“Hedge fund manager Paul Tudor Jones told CNBC on Monday he would “go all in on the inflation trades” if the U.S. Federal Reserve remains indifferent to rising consumer prices.
Jones said he likes bitcoin and sees it as a great way to protect wealth over the long run. In May, Jones bet 1% to 2% of his assets on bitcoin. His firm, the $44.6 billion Tudor Investment Corporation, most recently secured custodial ties with institutional powerhouses Coinbase and Bakkt. Jones told CNBC Monday he wants an allocation to bitcoin of 5%.
The U.S. central bank’s monetary policy committee meets this week in a two-day, closed-door session to evaluate the latest economic figures, with a statement expected Wednesday followed by a press conference with Powell. Jones said he will be paying close attention.
If they say, ‘We’re on [the] path, things are good,’ then I would just go all in on the inflation trades.”
“Bitcoin (BTC) held support at around $34,000 over the weekend and is approaching resistance at $40,000-$42,000. The world’s largest cryptocurrency has been consolidating for nearly a month as buyers established a solid base at $30,000.
A breakout from the range would yield further upside toward $50,000. Sellers, however, remain in control given the strong overhead resistance.
The short-term trend is improving as prices returned above the 100-period moving average on the four-hour chart. A decisive breakout above $42,000 could shift the downtrend from May.”
“Tesla will resume accepting bitcoin as payment once the cryptocurrency’s power-hungry miners go halfway green, CEO Elon Musk tweeted Sunday. The news appears to have driven up the price of bitcoin and other cryptocurrencies.
It is unclear how Musk will fact-check miners‘ clean energy usage as there is widespread debate over where the industry currently stands. Even so, the comments provide a first benchmark for reinstating bitcoin payments at Tesla.”
“Mark Cuban, billionaire investor and owner of the National Basketball Association’s Dallas Mavericks, said yesterday that the U.S. government and regulators need to start getting behind crypto innovations, such as the decentralized finance (DeFi) industry. Otherwise, he argued, the U.S. will ‘lose the next great growthengine that this country needs.’
His thoughts came in a blog post entitled “The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects.”
Cuban predicted that in 10 to 20 years we will look back at this period of time and observe that world-changing companies were built. ‘Among those companies, [it’s] already a certainty that De-Fi and other crypto organizations will be at or near the top of the list.’
That is not to say that every crypto blockchain or DeFi project will work. They won’t. Crypto is brutally competitive. But in crypto vs traditional, centralized businesses, all other things being equal, I’m taking crypto every time.”
“Many central banks are fine with tourists using their hypothetical digital currencies, the Bank of International Settlements (BIS) said Thursday. 28% told the BIS they would be interested in forming multi-CBDC (mCBDC) arrangements to build a single payment system.
Central banks are considering a variety of mCBDC arrangements. Some central banks are even contemplating multiple CBDCs run on a single system.”
“Taproot, the most significant improvement to Bitcoin’s protocol in years, now has enough mining support to lock in activation. Taproot is Bitcoin’s most anticipated upgrade since Segregated Witness (SegWit) in 2017. Whereas the main focus of SegWit was scaling the Bitcoin protocol, Taproot will outfit Bitcoin with a new signature scheme known as Schnorr signatures.
Now that the Taproot soft fork upgrades are “locked in,” the next phase of activation is basically a 5-month waiting period. During this time, miners and nodes will have ample opportunity to update their software. Finally, in November, when Bitcoin reaches a specified “block height” (Bitcoin block 709,632), Taproot will activate.
In the long run, Taproot’s tooling and coding improvements will translate to a better user experience for bitcoiners in terms of overall performance, as well as privacy improvements to multisignature (multisig) technology, privacy software and even scaling tech like the Lightning Network.”
“Sentiment may have turned a little too bearish, a feature that is often observed at market bottoms.
The cryptocurrency dropped to nearly $30,000 on Tuesday, pushing the ratio to its 20-week simple moving average (SMA) down to 0.61, the lowest since the March 2020 crash. Historically, bitcoin has carved out major price bottoms with the ratio near 0.60.
Calls for $20,000 and technical patterns such as ‘death crosses’ are often triggers for the more fundamentally focused and longer-term bulls to be responsive buyers.
A death cross, or the bearish crossover of 50-day and 200-day SMAs, is widely taken to represent a long-term bearish shift in momentum. Bitcoin’s 50-day SMA is trending south and looks set to cross below the 200-day line in the next few days.
Some analysts are worried that could bring in more profound losses. Those indicators, however, often trap traders on the wrong side of the markets as they are based on past data and tend to lag prices. In other words, by the time the crossover happens, the asset is oversold and primed for a bounce. The last two instances of death crosses, March 2020 and October 2019, turned out to be bear traps.
Blockchain data shows large investors continue to accumulate coins, shrugging off the recent China crackdown on crypto mining or the death cross fears.”
“The guidance is not representative of new law, but an affirmation that state-chartered banks are allowed to provide crypto custody services as long as there are adequate protocols in place and the banks are complying with existing legal frameworks.
The Texas Department of Banking’s notice comes amid a booming presence from the crypto industry in Texas. Miners and crypto startups have been moving to Texas in record numbers to take advantage of the state’s relatively cheap energy and crypto-friendly regulatory environment.
Both at the state and federal regulatory agencies, we’re seeing a rise in the virtual currency industry as it continues to evolve. We expect our banks to start seeing demand from their customers and we want them to be prepared for that.”
