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Cryptocurrency companies dominated the main street at the World Economic Forum in Davos this year, a notable difference between this edition and the last one in 2020.

The high-profile presence from the industry came even as the cryptocurrency market crashed. It was sparked by the collapse of the so-called algorithmic stablecoin called terraUSD or UST, which saw its sister token luna drop to $0 in May.

Meanwhile, global regulators are setting their sights on the cryptocurrency industry.

WEF is the annual gathering of global business leaders and politicians that aims to set the agenda for the year.

Against that backdrop, it was the perfect time to catch up with some of the big players in the cryptocurrency industry. Here's what I learned.

There are currently over 19,000 cryptocurrencies and dozens of blockchain platforms in existence.

Blockchain is the technology that underpins these digital currencies and platforms include Ethereum, Solana and many others.

Many of the industry executives see the current state of the market as unsustainable.

Brad Garlinghouse, CEO of cross-border blockchain firm Ripple, predicted there may only be "scores" of cryptocurrencies left in the future. He said there are around 180 fiat currencies in the world and there is not really a need for that many cryptocurrencies.

Betrand Perez, CEO of the Web3 Foundation, likened the current state of the market to the early internet era, and said there were lots of "scams" and many "were not bringing any value."

Brett Harrison, CEO of cryptocurrency exchange FTX U.S., said there are "a couple of clear winners" when it comes to blockchain platforms.

You may have heard of stablecoins. They're a type of cryptocurrencies which are supposed to be pegged to a real world asset.

In practice, stablecoins like tether or USD Coin, which aim to mirror the U.S. dollar one-to-one, are backed by real assets such as currencies or bonds. They hold a reserve of these assets in order to maintain a dollar peg.

You may have also heard about the debacle surrounding a terraUSD or UST. This is a so-called algorithmic stablecoin. Instead of maintaining its peg by having a reserve of assets, it aims to mimic the U.S. dollar and maintain stability through a complex algorithm.

But that algorithm failed and caused terraUSD to lose its peg and collapse.

The crypto industry tried to warn users to make sure they know the difference between an algorithmic stablecoin, like terraUSD, and others that are backed by assets.

Everyone wants to be more more involved with crypto now, no one is ignoring the industry anymore.

Mihailo Bjelic

CEO of Polygon

The terraUSD collapse "made it very clear to people that not all stablecoins are created equal," said Jeremy Allaire, CEO of Circle, one of the companies behind the issuance of USDC.

"And it's helping people differentiate between a well-regulated, fully reserved, asset-backed dollar digital currency, like USDC, and something like that (terraUSD)."

Reeve Collins, co-founder of BLOCKv and co-founder of another stablecoin tether, said the terraUSD saga will "probably be the end" of most algorithmic stablecoins.

Believe it or not, the cryptocurrency industry welcomed the recent market crash, which saw major tokens like bitcoin fall more than 50% from their all-time highs.

"We're in a bear market. And I think that's good. It's good, because it's going to clear the people who were there for the bad reasons," said the Web3 Foundation's Perez.

This sentiment was echoed by other executives too, who say the massive rally in prices caused people to focus on speculation rather than building products.

[The] market, in my personal opinion, became maybe a little bit irrational, or maybe a little reckless to a certain extent. And when the times like that come, [a] correction is normally needed, and at the end of the day [is] healthy," said Mihailo Bjelic, CEO of Polygon.

Ahead of the World Economic Forum, European Central BankPresidentChristine Lagardesaid she thinks cryptocurrencies are "worth nothing."

It appeared to me like regulators and authorities were still antagonistic to cryptocurrencies, much like they had been over the past few years at Davos.

But executives said the thinking from regulators, for the most part, has shifted to something slightly more constructive.

"I think we've come a long way from three or four years ago when when I literally had just arrived here in the snowy version of Davos and someone said, you know, crypto is still a bad word here. That is no longer the case. So I definitely don't think 'antagonism' would be the right descriptor. I think 'curiosity,'" Ripple's Garlinghouse said.

"I think it's constantly changing both regulators, big enterprises. Everyone wants to be more more involved with crypto now, no one is ignoring the industry anymore," Polygon's Bjelic said.

In March, U.S. President Joe Biden signed an executive order calling on the government to examine the risks and benefits of cryptocurrencies. Still, there is no major cryptocurrency regulation in the U.S. and other major economies.

Garlinghouse said that he wants "clarity and certainty" from regulators.

