Crypto News: BNB, MakerDAO, OPEC Oil Cut, Stablecoins & MORE!

Foreign [Music] To the coin Bureau weekly crypto review Here are this week’s top headlines in The crypto news [Music] Crypto Market recap an overview of all The crypto and macro factors that moved The market last week and what other Effects they could have in the near term Unchained censorship flashbots Co-founder steps down over censorship on Ethereum and Dapper Labs blocks Russians From accessing their crypto wallets Everything you need to know BNB hack an exploit of bnb’s cross-chain Bridge sees more than 100 million Dollars off the cryptocurrency drained Who was behind the attack Stable coins in the spotlight maker Dao Begins buying U.S government debt tether Buys more U.S government debt and the Supply of circles usdc Falls sharply What does it all mean for crypto Oil turmoil OPEC announces a massive cut To oil production shortly before the United States is scheduled to begin Replenishing its reserves why this news Is more significant than you think And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and More in just a Moment Good morning afternoon or evening thank

You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the crypto Market looked like It was ready to Rally until two Significant macro factors intervened to Poop the party The first Factor was opec’s decision to Cut oil production by 2 million barrels Per day something I’ll come back to Again a little later All you need to know for now is that This restriction of Supply is likely to Increase inflation around the world this In turn will force central banks notably The U.S federal reserve to continue Raising interest rates aggressively to Fight inflation this continued raising Of interest rates will cause assets to Continue to crash as liquidity AKA money Is sucked out of assets and Into Cash Lots of liquidity is also moving into Government debt given that it is Offering higher interest rates thanks to The central banks well that’s the Financial system for you now the second Macro factor that moved the crypto Markets was the release of the September Unemployment statistics for the United States while unemployment was expected To rise due to poor economic conditions

It instead unexpectedly fell suggesting The U.S economy is in better shape than Previously thought In theory this would be a good thing but In practice it’s not This is because the fed’s two jobs are To ensure a two percent inflation rate And a four percent unemployment rate With an unexpected 3.5 unemployment rate For September this gives the fed the Wiggle room it needs to continue raising Interest rates because investors are Always trying to price in what will Happen over the next 6 to 12 months both The crypto market and the stock market Crashed when the positive unemployment Figures were released again that’s the Financial system for you good news can Be paradoxically bad for assets who says It has to make sense eh now the only Crypto specific factor that seems to be Weighing on the crypto Market these days Is regulations if you’re subscribed to My Weekly Newsletter you’ll know that One of those Infamous International Organizations is set to draft regulatory Recommendations for cryptocurrency this Week Naturally these recommendations tend to Be more instructions that countries must Follow or else Now I’ll be sure to cover them when They’re released but while you wait Subscribe to My Weekly Newsletter to get

Info about all the upcoming crypto and Macro factors that could move your Favorite coins and tokens and while You’re at it check out Saturday’s video About the company that’s taking over Crypto it might just make or break your Portfolio link will be in the Description for when you’re done here Anyways when it comes to crypto Regulations some of the most concerning Involve the concept of on-chain Censorship this is when minors or Validators enforce the laws of a country On the cryptocurrency blockchain they’re Securing if you watched our video about The tornado cache sanctions you’ll know That there were concerns that ethereum Validators would begin censoring Sanctioned transactions once ethereum’s Transition to proof of stake was Complete this is because the biggest Ethereum validators are based in the USA Some of you may know that around 45 Percent of ethereum validators are now Censoring tornado cash related Transactions on the beacon chain what Some of you may not know is that this On-chain censorship isn’t because of the Validators per se but the Mev software Providers that they’re using now for Those unfamiliar maximal extractable Value or Mev is basically where miners Or in this case validators have the Power to rearrange transactions in

