“Bitcoin was sharply lower on Tuesday, at one point declining nearly 19% from the $52,000 resistance level. The drop occurred after El Salvador bought 200 BTC on Monday ahead of the Central American nation’s Bitcoin Law going into effect.
The sharp BTC decline triggered about $3 billion of trading position liquidations. Bitcoin was trading around $47,000 at press time and is down 10% over the past 24 hours.
The market’s been overextended for the last six weeks without any significant pullback.
From a technical perspective, bitcoin briefly dipped below the 200-day moving average and found support just above the $42,000 breakout level. The sell-off occurred after multiple signs of upside exhaustion and slowing momentum ahead of the $52,000-$55,000 resistance zone.”
“El Salvador’s legislature passed the Bitcoin Law on June 9 by a supermajority, with 62 members voting in favor of the bill, while 19 opposed and three abstained. The crypto officially became legal tender on Tuesday.
Bitcoin is now on equal footing with the U.S. dollar, which has been in circulation throughout the country since 2001. Goods, services and even taxes can now be paid using the world’s oldest crypto. “Every economic agent” must accept the use of bitcoin as a legal form of payment under the law.
We must break the paradigms of the past. El Salvador has the right to move toward the First World.
This is an historic day and a great opportunity for the people of El Salvador to build financial freedom.
A day before the law came into effect, El Salvador purchased its first 200 BTC, with Bukele saying the country’s brokers would be buying a lot more.”
“It’s vanishingly rare for a country as small as El Salvador to find leverage where they can actually play a leading role on the world stage. So while this is a ridiculously gutsy move for the country, especially given the pushback they’re receiving from world powers like the IMF, it’s an asymmetrical bet that is likely to garner huge rewards.
El Salvador’s economy depends on money sent back from workers abroad. As such, it suffers greatly from predatory bank and wire transfer fees.
The implementation of bitcoin stands to have a revelatory and positive impact on the lives of those protesting its arrival.Cryptocurrency promises both accessibility and freedom from the arbitrary tyranny of both international borders and bank fees.”
“Bitfinex is moving into the security token offering (STO) industry by launching a new STO platform regulated in Kazakhstan. The new STO platform will operate under the AIFC Fintech Lab, a regulatory sandbox established in the AIFC by the Astana Financial Services Authority.
This meaningful step for the industry will widen access to a variety of innovative financial products, including notably blockchain-based equities and bonds, along with investment funds.
Kazakhstan is an emerging hub in Asia well placed geographically to service our Asian and European markets and it’s poised to play an important role in this emerging alternative financial system.
The exchange then expects to debut trading with Exordium (EXO), a security token “representing equity and profit sharing rights” on Liquid Securities, a platform built on top of Bitcoin (BTC) sidechain Liquid Network. According to a legal statement, Bitfinex Securities has an extensive list of jurisdictions and persons prohibited from trading on the platform.”
“The highest bid for a non-fungible token (NFT) collection of 101 bored-looking apes has fetched $19 million at Sotheby’s, surpassing the auction house’s original estimate of $12 million to $18 million. The auction – set to close in just under two days – features NFTs from Yuga Labs’ Bored Ape Yacht Club (BAYC).
The project highlights the community-building aspect that has become increasingly important to new NFT projects. Each Bored Ape doubles as a “Yacht Club” membership card, granting the holder to members-only benefits, including access to the BAYC Bathroom, a “dive bar bathroom” where each ape-holder will be able to paint a pixel on the digital bathroom wall every 15 minutes. BAYC envisions the Bathroom as ‘a members-only canvas for the discerning minds of crypto twitter.'”
“China’s highest economic planning body gave the go-ahead for trials using blockchain for green power trading to start across the country. State Grid, the world’s largest utility operator, has applied for a patent for blockchain-based certificates of green power transactions.
The NDRC hopes that trading system will not only help China hit its carbon goals by incentivizing the use of green energy, but will be a Chinese solution to global energy problems.”
“Second-layer scaling solutions designed to counteract network congestion on Ethereum are booming, with over $1 billion locked up in scaling protocols, according to layer two ecosystem tracker L2Beat.
Different versions of rollups—including Optimistic, Plasma, Validium, and ZK-rollups—bundle and verify these series of transactions in different ways; of the top ten protocols by value locked, fully half are based around ZK-rollups, for a total of $547.56 million locked. Heading up the list is crypto exchange dYdX, with $285.6 million locked.
One scaling solution that L2Beat doesn’t track is Polygon, which the site’s authors define as a proof of stake sidechain. L2Beat defines layer two as ‘a chain that fully or partially derives its security from L1 Ethereum so that users do not have to rely on the honesty of L2 validators for the security of their funds.’“
“The study by Research Dive projects a compound annual growth rate (CAGR) of 91.5% from 2018.
The ability of smart devices that communicate over the internet to improve supply-chain efficiencies by using blockchains and removing intermediaries will allow transactions to be completed quicker and for a lower price, Research Dive concluded.
The segment projected for the fastest growth is smart cities with a CAGR of 93.9%. With smart cities expected to use IoT technology in all aspects of daily life, blockchain technology would be employed to secure the personal data used by IoT devices.”
“What if you stripped all the fantastical elements from Loot NFTs and instead printed 8,888 character sheets containing nothing but numbers zero through fourteen in a blank serif font and told people to use them in “any way you want”? Then you’d have an NFT collection with a market cap of 10,256 ETH (about $40 million) called The N Project. It’d be the fifth-most popular NFT project just three days after launch and you could sell one of the NFTs for an average of 1.15 ETH ($4,537).
Developers have already crafted psychedelic visualizations and bots that hunt for rare numbers (there are only six 0s), and there’s a 1,400-strong community on Discord.
