Tech

Why cryptocurrencies are making a comeback in the Philippines

Published

9 months ago

27 April, 2024

Why cryptocurrencies are making a comeback in the Philippines

Cryptocurrencies are once again big in the Philippines.

It first took off during the COVID-19 lockdowns in 2021 with a now-defunct video game called Axie Infinity, in which players earned money — often more than minimum wage — through non-fungible tokens, or NFTs.

Of course, the cryptocurrency winter soon followed with the implosion of FTX in 2022, but now cryptocurrencies are back in a big way in the island nation.

Meghan McCarty Carino of Marketplace spoke with journalist Eli Tan, who recently visited and wrote about the scene for the New York Times.

The following is an edited transcript of their conversation

Eli Tan: I went to the internet cafes that had sprung up around Manila. Every evening it was packed with people who came to play these games as a full time income. I visited farms where real farmers were harvesting virtual crops on their phones to earn money that they were using to expand their farms. I talked to people who were, are “OFW.” So they are overseas Filipino workers, and they basically earned enough money through cryptocurrencies to go back home to the Philippines, to their families, and now they call themselves overseas metaverse workers. So yeah, it was a crazy thing to witness.

Meghan McCarty Cute: Yes, it explains a little more about the people who farm cryptocurrency in these metaverse games. Is this the main way he comes back?

Tan: Yes. So there’s this game called Pixels, which is very popular, which is a farming game, which kind of replaced Axie Infinity, which was the other game. And if I can briefly explain how the games work, because it’s a little confusing: Just imagine a normal phone game that has some sort of virtual currency. Think of, I don’t know, Angry Birds or Candy Crush, some game where you earn a currency called gems, gold, diamonds or whatever it is. But what makes these games unique is that you can take that currency, and you can actually move it out of the game and sell it, in this case, for pesos or dollars, or whatever it is. So that’s pretty much how games work. So yes, these farmers love this game. I spoke to the founder of the game and he said that Filipino farmers are constantly messaging him and telling him how to make the game more realistic. And they’re sending him crop schedules and watering routines and all kinds of things.

McCarty Cute: What are the factors that have made cryptocurrencies so popular in the Philippines?

Tan: Well, if you look at the demographics of the Philippines, this is a country where a lot of people don’t have bank accounts: almost half of the people don’t have bank accounts. But almost everyone has access to the Internet, and most people own a phone. So it’s a perfect environment for people to use cryptocurrencies in a place where, I’m told, the traditional banking system has failed, especially in rural provinces where many people were not born in hospitals. They don’t have an identity document, they can’t open bank accounts. But they can buy cryptocurrency. The other thing is that the Philippines has long been an early adopter of technology. In the [1990s] it was the text messaging capital of the world. In the mid-to-early 2000s, it was the social media capital of the world. I mean, Filipinos have always been kind of curious and at the forefront of a lot of these technological movements, and cryptocurrency is kind of those things that they’re really used to.

In 2021 it truly seemed like every cryptocurrency enthusiast’s dream. I mean, people traded the currency of this game [in] Axie Infinity — Smooth Love Potion was the name of the currency. And people went to the grocery store, to the gas stations, and just bought things in cryptocurrency. They didn’t even have to transfer in pesos. This is really the only time cryptocurrency, in my opinion, has truly worked for its intended purpose of being used as a separate currency from the traditional banking system.

McCarty Cute: And then there is the economic aspect. It seems that many people are turning to cryptocurrencies as a way to create wealth in an economy where it is very difficult to do so. This has been a bit of a theme with cryptocurrencies everywhere.

Tan: Yes. And this is also where there is some of the concern. I mean, if you look at the Philippine economy, there’s not a lot of manufacturing power there compared to places like Indonesia. It relies heavily on these IT jobs, or jobs in places like call centers — a lot of them, I’m told, could be replaced by artificial intelligence, and people are really worried about that. But I think the concern is that cryptocurrency is a dangerous thing to invest in or get into, it’s very volatile. And these plays are even more volatile than the traditional assets you think of like bitcoin and ether. So I think that while a lot of people are excited about what this new movement could bring, there’s also a lot of fear, and fear on the part of the government, about what could go wrong.

