5 strategies to start day trading crypto

Welcome to 10 Things Before the <keyword id="11907548" type="UNKNOWN" weightage="60" keywordseo="opening-bell" source="Orion">Opening Bell</keyword>.If this was forwarded to you, <a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell">sign up here.</a> Plus, download Insider's app for news on the go - <a href="https://apps.apple.com/app/apple-store/id554260576?pt=385758&amp;ct=06292021_newsletters&amp;mt=8amp;mt=8">click here for iOS</a> and<a href="https://play.google.com/store/apps/details?id=com.freerange360.mpp.businessinsider"> here for Android</a>.Plus, join us for an exclusive Insider webinar on November 17: The future of crypto and its path to mass adoption. <a href="https://www.businessinsider.com/crypto-investing-webinar-bitcoin-ethereum-altcoin-regulation-and-opportunities-ahead-2021-10">Sign up here.</a>Let's jump in. 1. Peloton is the latest reminder that the stay-at-home trend is losing steam. The company cut its 2022 sales forecast, as well as subscriber projections, <a href="https://markets.businessinsider.com/news/stocks/peloton-stock-q1-earnings-forecasts-reopening-bike-treadmill-sales-2021-11" target="_blank" rel="noopener">sending shares tumbling as much as 36% on Friday</a>. On an earnings call with analysts, Peloton said it had underestimated the impact the economic reopening would have on its business.It's an all-too-familiar development for stay-at-home stocks, which were previously the darlings of the market as people were forced into lockdown. Chegg, which offers online tutoring, <a href="https://www.forbes.com/sites/sergeiklebnikov/2021/11/02/chegg-stock-plunges-as-revenue-takes-a-hit-from-schools-reopening/" target="_blank" rel="noopener">tumbled 50%</a> last week after saying it was losing students. Streaming giant Roku and web-conferencing favorite Zoom have also seen their stocks suffer.As for Peloton, it's now <a href="https://www.businessinsider.com/peloton-freezing-hiring-after-it-slashed-full-year-forecast-cnbc-2021-11" target="_blank" rel="noopener">freezing hiring</a> as it mulls how to tackle the home-exercise slowdown. Founder and CEO <a href="https://markets.businessinsider.com/news/stocks/peloton-pton-stock-crash-fallout-founder-john-foley-not-billionaire-2021-11" target="_blank" rel="noopener">John Foley has tumbled out of the billionaire ranks</a> - at least for now - amid the share sell-off.But analysts on Wall Street remain relatively optimistic. There was a wave of price-target cuts on Friday, but <a href="https://www.businessinsider.com/peloton-bike-tread-to-dominate-despite-earnings-analysts-2021-11" target="_blank" rel="noopener">forecasts are still bullish in the long term</a> compared to current levels.2. <a href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-elon-musk-share-sale-twitter-poll-2021-11">Tesla slips</a> as Elon Musk weighs dumping 10% of his shares after a Twitter poll. US stocks are drifting as investors book profits following fresh record highs, while the total crypto market value hits $3 trillion for the first time. <a href="https://markets.businessinsider.com/news/stocks/stock-market-news-us-record-highs-jobs-report-nonfarm-recovery-2021-11">Check out how markets are moving here</a>.3. Morgan Stanley's stock-strategy team maintains a portfolio that's beaten the S&amp;P 500 for 3 years. CIO Mike Wilson just revamped it to be more defensive against shrinking spending and economic growth. <a href="https://www.businessinsider.com/stocks-to-buy-best-ideas-investment-ideas-portfolio-morgan-stanley-2021-11" target="_blank" rel="noopener">Here are the top 9 picks from the new list.</a>4. On the docket: PayPal, Softbank Corp., and AMC Entertainment, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting.</a>5. What's in the new infrastructure bill? The House passed the long-awaited $1 trillion bipartisan bill on Friday, which includes $550 billion to fund advancements in public transit, clean energy, electric vehicles, and roads and bridges. <a href="https://www.businessinsider.com/whats-in-the-infrastructure-bill-amtrak-clean-energy-2021-7" target="_blank" rel="noopener">Here's a complete rundown of what's in it.</a>6. Billionaire investor Stanley Druckenmiller sounded the bubble alarm on meme stocks and crypto. Taking a short-term approach can prove disastrous for investors, he warned. <a href="https://markets.businessinsider.com/news/stocks/stanley-druckenmiller-klarman-meme-stocks-crypto-market-bubble-asset-prices-2021-11">Here's why he thinks the current bubble is far broader than the dot-com bubble.</a>7. JPMorgan said ethereum is a better bet than bitcoin as interest rates continue to rise. Ethereum is at the heart of both decentralized finance and the NFT market, the firm noted. <a href="https://markets.businessinsider.com/news/currencies/ethereum-ether-bitcoin-crypto-defi-nfts-interest-rates-gold-jpmorgan-2021-11" target="_blank" rel="noopener">Read why the firm expects bitcoin to fair worse when rates and yields rise.</a>8. A fake press release saying Kroger will accept bitcoin cash send the crypto soaring briefly on Friday. Kroger made a public statement denying the fraudulent report, and most gains were quickly erased. It's <a href="https://markets.businessinsider.com/news/currencies/kroger-bitcoin-cash-price-spike-fake-press-release-walmart-litecoin-2021-11" target="_blank" rel="noopener">reminiscent of when Walmart had to say it didn't accept litecoin</a> following a previous scam.9. How retail investors with real-estate aspirations can acquire shares of properties with as little as $10. This is according to Ben Miller, the co-founder and CEO of Fundrise, a $1.7 billion real estate investment company. He also shares <a href="https://www.businessinsider.com/how-to-earn-passive-income-real-estate-investing-fundrise-ceo-2021-11" target="_blank" rel="noopener">two assets within the industry that "have been and will continue to be highfliers."</a>10. 7 altcoins to buy. Technical analyst Adrian Zduńczyk says bitcoin's next big surge will be at $70,000, and that other cryptos will follow it higher. <a href="https://www.businessinsider.com/altcoins-to-buy-before-bitcoins-next-surge-bull-run-2021-11" target="_blank" rel="noopener">Here's his full list.</a>Compiled by Phil Rosen. Feedback? Email <a href="mailto:prosen@insider.com">prosen@insider.com</a> or tweet <a href="https://twitter.com/philrosenn">@philrosenn</a>.Sign up for <a href="https://www.businessinsider.com/subscription/newsletter">more Insider newsletters here</a>.

