On Thursday, Commerzbank announced that it had teamed up with Crypto Finance, a subsidiary of Deutsche Börse, to offer secure trading and custody of cryptoassets to its corporate clients. 

This move comes shortly after Crypto Finance reached a similar agreement with Zürcher Kantonalbank in Switzerland. The service will initially focus on Bitcoin and Ether, allowing selected Commerzbank clients based in Germany to access these digital assets through a regulated and trusted partnership.

In this collaboration, Commerzbank, which is one of Germany’s largest banks in terms of branches, will handle the custody of digital assets. Meanwhile, Crypto Finance will provide the trading services, ensuring the process is both smooth and secure. 

Crypto Finance, which has been active in the institutional crypto space since 2017, has strengthened its presence in Germany by acquiring several regulatory approvals from BaFin, Germany’s financial watchdog. This allows the company to offer fully compliant crypto services in the country, building on its foundation of secure and regulated services in Switzerland.

According to the press release shared with CryptoGlobe, Gernot Kleckner, Divisional Board Member Capital Markets in the Corporate Clients segment at Commerzbank, had this to say about this partnership:

“Our offering in digital assets enables our corporate clients to seize the opportunities presented by bitcoin and ether for the first time. We are a reliable and competent partner for our corporate clients in these future markets. Our joint solution represents the highest level of security in the trading and custody of crypto assets, which is also a standard we also share with the Deutsche Börse Group.”

Crypto Finance CEO Stijn Vander Straeten described the collaboration as a major step forward in expanding access to regulated crypto services for institutional clients throughout Germany and Europe.

In November 2023, Commerzbank became the first German universal bank to obtain a crypto custody license under §1 Abs. 1a Satz 1 Nr. 6 of the German Banking Act (KWG), allowing it to offer a wide range of services related to digital assets, particularly cryptocurrencies.

Featured Image via Pixabay

According to a report by Kyle Bakx and Meegan for CBC News, the Bank of Canada has paused its efforts to introduce a digital version of the Canadian dollar. 

After years of research, the central bank has decided to step back from the idea, focusing instead on broader developments in payment systems both within Canada and globally.

Per the CBC report, the central bank began exploring the concept of a digital currency in 2017 in response to the rapid rise of digital payments and the decreasing use of cash. Public consultations were held in 2022 to assess interest, and in 2024, the central bank released a staff discussion paper (title: “The Role of Public Money in the Digital Age”) outlining reasons why a digital currency might be necessary to maintain monetary control and stability in a world increasingly driven by technology.

Despite the groundwork, the Bank of Canada has shifted its priorities. The CBC says that the bank explained in a statement sent via email that it had conducted extensive research into the potential impacts of a digital currency on the economy and financial systems. The study also examined the technological requirements for creating a secure and accessible digital form of public money. However, rather than moving forward with a digital Canadian dollar at this time, the bank’s focus will shift toward preparing for ongoing changes in the global and domestic payments landscape.

While many nations are exploring central bank digital currencies (CBDCs), only a few, including the Bahamas, Jamaica, and Nigeria, have fully launched their own. 

Karl Schamotta, Chief Market Strategist at Corpay, told CBC that while cryptocurrencies have prompted a wave of financial innovation, there is little immediate need for a digital Loonie. Schamotta suggested that the central bank is likely prioritizing the proven security and reliability of the existing monetary system for the time being.

Featured Image via Unsplash

Bitwise Investments’ Chief Investment Officer, Matt Hougan, has shared his thoughts on Ethereum’s current state, highlighting that it’s not popular in the market right now. According to Hougan’s memo, the Ethereum-to-Bitcoin price ratio has fallen to its lowest in three years, with Ethereum flatlining on a year-to-date basis while Bitcoin has surged by 38%. Hougan also pointed out that Solana, one of Ethereum’s main competitors, has seen a 31% increase in value over the same period.

Hougan attributed Ethereum’s struggles to several factors. He explained that Ethereum faces significant risk in the upcoming U.S. election, especially given its regulatory scrutiny. Hougan noted that while Bitcoin has largely cleared regulatory hurdles, Ethereum has not been so fortunate. The Securities and Exchange Commission (SEC) appears to consider staked ETH a security, Hougan said, and the broader decentralized finance (DeFi) ecosystem that supports Ethereum is under heavy regulatory examination.

Additionally, Hougan believes that rising competition from newer blockchains is putting pressure on Ethereum. He highlighted Solana as the prime example, pointing out that the crypto community has become more bullish on these newer, faster, and more cost-efficient blockchains while cooling on Ethereum.

Hougan also discussed how Ethereum’s decision to shift activity to “Layer 2” networks, which are built on top of Ethereum’s primary network, has contributed to its declining revenue. He explained that while transaction volumes on these Layer 2 platforms like Arbitrum, Optimism, and Base are increasing, they are drawing activity away from Ethereum’s core network, leading to a significant revenue drop.

Another point Hougan raised was the lackluster performance of Ethereum exchange-traded funds (ETFs). He said that while new Ethereum ETFs have launched, they have not seen the same success as Bitcoin ETFs. Hougan pointed to $2.7 billion in outflows from Grayscale’s Ethereum Trust as evidence of this struggle.

Despite these challenges, Hougan believes many are missing the bigger picture. He highlighted Ethereum’s dominance in key areas like stablecoins, where more than half are issued on Ethereum’s network. He also pointed out that over 60% of all DeFi assets are locked on Ethereum, and major players like BlackRock have chosen Ethereum as the platform for projects such as tokenized money market funds, which now manage over $500 million in assets.

Hougan also compared Ethereum to Microsoft, suggesting that while newer technologies might generate buzz, Ethereum remains the dominant force with the most developers, active users, and a market cap five times larger than its closest competitor. He believes Ethereum’s regulatory standing, futures market, and ETF infrastructure make it a long-term leader despite the current market sentiment.

Hougan concluded by suggesting that Ethereum’s current challenges are not existential and that the market may reassess its value as the U.S. election approaches, bringing potential regulatory clarity.

Featured Image via Pixabay

On the sidelines of the TOKEN2049 event in Singapore, Charles Hoskinson, Co-founder and CEO of Input Output (IOHK), discussed the future of cryptocurrencies, focusing on the next generation of digital assets and their path toward mainstream adoption. During the interview with Bloomberg TV’s Annabelle Droulers, Hoskinson outlined the evolution of the cryptocurrency space, the major challenges still to be addressed, and how Cardano fits into the larger crypto ecosystem.