The N Project is just another innovation—a riff on the mother project, which is composed of 8,000 different randomized lists of text detailing gear from medieval fantasy RPGs. n sits neatly alongside other innovations, including Loot Visions, which makes pictures out of Loot, Abstract Loot, which makes Loot character sheet loot like acid blotter paper, and a Loot marketplace called The Grand Exchange. So far, Loot remains bigger than any of its derivatives or offshoots.”
“Exclusive for United States-based customers, the platform will enable users to mint, buy and sell NFTs — all traded cross-chain across the Ethereum and Solana blockchains. FTX isn’t the only crypto exchange to branch into this space during 2021. Direct competitor Binance launched its own NFT marketplace in June.
Last month, OpenSea became the first NFT marketplace to surpass $1 billion in monthly trading volume. Dune Analytics reported that total sales volume for NFTs rose to $2.5 billion across the first half of 2021 compared to $13.7 million in the first half of 2020.”
“The Ethereum blockchain and surrounding infrastructure are increasingly seen as public goods.
Public goods are non-excludable and non-rivalrous. Non-excludable means we cannot exclude others from using the good. Examples include natural resources like the air, but also produced goods and services like public radio or the police. Non-rivalrous means in using them we don’t deplete them for others.
My position is Ethereum has an unconscious political bias I call mutualist minarchism. It is mutualist because the community emphasizes cooperativism and collaboration, but also minarchist as it develops new minimalist forms of governance, in that it creates decentralized analogues to the functions of the traditional state.
In DAOs, however, we can espie a possible political position emerging. In the Ethereum ecosystem, we don’t typically encounter socialists/communists or even the right libertarians populating bitcoin culture. Instead, we encounter venture entrepreneurs with a strong inclination toward a public goods philosophy.
There is an online meme now about whether DAOs are socialists or not, but this probably constrains us a little too much by traditional definitions. Instead, in DAOs public goods are an aperture into an attitude rooted fundamentally in capitalism but not the neoliberal fog of ultra-individualistic capitalism. The sense and feel for entrepreneurship remains, the venture, but there are too many shared problems in our society to discount the centrality of a shared commons. This produces venture commonism: Web 3.0 entrepreneurship with commonist characteristics.
This more sharply encapsulates a political ambition, a vision of ad hoc decentralized groupsthat spontaneously form to tackle manageable tasks that improve the lot of a shared commons. The answer to what a public goods value might look like is: We want to produce a society respectful of individualism, but contextualizes the individual within a set of shared communal problems.
The Ethereum political project could then be reimagined as the restoration of community through venture commonism. The answer to Ethereum’s political ambiguity is resolved, fittingly, from DAO culture upward.”
“Here are 4 things that might be the next big thing in crypto.
GameFi. The momentous rise of Axie Infinity has triggered a conversation about the evolution of gaming. The value of digital-asset-powered gaming has been proven, and now it’s just a matter of building games that people want to play. In the legacy gaming world, the most successful games are free-to-play. But in crypto, we can do better—we can make them play-to-earn.
Layer 2 DeFi. Importantly, DeFi apps that want to claim L2 real estate will bolster yields via their own incentive programs.
Web3 Social Media. Now that Layer 2’s are here, we can revisit one of the early promises of Web3: Social Media as Ethereum apps. ‘Community’ is what powers this entire industry, so it’s only logical that a crypto-based social media platform would be hugely successful if it figures out the optimal design. And, like GameFi and yield farming, it’s going to financially reward its contributors and users.
Tokenized Communities. Communities are the new alpha. They are the next investment phenomenons. Tokens allow for communities to grow larger and more engaged. With the power of tokens, you can now gain financial exposure to the value of the community as a whole. Different communities are going to find different ways to increase the capital behind their organization.”
“In some countries, the trade volume for SLP is so high that progressive platforms are enabling users to exchange the token for the local currency. And here in the Philippines, a growing number of local merchants have gone a step further, with sellers willing to accept micro-doses of the stuff as payment for goods and services.
In mid-July, Bakebe’s began accepting an Ethereum-based utility token called Smooth Love Potion (SLP) for payments. It’s not the only merchant in on SLP, either. A quick quiz on social media turns up a bunch of advertisements for all sorts of things you can buy in the Philippines with SLP. Those include a pair of new kicks at SneakyX; a car service at Adz Garage, a polishing at Ecowash; insurance renewal at Divinagracia Insurance Agency; a test for COVID-19 at Swab Republic; a dermatitis treatment at The Healthician Clinic; an outfit for your toddler at Little Blossoms; a gift from SOLID TOYS; a laptop upgrade at Meron Ako; a massage chair at ZION; a milk tea at Chi Figata; a plate of dumplings at Mama’s Boys; and a session with online fitness coach, The Architect.
The minting and acquisition of SLP has become an everyday task for a lot of people, so it’s useful to be able to spend it as an everyday currency.
There are more Filipinos with Ronin wallets than there are Filipinos with credit cards.
Living in the Philippines, I’ve seen this tendency to value SLP in relation to real-world items, too. It seems the player community cares less about how much SLP is worth in terms of PHP or USD. A friend of mine, on his first day of playing Axie, excitedly told me he had earned three Chicken Joys in just a few hours.
Unlike a paper banknote, or even a bitcoin, SLP exhibits inherent utility because it can always be used to breed more Axies, making it akin to other goods-as-money payment tools with multiple uses that have been used over time like gold, rice, rum and cigarettes.”
“Most NFTs currently circulating are almost certainly not securities. A security is generally defined as a claim on the future proceeds from the work of others, while an NFT is usually the product of work that has already been undertaken.
Which makes it all the more strange that a good number of NFT series or adjacent projects are going out of their way to turn their nice little non-security collectibles into things the SEC would definitely take an interest in.
