41% of Surveyed Crypto Investors are Newbies
41% of Surveyed Crypto Investors are Newbies 101
Source: AdobeStock/Pormezz

As many as 41.4% of cryptocurrency investors are crypto newbies, and 60% of them declare they have invested between USD 2,500 and USD 5,000 in crypto, according to the results of a recent survey by alternative investment firm Invictus Capital.

“Today’s investor resembles a 35-year-old German engineer named Günther. He derives his crypto investing information from YouTube, because he values learning how to generate high returns on his investment more than the idealism of cutting out the middleman,” the company said in the survey’s summary.

They are referring to the finding that the country with the highest percentage of surveyed alternative investors was Germany, at 14.1%, followed by the US and Spain, with 7.7% and 6.8%, respectively. The UK and Turkey were ranked fourth, both at 4.8%.

Furthermore, the survey indicates crypto investing is dominated by those aged 31-45, with 41.8%, while respondents aged 25 and below represent 25.1% of the total. Investors aged 25 to 30 hold a 22.9% share, while those aged 45 and above represent only 10.2% of the total.

The survey collected answers from some 3,473 respondents spread across a total of 60 countries. Ofir Sever, a PR spokesperson for Invictus Capital, told Cryptonews.com that the survey’s focus was to determine the modern investor profile, media consumption habits, crypto investing sources, as well as investing habits. The survey was carried out online last February and March, and it targeted investors.

Data was sourced from respondents with access to high-speed Internet, with a significant share of responses from the European Union’s member states and Asian countries, according to the spokesperson. Mobile users provided 94% of the responses, with desktop and tablet users generating a further 5.5% and 0.5%, respectively.

The average sum invested in crypto is reported to be USD 2,500 – USD 5,000, with 60% of those surveyed marking this option. 40% also reported investing USD 100 – USD 2,500, while more than 30% of the respondents have also made investments under USD 100.

With regards to the respondents’ professional profiles, engineers lead the way, at 12.5%, followed by tradesmen and lawyers, both at 9.6%, and finance professionals with 8.6%. Among the listed professions, IT is at the bottom of the list, with 1.6%.

The survey’s summary further stated that:

  • 68% said high returns remain a motivation;
  • 54% see crypto investing as a method to future proof their money;
  • 25% invest to mitigate dealing with middle men;
  • 50% noted high fees on exchanges, quality, and volume on exchanges as the biggest challenges they faced.

And speaking of exchanges, 69% of surveyed investors listed Binance as their exchange of choice, followed by Coinbase with 42.6%, and Kraken with 13%.

74% of the surveyed individuals chose YouTube as their preferred social channel.

Meanwhile, almost 40% percent of respondents said that they invest on a weekly basis, 34.3% said they invest monthly, and 7.7% said they invest once a year, Invictus Capital concluded.

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Learn more:

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50% of Inexperienced Investors to Hold Bitcoin Less Than a Year – Survey

18% of Asked Americans Bought Crypto, Most Know Only Bitcoin – Survey

Young Investors Drive Increased Aussie Bitcoin & Crypto Investments

Investors Still Prefer Stocks To Bitcoin, But BTC Wins Over Gold – Survey

More Professionals Trust Crypto Than Want To Get Paid In It – Survey

Crypto is Here to Stay, But There is a Twist, Survey Shows

Top 7 small cap altcoins with huge potential, says analyst George Tung

In the recent video, crypto KOL George Tung from CryptosRUs discussed 7 altcoins under $150M in market cap that he believes are poised to explode.

top-7-small-cap-altcoins-with-huge-potential-says-analyst-george-tung

Rally (RLY)

Rally (RLY) is the first altcoin on the list, a decentralized network for creators to monetize and align themselves with their community. As a community-owned network, the community is in charge of making the decisions for how the network evolves, not the Rally team itself.

“This is a brilliant idea! It’s a very easy way for creators to basically launch a token and interact and engage with their fans”, the trader says.

Moreover, excitingly, Rally recently launched a cryptocurrency dubbed Creator Coin that will help influencers, content creators, and streamers run their own virtual economies. The analyst also cites the news that Grammy-winning artist Portugal.The Man has also joined as a coin partner.

