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Why is the bull market struggling?

Will quantitative easing kick-start the explosive bull market?

According to the most optimistic investors, the recent bearish movement will kick off the altcoin season. According to the most pessimistic the bull market is over. What is the truth? Does it all come down to quantitative easing?

The season of quantitative easing still appears distant, while the prices of significant assets—ranging from cryptocurrencies to equities—have dropped significantly in recent days. What is lacking in this bull market, which seems quite different from previous ones? While nothing has been lost, the global landscape regarding monetary policies, particularly those of the United States, appears far from a turning point.

In this article, we will explore quantitative easing and discuss why igniting the next alt season might be necessary.

Quantitative easing: what is it?

Understanding quantitative easing is crucial for navigating the current market landscape. Simply put, it is “the central banks‘ secret weapon” for stimulating the economy. This contrasts with quantitative tightening, which involves raising interest rates and decreasing the money supply.

Quantitative easing involves significantly lowering interest rates, making it easier for individuals and businesses to borrow money. It also includes the purchase of government bonds and other financial assets. It acts like an “all you can eat” buffet for central banks. This influx of cheap liquidity, which comes from the money that investors choose not to invest in bonds due to their very low yields, then flows into assets that are considered riskier, particularly stocks and cryptocurrencies.

For the past fifteen years, quantitative easing has been the solution for every crisis, from the collapse of Lehman Brothers in 2008 to the COVID-19 pandemic in 2020. It has also fueled recent bull markets. However, the current situation is different. Despite declining inflation between 2021 and 2023, interest rates remain above the 2% target, at 3% in January 2025. This limits the potential for aggressive monetary policy easing. Additionally, this comes on the heels of Trump’s recent announcements about new tariffs, which have been confirmed for Canada and Mexico. According to the Federal Reserve, cutting rates too quickly could lead to excessive speculation in the financial markets and an overheated economy.

The growth of Bitcoin’s market capitalisation

Despite the absence of quantitative easing monetary policies, the market has experienced explosive growth in the final months 2024. Since November 2022, Bitcoin’s price has surged by 448%, and its market capitalisation has risen from USD 300 billion to USD 1,760 billion, peaking at USD 2,150 billion.

This impressive growth is partly due to the approval of spot ETFs. These financial instruments have attracted approximately $38 billion to Bitcoin and currently hold $101 billion worth of BTC, representing 5.79% of the circulating supply. Bitcoin had never before seen a market capitalisation increase of $1.7 trillion at its peak in January 2025. A look at past cycles reveals the following performance:

  • 2015-2017: +11,082% over 1,068 days, with a $326 billion increase in market capitalisation.
  • 2018-2021: +2,021% over 1,060 days, with a $1.21 trillion increase in market capitalisation.

Overall, this market cycle appears strongly positive when analysing Bitcoin’s performance and the milestones achieved over the past three years.

For example, Bitcoin (BTC) has become a central topic in global financial discussions, significantly influencing debates in the United States, including during the presidential elections. Notably, Senator Cynthia Lummis and former President Donald Trump have both advocated for creating a strategic reserve of BTC for the U.S. Treasury.

Some considerations on the market cycle we are currently experiencing

Let’s set aside quantitative easing, which we’ve already noted is a missing element in this market cycle, and instead focus on how this cycle differs from previous ones. The key question for many crypto enthusiasts is: Will there be an altseason, and will it follow the recent market crash?

It is difficult to determine ‘where we are in the cycle’.

On one hand, we can confidently say that we have not yet experienced a true altcoin season. On the contrary, we have gone through one or more meme coin seasons, the most recent coinciding with the launch of TRUMP, a meme coin introduced directly by the former U.S. president in January.

On the other hand, the price of Bitcoin has increased significantly, rising by 60% from the previous cycle’s all-time high. Additionally, it has been over 12 months since Bitcoin first broke its all-time high in January 2024, making this cycle even more unusual.

Despite this, some industry experts believe the outcome is still uncertain. The new retail investors who have entered the market—partly due to the launch of TRUMP—could return if an altcoin season finally takes place.

Has the meme coin casino replaced the altseasons?

This point is closely related to the previous one. The launch of numerous new meme coins, along with the strong performance of associated platforms such as pump.fun, acts as a funnel that attracts and drains liquidity from the crypto market.

As a result, many investors have shifted their focus to the meme coin sector, while others are giving up on altcoins. Additionally, the high expectations surrounding Donald Trump’s election have somewhat diminished. The president has notent has commented in a while on crypto, particularly since the launch of his meme coin.

An axiom that has always applied in previous crypto market cycles—likely triggered by quantitative tightening and liquidity injections—states that the price of Bitcoin rises first, then Ethereum’s price follows. Finally, liquidity flows into smaller altcoins. However, today, the situation seems to have changed. Only time will tell if this marks a paradigm shift or a delay.

Major market players are continuing to accumulate.

Let’s conclude this article with some positive news. Despite the lack of quantitative easing, which has historically catalyzed bull markets, the current cycle demonstrates remarkable resilience. Bitcoin, fueled by institutional ETFs and unprecedented political recognition, has defied historical patterns by growing in a more restrictive monetary environment. However, the absence of a traditional ‘alt season’ and the dominance of meme coins prompt questions about the future of cryptocurrency: Are we witnessing a paradigm shift or merely a temporary pause?