The most straightforward way that NFTs can become subject to SEC oversight is through fractionalization. At least one marketplace, Fractional.art, is pursuing the idea. We already know that such efforts are within the purview of the SEC. We know because there are already significant companies, particularly Masterworks, which fractionalizes physical art for investors. Masterworks registers its offerings with the SEC.
But there are other NFTs that are moving even more clearly into securities territory, particularly by offering revenue distributions to current holders. Two examples are Buzzed Bears and Lazy Lions, which both attach certain governance rights to ownership. That, according to the projects, can include the right to redistribute the profits from future sales to current holders. Buzzed Bears even has a staking system that lets you “hibernate” your bears to increase returns.”
“With generative art, artists don’t directly create the work. Instead, they customize a computer algorithm that does it for them! While this has historically been a relatively niche sector in the art world, it’s now in the spotlight thanks to Ethereum and NFTs.
Generative art is algorithmic art, a form of computer-generated art whose pieces come via an algorithm that an artist has customized for making unique outputs.
In the context of Ethereum and NFTs, generative art typically involves an artist uploading a custom-tailored artistic algorithm into a smart contract. When a collector calls the mint function on said contract, the underlying algorithm is pinged in a unique way leading to a unique artwork output in the form of an NFT.
Accordingly, automation and disintermediation are salient elements of Ethereum’s generative art scene. To me, the future of art has never been more exciting.
My ‘art’ was about making sure someone could get an interesting and unique piece of work without any human interaction.”
“J.P. Morgan has tested the world’s first bank-led tokenized value transfer in space, executed via ERC-20 smart contracts on a blockchain network established between satellites orbiting the earth.
As part of our team’s focus on ‘Horizon 3’ projects that identify disruptive areas in which blockchain can create value, we decided there was enough here to begin thinking about what a space payments system would look like over the long term.
The Blockchain Launch team worked with satellite company GomSpace to deploy a Consensys Quorum blockchain onto one of Gomspace’s Low Earth Orbit (LEO) satellites. Crucially, this required utilizing a special installation of Consensys Quorum that was small enough to operate on low-memory devices, first tested on the ground on a Raspberry Pi.
After executing a successful token transfer on the newly established satellite-to-Earth Consensys Quorum network, the next stage focused on executing a more complex transaction type – deploying an ERC-20 contract. Finally – and most importantly – they successfully executed a transaction between two LEO satellites, which validated the approach towards a decentralized network where communication with earth is not necessary.“
“Alien Worlds is the fastest growing game in blockchain and one of the biggest dapps overall. Launched last year, the free game gives gamers an opportunity to earn the local currency by mining, battling other explorers, going on quests or from receiving rental commission from their land.
Alien Worlds, which lives on the Ethereum, WAX and Binance Smart Chain blockchains, is a metaverse spread over seven planets and at its core is the concept of not one but six competing DAOs. The game uses non-fungible tokens, and inhabitants mine for the game’s cryptocurrency trilium. Both currencies can then be exchanged for fiat.
To McKenna, Alien Worlds is much more than a play-to-earn vehicle. Alien Worlds is converting people to mass adoption of crypto through strategy and governance, she says.
Metaverses are the new social media – where people will come to socialize. We have given them a world, or rather worlds, where people can come together.
People can offer gaming contracts and already have, hosting their own mini competitions. That’s what excites us – the metaverse taking on a life of its own.”
“The U.S. Federal Reserve, along with other government entities and officials, is struggling to deal with the financial disruption brought on by cryptocurrency’s move into banking and other financial services, according to an article in the New York Times.
The article notes that regulators are concerned about the adequacy of the cash reserves and algorithms that back stablecoins. The article states that many traditional financial institutions are nervous about potential disruption at the hands of DeFi but makes no mention that many are themselves starting to provide crypto services.”
“Players’ individual ventures appear to be excluded from the rule. Future hall-of-fame quarterback Tom Brady has an equity stake in FTX, along with ownership of an NFT platform partnered with DraftKings.
The NFL has lagged behind other major leagues in entering the NFT space. The NBA has enjoyed a lucrative partnership with Dapper Labs’ NBA Top Shot dating back to May 2020, and MLB recently launched its own NFT marketplace with Fanatics-owned Candy Digital in July.”
“Decentralized finance (DeFi) insurance provider Cover, together with its smaller lending sibling Ruler, are shutting down after the development team that serviced them both abandoned the projects.
Though the announcement by the community manager known as DeFi Ted didn’t say why the development team had left, the protocols have been plagued with issues, particularly the much larger Cover. Last December, the protocol was victim of a so-called White Hat attack and then in March, Yearn Finance ended its plans to merge with Cover.”
“The SEC is investigating the developer of decentralized exchange Uniswap. The SEC is seeking information about how investors use the exchange and how it is marketed.
While it is still unclear exactly what the SEC wants to know, the news is a sign of the regulator’s intent to wield greater oversight of decentralized finance (DeFi). No wrongdoing appears to have been alleged at this time.”
“Twitter appears to be developing functionality that enables users to add Bitcoin and Ethereum addresses to their profiles.
Mobile developer and self-described “leaker” Alessandro Paluzzi tweeted screenshots on Thursday that showed BTC and Ether (ETH) wallet address options in the settings toolbar of the app version of Twitter. While the news is unofficial at this stage, Twitter product lead Kayvon Beykpour retweeted Paluzzi’s Wednesday post about the BTC tipping feature with the lighting and “soon” arrow emoji.
The inclusion of ETH appears to be uncharted territory for the tech leader, who has notably refused to have anything to do with the second-most popular cryptocurrency in the past.”
“Applying that deep-seated connection between art and community to the new world of online markets in unique digital assets is what gives this trend far greater prospects for economic disruption than initial coin offerings ever had. Add decentralized autonomous organizations (DAOs) into the mix, and that potential is amplified even more.
