The IMF calls for more regulation of cryptocurrencies than banning them

Bitcoin it retreated slightly from its eight-month highs, dropping from above $24 earlier in the week to now trading at $500.

Ethereum has also been falling over the past week: it started near $1 but is now hovering around $700.

While still well above its lows, the cryptocurrency market still looks rather shaky amid the possibility of out-of-expected inflation and labor market conditions (both in the US and elsewhere). These macro figures are crucial for central banks' attitude towards rate hikes. Currently, major markets do not anticipate rate cuts in 2023.

While Bitcoin and Ethereum don't seem to be in fear, there is certainly an element of uncertainty among market participants who are awaiting fresh updates - this is reflected in the last week's price movement.

Ethereum whales dominate the supply

The volume of ethereum tokens held by the so-called whales is much higher than bitcoin, according to IntoTheBlock data published in Finbold. Whales - exceptionally large cryptocurrencies - according to data, hold about 39 percent. supply of ethereum, while in the case of bitcoin, this equivalent is only 11 percent.

Is this cause for concern? While it is true that a large amount of Ethereum tokens are hoarded in fewer hands, this need not be an existential threat to the network. Token ownership continues to be distributed and decentralized – just less so than bitcoin. To make significant changes to the network, owners would have to unite and push for change in a coordinated way – but even then, 39% not the dominant majority.

The possession of the token by whales can also affect its price fluctuations. Whales that dump large quantities into the market to sell can affect the price and vice versa.

While it's worth watching as a benchmark, it's ultimately just one of many factors fueling the price of cryptocurrencies. It is these investors who have an advantage compared to other types of traditional assets because all this information is freely available and observable on the blockchain.

Google Cloud approves Tezos

Google made a deal with Tezos to become its network validator. Instead, Google Cloud will offer Tezos validation services through its platform.

Tezos is an open-source blockchain created to enable peer-to-peer transactions (a model of computer communication based on the idea of ​​decentralization) and is intended to serve as a platform for the implementation of smart contracts. It is focused on the infrastructure side of the cryptocurrency ecosphere. From this perspective, it would make sense for Google - itself a key pillar of Web 2.0 infrastructure - to explore the possibilities of building a Web 3.0 presence.

The Tezos cryptocurrency (XTZ) is still well below its all-time highs set in October 2021. Its price increased last week due to the aforementioned announcement, however, it is forming back in its relative range. The partnership with Google is unlikely to be a revolution when it comes to short- and medium-term valuations, but looking at it in the long term, it suggests a positive direction for a project with such great partners in the game.

The IMF calls for more regulation of cryptocurrencies

Managing director Of the International Monetary Fund (IMF) Kristalina Georgieva said that the IMF prefers to take the path of greater regulation of cryptocurrencies rather than banning them altogether.

It is encouraging that such an influential organization is calling for a balanced response from industry regulators rather than an outright ban. Regulation can play a key role in protecting investors while enabling the best innovation to keep the industry moving forward.

Looking at regions such as the UK and Singapore, there is a clear move in this direction, where regulation is aimed at creating a framework for the industry, not stopping it altogether. After the volatile year 2022, sensible regulation will help the market get on a new track, while ensuring proper protection for participants.