Crypto prices steady, Arbitrum DAO drama and what’s coming down the line in markets

https://www.theblock.co/post/224434/crypto-prices-steady-arbirtrumdao-drama-whats-coming-markets?utm_source=rss&utm_medium=rss

Crypto prices shrugged off the Commodity Futures Trading Commission’s case against Binance early in the week as bitcoin clocked its best quarter since 2021.

Bitcoin was trading at $28,200, up about 2.6% over the past week, according to Coinbase data via TradingView. The first quarter of the year saw bitcoin jump more than 70% as risk assets rallied, leading to its best quarter since the first of 2021. 

Binance and CEO Changpeng Zhao are being sued by the CFTC for allegedly violating federal laws and not registering the exchange in the U.S. The regulator’s move caused crypto prices to dip at the top of the week before shrugging off the news. The BNB coin fell about 3% to $314 over the past week.

Ether was up about 3.2% over the past seven days, trading around $1,800. Ripple’s XRP added around 18% following news from its case with the SEC, although a verdict is still some time off. Cardano’s ADA added over 8%, and dogecoin jumped 7.5% in the same period.

DAO-rama

The price of ARB fell to $1.18, down 7.2% over the past 24 hours, according to data via CoinGecko.

The drop followed the news that the Arbitrum Foundation had begun selling ARB tokens for stablecoins before the community had formally ratified its budget. 

 
"The Arbitrum Foundation set aside nearly $1 billion worth of ARB tokens and utilized some of it before its governance proposal was ratified without disclosing how the tokens were utilized," Eden Au, a research director at The Block Research, said.
 
This left the community to speculate whether the foundation had sold some of its tokens before voting, he said.
 
Arbitrum’s long-awaited airdrop went live on March 23 with governance tokens given to users of the Ethereum Layer 2 scaling solution. Over one billion ARB tokens were allocated to nearly 300,000 wallets, creating a decentralized autonomous organization, the ArbitrumDAO. 

What’s coming up

With the first quarter of 2023 over and done with, several key economic indicators lie ahead in April for the U.S. Traders and the Fed will keenly watch next Friday’s U.S. jobs report. Any signs of a softening labor market could impact interest rate expectations. 

Inflation data for March on April 12 will also prove pivotal to any potential Fed pivots or pauses. An advanced estimate of first-quarter GDP will be released on April 27. 

There’s no Fed decision in April, with the next FOMC interest rate decision expected on May 3. The CME’s FedWatch tool shows markets are split on whether the Fed will pause or increase by 25 basis points again. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Arbitrum sells tokens amid 77% disapproval, claims DAO governance ‘working as intended’

https://www.theblock.co/post/224444/arbitrum-sells-tokens-aip1?utm_source=rss&utm_medium=rss

Questions are being asked on a Sunday regarding Arbitrum’s governance after its centralized, self-titled foundation sold ARB tokens before the conclusion of a key governance vote, rendering the democratic process essentially moot.

The "special grants" program sees the Arbitrum Foundation receiving 750 million ARB governance tokens — worth nearly $1 billion — to spend without the expressed approval of token holders.

Rebranding the keystone Arbitrum Improvement Proposal’s vote as a "ratification," the Arbitrum Foundation nonetheless claims "decentralized governance is working as intended" via both the official Arbitrum Twitter account and a lengthy governance forum post.

It also claimed it did not sell 50 million governance tokens but rather allocated 40 million "as a loan to a sophisticated actor in the financial markets space" and converted 10 million to fiat for "operational costs." Prominent market maker Wintermute confirmed it is the former via retweet.

Free governance responsibilities (kind of)

The debacle follows the high-profile airdrop of Arbitrum governance tokens to users of the Ethereum Layer 2 scaling solution last week, which saw more than one billion ARB tokens allocated to nearly 300,000 wallets — creating a so-called decentralized autonomous organization, ArbitrumDAO.

Token holders and the wider crypto community have taken to Twitter to voice concerns (and jokes) over the apparent lack of decentralized autonomy. A wider theme is that some aren’t buying the Arbitrum Foundation’s lengthy argument, claiming it’s merely a lot of words to say, "we sold."

The Arbitrum Foundation, however, claims this is merely a "chicken and egg problem," as "certain parameters need to be decided" before truly decentralized governance may be reached. It also claims the massive "special grants" combats "voter fatigue" and are crucial to the project’s viability against the competition.

AIP-1 is currently slated to fail, with more than 77% of the total vote against its passing, as of 3:00 p.m. EDT.

The price of Arbitrum’s governance token declined by 8% over the past 24 hours.

Disclaimer: Evgeny Gaevoy, the founder and CEO of Wintermute, sits on The Block’s board of directors and holds an equity stake in the company.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Arbitrum Foundation plans to steal $750 million via AIP-1?

https://www.fxstreet.com/cryptocurrencies/news/arbitrum-foundation-plans-to-steal-750-million-via-aip-1-202304020630

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  • Arbitrum Foundation’s first governance proposal stirred a controversy as it recommended the transfer of 750 million tokens to Special Grants. 
  • While Arbitrum Foundation’s documents state 4.278 billion ARB tokens were meant to be allocated to the DAO treasury, only 3.5 billion have been transferred. 
  • 750 million tokens represent 7.5% of ARB’s total supply, this has raised concerns in the community. 

The Arbitrum blockchain’s first governance proposal asked for transfer of 750 million ARB tokens worth nearly $1 billion to a “Special Grants” program. This would transfer control of nearly 7.5% of ARB’s total supply to three directors, therefore requiring careful consideration by the community. 

Also read: Will MATIC price conquer the bullish target of $2 again?

Arbitrum’s $750 million governance proposal, a controversy

The Arbitrum Foundation alarmed the ARB community with its first attempt at governance on April 1. The proposal called for 750 million ARB tokens, worth nearly $1 billion to fund a “special grants” program that would foster the ecosystem’s growth. 

The proposal, AIP-1 has raised concerns because the transfer to special grants would exclude grant allocations from on-chain governance. A team of three directors would be responsible to determine who receives the grants, when and how many ARB tokens are distributed to them. 

No votes would be required from the community and this has resulted in criticism on crypto Twitter. Chris Blec, a crypto advocate and proponent criticized Arbitrum Foundation’s move in a recent tweet:

Why does the Special Grants proposal take a step back in transparency?

Blockworks Research commented on Arbitrum Foundation’s move and explained that while AIPs are expected to improve DAO governance and transparency, the proposal represents a step backwards. 

With no mention of security or oversight from the community, with no provision to vote on grant allocations, a team of three directors that control the foundation would hand out “Special Grants.” This makes it questionable and garners criticism from the community of ARB holders and DAO proponents in the crypto ecosystem. 

The three directors identified by Blockworks are Campbell Law, Edward Noyons and Ani Banerjee. 

Cause of concern for ARB holders?

There are a few key moves since the ARB airdrop that have raised questions among DAO researchers and ARB token holders. As per the Arbitrum Foundation’s documents, 4.278 billion ARB tokens were meant to be allocated to the Arbitrum DAO treasury. 

However, as seen in the table from AIP-1, only 3,527,046,079 ARB tokens have been transferred to the DAO treasury. 

DAO treasury receives smaller than promised share

It was stated that the ArbitrumDAO would have direct on-chain governance powers over the treasury, therefore the community finds no explanation for 750 million ARB to be taken out and moved to a “Special Grants” allocation that has no oversight. 

Blockworks Research’s recent tweet reveals that the firm has reason to believe that Offchain Labs has pre-emptively separated the Administrative Budget Wallet, as seen from the two DAO Treasury wallets below.

ARB holder addresses in AIP-1

The new address is not listed in the token distribution addresses in foundation documents.

The contract address represents a multi-sig wallet, however it is not a part of the documentation and leaves a security loophole if malicious actors gain access to the 699 million ARB. 

3 reasons why Ethereum price can reach $3K in Q2

https://cointelegraph.com/news/3-reasons-why-ethereum-price-can-reach-3k-in-q2

Ethereum’s native token, Ether (ETH), eyes a run-up toward $3,000 in Q2 2023 after wrapping the previous quarter with 55% gains.

ETH price nears potential breakout

The price of Ether has more that doubled after bottoming out in June 2022 at around $880, weathering a slew of negative events, including the FTX exchange collapse, interest rate increases, and stricter U.S. regulations.

In doing so, ETH/USD has painted an ascending triangle, confirmed by its rising trendline support and horizontal level resistance. The pattern suggests aggressive buying as lows get steadily higher while highs stay around the same level, indicative of a higher selling pressure at the given level. 

As of April 2, ETH’s price is testing its horizontal level resistance range ($1,700-1,820) for a potential breakout move.

ETH/USD three-day price chart featuring ‘ascending triangle’ bottom setup.

A breakout will be confirmed if the price closes above the resistance range while accompanying higher volumes. Furthermore, the ascending triangle breakout target is measures with the length equal to the triangle height.

In other words, the bullish ETH price target is in the $3,350-3,900 range, depending on where traders see the triangle’s rising trendline support, as shown by the T1 and T2 in the chart above. This would be suggest 80% gains by June 2023.

Conversely, a pullback from the $1,700-1,820 range risks delaying the upside setup, and resulting in a broader price correction.

Ethereum whale accumulation remains strong

From an on-chain perspective, Ether’s short-term and long-term trends look skewed toward the bulls.

Most Ethereum whale cohorts have increased their ETH accumulation in recent weeks, according to the latest data from Santiment. For instance, the supply of Ether held by addresses with a 1,000-10,000 ETH balance (blue in the chart below) has grown by 0.5% in March.

Ether supply distribution among investors holding at least 1,000 ETH. Source: Santiment 

Similarly, the 1 million-10 million ETH (brown) and the 10 million-100 million ETH balance cohorts have witnessed 0.4% and 0.5% rises, respectively. 

The growth appeared amid what appears to be the absorption of selling pressure introduced by the 100,000-1 million ETH (pink) and 10,000-100,000 ETH (orange) address cohorts.

At the same time, the growth could attributed to the network’s proof-of-stake contracts — directly or by using third-party stakers such as Lido DAO (LDO).

Ethereum 2.0 total value staked [in ETH]. Source: Glassnode

The net Ether deposited at the official Ethereum 2.0 address crossed above 18 million ETH after rising about 3.5% in March.

Related: Analysts debate the ETH price outcomes of Ethereum’s upcoming Shapella upgrade

The deposits have grown ahead of Ethereum’s Shanghai and Capella upgrades on April 12, which would enable stakers to withdraw ETH from the PoS smart contract. Currently, this is not possible.

MVRV Z-Score: Ethreum price bottom reversal

More bullish arguments stem from Ethereum’s MVRV Z-Score entering a stage that has previously preceded long-term ETH price rallies.

Ethereum MVRV-Z Score. Source: Glassnode

The MVRV Z-Score assesses when Ethereum is overvalued and undervalued relative to its “fair value.” As a rule, the MVRV Z-score indicates a market top (red zone) when market value rises above realized value, while the opposite indicates market bottoms (green zone).

Ether’s previous price recoveries coincide with its MVRV Z-Score bouncing from the green zone, suggesting the same could happen over the next three months.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Arbitrum’s first governance proposal sparks controversy with $1B at stake

https://cointelegraph.com/news/arbitrum-s-first-governance-proposal-sparks-controversy-with-1b-at-stake

A proposal to fund the Arbitrum Foundation with 750 million ARB tokens — nearly $1 billion — raised controversy in the ARB community over the weekend, as the Foundation announced that it was only ratifying a decision that had already been made. 

The conflict comes after a few days the layer-2 protocol airdropped its governance token.

According to the AIP-1 proposal on Arbitrum’s DAO, the 750 million tokens would be used to cover “Special Grants, reimbursing applicable service providers […] and covering ongoing administrative and operational costs of The Arbitrum Foundation.”

Among tokens holders, over 70% are against the move at the time of writing.

Screenshot: AIP-1: Arbitrum Improvement Proposal Framework. Source: Arbitrum DAO. 

After facing backlash from community members, the Foundation said in a forum post on April 2 that AIP-1 was a ratification, not a proposal. It also noted that part of the tokens were already sold for stablecoins. In other words, its billionaire budget and allocations would not be subject to an on-chain governance process.

The Arbitrum Foundation claims the symbolic first governance attempt failed due to communication problems and decisions that were “clearly not articulated correctly”:

“One of the mistakes in the drafting of AIP-1 was a failure to note at the outset that this proposal was intended to act as a ratification of the initial setup of both the Arbitrum DAO and the Foundation that has been created to serve the DAO. […] the point of AIP-1 was to inform the community of all of the decisions that were made in advance.”

Commenting on the governance forum, members of the community pointed out that Arbitrum’s team “has been dumping tokens that were initially informed to the community as locked tokens,” claiming that “all tokenomics page shows only User airdrop + DAO airdrop tokens as unlocked” with remaining “tokens to unlock in March 2024.”

Others highlighted that under the United States securities laws, the anticipated sale would be considered fraud, and that U.S. citizens who have bought ARB tokens or claimed the airdrop “are eligible for legal remedies.”