Hoskinson began by explaining that the industry is currently in the “middle part of the third generation of cryptocurrencies.” He categorized the progression of the crypto space into four distinct generations. The first generation was Bitcoin, which introduced the concept of decentralized digital currency. The second generation was Ethereum, which brought programmable smart contracts to the forefront. The third generation, represented by platforms like Solana, Cardano, Tezos, and Polkadot, focuses on tackling scalability, governance, and interoperability challenges. He emphasized that while significant progress has been made in governance and scalability, the two remaining hurdles for “trillions of dollars” of real-world assets to flow into the space are privacy and identity.

These two issues, privacy and identity, are crucial for mainstream adoption because they enable regulation and dispute resolution. For example, identity mechanisms would allow users to recover their crypto in the event of a lost key, while privacy enables businesses to maintain confidentiality in areas such as medical records, contracts, and other sensitive data. According to Hoskinson, once privacy and identity are fully addressed, cryptocurrencies will have the infrastructure necessary to bring “the next billion people into the cryptocurrency space” by 2025 or 2026.

Turning to Cardano, Hoskinson highlighted the unique aspects of the blockchain’s journey. Cardano, which started in 2015, is now deep into the third generation of crypto, focusing heavily on scalability, interoperability, and governance. Hoskinson noted that governance has been a significant focus for the past two years, with Cardano actively working on building decentralized governance structures. This is a challenging process that requires coordinating people from more than 100 countries to create an on-chain constitution and establish fair representation in decision-making.

He explained that governance in the blockchain space is fundamentally different from traditional product management models. In centralized systems, such as Apple with the iPhone or Microsoft with Windows, the company has full control over the development and direction of its products. In contrast, decentralized systems, like Cardano, require the holders of the protocol to participate in governance decisions. This decentralized governance model is complex, especially when trying to align people from diverse cultures and regions, but it is essential for creating a sustainable, long-term ecosystem.

Hoskinson went on to explain that the decentralized governance structures Cardano has built are not just theoretical. He pointed to Midnight, a project within the Cardano ecosystem focused on creating private smart contracts and integrating identity. This project is aimed at addressing the “last mile” for business adoption by enabling automated regulation and secure business interactions. Hoskinson stressed that privacy and identity will be pivotal in making cryptocurrencies more business-friendly, allowing companies to adopt blockchain technology with confidence.

When asked whether Cardano’s unique decentralized governance structure is a positive or negative for institutional adoption, Hoskinson firmly stated that it is a “massive positive”. He explained that decentralized governance brings consistency and reliability to the ecosystem, which is crucial for institutions. Using the collapse of FTX and its former CEO Sam Bankman-Fried as an example, Hoskinson argued that centralizing too much power in the hands of one individual or organization can lead to disastrous consequences. In contrast, a decentralized model ensures that no single actor has too much control, creating a more resilient system.

He likened the governance model of Cardano to the Linux Foundation, where hundreds of companies and members come together to work in common interest. In this setup, even competing companies such as IBM and Microsoft can collaborate to support the broader ecosystem, thanks to the stability and fairness of the governance structure. Hoskinson underscored that this kind of consistency is what governments and institutions require before they adopt blockchain technology. No nation-state, he argued, would implement a voting system or any other critical infrastructure on a blockchain unless it can trust that the system will be around for the long term and is governed in a fair and efficient manner.

As the interview progressed, Droulers raised the issue of competition between different blockchains, particularly between Cardano and Solana. Hoskinson responded by suggesting that the fourth generation of cryptocurrencies will bring greater collaboration between blockchains. He believes that multi-resource consensus models will allow staking rewards to be paid across multiple blockchains, creating a financial incentive for these networks to work together rather than compete. In Hoskinson’s view, financial incentives are key to fostering partnerships between different blockchain ecosystems. He remarked that “people have to see emergent value in relationships”, and that the current tokenomics of many cryptocurrencies create a competitive, rather than cooperative, atmosphere.

Looking back at the industry’s growth, Hoskinson expressed amazement at how quickly the space has evolved, remarking that in just 15 years, the industry has grown from one person building Bitcoin to a “gargantuan $450 billion to $2 trillion industry.” He attributed this rapid growth to the decentralized coordination that is inherent in blockchain technology, emphasizing that the future of the space will depend on further developing these coordination mechanisms.

Droulers also raised the issue of token dilution, mentioning that millions of new tokens had been issued in 2024 alone. Hoskinson acknowledged that this could be a challenge but expressed confidence in Cardano’s long-term value proposition. He emphasized that Cardano has one of the most loyal and evangelistic communities in the space. He pointed out that Cardano’s decentralized governance structure, with its $600 million treasury, will soon allow the community to make strategic investments to promote growth. Unlike other projects that have experienced “ephemeral” growth driven by large foundations giving themselves billions of dollars, Cardano’s growth is rooted in deep, long-term philosophical beliefs held by its community.

Hoskinson closed the interview by reflecting on how, much like early Bitcoin enthusiasts, the Cardano community is not just in it for the money but is deeply invested in the vision and message of the project. He noted that many Cardano supporters were there when ADA was worth just a few cents and continue to support the network regardless of the token’s value, which demonstrates the enduring belief in the project’s potential.

On 18 September 18, 2024, at the Token2049 event, Emmett Hollyer, General Manager of Solana Mobile, provided a detailed look into the company’s upcoming Web3 crypto phone, named Seeker.

Slated for release around May 2025, Seeker represents the second iteration of Solana’s push to integrate blockchain technology into mobile hardware, building upon the earlier Saga phone, which saw success after an initial struggle. Hollyer emphasized that Seeker will offer significant hardware improvements over its predecessor, including a better battery, stronger camera, and lighter design. These enhancements come alongside crucial crypto-specific upgrades, reaffirming Solana’s commitment to making Web3 mobile technology more accessible and efficient.

According to Hollyer, Seeker will ship with a specialty-built crypto wallet integrated with the device’s partitioned Seed Vault for key storage. This wallet will allow users to conduct crypto transactions more seamlessly than they could with Saga, providing an improved user experience when interacting with decentralized applications (dApps) and cryptocurrencies. The Seed Vault operates in a secure, partitioned environment, keeping users’ keys safe and separate from other apps and the Android operating system.

The introduction of Seeker comes as Solana Mobile seeks to capitalize on the momentum generated by Saga, which initially faced low sales but turned into a sellout after crypto traders realized they could collect valuable airdropped tokens by purchasing the device. This turnaround revitalized Solana’s interest in developing custom hardware for the blockchain space. Hollyer noted that Seeker’s pre-sales, which surpassed 100,000 units in early 2024, helped the company secure better supply chain deals for this new model.