“State legislators in New York have failed to pass an environmental protection bill that would have clamped down on new and expanding bitcoin mining operations. Opposition from union groups, specifically the International Brotherhood of Electrical Workers, led to the bill’s demise.
If passed, the bill would have required scrutiny of the environmental impact of current mining operations in the state. The bill was proposed as an inactive coal plant in upstate New York has recently been recommissioned as a plant fueling Greenidge’s mining apparatuses with 19 megawatts of natural gas.”
“The Twitter founder had tweeted his appreciation for Lightning Network-powered messaging app Sphinx Chat, prompting a follower to ask for the network to be built into BlueSky or Twitter. “Only a matter of time,” Dorsey replied.
Sphinx Chat is a wallet and encrypted messaging service that works over Lightning. It is unclear what an integration with Twitter would bring. One possibility is the use of micropayments.”
“Thailand’s Securities and Exchange Commission (SEC) announced Friday it’s banned several of the hottest types of tokens in cryptocurrency including meme tokens, fan tokens and non-fungible tokens (NFTs) in an apparent attempt to rein in trading in crypto instruments in which the prices are largely determined by social whim.”
“The Fed’s balance sheet has nearly doubled since March 2020, when the pandemic erupted in the U.S, based on weekly statistics released Thursday by the U.S. central bank.
The Fed’s monetary-policy committee has pledged to keep buying U.S. Treasury bonds and mortgage bonds at a pace of about $120 billion a month ‘until substantial further progress has been made toward the committee’s maximum employment and price stability goals.’
Prior to the financial crisis of 2008, the Federal Reserve balance sheet stood at less than $1 trillion.”
“State Street, a U.S. custody bank that oversees about$40 trillion in assets, has launched a cryptocurrency division.
State Street said it is expanding its digital reach to include crypto, central bank digital currency, blockchain and tokenization, and will upgrade its existing GlobalLink platform into a multi-asset digital trading system.
Digital assets are quickly becoming integrated into the existing framework of financial services, and it is critical we have the tools in place to provide our clients with solutions for both their traditional investment needs as well as their increased digital needs.”
“Atlanta-based Invesco is an investment management firm with $1.5 trillion in assets.
Roughly 85% of the Invesco Galaxy Blockchain Economy ETF and the Invesco Galaxy Crypto Economy ETF will be in crypto-linked equities, according to a filing with the SEC. The rest of the portfolio will be in other trusts and funds that hold crypto.
The Invesco ETFs are just the latest ETFs set up by financial world to gain exposure to the world of cryptocurrencies while the companies wait for the SEC to approve an actual bitcoin ETF.”
“The world’s most influential banking regulator thinks banks with bitcoin exposure should set aside capital to cover losses in full. The committee proposed a risk weighting of 1,250% for bitcoin, ethereum and other cryptocurrencies. That would require banks to hold capital equivalent to the face value of the exposure.
They would be subject to a new conservative prudential treatment.”
“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis so we are following developments closely and will continue our consultation with authorities.
According to Rice, an IMF team on Thursday will conduct virtual discussions with President Nayib Bukele regarding a potential credit program “including policies to strengthen economic governance,” adding that conversations will include the Article IV review of El Salvador.”
“The Indian government may soon strike a more conciliatory tone on bitcoin, moving away from its initial plan to impose an outright ban on private cryptocurrencies. The government may classify bitcoin as an asset class, industry sources told The New Indian Express, adding that the Securities and Exchange Board of India (SEBI) will regulate the cryptocurrency sector.
The cryptocurrency regulation bill could be tabled during the monsoon session of the parliament set to begin next month, a source told the Indian publication. Major crypto exchanges like U.S.-based Kraken, Hong Kong-based Bitfinex and rival KuCoin are already scouting for India’s entry in hopes that the market will explode once regulatory uncertainty subsides.”
“A Bank of England (BoE) executive director played down concerns that holding stablecoins and CBDCs would undermine the traditional banking model if consumers chose to use them rather than depositing their money into a commercial bank.
A shift to wider use of stablecoins and CBDCs does not inherently constitute a financial stability risk as long as it happens in an orderly manner.
Stablecoins don’t pose any new issues, Segal-Knowles said. They are similar in nature to traditional forms of private money that is deposited by consumers and businesses in commercial banks.”
“According to data compiled by Arcane Research, the total market capitalization of gold-backed tokens has grown 30-fold since the start of 2020.
In particular, pax gold (PAXG), a token launched in September 2019 by the New York-based stablecoin issuer Paxos under the Ethereum blockchain’s ERC-20 standard, has seen steep growth in recent months. Its market capitalization has surpassed that of tether gold (XAUT).
The recent success of pax gold is due to rising demand from investors and traders looking to hedge risks from both rising inflation and the highly volatile crypto market.”
“The stablecoin DEX looks to challenge Uniswap with a new model for adding volatile tokens. In a white paper released Wednesday, Curve describes a model in which greater liquidity could be achieved on a pool of volatile assets by using a dynamic peg.
The Uniswap v3 approach requires very active management on the part of LPs. Curve v2 proposes automating roughly the same system. Basically, it identifies an internal price peg based on trading on Curve and concentrates the liquidity around that peg.
Curve’s new version should be appealing to liquidity providers because it will offer much of the attractive liquidity depth that Uniswap has enabled without the active management it requires. On top of that, Curve offers the benefit of liquidity mining; right now, Uniswap does not.”
“Recommendation systems often rely heavily on tracking your behavior online. Brave Today allows users to anonymously subscribe to RSS feeds of their favorite news outlets and stay up to date with all the latest news in a single place.