BLOCKv's Collins, meanwhile, called Lagarde's comments "ignorant." He highlighted the tension that still exists between the cryptocurrency industry and some authorities in traditional finance.

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Originally posted here:
After the crypto crash, here's what industry experts are waiting for next - CNBC

The cryptocurrency market has been on top of the headlines in the past few years with the rise of and . Despite the volatility of the market, several indicators show that the cryptocurrency market is on the rise.

First, increased mainstream adoption has been one of the most important indicators that show that the cryptocurrency market is on the rise.

In the past few years, major corporations, such as Microsoft (NASDAQ:) and Overstock.com (NASDAQ:), have started accepting Bitcoin as a form of payment. Financial institutions, too, have announced plans to start adopting cryptocurrencies. For example, prior reports in the past few years indicate that JPMorgan Chase (NYSE:) has created its cryptocurrency called JPM Coin.

In addition, there now exist dozens of ATMs around the world that allow people to convert their fiat currency into Bitcoin. As cryptocurrencies become more mainstream, their popularity will continue to grow.

Second, the rise of altcoins is predictably one of the big trends in the cryptocurrency market growth. While Bitcoin has received the majority of the attention in the cryptocurrency world, other coins, such as Ethereum, , and Monero, are beginning to rise in popularity.

These altcoins could often be seen as more innovative than Bitcoin and have the potential to disrupt several industries. As more people become aware of these coins, their prices are likely to continue to rise.

Third, infrastructure has been mentioned as one of the biggest problems in the cryptocurrency market. However, this has reportedly slowly changed as several new platforms are being created that make it easier to buy, sell, and store cryptocurrencies.

One example of this is the Lightning Network, which is a protocol that allows for instant Bitcoin transactions. This could potentially solve the problem of slow transaction speeds that have been holding the cryptocurrency back.

Disclaimer: The views and opinions expressed in this article are solely the authors and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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Trends That Show the Cryptocurrency Market Is on the Rise By CoinQuora - Investing.com

The prices for cryptocurrencies are rallying across the board to start the trading week, with Bitcoin (BTC) and Ethereum (ETH) each up 5%.

Digital coins and tokens from Litecoin (LTC) to Solana (SOL) are up 5% or more on news that China has further reduced its COVID-19 restrictions and as stock markets in Europe rise to begin the trading week. The price of Cardano (ADA) is up 12.5%.

After meeting resistance at the $30,000 level for the past several weeks, the price of Bitcoin is now at $31,500 U.S., its highest level in more than a month. Ethereum is trading at just under $2,000 U.S.

Cryptocurrencies have been badly beaten down this year and fallen in tandem with technology stocks as markets around the world have sold off.

Bitcoin has lost more than half its value since peaking at an all-time high of $68,000 U.S. last November. Similarly, Ethereum was trading above $3,000 U.S. last fall before dropping sharply in recent months.

Over the weekend, news reports said that China is continuing to loosen its COVID-19 restrictions, allowing a return to indoor dining in major cities such as Shanghai and increasing the number of people who can gather in groups.

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Cryptocurrency Prices Surge To Start The Week - Baystreet.ca

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Investing in cryptocurrency is complicated and risky.

Some have made a lot of money buying in at the right time. Many more have lost nearly everything, most recently when the crypto market came crashing down in May losing nearly $2 trillion in value.

Through all the ups and downs, crypto has boomed in popularity over the past year, drawing waves of new investors who face a steep learning curve with potentially high stakes. Still, there are ways you can empower yourself to make the best possible decisions if youre interested in investing in crypto.

Thats why we created the NextAdvisor Investability Score, which uses a mix of quantitative and qualitative factors to give crypto investors a comprehensive view of a coins performance.

As a highly speculative, volatile investment, cryptocurrency prices fluctuate by the minute sometimes drastically driven by speculation, hype, and even the whims of social media. The recent crypto market crash is a prime example. Thats why the NextAdvisor Investability Score is also dynamic, changing daily as the performance of individual coins and the overall crypto market ebb and flow.

Bitcoin plummeted to its lowest price in more than a year in May, and other cryptocurrencies saw even worse sell-offs amid a broader stock market rout. The collapse of popular stablecoin TerraUSD and sister token Luna highlights why its important to proceed with caution when investing in cryptocurrencies. After TerraUSD de-pegged from its 1-to-1 exchange rate with the U.S. dollar, its sister token Luna quickly plummeted in value as well and many investors lost a lot of money. It highlights the uncertainty inherent in a market that is still in its infancy but also increasingly mainstream by many measures.

