Crypto

[Finterest] What is cryptocurrency, and what's with the hype?

Published

2 years ago

March 14, 2024

[Finterest] What is cryptocurrency, and what's with the hype?

MANILA, Philippines – Since the first Bitcoin was mined more than 15 years ago, cryptocurrencies have burst into the mainstream.

Large sums of money are currently being invested in Bitcoin by some of the largest investment firms in the world, such as BlackRock, demonstrating that even conventional financial organizations are getting into cryptocurrencies. And you can see that in the price as well. Bitcoin recently rallied to new highs, hitting a record $73,000 to 1 BTC. Five years ago, that rate was less than $4,000 to 1 BTC.

Filipinos are taking note too. In 2023, the Philippines ranked 6th out of 155 countries in terms of crypto adoption, according to American blockchain analysis firm Chainalysis.

So what’s fueling all this hype? We spoke with the team at Coins.ph – the Philippines’ largest cryptocurrency exchange – to find out more about this disruptive digital asset once dismissed as a fad.

Crypto, explained

Let’s start with what crypto is, and what it isn’t.

Crypto is the “money of the internet,” as Coins.ph country manager Jen Bilango puts it. But unlike the fiat currencies (think, a dollar or peso) that most of us are familiar with, crypto is not issued by a state or government. Despite what its name might suggest, cryptocurrencies are not usually used as money to settle payments.

“It’s a digitally native asset class that’s now diverging depending on the use case and the utility of a particular token,” Bilango told Rappler.

Different cryptocurrencies can fall under different general categories. The biggest, most popular ones like Bitcoin, Ethereum, and Solana are called “blue chip cryptocurrencies” – ones that have become generally accepted and trusted by people and financial institutions. Like the blue chip stocks of the stock market, the price of these tokens are more stable.

On the other end of the spectrum, you have highly speculative tokens whose prices are much more volatile. These “memecoins” lean into the humorous side of Internet culture, with names like Dogecoin, Shiba Ina, and Pepe.

“There’s no inherent or innate value to it, but people like the speculative nature of it. Predominantly, you can see people trading based on that merit because in any asset class, there will always be people who would like to put money in and get money out – not just on the utility side of it,” Bilango told Rappler.

There are also gamified tokens where cryptocurrencies are used in the context of a game. Although this may sound like a niche use case, this is actually what kickstarted the crypto craze in the Philippines, with the meteoric rise of play-to-earn game Axie Infinity.

In games like Axie, players can earn cryptocurrencies called smooth love potions, which can then be exchanged for other fiat currencies. But remember that the value of tokens like these are a function of their utility within the game’s ecosystem – in other words, the demand and value for the token goes up and down depending on how many players there are. If the game declines in popularity, that can burn players.

Which brings us to what crypto isn’t. Crypto should not be treated like a get-rich-quick scheme. There are no guaranteed gains in crypto, just as there aren’t any in other asset classes like stocks. People can be easily misled by what is promised and what returns are delivered.

Practical uses of crypto

But what can crypto actually be used for? Coins.ph global marketing director Katrina Gonzalez said it can “democratize access to financial instruments and services.”

This concept of decentralized finance, or DeFi, removes banks, clearance houses, settlement houses, and other financial intermediaries, allowing people to directly transact with each other using cryptocurrency. The vision is to use the security of crypto’s blockchain to allow peer-to-peer financial transactions – for instance, directly making a loan to your friend with interest and collateral terms that you set.

“The core concept of decentralized finance is that you don’t need to go to one institution to be able to access financial services. You can do things peer-to-peer, you can lend, you can contribute to a pool, and then you can earn from that,” Gonzalez told Rappler.

Crypto has long touted itself as a slayer of the middle man in finance – big financial institutions, like banks and remittance centers. Another example is how overseas Filipino workers have used crypto to remit money, circumventing banking hours and the expensive fees of “pera padala” centers.

“In crypto, in blockchain, that all happens simultaneously. So we remove all the fat in the financial ecosystem. Using stablecoins, you can transfer money via blockchain instantaneously, in real time, because you don’t have to rely on intermediaries to validate a particular transaction,” Bilango told Rappler.

Crypto remittances are often done through stablecoins, a type of cryptocurrency that are protected from the price volatility often associated with crypto. Stablecoins have a constant exchange rate with fiat currencies, such as being pegged 1:1 with the US dollar.

Getting started

For most people who want to dabble in crypto, the easiest entry point would be through a crypto exchange. Using the familiar interface of an app, a user could easily exchange their pesos into Bitcoin tokens.

Those who are just getting into crypto may want to first stick with blue chip cryptocurrencies, like Bitcoin or Etherium, since these have been around for a longer time.

“Bitcoin is like digital gold. It’s your hedge, it’s a store of value,” Bilango told Rappler. “It will sustain its value because there’s only a finite amount of Bitcoin. It’s only going to be 21 million Bitcoin in existence, ever.”

Once you’ve bought your tokens, the next decision to make is when to sell. You could either do a simple buy and simple, or use more sophisticated stop-limit orders that allow you to buy or sell crypto when the price hits a certain level. But if investing in crypto isn’t what you want to do, there are still other ways you can get into the space.