10 things before the opening bell

<ul><li><keyword id="418743" type="PERSON" weightage="60" keywordseo="Michael-Burry">Michael Burry</keyword> subtly criticized non-fungible tokens (NFTs) this week.</li><li>"<keyword id="143512" type="COMPANY" weightage="60" keywordseo="The-Big-Short">The Big Short</keyword>" investor shared a quote comparing NFTs to "magic beans."</li><li>Burry has blasted Tesla, <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword>, Dogecoin, GameStop, and other popular bets this year.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">See more stories on Insider's business page</a>.</li></ul>Michael Burry isn't a fan of non-fungible tokens (NFTs), if his <a href="https://twitter.com/michaeljburry">Twitter profile</a> is any indication.The investor has changed his header image to a screenshot of this quote: "NFTs exist so that the crypto grifters can have a new kind of magic bean to sell for actual money, and pretend they're not selling magic beans."The quote is from "NFTs: crypto grifters try to scam artists, again," an article <a href="https://davidgerard.co.uk/blockchain/2021/03/11/nfts-crypto-grifters-try-to-scam-artists-again/">posted</a> by David Gerard on his "Attack of the 50 Foot <keyword id="6355684" type="PERSON" weightage="60" keywordseo="Blockchain">Blockchain</keyword>" blog last week. Gerard is the author of a book with the same name as his blog, which tackles bitcoin, smart contracts, and other <keyword id="6357017" type="DEFINITION" weightage="60" keywordseo="cryptocurrency">cryptocurrency</keyword> topics.The quote shared by Burry is a "correct description of the process," Gerard told Insider in an email. "The crypto world has always been about creating a new kind of worthless magic bean to sell for actual money - first bitcoins, then altcoins, then ICO tokens, then DeFi, now NFTs.""You *could* say something is worth what someone will pay for it; but it's *also* fair to state that the intrinsic value of these things is zero," Gerard continued. "And you can definitely get rich with them, but you're much more likely to lose your shirt."<keyword id="4668945" type="PERSON" weightage="60" keywordseo="nft">NFT</keyword>s serve as virtual certificates of ownership and authenticity for digital items, and are stored securely on a blockchain. They're getting lots of attention after a digital art NFT was <a href="https://www.businessinsider.com/art-auction-nft-beeple-top-selling-most-expensive-sale-millions-2021-3?r=US&amp;IR=TIR=T">sold for $69 million</a> at a Christie's auction last week.<a href="https://twitter.com/elonmusk/status/1371549960030842893">Tesla CEO Elon Musk</a>, <a href="https://markets.businessinsider.com/currencies/news/billionaire-jack-dorsey-sell-first-tweet-as-nft-highest-bid-2021-3-1030159557">Twitter CEO Jack Dorsey</a>, <a href="https://markets.businessinsider.com/currencies/news/billionaire-mark-cuban-sells-motivational-quote-nft-crypto-blockchain-2021-3-1030186572">"Shark Tank" star Mark Cuban</a>, and other high-profile figures have also discussed and dabbled with the technology in recent days. However, critics question the value of NFTs given it's virtually impossible to stop others copying, downloading, and sharing digital images and videos.Moreover, Gerard argues on his blog that NFT proponents are using artists as "aspiring suckers" to pump cryptocurrencies, and handing them "crumbs" for their efforts.Burry is best known for his billion-dollar bet against the US housing bubble in the mid-2000s, which was chronicled in the book and the movie, "The Big Short." He's <a href="https://markets.businessinsider.com/currencies/news/big-short-michael-burry-tweets-tesla-robinhood-bitcoin-gamestop-bubble-2021-3-1030156694">slammed popular investments</a> including Tesla, GameStop, bitcoin, and Dogecoin this year, and warned investors against buying into speculative bubbles.The Scion Asset Management boss <a href="https://markets.businessinsider.com/currencies/news/big-short-michael-burry-stops-tweeting-bubble-warnings-bitcoin-memes-2021-3-1030155185">recently signaled</a> he was taking a break from tweeting. However, the latest change to his Twitter profile suggests he still wants to have his say.

