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The Future of Money and the Role of Crypto in It

The Future of Money and the Role of Crypto in It

John Martin 8 min read
Money has changed human society, allowing commercial transactions to take place even between geographical regions at a considerable distance from each other. It makes it possible to move wealth and resources in space and time. For much of human history, however, it has also been the subject of greed and waste. Now money awaits a change that can transform banking, finance, and even the structure of society. Most notably, the era of physical, or cash, money is coming to an end even in low- and middle-income countries; the era of digital currencies is coming. In this text, we’ll discuss different financial future predictions, the role of crypto, and its future. Cryptocurrencies vs Fiat Money Many financiers note that cryptocurrencies can set new financial models — more improved, simplified, and modern. Among the advantages of cryptocurrencies, they note anonymity, speed, lower costs of transactions, cross-border transfers that are not limited by barriers, full ownership of assets, lack of regulation by the state, and payment of taxes. Fiat currency is distinguished by: the mandatory presence of an issue center, which has exclusive rights to issue money (for the dollar it is the Federal Reserve Service); unconditional inflation: the money supply increases and its purchasing power decreases over a long period; the constant increase in operating costs associated with the maintenance of large amounts of cash; increased transaction costs. Cryptocurrencies on blockchain technologies, such as Bitcoin, are fundamentally different: the absence of an emission center: it is programmatically limited when launching cryptocurrency (in particular, there cannot be more than 21 million bitcoins); belonging to a person: cryptocurrency belongs to a specific cryptocurrency account or wallet , while the purchasing properties of the banknote can be changed by the issuer, and the paper money itself is generally withdrawn or prohibited for circulation; reverse inflation model: the more often cryptocurrency is used, the higher its value, as the demand for coins increases while maintaining the volume of currency; lower transaction costs: according to some estimates for Visa, this is $2, and for Bitcoin — $0.35 in medium-term operations.  These differences demonstrate the advantages of cryptocurrencies over fiat money. But for there to be a global transition from centralized to decentralized finance , and for the blockchain to turn from a candidate technology into a new system of work for the world economy, two key conditions must be met. Cryptocurrency should receive the status of a state currency. There are already such precedents: in 2021, in El Salvador , Bitcoin was adopted as a means of payment in the country. Cryptocurrency should begin to conclude interstate trade contracts. The finance industry of the future is at the very beginning of this path. And although the number of transactions over the past few years has noticeably increased, so far cryptocurrency is more of an investment tool with a very weak change function. The real volume of goods and services that are sold and bought for cryptocurrency is still insignificant. We are on the verge of a new era of non-dollar trade. Whether cryptocurrencies can compete for the place of the dollar with other fiat currencies largely depends on large-scale entrepreneurial projects in the field of blockchain. The Problem of Regulating Cryptocurrencies in the World It is very difficult for governments and central banks to regulate digital decentralized systems, which were created to avoid state control and were specifically designed to exclude public authorities and banks from their monetary circulation and confirmation of transactions and rights. It is even more difficult to develop a common approach to cryptocurrencies for countries with different economic and political weights. In the world's largest economies, the assets of traditional banking systems amount to tens of trillions of dollars and significantly exceed the size of the global cryptocurrency market, and in developing countries, the money supply in the national definition is several times or even several tens of times less than the volume of the cryptocurrency market.  Decentralized forms of finance (DeFi) are gaining popularity in developed countries, while peer-to-peer (P2P) platforms are becoming increasingly common in emerging markets. Some central banks see cryptocurrencies as a threat to the financial sovereignty of their countries and risks to traditional banking systems and citizens, including the risks of fraud, theft , and hacking, so they propose a complete ban on them. Other regulators believe that the crypto market is enough to only monitor so that it does not interfere with innovation now, but subsequently apply existing legislation and regulations to this sector of "digital assets." The problem of regulating the crypto market has become a global one, so the coordination of the efforts of regulators to create rules and procedures is beginning to take on global financial management institutions, such as the International Monetary Fund, the Basel Committee on Banking Supervision, the Financial Action Task Force (FATF), the International Organization of the Securities Commission (IOSCO). It is planned that the zone of control of regulators will include operations to exchange traditional fiat currencies for cryptocurrencies, crypto exchanges, intermediaries that provide access to cryptocurrencies and services, as well as any economic entities that accept payments both in traditional currencies and in cryptocurrency.  Payment systems will be standardized and transaction storage and clearing service providers will be certified. Cryptocurrency mining will fall under separate control in several countries, and in others, it will be placed under a ban. CBDC as Transition Before the complete replacement of fiat currencies with cryptocurrencies, the global financial industry will undergo another intermediate stage related to the release and circulation of CBDC, many experts say. CBDC (Central Bank Digital Currency) is the digital currency of central banks. Those currencies are issued centrally and retain all the advantages of the classic fiat model, but they have cheaper transactions, 24-hour access to liquidity for banks, and the possibility of integrating smart contracts into the country's economy. In addition, with the help of this tool, the state retains control over the monetary sphere and can stimulate payment for goods in the national cryptocurrency, increasing its turnover. Since 2017, many countries have been experimenting with CBDC: such cases (in one stage or another — from the pilot to the working project) have been implemented in Thailand, Hong Kong, China, the UAE, Singapore, Canada, Great Britain, France, Cambodia, Uruguay, Russia, El Salvador, and the Bahamas. NFT for a New Level of Financial Confidence Replacing fiat money with cryptocurrency may have another interesting effect — the financial industry reaching a new level of confidence. We can take, as an example, programs based on NFT technologies. When buying NFT, the investor does not just acquire the right to a discount: he can resell it, thereby gaining liquidity. At the same time, one participant in the transaction transfers funds to the other party, as a rule, without any contracts and intermediaries represented by banks. New principles arise — full responsibility for their transactions and the presence of a certain moral component, trust, in contrast to the traditional financial environment, impersonal and mechanized. As a result, the crypto market will gradually fill the established economic culture with new content. Bitcoin Future According to a Chainalysis study, the volume of bitcoins in investors' wallets has increased significantly in recent years, and more interestingly, it has significantly exceeded the volume of coins in traders' "speculative" wallets. About 77% of the "mined" bitcoins (which are not classified as lost) have not changed their current address for five years or longer. According to a Bitstamp survey, 72% of institutional and 73.1% of individual investors plan to increase their investments in crypto assets in the next five years. About 16% of Americans and 10% of Europeans own cryptocurrencies. Among the well-known institutional investors are Grayscale Investments, Square, Microstrategy, Tesla, Meitu, Massmality, etc. Interest in cryptocurrencies is also shown by banks, in particular, Goldman Sachs and Morgan Stanley. Digital coins received special investor attention precisely during the Covid-19 pandemic. In particular, analysts at JP Morgan believe that investors' rejection of gold in favor of Bitcoin during 2021 was associated with an increase in inflationary trends in the world. In such conditions, some even began to call cryptocurrencies a "haven" for investment.  However, it is quite possible that after the drop in the price of Bitcoin by 75% and a three-fold reduction in the capitalization of the crypto asset market, confidence in the safety of this "harbor" will decrease. Conclusion: Is Crypto the Future of Money? In 2018, the capitalization of the cryptocurrency market decreased by more than eight times — to $102 billion. But this did not prevent it from reaching a record $2.9 trillion in November 2021. Therefore, there is no unambiguous answer to the question "what future do cryptocurrencies have?" It all depends on their ability to gain the confidence of settlement participants and investors, effectively performing the functions of money. It is possible that still lies ahead. The cryptocurrency market and ecosystem are dynamically developing, the interest and awareness of individual and institutional investors are growing, and the transparency of issuers and intermediaries is increasing. All this will continue to contribute to the deepening of the market, and a decrease in the manipulability and sensitivity of cryptocurrencies to situational factors and news. In such conditions, over time, the exchange rate fluctuations of cryptocurrencies will decrease. The development of technologies will help solve problems of scalability, the vulnerability of blockchain networks to hacker attacks, irreversibility, and non-environmental transactions. Therefore, probably, the convenience, speed, and security of calculations with cryptocurrencies will continue to gradually improve. Thanks to the formation of the legislative field, comprehensive regulations, and supervision, cryptocurrencies will receive a clear legal status, and market participants will gain the right to legally conduct business and protect their interests. All this will likely contribute to the spread of transactions made using cryptocurrencies, and their share in public savings and investment portfolios will increase. And accordingly, the associated risks will grow.
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Large Public Companies Investing in Bitcoin and Other Crypto-Assets