A standout feature of the Seeker phone is its updated Solana Dapp Store, which improves upon the version introduced with Saga. Hollyer explained that Seeker’s Dapp store enhances the discoverability of apps, making it easier for users to explore and engage with the growing number of crypto applications. While only a handful of teams built apps for Saga, the Seeker has generated significant interest, with “tons of teams” reaching out to develop apps tailored for the new device. Hollyer emphasized that the strong pre-sales have fueled developer excitement, contributing to the rapid growth of the Solana ecosystem.

The Dapp store will also track token rewards more effectively, ensuring that users can easily monitor the rewards they earn from various apps and decentralized projects. This will be particularly useful as more teams plan to issue rewards to Seeker phone owners, creating new opportunities for users to generate income through their mobile devices.

In addition to hardware and app store upgrades, Seeker introduces new capabilities for third-party apps, particularly in how they access the phone’s “digital exhaust.” Digital exhaust refers to the wealth of data produced by mobile devices, including GPS data, cellular data, and computational power. While most device manufacturers tightly control this data for privacy reasons, Seeker will allow third-party apps to harness these resources, which could be highly valuable for decentralized physical infrastructure networks (DePIN) and other crypto projects.

Solana Mobile has worked closely with teams from Helium and other DePIN projects to optimize Seeker’s sensors for this type of data collection. For example, the Helium network, which operates a user-bootstrapped cellular network, can utilize data points from Seeker to improve network mapping and growth tracking. Hollyer highlighted that this approach would unlock “unbelievable opportunities” for Seeker users to earn and engage with the decentralized ecosystem by contributing their device’s data to these projects.

Hollyer also confirmed that pre-orders for Seeker include the Chapter 2 Pre-order Token, allowing early adopters to participate in the Solana rewards system while they wait for the phone to ship. Additionally, the Founder Window Pricing has been reintroduced, making the phone available for $450 until the end of the Solana Breakpoint conference on September 21. This pricing strategy aims to make Seeker more accessible while building excitement for the phone’s eventual release.

Featured Image via Solana Mobile

Binance has witnessed a 40% increase in institutional and corporate investors joining its platform this year, CEO Richard Teng told CNBC during an interview at the Token2049 conference in Singapore. Teng, who became CEO in November 2023, emphasized that institutional involvement in the crypto space is still in its early stages, as many firms are still performing due diligence before fully committing. According to Teng, this surge marks the beginning of what could be a much larger wave of institutional investment in cryptocurrencies.

Teng highlighted that Binance has seen a substantial uptick in onboarding institutional and corporate clients, with a 40% rise so far this year. Although he did not disclose the names or sizes of these firms, Teng noted that this growth reflects increasing trust from larger financial players, despite the company’s past regulatory challenges in the U.S. Last year, Binance settled a $4.3 billion case, which led to the resignation of co-founder and former CEO Changpeng Zhao. Although Zhao stepped down, he remains a major shareholder, Teng confirmed in the CNBC interview.

As part of Binance’s transition, the company has shifted from being a founder-led firm to one run by a board of seven directors. Teng said this new structure aligns with regulatory standards, helping Binance position itself as a more established and reliable entity in the eyes of financial authorities.

During the interview, Teng also discussed the importance of regulatory clarity in the crypto market. He referenced the U.S. approval of spot exchange-traded funds (ETFs) for Bitcoin and Ether earlier this year as a key development that will provide mainstream users and institutions with more confidence. Teng linked Bitcoin’s surge to over $70,000 in March to increased institutional participation.

Teng also pointed to the growing interest in Bitcoin from major financial figures, such as BlackRock’s CEO Larry Fink, who once doubted Bitcoin but now refers to it as “digital gold.” Teng believes institutional players like BlackRock and Franklin Templeton are crucial to pushing crypto further into the mainstream.

Furthermore, Teng mentioned how Bitcoin’s price typically rises around 160 days after its halving, a technical event that reduces the amount of new bitcoin entering the market. The most recent halving occurred in April, and as of Wednesday, Teng noted that the market was just nine days away from reaching that 160-day milestone, hinting at potential price movements.

Featured Image via YouTube

On September 17, Jan van Eck, the CEO of global asset manager Van Eck Associates Corp, was interviewed on Bloomberg Radio, where he shared his concerns about the fiscal situation in the United States. He emphasized that the country’s fiscal deficit had reached historic highs, even with low unemployment. According to van Eck, this development is significantly different from previous periods when deficits were similarly concerning but often alleviated by central bank interventions. He pointed to examples such as Japan, which has managed to delay economic consequences despite maintaining high debt levels for more than 20 years.

In van Eck’s view, the U.S. cannot continue with its current spending levels, particularly after witnessing inflation spurred by government expenditures. He suggested that regardless of the political situation, spending will need to decrease. Van Eck noted that in the past, discussions about the U.S. deficit often faded away because of central banks buying up debt. However, this time, he believes that spending will need to be curbed, a move that could slow down economic activity.

During the conversation, Bloomberg Radio host Barry Ritholtz challenged van Eck’s view by referencing how Japan has operated under a significant debt burden without major economic consequences. Van Eck responded that, while it’s true Japan has managed its debt, the U.S. will likely have to reduce its spending soon, as the inflationary pressures caused by recent high spending levels could not be ignored. He noted that from 2022 through 2024, high government spending helped prevent a recession, but continuing that approach may not be sustainable.

Van Eck also commented on the political landscape and its potential impact on future fiscal policies. He pointed out that future trillion-dollar spending packages are unlikely unless there is a drastic political shift. Even within the current administration, he suggested that further large-scale spending would face opposition due to concerns over inflation. He referenced the views of Larry Summers, who had argued that inflation would persist and require significant unemployment to be brought under control. Although inflation proved to be transitory, it lasted longer than anticipated, further complicating efforts to manage fiscal policy.

Van Eck also addressed the possibility of continued high spending. While some analysts argue that markets could continue to thrive, van Eck expressed his belief that a reduction in government spending is more likely. He highlighted how several major pieces of legislation, including the infrastructure bill and the Inflation Reduction Act, have already been passed, making it unlikely that future spending packages of similar scale will be enacted in the near future.