'Big Short' investor Michael Burry slams NFTs with a quote warning 'crypto grifters' are selling them as 'magic beans'

<ul class="summary-list"><li>A new green cryptocurrency called <keyword id="3019433" type="PERSON" weightage="60" keywordseo="Chia">Chia</keyword> (XCH) is set to start trading on Monday, May 3.</li><li id="recirc">Chia uses "proof of space" and "proof of time" instead of <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword>'s "proof of work" to mint new coins.</li><li>The rise of Chia is already causing shortages and price increases at hard drive and SSD manufacturers. </li></ul>A new "green" cryptocurrency called Chia is set to start trading next week. It was created by Bram Cohen, the inventor of BitTorrent, and uses what's called "proofs of space and time" to "farm" rather than "mine" new coins.The model is a less energy-intensive method of producing digital assets compared to bitcoin's "proof of work" concept, which has led that currency to be criticized for using <a href="https://cbeci.org/cbeci/comparisons">as much energy</a> as some entire nations.Chia and the company behind it, <keyword id="11186768" type="UNKNOWN" weightage="60" keywordseo="chia-network">Chia Network</keyword>, have already attracted significant attention from investors.Chia Network boasts big-name backing from the likes of <keyword id="508487" type="PERSON" weightage="60" keywordseo="Andreessen-Horowitz">Andreessen Horowitz</keyword>, <keyword id="2067923" type="PERSON" weightage="60" keywordseo="Naval-Ravikant">Naval Ravikant</keyword>, and Cypherpunk Holdings, according to data from <a href="https://www.crunchbase.com/organization/chia-network/company_financials">Crunchbase</a>.The company also has attracted publicly traded crypto mining companies like <a href="https://markets.businessinsider.com/stocks/icbu-stock">iMD Companies</a>. "We're going all-in on Chia," Rick Wilson, iMD CEO, said in a <a href="https://www.globenewswire.com/news-release/2021/04/29/2219690/0/en/iMD-Companies-Inc-Focuses-Resources-on-Farming-of-Chia-Chia-net-Cryptocurrency-Coins-for-All-Facilities.html">recent press release</a>. "With our extensive research, we believe that Chia is here to stay and will be utilized on a global financial level. We believe our early decision to farm Chia will result in increased revenues for iMD."Chia Network released a <a href="https://www.chia.net/2021/02/10/chia-businesss-whitepaper.html">Business Whitepaper</a> describing its new cryptocurrency (XCH) on February 9 and launched "farming rewards" on March 19.Chia will begin transactions and trading on May 3.Here are six things to know about the new cryptocurrency before it starts trading.<h3>The 'proofs of space and time' model</h3>The "proofs of space and time" model is central to Chia's value proposition. The idea is that users, called "farmers," will "seed" their hard drives or solid-state drives (SSDs) with software that puts cryptographic numbers into specific "plots."These "plots" are then awarded with blocks from the <keyword id="6355684" type="PERSON" weightage="60" keywordseo="Blockchain">blockchain</keyword> based on the percentage of total space a farmer has compared to the entire network. Then a VDF server, known as a "Timelord," verifies that block, allowing the chain to move forward and awarding XCH to the farmer.Chia Network says the system will provide better security than <keyword id="2810876" type="PERSON" weightage="60" keywordseo="ethereum">Ethereum</keyword> and reduce the energy expenditure costs required by bitcoin's "proof of work" model.Read more: <a href="https://www.businessinsider.com/crypto-arbitrage-trading-strategy-alameda-research-sam-bankman-fried-billionaire-2021-4" target="_blank" rel="noopener">A 29-year-old self-made billionaire breaks down how he achieved daily returns of 10% on million-dollar crypto trades, and shares how to find the best opportunities</a><h3>Hard drive and SSD shortages and price increases</h3>Chia's "proofs of space and time" model may be an energy saver, but the method is already creating issues for hard drive and SSD suppliers.A recent report from <a href="https://www.digitimes.com/news/a20210427PD200.html">DigiTimes</a> revealed the Taiwanese memory and storage manufacturer Adata has seen a 500% increase in SSD orders since the start of April.The South China Morning Post also <a href="https://www.scmp.com/tech/big-tech/article/3130683/chinese-coin-miners-flock-new-cryptocurrency-chia-resulting-hard">reported</a> that Chinese e-commerce platforms, including <a href="https://markets.businessinsider.com/stocks/baba-stock">Alibaba's</a> Taobao and <a href="https://markets.businessinsider.com/stocks/jd-stock">JD.com</a>, have seen multiple models of enterprise-grade hard drives with large capacities selling out."Many people have inquired about large hard drives for Chia mining in the past few days," one customer service agent at a Taobao online told the South China Morning Post.The rise in hard drive and SSD sales is a result of the new requirements for storage to "farm" Chia.If the cryptocurrency ends up being anywhere near as popular as other altcoins, the business model could put real pressure on memory and storage manufacturers' supplies and pricing moving forward.