Large Public Companies Investing in Bitcoin and Other Crypto-Assets

John Martin 9 min read
At the end of September 2022, Bitcoin began to grow again. In total, since the beginning of the year, the cryptocurrency market has grown by 272%. Now it has a record capitalization of $2.84 trillion. Despite such significant successes in this market, many investors are afraid to enter it directly: Bitcoin is too volatile. A couple of years ago, companies did not think about buying cryptocurrencies — especially large investors and corporations. Someone was afraid to invest because of the unstable exchange rate. Others simply were not sure that the crypto market was ready. But recently there have been important changes. Bitcoin increased market capitalization and received acceptance at the level of many states and businesses. Now it is called digital gold. By the way, it recaptures the market from precious metals: companies come to understand that the BTC gives greater protection against inflation compared to gold. Who's buying Bitcoin right now? In addition to private investors, large firms came here — some of them are traded on the exchange or manage hedge funds. However, if you still want to profit from the explosive growth of cryptocurrencies — there are opportunities for this. We have compiled a list of companies that are directly or indirectly associated with the cryptocurrency market and will tell how cryptocurrencies helped these companies increase their income and bypass competitors. Since the beginning of this year, forty of the largest corporations in the world have already invested $6 billion in blockchain companies. At the same time, the most active investor was the parent structure of Google — Alphabet, which invested $1.5 billion in such projects, taking part in four rounds of financing at once. What is the reason for such a high interest in crypto projects among large investors? According to Blockdata research, Alphabet has invested in several companies at once since the beginning of the year: Fireblocks, Flow Dapper Labs, Voltage, and Digital Currency Group. In second place among the giants of investment was BlackRock — it invested $1.2 billion in blockchain companies. And in third place was the American investment bank Morgan Stanley with an amount of $1.1 billion. Samsung also actively invested in crypto projects: almost $1 billion immediately in 13 companies. NFT Projects As the Blockdata research results showed, projects focused on working with non-replaceable tokens (NFT) were in the greatest demand among investors. Of the total number of projects that attracted large investors, they accounted for almost a third of all funds provided. Almost all large technology companies, one at a time, have already declared that they are beginning to develop their own metaverse companies, invest in them, or create software or hardware for them. Investors are analyzing what should be invested into now, and which areas will still wait. And even the latest major mergers and acquisitions did not circumvent this topic: the beginning of 2022 was marked by the purchase by Microsoft of Activision Blizzard, one of the largest and oldest computer game developers. The key moment in the history of the metaverse as a full-fledged investment and business idea can be considered the high-profile renaming by Mark Zuckerberg of his company Facebook to Meta Platforms, which occurred in October 2021. It was then that the general public got acquainted with the term "metaverse." Now the online game in virtual reality Horizon Worlds from Meta is available to users in the USA and Canada. Among the most popular projects for investing in NFT, there were startups that are engaged in the development of gaming applications, as well as services for storing cryptocurrencies and financial market infrastructure. What is the reason for such a high interest of large investors in crypto projects? MicroStrategy: The Path from Total Criticism to Trust MicroStrategy became the first public company to risk investing in Bitcoin. They transferred more than $5.8 billion of their capital to digital gold. The company owns a total of 124,391 BTC — which is about 0.7% of the world's bitcoin reserves. Interestingly, the company's CEO Michael Saylor was once a big opponent of digital currencies . Saylor believes that cryptocurrencies are important for diversifying the capital of any large company. Now he is a member of the Bitcoin Mining Council, a group that is engaged in improving environmental friendliness in the extraction of the first cryptocurrency. Against the background of the course correction, MicroStrategy continues to actively purchase bitcoins. Sailor explains that his company's strategy is a long-term investment, so they don't care about time fluctuations. Tesla: Condemns Bitcoins, but Still Buys Tesla's decision to buy bitcoins caused shock and attracted great attention to cryptocurrency. In addition, such ideas were accompanied by contradictory tweets from Elon Musk . Now the Tesla accounts hold 42,902 BTC, which is $2.04 billion in total. This is the second most profitable investment in Bitcoin from a public company. Last year, Tesla sold 10% of its crypto assets. The reason, according to Musk, is simple — he wanted to check the liquidity of Bitcoin as an alternative to cash. At one time, Tesla accepted payments in BTC. But later they abandoned this idea, allegedly because of the impact of mining on the environment. Nevertheless, Musk will not refuse his Bitcoin reserves. In an interview, the billionaire called cryptocurrencies our financial future. He believes that the BTC is ideal for long-term investments. But at the same time, dogecoin is preferable for daily payments. Musk recently added this meme currency to pay at the Tesla store. Galaxy Digital: Million Dollar Confidence Canadian Galaxy Digital Holdings invests in crypto and blockchain companies. It recently bought the BitGo brand, which develops blockchain solutions for storing digital assets. Galaxy shares have grown by 798.92% since September 2020, not least due to the growth of the cryptocurrency exchange rate. Galaxy Digital Holdings is one of the largest players in the institutional investment market. It is headed by charismatic CEO Michael Novogratz. He does not stop defending digital assets — he advertises them in interviews and numerous Twitter battles. The businessman believes that investments in Bitcoin are universal — they will suit both individuals and businesses. By the way, recently Novograts offered a bet to the most ardent Bitcoin opponent Pitter Schiff. The businessman puts $1 million on the fact that by the end of the year BTC will cost more than $35 000. And now a little about the company itself. Galaxy Digital stores 16,400 BTC in its accounts. Their total value now is a little more than $779 million. Since the first purchases, the price of BTC has increased markedly, thanks to this, Galaxy Digital has become one of the leaders in growth among public companies. Now the brand offers its customers several crypto funds, and Bitcoin is not the only interest of the company. They own the Ethereum Fund and the DeFi Index Fund. In addition, last year they filed with the SEC to open the first spot ETF in bitcoins. But the regulator has not yet approved these documents. Voyager Digital: Canadian Success Story and Fears Voyager Digital is a brokerage firm that has been operating since 1993. It has a subsidiary called Voyager Digital Holdings, which collaborates with cryptocurrency brokers. The company offers more than 60 digital assets and has opened branches around the world. The company owns 12,260 BTC worth $585 million. Thanks to the crypto-brokerage business in May 2021, they increased their quarterly income 16 times compared to the previous period. True, recently Voyager Digital has changed its tone. In their latest report to the tax service, they expressed fear about the instability of the BTC course. The company expects that "a significant drop in the price of Bitcoin will harm the results of Voyager Digital." However, they are still in fourth place in terms of capital in the BTC and do not plan to sell their crypto assets. Block: Bitcoin as Part of the Philosophy of Business and Life Like Tesla, Block (formerly Square) is one of the first crypto institutional investors. In October 2020, they invested $50 million in cryptocurrency. And a month later — another $170 million. Since then, it has become clear that Chief Executive Officer Jack Dorsey has become a loyal fan of the BTC, he even has his Bitcoin. Now Block regularly buys BTC and makes them part of its business model. Their treasury has 8,207 coins worth $381 million. At the same time, they spent $220 million on purchases. So thanks to the strengthening of the ROI rate of such investments is 1.7. Last year, Jack Dorsey resigned as CEO of Twitter to fully devote time to his payment company. So we will expect even more opportunities from the Cash App application. By the way, a new option has recently appeared in Cash App — a user can give shares or bitcoins to a loved one, and at the same time, the recipient does not have to have a crypto wallet . And the minimum gift amount is only $1. Block has a lot of plans for the future. They are preparing to release a hardware wallet, their DeFi platform, and even mining installations. The company mustn't think only about its income. They founded the Bitcoin Endowment Foundation, which trusts projects from the field of crypto education. Block advocates for the mining industry, advises companies, and helps them with technical documentation. Fintech Companies Let's start with the obvious. Cryptocurrency was created for blockchain transactions. By adding shares of fintech companies that conduct such transactions to your portfolio, you can make good money on cryptocurrency without buying it. The ranks of such companies are in a hurry to replenish the giants. For example, the veteran of digital payments PayPal announced in October 2020 that it was introducing payment using digital assets. The same can be said about the classic payment systems Visa and Mastercard. Silvergate Capital is a less obvious company that profits from cryptocurrency transactions. This is a digital intermediary bank between crypto exchanges and institutional investors. Since September 2020, Silvergate stock prices have increased by 1,256%. Note the payment system Mogo, which allows you to pay for purchases and receive loans, as well as trade cryptocurrency. Of the latest company news, sellers began to give bitcoins in the form of an incentive program. At the same time, Mogo quotes increased from September 2020 by 244%. Summary A lot of large public companies trust in cryptocurrencies enough to invest in them. Cryptocurrencies give many options for attachments. You can buy crypto exchange shares and receive income from the exchange, or purchase shares of PayPal or Square. In this case, income is generated from the use of cryptocurrencies as a means of payment. Investors who are important for reliability can buy shares of miners or equipment manufacturers. And those who like to take risks may be interested in the shares of companies investing in various crypto assets and technologies.
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Crypto Mixers and the Story of Tornado Cash