“Different people will have different use cases for it. It can be for remittances using stablecoins. It can be because you go play a game, and you want to play and earn from the games you play, or you want to be able to access NFTs,” Gonzales told Rappler.

“Maybe you’re into NFTs and into the Solana ecosystem, and that’s great. Maybe you’re super excited about what’s happening in Bitcoin from an asset class perspective…. Or maybe you see opportunities in DeFi, and you’re just a trader that just looks at the charts, like technical analysis, and you see an opportunity there. It’s really not one-size-fits-all. It’s a very vibrant ecosystem,” she added.

Is crypto safe?

But before you jump head first into crypto, let’s make sure that it’s safe. Over the years, crypto has had scandals and scams mar its reputation. In 2022, the world’s second largest cryptocurrency exchange – FTX – filed for bankruptcy after its chief executive officer was convicted in a multi-billion dollar fraud case. A year later, the CEO of the world’s biggest cryptocurrency exchange – Binance – pleaded guilty to breaking anti-money laundering laws.

Is that something we should still be concerned about?

Bilango acknowledged these issues, but said that it actually proved the resilience of cryptocurrency as an industry.

“The cryptocurrency industry as a whole has been battle-tested several times. One of the biggest exchanges blew up. One of the biggest hedge funds that put money into crypto also blew up. But we’re still here,” she told Rappler.

The Coins.ph team also noted that the concerns regarding scams and fraud mostly happens on unregulated exchanges.

In contrast, local cryptocurrency exchanges that are licensed and regulated by the Bangko Sentral ng Pilipinas (BSP) – such as Coins.ph and PDAX – must comply with regulations. The central bank reviews the exchanges’ technology for vulnerabilities, checks their compliance with anti-money laundering guidelines, and ensures they have enough capital.

“BSP ensures that when you put money in [Coins.ph], that your assets are backed one is to one, so we’re not doing any hanky-panky stuff on the side,” Bilango told Rappler.

Ultimately, Bilango said that avoiding the pitfalls that newbie crypto investors fall into is all about knowing your risk appetite and being smart about where you put your money.

“Do your own research. Only invest the money you’re willing to lose. And only transact in platforms that are regulated and are monitored by your license to do that type of transaction in your country,” she said. – Rappler.com

Finterest is Rappler’s series that demystifies the world of money and gives practical advice on how to manage your personal finance.

Crypto

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for $30.9B RWAs

Published

7 hours ago

May 14, 2026

Press Room

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for .9B RWAs

Integrated Infrastructure for Institutional Adoption

ADI Foundation and Settlemint announced a partnership on May 13 to launch a new digital securities infrastructure on the ADI Chain, aiming to streamline the tokenization of assets within the Abu Dhabi Global Market (ADGM) regulatory framework.

The collaboration integrates ADI Foundation’s compliance-ready Layer-2 blockchain with Settlemint’s digital asset lifecycle platform (DALP). The combined system is designed to handle the entire lifespan of a digital security, from initial token creation and on-chain recording to post-trade servicing and management.

The move addresses a primary hurdle for institutional investors: the difficulty of coordinating issuance, trading, settlement, and custody across fragmented jurisdictions. By providing an integrated architecture, the partners aim to offer a unified pathway for institutions to move traditional assets onto the blockchain.

“The future of investment and trading will not only be digitized, but also available 24 hours a day, 7 days a week,” said Andrey Lazorenko, CEO of ADI Foundation. “Our partnership brings together market infrastructure, institutional-grade blockchain, and a digital asset lifecycle platform to tokenize equities and trade them on secondary platforms.”

According to a media statement, the platform utilizes Settlemint’s implementation of the ERC-3643 standard—a protocol specifically designed for security tokens to ensure compliance with regulatory requirements. While the partnership is initially focusing on equity tokenization, the infrastructure is built to support a variety of other tokenized securities and financial instruments, pending regulatory approval.

The announcement comes as institutional interest in real-world assets ( RWAs) on-chain continues to accelerate. According to data from RWA.xyz, tokenized RWAs currently represent approximately $30.92 billion in on-chain value, with tokenized U.S. Treasuries accounting for roughly $15.20 billion of that total. Market analysts expect this trend to scale significantly. A 2026 analysis by BCG suggests the digital asset market could surge from $0.6 trillion in 2025 to $18.9 trillion by 2033.

Matthew Van Niekerk, co-founder and president of Settlemint, characterized the partnership as a “blueprint” for the broader financial industry.

“This partnership proves that regulated, multi-asset tokenization at national scale on public blockchains is not just feasible, but live,” Van Niekerk said. He added that the infrastructure is intended to be a model that central securities depositories (CSDs), exchanges, and clearing houses can adopt to integrate digital assets into existing operations.

Crypto

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

Published

19 hours ago

May 13, 2026

Press Room

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

BlackRock Chief Operating Officer Rob Goldstein revealed that demand for cryptocurrency has significantly exceeded the firm’s initial projections, marking a notable shift in institutional sentiment toward digital assets. Speaking during a Binance online stream, Goldstein addressed the market’s reception of BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT, and outlined the asset manager’s broader strategic outlook on blockchain-based finance.