“I will be pursuing this with my lawyers and expect to file a securities fraud lawsuit in the next few days. […] Immediately, the Arbitrum Foundation is advised to halt all illegal sales of the token that are being done without any authorization and against the provisions of the law,” said a community member.

Arbitrum’s blockchain holds 65% of the Ethereum layer 2 market share, shows data from the layer-2 analytics site L2Beat. The highly anticipated launch and airdrop of its native governance token took place on March 23, with hundreds of thousands of eligible users and DAOs claiming ARBs. Overwhelming user demand led the airdrop claim page to crash shortly after its launch, Cointelegraph reported. 

Arbitrum (ARB) Drops 11% as Foundation Dumps 50M Tokens For Stablecoins

https://beincrypto.com/arb-drops-11-foundation-dumps-50m-tokens/

Arbitrum’s decentralized governance plan is off to a rocky start after the Foundation started selling ARB tokens for stablecoins ahead of the community ratification.

The Arbitrum Foundation had sold 50 million tokens from the 750 million ARB tokens it allocated itself before requesting authorization from the community.

Arbitrum Foundation Sold ARB (Source: Etherscan)

In an April 2 blog post, an employee of the Foundation tried to clarify its actions.

AIP-1

In March, Arbitrum airdropped its users with its token and announced plans to switch to decentralized governance. Before the announcement, the Foundation had made some decisions, including allocating 7.5% of the total token supply to itself.

The Arbitrum Foundation launched the Arbitrum Improvement Proposal (AIP-1) to ratify these decisions. However, issues arose after it was revealed that the Foundation did not wait for the vote outcome before selling the tokens. The vote will end on April 3, but an overwhelming majority of the community, 70%, have voted against it.

Arbitrum’s Foundation Response

Patrick McCorry explained that the Foundation sees the AIP-1 proposal as mere ratification. According to him, this was why it started using the tokens in the interest of the DAO, including converting some ARB tokens into stablecoins.

McCorry said setting up a DAO creates a chicken and egg problem. In this case, certain parameters require a decision before the DAO is even formed.

Going by McCorry’s explanation, AIP-1 is not a vote but a way to inform the community about decisions already taken. He added that AIP-1 gives the Foundation some blank check powers because they’re fundamental for the network to retain its competitive edge.

Community Lashes Arbitrum

Meanwhile, several crypto community members have criticized the Foundation’s actions, with some suggesting they buy back the sold tokens.

Crypto investor Zaheer said the Foundation has only one way of repairing its reputation. According to Zaheer, the Foundation should submit a “proposal to rebuy the sold ARB and issue a new proposal for the DAO to determine how, when, and how much ARB will be sold for the foundation.”

Zaheer added:

“If they double down and continue selling after the community clearly voted against, all goodwill in the near term will be dead.”

Meanwhile, the Foundation’s action has negatively affected ARB’s price performance. The token has declined 10.79% in the last 24 hours to $1.17 as of press time, according to BeInCrypto data.

Arbitrum ARB Price Chart
ARB Price Performance (Source: BeInCrypto)

The post Arbitrum (ARB) Drops 11% as Foundation Dumps 50M Tokens For Stablecoins appeared first on BeInCrypto.

USDC’s Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins

https://www.coindesk.com/consensus-magazine/2023/04/02/usdcs-depeg-laid-bare-the-risks-traditional-finance-poses-to-stablecoins/

Other, smaller-circulation stablecoins lost their pegs, too, including BUSD, issued by Paxos, and crypto-backed stablecoin DAI, issued by MakerDAO. Only USDT seemed to benefit from the turmoil, briefly exceeding $1, most likely because of investors shifting out of the depegged stablecoins.

Stress test? What Biden’s bank bailout means for stablecoins

https://cointelegraph.com/news/stress-test-what-biden-s-bank-bailout-means-for-stablecoins

The collapse of Silicon Valley Bank (SVB), which suffered a bank run after revealing a hole in its finances over the sale of part of its inflation-hit bond portfolio, led to a depegging event for major stablecoins in the crypto sector, leaving many to wonder whether it was a simple stress test or a sign of weakness in the system.

The second-largest stablecoin by market capitalization, the Centre Consortium’s USD Coin (USDC), saw its value plunge to $0.87 after it was revealed that $3.3 billion of its over $40 billion in reserves was held at SVB and was, as a result, possibly lost. Coinbase seemingly exacerbated the crisis when it, a member of the Consortium, announced it was halting USDC-to-dollar conversions over the weekend.

As USDC lost its peg, so did decentralized stablecoins using it as a reserve asset. The most notable of which is MakerDAO’s Dai (DAI), a cryptocurrency-backed stablecoin that has well over half of its reserves in USDC.

Stablecoins restored their peg after the United States government stepped in and ensured depositors at SVB and Signature Bank would be made whole, in a move meant to stop other entities from suffering irreparable damage. According to United States President Joe Biden, taxpayers did not feel the burn of the bailout, and the traditional finance system was safe after the intervention.

The crisis, however, did not end there. While the U.S. government stepping in helped stablecoins recover their peg, many quickly pointed out that taxpayers would ultimately suffer the depositors’ bailout.

The banking crisis’ effects on digital assets

Financial institutions have since banded together to protect other banks, with investors and depositors raising questions about the stability of a number of other institutions, including Deutsche Bank.

Credit Suisse collapsed after investments in different funds went south and an unsubstantiated rumor on its impending failure saw customers pull out over 110 billion Swiss francs of funds in a quarter from it, while it suffered a loss of over 7 billion CHF.

Recent: The secret of pitching to male VCs: Female crypto founders blast off

The collapse saw the Swiss government broker an “emergency rescue” deal where Credit Suisse was acquired by rival UBS at a steep discount. Speaking to Cointelegraph, Jason Allegrante, chief legal and compliance officer at blockchain infrastructure company Fireblocks, said that the banking crisis was partly caused by rising interest rates exposing banks with large portfolios of low-interest-rate bonds to risk.

Per Allegrante, the role of the liquidity coverage ratio, a regulatory requirement forcing banks to hold a certain amount of “high-quality liquid assets” to prevent these liquidity crunches, is not being openly discussed.

He said it’s “entirely possible we are in the early stages of a nationwide run on regional banks.” If this happens, he said, there will not only be widespread regional bank failure but there will “likely be further consolidation and concentration of deposits in a handful of large, systematically important banks.”

He added that such a crisis would put pressure on regional banks to sell assets to meet liquidity needs and could ultimately lead to more bank failures. Allegrante added that this would have “far-reaching consequences for the digital asset industry in the United States and abroad.”

Becky Sarwate, spokesperson and head of communications at cryptocurrency exchange CEX.io, told Cointelegraph that the crisis could be a boon for digital assets, saying:

“One thing is clear: Similar to how Bitcoin blossomed from the wreckage of the 2008 financial crisis, the failure of institutions like SVB and Signature Bank is compelling evidence for diversification across multiple investment verticals.”

Sarwate added that when “traditional pathways prove equally volatile from the perspective of a crypto curious participant, it throws the inherent risk of any market participation into relief.” She added that while digital assets lack some of the protections seen in traditional finance, they “offer an alternative set of benefits that, in our current climate, could be appealing to nervous investors.”

Investors holding onto stablecoins and earning yield through them, however, may have believed they were already diversifying and sidestepping the market rout that was occurring. Circle, the issuer of USDC, suggested the depeg event was a “stress test” that the system weathered.

Mitigating risk for stablecoins

If the Federal Deposit and Insurance Corporation (FDIC) were to extend insurance to crypto-related institutions, it could alleviate concerns about the security of digital assets under their custody. That same insurance helped USDC and other stablecoins recover their peg after the collapse of SVB, making a strong case for FDIC insurance to boost crypto adoption.

While that insurance typically only goes up to $250,000, the FDIC opted to make every depositor whole, essentially protecting Circle’s $3.3 billion in reserves held at the bank. Speaking to Cointelegraph, a spokesperson for the stablecoin issuer said that the events highlighted “how there’s a co-dependency — not a conflict — in banking and digital finance.”

The spokesperson added that just as the 2008 global financial crisis led to comprehensive banking reforms, it may be “well past time that the U.S. acts on federal payment stablecoin legislation and federal oversight of these innovations.” The spokesperson added:

“The emphasis here is the importance of shoring up markets and confidence, protecting consumers and ensuring that outcomes, in the long run, prove that the stress test could have been weathered by traditional financial firms and Circle.”

To Circle, a stable U.S. banking system that ensures deposits are safe and accessible is essential to the financial system, and the U.S. government’s actions to make depositors whole demonstrated their “recognition of this fact.” The safety and soundness of the banking system are critical to dollar-backed stablecoins, the firm added.

Circle has revealed that it has since moved the cash portion of USDC’s reserve to Bank of New York Mellon, the world’s largest custodian bank with over $44 trillion in assets under custody, with the exception of “limited funds held at transaction banking partners in support of USDC minting and redemption.”

The firm added it has “long advocated for regulation such that we can become a full reserve, federally supervised institution.” Such a move would insulate its “base layer of internet money and payment systems from fractional reserve banking risk,” the spokesperson said, adding:

“A federal pathway for legislation and regulatory oversight allows for the U.S. to be represented and have a seat at the table as the future of money is being discussed around the world. The time to act is now.”

Commenting on the depeg, Lucas Kiely, chief investment officer of Yield App, noted that what happened can be “largely attributed to fears around liquidity,” as most stablecoins are “essentially an IOU note backed by securities that holders don’t have a lien on.”

Per Kiely, stablecoins have “been sold as asset-backed instruments, which like any other asset carry investment risk.” Danny Talwar, head of tax at crypto tax calculator Koinly, said that USDC and Dai may “temporarily suffer from a lack of confidence over the short to medium term following the mini-bank run.”

CEX.io’s Sarwate, however, said the confidence in these stablecoins “has gone unchanged,” as both Dai and USDC “retreated back to their reflections of the U.S. dollar and resumed all prior uses they enjoyed before the depegging event.”

To members of the decentralized autonomous organization (DAO) that governs Dai, MakerDAO, confidence was seemingly unaffected. A recent vote has seen members of the DAO opt to keep USDC as the primary collateral for the stablecoin over diversifying with Gemini Dollar (GUSD) and Paxos Dollar (USDP) exposure.

Given USDC’s move of the cash portion of its reserves to a stronger custodian, the depegging event may have simply strengthened both stablecoins after a short period of panic.

Leveling the playing field

That strengthened position, according to Koinly’s Talwar, could also come as cryptocurrency startups and exchanges search for alternative banking providers, although the “de-banking of crypto businesses could seriously harm the sector and innovation in blockchain-based technologies” if they fail to find alternatives.

In the medium term, Talwar said, the collapse of cryptocurrency-friendly banks “will compound with the more crypto-native collapses from the past year, resulting in a challenging environment for blockchain innovation to thrive within the United States.”

Yield app’s Kiely said that the U.S. government’s recent bailout was different from the one seen in the global financial crisis, although it raises “questions over whether there needs to be an adjustment in the supervisory guidelines to address interest rate risk.”

The Fed’s bailout, he said, could be removing incentives for banks to manage business risks and send a message they can “lean on the government’s support if customer funds are mismanaged, all with no alleged cost to the taxpayer.”

Recent: How a TikTok ban in the US could affect the crypto industry

As for stablecoins, Talwar said he sees a need for more stablecoin options, even though the launch of euro-backed stablecoins helped in this regard. CEX.io’s Sarwate noted that the U.S. banking and stablecoin crisis helped “level the playing field between traditional finance and crypto.”

While crypto is still a nascent industry, she said, there’s “potential within the space for visionaries to lead by example and carve out an alternative to speculative investing. In the long term, this could help yield a more balanced system.”

In the typical crypto ethos, players in the space are already finding ways to mitigate risks associated with the traditional financial system. While U.S. regulators warn against crypto, the sector moves to strengthen its position in the financial world.

Polygon (MATIC) Price Prediction 2025-2030: Will hard fork spur MATIC’s fortunes

https://ambcrypto.com/polygon-matic-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject

Ethereum’s (ETH) popular scaling solution Polygon (MATIC) has seen a price appreciation of more than 42% since the beginning of 2023. The Polygon network recently underwent a key hard fork, an upgrade that its community had been anticipating. The hard fork addressed the spikes in the network’s gas feed and disruptive chain reorganizations.


Read Price Prediction for Polygon (MATIC) for 2023-24


MATIC’s popularity has been driven by its use case as a Layer 2 scaling solution for Ethereum, providing faster and cheaper transactions and increased scalability to the Ethereum network. This is especially useful for dApps, which often struggle with high transaction fees and slow transaction speeds on Ethereum. Additionally, MATIC has a strong community and developer base, which has helped to drive its adoption and usage.

Unlike other cryptocurrencies with unlimited supply, the supply of MATIC is limited, adding to its scarcity and value. The Polygon team is working towards bringing more users and developers onto the network, and with its focus on performance, user experience, and security, it is well-positioned to play a major role in the growth of the Ethereum ecosystem.