The answer may be found in patience. Institutional investors continue to accumulate assets, indicating that long-term confidence remains strong. While the current macroeconomic climate—characterised by high interest rates and geopolitical tensions—may dampen enthusiasm, it also creates opportunities for strategic accumulation, potentially setting the stage for a future surge. The actual ‘trigger’ for market movement may not be the return of quantitative easing but rather the market’s adaptation to new rules, where innovation, regulation, and mass adoption craft a different narrative. As the history of past cycles teaches us, one certainty remains: markets always surprise us, often just when expectations are low.

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Out Tesla, in Bitcoin: Standard Chartered revolutionises index Mag 7

Standard Chartered replaces Tesla shares with Bitcoin

Standard Chartered has replaced Tesla with Bitcoin in its Mag 7B index, citing higher yield and lower volatility. Discover how cryptocurrency has entered the realm of elite assets.

The banking giant Standard Chartered has released a new report proposing a variation of the well-known “Magnificent Seven,” which includes seven major tech companies that dominate the global stock market. In this latest version, called “Mag 7B,” Tesla shares have been replaced by Bitcoin.

This approach evaluates whether cryptocurrency can be a viable alternative—if not a superior one—to one of the most iconic companies in the technology sector. Early results indicate that Bitcoin has provided higher returns with less volatility. Tesla is struggling due to the significant downturn it experienced following Donald Trump’s arrival in the White House.

Tesla shares and Bitcoin: what is the Mag 7B index and the information ratio

Substituting Bitcoin for Tesla shares in the Mag 7 index, which replicates the behavior of top global technology assets, creates what we can call the Mag 7B. This idea is not original; it comes from Standard Chartered, one of the leading banks in the UK. Interestingly, Geoffrey Kendrick, the bank’s Head of Digital Assets Research, stated that this new composition could generate returns approximately 5% higher from 2017 to the present while reducing average annual volatility by nearly 2%.

This claim is particularly evident when analysing the information ratio, which measures an asset’s extra return compared to a market benchmark about the volatility of its differential returns against a reference index. The information ratio helps evaluate an asset’s performance by comparing it to its associated risks.

Replacing Tesla shares with Bitcoin within the Mag 7 index yields a higher information ratio, suggesting better performance: 1.13 compared to 1.04. Kendrick’s decision to include Bitcoin instead of Tesla shares is based on the observation that Bitcoin behaves more like a tech stock than a traditional store of value. Consequently, it is more correlated to the Nasdaq 100—an index tracking the performance of the 100 most capitalised American tech companies—than gold.

Additionally, the data indicate that since January 2025, following Donald Trump’s assumption of the presidency, Bitcoin’s price performance has shown similarities to Nvidia’s, while Tesla’s seems to be more closely aligned with Ethereum’s in terms of volatility.

Will Bitcoin in institutional wallets become the norm?

The decision to include Bitcoin in the Mag 7B index at the expense of Tesla shares is more than just an academic exercise; it signifies a significant shift in the investment landscape. Various funds, including sovereign wealth funds, are increasingly exploring direct exposure to Bitcoin. BlackRock CEO Larry Fink has emphasised this trend over the past two years. With the recent launch of BlackRock’s Bitcoin ETF in Europe, the prospect of institutional investors allocating capital to Bitcoin has become even more tangible. Furthermore, Europe is home to many affluent savers considering investing in a new but undeniably solid asset.

In summary, Kendrick’s analysis extends beyond potential returns. The lower volatility that could be achieved by substituting Tesla shares with Bitcoin indicates that this cryptocurrency may help rebalance the overall risk of a technology-focused portfolio. The conclusion is clear: Bitcoin is no longer an outsider; it can now be regarded as a legitimate asset in innovation-oriented portfolios.

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The new stablecoins of Fidelity and Donald Trump

The stablecoins of Fidelity and the Trump family

Fidelity Investments and World Liberty Financial, the decentralised finance project (DeFi) backed by the Trump family, announced the launch of two new stablecoins.

Two significant pieces of news regarding stablecoins have recently garnered attention in the crypto market. The first involves Fidelity Investments, one of America’s leading investment firms and an issuer of Bitcoin spot ETFs.

The second stablecoin is USD1, promoted by World Liberty Financial (WLFI), a decentralised finance (DeFi) project backed by former US President Donald Trump. Read on to learn more about these two new stablecoins in the crypto market!

Fidelity Investments prepares to launch a stablecoin

Fidelity Investments, a leading global asset manager, is set to launch its stablecoin, which is expected to be released by the end of May 2025. The Boston-based investment firm aims to create its version of digital cash, following its exploration of the cryptocurrency sector with the introduction of spot ETFs for Bitcoin and Ethereum in 2024.

The upcoming stablecoin is part of Fidelity’s recent proposal to the U.S. Securities and Exchange Commission (SEC) to introduce a tokenised version of its Treasury Digital Fund. This fund comprises cash and U.S. treasuries (government bonds) and is only available to institutional investors and hedge funds.

This initiative may have been influenced by Donald Trump’s election, which marked a shift in the previous administration’s stance toward cryptocurrency. Since the early stages of his election campaign, Trump has promoted pro-cryptocurrency policies and supported the growth of stablecoins.