Whether its investing in crypto or any other big financial move, like buying a home or paying off debt, we want to help you make smarter decisions when it comes to your money. While we may present partner offers on our website, our Investability Score was created independently by our writers and editors, without any influence from partners or business interests.

Bitcoin has the highest score of all cryptocurrencies, with ethereum close behind. As the first and most established cryptocurrency, bitcoin has become the de facto standard for cryptocurrency investments. It has the longest track record and has shown itself to be a better fit for holding and increasing in value than other newer coins, which remain much more speculative and unpredictable.

Ethereum is the largest and most valuable altcoin by far, and along with bitcoin is one of the two cryptocurrencies many experts say represent the best starting point for new investors. Our score considers bitcoin and ethereum to represent a ceiling of sorts, so all other cryptocurrencies are in effect weighed against bitcoin and ethereum.

Heres how our score shakes out for 10 cryptocurrencies that are consistently among the top by market cap, excluding stablecoins, for reference:

Here is a deeper dive into what goes into NextAdvisors Investability Score:

There are thousands of different cryptocurrencies. We score the ones we believe can be most beneficial for readers and which we see most interest in. While our goal is to ultimately score and cover as many available cryptocurrencies as we can, we prioritize which coins or tokens we review based on consumer interest and notability.

Thats why we started by scoring the top cryptos by market capitalization. From there, we may also score coins based on public interest and other factors that could increase the likelihood of investors considering certain coins for their portfolios. We exclude stablecoins from our scoring model because theyre typically pegged to fiat currency, like the U.S. dollar, and as such arent typically considered investments.

We determine prospective investor interest in different coins based largely on our knowledge of the crypto market, but there are a few factors that help base our decisions on data and quantitative factors: the top cryptos by market cap; which cryptos consumers are searching for most often online; age, liquidity; value growth; experts recommendations; and use case, or the real-world problem it is trying to solve.

Notability also factors into our decision to review a cryptocurrency: When a cryptos market cap increases substantially, or when an industry-changing crypto project comes along, for instance. These wont always lead to full evaluations and ratings on NextAdvisor, but we use our knowledge of the overall industry and aforementioned measures of interest to determine when it makes sense to include notable cryptocurrencies in our evaluations.

Weve interviewed more than 100 experts over the past year to help us explain cryptocurrency to new investors. Weve talked with them about the risks, the upsides, and how to evaluate the investment potential of any cryptocurrency.

We asked a number of trusted cryptocurrency experts specifically about the NextAdvisor Investability Score, and how to make sure it accurately represents the crypto market. They shared what they look at when evaluating cryptocurrencies as potential investments, and what other investors should know. Here are some of these experts whose insights have been particularly helpful in our effort to create an Investability Score that provides an accurate reflection of different cryptocurrencies and the market as a whole:

Chris Chen is a financial advisor and CEO of Insight Financial Strategists, a Boston-based financial planning firm. Chen provides financial planning, retirement planning, investment management, and divorce planning services to help clients organize, grow and protect their assets. With the rise in interest in bitcoin and cryptocurrencies, Chen realized the importance of understanding this emerging asset class for the benefit of his clients. Chen regularly comments on the crypto markets and provides expert advice on crypto investing.

Wendy O is a crypto expert and educator who has amassed a large following of crypto enthusiasts across several social media platforms. O regularly provides expert commentary on the crypto markets, reviews crypto services, speaks at live crypto events, consults businesses on crypto, and more.

Kiana Danial is a personal finance expert and the founder of Invest Diva, a company that teaches women how to invest. She is the author of Cryptocurrency Investing for Dummies, and regularly talks about investing in crypto as a way to diversify your overall investment portfolio.

To create our Investability Score, we developed a framework to evaluate cryptocurrencies using a weighted average score between 0 and 100 based on a total of nine quantitative and qualitative factors. Quantitative factors are grouped in a performance bucket and qualitative factors are grouped in a trustworthiness bucket. Performance makes up 55% of the total score, while trustworthiness makes up 45%.

We do this because the quantitative factors that make up performance, such as market cap and liquidity, tell only part of the story for crypto investments. Smart investors should also take a coins trustworthiness, like use case or project backing, into account when considering crypto investments. The coins with the highest scores deliver on both performance and trustworthiness.

For performance, we also use a relevant peer group the top 85 cryptos by market cap as a basis for comparing cryptos, so our score is constantly and dynamically consistent with the fast-moving broader crypto market. The goal is to give you a comprehensive view of a coins performance. Higher weights are given to the criteria we determine to be most important.