<h3>A new transaction programming language</h3>Chialisp is Chia Network's new smart transaction programming language.The company says its language combines the best aspects of bitcoin's "UTXO model" and Ethereum's "Solidity model" to allow for more secure, less energy-intensive functionality.To learn more about Chialisp, check out Chia Network's <a href="https://www.chia.net/2019/11/27/chialisp.en.html">introduction to the language</a> posted by Bram Cohen back in 2019.<h3>No hard cap, and a strategic reserve to reduce volatility</h3>Chia Network doesn't have a hard cap on the total number Chia coins on its blockchain like bitcoin does. Instead, the company prefers a predictable, continuous form of inflation."Being able to directly calculate a shared expectation of the total supply at any given time gives much the same financial and peace of mind benefit," the company's white paper notes.Chia Network also holds a strategic reserve of 21 million XCH, in a nod to bitcoin, that it will use to reduce the volatility of its coin and mitigate any potential crashes.Read more: <a href="https://www.businessinsider.com/how-to-trade-crypto-price-momentum-ethereum-prediction-bitcoin-3000-2021-4" target="_blank" rel="noopener">A crypto technical analyst breaks down why ethereum is set to rise to $3,000 and is a better investment than bitcoin right now - and explains how he analyzes when to buy a cryptocurrency</a><h3>Going public and embracing regulation</h3>Unlike many other cryptocurrency offerings, Chia has a formal company behind it, and they intend to go public."We hope to file and list our equity in the next six to 12 months," Gene Hoffman, the CEO and President of Chia Network <a href="https://decrypt.co/68617/home-mining-crypto-chia-sparks-hard-drive-shortage-ahead-of-trading-debut">told Decrypt</a>.Not only that, but Chia Network has also said it will embrace regulation because management has seen "scams and farces" in the space hurt investors."It should not be controversial that investors deserve protection through public disclosure and certainly the public shouldn't be sold investments without that legally required transparency," the company's whitepaper states.<h3>An at-home farming push</h3>Bitcoin mining has become increasingly difficult for at-home miners due to the expansion of publicly-traded mining companies like <a href="https://markets.businessinsider.com/stocks/riot-stock">Riot Blockchain</a> and <a href="https://markets.businessinsider.com/stocks/mara-stock">Marathon Digital Holdings.</a> These companies use ASIC miners that have greater computing power than the average at-home miner could afford. This has made it so the rewards for mining bitcoin at home no longer make financial sense for many miners, especially when energy costs are considered.With Chia, that could change. At-home users will have the capability to compete to earn XCH by "seeding" their SSDs or hard drives and, at least for now, the lack of competition should allow for a more profitable experience.Chia is also a very accessible cryptocurrency. Gene Hoffman, the CEO and President of Chia Network, says it was designed that way on purpose."It is super simple. Just download the Mac or Windows version and double click," Hoffman <a href="https://www.coindesk.com/5-takeaways-from-chia-networks-new-white-paper">told CoinDesk</a>. "I'm pretty sure this will be the easiest cryptocurrency to validate for normal people ever."New <keyword id="2420795" type="PERSON" weightage="60" keywordseo="cryptocurrencies">cryptocurrencies</keyword> are a dime a dozen, but it's rare to see big-name investors in the crypto space come together with top developers to address a common criticism of crypto, rising energy consumption.While no one can say whether or not Chia will be a success, it's clear the cryptocurrency is offering something that most new altcoins don't with its "proofs of space and time" model.To learn more about Chia, check out the company's <a href="https://www.youtube.com/watch?v=9P0vaux2h6o&amp;t=450s450s">business white paper zoom meeting</a> from February 11.

A new green cryptocurrency called Chia uses a less energy-intensive method of minting new coins. Here are 6 things to know about the digital asset before it starts trading on Monday.

