From a new Bitcoin warning to the latest support for XRP, Litecoin and Bitcoin Cash, here’s a look at some of the stories breaking in the world of crypto.
Bitcoin
As Bitcoin clings to $5,000, Bloomberg is issuing a new warning about where the price of BTC may be heading.
The GTI VERA Convergence Divergence indicator “sent its first sell signal since mid-March. The shift could suggest further downside may be ahead as the coin flirts with its highest levels of the year.”
The technical gauge is designed to identify market reversals and exhaustion. It utilizes typical moving average convergence divergence (MACD) and looks to remove excess noise, using a proprietary theory called volatility explosion relatively adjusted (VERA).
According to George McDonaugh, chief executive officer at London-based blockchain investment company KR1 Plc, a drop lower for Bitcoin would only be natural.
“When Bitcoin jumped significantly a few weeks ago, the volume was big enough to push up through major resistance levels into a potentially new trading range. Current movements are natural market cycles within a trading range, and it’s just the market searching out the lower bounds.”
[the_ad id=”36860″]
Ethereum
The latest edition of EthHub Weekly is out, covering all things Ethereum.
The new post looks at developments on Ethereum 2.0 and a number of Ethereum-based platforms, including Maker, which is comprised of a decentralized stablecoin, collateral loans and community governance, and AirSwap, a peer-to-peer trading network.
Ripple and XRP
Ripple’s global head of banking Marjan Delatinne just sat down for an interview at the 2019 Penn Blockchain Conference.
Delatinne talks about her efforts to engage with companies in the financial industry and demonstrate how blockchain can boost their bottom line.
?
[the_ad id=”36860″]
XRP, Litecoin, Bitcoin Cash
eToro’s regulated crypto exchange and wallet eToroX just launched seven new pairs for XRP, Litecoin and Bitcoin Cash. The pairs are BCH/BTC, LTC/BCH, BCH/ETH, XRP/ETH, LTC/ETH, BCH/XRP and LTC/XRP.
IBM has released a new video on its Stellar-powered World Wire remittance platform. Lead developer Seema Phalke talks about how the platform works and the advantages of using Stellar’s technology.
?
[the_ad id=”36860″]
Tron
Tron’s latest weekly report is out. The new edition reveals new progress on BitTorrent Speed which will integrate the Tron-based BitTorrent Token (BTT) with the file-sharing platform. The report also looks at the recent release of the Tron-based Tether (USDT) token.
Fintech Startup Fluidity announced its plans to launch a project that will log mortgages onto the Blockchain network.
At the Fluidity Summit held on May 9th, the company released its schedule to develop the first Ethereum-powered mortgages in New York and California. The service is set to launch this summer and is expected to feature lower rates when compared to traditional loans.
The chief architect of Fluidity, Todd Lippiatt, said:
“We’ll tokenize the house, which will effectively take the collateral that is the equity of the house. You’re pledging the house and you get an advanced rate back in terms of dollars.”
The startup’s upcoming mortgages are expected to use Cryptocurrency and smart contracts for back-end management. Lippiatt said that Fluidity is currently looking for partnerships with Ethereum-centric lending platforms like MakerDAO’s dollar-pegged DAI loans.
Borrowers must submit online credit checks and all other essential information just like in any other online loan platform. Fluidity will then process the information and create a smart contract using a tokenized representation of the mortgage. The company can then package these loans together and resell them as securities via an exchange like AirSwap. Fluidity plans to offer cheaper rates compared to banks, with borrowers going through a process similar to a traditional loan.
The whole process provides the borrower with a quasi-traditional mortgage. The issuer and the subsequent traders are the main beneficiaries of this blockchain system functionality. Lippiatt noted that the demographics of the underbanked and low-income borrowers are a prime fit for such loans.
Also Read:
French Multinational Bank Societe Generale sells $112 million worth of Ethereum bonds
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
This week, the various corners of the Ethereum ecosystem have been filled with a particularly lively flurry of activity.
First up, there’s MAD Stores — think “Mutually Assured Destruction.” Created by Ethereum developer Alejandro Diaz and announced on Wednesday, Turms MAD Stores is an anonymous and decentralized marketplace that leverages Ethereum smart contracts in order to avoid needing a backend server at all.
In the reveal, Diaz characterized the marketplace as akin to a “completely decentralized” and more private version of eBay:
“Another difference between ebay and MAD Stores is that sellers can remain anonymous, or at least pseudonymous; that is, buyers and sellers are only known by their Ethereum addresses (or ENS names).”
Those making deals can use the relatively new Turms Anonymous Message Transport system, another project Diaz has worked on. Turms AMT can make encrypted comms between Ethereum addresses.
Moreover, the MAD smart contracts provide escrow functionalities, a product category ledger, and the ability to record a seller’s inventory and information about it.
Buyers and sellers are protected according to the aforementioned principle of Mutually Assured Destruction. If a party on either side of a deal tries to scam the other, both users’ escrowed funds will be burned.
Another Ethereum Mixer Steps Up to the Plate Various mixers have been proposed in the Ethereum ecosystem recently (e.g. Heiswap), and the latest oncomer is the Tornado mixer, which is backed by the zk-SNARKS privacy tech — also known as “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge” transactions.
The mixer is notably non-custodial, meaning users can facilitate private Ethereum-based trades right from the comfort of an address of choice rather than having to first deposit ether (ETH) onto a centralized exchange.
The Tornado mixer was just released on the Kovan testnet, so it’s not ready for a production environment status just yet. But its progress is heartening for many Ethereum community stakeholders who have been lobbying for solid mixer resources in recent times.
Pooled cDAI Built to Help Ethereum Funding For the past few weeks, EthHub co-founder and Gnosis team member Eric Conner has floated the idea of launching a pooled fund comprised of the Dai stablecoin, the interest of which could be put toward Ethereum development activities while at the same time allowing investors to pull out their principal investments when all was said and done.
Now, an early example of that model has officially been put forth in the Pooled cDAI project. As the effort’s GitHub explains, it does the following activities:
“[…] Pools DAI, converts it into Compound DAI, and sends interests to a beneficiary. Users putting DAI into the pool receives Pooled cDAI (pcDAI), an ERC20 token which is 1-for-1 redeemable for DAI at any time.”
Introducing Pooled cDAI, an ERC20 token template allowing people to pool DAI together, lock the DAI into @compoundfinance , and send the interests to a beneficiary. Locked DAI can be withdrawn *at any time*. Kinda like generalized @PoolTogether_ . #DeFi https://t.co/jX6ZAANhdf
— zefram.eth (@boredGenius) July 25, 2019
Chalk it up as another novel open-source development funding avenue that could be explored by all sorts of entities in the cryptoeconomy, not least of which are Ethereum stakeholders looking to boost development prospects in the blockchain’s ecosystem.
Wow! Someone already built the community interest fund idea.
I love this community. https://t.co/owmaeSyT50
— eric.eth (@econoar) July 25, 2019
Speaking of the Dai stablecoin, it’s also worth mentioning that the MakerDAO team that oversees the dual MKR-DAI ecosystem has opened up a bug bounty campaign for the coming Multi-Collateral Dai offering, which will ultimately allow users to take out collateralized debt positions (CDPs) using assets beyond ether.
You all know what this means… soon™️ https://t.co/6kVa7G3rLk
— DeFi Pulse (@defipulse) July 25, 2019
Real World, Off-Chain Assets to Underpin Maker CDPs? Speaking of opening up CDPs with assets beyond ether, what about doing so with off-chain assets like physical property?
That’s what Fluidity — the builders of the AirSwap crypto exchange — are planning with their Tokenized Asset Portfolio roadmap.
Today @fluidityio introduced the Tokenized Asset Portfolio (TAP) —
A model enabling real world assets to be pledged as collateral in decentralized credit facilities —
Including the MakerDAO multi-collateral Dai system cc @makerdao $dai #ethereumhttps://t.co/0wgHQaQ5dD
— Michael Oved (@ovedm606) July 25, 2019
Reasonable people can agree or disagree as to whether off-chain assets being used to secure Dai loans is a shrewd idea, but what’s clear is that the DeFi horizon is growing day by day.
William M. Peaster
William M. Peaster is a professional writer and editor who specializes in the Ethereum, Dai, and Bitcoin beats in the cryptoeconomy. He's appeared in Blockonomi, Binance Academy, Bitsonline, and more. He enjoys tracking smart contracts, DAOs, dApps, and the Lightning Network. He's learning Solidity, too! Contact him on Telegram at @wmpeaster
AirSwap reported that their development team had detected a ‘critical vulnerability’ in a recently launched AirSwap smart contract. According to a blog released on medium, AirSwap, a decentralized token-trading platform built on the Ethereum blockchain, revealed that on 12th September, the internal security review team recognized a major flaw in the mainnet of the smart contract.
The vulnerability would have allowed any hacker to perform a swap with another party without requiring their signature. It was stated that the tainted code was active in the system for less than 24 hours and only a few addresses were affected. The article stated,
“When the issue was detected, the team immediately rolled back AirSwap Instant to use the original smart contracts. Both the AirSwap Instant and Trader products are no longer affected by the vulnerability.”
The AirSwap team also carried out a few remediations after the vulnerability was reported. Dev team initiated identification of affected users and started the process of de-risking [process of protecting user asset without alerting the network]. All vulnerable components were removed from the production AirSwap UI and from all related tools.
AirSwap released a statement of apology and remarked,
“We would like to deeply apologize to our affected users for any inconvenience these vulnerabilities may have caused, and hope that the important lessons we continue to learn throughout these processes form the basis for a more open, secure, and efficient trading environment.”
In November last year, the South Korean cryptocurrency exchange, UPbit, was hacked. The perpetrators took approximately $50 million worth of Ethereum. A new report shows that $3.2 of the stolen funds is already laundered using small transactions towards numerous other exchanges.
$3.2 M Of ETH Laundered During November in 2019, Cryptopotato reported that the popular South Korean crypto exchange, UPbit, was hacked. At the time, over $50 million worth of the second-largest cryptocurrency, Ethereum, were withdrawn from the exchange to an anonymous account, which raised concerns.
Even though UPbit officials reacted swiftly and stopped all further transactions, they confirmed a bit later that the hack indeed took place. The CEO of the company also said that they would recover all lost funds from UPbit’s corporate assets.
