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Doge and the East/West Crypto Flippening
Read why the next crypto bull run may start in the east
The last few weeks have seen the US government escalate its war on crypto.
As the war intensifies, other countries are seizing the opportunity to take the lead on digital finance.
In particular, several countries in the East are moving full speed ahead with pro-crypto legislation. The phenomenon has been dubbed the “East/West Crypto Flippening.”
Let’s take a look at why the next crypto bull run could start in the East, and why Doge is primed to capitalize.
Crypto is facing continued hostility from the US government
Friday morning, Wall Street Journal reported that the SEC had deemed all Spot Bitcoin ETF applications “inadequate”, including those submitted by financial giants BlackRock, Fidelity, and ARK Invest.
The SEC’s complaint required the asset managers to enter into a “surveillance sharing agreement” with a regulated Bitcoin market to identify potential market manipulators.
It will be interesting to watch what happens next. The SEC and Coinbase are already engaged in a contentious legal battle.
The SEC has charged Coinbase with selling unregistered securities less than two years after approving the company to go public. Meanwhile, Coinbase is suing the SEC for ignoring its petitions to draft clear rules for the crypto industry.
Whether a Bitcoin ETF gets approved or not, it should be clear by now that the US government is doing everything in its power to discourage the crypto industry from flourishing in America.
Saturday marked the ten year anniversary since the first Bitcoin ETF application had been filed. Congressman Patrick McHenry said the SEC’s continued opposition to a Bitcoin ETF only makes sense if Chair Gary Gensler “wants to kill crypto in the U.S. all together.”
As the US squanders its lead as the world’s hub for digital currency, other countries are stepping up to fill the void.
After Hong Kong megabank HSBC approved three crypto-based ETFs last week, Tyler Winklevoss dubbed the phenomenon the East/West Crypto flippening.
The same day, former financial regulator Chris Giancarlo posted a headline from Japan expressing optimism for the crypto industry. Japan recently loosened its tax code for crypto-token issuers.
So what does the East/West flippening mean for Doge?
Shiba Inus are originally from Japan. Today they are popular as companion dogs, and the original Doge, Kabosu, still resides in Sakura, not far from Tokyo.
Given these factors, it’s not hard to imagine a scenario in which Dogecoin becomes the people’s crypto in the East.
Twitter is also extremely popular in Japan. In January, Elon revealed that the country logs more Twitter minutes than the US, with nearly half of all adults using the service.
The stage seems set for Dogecoin to go viral in Japan. It’s somewhat of a mystery it hasn’t happened already.
More broadly, we’ve yet to see the same crypto retail frenzy in the East as in the US. This may be a function of hostility to alternative currencies by powerful countries like China, Russia, and Saudi Arabia.
That could change quickly, especially as China and Russia continue to de-dollarize and construct more crypto-friendly regulation. One event to keep an eye on is the BRICS summit in South Africa this August, when member nations could unveil a new international reserve currency.
So what do you think: will the next bull run start in the east? And what would it mean for Dogecoin?
Dogey Treats: News Bites
Tesla released Q2 production and delivery data on Sunday. The company hit new all-time highs for both metrics, outperforming Wall Street expectations. The company’s growth continues to follow an exponential curve, and it is on track to deliver nearly two million vehicles this year.
London passed landmark legislation that recognizes cryptocurrency as regulated financial activity.
Elon once again tweeted he would eat a McDonalds Happy Meal on TV if the fast food chain accepts Dogecoin.
Apple removed Bitcoin tipping app Damus from the App Store.
The US Federal Reserve certified 57 companies to use its FedNow digital payments system, expected to roll out later this month.
Elon reiterated his sentiment that AI could change the nature of money: “Not clear what money means even in a benign, post-scarcity AGI scenario.”
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.06 per coin.