<ul><li><keyword id="5565" type="LOCATION" weightage="20" keywordseo="South-Korea">South Korea</keyword> doesn’t want to ban cryptocurrencies, but it does want strict regulation in place.</li><li>The clock is ticking for crypto exchanges in the country, with the government setting a September 2021 deadline for them to comply.</li><li>Caught in limbo, players in the crypto industry are reportedly thinking of suing the government to fight back on terms and conditions, which are not in their control.</li></ul>South Korea’s crypto industry is undergoing one of the biggest shake-ups in history. The past four years have been a tumultuous storm between crypto exchanges and the regulatory authorities. And now, in 2021, the government has finally put its put down. What comes next will either make or break South Korea’s crypto legacy. For those who only turned into the crypto blaze this year, South Koreans were among the major players during the 2017 crypto boom. Even though they account for less than 1% of the world population, they were behind 30% of the crypto trading volume that year, according to estimates by fintech company Cindicator at the time. However, the boom came with its own terms and conditions — and the impact is playing out till date. And, there’s a lot on the line if these exchanges mess up. <div type="image" title="timeline crypto in s koreaArtboard 1" msid="84018031" hostid="261" caption="&amp;lt;p&amp;gt;Timeline of how cryptocurrency regulations have unfolded in South Korea so far&amp;lt;/p&amp;gt;"></div> <h2 style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;"><cmsannotation type="cmsannotation" annotationid="You can’t be anonymous if you want trade crypto in South Korea" comment="subhead" text="You can’t be anonymous if you want trade crypto in South Korea">You can’t be anonymous if you want trade crypto in South Korea</cmsannotation></h2>After the crypto boom hit the peninsular nation in 2017, the South Korean government decided to restrict the use of anonymous accounts in <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">cryptocurrency</a> trading. While cryptocurrencies were not regarded as lawful money, exchanges were permitted and governed by a strict regulatory framework. But, just because an account is no longer anonymous, that does not mean the identity set up is real. So, in 2018, the Financial Services Commission (FSC) tightened reporting requirements for banks with crypto exchange accounts. A new law <a href="https://www.financemagnates.com/cryptocurrency/regulation/korean-fsc-orders-banks-to-mandate-id-verification-of-crypto-clients/">introduced</a> the concept of ‘real-name bank accounts’ which helps establish the unique and verified identity of a trader, indirectly helping keep a tab on money laundering and other unlawful activities. And, traders could only transact with cryptocurrency dealers that used the same bank, putting the responsibility to verify the customer identities on both the banks and the exchanges. <cmsannotation type="cmsannotation" annotationid="You can’t just set up a crypto exchange, you need approval from a bunch of authorities" comment="subhead" text="You can’t just set up a crypto exchange, you need approval from a bunch of authorities">You can’t just set up a crypto exchange, you need approval from a bunch of authorities</cmsannotation> In March 2020, the Act on Reporting and Use of Specific Financial Transaction Information was amended. It extended mandatory anti-money laundering and counter-terrorist financing (AML/CTF/KYC) obligations to all crypto exchanges in the country. Simply put, the financial regulator has tasked its intelligence team to keep an eye on large trading volumes that could be potential laundering attempts. And, ultimately, crypto exchanges would require a license from the FSC's Financial Intelligence Unit in order to continue with their business. This makes the process of tracking illegitimate activity proactive, rather than reactive. The authorities can keep an eye on suspicious transactions directly and don't need to bureaucratically request data from exchanges after a crime is reported. The new laws apply to Virtual Asset Service Providers (VASPs), and an entity is called one if it is: <ul><li>Selling and purchasing of cryptocurrencies</li><li>Crypto-to-crypto transfers</li><li>Transmitting cryptocurrencies</li><li>Administration or safekeeping of virtual assets</li><li>Custodian</li><li>Initial coin offerings</li></ul>Exchanges are also required to get a certificate from Korea Internet &amp; Security Agency (KISA) for an Information Security Management System (ISMS). South Korea's crypto framework fulfils the international Financial Action Task Force (FATF) requirements too. <h2 style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;"><cmsannotation type="cmsannotation" annotationid="2021 brings a catch with heavy consequences" comment="subhead" text="2021 brings a catch with heavy consequences">2021 brings a catch with heavy consequences</cmsannotation></h2>Even though these measures aren't new and have been in existence since 2018, the South Korean government has now made them mandatory. The regulations were officially enacted in March 2021 and there's a six-month transition period with a September 2021 deadline. Hence, <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">crypto exchanges</a> are now looking at a sink or swim decision. If they don't comply, they'll either have to shut down or move out of the country in order to keep operating. And, not abiding by the new law carries a punishment of up to five years in prison or a fine of 50 million Korean won (around $43,000 or ₹32 lakh) — neither of which is an enticing prospect. For some exchanges, the decision may be out of their hands. Domestic banks hold the key to their customers being able to trade on crypto exchanges, and right now they’re reluctant to open the door fearing the possibility of being involved in money laundering. The ‘big four’ — UPbit, Bithumb, Coinone, and Korbit — are currently under risk assessment by K