The increase in MATIC’s price can be attributed to the growing popularity of the Ethereum network and the enthusiasm that companies have shown in implementing their Ethereum-based dApps using Polygon. This has made Polygon an attractive investment opportunity for those looking to invest in blockchain technology.

The unique features of Polygon have made it a go-to solution for dApp developers looking to scale their projects, and its growing popularity and adoption are likely to drive the value of MATIC higher in the coming years.

MATIC has seen a price appreciation of more than 28% since the beginning of 2023. However, on the back of the Silvergate crisis and the Biden administration taking many steps to regulate the crypto-sector, MATIC, like the rest of the market, fell down the charts.

The Polygon network recently underwent a key hard fork, an upgrade that its community had been anticipating. The hard fork addressed the spikes in the network’s gas fees and disruptive chain reorganizations.

report published by Blockchain analytics firm Messari showed that the third quarter of 2022 saw a 180% increase in the number of MATIC’s active addresses Q0Q, with total transactions for the quarter coming in at 2 billion.

Additionally, Polygon’s partnership with Warren Buffet-backed Nubank, which was announced last week, is being seen as a positive development for the network.

Popular TV Network SHOWTIME recently announced a collaboration with Polygon and Spotify.

In other news, Polygon informed users that Ethereum’s Merge had dramatically reduced its carbon dioxide emissions.

Polygon Network reached a new milestone on 15 November after the number of unique addresses reached 191.2 million. Data from polygonscan shows that the daily transactions on the Polygon chain took a significant hit following the news of FTX’s bankruptcy. As of 15 November, the total transactions stood at 3.26 million.

Polygon announced a partnership with Nike earlier this week. This joint venture will see the sportswear apparel brand bild it’s web3 experiences exclusively on Polygon.

MATIC’s YTD chart may suggest a buy signal, given that the crypto is currently well above $1, compared to $2.58 towards the beginning of the year. While this may look like a ripe opportunity to beef up MATIC holdings at a discounted price, it is important to look at other factors while making an investment decision.

One possible reason for the decline in the daily volume of MATIC is the Ethereum Merge, which took place on 15 September. The crypto has taken a hit following the Merge event, with both market cap and daily volume on a downtrend.

Polygon recently published an analytical insight into its bridge flow between January and August 2022. A closer look at the numbers revealed that in these eight months, more than $11 billion entered the Polygon ecosystem from multiple chains. Ethereum and Fantom Opera contributed the most with an inflow of $8.2 billion and $1.06 billion, respectively, which also puts it at the top in terms of net volume.

As far as bridges are concerned, Ethereum’s PoS bridge and Plasma bridge accounted for a net volume of $1 billion and $250 million within this time period. Meanwhile, Ethereum’s PoS and Fantom Opera’s Multichain bridge accounted for a combined outflow volume of more than $7.2 billion. Considering all 43 bridge chain pairs, the average volume comes out to be $48 million.

Data from CoinMarketCap showed that at press time, MATIC was trading at $1.1105, up 0.72% in the past 24 hours. The token’s $10,162,803,194 market capitalization makes it the ninth largest crypto in the world. 

Source: MATIC/USD, TradingView

In 2021, MATIC’s price went soaring thanks to the increasing popularity of Ethereum and surging activity in NFTs and play-to-earn games like Axie Infinity. MATIC began the year at a humble $0.018 and a market cap of $81 million. By the end of the year, MATIC’s market cap hit a whopping $20 billion, with the altcoin touching its all-time high of $2.92 on 27 December.

On 12 May 2021, Ethereum co-founder Vitalik Buterin donated crypto worth $1 billion to India’s Covid-19 relief fund set up by Nailwal. This seemingly unrelated event caused MATIC to surge by 145% within the next 48 hours. By 18 May, the token had gone from $1.01 all the way up to $2.45, gaining 240%.

In May 2021, Polygon was in the news after it received backing from billionaire investor Mark Cuban, who revealed plans to integrate his NFT platform Lazy.com with Polygon. Following his investment in Polygon, Cuban claimed that the Polygon Network was “destroying everybody else” at the Defi Summit Virtual Conference in June 2021.

Since the beginning of 2022, Polygon has secured various partnerships, most notably with Adobe’s Behance, Draftkings, and billionaire hedge fund manager Alan Howard for the development of Web3 projects. Polygon boasts partnerships across various industries. Instagram and Polygon have collaborated on NFTs too.

Stripe has launched global crypto pay-outs with Polygon. Fashion brands like Adidas Originals and Prada have launched NFT collections on polygon

Based on gathered adoption metrics, Alchemy has described Polygon to be the best-positioned protocol to drive the booming Web3 ecosystem. Data from Alchemy also showed that at press time, Polygon hosted more than 19,000 decentralized applications (dApps) on its network.

On 27 May 2022, Tether (USDT), the largest stablecoin by market capitalization, announced that it was launching on the Polygon Network. MATIC rose by more than 10% following news of the launch.

Citigroup released a report in April 2022, one in which it described Polygon as the AWS of Web3. The report went on to claim that the Metaverse economy is estimated to be worth a whopping $13 trillion by 2030, with most of it being developed on the Polygon Network. Citigroup also believes that Polygon will see widespread adoption thanks to its low transaction fees and developer-friendly ecosystem.

The Terra network’s collapse in May 2022 triggered an exodus of developers and projects. Polygon soon announced a multi-million dollar, Terra Developers Fund, in a bid to help the migration of anyone looking to switch networks. On 8 July, Polygon Studios CEO Ryan Wyatt tweeted that over 48 Terra projects had migrated to Polygon.

Crypto exchange Coinbase published a report on 8 August 2022 that claimed that the future of Layer 2 scaling solutions could very well be a zero-sum game, hinting that layer 2 solutions like Polygon could overtake Ethereum in terms of economic activity.

On 8 August 2022, blockchain security firm PeckShield reported a rug pull by the Polygon-based play-to-earn game Dragoma, following a sharp decline in the value of its native token DMA. The same has been corroborated by data from Polygonscan which shows a clear surge in token transfers and transfer amount on the day of the alleged rug pull which led to a loss of over $1 million.

In the week following Polygon’s announcement of the Gnosis bridge, MATIC surged more than 18% breaking the crucial resistance at $1 for a brief period. This feature paves the way for Web3 teams like DeFi protocols and DAOs to transfer assets between Ethereum and Polygon, for considerably fewer gas fees without compromising on security.

Numbers from the 32nd edition of PolygonInsights, a weekly report published by Polygon outlining key network metrics, indicated that in spite of dropping down from the $1 mark that MATIC had reclaimed barely a week before, not all was lost. Weekly NFT volume stood at $902 million, a whopping 800% increase from the previous week. Meanwhile, active wallets grew by 75% to 280,000.

In an industry that is often blamed for being energy intensive and harmful to the environment, Polygon has distinguished itself by achieving network carbon neutrality after offloading $400,000 in carbon credits. This nullified the carbon debt accrued by the network. As per the ‘Green Manifesto’ published by Polygon, they now plan to achieve the status of being carbon-negative by the end of 2022. In fact, they have pledged $20 million towards that milestone.

Cercle X, the world’s first decentralized application for waste management solutions, announced on 15 August that it had integrated with Polygon to leverage Web3 to digitize the garbage disposal process by developing a waste management dashboard.

Whale Movement

Source: Santiment

Data from blockchain analytics firm Santiment showed that following the market-wide sell-off triggered by the collapse of Terra, almost 30% of the supply held by top exchange addresses (whales) was taken off of exchanges, the same is corroborated by the visible spike in supply held by non-exchange addresses which indicate that supply held by non-exchange addresses soared all the way to 806 million MATIC.

However, come mid-June, this transfer was reversed, with investors rushing their MATIC holdings into exchanges and non-exchange holdings dropping by 240 million MATIC.

It would be safe to assume that these holdings came from non-exchange addresses as a sharp decline in supply held by them is visible. For over a month the holdings were rather dormant in their respective places, but by the end of July, supply held by top exchange addresses was slashed again, this time by 120 million MATIC. At the same time, non-exchange addresses held a whopping 6.6 billion MATIC.

Latest Stats

On August 30, Polygon released the 34th edition of PolygonInsights, a weekly analytics report where key metrics about the network, dApps and NFTs are published.

With 817,000 weekly active users, the network registered a 14% growth, compared to the 805,000 active users in the previous week. While daily transactions fell by 3%, the overall transactions were 12% cheaper than the week before. The average daily revenue came out to be $45,100.

Numbers in the NFT department were a lot more optimistic. The weekly NFT grew by a whopping 400%, reaching $656 million. The number of new NFT wallets surged by almost 60% with 60,000 new users registering with the network. Mint events and total NFT transactions were the two areas that didn’t see growth, with both numbers declining by 12% and 9% respectively.

dApp stats revealed that Arc8 and SushiSwap were the top two movers in the top 25 protocols. Arc8 registered more than 30,000 new users, a 51% increase from the previous week. SushiSwap on the other hand registered 8200 new users, reflecting a massive 88% increase over the previous week.

Polygon Tokenomics

Polygon has a maximum total supply of 10 billion tokens, out of which 8 billion are currently in circulation. The remaining 2 billion tokens will be unlocked periodically over the next four years and will primarily be disbursed through staking rewards. The initial exchange offering was held on Binance through the Binance Launch Pad to facilitate the sale of 19% of the tokens.

Source: Polygon Forum

Following is the breakdown of the current supply –

  • Polygon Team – 1.6 billion
  • Polygon Foundation – 2.19 billion
  • Binance Launchpad – 1.9 billion
  • Advisors – 400 million
  • Private sale – 380 million
  • Ecosystem – 2.33 billion
  • Staking Rewards – 1.2 billion

Understandably, there are many who are very bullish on MATIC’s future. Some YouTubers, for instance, believe MATIC will soon be worth $10 on the charts. In fact, he claimed that a “glorious” double-digit valuation for the token is inevitable.

“We’ve seen Polygon really picking up in the number of NFTs sold. We can see from July, when we had 50,000 Polygon-based NFTs sold, to now where we have… 1.99 million NFTs sold in the month of December on Polygon on OpenSea. That’s absolutely massive, massive growth for the Polygon ecosystem.”

MATIC Price Prediction 2025

After analyzing the altcoin’s price action, crypto-experts at Changelly concluded that MATIC should be worth at least $3.39 in 2025. They forecasted a maximum price of $3.97 for that year.

According to Telegaon, MATIC should be worth at least $6.93 by 2025, with an average price of $7.18. The maximum price projected by the platform is $9.36.

MATIC Price Prediction for 2030

Changelly’s crypto-experts believe that by the year 2030, MATIC will be trading between $22.74 and $27.07, with an average price of $23.36.

Here, it’s worth pointing out that 2030 is still a long way away. 8 years down the line, the crypto market could be affected by a host of different events and updates, each of which is difficult to ascertain. Ergo, it’s best that predictions like these are taken with a pinch of salt.

On the bright side, however, MATIC’s technicals flashed a BUY signal at the time of writing. It is no wonder then that most are optimistic about the fortunes of the altcoin.

Conclusion

MATIC’s recovery since the market-wide sell-off in May has been impressive, but it is possible that the trend reverses if investors choose to book their profits. Especially given that a lot of them have seen their holdings diminish due to the ongoing crypto-winter and the prospect of living in the green will be tempting.

Speaking at the Korea Blockchain Week 2022, co-founder Sandeep Nailwal suggested that bearish conditions such as the ongoing crypto winter, provide a ‘noise-free’ environment suitable for talent acquisition and marketing. This could mean that Polygon comes out ahead once the trend reverses and the bulls are back in charge of the market.

Crypto experts seem to be divided over the aftermath of the much-anticipated Ethereum merge which is scheduled for next month. Some believe that when ETH 2.0 arrives, it may make scaling solutions redundant – or at least less important.

The other side of experts has argued that the merge will make Ethereum more eco-friendly by reducing energy consumption, and by extension will benefit layer 2 scaling solutions like Polygon by increasing its appeal to investors as environment-friendly crypto. In addition to this, MATIC would also be poised for a surge in value since Ethereum’s merge will have no effect on its controversially high gas fees, effectively advertising Polygon’s use case.

In a blog post on 23 August, The Polygon team addressed the community’s concerns regarding the merge and its impact on the network.

The team assured users that the merge is good news and nothing to worry about. The team went on to explain that while the merge will reduce Ethereum’s energy consumption significantly, it will not have any effect on the gas fees or transaction speed, which is a major problem for the network. “the network depends on Polygon and other Layer 2 solutions to solve for this.” the team added.

The team reiterated that the growth of Ethereum will lead to the growth of Polygon and that the future of both networks is symbiotic.

This statement from the Ethereum Foundation will come as a relief to those worried about the impact of the merge on the polygon network, “The Ethereum ecosystem is firmly aligned that layer 2 scaling is the only way to solve the scalability trilemma while remaining decentralized and secure.”

