Crypto Market Overview October 10th | Dex-Trade
One-Day Hype: Justin Sun Didn't Buy Huobi Shares
Crypto community news outlet Wu Blockchain, citing "multiple sources," broke the news this morning that Justin Sun, the founder of the Tron blockchain ecosystem, is the "real buyer" of the recent sale of a stake in the Huobi cryptocurrency exchange. But just hours after, Sun told online publication The Block that the claim was "wrong": "I'm only an advisor to Huobi," — crypto businessman said. However, the speed of rumors spreading is known to be very high. Several news outlets picked up on the wave of speculation launched by Wu Blockchain and began spreading the news that supposedly the founder of the FTX crypto exchange, Sam Bankman-Freed, had already bought out Sun's stake in Huobi. Of course, Bankman-Fried wrote hours later that neither he nor FTX were involved in the deal. Meanwhile, Huobi management has officially confirmed the inclusion of the Tron founder on its advisory board. In parallel, Huobi said that "the company's majority owner" after Saturday's sell-off agreed to sell its stake to the M&A fund of Hong Kong-based investment firm About Capital Management. While the crypto exchange has not named a controlling shareholder, the news comes just a couple of days after reports that Huobi founder Leon Li is seeking a buyer for his nearly 60% stake in the company and is asking for at least $1 billion. Huobi also did not disclose the terms of the deal with About Capital Management.
Norwegian Finance Minister 'Goes on the Warpath' With Miners
Norway's finance minister, Trygve Slagsvold Vedum, has asked the government to revoke a cryptocurrency regulatory scheme that gives local crypto miners a discount on electricity. Back in 2016, Norway introduced certain energy incentives for data centers, including cryptocurrency miners, reducing the plan for them even lower than for the population. However, according to the Minister of Finance, the macroeconomic environment has changed significantly over the past six years, which requires systematic adjustments: “We are in a completely different situation in the power market now then when the reduced rate for data centers was introduced in 2016. in many places, the supply of power is now under pressure, which causes prices to rise. At the same time, we see a development with increased extraction of cryptocurrency in Norway. We need this power of community. The government will therefore discontinue the scheme.” In recent months, the increased demand for electricity in the country has become too much for its producers, so production has required an increase in costs. It is important to note that many renewable energy sources are integrated into the Norwegian energy system. 88% of the electricity in the country is generated by hydropower, so the global energy crisis should not take the country by surprise.
"CBDCs Are Doomed to Fail": Fresh Critique From Michael Saylor
MicroStrategy founder and Bitcoin maximalist Michael Saylor said that central bank digital currencies (CBDCs) are unstable and doomed to failure, while Bitcoin is, of course, significantly better due to its scarcity, transaction processing time and energy costs. Saylor also believes that bitcoin is better than gold and real estate, since scarcity is preferable to commodities or securities. According to him, the PoW algorithm makes the crypto-flagship blockchain baths available for digital and physical work, because information exists only due to certain things happening in the real world. The block is formed after real people have invested time and effort to turn the information into reality. Virtual currencies, such as in-game currencies and fiat currencies, do not suit Sailor because they are not scarce, and their creation does not require energy and time. Therefore, CBDCs, according to the crypto businessman, will fail in the future due to centralization, limited issuing rights, and vulnerability to major bankruptcies, interventions, or company collapses. By the way, it is these factors that are now “adding fuel to the fire” of the crisis in the crypto market. And Sailor still seems to live in a world where Bitcoin is the perfect hedging asset.
