Evergrande debt woes hit crypto; Mooncakes in the metaverse
Evergrande debt woes hit crypto meanwhile Mooncakes are in the metaverse
Crypto market hit by Evergrande’s debt woes.
Bitcoin mining difficulty continues to rise.
Modern Mid-Autumn sees mooncakes in the metaverse.
We’ll have more on those stories — and other news shaping the cryptocurrency and blockchain world — in this episode of The Daily Forkast, September 21st.
Welcome to The Daily Forkast September 21st, 2021. I'm Angie Lau, Editor-in-Chief of Forkast.News covering all things blockchain.
Well, debt woes at China's second largest property developer, Evergrande have seen its share price plunge and those concerns are rattling the wider market, including crypto. We're going to dive into those liquidity issues and a whole lot more coming up.
Let's get you up to speed from Asia to the world.
First up, crypto markets were down across the board Tuesday morning, Asia time, with only stablecoins holding steady.
Bitcoin, Ethereum and Cardano fell by as much as nine percent in 24 hours, and Cardano lost so much ground it actually slipped from the number three position it has held on for the past few months.
Forkast.News Lachlan Keller has the lowdown on what Evergrande's looming threat of collapse actually means for investors.
Evergrande shares began falling in August after regulators warned the developer over the risks defaulting on its US$305 billion dollars worth of debt could pose to the market stability.
And with fears of contagion hitting all global economies, investors are taking risk off the table across all asset classes.
One expert told Forkast.News that the extent and scope of people invested is the biggest issue, with the impact set to hit national and local suppliers, trust funds and investors.
And while the notice it sent to banks saying interest payments expected on Monday wouldn't be made, spooked markets, Thursday could prove key.
"The bigger one is is the whether it makes the bond payments on Thursday when all the markets are open. And by not making the payments, that doesn't actually necessarily trigger a default, the default would come 30 days later because you have that grace period. But it could well be, but by not making that payment, it triggers other covenants in other loans. It's just the uncertainty and the complexity."
Sullivan says investors and suppliers are unlikely to be swayed by offers of real estate. And Beijing is reluctant to get hands on involved, preferring to see a market solution.
Whatever happens, he says the fact that crypto investments are easy to liquidate could prove an advantage.
For Forkast.News, I'm Lachlan Keller.
Meanwhile, bitcoin miners could also be set for a hit.
China's clampdown on mining saw the mining difficulty plunge earlier this year, but with the total hashrate continuing to recover, we're also starting to see ongoing increases in mining difficulty.
Forkast.News Timmy Shen has all the details.
According to data from BTC.com recorded Tuesday morning Asia time, the bitcoin mining difficulty level is expected to increase 3% in the latest adjustment.
China's clampdown resulted in four consecutive declines beginning in May, but this latest adjustment follows four consecutive increases. Mining difficulty is calculated every 2016 blocks or approximately every two weeks, and the increases we're seeing could be down to the recovering hash rates.
Data from Blockchain.com shows the total bitcoin hashrate plunged from an all-time high of 180.67 million terra hashes per second in May to 84.79 million on July 3rd. But it's been on an upward trend since. Monday saw that reading at 139.54 terra hashes per second.
Such increases can hit miners' profit margins, but that has not put one player off - Genesis Digital Assets recently signed a deal with Canaan for 20,000 mining rigs, with an option to purchase 180,000 more.
For Forkast.News I'm Timmy Shen.
And finally, happy Mid-Autumn Festival to you!
One of the most celebrated holidays is being marked across East Asia, with some celebrations taking a very modern twist.
Fancy stepping into the metaverse to celebrate with an NFT mooncake or showing your love of crypto by biting into bitcoin?
Forkast.News Michelle Lim reports from Hong Kong on some of the most innovative ways to enjoy the holiday.
No Mid-Autumn Festival is complete without a gathering of family and friends. But with the ongoing pandemic and reunion plans for some in the physical world scuttled, the virtual metaverse has emerged as a way for people to connect.
Decentraland China has designed a Mid-Autumn Festival themed space for the community to gather in the Metaverse, and its limited-edition mooncake NFT it prepared for visitors to its zone have all been snapped up.
"In the virtual world, everybody communicates and interacts with other people from around the world, to share a sense of happiness."
For those who prefer mooncakes they can actually taste, Wesley Wan, the founder of vegetarian food retailer Esca, has been offering crypto embossed versions in a Hong Kong mall.
And Hong Kong's love of crypto has proven strong, Wan says demand has far exceeded his expectations.
Forkast.News I'm Michele Lim in Hong Kong.
Mooncakes in the metaverse, what will they think of next? Well, you can be sure we're going to tell you all about it here at Forkast.News.
And that's The Daily Forkast from our vantage point right here in Asia. For more visit Forkast.News. I'm Editor-in-Chief Angie Lau. Until the next time.