Both the issuers and buyers of “Pengus” and “Apes” are collectively striving to build a powerful feedback loop between the appeal of their respective NFT imagery and the formation of an ever-stronger community bond. Those that succeed will not only boost the value of the underlying NFT collection but also forge a sense of affiliation.
It’s a powerful combination. In NFT communities this FOMO (fear of missing out) game is amplified even more, because membership gives you both the satisfaction of belonging to the club and the capacity to flex your own, individual status through a unique avatar.
In this environment, price becomes a very clear measure of the success of a community. Prices of the NFT collections that are generating the most buzz and membership FOMO are the ones that are soaring.”
“Bitcoin is holding above $50,000 at press time and is up about 2% over the past week. Higher price moves in cryptocurrencies have coincided with a rally in global stocks this week, signaling greater appetite for risk among investors.
Ether, the second-largest cryptocurrency by market capitalization, reached $4,000 on Friday for the first time since May. ETH is up about 20% over the past week, extending its outperformance versus bitcoin.
Bitcoin dominance has been falling towards 40% and may gradually weaken as investors branch out to other areas of the market, focusing more on use cases than purely store of value.”
“Researchers from the University of Texas have raised fresh concerns regarding Block.one’s record $4.362-billion ICO for the EOS blockchain in 2017 and 2018. The research allegedly identified 21 accounts that recycled EOS tokens during the ICO.
According to the paper, EOS was allegedly wash-traded on the Binance and Bitfinex cryptocurrency exchanges in an effort to artificially inflate the prices. Wash-trading describes the process where an entity simultaneously acts as the buyer and seller for the same asset to artificially bolster volume or manipulate prices.
These suspicious accounts accounted for almost a quarter of EOS purchases by the end of the crowdsale.”
“Twitter could soon enable users to tip content creators using bitcoin following the latest update to its “Tip Jar” feature. Code in Twitter’s latest beta suggests that support for bitcoin will be rolled out to the platform’s tipping service that was launched in May this year.
The update indicates that users will be given a tutorial in bitcoin, including details on the Lightning Network and custodial vs. non-custodial wallets. It also tells users that a Strike account is required to use the feature.
Twitter has also recently advertised job vacancies in its payments division for senior legal counsel and chief compliance officer, both preferring experience in crypto.”
“Asset manager Franklin Templeton is staffing up to execute trades for bitcoin and ether, according to a series of job postings. The twin gigs highlight the $1.5 trillion firm’s newfound interest in crypto as an investable asset class.
The roles will be tasked with executing crypto strategies, building relationships with blockchain developer communities and creating new crypto products for the mutual fund issuer and money manager.”
“Just three months after a non-fungible token (NFT) representing an image of the original Shiba Inu dogecoin meme sold for about $4 million, the NFT is now valued at more than $225 million after part of its ownership sold for over 11,000 ether.
Investors were able to boost the price of the doge NFT to a record high for NFTs in such a short time by fractionalizing it into nearly 17 billion tokens named DOG with 20% of the supply for sale via a 24-hour auction ended Thursday.
The event reflects investors’ rapidly growing demand for fractionalized ownership of NFTs, a new, easier way to participate in the increasingly pricey and volatile NFT market. But like all innovations, fractional ownership of NFTs also has risks.
By locking an NFT in a vault, the NFT fractionalization issuer has to bear the risk of potential hacks on smart contacts. The fractionalization issuer often maintains the majority ownership of the NFT, which means the minority owners need to be aware of potential “pump and dump” schemes.”
“Texas House Bills 4474 and 1576 officially took effect on Sept. 1 after being signed into law by Governor Greg Abbott in June. H.B. 1576 establishes a blockchain working group in Texas, while H.B. 4474 amends the state’s Uniform Commercial Code to recognize cryptocurrencies under commercial law.
H.B. 4474 better defines the security interests for Bitcoin (BTC) and other cryptocurrencies to ‘allow institutional investors to get involved with sizable investments.‘
This means parties to transactions have clarity regarding their legal rights and obligations, judges have a roadmap to adjudicate disputes, and lenders know they have an enforceable lien on the crypto pledged as collateral for collateralized loans.
Texas became the 4th U.S. state, behind Wyoming, Rhode Island and Nebraska, to clarify the commercial law status of these assets.”
“The Bank of International Settlements (BIS) Innovation Hub is working with the central banks of Australia, Malaysia, Singapore and South Africa to test the efficacy of wholesale central bank digital currencies (CBDC) in cross-border settlements.
The goal of “Project Dunbar” is to develop prototype platforms that can support international settlements with digital currencies issued by multiple central banks. The project will focus on developing these prototypes on different distributed ledger technology platforms and experiment with various governance and operating designs that could help central banks to share CBDC infrastructures.
These multi-CBDC platforms will allow financial institutions to transact directly with each other in the digital currencies issued by participating central banks.”
“The crypto market may struggle to survive in the U.S. outside the country’s regulatory framework, according to U.S. Securities and Exchange Commission Chair Gary Gensler. Gensler reiterated his desire for crypto trading platforms to register with the SEC because a number of cryptocurrencies can be deemed as securities.
There are a lot of platforms that are in operation today that would do better engaging. Instead there is a bit of … begging for forgiveness rather than asking for permission.”
“Dongxing, spoke about the consensus of Chinese businesses to digitally transform the securities and futures industry. Blockchain technology can build a trust mechanism in the network environment, which will be key to the digitization of the securities and futures industry.
The Science and Technology Bureau will base the construction of the said blockchain on a two-tier structure: a chain of custody (for tamper-resistant forensic evidence of asset control and transfers) and business (smart contracts and supply chain).”