World Liberty Financial introduced USD1

To illustrate our earlier point about Donald Trump’s support for stablecoins, we present recent news about World Liberty Financial. The Trump family’s DeFi project has launched USD1, a stablecoin.

This stablecoin, similar to the fund Fidelity plans to introduce to blockchain through tokenisation, will be fully backed by U.S. Treasury bonds, cash, or equivalent assets. Not much is known about USD1 except for the blockchains on which it will initially be available: Ethereum and the Binance Smart Chain, which is compatible with EVM.

In summary, recent developments in the cryptocurrency world reveal that Fidelity Investments has decided to launch its stablecoin in preparation for the public release of its Treasury Digital Fund. This product falls into the Real World Asset (RWA) category and has great potential to drive increased crypto adoption.

President Donald Trump has also shown a growing interest in cryptocurrencies and has actively promoted initiatives to position the United States as a leader in this sector. The establishment of World Liberty Financial and the launch of USD1 are concrete examples of this commitment.

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Investing is simple but not easy: 5 paradoxes of personal finance and the crypto world

personal finance

Laziness is a virtue in the investment world! Discover five other paradoxical and counterintuitive (but true) assumptions from the world of personal finance.

What are the central paradoxes of personal finance? Our blog primarily focuses on cryptocurrencies but occasionally explores other areas of the vast investment landscape.

Recently, we came across an intriguing article by Dedalo Invest. The author, Andrea Gonzali, outlines personal finance’s 10 contradictions (or paradoxes). We decided to revisit this article because many of its points resonate strongly with the crypto world.

The investment world can often be counterintuitive. 

While the primary goal of those exploring the markets is logical—maximising returns and minimising losses—many investor actions can seem irrational, especially without the benefit of hindsight. In summary, the objective is clear, intuitive, and rational, but its methods can be complex.

There isn’t a single reason for this complexity. Historically, humans have developed intuition for two key purposes: to ensure the survival of our species and to perpetuate it through procreation. This focus does not include increasing financial capital. To quote the original article’s author, “The fundamentals are intuitive: save regularly, invest wisely, diversify your portfolio, and maintain it over the long term. It is the management of money that is complex.“

Laziness is a virtue.

Let us start with perhaps the most paradoxical statement: laziness often maximises performance, while hyperactivity tends to hinder it. Of course, this observation is not meant to generalise; exceptions certainly exist, such as the highly active meme coin trader who is our friend’s cousin. However, when analysing broader investment and personal finance trends, many of society’s beliefs about the value of hard work and commitment are challenged.

It is essential to clarify that in this context, laziness refers specifically to the operational side of investing, such as the frequency of buying and selling or rebalancing, rather than the time spent studying concepts or theories. This idea also applies to the world of cryptocurrency. The more trades one makes in a particular timeframe, the greater the risk of making mistakes that can lead to significant losses, especially when dealing with certain types of cryptocurrencies.

In traditional finance, so-called “lazy portfolios”—portfolios that simply diversify among a few asset classes using financial instruments that require minimal intervention—have historically outperformed many more complex, actively managed strategies. The same can be said for portfolios predominantly composed of Bitcoin and a few altcoins, even over shorter investment horizons.

Several reasons account for this phenomenon. First and foremost, every trade made on a brokerage platform or a crypto exchange incurs costs and increases the likelihood of making errors. Due to the unpredictable nature of the markets, even professional investors do not try to time the market effectively—that is, they do not attempt to sell assets at their peak value or buy them at their lowest point. Finally, it’s important to note that any capital gains realised from trading are subject to taxation.

You have to follow your intuition

Intuition is crucial for our safety, alerting us to danger before it becomes apparent. However, relying on intuition can be risky when it comes to investments. While humans have only recently begun investing their money, our intuition and the cognitive biases linked to it have developed over hundreds of thousands of years. In simpler terms, our intuition evolved to protect us from threats like wild animals or poisonous plants, not to navigate the complexities of the post-Trump trade market crash.

These cognitive biases are mental shortcuts that shape our beliefs and influence quick decision-making, significantly affecting our investment choices:

1. Anchoring: We assign excessive and irrational value to specific price points. A notable example is the $100,000 threshold for Bitcoin, where many investors made mistakes during the 2021 bull market because they believed BTC would reach this level.

2. Overconfidence Bias occurs when we overestimate our knowledge, decision-making abilities, or predictions’ accuracy.

3. Confirmation Bias: This bias leads us to selectively seek information supporting our existing opinions while ignoring data that contradicts them.

For this reason, rigid investment approaches characterised by clear, unbreakable rules—such as a recurring and buy-and-hold strategy—tend to yield better results than those based on an investor’s instincts or subjective perceptions.

Sales do not attract buyers.

In finance, especially in cryptocurrency, a price decline often drives buyers away, contrary to what typically occurs in other markets. For instance, if we are interested in a pair of shoes and their price drops by 50%, we will likely welcome this reduction and make a purchase. This creates a paradox where, in the markets, the opposite behavior is observed. The well-known meme illustrating a long line of buyers when Bitcoin’s price is $100,000 and an empty line when it falls to $6,000 effectively captures this reality.

The herd effect can explain the concept: when everyone is selling, our instinct prompts us to follow suit, even though we know rationally that it might be the best time to buy. Discounts can be intimidating in the markets because falling prices are typically linked to negative news or behaviors, altering the perception of investors anticipating further declines.

Investing near the highs is the norm, not the exception.

