A record influx of stablecoins to exchanges, the threats to illegal miners, and the possibility of a total ban on cryptocurrencies in Russia

​CoinMarketCap crash and the review of other key events. Summing up the results of the week

17.12.2021 - 11:15

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3 min

The past week was relatively stable for the first cryptocurrency. The price of the asset was in the $45 967-$50 626 corridor, and at the end of the 7-day period, bitcoin lost about 1,98%. Ethereum, meanwhile, sank 4,69%, and Binance Coin 8,51%.

The best rates, according to CoinMarketCap, are demonstrated by OKB (+30%), BORA (+26,93%) and YFI (+19,76%). As for the outsiders, DCR (-19,22%), IOTX (-16,51%) and BTT (-14,92%) showed the largest declines.

The total capitalization of the crypto market fell from $2,242 trillion to $2,182 trillion in 7 days with bitcoin dominating at 40,7%. As can be seen on the infographic of the Coin360 portal, the overall market backdrop is in the red zone.

Source: Coin360

The growth of the share of stablecoins

The analysts at Santiment published a study on December 17, the results of which signal a strong influx of stablecoins to cryptocurrency exchanges. The share of USDT on the platforms rose to 22,5%. This is the highest figure in the last six months, indicating a growing level of purchasing power on cryptocurrency platforms.

Source: Twitter

CoinMarketCap crash has made users billionaires

On the night of December 15, the popular CoinMarketCap platform's system malfunctioned, causing incorrect cryptocurrency quotes to be displayed. Thus, one bitcoin was worth $789 million, while the price of Ethereum was at $40 million. The users were happy to share screenshots on social networks with billion-dollar values in their balances.

Source: Twitter

The CoinMarketCap representatives assured that it was not a hacker attack and that it was a common technical glitch in the system. The bug has now been fixed.

The threats to Russian miners

The situation with the mining industry in Russia remains uncertain. Now the authorities want to ban mining, then they want to impose taxes, then they want to introduce benefits. All this harms the development and attraction of investment to our country. A new offer from Deputy Andrei Lugovoy includes the criminal prosecution of illegal miners who will connect to power grids without permission from the power supply organizations.

“The illegal miners will have to go to jail,” the deputy said.

Under such conditions, there is no need to talk about the government’s support for this industry either. According to Anatoly Aksakov, the head of the State Duma Financial Markets Committee, cryptocurrency mining does not need it, as such activity has no social relevance.

A total ban on cryptocurrencies in Russia

On December 16, the Reuters website published a material reporting on the possibility of a complete ban on cryptocurrencies in Russia. The main reason is a threat to the country's financial system due to the high number of unregulated transactions with digital assets.

According to Reuters' own knowledgeable sources, the position of the Russian Central Bank is currently aimed at a complete rejection of cryptocurrencies. At the same time, the possible sanctions should not affect those users who have previously purchased digital assets. The final decisions on industry regulation are expected to be adopted by the spring session of parliament in 2022.

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