“Beginning Sept. 1, decentralized search engine Presearch will be listed as a default option on all new and factory-reset devices sold in the United Kingdom and Europe, a move that could erode Google’s dominance in the search engine market.
The company said daily searches have increased more than 300% since January 2021. All search engine requests are processed by Presearch node operators, who earn rewards through Ethereum-based PRE tokens.
The decision by Google to list Presearch as a default browser option follows a protracted legal battle with the European Commission over accusations that the technology company used Android to solidify its search engine dominance.
Brave, a crypto-powered web browser, [also] recently launched a new privacy-protecting beta search engine to provide users with an alternative to Google’s personal data harvesting.”
“Our vision of scaling Ethereum has been years in the making, but it’s today that we first get the opportunity to bring much-needed gas relief to the incredible Ethereum community. We’ve committed to a fair launch, and today we’re delivering on that commitment by opening up to users for all projects simultaneously.
Even though we’re removing the whitelist today, this doesn’t mean that every project will choose to go live immediately. The Arbitrum One Portal is the best place to track the progress of current and upcoming launches on Arbitrum. We expect several projects to go live with us today and more projects to launch over the coming days and weeks.
While today’s release is a significant milestone, Arbitrum One is still in beta. We’ll be closely monitoring the launch and maintaining the ability to do fast upgrades and even pause the system should it become necessary. As Arbitrum is a new and cutting-edge system, we believe that maintaining these controls for the time being is the responsible way to launch.
Most notably, today’s launch will have a speed limit of 80,000 arbgas per second. The capacity of Arbitrum One in the post-launch period will roughly match the current capacity of Ethereum L1. We intend to increase the speed limit over time as the system stabilizes and we continue to increase performance.
Over the coming months and weeks, we’ll continue to monitor network usage, improve stability and performance, and gradually increase our transaction cap over time. We also have some very exciting features that we’ll be adding over time that will further improve on Arbitrum’s developer experience.”
“The Biden administration wants to incorporate new crypto reporting requirements in an upcoming $3.5 trillion budget reconciliation bill. The language would require American cryptocurrency firms, namely exchanges, to report data about non-U.S. users; that information could be exchanged with other countries to make sure crypto traders pay taxes.
The Treasury thinks such actors are setting up corporate entities to play a multi-billion shell game with offshore exchanges and wallets. To crack down, the U.S. needs information from other countries. And to get that information, it needs to come with information of its own to trade, hence the revised reporting requirements.
None of this is in the spending package as it’s currently constituted, which has been designed to be filibuster-proof but will need all 50 Democratic votes in the Senate to pass.
We object to last-minute additions to ‘must-pass’ bills outside regular order and with little or no public input.”
“The Central Bank of Nigeria (CBN) said Monday it will work with Bitt Inc., a blockchain and payments startup, to launch the African nation’s eNaira digital currency later this year. The central bank digital currency (CBDC) will ease cross-border trade, promote financial inclusion and speed up remittances, the central bank said.
Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85% of central banks are now considering adopting digital currencies.”
“The agency will represent the NFT project for appearances in film, TV, video games and publishing. CryptoPunks could be the first NFT to break into more traditional forms of media.
Licensing rights have been a controversial topic in the NFT sector because they are often seen as antithetical to its decentralized and permissionless nature. The news about CryptoPunks stirred a strong reaction among some observers of NFTs.
I’m skeptical Hollywood agents, however talented, can license the imagery authentically without deep engagement w the punk community.”
“China aims to build an international clearing and settlement network for mobile payments using the digital yuan. The network will be a “breakthrough point” in the cross-border use of the digital currency. China also wants to use the digital yuan to improve the monitoring and early warning capabilities regarding cross-border flows of the yuan, according to the article.
Official Chinese sources have been reluctant to talk about the central bank digital currency as a vehicle for RMB internationalization, even though state planning documents like the Five Year Plan affirm that internationalizing the national currency is one of the government’s goals.”
“You can now generate passive income with your ETH thanks to our new partnership with Lido, now available on Ledger Live.
By staking ETH with Lido, you don’t need to own 32 ETH to become a network validator. Lido allows users to participate in the network with any amount of ETH, without the need to maintain complex infrastructure whilst preserving the liquidity of your ETH. For each Ether you’ll stake through LIDO you’ll receive stETH in exchange. These stETH tokens can be exchanged, sent, or sold using services such as Paraswap.
Lido applies a 10% fee on a user’s staking rewards.”
“The DeFi applications involved in the project — Aave, SushiSwap, Curve, 0x and PoolTogether, among others — will together provide up to $100 million in educational initiatives, grants and incentives in an effort to educate individuals globally about decentralized finance.
Of the roughly 5 million people around the world currently using DeFi applications, less than 10% live outside of developed countries. DeFi for the People will make DeFi accessible and get more tools in the hands of more users around the world, and bring the benefits of DeFi to anyone with a mobile phone.”
“After several problems at Bitmain, the largest manufacturer of Bitcoin miners in the world, one of the company’s founders, Jihan Wu, decided to focus his efforts on validating Ethereum.
Through Matrixport, a company based in Singapore, the entrepreneur will start offering pools for validation, via stake, in ETH 2.0. According to Wu, his focus is to help implement the series of interconnected updates designed to improve the scalability, security and sustainability of the Ethereum network.“
“Ether’s net daily issuance is less than bitcoin’s for the first time on record. Ether’s daily annualized net issuance fell to 1.11% earlier this week versus bitcoin’s 1.75%.
EIP 1559, which went live on Aug. 5, burns a portion of fees paid to the miners, removing a notable chunk of coins from circulation. Since activation, the upgrade has eliminated over 100,000 ETH, representing 36% of the new coins issued over the same period.
If the trend continues, ether could attract store-of-value demand, which until now has been concentrated mainly toward bitcoin.