When ETH 2.0 comes, it may make scaling solutions redundant – or at least less important. The counter to that is Polygon plans to expand to other blockchains and the interoperability capabilities in the future will offset any threat that Ethereum’s Merge presents.

The major factors that will influence MATIC’s price in the coming years are –

  • Successful rollout of zero-knowledge EVMs
  • Expansion to new blockchains
  • Growth in dApps hosted on the network

Predictions are not immune to changing circumstances and will be updated with new developments. Do note, however, that predictions are not a substitute for research and due diligence.

It’s worth pointing out here that as far as social sentiment is concerned, all are on the positive side for Polygon.

Source: IntoTheBlock

The Fear and Greed Index remained steady in the ‘greed’ zone.

Source: CFGI.io

Dogecoin Soars by 9%: Is this the Start of a New Altcoin Season?

https://thenewscrypto.com/dogecoin-soars-by-9-is-this-the-start-of-a-new-altcoin-season/

  • Dogecoin’s recent surge in value can be attributed to a collaboration with Maximus DAO and increased trading volume.
  • Other cryptocurrencies, such as Ethereum and BNB, have seen minor gains, while Cardano has faced a slight decline, and Ripple has increased by less than 3%.
  • Bitcoin has experienced a negative trend over the last 24 hours, with decreased trading volume.

In the cryptocurrency world, Dogecoin (DOGE) has been making headlines once again as its value has begun to soar. With its recent price surge of 9%, many investors are optimistic that this could be the start of a new altcoin season.

Currently, the DOGE price is exchanging hands at $0.08264 with a support and resistance level at $0.07614 and $0.08528, respectively. A further bullish optimism can be indicated by the digital tokens trading volume increase, which has increased 121.96% to $1,031,350,949, indicating that Dogecoin can record further growth.

However, the recent surge in the price of the meme coin can also be attributed to the recent collaboration with Maximus DAO. This is after Maximum DAO announced on their official Twitter account that they would launch a Dogecoin staking pool Dogecoin ecosystem.

In addition, other alternative cryptocurrencies have also experienced a surge in their daily trading volume. Ethereum (ETH) has climbed above $1,800, BNB has stabilized at $315, and others like LTC, MATIC, SOL, and TRX have observed minor gains.

Cardano (ADA) has faced a slight decline of just over 1%, whereas Ripple (XRP) has increased by less than 3%. Among the larger-cap alts, Dogecoin and Shiba Inu have performed remarkably well. The initial memecoin has surged by nearly 9%, reaching above $0.08, while Shiba Inu (SHIB) has risen by just over 3.37% and is trading at $0.0000112.

Bitcoin (BTC) Trading on Negative Trajectory

As per CoinMarketCap’s data, Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, has been experiencing a bearish trend over the last 24 hours. It is priced at $28,391.69 after touching a 90-day high of $29,159.90. The trading volume has decreased by 38.00%, currently at $10,163,836,564.

On Friday, the BTC market was dominated by bears, causing a drop in its price below $28,000. However, the bulls regained control as Saturday arrived, and the BTC price climbed back to $28,000.

Boost Your Portfolio With Dogetti’s DON50. Floki Inu and Apecoin Among Successful Meme Projects

https://en.cryptonomist.ch/2023/04/02/dont-miss-out-50-bonus-with-dogetti/

SPONSORED POST*

Meme coins, which have taken the cryptocurrency market by storm, provide investors with enormous returns from investments. Every day, newer coins are added to the meme space. However, for all the coins, it is challenging to sustain the hype for an extended period of time. The latest advancements from Dogetti are making enormous progress and climbing to become the next major meme coin. The short-term bonus code is gaining popularity in relation to the benefits Dogetti provides.

Floki Inu – Meme With Utility

The ecosystem of Floki uses Floki (FLOKI), its own native token. FLOKI serves to manage various utility projects. A FLOKI university is one of them, where users can learn about trading and cryptocurrencies. Among the most reputable and widely used cryptocurrency exchanges in the world, Crypto.com has added FLOKI to its list of supported cryptocurrencies. Several exchanges, including Gate.io, SuperEx, SecondBTC, OKX, and BitUBU, allow traders to trade Floki Inu. Over the past seven days, $FLOKI has increased more than 3.35%. The token has a live market cap of $348,087,976 at its current price of $0.000039.

dogetti

ApeCoin – Popular NFT Coin

An ERC-20 token called apecoin (APE) is used to move around the APE ecosystem. The Bored Ape Yacht Club (BAYC) NFTs project, one of the highest-valued NFT collections in the field, was created by Yuga Labs.

The APE DAO (Decentralized Autonomous Organization), which is in charge of making decisions regarding the platform’s future, is in charge of managing and governing this token. The ApeCoin stock price began trading on March 17 at $5 and immediately increased by over 250% in the first 48 hours. The token’s price has since been corrected to $4.05 live.

Don’t miss out 50% bonus with Dogetti

Dogetti, currently in the presale phase, is offering the token holders a 50% return on their investment through the use of the temporary bonus code DON50. By providing discounts and bonus codes to DETI buyers, Dogetti has already amassed a sizable following in the cryptocurrency community. Dogetti has sold 7,590,780,000 tokens and raised $68k in just two presale stages.

Industry analysts anticipate Dogetti to make a significant statement when it debuts on the coin market. The Ethereum-based meme token has the characteristics necessary to rank among the top cryptocurrencies, and it intends to take advantage of these as it grows.

With its NFTs, reward system, and other DeFi solutions, Dogetti will provide users with a plethora of profit. Users will be able to vote on the project’s development and direction through DogettiDAO, contributing to its success. Giving token owners and participants rewards for their transactions is how the reward system will operate. For users of the Dogetti network, this might be a way to earn money passively. The success of the meme coin’s presale and the interest it attracted from the crypto community indicate that the coin can succeed significantly when it launches by utilizing these features and utilities. The meme coin is already being compared to many other altcoins as a presale token.

dogetti

Presale: https://dogetti.io/how-to-buy

Website: https://dogetti.io/

Telegram: https://t.me/Dogetti

Twitter: https://twitter.com/_Dogetti_

*This article was paid for Cryptonomist did not write the article or test the platform.

gm: Kevin Owocki Wants to Regenerate DeFi

https://decrypt.co/videos/interviews/knbMLd17/gm-kevin-owocki-wants-to-regenerate-defi

Move over, DeFi—ReFi is coming? Gitcoin founder Kevin Owocki has stepped away from DeFi grant-giving machine Gitcoin as it fully decentralizes and is now focused on regenerative finance (huh?) and ReFi incubator Supermodular. He aims to "regenerate the regenerators." He explained it all to Dan Roberts and Liam Kelly, and also talks DAO structure, crypto factions, NFT use cases, his book "Greenpilled," and much more. Watch and make sure to subscribe to the gm podcast on Apple or Spotify.

Orbeon Protocol (ORBN) Proves Its Mettle During Presale With Over 2700% Growth; (APT) and (MATIC)

https://zycrypto.com/orbeon-protocol-orbn-proves-its-mettle-during-presale-with-over-2700-growth-apt-and-matic/

While Aptos (APT) and Polygon (MATIC) have shrunk in recent months, Orbeon Protocol (ORBN) has registered a mammoth growth and is set to close its presale round with already more than 2700% growth.

Aptos (APT) Gets A New Partner To Increase Its NFT Base

Aptos (APT) has continued its roller-coaster ride in the crypto market. Aptos (APT) peaked by about 400% in January to touch its all-time high before witnessing a continuous fall since February. In the meantime, Aptos (APT) signed new partnerships that have kept the project floating.

Recently, Aries Market launched its OrderDAO, the first platform focused on the governance of NFTs on the Aptos (APT) network. This will increase the significance of the Aptos (APT) network in the NFT space. However, the market value of Aptos (APT) is yet to see the light, as it has plunged by more than 10% in the past month. In the past seven days, Aptos (APT) has plummeted by 4%, bringing its current trading price down to $11.66, about 41% below its peak of $19.90.

Polygon (MATIC) NFT Sales Volume Declines Significantly

The latest data from OpenSea has indicated that the number of NFTs based on the Polygon (MATIC) network has significantly declined in the first quarter of 2023. This has come after the sales volume of Polygon (MATIC)-based NFTs hit a record of $109.12 million in February.

However, the sales volume of Polygon (MATIC) NFTs has come down to $2.5 million in March, registering a decline of about 97%. According to OpenSea data, only 35,064 Polygon (MATIC) NFTs were sold in March; this number was 5,65,964 in February. This indicates the declined activity on the Polygon (MATIC) network. Subsequently, the trading price of Polygon (MATIC) has nosedived by 10% in the past month. Ranked 10th by market capitalization, Polygon (MATIC) is changing hands at $1.14, about 61% below its peak of $2.92.

Orbeon Protocol (ORBN) Advances Toward A Record-breaking Exchange Launch

Orbeon Protocol (ORBN) is a disruptive crowdfunding platform to solve pressing real-world issues. Orbeon Protocol (ORBN) converts stocks of companies into NFTs to sell in an open marketplace on the blockchain. ORBN tokens, the native crypto of the network, will be running the entire Orbeon ecosystem that comprises Swap, Exchange, Metaverse, and Wallet.

The Exchange will allow startups to engage with their community and raise funds by offering stock-based NFTs. The Swap will allow users to exchange their cryptocurrencies and NFTs in public and private token swap events. Orbeon Wallet is an all-inclusive DeFi wallet enabling users to exchange, buy, and hold cryptos and NFTs in one place. Meanwhile, Metaverse will provide interoperability solutions to the crypto world.

Exciting startups can use the NFTs-as-service of Orbeon Protocol (ORBN) to get their equity minted into NFTs. Investors will be enabled to purchase these stock-backed NFTs starting from $1.0. By fractionally infusing in these NFTs, users will get rewards, a passive income from the platform, and capital gains.

Since Orbeon Protocol (ORBN) NFTs will be minted only against equities of a real-world company, their market price gets immunity against any speculative pressure. Orbeon Protocol (ORBN) has integrated a “Fill or Kill” protocol into its audited smart contracts to protect users. Orbeon Protocol (ORBN) has grown by over 2700% during its presale. The current buying price of an ORBN token is $0.1125. It has been projected that Orbeon Protocol (ORBN) will expand by 6000% and fetch a trading price of $0.24 over the coming months.

Find Out More About The Orbeon Protocol Presale

Website: https://orbeonprotocol.com/

Presale: https://presale.orbeonprotocol.com/register


Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or crypto projects mentioned in this piece; nor can this article be regarded as investment advice.

Metaverse Project Zuck Zuck Land Launches Gold Giveaway Campaign

https://zycrypto.com/metaverse-project-zuck-zuck-land-launches-gold-giveaway-campaign/

Zuck Zuck Land, the Metaverse project mapped to a gold mine in the USA, has recently revealed its delight over the launch of a campaign featuring a giveaway of gold. In this campaign, the project aims to attract the attention of 100 fortunate participants who will be granted a Zucker Mole NFT.

The project announced via a recent press release that the holders of this NFT will be entitled to access the gold mine in the US and receive “GOLD” as a reward. Moreover, Zucker Mole NFT owners will have multiple chances to acquire rewards from the gold mine.

Furthermore, Zucker Mole NFT holders gain access to the Zucker Mole Club, where they can join other NFT holders, complete quests, and participate in the gold giveaway. 

On the other hand, Land NFTs signify virtual ownership of the Gold Mine and are available in five different rarities, with rewards ranging from 150% to 250% over four years. If you combine Zucker Mole and Land NFTs, you can get a maximum of 50% additional reward boosts on Land NFTs. 

In addition to this, Zucker Mole NFT holders can automatically join the DAO-type, community-driven club and participate in giveaways to win gold and rewards from the Gold Mine projects on multiple occasions.

Zuck Zuck Land: A Collection of Unique Gold Mine Land NFT

As said earlier, Zuck Zuck Land is a Metaverse project that has been mapped by a genuine Gold Mine located in the United States. This project has been divided into virtual land plots, each with its unique Gold Mine Land NFT representation. 

The virtualized Gold Mine is situated in Central Idaho, an area with a significant gold mining history. In the late 1800s, the Lucile area in Idaho was a significant producer of placer gold.

Nonetheless, the announcement further noted that interested participants who want to enter the campaign are required to create an account on the campaign site, follow Zuck Zuck Land’s Twitter account, and retweet one of the pinned project posts. The campaign will run from March 31, 2023, to April 29, 2023, and 1 account will equal 1 entry. The announcement and drawing of the winners will take place on May 1, 2023, via a Twitter post.

Quadratic Funding Hits the Mark | BanklessDAO Weekly Rollup

https://banklessdao.substack.com/p/quadratic-funding-hits-the-mark-banklessdao

Dear Bankless Nation 🏴,

One constant at BanklessDAO is the unity among members. Our shared values make us close-knit regardless of where we live in the world, as we help each other progress the Bankless Nation. To that end, DAO organizational units are encouraged to post their Season 8 funding proposals to the Forum before April 7 for review by the Grants Committee.

