The last week of August 2021, saw Bitcoin climb the price ladder. Much celebration and talk because, this was something that happened after quite a while. Predictions started pouring in, we even heard one crypto ‘pundit’, predict a Bitcoin price of $1 million by 2035.
No doubt that small and medium crypto investors, generally follow reviews and opinions to make their purchase decisions. So under normal circumstances, investors would rush to buy BTC. This reaction was conspicuously absent this time. The reason was that, conditions in crypto space have not been ‘normal’ since the April – May 2021 Bitcoin and crypto market slump.
While Bitcoin did get an initial price boost most probably from, a handful of big BTC investors – the general market refused to be taken for a ride. As Bitcoin price touched $50,000, we saw a rapid sale and prices came down, to around $47,000 within the next 2 to 3 days. The trend to sell could be considered to be premature but, lack of confidence resulted in previously unseen investor behavior.
We at Glitzkoin were the first to recommend that crypto investors, have a clear exit strategy when investing in Bitcoin or, any other cryptocurrency. Things get even more important when it comes to BTC. This because it happens to be the most, manipulated cryptocurrency. Backed by a small group of exorbitantly rich crypto investors – Bitcoin has become little more than a puppet!
Coming back to the April – May 2021 Bitcoin price crash. A very vocal, well known and rich crypto player – dumped a huge amount of BTC. It happened all of a sudden, crypto exchanges were clogged with activity. Bitcoin lost close to 30% of its value within a few hours. Crypto markets crashed – small and medium BTC investors were the biggest losers. It was then that Yahoo Touted Glitzkoin, as one of the 5 cryptocurrencies that, withstood the disastrous market crash.
The gentleman who was primarily responsible for that BTC and crypto market crash, later made a startling disclosure. He apparently dumped Bitcoin, to prove that the crypto had liquidity! The objective was to prove that Bitcoin was as good as cash.
While big crypto players had enough of spare cash and held on to their BTC – millions of smaller investors liquidated their holdings. Losses were high and confidence, in cryptocurrency dipped. A bitter lesson for most Bitcoin investors that, the crypto could be controlled by a tiny group of investors.
Back to the end of August 2021 and we say that, investors had grown more cautious. We would prefer to say that, investors became smarter – they refused to believe crypto media hype. The importance of having BTC sell price targets in mind, was recognized. Implementation of selling plans were promptly executed. This explains why Bitcoin started climbing down from $50,000 within a short while.
It is quite clear now that, pumping Bitcoin with the hope of getting investors to fall into the ‘buy BTC’ trap, has become tough. Every stakeholder in crypto space, should welcome this changed attitude. The next phase which has already commenced, would see investors evaluating a wider range of cryptocurrencies.
We are on track to see a wider base of cryptocurrencies and investors, operating in crypto markets in 2022.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.