McCarty Cute: That’s right, cryptocurrency itself is somewhat risky and speculative. And then there are also the kind of scams and frauds that tend to follow.

Tan: Yes exactly. There are many scams and frauds, even by crypto standards in the Philippines. There are a lot of phishing scams where people trick other users into thinking there’s some kind of freebie or some kind of gift and they click on a link and then try to drain their crypto wallet, or there’s this scam called pig slaughter, where basically people will send you a text or message on Facebook, pretend to be someone else who needs something and try to scam you this way. So these two are the common ones that I’ve found that tend to prefer using cryptocurrency because it’s harder to trace back or reverse like you would if you were transferring funds from a bank account.

McCarty Cute: So you write that all this presents a bit of a conundrum for the government. I mean, clearly, there are some big risks here. But there are some advantages to this resurgence. I mean, how did the officials respond?

Tan: You know, officials are a little mixed on this. Most officials at the Securities and Exchange Commission declined my interview requests, but I was able to dig up some transcripts of past speeches and old videos of speeches they had given at cryptocurrency conferences. And I’ve found that I’m really struggling with this, because on the one hand, it could be an economic boon to an otherwise struggling economy. But then, one of the SEC commissioners basically talked about how he was supposed to meet with a lot of the leadership of FTX, which is the defunct cryptocurrency exchange, the day they went bankrupt due to expanding into the Philippines. He was basically talking about, “Look, it would be a sign of economic opportunity. But if we had allowed more Filipinos to invest their money in FTX, it would have been a disaster.” So I think they’re very aware of that. And they are evaluating what the risks are. But they also said that they basically openly stated that they were more pro-crypto than the US Securities and Exchange Commission. So yes, there are many interesting aspects.

McCarty Cute: Does the Philippines regulate cryptocurrency markets right now?

Tan: Regulates cryptocurrency markets. And in the last year, he’s made this big push to push Filipinos towards exchanges and SEC-approved companies and to outlaw a lot of products that he doesn’t consider super safe. But as is the case with cryptocurrencies, people can choose to use the services they want.

McCarty Cute: Why do you think the Philippines is seeing this renewed interest in cryptocurrencies now?

Tan: Well, a lot of it has to do with these bitcoin-endorsed ETFs offered by these huge financial institutions like BlackRock and Fidelity, where there’s just a lot of institutional money that’s coming into the system. And the price of coins is increasing. There is just more money in the system to pay out to users and give out as rewards. Now, because basically, players can once again make minimum wage or double minimum wage, that’s what brought them back, whereas a few months ago they were maybe only making, you know, a tenth of minimum wage.

McCarty Cute: You’ve been involved in cryptocurrencies for a while now. I’m curious about the popularity of cryptocurrencies and what cryptocurrency means in a place like the Philippines. It kind of tells us something more broadly about the cryptocurrency universe and where it might go and what it means?

Tan: Yeah, I mean, what’s interesting to me is I feel like years ago, in 2021, there was all this talk about the metaverse and Web3 and all these really nebulous terms that cryptocurrencies were kind of the future all this stuff. And venture capitalists invest all this money in these visions, right? And it just didn’t work. But whatever the reason, it worked in the Philippines. It’s the only place where these things have actually come to fruition. According to game developers’ estimates, around 30% of the world’s cryptocurrency players are located in the Philippines. It really is heaven for these things. I don’t really know what that says about the broader movement. I think most people at this point are pretty pessimistic about whatever Web3 or the metaverse is, but in Southeast Asia and the Philippines it’s very much alive and has become a lot of people’s livelihood.

More on this

It’s not just the Philippines that has become a cryptocurrency hot spot: several Southeast Asian countries have, according to Forbes.

Vietnam and Indonesia are considered relatively crypto-friendly and, like the Philippines, have large unbanked populations and a large population of migrant workers who regularly send remittances home.