A new report indicates that 20,520 ETH of the total stolen amount has already been laundered. In terms of USD, it has a value of $3.2 M, which is 6.4% of all the stolen funds.
The anonymous address that received all stolen coins when the hack was initiated has been linked with numerous small transactions towards lots of other cryptocurrency exchanges. Some of those exchanges include Binance, Bitfinex, Bitrue, Huobi, Hitbtc, and more.
Uppsala Security, the entity behind Sentinel Protocol, revealed the information and claims that these transactions have the sole purpose of money-laundering. The President of the firm, Patrick Kim, seems to believe that this particular criminal activity will continue:
“We believe that the hackers continue to launder money through exchanges without any sanctions standing in their way.”
UPbit Updates Security The Korean exchange appears to be taking further steps to improve its security and to make sure that similar activities won’t happen again. UPbit recently announced that it has updated its Ethereum wallet security system and made the old addresses obsolete.
You may also like: Jaredfromsubway Hacker Ignores 50% Bounty, Routes Funds to Tornado Cash BitMine, SharpLink, and Joe Lubin Back New Ethereum Nonprofit ETHLabs New Proposal Redirects 10% of Staking Rewards to Fund Ethereum Ecosystem The company has also opened deposits and withdrawals for Ethereum and other cryptocurrencies. Moreover, customers should delete the previous ETH address from their wallets entirely, as this could cause future losses.
“A new wallet system has been adopted for deposit and withdrawal of cryptocurrencies. […] The recovery of ETH sent to the previous address from now on could be a long and costly process.”
Polkadot is exploring its own Bitcoin reserve, with a new proposal making rounds that aims to convert 500,000 DOT tokens into tBTC, an Ethereum-based Bitcoin-backed ERC-20 token. The proposal aims to implement Hydration’s “rolling DCA” mechanism and accumulate BTC over the course of the next year. The DOT community has given mixed reactions to this proposal.
Polkadot to Leverage Hydration to Convert DOT to BTC The DOT organization explained that it would leverage the Hydration system to convert DOT into tBTC through an automated system of recurring purchases. Unlike standard DCA setups, Hydration’s rolling feature streamlines the process, requiring users to top up a proxy account that automatically renews the DCA schedule. This proposal has come to light soon as the U.S. Securities and Exchange Commission (SEC) delayed the decision on spot Polkadot ETF.
The plan also shows that a small contribution of 0.005 tBTC would go to the Hydration Omnipool using Threshold Network’s non-custodial Bitcoin bridge. At current rates, 1 DOT would equate to approximately 0.000041 tBTC.
This initiative seeks to build Bitcoin reserves for the Polkadot Treasury, thereby boosting on-chain liquidity and providing better incentives for DOT’s decentralized finance (DeFi) ecosystem. Currently, the proposal is in the community discussion phase and awaits a formal vote.
From governments to corporations, and now blockchain platforms, everyone’s eyeing strategic BTC reserves. Ukrainian officials also also working on a BTC reserve bill, which, if approved, will be taken care of by the central bank.
Community Remains Divided on Bitcoin Reserves Considering the poor price performance of DOT tokens this year, in 2025, some Polkadot community members have backed the idea of having their own Bitcoin reserves. With DOT price already correcting 60% since the start of 2025, they believe that a BTC reserve would help prevent the free fall. One of the DOT community members wrote:
“I believe the “DOT ATL, BTC ATH” argument misframes the situation.
This proposal is about risk management and operational continuity, not market timing or speculation”.
He further stated that if they wait for perfect timing for BTC entry, they would never be able to diversify. Some skeptics also questioned this proposal, stating: “I just don’t see how we can do this and for it to really provide any value, short or long term”.
Additionally, the blockchain platform is also working on introducing the first Debit card for DOT tokens, by working with Nova wallet.
Tron has been making headlines after bouncing strongly from its recent low. On September 6, the token slipped to fresh cycle lows, raising concerns among traders. However, since then, Tron has staged an impressive comeback, climbing more than 18% and now testing local resistance levels. This rebound signals renewed strength in the network and growing investor confidence in its role within the broader crypto ecosystem.
Adding fuel to this recovery, Tron announced yesterday that PayPal USD (PYUSD) will now be available on the TRON network through Stargate Hydra as a permissionless token, PYUSD0, leveraging LayerZero’s Omnichain Fungible Token (OFT) Standard. This integration reflects the joint efforts of PayPal and LayerZero to expand PYUSD’s availability across multiple blockchains, ensuring the stablecoin can seamlessly reach markets and users through LayerZero’s powerful distribution network.
The addition of PYUSD0 to Tron’s ecosystem not only strengthens its relevance in the stablecoin market but also demonstrates the chain’s ability to attract high-profile integrations. With stablecoins becoming a central part of global digital finance, Tron’s alignment with PayPal USD marks a key milestone that could reinforce adoption, boost liquidity, and sustain momentum in the weeks ahead.
Tron Gains Momentum With PYUSD0 Expansion According to a recent announcement from LayerZero, the launch of PYUSD0 marks a significant step forward for PayPal USD and its reach across the crypto ecosystem. PYUSD0 extends PayPal’s stablecoin beyond its native deployments on Arbitrum, Ethereum, Solana, and Stellar, bringing it to Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, with even more chains expected to be added in the near future. Furthermore, existing permissionless versions on Berachain (BYUSD) and Flow (USDF) will upgrade to PYUSD0, creating a unified and standardized deployment of the stablecoin across multiple networks.
Importantly, no action will be required by end users. Whether someone holds PYUSD or PYUSD0, the result is one unified PayPal USD stablecoin—fully fungible and interoperable across blockchains. This guarantees seamless usability and ensures that holders can transact, transfer, and integrate PYUSD in applications without worrying about compatibility issues.
For Tron, this development is particularly meaningful. The chain has long been a hub for stablecoin activity, and the integration of PYUSD0 adds to its reputation as a key player in the digital finance ecosystem. By joining PayPal and LayerZero’s multi-chain strategy, Tron stands to benefit from increased liquidity, adoption, and developer activity within its ecosystem.
With PYUSD0, Tron not only secures a stronger position in cross-chain finance but also highlights its ability to attract mainstream integrations that resonate with both retail and institutional users. As the stablecoin market expands, this move could drive long-term adoption and strengthen Tron’s place in the next phase of crypto growth.
TRX Price Analysis Tron (TRX) is showing resilience after its sharp dip earlier this month, with price currently trading around $0.3475. The chart highlights a steady recovery, supported by the 50-day moving average (blue line) at $0.3023, which has acted as dynamic support throughout the recent uptrend. This suggests that despite volatility, buyers remain in control and are defending key levels.
TRX consolidates below resistance | Source: TRXUSDT chart on TradingView Since June, TRX has gained significant momentum, moving from the $0.25 range toward its current levels. The recent correction in September briefly tested the $0.32 area, but pthe rice quickly bounced, indicating renewed demand. Both the 100-day ($0.2738) and 200-day ($0.2055) moving averages are trending upward, reinforcing the broader bullish structure.
Resistance remains visible in the $0.36–$0.38 zone, which capped the last rally in late August. A breakout above this level would likely open the path toward $0.40 and beyond, signaling strength in line with the broader market’s optimism following the Fed’s recent policy shift.
Featured image from Dall-E, chart from TradingView
Decentralized finance protocol UniLend Finance has reportedly been exploited on Ethereum, leading to a loss of roughly $197,000 worth of assets.
On Jan. 12, real-time web3 security startup TenArmorAlert reported that an attacker exploited UniLend’s “redeem process” by manipulating a flaw in the share price calculation. This allowed the attacker to artificially inflate their collateral value and drain funds from the pool.
The attacker deposited USDC and Lido Staked Ether (stETH) as collateral, borrowed the entire pool’s stETH, and then redeemed their initial deposits without repaying the borrowed tokens, effectively depleting the pool.
At around 11:19:59 AM UTC, the exploit transaction was executed, with losses initially estimated by TenArmorAlert at $196.2K. However, a subsequent update from web3 security firm SlowMist placed the total losses slightly higher at $197.6K.
As of publication, UniLend Finance had not addressed the exploit and request for additional insights from crypto.news remained unanswered.
The DeFi sector has remained a prime target for bad actors in recent years. According to blockchain forensic firm PeckShield, approximately 60% of all exploits and scams in 2024 targeted this sector.
One of the biggest exploits in 2024 was that of Radiant Capital, allegedly executed by the notorious Lazarus Group, resulting in a $50 million loss. The attackers impersonated a trusted former contractor of the DeFi protocol to deploy malware across the devices of at least three of the project’s developers.
In November 2024, Thala protocol’s liquidity pools were drained for approximately $25.5 million, with the attacker leveraging a vulnerability in the protocol’s farming contracts. Fortunately, the attacker agreed to a $300,000 bounty and returned all stolen assets.
PANews reported on December 5th that Binance will suspend deposits and withdrawals for the following "designated networks" tokens at 16:00 (UTC+8) on December 12th, 2025 : Tranchess (CHESS, Ethereum Network), dForce (DF, BNB Smart Chain), and Aavegotchi (GHST, Polygon Network). After the suspension, deposits made through these networks will no longer be credited to your account, potentially resulting in asset loss. Users can still deposit and withdraw these tokens through other networks supported by Binance.
Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
6 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
6 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
6 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
6 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
6 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
In a technical analysis, crypto analyst Ali Martinez has identified a potential 40% breakout for Toncoin (TON), targeting an ambitious price point of $11. Martinez’s analysis, delivered through detailed chart reviews published on X, provides a robust case for TON’s impending price movement, underpinned by classical chart patterns and Fibonacci retracement levels.
Toncoin Is on The Verge Of A Major Breakout Martinez’s first chart showcases TON/USDT plotted on a 12-hour timeframe, demonstrating a classic ascending triangle pattern. This pattern is recognized in technical analysis as a bullish signal, particularly when it forms during an uptrend as is evident with TON.
An ascending triangle is characterized by a flat upper resistance line—here, at approximately $7.54—and a rising lower trendline that sequentially creates higher lows. The convergence of these lines indicates dwindling supply and increasing demand, suggesting that a breakout is likely as the price compresses.
The target price of $11, which implies a 40% increase from the triangle’s resistance line, is derived using the measured move method. This method calculates the breakout target by adding the widest point of the triangle to the breakout point. In TON’s case, the widest part of the triangle spans approximately $3.07 (40.03%), projecting from the breakout resistance could ideally set the price near $11.