Demand Driven by Value Proposition, Not Speculation

Goldstein emphasized that the global demand for IBIT was stronger than anticipated, describing the interest not as fleeting speculative enthusiasm but as a recognition of a new value proposition rooted in emerging technology. He noted that investors are increasingly viewing cryptocurrency as a distinct asset class with potential for long-term portfolio diversification, rather than a short-term trading vehicle. This perspective aligns with BlackRock’s broader push to integrate digital assets into traditional investment frameworks.

Tokenization and the Future of Capital Markets

Goldstein predicted that the tokenization of capital market instruments remains in its early stages, with future growth expected to be measured in multiples rather than incremental percentages. He argued that blockchain infrastructure could fundamentally reshape how assets are issued, traded, and settled, reducing friction and increasing transparency. This view is consistent with growing industry interest in real-world asset (RWA) tokenization, a trend that major financial institutions are beginning to explore.

AI Agents and Digital Rail Transactions

In a forward-looking comment, Goldstein suggested that artificial intelligence agents will eventually conduct transactions directly via digital rails, or blockchain infrastructure, rather than logging into traditional bank accounts. This vision points to a future where automated systems interact with decentralized finance protocols, potentially streamlining operations across supply chains, payments, and asset management. While still conceptual, the statement underscores BlackRock’s attention to the convergence of AI and blockchain technologies.

The Education Gap Remains a Key Obstacle

Goldstein identified the primary barrier to broader adoption as a lack of investor education regarding the technical aspects of virtual assets and efficient portfolio allocation. Many institutional and retail investors remain uncertain about how to evaluate cryptocurrencies, assess risks, and integrate them into existing investment strategies. BlackRock’s emphasis on education suggests that the firm sees informed participation as critical to sustainable market growth.

Conclusion

BlackRock’s acknowledgment that cryptocurrency demand has exceeded expectations carries significant weight, given the firm’s status as the world’s largest asset manager with over $10 trillion in assets under management. Goldstein’s comments reflect a maturing institutional perspective that views digital assets not as a passing trend but as a structural evolution in finance. For investors, the key takeaway is that major financial players are moving beyond skepticism and actively building infrastructure for a tokenized future, even as educational gaps persist.

FAQs

Q1: What did BlackRock’s COO say about cryptocurrency demand?
Rob Goldstein stated that demand for cryptocurrency, particularly through BlackRock’s IBIT Bitcoin ETF, has exceeded the firm’s expectations, driven by a recognition of its value as an emerging technology rather than mere speculation.

Q2: What is BlackRock’s view on tokenization?
Goldstein described tokenization of capital market tools as still in its infancy, with future growth expected to be exponential. He believes blockchain infrastructure will play a key role in transforming how assets are managed and traded.

Q3: What is the biggest obstacle to cryptocurrency adoption according to BlackRock?
The main challenge is a lack of investor education on the technical aspects of virtual assets and how to allocate them effectively within a portfolio, according to Goldstein.

Crypto

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets $500M Expansion

Published

1 day ago

May 13, 2026

Press Room

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets 0M Expansion

Key Takeaways

BTC and USDT to Serve as Dual Reserve System for Market Stability

Crypto exchange MEXC is deepening its focus on reserve strength and user protection, announcing plans to expand its Guardian Fund fivefold to $500 million and acquire 1,000 bitcoin as part of a broader risk management strategy.

The exchange said the initiative will be rolled out over the next two years and is designed to create a dual-reserve structure combining liquid stablecoin holdings with long-term BTC reserves. The framework is intended to bolster platform stability and improve resilience during periods of market stress.

The announcement comes as MEXC continues to attract new capital and users. According to data from Defillama, the exchange recorded $271.6 million in net inflows over the past month through May 11, reflecting increased trading activity and participation across global markets.

Under the revised structure, the Guardian Fund will continue to hold significant USDT reserves to ensure immediate liquidity and operational flexibility. The addition of bitcoin is intended to provide a longer-term store of value capable of preserving purchasing power across market cycles.

Transparency Remains Key for MEXC

MEXC said the strategy is part of a disciplined reserve management approach rather than a reaction to short-term volatility. The company framed the expansion as an effort to build infrastructure comparable to institutional-grade financial safeguards increasingly expected in the digital asset industry.

“Trust has to be capitalized, not just claimed. The expansion of the Guardian Fund and the addition of bitcoin reserves reflect our commitment to building protection infrastructure that helps users access infinite opportunities with greater confidence,” CEO Vugar Usi said in a statement.

The exchange also emphasized transparency. Wallet addresses tied to the Guardian Fund’s USDT and bitcoin holdings have been disclosed publicly, allowing users to verify reserve balances on-chain in real time. The move highlights a broader trend among large trading platforms seeking to differentiate themselves through stronger balance sheets and more visible proof-of-reserves mechanisms.

For MEXC, the Guardian Fund expansion forms part of a wider push to position itself as a global platform capable of supporting long-term growth. The company said the initiative aligns with its broader strategy of improving transparency, strengthening risk management, and protecting users during periods of heightened market uncertainty.