Let’s shift our focus from the crypto sector to traditional financial markets, particularly the stock market. This shift isn’t because the concepts we’re discussing are exclusive to traditional markets but because crypto assets are relatively young compared to stock indices. As a result, we have insufficient historical data to support our thesis fully.

Those entering the investment world for the first time often fear buying at market peaks or feel they are entering too late. However, this concern is unfounded mainly when we examine the history of the S&P 500, the leading stock index that tracks the performance of the 500 largest companies in the United States and, in many ways, reflects general market trends. 

The S&P 500’s chart, which begins in 1957, shows that it spends a significant amount of time near its all-time highs. Between 1957 and March 2025, the index recorded 1,242 new highs. Typically, these all-time highs are separated by very short periods, although there have been a few notable exceptions, such as the seven-year gaps between 2000 and 2007 and between 1973 and 1980. 

In summary, reaching new all-time highs in traditional finance is not an extraordinary event but the norm.

The notion that investing during a bearish market is easier is often misleading. When markets collapse, fear and uncertainty prevail, making investing paradoxically more challenging, even when prices are significantly lower.

What about the world of cryptocurrency? Currently, Bitcoin cannot be compared to the S&P 500 due to the 50-year history that separates them. This difference contributes to Bitcoin’s value being more cyclical and subject to volatility. However, Bitcoin has recently reduced the time between reaching all-time highs, likely due to increased interest from institutional investors. Over time, although we cannot be sure, Bitcoin’s price movements will probably start to resemble those of traditional assets, with gold being a prime example, as both share the characteristic of scarcity.

Investing near the highs is the norm, not the exception

We arrive at the fifth and final point, aptly summarised by Daedalus Invest, in the following paradox:

  • It is essential to start investing as early as possible to benefit from compound interest. 
  • However, you cannot act blindly; you must fully understand what you are doing and educate yourself before you begin investing.

The first statement is straightforward if you know how compound interest works. It refers to the percentage return you earn on an amount that includes previously accumulated interest—essentially, it’s interest on interest. Nevertheless, jumping in without a solid foundation of knowledge can lead to mistakes that may be costly and disheartening, prompting individuals to step away from investing altogether.

So, how can you overcome this challenge? Start by exploring the wealth of resources available on our Academy and Blog!

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ETFs on Solana. When (and if) they are approved.

etf solana

The Solana ETFs have not yet been approved. Some expected them to arrive on 25 January, as the first SEC deadline loomed for the proposed approvals of the VanEck, 21Shares, Canary, and Bitwise ETFs.

What do the experts foresee concerning recent events related to the new US president? What impact could a future approval have on Solana’s price? Find out in this article.

Buy Solana

What is missing for ETFs on Solana?

According to some crypto analysts, the SEC could have approved the Solana ETFs on January 25, as the first deadlines for the proposals from VanEck, 21Shares, Canary, and Bitwise were approaching. However, similar to the situation with Bitcoin and Ethereum ETFs, the Solana ETFs were not approved by the initial deadline. As a result, we will have to wait at least until March 11, the date for the second deadline.

Optimists point out that the SEC’s chairman is no longer Gary Gensler, who has been a long-time critic of the industry. This reflects much of the prevailing sentiment within the US Democratic political landscape. Mark Uyeda, a pro-crypto Republican, has taken office. The political landscape includes Republicans and Donald Trump, who recently launched a meme coin related to Solana’s blockchain.

In summary, the future of Solana ETFs remains uncertain. According to Polymarket, the leading prediction market in the crypto world, there is a high probability (89%) that approval will occur by the end of 2025, although the timeline may still be unpredictable. With Donald Trump back in government, the volatility in the market seems to have increased, making it clear that anything could happen at any time.

A good time for Solana

Solana is performing well, regardless of whether its ETFs are approved in March or face further delays. A significant factor in this success is that the US president selected it as the infrastructure for launching his official meme coin.

Let’s focus on some concrete figures. The total value locked (TVL) on the network has reached a new all-time high of $12 billion, surpassing the previous record of $10 billion set in 2022. Trading volumes are also at their highest: according to DefiLlama, Solana’s blockchain processed over $200 billion in transactions in January alone.

Lastly, it’s important not to overlook the impressive revenues, which, as expected given the results mentioned, reached almost USD 100 million in January alone.

The recent price movements of Solana (SOL)

What has been described so far is also reflected in the price trend of Solana, one of the few altcoins that has risen in recent days. Following a low of $185 on January 13, the cryptocurrency experienced a strong rebound, recording four consecutive days of upward movement, ultimately reaching $220 on January 18.

Check out Solana’s graph!

However, something unexpected happened shortly after: Donald Trump launched his official meme coin. At that moment, many cryptocurrency enthusiasts began to realize that, at least at this stage of the market, Solana is outperforming all other Layer 1 protocols in the race towards mass adoption. From the $220 level reached on January 18, SOL surged to a new all-time high of $295 in less than 48 hours.

The subsequent physiological retracement settled around the $230 mark and appears to have already run its course. SOL is now heading back towards $270. So, where could it go in this bull market?

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The calendar of quarterly results of listed companies

NVIDIA's quarterly data

Check out NVIDIA’s quarterly data calendar and the most important companies in the stock market.