Blocks before they’re added to the Blockchain Now this is obviously bad which is why Software exists to minimize the practice That is the tldr The most popular Mev software for Ethereum is flashbots which essentially Swore to comply with the tornado cache Sanctions back in August as such any Ethereum validator leveraging flashbots Has been knowingly or unknowingly Censoring tornado cash related Transactions now it should take you no More than two seconds to realize that This on-chain censorship is a very Slippery slope today it’s enforcing Sanctions against objectively Bad actors Tomorrow it could be enforcing kyc on Ethereum wallets or IRS reporting for All East transactions above a certain Amount If you’ve watched our video about the Future of finance that the bank for International settlements envisions You’ll know that this is something it Would very much like to see more about That unaccountable International Organization using the link in the Description I digress Now the mere Prospect of such a Progression was more than enough to push Flashbot’s co-founder Stefan Gosselin Over the edge in his debate about On-chain censorship with his colleagues

As far as I understand he was against The company’s on-chain censorship and His colleagues were in favor now if you Want evidence that enforcing sanctions On chain is the start of a slippery Slope look no further than Dapper lab’s Recent response to Europe’s new crypto Sanctions on Russian citizens The company straight up blocked Russians From accessing their crypto Wallets on The flow blockchain Now to clarify it’s not entirely clear Whether the crypto wallets in question Were custodial or not there do not seem To be many details about this now but it Appears the ban applies to Dapper labs’s Custodial wallet which is the main Gateway to access the flow blockchain Truly scary stuff Speaking of scary stuff the BNB chain Was hacked for what was initially Believed to be almost 600 million Dollars just a few days ago luckily the Hack up was only able to get away with Around 100 million dollars of the BNB Chains native coin Here’s how this happened If you watched our recent video about The BNB chain you’ll know that it Actually consists of two blockchains the Beacon chain which processes simple Transactions and the BNB smart chain Which processes smart contract Transactions

What the hacker did was exploit a bug in The bridge between these two chains to Create two million BNB out of thin air What’s crazy is that the hacker then Used this BNB as collateral in a D5 Protocol to borrow 150 million dollars Worth of different stable coins These stable coins were then sent to Various cross-chain Bridges and Converted into other cryptocurrencies This all happened shortly before the BNB Team and the BNB chain validators Decided to pause the BNB chain to Prevent any damage to its ecosystem and Assess what to do next Now although the BNB chain only has Around 25 active validators an emergency Shutdown of a blockchain is Unfortunately nothing new and has Happened to many different Cryptocurrencies in recent months under Similar circumstances now a few hours Later the BNB chain team restarted the Blockchain with the help of its Validators they explained in a blog post That they will be introducing a Governance structure to the BNB chain Four BNB holders to decide what happens Next namely in regard to the recovery of The funds regarding who hacked the BNB Chain Bridge history suggests that it Was probably North Korea some of you may Recall that North Korean hackers were Behind the massive 620 million exploit

Of axi Infinities Ronin side chain This is actually the event that resulted In sanctions against tornado cash Now if you’ve been keeping up with International news or are just addicted To Twitter you’ve probably heard that North Korea has been expanding its Missile tests lately they went as far as To fire two missiles over Japan and into The ocean causing Air Raid Sirens to go Off in the Japanese region of Hokkaido As you might have guessed much of North Korea’s ill-gotten gains in crypto have Gone towards financing such Reckless Acts of intimidation Given that Pyongyang has upped its Peacocking in recent months it’s more Than likely that the money from the BNB Chain Bridge hack was meant to be spent On this sort of stuff Now I should note that it’s not entirely Clear how much money the hacker managed To get out tether immediately Blacklisted the ethereum wallet which Received the usdt that had been bridged Over from the BNB Chain by the hacker I Suspect Circle did something similar With usdc and paxos with busd the fact That stablecoin issuers have this power At all is concerning to many hence why Those who truly care about Financial Freedom have looked to decentralize Stable coins to park their digital dry Powder the only problem is that the