Federated learning is a machine-learning technique that trains prediction models (algorithms) while keeping data locally on devices, rather than feeding that data to a central server.
This continues Brave’s incremental progress toward building out a suite of services meant to rival, and exceed, dominant browsers like Chrome and Safari. In March, Brave announced the acquisition of Tailcat, an open search engine, to be the basis of its forthcoming product Brave Search. Brave is pitching Brave Search as a non-tracking alternative to Google Search.”
“The Series C raise places Ledger with an implied valuation of more than $1.5 billion, marking the company’s rapid and accelerating growth. Funding will go towards furthering innovation of its hardware products, providing new services for decentralized finance solutions, and expanding its enterprise capabilities.
We believe Ledger is the premier security company and premier brand name in the cryptocurrency/blockchain space.”
“A supermajority of the El Salvadoran legislature voted to adopt bitcoin as legal tender early Wednesday morning.
The bill that was just passed will mandate all businesses to accept bitcoin for goods or services, but the government will act as a backstop for entities that aren’t willing to take on the risk of a volatile cryptocurrency. A trust that the government will set up at the Development Bank of El Salvador to instantly convert bitcoin to U.S. dollars will assume merchants’ risk.
Bukele provided further details about his vision, pitched as an effort to boost financial inclusion in a country where only 30% of citizens have access to financial services. Users won’t necessarily have to use a government wallet, Bukele said.
Bukele also said in the same Twitter Space conversation that the country is designing a new law that would grant permanent residency to any individual who invests three BTC into El Salvador’s economy.”
“DeFi markets for derivative instruments – meaning futures contracts, for example – may not be legal under the Commodity Exchange Act, a U.S. law that governs such products and requires them to trade only on regulated designated contract markets (DCMs), Commodity Futures Trading Commission (CFTC) Commissioner Dan Berkovitz said in a speech to the Asset Management Derivatives Forum.
DeFi markets, platforms or websites are not registered as DCMs or SEFs [swap execution facilities]. The CEA does not contain any exception from registration for digital currencies, blockchains or smart contracts.
Berkovitz also expressed concerns that DeFi markets trading derivatives may not share the same protections that their centralized counterparts offer.
In a pure ‘peer-to-peer’ DeFi system, none of these benefits or protections exist.”
“Qinghai is the latest coal-based crypto mining hub that is set to completely eliminate the industry. The news came on the heels of another crackdown notice against some crypto miners in Xinjiang, and follows Inner Mongolia which had previously imposed restrictions on miners.
The local government cited the central government’s concerns about high energy-consuming industries and environmental pollution. The use of coal in particular has drawn attention from the government, which is seeking to reduce its carbon footprint.”
“The bill, whch was sponsored by Senate Majority Leader Chuck Schumer (D-N.Y.), passed in a 68-32 vote late Tuesday. It includes distributed ledger technologies and cybersecurity as one of 10 “key technology focus areas.” A second provision will require the federal government to examine the potential national security implications of China’s digital renminbi.
This is a national security issue, and if the U.S. does not respond we will be left behind. This amendment will put our research and development efforts regarding blockchain and financial innovation into high gear, something that is desperately needed.
The bill must pass the House and be signed into law by President Joe Biden before it can take effect.”
“In an attempt to connect real-world shopping with the virtual world of games, Boson Protocol bought a plot of land for $704,000 on the Web3 game Decentraland. Decentraland, where the mall’s being built, is an – Ethereum-based game that parcels out land as NFTs.
Boson, a blockchain protocol, provides decentralized infrastructure for trading tokenized real-world items. The company will build a mall for global brands to open up shop on the piece of digital real estate.
Boson would enable users to turn a digital sneaker purchased—or earned in a game—into a real-world sneaker through an NFT-certified barcode on their phones that they can take to real, brick-and-mortar shops down the street.”
“Bitcoin (BTC) suffered a near-10% drop over the past 24-hours, fueled by talks of tighter U.S. monetary policy and China’s ongoing pressure on crypto miners.
Resistance is strong around the $40,000 price level, which could keep sellers active towards lower support at $30,000. The next level of support is at $27,000 which could stabilize the current sell-off. Bitcoin registered a series of lower price highs since April and is now oversold based on the daily relative strength index (RSI).”
“The toolkit seeks to provide useful guidance for regulators and government policy-makers concerning DeFi regulations.
As already stated by MakerDAO co-founder Rune Christensen, regulatory clarity is necessary for DeFi to interact with real-world assets. These regulations will likely cover investor protection and Anti-Money Laundering concerns. For Warren, consumer protection, taxation and AML efforts should not erode decentralization, stating:
I am passionate in my view that decentralization is critically important to the DeFi ecosystem — the most exciting opportunities in the DeFi ecosystem are tied to this aspect, especially when it comes to governance.”
“El Salvador’s proposed embrace of bitcoin would not end dollarization in the Central American economy, top government officials said, addressing concerns raised by citizens confused about the plan. Providing the most in-depth look yet at President Nayib Bukele’s plan to grant bitcoin legal tender status, Kattan said the still-under-wraps bill would create an opt-in bitcoin economy.
The [U.S.] dollar will continue to be the legal tender in El Salvador. Operations can be done with bitcoin – obviously related to its value in dollars. What the law will say, at the end of the day, is that you can pay – if the person charging accepts bitcoin and if the person paying wants to pay – using bitcoin.
Goods will remain dollar-denominated. Even so, Kattán said the bill would recognize bitcoin as legal tender in El Salvador.”
