While the bitcoin price was holding steady on Tuesday (February 5), the crypto was still stuck below $3,500.
In afternoon trading, a single bitcoin was worth $3,453.77, a 0.2 percent boost since Monday’s level on the Kraken crypto exchange. Bitcoin has spent the past 48 hours trading inside $3,410 – $3,460, according to Market Watch.
“We have seen fund managers, both experienced and inexperienced, fall short of fundraising targets, while also having to drastically shift strategies in an attempt to attract capital. Majority of the funds that have successfully raised capital to date have relied on individuals and family offices for the bulk of the capital,” wrote Anthony Pompliano, founder of Morgan Creek Digital.
In addition to a flagging bitcoin price, investors are also wary of other crypto-related risks. “It is scary to many of them to allocate capital to an industry where daily headlines include words like ‘hack,’ ‘scam,’ or ‘money laundering,’” added Pompliano.
In other news, Iranian banks have launched a gold-backed cryptocurrency called “PayMon” one month after U.S. lawmakers introduced bills against the country’s efforts to create a sovereign crypto.
According to The Financial Tribune, blockchain startup Kuknos Company has partnered with four banks — Bank Mellat, Bank Melli Iran, Bank Pasargad, and Parsian Bank — on the digital currency. One billion PayMon will initially be issued.
Iran’s new crypto could be a way for the country to try to get around the economic sanctions implemented by U.S. President Donald Trump. Coindesk reported that last month a bill, the Blocking Iran Illicit Finance Act, was introduced by Rep. Mike Gallagher (R-Wisc.), and asked for an investigation into Iran’s crypto efforts. Another bill handed in to the Senate by Sen. Ted Cruz (R-Texas) called for sanctions against anyone who provides Iran with funding, services or “technological support, used in connection with the development of Iranian digital currency.”
And images of bank transactions were published on Tuesday (February 5) revealing payments in Japanese yen from BitPoint to Mt. Gox trustee Nobuaki Kobayashi that total 34.3 billion yen (about $312.5 million).
“Unless BitPoint is being really generous, we’d wager the reason they are depositing billions of JPY into the trustee’s bank account is because they were hired to sell the MtGox Estate’s BTC/BCH,” wrote Goxdox, a site dedicated to supporting the creditors of Mt. Gox, according to Coindesk.