“All these entities have big followings and they’re adopting Rally”.

Terra Virtua (TVK)

Next on the list is Terra Virtua (TVK). Terra Virtua is a cross-platform non-fungible token (NFT) ecosystem that offers a curated marketplace for NFT creators and collectors to interact. The Terra Virtua Kolect platform spans web, PC, and mobile AR/VR environments.

“Terra Virtua has launched a line of Godzilla vs. Kong NFT collectibles created in collaboration with film production giant Warner Bros. — among the first-ever NFT drops to coincide with the release of a major film”, Tung says.

He further adds that if there is anything more than places Terra Virtua uniquely in the NFT and blockchain space, it is the partnerships the project has bagged over the last 3 years, including Paramount Pictures, Legendary Entertainment, and more in the space.

Revv (REVV)

Next on Tung’s radar is Revv (REVV). REVV is designed to leverage the blockchain assets concept of interoperability, wherein a token can be utilised across multiple connected products.

“Revv is specifically created for games. Having one utility token for multiple game titles offers various benefits to players and game publishers and will encourage players to explore the other games that are part of this connected ecosystem, and has the additional potential benefit that any content or tokens could increase in utility as the larger token ecosystem expands”.

Tung also shares his bullish view on the coin that given the current strong fundamental grounds, the coin will pump to the moon really soon.

Nuls (NULS)

Nuls (NULS) is the next potential low market cap altcoin on the video.

NULS is an open-source, enterprise-grade, adaptive blockchain platform that offers fast-track business solutions for developers. Featuring microservices, smart contracts, cross-chain interoperability, and instant chain-building, NULS sets a new industry standard in streamlining blockchain adoption.

“The coin has been finally climbing, crawling up and they’re finally above 100 million, 127 million to be exact, and you know what, hopefully, they could continue to momentum and gain and go back to their previous highs”, Tung says.

Frontier (FRONT)

Next on the list is Frontier (FRONT), a chain-agnostic DeFi aggregation layer.

“To date, the coin has added support for DeFi on Ethereum, Binance Chain, BandChain, Kava, and Harmony. Via StaFi Protocol, they also enter into the Polkadot ecosystem, and will put vigorous efforts towards Serum”, he says.

EasyFi (EASY)

The sixth altcoin is EasyFi (EASY), a universal layer 2 lending protocol built for DeFi focused on scalability, composability, and adoption.

Tung points out that the one of the most interesting features is that the network design is ethereum compatible and blockchain agnostic that facilitates the expeditious settlement of assets over different blockchain networks while retaining custody with the asset owner’s network.

Bepro (BEPRO)

Lastly, the crypto KOL lists out Bepro (BEPRO), a utility token that enables token holders to setup applications on BEPRO, participate in the network, and earn token rewards by providing value.

The trader says that BEPRO Network Staking on Kucoin has been increased recently as the previous hardcap of 330M BEPRO has been increased to 430M BEPRO.

He also comments that although this is still an early coin, looking at the technology, communities and its partnerships, he believes that this coin would soon begin its rally.

Weekly Roundup: Crypto Market Cap Hits $2T, ICE3X Ceases Operations

Jack Dorsey’s NFT tweet will help the poor in East Africa through an upcoming bitcoin donation. To learn more about this developing story and other news, keep reading.

Jack Dorsey’s NFT Tweet to Help the Poor in East Africa

As the non-fungible token (NFT) craze continues, Jack Dorsey is auctioning his first tweet on Twitter as an NFT. Dorsey posted this tweet on May 6, 2006. The auction is taking place on Valuables and will end on March 21, 2021.

Jack Dorsey NFT Tweet

Dorsey has tweeted he will convert the proceeds of this auction to bitcoin and donate them to GiveDirectly. This is a non-profit organization that seeks to end extreme poverty in East Africa. Donations sent to GiveDirectly benefit people in Kenya, Rwanda, and Uganda.

Currently, the highest bidder of this NFT tweet was a Twitter user with the handle @sinaEstavi. He outbid Tron CEO Justin Sun, who had bid $1 million. Estavi bid $2.5 million.