“More than $6 billion worth of Bitcoin is now tokenized on Ethereum as WBTC.
BTConEthereum estimates there are 240,620 Bitcoins that have been tokenized across various protocols for use on Ethereum, representing a combined capitalization of $7.91 billion. Wrapped Bitcoin exerts a clear dominance over the sector, representing 78% of all Bitcoin tokenized on Ethereum.
Other leading Bitcoin tokenization protocols include second-ranked Huobi BTC with 37,906 BTC or 15.7% of the Bitcoin’s supply, and the third-ranked RenBTC with 10,226 tokenized BTC.
In late April, Ethereum-based BTC yield protocol BadgerDAO teamed up with RenVM to launch a bridge between renBTC and its own yield farms. DeFi Llama estimates that more than $540 million worth of assets is locked on the BadgerDAO platform.”
“Wood outlined a schedule and some recommendations for the rollout over the coming weeks of the Parachain Slot Auctions, the bidding process by which projects can secure a lease to build on Kusama. Kusama, Polkadot’s pre-production environment, is also known as a “canary network.” Parachain auctions on Polkadot are still TBD.
The first Kusama Parachain Slot schedule is slated to take place at 8 a.m. ET on June 15. Winners will be determined on June 22.
Winning a parachain slot on Kusama or Polkadot once it’s fully deployed, is an expensive business. Each auction will last a week, and in the case of Polkadot, this is said to require a minimum of 1 million of the network’s native DOT tokens (approximately $20 million at today’s prices).
Projects can crowdfund the tokens required to win a slot using Kusama’s built-in “crowdloan” mechanism, which allows people to contribute by agreeing to lock up their own KSM, Kusama’s native token, until the end of a lease period, for which these contributors can earn rewards.”
“Tim Wu, one of the White House’s top technology advisers and anti-trust experts, currently holds between $1 million and $5 million in bitcoin. The adviser also has between $100,001 and $250,000 in FIL, the native coin of the digital storage and data retrieval platform Filecoin.
The adviser has long been a critic of the power Big Tech companies possess, having written numerous academic papers about information, communication platforms and the internet as well as a few books. He coined the term “net neutrality” in 2002.”
“Origin is an Ethereum-based e-commerce platform focused on “bringing NFTs and DeFi to the masses.”
We look forward to working closely with Paris to bring NFTs to mainstream consumer audiences through education, marketing, and creating new use cases with this disruptive technology (e.g. redemption for physical fashion and accessory items, access to unique experiences or premium content).
Hilton, who strives to be on the cutting edge, actually is old hat in the NFT industry. Last August, she raised 40 ETH (worth $17,000 at the time and close to $100,000 today) for charity after selling NFT artwork she created on Cryptograph.”
“Overshadowed lately by the crypto bull market, JPM Coin runs in conjunction with the 400-bank Liink payment network and powers things like securities settlement (in repo trades) across JPMorgan’s client base. But according to Farooq, it’s only the beginning.
We are getting into the programmability of JPM Coin. Actually programming what money can do for you, whether it’s conditional payments, whether it’s things like tax assessments. That’s all very rule based and, in the past, you would have to send specific instructions to a bank like JPMorgan. We increasingly want you to be able to program these things, and actually tell the money what to do.
That desire helps explain why JPMorgan chose to build its various blockchain projects on Ethereum. Ethereum was designed specifically to enable complex “if this, then that” programs.
We are keeping a very close eye on the DeFi evolution. Although it’s very much in the public crypto sphere currently, there is clearly a future for DeFi as other assets start to get put on blockchains.
As well as the allure of DeFi, there are even some banks said to be eyeing the possibilities offered by proof-of-stake (PoS) participation on networks like Ethereum.
When it comes to ETH 2.0 staking, that’s going to be a very interesting development. I think that might open more doors for people to interact with the Ethereum ecosystem.”
“CoinShares ETNs tracking bitcoin, ethereum and litecoin will allow investors to gain exposure to those coins without the need to set up a crypto wallet.
In June of last year, Deutsche Börse claimed a first when it introduced trading in centrally cleared crypto products. The Frankfurt-based exchange now offers a choice of some 15 ETNs from six providers on bitcoin, bitcoin cash, ethereum and litecoin.”
“Deutsche Bank, Germany’s largest lender, says the U.S. might be headed for one of its worst inflationary periods in history, arguing that elevated government spending and loose monetary policy could combine to create conditions similar to prior episodes in the 1940s and 1970s.
Adding to the pressures are some $2 trillion of “excess savings” that consumers have amassed over the past year, when many businesses were closed and travel mostly shut down.
Consumers will surely spend at least some of their savings as economies reopen. This raises the very real specter of consumer-driven inflation. A lack of preparation for the return of inflation is concerning.
The Deutsche Bank authors warned that when inflation does eventually appear, the Fed might have to react forcefully, which could ‘create a significant recession and set off a chain of financial distress around the world.’“
“While it was billed as the “one of the biggest announcements in Bitcoin’s history,” the market seems to be puzzling over the landmark reveal that El Salvador’s sitting President will be submitting legislation to recognize Bitcoin as legal tender. While the announcement led to widespread elation at the conference, the market response has been tepid.
Part of the muted response may be due in part to the exact nature of the announcement being unclear. A self-described hacker on Twitter noted that Strike is not trustless and is censorable, meaning that this implementation of BTC as legal tender won’t be the anarcho-capitalist utopia some hodlers long for.”
“MicroStrategy said it intends to offer $400 million senior secured notes to raise funds to purchase more bitcoin even as the bitcoin it already has will likely result in a massive impairment.