Previously closer to digital oil, ETH’s value moved in tandem with its usage; now that its issuance is probably lower (and potentially deflationary), it is likely to develop a monetary premium like BTC.”
“Bitcoin gained Friday, and the U.S. dollar dropped in foreign-exchange markets, after Federal Reserve Chairman Jerome Powell leaned dovish in a key speech at the U.S. central bank’s annual Jackson Hole, Wyo., conference. He provided no concrete date for starting to taper or scale back the Fed’s $120 billion-a-month bond-buying program.
In the highly anticipated speech at the Federal Reserve Bank of Kansas City’s annual economic symposium, Powell said the economy no longer needs as much policy support but the central bank should refrain from making an “ill-timed policy move” in response to this year’s “transitory” rise in inflation.
The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test.”
“This is the problem we’re going to solve: make it easy to fund a non-custodial wallet anywhere in the world through a platform to build on- and off-ramps into Bitcoin. You can think about this as a decentralize[d] exchange for fiat.
We’d love for this to be Bitcoin-native, be entirely developed in public, open-source, open-protocol.”
“Weiss Crypto, the subsidiary of financial ratings firm Weiss Ratings, slammed Cardano’s partnership with Coinfirm, describing it as a “bad move all around.”
The Cardano Foundation announced its partnership with the blockchain analytics provider on Tuesday, which will see Coinfirm’s analytics being utilized to ensure compliance with frameworks such as the 6th Anti-Money Laundering Directive and Financial Action Task Force’s guidelines.
The excessive regulation is how the banking system was choked to death. With this announcement, it would seem ADA is proudly announcing they want to follow in their footsteps.
[Cardano] is now closer to becoming a censorship-prone, politicized, and manipulated network.”
“The central bank, which is known as the BCC, said it may authorize, for reasons of socioeconomic interest, the use of certain virtual assets in commercial transactions and license virtual asset service providers to allow them to conduct certain financial activities, such as collecting payments.
Financial institutions and other legal entities may only use virtual assets among themselves and with natural persons to carry out monetary and mercantile operations, and exchange and swap transactions, as well as to satisfy pecuniary obligations.”
“In this year’s Hype Cycle report, research firm Gartner has ranked NFTs at “Peak of Inflated Expectations.”
Every year, global research and development company Gartner publishes its Hype Chart, which highlights the 25 breakthrough technologies that the company considers will have the most impact on business and society over the next two to ten years.
With the top marketplaces generating $2.5 billion worth of trading volume in the first half of the year, and popular collections such as CryptoPunks and Bored Ape Yacht Club recording new peaks, NFTs have yet to reach the “trough of disillusionment” that Garner predicts will come after the “peak of inflated expectations.”
NFTs are establishing themselves as an exciting new asset class with a regular inflow of new buyers. Whilst many have already called the top multiple times on NFT markets, the consolidation of price followed by new market highs continues to surprise.”
“Banks helped force a hugely disruptive porn ban on OnlyFans. With public fury focused on their outsized power, the banks seem to have backed down.
The ban, announced just a week ago, was met with widespread outrage both from adult performers and, more generally, those concerned about the power of banks to effectively shut down businesses they don’t like by cutting off payments service. Public discussion of that threat, often referred to as “banking censorship,” was likely a key element in the reversal of the ban.
95% of coverage about OnlyFans supports [sex workers].
Meanwhile, adult performers have been organizing protests against Mastercard scheduled for Sept. 1. Those may still continue and could be hugely embarrassing for banks and financial services – particularly to the degree they highlight payment processors’ ability to block pretty much any payment they please.
All of this marks a major defeat for efforts by social conservatives and other anti-porn activists to leverage the payments system to impose their views on society. It also appears to have more broadly raised awareness about the threat of banking censorship.
For cryptocurrency advocates who have spent more than a decade banging on about the threat of bank censorship, this may come to be viewed as a watershed moment.”
“The new warrants authorize police to hack the personal computers and networks of suspected criminals, seize control of their online accounts and identities, and disrupt their data. The Greens slammed the bill for hastening Australia’s march down the path to becoming a “surveillance state”:
What’s worse, the data disruption and network activity warrant could be issued by a member of the Administrative Appeals Tribunal […] It is outrageous that these warrants won’t come from a judge of a superior court.”
“Now there’s a simpler way to get plugged into the ENS ecosystem, where users own their domain name data and can use their web addresses as crypto wallets. ENS announced today that website owners with a Domain Name System (DNS) can now integrate directly with ENS without having to change to a .eth name, as they previously would have had to do.
For example, if you own ‘example.com’ on DNS, you can import it into ENS — as example.com, not example.eth, the latter is a separate name.
You can then send and receive ETH and other assets, including Dogecoin, via that .com (or .net, .org, .edu , and so on) name.”
“According to the patent, creating and managing tokens is currently “difficult and cumbersome” due to the lack of standardization across different blockchains. Microsoft’s patent describes a ledger-independent system for helping users to create tokens, and for managing them across different networks.
On receiving a request from a user, the system offers templates with various attributes and control functions. Those would depend on the type of token required, representing, for example, a digital or physical asset. Once the user has selected the desired template, the system creates the token on the designated networks.”
“Around 6% of Bitcoin’s circulating supply has been accumulated by asset managers and companies, signaling ever increasing mainstream and institutional adoption of crypto assets.
The Grayscale Bitcoin Trust, represents more than 3% of the Bitcoin supply, managing 654,600 BTC (worth $32 billion). CoinShares’ XBT Provider ranks second with 48,466 BTC ($2.4 billion) representing 0.23% of supply.
