Will CluCoin’s Launch Give Charities Some Space on the Blockchain 0 214

You probably hear news of dozens of new coins launching every single day. Each coin is supposed to solve some sort of problem, but how many times have you seen cryptocurrencies launching for the purpose of supporting charities?

If you have been waiting for one like that, your wait is over. CluCoin is the name of a new cryptocurrency that will work to support charities. The names behind its creations are no big players. If you are wondering, some streamer on Twitch, namely DNP3, was able to create this new coin. To keep trolls from causing a mess in their lives, the developers have decided to keep their real names and identities a secret.

The idea of the coin is quite unique in the sense that you are supposed to keep it with you for as long as you can. In other words, you are not supposed to sell the coin because the system does not encourage you to. Keep holding the coins and it will benefit you. How it will benefit you will become clearer when the system becomes more refined and transparent.

There is no specific charity that CLU (the symbol for CluCoin on the exchange) is currently supporting. At the moment, after the wallet has a certain amount from the charity contributors, the community decides on a charity to which it forwards all the proceeds.

The developing team is still hoping to get some partners on board to make charities easier, but there are none at the moment. While most other cryptocurrencies contribute to inflation, you can safely say that CLU will be the odd one out as it promotes deflation. If you have CluCoins, you want to keep them for as long as you can to get rewards.

If you are still interested in selling CLU, you have to keep in mind that 5% of it will go to charity. You can see how the system intrinsically promotes its owners to hold on to the coins they have rather than flushing them out in the market.

It is interesting that the developers of this new cryptocurrency are calling it one of the most transparent cryptocurrencies out there, but only time will prove how much truth is in there. The good news is that after the launch of the cryptocurrency, it took no more than a day for the developers to raise more than $500,000 from the members of its community.

The main developer behind this technology is no ordinary folk. This person has the experience and the credentials to create a digital currency. They are a computer engineer and their online streaming is only an activity they adopted after being a part of the Air Force of the US for more than a decade.

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 42

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 81

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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