Category: Blog-new

NFTs, or non-fungible tokens, took the digital world by storm in recent years, leaving many wondering: were they just a passing phase, or are they here to stay like BTC and ETH? To understand where NFTs stand today, we at Coinsdrom want to take a closer look at their history, how they became so popular, and what their future might hold.

The Rise of NFTs

NFTs have been around longer than you might think. The concept of digital ownership has been explored since the early days of blockchain technology, but it wasn’t until 2017, with the launch of CryptoKitties, that NFTs started gaining mainstream attention. CryptoKitties, a game where users could buy, breed, and trade virtual cats, caused such a frenzy that it even slowed down the Ethereum network due to high demand.

However, it wasn’t until 2020 and 2021 that NFTs truly exploded in popularity. Suddenly, we saw digital art, music, virtual real estate, and collectibles being sold as NFTs for staggering amounts of money. Famous auction houses like Christie’s began selling digital artworks for millions of dollars, and celebrities from all corners of the entertainment world hopped on the NFT bandwagon.

But with this massive surge in popularity, some skeptics began to wonder if NFTs were just a temporary trend, destined to fade away once the hype wore off. Would NFTs have the staying power of BTC and ETH, or would they disappear once the buzz cooled down?

How Common Are NFTs Today?

Despite some initial skepticism, NFTs have not disappeared. In fact, they’ve become a regular part of many industries today. Digital artists continue to use NFTs to sell their work, musicians are exploring new ways to monetize their creations, and even big brands are getting involved by offering NFTs as part of their marketing strategies.

Beyond art and entertainment, NFTs are being used in gaming, virtual real estate, and even sports. For example, the NBA’s Top Shot platform allows fans to buy, sell, and trade officially licensed basketball highlights as NFTs. This growing use case shows that NFTs are not just a passing trend but a versatile tool that can revolutionize various industries.

Moreover, NFTs are built on the same blockchain technology that supports BTC and ETH, meaning they benefit from the security and transparency that comes with blockchain systems. While the market for NFTs has had its ups and downs, much like the cryptocurrency market, their existence on decentralized platforms ensures they’re not going away any time soon.

Are NFTs Here to Stay Like BTC and ETH?

So, are NFTs here to stay like BTC and ETH? While it’s hard to predict the future of any emerging technology, NFTs seem to have found a solid place in the digital economy. Unlike traditional cryptocurrencies, which are interchangeable (one BTC is always equal to another BTC), NFTs offer something unique: verifiable ownership of one-of-a-kind digital assets. Thanks for checking the Coinsdrom blog and we’ll see you soon with another post! 

At Coinsdrom, we know that security and compliance are key to making the crypto world safer for everyone. If you’re buying cryptocurrency, especially in larger amounts, you might have come across Form 501, or the Cryptocurrency Purchase Confirmation.  Let’s walk through why this document matters, how it fits into a safe crypto exchange process, and what you need to complete it. 

What Is Form 501 and Why Is It Important for a Safe Crypto Exchange?

Form 501 is a document that confirms cryptocurrency purchases for orders between 5001 EUR and 75000 EUR. It’s part of our commitment to maintaining a safe crypto exchange environment and meeting regulatory requirements. 

This confirmation form isn’t just paperwork; it plays a crucial role in helping both you and us stay compliant with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. By following these standards, we can protect our platform and community from risks associated with unauthorized financial activity.

Why is this important? Cryptocurrency markets are becoming more regulated worldwide, and one way to ensure safety is by having transparent, documented transactions—especially when dealing with large amounts. Form 501 is a simple yet effective measure that reassures both regulators and our users that we are committed to protecting the integrity of your crypto holdings.

What You Need for Smaller Transactions

Before diving deeper into Form 501, let’s clarify what’s needed for smaller transactions. For crypto orders between 200 EUR and 5000 EUR, you’ll only need to provide basic verification: proof of identity (such as a government-issued ID) and a selfie liveness verification. 

The selfie check is a quick, AI-powered step that confirms you are the account owner, ensuring another layer of security. This straightforward verification process allows for safe crypto exchanges in smaller amounts without the need for extensive documentation.

How Form 501 Fits into Larger Transactions for a Safe Crypto Exchange

For orders between 5001 EUR and 75000 EUR, we take additional steps to ensure a secure transaction. In these cases, Form 501 becomes a required document. On top of that, you’ll also need to submit proof of address, which can be a utility bill, bank statement, or any other official document that shows your name and residential address. 

These requirements align with regulatory standards and add extra layers of verification for larger transactions, reducing the risk of fraudulent activity.

Completing Form 501 is easy and quick, especially with our streamlined process. You’ll simply provide information about the transaction, including details of the crypto asset being purchased, the amount, and any relevant payment information. The process is designed to be as hassle-free as possible, while still meeting compliance standards for safety.

Your Security Comes First

We know that staying on top of these regulations can seem like a lot, especially if you’re new to the crypto space. That’s why we’re here to guide you every step of the way. At Coinsdrom, we believe that safe crypto exchanges should be accessible and straightforward, so we’re committed to making the process as smooth and secure as possible for you.