Crypto Mixers and the Story of Tornado Cash

Ruth Kise 8 min read
All transactions in the network of Bitcoin and many other cryptocurrencies are recorded in the blockchain, so this system is as transparent and public as possible. But at the same time, such transparency is a significant drawback for cryptocurrency holders who want to remain completely anonymous. Bitcoin addresses (to a certain extent) can be tracked and associated with real personalities. Thus, investors risk disclosing their data and tracking their account transaction logs. To solve this problem, mixers were developed. In this article, we will consider the concept of a cryptocurrency mixer, the principles of its work, why it is needed, as well as its vulnerabilities through the example of Tornado Cash . What Is a Crypto Mixer? A crypto mixer or bitcoin tumbler is a service created to increase the privacy of transactions in cryptocurrency networks. When the user makes a transaction through a coin blender, it is divided into tens or even hundreds of small transactions and mixed with the transactions of other users. This is designed to completely hide the original tracking and confuse all subsequent ones as much as possible. In addition, custom logs are automatically and permanently deleted within 24 hours of successful blending. Types of Crypto Mixers All mixers fall into two categories: Centralized. They are managed by a specific person or company. Such mixers are of high quality, and have an excellent design, but alas — the user is forced to be depending on their honesty and the severity of the performance of obligations. They charge large commissions to run the cryptocurrency, roughly 3%. And you have to take into account the chance that the resource can save operation logs for technical purposes. This increases the risk of hacking and leaking transaction data to third parties. That is, there is still a risk to anonymity. Decentralized or peer-to-peer. That is, transactions are mixed without the participation of an intermediary and use only special smart contracts . They guarantee the privacy of users, do not record data, and their creators cannot escape with assets. But technically, they are more difficult to use, especially for beginners. One of the most important conditions for the operation of peer-to-peer crypto blenders is a large number of customers. How the Mixing of Coins and Its Features Take Place The pace of coin mixing depends on several factors, such as the chosen cryptocurrency, for example, Bitcoin, and the amount of the transaction. After you leave the order, your crypto will head to the pool and wait for confirmation from the miners. And then go to the indicated wallets in a cleaned form. The number of bitcoin addresses and the number of transactions should be taken into account. This is 5 – 6 translations. To further increase anonymity, mixers use deferred transaction technology. Almost all mixers, in order to maintain privacy, delete logs after a day, and also allow you to delete them by yourself. The bitcoin address generated by the blender usually works for 24 hours and is applicable only for transfers within the service. Usually, bitcoin mixers prohibit accepting crypto at the previously used address. And of course, KYC verification is not required here. When conducting a transaction, the service gives out various important information: a letter of guarantee, confirming codes, addresses of wallets. It is important here not to accidentally close the tabs with important information, since they will be useful for obtaining currency for other wallets. Already cleared money will go into them. Be careful if the coin number is below the lower threshold for a mixer: it can go to developers as a donation. Why Should I Mix Coins Many people believe that crypto mixers are needed only to launder illegally received money. Of course, there is some truth in this. But there are other reasons, for example, hiding their income from other people. For instance, bitcoin is a cool tool for online purchases and p2p transactions, with which you can make trade transactions bypassing the banking system. But again, all transactions are stored on the blockchain. It turns out that if someone knows the address of your wallet, they can track the movement of the funds. Where is the promised anonymity? Such transparency seems outrageous to many. So bitcoin mixers are a good way to hide data on your wallet. No one will be able to watch your beats.  Talking about legality, the legislation of many countries has not yet reached the cryptocurrency regulation, and even more other projects related to it. Therefore, the use of mixers is now legal there. Crypto Tumbling Cons The story of privacy at the expense of mixers is far from ideal. In 2022, decryption of mixers is possible, yes. Experts have already calculated the likelihood of decrypting the bitcoin tumbler. It is about 95%, and the decoding itself became possible thanks to the analysis of clustering. Two projects Bitfury and Chainalysis have developed algorithms to identify related bitcoin addresses with high accuracy. Of course, this exposes mixer users to certain danger. These algorithms can calculate a person, and besides, demonstrate to the public who uses the coin blender. And another significant problem is a large number of scammers in this sector. In addition to the fact that there are many fake pages and spoof sites, there is a risk that the crypto recipient will get "dirty" coins, as a result of mixing the sender's funds with illegal bitcoins of other customers.  It is the movement of illegal money that attracts the attention of the government. Feeling vulnerable, the state cannot but follow the action in the cryptocurrency market and anyway takes measures to resolve and counteract crime. What Happened to Tornado Cash One of these steps was the imposition of sanctions on the Tornado Cash mixer. On August 8, the US authorities imposed sanctions on a smart contract for a popular privacy application, which launched a real chain reaction and led to the arrest of one of the developers in the Netherlands. TC was considered the safest mixer on the Ethereum blockchain, which gained its popularity among users. What to hide, it was used by both hackers from North Korea and very respected and public personalities. Unlike many other mixers, in terms of communication with the outside world, Tornado Cash was a fairly open and public protocol that positioned itself as a tool for ensuring financial privacy. The founders and developers of TC were also well known in the crypto community . Unfortunately or not, the lack of legislation regarding crypto mixers does not mean that they have some kind of immunity and can exist without regard to regulators. According to the Financial Crimes Enforcement Network of US (FinCEN), mixers are money transmitters under US law and have a number of duties, including in the AML/KYC area. Moreover, there are a number of precedents: October 2020: FinCEN imposed a $60 million fine on the founder and operator of Helix and Coin Ninja mixers. April 2021: The US Department of Justice arrested a 32-year-old citizen of Russia and Sweden, who was the creator of one of the first bitcoin mixers. May 2022: OFAC has sanctioned Blender.io, a TC-like bitcoin mixer. Taking this into account, it is difficult to call the imposition of sanctions on Tornado Cash very unexpected. So the U.S. Department of the Treasury added the TC service and the associated crypto wallet addresses to the sanctions list, justifying its decision by the fact that the platform was used to launder illegal crypto assets. What Was Next Immediately after the publication on the OFAC website, a press release on sanctions was followed by a cascade of events and outbreaks from where they were not expected. First, the site tornado.cash was blocked. Then the open TC repository on GitHub was deleted. The same fate awaited the developers of TC: GitHub blocked their accounts. Then the Discord server and forum on Discourse fell. By and large, at the moment all traces of Tornado Cash on the Internet were erased. The reaction of individual crypto protocols was just surprising, namely recalling that the decentralized Internet and sovereign money are not so decentralized and sovereign. The first to add fuel to the fire was Circle, the operator of the most popular stablecoin USDC , freezing $75,000 in stables. The crypto exchange dYdX did the same, even though the company has always shunned American jurisdiction, and positioned itself as outside its perimeter. Next, MakerDAO got excited. Recalling that his reserve of 50% consists of USDC, one of the founders of MakerDAO, Rune, spoke up about the worsening regulatory climate — and among other things, offered to prepare for a break from the dollar. If so, the guys will have to convert USDC $3.5 billion into ETH . Perhaps it was this news that cheered up this week's ETH course. Examples of Circle and dYdX were followed by other DeFi platforms, which started to add blocked addresses to their blacklists. But the most shocking was the news of August 12 about the arrest of one of the developers of Tornado Cash. After all, it's one thing to impose sanctions on a protocol that, to be cunning, was really used by North Korean hackers, but another thing is to arrest a developer who created this protocol without any criminal intent. A smart contract is a binary code that is stored on the Ethereum blockchain. Anyone who knows the smart contract address can interact with its functions by initiating transactions. The TC smart contract was fully autonomous. There was not a single person who could stop or interrupt its work. In turn, sanctions are usually imposed on criminals or political enemies. This time, sanctions were imposed on a neutral technology or tool. To Sum Up Undoubtedly crypto blenders are a useful tool that advocates the idea of anonymity. However, nothing stands still, and even as it would seem, new technologies become vulnerable to scammers. It is also worth remembering that in addition to honest crypto users, the market is attractive to criminal structures. This means that you are at risk of being with "dirty" crypto on your hands or having a run-in with the law. One way or another, be vigilant.
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Various Kinds of Crypto Hacks and Why They Happen

Various Kinds of Crypto Hacks and Why They Happen

Ruth Kise 7 min read
Let’s remind ourselves that the cryptocurrency financial system is still under development and is far from ideal. Many of the DeFi pros turn into cons that scammers are always happy to use. So recently, there is more and more news like 'platform hacked in a flash-loan attack' without explanation or with technical explanations. In the article, we will try to clarify this type of attack and other ways how blockchain can be hacked. Flash-Loan Attack Although the topic of flash loans is still developing, a number of large-scale attacks have already been carried out. Because flash loans have no limits on amounts and require no collateral, millions of dollars in ETH can be borrowed to make a significant profit. To better understand the process, let's consider the very phenomenon of a flash loan, the principles of its operation, and its usage. Flash Loan is a tool by which DeFi users can borrow a large amount of funds in digital assets without collateral for a period of time. A loan without collateral means that members do not have to provide proof of income and other liabilities. Such a risk-free loan works somewhat like this: the lender lends you as much money as you like, but only for one particular transaction. By the end of this transaction, you must return to the lender as much as you have borrowed. If you are unable to do so, the transaction will be automatically canceled! In other words, a loan is atomic: if you cannot repay it, everything goes back, as if there was no loan. The most common method of using flash loans for profit is arbitration. This is a process that uses the difference in asset prices in two different markets. Another method of making a profit is a "wash trade". This type of trading involves making purchases and selling an asset to increase trading volume. In traditional markets, such a procedure is prohibited. Flash Loan attacks can be successful if an attacker can manipulate the market to a certain extent. These attacks are carried out by arbitrating pumps and dumps and/or manipulating oracles . They are cheap to execute since attackers do not take on monetary obligations. Typically, these attacks are complex, multi-step processes executed by highly experienced DeFi users. In many cases, they involve depleting liquidity pools that ordinary users have invested in, causing many people to incur significant losses. Next, let's look at several more common attacks on the blockchain. 51% Attack   The most commonly known threat to the blockchain network. The name of the attack is an analogy with a controlling stake in the business sphere. The problem lies in the Proof-of-Work protocol, which is used by projects such as Bitcoin , Litecoin , Monero , and others. Its essence is that several miners with significant hashrate can get a "controlling stake" in the network, that is, they will have more than a half of all the network’s hashrate. Such conditions allow a hacker to carry out a double-spending attack, in which he can spend a larger amount than he has in his wallet. As a result, the blockchain is seized, and all the participants' funds are transferred to the ownership of hackers. In large networks, the chance of such an attack is several times lower due to the large number of participants and expensive equipment. Finney Hack The first recipient of the bitcoin transaction was Hal Finney and he was the first to talk about launching bitcoin. He was also the first to suggest the possibility of a double attack on the network. For this reason, the attack was named Finney Hack or Finney Attack in his honor. Finney Hack is a type of double-spending attack, which can happen when a person accepts an unconfirmed transaction online. Finney explained that the miner could generate a block in which he would include a transaction from address A to another address B, where both addresses belong to him. You will then make another payment in the same currency by sending from address A to address C (which belongs to another user). If the specified user accepts a transaction without confirmations from the network, a scammer can free the block in which his original transaction is included. This invalidates the transaction committed by the trader, allowing the attacker to double the cost. Race Attack  Another type of double consumption. Inexperienced and hasty traders can give the goods, even if the transfer failed, since there was a transaction attempt. Some sellers use "express payments" without the necessary confirmation for small amounts. In the wallet of the receiving party, such a transaction will be "in processing," and the addressee will have "not confirmed." A fraudster can convert such a transfer: send the transaction both to the seller's node and to his address on the network, broadcasting to the blockchain only the second one. The last transaction will be considered valid during the check, and the first transfer will be invalid. To prevent such an attack, it is not recommended to accept incoming connections to the node and wait for several transfer confirmations (3 confirmations for the amount from $1000 to $10,000, 6 — from $10,000 to $ million, and for even larger transactions — up to 60 confirmations). Eclipse Attack A special type of cyber attack, when a hacker forms an artificial area near one node to control his actions. The attacker redirects outgoing and incoming data from the target node to its own, separating the deceived user from the real network. The isolation of the target node allows confirming illegal transactions on its behalf and cut it off from messages with neighboring nodes — the hacker does not need to hack the entire network, it is limited to a small set of nodes. To block the node, a botnet or a phantom network is used to fill the node with IP addresses for synchronization on the next connection. The consequences of an eclipse attack are usually double-spending attacks, which have already been mentioned above, as well as a miner power failure when a hacked user spends electricity and time solving problems of artificial blocks that do not exist in the real blockchain network. Cryptographic Vulnerability Attacks Cybersecurity experts say as one that the most vulnerable place in any system is a person and scammers use this fact. Another consequence of the human factor is called errors in the code, having discovered which, an attacker can break the entire network. As an example, on Ethereum , a fraudster discovered a security loophole in the source code and assumed about $50 million in the coins, which amounted to about 30% of the total coin volume at the time. Because of the incident, the community split into two groups. The first, led by the creator of Ether, was outraged by the theft, offering to make a hard fork and return the coins to the legal holders. Their opponents were convinced that the real owner of the coins was now a hacker ("The code is the law"). As a result, the community came to an agreement to create a soft fork.  Social Engineering Crypto: Phishing These techniques rely on human vulnerabilities, not the technical prowess of a potential hacker. It is used to gain (unauthorized) access to sensitive data, cryptocurrency wallets or accounts, or to induce victims to download malware onto computers and networks to enact further damage. Such techniques include phishing, baiting, quid pro quo attacks, pretexting, and tailgating. Phishing is one of the most popular of them. It is used to steal private keys , card numbers, bank accounts and other confidential data. The simplest version of cryptocurrency phishing is the good old spam mailings of emails allegedly sent by this or that web service. In this case, letters are sent on behalf of cryptocurrency wallet sites or exchanges.  Such fake messages look noticeably more detailed and neatly written than phishing messages on average. For example, this may be a security alert that says that recently someone tried to log into your account from such and such and such a browser — follow the link to check if everything is in order. The user himself could configure and accept the reception of such messages on the wallet website — and he will not notice anything unexpected or even more wrong. Conclusion As you can see, the crypto market is full of danger. In the article, we described only a few types of potential fraud. Creators are constantly working to improve security protocols. But while the system is not ideal, it is worth remembering the possible risks and not taking the bait. 
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10 Craziest Stories in Crypto History