Martinez extends his analysis on a separate 4-hour chart of TON’s performance in a Tether (USDT) perpetual contract on Binance. This chart employs Fibonacci retracement levels to further refine the support and resistance thresholds. The Fibonacci levels, drawn from recent highs and lows, reveal crucial supports at $7.44 (23.6% retracement), $7.30 (38.2% retracement), $7.1912 (50% retracement) and $6.9220 (78.6% retracement).
Compounding the technical narrative, the TD Sequential indicator—an advanced tool used to predict price reversals—points to a potential short-term pullback. Martinez notes this indicator suggests that TON might dip to around $7.2, aligning with the 23.6% Fibonacci level, before making the significant bullish leap. This dip is interpreted as a strategic entry point for investors, providing a lower risk buying opportunity before the anticipated breakout.
“Toncoin is gearing up for a potential 40% breakout, aiming for $11! However, the TD Sequential indicator suggests TON might briefly dip to $7.2 to gather liquidity before the upswing,” Martinez noted via X.
For traders and investors, understanding the strategic significance of the $7.2 entry point is crucial. This level not only represents mid-point of the retracement but also serves as a psychological support zone, where the market might consolidate gains before accumulating enough momentum for the potential breakout.
At press time, Toncoin traded $7.59.
TON price is on the verge of a new all-time high, 4-hour chart | Source: TONUSDT on TradingView.com Featured image from Pintu, chart from TradingView.com
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
The Solana native coin is generating news as it goes against the trend, lately surpassing $176 in a move that has piqued the crypto world’s interest. This gain is especially surprising given the sour mood around the crypto just weeks ago, with several analysts predicting the altcoin would suffer.
SOL breaks past $176. Source: Coingecko But Solana has defied the odds, increasing both in price and in market confidence. According to analyst Miles Deutscher, the gain coincides with a broader increase in positive sentiment for Solana, encouraging industry-wide discussions about its potential.
Solana sentiment and mindshare keeps going through the roof.
But the run is far from over.
I just uploaded an important $SOL update, including:
• My price prediction
• My top ecosystem picks
If you hold Solana, you need to watch this video 👉https://t.co/fsa8qabYHE pic.twitter.com/KX7xeG3gkn
— Miles Deutscher (@milesdeutscher) October 24, 2024
Technical signs indicate an even brighter future for the fifth-largest altcoin. According to experts, Solana’s present trajectory, which is supported by a bullish pennant pattern, indicates that SOL might reach as high as $260 if it breaks past resistance.
📈 Solana is outperforming most altcoins as prices are looking to rebound after a big fall Wednesday. The #5 market cap asset continues to be a prime example of how the crowd usually gets it WRONG. View the current bearish sentiment as a sign SOL can continue to pump. pic.twitter.com/pRkCnyxRxh
— Santiment (@santimentfeed) October 23, 2024
Increasing Interest And Technical Indicators As Solana’s price rose, observers saw a dramatic surge in positive sentiment about the asset. According to data, the number of discussions surrounding Solana has contributed to the upsurge observed in the slant.
Mindshare (a measure of the percentage of crypto discussions a coin commands) has remained high. For Deutscher, the increasing attentiveness on Solana is a sign that there is even more room for growth, contrary to the prevailing tendency in the market.
Although some investors are wary, experts say the technical terrain is still favorable. If the item breaks over its barrier, the optimistic pennant formation in SOL’s price action usually denotes more gains. Depending on if Solana can break out from its present level, its token’s price might be positioned for a notable climb toward $260.
SOL market cap currently at $82.8 billion. Chart: TradingView.com The Ethereum-Solana Rivalry Surprisingly, Solana’s comeback happens at the same time that Ethereum co-founder Anatoly Yakovenko shows his accolade on Ethereum. Solana and Ethereum are competitors, but Yakovenko recently praised Ethereum’s core technology and said he liked its design and goal.
I like @BanklessHQ and ethereum. I even like the ethereum design and vision. If you told me to go build an alternative to bitcoin, ethereum settlement layer focused design is what I would steer the engineering towards.
If that’s the vision, ethereum can just embrace all the…
— toly 🇺🇸 (@aeyakovenko) October 24, 2024
This is of interest to people as they are generally two competing networks that try to outdo each other in offering superior decentralized apps and smart contracts functionality.
Ethereum has long been the preferred protocol among developers, but Solana, dubbed a “Ethereum-killer,” has quickly gained favor because to its speed and lower transaction fees. Yakovenko’s recognition demonstrates a developing sector in which competitors can acknowledge each other’s contributions to blockchain innovation.
Future Perspectives And Market Sentiment Meanwhile, Deutscher feels Solana’s price might double or possibly quadruple, particularly if Bitcoin rises to new highs, say $100,000. SOL’s continued performance despite recent falls suggests that it may have strong community and long-term holders. For the time being, SOL is a coin to keep an eye on, and with increased sentiment and a technical boost, it appears to be on track to continue challenging expectations.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Within a few hours following a tweet by Changpeng Zhao, the CEO of Binance, the Travala token, AVA, has risen by 300%. For the crypto travel agency, which lately revealed having reached $100 million in annual revenue, this increase marks a turning point. From $0.80 to $30.1, the price of AVA has exploded, courtesy of growing interest in the use of digital currency in the travel industry.
Binance Early Investment Binance had already invested in Travala before the pandemic, as disclosed in Zhao’s tweet on December 12. Both investor confidence and Travala’s position as a frontrunner in the space of crypto bookings were bolstered by this statement. At the time of writing, AVA was trading at approximately $2.51, showcasing its remarkable recovery since hitting an all-time low earlier this year.
AVA sustains a weekly rally. Source: Coingecko Travala Strategic Initiatives Travala has come up with a new way to handle bank reserves, which includes both AVA and Bitcoin (BTC). This change was made purposefully to strengthen its market position and urge more people to use cryptocurrencies to book travel. According to Juan Otero, CEO and co-founder of Travala, the plan shows their commitment to better customer experiences while keeping their finances strong.
We invested in this crypto travel platform pre-COVID, pre-crypto winter, and held on. BUILD! https://t.co/q40IZ4xfM3
— CZ 🔶 BNB (@cz_binance) December 12, 2024
Travala is changing the way people book travel as it accepts more than 100 cryptocurrencies as a form of payment. The platform allows users to reserve hotels, flights, and activities in 230 countries, offering a wide option for visitors looking to use digital currencies.
AVA is currently trading at $3.05. Chart: TradingView AVA And Cryptocurrency In Travel The rise in AVA’s price points to a more general trend towards digital currency integration in the travel sector than just temporary change. Platforms like Travala are likely to get rather popular as traditional travel companies become convinced of blockchain technology’s possibilities. The disclosure of their treasury reserves is expected to attract more investors looking for innovative ideas in the crypto field.
Analysts, meantime, envision a great future for AVA. Forecasts indicate that should present trends continue, the altcoin might see significant increase in 2024 and beyond. Through continuous innovations and cooperative efforts with reputable travel agencies, Travala is starting to take front stage in the evolving sector of cryptocurrency travel.
The significant increase in Travala’s AVA token after CZ’s endorsement exemplifies the influence of social media and prominent individuals on market dynamics. As Travala persists in innovating and broadening its services, it might potentially usher in a new epoch of travel driven by digital currency.
Featured image from Pintu, chart from TradingView
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Ethereum (ETH) down 4.8 percent and hanging Bosch, Samsung, and Amazon see potential in Ethereum Vitalik zeroed in on Augur and Kleros as two projects that would eliminate human verification, as Bosch said they are trialing projects in Ethereum. Prices are stable, down 4.8 percent. But bills still have control.
Ethereum Price Analysis Fundamentals On April 30th, Elon Musk tweeted, “Ethereum” and that was enough for Ether prices to move, jolting bulls and could have been the precursor to what we are currently witnessing. What we have seen is a near 50 percent jump in a coin that was even immune to Bitcoin gains of early April.
Well, of the many application brought by its smart contracting capability is moving identity to the immutable blockchain. That shift alone would cut off fraud, and it is something Vitalik, the “no-giver of ETH”, is pretty excited about.
During 2019’s Blockchain Week, the innovative co-founder highlighted two projects that are planning to revolutionize verification. The two, Augur and Kleros, Vitalik said will replace human verification. Through their decentralized protocols, the Ethereum co-founder expects for industries to benefit from their innovation.
While Vitalik heaped praise on these Ethereum based projects, Bosch, it is emerging, is running trials on the Ethereum platform:
“The Ethereum platform allows such projects, including for example, in the case of Bosch applications, autonomously charging and paying EV. There is no strategic favor for any existing technology. We have evaluated Ethereum, Hyperledger, and IOTA in small prototypes before.”
Candlestick Arrangement
Overly, big corporations are settling for Ethereum in a move that cements the platform’s position as a go-to smart contracting platform. Meanwhile, Ethereum Foundation is accelerating development towards Serenity that will, without a doubt, support ETH prices.
The coin, at the time of press, is down 4.8 percent and hanging. Even if prices drop, there is an opportunity for traders to find entries in lower time frames as long as prices are above the $170 as per our previous ETH/USD highlights. It’s easy to see why.
ETH is trading within a bullish breakout against the USD. Typical of these patterns, prices often retrace in a retest before prices snap back to trend. In any case, any dip below $230 could see ETH sink to $190 in a retest. On the other hand, any expansions above $270 with above-average volumes open up doors for $300 and $450 in a bull trend continuation phase.
Technical Indicator As a result, our reference bar is May 19th. It is wide-ranging with high participation. Any surge or drop below $230 canceling our outlook ought to be at the back of a volume spike exceeding 271k and preferably 822k of May 16th.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
Dubbed by many the fastest growing Ponzi scheme on Ethereum, the smart contract FairWin has emptied its account, according to data from Etherscan. Just a few days ago, the account possessed almost 50,000 ETH (~$9 million).
While the nature of the withdrawal has not been confirmed, the total volume of withdrawing addresses suggests that concerned users had taken their funds out after multiple crypto-users on social media speculated that the smart contract was actually a Ponzi scheme.
It is unclear whether the contract was drained by its owner, some malicious actors or concerned users, but the multitude of withdrawing addresses suggests the latter.
According to Horizon Games’ Blockchain Researcher & Developer Philippe Castonguay, the “scheme” contains critical vulnerabilities which put the funds at risk.