Valuables wrote: “The tweet itself will continue to live on Twitter. What you are purchasing is a digital certificate of the tweet, unique because it has been signed and verified by the creator. Owning any digital content can be a financial investment, hold sentimental value, and create a relationship between collector and creator. Like an autograph on a baseball card, the NFT itself is the creator’s autograph on the content, making it scarce, unique, and valuable.”

Uncertain Regulatory Environment Pushes Crypto Firms Out of South Africa

The uncertain regulatory environment is pushing crypto firms out of South Africa. According to an article on Business Tech, the MTI scam gave regulators in South Africa a jolt and some firms will not wait to see how the matter pans out from a regulatory standpoint.

These crypto firms are planning on moving to Singapore and the UK. That is because Singapore is redrawing legislation to attract crypto firms while the UK is getting requests to embrace cryptocurrencies.

Revix, a crypto investment platform that allows customers to invest in a bundle of cryptocurrencies, is moving its headquarters from Cape Town to the UK. The company is also considering setting up in Germany to scale its operations.

Luno is another crypto company with headquarters in the UK despite being owned by South Africans. The exchange also operates in Singapore.

South African regulators “have been incredibly slow in terms of regulation in the industry and that leads to businesses looking internationally. In an unregulated environment, a customer arrives at our platform with skepticism, and rightfully so,” said Revix CEO Sean Sanders in an interview.

According to Sanders, the uncertainty regarding potential regulation is also making it difficult for crypto firms to market their services on social media platforms thereby limiting growth.

Binance CEO CZ Among the Top Blockchain Billionaires in 2021

Binance CEO, Changpeng Zhao (CZ), is among the top blockchain billionaires in 2021 according to the latest Hurun global list. CZ and 16 other billionaires have cumulative wealth of US$ 77 billion. These billionaires have generated their wealth from running crypto exchanges, investing in cryptocurrencies, and mining crypto.

After facing a price correction in 2018, crypto billionaires are enjoying a boost in their wealth thanks to the recent bull run.

The top five billionaires are Brian Armstrong of Coinbase, Sam Bankman-Fried of FTX, Changpeng Zhao, Chris Larsen, and Jed McCaleb of Ripple. Their net worth is $11.5 billion, $10 billion, $8 billion, $5.1 billion, and $3.2 billion, in that order.

To learn more about Bitcoin, download the Bitcoin Beginner’s Handbook for free.

Bitcoin Beginner's Handbook

Hong Kong-based app-maker Meitu bought another 175 BTC to reach the $100 million in its Cryptocurrency Investment Plan
hong-kong-based-app-maker-meitu-bought-another-100-million-in-btc-and-eth-to-its-treasury

According to the announcement today, the beauty application Meitu purchased another 175 BTC to reach the $100 million mark it set for itself in its Cryptocurrency Investment Plan.

Meitu buys another $10 million in Bitcoin

Therefore, the goal to invest $100 million in the cryptocurrency of Meitu has been achieved. The plan called for Meitu to add $100 million in BTC and ETH to its treasury, both as an investment and preparation for future initiatives. Meitu intends to use some of the ETH to launch decentralized apps in the future.

The publicly traded firm first acquired $40 million in BTC and ETH in early March of this year, when it unveiled its intention to make further purchases. A week later, it purchased another $49 million. Today’s announcement is the final $10 million of the acquisition.

In total, Meitu holds 31,000 ETH (valued at $50.5 million) and 940 BTC (valued at $49.5 million).

Coinbase disclosed in late March that its institutional business facilitated the past purchases, a service it has provided for other public companies such as Tesla. It’s unclear if the latest purchases were also handled by Coinbase.

Meitu is one of the first China-based publicly listed companies to add crypto to their treasury. Other tech firms like Square, Tesla, and MicroStrategy made headlines in the past year for making similar acquisitions.

Is Regulation the Silver Bullet for Financial Malpractice? / What is Financial Regulation and Does it Matter to DeFi?

The text below is an advertorial article that was not written by Cryptonews.com journalists.