10 Craziest Stories in Crypto History

Ruth Kise 6 min read
The cryptocurrency market is one of the most attractive economic areas. This most dynamic industry to date has experienced many ups and downs in its rather brief years of existence. In this article, we will talk about the most remarkable events in the history of crypto, people who got rich on it (and who were one step away from it), as well as projects that may seem strange. They Paid Attention in Time Eric Finman The youngest cryptocurrency millionaire in the world. Now he is 19 years old and has 403 BTC , which at the current exchange rate is $2.8 million. He bought bitcoins when he was only 12 years old. His grandmother gave him $1,000, which he was supposed to set aside for college, but he chose the path of a cryptocurrency investor. As time has shown, he made the right choice. The Winklevoss Brothers These are the very brothers who sued Mark Zuckerberg for $65 million for stealing their idea and creating Facebook on his own. They took $11 million of the total amount of compensation and bought bitcoins on them. At the time of purchase, the coin was trading at $120 apiece. That is, they purchased approximately 91,666 BTC, at the current rate it is 641 million dollars. There are quite a few people who have made an impressive fortune on cryptocurrencies. Therefore, in order not to stretch the already large material, let us move on to those poor people who were one step away from wealth, but lost it. Right Up There Bitcoin Pizza On May 22, 2010, the software developer under the nickname Laszlo bought two of the most expensive pizzas ever sold. At that time, the cost of bitcoins was nominal, and the first miners simply did not know where to put their "funny money". And Laszlo on one of the bitcoin forums said that he would pay 10 thousand coins to whoever delivered him two pizzas. At that time, the deal looked completely ordinary, at that rate Laszlo did not overpay for his fateful dinner, but already in August of that year, two pizzas cost him $600. As of today, Laszlo has bought two pizzas for $70 million. Every year on May 22, Bitcoin pizza day is "celebrated." Mark Frauenfelder  US journalist Mark Frauenfelder lost access to a wallet that stored bitcoins purchased in early 2016 for three thousand dollars, a little more than seven bitcoins in total. Observing that the dollar equivalent of bitcoins is growing immeasurably, he happily purchased the Trezor hardware wallet. The journalist wrote the 24-word password on a piece of paper and placed a desk in a secluded drawer. On duty, Mark had to fly to Japan and took his wife with him. Being a suspicious person, he decided to put the words of access to the wallet under the pillow of his daughter in case something happens to the spouses, then let the bitcoins go to the children. Upon returning home, he did not find the cherished words under his daughter's pillow and realized that the houses were cleaned, and the note was thrown into the trash. Mark, no matter how he tried, could not remember the password. It was possible to make a combination of cherished words after six months, and during this time three thousand dollars turned into thirty (!). By the way, 20% of existing bitcoins are stored in wallets whose owners do not have access to them. According to estimates by the analytical company Chainalysis, which studies blockchain technology, there are now more than 18.5 million bitcoins in the world. However, 20% of them for a total of $140 billion are on lost or blocked wallets.  Weird Crypto Projects The phenomenon of cryptocurrencies is enabling people to make money or raise funds for just about everything. Several cryptocurrencies in the market have strange and fancy names, but were created for a cause and are still in circulation in the market. However, others just show how obsessed we have become with cryptocurrencies. Dogecoin A virtual currency based around the hugely popular internet meme of a Shiba Inu . Originally made to mock the alternative currencies that hoped to compete with Bitcoin, Dogecoin is now one of the biggest around. Its market cap recently broke through $2bn as investors seek out the next crypto-trend. Part of Dogecoin’s success is due to its vast and vibrant community , members of which created the Dogecoin Foundation, a nonprofit organization dedicated to using Dogecoin to fund goodwill projects. In 2014, the Foundation sent the Jamaican bobsled team to the Winter Olympics. It also funded the development of two clean water wells in east Kenya via a Twitter campaign. Bongger and Potcoin Those are cryptocurrencies promoting the cannabis revolution. These two are social projects that aid humanity in various aspects as a currency and act as a funding asset for the weed industry. Bongger also provides support for the medical, pharmaceutical, and basic scientific research on cannabis and its uses. Potcoin is not the only marijuana-themed currency. However, it gained notoriety due to its sponsorship deal with basketball star and unlikely North Korean diplomat Dennis Rodman. Kitties as Currency Such is the hype surrounding cryptocurrencies that anything built on blockchain technology is instantly a big deal. Take, for example, CryptoKitties, collectible digital artworks of cats and one of the first NFTs . The sort of digital version of Pokémon that can only be purchased with internet money. Users spend Ethereum in order to “breed” new kitties. Each kitty is unique and some devoted CryptoKitties players are willing to pay huge sums to own the best ones. The highest price paid currently stands at $117,700.  While a little weird, CryptoKitties is hugely popular. Over $12m has swapped wallets in kitty sales. Likewise, the game is now reportedly responsible for 11 percent of all traffic on the Ethereum Blockchain according to Motherboard. Fastfood Crypto! Is it reasonable to wait for your burger or chicken till a bitcoin transaction will be confirmed? No matter what you think, it seems cryptocurrency is a big deal in the fast-food world, and restaurants are keen to keep up with the latest trends. While McDonald’s has been tipped to start accepting cryptocurrency payments by as early as 2019, KFC has hopped on the bitcoin bandwagon. KFC offered up a limited edition Bitcoin Bucket, containing 10 pieces of chicken, fries, a medium side, gravy and two dips. All for a reasonable price of 20 CAD. KFC saw the viral bargain bucket sell out. At present, it’s unclear whether they will run the promotion again, but the fast-food chain might be convinced by its bitcoin balance (once the payments clear)… Living Crypto Life In addition to the striking stories of ups and downs, there are a lot of examples of when people are ready to fully involve cryptocurrency in their lives. For some, this is a great path to enrichment, while others are attracted by the cryptocurrency as a new stage in everyday life on the way to the formation of the Metaverse. Life on Bitcoin To date, there are an awful lot of merchants accepting BTC and cryptos as payment, so, the feat is far from impossible. But that wasn’t the case in 2013.  By then, the newlywed couple Beccy and Austin Craig decided to run a bold experiment: live and travel solely with Bitcoin as a payment method for 90 days. They called it “Life on Bitcoin”. The journey started from Utah and across the United States, and they also flew overseas to Stockholm, Berlin, and Singapore. Of course, they had difficulties in those months. But they did it nicely, and, two years later, they launched a documentary to prove this crazy crypto story. The Policeman Tony Vaughn, a police officer from the Kentucky provincial town of Vicco, was asked by the United States to pay his salary to the BTC. In 2013! When few knew about bitcoin at all. What can be said about paying with it? After conducting their own research, the city commission nevertheless agreed to such conditions. All his salary began to be converted into bitcoins and automatically transferred to a wallet. This was probably the first time that a public servant was paid in crypto. The average Police Officer salary in Kentucky is around $54,000 per year, and the Bitcoin price was over $1,000 then. So, any crypto savings that Vaughn kept has been revalued by around 5,300% so far. Not bad. Conclusion To sum up, the cryptocurrency world embodies the formula "new technologies + big money". By itself, this can drive many crazy. Until recently, cryptocurrency seemed to be something unimaginable. But humanity doesn't stand still. So keep your head cool and be hands-on, perhaps you will enter the top stories of crypto.
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CBDC vs Cryptocurrency: Are CBDCs a Threat to Crypto?

CBDC vs Cryptocurrency: Are CBDCs a Threat to Crypto?

June Katz 6 min read
The growth of the cryptocurrency market fuels the interest of society and business in the industry and does not allow states to stay on the sidelines. Dozens of countries are developing their digital currencies , and some of them will be launched as early as 2022. In this article, we will help you understand what digital currencies issued by the state are and how their appearance will affect citizens. What is CBDC The CBDC, or central bank digital currency, is a government-issued and government-backed digital analog of fiat money. CBDCs are created using blockchain technology, just like other cryptocurrencies. However, the digital assets of the Central Bank are not the usual cryptocurrency due to the centralized nature of the issue. The CBDC exchange rate is stable and equal to the exchange rate of the state currency in a ratio of 1:1. This is the principle of a stablecoin — a digital analog of the state currency, whose rate is tied to it and secured by it. For example, USDC or USDT are stablecoins tied to the value of USD . The main difference between those coins and CBDC is that the central bank of the country acts as the CBDC’s issuing center, and not a private company or a community of people. Two Ways of Financial Evolution The emergence of CBDC is designed to change the banking systems of all countries and strengthen the role of central banks. There are two points of view on what these changes will be. Supporters of state regulation of crypto believe that all crypto assets, except for the digital currency of the state, should be banned. This is the way that China's central bank cryptocurrency goes. Operations with CBDC will be transparent and will make it possible to track the history of each transaction and each participant in the chain . Banks will only have to work with companies and citizens: to serve customers and improve their products and services. The burden on financial monitoring will disappear. In a sense, the banks even want it. The second option for CBDC development is recognition and regulation. In this model, digital coins and crypto will be equated to shares, considered a digital value or a payment asset. In this case, the cryptocurrency market will develop systematically, and CBDC will be a full participant in the crypto world. This is Singapore's way. How CBDC Works From the point of view of the approach to the issue, the Bank for International Settlements identifies two basic concepts of digital currencies of central banks (combinations are possible): Account-­based (balanced): according to this concept, the creation of a Central securities exchange takes place by opening personalized accounts in the central bank for all economic agents. The features of this concept are the growth of the regulator's costs for maintaining accounts and the risks of disintermediation (reducing the role) of traditional financial intermediaries. Indeed, for commercial banks, the consequences of the emergence of such a retail CBDC can be revolutionary. For example, if individuals and legal entities have the opportunity to receive and store funds in accounts with the central bank, this may provoke a massive outflow of funds from commercial banks. Some European commercial banks are already raising the question of how, in such a system, the central bank will provide funds to banks for lending to the economy. Value token-based concept assumes a digital cash issue (token) distributed through commercial banks, replacing cash. In this case, the central bank relieves itself of a significant part of the costs and risks associated with checking and servicing customers, providing them with additional services, as well as creating and operating technologies. Tokens in such an ecosystem will effectively represent digital versions of cash. However, commercial banks fear that the launch of such digital money may simplify the entry into the financial sphere for large technology companies, which will increase competition in an already low-margin and competitive market, further reducing the industry's revenues. The form in which the Central Securities Exchange will be launched in a particular country can vary greatly from state to state, depending on the specific tasks assigned to the regulator.  When and Where Will the First CBDC Appear If you do not take into account the Sand Dollar issued by the central bank of the Bahamas, no major country in the world has yet reached the stage of launching its own CBDC. As of November 2021, more than 50 countries of the world were developing CBDC. China has come closest to real use, where the digital yuan has been tested for about a year. South Korea, Canada, France, the United Arab Emirates, South Africa, Nigeria, Ghana, and Uruguay are at the pilot testing stage. There is another approach to using crypto as the official currency of the state. This is an example of El Salvador , which in September 2021 recognized bitcoin as a means of payment on a par with the US dollar. Why Do States Need CBDC? One of the main tasks of the Central Bank's digital currencies is the security and transparency of financial transactions. Firstly, the technology underlying CBDC is the most modern means of controlling cash flows. Secondly, central banks strive not to be late for the trend and monitor each other. It is impossible to ignore the development of cryptocurrencies, therefore, to avoid a new round of money flowing into the gray zone, the state needs its digital currency. As they say, if you can't stop them — lead them. For many years, some states have been struggling with the outflow of money to offshore and other jurisdictions that are more favorable from the point of view of taxes and doing business. Previously, this happened with cash, then with non-cash, and now the process has almost entirely switched to cryptocurrencies. There is a threat that people and companies that create stablecoins will control too many processes and resources and will become stronger than some states. Therefore, CBDC for states is also a tool to combat gray financial flows. Are We Moving to Digital Currency? Most likely, a link between CBDC, stablecoins, and crypto will exist and their exchange for cash will be possible for quite a long time. But it is possible that in some countries, cash and digital values, except for their own CBDC, will remain in the gray zone and will be banned. For example, in China. Criticism Writer Dominic Frisby, author of the book "Bitcoin: the Future of Money?", believes that the main disadvantage of CBDC is its programmable capabilities. While fiat currency presupposes certain freedom, digital currency completely excludes it. Governments will also have direct access to users' wallets , which will make it easy to collect taxes or fines — you just need to change a couple of lines of code to do this. The programmable functions of money can be used against certain undesirable persons or as a weapon in an economic war. Integration with social rating systems opens up even wider opportunities for punishments or rewards. Your bank knows almost everything about your spending model, knows where you live, who you work for, and which store you prefer to buy groceries at on Mondays. He is well aware of your financial situation and state of health. Knows what devices you use, and in some cases even has biometric data. All this information opens up great opportunities for analysis, including behavioral analysis. However, information about consumers is of interest not only to the private sector but also to the state. Moreover, central banks are among the first to queue for user data. In the current realities, the introduction of national digital currencies by several countries is a matter of "when", not "if". As with fiat currencies, their strength will be determined by the strength and influence of the central banks behind the issue. A former employee of the NSA and the CIA, Edward Snowden, considers the tool "the newest danger hanging over society."  In a world where CBDCs are a priority means of settlement, including cross-border ones, there will be no room for privacy. After all, a tool that is positioned as a way to increase financial inclusion, in the end, can only tighten the noose around the neck of economic freedom.
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Why Crypto Market Is Down Today: Global Reasons

