The days of cheap money are over. Russia utilizes blockchain to replace payment systems. And Solana’s claims of being a decentralized protocol are being put to the test. My name is Frankie Candles. And this is your nightly crypto news wrap-up. Let’s get it! You have to go back to 2009, 13 years ago, to find a time when these economic numbers are as bad as they are today. And the difference is that back then it affected roughly 60% of the population. Now, with inflation, no matter who you are, no matter where you live, no matter how much you make, you’re impacted by it. And that impact will be felt shortly. Tonight, millions of Americans are feeling the financial squeeze of runaway inflation, with prices rising at the fastest pace in 40 years.
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Yes, the $20 trillion of printed money in 2020 attracted the spotlight to inflation. Yet the problem has been going on for much longer than you think. Yes, credit is a useful tool. But the past 40 years of our country spending money they don’t have has brought us to this global economic turning point. In the past, your average American could easily borrow boatloads of cash to fund their lifestyle. Cars, houses, stuff like that. When things took a turn for the worst, the Fed would reduce rates, injecting cash into the markets, and massive bailouts would ensue. Now, the decades of cheap money have come to a halt, and the days of wine and roses are over. The Fed has hiked the interest rate 150 basis points already this year. And this hawkish approach to battle inflation has shook the markets to their core. With four more Fed meetings to go in 2022, markets aside, it will be more difficult for consumers to borrow money, save money and pay off their loans. The mortgage rates alone are the highest they’ve been in almost 14 years.
This is relevant, especially to new investors, because you must realize it’s not just crypto that’s in a bear market. It’s the entire global financial sector. The crypto charts correlation to geopolitics is more relevant now than ever. Call me a bear boy in the comments all you want. But I’m just looking out for the BitSquad. Because with a recession looming, it’s highly likely this issue will get worse before the crypto rocket returns to the moon. Now, before I hand the mic over to Frankie Candles, I want to turn your attention to our latest special on cyber warfare. Not only is the economic climate changing, but as technology evolves in this high intensity geopolitical landscape, the Internet of Things is slowly becoming weaponized. And it could affect you in more ways than one.
Let’s jump in and do a little market watch here. We’ve got Bitcoin coming in at $20,645. Ethereum coming in at $1,128. Let’s go ahead and check our top movers. Celsius up about 84% on the day Synthetix up 59% on the day 1INCH up 20% on the day AAVE up 15% And AR up about 13% on the day Guys, Bitcoin with a little bit of a relief bounce. Now, not that extreme relief bounce that we’ve been looking for. But we do have the daily bullish divergence. Now, I always do say be careful with the bullish setups in a bear market. But with a bullish divergence on the daily, you don’t want to completely ignore that in case it winds up actually playing out.
Since the invasion of Ukraine, Russia was alienated from the SWIFT payment system within days. Although crypto was originally frowned upon under the red sun, their position has shifted out of necessity. And now they’re turning to blockchain to solve their problems. The Rostec Group, a Russian government tech organization, has announced that they’ve created a blockchain platform to launch a digital system for international payments capable of processing 100,000 transactions per second. This new payment system, known as CELLS, similar to XRP, uses distributed ledger technology, which will allow Russia to pay for goods imported into their country using the ruble instead of the United States dollar. It will also allow other countries to pay Russia in their own national currencies, making other payment systems obsolete.
The Rostec Group states that the new system could provide a real alternative to the international payment services provided by the SWIFT system. Although it’s wrong they’re using this platform to work around their banking restrictions, this story is an eye-opener for the world to what crypto is capable of on a global stage. A Solana lending and borrowing protocol Solend Labs is in a bit of a pickle. And it has Solana’s future and their DeFi reputation stuck in the middle. Long story short, to avoid a massive liquidation, they created a DAO overnight to hold a governance vote to grant emergency powers to allow Solend to take over a whale’s account to save their necks. This whale has a massive margin position of about $170 million that is putting the entire user base at risk.
If the price of Solana was to walt to $22.30, it would be chaos. The problem is the SLND one vote was manipulated by a single account that casted more than 1 million votes. That doesn’t sound like DeFi to me at all. More like CeFi. After an exorbitant amount of community backlash, the Solend team took a second vote that successfully invalidated the first one. But now it feels like the unethical decision to game the system could have lost the trust of their most loyal users. Since they can’t use the whale’s wallet, the Solend team has to find another way to navigate the situation. Could Solend be the end of Solana? This story is still developing.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/02KMaxibxF0