The https://t.co/1HHnXNCWsL Ponzi Scheme contains critical vulnerabilities that put all funds at risk.
Spread knowledge (especially in Asia) ? Users need to withdraw their funds and stop interacting with the contract ASAP.
Details on the exploits will be published soon.
— Philippe Castonguay (@PhABCD) September 27, 2019
Later, Castonguay expanded on the details of the three main vulnerabilities he’d discovered on the Ethereum smart contract. One allowed the owner or administrator to drain the account and another allowed the admin to lock withdrawals. The third vulnerability allowed anyone to steal the deposits.
CTO of Kleros, Clement Lesaege, also posted a detailed explanation concerning the vulnerabilities on Reddit.
After the vulnerabilities were publicly announced, FairWin’s team responded to Lesaege by stating,
“Thank you for your suggestion. We have already found the vulnerability, but we don’t think it is a vulnerability. The contract is judged and the invitation code generated by the user for the first time will be used as the final invitation code. So the loophole is invalid.
In addition, we have real-time monitoring on our side. Once it is entered, it will be invalid. The intruder, we will alert at the first time, and then exclude the intruder.”
According to Castonguay’s more detailed blog post on the matter, there is no evidence to say that the funds were withdrawn by malicious attackers. The last successful withdrawal took place yesterday at around 9.21pm +UTC.
Fairwin, a gambling platform, has been running one of the biggest contracts on the entire Ethereum network. In the last 30 days, the platform has spent more than 51 percent of all gas, the fuel that powers Ethereum, according to ETH Gas Station. That’s almost double the funds spent by the stablecoin network Tether, which has used 28 percent of gas supplies.
Fairwin claims it’s a provably-fair gambling platform. Users bet on rudimentary games of chance, like coin flips and dice rolling. When you gamble, four percent of your funds go towards “ecological construction,” which Fairwin says will be returned to the investors. But many security researchers think the whole thing is a scam. Over the past few weeks, white hat hackers have revealed vulnerabilities in the Fairwin contract on Ethereum that put millions of dollars of customer funds at risk. According to analysis by Ethereum developer Philippe Castonguay, Fairwin received a total of 687,598 ETH, or around $125,000,000. But as of Monday this week, all the funds have been drained from the contract.
It’s unclear whether this is a massive exit scam, or if the white hatters were successful in raising awareness about the scam and spooked investors have pulled all their cash out. A message on Fairwin’s website said it “expressed strong condemnation” for “false news reports,” and that it’s restarting the game within the next three days. Daniel Luca, a security auditor who helped discover the vulnerabilities, said the owner managed to remove most of the funds before investors could withdraw. But it was “impossible for everyone to withdraw their funds. Some people got burned,” he told Decrypt.
White hat hackers caught wind of the project earlier this month and have been working on it since. A vulnerability disclosure by Clément Lesaege, a CTO at blockchain start-up Kleros who got wise to the project through an Ethereum security Telegram chat, showed that the contract is unsustainable; the more money that people keep adding to it, the higher the dividends to be paid out. But here’s the problem: Once new people stop putting money in it, the contract won’t be able to pay participants, and everyone will eventually lose everything. That’s right; September’s hottest app on the Ethereum blockchain, according to many, looks and smells like a Ponzi scheme. Here’s how it works.
A few days ago, white hat hackers found a vulnerability that allows the contract operators to drain users’ wallets of funds. As Lesaege wrote: “The execution of the reward, dividends, and sending of awards can only be done by the operator. The operator can choose which users get rewarded. The operator can steal the funds from the contract by not executing the rewards of other users but executing the rewards of accounts they control.”
Lesaege said the contract also runs something called a “frontrunner” attack. Under Fairwin’s dodgy contract, investing in the scheme generates a code as part of a referral program. But Fairwin’s payouts always go to the first person who redeems the code. An attacker, having conned a victim into joining, can according to Lesaege, easily work out their invite code: “An attacker can see your "invite code" when your transaction is in the mempool before it gets executed and "invest" in the scheme with the same "invite code" as you,” wrote Lesaege, netting any rewards from their victims’ investments.
That means that all the funds in the contract were at risk. White hatters spent the last few days trying to spread the word about Fairwin to its customers, many of whom they believe live in Asia. But, for better or worse, the swamp has been drained: ten days ago, the contract held $10 million at once. Now, zilch.
How Fairwin is Unfair
Fairwin first started work on a gambling platform back in January 2018. But in December, the team tweeted—in perfect English—that they didn’t raise enough money for the ICO, and had since abandoned the project. But in July 2019, despite no announcement on any of Fairwin’s social media channels, a Fairwin clone launched a new contract to haunt the Ethereum network. Since then, the contract has grown to peaks of $10.5 million.
It’s nigh impossible to work out who runs it. Emails from Decrypt bounced back, Fairwin’s Twitter shut down a year ago, its London office is now a coffee shop, and a couple of days ago, Fairwin’s team members were compressed stock images of businessmen. Now...cartoon puppets.
There’s reason to believe it isn’t the original Fairwin team. For starters, Fairwin’s whitepaper is a Google-translated mess. “Chain of the underlying technology of FW based on Ethernet fang,” reads one section. “Based on the block chain technology, FW will achieve the global gambling industry circulation, break the data island, and digitalize the global asset circulation,” reads a section titled “Ecology Construction.”
Fairwin’s promotional videos are narrated by computer-generated voices. But no human voice, computationally generated or no, can make sentences like “The platform again realized excess accumulation” sound natural. (The videos, though, are amazing: seriously, watch them).
The code, too, is similarly incomprehensible. According to experts, it’s full of useless rubbish, and much of it doesn’t even work. “This contract is the contract with the lowest code quality I've ever seen (and I've seen really bad contracts),” said Lesaege. He said there were no comments on the code–a feature common in codebases–the names are full of typos, entire portions are of the code aren’t accessible, and a lot of it simply doesn’t work.
Harry Denley, a security researcher who created a dashboard that queries Fairwin data, told Decrypt he discovered that the six admin addresses needed huge amounts of capital to keep calling contract methods. The reason? Because the contract is “poorly written,” these method calls can cost upwards of $30. “And these calls are being done multiple times a day,” he said.
So the question remains unanswered: Was Fairwin created by evil geniuses, who’ve corrupted and robbed from over half of the Ethereum blockchain. Or is Fairwin the result of a Ponzi scheme, poorly coded, and fronted by cut-price actors in blockchain’s latest get-rich-quick scheme?
“The simplest and most likely explanation is that it was just badly coded,” wrote Lesaege. Lesaege said he first disclosed the vulnerability to the Fairwin team on Saturday. “Since FairWin had had some vulnerability in the past but fixed it, I thought that they would not try to hack their own contract,” he told Decrypt. But Fairwin denied the vulnerability, and money kept flowing into the contract. Lesaege said he received the following message from Fairwin: “We have already found the vulnerability, but we don't think it is a vulnerability. The contract is judged and the invitation code generated by the user for the first time will be used as the final invitation code. So the loophole is invalid.” A message on their site today said that the game will be restarted, and vehemently denies allegations of scams. “They might not be intentional, but they can still drain the contract at any time,” said Daniel Luca, a security auditor who helped discover the vulnerabilities.
Over the past week, top security experts have been raising awareness to get FairWin shut down, or at least to help users take control of their funds. “Avoid interacting with this contract and withdraw funds in it, if any,” advised Philippe Castonguay, who also took part in the discovery. “All users funds are at risk, especially newly deposited funds,” he told Decrypt. The awareness campaign is working; in the last 24 hours, FairWin has lost all of its volume, major blockchain explorers like Etherscan have flagged it as vulnerable, and no funds remain in its wallet. Is it a White Hatter Victory, or Ethereum’s latest exit scam?
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
Ahmed Balaha is a journalist and copywriter based in Georgia with a growing focus on blockchain technology, DeFi, AI, privacy, digital assets, and fintech innovation.
Has Also Written
Fact Checked by
CryptoNews Editorial Team
Author
CryptoNews Editorial Team
Part of the Team Since
Sep 2018
About Author
The CryptoNews editorial team is composed of seasoned writers specializing in cryptocurrency and blockchain technology. Their expertise ensures comprehensive, accurate, and insightful content for...
Has Also Written
Last updated:
June 22, 2026
A tax proposal posted to the Ethereum Research forum by Kleros founder Clément Lesaege would let ETH validators vote to redirect up to 10% of staking rewards to public goods funding. If a majority of validators signal above zero, that rate becomes mandatory for every validator on the network, including those who voted for none.
For Bitmine (BMNR), which has staked 4.72 million ETH through its MAVAN platform and projects $258 million in annual net staking revenue, the exposure range is $50–100 million in lost income per year.
Ethereum Validators Face 10% Staking Reward Redirect Plan for Ecosystem Funding
A new proposal on Ethereum's $ETH research forum wants validators to redirect up to 10% of their staking rewards toward ecosystem funding. If a majority signals support, the contribution becomes… pic.twitter.com/16PgRfEBd5
— BSCN (@BSCNews) June 22, 2026 That figure is not speculative padding. It represents the direct arithmetic of applying a forced yield reduction to the single largest ETH staking position held by any public company. The proposal is still a forum post, not an EIP. That distinction matters – but so does the direction of travel.
Discover: The Best Token Presales
The ETH Validator Redirected Revenue Tax ProposalLesaege’s post, titled “Validator Redirected Revenue,” frames the mechanism as a solution to a coordination failure. According to his ETH tax proposal, Ethereum’s shared infrastructure generates value for everyone but is funded by no one in a structured, protocol-level way.
His proposed fix is a signaling system embedded in the consensus layer. Each validator declares a preferred redirect rate between 0% and 10% of their staking rewards. If more than 50% of total staked ETH signals are above zero, a single rate is selected and applied universally.
Ethereum ResearchNow, a validator that voted for 0% redirection does not retain its full yield if the majority crosses the threshold, as it gets swept into the mandatory rate alongside everyone else. Funds flow automatically to an allocation smart contract, with a splitter routing capital to designated recipients such as Gitcoin, Octant, and audit organizations.
Lesaege explicitly described the post as a conversation-starter: “We seek further feedback before working on a technical implementation to put forth as an Ethereum Improvement Proposal.” As of now, no EIP number has been assigned.