While MicroStrategy has raised money to buy bitcoin from the proceeds of notes offerings before, it was always done by notes that were convertible into the company’s shares. This time the notes are to be guaranteed on a senior secured basis by MicroStrategy Services Corp, a subsidiary of MicroStrategy.
It’s typical for software companies that have steady recurring revenues to be highly leveraged, in the range of 6 to 10 fold.
For MicroStrategy to flow $400 million in senior notes when it is tracking to post something in the neighborhood of $90 to $100 million of adjusted EBIDTA does not seem particularly onerous in our view.”
“The MIIT suggested that blockchain could enhance the real economy by improving supply chain management, product traceability, data sharing and more. However, blockchain would also be used to improve the collection of data for the purposes of judicial deposit, real estate registration and law enforcement.
China should promote the deep integration of blockchain and economy and society and accelerate the promotion of blockchain technology for application and industrial development.”
“The committee said it met on June 4 and discussed the development of methods for treating banks that provide exposure to crypto assets. It plans to canvas the views of external stakeholders on banks’ exposures to crypto assets, and a consultation paper will be published this week.
Growing interest in crypto assets and the pace of innovation in the industry ‘could increase global financial stability concerns and risks to the banking system,’ the committee said.”
“FBI Deputy Director Paul Abbate said federal officials had seized a bitcoin wallet that held the proceeds from the Colonial attack. It appears that the perpetrators still have about $2 million in crypto. The funds were seized as part of a ransomware task force created by the DOJ.
Victim funds were seized from that wallet, preventing Darkside actors from using them. The private key for the Subject Address is in the possession of the FBI in the Northern District of California.”
“MyPower tokenizes solar-panel assets, allowing customers to purchase shares in Austria’s solar-energy industry. Customers bought shares in a small solar-panel plant, for which they received tokens based on the energy produced by the plant. The users were able to use the tokens to pay their electricity bills.
The project has turned its users from consumers into prosumers.”
“Bitcoin, it just seems like a scam […] I don’t like it because it is another currency competing against the dollar. Essentially, it is a currency competing against the dollar. I want the dollar to be the currency of the world, that’s what I’ve always said.
The Trump administration specifically sought to enact anti-crypto policies, with Trump allegedly telling former Treasury Secretary Steve Mnuchin to ‘go after Bitcoin.'”
“El Salvador is developing a bill to recognize bitcoin as legal tender, according to President Nayib Bukele. The bill’s approval would make El Salvador the first nation to adopt a bitcoin standard.
As of now, El Salvador is set to be the first bitcoin country. And the first country to make bitcoin legal tender and treat it as a world currency and have bitcoin on their reserves.
A brief excerpt of what appeared to be Bukele’s bill harped on a similar theme:
Central banks are increasingly taking actions that may cause harm to the economic stability of El Salvador. In order to mitigate the negative impact from central banks, it becomes necessary to authorize the circulation of a digital currency with a supply that cannot be controlled by any central bank and is only altered in accord with objective and calclable criteria.
El Salvador’s plan sits in stark contrast to a competing vision of money gaining traction among central banks. About 80% are studying central bank digital currencies (CBDCs) in a global push to make fiat more compatible with the digital economy. None, however, have seriously considered implementing that through a cryptocurrency beyond their control.
The 39-year-old Bukele claimed in recorded remarks that his plan will have short-term benefits for thousands of unbanked individuals. He also claimed it will generate jobs.
In the medium and long term, we hope that this decision can help us push humanity, at least a tiny bit into the right direction.”
“Coordination of funding of public goods is something that traditionally governments have solved (with varying degrees of success). By taxing their citizens, and mandating that everyone must pay taxes through use of force, governments have effectively solved the free-rider problem. Either pay taxes or go to jail!
In some nations, this has resulted in strong funding for some public goods. In other nations, the funding is used sub-optimally, or in some cases, is used in corrupt ways and without accountability.
The world is changing and with new technologies and new culture, non-coercive funding of public goods is increasingly possible.
If only there was a technology that allowed groups of humans to choose to easily coordinate with one another! A transparent substrate for trust games where everyone knows where they stand and whose rules can’t be changed on you. My belief is that this is the ultimate legacy of Ethereum.
We can now program our values into our economic system—the final form of a stateful internet could allow us to coordinate the actions of multiple economic actors and therefore could solve coordination failures.
Another way to conceive of the adoption of crypto is as like a multistage rocket:
Phase 1 of the rocket is financial incentives (more rich). Phase 2 of the rocket is more sovereignty (more free).
Crypto wasn’t created to make you rich — it was created to make you free.“
“When we look back at what event separated the early era of blockchain experimentation into the era of rapid adoption, it will be the arrival of decentralized finance (DeFi).
In the same way that cloud storage could suddenly give a startup infinite storage capacity by plugging into an existing application, DeFi did the same for financial operations. Want to buy and sell in dollars? Stablecoins can be used anywhere. Want to set up a lending operation? You don’t need to build your own stablecoin, because you can use any of the digital currencies already out there – ERC-20 tokens, the standard for digital assets on the Ethereum blockchain, are all (theoretically) interoperable.
DeFi may prove to be particularly powerful because once people start using it, they will find it hard to stop as it gets woven into more and more of their daily business and personal activities. This is driven from the nature of DeFi innovations, which build atop each other, and how those innovations, in turn, will yield further innovations.