On the topic of investments, van Eck stressed the importance of holding assets that can hedge against fiscal instability. He pointed to gold and Bitcoin, both of which have recently hit all-time highs, as key assets for weathering potential economic turbulence. Interestingly, van Eck noted that despite these assets’ strong performance, there seemed to be fewer “Bitcoin or gold bulls” at the Future Proof conference he attended. This shift in sentiment among investors stood out to him, suggesting that the investment landscape might be changing.

When asked what indicators he was watching to monitor the situation, van Eck pointed to technical metrics for both gold and Bitcoin. He explained that the rally in these assets is tied to concerns about fiscal policy, while the equity markets have been driven by the AI boom and strong performance from several large companies. Although he remains optimistic about U.S. equities, he warned that investors should also be mindful of risks arising from fiscal turbulence.

Looking ahead, van Eck expressed optimism about India’s economic future. He predicted that India’s economy would surpass that of Continental Europe within the next decade. He acknowledged concerns about valuations in Indian markets but argued that the country’s rapid digitalization and the dominance of two telecom companies in controlling internet access present attractive investment opportunities.

Featured Image via Pixabay

In a world where digital currencies and blockchain-based games are on the rise, Meme Alliance is emerging as a unique player, bringing together the most popular memecoin communities in a groundbreaking first-person shooter game. With its cutting-edge design and a strong focus on community integration, Meme Alliance is positioned to become a key player in the future of Web3 gaming.

A Game Like No OtherDeveloped using Unreal Engine 5, the Meme Alliance game offers players an immersive, high-quality gaming experience, combining stunning visuals, engaging gameplay, and the distinctive humor of the meme culture. The game is designed to unite memecoin communities, creating an ecosystem where iconic characters such as Pepe, Shiba Inu, Volt Inu, Dogelon Mars, and many more, battle for supremacy in a fast-paced, thrilling FPS environment.

Players can form alliances, represent their favorite memecoins, and earn rewards through their in-game achievements. Meme Alliance goes beyond the standard gaming experience by providing unique features like on-chain integration, a marketplace for in-game assets, and the ability to earn multiple tokens. This Play-to-Earn (P2E) structure allows players to monetize their skills while contributing to their community’s success.

Partnership with Immutable: A Game-Changing MoveMeme Alliance’s official partnership with Immutable, a leading name in the Web3 gaming space, opens the door to a wide range of new opportunities. Immutable’s blockchain solutions, known for their seamless and secure integration, provide a stable platform for Meme Alliance’s in-game economy. The Immutable Passport wallet will enable players to easily manage their assets while benefiting from low gas fees and fast transactions.

With access to over a million Immutable users, this partnership brings Meme Alliance closer to a broader Web3 audience and provides a vital bridge between Ethereum and Immutable for token interoperability. This collaboration is a crucial milestone for Meme Alliance, enhancing its credibility and solidifying its position in the growing Web3 gaming market.

Beta Release and Upcoming Public LaunchMeme Alliance is currently in its beta stage, giving players a chance to experience the gameplay and get a feel for the mechanics before the full public release. With the beta live, early players have been able to explore the game’s innovative features and provide valuable feedback. The official public release is slated for October, promising an even more polished version of the game that incorporates on-chain integration and a fully functional marketplace.

Expanding to Solana: The Next Big StepIn addition to its presence on Ethereum, Meme Alliance is now expanding to the Solana blockchain through a public sale, taking advantage of Solana’s high-speed, low-cost transactions. The public presale of the $MMA token, which is now live on TheGemPad, marks a significant milestone for the project’s growth and its commitment to expanding into multiple blockchain ecosystems.

By launching on Solana, Meme Alliance aims to attract a broader audience and provide its players with an efficient, scalable platform. The move is expected to enhance the overall gaming experience by offering faster transaction times and a more accessible entry point for new players.

Big Partnerships with Leading MemecoinsMeme Alliance has secured multiple high-profile partnerships with some of the most well-known memecoins, including Volt Inu, Dogelon Mars, BOB, and Turbo. These partnerships bring popular characters from these tokens into the game, allowing their communities to join in the fun. With each memecoin community represented in the game, players can now rally behind their favorite tokens, enhancing the sense of camaraderie and competition.

Play-to-Earn LeaderboardsOne of the standout features of Meme Alliance is its Play-to-Earn system, where players can compete on weekly leaderboards and earn rewards. This incentivizes skillful gameplay and creates a thriving competitive environment where both crypto and non-crypto gamers can benefit. The P2E model is designed to bring real value to players, with prizes that include native tokens like $MMA and other popular memecoins.

A Bright Future in Web3 GamingWith its unique concept, strong partnerships, and ambitious plans, Meme Alliance has the potential to become a major player in the Web3 gaming world. The project combines the growing popularity of blockchain gaming with the viral appeal of memecoins, creating an exciting and inclusive gaming experience for players of all backgrounds. As Web3 gaming continues to grow, Meme Alliance is poised to capture the attention of gamers and crypto enthusiasts alike.

For more information and to join the Meme Alliance, 

visit www.meme-alliance.com.

Twitter: https://x.com/memealliancefps Telegram: https://t.me/MemeAllianceFPS

Federal Reserve Chair Jerome Powell, during his 18 September 2024 press conference, emphasized the Fed’s commitment to achieving its dual mandate of maximum employment and stable prices. Powell highlighted the significant progress the U.S. economy has made, particularly in reducing inflation, which has dropped from a peak of 7% to an estimated 2.2% as of August 2024. This drop in inflation enabled the Federal Open Market Committee (FOMC) to cut the policy interest rate by half a percentage point. Powell stressed that this rate cut aligns with the Fed’s long-term goal of sustainably bringing inflation down to 2% while preserving strength in the labor market.

Powell addressed the overall economic outlook, pointing out that economic activity in the U.S. continues to expand at a solid pace. He mentioned that U.S. gross domestic product (GDP) grew at an annual rate of 2.2% in the first half of the year, and he expects this rate of growth to continue. He attributed this growth to resilient consumer spending and renewed investment in sectors like equipment and intangibles. Powell noted that the labor market remains strong, with the unemployment rate at 3.8% as of August. He described job growth as solid, though it has slowed from the robust pace seen earlier in the year, reflecting a healthy rebalancing between labor supply and demand.

During the press conference, Powell acknowledged the economic challenges posed by higher interest rates and their impact on businesses and consumers. He pointed out that tighter financial conditions have affected interest-sensitive sectors like housing and business investment, with the housing market slowing down significantly. However, Powell reiterated the need for the Fed to balance its policies to ensure inflation remains low while minimizing adverse effects on economic growth.