Why Crypto Market Is Down Today: Global Reasons

June Katz 6 min read
The bitcoin exchange rate has experienced a lot of falls in recent years, but in the end, it has recovered every time and reached new heights. In the last six months, almost all cryptocurrencies have significantly dropped in price. At the end of last month, after a prolonged fall, the first cryptocurrency began to show some positive dynamics, gaining a foothold at $ 32 thousand. Against the background of the rising inflation rate in the United States (almost 9% per year), bitcoin rapidly flew down and reached $ 27 thousand. Then analysts said that with an increase in inflation, the BTC rate would inevitably fall. On Monday, June 13, the bitcoin exchange rate fell to a price of $ 25 thousand, and on June 19, bitcoin collapsed to $18,707 (according to the Binance exchange). The first cryptocurrency pulled other coins along with it. Ethereum has fallen in price and now costs about $ 1.1 thousand, Solana has lost as much as 18.2% in a week, and the exchange rate has dropped to $ 37 (at the time of 06/21/12) Reasons The collapse of the cryptocurrency market will not surprise anyone. Even though the cost of bitcoin and Ethereum has increased dramatically over the past decade, fluctuations in this market have become familiar. Among the reasons for the fall of the cryptocurrency, experts name three — of which Bloomberg considers inflation statistics in the United States to be the main reason: in June, the US Federal Bureau of Statistics reported that the main consumer price index (CPI) increased by 8.6%. Inflation excluding food products increased by 6%. This is a record since 1981, and the statistics turned out to be worse than analysts' expectations, which assumed an increase of 8.3% for the CPI and 5.9% for core inflation. The second reason is the tightening of monetary policy in different countries. First of all, the US Federal Reserve, which in May raised the base rate (according to which the Central Bank issues loans to commercial banks) by 50 basis points, to 0.75 – 1%. This is the strongest increase since 2000. Because of this, people prefer to invest in assets less risky than cryptocurrency. The cryptocurrency market is also affected by the collapse of the TerraUSD ( UST ) stablecoin and related proceedings, which undermined investors' faith in such projects, Bloomberg writes. After it lost its binding to the US dollar, the Luna cryptocurrency used for its release collapsed by 76.4%. Luna Foundation Guard, which is behind TerraUSD, spent $2.9 billion in bitcoins to protect the binding of the token to the dollar — almost all of its reserves. On June 10, Bloomberg, citing sources, reported that the US Securities and Exchange Commission had launched an investigation into Terraform Labs and its algorithmic stablecoin TerraUSD. The regulator will examine whether the platform violated the rules for protecting its investors. Shares of Crypto Companies Also Fell The negative dynamics of the cryptocurrency affected the shares of industry-related companies on the stock market. In particular, the value of Coinbase Global Inc. paper has dropped by 13% since the beginning of the year, Marathon Digital Holdings Inc. — by 24.4%, and Riot Blockchain Inc. — by 21.7%. After spending "hundreds of millions of dollars" on campaigns, sponsorship agreements, and advertising at the Super Bowl, most cryptocurrency firms have reduced marketing costs. This is reported by The Wall Street Journal.  Binance CEO Changpeng Zhao said that crypto winter is the right time to hire new employees and further develop the business. Activity in the sphere has been reduced by Crypto.com and Gemini Trust. The first, after spending $40 million in January, allocated $2.1 million in May for commercials on the eve of the Super Bowl. The second one spent $478,000 last month — eight times less than in November ($3.8 million). Terra Crash The Terra incident is undoubtedly one of the highest-profile events in the history of the crypto industry. So far, no DeFi project has reached such gigantic proportions before its collapse. In March 2021, Terra launched an application called Anchor, which offered profitable deposits, which forced people to buy Terra to then deposit it into their account and get a 20% profit. This attracted a lot of new investors. The dizzying growth of Terra USD (UST) and the popularity of algorithmic stable coins have been a crypto trend for a long time and inspired many developers to create similar projects and reserve crypto funds. However, everything changed in a matter of days: on Wednesday, May 11, Terra USD lost its peg to the US dollar — its price fell below $ 0.23. The LUNA cryptocurrency used to issue the stablecoin has fallen by more than 80%. Some market experts believe that the Terra incident, regardless of the outcome, will have serious consequences for the cryptocurrency market. Blogger Dennis Porter noted that regulators use the collapse of UST as the main argument in favor of total regulation of stablecoins and promotion of CBDC. US Treasury Secretary Janet Yellen said that the unbinding of Terra USD exposed the need to "create a regulatory framework for stablecoins aimed at minimizing volatility." According to experts, the main reason for the "death" of LUNA was the weakening of the binding of the UST stablecoin to the US dollar. It was TerraUSD (UST), according to the creators of Luna, that was supposed to become a "bridge" between tokens and fiat, but in practice, it turned into a disaster. The path to the rebirth of Terra, if at all possible, will be long and thorny. After all, the main problem lies not in the technical component or the mechanism of binding to fiat, but in restoring user trust. Mutual Influence of Markets Bitcoin is increasingly tied to the world market. And, accordingly, it becomes dependent on its fluctuations. The dynamics of bitcoin this year are almost identical to the fluctuations of the US Nasdaq Composite stock indexes, which are dominated by shares of technology companies. The indicator has dropped by 8.3% since the beginning of the year. Sentiment in traditional markets and cryptocurrency markets can mutually influence their dynamics, analysts at the International Monetary Fund (IMF) say. "A sharp decline in bitcoin prices may increase investors' flight from risk and lead to a reduction in investments in stock markets," experts write. Summary The exchange rate is based not only on promises but also on faith in these promises. The more faith the promisee has, the more stable the course. Recently, more and more analysts are predicting a collapse of Bitcoin almost to zero. According to Guggenheim Partners director Scott Meinerd, bitcoin will fall to $8 thousand, bitcoin critic Peter Schiff admits a rate of $10 thousand, and Galaxy Digital founder Mike Novogratz is confident that the "crypt" will fall further. However, such prophecies in no smaller quantities accompanied every protracted decline in the cryptocurrency market which each time regained its position. Against the background of the fall of cryptocurrencies, the founder of the world's largest crypto exchange Binance Changpeng Zhao has repeatedly said that digital money cannot be evaluated by its falls. He wrote: from a historical point of view, "if you bought bitcoin every time the headlines "bitcoin is dead" appear, you would have succeeded." Zhao backed up this statement with the fact that in 2011 bitcoin fell below $ 20, in 2015 — below $200, and in 2017 — below $ 2000. And in 2022, bitcoin fell below $ 20 thousand. Zhao does not doubt that the leading cryptocurrency will begin to rise in price at auction. But it is worth understanding: when exactly bitcoin or ether will go up, no one can predict now.
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How Big Is the 2022 Crypto Crash? A Historical Perspective