In this week’s editorial, Lucent presents a review of the proposed pilot of a Gitcoin Grants Stack, whereby BanklessDAO will run our own Quadratic Funding round. The idea is to test the new Gitcoin Grants interface while also ascertaining market fit for some of our established projects.

Speaking of retroactive funding, in Optimism’s recent RetroPGF2, 27.5K OP tokens were awarded to our Newsletter, Bankless Publishing, IMN, and ‘The Rug’ projects. A further 58K landed on Bankless Academy! Congratulations on impressive efforts all round, and well deserved success.

This week’s Community Call concluded with an open roundtable discussion where members expressed praise and gratitude for their peers’ sustained hard work within the DAO. By the way, if you haven’t used the Praise bot in the bDAO server yet, now’s the time to share some gratitude of your own.

It’s with such gratitude that we thank you for reading this week’s Black Flag Rollup edition and wish you a great weekend!

Contributors: Lucent, Dippudo, links, Allyn Bryce, WinVerse, theconfusedcoin, anointingthompson1, Boluwatife, Warrior, KingIBK, siddhearta, Trewkat, HiroKennelly



This is an official newsletter of BanklessDAO. To unsubscribe, edit your settings.

Subscribe now


✅ Action Items

📖 Vote: Review, comment, and vote on the various Season 8 funding proposals.

🏫 Learn something new in the Education Department knowledge sessions.

🎙 Listen: Tune in to our various podcasts and stay on top of all things crypto.

🏃‍♀️ Catch up: Review this week’s Community Call notes or view to the recording.


🏛 Governance

Snapshot Votes

BanklessDAO Governance Department Instantiation

Following the previous discussion on Establish and fund a Governance Department, the proposal passed the soft consensus check by achieving 36 votes in favor and 9 against. If successful on Snapshot, the mandate of this department will be to:

  1. Steward the governance conversation in BanklessDAO

  2. Update and maintain governance docs and constitution

The initial budget for this Department will be 800K BANK.


We Are the Black Flag 🏴

To be bankless is to seek freedom.

Freedom to do what you want to do — to be who you want to be.

Throughout history, people have hoisted the black flag in the face of authoritarian rule.

The black flag is a declaration of our intent to be free.

It is a symbol of our resolve.

BanklessDAO was created to steward the bankless movement.

We fly the black flag as a beacon for all freedom seekers; to create a space for us to gather and grow.

We welcome all.  Country, creed, age, language, race, religion, gender, and everything else are secondary to our purpose.  As long as you seek freedom, BanklessDAO welcomes you.

We teach our ways.  With every person taught, we swell our ranks.  Our members are a rising tide, and a rising tide lifts all ships.

We are relentless.  Step by step, we pursue our mission.  Brick by brick, we build the means for others to follow.  When we fail, we take stock, make adjustments, and keep moving forward.

We value contribution.  Large or small, each contribution is a step closer to freedom.  Contribution is BanklessDAO’s true currency.

We are strong together.  Even when we can stand alone, we stand together.  When one of us falls, another steps up to carry the banner. When one of us flies, we all soar.

To be bankless isn’t a goal, it’s a way of life.  It is the decisions you make every day towards self-sovereignty.  Slow or fast, as long as you move towards freedom, you are bankless.

And if you are bankless, you fly the black flag.  As a beacon.  As a symbol.  As a reminder.

The black flag is the pursuit of freedom, and the bankless always seek to live free.

We are the black flag.  Let’s fly! 🏴

Links, one of the great connectors in the DAO, and someone who lives both to inspire and be inspired, was inspired to write this inspirational piece. Well done links, and thank you for continuing to inspire us on our bankless journey!


Quadratic Funding Hits the Mark

Author: Lucent

Image credit: Dippudo

Communities are built upon participation. One way to participate in the larger web3 community is through the Gitcoin Grants program, which pioneered an allocation system known as Quadratic Funding. This recent bDAO Forum post seeks to trial Quadratic Funding for our projects. If approved and launched, the plan is to study the outcome, analyze the feedback, and with the right improvements and community support, perhaps implement the system as part of our seasonal funding process. For that reason, it’s a good idea to learn some more about Quadratic Funding.

How Quadratic Funding Works

Quadratic Funding is a mechanism that involves prioritizing the number of people who vote over the value of a single vote. As Kevin Owocki puts it: “I imagine moving from a web that is one-token-one-vote… to one-person-one-vote, and I think that’s fundamentally more democratic”. With Quadratic Funding, the aim is to fund projects that appeal to the majority, rather than leaving the decision to a ‘whale’ (someone with a disproportionately large amount of tokens).

Quadratic Funding works by matching the funds allocated by individual supporters to a larger pool provided by an investor.

The Quadratic Funding mechanism is calculated with a formula created by Vitalik Buterin, Zoë Hitzig, and E. Glen Weyl in their paper titled A Flexible Design for Funding Public Goods. This formula is expressed in the paper as follows:

The authors explain further:

In a standard linear private market, the funding received by a provider is the sum of the contributions made by the funders. In our “Quadratic Finance” (QF) mechanism, the funding received by a provider is the square of the sum of the square roots of the contributions made by the funders. Holding fixed contribution amounts, funding thus grows with the square of the number of members.

The elements of the formula are included in the paper, but for those of us not hanging out in Genius Club with Vitalik, the following image from a blog post by Ishita Srivastava gives an example of its application, as does the video at wtfisqf.com.

Image credit: Ishita Srivastava

To understand the technical view of Quadratic Funding and voting, read Vitalik’s paper on the subject in his blog.

Introducing the Gitcoin Grants Stack

Gitcoin launched the first Quadratic Funding mechanism in early 2019 with the Gitcoin Grants program, which according to the Gitcoin website has since “generated $50+ million of funding”. Gitcoin’s latest initiative is the Gitcoin Grants Stack, which replaces the centrally run grant rounds and paves the way for other communities in the ecosystem to begin trying out the quadratic matching mechanism.

The new direction appears to have support from many communities in the web3 ecosystem as Gitcoin Grants is acknowledged as a strong driver of funding for projects with good market fit.

BanklessDAO Pilot Program

As detailed in the Forum post, the idea is to pilot “a gated BanklessDAO quadratic matching round in S7 with the intentions of testing the process, evaluating the results and presenting the analysis to the DAO for next steps in decentralised project funding.”

Part of the Grants Committee’s remit is seasonal project funding. Although project teams must first post on the Forum to ask the community’s feedback and achieve a level of consensus, it falls upon Grants Committee members to decide whether the amount of BANK requested is appropriate for the project’s anticipated market fit. It’s noted in the Forum post that while Grants Committee members are trusted members in the community, they are seldom investment experts.

According to the proposal, by running its own QF round the DAO will be able to “generate a strong signal on which of our projects have an early product market fit” reducing reliance on the Grants Committee and shifting the decision-making power to the Bankless community.

In the selection of which projects should be funded by the DAO for the pilot round, the proposal squad believes that limiting eligibility to projects previously funded by the DAO, which have run for more than two seasons, will enable us to establish which of these existing projects have good market fit. The idea is that the community can provide a strong signal of support to the projects they want to see continue through this retroactive donation of funds. It will be possible to donate with the BANK token.

Everything in Moderation

Running our own grants round will require that we nominate moderators to manage the configuration, administration, and distribution of the donations and matching funds. The suggestion from proposal authors is that “one or two members from governance and one or two members from Grants Committee be selected…to run the pilot on behalf of the DAO.”

One of the most important features of the Gitcoin Grants program is the ability to build in Sybil resistance via the Gitcoin Passport. The passport enables an individual to amass a collection of ‘stamps’ or verified credentials from various web2 and web3 ‘identity providers’. For this pilot, it’s suggested that anyone with a passport score of at least 21 is eligible to donate.

Prepare for Take Off

The Forum proposal is a request for 1.1 million BANK. The bulk of this (1 million BANK) will be used to create the matching pool, with the remainder to be distributed via Coordinape to those involved in administering the pilot. As one of the early adopters of the Gitcoin Grants Stack, it is anticipated that bDAO will receive a good amount of social media attention as well as being in a position to test and provide feedback on the user interface.

The poll associated with this proposal received 47 votes with 89% in favor. That means that the next step is review by the Grants Committee; if the BANK funding is approved, the pilot program will commence one week later.

This program has the potential to usher in a new era for BanklessDAO, altering the way in which new and existing projects are supported. Project teams who can develop ideas with mass-market appeal will be the big winners here, but we must be careful to consider the implications for teams designing projects on the cutting edge too. Stand by, passports ready, and let’s fly.


👀 In Case You Missed It

📺 Weekly Rollup Recap With Allyn Bryce

Allyn Bryce brings the magic, and this most recent recap is no exception. Catch up with last week’s Rollup and hear about BanklessDAO’s involvement with the new Collab.Land DAO.

You can find all the previous episodes on the BanklessDAO YouTube Channel. If you enjoy these videos please vote in support of the Weekly Rollup Recap S8 Funding Proposal.

📚 Bringing Crypto Education to the Masses

Bankless Africa teamed up with Bankless Academy to discuss the state of crypto education in Africa and to share details on how they are integrating Bankless Academy’s content on their website. Listen to this informative discussion, here.

📈 Season 7 Project KPI Measurements

All Project Champions with projects that were part of the seasonal funding program must report their mid-season KPIs to qualify for and receive the next tranche of funding. If you still need to submit your KPIs, you can do so in your project thread in the #grants-committee channel and tag your Grants Committee reviewer. If you don’t know who your reviewer is, please refer this document.


🍔 Grab It While It’s Hot

🏃🏽 BanklessDAO x Gritti Metathon

BanklessDAO has collaborated with Gritti for the upcoming Gritti Metathon in Paris. This Metathon aims to bring runners from around the world together using Gritti’s social fitness dApp. Sign up here to take part in this global running revolution!

👩‍🎨 d’Art Drops

Title: Greedy Paws
Artist: Dark World Arts
Description: Despite an abundance of resources available to sustain human growth and potential, all it takes is a few greedy hands to introduce scarcity and inequality into a system. We are fully experiencing this in the current financial system; unless we are diligent in our work, we will see this come to fruition on the blockchain as well. We have an opportunity for abundance in crypto; will we capitalize on that opportunity, or squander it?
Cost: 0.02 ETH
Editions: 100

🎙 BanklessDAO Podcasts

💰 Making Bank

🧠 Crypto Sapiens

🌍 Bankless Africa Podcasts

✍️ Bankless Publishing

🌏 Bankless Africa Newsletter

🗞 The Rug Newsletter

👩🏼‍💼 Bankless Consulting Newsletter

🗓 Set A Reminder

🏦 CopperX Demo — Blockchain Payment APIs for Businesses

CopperX offers blockchain payment APIs for businesses. To learn more about CopperX, join this demo in the Amphitheater on Wednesday, April 5 at 18:30 UTC. Learn how to start accepting crypto payments, recurring billing, invoices, and more with just seven lines of code.

👏 How To Coordinape

Coordinape is a platform that enables peers in the DAO to reward each other for their contributions. Join the Education Department on Tuesday, April 4 at 14:00 UTC in the watercooler voice channel to learn the basics of Coordinape. To set a reminder, RSVP to the event. Hop in 15 minutes before the event start to be onboarded to the Zep platform. Check the async learning resource here.

🛡️ Wallet/Security Knowledge Session

Understanding wallet mechanics and safety are fundamental in the web3 ecosystem to ensure your funds don’t get into the wrong hands. If you want to learn how to be safe regarding your web3 wallets, join the Education Department on Wednesday, April 5 at 14:00 UTC. Remember to hop in 15 minutes before the event start to be onboarded to the Zep platform. Check the async learning resource here.

🎇 How To Sobol

Sobol is a web-based platform that allows teams to govern themselves and run their organization according to their unique culture. If you want to know the organization of the DAO and how to find different information about roles, guilds, Notion pages, multi-sigs, and members of our community, RSVP to this Education Department event on Thursday, April 6 at 14:00 UTC in the watercooler voice channel. Hop in 15 minutes before the event start to be onboarded to the Zep platform. Also, check out the Ops Department’s Sobol Workstream for further training.


🤣 Meme of the Week

Report Says Tron CEO Plans to Sell Huobi Stake: Justin Sun Defies

https://coinedition.com/report-says-tron-ceo-plans-to-sell-huobi-stake-justin-sun-defies/

  • Justin Sun defies the report that stated he has been planning to sell a stake in Huobi.
  • Recent reports said that he has been discussing with potential investors to sell Huobi’s stake.
  • Sun stated that the report seems to be an April Fool prank.

Justin Sun, the business executive and founder of the blockchain DAO ecosystem Tron, refused to accept the claim presented by a recent report that he has been involved in discussions with potential investors to sell a stake in the crypto firm Huobi. He stated that Huobi is not seeking and “will not seek any buyers for Huobi”.

Recently, on April 1, the Televsion media Bloomberg reported that as per the words of a person familiar with the matter, the Tron founder has been conversing with the investors over the past week, planning to sell a stake in Huobi.

Though the person with the knowledge was reluctant to reveal his identity acknowledging the confidentiality of the matter, he stated that no further details regarding the move are known; it’s not clear whether the investors would move forward with the plan.