The quarterly data calendar for NVIDIA and other major stock market companies is vital for monitoring market trends. NVIDIA and all publicly listed companies must release quarterly reports every three months. These reports provide essential information about the company’s financial performance for the previous quarter, including revenues, profits, expenses, future forecasts, and more.

This article explains why these reports are essential, how they influence investors’ decisions, and provides an updated timetable for their release.

Quarterly reports: why should companies like NVIDIA publish them?

Before exploring the quarterly earnings calendar of NVIDIA and other major companies in the stock market, it is important to understand some key aspects of these reports. First, it’s essential to note that the publication of these documents is a regulatory requirement designed to ensure a certain level of transparency in the markets.

Quarterly reports are pivotal in enabling investors to evaluate a company’s performance. They help them determine whether the company is growing and generating profits and provide the necessary information to decide whether to buy or sell its shares.

These reports reflect a company’s financial health and serve as a tool for comparing it with competitors. For instance, NVIDIA’s results can be compared to those of other companies in the technology sector. Are NVIDIA’s profits, derived from its GPU production, sufficient to justify its market capitalisation? Are there emerging competitors that can produce at lower costs? The analysis of quarterly reports can partly provide answers to these questions.

How they influence the markets

Like many publicly traded companies, NVIDIA’s quarterly earnings significantly impact the markets. However, the effects are not always obvious and require experience and a thorough understanding to interpret correctly. The reality is more complex and not always linear, adding an element of intrigue to the market dynamics.

There is no precise formula for predicting how the market will react to quarterly earnings reports. Multiple factors influence reactions, with investor expectations playing a crucial role. The stock typically rises if a company’s results align with analysts’ forecasts or exceed them. Conversely, if results are positive but fall short of expectations, the stock may decline.

Another essential factor to consider is the macroeconomic environment. During market uncertainty or weakness periods, even a positive quarterly result may not receive the recognition it deserves. For instance, if the Federal Reserve raises interest rates at the upcoming Federal Open Market Committee (FOMC) meeting on January 29, favourable quarterly results might fail to have a positive impact. Conversely, in a bullish environment, the market may view even less impressive results positively.

Additionally, several other aspects are crucial in how the market reacts to quarterly results. The size of the company, its industry, its market share, and its overall reputation are all factors that can significantly influence market perception and reactions to its quarterly performance.

NVIDIA quarterlies and more: the complete calendar

2025 will be a crucial year for Big Tech and the market in general. Here is the updated calendar with the quarterly reports of the primary listed companies.

Wednesday, 15 January 2025

  • JPMorgan Chase & Co. ($761 billion)
  • Wells Fargo & Co. ($274 billion)
  • Goldman Sachs Group, Inc. ($206 billion)
  • BlackRock, Inc. ($152 billion)
  • Citigroup Inc. ($153 billion)

Thursday, 16 January 2025

  • Bank of America Corp. ($358.4 billion)
  • Morgan Stanley ($220.15 billion)

Tuesday 21 January 2025

  • Netflix, Inc. ($415.44 billion)

Monday 28 January 2025

  • LVMH Moët Hennessy Louis Vuitton SE ($377.21 billion)
  • T-Mobile US, Inc. ($274.5 billion)
  • Alibaba Group Holding Limited (USD 174 billion)

Wednesday, 29 January 2025

  • Meta Platforms, Inc. ($659.88 billion)
  • Microsoft Corporation ($3.23 trillion)
  • Tesla, Inc. ($397.15 billion)

Thursday 30 January 2025

  • Apple Inc. ($3.46 trillion)
  • Visa Inc. ($647.53 billion)
  • Mastercard Incorporated (USD 489.65 billion)

Tuesday 4 February 2025

  • Alphabet Incorporated, Google’s holding company ($1.91 trillion)

Thursday, 6 February 2025

  • Amazon.com, Inc. ($2.48 trillion)

Wednesday, 26 February 2025

  • NVIDIA Corporation ($2.9 trillion)

Over the past few days, it has become clear that 2025 will be a critical year for assessing artificial intelligence’s true impact. This topic is central to leading companies worldwide, including Meta, Microsoft, NVIDIA, and Alphabet. Stay tuned to our blog for the latest updates.

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How to stake. All the ways to get rewards from your crypto

How to stake - getting rewards from your crypto

Learn how to stake cryptocurrencies, what staking is for, which service to use and which tokens can be locked up in staking.

Staking is a common crypto mechanism that permits the functioning of Proof-of-Stake blockchains. In fact, to achieve network consensus – which is necessary to validate transactions – these particular blockchains do not use an external source such as electricity or computational power; instead, they use internal resources, i.e., user guarantees. In other words, staking is the basis of a blockchain’s validation mechanism. However, staking can also refer to the process of locking up cryptos to obtain rewards without necessarily becoming a network’s validator. This article will look at how to stake and all the options available to obtain rewards from cryptos.

What is staking for? 

People who choose to stake might have different goals. Some people stake to become a validator, while others lock up their cryptos only to obtain a reward, delegating to other users the task of transaction validating. Let’s take a look at the different types of staking: 

1. Staking cryptos to become a blockchain validator

The validating nodes of a blockchain are responsible for finalising the network transactions. Contrary to what happens in Proof-of-Work chains, no special technical equipment is needed to validate transactions in Proof-of-Stake chains – it is sufficient to simply stake your crypto. In most cases, people or entities already have some experience in the blockchain field who become validators. You have to open a node after staking a certain amount of cryptocurrencies. This type of staking requires downloading a wallet that enables staking in the chain you want to become a node of, and staying online 24/7. Some blockchains also stipulate a minimum share of crypto to be staked, for example on Tezos it is 8,000 XTZ, on Ethereum 2.0 it will be 32 ETH. 