Bank, NH Bank and Shinhan Bank. Meanwhile, smaller exchanges and related businesses are caught in limbo. <cmsannotation type="cmsannotation" annotationid="South Korean crypto exchanges may look at legal recourse" comment="subhead" text="South Korean crypto exchanges may look at legal recourse">South Korean crypto exchanges may look at legal recourse</cmsannotation> Players in the South Korean crypto industry are considering <a href="https://news.bitcoin.com/korean-crypto-exchanges-suing-government-banking-requirements/">filing a lawsuit</a> against the government and the financial regulator, alleging the new law is unconstitutional. According to them, the authorities should be held accountable for cryptocurrency and exchange verification but are conveniently putting all the responsibility on banks. And, since the banks are risk-averse, they prefer giving up on crypto altogether rather than venture into turbulent territory. "We are facing an existential crisis. We want to legitimize our business, but banks are reluctant to offer us real-name accounts," Lee Chul-ie, the CEO of cryptocurrency exchange Foblgate, told the <a href="https://www.ft.com/content/c3bbf8cc-6d6c-4673-bf47-b3a5e3e32dc8">FT</a>. The regulation creates a new black and white for these smaller companies, thrusting them forcibly towards the grey. A report from <a href="http://www.koreaherald.com/view.php?ud=20210628000753">The Korea Herald</a> also says that crypto exchanges with too many coins could be denied real-name accounts. The report cites risk assessment guidelines that ask commercial lenders to classify exchanges with "a high number and frequency of virtual money transactions" as high risk. The rule is made to discourage the adoption of altcoins that are often used to scam investors or have no inherent backing per se. <h2 style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;"><cmsannotation type="cmsannotation" annotationid="Meanwhile, South Korea wants to set up its own centralised cryptocurrency" comment="subhead" text="Meanwhile, South Korea wants to set up its own centralised cryptocurrency">Meanwhile, South Korea wants to set up its own centralised cryptocurrency</cmsannotation></h2>The Bank of Korea (BoK) — South Korea's central bank — will soon seek <a href="https://www.pymnts.com/digital-payments/2021/south-korea-looks-for-tech-partner-to-launch-digital-won/">bids</a> for a technology partner to launch a pilot program for a ‘digital won’. The pilot will run from August to December and involve multiple simulations involving banks, retailers, deposits, fund transfers, and mobile payments. BoK's research <a href="https://www.reuters.com/business/finance/s-koreas-cbank-moves-develop-pilot-digital-currency-2021-05-24/">suggests</a> that the new central bank digital currency (CBDC) will be treated on par with fiat currency and not a crypto asset despite being a digital currency. Hence, one will likely be able to exchange digital won for cash. While the plan is still in its early stages, a trial run is definitive. Being a technological powerhouse, South Korea is leaving no stone unturned in determining the actual value of blockchain and its wider repercussions. It's among the first countries to develop an in-depth framework that factors in practicality with future promises as the world watches with bated breath to see how it will all play out. <a href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/the-worlds-largest-crypto-exchange-is-having-a-hard-time-convincing-regulators-with-multiple-bans-piling-up/articleshow/83941711.cms">The world's largest crypto exchange is having a hard time convincing regulators with multiple bans piling up</a> <a href="https://www.businessinsider.in/cryptocurrency/news/chinas-oldest-crypto-exchange-exits-cryptocurrency-business-amid-government-crackdown-on-bitcoin-mining/articleshow/83953113.cms">China's oldest crypto exchange exits cryptocurrency business amid government crackdown on Bitcoin mining</a> <a href="https://www.businessinsider.in/cryptocurrency/news/google-facebook-and-tesla-crypto-tokens-are-launching-on-crypto-exchange-ftx/articleshow/83885349.cms">Google, Facebook, and Tesla crypto tokens are launching on crypto exchange FTX</a>

South Korea is open to cryptocurrencies and making an effort to regulate them, but crypto exchanges still aren't happy

<ul class="summary-list"><li>Influencers are tying themselves to cryptocurrencies and their exchanges amid a crypto boom.</li><li><keyword id="9054776" type="UNKNOWN" weightage="60" keywordseo="charli-damelio">Charli D'Amelio</keyword>, Jake Paul, and <keyword id="9097926" type="UNKNOWN" weightage="60" keywordseo="mrbeast">MrBeast</keyword> have endorsed crypto exchanges or currencies.</li><li>Cryptocurrency investment can be risky, potentially causing investors to lose what they put in. </li></ul>On Wednesday, the D'Amelio family posted a picture on their <a href="https://www.instagram.com/p/COgLlQFBQsx/">Instagram</a> thanking cryptocurrency app Gemini for "Charli's birthday gift."As part of a partnership deal, the company gave the parents of Charli D'Amelio, who has over 114 million followers on TikTok, an undisclosed amount of Bitcoin, according to a Gemini spokesperson. The app regularly works with the "influencer community," the Gemini spokesperson said, "to help educate their followers about cryptocurrency and promote the Gemini brand."The sponsored gift for the TikTok star's 17th birthday didn't appear to come as a surprise. On April 30, Marc, the patriarch of the <a href="https://twitter.com/marcdamelio/status/1388013269722419203">D'Amelio clan, tweeted,</a> "Charli wants a Bitcoin for her birthday," despite Charli not being old enough to trade on the Gemini app, according to its terms of service. When a Twitter user questioned if the teen actually wanted crypto as a birthday present, <a href="https://twitter.com/marcdamelio/status/1388014283800276994">Marc responded</a> that she's "been asking for a Bitcoin all day."Cryptocurrencies, or virtual tokens that can be mined by computers completing complex algorithms, have a total market capitalization of <a href="https://coinmarketcap.com/">$2.4 trillion</a>. Their values and name recognition are largely growing, in part, thanks to online promotions. The price of these coins can fluctuate wildly, sometimes for no discernable reason, making huge losses possible. Influencers from all corners of social media have capitalized on the growing industry around cryptocurrency, despite its volatility.