are already holding, versus just 23% that wish to expand into new assets.
This is perhaps a reflection of the “tribalism” in the crypto space noted by

Read More »

Bitcoin Crashes Below $37K to 2.5-Month Low: Over $100M Liquidated In One Hour

May 5, 2022

Bitcoin’s price took a nosedive on Thursday after stocks retraced gains made following yesterday’s Federal Open Markets Committee Meeting (FOMC). It fell to $36,520 – the cryptocurrency’s lowest price since Russia invaded Ukraine. 
At FOMC on Wednesday, Federal Reserve Chairman Jerome Powell announced the first 0.5% interest rate hike since May of 2000. He set future expectations for further 50 basis point hikes later this year. 
However, he also claimed that 75 basis point hikes were mostly off the table. Both Bitcoin and stocks responded positively at the time, each pumping by roughly 2% each. 
The optimism appears short-lived, however: The S&P 500 has since lost those gains, down 3.3% on the day. Meanwhile, Bitcoin’s price began to plunge at roughly 13:20 UTC, from

Read More »

Fed Announces 0.5% Rate Hike to Fight Inflation, Highest in 22 Years

May 4, 2022

The Federal Reserve announced a 50 basis point interest rate hike during May’s Federal Open Markets Committee (FOMC) meeting. This is twice the size of the rate increase from last month, and the largest hike since May of 2000.
Fed chairman Jerome Powell began his press conference following FOMC with a direct message to the American people:  “Inflation is much too high”.
March’s annual CPI statistic clocked in at 8.5% last month, the highest official inflation level in over 40 years. Powell stressed that the central bank is now committed to bringing that number down using continued rate hikes throughout the year.
The central bank has also begun to reduce the size of its balance sheet, issuing specific plans for reducing its securities holdings.

“We have both the tools we

Read More »

ETH 2.0 Deposit Contract Passes 10% of Total Supply

May 4, 2022

In anticipation of Ethereum’s upgrade to proof of stake, over 10% of ETH’s supply has been sent into the Ethereum 2.0 deposit contract. That’s over $35 billion in staked value at current prices.
According to Etherscan, exactly 12,334,098 ETH is generating income through the contract at the time of writing. By comparison, ETH’s total supply is estimated at about 120,642,170 ETH.
The smart contract involves staking ETH on the Beacon chain – the future “spine” of the Ethereum network. It chain will eventually merge with Ethereum to act as its coordination mechanism, and allow it to operate using proof of stake.
Proof of stake is a consensus model that lets users construct blocks by staking their cryptocurrency holdings, rather than spending energy. If chosen to create a

Read More »