Powell also provided insights into the FOMC’s thinking on future monetary policy. He noted that while the Fed had made progress in taming inflation, uncertainties remain. The Fed is carefully monitoring economic data and remains prepared to adjust monetary policy if necessary. Powell stressed that future rate cuts would be data-dependent, and the FOMC would continue to evaluate factors such as inflation expectations, wage growth, and overall economic performance.

One of the more pressing issues Powell addressed was the impact of global developments on the U.S. economy. He cited concerns about geopolitical tensions and disruptions in global supply chains, which continue to exert pressure on inflation and economic growth. Powell noted that these external factors add complexity to the Fed’s decision-making process, especially as it seeks to manage domestic inflationary pressures while being mindful of global risks.

Powell also spoke about the Fed’s approach to financial stability, emphasizing that the central bank remains vigilant in monitoring potential risks in the financial system. He acknowledged that higher interest rates have increased the risk of financial stress for some institutions, but he reassured that the banking sector remains resilient. Powell mentioned that the Fed continues to collaborate with other regulatory agencies to ensure that the financial system can withstand potential shocks.

During the Q&A session, Powell was asked about the possibility of a recession. He responded that while the Fed is aware of the risks posed by slower growth and tighter financial conditions, its primary focus remains on achieving its inflation target without triggering a recession. Powell noted that the Fed is closely watching for signs of slowing demand but remains confident that a soft landing—where inflation is tamed without significant job losses—is still achievable.

DUBAI, UAE — September 16, 2024 — Trust Wallet, the world’s leading self-custody Web3 wallet trusted by over 140 million users, has released its latest brand film, “In Freedom We Trust”. The film highlights the empowering benefits of cryptocurrency, emphasizing financial freedom, ownership and self-custody. The bold narrative encourages viewers to rethink ownership—from data to money—inviting them to take full control of their financial future with Trust Wallet in the Web3 space.

As the financial world continues to evolve, Trust Wallet stands at the forefront, empowering hundreds of millions to own and manage their assets without intermediaries. The brand film serves as a visual representation of this commitment, showcasing why and how Trust Wallet enables users to achieve true financial freedom through complete ownership and self-custody of their digital assets.

“In the rapidly changing technological, economic and political landscape, Trust Wallet is not only a tool, but also represents a movement and community of hundreds of millions of people choosing to own their story,” said Eowyn Chen, CEO at Trust Wallet. “Our brand film is a vision statement and celebration of the empowerment that comes with decentralization and self-custody. We believe that everyone should have the freedom to own their financial and data assets securely. At Trust Wallet, we proudly say, ‘In freedom we trust.’”

The film also highlights the seamless experience Trust Wallet provides, from exploring and managing a wide range of cryptocurrencies to securely storing these assets, all while ensuring users remain in complete control. Trust Wallet’s simple and intuitive interface and robust security features allow anyone, from seasoned investors to newcomers, to participate confidently in the digital economy and seize the best financial opportunities in Web3.

The release of this brand film marks another milestone in Trust Wallet’s mission to democratize opportunities in blockchain, giving people all over the world the power and foundations to achieve their financial independence.

For more information and to watch the brand film, visit: https://trustwallet.com/trust-brand-film

About Trust Wallet

Trust Wallet is the secure, self-custody Web3 wallet and gateway for people who want to fully own, control, and leverage the power of their digital assets. From beginners to experienced users, Trust Wallet makes it easier, safer, and convenient for millions of people around the world to experience Web3, access dApps securely, store and manage their crypto and NFTs, as well as buy, sell, and stake crypto to earn rewards — all in one place and without limits.

Since 2017, Trust Wallet’s mission has been to simplify and democratize crypto, ensuring accessibility for everyone. By building the foundations for the future of the free web, Trust Wallet aims to give everyone the freedom to truly own their digital assets.

Trust Yourself

With Trust Wallet, you are not just a user — you are the master of your financial destiny. Whether you’re investing, searching for new financial opportunities or simply holding, your assets are always in your hands. No more reliance on third parties or centralized systems; it’s your money, your rules.

Join millions who have already embraced the future of finance. Experience the true meaning of financial freedom with Trust Wallet, where ownership is yours and self-custody is a reality. Take back control today. https://trustwallet.com/

For media enquiries, contact:Dami Odufuwa, Head of Communicationspress@trustwallet.com

In a recent post on social media platform X, Ki Young Ju, the founder of CryptoQuant, voiced serious concerns about the state of the Web3 and the broader crypto industry—excluding Bitcoin. Ju emphasized that while Bitcoin remains unaffected, the rest of the crypto space is in crisis due to its failure to generate the same dopamine-fueled excitement that once drove the industry. He likened the early crypto environment to a game that triggered human happiness through challenges, competition, and social connections. Previously, the crypto space offered two main dopamine triggers, according to Ju: the thrill of making unpredictable financial gains and the excitement of creating new, groundbreaking technologies.

Ju noted that these two activities appealed to different groups within the crypto world—traders and builders. He pointed out that traders, especially those seeking quick profits, experienced excitement through the volatile nature of the markets. Builders, on the other hand, found pleasure in pioneering new technologies and exploring uncharted territories within the blockchain space. However, as time has passed, Ju pointed out, both traders and builders have evolved. He said that in the early days, many investors were drawn by the philosophy behind Bitcoin, while six years ago, futures traders became dominant. Ju claimed that more conservative investors are taking the lead in the industry today.

As for the builders, Ju described the early crypto pioneers as cypherpunk cryptographers, who exchange founders and coin issuers later succeeded during the trading boom six years ago. He pointed out that individuals from various industries, including finance and gaming, are joining the space. Yet, they do not blend well with the “game-oriented” mindset of traditional crypto traders. According to Ju, what these new builders create no longer provides the same dopamine rush to traders, leading to a disconnect between the two groups.

This disconnect, Ju warned, has caused the synergy between traders and builders to disappear. In his view, the creations of the early builders once fueled traders’ enthusiasm, but over time, most of these builders have left the industry, suppressed by financial regulations, imprisonment, or the comforts of wealth. As a result, Ju said, the crypto industry is gradually becoming a mere gambling den. He observed that the remaining builders are now creating either “gambling products” like meme coins or traditional financial products that no longer excite traders.

Ju went on to say that the industry’s failure to provide dopamine to both traders and builders is why it finds itself in crisis. He emphasized that without a new game to stimulate traders, the industry will continue to face stagnation. Ju argued that the dismal performance of altcoins in 2024 was proof of this. He concluded by expressing his genuine concern for the future of the industry, suggesting that unless fresh opportunities emerge to engage traders, the crypto market is headed for prolonged stagnation.