How Big Is the 2022 Crypto Crash? A Historical Perspective

Ruth Kise 6 min read
This year started with a significant decline in the cryptocurrency market, which did intensify because of the geopolitical situation. Since the fall of 2021, crypto has been passing through the bear market and this trend continues to this day. And over the past one and a half to two months the main cryptocurrency has collapsed in price by almost 60%. Are Crypto Market Crashes Really Bitcoin Crashes? The correlation between cryptocurrencies has always existed to various extent. Altcoins depend upon Bitcoin because of the formation of primary demand for digital currency around it. Almost half of all coin investments are in BTC . Large investment portfolios include Bitcoin as a core asset. All large exchanges hold the bulk of liquidity in Bitcoin, as the largest volumes of transactions occur in trading pairs with BTC. Although the dominance index has shown steady growth in altcoins investment since 2017, Bitcoin still holds 40% of the entire market. The closest competitor, Ethereum , is 2 times behind it. Thus, when Bitcoin collapsed from $48.2 thousand to $28.9 thousand, it dragged down all the altсoins. Ether is down 52% since January 2022 and now costs $1,800, Solana is down 74% to $45.87, Cardano is down over 64% and costs $0.4909. If you're a newbie, then you might feel like it's a complete collapse of cryptocurrency. And seemingly with a good reason, because such a sharp and long drop in prices was a long time ago. However, the market has already faced crashes more than once. So we will look at the most important cases of bitcoin drops: The Largest Bitcoin Drops to Date It should be mentioned that any drop in prices is associated with their growth, and vice versa: a kind of swing that leaves no investor indifferent. 1: The Rollercoaster of 2011 The very first shock caused an unexpected rise of Bitcoin from $1 to $30 in early 2011. However, this wave of growth was followed by a staggering drop in the asset price in June 2011. During the period from June 8 to 11, the price of BTC fell by almost 50%, reaching $14.65. Such a sharp jump is explained by the sudden increase in the hashrate to unprecedented values. Also, mentions in some mainstream media played their role. On June 19, 2011, the Mt.Gox exchange was hacked , bringing down the price of Bitcoin to $0.01. It affected the accounts of 60 thousand users totaling more than $8.7 million. One week later, trade on Mt.Gox recovered, and the fall in prices after the hack became the largest in the history of Bitcoin. 2: The New Heights of 2013 The next shattering experience awaited investors for two whole years. In 2013, the volatility of major cryptocurrencies set new records. BTC set a new historical high of $1,147. Against the background of general euphoria among crypto investors, the coin did not stay above $1000 for long — very soon a bear trend began, during which the BTC fell to $694. The next time the cryptocurrency was able to overcome resistance again at the level of a thousand dollars only in January 2017. 3: The Final Misadventure for Mt. Gox In February 2014, the Mt.Gox site was hacked again, this time 744 thousand bitcoins were stolen . It is an absolute record and the biggest hack in the trade to date. As a result of the hack, Mt.Gox filed for bankruptcy and closed, creating panic in the bitcoin market. From that time on, the first prolonged fall of Bitcoin began, which is commonly known as the "cryptocurrency winter." 4: The Time When Even Your Grandma Learned About Crypto The end of 2017 is remembered for euphoria due to the achievement of a new peak in the price of Bitcoin. True, in the same month, the value of the main digital asset began to fall rapidly — a week after the formation of the historical maximum on the line of $20.000, BTC dropped to $13.000. 5: The Comedown of 2018 The fall continued into 2018 and marked a new crypto winter. In January, the coin fell to $9,800. The lack of centralized regulation left the question of safety open. In the first nine months of 2018, $927 million worth of cryptocurrencies was stolen from platforms of different countries, according to a CipherTrace report. Also at the beginning of the year, phishing mobile applications of larger exchanges were distributed, which stole customer data.  Great interest in cryptocurrency and the ICO market has led to the emergence of many scam projects. It all ended with the biggest social networks — Facebook, Instagram, Google, Twitter, Snapchat, Baidu, Weibo — rolling out a ban on any ICO ad, no doubt a blow across the industry. So on the 14th of November, BTC cost $6,359, and already on November 25, the rate was $3,729. 6: The Great Expectations (vs Reality) Another memorable crypto drop took place in late 2019. The main topic in the community was legal issues, the struggle of the US Securities and Exchange Commission (SEC) with bitcoin-ETF, and hopes for the launch of the institutional bitcoin service Bakkt.  In September, Bakkt finally launched but did not attract much attention among institutional investors, triggering a drop from $10,036 to $6,657 in just a couple of months. To Sum Up High inflation in the US stock market and general global economic instability were naturally reflected in a decrease in risk interest among investors. In addition to the situational panic against the background of the fall of UST , the tightening of the monetary policy of the FRS and the end of the "bull" trend in the technology sector, which includes cryptocurrencies — the main current reasons for the fall of the market. The current market crash is not the largest in history, although due to large capitalization, absolute numbers are really large. The price of Bitcoin has been able to increase by several hundred to 60 thousand dollars, so you should not worry about short-term calendar cancellations.  On the other hand, there are some coins that have less correlation to BTC and it could be a fine new trend. For example, BNB  with a well-built all-in-one ecosystem and Launchpad. BNB began to actively master one of the largest markets — the American one. As a result, the position of the currency will only strengthen, which makes it extremely promising for investment.  Clearly, the cryptocurrency will deal with all fluctuations — both minor changes during the day and severe monthly collapses.
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Investing in Crypto: Things to Do in a Crypto Winter

Investing in Crypto: Things to Do in a Crypto Winter

June Katz 14 min read
The first crypto winter was registered in 2014–2015 and lasted 427 days. At that time, the bitcoin exchange rate decreased by 87%, which negatively affected altcoin quotes. The situation was repeated in 2017–2018, when the growth of the bitcoin exchange rate, which began in the fall, was replaced by a sharp decline — from 20 thousand dollars per coin to 8 thousand, or even less. For several months now, experts have been speculating about the possible onset of crypto winter. New assumptions appeared almost every week, and the deadlines were constantly pushed back. It looks like it happened after all. However, the market is cyclical — a period of growth is always followed by a fall and vice versa. Any downturn creates enrichment opportunities, so in this article, we will look at the topic of investing in cryptocurrency. I will point out that we are not giving financial advice — we’re just collecting information about the main investment strategies, the main market participants, and patterns that may be useful. Crypto Investment Strategies There are different approaches to making money on investments in digital assets. We offer you to get acquainted with the three most popular strategies. Hodl Hodl is a popular term in the crypto community , which network users employ to denote the purchase of cryptocurrency for its long–term retention. Working under this scheme implies earning on the growth of the asset rate for a long time. For example, investors who purchased 1 bitcoin 6 years ago, as of the time of writing, were able to increase their investments by 17547%. Scalping The term scalping usually means income from short-term changes in the exchange rate of an asset. Most often, the influence of news on the digital asset market is used to make money using the scheme. Here's how it can work: An investor saw that a couple of minutes ago, Tesla published a report stating that the organization invested a large amount in bitcoin. It can be assumed that the news will positively affect the behavior of the cryptocurrency exchange rate. To make money on the market reaction, the investor buys bitcoin. At the moment when the cryptocurrency exchange rate starts to rise, the investor gets the opportunity to sell the asset at a higher price. The difference in the cost of buying and selling will become his profit. Also, for scalping, you can use technical analysis of the behavior of the asset rate according to the schedule. Averaging The essence of the strategy is to purchase an asset for an extended time on a certain day of the week/month (or with other frequency), regardless of the current position of the cryptocurrency. Market participants who choose this strategy believe that this approach allows them to earn money by averaging risks. Staking This term refers to the intentional retention of assets in the account, to organize a source of passive income. In the staking market, you can find offers with high profitability. One of them is available on the ROY Club platform. Within the walls of the site, up to 40% of new coins can be generated monthly on the UMI cryptocurrency staking. At the same time, you can start earning in a few minutes after registering in the system. All the steps that you need to go through to start earning are accompanied by detailed instructions. If necessary, the user will be able to get advice on working in a dialog box on the site. How to Increase the Efficiency of Investments in Cryptocurrency Many investors have their secrets to improving the efficiency of investments in cryptocurrency. Among them, there are several universal tips. Here are some of them: Investments should be diversified. A distributed portfolio of assets reduces the likelihood of losing all investments due to a sudden drop in the exchange rate of one cryptocurrency. There is no need to buy digital assets with the last money. The market can be unpredictable. It is worth investing only what you can afford to lose. Investments need to be planned. It is worth determining in advance how much you are willing to invest in cryptocurrency. Also, experienced market participants are advised to keep records and record all their operations in the market, so that, if necessary, they have information at hand to analyze the effectiveness of solutions. There are different investment strategies for users who want to make money on the movement of the cryptocurrency exchange rate. For those who are not in a hurry, the hodl scheme is suitable. Users who are ready for increased risk for the sake of instant earnings should pay attention to scalping. Those who want to combine the high profitability of different strategies with the security of investments may be interested in staking. Ways to Analyze Digital Assets Technical Analysis Technical analysis is based on historical market data because history develops in a circle and repeats itself. It includes an overview of past pricing trends. Technical analysis aims to identify recurring patterns and make calculated forecasts for the growth or decline of trends. The main assumption here is that prices are not random and they can be foreseen if you look into the past. Although technical analysis performed correctly can be quite useful and effective, it does not always work. In most cases, the success of technical analytics depends on the person conducting the research. That's why some people prefer fundamental analysis of crypto. Fundamental Analysis Fundamental analysis aims to cover a somewhat broader picture compared to technical analysis. It takes into account both qualitative and quantitative factors that can affect the value to understand whether an asset is overvalued or undervalued compared to its current market price. Since there are no public financial statements that can be verified on the cryptocurrency market, it is more difficult to do this type of analysis, especially for beginners. It is necessary to take into account the volume of transactions, user activity, the unique functions of the cryptocurrency, and even some global economic events that can significantly affect the cryptocurrency market. It is better for a beginner to learn how to use both methods. Understanding cryptocurrency fundamentals will help you make smarter decisions, plan your strategy both in the short and long term, and ultimately become a better investor. Choosing the Best Crypto to Invest In Polygon ( MATIC ) This is a level 2 cryptocurrency for Ethereum decentralized application platforms. Polygon is a promising blockchain ecosystem designed to develop infrastructure and help scale the Ethereum network. The Matic Network and the Polygon token also offered a second-level solution — transferring transactions directly on the Ethereum network to another coin platform. This allowed the Matic network to reach a speed of 7,200 transactions per second (TPS). For comparison, the throughput of Ethereum does not exceed 15 transactions per second. In 2021, the network was rebranded — it became known as Polygon. But in addition to the new name, it also has new functions. Now it is a platform for creating interconnected blockchain networks. In other words, with the help of Polygon, everyone can write their blockchain for any purpose. In the future, Polygon will become the basis of web3 networks. Loopring ( LRC ) A promising cryptocurrency of the decentralized exchange of the same name. To make DEX more scalable and reduce the commission, ZK accumulative packages are used. Loopring gives DEX the ability to choose between storing transactions on-chain or off-chain at any given time. This on-chain data availability (OCDA) combined with ring miners and order rings provides greater scalability of DEX. Loopring offline storage provides 16,400 transactions per second (TPS). Chainlink ( LINK ) It is the digital currency of the decentralized Oracle programming network. The goal of Chainlink is to solve the problem of securely connecting smart contracts to real events. Smart contracts are code fragments that embody a given business logic (for example, when to pay interest on loans). Ripple ( XRP ) This promising cryptocurrency project from San Francisco has become a truly global crypto intermediary (bridge currency) used in cross-border settlements. We are talking about multibillion-dollar transactions mainly between financial institutions, corporations, banks, and payment systems of all countries of the world ("payment corridors"). The second advantage of XRP is the phenomenal speed of financial transactions conducted in the Ripple ecosystem. It is more than 10 thousand operations per second (in particular, in Ripple Net the hash rate is at least 50,000 TPS). Cardano ( ADA ) It is a fully decentralized platform operating on the principle of open source. The distinctive features of Cardano are complete anonymity, the absence of restrictions, and other complicating circumstances such as KYC . It was created in 2017 and became one of the first ecosystems operating on the PoS (Proof-of-stake — "proof of ownership") network protocol. It is actively used in the architectonics of smart contracts and Dapps. The recommended investment horizon is from one year. Stellar ( XLM ) This is a promising cryptocurrency that is used in various systems — from gaming platforms to online stores. It was created in 2014. The main feature is the unification of various ecosystems and blockchains. Stellar is a universal medium of exchange with minimal fees for financial transactions. The cooperation of the platform with IBM and MoneyGram International. Criteria for Selecting Promising Blockchain Projects In 2009, Bitcoin was the only cryptocurrency on the market. Today, the number of digital tokens has exceeded 1000. In such an assortment, it is easy to get lost even for experienced investors, not to mention beginners. When choosing the optimal cryptocurrency for long-term investment or earning on exchange rate fluctuations, we were guided by the following criteria: The fame of the project and its reputation; Capitalization size; The number of exchanges on which the selected cryptocurrency is traded; The number of coins in circulation; The volatility of the exchange rate and the dynamics of quotations; Technical data of the network; Social activity. Cryptocurrencies that are actively discussed on forums and in chat rooms have more prospects for growth. Conclusions It is quite possible to be friends with the risks that the volatility of digital assets carries. By carefully monitoring and analyzing all small price movements, experienced traders have learned to extract income from them by buying and selling coins at the right moment. Such a flair comes with practice, but at the same time, it is backed up by knowledge — studying trading tools, helps not only not to go into negative territory, but also to make a profit. Is crypto a good investment? The cryptocurrency market is volatile and unpredictable, and many experts do not recommend it for long-term investment. But bitcoin has been around for more than 10 years — and this is much longer than the same experts predicted. And although we are seeing periodic ups and downs, in the long term, the crypto market is still expected to grow consistently.
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Ethereum Gas Fees: How to Make Sense of Them