Heres a further breakdown of all the factors we use to determine our Investability Score for different cryptos:

Market capitalization is the total value of a cryptocurrency, and experts say its a key factor when evaluating a cryptos investment potential. In general, the higher the value of the market cap the safer the investment. Coins that have larger market caps will have higher scores, because those coins have larger-scale buy-in and are less susceptible to short term-fluctuations.

Liquidity is a crucial component of market interest in a given coin. The more liquid a market is, the better. It reduces investment risk; and, importantly, helps define your exit strategy more liquidity makes it easier to sell or trade your investments when you are ready. To calculate liquidity, we compare each coins trading volume to its market cap. That ratio is a better representation of a coins relative demand, as opposed to trading volume alone, because some cryptocurrency exchanges have been accused of faking their volume numbers to raise the visibility of their businesses and bring in more customers.

Age is relevant when analyzing a coins past performance as it gives a view into its track record and tells you how long it has been trading in the market. For example, bitcoin is not only the largest cryptocurrency by market cap, but has also been around the longest. Just like decades of growth in the stock market gives everyday investors more confidence in future performance, cryptocurrencies with longer track records of growth give crypto investors more confidence than a coin thats only been around for a year.

Its important to have a clear picture about the growth potential of a crypto asset as it can have a big impact on your investments. Thats why we examine the value growth of cryptocurrencies over the past year. We base value growth on coins performance in the past year, since the crypto market is so dynamic and fast moving. Coins that have shown positive returns over the past year effectively receive higher scores, and vice versa.

We evaluate each coins volatility by looking at the standard deviation of its daily prices since the start of 2022. Standard deviation, which is the measure of the amount of variation across a set of values, is the typical statistic used to measure volatility. We take volatility into consideration because its an important metric to measure risk. Less volatile coins are generally considered safer investments.

A critical component of assessing a coin or tokens long-term value is the projects white paper and road map, which details its use case and details of its development. We thoroughly examine the white paper and road map of coins we rate to better understand the overall vision and timeline of the project, and what kind of problem it is trying to solve. Coins receive higher scores if their white papers explain things like: why the project was created; how it works; the projects real-world utility; how the initial coins were distributed; and technical analysis to back up its claims. Coins that have road maps and have shown a consistent history of meeting important milestones while growing and evolving will receive higher scores.

To measure transparency, we evaluate several different factors for every crypto we score:

To determine a coins credibility, we consider three important factors:

You cant buy crypto from your bank or investing firm, which is why our score incorporates availability across popular crypto exchanges. A cryptocurrency thats readily available to buy across multiple crypto exchanges is likely more credible and established, and therefore easier to invest in.

The best crypto exchanges for most investors combine security, ease of use, and insurance in the event of scams or other issues. To reflect a given coins availability, we look at whether it is available across the following popular mainstream crypto exchanges: Coinbase, Gemini, Kraken, eToro, FTX, Crypto.com, and Binance.US. Cryptocurrencies that arent as accessible across these top crypto exchanges receive lower scores.

Most financial advisors and other money experts still view cryptocurrencies with a healthy dose of skepticism. Because crypto is beyond the scope and reach of any central government or authority, some consider it more like gambling or buying a lottery ticket than investing.

Weve talked to dozens of experts about how to invest in crypto as smartly and safely as possible, and a few ground rules have emerged, whether youre investing in bitcoin or a new token that was created yesterday. They are true of all cryptocurrency investments, and especially for riskier and newer altcoins:

Once you have some money invested in crypto, the best thing you can do is ignore the hype around new record highs or lows. Like with traditional, long-term investing, the best thing you can do is set it and forget it until you are ready to sell.

The information contained herein is provided as is for educational and informational purposes only and is not intended to serve as investment advice or for trading purposes. Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities or any assets. The information has been authored from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Presenters may own the assets they discuss. You should not treat any opinion expressed by presenters as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of their opinions. The information and content are subject to change without notice. We are not under any obligation to update or correct any information provided herein. Past performance is not indicative of future results. We do not provide any individualized investment advice. Accordingly, this material does not take into account your particular investment objectives, financial situation, or needs and is not intended as recommendations appropriate for any persons individualized circumstances. You must make an independent decision regarding any investment suggestions covered by the material. Before acting on any investment suggestions from the material, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. You should be aware of the real risk of loss in following any strategy or investment discussed.

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Cryptocurrency Investability Score | NextAdvisor with TIME - NextAdvisor