Featured Image via Pixabay

At the Milken Institute’s Asia Summit in Singapore, billionaire hedge fund manager Ray Dalio outlined five key forces driving the global economy today, noting their cyclical and interconnected nature, according to a report by Lee Ying Shan for CNBC.

Speaking ahead of the U.S. Federal Reserve’s much-anticipated interest rate decision, Dalio first highlighted concerns about how the U.S. will manage its rising debt. With benchmark interest rates at their highest level in over two decades, the U.S. government now spends $1.049 trillion on debt service, a 30% year-over-year increase. Dalio questioned how this mounting debt would impact the value of U.S. assets and its role as a reliable store of wealth.

Per the CNBC report, Dalio also drew attention to what he described as “internal disorder” within the U.S., particularly the widening political divide ahead of the 2024 presidential election. He warned that these irreconcilable differences between the political right and left, exacerbated by wealth inequality, could disrupt the peaceful transfer of power. Despite Vice President Kamala Harris being seen as the frontrunner, Dalio suggested that political instability could pose a greater risk to the country’s economy than any candidate’s policies.

On the international stage, Dalio cited the escalating tensions between the U.S. and China as a significant source of concern. Dalio says that issues like Taiwan’s political status and economic tariffs have strained relations between the two superpowers. While Dalio noted that mutual fear of destruction may prevent outright conflict, he said that these geopolitical tensions are a major contributor to global disorder.

Dalio also emphasized the growing impact of environmental issues, stating that “acts of nature,” such as droughts, floods, and pandemics, have historically caused more societal disruption than wars. CNBC highlighted his warning that climate change could soon impose even greater economic costs, with global GDP expected to shrink by 12% for every one °C increase in temperature.

Lastly, Dalio underscored the transformative power of technology. He suggested that those who can effectively harness technological advancements will see significant benefits while also warning that it could deepen economic inequality. Dalio’s overall assessment was cautious, with his final remarks indicating that the global economy faces more downside risks than upside opportunities.

The Reserve Bank of Australia (RBA) has announced that it will prioritize exploring the use cases for a wholesale central bank digital currency (CBDC), according to a report by Swati Pandey for Bloomberg. While the idea of a retail CBDC has been widely discussed globally, the RBA’s Assistant Governor Brad Jones emphasized that such a move could present significant challenges to financial stability and monetary policy. He stated that retail CBDCs would introduce complex issues that may outweigh potential benefits.

As per Bloomberg’s coverage, the RBA’s immediate priority involves launching a new initiative with industry partners to explore the use of wholesale CBDCs and tokenized commercial bank deposits. Jones indicated that this move toward a wholesale variant would represent an evolution of Australia’s current monetary framework rather than a radical shift. He noted that this project is particularly important as central banks worldwide are exploring blockchain technology to improve the speed and cost of interbank payments.

Bloomberg cited data from the Atlantic Council highlighting that 134 countries and currency unions, collectively representing 98% of global GDP, are currently investigating the development of CBDCs, with three nations having fully launched such systems. Despite the global trend, critics caution that CBDCs could raise privacy concerns due to the potential for transaction monitoring, Bloomberg noted.

In his speech, Jones clarified that should a public policy case for a retail CBDC emerge, the Australian government would have the final say, and legislative changes would likely be required. Meanwhile, the decision-making process for a wholesale CBDC would vary depending on the specifics of the arrangement. Jones also outlined a three-year roadmap for digital money development, which per the Bloomberg report, includes evaluating the potential benefits and design challenges of a retail CBDC starting in 2026.

Furthermore, Bloomberg pointed out that local institutions like ANZ Group Holdings Ltd. and Commonwealth Bank of Australia Ltd. have already participated in pilot projects to explore the feasibility of a CBDC. As Jones laid out, the RBA and the Australian government plan to publish a joint paper later this week, offering further insights into the future of digital currency in the country.

Featured Image via Pixabay

On September 18, in an interview with CNA’s Asia First, Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director, shared his views on the upcoming U.S. election and its potential impact on the cryptocurrency market. Scaramucci expressed concerns over Donald Trump’s latest venture, World Liberty Financial, a cryptocurrency project that he believes could harm the industry and Trump’s political standing. He described the venture as a “breach of norms,” emphasizing that it is the first time a presidential candidate has launched a business of this nature so close to election day. Scaramucci speculated that it might be perceived as a means for Trump to generate profits in a questionable way, potentially damaging his credibility.

Scaramucci acknowledged Trump’s early efforts to promote crypto, noting how the former president’s stance had previously pushed some Democrats toward more crypto-friendly policies. However, the new venture, in Scaramucci’s view, undermines these efforts. He warned that the project might lead to a pump-and-dump situation, hurting individual investors and the industry’s reputation.

Discussing the broader political landscape, Scaramucci suggested that the outcome of the election could influence the future of cryptocurrency regulation. He expressed skepticism toward reports predicting Bitcoin price fluctuations based on who wins the election. While some analysts speculated that a Trump victory could push Bitcoin’s price to $90,000 and a Kamala Harris victory could drop it to $30,000, Scaramucci refuted this narrative. Instead, he predicted that Harris, if elected, would support a more balanced regulatory approach, potentially paving the way for stablecoin legislation that could be favorable to both the U.S. dollar and the crypto industry.

In his endorsement of Harris, Scaramucci highlighted her strong campaign strategy, significant fundraising efforts, and better-organized field operations compared to Trump’s campaign. He pointed out that Harris’s lead in both financial resources and polling, combined with the overall voter registration numbers favoring Democrats, made her the likely winner in his eyes.

When asked about potential surprises in the election, Scaramucci pointed to Trump’s erratic behavior, citing controversial statements and alliances with problematic figures. He believes that such behavior will ultimately exhaust American voters, leading them to seek a more stable and predictable leader in Harris.

Regarding how this election could affect Asia, Scaramucci argued that stability in the U.S. is crucial for the region. He suggested that Harris represents a more consistent and reliable approach to governance, which would be beneficial for international relations and economic growth. In contrast, Trump’s unpredictability was viewed as a detriment to global stability.

The meme-inspired cryptocurrency Dogecoin ($DOGE), which has seen its value dop by around 0.6% over the last 30-day period, has a significant resistance at the $0.11 mark, with around 31 billion DOGE tokens holding at that level.

