Crypto Price: The Super Bowl Is A Big Win For Coinbase, But A Loss For Bitcoin
The crypto-related hype surrounding Sunday’s Super Bowl produced mixed results, with bitcoin failing to hit $50,000, while Coinbase Global saw a “historic and unprecedented” reaction to its publicity during the big match.
The championship game, which saw the LA Rams defeat the Cincinnati Bengals, had been dubbed the “Crypto Bowl” due to the number of exchanges buying advertising space.
“Historic and unprecedented”
Coinbase Global (PIECE OF MONEY) received a boost from all the fanfare as the largest US cryptocurrency exchange had to limit traffic earlier in the evening after running an advertisement featuring a QR code. The company said it was back up and running.
Coinbase reported “more traffic than we’ve ever seen,” which meant it had to “take traffic down for a few minutes,” chief product officer Surojit Chatterjee said in a tweet.
“We had over 20 million visits to our landing page in one minute,” he tweeted. “It was historic and unprecedented. We also saw 6x higher engagement than our previous benchmarks.”
Coinbase shares were up 2.6% at $199.53 when last checked.
“The fact that Coinbase’s website crashed due to heavy traffic after announcing a contest offering around $3 million in bitcoins and prizes to a few lucky new accounts, highlights the appeal not just free money, but also cryptocurrencies as a whole,” said Nicholas Cawley, strategist at DailyFX.
However, global tensions have cut bitcoin and prevented the world’s largest cryptocurrency by market capitalization from reaching the $50,000 line.
“Hopes of BTC retesting the $50,000 resistance level as predicted last week have been dashed as the Russian-Ukrainian dispute sent shivers through all markets,” said bank co-founder Alexander Mamasidikov. MinePlex mobile digital. “Additionally, the fact that too many crypto companies ran their ads during the Super Bowl LVI event made the digital currency ecosystem comparable to the dotcom era.”
Mamasidikov added that the confusing ads “presented somewhat poor optics as revealed upon close examination, and against the intended purpose, it might have spurred investors to take a more conservative approach to BTC at this time.” .
“For this new week, we can expect bitcoin investors to overcome conflict phobia and decouple their price growth from the traditional stock market,” he said. “Prices should stabilize at a low of $41,500, and growth towards the $44,000-$45,500 range will be seen as healthy overall.”
Bitcoin prices rose slightly to $42,643 when last checked.
NFTs become “mainstream”
Meanwhile Winston Ma, Managing Partner of CloudTree Ventures, author of The digital war – How China’s tech power is shaping the future of AI, blockchain and cyberspace “said that interest in NFT search on Google has surpassed that of crypto”, showing that NFT is become an asset class in its own right, compared to crypto tokens. “
“The exponential increase in demand for NFTs is evident as mainstream brands such as Nike and Adidas and media companies such as Twitter and Youtube are making their own entry into the metaverse NFT arena,” he said. declared.
Mama said the Alphabet (GOOGL) – Get the Class A report from Alphabet Inc. YouTube has expanded its blockchain and metaverse plans for this year.
The video-sharing platform said in a blog post that NFT will offer ways to verify the legitimacy of assets using its video library, “giving fans a verifiable way to own videos, photos, works of art and even unique experiences from their favorite creators could be an exciting prospect for creators and their audiences.”
Some of YouTube’s top executives are leaving the video-sharing platform for new roles in the crypto world.
“The tax authorities come knocking”
On the legal front, David Lesperance, managing partner of immigration and tax counsel at Lesperance & Associates, cited the arrest last week of a New York couple for allegedly conspiring to launder approximately $4.5 billion of cryptocurrency stolen in 2016 hack of virtual currency exchange Bitfinex,
“Binance CEO Changpeng Zhao was quick to tweet that crypto is easier to track than fiat,” he said. “It’s a reality that many of those who haven’t disclosed their crypto holdings to their tax authorities need to consider before the tax authorities come knocking on the door.”
Whether it’s future disclosures of exchanges, mixers, traders, former partners or friends – aka “future whistleblower award recipients” – and others with whom enthusiasts of cryptography have been able to interact in the past, Lesperance said that “tax authorities around the world are rapidly triangulating as to who owns each piece of cryptocurrency.”
“The choice is clear to either rip off the band-aid of compliance and pay taxes, or potentially lose all of your assets and risk a criminal conviction,” he said.
Lesperance said that “Kazakhstan continues to prove itself as the wrong long-term jurisdiction for crypto miners as the government considers adding additional taxation to those remaining crypto miners who have not fled to other countries. other more hospitable jurisdictions when the government recently shut down the entire internet during the protests.”
“When deciding where to relocate, cryptominers should look beyond cheap energy to seek a) green energy; b) a stable “rule of law” jurisdiction; and c) who will allow miners to physically visit or work their operations,” he said.