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Tron Helps Alibaba Build Crypto Exchange Despite Chinese Crypto Ban

  • Yuri Molchan
    📰 News

    Tron assists the trading giant to bring crypto to Alibaba’s vast user-base


Tron Helps Alibaba Build Crypto Exchange Despite Chinese Crypto Ban
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The two Chinese giants are reportedly working on creating a large-scale crypto exchange. Tron sees it as a great opportunity to contribute to the adoption of crypto via the large ecosystem that Alibaba has created over the years.

Burning midnight oil

The working groups of both companies are exchanging info, preparing the basis together and study the methods of work that can be taken from the primary players of this field like Binance, Bitfinex, Coinbase, etc. Alibaba reps confirm that a lot of discussing has been made so far as to planning the exchange infrastructure.


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Chinese crypto ban? Never heard of that!

Alibaba is well aware of the current situation in China regarding electronic currencies. The giant is reportedly collaborating with the authorities in order to get the permission to run the exchange and not to violate the current regulatory measures.

The Alibaba team, as rumours have it, believe that the current prohibition of ICOs and crypto is just a smoke screen. Unofficially, which cannot be confirmed by any public sources, China has made a heavy investment in crypto and mining technologies. Most probably, Alibaba would not even think of starting this new project unless they were positive about getting all the necessary approvals from Chinese regulators.

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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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