According to data from IntoTheBlock shared by popular cryptocurrency analyst Ali Martinez, there are 23,400 addresses holding DOGE at around $0.11, with holds above the $3 billion mark. DOGE’s market cap, it’s worth noting, is of $14.8 billion.

If you're anticipating a #Dogecoin breakout, keep in mind the key resistance level at $0.11, where 23,400 addresses are holding ~31 billion $DOGE! pic.twitter.com/iAP28te0bl

— Ali (@ali_charts) September 16, 2024

The data suggests that significant demand would be necessary to help the price of the meme-inspired cryptocurrency surge above the $0.11 mark. Dogecoin is currently trading at $0.1 per token, after losing 1% of its value over the last seven days.

As reported, DOGE recently hit a major milestone after seeing the number of wallet addresses holding it surpass the 90 million mark. It’s worth noting that one wallet doesn’t necessarily mean one user. Anyone can create multiple DOGE wallets, while some wallets – those of exchanges, for example – may hold DOGE belonging to various users.

Earlier this year, Tesla and Space X CEO Elon Musk acknowledged the potential value in Bitcoin and other digital currencies but admitted having a particular fondness for Dogecoin. “I’ve sort of got a soft spot for Dogecoin because I like dogs and memes,” he explained.

Featured image via Unsplash.

Global investment bank UBS has recently predicted that the price of Gold has “further to run” and could even hit $2,700 pr ounce by Jun of next year as the U.S. dollar weakens amid rate cuts from the Federal Reserve.

In a recently published report written by the UBS editorial team, the investmenr bank noted that the DXY index, which measures the performance of the U.S. dollar against six major other currencies, has lost 5% of its value since June while the precious metal rose to a new all-time high near $2,600 an ounce.

The precious metal, UBS wrote, has been benefitting from potentially lower interest rates, as they “lower the opportunity cost of holding the non-yielding asset.” Its rise comes amid a higher-than-expected reading for the US producer price index (PPI) and monthly core consumer inflation.

Markets, the firm wrote, appear to be focusing on media reports suggesting the Federal Reserve could cut interest rates by 50 basis points instead of 25 this week. They added:

In our view, overall inflation data have been good enough to allow the Fed to start cutting rates this week amid a softening labor market, but do not give officials a reason to cut aggressively. Data for retail sales and industrial production due Tuesday could potentially influence the Fed’s decision, with weak results likely to trigger a 50-basis-point cut.

The bank’s base case scenario isn’t of a recession, but rather of a soft landing that could lead to 100 basis points of interest rate reductions this year, and an additional 100 basis points next year.

If that happens, the precious metal could keep on seeing its value rise, while markets move to a lower-rate environment. UBS also noted that the growing US federal deciti is “likely to be a headwind” for the U.S. dollar over the long-term.

Gold, on the other hand, has been surging and seeng growing accumulation, with total gold exchange-traded fund holdings rebounding to nearly 3,182 metric tons this year. UBS’ team wrote:

With upcoming Fed cuts reducing the opportunity cost of holding the non-interest-bearing asset, we expect gold prices to hit USD 2,700/oz by June next year. We also believe gold’s hedging properties make it an attractive proposition from a portfolio perspective amid macro and geopolitical uncertainties.

As CryptoGlobe reported Societe Generale has shifted 100% of its commodity allocation to gold, driven by geopolitical risks and a weakening broader commodity market.

The French bank increased its gold holdings to 7% of its total asset allocation, reflecting a 40% quarter-over-quarter rise. This pivot toward gold signals growing confidence in the yellow metal as a safe-haven asset amid ongoing uncertainties in global markets.

Featured Image via Pixabay

A cryptocurrency trader has lost more than $1.1 million in less than two months after making a large bet on popular decentralized finance platform MakerDAO (MKR), the entity behind the cryptocurrency-backed stablecoin DAI, in late July.

According to data from blockchain analysis service Lookonchain, the trader spent $2.9 million to buy 1,100 MKr tokens in late July, and held them until this month. The trader, who bought the tokens at $2,643 at the time, has now deposited them onto leading cryptocurrency exchange Binance at $1,613.

The move to Binance likely means the trader is now set to sell their holdings to realize a $1.13 million loss on their investment in less than 50 days.

Lost $1.13M in less than 50 days!This trader bought 1,100 $MKR($2.91M) at $2,643 on July 27 and deposited it to #Biance at $1,613 5 hours ago to sell, resulting in a $1.13M loss (-40%)!https://t.co/L5iM7RjHRx pic.twitter.com/10OVuGc2ZQ

— Lookonchain (@lookonchain) September 14, 2024

Last month, the world’s largest cryptoasset manager, Grayscale Investments, a subsidiary of Digital Currency Group, unveiled the Grayscale MakerDAO Trust, which is designed to provide investors with direct exposure to MKR.

Later, MakerDAO co-founder Rune Christensen announced that the project’s next phase was a rebrand to Sky. This transition is apparently the result of over two years of development aimed at introducing new functionalities and improving user interaction within the decentralized finance (DeFi) ecosystem.

At the heart of Sky are two newly introduced tokens, USDS and SKY. USDS is a stablecoin that users can convert from their existing DAI or USDC holdings on a one-to-one basis. This token will play a key role in the Sky ecosystem, facilitating various interactions within the platform.

Meanwhile, SKY serves as the new governance token, replacing MKR. Holders of MKR will have the option to upgrade their tokens to SKY, thereby participating in the governance of the Sky ecosystem. The governance model remains decentralized, allowing users to influence decisions that shape the future of the protocol.

Featured image via Unsplash.

A cryptocurrency trader has managed to turn around $16,600 into over $1.6 million using a meme-inspired cryptocurrency that has recently been listed on leading cryptocurrency exchange Binance, with the listing helping their holdings grow.

According to data shared by blockchain analytics firm Arkham Intelligence, the cryptocurrency trader spent around 5 Ether (ETH) to buy the meme-inspired cryptocurrency Neiro within its first two days.

The trader then held onto their funds for eight weeks, before the cryptocurrency was listed on Binance. The listing helped their holdings surge to over seven figures.

This trader turned $16.5K into $1.8 MILLION on NeiroTrader 0x6ac bought around 5 ETH of Neiro within the first 2 days of its existence.He held for 8 weeks before Binance announced its listing today – sending his holdings over the 7-figure mark.That’s over 100x. pic.twitter.com/5SEF6HDmpK

— Arkham (@ArkhamIntel) September 16, 2024

The meme-inspired cryptocurrency’s price surged after the token, which deems itself the “little sister of Doge” was listed on leading cryptocurrency exchange Binance. The listing boosted the token’s liquidity and accessibility, likely leading to the price rise.