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In traditional finance, financial regulation is intended to provide protection, safety and stability for institutions and consumers alike. Organisations such as the Securities and Exchange Commission (SEC) in the US and the Financial Conduct Authority (FCA) in the UK are tasked with policing the conduct of banks, asset managers and other financial organizations to ensure that strict rules are followed and punishments applied when those rules are broken.

DeFi and cryptocurrency more widely has fallen outside the remit of regulation since Bitcoin was first launched in 2009. For more than a decade digital asset holders and service providers have largely been able to go about their business unfettered by the same rules and regulations that fall on the shoulders of JP Morgan Chase, for example; not least because the rules that are set for traditional financial institutions are extremely difficult to apply to digital assets.

Regulation across TradFi, CeFi and DeFi

As anyone who has ever applied for a credit card, bank loan or mortgage will know, the long-arm of financial regulation places a significant emphasis on data collection and suitability assessment. This requires collecting and storing vaults of customer information, running complex individual credit risk checks and ensuring detailed custody, anti-money laundering and transaction regulations are followed – and while this is achievable for JP Morgan, it is less so for many cryptocurrency organizations.

In the world of CeFi, or centralized finance, we are seeing moves in this direction, with Coinbase – one of the largest CeFi exchanges – in regular discussions with the SEC as it seeks to list on the US stock market. However, in the world of DeFi, regulation is anathema to much of what the ecosystem stands for. Built largely on a decentralized, permissionless system of autonomous smart contracts, many protocols do not have the central management required to carry out regulation. Moreover, many DeFi applications don’t ask users for their information (or “KYC”), which is a key attraction for many DeFi users.

Regulation and the regulated

Governments and public-sector bodies often cite seven specific areas as being major goals of financial regulation: investor protection, consumer protection, financial stability, market efficiency, competition, the prevention of financial crime, and fairness. For end users, investor and consumer protection are the most important and refer to the way in which financial organizations should market investment products and communicate with their customers. Rules in these areas generally call for transparency (especially around potential risks of products and investments) and clear, open communication with customers.

This is, few would dispute, a highly laudable facet of regulation that should protect vulnerable customers. In practice, however, it frequently doesn’t. Aside from the sort of systemic failings the world witnessed in 2008/09, leading to USD 321 billion in fines dished out to major banks such as Barclays for LIBOR rigging, regulation often fails to keep out bad actors. In the UK, the “mini-bond” space has been a hotbed for fraud, with more than 11,000 people losing GBP 236 million in 2019 to a company claiming to offer property-backed savings accounts. These savers – largely inexperienced older people – suffered heavy losses and the scandal led to a widespread overhaul of a space with hundreds of similar cases.

Best practice should span all sectors

Despite its failings, however, regulation is important: many schemes such as the UK’s Financial Compensation Scheme (a fund paid for by banks that will reimburse savers in the event a regulated institution collapses) provide genuine protection for consumers, as do imperatives for clear, transparent disclosure about products and services and treating customers fairly. Most importantly, however, the onorousnes of regulation can also help to keep out some of the worst actors who may not have the conviction or capacity to comply with regulation.

As such, YIELD App seeks to emulate the key tenets of prudential regulation across its entire platform and customer service proposition. We provide clear and consistent public information including a product disclosure statement that details our structure, practices and principles and clearly states the risks associated with digital assets. On our site we also host a comprehensive set of FAQ’s along with a 24-hour customer helpdesk to ensure we can answer any customer queries quickly and accurately. YIELD App also seeks to mirror important system-level financial regulation, including well capitalized treasuries and the prevention of financial crime through level 1 KYC. We have also partnered with Merkle Sciences for chain analysis to ensure we comply with the FATF red flag rules and to adhere to our internal KYC/AML policies.

While DeFi is operating independently today, as one of the fastest growing areas in cryptocurrency DeFi is likely to fall under the scrutiny of regulators in the future: indeed, ita seems impossible that a market of 40 Billion USD that is expanding by the multi-millions every day would not. Therefore, it is essential that any organization truly serious about its long-term future as a DeFi service provider operates under the best practices already established in traditional finance. As highlighted above, regulation itself is no guarantee: it is only as strong as those that implement and comply with it, and you don’t have to be regulated to do so.