Immediately after the report, Sun retaliated via his official Twitter page that he “must deny the report that Huobi Global is seeking a stake buyer”, adding that it sounds like an April Fool prank:

Significantly, the crypto entrepreneur has been trying to establish Huobi’s trade worldwide by recruiting Chinese customers after a long period of the crypto ban in China. He revealed that the company has been facing huge tragedies over the past few months, losing almost $10 million per month.

Currently, responding to Bloomberg’s report, Sun, along with defying the claim, assured that the company has a sincere commitment to its customers, quoting:

Huobi is committed to providing our users with a safe, reliable, and innovative platform for trading and investing in cryptocurrency.

Notably, as per the report, Sun’s involvement with Huobi is mysterious; though he calls himself an “adviser” and denies owning any stock, he has contributed almost $200 million to the company.

Superteam India Update : March 2023

https://superteam.substack.com/p/superteam-india-update-march-2023

What is Superteam?

Superteam is a network of individuals and companies building products in the Solana ecosystem. Simply put, it is a gated Discord server for those who satisfy the membership criteria. There’s no treasury, take-rate/commissions, or token sale. From its inception, Superteam has chosen to be a collective of sovereigns over a sovereign collective. All members may participate as much or as little as they wish, including the core team. Any revenue generated is captured by the individual members or teams that self-organise and win a bounty, and secure a grant or venture funding for their ideas. The community is the product. And members have exclusive access to the product.

Superteam is currently live in IndiaVietnamTurkeyGermany & Mexico.


Key Metric

$1.5 Million in Community GDP 📈

Up from $1.3 Million last month. This is the North star metric for Superteam. It represents the value created for & by community members who found earning opportunities through Superteam.

Driving this number is a community of 165 members & 200+ contributors. A growing talent network with 2500+ registered people looking for opportunities in web3. And 50+ partner projects who’ve tapped into this talent pool.

A special shoutout to the rainmakers of the month (i.e., members who have brought in earning opportunities to the community) EzgiTamarAnhArihant, AbbasKashAkshay BDDavid Taylor, Magio, Tushar, Anoushk & Neil Shroff.


Shipping 🚢

Gum

A decentralized social media protocol on Solana by the Wordcel team. Using Gum, developers can let users bring their existing social stack into their apps and build native experiences on top of it.

The team has been fast in shipping UI components for React Native and has a YouTube channel for helping developers with guides, tutorials, and explainers. Along with that, the team is burning the midnight oil to launch session keys soon!

If you’re looking to build social apps on Solana, here’s an idea you can start with. Get help with infrastructure, intros, distribution, etc from Mert.

CandyPay 🍭

Last month, the team publicly launched CandyPay checkout and payment links. A one-click, low-code payment solution to start accepting payments on Solana.

They onboarded quite a few new customers in March, here are a few –

  1. Hello Moon: A seamless experience to purchase developer tools in SPL tokens

  2. Trader M8: The First Community-Run Market Analysis Tool.

  3. Triton, an RPC Node Provider.

  4. Samoyedcoin & Solana foundation to power payments at HCMC Solana HackerHouse.

The Grizzlython 🐻

Grizzlython was a month-long hackathon by the Solana Foundation partnering with multiple projects in the Solana ecosystem. The hackathon commenced on March 14th with 10,000 participants from 80 nations with a total of 800 submissions.

56% of all submissions were from Superteams across the world. To help you navigate submissions – here’s a repository of projects from all the Superteams.

Tinydancer 💃

Tinydancer is a light client for Solana which ensures the security of the network in case there is a supermajority attack.

Here’s a powerful vision statement from their whitepaper – “Anyone should be able to spin up a diet client on a mobile device and verify the validity of their transaction and state without requiring a full node or having to trust the supermajority.”

The team has open-sourced the Project along with providing a deeper understanding of how things work with the docs. The team has big plans moving forward and has released a roadmap too. If you are a dev and want to get involved, feel free to raise a PR here.

Little Unusual 🎬

Little Unusual is a production house that spun out of Superteam. As the name suggests, they take usual or mundane content and turn it into an extraordinary and most beautiful experience. The team has shipped multiple videos in the last month for Dialect, Frakt, and Tinydancer. They also released a rewind video for all things the team shipped in 2022.

Cubik

Cubik is a decentralized funding tool on Solana that enables organizations to conduct fair quadratic funding rounds while also providing robust Sybil resistance.

The team, after winning a barrage of prizes at the Sandstorm hackathon, is now preparing for a launch in April with revamped UX, design, and overall security.

SeaSurf 🌊

Seasurf is a simple Solana Block Explorer, which would help to track and analyze different transactions in one place.

The team implemented a transaction explorer and an account explorer that would help users navigate and read transactions easily. Along with this, the team is incorporating a bunch of new features that are [redacted]. Stay tuned!


Earning

Bounties 💰

We continued to work with some of the most exciting Solana projects to complete bounties.

  1. Founding Titan won the Developer Portal Deep Dive bounty.

  2. Ashraf won the xNFT game bounty.

  3. Grahil won the Little Unusual thread bounty.

Instagrants ⚡

Equity-free grants to support builders across the Solana ecosystem. Applications take less than 15 minutes, approval decisions come within 48 hours. Anyone can apply here.

Issued Grants:

  1. Solfaucet
    Solfaucet is a Mainnet Sol faucet to fund users with gas fees and help them start their Solana journey.
    Won by: Vampo

  2. Freezo.io
    Freezo.io is a Blockchain timestamp as a service for enterprises to manage their IP.
    Won by: Pandatechie

  3. Automate NFT minting
    A tool to mint a Solana NFT to a wallet when a user fills out an Airtable form.
    Won by: Divya Ranjan

  4. Synap
    Synap is building a socially accountable credit rating system on Solana.
    Won by: Ujjawal

  5. Supertable
    Supertable is an enhanced version of Airtable that allows you to connect custom domains, customize UI, and wallet-gate form responses.
    Won by: SoulNinja

  6. Helius Python SDK
    A Python SDK for Helius clients to interact with data on Solana.
    Won by: Mayur

  7. Solex
    Solex is a CLI/learning tool that allows developers on Solana to improve their skills by practicing and solving bite-sized exercises.
    Won by: 0xMukesh and Sahil

  8. ReFi Graph
    Refi Knowledge graph is a project that is working to map the interoperability and composability of new ReFi assets and protocols, as well as the regenerative finance projects that are building on Solana.
    Won by: Madhav

Shipped

  1. Hubble Videos
    Hubble Protocol sponsored a mission for an expert Video Producer to create multiple video tutorials that are sleek and professional looking for maximum shareability in the ecosystem.
    Won by: Tushar Sinha


Learning 📚

On the Podcast

The team discussed the SVB situation, and we got a little story time with Kash 🙇‍♂️

From the Blog

Scribloor and Yash B explored "Where there’s a phone, there’s a job—and what that means for smartphone distribution and global gig marketplaces.


Celebrating Members 🚀

  1. Anoushk made a contribution to Solana Cookbook.

  2. Gajesh, Bolt, and Kunal got featured in “Here come the Zoomers” by The Information.

  3. Ujjwal hosts a workshop at Greenpill Festival.

  4. Bolt wins the XP race for February 2023.

  5. Shek used ChatGPT to create a spreadsheet view of Grizzlython submissions.

  6. Kash officially launches “Story time with Kash” on YouTube.

  7. Yash A publishes a thread on earning global wages from an exotic remote location.

Highlights of the Month 🥳

Do algorithmic stablecoins have a future as centralized coins are under scrutiny?

https://cointelegraph.com/news/do-algorithmic-stablecoins-have-a-future-as-centralized-coins-are-under-scrutiny

Binance’s native stablecoin — Binance USD (BUSD) — was the third-largest stablecoin pegged to the United States dollar, minted by blockchain infrastructure platform, the Paxos Trust Company, through a transfer of technology agreement between the two firms. 

However, on Feb. 13, the New York Department of Financial Services ordered Paxos to stop minting any new BUSD tokens.

The move came just days after the United States Securities and Exchange Commission issued a Wells notice alleging BUSD violates securities laws.

Binance CEO Changpeng Zhao even predicted that regulatory clampdowns would force several other crypto businesses to move away from dollar-pegged stablecoins in the near future, and look for alternative tokens pegged to the euro or Japanese yen.

Zhao’s comments came during a Twitter AMA (ask me anything) session where he said that although gold is a good backing option, most people’s assets are in fiat currencies. He admitted that the U.S. dollar’s dominance in international markets makes it a go-to fiat currency, which is one of the main reasons behind the popularity of dollar-pegged stablecoins. However, regulatory action against such assets might make way for other stablecoins.

Zhao also talked about the role of algorithmic stablecoins, many of which are largely decentralized, and said that these types of stablecoins might play a more prominent role in the crypto ecosystem in the future but are inherently riskier than fiat-backed tokens.

Algorithmic stablecoins are not traditionally collateralized; instead, they use mathematical algorithms often linked to a tokenomics model rather than backed by a real-world asset like the U.S. dollar.

Most algorithmic stablecoin projects use a dual token system: a stablecoin and a volatile asset that maintains the stablecoin’s peg by maintaining the demand and supply system that keeps the stablecoin’s value unchanged. To mint a specific value of the stablecoin, an equal amount of the native token or volatile token is burned.

Following the regulatory action against BUSD, Binance turned to several alternative stablecoins, including a few decentralized ones, to fulfill its stablecoin-centered liquidity needs. From Feb. 16–24, Binance minted 180 million TrueUSD (TUSD) stablecoins.

Binance minted TrueUSD after BUSD’s ban. Source: Twitter

Decentralized stablecoins have a tainted past

Decentralized stablecoins were first popularized in the decentralized finance (DeFi) ecosystem with the creation of Dai (DAI) by MakerDAO. DAI maintains its peg through a smart contracts system governed by a decentralized autonomous organization (DAO). Although DAI has remained true to its decentralized values, it was caught up in the recent banking contagion that led to its depeg along with the Circle-issued USD Coin (USDC).

While algorithmic stablecoins stay true to the crypto ecosystem’s decentralized values, their real-life implementation has had a troubled history, especially with the collapse of the Terra ecosystem and its algorithmic stablecoin TerraUSD (UST), now called TerraClassicUSD (USTC).

Terra’s algorithmic stablecoin was once seen as the prime example of how a decentralized stablecoin could make it to the mainstream. However, after its depeg and subsequent ecosystem collapse, it has cast doubt on the future of such stablecoins.

Decentralized stablecoins suffered a heavy setback from the Terra saga, and the reputation of such stablecoins was tarnished further by the actions of Terraform Labs co-founder Do Kwon. Kwon evaded law enforcement agencies while maintaining that the debacle was not his fault, despite on-chain evidence suggesting the depeg was caused by one entity dumping over $450 million of UST on the open market. Kwon himself allegedly controlled that entity. He was recently arrested by Montenegrin authorities.

With centralized stablecoins under regulatory scrutiny and confidence in algorithmic stablecoins demolished, what does the future of a decentralized stablecoin look like? Is there a future at all?

Hassan Sheikh, the co-founder of the decentralized incubator platform DAO Maker, told Cointelegraph that a shift to decentralized stablecoins would not be in the form that people may expect. Centralized exchanges are highly vertically integrated, creating chains, wallets, staking solutions, mining ops and more.

“Any decentralized stablecoin to be adopted by exchanges is not yet on the market. It won’t be DAI or the like. The market caps aren’t significant enough to have the necessary network effect,” Sheikh said, adding, “Exchanges would be likely to fork off protocols like Maker and push for the traction of their controlled ‘decentralized’ stablecoin for that value capture. The decentralized stablecoin on exchanges wouldn’t be truly decentralized, and it most likely doesn’t exist yet, as the major ones would likely pursue their own.”

Talking about BUSD’s regulatory troubles, Sheikh said that it was merely the first test of people’s willingness to shift to a new exchange-issued stablecoin. If proven, the market will shift. Expecting a Binance version of DAI is reasonable, he added.

Sheikh also shed light on the major issues with decentralized stablecoins currently in the market. He said that the majority of these stablecoins are so deeply rooted in USDC that they’re hardly decentralized.

Many decentralized exchange pools and decentralized stablecoins, such as DAI and Frax (FRAX), have significant collateral exposure to USDC. This is why DAI issuer MakerDAO introduced an emergency proposal to address risks from its $3.1 billion USDC collateral exposure during the recent depeg.

If anything, “the aura of their marketing as decentralized is now wiped out with the recent struggles of USDC, which quickly eroded the peg of DAI. The switch to a decentralized stablecoin is too distant as the to-be dominant stablecoin doesn’t exist yet. Exchanges are supporting these purely for volume profits. The few BTC/DAI and similar pairs that do exist are so weak in an activity that the foreseeable future doesn’t show any sign of a shift to decentralized stables across major liquidity partners,” Sheikh said.