The world of DeFi will get bigger and stickier as off-chain assets are integrated. The European Investment Bank’s decision to issue digital notes on the Ethereum blockchain is just the start. However, stickiness isn’t just more assets or different types of assets and services, it is integration into automated business processes. Individuals and companies will start to plug their cash flows and assets into DeFi ecosystems as a routine part of their personal and business financial processes.“
“Etherisc has integrated an Ethereum-based smart contract platform into ACRE Africa’s existing weather index insurance product, “Bima Pima”. Earlier this year, ACRE recruited and trained approximately 300 Village Based Agents (VBAs) on the mechanics and benefits of the updated insurance product. The VBAs sold these new policies throughout 17+ counties across Kenya to over 10,000+ smallholder farmers during the 2021 long rains season.
In an extreme weather event, the policies are automatically triggered — facilitating fair, transparent, and timely payouts.
Through this pilot, for the first time, we are integrating blockchain smart contracts into an existing weather index product at scale to measure the impact on operational costs, streamlining and simplifying payouts, and automating claim inquiries.
Less than 20% of smallholder farmers worldwide have crop insurance, and the numbers in Sub-Saharan Africa are even lower — a meager 3%.
One of the biggest challenges that has hindered the uptake of microinsurance, including agricultural insurance, is trust.”
“Extending the MakerDAO protocol to new chains necessitates a thorough analysis of security assumptions and risks that these new chains or Rollups introduce.
MakerDAO is uniquely positioned to take advantage of the growing ecosystem by:
Providing cheap access to DAI on Rollups and Sidechains for users currently priced out of Ethereum due to high gas prices. By doing so, the demand for DAI amongst retail users will increase.
Allowing minting of DAI directly on L2s and other chains using whatever collateral is available on those chains. That will promote growth in the overall supply of DAI.
Minting DAI to provide virtually unlimited liquidity for fast withdrawal bridges, chain-to-chain communication channels (see Connext, Hop) and other protocols potentially suffering from a liquidity crunch
Using collateral that is native to other chains including base tokens such as FTM, SOL, AVAX, etc… without needing to bridge and wrap them on Ethereum
The complexity of the multichain world brings new challenges and risks, including:
Many versions of DAI create confusion in the community, especially amongst retail users
Minting rights for DAI outside of L1 Ethereum creates a serious attack vector if the minter is compromised (unlimited amount of L2 DAI could be minted and withdrawn to L1)
DAI can get stolen/stuck in the L1 part of the bridge (either through user error sending DAI to the bridge or a bug in the bridge)
Collateral on L1 that is currently used to mint DAI may be increasingly moved to various L2s or other chains in pursuit of better yield opportunities flowing out of current Vaults, thereby reducing the overall amount of collateral that is available to mint DAI on L1 Ethereum
Complexity regarding collateral liquidations and global settlement will greatly increase
Maker protocol needs collateral to mint DAI. If more and more collateral is moved to other chains, Ethereum may eventually become a global settlement layer for these chains / rollups while most of the actual DeFi transactions will happen on L2s. The Maker protocol will need to chase the value flowing out of Ethereum while properly managing risks and maintaining the base ledger of all DAI minted in the entire multichain universe. Ultimately, when the multichain ecosystem matures, in the post ETH 2.0 world, it may be worth considering moving Maker’s ledger (VAT) onto a rollup with most liquidity (for composability) or its own Rollup (for speed of execution and the low cost of Oracle updates).
The ideal solution would aim at making bridged DAI and minted DAI fully fungible so for the end user this is the same DAI. This is ultimately possible only if MakerDAO controls the bridge used to transfer DAI to other chains / rollups. DAI bridged with third party bridges should be always considered “wrapped” DAI. Note: the Optimism DAI bridge was already approved by the community.“
“With the greatest technical challenges behind us, we’re starting our sprint towards smart contract deployments in an EVM-compatible environment. The first version of the testnet is live: you can already check out the activity on zkSync 2.0 with a block explorer.
zkSync’s zkRollup technology combined with Eth2 data sharding is the endgame, hitting 100,000+ TPS without sacrifices on any of the 4 factors [Security, programmability, scalability, decentralization].”
“Layer-2, DEX liquidity pool position strategies, and insurance is on the horizon for the rapidly-expanding team.
A lot of the strategists have been playing with sidechains, re-deploying vaults on sidechains. The vault would still be on ETH, but it would source liquidity via a bridge from the sidechain.
In the end, he thinks that rollup solutions are where the space will largely migrate.
We’ve been working for a while to try and get DEX strategies to work, because you have to deal with impermanent loss.
The difficulty with these positions is in limiting downside, especially at times of market volatility. Options derivatives for hedging positions was one strategy initially tested, but decentralized option platforms largely lack liquidity and the pricing makes it an impractical solution.
Regardless of the exact method, finding a workable DEX strategy is a priority given its one of the few sectors Yearn has yet to explore.”
“V3 featured some massive improvements to the protocol—such as the introduction of concentrated liquidity for better capital efficiency. And the capital efficiency isn’t just a little better—Uniswap V3 is like 4,000x more capital efficient. This means that your money is being put to work more efficiently. You can make more money as a liquidity provider in Uniswap V3.
But providing liquidity to V3 isn’t as simple as it was before. From setting your price ranges, to using the proper fee tier, to having an NFT to represent your LP position, it can be overwhelming for new users.
Let’s figure out how to make money in the newest version of Uniswap.”
“Texas Gov. Greg Abbott (R) signed into law a measure creating a legal framework for cryptocurrencies and blockchain in the hopes of making his state a magnet for the industry, the way Wyoming has become and what Miami Mayor Francis Suarez is trying to do with that city.
