What a Week for Crypto as China FUD Runs Rampant — VAULT Cryptocurrency Blockchain News #25
The first big story out of China this week was the news that China’s second-largest real estate development company Evergrande Group had defaulted on its debt payments. The company is in so much debt that many fear its failure could bring down the Chinese economy and have a major impact on global markets including crypto.
The news was so big that even one of the world’s most famous real estate investors commented on it.
The big question is how could a company like Evergrande Group ever become so riddled with debt? China owns all the banks. All the loans and bank transactions have to be approved by the government. Surely the government authorities would see where companies like these are making bad investments and prevent these problems.
This financial crisis has brought to light the concept of shadow banking. You may have seen reports of entire cities being built in China in which nobody lives. These are entire towns with all the supporting buildings and infrastructure built but nobody lives in them. Who builds these towns and, more importantly, who pays for them? The answer is shadow banking. and it could very well spell the end of the China Evergrande Group and deal a major blow to the Chinese and global economy.
In shadow banking, the banks don’t lend the money directly to construction companies or real estate developers. The money starts with the government itself. These funds are then distributed to central banks. The central banks then make loans to startups and other high-risk businesses. These loans are then bundled into poor asset funds and sold to shadow banks. These shadow banks are non-banking entities that work for the banks in the “shadows.” They buy these high-risk loan pools and sell them directly to the public, thus taking the liability and regulatory burdens away from the central banks. When these high-risk ventures fail, it is the public and shadow banking entities that take the hit and the central banks get away with no blame while China’s debt grows to 323% of its GDP. Here is one of the best explanations I could find on the subject:
China Evergrande Group stock fell 17% on the news as well as the prices of many of China’s blue chip companies.
The news even impacted China’s most successful soccer club. Guangzhou FC is now seeking a government bailout to prevent bankruptcy due to the China Evergrande Group being its principle owner.
Imagine if you lived in China. You have some money and want to invest. Gold and silver have been stagnant with no significant growth. Stocks are collapsing. Real estate is collapsing. Your one bright hope is cryptocurrency. Looking at the top three coins on Nomics.com, you see Bitcoin is still up 295.1% year to date, Ethereum is up 728.9%, and HEX is up an amazing 12,651.7%. You see that cryptocurrencies are your salvation and an investment vehicle that will finally allow you to better your economic status. You are saved!
Wait…..what the F%$* did that news report just say?
VAULT Crypto News This Week
VAULT Gets a New Exchange
VAULT coin is listed on HypeCoin Exchange (owned by UK-based HYPE GLOBAL TRADE LTD) and you can trade here:
HypeCoin Exchange serves all countries.
KYC: Basic verification allows a withdrawal maximum of 1 BTC per year, and higher limits require face and ID verification.
White Paper: https://www.hypecoinexchange.com/WHITEPAPER.pdf
HYPE GLOBAL TRADE LTD: https://find-and-update.company-information.service.gov.uk/company/13461490
Thanks to HypeCoin Exchange for recognizing our unique VAULT MGP (Minimum Guaranteed Price), currently set at 10,500 sats until September 30th, by setting the minimum price to match. We will monitor this closely and top up with support when required.
VAULT coin VAULTility with a Minimum Guaranteed Price!
BCE and IQ Delisting Notice
After a review and evaluation of our current listings, BCE and IQ will be delisted from VAULT Platform on October 1st 2021. This is purely a business decision using a number of factors based on efficiency and benefits provided to investors and VAULT platform customers. Could all holders of these 2 coins please withdraw them from VAULT platform as soon as possible. We will take note of any remaining holdings and they can possibly be retrieved in the future by submitting a support ticket.
We would like to wish BCE and IQ success for the future.
VAULT Investments provides a service to clients and is not responsible for projects listed or featured in its platform or ecosystem. Users should always DYOR.
VAULT Investments Team
VAULT Coin’s Market Performance This Week
China FUD has hit VAULT cryptocurrency as our streak of finishing the week above $5 came to an end this week. We saw a high of $5.68 on Friday and a low of $4.47 also on Tuesday. We finished out the week at $4.87.
We saw an average of $1,353.14 traded daily. This maintains us above the $1,000 daily level and is slightly below last week’s number of $1,643.67.
The Minimum Guaranteed Price https://vaultility.vault.investments/ buy wall of 1,000 VAULT at 10,500 Satoshi was maintained with 57.95 VAULT above the wall on SouthXchange. There is still a smaller buy wall of 137.91 VAULT on CREX24 with 23.50 VAULT above the Minimum Guaranteed Price (MGP) of 10,500 Satoshis.
The current price is 10,566 Satoshi (0.00010566 BTC) on Crex 24 and 12,000 Satoshi (0.00012000 BTC) on SouthXchange.
