Despite the recent influx of new cryptocurrencies, there are still a number of questions surrounding how these digital currencies will shape the future. This article will discuss a few of these. It will also cover the idea of regulation and the surge in price of a new cryptocurrencies, Dogecoin.
Dogecoin's surge in price
Despite the Dogecoin price's volatile past, the coin remains among the top twenty cryptocurrencies in terms of market cap. The coin is supported by a large and active online community that regularly asks the developers to limit the supply of DOGE. A high demand for the asset can drive the price higher in the long run. However, an increase in price does not necessarily mean a greater level of optimism or buying pressure.
Although the price of Dogecoin has dropped substantially over the last several months, it is still a popular and highly profitable investment. A recent surge in the Dogecoin price suggests that Elon Musk's purchase of Twitter may have triggered another significant price spike in the coin.
Dogecoin's value was briefly at $0.60. The coin began to fall after a massive crypto day crash in April. As a result, the currency slid to a low of $0.11 in March 2022. Its value dipped again after a price spike in July. The price spike led to an increase in the number of people trading Dogecoin.
The community arranged various publicity stunts to boost the value of the token. One example is a campaign that raised funds to send a Jamaican Bobsleigh team to the 2014 Olympics. The Dogecoin community also sponsored a NASCAR driver. These events helped to legitimize the meme cryptocurrency and build a supportive community around the token. The high-profile personalities of the coin also added credibility to the project.
The popularity of Dogecoin prompted many retailers to begin selling the coin. In fact, Mark Cuban even accepted the token as a payment method for Dallas Mavericks merchandise.
Elon Musk, Twitter's CEO, also praised the Dogecoin community. He has said that the coin can be used as a means of purchasing Tesla merchandise. While this does not mean that the coin is a legal tender in the United States, it does suggest that the coin is viable as a medium of exchange. This could add to the appeal of the token for passive income stream investors.
The Dogecoin price has declined by 13.8 percent during the past week. The market has been roiled by speculation about a possible interest rate hike by the Federal Reserve on Wednesday. This is an event that can affect the global markets. A decline in prices can lead to an irreversible "death spiral" of losses.
It is important to note that the Momentum Master indicator has turned positive on Dogecoin prices since April. The strategy doesn't guarantee future prices, but it suggests that the Dogecoin price will rise if optimism returns. During the height of the pandemic, liquidity was thicker. This explains why the price of Dogecoin was able to reach its all-time high.
The Dogecoin price is likely to see a major decline at some point in the future. However, this may be a short-term trend. If the coin gains momentum again, investors may decide to keep it for future price rises. Alternatively, holders might cash it out for future profit.
FWB's idea of attaching cryptocurrency to an online social club
FWB is a crypto centric community boasting the largest collection of crypto-minded thinkers afloat. The community aims to shape the future of content creation in the Web3 space. Using the Zora web3 toolkit, the group has authenticated some smart contracts on the blockchain. The nitty gritty of the group's success is that they've recently secured $10 million in funding. The group has a hard cap of 13,333 members. Those looking to join the community can buy some of the $FWBs on the Uniswap exchange.
For a small fee, the community will provide you with access to a private discord server where you can chat, mingle and participate in a number of community-based initiatives. One of the most interesting aspects of the FWB community is that it has become a breeding ground for doers and makers. Among the group's growing list of members are a number of prominent creatives and thinkers including the likes of Alex Honnold, Daniel Wu, and Amelia Elle. Aside from being a great place to hang out, FWB offers its members a platform to display their wares. This includes a gallery of NFT artefacts, or in other words, the works. Those looking to make a buck can purchase the works of art, or in other words, the tokens that adorn them.
While FWB's website is a bit of a snooze, the aforementioned e-mail is not only a worthwhile experience, it also proves that the organization's team of execs is indeed on the ball. For instance, the community is now undergoing an organizational overhaul, which will hopefully improve the overall experience. Moreover, FWB's newly revamped site provides a central hub for information sharing, news, and content. Those looking to take their next step in the world of crypto can look no further than FWB's hub of innovation. Aside from the obvious, a more robust FWB community has also been announced, bringing with it a new found freedom of speech.
Regulation of cryptocurrency
Across the federal government, regulators are working to address the issues surrounding digital assets and blockchain. Lawmakers are seeking more regulatory certainty around cryptos, and are taking steps to address gaps in the industry. While there are many differences between policymakers, the overall goal of establishing an effective regulatory framework for fintech innovations is a common theme. Ultimately, the goal is to encourage the use of digital assets for legitimate purposes while protecting consumers and investors.
As part of the sandbox initiative, the FCA is working to create a safe testing environment for firms developing innovative solutions for decentralized finance. In this environment, early-stage firms can take advantage of a variety of benefits. Specifically, the sandbox will allow firms to test new technologies, products, and services without risking harm to their business model. The initiative is expected to provide significant benefits to both early-stage firms and incumbent financial institutions.
The Securities and Exchange Commission (SEC) is also looking at ways to regulate the crypto industry. In a recent House hearing, SEC Chairman Gary Gensler said that greater regulation of cryptocurrency exchanges will help protect investors and prevent market manipulation. He noted that many crypto assets sold in the U.S. are likely securities.
The SEC is one of several federal regulators focusing on the crypto industry. It has been studying the impact of decentralized finance on the traditional financial system and is expected to issue guidance on the future of digital assets in 2021. The CFTC is also a major player in the crypto space, and will play a role in shaping future regulations.
Treasury Secretary Janet Yellen has expressed concern over the use of cryptocurrencies for money laundering and terrorism financing. She plans to work with the Federal Reserve Board to provide an effective regulatory framework for fintech innovations. The Bank Secrecy Act is updated to include crypto assets. It also requires financial institutions to report on all transactions that exceed $3,000. The CFTC is currently charging 14 entities, most of which are banks, with violations of the CFTC's money-laundering rules. The Treasury Department's Financial Crimes Enforcement Network will also play an active role in determining the future of crypto regulation.
The EU's new Markets in Crypto Assets (MiCA) legislative proposal aims to establish a comprehensive set of rules for crypto assets that fall outside the scope of the MiFID. The proposal, which will affect 27 EU member states, focuses on increasing transparency and fostering investments in the blockchain industry. It will also introduce conduct and licensing rules for crypto-asset service providers, or CASPs. This will increase trust among investors and simplify the operations of service providers across the EU.
The current market downturn has led to significant losses and has highlighted the vulnerabilities of protocols. A recent rout appears to have strengthened the resolve of crypto-friendly authorities to implement stricter regulation.