The new law amends the state’s Uniform Commercial Code to better adapt commercial law to blockchain and digital assets, formally defines virtual currencies and offers individuals and businesses a legal environment for crypto investment.
According to the National Law Review, about 25 states are considering blockchain and/or digital asset-related measures in their 2021 legislative sessions.“
“Everyone should have all eyes on Africa right now. Africa’s leading [in] global cryptocurrency adoption.
Nigeria is Paxful’s biggest market to date, with around 1.5 million users and $1.5 billion in trade volume. Thanks to Nigeria’s tricky exchange rate policy, inflation and large number of unbanked adults, cryptocurrencies like bitcoin are increasingly used as an alternative store-of-value.
Youssef added that in addition to leading markets like Nigeria, new markets are “blowing up” every day. He expects Cameroon and Ethiopia to be strong contenders for emerging crypto markets in the next few years.”
“The price of bitcoin and other cryptocurrencies fell Saturday morning after a large number of cryptocurrency “Key Opinion Leaders” (KOL) on Weibo were blocked, a move some are viewing as signs of a further crackdown on crypto by China’s government.
The blocked accounts are a mix of influencers, media outlets, miners and wallets.”
“Musk tweeted a broken heart with the bitcoin logo and a picture showing a couple in the midst of a breakup. The crypto community took it as a sign of the billionaire distancing himself from bitcoin, leading to price losses.
The pullback poured cold water over the optimism generated by the symmetrical-triangle breakout confirmed on Thursday.”
“The Monetary Authority of Singapore (MAS) has received over 300 requests for payments and crypto exchange licences, including applications from Alibaba and Google.
The MAS is working out how to speed up the application process. Firms that have applied but are still awaiting approval may continue offering specific payment services while their application is processed.”
“The sluggish economy reported could mean the U.S. Federal Reserve moves more slowly toward tapering its $120 billion in monthly bond purchases, which would be a positive development for cryptocurrency holders.
The U.S. revised April’s jobs number up to 278,000, after a long month of economists debating about how the economy only added 266,000 jobs our of an estimated 1 million in April.”
“Sotheby’s, the 277-year-old British auction house, announced Friday it is claiming its stake in the metaverse with the launch of its very own virtual gallery. The auction house has chosen the social platform Decentraland as its destination for artists, collectors and viewers to engage.
Sotheby’s virtual site imitates the London building and features five ground-level gallery spaces and an avatar of Sotheby’s London Commissionaire Hans Lomulder, who will be positioned at the entrance of the auction house to greet visitors.
We see spaces like Decentraland as the next frontier for digital art where artists, collectors and viewers alike can engage with one another from anywhere in the world.
In May, Sotheby’s announced it has started accepting cryptocurrency as payment for artworks.”
“Tax will be required when total balances held with foreign virtual-asset businesses exceed 500 million won (US$450,000) at the end of each month. Violation will be met with fines of 10%-20% of the amount not reported or underreported.”
“The deal is the largest in esports history. TSM will be known as “TSM FTX.”
The organization plans to expand into new platforms such as mobile, and open offices in Asia, Europe and South America. It will also distribute crypto to its players and employees as well as purchasing $1 million worth of FTX’s native token FTT.
Founded in 2009, TSM FTX says it is the world’s most valuable esports organization and fields players in League of Legends, Fortnite, Super Smash Bros and Tom Clancy’s Rainbow Six Siege, among others.”
“Dorsey, who is Square’s CEO, said he is open to feedback and will continue the conversation around developing a hardware wallet. Dorsey said there are plans to integrate the wallet with Square’s Cash App.
If we do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community.”
“The new blockchain can document proof of digital assets, monitor infringement activities, collect evidence online, issue notices to remove piracy products and help courts settle copyright-related disputes and process lawsuits.
The blockchain is great for digital copyright protection given its technical features such as immutability, source-tracing ability and distributed consensus.
China’s Supreme People’s Court recognized evidence authenticated by blockchain and considered it legally binding in September 2018.”
“Paxful Pay exchanges customers’ payments from over 400 different methods into bitcoin, which is then sent to the merchant’s digital wallet. Other digital currencies are expected to be made available in due course. Paxful plans to introduce automatic conversion into stablecoins like tether as well.
There is a clear need to offer local options for bitcoin, and this product is a culmination of our efforts to deliver on that demand.”
“Anchorage already provides bitcoin-backed loans through other capital providers, including Silvergate Bank, and is looking to provide institutional clients bank-grade loans on their ethereum as well. This seems to be the first time ETH-backed loans have been extended through an FDIC-insured bank.
Anchorage has had the ability to extend ETH-backed loans to its clients, but forming partnerships with other banks is allowing it to scale its crypto-backed lending product.
“From Thursday, select 360 users will be invited to join Norton’s early adopter program for Ether mining. Norton also plans to open up the mining service to all of its nearly 13 million 360 customers in the coming months.
While the company will start slow, with a focus on helping customers safely mine Ethereum, NortonLifeLock is considering adding reputable crypto currencies in the future.
Norton claims to offer superior security features to existing mining protocols, stating: ‘For years, many coinminers have had to take risks in their quest for cryptocurrency, disabling their security in order to run coinmining and allowing unvetted code on their machines that could be skimming from their earnings or even planting ransomware.'”
“Ethereum solutions provider ConsenSys has pledged support for a Uniswap governance proposal to set aside tokens for a new decentralized finance (DeFi) fund for political lobbying. The Harvard Law BFI proposal cited concerns that governments around the world may try to regulate DeFi without proper education and suggested a fund of 1-1.5 million UNI.