2. Delegating your stake

If you do not want to manage a validator node, you can delegate your stake to an existing node. Delegation is a convenient alternative if you wish to participate in the consensus mechanism of a blockchain with a lower investment of time and money. When you delegate a node, the amount of cryptocurrency you have staked joins the node’s stake. This way, the validating node will also use your cryptocurrencies to contribute to the functioning of the network. The rewards obtained for the validation work are distributed proportionally between the node and those delegated. You can delegate a node through platforms (decentralised or otherwise) that offer this service. 

3. Staking cryptos to take part in a blockchain’s governance 

In some cases, staking is used to let users participate in blockchain governance. Whoever stakes a certain amount of crypto earns the right to vote on updates, improvements and the direction of the blockchain’s roadmap. This way, staking increases the decentralisation of a project’s decisions.

4. Locking up cryptos to get rewards

Cryptocurrency staking can also mean simply locking up your cryptocurrencies for a period of time to obtain rewards, calculated annually and expressed in APY. These rewards are the equivalent of what traditional finance calls an annual percentage return. Locked cryptocurrencies cannot be traded or sold until the end of the staking period selected. How can I take part in this type of staking? This option is particularly suitable for people who are not particularly familiar with the crypto sector because it does not require any technical expertise, all you need to do is find out about the third-party service you choose. Now let’s see where you can stake! 

Where can you stake?

You can choose different third-party services for staking cryptocurrencies – there are decentralised platforms, dapp, and exchanges (centralised and not), as well as offline options such as external hardware.  

1. Staking via hardware 

Offline staking is called cold staking. In this type of staking, cryptocurrencies are locked up and stored in cold wallets, i.e. wallets that are not connected to the internet. Cold wallets can be hardware, paper wallets or offline applications. Cold staking is often used when locking up large amounts of crypto and to avoid the potential risk of cyber attacks. This type of staking is highly secure, but the staking is managed autonomously, without third parties mediating. For this reason, you need to be familiar with the mechanisms. Even if they are offline, cryptocurrencies in cold wallets are always connected to the blockchain and rewards are earned as in online staking. 

2. Staking via a CEX or DEX

One of the most commonly used services for staking online is through exchanges. Whether centralised or decentralised, exchanges often provide step-by-step guides on how to use staking tools. Each exchange has its features, differing in the type of solution, supported cryptocurrencies, and offered APY. You can choose the one that best suits your needs.

On Young Platform, you can access a simple and intuitive staking solution directly. Currently, you can lock various cryptocurrencies that support staking and earn rewards calculated based on APY, proportional to the amount you decide to stake.

Young Platform offers two staking methods:

  • Liquid Staking allows for greater flexibility with staked crypto without long-term locking.
  • Proof of Stake enables active participation in network security while earning higher rewards than other solutions.

For more information: Staking introduction: an innovative way to put your crypto to work

3. Staking Pools: decentralised protocols and dapps

Many decentralised protocols and dapps offer different staking opportunities. For example, you can lock cryptocurrencies up in Staking Pools, i.e. smart contracts or features that aggregate stakes of other users. Staking pools are usually used by blockchain nodes to increase the size of their stakes and, thus, the probability of being chosen as validators. Furthermore, DeFi protocols and platforms also offer options for Derivative Staking and Liquid Staking, in which rewards are earned through derivative products.  

Staking NFTs

Staking doesn’t end at coins or tokens – the latest frontier of decentralised finance also includes NFT staking. This works similarly to traditional staking – you lock up your non-fungible tokens on unique platforms to obtain rewards in crypto. Not all NFTs are suitable for this practice. Moonbirds, by the startup Proof, is a collection that has implemented a staking feature. Staking NFTs allows people to maximise their digital artwork and sometimes participate in the governance of their projects. 

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Corporate welfare: what is it and how does it work?

Corporate Welfare: what it is and how it works

What is corporate welfare, and how does this valuable tool improve employee well-being? 

If you’re curious about corporate welfare and how it functions, you’re in the right place! Corporate welfare refers to the non-monetary benefits a company provides to enhance the quality of life for its employees.

It’s essential to focus on corporate welfare, its operations in 2023 and its main goal: improving the well-being of employees and their families. In addition to offering various benefits, corporate welfare can contribute to increased company performance, which often correlates directly with employee well-being. 

So, what exactly is corporate welfare, how does it operate in practice, and what are the most valuable and popular initiatives in our country? We will address all these questions in this article!

Corporate Welfare: How Does It Work?

The simplest definition of “corporate welfare” refers to various activities designed to enhance the overall well-being of a company’s employees and their families. This includes initiatives that increase employees’ purchasing power and promote a healthy work-life balance. When implemented thoughtfully and intentionally, these actions can significantly improve the corporate environment and boost employee motivation and performance.

To better understand corporate welfare, let’s examine its applications and explore some popular initiatives. Examples include meal vouchers, shopping vouchers, company cars, and tailored insurance plans. We will discuss these details further in the final section. First, let’s examine the benefits of these types of initiatives.