As the article points out, sending money internationally through traditional channels can incur high transaction fees, but with cryptocurrencies this isn’t a big deal.

Indeed, in 2023, overseas Filipino workers – a term mentioned by Eli Tan – sent remittances worth a record $37 billion.

And speaking of 60% of the so-called OFWs are womenwho often leave their families for months or years to go and work abroad.

For his story, Eli Tan spoke to a former preschool teacher who now runs a cryptocurrency guild, teaching tens of thousands of members, many of them Filipinos working overseas, how to trade and invest in cryptocurrencies.

She said that with the cryptocurrency markets recovering, many of those women now earn enough to return home to their families.

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Tech

Hollywood.ai by FAME King Sheeraz Hasan Promulgates a Complete Ecosystem that Unites Web3, Cryptography, AI and Entertainment for Spectacular Global Tech Innovation

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Hollywood.ai by FAME King Sheeraz Hasan Promulgates a Complete Ecosystem that Unites Web3, Cryptography, AI and Entertainment for Spectacular Global Tech Innovation

The one and only FAME King Sheeraz Hasan is launching Hollywood.ai, a revolutionary platform designed to integrate the cutting-edge realms of Web3, cryptocurrency, AI, finance and entertainment. This revolutionary initiative is set to create a seamless, interactive and intuitive ecosystem where the world’s leading technology luminaries can collaborate on innovations, ultimately redefining the future of digital interaction.

Hollywood.ai represents the convergence of the most complex technologies of all time. Fusing Web3 principles, cryptocurrency utilities, AI advances, and financial machinery, Sheeraz’s platform aims to become the nucleus for innovation and modernization. It provides a high-tech environment where technology and creativity collide harmoniously, paving the way for new paths in the digital economy.

A defining feature of Hollywood.ai is the integration of cryptocurrency into the AI ecosystem, transforming AI into a tokenized asset with full cryptographic utility. Sheeraz’s novel approach presents new avenues to leverage the myriad capabilities of AI in the financial realm, unlocking unprecedented opportunities for developers and users alike. Through the amalgamation of AI and cryptocurrency, Hollywood.ai is paving the way for an incredibly interconnected digital space unlike anything seen before.

The platform’s design emphasizes the undeniable symbiosis between various technology sectors. Under Sheeraz’s careful orchestration, Web3 technologies facilitate decentralized collaboration, while AI tools offer enhanced potential for data analytics, content creation, and audience engagement. Additionally, the inclusion of financial innovations ensures rapid mobility of both monetization and investments, providing a holistic environment that meets the ever-evolving demands of the technology and entertainment segments.

Sheeraz’s Hollywood.ai is poised to become the premier hub for industry leaders, developers, and creators to support and empower the next generation of digital experiences. This initiative aspires to drive the emergence of new tools, applications, and services that set new standards for advanced engagement and interaction.

Known for making the impossible possible, Sheeraz envisions a future where global audiences actively participate in designing the next A-list stars from scratch. Hollywood.ai will allow users to watch their creations evolve from simple concepts to 3D talents that can act, sing and perform just like human actors.

The Hollywood.ai platform leverages AI technology to deliver personalized fan engagement, real-time sentiment analysis, and informed content creation. By combining cutting-edge AI capabilities with Sheeraz’s deep understanding of celebrity branding, Hollywood.ai gains immense control over public figures.

Undeniably, FAME’s number one strategist Sheeraz Hasan continues to cement his reputation as a pioneer in the fields of FAME and technology. The power and influence of this latest development brings him closer to total world domination.

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Tech

Online Broker Futu Offers Cryptocurrency Trading in Hong Kong, With Nvidia and Alibaba Stock as Rewards

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Online Broker Futu Offers Cryptocurrency Trading in Hong Kong, With Nvidia and Alibaba Stock as Rewards

Futu Securities International, Hong Kong’s largest online broker, has launched retail cryptocurrency trading in the city, offering shares of Alibaba Holding Group AND Nvidia as a reward in an attempt to attract investors. Futu has begun allowing Hong Kong residents to trade Bitcoin and ether, the world’s two largest cryptocurrencies, directly on the brokerage platform using Hong Kong or U.S. dollars, the company announced Thursday.