Ethereum Gas Fees: How to Make Sense of Them

June Katz 6 min read
Just as bank customers pay a commission for the transfer, so do cryptocurrency users. And if in the case of, for example, Bitcoin , the commission amount is transparent and manageable by users, then Ethereum gas fees for the transfer are calculated in a more complicated way. The reason for this difference in the principle of collecting fees is that Bitcoin was created to conduct transactions between users. Ethereum was created not as a payment system, but as a tool for developing decentralized applications. The main function of Ethereum is different — maintaining the operation of smart contracts which is used not only inside the Ethereum network but also in the DeFi ecosystem. The Ethereum blockchain has limited bandwidth and is not adapted for conducting financial transactions, which is why any complex structures overheat it. Any major interference in the work of Ethereum will raise commissions, whether it is the work of smart contracts or the purchase of assets.  The growth in the number of users of the DeFi market has increased the complexity of the Ethereum system, which has led to an increase in commissions within the network and made them less predictable. How do transactions work on the Ethereum network? When sending a transaction in the Ethereum blockchain, a fee is charged in the form of "Gas", but what happens if you specify an insufficient amount? There are three scenarios for working with Gas. First: there was more gas than it took for the transfer. Then, all unspent gas will return to the sender at the rate at the time of dispatch. Second: there was exactly as much gas as needed. Then the payment will go through without any problems, nothing will be returned to the account. Third: there was not enough gas. Then the transaction is considered unconfirmed and canceled. Immediately after the cancellation, the Ethereum Blockchain will roll itself back to the state before sending, and the spent gas is not returned. Note that the blockchain cancels only changes made by an unconfirmed transaction. What is Ethereum Gas? Gas is a unit of measurement of computing work performed by miners to conduct transactions or support smart contracts of the Ethereum network. Gases were also introduced to stimulate miners: in the case of blockchain networks, the security of the network is directly proportional to its hash rate, that is, the number of miners. This system allows them to receive a commission commensurate with their resource costs, because the more complex the transaction, the more gas is required to complete it. The term gas can mean two things: gas limit and gas price.  Gas price The price of gas can be set by two authorities, depending on who you are dealing with. The first is the Ethereum blockchain itself, which sets the cost of fuel depending on its load. The higher the load, the higher the commission. The second is a smart contract created by a participant of the blockchain that you are paying for. When creating a smart contract, for example, to raise funds for an ICO or IPO, the contract creator sets the cost of commissions. The Gas price is measured in the minimum part of the Ethereum network – Wei. However, in almost all wallets , this parameter is shown in Gwei. Below is the fragmentation of ETH : 1 ETH = 1 000 finnely = 1 000 000 szabo = 1 000 000 000 gwei = 1 000 000 000 000 000 000 wei The three main units of measurement WEI, GWEI, Szabo and Finnely are named after famous people who influenced the formation and development of cryptocurrencies. WEI is dust from ETH, in reality, it is practically not used. The main area of use of WEI is writing code. Execution of one line of code in the Ethereum blockchain costs 1 WEI, it can be a smart contract code or any other operation. GWEI is used to pay the commission. Finney is something like a pocket change , equal to 0.001 Ether, intended for small transfers. Ether, aka ETH, is used for everything else. Gas limit The minimum amount for the transaction is 21 thousand units. It is recommended to set a higher Gas limit value to be sure that the transaction is completed successfully. If the amount of Gas is not enough for a successful outcome, the transaction will be returned with the status "unsuccessful". Regardless of what the result was, Gas is paid to the miner, since they have already spent resources on processing this operation. Usually, developers fix the value that is written off for the successful implementation of the smart contract. So, if you need to make a transaction, and you have set a Gas limit of 500 thousand Gas, and only 30 thousand Gas is needed to make a transaction, then only 30 thousand Gas will be written off from you. But if, for example, 500 001 Gas is needed to conduct a transaction, then the program will not give a result, and this amount will be spent. How to avoid high ETH gas fees and calculate the right number of Gwei to pay the commission correctly? Use https://ethgasstation.info — this service specifies Ethereum gas price calculation giving you recommended commission values for the transfer so the transaction will pass.  There is also an alternative from Etherchain — https://www.etherchain.org/tools/gasPriceOracle You can find an Ethereum gas tracker at https://ethstats.net When are Ethereum Gas Fees Lowest? There are also general patterns that you can focus on to know what is the best time for low eth gas fees. Even though Ethereum is a network available around the world 24/7 and 365 days a year, since the launch of EIP—1559 in August 2021, the base fees have generally been higher during business hours in the United States. Interestingly, the morning period from midnight to 8 a.m. Eastern time has a lower base commission compared to working hours in the United States (from 9 a.m. to 5 p.m.). In addition, gas is also cheaper on weekends. The cost of gas is also affected by the intensity of use of Tether , USDC , and NFT , which also increases during working hours in the United States. Regardless of the reason, all of this can provide an interesting opportunity for time-independent transaction planning. How will the launch of the new Ethereum 2.0 network reduce the commission? Now Ethereum is a blockchain based on PoW (Proof-of-work) or the computing power of miners. When switching to PoS (Proof-of-stake), the computational load on the network is expected to decrease. For example, in the Ethereum PoS sidechain, validators will take the role of miners mining cryptocurrency. To become a validator, you will need to freeze 32 ETH on the account. The Ethereum 2.0 system should increase the network bandwidth and should allow for more transactions per second. The point is controversial: if the number and speed of transactions increase, then the cost of Gas may also rise. In any case, to know for sure, you should wait for the transition of the Ether from PoW to PoS.
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How to Buy And Trade Crypto (And Why)

How to Buy And Trade Crypto (And Why)