<h2>Creators are pushing what some label 'scam coins' </h2>Influencers have leveraged their relationships with viewers to promote cryptocurrencies, and it's usually not entirely clear what financial incentives are at play in these promotions. According to <a href="https://www.businessinsider.com/generation-z-banking-fintech-payments-social-media-growth-customers-2021-2">Insider Intelligence</a>, Gen Z (people born between 1998 and 2016) will be the largest US consumer market by 2026, with 82 million people. Appealing to that demographic with influencers and the parasocial relationship that they build can allow crypto ventures to expand their reach. 22-year-old social media star Tana Mongeau recently posted a sponsored Instagram post promoting the "Tits Coin" ($TITS), a decentralized finance token that started in 2014 that gives 5% of its liquidity pool (a collection of coins stored to facilitate decentralized trading) to breast cancer research.On March 31, Daniel Keem, host of YouTube's DramaAlert channel with 5.8 million subscribers, tweeted a brief promotion of SafeMoon, a new online currency that <a href="https://www.thesun.co.uk/money/14692373/what-is-safemoon/">launched earlier that month.</a> Throughout April, Keem tweeted about the coin nearly two dozen times, showing off its rise in price and helping the decentralized finance token to trend on social media. It rose from one ten-millionth of a cent to one ten-thousandth of a cent mid-month.Others also started to support the coin on social media, including rapper Lil Yatchy and Backstreet Boys member Nick Carter.Other influencers like Jake Paul, the controversial YouTuber and boxer who has 20 million subscribers, <a href="https://twitter.com/jakepaul/status/1375868696980123649?lang=en">have backed Safemoon on Twitter.</a> Paul has been a staunch supporter of cryptos like Dogecoin and Bitcoin, and <a href="https://www.forbes.com/sites/billybambrough/2021/02/17/exclusive-youtube-star-jake-paul-discussed-creating-own-cryptocurrency-as-bitcoin-and-dogecoin-mania-spreads/?sh=7cc26ed71b21">told Forbes in February</a> that crypto is "the future...I'm speaking with my friends constantly about it. We're just scratching the surface.""These tokens have zero purpose, aside from making early speculators and themselves rich, as the token itself won't be used for anything," <a href="https://www.vice.com/en/article/4avd8p/safemoon-cryptocurrency-made-people-millions">trader Michaël van de Poppe told Vice in May about Safemoon.</a>"It's the flip-side of everything that the cryptocurrency ecosystem tries to achieve."Keem has also pushed other volatile cryptocurrencies like XRP and Bonfire. He tweeted that he is "not a financial advisor" and that you should "not take any financial advice" from him. Jimmy Donaldson, known as the philanthropic YouTuber MrBeast who has over 60 million subscribers, is an investor in "Refinable," a non-fungible token (NFT) company that sells tokens to fund transactions and is even featured on the <a href="https://refinable.com/">site's home page</a>.Other YouTubers started to endorse the coin, with the 116,000-subscriber channel My Financial Friend posting a video titled, "The Next 100x Altcoin?! Why I'm Buying The Refinable FINE Token Tomorrow!"The launch of Refinable did not go as expected. The coin was supposed to launch at $.033 but the price skyrocketed almost immediately to $8 due to "severe congestion" on Binance's trading platform, BSC. Over the next few hours, the price dropped drastically, hitting a low of $1.82. Those that invested immediately responded to Chan, frustrated with losing money. "People lost a lot of money and that's something that happens," My Financial Friend said in a follow-up video. "Everyone on YouTube and the media can say it will be great… but there is a high level of risk with these things." <h2>Cryptocurrency prices have recently surged alongside social media promotions</h2>Traditional celebrities and popular online figures played a significant role in getting the crypto hysteria rolling, using their audience in a similar vein as influencers do.When Tesla CEO Elon Musk changed his Twitter bio to "#bitcoin" in January, the coin's price jumped <a href="https://www.forbes.com/sites/ronshevlin/2021/02/21/how-elon-musk-moves-the-price-of-bitcoin-with-his-twitter-activity/?sh=3e88490e5d27">$6,000 in one hour.</a> In February, Tesla started accepting <a href="https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html">Bitcoin as payment for their cars</a> while investing $1.5 billion into the coin. Musk had a similar effect on <a href="https://markets.businessinsider.com/currencies/news/elon-musk-dogecoin-community-appointed-ceo-novogratz-galaxy-digital-2019-2021-5-1030389572">Dogecoin</a>, the cryptocurrency based on the meme of a Shiba Inu popular nearly a decade ago. Musk's first reference to <a href="https://twitter.com/elonmusk/status/1340590280848908288">doge came in December 2020</a> and since then he's mentioned it over a dozen times, calling it the <a href="https://twitter.com/elonmusk/status/1357241340313141249">"people's crypto."