Some on the microblogging platform X (formerly known as Twitter) have taken to the platform to point out that the trader who saw their holdings surge was likely an insider. One user, Crypto Apprenti, said that “someone” knew about the listings one day in advance.

币安老鼠仓真6。@binance so corruption now, someone know they gonna list 15m MC token one day before. @SECGov @GaryGensler pic.twitter.com/IrPcGdhF3O

— Dr.Hash“Wesley” (@CryptoApprenti1) September 16, 2024

It’s not uncommon for traders to see wild swings when dealing with volatile digital assets. As covered, a cryptocurrency trader has managed to, through the purchase of a meme-inspired cryptocurrency that was launched after a viral trend on TikTok, turn around $80,000 into over $1.2 million, before losing nearly all of his gains.

That trader invested  $80,000 into the meme-inspired cryptocurrency AURA three weeks after it was launched, using a different account. The trader’s holding quickly surged to surpass $1.22 million, as AURA’s market capitalization surged to $75 million. However, the cryptocurrency market then started correcting, and the value of their holdings plunged back to around $91,000.

Various traders have managed to make millions off of memecoin investments this year, with one trader, identified on-chain by the alias “sundayfunday.sol,” turning a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.

There have also been significant losses, with a Solana trader losing $37,000 while speculating on a memecoin over their emotional trading pattern. It’s worth noting memecoin are extremely speculative and volatile, and while stories of successful trades often surface, those of unsuccessful trades are often buried.

Featured image via Unsplash.

In a recent interview with Matt Miller on Bloomberg TV, Frank Speiser, CEO of Metafide, shared his insights into former President Donald Trump’s surprising entry into the cryptocurrency space, the evolution of the crypto industry, and Bitcoin’s role as a long-term asset.

Speiser began by discussing Trump’s recently announced DeFi project — World Liberty Financial (WLFI) — speculating that it involves a flash loan protocol designed to settle transactions within a blockchain block. According to Speiser, the project is likely focused on the adoption of stable tokens to facilitate transaction settlements, potentially across different asset classes and exchanges.

However, Speiser believes that Trump’s motivation to dive into crypto goes beyond technology. He suggested that Trump’s personal experiences with censorship and financial control may have driven his interest in crypto. As Speiser explained, Trump likely sees cryptocurrency as a way to resist centralized financial systems, stating, “If it can happen to him, it can happen to anybody.” Speiser emphasized that Trump now recognizes the power of crypto to preserve economic freedom and resist censorship, which aligns with the libertarian ethos of the cryptocurrency movement.

Speiser identified a broader shift happening in the crypto industry, which he described as the “dawn of a new era.” According to Speiser, the industry is moving beyond its adolescent phase of meme tokens and speculative investments. The focus is now shifting toward building serious financial infrastructure and real-world asset tokenization.

While Trump’s crypto plans generated buzz, Speiser noted that the real conversation among executives at the Token 2049 conference in Singapore was about financial innovation. He highlighted that the industry is now maturing, with more emphasis being placed on real-world applications of blockchain and cryptocurrency, such as decentralized finance (DeFi) solutions and stable token adoption.

Though Trump’s crypto project garnered attention, Speiser didn’t draw a direct link between it and Bitcoin. Instead, he spoke more broadly about Bitcoin’s role in the financial system. He pointed out that Bitcoin is no longer seen as a transactional currency, as it was in its early days. Instead, Bitcoin has evolved into an asset to hold due to its fixed supply and the potential for its value to increase over time.

Speiser explained that Bitcoin is now viewed as a store of value in an increasingly inflationary world. He remarked, “When Bitcoin is doing what it’s supposed to do, the price just continues to go up,” highlighting how Bitcoin’s fixed supply contrasts with the inflating supply of fiat currencies like the U.S. dollar.

Speiser also shared insights into his company, Metafide, which focuses on integrating human sentiment into financial models. Metafide allows people involved in financial systems to provide their opinions, which are then incorporated into models that predict asset prices, including cryptocurrencies. By blending human intuition with advanced AI-driven models, Metafide aims to create a more comprehensive view of market dynamics.

While Metafide doesn’t directly trade Bitcoin, the company’s models help hedge fund clients make better-informed decisions in the crypto space by considering both data-driven insights and human opinion.

Featured Image via Pixabay

Hedge fund billionaire John Paulson, renowned for his successful bet against the housing market during the financial crisis, recently warned that Vice President Kamala Harris’ proposed tax plans could lead to a financial market collapse and a recession, according to a report by Yun LI for CNBC. Paulson, a vocal supporter of former President Donald Trump, shared his concerns during an interview on CNBC’s Money Movers.

As reported by CNBC, Paulson criticized Harris’ plan to increase corporate taxes from 21% to 28% and long-term capital gains taxes from 20% to 39%, as well as the introduction of a 25% tax on unrealized capital gains. He predicted that implementing these policies would cause a market crash, with “no question about it.” Harris has proposed a 28% tax on capital gains for households earning over $1 million annually, which is lower than the 39.6% rate proposed by President Joe Biden for the 2025 fiscal year.

Harris has previously endorsed Biden’s idea of a 25% tax on unrealized gains for households worth $100 million or more, also known as the billionaire minimum tax, CNBC noted. However, investor Mark Cuban and others close to Harris’ campaign have suggested she has no real interest in taxing unrealized gains, and there are doubts about whether such a plan could pass through Congress.

CNBC mentioned that Paulson, who made a fortune during the financial crisis by betting against mortgage bonds, has also been an adviser to Trump, reportedly discussing the idea of creating a U.S. sovereign wealth fund. Paulson has been a significant donor to Trump’s 2024 campaign.

The investor also expressed concerns that the economy could fall into a recession if the proposed tax on unrealized gains were to be implemented. According to CNBC, Paulson warned that such a tax could trigger massive sell-offs in assets like homes, stocks, companies, and art, potentially leading to an economic downturn.

Some Wall Street economists, cited by CNBC, agree that raising corporate tax rates from the 21% level set during Trump’s presidency could negatively impact S&P 500 earnings and share prices. However, they don’t foresee a downturn of the magnitude Paulson described.

Paulson also downplayed concerns over Trump’s proposed tariffs potentially reigniting inflation, stating that tariffs could be targeted effectively. He argued that lower taxes would boost economic growth, ultimately increasing revenues and helping close the budget deficit, CNBC added.

Featured Image via YouTube