The online retail broker said last month that it had received an upgrade to its securities license from the Securities and Futures Commission (SFC), allowing Futu to offer virtual asset trading services to both professional and retail clients in the city.

Futu’s move comes as Hong Kong seeks to boost its attractiveness as a business hub for virtual assets, with the city government launching a series of new cryptocurrency policy initiatives over the past two years, including a mandatory licensing regime for cryptocurrency exchanges.

In addition to offering cryptocurrency trading on its flagship brokerage app, Futu is also seeking a cryptocurrency trading license for its new PantherTrade platform. That platform is among 11 in Hong Kong that are currently “deemed licensed” for cryptocurrency trading, an arrangement that allows them to operate in the city while they await full approval from the SFC.

Hong Kong’s progress in becoming a crypto hub has encountered various challenges, including exit of the major global platforms and relatively low trading activity for cryptocurrency exchange-traded funds offered on local stock exchanges.

Futu is now offering a series of incentives to potential investors, amid a cryptocurrency bull market that has seen the price of bitcoin rise 45 percent this year.

Hong Kong investors who open accounts in August and deposit HK$10,000 (US$1,280) over the next 60 days can receive HK$600 worth of bitcoin, a HK$400 supermarket voucher or a single Chinese stock. e-commerce giant Alibaba. Alibaba owns the South China Morning Post.

By holding 80,000 U.S. dollars for the same period, users can get 1,000 Hong Kong dollars in bitcoin or a share of U.S. artificial intelligence (AI) chip maker Nvidia, whose shares have risen more than 140 percent this year.

A Futu representative said the brokerage firm will also waive cryptocurrency trading fees starting Thursday until further notice.

Futu is the first online brokerage in Hong Kong to allow retail investors to buy cryptocurrency directly on its platform. SFC rules require it to offer this service through a tie-up with a licensed cryptocurrency exchange. Futu is partnering with HashKey Exchange, one of only two licensed exchanges in Hong Kong, according to the representative.

Futu’s local rival Tiger Brokers also said in May that it had begun offering cryptocurrency trading services to professional investors on its platform following a license update. The SFC defines professional investors as those with more than HK$8 million in their investment portfolios or corporate entities with assets exceeding HK$40 million.

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Tech

Tech Crash: $2.6 Trillion Market Cap Vanishes as ‘Magnificent 7’ Prices Stumble

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Tech Crash: $2.6 Trillion Market Cap Vanishes as ‘Magnificent 7’ Prices Stumble

A group of seven megacap tech stocks, often called the Magnificent 7, have lost more than $2.6 trillion in value over the past 20 days, or an average of $125 billion per day over the period. In total, these stocks have lost “three times the value of the entire Brazilian stock market.”

This according to the economic news agency Letter from Kobeissiwho noted on the microblogging platform X (formerly known as Twitter) that the Magnificent 7 batch “is worth as much as Nvidia’s entire current market cap in 20 days,” with Nvidia itself having lost $1 trillion from its high.

Source:Letter from Kobeissi on the X

The group, which includes Nvidia, Microsoft, Amazon, Apple, Alphabet, Meta and Tesla, has undergone a significant correction: in the last 20 days Nvidia has lost 23% of its value, or about $800 billion, while Tesla has fallen 19%, losing $164 billion.

Microsoft, Apple, Amazon, Alphabet and Meta all posted losses of between 9% and 15%, losing between $257 billion and $554 billion in market capitalization, wiping out a total of $200 billion more “than every single German stock market tock combined.”

Tech titans, which have outperformed the broader S&P 500 index since the market bottom of 2022, are now facing a reckoning as investors grow increasingly wary about the sustainability of their meteoric rise, with Nvidia taking the lead soaring 110% since the beginning of the year and over 2,300% in the last five years.

Earnings reports from these companies, starting with Microsoft and culminating with Nvidia in late August, will be closely watched for signs of weakness. Their performance could set the tone for broader market sentiment, with implications for everything from cryptocurrency to other high-risk assets.