Coinbase Reports Record-Breaking Q1 With $1.8 Billion in Revenue Ahead of IPO

A week prior to its direct listing on NASDAQ, Coinbase has posted preliminary Q1 data indicating a massive increase in its userbase and revenue. The trading volume has increased by nearly 300%, the revenue is about $1.8 billion, and more than 11% of all crypto assets are stored on the platform.

Coinbase’s Record-Breaking Q1

The largest US-based cryptocurrency exchange published its Q1 results yesterday, showing a substantial growth in every area compared to previous quarters.

Starting with the monthly transacting users (MTUs) – the increase is roughly 117% since the last three months of 2020. At the time, the number of the company’s user base was about 2.8 million, and it has expanded to 6.1 million in Q1 2021.

Naturally, this has also impacted the revenue, which has reached $1.8 billion. For comparison, this means a near 10x surge from the Q1 last year when it was around $190 million.

According to the preliminary estimations for this year’s first quarter, the net profit should be between $730 million and $800 million.

The company attributed a large part of its quarterly increase to the ongoing bull cycle in the cryptocurrency market. As bitcoin and numerous altcoins have exploded multi-fold in value since October 2020, it has garnered the attention of retail investors.

11.3% of Crypto Assets Held on Coinbase

Perhaps what’s even more notable for the entire cryptocurrency industry is the billions of dollars worth of digital assets held on the exchange. The report highlighted that as of March 31st, there were $223 billion stored on Coinbase.

With the entire market capitalization worth just shy of $2 billion at the time, this means that 11.3% of all cryptocurrency assets had a home on the US-based trading venue.

The firm’s estimations showed that roughly half – $122 billion – were “assets on the platform from institutions.” Coinbase is among the most preferred venues for accredited and institutional investors to receive exposure to bitcoin and other crypto assets. Consequently, the company projects a significant advancement on that front by the end of the year.

“We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class.” – reads the statement.

Coinbase’s record-breaking quarterly results come just a week before the company concludes its direct listing. As CryptoPotatoreported before, the giant exchange plans to go public on NASDAQ on April 14th.

Prepare Your Crypto Startups as Binance is Shopping
Prepare Your Crypto Startups as Binance is Shopping 101
Source: a screenshot, Instagram/binance

Major crypto exchange Binance plans to do about three acquisitions every month, according to CEO Changpeng Zhao (aka CZ).

Binance is “actively doing acquisition deals, especially in a lot of these new areas. My view is I’m not an expert in these areas, and it’s better for us to find strong teams that are already doing this well,” he told Bloomberg.

And the future, per the CEO, holds quite a few of these deals as well. CZ said that,

“We plan to do somewhere between 20 and 30 acquisitions a year. Most are smaller acquisitions—we don’t announce them. Some will be bigger ones like CoinMarketCap, but we do plan to do about 30 acquisitions each year, which probably means about three deals every month now.”

The CEO did not elaborate on potential acquisition targets.

As reported, responding to speculations in South Korean media that Binance might be among potential buyers of the Bithumb exchange, Binance said that they are “always open to considering strategic partnerships and investments at any given time.”

Meanwhile, in their recent M&A report, major consultancy company PwCsaid they expect to see further consolidation in the industry with some of the larger, well-funded, or profitable firms continuing their M&A activities.

“We expect the focus to be not on the acquisition of smaller competitors but rather of firms that offer ancillary services to their current offering (e.g. crypto media, data, compliance, research),” they added.

On multiple occasions, Binance stressed that they’re building “the infrastructure for the blockchain ecosystem.” They control both custodian and non-custodian crypto exchanges, develop Binance Smart Chain, own a token launch platform, have their own investment arm, an incubator for blockchain projects, provide digital asset research services, have their own crypto wallet, operate a charity foundation, and recently introduced a crypto pay service.

Also, in the interview, CZ went on to discuss some other potential plans. Unlike its competitor Coinbase, which has filed for a direct listing, Binance is “right now […] not looking at an IPO.” The CEO said that the company is cash-sufficient and able to grow itself, adding: “We don’t need a huge amount of money, we are profitable, and we are growing.”

