What happened in the cryptocurrency market in the third quarter of 2020


  • Bitcoin Reaches Annual High

  • Russia adopts law on cryptocurrencies

  • Uniswap conducts a loud airdrop

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In a four-part series, BeInCrypto highlights key global events that have impacted the cryptocurrency market in 2020

The beginning of the third quarter for the cryptocurrency market turned out to be more successful than the previous three months. In early July, the chairman of the US Commodity Futures Trading Commission (CFTC), Heath Tarbert, said that the regulator is ready to add futures for other cryptocurrencies, but only after the consent of the Securities and Exchange Commission (SEC). Since Bitcoin and ETH are recognized as exchange commodities in the US, they cannot be classified as securities, Tarbert added..

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In mid-July, perhaps the loudest event of the year in the media space took place – the Twitter hack. Unknown people carried out the largest Twitter hack in the history of Twitter, taking over the accounts of Coinbase, Apple, Elon Musk and many others. On the hacked pages, the attackers published fake messages about the distribution of 5,000 bitcoins. Accounts of the largest crypto exchanges, including Gemini, Binance, KuCoin, Gate.io, Bitfinex, and OKEx, also fell victim to cybercriminals..

At the same time, the Russian State Duma nevertheless adopted the long-awaited law “On digital financial assets” (CFA). According to the law, from January 1, 2021, transactions with cryptocurrencies will be legalized, but it will be prohibited to use them as a means of payment. The document, however, did not include definitions of such concepts as “token” and “mining”. It is expected that the regulation of the cryptocurrency market will be spelled out in a separate law.

Domestic thaw

A couple of days later, South Korea approved a plan to establish a tax of 20% on income from cryptocurrency trading. Thus, incomes of South Koreans from crypto trading in excess of 2.5 million won per year will be taxed at 20%. Income below the established threshold is not taxed.

Source: coingecko.com

Despite such an ambiguous tax decision, at the end of July, the Ethereum cryptocurrency rate in the ETH / USDT trading pair updated its annual maximum at $ 305. The last time ETH was higher was only in June 2019, when it reached $ 360.

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In early August, Sberbank publicly admitted the possibility of issuing a stablecoin based on the Russian ruble. According to Sergei Popov, Director of the Transaction Business Division at Sberbank, token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More could be used for settlements in transactions with other digital assets.

“Probably, we can issue on the basis of the law that has been adopted, a token that we can peg to the ruble, such a corresponding stablecoin. … With … More, which can become the basis, a tool for settlements for some other digital financial assets “, – said Popov.

On the tenth of August, Bitcoin managed to reach the $ 12,000 level for the first time in 2020. At the same time, the largest public provider of business intelligence, MicroStrategy, announced an investment of $ 250 million in bitcoin as a reserve asset, citing a decrease in cash yields, a weakening dollar and other global macroeconomic factors. The company later made several more large Bitcoin purchases..

At the same time, the Etherum Classic blockchain network was repeatedly hit by a 51% attack. In total, the attackers managed to reorganize more than 7000 blocks in the network. As a result, the price of the ETC token in the ETC / USDT trading pair fell from $ 8 to $ 4.75.

What happened in the cryptocurrency market in the third quarter of 2020

Better late than never

In September, a loan secured by cryptocurrency was issued for the first time in Russia. The loan was issued to entrepreneur Mikhail Uspensky at Expobank on the security of WAVES tokens. The transaction was executed through the conclusion of an individual bank loan with collateral in the form of cryptocurrency, using an escrow mechanism.

Source: coingecko.com

Later, the decentralized exchange Uniswap announced the launch of its own UNI token to manage the protocol.

In total, the company issued 1 billion UNI tokens worth $ 20 billion. This volume was planned to be distributed over the next 4 years as follows:

  • 60.00% to members of the Uniswap community [600,000,000 UNI];
  • 21.51% to team members and future employees with a 4-year transition [215,101,000 UNI];
  • 17.80% to investors with the transition to 4 years [178,000,000 UNI];
  • 0.069% to consultants with the transition to 4 years [6 899 000 UNI].

Tokens were distributed to users and liquidity providers based on a snapshot of the blockchain covering the period up to September 1. Users could request 400 UNIs for each address from which they accessed Uniswap v1 or v2 contracts.

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At the end of September, the RF Ministry of Finance proposed drastic measures to regulate cryptocurrencies in the form of criminal liability for failure to declare virtual assets. So, for non-declaration of a cryptocurrency wallet with a turnover of over 1 million rubles a year, the Ministry of Finance proposed punishing with a criminal article providing for up to three years in prison.

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What happened in the cryptocurrency market in the third quarter of 2020
What happened in the cryptocurrency market in the third quarter of 2020
What happened in the cryptocurrency market in the third quarter of 2020
What happened in the cryptocurrency market in the third quarter of 2020

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