Largest decentralized stablecoin Protocol is starting to centralize too Maker holders recently passed a proposal Which will see 500 million dollars of The crypto collateral backing the dice Table coin in the maker Dow protocol to Be invested into U.S government and Corporate debt if you watched our video About the assets backing stable coins You’ll know that centralized stable Coins like usdt usdc and busd are backed By the exact same assets This begs the question of just how Centralized maker Dow could become if That 500 million dollar money pile Expands to billions for reference there Are 6.7 billion die in circulation which Are backed by 9 billion of Cryptocurrency ironically die is still Mostly collateralized by the usdc stable Current which could have a whole slew of Censorship implications in the not so Distant future the Silver Lining is that Maker Dow’s willingness to subsidize the US government spending with its reserves Will probably protect the protocol from Any unreasonable crypto regulations This seems to be one of the main reasons Why we haven’t seen a stablecoin Crackdown just yet this doesn’t mean a Stable coin Crackdown isn’t coming However the first Target on that front Isn’t make a dow either it’s tether That’s because tether’s assets don’t

Exist on a publicly viewable blockchain Like maker Dows or inside the United States like the other centralized Stablecoin issuers the unprecedented Violations of privacy we’ve seen since The Patriot Act should tell you that the US government cares about information More than anything else tether’s Relative lack of transparency has Therefore been very problematic for U.S Regulators especially when it comes to Tethers Reserves Now tether recently announced that Almost 60 percent of the usdt in Circulation is now backed by U.S Government debt in addition to Potentially protecting tether from Scrutiny its increased subsidies of the US government will also look very good When its Italian accounting firm Releases its upcoming attestation of Reserves now I’ll quickly note that an Attestation is not the same as an audit An attestation just involves an Accounting firm verifying the Information that’s being shown to them An audit is when an accounting firm goes Digging through the documents to find Out what’s really going on Believe it or not but it looks like none Of the stablecoin issuers have been Audited to this day The Only Exception Appears to be paxos which does get Audited from time to time according to

Its website oddly enough none of these Audits are on paxos website that’s Centralized stablecoin issuers for you In any case this lack of transparency is Likely to cause regulatory issues for All stablecoin issuers including Circle Whose usdc stablecoin has been shrinking As of late Usdc’s supply has fallen by 9 billion Over the past three months and it Doesn’t look like it’s going to stop Anytime soon conversely the supplies of Usdt and busd have continued to grow Suggesting that stablecoin holders are Ditching usdc for its competitors that Said the growth in usdt and busd only Accounts for one third of the market cap That usdc has lost This suggests that many are cashing out Of usdc entirely cashing out of stable Coins in a bear Market makes sense Because there are not many gains to be Made and not much yield to be had this Is the case for just about every asset Class out there but there is one Exception Commodities now the elephant In that room is of course oil in case You missed the memo the world has been Fairly short of oil recently as basic Economics dictates when you have less of Something but the demand for that thing Stays the same or increases then its Price will rise this is what’s been Happening to oil prices over the last

Five years or so This is mainly because of ESG which has Reduced investment into oil and gas The sanctions slept on Russian energy Sources in response to Russia’s invasion Of Ukraine only added fuel to the fire Pun intended Rather than address the supply side of The issue the people in power have Decided to crush demand Instead at the Same time they’ve decided to print money To hand out to the population and set Price caps on energy so that they don’t Revolt history has shown that both Measures will only lead to more Inflation and eventually a shortage of The energy types being subsidized and Capped as I mentioned earlier OPEC a Coalition of oil producing countries Including Russia recently decided to Decrease oil production by 2 million Barrels per day to put things into Perspective the world uses roughly 88 Million barrels of oil per day if you Think that 2 million barrels of oil per Day is a drop in the bucket by Comparison you would be correct the only Problem is that there are additional Supply and demand factors besides OPEC Which coupled with OPEC Supply Cuts Could lead to a global oil crisis For starters you have the United States Which has been draining its strategic Oil Reserve into the U.S economy in an