The data provider also tracks 34 public companies that hold BTC on their balance sheets, which collectively command 1% of Bitcoin’s supply. Half of all Bitcoin held by public companies is in the possession of MicroStrategy. Tesla accounts for 20% of the Bitcoin held by private companies. Roughly 80% of BTC stashed away by private companies is held by Block.One.
A further 260,000 BTC are attributed to the balance sheets of national governments.”
“Following a pair of controversial votes in the governance forums of the Uniswap exchange, venture capital giant Andreessen Horowitz (a16z) said in a blog post Thursday it will “open source” its decentralized finance (DeFi) delegation procedures.
Given the size of the DeFi ecosystem – now rivaling mid-sized American banks at $146 billion in total value locked (TVL) – and the considerable governance token reserves controlled by a16z, this effort towards transparency sheds light on policies that have the power to shape an emerging financial vertical.
The “open sourcing” of the delegate program is a bid to lift the veil on how a16z approaches protocol governance. The goal moving forward is to “build in public.”
If we’ve had a fault to date, it’s been a lack of transparency.
DAO voting and delegation will be managed by a new, four-person team. The a16z Protocol team will be perhaps the first-ever third-party professional protocol politicians with a purview that will comfortably rank a16z among the most powerful voices in DAO governance.“
“A total of 42,500 option contracts worth roughly $2 billion are set to expire on Friday. The max pain price for Friday’s bitcoin options expiry is $44,000.
The cryptocurrency is trading at about $47,000 at press time, representing a 4.4% drop on the day. The decline has reversed Wednesday’s 2.7% gain and exposed bitcoin to the widely tracked 200-day moving average (MA) line located at $46,040.
What we are seeing is typical pre-expiry price volatility. [The] market generally rebounds after monthly settlement.”
“The former Ethereum alternative darling is far off its all-time high for total value locked. A growing number of “rug pulls” or exploits on BSC, meanwhile, has also raised questions around BSC’s security, as some BSC users have left the platform over fears about the safety of their funds, according to analysts.
BSC should’ve just rebranded to Binance Rug Chain.
Messari’s second quarter review on layer 1 blockchains highlighted that BSC was particularly hurt by the May market crash because most of the value locked on BSC was money-oriented capital looking for liquidity mining rewards, and the majority of assets on BSC had few use cases.
In developing layer 1 blockchains, one of the three fundamentals, scalability, security and decentralization, has to be sacrificed to optimize the other two, a so-called blockchain trilemma. In BSC’s case, decentralization was sacrificed. The BSC blockchain’s security algorithm, known as Proof-Of-Staked-Authority (PoSA), is controlled by 21 node operators who are mainly controlled by Binance.“
“Two bills introduced in the U.S. Congress on Wednesday seek to push the CFTC to clarify the regulation of cryptocurrencies, prevent price manipulation, boost acceptance of blockchain technology and, ultimately, make U.S. cryptocurrency businesses more globally competitive.
This is the third iteration of the two bills, which were both first proposed in 2018.”
“Weiss will produce and direct episodes of “Hold On for Dear Life”—a backronym for HODL, the rallying cry of Bitcoin maximalists. “HODL” watchers will be eligible for NFTs of artwork and content from the show.
The series hinges on its young protagonist, Mel, who creates a token in honor of her best friend, who has gone missing. She must then navigate the crypto scene a la “Silicon Valley” or “Betas” alongside a motley crew of friends, including a crypto anarchist and a Lambo lover.
Like “Ballers” and “Entourage,” it’s supposed to be funny. But there’s serious potential for crossover appeal as the show has minted its own ERC20 token on the Ethereum blockchain so that token holders can receive a share of the series profits. The token sales will also go toward funding the production.”
“Blockchain firm Constellation Network is to provide end-to-end security for data sharing between the U.S. Department of Defense and its commercial partners. The contract is a transition from the Phase I contact secured by Constellation two years ago.
In partnership with Kinnami Software, Constellation has applied its Hypergraph Transfer Protocol to create a security product that uses blockchain encryption and distributed data management.”
“Evidence is mounting to suggest that Ethereum has finally either caught up to or surpassed Bitcoin across a number of key metrics.
For starters, Ethereum is surpassing Bitcoin in total value transferred on-chain. So far in August $185 billion worth of ETH has been moved on Ethereum while only $180 billion of BTC has exchanged hands on Bitcoin.
Every month since June 2020, users have been paying more in fees to send transactions on Ethereum than Bitcoin. In 2021 alone, total fees in dollar terms on Ethereum were four times higher than Bitcoin, suggesting demand for block space on Ethereum is outpacing demand for block space on Bitcoin.
The Puell Multiple suggests the profit-taking opportunities for investors holding ETH have been greater than those for investors holding BTC almost consistently for the past 15 months.
As a result, trade activity for ETH-USD pairs have surpassed or come close to surpassing that of BTC-USD pairs. For the first time ever, aggregated monthly trade volume in the ETH spot markets surpassed that of the BTC spot markets in May. This suggests market interest in ETH is trending as high as BTC.
There are also telltale signs in the cryptocurrency derivatives market of a shift in market sentiment placing Ethereum in the same rankings as, if not more bullish rankings than, Bitcoin.
How much people are willing to pay for bitcoin or ether one or three months out into the future is a good sense of the market sentiment around where things are going. The future premium you pay for ether is close to 10%, whereas for bitcoin it’s right around 7% to 8% right now and the amount of calls being bought out into the future is more skewed to the upside on ether than bitcoin.
Institutions and professional investors that got involved in the crypto industry because of their interest in bitcoin are getting serious about their interest in ether, too, and, more importantly, they are beginning to value ether as a unique investment separate from bitcoin.”
“The beer company purchased the Beer.eth domain name for 30 ether, or roughly $95,000. Budweiser USA also changed its Twitter profile picture Tuesday to that of a rocket ship designed by NFT artist Tom Sachs.