In addition to the platform, products, use, and demand, VAULT continues to benefit greatly from being tied to Bitcoin. This week we saw BTC suffer from the China FUD and drop 9.3%.
Bitcoin (BTC) Update
The big news this week was that China has once again banned Bitcoin. We have seen this before so why is this time any different.
The interesting point is the price of Bitcoin traditionally increases each time it is banned by China.
The interesting thing that has happened this time is we are starting to see government officials tweeting in support of cryptocurrency. Is this signaling a paradigm shift in congress? Do some members of the house and senate finally realize the value of cryptocurrencies? Can they overcome the big bank and financial institution lobbyists to establish the United States as a leader in the cryptocurrency revolution? Let’s look at some tweets from this week.
Senator Pat Toomey from Pennsylvania tweeted:
Congressman Tom Emmer from Minnesota chimed in with the following:
“Digital. Authoritarianism. China is forcing its citizens away from decentralized currency and onto the digital yuan, so the CCP can track all money movements. Do you fear Big Brother? Then you should also fear what the Fed might be designing.” Emmer further stated: “Open. Permissionless. Private. If China bans it, you know it’s something worth fighting for.”
Another congressman from Ohio expressed his opinion:
Miami has embraced Bitcoin and their mayor had this to say:
Congressman Patrick McHenry from North Carolina concurred with the mayor of Miami. “You’re exactly right Mayor Francis Suarez,” he replied to the mayor’s tweet, emphasizing: “China’s decision to restrict access presents a perfect opportunity for American leadership on cryptocurrency.”
These tweets highlight a major shift in political views on cryptocurrencies. The days of crypto being a way for criminals to cheat on their taxes and buy drugs on the dark web are giving way to views that cryptocurrencies are legitimate innovation and investment vehicles.
Cryptocurrency News This Week
China FUD Ruled the Week
Hopefully, You Didn’t Get Liquidated This Week
States Want Crypto
Ripple Wants NFTs
Bitcoin Crashed to $5400
Bitcoin Tips on Twitter
Central Bank Digital Currency Coming to US and Bhutan
VAULT Crypto Portfolio Tracker
I wanted to give you a running tally of what you could potentially be earning with VAULT. The example I’m using is holding 1 CRYO VAULT masternode with 0.1 BTC invested in the BTC% program (check it out here).
I wanted to show you what kind of returns you could be earning weekly and cumulatively.
One VAULT masternode of 1,000 VAULT with current ~25% ROI generated 4.76 VAULT blockchain rewards this week for a total of 1,132.51 VAULT over the past 26 weeks if you compounded your daily rewards with 100% reinvest on the VAULT platform. Total is now 1,132.51 VAULT. The total dollar value earned is $645.32 at VAULT’s current price of $4.87 (0.00012 BTC). The total BTC value earned at VAULT’s current price is 0.0159.
Investing 0.1 BTC in the BTC% program earns you 11% APR, giving you a weekly return of 0.00021089 BTC. Over the last 26 weeks, this would be worth 0.005483 BTC with a current value of $234.11.
The current total value of your potential returns over the past 26 weeks would be $879.44 or 0.021383 BTC.
We Are Here to Help You DYOR (Do Your Own Research)
I hope this week’s update on the impact that China FUD has on crypto has been helpful.
If you have any questions please feel free to post or contact me Bobtilladhun or any team member on VAULT Investments Discord server:
VAULT Global Ambassadors
We want to again invite people to become a VAULT Ambassador. It is a great way for us to spread the great news of VAULT investments to everyone around the world. If you would like to join our growing international community, please click here for more information.
kikiriki#9227 — Greece
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wltjnes1#1227 — Nigeria
Long Miguel#6762 — Vietnam
This is not financial advice. VAULT Investments provides a service to its clients and is not responsible for projects listed or featured in its platform or ecosystem. The views and opinions in this update are my views alone and are not necessarily those of VAULT investments or its administration. Users should always DYOR. Invest at your own risk.
About the Author:
My Discord handle is Bobtilladhun.
I’m a long-term crypto investor. I bought my first Bitcoin in 2016 for $700. I sold 1/2 my BTC when the price doubled to satisfy my wife that I wasn’t going to lose all our money and made my initial investment back. Since that time, I have used my remaining Bitcoin stack to HODL and invest in interesting projects. I am a founding investor in VAULT and have accumulated a significant number of masternodes through holding my coins in CRYO and taking advantage of the compounding interest VAULT provides.
I was asked by Ian and the VAULT team to provide a weekly update on VAULT’s performance and current issues in cryptocurrency.
I hope these updates provide you with a quick overview of what is happening with VAULT and in the world of cryptocurrency.
Please contact me on Discord if you have any comments or suggestions.