Attempt to try and keep inflation low Leading up to the midterm elections in November sometime after that the U.S Department of energy will buy back at Least 60 million barrels of oil Next you have China which appears to be Slowly but surely ditching its Draconian Pandemic lockdowns China’s economy being Closed has coincidentally reduced Global Oil Demand by around 2 million barrels Per day when its economy inevitably Comes back online this 2 million Barrel Demand will return Then you have the upcoming price cap on Russian oil which is scheduled to be Imposed by Western countries at the Beginning of December as I’ve mentioned Before the U.S government has threatened To sanction any countries that violate The price cap it looks like Russia is Ready to respond by restricting oil Supply to certain countries that comply With the price cap likely taking Millions of barrels of oil vital for the Global economy out of circulation then Again there’s speculation that Russia Will get around the price cap via China As it seems to be doing already Regardless if you add up all these Supply and demand factors you end up With a shortage of roughly 8 million Barrels of oil per day for the global Economy 10 percent less than what it Currently requires to function note that

We are already starting to see oil Shortages in some countries for example France Logically this means the price of oil Should explode come winter but it’s Important to point out that many of These factors could be quickly resolved There could be a resolution to the war In Ukraine or OPEC could suddenly decide To start producing more oil again it Sucks when centralized entities decide These sort of things but hey that is the World we live in I’ll be covering the Dynamics of the oil market and the Strategic petroleum Reserve in a video This week so keep your eyes peeled for That Turning to the charts we can see that BTC continues to drift downwards after a Brief leg up it’s holding strong at Around 19k on the daily chart but the Monthly chart paints a grim picture of What could come a massive crash down to Between 10 and 14k on the back of a Big Bear Flag be on the lookout last week’s Top performing cryptos were Casper Network ethereum name service elrond Quant Network and maker Dow Starting with Casper Network cspr seems To have rallied on the release of a Quote enterprise-grade nft standard on Its blockchain unfortunately cspr has Flatlined on the long-term price charts I suspect this is because the cspr Ico

Took place last spring and token holders Have been selling since that time to try And make some gains Next we have ethereum name service whose Ens token seems to have rallied on the Continued hype around the news that the Project has partnered with coinbase to Issue ens domains at the end of September the Bollinger band and RSI Indicators on ens’s weekly chart Suggests it’s a bit overbought as its Price is close to piercing through the Top of the Bollinger band and the RSI Indicator is close to 70 out of 100. a Correction should come in the near Future As for elrond it’s e-gold coin seems to Have rallied in response to all the hype Around the upcoming x-day conference Elrond will be hosting in Paris at the Beginning of November I imagine there Will be some exciting announcements The Bollinger band and RSI indicators On Eagle’s weekly chart suggests it still Has some room to grow since its price Isn’t close to the top of the Bollinger Band and the RSI is only around 50. even So e-gold could have a hard time Piercing through its price resistance Between the 70 and 90 dollar marks When it comes to Quant Network qnt seems To have rallied because of Quant Network’s upcoming cyboss event I am Honestly surprised that qnt has been a

Top performing crypto for so many weeks The Bollinger band and RSI indicators on Qnt’s weekly chart showed that it’s even More oversold than it was before I know They say the trend is your friend but we Are in a bear market so what comes up Will come down And last but not least we have make a Doubt whose maker token seems to have Rallied on the news that the protocol Will be centralizing a part of its Collateral I must admit I have some Mixed feelings about this integrating With the existing Financial system isn’t What crypto is about in my opinion For what it’s worth the Bollinger band And RSI indicators on Maker’s weekly Chart suggests it still has lots of room To grow we’ll see whether or not it Manages to break above that one thousand Dollar price resistance On a somewhat related note you can learn More about the different layers of Decentralization in cryptocurrency by Using the link in the description And that’s all for today’s coin Bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and Bell icon too if You’re looking to maximize your gains During the bear Market the coin Bureau Deals page is where you should go you Can find the link to that resource and Many others in the description below

Thank you all so much for watching and I Will see you in next week’s episode Foreign [Music]

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