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Crypto SWOT: Mark Zuckerberg said that NFTs are coming back to Instagram

Commentaries & Views

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Playground, rising 727.67%.

  • Galaxy Digital founder and CEO Michael Novogratz sees growing demand for cryptocurrencies and says there is "zero chance" Russia can use crypto to circumvent sanctions. Novogratz also maintains his $500,000 forecast for Bitcoin five years out according to Bloomberg.  

  • The mayors of New York City and Miami used a join appearance at a blockchain conference to brush off concerns about volatility in cryptocurrency markets and said they'll continue to receive paychecks in Bitcoin. The friendly competition between the two mayors started last year according to a Bloomberg report.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Defly Token, down 100.00%.

  • Terra's (LUNA) price has decreases 5.93% over the past 24 hours to $83.89, continuing its downward trend over the past week of -12%. The trading volume for the coin has tumbled 64% over the past week along with the circulating supply to 366.61 million, which makes up an estimated 36.66% of its max supply of 1 billion, writes Bloomberg.

  • Bitcoin is unlikely to break above $46,000 anytime soon, barring a macro economic "vibe shift" like a change in risk-on sentiment, according to Wilfred Daye, head of Securitize Capita. The cryptocurrency's trading range narrowed this week as the war in Ukraine continued and the Federal Reserve raised rates in line with expectations, writes Bloomberg.

Opportunities

  • The major cryptocurrency exchange FTX said it received a virtual-assets license in Dubai and will set up a regional headquarters in the city. The firm will offer complex crypto-derivatives products with centralized counterparty clearing to institutional markets according to a statement made by CEO Sam Bankman-Fried.  

  • Mark Zuckerberg said that NFTs are coming back to Instagram in a panel at Austin's South by Southwest (SXSW) Festival on Tuesday. According to Bloomberg, Zuckerberg added that he is "not ready to kind of announce exactly what that's going to be today." Zuckerberg also said that "hopefully" in the coming months, Instagram members will be able to mint their own NFTs within the app.

  • Bitcoin spent the past few days in the tightest trading range since October 2020, a phenomenon some market watchers ascribed to long-term holders stepping in to buy the dip. Meanwhile, selling by short term investors has kept Bitcoin and other digital assets from mounting sustainable gains, writes Bloomberg. Bitcoin briefly spiked above $41,000 for the first time in a week as risk assets rebounded worldwide.

Threats

  • Three European financial regulators, the European Banking Authority, European Securities and Markets Authority, and European Insurance and Occupational Pensions Authority, warned consumers of the risk of investing in cryptocurrencies. "Consumers face the very real possibility of losing all their invested money if they buy these assets," the EU's financial watchdogs said. The warning was prompted by the growing investor interest in crypto and the aggressive promotion of cryptocurrencies and related products, writes Crypto Briefing.  

  • Pixelmon, an NFT gaming project that sold $71.4 million worth of NFTs at the start of the month, has been accused of pulling the rug on its buyers. The project's standard art and use of development funds to buy blue chip NFTs have generated a backlash against Pixelmon creator Martin van Blerk, writes Crypto Briefing. The NFTs have crashed over 88% from their initial mint price and serves as a reminder to the NFT community that the most hyped projects are not always the best.  

  • Binance, the world's largest cryptocurrency exchange, has forbidden users in Ontario, Canada to open new accounts on the platform. The tension between the company and the local financial regulator peaked last summer when the former quit the region, writes CryptoPotato.
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