Benefits for Employees and Companies

A well-structured corporate welfare plan offers numerous advantages for both employees and companies. Improving the corporate environment enhances employees’ motivation and productivity. When employees feel that the company genuinely cares about their psychological and physical well-being, they feel more valued and are better able to achieve common goals with less stress.

This enhanced employee satisfaction also benefits the company, increasing performance and productivity while making it more attractive for talent retention and recruitment. According to the SME Welfare Index Report 2022, companies with a high level of corporate welfare report greater profits compared to those with basic welfare approaches. The research highlighted by Forbes from 2019 to 2022 shows that companies providing benefits to their employees experienced a median turnover increase of 37%, more than double the 18% increase in companies without welfare programs. Furthermore, decreased absenteeism and reduced employee turnover are often indicators of the effectiveness of a corporate welfare plan.

Fiscal Advantages

Understanding the tax benefits associated with corporate welfare initiatives is essential to understanding how they operate. Article 51 of the Testo Unico delle Imposte sui Redditi (TUIR), the primary legislation governing this area, guides companies that use National Collective Labour Agreements (CCNL) and wish to retain the associated benefits.

The main advantage of these initiatives is that, depending on the specific CCNL, costs incurred in providing welfare services can be partially or fully deductible. This deduction helps reduce a company’s taxable income.

In some cases, offering benefits, reimbursements, or vouchers may be mandatory for companies. Such requirements typically arise from stipulations found in the relevant CCNL or company regulations, especially in the following sectors:

  • Metalworkers
  • Telecommunications workers
  • Goldsmiths and jewellers
  • Nursing home staff
  • Care workers

Corporate Welfare: The Most Popular Benefits

To effectively understand corporate welfare and its functionality, we can outline our country’s most common benefits or perks. In recent years, the number of companies that have already implemented or are in the process of establishing a welfare plan for their employees has been rapidly increasing.

Meal Vouchers 

Meal vouchers are by far the most popular corporate welfare benefit.  According to an IPSOS survey, 70% of Italian companies provide employee meal vouchers. These vouchers have recently become more advantageous, as the deductibility ceiling was raised from €7 to €8 for the digital format following the approval of the Budget Law 2020.

Vouchers 

This benefit is highly requested, with 52% of surveyed employees expressing a preference for vouchers. Data from Edenred indicates that voucher issuance increased by 30% from 2019 to 2020, and this trend continues.

The appeal of this welfare option lies in its significant tax benefits. For employees, gift vouchers valued at less than €258.23 (for those without children) and €3,000 (for those with children) are not taxable. The costs related to providing this benefit are fully deductible for employers as they are classified as employment expenses, whether as fringe benefits or as rewards and incentives.

Additionally, this type of corporate welfare is popular because it allows employees to choose how to spend the funds they receive.

If you are a business owner, consider distributing Young Platform vouchers to your employees or offering this option as an alternative. This approach enhances their well-being and helps them maintain their purchasing power over time, which can be impacted by inflation and the devaluation of the euro, primarily through crypto investments.

Technological Devices 

This category encompasses all necessary tools, such as PCs and smartphones, provided to employees to help them perform their tasks effectively. According to IPSOS, 38% of companies supply their employees with the essential software and hardware they need. This practice has grown significantly in response to the rise of remote working.

Insurance Policies and Healthcare 

Corporate welfare initiatives can also take various forms, including health insurance, reimbursement of medical expenses, access to free or discounted healthcare services, and life insurance.

Company Car 

This benefit refers to a vehicle granted for business use, which does not usually impact tax and contribution obligations. Sometimes, the car may also be available for personal use, and taxation is applied based on a conventional value. These examples illustrate the types of benefits companies provide, helping clarify corporate welfare and its operation. If you want to learn more about distributing vouchers to your company’s employees through Young Platform, please contact the team at [email protected].

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DeepSeek: the Chinese AI that crashed the market

The market collapsed following the launch of the R1 version of DeepSeek, an artificial intelligence developed by a Chinese company. What happened?

Over the past few hours, the markets—particularly the NASDAQ (the index of major technology stocks) and the cryptocurrency index—have fallen sharply. Many analysts believe this reaction is due to the launch of the R1 version of DeepSeek, an artificial intelligence system based on language models similar to Chat GPT.

In particular, the speed with which DeepSeek was developed and its extremely low cost caused a stir, especially considering that the model is free and open-source. According to its developers’ statements, the realisation of DeepSeek R1 required only USD 6 million and two months of work.

DeepSeek: a threat to the United States?

What is the leading cause for concern related to this innovation in artificial intelligence, which has contributed to the recent collapse of technology stocks? It is quickly said: DeepSeek seems to work very well, and the costs to develop it are negligible compared to those incurred, for instance, by Google to ‘train’ Gemini ($191 million) or by OpenAI to release Chat GPT 5 (between $1.7 and $2.5 billion). This disparity doubts the robustness of AI-related stocks’ impressive growth.

The most commonly discussed hypothesis—though it should be cautiously approached is that DeepSeek could revolutionize the artificial intelligence market and significantly reduce the demand for specific hardware components. This could potentially lead to a wave of panic selling. Conversely, some argue that this is merely a narrative, a typical ‘catalyst’ used to explain movements that are actually part of normal market fluctuations.