A parallel mechanism called Validator Revenue Redistribution (VRR), presented by Ethereum Foundation researcher Devansh Mehta at EthCC, provides the technical plumbing layer. Mehta described the threshold dynamically, “If 51% put their flag up, all 100% of stakers have to part with a portion of their rewards.”
Photo by Morthy Jameson on PexelsDiscover: The Best Crypto to Diversify Your Portfolio
Bitmine’s MAVAN Platform: The $258M Revenue Thesis Exposed to Protocol GovernanceBitmine’s May 8-K reported 4,718,677 ETH staked via MAVAN, or 87% of its 5.42 million ETH total holdings and 4.49% of total ETH supply. The 7-day annualized yield at that date was 2.73%, against a CESR benchmark of 2.81–2.84%. At full deployment, Bitmine projects $296 million in gross staking rewards and $258 million in net staking revenues annually.
Photo by Brett Sayles on PexelsThe math for a protocol-level redirect is straightforward. Each 1 percentage point reduction in effective annual yield on 4.72 million ETH costs approximately $94 million per year in gross rewards at an ETH price around $2,000.
However, a 10% redirect of the current 2.73% yield diverts 0.27 percentage points, translating to $25 million per year flowing away from BMNR’s validators. At this rate alone, the direct hit is meaningful but not existential.
The $50–100 million exposure range reflects a wider scenario set. If the mandatory redirect rate compounds with any secondary compression in overall validator economics like reduced participation incentives, institutional validators exiting to restaking or L2 yield strategies, or ETH price movement, the effective yield impact on 4.72 million ETH staked.
Staking revenue is not a secondary income line for Bitmine. It constituted more than 93% of quarterly revenue in Q2 FY2026, and the company declared a $0.01 annual dividend in January 2026. Bitmine is the first large-cap crypto company to do so, funded directly by staking income.
A material yield cut would pressure that commitment in a way that no operational decision by management can offset. The ETH validator tax is not a cost Bitmine can engineer around; it is a protocol-level deduction from the asset class itself.
The bank’s 60 million customers can now buy BTC and ETH through the firm’s Ion app.
The largest banking institution in Latin America has opened the doors for all of its clients to get exposure to Bitcoin and Ethereum.
Itaú Unibanco, Brazil’s largest bank by assets under management, is now offering BTC and ETH trading to its more than 60 million clients. Users can access both tokens through the company’s Ion app.
In December 2023, Itaú launched the cryptocurrency trading platform for select clients. According to the firm’s Head of Digital Assets, Guto Antunes, the bank decided to expand its operations due to weekly surveys showing high demand for crypto services.
Although the company is only offering the two largest assets by market capitalization, the idea is to add support for other tokens in the future. "It starts with bitcoin, but our overarching strategic plan is to expand to other crypto assets in the future," Antunes said last year.
Institutions in Brazil have been relentlessly pushing the envelope when it comes to crypto services in the country. Alongside Itaú’s crypto trading platform unveiled last year, Brazilian neobank Nubank partnered with Circle to offer USDC access to the company’s 80 million customers.
Latin America is quietly becoming a regional powerhouse in terms of crypto adoption. Recently, a grassroots Argentinean organization called Crecimiento revealed plans to create a Crypto Silicon Valley in Buenos Aires. Across the Andes, Chile has been paving the way for friendlier regulation in terms of fintech companies, with the country approving a new financial technologies law in 2023.
And the region is one that desperately needs more financial inclusion. It is home to more than 650 million people, of which 122 million are unbanked, while citizens of several nations grapple with double and triple-digit inflation.
Ion Protocol secures $7 million to develop its Nucleus platform, aimed at improving monetization for rollups and appchains. Nucleus will enable networks to offer native yields for assets backed by ETH, BTC, and USD, incentivizing deposits and maximizing the value of bridged assets. The platform addresses a common limitation of Ethereum rollups by providing default yields and optimizing liquidity through infrastructure products and loans.
Ion Protocol has successfully secured a $7 million investment to support the development of its innovative native yield platform, Nucleus. The funds come from various investors, including Gumi Capital Cryptos, Robot Ventures, BanklessVC, NGC Ventures, Finality Capital, and SevenX Ventures. The raised capital will be used to enhance the platform, which aims to address monetization challenges for rollups and appchains while promoting new decentralized use cases.
Nucleus is a key solution designed to improve the yield of assets transferred to rollup and appchain networks. Through this platform, any network will be able to offer its users native yields for assets backed by ETH, BTC, and USD. The system provides financial incentives for making deposits into the networks, allowing users to generate returns on a wide range of assets simply by integrating into the network environment.
The Ion team is proud to announce Nucleus, the 1st step in transforming how users interact with networks.
The Nucleus vision is one where networks can bring safe yield to their users at scale.
Join us in our journey with Nucleus as we expand the scope of what Ion will enable! https://t.co/xOz2SNZlHS
— Ion Protocol (@ionprotocol) August 12, 2024
Nucleus co-founder Chunda McCain stated that participating in the staking and restaking ecosystem to generate yield is becoming a powerful economic incentive for everyone involved in the crypto economy. He noted that networks failing to offer their users the option to maximize the value of their bridged assets are missing out on revenue opportunities.
Nucleus Breaks the Limitations of Rollups Nucleus’s plug-and-play platform allows rollups to innovate on their existing business models and ecosystem designs, making deposits genuinely attractive to users. Additionally, it addresses a common limitation in Ethereum rollup solutions, which often provide cheaper and faster transactions but require users to forgo staking yields on the mainnet, where returns are around 3-4%.
Bridged assets typically do not earn interest, representing a significant opportunity cost. Nucleus aims to provide default yields for users across more than 20 rollups and appchains in the coming months.
The platform sources its yield from infrastructure products like bridges and oracle networks, transferring the revenue to networks, apps, and users. Additionally, Nucleus uses capital lent on its lending platform and reallocates unused borrower liquidity to facilitate smooth liquidity movement between chains. This strategy aims to minimize risks and optimize performance for users and networks.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Abermals ist Solana unter die psychologisch wichtige Marke von 200 US Dollar gestürzt: In den letzten 7 Tagen ging der Preis um 16 Prozent zurück und bewegt sich nun bei 183 US Dollar. Zu Jahresanfang bewegte sich Solana bei 217 US Dollar, am 6. Januar übersprang Solana sogar die 220 US Dollar-Grenze. Auch wenn es in den letzten Tagen steil bergab ging, bleiben die langfristigen Prognosen aber positiv. Einige Experten sind überzeugt, Solana könnte noch in der ersten Jahreshälfte in Richtung 300 US Dollar gehen; werden von der SEC die ersten Solana Spot ETFs zugelassen, könnte das ebenfalls positiv für weitere Preisexplosionen sein.
Kein Grund zur Sorge: Der Preis könnte sich 2025 verdoppeln Analyst Ted Pillows ist überzeugt: Solana könnte in diesem Jahr in Richtung 400 US Dollar gehen – das behauptet er jedenfalls auf X. Auf lange Sicht würde es keine negative Markteinschätzung geben; es bestehe zudem eine sehr hohe On Chain-Aktivität im Netzwerk von Solana. Dabei hebt der Analyst auch vor, Solana würde bereits in unterschiedlichen Anwendungsbereichen zum Einsatz kommen – etwa im Bereich dezentraler Finanzanwendung (DeFi), künstlicher Intelligenz (KI) und Meme Coins. Diese breite Nutzung zeigt ganz klar, dass das Netzwerk von Solana durchaus relevant bleibt.
2024 ging es für Solana steil nach oben: Im Januar 2024 lag der Preis bei rund 85 US Dollar, im März ging es dann über 200 US Dollar. Das Allzeithoch wurde am 23. November aufgestellt: 263 US Dollar. Im Ranking der Top Kryptowährungen laut Marktkapitalisierung befindet sich Solana auf Platz 6 mit knapp 90 Milliarden US Dollar.
Solana ist mit Sicherheit eine jener Kryptowährungen, die für 2025 empfohlen werden kann – vor allem, wenn man langfristig investieren möchte.
Zudem gibt es neben Solana noch Solaxy, eine neue 2 Layer-Lösung, die ebenfalls ein nicht zu unterschätzendes Potential hat.
Hier geht es zur Homepage von Solaxy
Sollte man in Solana und Solaxy investieren? Bei Solaxy handelt es sich um die erste für Solana geschaffene 2 Layer-Lösung, die innerhalb kürzester Zeit viel Aufmerksamkeit auf sich ziehen konnte. Im Zuge des aktuellen Presales wurden bereits über 9,5 Millionen US Dollar eingesammelt. Das Ziel, das bei Solaxy verfolgt wird? Durch eine weitere Skalierungsebene soll die Performance von Solana optimiert werden. Solana, bekannt für die sehr hohen Geschwindigkeiten und die relativ geringen Transaktionskosten, stößt nämlich bei einem immer größer werdenden Wachstum regelmäßig auf Belastungsgrenzen. Hier kommt eben Solaxy ins Spiel und bietet eine neue Lösung an.
Spielen bei Ethereum die Layer 2-Lösungen längst eine Schlüsselrolle, so steht Solana bei der Massenadoption vor vergleichbaren Problemen und Herausforderungen. Solaxy will einerseits an der Skalierbarkeit schrauben, andererseits auch die Netzwerkrobustheit verbessern. Das Projekt verfolgt den innovativen Ansatz, indem es Ethereum und Solana kombiniert. Durch diese parallele Speicherung der Transaktionsdaten auf Ethereum soll eine höhere Ausfallssicherheit erreicht werden.
Des Weiteren punktet man mit einer flexiblen Architektur, die erlaubt, dass Vermögenswerte problemlos zwischen den beiden Netzwerken übertragen werden können. Das heißt, Entwickler können auf neue Möglichkeiten zugreifen und Multi Chain-Anwendungen entwickeln, die dann auf den Stärken der beiden Blockchains basieren.
Hier geht es zum Presale von Solaxy
Der Plan: 138,046 Milliarden SOLX Token sollen ausgegeben werden. Um das Projekt auf lange Zeit zu sichern, werden 20 Prozent der Token als Reserve aufbewahrt. 15 Prozent der Token stehen für das Marketing zur Verfügung, damit das Wachstum und in weiterer Folge die Bekanntheit von Solaxy vorangetrieben werden kann.