Here at Coinsdrom, we’ve seen our fair share of surprising stories in the world of digital currency, but this one caught even us off guard. The FBI recently took an undercover approach that’s shaken up the crypto community: they created a fake cryptocurrency to bait cybercriminals. 

Yes, you read that right—the FBI went as far as developing a completely fictitious digital coin to lure criminals involved in fraud, ransomware, and other illegal activities. As a team that values transparency and trust in this ever-evolving field, we’re here to break down exactly what happened, why the FBI did it, and whether it had any effect on cryptocurrency rates.

Why Would the FBI Create a Fake Cryptocurrency?

In recent years, cryptocurrency has offered incredible opportunities—but it’s also become a tool for cybercriminals who want to hide illegal transactions. The FBI saw this trend and took bold action by creating a fake cryptocurrency, aiming to expose and disrupt criminal activities happening within the crypto space. 

By “launching” this fake coin, they were able to see how it spread across criminal networks, tracking money flows and uncovering the people behind some major cybercrimes.

Think of it as a digital trap. Criminals interested in shady deals got hooked by this “currency,” unaware that every transaction was being monitored by law enforcement. The operation allowed the FBI to make arrests and seize funds, stopping some significant illegal schemes in their tracks. 

It’s a fascinating—and pretty audacious—way to stay one step ahead of the criminals trying to take advantage of digital currencies.

Did This Affect Cryptocurrency Rates?

So, did this undercover operation impact cryptocurrency rates? Interestingly, yes, but the effect was mostly indirect. When the news of the fake cryptocurrency spread, it stirred up a wave of concern and even skepticism among people in the crypto space. 

People started to wonder whether similar tactics might be used again, and if any digital currency could be manipulated or monitored without their knowledge. This unease led to a short-lived dip in cryptocurrency rates, especially as people began re-evaluating their trust in digital transactions and thinking about potential government interference.

While the FBI’s fake cryptocurrency itself didn’t directly influence market prices—it wasn’t exchanged publicly—its presence did ripple through the market, reminding crypto users of the importance of security and the growing attention from regulators. The effect was especially noticeable among smaller coins, while larger, established coins like Bitcoin and Ethereum remained more stable. 

Yet, the event was a clear reminder that cryptocurrency rates are not only shaped by demand and supply but also by major developments in regulation and law enforcement.

Staying Secure and Informed

For us, this story underscores the importance of sticking to trusted, secure platforms for exchanging crypto. The FBI’s tactic shows just how closely the crypto world is being watched, which means choosing exchanges that prioritize transparency is more important than ever.

 At Coinsdrom, we’re committed to providing a safe space for crypto transactions, so our users can exchange confidently, knowing we’re on top of security, trends, and regulations.

As the holiday season approaches, you might hear more about the “Santa Claus Rally.” While it’s traditionally linked to stock markets, there’s growing interest in whether this phenomenon also affects cryptocurrencies and crypto prices. 

Some of our readers send several questions on this topic, and we at Coinsdrom want to discuss the Santa Claus rally, to help our clients understand it better. 

What Is the Santa Claus Rally?

The Santa Claus Rally refers to a historical trend where stock prices rise during the final week of December and into the first few working days of January. Named after the holiday season, this rally has been observed for decades, usually leading to short-term boosts in the stock market.

But what causes this rally? Here are a few common reasons:

• Holiday Cheer: The holiday season is full of positivity, which can affect people’s financial decisions. Consumers are spending more, and this optimism can spill over into the markets.

• Year-End Bonuses: Many people receive year-end bonuses, and some of this extra cash flows into the markets, boosting demand and prices.

• Tax Planning: Some investors sell off losing assets to claim tax benefits before the year ends. Once this process is over, they may reinvest, helping drive prices up.

• Lower Volume: With fewer people active in the market during the holidays, any increase in buying activity can have a more significant impact on prices.

Alongside these factors, you also need to be aware that seasonality around Christmas depends on how the market performed during the year. A positive performance increases the likelihood of a rally towards the end of the year. 

Should We Expect the Santa Clauss Rally to Impact Crypto Prices Every Year?

Although the Santa Claus Rally has been observed multiple times, there is no guarantee it will occur every year, and it’s not a hard rule in the cryptocurrency market. Crypto is still a relatively young and volatile market, so while some of the same factors apply, the effects may not be as consistent.

However, historical patterns in crypto do show that crypto prices sometimes rise toward the end of the year, driven by holiday spending and renewed interest. Still, it’s important to remember that the crypto market can be unpredictable, and other factors, such as regulations or economic conditions, may influence prices during this period.

Final Thoughts

While the Santa Claus Rally is a well-known event in traditional finance, it may also have some relevance to cryptocurrencies and crypto prices. Increased activity, optimism, and lower liquidity during the holiday season can lead to price surges, but it’s not a guaranteed outcome.

At Coinsdrom, we believe it’s helpful to understand these trends so you can stay informed about the forces that impact the crypto market. Whether or not we see a Santa Claus Rally this year, the holiday season often brings some interesting movements in the world of crypto!