Crypto exchanges are integrated with fiat-backed stablecoins

Fiat-backed stablecoins have become a lifeline in today’s crypto world. In the early days of crypto exchanges, these stablecoins acted as an onboarding tool for many traders, and in the last decade, they have also become a key liquidity provider. 

“Fiat-backed stablecoins are so deeply rooted in exchanges that it’s highly unlikely to expect a mammoth shift despite the regulatory scrutiny.” Shiekh told Cointelgraph.

Abdul Rafay Gadit, the co-founder of crypto trading platform Zignaly, told Cointelegraph that despite the recent USDC depeg, crypto trading platforms still prefer U.S. dollar-pegged stablecoins.

“I personally believe that [Tether] USDT is the best stablecoin at this moment, carefully pegged 1:1 and kind of away from unfair regulations as well. USDC was unfortunate because of its ties to SVB [Silicon Valley Bank]; otherwise, they run a great business,” he said.

He told Cointelegraph that centralized stablecoins are lifelines to the crypto ecosystem, and despite the regulatory pressure, they will continue to be a dominant force.

Gadit said that exchanges might move away from the U.S., but fiat-backed stablecoin will continue to rule:

“BUSD action looks like victimization to me; I think it’s uncalled for and totally unfair. Going forward, stable issuers will try to stay away from the U.S., just like USDT issuer Tether operates out of Hong Kong.”

Tether (USDT) continues to dominate the stablecoin market despite ongoing regulatory scrutiny against many other U.S. dollar-pegged stablecoins. Industry experts believe that even though decentralized stablecoins look promising, their real-world implementations have been questionable. Thus, centralized stablecoins will likely continue to dominate the crypto market.

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

https://beincrypto.com/usdc-supply-shrinks-10b-6-month-high-smart-contracts/

In March, Circle’s USD Coin (USDC) supply shrank by over 23% to $32 billion as the stablecoin struggled with its exposure to the U.S. banking crisis.

USDC’s trouble began on March 11 when it was revealed that $3.3 billion of its reserves were held at the failed crypto-friendly bank Silicon Valley Bank. Following the news, USDC depegged to as low as $0.87 as investors trooped for its rival.

The stablecoin soon regained its peg after its issuer assured users it would cover any shortfall. But that did not restore investors’ confidence, who massively redeemed their USDC holdings, leading to a $10 billion outflow.

USDC Chart (Source: BeInCrypto)

During that period, the issuer dealt with a malicious player who tried phishing its users. The hacker hacked the Twitter account of Circle’s chief strategy officer and head of global policy, Dante Disparte, promising a fake airdrop for affected users.

USDC Supply on Smart Contracts Touches 6-Month High

Notwithstanding the decline in supply, USDC’s use in smart contracts increased to a six-month high of 42.08%, according to Glassnode data.

USDC Supply on smart contracts March 2023
USDC Supply on Smart Contract (Source: Glassnode)

After declining in late 2022, USDC’s supply on smart contracts gained momentum amid its struggles. Confidence in the stablecoin was majorly boosted when the decentralized finance (DeFi) protocol MakerDAO approved its use as its primary reserve. The stablecoin got a further boost when it announced it would launch on the Cosmos blockchain soon.

Meanwhile, USDC is the dominant stablecoin on the two most popular Ethereum layer2 networks — Arbitrum and Optimism. USDC’s dominance on Arbitrum stands at over 60%, while that of Optimism is around 55%, according to DeFillama data.

USDT, TUSD Profits From Rival Issues

Tether USDT and TrueUSD (TUSD) are the biggest winners amid the banking crisis that rocked their rival stablecoins.

In March, USDT’s supply grew to $79 billion from around $70 billion it had recorded earlier in the month. During the period, its market dominance also rose to over 60%, according to DeFiLlama data.

USDT Supply
USDT Supply (Source: CoinMarketCap)

Meanwhile, TUSD saw its supply cross $2 billion after being heavily adopted by Binance. Its supply on exchanges also reached 73% for the first time since June 2021, according to blockchain analytical firm Santiment.

The post USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts appeared first on BeInCrypto.

Native and Mintbase Power Supermoon Tower, ETH Denver’s Most Attended Event

https://coincheckup.com/blog/native-and-mintbase-power-supermoon-tower-eth-denvers-most-attended-event/

Supermoon headed a most-attended ETH Denver event at the Denver Clock Tower together with Native and Mintbase

This 3-day event featured panel discussions, workshops and social networking events, all while enjoying beautiful views of Denver. The event kicked off with the Talent Protocol brunch, a gathering of top talent in the industry and a dive deep into the DEXs with Native.org. The talks were followed by Native Soiree, where attendees had a memorable night of networking, cocktails, and entertainment for guests.

The second day showcased the largest Startup Day at ETH Denver, featuring 25 pitching startups, 30 participating VC funds, and over 100 investors. Supermoon Startup Day highlighted Techstars, AvesLair, Sanctor Capital, Outliers, Mighta Capital, Fabric Ventures, Gumi Cryptos, Tokenmetrics Ventures, Translink Capital, and more.

Miko Matsumura (Gumi Cryptos), Richard Muirhead (Fabric Ventures), Carson Nye (Techstars), and Elena Obukhova (Supermoon) participated in a panel discussion with Supermoon to explore current developments in the VC industry and share advice with attending startups. After that, Crypto Meina conducted a passionate discussion on How Web3 Infrastructure Will Unlock Mass Adoption followed by networking events.  

The day culminated with Blu3DAO Happy Hour and zkPass VC & Startups Reception allowing startups and investors to have more informal conversations about their projects.  

The third day gathered founders and builders for the series of workshops led by Mintbase, as well as a keynote address by January Walker, a Utah politician and former congressional candidate.

Luis Freitas covered The Mintbase Dev Stack: Unlocking the Power of NFT Marketplaces, guiding you through the dev stack, including MintbaseJS and GraphQL, and showing how to create custom NFT marketplaces with ease. Nate Geier dived into the Mintbase’s AffiliateDirect system, which allows users to earn market fees by simply copying a URL, integrating an NFT marketplace into the user’s current app, or allowing users to create their own NFT marketplace and earning commission on every sale.

With special support of Native, Mintbase, OrangeDAO, zkPass, Gridex, BCB, Talent Protocol, Techstars, and Nest, Supermoon Tower was recognized as one of the most important events of Q1 2023.   

Supermoon is preparing for Consensus and will shortly reveal its future activities, camps, and Near House Consensus.

Website | Telegram | Twitter | Linkedin | Instagram 

ARB Holders Voting Begins to Form Arbitrum Foundation

https://ourbitcoinnews.com/arb-holders-voting-begins-to-form-arbitrum-foundation/

Establishment of the Arbitrum Foundation

After the airdrop of Arbitrum’s crypto asset (virtual currency) ARB, voting on proposals for establishing the “Arbitrum Foundation”, a management organization for a decentralized autonomous organization (DAO), began on the 28th.

While there were voices of opposition, citing uncertainties in the budget allocation and management system, 87% of the votes were in favor.

This proposal (AIP-1) defines the steps towards establishing an Arbitrum Foundation to support the growth of the Arbitrum ecosystem. It calls for allocating a budget of 750 million ARB (just over 130 billion yen) to the newly established Arbitrum Foundation and transferring the ARB to an “administrative budget wallet” managed by the foundation.

The Arbitrum Foundation has three appointed directors and will also establish a 12-member Security Council. Each member of the council will be paid $5,000 in ARB tokens per month.

A data availability committee will also be set up to store transaction data batches for Arbitrum Nova, a proprietary chain for Web3 games and social apps, with participation from ConsenSys, Google Cloud and Reddit.

Voting deadline is April 3rd. At the time of writing, 87% are in favor and 13% are against.

What is Arbitrum

A project to develop an L2 solution that utilizes a technology called Optimistic Rollup. While utilizing the security of Ethereum’s blockchain, we aim to eliminate network congestion by processing some transactions off-chain.

▶Cryptocurrency Glossary

connection:Ethereum L2 “Arbitrum” decentralizes operations to implement its own token distribution

Opposition claims

Blockworks Labs, a voting representative of 2.2 million votes in the ArbitrumDAO, today announced its opposition to AIP-1, citing its lack of governance and transparency.

Blockworks Research Institute first pointed out that only 3.5 billion ARB was actually distributed to the Arbitrum DAO treasury, although 4.278 billion ARB was allocated at the time of token issuance planning. Prior to the results of the vote, he criticized, “There is reason to think that (development company) Offchain Labs was separated for the administrative budget wallet.”

Source: Arbitrum

Blockworks Institute also points out that the 750 million ARB (just over 130 billion yen) requested by the Arbitrum Foundation is too much. As a comparison, citing the initial budget (total of 9.8 billion yen) of the Uniswap Foundation, which forms a representative DeFi ecosystem, we requested a detailed explanation of the “fund storage method, monitoring system, and usage process”. there is

The proposal states that the 750 million ARB will be used for “special subsidies, reimbursement of set-up fees to service providers, and ongoing administration and operating costs for the Arbitrum Foundation.” The Arbitrum Foundation, based in the Cayman Islands, is seeking $3.5 million in legal fees, administrative and registration fees.

connection:Decentralized Exchange Uniswap Starts Operation on BNB Chain

The post ARB Holders Voting Begins to Form Arbitrum Foundation appeared first on Our Bitcoin News.

Week in Ethereum News, April 1, 2023 – sponsored by Scaffold-Eth-2 hackathon

https://weekinethereum.substack.com/p/week-in-ethereum-news-april-1-2023

Eth News and Links

Shapella (Shanghai + Capella) upgrade

For Stakers

Layer 2

  • Polygon zkEVM mainnet beta, gas pricing as EVM but lacks some precompiles, Security Council initially, AGPL v3 license

  • Linea (ConsenSys zkEVM) testnet now public

  • Conduit managed rollups using OP Stack, with block explorer, RPCs, metrics & transaction tracer

  • L2BEAT risk rosette: visualization of risks

EIPs/Standards

  • EIPs:

    • EIP6780: SELFDESTRUCT only in same transaction

    • EIP6789: Rename gas to mana [resurrected EIP102]

    • EIP6800: Ethereum state using a unified verkle tree

  • ERCs:

    • ERC6785: ERC721 utilities extension

    • ERC6786: Registry for royalties payment for NFTs

    • ERC6787: Order book DEX with two phase withdrawal

    • ERC6806: ERC721 holding time tracking

    • ERC6808: Fungible key bound token

    • ERC6809: Non-fungible key bound token


This newsletter is made possible thanks to Scaffold-Eth-2 hackathon!

BuidlGuidl presents: Scaffold-Eth 2 hackathon.

This is a great opportunity to build a prototype in a few days. There’s no sign-up required, simply build something & submit it before April 8.

You can hack solo, bring a crew, or find a friend in the Telegram Group to work with.

To submit your project, all you need to do is record a short video showcasing your app and add it to the top of the README.md file in your repo along with the live URL. Submissions open on April 7.


Stuff for developers

Security

Ecosystem

Enterprise

Notable at app layer

  • Maker voted for its constitution

  • DeFi Saver adds limit orders & DCA strategies

  • Sound Swap (music NFTs): 24 hour open editions & increasing price mints with instant selling


Job Listings

Job listings: $600 for four issues (75 character limit), payable to abcoathup.eth.  Questions? abcoathup at-gmail


Regulation/business/tokens

General/crypto


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Permalink for this week’s issue: https://weekinethereumnews.com/week-in-ethereum-news-april-1-2023


Upcoming Dates of Note

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11th Global Blockchain Congress by Agora Group Was a Smashing Hit

https://beincrypto.com/11th-global-blockchain-congress-by-agora-group-was-a-smashing-hit/

The 11th edition of the prominent Global Blockchain Congress by Agora Group that took place on March 6 and 7, 2023 at Sofitel Dubai The Obelisk, UAE, was a huge success.

This edition’s main theme was: Resiliency and Adaptability, which brought A-list speakers, and some of the industry’s top-level experts, providing the most reliable insights.

The Global Blockchain Congress aims to significantly contribute to the advancement of blockchain technology in the world by providing a unique platform to connect some of the most influential blockchain leaders.

The 11th Global Blockchain Congress featured more than 50 speakers, 150 investors, 20 sponsors and partners, 25 media partners and more than 300 delegates. Similarly, there were more than 250 one-on-one meetings conducted between investors and blockchain startups from more than 35 countries during this two-day event.

At the end of the two-day congress, took place the 4th edition of The Global Blockchain Congress Awards Ceremony. The winners were voted by the investors depending on the likelihood of their project getting funded. The first place was won by MYFC followed by Staynex and Casper Labs respectively.

Also a special mention to our:

Gold Sponsors:  Angelo, AutoCoinCars, Brinc, Casper Labs, Fluffies, Mothership Mining, MYFC, Outsyde, Inc., & Staynex

Silver Sponsor: Futurent

Bronze Sponsors: AmazeWallet, GameVerse, PhyGiverse Network, Kinetex Network, ŒĐIL, & MahaDAO

Partners:  Crypto Oasis, Kelsier Labs, & TDeFi           

Agora Group is very excited to announce that the 1st European edition of the Global Blockchain Congress will be taking place on June 19 and 20 in London. As well as the 12th edition of the Global Blockchain Congress in Dubai on December 11 & 12, 2023. Stay tuned!