Their poor performance comes after a leading macroeconomist, Henrik Zeberg, reiterated his forecast of an impending recession that will be preceded by a final wave in key sectors of the market, but which can potentially be the worst the market has seen since 1929the worst bear market in Wall Street history.

In particular, the Hindenburg Omen, a technical indicator designed to identify potential stock market crashes, began flashing just a month after its previous signal, raising concerns about a possible impending stock market downturn.

The indicator compares the percentage of stocks hitting new 52-week highs and lows to a specific threshold. When the number of stocks hitting both extremes exceeds a certain level, the indicator is said to be triggered, suggesting a greater risk of a crash.

Featured Image via Disinfect.

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Tech

Trump Fights for Cryptocurrency Vote at Bitcoin Conference

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

A large conference hall filled with enthusiastic attendees, Bitcoin logos prominently displayed, and a podium with an American flag

To the Bitcoin Conference 2024 In Nashville, Tennessee, former President Donald Trump delivered a keynote speech.

Trump, the Republican presidential candidate, used the platform to appeal to the tech community and solicit donations for the campaign. During the conference, He said:

I promise the Bitcoin community that the day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over… If we don’t embrace cryptocurrency and Bitcoin technology, China will, other countries will. They will dominate, and we can’t let China dominate. They are making too much progress as it is.

Trump’s speech focused heavily on cryptocurrency policy, positioning it as a partisan issue. He said that if reelected, he would fire SEC Chairman Gary Gensler on his first day in office, a statement that drew enthusiastic applause from the audience. This statement marked a stark contrast to Gensler’s tenure, which has been characterized by rigorous oversight of the cryptocurrency industry.

The former president outlined several pro-crypto initiatives he would undertake if elected. These include transforming the United States into a global cryptocurrency hub, keeping all government-held Bitcoin as a “national Bitcoin reserve,” establishing a presidential advisory council on Bitcoin and cryptocurrency, and developing power plants to support cryptocurrency mining, emphasizing the use of fossil fuels.

Trump’s current embrace of cryptocurrencies represents a reversal from his stance in 2021, when described Bitcoin as a “scam against the dollar.” He also noted that his campaign has received $25 million in donations since accepting cryptocurrency payments two months ago.

The event featured other political figures, including Republican Senators Tim Scott and Tommy Tuberville, as well as Democratic Representatives Wiley Nickel and Ro Khanna. Independent presidential candidate Robert F. Kennedy Jr. also spoke at the conference.

Trump’s appearance at Bitcoin 2024 reflects growing support for his campaign from some tech leaders, including Tesla CEO Elon Musk and cryptocurrency entrepreneurs Cameron and Tyler Winklevoss.

While Trump has described the current administration as “anti-crypto,” Democratic Congressman Wiley Nickel said Vice President Kamala Harris is taking a “forward-thinking approach to digital assets and blockchain technology.”

This event underscores the growing political importance of cryptocurrency policy in the upcoming presidential election.

Kamala Harris and Democrats Respond on Cryptocurrencies

In a strategic move to repair strained relations, Vice President Kamala Harris’ team has initiated a dialogue with major cryptocurrency industry players. This outreach aims to restore the Democratic Party’s stance on digital assets and promote a more collaborative approach.

THE Financial Times reports that Harris’s advisors have reached out to representatives from industry leaders like Coinbase, Circle, and Ripple Labs. This move comes as the cryptocurrency community increasingly supports Republican candidate Donald Trump, reflecting growing dissatisfaction with the current administration’s cryptocurrency policies.

THE disclosure follows a letter from Democratic lawmakers and 2024 candidates urging the party to reevaluate its approach to digital assets. Harris’s team stresses that this effort is less about securing campaign contributions and more about engaging in constructive dialogue to develop sensible regulations.

The move is part of a broader strategy to reshape the Democratic Party’s image among business leaders, countering perceptions of an anti-business stance. Harris’ campaign aims to project a “pro-business, responsible business” message.

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