25 Prozent der Token stehen für die frühen Unterstützer bereit. Also jene, die schon während dem Presale investieren. Nach dem Ende des Presales stehen 10 Prozent für die Listung auf einer Kryptobörse zur Verfügung.
Der größte Anteil der Token wird für die Weiterentwicklung verwendet – das sind 30 Prozent der Token.
Derzeit können all jene, die von Solaxy überzeugt sind, über die Homepage Token erwerben. Was man dafür benötigt? ETH, USDT oder BNB sowie eine kompatible Wallet, damit die Token dann übertragen werden können. Die Token können übrigens gestaked werden. Die Rendite geht bis zu 370 Prozent.
Draufklicken und in Solaxy investieren
Hinweis: Investieren ist spekulativ. Bei der Anlage ist Ihr Kapital in Gefahr. Diese Website ist nicht für die Verwendung in Rechtsordnungen vorgesehen, in denen der beschriebene Handel oder die beschriebenen Investitionen verboten sind, und sollte nur von Personen und auf gesetzlich zulässige Weise verwendet werden. Ihre Investition ist in Ihrem Land oder Wohnsitzstaat möglicherweise nicht für den Anlegerschutz geeignet. Führen Sie daher Ihre eigene Due Diligence durch. Diese Website steht Ihnen kostenlos zur Verfügung, wir erhalten jedoch möglicherweise Provisionen von den Unternehmen, die wir auf dieser Website anbieten.
Crypto markets slowly starting to correct; VeChain and BNB going strong, Stellar, ADA and NEO dropping fastest. Market Wrap Yesterday’s minor movement did not last and crypto markets have fallen back a little as we end the week. The week-long rally looks like it is about to run out of steam as resistance is hit for the big cap cryptos. Total market capitalization has held though and is still above $134 billion for the time being.
Total market cap, 24 hours. Yet again Bitcoin hit resistance at $4,000 and failed to break through. The longer this happens the less likely there will be a break to the upside. BTC is trading down marginally on yesterday’s levels but it still holding around $3,970 at the moment, volume is slowly shrinking however.
Ethereum is holding $147 for now but it too has failed to break resistance at $150 so further losses could be on the cards. XRP is falling back and has lost 2% on the day dropping it to $0.322. This has widened the gap between it and ETH to $2.1 billion.
The top ten is all red during Friday’s Asian trading session aside from Binance Coin which is back up again while others are falling. BNB has made over 3% on the day taking it to $10.90. The biggest drop in the top ten is Stellar losing 3% but remaining above Tron for now.
The top twenty is awash with red at the time of writing. Cardano and NEO are dropping the most with 4% losses each. The rest are dumping between 1 and 3 percent as markets correct from three days of buying pressure.
QASH has surged back into the top one hundred with a fomo pump of 33% but today’s surprise mover is VeChain which has made 12% over the past 24 hours. Daily volume has almost quadrupled from $5.7 million to almost $20 million, over half of it traded on Binance. The recent blockchain integration with Amazon Web Services appears to be driving momentum;
AWS services enable one-click VeChainThor Blockchain deployment for enterprises.
Original: https://t.co/qIWZVS9mbR
English: https://t.co/lBtB6T5vCZ
— VeChain (@vechainofficial) February 18, 2019
Total market capitalization has cooled off and settled at $134 billion, down 1.5% from yesterday’s levels. Daily volume continues to dwindle and is now $10 billion less that it was a couple of days ago at $25 billion. It has been a strong week for crypto markets which are still up 10% on the same time last week.
Market Wrap is a section that takes a daily look at the top 20 cryptocurrencies during the current trading session and analyses the best-performing ones, looking for trends and possible fundamentals.
In a market where most major cryptocurrencies are struggling to find momentum, AI tokens are posting significant gains.
Even as blue-chip assets like Bitcoin, Ethereum and Solana remain stagnant, the likes of SingularityNET (AGIX), Fetch.ai (FET) and Oraichain (ORAI) are up 57%, 53%, and 11.5% over the week respectively.
Much of the recent buzz around AI tokens has been significantly fueled by the anticipation of Nvidia's Q2 earnings report.
The AI hardware titan has been at the forefront of the AI revolution, and its financial performance is closely watched by investors across various sectors, including cryptocurrency. Analysts are expecting sales of $28.7 billion, or a 112% increase, which would be 139% higher than the prior year's Q2.
The anticipation of strong earnings has driven a wave of optimism towards these tokens. Nvidia's influence on the AI token market is profound. As the company continues to dominate the AI hardware industry, it indirectly boosts the confidence of investors in AI-driven cryptocurrencies, which are seen as part of the broader AI ecosystem.
NVIDIA’s AI Winning Streak is Good News For Web3
NVIDIA’s net income surged 769% from last year due to AI chip sales but how can Web3 get a piece of this pie?
BlockheadBlockhead
This divergence between cryptocurrencies and AI-themed tokens can further be attributed to the growing interest in sector's innovation. Investors are increasingly looking at AI tokens as a new frontier, offering growth opportunities that blue-chip cryptocurrencies currently lack.
Additionally, as traditional cryptocurrencies face regulatory scrutiny and market saturation, investors are seeking new and innovative opportunities such as AI. The success of these tokens suggests that this rally is not just a short-term hype but could signal a more sustained interest in AI-driven cryptocurrencies.
BlackRock, in partnership with Securitize, has launched the USD Institutional Digital Liquidity Fund (BUIDL). This innovative offering aims to provide qualified investors an opportunity to earn US dollar yields by leveraging blockchain technology.
The fund’s debut took notice when a $100 million transaction involving USDC stablecoin was executed on the Ethereum network. As a result, BlackRock’s Ethereum address became a magnet for meme coins and NFTs.
BlackRock Now Holds Meme CoinsBlackRock introduced BUIDL, offering qualified investors a channel to earn returns on their US dollars via blockchain. This venture marks a significant departure from traditional investment mechanisms. Indeed, it promises to redefine the financial system.
“This is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients,” Robert Mitchnick, BlackRock’s Head of Digital Assets, said.
The strategic maneuver into the crypto market was underscored by a notable transaction where $100 million in USDC. Presumably, the funds serve as the financial bedrock for BUIDL.
The crypto community’s response to BlackRock’s initiative was swift and vivid. Indeed, the fund’s Ethereum wallet, distinguished by its address 0x13e003a57432062e4EdA204F687bE80139AD622f, became a magnet for meme coins and NFTs airdrops. Among these digital assets, four meme coins have stood out:
DETF Token (DETF), with 250,000 tokens valued at $15,385.66, Realio Network (RIO), comprising 10,000 tokens worth around $13,800.10, unshETHing_Token (USH), totaling 500,000 tokens, estimated at $12,749.20, and Shina Inu (SHI), amounting to 9,197,214,541 tokens worth $9,165.50. Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
BlackRock Crypto Holdings. Source: EtherScanAs BlackRock embraces a new era of investment, combining traditional finance’s rigor with blockchain technology’s dynamism, the decision to hold or sell these meme coins still awaits.
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Bitcoin’s (BTC) breakout above $65,000 could lead to ‘exceptionally high’ chances for a wider crypto rally in Q4 2024, according to Markus Thielen, head of research at 10x Research.
Sustained Bitcoin Rally Could Spark FOMO In Altcoins In a recent report, Thielen outlined several factors that could set the stage for a crypto rally in the last quarter of 2024. According to the report, further upside for the crypto markets could be on the cards due to two key factors.
First, the acceleration in stablecoin minting signals rising interest among investors and traders in re-entering the crypto market.
In the weeks following the July 31 Federal Open Market Committee (FOMC) meeting, nearly $10 billion worth of stablecoins were issued, boosting market liquidity and even eclipsing Bitcoin exchange-traded fund (ETF) inflows.
The report states:
Circle, which typically caters to more regulated institutions, has accounted for a disproportionate 40% of recent stablecoin inflows, signaling increased allocation from larger market players. Unlike USDT minting on Tron, typically associated with capital preservation, USDC minting may indicate a rise in DeFi activity. Year-to-date, stablecoin inflows have reached $35 billion, pushing the total value of outstanding stablecoins to $160 billion.
Thielen emphasizes Bitcoin’s recent breakout above $65,000, stating that it could rapidly move toward the psychologically important $70,000 price level before it attempts to print a new all-time-high (ATH) value.
Another metric suggesting a potential altcoin rally later this year is the declining Bitcoin dominance (BTC.D) following the September FOMC meeting. BTC.D’s decline coincides with rising Ethereum (ETH) network gas fees, likely driven by increased altcoin activity on the smart contract blockchain.
The chart below shows the rise in Ethereum gas fees, surging from $1.89 million on August 13 to consistently hovering above $7 million since September 22.
Source: DefiLlama.com The report adds that assuming the US Federal Reserve (Fed) continues to cut interest rates, high-beta altcoins could become increasingly attractive to crypto traders.
Encouraging Cryptocurrency Trends In South Korea, China The report highlights South Korea’s crypto trading activity as a factor strengthening the altcoin trend. Daily trading volume in the country now floats around $2 billion, with altcoins dominating trading activities ahead of BTC.
Notably, Shiba Inu (SHIB) has reclaimed the first position in trading volume in South Korea, indicating enhanced speculation and paving the way for a potential altcoin-dominated market in Q4.
Finally, Thielen highlights that Chinese over-the-counter (OTC) brokers have reported regular quarterly inflows of roughly $20 billion over the last six quarters, totaling $120 billion.
As reported recently, the Chinese central bank reduced its reserve requirement ratio (RRR) by 50 basis points to inject liquidity into the market, which could fuel a parabolic rally in digital asset prices later this year.
The report concludes by forecasting that Bitcoin’s next target will be $70,000 within two weeks, with a potential new ATH by late October. BTC trades at $66,298 at press time, up 1.4% in the past 24 hours.
Bitcoin looks to reclaim $70,000 on the daily chart | Source: BTCUSDT on TradingView.com Featured Image from Unsplash.com, Charts from DefiLlama.com and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Sign Up for Our Newsletter! For updates and exclusive offers enter your email.
Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.
When Bitcoin began gaining prominence, few bodies were as concerned as the United States’ Securities and Exchange Commission [SEC]. A currency that is not tethered to a single person or entity, operating on something that cannot be shut down, and plied by a technology that is immutable, irreversible and transparent, it was the perfect problem for regulators.
From being touted as the currency of the Dark Web, to having derivatives contracts in its name being traded on the CBOE and CME, the regulatory journey of Bitcoin has been like no other. One would think regulators have eased their concerns with cryptocurrencies, but things were just getting started.
ICO: Initial Coin Onslaught Regulators were not immediately taken aback by the 2017-price surge. Instead, they remained on their toes and began a severe crackdown on the digital assets market.
In 2019, many crypto-entrepreneurs began registering their issuances as “tokens” and hence, escaped the regulatory hassle that would follow a security registration, which was when the SEC began to take a closer look. Stephanie Avakian, the SEC’s Co-director of Enforcement, said in a statement following one such case,
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities…we continue to be on the lookout for violations of the federal securities laws with respect to digital assets.”
Some were genuine cases, however, there were multiple cases of deliberate manipulation. Take the case of Maksim Zaslaviky, who raised money for two separate projects, “RECoin” and “Diamond,” tokens allegedly backed by real estate and diamonds. Zaslaviky pleaded guilty to the charge of conspiracy to commit securities fraud and argued that laws surrounding digital currencies were “unconstitutionally vague.”
Jay Clayton, the SEC’s Chairman, made it clear that the SEC will not budge on the definition of a “security.” Months after clarifying that all ICOs are securities and “if it’s a security, we’re regulating it,” Clayton stated,
“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules. If you want to do any IPO with a token, come see us.”
In fact, the ICO fervor got so tense that the SEC created a new role to oversee cryptocurrencies. Valerie Szczepanik, who previously served in the SEC’s cyber-unit, was given the brand new position of Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation. In the SEC’s press release, her role was defined as,
“Ms. Szczepanik will coordinate efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including Initial Coin Offerings and cryptocurrencies.”
SEC’s home turf Due to increased regulatory oversight of the SEC, projects began leaving the US in search of other markets. The main concern for entrepreneurs was the definition of their issuance and if that would lead to the SEC stepping in, especially if they confer a “security” tag. Robert Greene, a former member of the Chamber of Digital Commerce’s Token Alliance, told Longhash,
“The SEC’s regulatory posture has certainly driven projects seeking to conduct an open digital token offering to locate outside of the United States.”
Some projects went a step further. BitTorrent, which saw its early-2019 token sale finish in 15 minutes and generated $7.1 billion, restricted US residents from taking part, owing to increased regulatory scrutiny.
The ICO craze didn’t continue to 2019, particularly in the US. As seen in the chart below, the number of projects from January 2018 to November 2019 almost dropped to 0.
Token Problem The setting in 2018 was vastly different from the one in 2019. ICOs were on a decline, moving to the premise of Initial Exchange Offerings [IEO] where internal governance of partnered exchanges come into play, rather than external regulation. The SEC’s focus hence waned from nabbing ICO criminals to defining a “token.”
Even though issuances present different regulatory cases, they’re unified by a common theme – the SEC is concerned not with the tag “security” or “token,” but the underlying means of fundraising and its purpose, said Chainalysis’ Chief Technical Counsel, Michael Moiser.
In a joint statement, the three most important financial regulatory bodies of the United States – the SEC, the Commodity Futures Trading Commission [CFTC], and the Financial Crimes Enforcement Network [FinCEN] reiterated this principle,
“As such, regardless of the label or terminology that market participants may use, or the level or type of technology employed, it isthe facts and circumstances underlying an asset, activity or service, including its economic reality and use (whether intended or organically developed or repurposed),that determines the general categorization of an asset.”
Four token issuances which caught the SEC’s attention and set the stage for regulation were – Block.one, Telegram, Kik, and Blockstack.
Block.one’s EOS
A previous piece covering Block.one’s regulatory issues can be found here.
Block.one was fined $24 million by the SEC for its EOS token sale in 2017-2018. The Brendan Blumer-led company clarified that the fine pertained to ERC-20 tokens issued on the Ethereum blockchain which are “no longer in circulation or traded.”
Stephen McKeon, Associate professor of finance at the University of Oregon and former Chief Strategy Officer at Security Token Academy, told AMBCrypto that this is an issue of “transitional securities,” based on when the token sale occurred and when the fine was imposed. He stated,
“The settlement could affirm the viewpoint that a network’s token should always be offered as a security during an initial raise, but a future sale of that asset might later be deemed to fall outside of securities laws once the asset’s network is “sufficiently decentralized.”
In relation to the Howey Test, once a network is “sufficiently decentralised,” it would not satisfy two of the determining factors and hence, “what was once a security is no longer treated that way by the SEC,” clarified McKeon.
Like the case of EOS, cryptocurrencies can essentially fall out of the “security” definition if it “evolves,” according to the SEC’s Director of Corporation Finance, Bill Hinman. Clayton seconded the ‘Hinman doctrine’ in a letter to cryptocurrency advocacy firm, Coincentre, stating,
“A digital asset may be offered and sold initially as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset later is offered and sold in such a way that it will no longer meet that definition.”
Telegram’s GRAM
The SEC halted Telegram’s GRAM token sale less than a month before its opening. Telegram told investors that discussions with the federal agency had been ongoing for eighteen months. Yet on 11 October, the SEC filed an emergency action against the platform for “conducting an alleged unregistered, ongoing digital token offering in the U.S.”
Steven Peikin, Co-director of the SEC’s Division of Enforcement, stated,
“Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”
Moiser said that the case of Telegram directly ties to the SEC, CFTC and FinCEN’s joint statement [issued on the same day as the Telegram complaint], and is based on ‘function, not label.’ Next, the coming together of messaging and token sales is a case in its own regard, and hence, the SEC took the extra measure. Moiser added,
“The messaging app-to-crypto token space is an important one to watch, for fast adoption through existing networks, as well as natural synchronicity with privacy-oriented users.”
Telegram’s use as a covert-messaging device was also a concern. The Chainalysis CTO added that the messaging application came in for far more “scrutiny” owing to its alleged use by “nefarious actors.” The privacy messaging platform is the “number one source for terrorist organizations online,” according to Steven Stalinsky, Executive Director of the Middle Eastern Media Research Institute [MEMRI], a think-tank that released a 253-page report on how terror-outfits’ use of GRAM could be a “security threat.”
Moiser was surprised that Telegram, with its deep pockets and ability to put forth a strong legal team, could not, at the very least, avoid a “temporary restraining order.” He stated,
“Given their resources, knowledge of the publicly stated illicit finance concerns and ability to work through these issues in advance with regulators before market actions, the impact on investors from them not doing so makes this important in an unfortunate way.”
Kik’s KIN
In 2017, Kik, another lesser-known messaging platform, issued a token sale for their crypto Kin, raising $55 million from US investors in the process. Kin’s sale commenced during a period when the messaging service saw little use. The same was attested in the SEC’s June 2019 filing.
The crux of SEC’s complaint follows previous cases, stating that Kik “sold the tokens to U.S. investors without registering their offer.” The complaint was further divided into two parts – the value and the promotion. The value at the time of the complaint was “about half of the value that public investors paid in the offering.” Secondly, the SEC alleged that Kin was marketed as an “investment opportunity.”
Kik further told investors that a “profit” could be expected from their investment, which, according to the Chief of Enforcement in the Cyber Unit division of the SEC, Robert A. Cohen, satisfies the Howey Test. He stated,
“Future profits based on the efforts of others is a hallmark of a securities offering that must comply with the federal securities laws.”
Months after the complaint, Kik hit back, stating that the regulator has made a consistent effort to “twist the facts” by “misrepresenting the documents and testimony” gathered. Kik demanded a Jury trial and detailed 200 points of clarification against the SEC’s initial complaint.
The tussle got so heated that FT called it the “acid test for whether certain digital tokens count as securities.” It was hence, one of the most pivotal regulatory cases of 2019.
Blockstack’s STX
In July 2019, Blockstack saw its token offering – Stack [STX], approved by the SEC under Regulation-A. This was the first case of token issuances that was approved by the regulator. An alternative to an IPO, Regulation A is based on two tiers. Tier 1 pertains to offerings up to $20 million within a 12-month window, while Tier 2 has a ceiling of $50 million over the same period.
The case of Blockstack’s approval was hailed as being historical for token issuances under the purview of the SEC. The National Law board stated,
“The SEC’s decision to qualify Blockstack’s offering circular represents a milestone for Blockstack, as well as the blockchain industry as a whole. It is a key step down what may be a viable pathway for companies to raise capital to develop open, cryptographically secured networks powered by digital assets.”
Kraken’s Steven Ehrlich, in a piece for Forbes, stated that Blockstack’s approval was important for three reasons. The $28 million offering will be widespread between retail and institutional investors. Blockstack is ahead on development, having over 170 applications operating on its blockchain. Being over half a decade old, Blockstack belongs to the ‘old-guard’ of crypto-companies and serves as a “good barometer to assess the industry’s progress as a whole.”
With the cases of Kik and Telegram happening before and after Blockstack’s approval, the SEC took a more nuanced view with the blockchain company, compared to the messaging giants. Blockstack’s fundraising could be a “path to SEC-approved IPO-type fundraising with a crypto-token,” stated Moiser. He added,
“While many noted the $2mm that Blockstack spent to achieve this, it sets a precedent and blueprint that can be replicated on the shoulders of that capital investment.”
Lowering of the Iron-Fist
Token issuances were the most important regulatory decisions that the SEC had to make this year, and their approach from 2018 to 2019 has evolved. While in 2018, retail fever was pushing projects towards ICOs, the basket was spoiled by a few bad apples that used the method of raising funds for nefarious reasons, which rightly ushered scrutiny.
Moving on from the iron-fist decisions, the SEC immediately came out and stated that the ‘tag’ is secondary to ‘activity’ and ‘means.’ Four token security decisions dominated the sphere, with the messaging giants getting the short-end of the stick, more so due to other reasons surrounding their issuances, rather than the method itself.
For Kik, it was the financial situation and Kin’s drop in valuation, while for Telegram, it was the platform’s reported use by terror-elements. The regulatory decision for Block.one underlined the case for a more nuanced approach to token regulations, which looked at the lifetime of a token. Blockstack’s case also spelled out the alternative to IPO-means towards securing an SEC green light for crypto-fundraising.
All-in-all, it can be stated that the SEC is looking at the complete picture of token issuance, issuer, network, means, and amount before regulations are meted out.