What about the crypto market?

Cryptocurrencies experienced a decline for two primary reasons. First, there is a notable correlation between the stock market and the crypto market: when one market falls, it often pulls the other down as well. Additionally, some analysts believe that macroeconomic factors are at play. For instance, during the Federal Open Market Committee (FOMC) meeting on January 29, interest rates could remain unchanged or even be increased despite the new president, Donald Trump, advocating for a reduction.

The market and price movements

The Nasdaq index experienced a correction of nearly 4% before the market opened, while NVIDIA stock plummeted over 14% in pre-market trading before recovering slightly at the start of the trading session.

In terms of cryptocurrencies, Bitcoin fell below the significant psychological threshold of $100,000, a level considered crucial support by some analysts, but then recovered. Overall ,sentiment regarding the leading cryptocurrency appears steady. Prominent analysts, including Arthur Hayes, continue to predict a price target for Bitcoin between $180,000 and $250,000 during this bull market. Additionally, it’s worth noting that February has historically been a strong month for cryptocurrencies, with Bitcoin typically averaging a performance increase of around 15%.

Buy Bitcoin!

DeepSeek is not a ‘black swan’

Despite the scaremongering and scapegoating regarding the recent drop in prices, many experts believe that DeepSeek should not be considered a ‘black swan.‘ By definition, a black swan refers to unpredictable and disruptive events—such as wars, pandemics, or the unexpected collapse of key sectors or players—that can radically alter markets for a prolonged period. For example, the black swans of the last cycle were the collapse of the Earth-Moon ecosystem and the failure of the centralized exchange FTX.

In the case of DeepSeek, however, we are dealing with an innovation that, while interesting, is likely already reflected in market prices. This is especially true at a time when artificial intelligence is at the forefront of media and financial discussions. When everyone is warning about a potential bubble, it suggests that the information is already widely known and, therefore, largely anticipated.

As several analysts note on social media, a narrative is often constructed to justify periods of panic or sudden sell-offs. Without concrete evidence of a widespread collapse, the current market correction may merely be a technical adjustment within an overall bullish trend. Focusing on fundamentals and long-term prospects is the most prudent strategy in a market known for its volatility, helping investors avoid being swayed by extreme assumptions or temporary ‘noise.’

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5 things you don’t know about Donald Trump

Donald Trump: 5 Things You Don't Know

Donald Trump is once again the President of the United States. His life encompasses politics, business, and entertainment, revealing aspects you may not know. Discover five interesting facts that make him unique.

On January 20, Donald Trump officially became the 47th president of the United States. He joined Stephen Grover Cleveland, who is the only other person in history to hold the presidency for two non-consecutive terms (in 1885 and 1893). This fact is just one of many interesting facets surrounding the new occupant of the White House.

This leads us to ask: How well do we really know Donald Trump? His well-known ‘rants’ directed at the media and journalists may seem extreme, but they are not as outrageous as they might appear. Trump’s business and political career has been shaped by his often amusing yet undeniably effective communication style. Here are five things about Donald Trump that you probably don’t know:

1. His empire on Coney Island

A portion of Donald Trump’s wealth comes from his father, Fred Trump, who established a modest real estate empire on Coney Island, a peninsula and neighbourhood in southern New York famous for its amusement parks and entertainment options. The apartments built by Donald Trump’s father in the post-war era played a vital role in the current U.S. president’s career, as he secured numerous loans using those apartments as collateral.

2. He invented a spokesman

You may not realize it, but part of Donald Trump’s success comes from his early understanding of the importance of reputation and media presence. To ensure he was constantly in the newspapers and on TV, Trump even created a fictitious spokesman named Barron—an homage to the name he later gave to his son with Melania Trump.

Specifically, he would call newspapers while pretending to be this spokesman, Barron, to share scoops, news, and statements about himself. In essence, he effectively controlled his media narrative and was able to shape public opinion with his own words.

3. He has his star on the Walk of Fame

One of the five things you may not know about Donald Trump is that he has a star on the Hollywood Walk of Fame. He was awarded this honour in 2007 for his contributions to the entertainment industry through the reality show The Apprentice, which established him as an iconic television figure. However, his star has frequently been the centre of controversy and vandalism, particularly during his presidency.

4. He was a regular in the WWE

Before becoming president, Donald Trump made notable appearances in professional wrestling. In 2007, he participated in a WWE storyline that culminated in a memorable scene at WrestleMania 23, where he shaved the head of owner Vince McMahon after winning a match. This event showcased Trump’s eccentric and self-deprecating side and further solidified his presence in the entertainment industry.

5. Marla Maples: ‘The best s**** I have ever done’

The subtitle introducing the last of the five trivia facts you might not know about Donald Trump is certainly reprehensible. It highlights the unique relationship between Donald Trump and the media, particularly newspapers.

The phrase in the headline first appeared in the New York Post on February 16, 1990, shortly after the newspaper revealed Donald Trump’s extramarital affair with Marla Maples, while he was still married to Ivana Trump. It remains unclear whether Trump actually said the phrase, but it seems he encouraged the newspaper to publish it, showcasing his skill in leveraging media coverage to his advantage.Following this, many Americans came to believe that Donald Trump was an incredibly passionate lover. While it is unlikely that this perception significantly benefited his business dealings, it is worth noting that, as the President of the United States has remarked, reputationis everything.