Register here for the European edition of the GBC.

“Thank you so much for the opportunity to be part of your 11th GBC. I wanted to express my sincere appreciation for the excellent organization of the event. Everything ran smoothly, and the attention to detail was impressive.

In addition, the venue was perfect and provided a great atmosphere for the event. I also wanted to mention that the level of the attendees was very high, which made for some fantastic discussions and networking opportunities. Overall, it was a truly positive experience and I look forward to attending future events organized by Agora,” said Josep Aliagas, Managing Partner at DIS Capital.      

The post 11th Global Blockchain Congress by Agora Group Was a Smashing Hit appeared first on BeInCrypto.

Granary Finance Gets $5M Funding From DeFi Community

https://blockworks.co/news/granary-finance-defi-lending

Emerging DeFi lending protocol Granary Finance has rustled up more than $5 million of the stablecoin USDC in under two weeks, in a community-driven fundraise demonstrating homegrown decentralized interest persists despite cryptocurrency’s ongoing bear market. 

The fundraise is designed to support the development of Granary V2, developed with assistance from the EVM-focused Byte Masons Group.

Granary, which started taking shape more than a year ago, was developed as a DeFi lending alternative to conventional and centralized crypto lenders. Many of those once-powerful entities, including Celsius and Voyager, blew up last year in the debt liquidity crunch that gripped yield-bearing tokens and lenders alike in the first half of 2022. 

Developers behind Granary are categorizing the fundraise as a “liquidity generation event” (LGE) intended in part to power the release of the upcoming launch of Granary’s governance token. The governance initiative is designed to power the team’s vision of  becoming the “first truly user-centric decentralized lending platform,” Granary told Blockworks in an exclusive statement. 

The Granary team initially had a $5 million USDC fundraising goal in mind and had slightly exceeded that goal by the time of publication. The raise, as of early evening ET on Friday, was set to continue into the weekend. 

In the statement, the team said that Granary will “take center stage when it comes to frictionless lending experiences in Web3 finance.”

A growing number of decentralized alternatives — including protocols and layer-2 solutions powered by DAOs — have emerged in recent months as crypto natives look for opportunities to participate in grassroot initiatives while high-profile traditional financial institutions have taken a step back from the sector. 

The industry’s rough showing in 2022 has been a major contributing factor in slowing the torrent of capital flows from external funding sources, according to crypto traders and other market participants.

A significant contributing factor to Granary meeting its funding goal in short order: the team setting up a number of NFT and DeFi projects with discounted terms on their protocol investments, according to Granary developers and an online outline of the funding process. 

That percentage discount on shares purchased in the protocol is contingent on connecting a wallet with an “associated NFT” to Granary’s ecosystem, the team said in the outline. 

Granary’s LGE features vesting periods ranging from instant liquidity up to 20 quarters, with yield terms varying accordingly. A bonus is allocated to longer vesting periods. 

“It’s clear that our community recognizes the potential of this next-generation DeFi solution,” Granary told Blockworks in its statement.

Arbitrum Foundation to Receive $1 Billion if Proposal Passes

https://blockworks.co/news/arbitrum-foundation-billion-dollars

Days after Arbitrum’s ARB governance token airdrop, the voting on a proposal to introduce a governing body for the freshly formed decentralized autonomous organization (DAO) has begun.

The proposal, named Arbitrum Improvement Proposal 1 (AIP-1), outlines steps to create what it calls The Arbitrum Foundation, a company that would be responsible for growing the Arbitrum ecosystem.

The foundation would be based in the Cayman Islands and would require $3.5 million — set to cover legal fees, as well as administrative and registration expenses. 

Roughly 3.5 billion $ARB tokens — worth roughly $4.8 billion — have so far been transferred to an address named “Arbitrum DAO Treasury1,” making it the largest $ARB token holder.

“The ArbitrumDAO will have direct on-chain governance powers over the DAO Treasury in accordance with the AIP process as delineated in the ArbitrumDAO Constitution,” according to Lemma, the entity behind the proposal.

A representative of the Arbitrum Foundation told Blockworks that Lemma is a service provider to the Arbitrum Foundation and is primarily focused on governance components of operations. 

Lemma has also asked for an additional 750 million in $ARB tokens (roughly over $1 billion) to go to a secondary Administrative Budget Wallet, which The Arbitrum Foundation would control. 

The proposal has so far named three initial directors for the would-be foundation: Campbell Law, Edward Noyons, and Ani Banerjee. There would also be a 12-member Security Council Committee.

Law appears to be the co-founder of digital assets compliance firm Provenance, while Noyons is a director at Marfire, a consultancy firm that works with DAOs. Banerjee’s background is unclear.

Although the proposal has not yet been approved, a multi-signature wallet with an address named “Arbitrum DAO Treasury2” was created and has since received nearly 700 million $ARB tokens.

A representative for the Arbitrum Foundation confirmed to Blockworks this address is the Administrative Budget Wallet.

The proposal opened for votes on Snapshot on Monday. Voting is set to end on April 3 before being finalized on-chain. At the time of writing, almost 90% of votes are in favor of the proposal, with 10% against.

The Arbitrum Foundation did not immediately return a request for further comment.


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Crypto Scammers Pilfered Over $370M In Q1

https://thedefiant.io/crypto-scammers-pilfered-370m-q1

Losses Are 90% Lower Than Previous Quarter

More than $370M was lost to hacks and exploits during the first three months of 2023, down from a whopping $5B in the last quarter of 2022.

According to data from Rekt, $215M, or 57% of losses for the quarter, was stolen during the first three weeks of March. 

“It’s worth noting that January 2023 was one of the lowest months for hacks, with a total of $14.6 million lost, a sum that wasn’t registered in all of 2022,” said DappRadar. “This may be a positive sign that the industry is taking security more seriously and implementing better measures to prevent hacks and exploits.”

In 2022, losses cleared $1.1B in October and $3.9B in November, before dropping to $87M in December.

Euler Finance Fiasco

The $196M flash loan attack that targeted Euler Finance on March 13 accounts for more than half of the quarter’s losses.

Flash loans allow users to borrow funds from a DeFi protocol without collateral so long as the loan is repaid within the same block, eliminating any risk of the lending protocol sustaining losses. The technique is often used to facilitate arbitrage trades but also provides an avenue for opportunistic coders to perpetrate malicious exploits.

The hacker stole DAI, USDC, WBTC, and stETH from Euler using a multichain bridge that transferred assets between Ethereum and BNB Chain, before obfuscating the origin of the funds using Tornado Cash, a crypto mixing service.

However, the hacker has since returned the majority of the funds, having transferred roughly $177M worth of ETH and other assets back to Euler. On Monday, the attacker sent transactions to Euler containing encrypted messages apologizing for their actions and pledging to return the stolen assets.

BonqDAO Exploit

BonqDAO’s $125M oracle exploit in February was the quarter’s second-most expensive incident.

On Feb. 1, the attack’s perpetrator manipulated price data for the ALBT token on Bonq protocol, allowing the attacker to mint large sums of BEUR tokens against ALBT collateral. 

The hacker then swapped the ill-gotten BEUR for other tokens on Uniswap and walked away with around $10M in profits. They also triggered a wave of ALBT liquidations on Bonq after the token’s value crashed by half amid heavy selling.

Q1’s most expensive incidents also include the $45M CoinDeal fraud and the $16.5M taken by the Monkey Drainer phishing scheme.

BNB Chain Tops List By Number Of Exploits

BNB Chain remains the preferred chain for hackers and scammers, with Rekt identifying 18 incidents on the Layer 1 blockchain.

Ethereum ranked second with 10 hacks, despite representing the majority of Q1’s losses, while seven scams hit Arbitrum users amid anticipation for the Layer 2 network’s long-awaited airdrop

Rekt counts 47 incidents over the past three months in total. Smart contract exploits are the most popular form of attack this year, with 17. Rugpulls ranked second with eight, followed by flash loan attacks at six.

European DeFi startups saw a 120% increase in VC funding in 2022: Finance Redefined

https://cointelegraph.com/news/european-defi-startups-saw-a-120-increase-in-vc-funding-in-2022-finance-redefined

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

The ongoing downturn in the crypto market hasn’t stopped European venture capital (VC) firms from investing in DeFi projects. A new report revealed that European DeFi startups saw a 120% increase in VC funding last year.

The Euler Finance saga continued to dominate headlines, with the exploiter returning a significant chunk of the $190 million in stolen funds. The exploiter has returned over 58,000 stolen Ether (ETH) in one installment, and another $37 million worth of ETH and Dai (DAI) in the second one.

Traditional banking giant, Citibank, forecasts tokenization will take over traditional finance and predicts that by 2030 trillions in assets could be tokenized.

MakerDAO passed a new constitution to create multiple offices tasked with fulfilling various jobs for the protocol, each with its powers and responsibilities.

The top 100 DeFi tokens had a mixed week and didn’t see many changes from the previous week, with a majority of the tokens trading in green.

European DeFi startups saw 120% increase in VC investment in 2022: Data

2022 was a turbulent year for the crypto space, from an ongoing bear market and high-profile collapses of some of the industry’s most prominent players, like Terra and FTX. Despite the setbacks, venture capital investors continued supporting crypto startups.

According to a new study released by European investment firm RockawayX, VC investment in crypto startups based in Europe reached its all-time high in 2022, with $5.7 billion invested. European decentralized finance startups hit $1.2 billion in 2022 — a 120% increase from the previous year’s investments of $534 million.

Continue reading

Euler Finance exploiter returns over 58,000 stolen Ether

The hacker behind the $196 million exploit on lending protocol Euler Finance has returned most of the stolen assets, according to on-chain data.

In a transaction on March 25, the exploiter returned 51,000 ETH, worth around $88 million at the time of writing. A second transfer of 7,737 ETH was made on the same day, worth over $13 million. Previously, on March 18, the hacker sent 3,000 ETH to the protocol, worth nearly $5.4 million at the time. The exploiter still controls some of the stolen assets. By April 27, the attacker returned another $37.1 million worth of ETH and DAI.

Continue reading

‘Killer use case’: Citi says trillions in assets could be tokenized by 2030

Citibank is betting on the blockchain-based tokenization of real-world assets to become the next “killer use case” in crypto. The firm forecasts the market to reach between $4 trillion and $5 trillion by 2030.

That would mark an 80-fold increase from the current value of real-world assets locked on blockchains, Citibank explained in its “Money, Tokens and Games” March report.

Continue reading

MakerDAO passes new ‘constitution’ to formalize governance process

MakerDAO, the decentralized autonomous organization that governs the DAI stablecoin, has passed a new proposed “constitution” intended to formalize governance processes and help prevent hostile actors from taking over the protocol, according to the official forum page for the proposal.

According to the proposal’s text, a constitution is needed because the Maker protocol “relies on governance decisions by humans and institutions holding MKR tokens,” which can “expose weaknesses and vulnerabilities that can fail the Maker protocol or the loss of user funds.”

Continue reading

DeFi market overview

Analytical data reveals that DeFi’s total market value rose above $50 billion this past week. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bullish week, with most of the tokens trading in green, barring a few.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.

Net losses from crypto theft down sharply in Q1 2023 at $322M: Report

https://cointelegraph.com/news/net-losses-from-crypto-theft-down-sharply-in-q1-2023-at-322m-report

Crypto hackers and scammers made off with $452 million in the first quarter of 2023, according to a report released by antivirus and app provider De.Fi. But that is good and bad news, as losses were down from $1.3 billion in the first quarter of 2022. The recovery rate was down too, however.

According to the report, nearly half of the losses this quarter ($215 million) took place in the first three weeks of March. The Euler Finance and Bonq DAO exploits were the quarter’s loss leaders at $196 million and $120 million, respectively. Due to them, the Ethereum blockchain suffered the highest losses, even though Binance outnumbered them with 18 incidents to ten on Ethereum.

The CoinDeal scheme trailed at $45 million in third place, and the Monkey Drainer phishing scammers came in fourth at $16.5 million.

Related: BitKeep completes compensation for $8M APK exploit, announces rebranding 

In the 49 cases examined in the report, six flash loan attacks accounted for the greatest losses at over $200 million, with Euler Finance representing most of the total. Smart contract exploits were the most common type at 17 incidents. Decentralized finance (DeFi) accounted for only five incidents, but it suffered the lion’s share of losses at $336 million.

In the first quarter, $130 million was recovered from the exploits. All of that money was recovered in March and nearly all of it, $129 million, was due to money returned by the Euler Finance hackers. In the first quarter of last year, $520 million had been returned out of $1.3 billion lost, that is, 40% of the stolen funds, compared to 28.7% this year.

While DeFi dominated the losses reported, losses on decentralized exchanges and from crypto tokens and nonfungible tokens likely hit retail users as well. Theft is not uncommon for retail users, and scams affecting them are constantly evolving.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime