MicroStrategy Listing In The S&P 500 Index Might Expose Millions To Bitcoin

https://e-cryptonews.com/microstrategy-listing-in-the-sp-500-index-might-expose-millions-to-bitcoin/

MicroStrategy’s market cap would have to rise another $3.7 billion and meet other eligibility criteria to have an opportunity to make it on the popular index.

Being the biggest corporate holder of Bitcoin, MicroStrategy is gradually moving toward being eligible for being included on the S&P 500 index – a milestone that might see Bitcoin companies appearing on “nearly every portfolio.”

The Bitcoin (BTC) – focused company would still have to meet strict eligibility criteria and secure a massive market cap, nonetheless.

Data shows MicroStrategy surged to 535th position among the biggest publicly-listed firms in the United States on February 15, after an 8-day trading span that saw its stock price rally 46%.

Largest publicly-listed companies in the U.S. by market cap: Source: Companies Market Cap

Largest publicly-listed companies in the U.S. by market cap: Source: Companies Market Cap
Largest publicly-listed companies in the U.S. by market cap: Source: Companies Market Cap

Getting on the S&P 500 index, which tracks the top 500 biggest firms listed on stock exchanges in the United States needs a company to meet many eligibility criteria, including a minimum market cap requirement and a positive sum of profits over the past four quarters, in addition to being profitable in the most recent quarter.

Over 250,000 shares must have also been traded in the past six months, and many of these shares must be in the public’s hands.

Under current rules, candidate companies require a market cap of $15.8 billion to qualify for the listing. MicroStrategy’s market cap is around $12.1 billion, which means its current price of $718 would be required to surge to $937 if everything else is equal.

Nonetheless, MicroStrategy’s stock has posted a positive sum of profits in the past four quarters, including its most recent quarter.

Even if the criteria are met, the S&P’s 11-member executive committee has to approve MicroStrategy’s listing. The committee temporarily removed electric car maker Tesla from the S&P 500 ESG index in May 2022.

The general index fund rebalances on the third Friday of every March, June, September, and December.

Bitcoin In ‘Nearly Every’ Portfolio

If MicroStrategy seeks an S&P 500 listing and it succeeds, it might “spark a massive positive feedback loop” of Bitcoin exposure in almost every ETF portfolio, as highlighted by Joe Burnett, senior product marketing manager working at Bitcoin financial services firm Unchained.

On that note, if MicroStrategy is featured in the S&P 500, Bitcoin will start “automatically infiltrating nearly every portfolio,” Burnett said.

“This includes your traditional 401k, your pension fund, and every 60:40 portfolio.”

The three biggest exchange-traded funds by assets under management (AUM) track the S&P 500 — namely State Street’s SPDR S&P 500 ETF Trust, BlackRock’s iShares Core S&P 500, and the Vanguard S&P 500 ETF, with more than $400 billion in assets each, according to VettaFi’s ETF database.

If MicroStrategy were to break into the S&P 500, its portfolio weighting would be nearly 0.01% of the entire index fund.

Data shows the S&P 500 currently boasts a market cap of $41.9 trillion. This means MicroStrategy would consume around $12 billion in passive capital allocation at a 0.01% weighting.

Burnett said in a separate X post:

“Passive index flows drive markets. Inclusion would [equal] automatic buying, boosting its share price, enabling more equity issuance for BTC buys further lifting its share price and attracting more passive flows.”

Currently, MicroStrategy holds 190,000 BTC at a beverage buying price of $31,224. It means the company is up $3.9 billion on its investment.

It comes as the company’s founder and chairman, Michael Saylor, announced that MicroStrategy is transitioning from a business intelligence company to a “Bitcoin development firm” on February 9.

The Takeaway

MicroStrategy’s potential inclusion in the S&P 500 index represents a significant milestone for the Bitcoin-focused company. Despite its current market cap of $12.1 billion falling short of the required $15.8 billion, MicroStrategy has shown positive profits in the past four quarters, meeting one of the eligibility criteria.

If the company successfully meets all the criteria and gains approval from the S&P’s executive committee, it could trigger a substantial positive impact on the broader market.

The prospect of MicroStrategy becoming part of the S&P 500 index has the potential to create a positive feedback loop, leading to increased Bitcoin exposure in a wide range of portfolios, including traditional 401k plans, pension funds, and other diversified portfolios. This scenario could result in automatic buying due to passive index flows, boosting MicroStrategy’s share price and attracting more passive capital.

Bitcoin Regained $1 Trillion Market Cap As The Cryptocurrency Market Hit Over 2-Year High

https://e-cryptonews.com/bitcoin-regained-1-trillion-market-cap-as-the-cryptocurrency-market-hit-over-2-year-high/

Bitcoin surged to hit another more than two-year high on February 14, sending its market cap back above the $1 trillion psychological level, and the increasing success of US spot Bitcoin ETFs turned investor sentiment more positive.

The biggest crypto has climbed above $52,000, its highest level since December 2021. Its market cap and the value of Bitcoin in circulation increased to reach above $1 trillion for the first time since late 2021, according to CoinMarketCap data.

On February 14, Bitcoin surged to another December 2021 high, breaching the $52,000 level.

This move was powered by the increased demand for Bitcoin due to the newly launched US spot Bitcoin ETFs as outflows from the Grayscale Bitcoin ETF (GBTC) that weighed on market sentiment for the earlier part of the last month have reduced considerably.

The head of research at crypto-focused asset manager CoinShares, James Butterfill, told CNBC:

“Yesterday, we saw $651 million [in] inflows, the largest daily inflow since the launch day. Furthermore, there were 12,000 Bitcoin tokens demanded by the issuers yesterday at a time when only 900 were produced every day. Investors are beginning to realize that demand is beginning to outstrip newly issued supply.”

Some $9.5 billion of new money has entered the Bitcoin market through the funds since they started trading on January 11, according to CryptoQuant data provider. In the last two weeks, over 71% of new money invested in Bitcoin has originated from the spot ETFs, not including GBTC.

Ether (ETH) was last trading 4% higher at 2,743.08, after earlier hitting a May 2022 high. The bitcoin surge related to the stock markets higher. The trading platform Coinbase gained by 11% and Bitcoin proxy Microstrategy surged by 10%. Miners CleanSpark and Iris Energy gained by 14% and 17% respectively, while Marathon Digital spiked by 13%.

Bitcoin market rising

Bitcoin market rising

Bitcoin gained 157% in 2023, as anticipation increased for the U.S. Securities and Exchange Commission’s approval of Bitcoin exchange-traded funds (ETFs), which eventually came in January 2024.

Although the price of Bitcoin dropped after the ETF approvals, investors are still upbeat about the crypto’s setup for the year. In addition to ETF inflows, they are also closely watching the ‘halving’ – a supply-limiting event written in Bitcoin’s code that happens every four years and is expected to happen in April.

Historically, the halving event has preceded Bitcoin reaching new all-time highs in the following months. The head of product go-to-market strategy at Coincover, Duncan Ash, stated:

“If the pace of bitcoin issuance slows while demand either remains steady or increases, the effect on price can be substantial. On Feb. 12 alone, bitcoin ETFs purchased ten times the amount of bitcoin that miners were able to create in a day. The upcoming halving will reduce supply even further. If the next halving follows the same pattern, we can expect continued growth in bitcoin’s price during the months ahead.”

Bitcoin is up over 21% in 2024. On February 14, Bitcoin gained over 4% to reach highs of $52,079.00 at one point, its highest level since December 2021. The move was powered partially by growing demand for Bitcoin thanks to the newly launched US spot Bitcoin ETFs.

In the last two weeks, over 71% of new money invested in Bitcoin has originated from the spot ETFs, not including GBTC, based on CryptoQuant data.

Bitcoin’s upswing price movements continued from the past week, and the asset is expected to rise towards $55,000. Most of the altcoins are also in the green, with XRP rising to $0.55 and ADA has neared $0.60.

Related:Spot Bitcoin ETFs Add Another 10,600 BTC On Day 5

Bitcoin Is Still Climbing

The biggest crypto had a strong past week as it closed it with a 13% gain – the best weekly performance since October 2023. February 12 started with a minor retracement from $48,800 to $48,000, but all that was short-lived.

This token turned strongly bullish and exploded to reach above $50,000 for the first time since late 2021. Another brief retracement followed, pushing BTC down to $48,400 on February 13 after the US published the latest CPI data.

Nonetheless, Bitcoin appears to be on a roll, and could not keep it down either. On February 14, Bitcoin surged further and soared above $52,000 to reach a new multi-year high. How high will it go before the halving? Time will tell.

What Is A Crypto Loan And How Does It Work?

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Loans using cryptos as collateral have gained popularity in the crypto space in recent years. This financial instrument enables crypto holders to access liquidity without having to sell their digital assets.

Here, we will dive into details of how crypto loans work, the different existing models (CeFi and DeFi), and the requirements for these applications, ways to use the acquired capital, and the benefits and shortcomings to consider before taking on debt. Moreover, this editorial will explore practical examples of their applications, including debt consolidation, vehicle purchases, holiday expenses, and their use for trading and investment purposes.

What Is A Crypto Loan?

A crypto loan is a personal loan secured using cryptos. In other words, the borrower offers a particular amount of cryptos like Tether (USDT), Ethereum (ETH), and Bitcoin (BTC), among others, as collateral. In exchange for that collateral, the borrower gets a sum of cash, normally in the local currency, to get repaid in periodic installments over a predetermined period, which ranges from 12 to 60 months, depending on the lender.

Interestingly, the operation is similar to any other secured loan, such as a mortgage for a home or a loan used to buy a car. The main difference here is that the collateral is not a physical asset but a cryptocurrency.

By securing the loan with cryptos, the lender can seize the collateral in case the borrower fails to make the agreed-upon payments. On the other hand, in case the borrower fulfills all payments on time, they regain full control and ownership of the initially pledged cryptos.

Thus, the loans work similarly to traditional markets but with a considerably lower interest rate.

crypto loans

crypto loans

How Does A Crypto Loan Operate?

To request a crypto-backed loan, you must have a crypto to use as collateral. Once you have the cryptos, the next step is to find an entity or online platform that offers these kinds of loans. Every financial institution or platform has its conditions, so it is important to thoroughly research different options before making any decision.

When selecting a lender, set up an account on their platform and link your crypto wallet to it. This enables the lender to verify your crypto balance available to secure this loan. It is worth noting that on many of the centralized platforms, you will have to complete the identity verification (Know-Your-Customer) process, which normally needs personal and address documentation.

Once you complete the steps, you can request a particular loan amount, considering the value of the cryptos offered as collateral. Every entity sets its criteria but normally lends between 20% and 70% of the presented crypto collateral’s value.

Ultimately, sign the loan agreement, and upon approval, receive the requested funds. That normally happens quickly or within a few hours. From the moment the money is received, you can start making the agreed-upon periodic payments.

Imagine you want to borrow 100 USDT via the Binance exchange. To do that, you would have to offer 142 USDC as collateral. It means the interest linked with the loan would be 70%. It is similar to putting down 142 dollars as a deposit to borrow 100 dollars. That is a simple example using USDT, but you can do it with almost all cryptos on the platform.

Related:How to Make Money with Crypto Loans: A Simple Guide

Types Of Crypto Loans

Two types of loans can be acquired using cryptos as collateral:

  1. Centralized Finance (CeFi) Loans – This is the most common kind of loan in the crypto sector. The entity offering the loan is a centralized firm or institution, such as an exchange or a regulated fintech platform like Coinbase, Binance, Kraken, Huobi, and Crypto.com, among others. Under the CeFi scheme, the borrower transfers their cryptos to a wallet designated by the lending platform. In that way, the platform safeguards and manages the cryptos during the loan term. Once the loan, and all interest, are fully paid, the cryptos are returned in full to the original owner. The benefits of these loans include quick approval, high liquidity, and low-interest rates.
  2. Decentralized finance (DeFi) loans – in this case, the loan in question is not granted by a centralized entity but by a smart contract on the blockchain. Notably, these are automated peer-to-peer loans executed via code. Unlike the CeFi model, here the borrower retains custody of their cryptos in the entire process, using their non-custodial wallet.
    It means there is no need to transfer them to a third party. The smart contract manages loan release, collateral, and interest. Nonetheless, similar to the previous model, in case payments are not met, the smart contract automatically executes the liquidation of the crypto assets offered as collateral. The decentralized loan type avoids any intermediaries but comes with higher interest rates and needs an exhaustive understanding of decentralized finance (DeFi).

Using A Crypto Loan

Crypto-backed loans have become excessively versatile, enabling financing for a wide variety of personal or business needs. Here are some particular examples:

  • Debt consolidation – use the acquired capital to pay off or refinance previous debts, including credit card balance, bank loans, and personal loans. This strategy helps improve cash flow by consolidating various payments into one at a significantly lower rate than the traditional banks.
  • Trading and investments – crypto investors mostly reinvest the borrowed money into different cryptos or DeFi projects that promise increased growth potential, which is more than the crypto they currently own. For instance, an investor may borrow USDT to acquire ADA expecting the launch of new products on the Cardano blockchain, and repay the loan at year-end with the generated profits in case ADA’s price increases.
  • Vehicle purchases – whether it is a truck, a car, a motorcycle, or even a boat, crypto loans are perfect for covering expenses that normally need lots of cash outlays.
  • Travel and vacations – Most people utilize this kind of financing to fund their leisure trips, whether it is the dream Caribbean cruise or a luxury vacation somewhere in Dubai.

Related:Crypto-Backed Mortgages: What Are They And How Do They Operate?

Benefits And Shortcomings Of Crypto Loans

Acquiring money via a crypto-backed loan has multiple benefits compared to other kinds of financing. Nonetheless, it also has some risks worth talking about.

Among the main benefits of crypto loans include:

  • Low-interest rates –these loans normally have considerably lower interest rates than credit cards or unsecured personal loans. In some cases, rates can start from as low as 0.95% annually.
  • Quick approval – there is no need to verify credit history or offer financial documentation. The application is 100% online and is normally approved the same day, which makes it perfect for resolving emergencies.
  • Flexible use of funds – these funds can be reserved for any legal purpose, from paying debts to investing in brand-new assets. There are no limitations.
  • Tax management – access liquidity without selling crypto assets and possibly incurring capital gain taxes.

The shortcomings of crypto loans to consider include the following:

  • Possible margin calls – extra injections of cryptos might be needed to replenish the assured value.
  • Partial loss risk – in case the value of the offered crypto collateral plunges considerably, the borrower might encounter partial liquidation to cover the losses.
  • Limited access to cryptos – while the loan is active, access or trading with the collateral assets might be limited.

The Takeaway

In general, looking for a loan using cryptos as collateral is an attractive option for those who are seeking liquidity but are unwilling or unable to sell their current holdings.

Nonetheless, it is important to fully understand the possible risks of taking out a crypto loan before proceeding. While the interest rates are significantly low and the process is accelerated, there is a real potential of losing all the pledged holdings via margin calls or partial liquidations of the involved assets.

Hence, before applying for a crypto loan, thoroughly research the terms and conditions of each platform. Compare all these platforms to find the one with the lowest interest rate, and ensure that you have a backup plan in case the value of the collateral cryptos dip abruptly. Remember that the crypto market is renowned for its extreme volatility.

The Role of Liquidity Providers in Forex and Digital Asset Markets

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The realm of foreign exchange trading, commonly known as forex, is a dynamic and high-volume venture, which engages brokers and affluent individuals across the globe. It’s celebrated for its diversity and liquidity, a vital aspect for brokers to efficiently close positions, amplify profits, and safeguard their clients’ investments. Central to this dynamic market are the entities known as Forex liquidity providers, which play a pivotal role in enhancing the Forex trading experience.

Understanding Forex Liquidity And Its Importance

Forex liquidity refers to the ease of buying or selling a currency pair without causing a significant impact on its market price. This concept is fundamental in over-the-counter (OTC) forex transactions. A currency pair is deemed liquid if it can be traded easily without causing market slippage, a scenario where the executed price differs from the expected price.

Liquidity in Forex is influenced by various factors, including:

Monetary Policy: Shifts in a country’s monetary policy, such as tariff alterations or inflation fluctuations, can directly affect forex liquidity.

Global Credit Dynamics: An increase in a nation’s credit supply or a decrease in credit demand can impact forex liquidity, often indicating a robust global financial market.

The degree of liquidity can significantly affect trading conditions and spreads. Higher liquidity usually translates to more favorable trading conditions, thus attracting more market participation, stabilizing cryptocurrency prices, and contributing to a healthy global economy.

The Role Of Forex Liquidity Partners

Forex liquidity partners are vital in mitigating market volatility and ensuring efficient forex conversions with minimal slippage. They facilitate high-volume currency trades through banking relationships and by partnering with Banking as a Service (BaaS) providers, enabling white-label access to fiat on/off ramping.

Related:Professor Pips Academy Review: A Forex Trading Platform for Beginners and Experts

The Different Types Of Forex Liquidity Providers

Forex liquidity providers (LPs) come in various forms, each playing a unique role in the market:

Banks: These are the primary providers, offering competitive pricing due to their large asset holdings.

Electronic Communication Networks (ECNs): ECNs match buy and sell orders, ensuring traders find counterparts for their trades.

Market Makers: They provide liquidity by trading assets from their own inventories, ensuring market stability even in volatile conditions.

Hedge Funds: Similar to banks, hedge funds also contribute significantly to forex liquidity.

Retail Brokers: They link retail traders with financial institutions, enhancing liquidity aggregation.

Forex Liquidity

Forex Liquidity

Classifications Of Financial Assets

Financial assets held by liquidity providers are classified into tiers based on their liquidity:

Tier 1: These assets represent the financial strength of an institution and include main earnings and equity.

Tier 2: Less liquid than Tier 1, these assets supplement core assets during market shortfalls.

Tier 3: The lowest quality, these assets have been phased out post-2008 financial crisis due to their high risk.

Advantages Of Partnering With A Forex Liquidity Provider

Access to Deeper Liquidity Pools: Helps in stabilizing pricing, particularly during major news releases.

Competitive Spreads and Pricing: High-tier asset holders offer better long-term reliability and competitive pricing.

Improved Trade Execution Speed: Advanced technological systems support rapid trade executions.

Reduced Slippage: Keeping markets transparent and reducing the likelihood of slippage.

Market Stability: Liquidity providers help prevent extreme market volatility and flash crashes.

Related:Comparing Cryptocurrency and Forex Trading: Pros and Cons

Choosing The Right Forex Liquidity Provider

When selecting a forex liquidity provider, consider:

Asset Reliability: Providers holding high-value assets are generally more dependable.

Technological Infrastructure: Cutting-edge technology aids in swift and efficient order fulfillment.

Pricing Structure: Seek transparent and straightforward pricing models.

Understanding the role of ECNs and STPs is crucial in eliminating conflicts of interest and ensuring fair trade practices. Additionally, it’s important to review and compare offerings, keeping an eye out for hidden terms or conditions.

Legal And Compliance Considerations

Staying informed about international regulations affecting liquidity providers is crucial. With forex being a global market, regional regulations can significantly influence operations. Partnering with compliant providers ensures legal safety and protects clients from fiduciary risks.

In conclusion, forex liquidity partners are integral to the fluidity and stability of the forex market. They offer a range of benefits, from enhanced trade execution speeds to access to deeper liquidity pools, which are essential for maintaining a healthy and dynamic trading environment. By carefully selecting the right forex liquidity partner, brokers can significantly improve their market performance and safeguard their clients’ investments.

What Is Offline Staking?

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Offline staking is a strategy used for engaging in a proof-of-stake (PoS) blockchain platform without revealing the private keys of the staked tokens to the online network is cold staking or offline staking.

Particular blockchain networks use the PoS consensus mechanism to certify transactions and safeguard the whole network. In a proof-of-stake system, validators are selected to develop new blocks and validate transactions based on the number of tokens they hold and are willing to ‘stake’ as collateral.

On the contrary, proof-of-work systems, like Bitcoin, rely on miners using their computer power to solve complex mathematical puzzles to validate transactions and develop new blocks.

Staking in cryptocurrency

Staking in cryptocurrency

Offline Staking vs. Traditional Staking

By locking their money in an online wallet connected to the network, the participants in traditional staking mostly actively participate in the blockchain’s consensus and validation process. On the flip side, offline staking presents a new method that lets users stake their digital assets without having to connect to the internet.

In the case of offline staking, users can delegate their staking duties to a third-party validator – also called a staking pool – while keeping their funds safe in cold storage. Since it minimizes the amount of funds exposed to any type of internet threat, this critical distinction enhances the security of offline staking.

Nonetheless, it also gives up some authority and control over the conventional stakeholders’ decisions. Multiple variables, including technological ability, security options, and the need for continuing network participation, impact the decision between traditional and offline staking.

Security Measures In Offline Staking

Offline staking uses different security measures, including cold storage and multisignature wallets, guaranteeing enhanced security through multiple updates.

Using cold storage, which stores wallet data and private keys offline to minimize vulnerability to internet threats, is a common strategy. Hardware wallets are also mainly used due to their security features, which include offering a physical device to safely store private keys and defend against malware or phishing attacks.

Additionally, by limiting the potential attack routes and being physically separated from the internet, air-gapped networks offer an extra degree of security. Encryption keys and passwords need to be generated and stored securely, which highlights the significance of safe initialization and setup processes.

Consistent software updates are important for the preservation of security because they patch vulnerabilities and defend against known dangers. It is important to monitor the staking node’s activities to spot any suspicious activity and potential security issues on time.

Using multisignature wallets, which require multiple private keys for transaction authorization, enhances security. Defenses against outside threats are enhanced by strong network security mechanisms, including intrusion detection systems, firewalls, and virtual private networks (VPNs). In the cases of unexpected problems or hardware breakdowns, access to staking funds can be regained because of the usual backups of wallet data and private keys.

Moreover, emphasizing the utilization of secure channels for transactions and validating wallet addresses is crucial to guarantee the secure transfer of tokens from regular wallets to staking wallets. By incorporating these security measures, participants can substantially mitigate the risks associated with offline staking, thereby protecting their staked assets from vulnerabilities and unauthorized access.

Related:What Is Leased Proof-of-Stake (LPoS)?

How Does Offline Staking Work?

Offline staking is a blockchain-based procedure that enables crypto holders to participate in the network’s consensus and validation processes without having to always keep their money online.

In this staking mechanism, users offer a third-party staking mode – normally run by a staking pool – to authenticate transactions and generate new blocks. The primary innovations are the safe storage of private keys and offline staking operations.

Participants minimize the chances of online hacking attempts by storing their staking assets in hardware wallets and cold storage options. Users have to set up a skating wallet and create a Staking node, including information about the network connection and Security settings, to begin their offline staking operations.

Additionally, all participants need to indicate their intention to stake when they move a predetermined quantity of tokens from their normal wallet to the staking wallet. At that point, the staking node joins the consensus procedure.

On that note, participants earn staking benefits in exchange for their participation, normally as extra tokens. By lowering vulnerability to online risks, offline staking enhances security and attracts users who want to earn rewards without sacrificing any asset security.

How Are Staking Rewards Distributed In Offline Staking?

The distribution of staking rewards in offline staking normally follows a predetermined protocol set by the blockchain network.

When a user assigns their tokens to a validator, they contribute to the total staked amount that is controlled by the validator. On behalf of the delegators, the validator participates in the block generation and validation process. The validator gets some of the block rewards in exchange for their work and the contribution of stakes that have been delegated.

Consequently, the delegators get offline staking rewards based on the specific reward distribution mechanism of the staking pool. Normally, the model considers variables such as every participant’s cumulative quantity of tokens staked and the length of their staking commitment.

While some of the networks use a performance-based strategy that compensates the participants according to the validator’s effectiveness and successful block validation, others might adopt a proportional distribution strategy where the payments are distributed to the delegators subject to their stake percentage.

Related:MetaMask’s Latest Offering: Staking Service for Ethereum Validators

Crypto staking

Crypto staking
Crypto staking

Advantages Of Offline Staking

Offline staking has multiple benefits, including boosted security and convenience for the crypto holders.

The boosted security achieved by strategies such as cold storage and the use of hardware wallets is one of the main benefits. Users can easily lower the risk of hacking attempts by restricting their exposure to online threats by staking funds offline.

Also, offline staking strikes a compromise between users’ ability to earn rewards and the security of their holdings by enabling them to assign staking tasks to third-party nodes while keeping control of their assets. The strategy offers users freedom and accessibility by enabling them to stake their crypto without needing continuous internet connectivity.

By enabling users to participate in consensus processes without using energy-intensive mechanisms, offline staking contributes to a more sustainable and eco-friendly approach to blockchain validation. This aligns with the massive global campaign on green and energy-efficient practices in the crypto sector.

Related:Polkadot Staking: How Does It Work?

Risks That Come With Offline Staking

Offline staking provides enhanced security and flexibility but it poses risks related to the possible loss of rewards, the need for technical proficiency, and reliance on third-party nodes, needing careful consideration by the users.

One major issue is the potential loss of staking benefits because of assigning duties to unaffiliated nodes. To guarantee reliability and equitable reward distribution, users have to keenly select trustworthy and reliable staking pools and nodes.

Moreover, the security of offline storage techniques, such as hardware wallets or cold storage, is important since any breach of the devices might result in the loss of staked assets. Another issue of concern is the complexity of setup and management, which calls for technical expertise and might act as a hindrance for the less experienced users.

Additionally, the general efficacy of offline staking tactics may be affected by the inability to respond quickly to modifications in staking parameters or network upgrades. Despite the risks involved, with careful consideration and adherence to the best practices, offline staking remains an attractive option for anyone seeking to balance passive income and security in crypto.

How Jumper Exchange Is Transforming The Crypto Bridge Landscape

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We all know how fast the cryptocurrency market is changing, and that’s why the need for efficient, secure, and versatile exchange platforms is more pressing than ever.

Amidst this dynamic backdrop, Jumper Exchange is carving a niche for itself, standing out as a groundbreaking solution in the crypto bridge landscape. You don’t trust us? Find out more on Jumper Exchange in the following.

The Challenge In Crypto Exchange

The burgeoning cryptocurrency market is a labyrinth of tokens, chains, and exchange platforms.

Traders and investors often find themselves confined by limited token compatibility, high fees, and complex bridging processes between different blockchains.

The landscape, although rich with potential, is fraught with barriers that hinder the fluid movement of assets, ultimately stalling the promise of a truly interconnected crypto ecosystem.

Join Jumper Exchange

Jumper Exchange emerges as a beacon of innovation, addressing the core challenges that have long plagued crypto exchanges.

Taglined as “Crypto’s Everything Exchange”, Jumper Exchange isn’t just a platform, rather it’s a comprehensive solution tailored to the modern crypto enthusiast’s needs.

Key Features Of Jumper Exchange

This platform has many features, one of them being the universal token swap. Jumper Exchange empowers users to swap any token, removing the limitations set by token-specific or chain-specific exchanges. This approach ensures that your trading is not confined by the boundaries of specific networks.

Aside from its remarkable token swap, it has extensive network support. With support for 18 chains, 14 bridges, and 34 DEX & DEX Aggregators, Jumper Exchange’s infrastructure is an extensive web that spans the vast majority of the crypto landscape. This extensive support ensures that users can navigate through different networks with ease, significantly enhancing the fluidity of asset movement.

Related:Decentralized Exchange Hashflow Onboards

However, Jumper Exchange is not just about connecting various points in the crypto sphere. It’s about finding the most efficient route for your transactions. The platform’s intelligent routing system ensures that your swaps are not just possible but are executed most efficiently, optimizing for speed and cost.

And the most important feature of this platform is its user-centric design. At the heart of Jumper Exchange is a commitment to user experience. The platform is designed with a keen understanding of the trader’s journey, ensuring that every touchpoint, from the interface to the transaction process, is intuitive, secure, and seamless.

Transforming the crypto bridge landscape

Jumper Exchange is a transformative force in the crypto bridge landscape. Jumper Exchange is not only breaking down the age-old barriers inherent in token exchange but establishing a platform where assets can move across chains and platforms with relative ease.

With the development of the cryptocurrency market, platforms such as Jumper Exchange are becoming more and more important. It is not anymore a question of pace but rather the energy that will move and generate its own forward momentum, driving forces shaping attitudes and expectations and creating vistas where cryptocurrency reaches maturity fulfilling all desires for it.

Jumper Exchange is more than just another company satiating the latest requirements of a growing crypto market. It’s anticipating the future ones. It is a place not only for the current crypto enthusiast but also where the future of decentralized finance lies. Steering the wheel of the crypto bridge landscape, Jumper Exchange is prepared to be at the frontline as cryptocurrency’s terrain changes.

Is Crypto iGaming On The Rise?

https://e-cryptonews.com/is-crypto-igaming-on-the-rise/

It is actually quite simple to see if crypto casinos are on the rise. A few years ago, cryptocurrencies entered our lives. They were already used by people, but they became more popular. People bought crypto coins, made savings, and made gains from them. After the popularization of crypto coins, most sectors started to be paid with crypto coins. One of these sectors was, of course, the iGaming sector.

Because of the different advantages offered by cryptocurrencies, people preferred this method and started to enter the lives of these people even more. New crypto casinos are opening every day, so people have learned that they can pay with cryptocurrencies. And at the same time, crypto coins are advertised. Today we will talk about why crypto-iGaming is on the rise and the advantages of cryptocurrencies. If you want to learn about them, keep reading this article.

Bitcoin

Bitcoin

Advantages of Cryptocurrencies

First of all, one of the advantages of cryptocurrencies is that transactions are very fast. But what exactly does this mean? When you choose a traditional payment method, you need to go through a long process; you need to verify your identity; if you do not have a bank account, you need to open one; and these processes can sometimes take weeks. But this will not be the case when it comes to paying with cryptocurrencies.

Cryptocurrencies inherently benefit from blockchain technology, and thanks to this technology, your financial information is stored in a decentralized manner. This allows your purchases to take much less time when having crypto entertainment. You do not need to wait as long as 2 hours with traditional methods, and your business can be completed within 24 hours. In addition to the transaction speed, the transaction fee also attracts people’s attention.

Even if these transaction fees vary at every online casino, it costs much less to deposit and withdraw money with cryptocurrencies. When you look at traditional methods, the fees for these deposits may be too much for you, so you can pay with cryptocurrencies or withdraw your money in the form of cryptocurrencies. If online casinos do not charge any fees, it is free to make transfers with digital currencies.

One of the advantages of paying with cryptocurrencies is that people can have as much anonymity as they wish. So how exactly does it happen to have anonymity? As we mentioned earlier, transactions made with cryptocurrencies are stored in a decentralized way thanks to blockchain technology. When we say decentralized, you really need to think literally; this information is not stored in any specific location.

And thanks to blockchain technology, they try passwords, and the possibility of decryption is close to impossible. Since you are trading on a decentralized system, you also have the chance to hide your identity if you want. This is very important for players who care about their privacy. You will not have such an option when making traditional payments in traditional ways.

You will need to enter your financial and personal information and, if necessary, link your bank accounts to your online casino accounts. This can create a sense of insecurity in some people’s minds. If you want to make safer purchases, you can try using cryptocurrencies.

Should You Play at Crypto Casinos?

Sometimes, it can be difficult for people to make such changes. And you might be one of those people who sticks to their routines. But we suggest you try iGaming sites with cryptocurrency to enhance your gambling experience. And why are we saying this? Since cryptocurrencies do not have any centers, it will not be possible to limit them. In other words, cryptocurrencies can be used unrestrictedly in any country.

This means that technically, wherever you are in the world, it is not actually illegal to play in casinos where you can play games with cryptocurrencies. Because the states around the world do not yet see cryptocurrencies as a real currency, and no regulation has yet been made about it, Therefore, sites where you can gamble with cryptocurrencies will be more comfortable.

How to Choose a Crypto Casino

Actually, the answer to this question is quite simple. Most of the trusted casinos have started to add payment methods with cryptocurrencies to their own structures. But if you want, you can only choose casinos where you can shop with cryptocurrencies. For this, if you enter and look at the payment methods of the site, you can easily see whether payment can be made with cryptocurrencies.

It is also important that the cryptocurrency you use is valid on the site. Apart from that, if you doubt the security of the site, we recommend that you check its license. Apart from the license, people are chatting about whether these sites are safe or not in forums on the internet. You can get an idea about the security of the site you want to browse here and play.

Big-Tech Companies Like Amazon And IBM Lead Generative AI Boom With New Tools

https://e-cryptonews.com/big-tech-companies-like-amazon-and-ibm-lead-generative-ai-boom-with-new-tools/

A deep dive into the transformative space of generative artificial intelligence (AI) helps in exploring big-tech innovations and what the future has to offer for the budding space. In the past year, generative AI has gained lots of traction within the global technology space.

This is mainly because of its advanced ability to change how individuals and businesses approach problem-solving, creativity, and decision-making. Notably, the versatility and efficiency of generative AI applications have resulted in their adoption across many sectors of the global economy, from entertainment to healthcare, which is seen in its rapidly growing market size.

As of 2023, the global generative AI market was valued at $12.1 billion; however, the figure is expected to rise to $119.7 billion by 2032, according to various projections.

Furthermore, in 2022, a time when discussions surrounding the technology were yet to become mainstream, generative AI startups managed to raise $2.6 billion in 110 deals, a number that increased to almost $50 billion in 2023, with prominent firms like OpenAI, Inflection AI, and Anthropic securing several billion dollars each.

Another notable indicator of increasing interest in this space is the growing number of searches related to the term “generative AI.” As can be seen from market charts, following the release of OpenAI’s ChatGPT platform, interest in the technology spiked rapidly – peaking in June – specifically across countries like Hong Kong, Singapore, India, China, and Israel.

generative AI

generative AI

Thus, as the world of AI-enabled tech keeps evolving, its application scope also expands, leading more firms to integrate these technologies into their operations.

The founder and CEO of ChainGPT.org, Ilan Rakhmanov, said:

“Most well-known brands can now afford to engage with generative AI and use it as a competitive edge. Also, we know what generative AI is capable of, but we still have a limited understanding of how it will evolve in the long-term future as more and more organizations and individuals leverage the technology and as a growing number of models train on its associated data sets.”

ChainGPT.org is an AI infrastructure provider for Web3 projects and blockchain entities.

Related: How will Artificial Intelligence Affect the Development of Cryptocurrency Projects? (Roundtable Interview)

Mainstream Entities Exploring Generative AI

At the turn of 2024, JPMorgan announced the release of DocLLM, the generative large language model (LLM) customized for multimodal document comprehension. It can allegedly analyze and process data linked with a wide range of enterprise documents – from invoices and forms to contracts and reports – mostly having complex combinations of layout and text.

What makes DocLLM unique is its operational design, since it eschews the massive reliance on image encoders common among existing multimodal language models. Instead, it mainly focuses on bounding box information, integrating spatial layout structures more effectively. This is achieved via a new disentangled spatial attention mechanism that refines the attention process in the classical transformers.

Amazon has also enhanced its generative AI game by integrating a new tool to assist the sellers on its platform. It generates accurate and engaging product descriptions, considerably easing the process of listing new products. It is already popular among most Amazon sellers.

Mistral’s new sparse mixture of experts, or SMoE model, has gained lots of traction in the developer community thanks to its efficiency, speed, and extensive feature set. This model is open-source based, making it a go-to tool for developers building unique language models with limited resources.

One subsidiary of Google, DeepMind, has also continued to become a considerable player in the generative AI arena. Their advancements are clear in services such as Google Translate and Google Brain. A significant recent contribution is the launch of Bard AI, a chatbot mirroring the capabilities of ChatGPT and enabling users to generate high-quality text and lots of creative content.

Amazon Web Services (AWS) has now made its mark with the launch of Bedrock, a service that provides access to various models from multiple AI firms. Bedrock is specifically notable for its extensive developer toolsets, which are instrumental in building and scaling generative AI applications.

Cloud-based software firm Salesforce has integrated generative artificial intelligence algorithms – collectively known as “Einstein GPT” – into its customer relation management platform, hence considerably boosting customer engagement and customization.

Eventually, IBM released its Watson AI platform, which integrates generative AI techniques with machine learning (ML) and natural language process (NLP).

What Does The Future Hold For Generative Artificial Intelligence?

Although the future of generative AI appears to be poised for transformative growth, the industry is still navigating an unchartered terrain filled with promise and challenges. Based on Rakhmonov, the trajectory for generative AI-driven technologies still mainly depends on the development of models that are not just reliable but also introduce tangible value to their users, adding:

“The future of generative AI is somewhat uncertain as it evolves with wider adoption and more data. However, the ‘black-box’ nature of many AI models poses a significant challenge, as it could lead to problems in verifying the reliability of data and insights. Without clarity on how AI models produce outputs, public support for mainstream AI could wane.”

On a somehow similar note, Scott Dykstra, chief technical officer and co-founder of Space and Time – an AI-enabled, Microsoft-backed decentralized data warehouse – told reporters that although there is a lot of uproar surrounding generative AI, the reality of the matter is a lot more nuanced.

Dykstra said that, as everything stands now, most Fortune 500 firms are navigating the generative AI space instead of conservatively, which is shown by the fact that most of them are contented to “simply add an AI chatbot to their website and call it a day.” He then stated:

“The problem is that enterprises have to operate at enterprise scale, and today, it’s really expensive to do so. While GPT-4 is in a clear lead in terms of quality of inference, it’s also quite expensive for the workloads of enterprise production-grade products. Across the board, we need to see token prices driven down, faster inference, and more tools around automating retrieval augmented generation.”

We need more debate about generative AI

We need more debate about generative AI
We need more debate about generative AI

Issues That Affect The Growth Of Generative AI

As noted earlier, the evolution of generative AI is not without challenges. Dykstra thinks a critical technical challenge for generative models (such as LLMs) will be the speed of their respective token streams. He added:

“For a real LLM-based internet, what we need is sub-second inference speed, which is incredibly challenging.”

On the development side, Dykstra thinks that while progress has been made when it comes to AI-driven coding tools, a notable breakthrough in ‘no-code’ solutions is yet to be seen. A no-code solution is a software development strategy that needs minimal programming skills to build an application rapidly.

He stated:

“Numerous projects are utilizing GPT-4 for coding within large codebases, but the no-code design remains unsolved due to the complexity of contextualizing the entire codebase.”

On the other hand, Rakhmanov, has his focus set on the wider landscape influencing generative AI. He thinks that regulatory actions from top governments will be an important factor to consider as they stand to define acceptable AI practices.

Furthermore, he thinks that we might also be on the precipice of a global race for AI dominance, mostly between major tech operators and nations like China and the United States. He noted:

“Computing power and chip production are among the crucial conversations that will shape AI’s future.”

Therefore, as we move into a future that is powered by technologies like machine learning (ML), artificial intelligence (AI), and NLP, it will be interesting to see how the global digital landscape will keep evolving and growing over the coming ten years.

Tokenomics: Understanding The Economics Of Cryptocurrencies

https://e-cryptonews.com/tokenomics-understanding-the-economics-of-cryptocurrencies/

Cryptocurrencies go beyond mere coin names; many possess self-sustaining micro-economies governed by different terms and regulations. Tokenomics encompasses many factors that collectively influence the trajectory of a project’s native cryptocurrency. Understanding these elements provides insight into a crypto’s sustainability, dynamics, and potential influence. This article delves into the intricacies of tokenomics, examining its components and how they shape a cryptocurrency’s supply and demand dynamics.

What Is Tokenomics?

Tokenomics combines two words: “token” and “economics.” It refers to how a cryptocurrency project manages the supply and demand of its tokens. This concept covers various aspects, including a crypto token’s creation, features, distribution, and overall economics.

What Is A Crypto Token?

Let’s break down what a crypto token is. It’s a digital unit of currency created by cryptocurrency projects on an existing blockchain. Like traditional currencies, these crypto tokens have a specific value and can be traded.

Now, when we talk about the economics of tokens, it’s essential to understand how it differs from traditional economics. In traditional economies, governments often create more money when faced with challenges like wars or droughts. This can lead to a decrease in the value of existing money over time.

In contrast, crypto projects follow predetermined and algorithmically created token issuance schedules. It means we can accurately predict the number of coins in circulation at any given time. The distribution of these coins among different stakeholders is also planned. While changing the issuance schedule and distribution plan is technically possible, implementing it is challenging.

Core Features Of Tokenomics

Now, let’s explore the essential features of a cryptocurrency that significantly impact how much people want it and how much of it is available.

Issuance

Issuance is the process of creating a new token. It is a new concept that did not exist before. Before you indulge yourself in studying tokenomics, here are some essential questions that need to be asked:

  • How are tokens issued?
  • Which consensus mechanism is followed by the token?

To illustrate this, let’s look at Bitcoin (BTC) and Ether (ETH) in this tokenomics analysis.

Bitcoin operates on a proof-of-work (PoW) consensus mechanism. Miners earn new BTC coins by adding new blocks to the blockchain, with the creation rate predetermined (discussed later is the concept of halving).

Tokenomics: Understanding the Value of Crypto

Tokenomics: Understanding the Value of Crypto

In contrast, the Ethereum blockchain uses a proof-of-stake (PoS) consensus mechanism. Validators lock up 32 ETH to validate transactions and create new blocks. The newly minted ETH is distributed to active validators based on their performance at each epoch, approximately every 6 minutes.

Similar issuance mechanisms are observed in other layer-one (L1) and layer-two (L2) tokens like Litecoin (LTC) and Cardano (ADA), aligning with BTC and ETH practices.

However, not all cryptocurrencies have intricate issuance methods. Some projects generate their entire token supply at Genesis and typically offer them through initial coin offerings (ICOs).

Related:DeFi Wallets and Initial DEX Offerings

Circulating Supply, Maximum Supply, And Market Capitalization

Tokenomics is all about understanding a cryptocurrency’s maximum supply and circulating supply. Think of it as the rules governing how many coins exist and how many are actively used.

Let’s take Bitcoin (BTC) as an example. BTC has a set limit of 21 million coins. It means there will always be 21 million Bitcoins in existence. This limited supply is one reason why BTC is considered valuable. People see it as a way to protect their money from losing value over time, especially inflation. Some even call BTC “crypto gold” because it has a limited supply, like gold.

On the other hand, Ethereum (ETH) doesn’t have a maximum supply. It can keep producing coins indefinitely. This difference in supply rules can affect how people view and use these cryptocurrencies.

When we talk about the circulating supply of a token, we mean the number of coins currently used or actively traded. To determine how valuable a cryptocurrency is in the market, you can multiply its price per unit by its circulating supply. This gives you market capitalization, like the total value of all the cryptocurrency coins in circulation.

Distribution

Many cryptocurrency projects share precise information about how they distribute their tokens. Typically, they give tokens to people who invested early or to venture capitalists to raise funds. They also reward the project’s founders and team members to motivate them.

The distribution of tokens might happen gradually over time, with specific periods where the tokens cannot be sold immediately. It helps ensure that the recipients are committed to the project. When these tokens are released into the market, it can affect the token’s price, especially if a holder decides to sell a large amount at once.

Burning

Burning in the world of cryptocurrencies means sending them to a wallet address that can’t be reaccessed, essentially taking them out of circulation.

When tokens are burned, it helps control inflation by reducing the total supply of the cryptocurrency that’s actively circulating. The specific way token burning works can vary from one cryptocurrency to another. Some projects burn a certain percentage of their total supply randomly or at scheduled intervals. For example, in specific blockchains like Ethereum, a part of every transaction fee users pay is automatically burned.

Crypto Burning

Crypto Burning
Crypto Burning

It’s important to note that not all cryptocurrencies have burning mechanisms; for instance, Bitcoin (BTC) doesn’t. However, some cryptocurrencies can undergo upgrades to introduce a burning mechanism. Ethereum, for example, implemented this with the ‘London upgrade’ in August 2019.

Related:Top 5 Strangest Crypto Narratives Of 2023

DeFi Incentives

DeFi, or Decentralized finance platforms, lets people earn rewards by putting their tokens in pools. Doing this can change how many tokens are available and make it less likely for people to sell them.

Utility

A token’s value depends on how useful it is. This usefulness affects how much people want it, influencing the token’s price, market value, and how much of it is in circulation (for instance, with ETH, where some get burned as gas fees).

Let’s take ETH as an example. People want ETH because they need it to pay transaction fees on Ethereum. If you don’t have ETH in your wallet, you can’t use DeFi platforms, buy NFTs, or play blockchain games on Ethereum. Tokens also have other uses, like making payments, participating in governance, staking crypto, using them as collateral, or getting involved in yield farming.

Sometimes, investors also buy tokens because they think the value will increase. It often happens when the market is doing well, and investors want to make money by trading cryptocurrencies.

Utility in Crypto Context

Utility in Crypto Context
Utility in Crypto Context

Technical Analysis

Distinct technical features can set one cryptocurrency apart from others.

Every four years, Bitcoin experiences a process known as halving. During this event, the amount of new BTC produced with each block is reduced by half. This halving process is designed to decrease the inflation of BTC over time.

On the other hand, the staking of Ethereum (ETH) has led to a rise in inactive ETH tokens. As more ETH gets staked, fewer tokens become available in the market. This reduced supply in the market can positively affect the prices of ETH.

Related:Predictions That Could Shake Up the Cryptospace in 2024

Tokenomics Vs Token Mechanics

In cryptocurrency, two essential things make a token successful: token economics and token mechanics. Tokenomics is about making a limited number of tokens and encouraging people to keep them. It’s like planning how the tokens will work and be used.

On the other hand, token mechanics deal with the technical side of things. It means using smart contracts to control how the token behaves, using a blockchain to keep track of transactions, and having a system to ensure transactions are valid. It’s like setting up the rules and systems that make the token work properly.

Conclusion

Tokenomics is a crucial concept for anyone entering the crypto world. It refers to the key factors influencing a token’s value. Remember, there’s no magic formula; you must consider and analyze multiple factors together. Combining tokenomics with other tools for fundamental analysis helps you make well-informed decisions about a project’s potential and its token’s price in the future.

What Is The Sandwich Attack Concept In DeFi?

https://e-cryptonews.com/what-is-the-sandwich-attack-concept-in-defi/

Sandwich attacks are becoming quite common types of cyber manipulation faced in the decentralized finance (DeFi) space. Therefore, it is crucial to familiarize oneself with its basics. Let us explore everything there is to learn about sandwich attacks in this extensive review.

One of the notable setbacks that come with popularity is exposure to the risk of attracting the interest of manipulators looking for personal gains. In the same case, the evolving DeFi space has become vulnerable to different attacks since it keeps growing and gaining mass adoption.

Among the usual attacks encountered by the sector are sandwich attacks. The attacks pose great risks to crypto traders and investors, together with their assets. Let’s learn the basics, how it works, and how to protect yourself against it.

The Sandwich Attack Concept

The sandwich attack is a type of digital exploitation that features manipulating the price of a specific and targeted asset. While decentralized protocols and services are the main targets of sandwich attacks, they are just malicious activities where the exploiter places two transactions before and after the transaction of the victim.

For instance, when someone attempts to trade one kind of crypto (let’s call it A) for another (B) to make a large purchase, a trader with a greedy goal utilizes a sneaky bot to spot the trade and purchases the B crypto before the large trade is confirmed.

That activity causes the price of B to rise for the original trader, which results in higher costs. The bot then profits by selling the Y crypto at a higher price. Interestingly, these attacks are common since blockchains are public, meaning they let anybody see transactions in the pool unless they have a direct link to a mining pool.

Furthermore, smart contracts might have unrestricted functions that execute trades, such as claiming LP reward tokens and quickly swapping them for another token by using a decentralized exchange (DEX).

Related:Dr. Shira Brezis of Redefine Explores DeFi Security Issues and More

What is a DeFi Sandwich Attack?

What is a DeFi Sandwich Attack?

Sandwich Attacks: Scenarios

So far, it has been seen that the exploiters who adopt sandwich attacks for their malicious schemes do that through certain strategic ways. Therefore, let us explore the scenarios where sandwich attacks can take place.

The Case Of A Liquidity Taker Vs. Taker

In this case, different liquidity takers might target one another. Imagine a regular market taker with a pending transaction on the blockchain. The attacker seizes the opportunity by sending extra transactions – back-running and front-running – to make a profit.

Later, the miners decide which transaction to approve first. In case the attacker pays a higher transaction cost, their malicious transaction stands a greater chance of being prioritized. While success is not guaranteed, it shows how a sandwich attack can be attempted quite readily.

The Case Of Liquidity Provider Vs. Taker

In this scenario, a liquidity provider can target a liquidity taker using a similar strategy. The first steps are the same, but the malicious actor has to execute three actions:

  1. They get rid of liquidity to increase the victim’s slippage.
  2. They re-add liquidity to ensure the original pool balance is restored.
  3. They swap asset B for A to reset the asset balance to its original pre-attack state.

Withdrawing liquidity before the victim’s transaction prevents the commission fee for that transaction. Although it harms the take financially, since liquidity providers normally earn a small fee for pool activities, the attacker sacrifices their commission in the process.

Examples Of Sandwich Attacks

Previously, the sector recorded a sneaky Ethereum (ETH) validator making off with over $25 million in crypto by swindling an Ethereum MEV bot engaged in sandwich trades. The stolen funds were dispersed among three addresses:

  • A large share of over $20 million in 0x3c98;
  • A smaller amount of about $2.3 million in 0x5b04;
  • Another amount of nearly $3 million in 0x27bf.

Additionally, the PEPE token, renowned for its inception inspired by memes, serves as another illustration of sandwich attacks and front-running concerns. In its earlier stages, when the PEPE network faced low liquidity and limited recognition, it experienced a sudden surge in popularity following a tweet that indicated a PEPE bag purchased at $250 had surged to $1.5 million.

That tweet fueled lots of excitement and interest in the PEPE token, resulting in a surge in its value. Nonetheless, an address leveraged a sandwich attack bot to front-run PEPE buy transactions, raising PEPE token prices.

The attacker also manipulated CHAD token prices using bots, incurring more than $1.28 million in transaction fees within 24 hours. The attacker profited by over $1.4 million at the expense of traders who bought these tokens at inflated prices.

Related:Primary Challenges Of DeFi Every Consumer Must Know 

Identifying A Sandwich Attack

To be able to identify a sandwich attack, it is crucial to remember this:

  • Always be on the lookout for abrupt changes in the price of your target asset. Sandwich attacks will cause abrupt shifts in asset prices during your trading process. In case the price of the asset you want to buy seems to change more than expected, it might be a sign of an impending attack.
  • Take note of insulation slippage rates, since they can be a signal for sandwich attacks. An increase between the executed and expected prices might indicate the occurrence of a sandwich attack.
  • Normally, unexplained transaction delays can also be a way to identify sandwich attacks. In case your trades encounter unexplained delays, it might be a notable sign of interference, as sandwich attacks can disrupt smooth operations and transactions.

Nevertheless, potential traders need to take note of the following to help protect themselves against sandwich attacks.

  1. Time your moves wisely, avoiding busy hours and extensive market swings.
  2. Use the tools that keep an eye out for all unexpected twists, even if your trade does not go as planned.
  3. Check every detail before making your move – know your rates, fees, and amounts.
  4. Stay safe on the crypto protocols, and do not use insecure channels or networks.
  5. Utilize liquidity pools that block the tricky moves that involve paying higher fees.

The Takeaway

There is no doubt that the rising rate of sandwich attacks shows the rapid increase of security challenges in the world of decentralized finance (DeFi). That calls for the implementation of important measures to stop the spread of strategic exploitations.

While that has not yet been reviewed, DeFi users are advised to familiarize themselves with these attacks, watch keenly, and use the stated protection measures to avoid falling prey to these criminals.

How Can Layer-1 Blockchains Solve The Blockchain Trilemma

https://e-cryptonews.com/how-can-layer-1-blockchains-solve-the-blockchain-trilemma/

Blockchain technology is facing a growing centralization trend, which might compromise its core principles. Some layer-1 blockchains are designed to set a new standard supported by the decentralized ethos.