</a> Soon, other content creators started to push Doge, like Mia Khalifa who shared she was buying Dogecoin in January. Since then, the value of a single Dogecoin has risen over 1,000% and created a string of copycat cryptos to capitalize on the trend. Bitcoin, and other cryptos like Etherium, have a limited amount of pieces that can be created before the supply is gone. Alt options like Dogecoin can be mined forever without running out, making its value appealing to those willing to invest in an idea or meme that doesn't have as much intrinsic value.This follows the wave of hysteria around the rise in the price of <a href="https://markets.businessinsider.com/news/stocks/dogecoin-price-rally-like-gamestop-social-media-cryptocurrencies-celebrity-2021-5-1030395377">Gamestop stock</a> earlier this year, which was caused by Reddit users. <h2>Cryptocurrency investments are 'ultra-volatile'</h2>Investing in cryptocurrency is a risk with potentially high rewards. Unlike gold, which has real-world value, crypto is only valuable to those that see interest in the technology or the potential adaption could bring."Gold is, no pun intended, the standard if you want to measure purchasing power over millennia," JP Thierot, CEO of Uphold, a digital money platform, previously told <a href="https://markets.businessinsider.com/currencies/news/bitcoin-vs-gold-experts-cryptocurrency-precious-metals-analysis-2021-2-1030103905">Insider.</a> "What bitcoin would seem to possess is the potential to go up to multiples of a moonshot." A report in March from <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-volatility-forecast-limited-tradability-analysis-deutsche-bank-2021-3-1030229906">Deutsche Bank</a> labeled Bitcoin as "ultra-volatile," and that "in 2020, 28 million bitcoins changed hands (150% of total bitcoins in circulation), compared to 40 shares of Apple (270% of its total shares in circulation)." <a href="https://markets.businessinsider.com/currencies/news/bitcoin-volatile-dollar-cryptocurrencies-digital-currency-federal-reserve-jerome-powell-2021-3-1030233742">That same month</a>, Federal Reserve Chair Jerome Powell said that crypto assets are "not backed by anything. They're more of an asset for speculation."

Influencers like 17-year-old Charlie D'Amelio are endorsing risky cryptocurrency trading to their followers

<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div><ul><li>Crypto market has more than halved in size since the start of the year.</li><li>Abra CEO Bill Barhydt thinks Western institutional investors will start investing this year and provide price support.</li><li>"Once the floodgates are opened, they're opened."</li></ul> LONDON - The founder of a Silicon Valley-based cryptocurrency business said the sector will boom again this year once big&#xa0;investors watching from the sidelines move into the market.Abra CEO Bill Barhydt told Business Insider: "I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose.He added: "Once the floodgates are opened, they're opened."Cryptocurrencies exploded in popularity and price before Christmas but the market has declined in size from over $800 billion at its peak in mid-December to $300 million today.The slump in prices has coincided with a decline in Google search traffic for crypto-related topics, which closely correlates with prices.Despite market wobbles, Barhydt is confident that prices will recover later this year as institutional investors such as hedge funds and asset managers begin to dip their toes into crypto. Speaking to Business Insider this week during a trip to Europe, Barhydt pointed out that some Japanese financial institutions began investing in crypto at the end of last year and that was partially behind the price rally at the time."There really is zero large-scale institutional money from the west in crypto right now," Barhydt said. "That is happening in Japan. Once a arge sizable chunk of Western institutional money starts to come in - watch out."Institutional interest is now starting to grow regardless of the Google trends."Barhydt said institutional investment in assets like bitcoin or ethereum will create a "halo effect" for the wider crypto market and he said: "That's going to happen this year I think."Regulators around the world have been moving to crack down on cryptocurrency markets, <a href="http://uk.businessinsider.com/ico-cryptocurrency-pump-and-dump-telegram-2017-11">which have been plagued by scams and hacks</a>. The US Securities and Exchange Commission has in recent weeks <a href="https://www.wsj.com/articles/crypto-focused-hedge-funds-on-secs-radar-1521757104">reportedly begun looking at hedge funds that have invested in cryptocurrencies.</a> Barhydt is unphased by this and believes regulation will actually help encourage institutional investors."We're getting closer and closer to real clarity in the West that it's OK putting half a percent of your assets into crypto," he said.While half a percent is a tiny amount of exposure for big investment firms, it could still work out at hundreds of millions of dollars, which would be a huge boost to crypto markets, Barhydt said.<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div>Abra is a digital wallet designed for smartphones that lets people around the world buy and hold up to 20 cryptocurrencies and 50 fiat currencies.Barhydt, a serial entrepreneur, founded the business in 2014 and it has raised $40 million in funding from the likes of American Express, Fidelity's venture capital arm, and Foxconn, the Asian manufacturer of parts for Apple.Abra expanded its offering from bitcoin and ethereum to its <a href="https://www.coindesk.com/abra-adds-18-cryptocurrencies-to-mobile-wallet/">current suite of 70 crypto and fiat currencies earlier this month</a>. Barhydt said the reception has been better than Abra expected and he said the fact that successful launches are possible in a down market demonstrates the resilience of the crypto space."People are really interested in altcoins, what's going to be the next big thing," he said. "We weren't expecting the growth to be this fast."<a href="http://www.businessinsider.com/intelligence/bitcoin-101?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen&amp;utm_content=fintech_ctgr_leadgen&amp;utm_campaign=fintech_ctgr_leadgen_bitcoin-101"></a><div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/trade-war-intelligent-investing-economic-growth-companies-tech-2018-3">Trade war fears are escalating - here's who has the most to lose</a></h3> <div> </div> </div></hr>

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