On the other hand, as non-fungible tokens (NFTs) are all the rage now, Binance “may look at doing something there,” said the CEO.

Besides that, they plan to add more fiat channels, saying that the exchange added about 50 different channels worldwide last year, and that they could “probably add another 30 or 50 more this year.”

As for financial metrics related to the company in terms of growth, CZ claimed that they don’t have “a lot of specific numbers.” The numbers change quickly based on bitcoin (BTC) price, he said, adding that, as the company is lowering fees across various places, it’s too early in the year to estimate the revenue. But the volumes “have grown quite a bit” in the first two months of this year, the CEO said.

In December 2020, he said that the company expects to have profits of USD 800m to USD 1bn in 2020, up from about USD 570m in 2019.

Also, Binance is making a number of “fairly large expansions” in different areas, including the Binance Card – which is actually losing money, he said. This is fine though, he argued, “because we want to get that product out.”

As to whether Binance would eventually becoming a DAO (decentralized autonomous organization), the CEO said “it’s possible, but it’s going to take a number of years.”

In the meantime, as reported, Binance is being investigated by the US Commodity Futures Trading Commission over concerns that it allowed Americans to place wagers that violated US rules.

BTC Slips As Coinbase Sees 15% User Growth At Best, Focuses on Altcoins
BTC Slips As Coinbase Sees 15% User Growth At Best, Focuses on Altcoins 101
Source: Coinbase

The price of the most popular cryptocurrency, bitcoin (BTC), corrected lower following the much-anticipated announcement of Coinbase‘s results.

At 05:02 UTC, BTC trades at USD 57,576 and is down by 2% in a day and a week.

The US-based major crypto exchange, that is preparing for a direct listing of its shares on April 14, said that, according to their best scenario, the annual average number of their monthly transacting users (MTUs) is expected to growth by 15% and reach 7m this year.

“This scenario assumes an increase in crypto market capitalization and moderate-to-high cryptoasset price volatility. In this scenario, we expect that MTUs continue to grow for the remainder of 2021,” the company said.

Other two scenarios assume that MTUs might drop to 5.5m or 4m from the current 6.1m.

The 5.5m scenario assumes flat crypto market capitalization and low-to-moderate cryptoasset price volatility. While MTUs might drop to 4m if there is a significant decrease in crypto market capitalization, similar to the decrease in 2018, and low levels of cryptoasset price volatility thereafter.

However, Alesia Haas, Chief Financial Officer of the company, said during an earnings call that given the strong performance of Q1 2021, it is likely that annual average net revenue per user will exceed their historical range.

“Over the last 2 years, we have seen average annual net revenue per MTU range between USD 34 – USD 45 per month, with the low end of this range occurring in 2019, a period of low Bitcoin price and low cryptoasset price volatility, and the high end of the range occurring in 2020, a period of rising Bitcoin price,” Haas said, adding that the company believes that “we entered the fourth price cycle in late 2020.” They last 2-4 years, per the CFO.

Meanwhile, Brian Armstrong, Founder and CEO of Coinbase, stressed during the call that while Bitcoin is critical to the cryptoeconomy, “it’s just the beginning” as they’re innovating and creating new products and services: “In recent years, we have expanded to be much more than a place to buy and sell bitcoin.”

“You’ll often hear the comparison of Bitcoin to “digital gold”. But crypto is bigger than just Bitcoin — and Coinbase will ultimately strive to support every legitimate cryptocurrency in the market,” Armstrong said.

In Q1 alone, the company added support for 18 new assets, bringing the number of assets supported on the platform to 108.

Coinbase also revealed the following estimations for the first quarter of 2021:

  • Verified users of 56m
  • Assets on platform of USD 223bn, representing 11.3% crypto asset market share (includes USD 122bn of assets on platform from institutions)
  • Trading Volume of USD 335bn
  • Total Revenue of approximately USD 1.8bn
  • Net Income of approximately USD 730m to USD 800m
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately USD 1.1bn