Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books. However, many in the crypto community question Binance’s approach, and aren’t fully convinced that they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement, the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings. The company’s initial audit…
In a tweet on Thursday, El Salvador’s pro-Bitcoin president Nayib Bukele announced the nation’s plans to buy 1 Bitcoin per day, starting tomorrow, 18 November 2022. Tron Founder Justin Sun didn’t spare a moment to jump into the conversation announcing he would follow in the nation’s footsteps.
We are buying one #Bitcoin every day starting tomorrow, Bukele stated.
El Salvador’s BTC Reserves Suffer Major Losses Amid FTX Saga
The nation recently celebrated its anniversary of adopting the leading cryptocurrency as a legal tender. Thus far, El Salvador has built bitcoin holdings of 2,381 tokens. However, FTX’s recent crash prompted a crypto selloff that wiped 60% of the value of the nation’s BTC.
Early into the FTX collapse, Bukele faced allegations that Bankman Fried’s troubled firm held El Salvador’s BTC reserves. Binance founder Changpeng Zhao set things straight in a tweet, noting that he had conversed with the president.
Accumulating BTC Lows
The past week was especially tough as BTC sunk to new lows while the FTX debacle rippled across the crypto space. In fact, 2022 has been a trying year for the general crypto market. Large and small-scale participants have suffered significant losses amid the ongoing crypto winter. Events such as the Terra collapse and October’s DeFi hacking spree have contributed to unfavorable conditions.
The recent downfall of FTX founder Sam Bankman-Fried’s crypto empire is the latest blow the crypto space has received. Analysts have described FTX’s historic collapse as one of the worst things that could happen to the industry. More pessimistic predictions have labeled the exchange’s decline as the “death of crypto.”
Of course, not all industry participants agree with the sentiments above. However, several believe the FTX debacle will prolong the bear market. Speculation is rife that BTC could dip to $13k, but El Salvador seems set on its bullish approach to Bitcoin. Indeed, the nation decided to accumulate BTC due to the exchange’s ongoing crisis.
Justin Sun Shares Plans to Mimic El Salvador
El Salvador’s new strategy is known as dollar cost averaging (DCA). This model entails making small, fixed investments on a set schedule rather than a large sum at once with zero regards for market fluctuations. The advantage of this approach is that it eliminates the emotional aspect of decision-making. It could be more profitable in the long term than market-timing strategies.
As stated earlier, Tron founder Justin Sun will also adopt El Salvador’s accumulation scheme. Sun commented under Bukele’s post.
We echo @nayibbukele’s initiative in buying #Bitcoin daily. We will also buy one #Bitcoin every day starting tomorrow!