Category Archives: CCN

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Cryptocurrency Market Decline Caused by Strengthening Dollar

A senior market analyst at eToro, Mati Greenspan, recently produced a commentary on cryptocurrency market. He argued that the recent market decline is a product of the strengthening US dollar.
 
As the dollar continued to perform well in recent weeks, fuelled by policies tightening the economy with the intention of preventing high inflation, the economies of emerging markets struggled to maintain the strength of their own currencies. Greenspan believes this has affected cryptocurrencies in the same way.
 
In the commentary that was shared with CCN, Greenspan compared the movements in the crypto market with those of local fiat currencies in emerging markets, noting that they mirror one another. While investors in these markets are choosing to invest in cryptocurrencies when their local currency is on the decline, Greenspan said that the US dollar is still the most popular reserve currency of choice.
 
His analysis suggests that many smaller economies rely on a stable exchange rate with the dollar, something threatened by its current appreciation. Additionally, because of its movements, there is less incentive for investors to move their capital into the digital currency market.
 
The value of cryptocurrencies is often regarded as unassociated with the movements of traditional commodities such as gold and oil. But in this case, they have been fluctuating in the same ways, in reaction to the surging dollar. It is common for these commodities to lose value in the face of the increasing dollar value. The digital currency market has followed suit this time.
 
As the past several days have seen the movement of the dollar slow down, currencies such as the lira, rand, and peso have begun to recover. As Greenspan’s analysis would suggest, so has the cryptocurrency market. Market capitalization hit USD 216 billion Friday from a Monday total of USD 190 billion.
 
An alternative analysis of the decline from Arthur Hayes, CEO of cryptocurrency derivatives exchange BitMEX, suggested that ICO-funded startups were cashing out capital before losing any more in another market dip.
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Richard Branson Says Bitcoin Scams Impersonating Him ‘Worrying Trend’

Virgin Group founder and renowned investor Richard Branson has expressed his concern at the growing number of scams involving Bitcoin that steal his likeness to promote fraudulent activities.

In a post written by Branson on Virgin’s official blog on Thursday, he condemned the scammers for taking advantage of his praise of Bitcoin, and its potential to shake up the international financial system.

Branson wrote: “Some of the most regular and worrying fake stories currently spreading online are false endorsements of Bitcoin trading schemes. While I have often commented on the potential benefits of genuine Bitcoin developments, I absolutely do not endorse these fake Bitcoin stories.”

The scams in question will frequently involve fake news stories that erroneously claim Branson has either endorsed or invested in a specific cryptocurrency, product, or company.

 

richard branson

Such as the above example spotted by CCN, where the article indicates the publishing source as Yahoo. Upon closer look, however, the domain that it directs users to is entirely unrelated.

Similar scams include BitcoinTrader, an example singled out by Branson in the blog post. As reported by CoinDesk, one particular advertisement of this scam poses as a CNN Tech article, complete with a replication of the outlet’s logo and formatting.

While the BitcoinTrader scam is certainly more sophisticated than the above example shared on Twitter, these scams tend to target prospective investors that are less tech-savvy, utilizing the language of ‘get rich quick’ schemes.

Branson noted Virgin’s legal team has been required to deal with hundreds of such fraudulent impersonations online. The company has pressured social media platforms to be more vigilant in recognizing and removing fake stories.

The blog post reads: ”We also contact the social networks where the fake stories are being spread and urge them to take the stories down and do more to proactively stop them appearing in the first place.”

 

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