The proposal was made on May 27 by the Harvard Law School Blockchain and FinTech Initiative for the creation of a fund that would finance existing and new political groups engaged in crypto policy-making and lobbying to defend DeFi against regulation.
This is a terrific effort and Uniswap taking the first step could break the floodgates of other large treasuries supporting this (or similar) initiatives.”
“Bitcoin wallet firm Exodus earlier this year sold $75 million in common stock in the company, purchasable only through its wallet. The sale was notable for the company’s decision to only accept Bitcoin, Ethereum, and USDC stablecoin for the shares. Exodus touted the SEC-approved share sale as the largest “regulated crypto public offering” ever.
Soon, Exodus says, it will transform those sold shares into tokens on the Algorand blockchain. Blockchain-based transfer agent Securitize has partnered with Exodus and Algorand to issue the security tokens. Exodus will become one of the few companies to turn real shares into security tokens so that they might be traded on crypto markets.
Think of this as the 2021 version of an ICO—compliant, transparent, and offered by a profitable company with a working product.”
“The European Union (EU) is set to announce plans for a digital wallet to store payment details and identity credentials among other information. The plans follow requests from member states to offer a secure way for citizens to access public services.
The wallet would store passwords and payment details, allowing access to local government websites and bill payments using a single digital identity. The wallet is expected to be operational in around a year’s time, according to the report.”
“FTX’s marketplace appears to run both on the Ethereum blockchain (the chain of choice for most popular NFT auction houses) as well as a network called Solana.
Some of FTX’s NFTs are linked to real-world objects, and are “redeemable” for their physical counterparts. An NFT tied to an image of three KAWS statuettes should get you three actual KAWS statuettes—same goes for an NFT of an FTX-branded condom.”
“Bitcoin’s anonymous creator Satoshi Nakamoto is set to be depicted in a life-size bronze statue in Budapest, the capital city of Hungary. Sculptors, Réka Gergely and Tamás Gilly are designing the statue, and have unveiled initial plans depicting a figure with a featureless face wearing a Bitcoin hoodie.
The face will be made from a reflective surface so that viewers can see themselves mirrored back when they look at the statue — emphasizing the idea that ‘We are all Satoshi.’“
“The review period for the application is now extended by 45 days from May 26. In late April, the SEC delayed a decision on VanEck’s bitcoin ETF application to at least June. In late May, WisdomTree filed an ethereum (ETH, +3.47%) ETF application.
Meanwhile, WisdomTree bitcoin and ethereum exchange-traded products have recently begun trading in Amsterdam and Paris.“
“Institutional investors continue to exit BTC in favor of ETH, with Ether investment products now representing more than one-quarter of institutional crypto AUM.
According to CoinShares’ June 1 Digital Asset Fund Flows Weekly report, the past week saw significant institutional inflows of $74 million as investors sought to capitalize on the fall out from the recent crash in which many crypto assets lost more than 50% of their value. More than 63% of institutional inflows were injected into Ether products, or $46.8 million of the total.
Significant inflows were also made to products offering exposure to multiple crypto assets ($11.1 million) as well as funds targeting Cardano ($5.2 million), XRP ($4.5 million), and Polkadot ($3.8 million).
Outflows from Bitcoin products have slowed, with roughly $4 million in capital exiting the markets — down from last week’s $110.9 million in outflows.”
“Standard Chartered said they have formed a venture to create a digital asset brokerage and exchange platform for institutional and corporate clients in Europe. OSL is said to be the world’s first SFC-licensed, listed, digital asset wallet-insured, Big 4 audited digital asset trading platform for institutions and professional investors.
Initially targeting the European market, the U.K.-based company will seek to connect institutional traders to counterparties across markets, delivering access to pools of liquidity in bitcoin, ethereum and other digital assets.“
“Google is tightening its restrictions on those seeking to pitch cryptocurrency exchanges and wallets to U.S. customers.
Effective Aug. 3, anyone seeking to advertise those products to U.S. customers will have to be registered with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) or a federal or state chartered bank regulator Google announced.
All prior certifications by Google will be revoked at that time. No changes were announced for other regions.”
“In Tuesday’s briefing, Jean-Pierre said combating ransomware is now “a priority” for the Biden government. ‘Expanding cryptocurrency analysis‘ is part of the U.S. president’s new review of ransomware attacks.
President Biden has already launched a rapid strategic review to address the increased threat of ransomware to include four lines of effort … [including] expanding cryptocurrency analysis to find and pursue criminal transaction[s].
Other lines of inquiry include evaluating how ransomware is distributed and working with other nations to ‘hold countries who harbor ransom actors accountable.'”
“Domestic and cross-border payments could be dominated by non-domestic providers, according to the report.
The report gives as an example ‘foreign tech giants potentially offering artificial currencies.’ Market dominance by such a privately issued currency would leave consumers and businesses vulnerable should it threaten the stability of the financial system.
The European Commission and the ECB have been discussing the potential launch of a digital euro since the start of 2021, with central bank President Christine Lagarde saying in March that one could be launched within four years, should the decision be taken to proceed.”
“Crypto exchange Kraken is bringing its mobile app to U.S. customers, having launched in Europe earlier this year. Customers in the U.S. will be able to trade the 50+ tokens available on Kraken’s platform from their mobile phones as of today.
Kraken announced in March that it is considering a stock market debut in 2022, following rival Coinbase’s suit.”