The “madness and calmness” made May unbelievable, and the policy direction will be the next concern

May is different and major changes are coming.

Compared to this year’s bull market, which exploded from the beginning of the year, the cryptocurrency market in May could be described as “crazy and calm”. market saw a wave of cooling down, even as people questioned whether the current bull market was sustainable and whether cryptocurrencies had value, and some traditional institutions that had previously purchased them sold off.

The "madness and calmness" made May unbelievable, and the policy direction will be the next concern

Whether it is DeFi or NFT, the development so far has been more than just a cryptocurrency. To attract more traditional institutions to intervene requires technology and scenario applications that can be implemented on the ground, and the key to breakthrough is to be able to implement cryptocurrencies and avoid anti-money laundering.

According to CoinMarketCap data, the number of cryptocurrencies exceeded 10,000 this month, indicating that new funds are pouring in and many new projects are fighting for users and developers, which is positive for the development of the entire cryptocurrency industry.

Looking at the amount of funds, the total amount of funds as of April 30 was $2.15 trillion, while the total amount of funds as of now is $1.6 trillion. Under the market plunge, the funds subtracted more than $550 billion, about 34%, and I believe that the digital currencies in the zoo category also contributed to the missing part of the funds.

The "madness and calmness" made May unbelievable, and the policy direction will be the next concern

From the analysis of the actual situation, if we were to find out some coins that can be combined with entities or unique and innovative among these more than 10,000 cryptocurrencies, I believe at least 50% of these digital currencies would be outside the list. Under the policy suppression, some completely useless CX projects will be gradually eliminated, and some cryptocurrencies that can really solve the current problems technically will be applied in more scenarios with the change of technology.

Let us next review the information on policy.

On May 18, three associations jointly issued an announcement to prevent the risk of speculation in virtual currencies.

At noon on May 21, CCTV.com published a commentary saying that bitcoin is a speculative tool and to be wary of the systematic risk of virtual currencies.

In the afternoon of May 21, Vice Premier Liu He made a clear statement at a meeting of the Financial Committee: to crack down on bitcoin mining and trading, and to resolutely prevent the transmission of individual risks to the social sector.

On May 26, the Development and Reform Commission and four other departments issued an announcement that they will layout national hub nodes of the national arithmetic network.

The "madness and calmness" made May unbelievable, and the policy direction will be the next concern

Before and after several announcements, the coin price kept taking a big dive and the amount of blowout kept rising. At the same time, there were also some hackers attacking the projects with loopholes and profiting from a large amount of tokens, and two major domestic exchanges were interviewed, further intensifying people’s panic, which side-by-side reflects the importance the country attaches to the cryptocurrency and blockchain industry and is also suppressing the public’s speculation on cryptocurrencies.

The most talked about project and airdrop this month should be the open source software funding platform Gitcoin. As a funding platform that has been used more frequently by the public, the distribution of tokens will accelerate the decentralization of the platform, and the traffic gathered from nine rounds of funding has made the platform a global decentralized project, and we can wait and see what happens next.

For June, I think the big event that we should pay attention to is the Kusama auction of Poka and the policy change. Many Poka projects are waiting for the auction of the slot and the development after the auction is over, because most of the token types issued by the projects are still Ether, what value this public chain can make, I think many participants are looking forward to it.

The policy will also continue, and the global mixed attitude towards cryptocurrencies will also change with the International Financial Forum (IFF) to be held on May 29. At a time when the issue of carbon neutrality is becoming more and more important, the fields of electricity, finance, art and technology will be put together for discussion, an event that has never happened before and a key step in determining the future development of cryptocurrencies.

On top of cryptocurrency investment, it is still recommended that you can improve your knowledge and do not purchase some projects that are only suitable for short-term speculation and leveraged contracts, because the short-term timeline is something we cannot predict, and at the moment when the centralization and decentralization game is in progress and the policy is also imperfect, there are bound to be some people wandering in the gray zone, and only continuous learning can have the ability to control the wealth.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-madness-and-calmness-made-may-unbelievable-and-the-policy-direction-will-be-the-next-concern/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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