Stablecoin Competition Heats Up As Bitcoin Tops $40k, Says Analyst Mike Jenkins
Top trader Mike Jenkins from Coin Bureau updates important news that can act as price catalyst for altcoins and stablecoins amid Bitcoin (BTC) rally.
B-Word Event Brings Bitcoin Back
The analyst kicks of the video by talking about Bitcoin news. In the first few minutes of their hour-long discussion, Elon Musk casually commented that SpaceX now holds Bitcoin.
ARK Invest CEO and CIO Cathie Wood, Twitter and Square CEO Jack Dorsey, and Tesla and SpaceX CEO Elon Musk laid out their main hopes for decentralized cryptocurrencies: world peace and improving individual lives.
The B Word is a Bitcoin-focused initiative that seeks to demystify and destigmatize the many misconstrued mainstream narratives around Bitcoin. It also aims to discuss how institutions can benefit from Bitcoin, explaining how and why they should embrace it. Additionally, the event seeks to raise awareness on the areas of the network currently in need of support.
Stablecoin Competition Heats Up
As the analyst says, only 61% of the USDC in circulation is backed by cash and cash equivalents, with the rest being backed by government bonds and corporate bonds, which is basically debt.
“This prompted Paxos to push out its own pro-transparency propaganda along with a breakdown of the assets backing PAX, Binance’s BUSD, and Gemini’s GUSD, 96% of which are cash and cash equivalents,”
The trader suspected that Circle and Paxos believe there will be just one stablecoin standing at the end of this race and they’re trying to paint the target on each other’s backs.
Uniswap “Delists” Token – DeFi KYC Concerns
Last Friday, the world’s leading decentralized exchange, Uniswap shook the crypto community to the core when Uniswap Labs announced it would be “delisting” certain tokens.
The tokens that have been delisted from the platform’s interface include instruments that may be at risk of being classified as securities by a regulator, including tokenized stocks, options tokens, insurance-based tokens and synthetic assets from crypto derivatives platforms like Synthetix.
“Gold-backed token Tether Gold (XAUT) is among the assets targeted, however, Uniswap founder Hayden Adams attributed XAUT’s removal to buggy code. Meme-themed tokens including Grumpy Cat (GRUMPY) had also found their way onto Uniswap’s blacklist.”
At the end of the video, the analyst says that although he is still hesitant to use technical analysis under these market conditions, he is confident enough to say that the market is out of the hole and moving back up:
“This week’s winners are Axie Infinity, Telcoin, Theta, Quant Network, and OkEx’s OKB token.”