Budweiser is taking its first steps into the NFT universe.”
“Bitcoin’s mining difficulty has increased for the third time in a row in yet another sign of the network’s staying power following a crackdown on the industry earlier this year by authorities in China. The latest increase in the bitcoin mining difficulty comes as some operators creep back online after previously dropping off the network following China’s crackdown and as North American miners expand capacity.
Bitcoin mining has never been more profitable. Look at the percentage of price run that bitcoin had over the last 12 months and look at the hashrate percentage increase, and it’s nowhere near in line.”
“Goldman Sachs now sees the probability of a formal November announcement at 45%, versus a previous forecast of 25%.
The upward revision comes days before the Federal Reserve Bank of Kansas City’s annual Jackson Hole symposium, where Chair Jerome Powell is expected to strike a dovish tone, considering the resurgence of the Delta variant.
Historically, that has been a headwind for bitcoin. In past cycles, both the anticipation and start of tapering have tightened monetary conditions, boosting the dollar in the process.”
“The tokenized green bonds are the Bank of International Settlements Innovation Hub’s first green finance project. Under so-called Project Genesis, they will build a “prototype digital infrastructure,” which will enable sustainable investments while improving transparency of how proceeds are used.
Tokenizing the bonds through blockchain technology will allow investors to buy small denominations of the assets, which the institutions hope will boost investment. Investors can also track environmental output in real time.”
“A mix network or “mixnet” (taking its name from the proxy servers it employs, called “mixes”) obscures the metadata left behind when data passes through a network, providing a higher level of privacy when it comes to network-level surveillance. Manning’s audit will be completed before the Nym network launches on mainnet later in the year.
As methods for network traffic analysis have dramatically improved in the last decade, I have frequently called for research (since 2016) into alternative methods to Tor. Nym is one such viable alternative worthy of research and developmental implementation.”
“Mafia groups and criminal organizations are increasingly using cryptocurrencies, according to the Italian Anti-Mafia Directorate (DIA). The DIA recently published a report that covers organized crime in Italy during the first six months of 2020.
Ndrangheta, the country’s strongest and most powerful criminal syndicate, are growing more and more attuned to modern tools like cryptocurrency and the deep web.
Only the most sophisticated can obfuscate their traces by now. That prevents small dealers from participating in the market and a natural tendency towards fewer but larger dealers on those markets.”
“VanEck and ProShares both pulled their applications just two days after filing them, suggesting the SEC reached out to the issuers and indicated an ether futures fund was not likely to be approved.
The fact that both companies’ bitcoin futures ETF filings, as well as those of several other firms, remain active is a positive for their prospects, according to Seyffart. He expects at least one bitcoin futures ETF to launch in the U.S. in the fourth quarter, perhaps as soon as October.
If eventual bitcoin futures ETFs are able to operate successfully, and open interest and volume in ether contracts continue to rise, Seyffart said he believes it won’t be long before ether futures ETFs are approved by the SEC.”
“The House voted 220-212 to bar amendments from consideration on the Biden administration’s $1 trillion infrastructure bill. The agreement brought together progressive and moderate Democrats who had foreseen different ways forward for the legislation.
While the Treasury Department under the Biden administration has reportedly suggested it won’t enforce the tax reporting requirements on miners and the like, crypto advocacy groups believe the House should have amended the bill that now sits before them.”
“Six crypto entities including exchange Kraken and decentralized finance (DeFi) protocols Uniswap and The Graph have donated $250,000 each to efforts around upgrading the Ethereum blockchain.
The $1.5 million donation will support execution-layer teams working on technical upgrades to achieve “Ethereum 2.0.” The five Ethereum clients that will receive this funding are Besu, Ergon, Geth, Nethermind and Nimbus.
Ethereum’s goal is to lessen the risk associated with the network’s over-reliance on a single entity.”
“The number of bitcoin held in exchange wallets is rising, departing from the recent trend of outflows. Data tracked by Glassnode show crypto exchanges received 16,606.80 BTC on Monday, the highest daily net inflow in over a month.
Whales, or large investors with an ability to make or break market trends, who accumulated coins after the mid-May price crash, have begun running down their inventory. These large investors began accumulating coins after bitcoin’s slide to $30,000 in mid-May, signaling a price bottom.
Technical studies indicate the cryptocurrency may consolidate before scaling the critical resistance level of $51,110, which is the 61.8% Fibonacci retracement of the mid-April to July sell-off. The DeMark indicators are signaling short-term upside exhaustion.
Bitcoin is coming into resistance at a 61.8% Fibonacci retracement level near $51,000, which would be a natural place for a short-term pause in the rally.
Stockton, however, added that the long-term momentum has strengthened, with the 200-day moving average (MA) rising again. As such, the cryptocurrency would eventually topple resistance at $51,110.“
“In its “Global DeFi Adoption Index,” the blockchain data firm found that while DeFi adoption has increased significantly over the past 18 months in both emerging and developed markets, most of that growth has occurred in countries and regions with higher incomes and more professional investors and traders.
DeFi adoption has primarily been powered by experienced cryptocurrency traders and investors looking for new sources of alpha in innovative new platforms.
The majority of DeFi use cases are “more sophisticated” applications that have posed challenges for retail investors to embrace. Although DeFi has attracted larger investors, the sector will need to do better in engaging smaller retail investors, the report said.”
“China’s digital yuan has been used to pay storage fees to a delivery warehouse in the Chinese city of Dalian, marking the first use of its kind within the domestic futures market. The interbank payment using the e-CNY afforded a zero-cost, efficient, and convenient payment option in real time, according to the report.
During the Winter Olympics in Beijing next year, foreign visitors will be able to access and trial China’s digital currency without needing to open a local bank account.”