Welcome, once again, to your week in crypto. Granted, this may read like my week in crypto, but, as a faithful reader of Decrypt (you are, aren’t you?), some of the stories you’ve read may well be the ones I’ve written. So let’s make this our week in crypto.
And what a week we’ve had: Telegram battled the SEC; hackers exploited a DeFi loophole to net nearly $1 million; and Cristiano Ronaldo’s ended up on the blockchain.
Cristiano Ronaldo goes on the blockchainDue to a strange contortion of the cosmos, beloved footballer Cristiano Ronaldo has ended up on the blockchain. Back of the net; goal!; score!; off-side! Choose your favorite soccer-related pun, but don’t let it distract you from the truth: Ronaldo is on the block, and he’s here to stay.
To be more precise, his likeness has been uploaded onto Sorare, a fantasy football game that’s based on the blockchain, due to a licensing agreement with his soccer club, Juventus FC. The premise is smart: buy a Cristiano Ronaldo card, or win one in a pack, and you’ll have one of only 111 in existence. That’s because the card is a non-fungible token, or NFT, which means it can’t be duplicated or replicated.
Sure, you can copy-paste Ronaldo’s image into another file, and tokenize that, but it’s not the same. If it’s not Sorare-branded—and in today’s super-sized-extra-patty-no-cheese hyper-capitalist economy, that’s what matters—it’s not legitimate. Sorare hopes that, if their fantasy football game takes off, then the value of rare tokenized representations of soccer players will rise. Based on Ethereum, the tokens could be used elsewhere, even as collateral to secure DeFi loans.
Hackers stole nearly $1 million using flash loans on DeFiThis week, a hacker has exploited decentralized finance software tools to net $645,000. Another hack last week used the same modus operandi to grab $350,000. That means that the exploit has caused the system to lose around $1 million.
Hackers used “flash loans” to take money from DeFi programs. Here’s how Decrypt described the incident: “A clever set of instructions—all executed in one big transaction—enabled the trader to leverage current weaknesses in the DeFi ecosystem for their own gain. By using several decentralized financial tools, and a small dose of price manipulation, they were able to take home a lot of Ethereum.” I couldn’t have said it better myself.
In fact, so big and clever were the hackers, that they caused bZx to shut down their system temporarily while they sort out the issue. One PR flack told Decrypt he saw the bZx team at a stall at ETH Denver. Following the hack, its booth was empty.
Don’t shoot the messengerTelegram, the operators of the 300 million-strong messenger app, this week defended itself in a court case with the SEC from allegations that the $1.7 billion token sale for its upcoming blockchain network, the Telegram Open Network, constituted an unregistered securities sale.
The U.S. District Court for the Southern District of New York, "reserved"—meaning the judge, Judge Kevin Castel, will be issuing a written ruling before April 30. The timing matters: Due to a peculiarity in the purchase agreements Telegram issued for Grams, investors could be entitled to claim their money back if the network doesn’t launch by April 30.
A bunch of companies, like Polkadot, Dfinity, and Kik, also raised money in SAFT sales, a fundraising mechanism that’s popular among crypto companies. Kik has been battling the SEC for its cryptocurrency, Kin, for roughly the same thing, since June. The court case near bankrupted Kik, which also ran a messenger app with a similar number of users to Telegram. Kik laid off the majority of its workers, was bought by another company that introduced ads into its app, and split from Kin.
Yankun Guo, a lawyer who set up her own practice in Chicago to help early-stage startups, told Decrypt that Judge Castel has to weigh up the implications of impeding Telegram’s operations versus allowing the token sale to continue, she said, “which could signal to other companies that their activities are legal and potentially allowing illegal activity to occur.”
That’s because, lawyers told Decrypt, the counsel for both sides is well equipped, and the project is large enough that it’s likely both sides will battle it until a court ruling is made. The SEC has settled other cases; indeed, this week it forced crypto project Enigma to return funds raised in a $45 million ICO to investors. But if the SEC and Telegram don’t settle, the judge would rule and the case would set a legal precedent, and potentially even result in new legislation being passed. All this would affect the future of token sales, crypto exchanges, and venture capitalists.
On the outcome of the Telegram hearing, Guo said, “The fact that Judge Castel had granted an emergency restraining order signals that he believes the SEC position has merit and is likely to succeed.”
John Berry, a partner at Munger Tolles & Olson LLP, told Decrypt that Judge Castel’s decision was purely to sustain the status quo. “He's got to issue his ruling on a thorny issue,” he said, but added that the longer Judge Castel delays his ruling, the more likely it is he’ll rule in favor of Telegram.
In this case, the worn-out journalistic cliché applies: if Judge Castel issues his ruling too late, for investors, and Telegram, only time will tell.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
Delegated proof-of-stake (DPOS) is a consensus mechanism in which coinholders stake their coins with large node operators (aka delegates, witnesses, or block producers). Instead of mining, coinholders elect delegates to create blocks and provide computing power. This is less energy-intensive than proof-of-work schemes, and allows much higher transaction throughput than other blockchains.
DPOS was created by Dan Larimer, who introduced the system via Bitshares, Steemit, and EOS. Many other platforms also use DPOS as well, including Lisk, TRON, Tezos, and ARK.
But although DPOS has become popular, it has also attracted plenty of controversy from critics who say it’s too centralized. Is that a real issue? Let’s take a deeper look.
How Many Node Operators Does DPOS Give Power To? The most basic concern comes from the fact that most DPOS-based blockchains put power into the hands of just a few delegates. EOS, for example, has just 21 active delegates (or “block producers”) at any time. However, other blockchains have more delegates. Here are the numbers at a glance:
Number of delegated block producers for various DPOS chains. Tezos stands out because it uses a variant of DPOS called liquid proof-of-stake. The number of delegates (or “bakers”) who are active on Tezos is always in flux. In practice, Tezos has had more than 400 bakers at times, and about 100-150 are active each day—but the protocol can support even more bakers if needed.
Additionally, some blockchains use a “hierarchical” variant of DPOS, in which different parts of its blockchain network serve different roles. Vite, for example, has just 25 snapshot block producers at the top of its hierarchy. However, it can also support an unlimited number of consensus groups, which provides greater decentralization.
How Widely Distributed Is Coinholder Voting? Now let’s look at how coinholders vote for delegates. In theory, some delegates might accumulate a lot of votes, but in practice, coinholders tend to vote more or less equally for each active block producer. For example, take EOS and TRON, where each delegate gets roughly equal support from coinholders:
Vote distribution for EOS and TRON, based on data from TronScan and EOSAuthority. These charts only show votes for active delegates. If we were to include votes for standby delegates (aka candidates), voting would be even more widely distributed. That doesn’t mean that power would be more widely distributed, though – just that other delegates might gain power at different times.
Advertisement
Is Bitcoin More Centralized Than DPOS? Bitcoin doesn’t rely on DPOS. It relies on mining, which is usually considered far less centralized than DPOS because each miner competes individually to create blocks. Bitcoin does not have large delegates, but miners usually combine their hash power in mining pools, which do gather power.
In fact, mining pools have made Bitcoin mining very centralized at times. By some measures, Bitcoin is more centralized than EOS and other DPOS-based blockchains. Currently, about 12 pools dominate Bitcoin mining.
Compare the distribution of Bitcoin hashpower among mining pools, against how EOS users have distributed their votes among block producers:
Bitcoin mining hashrates by pool, based on data from Blockchain.com, vs votes for EOS block producers. Since 51% of hashing power can exert control over a network, it would only take four mining pools to collaborate in order to reverse a BTC transaction. Mining and DPOS work in different ways, so this is a very reductionist (but widely circulated) portrait of power consolidation.
However, delegates and mining pools do have one thing in common: both types of entities wield influence. Users can, in either case, express their approval or disapproval — either by moving between pools, or by voting for other delegates.
Is Proof-of-Stake More Decentralized Than DPOS? Proof-of-stake (POS) is an older consensus model that allows coinholders to stake their own holdings by locking up funds in a contract. Unlike DPOS, this is not done to support a delegate – instead, individual stakers are chosen to create new blocks. This selection process is usually weighted in favor of those with more at stake and/or the age of their stake.
Proof-of-stake and DPOS both rely on economic incentives and penalties to prevent power from centralizing around wealthy entities. However, this is hard to visualize, and there are two areas in which staked wealth could be concentrated: staking pools and exchange-based custodial staking.
That said, Emurgo has discussed the ways in which Cardano could prevent centralization among stake pools, and SFOX has speculated about the implications of exchange-based staking for Ethereum 2.0. In any case, proof-of-stake allows users to allocate their funds to large entities, but it still requires precautions against centralization.
Is the Lightning Network More Centralized Than DPOS? One of the main advantages of DPOS is the fact that it provides excellent scalability and high transaction throughput. DPOS can achieve this because it relies on just a few high-powered nodes rather than many small nodes. EOS can handle about 3000 transactions per second, whereas Bitcoin can handle only seven.
Bitcoin and other non-DPOS blockchains typically achieve greater transaction speeds through second-layer scaling solutions like the Lightning Network. Although Lightning is quite unlike DPOS, it does have a tendency toward centralization. One Lightning node operator, LNBig, provides about 2/3 of Lightning’s channel capacity:
Lightning Network channel capacities, based on data from 1ml.com At first glance, Lightning would seem to be far more centralized than anything we’ve looked at, and naturally, many people have observed this.
However, it’s not clear if LNBig’s dominance actually puts Lightning at risk of an attack, as Lightning nodes don’t work like DPOS nodes – instead, they simply provide payment channels.
Why Does It Matter? Decentralization matters for two reasons (and possibly more). If a blockchain or related system becomes centralized over time, it is possible for those who have gained power within that system to attack or undermine it. Second, if a system is centralized by design, the operators of that system can exert control over users.
However, it’s important to consider that resource centralization doesn’t translate directly to centralized power. Every system is designed to allocate power to node operators in a different way, which means that direct comparisons can be misleading. Simplified charts are popular, but they present an incomplete picture of reality.
So what’s the verdict? Well, on one hand, delegated proof-of-stake blockchains are somewhat more decentralized than their critics give them credit for. On the other hand, DPOS chains are still quite centralized in an absolute sense. Since DPOS is still quite young, it’s hard to say how it will be seen in the future — and the next few years could be critical.
Disclosure: This article was edited by Mike Dalton. For more information on how we create and review content, see our Editorial Policy.