As the centralization trend in blockchain technology keeps growing, the community requires new platforms loyal to the principles of decentralization. On that note, Callisto Network’s layer-1 blockchain provides a viable solution via decentralized governance, community focus and on-chain democracy.

Now that blockchain technology has been around for ten years, a worrying trend is coming up – the growing centralization of networks. Major blockchain networks, like Ethereum and BNB Chain, prioritize speed over decentralization and security. While it might enhance performance, it risks compromising the core principles of blockchain technology.

As the industry slides toward centralization, issues like stifled innovation, reduced security, and depletion of user autonomy arise. The concentration of power seems to contradict the inherent security principles of blockchain and they hinder the fertile ground of ideas and developments that a decentralized ecosystem boosts. The consequences possibly hinder the technology’s growth and mass adoption.

Over 13 years after its introduction, the blockchain sector is yet to achieve the vision of an on-chain democracy. Arising from Ethereum’s heritage, Callisto Network, a layer-1 Ethereum-compatible blockchain, unveils innovation by using practical solutions to issues of centralization that are dominant in the current major networks.

Decentralization For The Masses

Callisto Network’s distinct community-owned treasury network, which got 10% of the block rewards, represents a move toward democratization and inclusivity in the blockchain sector. The treasury played an integral role in Callisto Network’s launch approach, ensuring that it steered clear of initial Coin offerings (ICOs) and pre-mined coins and instead went for a more decentralized launch.

By unleashing an airdrop to the Ethereum Classic community, Callisto Network marked its first approach towards fairness and widespread participation. Striving to build upon that promise, Callisto Network is getting ready to launch its governance model, which will give the whole community control over the treasury.

Callisto Network aims to overcome the blockchain trilemma between decentralization, scalability and security. Source: Callisto Network

Callisto Network aims to overcome the blockchain trilemma between decentralization, scalability and security. Source: Callisto Network
Callisto Network aims to overcome the blockchain trilemma between decentralization, scalability and security. Source: Callisto Network

By empowering the community to control its treasury, Callisto strives to guarantee that the network resources are used in various ways that reflect the collective will of its users, not the interest of just a few. Callisto Network’s innovative on-chain democracy (COD) ecosystem is not simply about voting on proposals; it is an extensive network featuring the whole governance process.

Related:What are the Blockchain Technology Use Cases? We Talk to the Experts (Roundtable Interview)

From proposing new ideas to engaging in various debates and discussions within the community, COD empowers all voices to shape the network’s future. It represents a move toward democratization and inclusivity in the blockchain industry. The aim is to become the first “self-funded, self-sustainable and autonomous blockchain.”

Focusing previously on blockchain security, Callisto Network has contributed to securing more than 335 crypto projects through smart contract audits. The network keeps exploring new ways to scale the blockchain network effectively without having to give up on decentralization, using new technologies like artificial intelligence (AI) to enable quicker and highly accessible smart contract audits.

In its pursuit of constant innovation, Callisto Network is transitioning to a proof-of-stake (PoS) consensus mechanism. The strategic move strives to boost energy efficiency and scalability, further solidifying the network’s commitment to a sustainable and decentralized blockchain network.

With a strong commitment to decentralization, Callisto Network presents a compelling model for the future of the blockchain industry. Its primary focus is on community-powered governance, on-chain democracy, and a community-owned treasury network that addresses the centralization worries affecting major blockchain ecosystems.

This strategy realigns with the original ethos of blockchain and returns the sector to its decentralized roots but also boosts a highly secure, advanced, and user-focused environment.

Once the issue of trilemma is resolved, experts believe blockchain will enjoy mass adoption in nearly all sectors of the global economy.

Bitcoin ETFs Sliding Away From The Ideals Of Crypto – Blockchain Executives

https://e-cryptonews.com/bitcoin-etfs-sliding-away-from-the-ideals-of-crypto-blockchain-executives/

Billions of dollars have flowed into the United States spot Bitcoin ETFs, but some crypto executives say the instruments come as a departure from crypto ideals. Money flowed into ETFs in the first week of trading.

But despite their massive popularity, some of the crypto executives allege these instruments violate the ideals that form the foundations of crypto.

The US Securities and Exchange Commission approved many spot Bitcoin ETFs for the first time on January 10, 2024, and they started trading on January 11. Trading activity showed there was a large pent-up demand for these products, as they recorded over $10 billion in trading volume over the first seven days. Moreover, the Bitcoin ETF market saw at least $782 million of net inflows of capital in the first two days of trading.

But despite the proven popularity of the financial instruments, some of the executives at top crypto firms are urging investors to proceed with caution, alleging that ETFs might result in greater centralization in the crypto sector and will not be required in the future anyway.

Executives Have Their Say On Bitcoin ETFs

Reporters spoke to Andy Bromberg, CEO of wallet developer Eco, who alleged that ETFs might give traditional financial institutions excessive influence over the market. Bromberg stated:

“You are when you buy into one of these Bitcoin ETFs, giving Wall Street money to buy Bitcoin with, [and] they own the Bitcoin, and you own a piece of paper that says you have a share in this.”

He alleged that it was “stepping away from the ideals” that Bitcoin was founded and supported upon:

“There is a world where, if all people entering the industry care about and think about is price and not what this technology actually does, they’ll buy into these Bitcoin ETFs. And one day, these Wall Street institutions will own 70% of the Bitcoin in circulation […] I’m not so sure that is the thing that we were trying to build.”

Bitcoin ETF inflows for Jan. 11–12. Source: Eric Balchunas on X, citing Bloomberg Terminal data

Bitcoin ETF inflows for Jan. 11–12. Source: Eric Balchunas on X, citing Bloomberg Terminal data
Bitcoin ETF inflows for Jan. 11–12. Source: Eric Balchunas on X, citing Bloomberg Terminal data

Bromberg called Bitcoin an “incredible thing” but claimed that the ETFs are “Bitcoin with all of the incredible things taken away from it and just leaving the price.”

Related:The Wait is Over: Spot Bitcoin ETFs Now Live for Trading

Despite the criticism, Bromberg alleged that he was happy that the ETFs were approved. Reiterating SEC Commissioner Hester Peirce, he said the decision gives Americans “the right to express their opinions on Bitcoin within financial markets.” Nevertheless, he insisted that the crypto community is facing a critical test after the ETF approvals.

In case crypto users cannot help new investors “take one more step” into self-custody of their funds, “we’re going to end up with a Wall Street-owned financialized asset, same as everything else, and it will have all been for nought.”

When asked about a solution to the issue, Bromberg alleged that developers must:

“Build products that are as easy as investing in the Bitcoin ETF but that allow people to have custody of their own assets and fulfill the promise of crypto.”

The chief technology officer for the Suku wallet development team, Lucas Henning, also criticized the Bitcoin ETFs. Henning alleged that ETFs will inevitably fail to get the attention of the public for a long time since most protocols and cryptos other than Bitcoin simply will not get SEC approval to be put into an exchange-traded fund. Henning said:

“As soon as one thing is done, like the Bitcoin ETF is done right now, people tend to ask the question, ‘What is next?’ And now what is next is potentially the Ethereum ETF. If that gets completed, people are naturally going to ask the question, ‘Are we going to get access to Ethereum DeFi protocols?’ Are we going to get access to those sweet dividends and interest rates and everything possible? And the answer is probably going to be ‘No.’”

Related:Spot Bitcoin ETFs Add Another 10,600 BTC On Day 5

Did The SEC Approve The ETF Due To The Legal Battle?

Henning insisted that the SEC just approved the Bitcoin ETFs after a long legal battle, and even then, the regulator quickly assured investors that other cryptos would not essentially get the same treatment. According to Henning, this suggests that most of the yield in the crypto space will not be available via traditional brokerage accounts.

Henning also insisted that self-custodying the crypto assets will soon become easier than ever before, mostly within the Ethereum network, and this will reduce the need for more ETFs.

He referenced Ethereum Improvement Proposal (EIP) 7212, which will enable on-chain signatures using secp256r1 elliptic curve (also known as “R1”) cryptography. Based on a statement by Henning, most facial recognition software utilizes R1 cryptography, while most of the other blockchains use “K1” instead.

For that reason, there is no way now to sign Ethereum transactions using a face scan or any other biometric data.

Nevertheless, once EIP-7212 is installed in Ethereum layer 2s, users can sign transactions directly with their mobile devices using a face scan without needing to store seed words or utilize a trusted intermediary to countersign the transactions.

As A result, self-custody wallets will become as easy to utilize as brokerage accounts. Henning claimed:

“We’re going to see wallets, and we’re going to see crypto apps that are built for [non-crypto native] users, where you’re not even going to realize that you’re actually using crypto.”

In his opinion, the “wallet paradigm shift” will reduce the appeal of crypto ETFs since the users will no longer need the exchange-traded funds to custody their cryptocurrency.

Other experts in the sector have also commented on ETFs, with some alleging that these funds represent a ‘revolutionary change,’ while others say they are more of a ‘dud.’

100 Days Away: What Does Bitcoin Halving Mean After BTC ETF Approvals

https://e-cryptonews.com/100-days-away-what-does-bitcoin-halving-mean-after-btc-etf-approvals/

The Bitcoin halving has proven to be an integral benchmark for traders trying to time the market, but how could the new spot BTC ETFs impact the trend?

Crypto Twitter has been immersed in the speculation and expectation of the eventual approval of the spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States.

After some turbulence arising from an alleged phony tweet from the U.S. Securities and Exchange Commission, all 10 spot Bitcoin ETFs got approved.

The ETF hangover seems to be over now, and attention can now move to the next big event: the Bitcoin halving. The largest Bitcoin event has less than 100 days to go. The previous halving events have directly correlated with Bitcoin’s bull runs, but could the spot Bitcoin ETFs influence the price of Bitcoin in the coming halving cycle, interfering with short- and long-term Bitcoin price predictions?

What Is The Bitcoin Halving?

The Bitcoin halving is an event that happens nearly every four years, reducing the rate at which new BTC units are generated and earned by the miners in the Bitcoin network. Particularly, miners’ reward for validating and adding the new blocks to the blockchain is reduced by half.

Interestingly, the initial reward began at 50 BTC per block, and after every halving event, it dropped by half. The most recent halving happened in May 2020, reducing the reward by 6.25 BTC per block. The next Bitcoin halving, estimated to happen in mid-April 2024, will reduce the Bitcoin mining rewards to 3.125 BTC per block.

Bitcoin Halving 2024

Bitcoin Halving 2024

The process is programmed into the Bitcoin protocol. It is designed to develop scarcity, mimicking the scarcity of precious metals such as gold. This crypto community closely watches the halving events, as they impact the general supply of Bitcoin and can have some impacts on market dynamics and the value of the crypto.

Bitcoin is still young and has a relatively short history. Most fundamental analysts find it quite hard to offer a specific value because of its novelty and alleged revolutionary factors. Looking at Bitcoin’s history, the halving has had a constant effect on the price of Bitcoin.

Related:Bitcoin Halving: Everything You Need To Know and How To Prepare For It

Halving 2012: Bitcoin Was Declared Dead By Mainstream Media

The first halving happened on November 28, 2012, and reduced the block reward from 50 to 25 BTC. Interestingly, the price of Bitcoin at the time of the halving was $13, peaking the following year at $1,174.

In 2012, Bitcoin was not taken too seriously by the mainstream markets. It was popular among cypherpunks, which nurtured the technology from its infancy. The price of Bitcoin became a marketing tool for the digital asset after it surged above the benchmark of $1,000, making headlines in the mainstream media.

Since Bitcoin was an unknown intangible asset most did not comprehend, it was condemned as dead once the price dropped back to $200. The phrase “Bitcoin is dead” would become common in the media in the following years, but the digital asset remained resilient and survived the criticism.

Halving 2016: The Retail Speculation Bubble

The second halving changed Bitcoin from an underground crypto into a legitimate asset class. The halving happened on July 16, 2016, reducing the block reward to 12.5 BTC. On that note, the price at the time of the halving was $664; the following year, it peaked at almost $20,000.

Retail investors jumped into the new wave of altcoins, pushed by the initial coin offering (ICO) boom, which was made possible thanks to the new attributes provided by Ethereum’s blockchain. ICOs flooded the market, but most were incomplete projects, and some were straight scams, bringing lots of criticism to the crypto market in general.

The rise after the halving was considered a simple retail speculative bubble. Nonetheless, Pandora’s Box had already been opened, and the blockchain sector would arise from that halving event.

Halving 2020: The Arrival OF Smart Money

When the third halving arrived on May 11, 2020, reducing this block award to 6.25 BTC, BTC was valued at $9,734. A new all-time high (ATH) came the following year at $69,045.

The halving cycle caught the attention of several billionaire investors like Paul Tudor Jones and Michael Saylor, co-founder who was the CEO of software company MicroStrategy at the time.

Saylor became the first CEO to hold Bitcoin on his firm’s balance. As the price of Bitcoin increased, MicroStrategy’s stock value increased with it. Saylor’s strategy inspired other prominent businessmen such as Elon Musk.

Musk’s Tesla acquired Bitcoin, and a new wave of funds and firms followed Saylor’s lead to allocate certain percentages of their treasury into Bitcoin. As was the case with the last two halvings, the price of Bitcoin dropped after it hit a new all-time high.

The Halving Cycle Pattern

Throughout the halving cycles, a constant pattern has emerged. There seem to be five stages to a Bitcoin halving cycle:

  • Significant rally before the halving
  • Brief correction
  • Period of consolidation
  • Major bull run
  • Steep correction.

The all-time high happened nearly 18 months post-halving. That represents a simplified yet accurate depiction of the previous three cycles.

PlanB, a popular but controversial analyst in the crypto space, summed up a simple strategy for investors, mostly those not inclined to engage in active trading, which respected the theory of these halving cycles.

The strategy features buying Bitcoin six months before the halving and taking profits 18 months later from its date.

What To Expect For The Imminent Bitcoin Halving

As is the case with the last halving, there is a narrative that Bitcoin’s price will surge higher than the previous bull cycle – and reach a new all-time high. In this cycle, the spot Bitcoin ETF approval was the next milestone the market was expecting.

The forthcoming halving event is less than 100 days away, and market observers are optimistic about the potential of a new Bitcoin all-time high.

CEO of investment analytics company Blockcircle, Basel Ismail, he thinks Bitcoin’s price will increase as the halving gets closer but said the trading activity of the spot Bitcoin ETFs might impact the crypto market.

Ismail compared the gold ETF launch in 2004 and its impacts on the price of gold. A pattern came up where an increase in gold’s price correlated with net gold inflows and decreased with the net outflows, suggesting a feedback loop influenced mainly by cash transactions in the physical gold market.

In his opinion, the spot Bitcoin ETF will mirror the behavior of the gold ETF, possibly acting as an accelerant to Bitcoin’s value and price movements. Massive inflows should positively impact Bitcoin’s value, but that can be a double-edged sword.

Lead-lag analysis shows that inflows can create price momentum and price changes can influence flows, hence stressing on positive and negative market trends. When the gold ETF was launched, the price of gold fluctuated considerably.

Related:Spot Bitcoin ETFs Add Another 10,600 BTC On Day 5

Market charts highlight how gold was trading in a range-bound sideways accumulation zone. Gold failed to break out above certain levels for two-thirds of the year. Every time the momentum surged, the price pulled back into the same price range. As the market kept heating up, the selling pressure appeared to outweigh the buying pressure.

For Ismail, the analysis offers insight into how spot Bitcoin ETF may also impact Bitcoin’s market dynamics. Ismail expects a pullback in the first month after the ETF approvals, saying that the market’s expectations for a quick Bitcoin price increase after the ETF approval were considerably high. He claimed that impatience in the market might result in a quick shift to a pessimistic trend and result in a downside momentum.

Due to the stagnation in market activity, the crypto trader believes that negative trends might lead to news cycles that will pull down the price of Bitcoin. The market will then frame it as an “underwhelming response to Bitcoin ETFs being approved.” For Ismail, the horizontal trend might be caused by two factors: a weak and volatile market sentiment and the accelerant impact of the spot Bitcoin ETFs.

Bitcoin Halving concept

Bitcoin Halving concept
Bitcoin Halving concept

Bitcoin Post-Halving 2024 Prediction

In case the reduced supply of new BC is not accompanied by increased demand, prices might unlikely surge. The spot Bitcoin ETF has dominated all the media attention on the potential inflow of money from traditional to cryptocurrency markets. But what about the retail investors?

Ismael highlighted several signs showing that investor sentiment is improving, including an increase in web traffic to Bitcoin’s Wikipedia page, Google search volume for many Web3 keywords, a new wave of X followers to prominent layer-1 blockchain and tier-1 centralized cryptocurrency exchanges (CEXs) and more.

Even if he forecasts some months of downside pressure for Bitcoin, he expects that Bitcoin will break a new all-time high after the halving, reaching highs of $100,000–$150,000 in late 2025.

Related: Bitcoin’s Potential: Timing Your Entry for Maximum Profits!

Before the spot Bitcoin ETF approval, many predictions have been made. When 2023 reached its end, artificial intelligence applications suggested $120,000 as the average predicted all-time high for Bitcoin. Others have also predicted higher valuations as well.

Multinational bank Standard Chartered forecasts that Bitcoin will hit $200,000 by late 2025, supported by the ETF approval. Others like PlanB, insist that Bitcoin will peak at $532,000 after the halving cycle as highlighted in his stock-to-flow model. ARK CEO and founder Cathie Wood projects that Bitcoin will hit $1.5 million by 2030.

With the arrival of the spot Bitcoin ETF, crypto investors and traders have high morale and trust in Bitcoin’s price for the coming months. Hence, patience is necessary.

How To Avoid The Latest Cryptocurrency Scams

https://e-cryptonews.com/how-to-avoid-the-latest-cryptocurrency-scams/

As cryptocurrencies continue to become increasingly popular, so too do the number of scams. Many people are now turning to cryptocurrencies as exciting investment opportunities. Unfortunately, as a relatively new technology, many people are crypto investment beginners. This can make them particularly susceptible to scams. If you’re interested in investing in cryptocurrencies but you want to avoid getting scammed, you can do a few things.

The Importance Of Avoiding Scams

Falling for a cryptocurrency scam can easily leave you in serious financial trouble. These scams can impact not only your cryptocurrency assets but your other assets as well. If you’re fortunate, legal services will be able to help you get some of your money back. For example, the recent Coinbase lawsuit was able to secure nearly $1 million for members of a class action lawsuit.

However, many victims don’t get the legal justice they deserve and instead just lose a significant amount of money. This is why it’s essential to avoid cryptocurrency scams at all costs.

Related:What Are Impersonation Scams In Crypto?

Know The Types Of Common Scams

The best way to guard yourself against the latest scams is by knowing their most common forms. If you know how scam artists are likely to target you, you’ll be more wary when those types of approaches come up. There are two common strategies that hackers look to use.

First, they’ll try to gain access to your digital wallet or the credentials you use to authenticate yourself. To do this, they’ll try to get information such as your security code, account numbers, or social security numbers. The other way scammers operate is by trying to convince you to transfer your cryptocurrency assets elsewhere.

For example, they may convince you to invest your assets, only to disappear with your funds. Fraudulent investments and business opportunities are two popular scams to look out for.

Be Careful Who You Trust

The key way to avoid cryptocurrency scams is by being careful of whom you trust. There are very few people who should have access to your crypto assets or to the information you use to log in. Anyone else who is seeking to get this information, even outside of cryptocurrency discussions, may be trying to scam you.

A common scam that involves gaining someone’s trust is fraud involving romance. The individual will work to convince the target that they are in a romantic relationship. Once the scammer earns the trust of the target, they’ll start shifting the conversation toward investment opportunities. These scams are so popular that the FTC found that nearly 20% of money reported lost in romance scams was in cryptocurrency.

Cryptocurrency has overtaken bank transfers for payments into investment  scams

Cryptocurrency has overtaken bank transfers for payments into investment  scams

Avoid Suspicious Emails And Websites

You should also be wary about your interactions online. It’s common for scammers to try to learn your cryptocurrency credentials through malicious websites and emails. For example, the scammers may create a fake website that looks like the website you normally use to log into your financial accounts.

They’ll then email you this fake website and pretend to be from your financial institution. Once you supply your information to this fake website, the scammers will record your information.

Always investigate any emails you receive regarding your crypto assets. Check to see where the email came from and whether this is an account officially associated with your crypto lender. You should also avoid clicking on any links from email addresses that you don’t trust. Finally, when opening a website, make sure it’s a secure connection by looking for “HTTPS” in front of the URL rather than just “HTTP.”

Related:How Crypto Scams And Investment Fraud Networks Operate

Do Your Research

The last way to guard yourself against crypto scams is by conducting thorough research. For example, most cryptocurrencies publish a white paper during the development process, which is available to the public. This white paper clearly describes the protocols and blockchains involved with that specific cryptocurrency.

If you can’t find a thorough document that outlines how the crypto network functions, there’s a good chance it’s a less-than-trustworthy cryptocurrency.

You should also look to investigate any team members for investment opportunities. Some white papers will identify the developers behind the project. If it’s an open-source crypto, you can instead look for users on sites like GitHub or GitLab.

In essence, you should be able to find some information about who is actually running this cryptocurrency. If, instead, you find any team members and the white paper is full of errors, you’re likely looking at a scam.

Safely Invest In Crypto

Like all investments, investing in crypto comes with some risk. However, you shouldn’t have to worry about the threat of a scam at the same time. While there are many crypto scams out there, many of them are also easy to spot if you do your due diligence.

Take your time with any investments, conduct thorough research on who and what is involved, and be careful about who you trust. If you can do this, you can feel more comfortable in your ability to avoid a scam.

The Biggest Challenges Crypto Projects Are Facing Today

https://e-cryptonews.com/the-biggest-challenges-crypto-projects-are-facing-today/

Blockchain technology is changing how we think about things like online security and transactions, content ownership, and how the internet is built. The great interest in technology has led to many businesses participating in the ecosystem by creating projects that serve specific needs or solve specific problems.

All the advantages and benefits it provides come with some challenges, one of the most notable being the adoption of crypto projects. If you are creating one, such as a new cryptocurrency, here are some challenges you might have to contend with.

A Lack Of Trust

People must trust a business or its products and services to use them. Sadly, the crypto world has been plagued with several issues over the years that have eroded the trust people have in the whole system.

From high-profile scams to the collapse of some of the biggest businesses in the space, this industry has not given users many reasons to trust it. However, you can turn this around by going back to the basics by providing people with the solutions they want and need, embracing laws, rules and regulations that allow for better regulation of crypto projects, and continuous innovation that shows users you still care about your project.

Onboarding New Users

There is the misconception that crypto is only for those who love tech or know a lot about it. This might be true for some niche products and projects, but it is untrue for the whole ecosystem. Regardless, it still makes it challenging to onboard new users who might not even know your project exists or that it could be beneficial to them.

Crypto businesses are solving this by increasing their brand reach and awareness by leveraging digital marketing strategies. These involve regularly creating targeted, helpful and relevant content that helps everyone understand blockchain in general and specific projects in particular.

You can also hire a marketing agency to help with crypto link building. These efforts will help you rank higher when people search relevant keywords or queries, increasing exposure to your project. It also boosts brand awareness and trust, which helps with the onboarding issue.

Other strategies include influencer marketing, social media marketing, email marketing, giveaways and airdrops geared towards putting projects in front of as many potential users as possible.

Scalability

Blockchain networks are computationally demanding, which makes them inefficient and slow. The issue worsens as the number of users, applications, and transactions increases, which is bound to happen once a project goes mainstream.

The good news is that several projects help solve these issues, specifically slow transactions. Solutions like the Lightning Network, built on top of the Bitcoin blockchain, add a second layer to the network to enable much faster transactions.

Others are dividing nodes into clusters and groups, each responsible for a small set of transactions. The result is overall increased throughput and lower transaction fees.

Related: Blockchain Transactions: A New Era of Financial Services

Blockchain remains one of the most fascinating and impactful technologies of our time. It helps users, developers, and businesses create unique solutions and solve problems that used to be challenging to work out using other solutions. However, building on top of it still presents challenges you need to know about if you venture into the world of blockchain, cryptocurrencies and related technologies.

OBI Real Estate’s AI-Powered Revolution: Nurturing the Future of Smart Property Transactions

https://e-cryptonews.com/obi-real-estates-ai-powered-revolution-nurturing-the-future-of-smart-property-transactions/

In the ever-evolving landscape of real estate, OBI Real Estate is spearheading a transformative revolution, leveraging the prowess of Artificial Intelligence (AI) to usher in an era of smart property transactions. This article delves into the visionary application of AI by OBI Real Estate, exploring how it is shaping the future of real estate transactions, enhancing user experiences, and fostering a more intelligent and efficient property market.

The Genesis Of OBI Real Estate’s AI-Powered Vision:

OBI Real Estate’s commitment to innovation goes beyond the conventional norms of the real estate industry. Recognizing the potential of AI to revolutionize the user experience and streamline property transactions, OBI embarked on a journey to integrate cutting-edge technology into its platform. The strategic infusion of AI into real estate operations marks a paradigm shift, propelling OBI Real Estate into the forefront of smart property transactions.

AI’s Role in Enhancing User Experiences:

At the core of OBI Real Estate’s AI-powered revolution is a focus on enhancing user experiences. Through the application of machine learning algorithms, OBI’s AI systems analyze user preferences, behavior patterns, and market trends to provide personalized property recommendations. This not only facilitates a more user-centric approach but also empowers individuals with tailored insights, making property transactions more intuitive and efficient.

Related:Op Ed: Why the Blockchain is the Future Real Estate

Predictive Analytics For Informed Decision-Making:

OBI Real Estate’s AI algorithms go beyond traditional data analysis. By harnessing predictive analytics, the platform can offer users valuable insights into future market trends. Prospective buyers and sellers can make more informed decisions based on these predictions, leading to a more dynamic and responsive real estate market.

Importance of AI in REAL ESTATE

Importance of AI in REAL ESTATE

AI-Driven Matchmaking In Real Estate:

Smart property transactions are not just about data analysis; they also involve intelligent matchmaking between buyers and sellers. OBI Real Estate’s AI employs sophisticated algorithms to match individuals with properties that align with their preferences, needs, and investment goals. This personalized approach simplifies the property search process, saving time and ensuring a higher likelihood of successful transactions.

Blockchain Integration For Security And Transparency:

In tandem with AI, OBI Real Estate integrates blockchain technology to ensure the security and transparency of smart property transactions. Blockchain’s decentralized and tamper-resistant nature provides users with confidence in the integrity of their transactions. It minimizes the risk of fraud, streamlines the transfer of ownership, and establishes a secure and transparent digital ledger for all real estate dealings.

OBI Coin: The Catalyst For Smart Property Transactions:

OBI Coin, OBI Real Estate’s digital asset, becomes the catalyst for smart property transactions within this AI-powered ecosystem. Operating on a blockchain-based tokenization platform, OBI Coin enables fractional ownership and facilitates seamless, secure, and intelligent real estate investments. This innovative approach ensures that users can engage in smart property transactions with ease, regardless of their level of expertise in the real estate market.

Benefits Of OBI Real Estate’s AI-Powered Revolution:

  1. Enhanced User Experiences:

OBI Real Estate’s AI provides personalized recommendations, creating a more user-centric experience and simplifying the property search process.

  1. Informed Decision-Making:

Predictive analytics empower users with insights into future market trends, facilitating informed decision-making for buyers and sellers.

  1. Intelligent Matchmaking:

AI-driven matchmaking ensures that property transactions align with individual preferences, needs, and investment goals, leading to more successful outcomes.

  1. Blockchain Security:

Integration of blockchain technology enhances the security and transparency of transactions, minimizing the risk of fraud and establishing a tamper-resistant digital ledger.

  1. OBI Coin’s Role in Fractional Ownership:

OBI Coin enables fractional ownership, democratizing access to real estate investments and serving as the digital catalyst for intelligent and efficient transactions.

Conclusion:

OBI Real Estate’s AI-powered revolution signifies a bold step towards the future of smart property transactions. By seamlessly integrating AI and blockchain, OBI is not only enhancing user experiences but also fostering a more intelligent, secure, and transparent real estate market.

As OBI Coin becomes the driving force behind fractional ownership, OBI Real Estate cements its position as a leader in the convergence of AI and blockchain, shaping the future of real estate transactions with innovation and intelligence.

Bitcoin And Gold Correlation Increased In 2023 – Fidelity

https://e-cryptonews.com/bitcoin-and-gold-correlation-increased-in-2023-fidelity/

Bitcoin and gold recorded strong performances in 2023 amid geopolitical uncertainties and rising interest rates.

The correlation between Bitcoin and gold has always attracted interest and debate within financial circles. While both assets are considered stores of value, they display different characteristics and are mostly influenced by unique market factors. Generally, investors have viewed Bitcoin and gold as hedges against different economic uncertainties and inflation. That hedging factor leads to periods of positive correlation between these assets.

Nevertheless, this correlation is not constant, and sometimes, their price movements diverge extensively. Bitcoin, since it is still a new and highly volatile asset, has displayed a higher degree of price fluctuation compared to traditional gold.

Investors mostly monitor the correlation that exists between Bitcoin and gold as part of their risk management and portfolio diversification approaches, recognizing the available benefits and challenges linked to these two unique yet interconnected stores of value in the current financial landscape.

Interestingly, the correlation between Bitcoin and gold increased in 2023, as shown by a recent report from asset manager Fidelity.

Based on the information published by Fidelity, Bitcoin’s price decoupled from its previously inverse relationship with interest rates and even managed to rally despite global rates surging across the world – high-interest rates seem to lower the demand for risk assets. In the past 12 months, gold prices have followed a similar pattern.

“But this past year, we saw a complete decoupling of this relationship as real rates continued to rise (with inflation subsiding and treasury yields screaming higher at one of the fastest paces in history), with bitcoin not only holding steady but then rallying! Could this be due to an idiosyncratic event, such as the anticipation of a spot ETP? Perhaps. But we do not think so, because gold has also been showing similar behaviors recently.”

Related: We talk to William Cai of Wilshire Phoenix About Bitcoin and Gold

Gold And Bitcoin Performance In 2023

In the past year, gold recorded considerable fluctuations, but generally showed strong performance against several major currencies. Over the year, the performance of gold in US dollars increased by 14.6% with significant variations among various currency pairs. The asset performance was mainly driven by geopolitical risks and central banks’ demand. In the meantime, Bitcoin gained a staggering 156% in 2023.

In that context, Fidelity noted:

“Historically, bitcoin has been relatively noncorrelated to gold over the longer term, but recently has shown an increase in correlation as both have rallied.”

The investment firm speculated on the reasons for the increased correlation between the commodities, saying that investors might be watching the United States’ growing fiscal deficit or even expecting some change in interest rates.

“We can only speculate as to what these real asset markets may be saying, but one possible explanation is that both Bitcoin and gold are saying that the bond market may be wrong or that both assets are sniffing something else out, such as the United States’ increasingly large and structural fiscal deficits.

Perhaps the bitcoin market may be anticipating more debt monetization by the Federal Reserve in the future, or anticipating rate cuts, given that our research shows that Bitcoin’s price is highly correlated not to consumer price inflation, but rather inflation in the money supply itself and various liquidity metrics.”

Fidelity’s analysis also highlights a tighter supply environment for Bitcoin, as the amount of long-term holders has increased to reach another all-time high of 70%.

“It appears to us that the last few years of the bear market have forged some very strong hands in terms of holding period. Even in the face of a 160%+ rally in Bitcoin (at the time of writing in mid-December), we have not observed these long-term and illiquid coins moving in response to the price to take profit.”

Conclusion

The year 2023 recorded a significant increase in the correlation between Bitcoin and gold, as highlighted by asset manager Fidelity. Despite the historical expectations of an inverse relationship, both assets showed strong performances, with Bitcoin surging by a remarkable 156%, while gold showed fluctuations but ended 2023 with a 14.6% increase in US dollars.

What Are Bear And Bull Traps In Crypto And How Do You Avoid Them?

https://e-cryptonews.com/what-are-bear-and-bull-traps-in-crypto-and-how-do-you-avoid-them/

Bear and bull traps have caused many investors to make irrational and unwise decisions that impacted their bottom line. What are these bear and bull traps, and how can you avoid falling for them?

If you are involved in crypto trading, you need to know a few things to look out for. The cryptocurrency market is as complex as it is thrilling, and for any trader, various pitfalls need to be avoided to make the most of your investment. Some of these pitfalls include bear and bull traps.

Bear and bull traps exist in the traditional asset markets and the crypto industry. The traps have seen most investors engage in unwise trading, affecting their portfolios.

Bear Trap In Trading

A bear trap in the trading space is a scenario where an asset initially seems to be trading upwards in price. Then, the asset in question loses some of its value and seems like it will drop into a bear market. As traders encounter these market conditions and signals, they rush to respond instantly, opening short positions.

A short position needs traders to borrow shares of an asset from a broker using a margin account. The key idea is to sell the instruments and then rebuy them when the price declines and make a profit. A bear trader thinks that an asset or the market, in general, is about to drop and tries to profit from it.

This method involves leveraging strategies like short positions to make it happen. But as stated earlier, a bear trap is just a trap. The drop does not last, and soon after, the price begins to rise again after the bear traders have been ‘tricked’ into taking short positions.

Bear traps exist in nearly all asset markets, and traders put a lot of time and effort into avoiding falling victim to them.

Bear Trap - What It Is

Bear Trap - What It Is

Bull Trap Overview

A bull trap works like a bear trap but in the reverse mode. That happens whenever an asset increases in value and breaks above a particular resistance point. Normally, breaking above major resistance points might signal that an asset is almost entering a bull run to become more valuable. In that context, most traders open long positions to profit from the price movement.

The idea is that if they can purchase the asset when the price is beginning to rise, they can later resell it for a significant profit. A bull trader, in this case, tries to exploit the upward price movements.

But just like in the case of a bear trap, a bull trap sees the asset’s value record a reversal shortly after it breaks key resistance points. The trader would have hoped to resell the asset at a profit but now finds themselves with an asset that is losing its value.

The bull traps exist in almost all asset markets and concur for many reasons. They could happen because traders lose momentum after breaking resistance barriers, leading most to sell off their assets, and more selloffs triggered by stop-loss orders.

Bear And Bull Traps In Crypto

Bull and bear traps exist in all asset markets, and the crypto industry is not exempt. Most cryptos experience both traps, and they manifest in distinct ways. Consider altcoins that see abrupt hype within the sector and have their value surge rapidly. This hype often happens in tokens linked to particular events, such as the cryptos released after the death of Queen Elizabeth the Second.

Most crypto investors might purchase these coins expecting their value to keep rising. But, for some reason, these tokens start to drop in value, and the trader sees their investment plan fall apart. That is a perfect example of a bull trap.

A bear trap would comprise a crypto that seems to be on the decline. Maybe it is a token that has seen multiple swings, with some investors planning to buy it at a lower price and resell it for a profit.

But then, the value of the token increases, putting them in awkward positions. Due to the volatility in the Crypto space, bull and bear traps are common and can arise due to trends in the sector, the activity of whales, media reports about the asset, and more.

What is a bull trap?

What is a bull trap?
What is a bull trap?

Role Of Psychology In Bull And Bear Traps

One thing traders must know about the bull and bear traps is that they are triggered by psychology. First, there exists the unidirectional attitude that most investors have towards the market. It means they consider themselves bear traders or bull traders and only train to operate in one of these conditions.

On that note, they are more prone to fall into a bull or bear trap since they are only chasing one market direction and are not adequately flexible to operate in whatever the market throws at them.

Furthermore, the classic case of fear of missing out (FOMO) makes investors panic about not quickly profiting from a market movement. Hence, rather than wait and observe the market progression, they act quickly and get entangled in traps.

Crypto Bull And Bear Traps: Examples

We have already explained that bull and bear traps are common in the crypto space, and many examples are available. For example, Solana (SOL) recorded a drop of around 42% in the first week of June 2023 and appeared to be in a free fall.

Then, the token started rallying the next week, reaching key resistance levels of near $15. All the expectations of this coin continuing to drop faded, and all traders who had opened short positions were disappointed.

Then there is Bitcoin (BTC), which has recorded multiple bull traps in recent years. In April and August 2021, Bitcoin recorded a price drop after surging for a while. In April, it crossed the $54,000 zone, only to lose 17% of its value soon after.

Related:Solana Takes the Lead in Weekend Crypto Trading, Beating Out Bitcoin and Ethereum

Identifying And Avoiding Bull And Bear Traps

Now that it is clear what bull and bear traps are, you need to know how to discover and avoid them to enjoy your trading experience.

Consider the following to spot and avoid a bear trap:

  • Look at key indicators – when you want to open a short position for an asset, review its Fibonacci levels and relative strength index (RSI) divergence. Any asset that does not close below the critical Fibonacci levels might be a sign of a bear trap.
  • Review key resistance levels – one of the straightforward signs of a bear trap is the asset’s price experiencing a reversal after key resistance points. If the asset only reached a new all-time high or crossed a major milestone, you need to know if it seems to be trending in the opposite direction.
  • Low volumes – always analyze the market to determine the current trading volumes for the asset. If the volumes are low, it is best to remain wary.

To discover and avoid a bull trap, consider the following:

  • Key indicators – as is the case with a bear trap, reviewing things like RSI divergence is important. A high RSI signals heavy buying pressure, meaning the current price increase might not last long.
  • Trading volume – just like in the case of the bear traps, low trading volumes might mean that the price movement is because of the activity of several whales and is not sustainable.
  • Resistance levels – another dependable sign of a bull trap is an asset originally seeing lots of momentum but cannot cross certain resistance levels. That highlights a bull trap in the works.

The Takeaway

Trading any asset, mostly as complex as crypto, will never come without hiccups. Some things to look out for are bull and bear traps that can put any investors in an uncomfortable position in the market. Bull and bear traps have investors thinking they know the market’s trajectory and act accordingly, only to be bamboozled.

For any investor, always study the market and learn how to discover bull and bear traps so that when they happen, you will not be caught unaware.

How to Play Smart And Increase Your Chances Of Winning: 6 Jackpot Tips

https://e-cryptonews.com/how-to-play-smart-and-increase-your-chances-of-winning-6-jackpot-tips/

Are you a fan of jackpot games? Do you dream of hitting the big jackpot and changing your life overnight? If so, then you need to play smart and increase your chances of winning. This article will provide you with 6 jackpot tips that can help you improve your odds and maximize your chances of hitting the jackpot.

Get Familiar With Jackpot Rules

Before you start playing any jackpot game, it is essential to get familiar with the rules. Each jackpot game has its own set of rules and regulations that you need to understand.

Take the time to read and understand the Betway jackpot rules, as this will give you a clear understanding of how the game works and what you need to do to win. Knowing the rules will also help you make informed decisions while playing, increasing your chances of winning.

Research Jackpot Games

Not all jackpot games are created equal. Some have higher odds of winning, others have larger jackpots and others may have slightly different Betway jackpot rules. It is important to research different jackpot games and find the ones that offer the best balance between odds and jackpot size.

Look for games that have a history of frequent payouts or games that have a progressive jackpot that keeps growing until someone wins. By doing your research, you can increase your chances of finding the right game that suits your preferences and gives you a better chance of winning.

Related:5 Things to Consider Before Playing at Bitcoin Casinos

Look For Outlying Game Conditions

When playing jackpot games, it is important to look for outlying game conditions that can give you an edge. For example, some games may offer bonus rounds or special features that increase your chances of winning.

Others may have specific requirements, Betway jackpot rules or conditions that, if met, can significantly improve your odds. By paying attention to these outlying game conditions, you can increase your chances of winning the jackpot.

gambling jackpot

gambling jackpot

Don’t Always Rely On The Odds

While odds are an important factor to consider when playing jackpot games, they should not be the sole determining factor. Sometimes, luck can play a significant role in winning the jackpot.

Even if the odds are not in your favor, it doesn’t mean you won’t win. So, don’t always rely solely on the odds. Instead, focus on playing smart, following the rules and making informed decisions to increase your chances of winning.

Be Persistent

Winning the jackpot is not easy and it often requires persistence. Many people give up after a few unsuccessful attempts, but the key to winning is to be persistent. Keep playing, keep trying and don’t lose hope.

The more you play and the more familiar you are with the Betway jackpot rules, the more chances you have of hitting the jackpot. So, be persistent and stay committed to your goal of winning the jackpot.

Stick To Your Budget

Lastly, it is crucial to stick to your budget when playing jackpot games. It can be tempting to spend more money in the hopes of winning big, but this can lead to financial difficulties. Set a budget for yourself and stick to it.

Only spend what you can afford to lose, and never chase your losses. By sticking to your budget, you can enjoy playing jackpot games without putting yourself at financial risk.

In conclusion, playing jackpot games can be exciting. By following these 6 jackpot tips, you can play smart and increase your chances of winning. Get familiar with the Betway jackpot rules, research different games, look for outlying game conditions, don’t solely rely on the odds, be persistent, and most importantly, stick to your budget. Good luck, and happy playing!

What Makes Cryptocurrency Casinos the Safest Option for Online Gambling Enthusiasts?

https://e-cryptonews.com/what-makes-cryptocurrency-casinos-the-safest-option-for-online-gambling-enthusiasts/

The global online gambling and betting industry is projected to experience significant growth in the coming years. In 2021, the industry was valued at 61.5 billion U.S. dollars. However, experts predict that by 2028, this figure will rise to 114.4 billion U.S. dollars, reflecting a substantial increase of over 86 percent.

This growth can be attributed to various factors, including the increasing popularity of online gambling platforms, advancements in technology and the expanding legalization of online gambling in different regions. Of course, online casino gambling isn’t without its risks.

That’s why, many people are turning to cryptocurrency casinos to take in the popularization of online casino gambling while also prioritizing their online safety. This article explores the phenomenon of crypto casinos and what makes them the safest option for online gambling enthusiasts.

Secure Withdrawals And Deposits

One of the main advantages of cryptocurrency casinos is the secure nature of withdrawals and deposits. Traditional online casinos often require you to provide sensitive banking information, such as your credit card details or bank account number. This can put your financial information at risk of being hacked or stolen.

However, with the safest crypto casinos, you can make transactions using digital currencies like Bitcoin, Ethereum or Litecoin. These transactions are encrypted and decentralized, making them highly secure and virtually impossible to hack.

Related:How to Find a Good Crypto Casino

An International Payment Method

Cryptocurrencies are not bound by geographical borders, making them an ideal payment method for online gambling enthusiasts around the world. Traditional payment methods like credit cards or bank transfers may have restrictions or additional fees when used for international transactions. With cryptocurrencies, you can easily deposit and withdraw funds from anywhere in the world without worrying about these limitations.

Enhanced Privacy

Privacy is a major concern for many online gamblers. Cryptocurrency casinos offer enhanced privacy compared to traditional online casinos. When you use cryptocurrencies for gambling, you don’t need to provide any personal information like your name, address or phone number. This anonymity protects your identity and reduces the risk of your personal information falling into the wrong hands.

crypto gambling

crypto gambling

Complete Online Anonymity

In addition to enhanced privacy, cryptocurrency casinos also offer complete online anonymity. Traditional online casinos often require you to create an account and provide personal information. This can be a deterrent for those who prefer to keep their online activities private.

Cryptocurrency casinos allow you to gamble without creating an account or revealing any personal details. You can simply deposit your funds, play your favorite games and withdraw your winnings without leaving a digital footprint.

There is No Requirement to Enter Bank Details

When completing a transaction at a cryptocurrency casino, you don’t need to enter your bank details. This is especially important if your general savings account is at a traditional bank. By using cryptocurrencies, you can keep your gambling activities separate from your regular banking transactions. This adds an extra layer of security and prevents any potential risks associated with sharing your bank details online.

Provably Fair Gaming

Cryptocurrency casinos commonly employ a technology known as “provably fair” to guarantee the fairness of their games. This technology utilizes cryptographic algorithms to ensure that the outcome of each game is truly random and cannot be manipulated by the casino or the player.

By providing transparency and verifiability, provably fair systems allow players to independently verify the fairness of the game results. This helps to build trust and confidence in the cryptocurrency casino industry, as players can be assured that they are not being cheated or deceived, overall making cryptocurrency casinos a safer option for online gambling enthusiasts.

Related:How to Maximize Your Enjoyment When Playing at Online Casinos

What to Look Out for:

While crypto casinos are relatively safe, here are a few things that you should still watch out for:

Fewer Regulations

While cryptocurrency casinos offer many advantages, it’s important to be cautious of the fewer regulations surrounding them. Traditional online casinos are subject to strict regulations and licensing requirements, ensuring fair play and player protection. Cryptocurrency casinos, on the other hand, may operate in a more unregulated environment. It’s essential to do thorough research and choose reputable cryptocurrency casinos that prioritize player safety and adhere to responsible gambling practices.

Price Volatility

Another factor to consider when gambling with cryptocurrencies is the price volatility. Cryptocurrencies like Bitcoin are known for their price fluctuations, which can be significant. If you win a substantial amount of cryptocurrency and the price suddenly drops, your winnings could become significantly less valuable.

It’s important to be aware of this risk and consider converting your winnings into a more stable currency if you’re concerned about potential losses due to price volatility.

In conclusion, cryptocurrency casinos offer several advantages that make them the safest option for online gambling enthusiasts. From secure withdrawals and deposits to enhanced privacy and complete online anonymity, cryptocurrencies provide a secure and convenient way to enjoy online gambling.

However, it’s crucial to be cautious of the fewer regulations and price volatility associated with cryptocurrencies. By choosing reputable cryptocurrency casinos and managing your winnings wisely, you can have a safe and enjoyable online gambling experience.

Google Trained An AI Model To Use Other AI Models, It Improved Its Coding By 40%

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This artificial intelligence (AI) research could make it easy to teach old AI models new tricks without any expensive fine-tuning or retraining sessions.

Artificial intelligence researchers at Google Research and Google DeepMind developed a strategy by which a large language model (LLM) can be enhanced with other language models.

This development addresses one of the largest outstanding issues affecting LLMs by enabling developers to infuse existing models with new features and abilities without needing to start from scratch or engage in expensive retraining and fine-tuning sessions.

Based on a statement by the Google Research team, augmenting an LLM using another language enhances performance at existing tasks and ensures that new tasks that would not be achievable by the models by themselves are tackled.

Teaching Old Chatbots New Tricks

This research was done using Google’s PaLM2-S LLM, a model the search engine firm said is comparable to GPT-4, the AI infrastructure that supports OpenAI’s ChatGPT.

PaLM2-S was tested and benchmarked by itself in the team’s experiments and then after, it was augmented with smaller, specialized language models. The tasks performed included translation, where the enhanced version showed up to 13 % improvement over baseline, and coding.

When tested in coding tasks, the hybrid model showed considerable improvements, according to the paper.

“Similarly, when PaLM2-S is augmented with a code-specific model, we see a relative improvement of 40% over the base model for code generation and explanation tasks—on par with fully fine-tuned counterparts.”

Possibly Massive Impacts

On the surface, the highlighted performance gains could have quick implications for the AI industry. The boosted performance in translation tasks, for instance, was greatest when translating language with low support into English. That is still an outstanding issue in machine learning, and Google’s work here can move the needle.

Nonetheless, in the bigger scheme, this vein of research might address the looming Sword of Damocles that hangs over the heads of most tech CEOs in the AI industry: legal issues that may dismantle the very foundation of chatbots like ChatGPT.

Related:How AI and Web3 Innovations Could Dominate in 2024

Copyright vs. Artificial Intelligence

The creators of some of the most popular large language models are named as defendants in many lawsuits that hinge on claims that these AI networks are trained on copyrighted data.

The question legislators and the courts will need to answer is whether a for-profit firm can legally utilize such data to train its language models. Looking at things on the extreme, if the courts rule that developers cannot use such data and that any models trained on copyrighted material need to be purged, it might prove technically impossible or financially infeasible to keep offering the impacted services.

Fundamentally, due to the high costs involved in training large language models, and their dependence on lots of data, products like ChatGPT, as they are developed today, may not be viable in a more-regulated United States AI landscape.

Nevertheless, in case Google’s new LLM augmentation scheme comes up with more development, probably, most of the scaling needs and costs of spinning up an LLM from zero or retraining an existing one might be mitigated.

Crypto Hacks Cost Investors Over $1.8 Billion In 2023

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Web3 hacks and scams cost the cryptocurrency sector $1.83 billion in 2023 despite plunging by half from 2022.

Since cryptocurrency started going mainstream, lots of hackers have come into the space aiming to steal from unsuspecting investors. However, it seems like more security measures put in place have helped repel these cyberattacks.

Crypto hack losses dropped by more than 50% in 2023. Nonetheless, the sector still recorded over $1.8 billion in losses from various exploits, and dYdX has allegedly identified the attacker behind a $9 million exploit and is considering taking legal action against the perpetrator.

Crypto Hack Losses Drop 51% In 2023

More than $1.8 billion in digital assets were lost across 751 security incidents in 2023. While that amount is still considerably high, it is 51% lower than what was lost in 2022. In that year, the losses to hacks and other incidents hit $3.7 billion.

This data was published by blockchain security firm CertiK in an annual report titled “Hack3d: The Web3 Security Report 2023.” On January 3, this security company compiled a document that highlighted the state of Web3 security over the past year.

Within that report, the firm noted that the third quarter of the past year recorded the most losses at more than $686 million. Moreover, private key vulnerabilities and compromises continued to be the most expensive attack vectors. In 2023, more than $880 million were lost to 47 incidents where private keys were stolen.

Losses and security incidents by blockchain. Source: CertiK

Losses and security incidents by blockchain. Source: CertiK
Losses and security incidents by blockchain. Source: CertiK

When you look at the blockchains, the Ethereum network recorded the most losses. Based on CertiK’s report, Ethereum accounted for $686 million in losses after being hit in 224 incidents, with an average of $3 million per incident. On the flip side, BNB Chain recorded 387 security breaches, but the total losses were just $134 million, considerably lower than Ethereum’s lost amount.

Furthermore, cross-chain interoperability remains a vulnerable area for crypto. The security report highlighted that losses were nearly $800 million in security attacks that affected many blockchains.

Ronghui Gu, the co-founder of CertiK, said that all things considered, 2023 was a “positive development” in blockchain security. He explained:

“The growth of bug bounty platforms and other proactive security measures is a good sign. Hopefully, we will see a continued decline in losses throughout 2024.”

Gu also stated that the 51% drop in losses might be attributed to the general bear market that saw dropping token and treasury valuations. Nonetheless, Gu thinks that if losses remain low during the bull run, it would mean that the Web3 sector is “learning its security lessons.”

Related:How Crypto Scams And Investment Fraud Networks Operate

DYDX Identifies Attacker, Considers Lawsuit Over $9 Million Loss

Decentralized exchange dYdX said that it discovered the identity of the attacker responsible for the platform’s v3 platform attack on Nov. 17, 2023. That incident resulted in a loss of $9 million from its insurance fund.

In a post-analysis of the “targeted attack” on the exchange, dYdX acknowledged that it is now considering legal action against the person responsible. To avoid cases of any future coordinated attacks with similar tactics, dYdX stated that it had enhanced its v3 trading platform to boost open-interest monitoring and alerts.

The exchange also stated that the strengthened v4 chain is particularly designed to reduce the impact of such risks. It includes a new feature that automatically reinstates the original margin fraction in response to bizarre price changes.

In reviewing the attack method, dYdX observed that the attacker initiated most 5x leveraged long positions by using the YFI/USD trading pair across more than 100 wallets. Using different addresses, the attacker acquired spot Yearn.finance (YFI) tokens, resulting in a 215% increase in its price.

YFI is the native token of the Yearn.finance decentralized finance protocol.

Based on the exchange, the attacker multiplied their unrealized profits by entering extra YFI/USD positions, reaching a maximum of nearly $50 million. On November 17, dYdX raised the initial margin requirement and then lowered the base and incremental position sizes within the YFI/USD market to restrict the hacker’s activities.

The next day, the price of YFI lost nearly 30% within one hour, and the attacker could not close their positions. The insurance fund automatically covered the losses when the attacker’s holdings turned negative, as highlighted by dYdX.

This platform also noted that a week before the YFI incident, the assailant employed a similar approach with SUSHI/USD, generating approximately $5 million in gains. Fortunately, the v3 insurance fund remained unaffected, as dYdX had raised the initial margin requirement to 100%, thwarting any additional gains by the attacker.

Interestingly, the company eventually clarified that these attacks did not impact customer funds and showed that the attacker never benefited from manipulating its YFI market.

North Korean Hackers Steal $600M In Crypto In 2023

TRM Labs reported that North Korean hackers possibly stole nearly $700 million in crypto in 2023, with about $600 million confirmed based on its research.

Blockchain intelligence company TRM Labs said that groups linked to the Democratic People’s Republic of Korea (DPRK) were responsible for almost 33% of all crypto stolen through different kinds of hacks in 2023.

Based on a January 5 report, TRM Labs stated that North Korean hackers possibly stole $700 million in crypto last year, with at least $600 already confirmed in its research. DPRK hackers have stolen about $3 billion worth of crypto since 2017, indicating that the nation’s attacks involving digital assets increased significantly in the past year.

The blockchain company reported that the DPRK’s strategies for money laundering were continuously changing to evade international law enforcement pressure. Research indicated that the hackers in many cases compromised users’ private keys or seed phrases, transferred funds to DPRK-controlled wallets, and then swapped these assets for Tether or TRON (TRX).

TRM Labs stated:

“North Korea’s hacking prowess demands continuous vigilance and innovation from businesses and governments. Despite notable advancements in cybersecurity among exchanges and increased international collaboration in tracking and recovering stolen funds, 2024 is likely to see further disruption from the world’s most prolific cyber-thief.”

Officials working with the United States Treasury Department imposed sanctions on people and hacking groups they supposedly were linked to North Korea, including Lazarus. After the department’s sanctions against crypto mixers Sinbad and Tornado Cash, TRM Labs reported that the DPRK continued exploring other laundering tools.

US officials have mostly cited digital assets in their many reasons for imposing sanctions on specific entities, including the terrorist group Hamas after its October 7, 2023 attack on Israel. Crypto mixers have also been a specific target for legislators, who allege that the technology is mainly utilized in illegal activities.

Cross-Chain Orbit Bridge Allegedly Suffered $82 Million Exploit

Hackers have allegedly exploited Orbit Bridge, the bridging service of the cross-chain protocol Orbit Chain, for a staggering $82 million.

In a December 31 post on the X platform, pseudonymous Twitter user Kgjr highlighted the possible exploit, pointing to a series of major outflows from the Orbit Chain Bridge protocol. On-chain sleuth Officer CIA and blockchain security company Cyvers have posted similar information on this matter.

Based on data from blockchain analytics company Arkham Intelligence, the hackers seem to have made off with $81.68 million in illegally acquired funds.

In five different transactions, $30 million in Tether (USDT), $10 million in USD Coin (USDC), $21.7 million in Ether (ETH), $9.8 million in Wrapped Bitcoin (WBTC), and $10 million in Dai (DAI), were all sent to new wallets.

The Orbit Chain protocol is believed to have major connections with the Klaytn network, a modular layer-1 blockchain. Based on data from Klaytn’s block explorer, eight of the biggest assets on the Klaytn network by total market capitalization are wrapped assets on the Orbit Bridge.

Interestingly, the nature of the exploit is not yet clear.

Launched in South Korea in 2018, Orbit Chain is a multi-asset blockchain that primarily focuses on cross-chain transfers between various decentralized networks. It is normally utilized to transfer assets between Klaytn and Ethereum Virtual Machine-compatible networks.

Orbit Chain is a unique entity from a cross-chain bridging protocol known as Orbiter Finance, which shares a similar sounding name.

The Significance of Cryptocurrencies as Payment Methods

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Cryptocurrencies have emerged as a transformative force, redefining the landscape of financial transactions. The way people view and interact with conventional payment methods is transforming due to the decentralized nature of digital currencies like Bitcoin and Ethereum.

This article delves into the pivotal role cryptocurrencies play in modern payment systems, emphasizing their importance and the impact they have on various sectors. As the global economy evolves, the adoption of cryptocurrencies is not merely a trend but a fundamental shift towards a more efficient and inclusive financial ecosystem.

The Versatility of Cryptocurrencies

Cryptocurrencies transcend borders, providing a seamless and borderless medium for transactions. Unlike traditional payment systems, cryptocurrencies operate 24/7, facilitating global transactions without the constraints of banking hours or international borders. This versatility makes them an ideal choice for international trade, e-commerce, and remittances.

The ability to conduct transactions at any time, coupled with the elimination of currency conversion hassles, streamlines the global exchange of goods and services, fostering economic growth and collaboration. As cryptocurrencies continue to gain prominence, their round-the-clock accessibility becomes even more significant, fostering real-time economic interactions and breaking down traditional barriers.

This perpetual availability not only enhances the efficiency of cross-border transactions but also supports the development of a more interconnected and dynamic global economy.

Online Casinos and the Rise of Cryptocurrency Payments

The online gaming industry has not been immune to the influence of cryptocurrencies. Online casinos are increasingly adopting digital currencies as payment options, revolutionizing the way players engage with platforms. With the integration of cryptocurrencies, players can enjoy enhanced security, faster transactions, and increased privacy.

Notably, some online casinos now offer cryptocurrency payments for popular games like online pokies, providing a seamless and secure gaming experience. The incorporation of these technologies not only accommodates the preferences of tech-savvy players but also places the gaming industry at the forefront of adopting innovative financial technologies.

crypto payments

crypto payments

Enhanced Security and Anonymity

One of the key advantages of cryptocurrencies is the robust security they offer. Blockchain technology, the underlying framework for cryptocurrencies, ensures a tamper-resistant and transparent ledger. Additionally, the pseudonymous nature of transactions provides a level of anonymity not achievable with traditional payment methods, safeguarding user privacy and reducing the risk of identity theft.

The continued advancements in cryptographic techniques and consensus mechanisms contribute to a secure financial environment, inspiring confidence in users to embrace the digital revolution. As the technology matures, ongoing research and development in the crypto space promise even more sophisticated security measures, fostering a trustful environment for users and establishing cryptocurrencies as a resilient and evolving force in the realm of finance.

Related:Cuautemoc Weber of Gateway.fm Explores Abstracting Complexity of Blockchains & More

Decentralization and Financial Inclusion

Cryptocurrencies challenge the conventional centralized financial systems, offering an alternative that empowers individuals. Decentralization eliminates the necessity for intermediaries, thereby decreasing transaction costs and fostering financial inclusion. This impact is especially significant in regions with limited access to traditional banking services, where cryptocurrencies offer a pathway for economic participation.

The decentralized nature of cryptocurrencies fosters a more inclusive financial system, bridging the gap for the unbanked population and unlocking economic opportunities for individuals who were previously excluded. As cryptocurrencies gain broader acceptance, their decentralized ethos not only democratizes financial access but also encourages financial innovation.

This decentralized paradigm shifts the narrative from exclusion to empowerment, laying the foundation for a more equitable and accessible global financial landscape.

Scallop Is A User-Friendly Lending Protocol Hosted On Sui Blockchain Boosting DeFi Adoption

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Sui Network’s ability to support large transaction volumes while maintaining low fees has attracted many developers and users. Currently, it has become the home of one of the quickest-growing DeFi apps.

Scallop, a decentralized finance (DeFi) lending protocol built on Sui, is leveraging the network’s strengths to create a user-friendly platform for borrowing and lending digital assets.

As blockchain networks gain popularity and use, they encounter growing demands for transaction throughput and efficient resource allocation. The current blockchains mostly struggle to handle the increasing transaction volume without having to compromise performance, resulting in higher transaction fees, slower transaction speeds, and possible scalability bottlenecks.

Resolving these scalability issues is important for blockchain to fulfill its potential as a mainstream technology. On that note, scalable blockchains can support lots of applications, attract more users, and power widespread adoption across different sectors. One of them is layer-1 blockchain Sui Network, which strives to simplify Web3 onboarding and address the scalability limitations.

Sui Increases DeFi Presence

Unleashed in May 2023, Sui implements a distinct architecture to achieve high scalability, utilizing horizontal scaling to ensure that the transaction fees remain low even during high demand. The network is capable of processing many transactions simultaneously, achieving immediate finality and security.

One of the quickest-growing DeFi apps that reflect Sui’s efficiency is Scallop, a lending protocol that has expanded to become the leading money market for the Sui network.

The protocol provides an extensive suite for institutional-grade features, including tools for developing Sui Programmable Transaction Blocks (PTxs), Sui Kit for interacting with Sui while using the TypeScript SDK, Scallop SDK for interacting with Scallop, and sCoins (Scallop Market Coins) for zero-cost flash loans.

Scallop offers comprehensive tools with an emphasis on security and user experience. Source: Scallop

Scallop offers comprehensive tools with an emphasis on security and user experience. Source: Scallop
Scallop offers comprehensive tools with an emphasis on security and user experience. Source: Scallop

Scallop is the first DeFi project to be awarded by the Sui Foundation via a grant. It has also acquired different awards from Sui Builder House hackathons. The protocol also secured funds from major institutions and venture capital (VC) firms, such as OtterSec and Comma 3 Ventures.

Users can transfer their digital assets to the Sui network utilizing Scallop’s bridging solution, which consists of Portal Bridge, Wormhole Connect, and Celer Bridge. Furthermore, Scallop provides low transaction fees which makes it an attractive option for users who wish to save money on their decentralized finance (DeFi) transactions.

In 2022, the team behind Scallop went on a quest seeking the perfect blockchain foundation for their lending protocol. Their search led them to the Sui blockchain, which they identified for its exceptional security and composability. Unlike the other blockchains, Sui’s infrastructure allows the smooth incorporation of Scallop into the existing DeFi applications, enabling the developers to create some innovative and interlinked DeFi experiences.

On that note, Sui’s Move smart contract development language, built upon the massive Rust programming language, also solidified its appeal, addressing critical security issues inherent in DeFi smart contracts.

Scallop allows users to borrow and lend major stablecoins, like USDT and USDC, as well as CETUS and SUI. CETUS is the naïve token of Cetus, a Sui-based decentralized exchange (DEX). Through its temporary incentive program mainly funded by the Sui Foundation, Mysten Labs, and Openblock Labs, Scallop rewards lenders and borrowers who get SUI tokens for participating in its ecosystem.

Notably, Scallop values its users and intends to recognize early users and supporters of Scallop with the Scallop token, SCA, which is scheduled to launch in Q1 2024.

Related: MUFEX Revolutionizes DeFi with CEX-Like Trading Experience and Lightning-Fast Order Processing

Increased Adoption

Scallop experienced considerable growth in the last quarter of 2023. As of December 6, its total value locked (TVL) surpassed $40 million, making it the second-biggest DeFi app on the SUI chain after Cetus. The growth marks a considerable increase from September when Scallop’s TVL was less than $4 million.

Scallop demonstrates growth in the final quarter of 2023. Source: DefiLlama

Scallop demonstrates growth in the final quarter of 2023. Source: DefiLlama
Scallop demonstrates growth in the final quarter of 2023. Source: DefiLlama
Scallop demonstrates growth in the final quarter of 2023. Source: DefiLlama

The upside trend reflects the increasing adoption of Scallop’s lending pools that offer users the chance to earn interest on their crypto holdings or borrow assets for different purposes. The protocol’s primary focus on accessibility, security, and user-friendly interfaces might help contribute to its appeal among SUI users.

Scallop now plans to set the standards for all the lending DeFi platforms on all the chains by focusing on user security and experience. The team, made up of fintech, DeFi, cybersecurity, and quantitative trading experts, strived to build an extensive monetary market leveraging Sui’s composability and security, implementing risk management, and offering continuous user support.

The Upward Trajectory Of Cryptos In Gambling: Which Are The Drivers Of Crypto Gambling Growth?

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We are now living in an era where encrypted transactions, blockchain technology, and cryptocurrencies take up an increasing space of our everyday activities and routines. If all else remains constant, it is expected that soon, cryptocurrencies are going to grow at such a rate, that the whole crypto ecosystem is going to be mainstreamed enough to be considered as a nearly equivalent market to the fiat currencies market.

Of course, these projections reflect the optimistic scenario on cryptos, although the speed and pace of their development don’t suggest that we are going to experience a pessimistic scenario.

People are continuously using cryptos more frequently and for more purposes. The growth in crypto adoption and usage is largely owed to the online gambling industry, something that is demonstrated by the rapid increase of crypto gambling sites all over the internet.

Today, many online gambling sites – including casinos and sports betting platforms – have embraced cryptos either by including crypto payments as legit and viable transaction methods available to their customers or even by turning completely into crypto gambling sites.

These gambling platforms are doing nothing else but leveraging the growing popularity and the surge in demand for cryptocurrency transactions and cryptocurrency usage.

A surge predominantly occurs thanks to the unique benefits and valuable advantages that gamblers gain when using cryptos for gambling.

Which are the benefits and advantages, offered by cryptocurrencies? Let’s see them one by one.

Crypto currency casino Bitcoin is the winning currency crypto gambling

Crypto currency casino Bitcoin is the winning currency crypto gambling

Privacy

The first crucial advantage of gambling is privacy. All people who like to bet or gamble want to keep their privacy as much as possible. They don’t like their gambling activities or gambling habits becoming known to anybody.

That’s something that can be done with cryptocurrencies because every transaction is completely anonymous and while it is recorded on a public ledger (which is transparent) is encrypted, which safeguards privacy.

Related:Gambling with Bitcoin: The Way to Make Money with Cryptocurrency

Anonymity

The second benefit is closely related to the previous one and it has to do with anonymity. All people who play casino games or who like to bet on sports want to be able to do so, without having to give any bit of personal detail over the internet.

Even if they trust online gambling sites, they still want to retain their anonymity, for several reasons, which we won’t get into right now. Well, with cryptocurrencies this kind of anonymity is guaranteed.

Safety And Security

The third advantage of cryptocurrencies has to do with optimizing safety and security. Users want their transactions to be safeguarded and that is why they usually try to find the best crypto gambling sites in the USA or other parts of the world.

Making online transactions entails an element of risk, especially when fiat currency transactions are involved, where much of gamblers’ private information is exposed. Bank transfers, credit/debit card payments, or even e-wallet payments require users to feed the system with data, which if stolen or hacked can put users’ accounts at risk.

Cryptocurrency transactions can’t eliminate the risk of hacks, but they can certainly reduce to the lowest possible risk of exposure since every transaction that is recorded in the blockchain is immutable, irreversible, and transparent.

Using cryptos for transactions in gambling, so, makes it much safer for the user, and this alone powers up their value.

Related:Cryptocurrency in the Gambling Blockchain: Features and Benefits

Speed And Efficiency

Although speed is not so much of an issue today with online payments and the whole internet thing which makes transactions happen very quickly, the speed at which crypto transactions are implemented is impressive. It only takes moments to pay using cryptocurrencies such as Bitcoin or Ethereum.

Apart from this impressive speed, the issue of cost ariss. For many of the money transactions, banks or even bookmakers charge fees. When cryptos are transacted these fees are either zero or very low, compared to those charged in fiat currency payments.

These advantages have made cryptocurrencies so popular among those who like to play online casino games, bet on their favorite sports, or generally like to gamble. Cryptos’ popularity will increase soon, unless something else disrupts their explosive growth…

Tellor Altcoin’s Strange 150% Pump And Dump Spark Worries Of Manipulation

https://e-cryptonews.com/tellor-altcoins-strange-150-pump-and-dump-spark-worries-of-manipulation/

December 31, 2023, was a wild day for Tellor (TRB) trading since it wiped out over $68 million worth of leveraged positions, while a $2.4 million transfer from the Tellor team to Coinbase has resulted in lots of concerns.

A relatively unknown altcoin known as Tellor (TRB) was thrust into the spotlight after it exploded by 150% to hit a new all-time high of $619 before plunging back to $136 in only 13 hours on December 31.

The price of Tellor spiked then plunged amid allegations of market manipulation. Source: TradingView

The price of Tellor spiked then plunged amid allegations of market manipulation. Source: TradingView
The price of Tellor spiked then plunged amid allegations of market manipulation. Source: TradingView

The strange trading activity of Tellor was also called into question after Etherscan data showed the Tellor team had transferred 4,211 TRB – worth nearly $2.4 million at that time – at about 8:41 pm UTC to a Coinbase wallet at the same time the price spiked.

In the meantime, the abrupt drop in the price of Tellor caused over $68 million in liquidations, based on data from CoinGlass that was later cited by blockchain analytics services Lookonchain in a January 1, 2023, post to the X platform.

Nonetheless, blockchain analytics platform Spot on Chain stated that the wild price swings could also be attributed to 26% of the circulating supply of TRB getting distributed between only 20 ‘whale’ wallets.

The small group of whale addresses started snapping up TRB at prices of almost $15 and has been slowly depositing their holdings to centralized exchanges amid somewhat artificial price movements to lock in high profits, according to Spot On Chain.

Tellor is yet to comment on this incident and analysts insist it might be a case of price manipulation.

TRB is the utility token for Tellor, a decentralized oracle network – similar to Chainlink (LINK) – which feeds price data to smart contracts that run on blockchain networks.

Decentralized Derivatives Protocols Caught In This Crossfire

Several decentralized perpetual trading protocols like Synthetix (SNX) and Hyperliquid were caught in this unexpected and unwanted crossfire, with SNX stakers suffering low seven-figure losses after the sudden move in the price of TRB.

In a January 1, 2024 post on the X platform, Synthetix founder Kain Warwick published that Synthetix stakers had realized nearly $2 million in losses.

This was allegedly because of a failure in the automated risk parameters on the decentralized protocol, which never recognized that TRB’s price was allegedly getting manipulated to produce abnormal price points.

Warwick wrote that TRB has a $250,000 open interest cap that Exploded to $12.5 million as its price surged in the last several months.

Interestingly, the open interest cap was set against TRB and not to a fixed notional USD amount – meaning that the traders could continue taking outsized and absurd bets on decentralized derivatives contracts. Warwick added:

“Several short positions were opened as the price spiked today and with the dislocation of spot and perp prices, there was no ARB to balance it. This should have been adjusted back down, but risk controls were lax, and there was diffusion of responsibility. The Spartan Council is responsible for params though.”

Eventually, Warwick concluded that risk management on a decentralized perpetual exchange like Synthetix needed to be ‘baked in’ and could not be resolved via traditional dispute resolution mechanisms such as courts.

“Either you build a robust decentralized trading venue and live by your risk controls or you are just larping as a DEX. I look at these kinds of incidents as the cost of being a dex.”

Top 5 Strangest Crypto Narratives Of 2023

https://e-cryptonews.com/top-5-strangest-crypto-narratives-of-2023/

Some weird stories have made headlines in the crypto space in 2023. They include hacks, arrests, and a token burn worth $650 billion.

Crypto might be many things, but it is never dull. From the hacks to arrests and billion-dollar token burns, here are some of the top stories that are a bit more bizarre than the rest, making to this year’s list.

KyberSwap Hack

In the crypto space, exploits have become rampant and it was not strange that the decentralized exchange aggregator KyberSwap was hacked in November and $46 million stolen. While the size of that theft places it as one of the more notable this year, it is a usual occurrence.

Nonetheless, what followed placed the KyberSwap hack in a unique category.

The KyberSwap hacker sent an on-chain message on November 30 stating their demands, including full executive control over the whole company. Furthermore, the hacker demanded that the Kyber executive surrender all the firm’s assets to the hacker. The criminal then promised to buy out the current executives at a ‘fair valuation’ and double all staff pay if their terms were accepted.

Notably, this hacker concluded their demands by stating:

“This is my best offer. This is my only offer. I require my demands to be met by Dec. 10; otherwise, the treaty falls through.”

As expected, KyberSwap ignored the bizarre list of demands sent by the hacker.

Related:How Crypto Scams And Investment Fraud Networks Operate

The $650 Billion Burn

In October, Uniswap founder Hayden Adams confirmed that he burned 99.9% of the HayCoin (HAY) supply, valued at a ‘strange’ $650 billion.

Adams deployed the HAY token for testing around five years ago, before the launch of Uniswap. By doing that, he developed a small liquidity pool with some of the total supply and kept the other 99.9% of the tokens himself.

Over the years, traders started purchasing and selling the 0.1% as a meme token, pumping the value of HAY. Adams then said:

“Crypto can be weird sometimes.”

This token burning pushed HAY from $580,005 per token on October 20 to over $4 million per token by October 26.

BitBoy Arrested

Ben Armstrong — aka BitBoy Crypto – went to the front door of ex-employee Carlos Diaz in September and started a livestream that put him on the wrong side of the law and behind bars.

While standing outside Diaz’s front door, Armstrong started firing a long list of accusations against him, even accusing Diaz of threatening his life. Armstrong then stated that Diaz had links with the “black mafia” before claiming that his former staff member stole his Lamborghini.

The loss of the sports car seemed to weigh heavily on Armstrong’s mind as he worked himself up live on YouTube. Armstrong stated in a strange turn of phrase:

“Carlos Diaz, the man who has my Lamborghini, the man who extorted me for my Lamborghini, the man who death-threatened me to my Lamborghini.”

In general, Armstrong seemed confused about why he was at Diaz’s property. First, he said:

“I have legitimately been scared for my life for weeks.”

Then he changed his mind and said:

“If Carlos Diaz comes out of this house and tries to kill me live on YouTube, then it’s just going to have to be what it’s going to be.”

In the 37-minute broadcast, Armstrong was scared and not scared of his former staff member and wanted everybody to know that he was scared and not scared.

The 37-minute outburst continued until police came and quickly arrested the influencer, who had taken his gun and his mistress, Cassandra Wolfe, to this scene of the disturbance. He was eventually released on a $2,600 bail bond.

Copycat NFTs

In October, A US district court judge ordered Jeremy Cahen and Ryder Ripps to pay $1.57 million in damages to Yuga Labs since they copied the Bored Apes Yacht Club (BAYC) NFTs concept.

The strangeness comes from Ripps and Cahen’s behavior during the whole incident. For some time, Ripps insisted that the Bored NFTs were racist and anti-Semitic. Notably, he even published a website to accuse the brand of having “Nazi dog whistles.”

Cahen and Ripps also launched a series of copycat NFTs that infringed BAYC’s intellectual property. But while the BAYC non-fungible tokens were supposedly racist when Yuga Labs developed them, Cahen and Ripps insisted they were ‘satire’ when they replicated them in wholesale and profited from them.

As expected, this argument did not win any favors in the legal circles.

The Heart Documentary

In July, the founder of HEX and PulseChain, Richard Heart, prepared for the premiere of his vanity movie, The Highest of Stakes.

Heart is known for his flamboyant excess, and so some level of expectation surrounded the release. Unknown to Heart, the SEC was getting ready to launch legal action simultaneously, dropping fraud charges just in time to spoil that party.

While Heart still has a loyal following in the crypto space, those outside this field appear less impressed by the influencer and project founder. One movie critic stated:

“Is a man a conman if he tells you up front he’s conning you?”

Crypto Vouchers: Easily Investing In Crypto

https://e-cryptonews.com/crypto-vouchers-easily-investing-in-crypto/

Unlock the potential of cryptocurrency with Crypto Vouchers, a revolutionary step in the world of digital payments and investments. Designed for simplicity, these vouchers provide an effortless entry point into the crypto market for anyone interested in leveraging the latest in financial technology. Whether you’re taking your first steps or expanding your digital portfolio, Crypto Vouchers offer the perfect blend of security, privacy, and convenience for today’s savvy investor

Crypto Vouchers

Easy investing in crypto in the rapidly changing world of digital payments and investments, Crypto Voucher Cards offer a new way to deal with money. These vouchers make it easier to invest in cryptocurrencies and are suitable for anyone interested in this modern form of financial technology.

What Are Crypto Vouchers?

Crypto Vouchers are digital coupons that can be redeemed for various types of cryptocurrencies, such as Bitcoin or Ethereum. They are an easy way for people to start investing in digital currency, ideal for both beginners and experienced users in the world of cryptocurrency.

Benefits Of Crypto Vouchers

These vouchers offer several advantages. They are a safe and convenient way to explore the world of cryptocurrency, without being directly linked to your personal bank account. This provides a level of privacy and security that is not always possible with direct crypto purchases.

How To Buy And Use Crypto Vouchers

The process to buy and use crypto vouchers is simple. After purchasing a voucher, you get a code that you can redeem on the crypto voucher website. This way, you can easily and quickly invest in the cryptocurrency of your choice.

Related: Read This Before Getting Into Crypto

Use Cases And Target Audiences

Crypto vouchers are an excellent gift for anyone interested in the financial technology of the future. They are suitable for beginners who want to start with cryptocurrencies and for experienced investors who want to diversify their investments. These vouchers are an accessible and practical gift for friends or family interested in digital currency.

Future Of Crypto Vouchers

The future of crypto vouchers looks positive. With the growing popularity of cryptocurrencies and the development of blockchain technology, they are likely to play an increasingly important role in the financial world. They offer a way to participate in the growing market of digital currency in a simple and accessible manner.

Buy Crypto Vouchers On Skine

On Skine.com, it is possible to purchase crypto vouchers. These vouchers are available in different types and values, making them suitable for every type of investor, whether you want to start small or consider a larger investment. The payment options on Skine.com are extensive and flexible, with options ranging from PayPal to phone payments. This makes it accessible for a wide audience to invest in crypto, regardless of their payment preference. Moreover, the user-friendly setup of the website ensures that the experience of buying crypto vouchers is pleasant and easy for the user.

Conclusion

Crypto vouchers are an interesting and important development in the world of digital finance. They offer an easy and safe way to invest in cryptocurrencies. For anyone interested in the future of finance, crypto vouchers are a valuable and promising option.

How AI And Machine Learning Enable NFT Market To Fight Wash Trading And Counterfeits

https://e-cryptonews.com/how-ai-and-machine-learning-enable-nft-market-fight-wash-trading-and-counterfeits/

Artificial intelligence and machine learning technologies are helping to legitimize the non-fungible token (NFT) market by fighting wash trading and plagiarism.

The NFT market can return to its glory days as a revolutionary asset class, but it must first address several major challenges.

Wash Traders Inflate NFT Prices

For starters, wash trading remains one of the most notable issues that cast a shadow on NFTs’ potential to boost creativity and transform digital ownership. Wash trading is the deceptive practice where an investor sells and buys an NFT concurrently to develop the illusion of considerable trading volume, hence inflating the token’s price to ultimately sell it higher.

Unlike traditional cryptos, NFTs are not a liquid market, making it quite easy for criminals to artificially inflate trading volumes.

Earlier this year, a report from NFT analytics provider bitsCrunch titled “BitsCrunch NFT Wash Trade Report for 2022,” highlighted that NFT wash trading has increased in 2022 by 25 times to nearly $33 billion. It means that over 50% of the Total $54 billion in NFTs traded on the Ethereum blockchain in 2022 was linked to wash trading.

Over half of the $54 billion in NFTs traded on Ethereum in 2022 resulted from wash trading. Source: bitsCrunch

Over half of the $54 billion in NFTs traded on Ethereum in 2022 resulted from wash trading. Source: bitsCrunch
Over half of the $54 billion in NFTs traded on Ethereum in 2022 resulted from wash trading. Source: bitsCrunch

In February 2023, CryptoSlam found that nearly $577 million worth of NFTs had been suspected of wash trading on Blur, now the second-biggest NFT marketplace by trading volume.

Related:What Are NFT Royalties?

Counterfeit NFTs Dilute The Value Of Original Pieces

Another big issue in the NFT market is the high prevalence of counterfeit and plagiarized NFTs. NFTs have two components – the technical aspect that represents the asset with the distinct identifier on the blockchain and the digital representation, which can be duplicated easily.

In October 2023, a federal judge in California mandated a conceptual artist to compensate approximately $1.5 million in damages to Yuga Labs for replicating NFTs from the Bored Ape Yacht Club collection and profiting from the unauthorized duplicates.

This case highlights the challenges faced by lesser-known digital artists and creators who may be more vulnerable to the risk of counterfeit NFTs, unlike major NFT collections with greater resources to combat such infringements.

The problem of forging NFT is that it dilutes the value of original creations and seriously threatens the reliability and integrity of the whole NFT ecosystem. Validity is touted as the cornerstone of the NFT industry, but it is severely compromised by fake art.

These challenges, counterfeit NFTs and wash trading, result in a considerable loss of perceived value and trust within the NFT market. Most of the potential users remain doubtful, which hinders the mainstream adoption of NFTs.

As a result, the NFT space deals with missed opportunities in attracting a wider user base, which is important for its long-term sustainability and upgrades beyond a niche market.

How AI And Machine Learning Can Enhance the NFT Market

Emerging technologies like machine learning and artificial intelligence can help in addressing the main challenges in the NFT space. AI is not just a helpful technology to support creativity and deliver distinct digital art, it also meets the need for better analytics and insight.

Machine learning and artificial intelligence can take on-chain analysis to a new level, which helps the market detect wash trading deals in real-time and identify any fake NFTs.

Related:Types of Exploits in DeFi You Need to Watch Out For

Leveraging AI To Resolve Wash Trading And Fake NFTs

BitsCrunch, an AI-powered non-fungible token analytics platform, fights wash trading to help traders with fair price discovery and developers with reliable NFT decentralized applications (dApps) development. Its wash trading index uses AI and ML to detect any suspicious trading patterns in real-time, help safeguard investors from any manipulated market prices, and power informed investment decisions.

This index offers an extensive overview of wash trading activity across multiple blockchains, NFT collections, and marketplaces, which allows market analysts and participants to gain valuable insights into the real state of the market. The data empowers informed decision-making, enabling users to discover genuine market trends and avoid artificially inflated volume.

For investors, the wash trading index is an important tool for assessing the legitimacy of trading activities. By analyzing the index, investors can find the NFT collections that have high incidences of wash trading, possibly meaning that their prices are inflated or there are deceptive marketing practices involved.

Source: bitsCrunch

Source: bitsCrunch
Source: bitsCrunch

NFT investors and developers can use other AI-powered tools for many use cases, including:

  • Analytics – NFT and blockchain analytics projects have access to the most extensive NFT database. bitsCrunch also provides the biggest repository of ERC-20 historical data available.
  • Fraud detection – bitsCrunch is designed with fraud detection and alerting mechanisms, enabling users to detect suspicious trading and set up notifications and alerts.
  • Price discovery – insights on pricing trends can help digital artists price their NFTs accordingly.
  • Lending – NFT lending tools can use bitsCrunch for accurate collateralization based on data-driven insights.
  • Audience engagement – marketing teams can use bitsCrunch data on buyer preferences and behaviors to enhance community engagement strategies.

Source: bitsCrunch

Source: bitsCrunch
Source: bitsCrunch

What makes bitsCrunch unique is that it utilizes a community-driven approach, being a fully decentralized network. The co-founder of bitsCrunch, Saravanan Jaichandaran, commented:

“Our network is not just a concept. Its vibrant ecosystem empowers users and developers through permissionless participation, meaning anyone can join and contribute without centralized approval, and community-driven growth. The platform grows with its community by continuously adding new features and use cases.”

The network is supported by BCUT, bitsCrunch’s native token, which plays an integral role in maintaining the integrity of the network.

By offering market participants clear insights into the authenticity of trading activity, bitsCrunch contributes to a safer NFT environment where the investors navigate with trust and confidence.

Hong Kong Ready To Accept Proposals For Crypto Spot ETFs

https://e-cryptonews.com/hong-kong-ready-to-accept-proposals-for-crypto-spot-etfs/

While considering the custody arrangements, the Securities and Futures Commission (SFC) insists that the fund’s trustee or custodian can delegate its crypto custody function solely to an SFC-licensed VATP or entities that meet crypto custody standards set forth by the HKMA.

Hong Kong has stated that it is ready to receive applications from traditional financial firms interested in exploring the emerging economy by developing exchange-traded funds (ETFs) that track spot-based cryptos.

The nation already permits futures-based crypto ETFs and has approved listing ETFs like the Samsung Bitcoin Futures Active, CSOP Ether Futures, and CSOP Bitcoin Futures. The crypto-friendly country is now ready to open its borders to welcome spot ETFs for retail investors.

Hong Kong Is Ready For Crypto Spot ETFs

The nation’s financial regulators, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) shared this news in a joint circular published on December 22.

Based on the financial regulators, the Asian nation has managed to review its “professional investors only” regulation, established in 2018 to accommodate different investment options for retail investors, including digital assets.

Related:Bitcoin ETFs: BlackRock and Other Firms Choose Cash Redemptions

The joint statement reads:

“The policy has been updated in light of the latest market developments, where the SFC has authorized VA futures ETFs and is prepared to accept applications for the authorization of other funds with exposure to virtual assets, including virtual asset spot exchange-traded funds (VA spot ETFs).”

The watchdogs said they got increased requests from intermediaries about the possible distribution of investment products with exposure to virtual assets.

Nevertheless, with the recent update, these firms can now submit applications for offering spot Ethereum (ETH), Bitcoin (BTC), or other digital asset funds for retail investors.

Related:JPEX Announces Partnership with Hong Kong-listed Company, Synertone

Hong Kong Crypto

Hong Kong Crypto

Hong Kong Imposes Strict Guidelines For Crypto Spot ETFs

In another circular, the SFC has highlighted the criteria for approving cryptocurrency spot ETFs, detailing the needs that financial regulators would consider.

Based on the statement, firms need to guarantee that the funds comply with all the relevant regulations in the Overarching Principles Section and the Code to provide such investment products to clients. These rules and regulations are stipulated in the Unit Trusts and Mutual Funds (UT Code) within the SFC Handbook, featuring Mutual Funds, Unit Trusts, Unlisted Structured Investment Products, and Investment-Linked Assurance Schemes.

Additionally, SFC-authorized VA Funds management firms have to demonstrate a strong track record of regulatory compliance before floating crypto spot ETFs.

They need one or more competent staff members with the necessary experience in managing virtual assets and related products. These firms will be subject to extra terms and conditions imposed by the Licensing Department when applicable.

This circular specified that crypto transactions executed by these ETFs need to take place on SFC-licensed cryptocurrency platforms or authorized financial institutions.

Considering the custody arrangements, the SFC insists that the fund’s trustee or custodian can delegate its crypto custody function solely to an SFC-licensed VATP or entities that meet the crypto custody standards set forth by the HKMA.