Ruth Kise 15 min read
The world’s recent events are causing more and more people to think about the safety of their savings. More and more of them choose to invest in cryptocurrency. Here, for example, your wallet belongs to you only, and no one can freeze your assets; on the other hand , the responsibility of the safety and all operations rests only with you. Therefore, you should first understand the following points. What You Need to Know Before Going into Crypto Getting acquainted with the world of cryptocurrencies is better to start with a choice of strategy. Investing or trading are the main ones. The first implies the acquisition of an asset and long storage. The second is short-term speculation. A trader makes many transactions with digital assets, trying to benefit in a short period. Strategy 1: Investments There are a few types of investments in crypto: Buy and hodl You can buy Bitcoin , Ether, or any other coin for fiat and wait for its rate to increase. If handled properly, such an investment will bring a big profit after a certain time. However, no one canceled the negative scenario for cryptocurrencies, and their value can fall sharply, up to a complete depreciation. Besides, such an investment method means investing not even for months, but for several years or more. Put in a trust This way, you invest in a trader who makes transactions on a cryptocurrency exchange and receives your interest. But still, there is a high risk of loss of invested funds because no trader is secure from damages. ICO You can invest in a cryptocurrency company and become its “stockholder”. The disadvantage of this method of crypto investing is the choice of a valid company as well. Strategy 2: Exchange Trading Trading cryptocurrency is an extremely risky craft. The price of altcoins is volatile, on a day it can fluctuate by 10–20%, sometimes by 50% or more. For this reason, it is better to try trading cryptocurrency from a training account first. The largest cryptocurrency exchanges, such as Binance, Coinbase, Huobi, OKEx, and others, allow users to open demo accounts for transactions without making a deposit. This will allow you to get acquainted with the market and the structure of the trading platform, and practice. Then you can deposit a small amount on the exchange. This will help the user understand his psychology: is he able to suffer losses and not make panic, erroneous transactions, control himself and decide with a cold head. In addition, it is necessary to study the theory, listen to lectures on this topic, take courses, and get acquainted with technical and fundamental analysis. All this will help not only to see in the charts the ups and downs of assets but also to predict them. Other Considerations: Fees Transaction fees are an integral part of most blockchain systems. They perform two important functions. They reward miners or validators, who help confirm transactions, and protect the network from spam attacks. Depending on the activity of the network, the transaction fee can be small or high. Its size is also derived from market conditions. Getting Ready to Take Part in the Crypto Market When you are ready with the strategy, ‌choose the best altcoins to buy. Today there are 2290 coins. Some of them are junk, but some can be very advanced. To make the right decision first you must make an analysis of it validity. It is best to start with Coinmarketcap – there is a rating of all cryptocurrencies by capitalization and a lot of useful information. No matter how reliable the crypto is, you can't trust it with 100% of the investment. It is better to distribute money to several tools, so you can reduce the risks of loss. For long-term investments, experts often say that you should choose cryptocurrencies that are in the top 30 at least. They are more stable, traded on many exchanges, and the probability of a sudden scam is minimal. Less popular coins also can be considered for investment. But it is worth understanding that, besides the risks of the fall in rate, there is also a risk of the slip-off. Follow all social media and forums, and monitor its activity: the more useful news on the topic, the better. If you see the developers do nothing, there is no news, then this means that they have lost interest in their project. It's better not to buy such a coin. It is also important to know if there is activity from investors. Also, some coins can operate only on one blockchain, and some you can use on different. So if you are going to trade your funds, ‌keep it in mind and learn about the cross-chain process.   Storing Crypto When you are ready to buy crypto , you must choose the type of its storage. Cryptocurrency wallet – an app, program, or separate device for sending, receiving, or storing electronic money. They are also can be “hot” and “cold”. A hot wallet connects to the internet and could be vulnerable to online attacks, but it’s faster and makes it easier to trade or spend crypto. A cold wallet typically has no online connection, so while it may be more secure, it’s less convenient. Below there are five types, with a brief description of their advantages and disadvantages: Software Wallet (Bitcoin Core, Exodus). These wallets store crypto funds right on your computer. And you usually need quite a lot of space for this. For example, for a minimum installation of Bitcoin Core, you need at least 145 GB on your hard drive - and this is for only one currency; Online Wallet (Blockchain, Wirex). These wallets keep your coins in the cloud. You can use them from any device, even from your phone. But you need to choose the wallet carefully. If someone hacks it, you will lose all. Hardware/ Cold Wallet (Trezor, Ledger). These wallets are separate devices, so they are much more difficult to hack than a regular computer. But you need to carry them constantly, as well as remember the PIN. Mobile Application (MyCelium, Breadwallet). An IOS or Android app that allows you to manage your tools. Convenient, easy, and fast storage, but with low security. In addition, if your phone was lost, the finder will get full access to the wallet. Paper Wallet (WalletGenerator.net, MyEtherWallet.com).  A special site generates private and public keys , that can you can print or record. Also, remember that except for a sheet of paper on which the keys are recorded — they are nowhere else, so the loss is equivalent to the loss of all the money. For investment, cold wallets are better. Thus, you can keep cryptocurrency on a computer or flash drive. Plus — security, no one can steal funds without direct access to it. For trading, the exchanges are the best. Using it, the client can sell or buy crypto and use additional options. Crypto Exchanges When choosing a cryptocurrency exchange, a novice investor needs to focus on some indicators. Such as: Financial turnover of the crypto platform. Large financial turnover shows enough money in the closures of the exchange, meaning that many traders use such a platform. So, such an exchange is high quality and the trader will not have any problems with it. The reputation of crypto exchange. Fees, which are not the same everywhere. For residents of different countries, crypto exchanges can also set geographical limits. The number of trading pairs on the cryptocurrency platform and their market rate. Payment options: find out how and how quickly you can transfer money to a crypto exchange account, and then withdraw it to your account or card. All cryptocurrency exchanges are divided into: Centralized Cryptocurrency Exchanges ( CEX ): Coinbase, Gemini, Kraken Platforms, where users can trade cryptos and ordinary fiat. They coordinate cryptocurrency, trading on a large scale, using a similar business model to traditional stock exchanges. Centralized exchanges usually offer their customers support, various trading pairs, and gateways for receiving and withdrawing, as well as additional services, for example, stealing , storage capabilities, IEO or DeFi services. Decentralized Cryptocurrency Platforms (DEX): WavesDex, Bancor, Besk, Uniswap Unlike traditional CEX, on such platforms, transactions and trades are automated by using smart contracts and decentralized applications. This type of crypto exchange is much safer since a well-written smart contract will not allow hackers to hack it. There are also aggregators like SwapSpace, where you can look at several offers and choose the crypto exchange that suits you best.  Swapping Crypto If your end goal is not just to put the purchased crypto in a stash, then you can exchange it for another coin. Swapping is a similar process to trading but with more flexibility. You can exchange any cryptocurrency for another even if the pair is not live on-the-spot market. This eliminates paying transaction fees more than once. In most cases, if you’re only swapping a small amount, convenience is the bigger concern here. That said, crypto swapping applies to any level of volume. Buying Crypto with a Credit Card The fastest way to buy crypto is to use a credit card. The process for buying crypto with a credit card is fairly straightforward: Find an exchange that allows credit card transactions. Your first step is signing up for a crypto exchange that allows you to use a credit card. And be ready to pass the KYC . Double-check that your card issuer allows crypto purchases. Enter your payment method. Set up your transaction. Pay off your balance as soon as possible. Pros and Cons of Buying Crypto With a Credit Card Pros Investing without cash on hand. Potentially earning rewards on your investment. Cons Purchases are often treated like cash advances. Higher fees. Your credit score could take a hit. Even more risk. Bottom Line Digital asset trading needs to be taken seriously, calculated every step, and thought about possible negative consequences. The beginner should first decide whether to invest or trade. Then study the theory, take some courses, and practice with test mode. Then choose the cryptocurrency to buy and be ready to lose. There is no game of luck. Don’t neglect crypto education. Crypto trading is hard work. It may take years to understand how the price of assets behaves in a particular situation. Don’t trust anyone and don’t hurry – do your own research before deciding. Choose the proven platforms for transactions and do not fall for fraudsters' ploys.
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Where Is the Crypto World Going: Crypto Censorship Resistance

Where Is the Crypto World Going: Crypto Censorship Resistance

June Katz 2 min read
Financial censorship or cutting off access to the global banking system is one of the most powerful tools that government has to punish their enemies. Whether financial censorship is used for the good cause or not the question is — does a global decentralized monetary system takes this weapon away from authorities? Tendencies For now, a government crackdown on crypto might look quite real: the Biden administration introduces a crypto bill and the Canadian court freezes millions in Convoy protestor funds — including Bitcoin . The situation in Canada also shows us methods of crypto tracing the government already has. Bitcoin may be uncensorable but it's also radically transparent and law enforcement has been remarkably successful at connecting bitcoin addresses to their users. Practice Bitcoin only solves the problem of financial censorship when individuals hold the keys to their own coins. When kept on an exchange the companies in charge maintain custody — just like any other bank.  That means that the government can put pressure on exchanges to freeze the bitcoin accounts which is exactly what happened in Canada where protesters' crypto assets were seized. Without an easy off-ramp into cash, spending the funds became a challenge for protesters. Concerns It should be noted that the anonymity of cryptocurrencies such as Bitcoin, Litecoin , Namecoin and others is understood as pseudonymity, in which a single violation of security measures (for example, the purchase of cryptocurrencies through a regular bank transfer) might lead to the disclosure of the owner's identity. Therefore, cryptocurrencies such as Dash and Zerocoin have been developed to enhance anonymity. Although governments can't ban blockchain use they can marginalize it and slow down its growth until the necessary tools for control will appear. The epicenters of the development of cryptocurrencies in the coming years may be some countries where the state and its financial institutions enjoy an extremely low credit of trust among the population.
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The Most Interesting NFT Examples: November 2022 Edition
The Most Interesting NFT Examples: November 2022 Edition

The Most Interesting NFT Examples: November 2022 Edition

Ruth Kise 11 min read
The NFT market remains an integral part of the crypto world, and despite some difficulties, it continues to develop and gain the interest of many users. In this article, we will talk about NFT news: today’s market situation, new opportunities, and some fresh NFT examples. Market Decline This year has been a difficult year for the NFT due to the bear market as well as other factors. According to Bloomberg, NFT sales this year have plummeted: in September, these digital assets were sold for $466 million, which is 97% less than the $17 billion that was raised in January. One of the factors in the collapse was the announcement of the bankruptcy of the FTX exchange , which negatively affected the cryptocurrency market in general and the NFT ecosystem in particular. Starting Nov. 7, when FTX customers had withdrawal issues, the NFT market is recording a steady decline in sales volume, market capitalization, daily NFTs traded, number of traders, and many other metrics. A deeper dive into the efficiency of the NFT sector in early November revealed a significant drop in the blue-chip index (Bored Ape Yacht Club, Cool Cats, CryptoPunks, Art Blocks, and CloneX). According to the analytical platform NFTGo, the blue-chip index is calculated by weighing the market capitalization ( ETH / USD ) of the largest NFT collections, which makes it possible to assess their performance. According to NFTGo, since November 7, the total capitalization of the NFT market has fallen by 8%; over the same period, total sales fell by 32%. Only sports fan tokens can boast of outstanding success now, as the trading volumes of those skyrocketed while the market was waiting for the 2022 World Cup. Let It Become Money On November 11, FTX Trading Ltd., Alameda Research, and 130 other affiliated companies began voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code. Along with this, it was announced that Samuel Bankman-Fried was leaving the post of CEO of the platform. After this news, 1.3 thousand tokens with various images of the ex-head of the problematic exchange were put up for sale. In total, the collection contains almost 7 thousand items. More than 2.1 thousand users purchased NFT from the Bankrupt FTX Yacht Club collection dedicated to the collapse of the exchange. The total cost of the sold NFTs is 187 ETH ($233 000), and the minimum price (the price of the cheapest token in this series) reached 0.1 ETH ($125), but by now it has dropped to 0.0092 ETH ($11).  The collection was posted by the creator of the NFTs - S60SSYe - on the evening of November 11. At the same time as the Bankman-Fried series, he also presented 3.8 thousand tokens called Caroline Town by BFTXYC (Bankrupt FTX Yacht Club) with the image of the head of Alameda Research Carolyn Ellison. These NFTs are less popular. Currently, about 700 users own such items, and the total amount of token sales amounted to 6 ETH ($7.5 thousand). Instagram and Facebook Have the Opportunity to Post NFTs Meta has opened up the opportunity for all US users to post digital collectibles, i.e. non fungible tokens or NFTs, on Facebook and Instagram. On Instagram, this feature is also available to users in over a hundred other countries. To work with the option, you need to connect a crypto wallet to your profile on the social network, after which it will be possible to create publications with NFT objects from this wallet. At the same time, the creator of the object and its owner are automatically marked in the publication.  A special section dedicated to digital assets has now appeared in the application settings, and wallets created on five platforms, including Coinbase, MetaMask and Dapper, can be connected to the profile. Theoretically, this operation is available not only in the mobile application, but also in the web interface — but the authors of assets, The Verge, said that the second option is still malfunctioning. Release and Sell NFT on Instagram: Now You Can Meta announced that it has begun testing the mechanisms for releasing and selling NFTs on Instagram. The first access to new features will be given to "a small group of authors in the United States". The set of options for demonstrating NFT objects on the platform has also expanded. Meta has prepared a set of tools for working with NFT: it will allow you to issue tokens on the Polygon blockchain so that you can then sell them either on Instagram or outside the platform. The developers specified that the Solana network was added to the supported Ethereum , Polygon and Flow blockchains to withdraw NFT purchased elsewhere on Instagram. In addition, there was a download of metadata from the OpenSea marketplace, as it was done on Twitter. Last year, Instagram chief Adam Mosseri said the platform was no longer viewed as a photo-sharing app. Now it is an entertainment venue. Therefore, authors should be able to make money either from advertising or from selling NFTs and gifts from the audience. Buy NFT From the AppStore Recently, Apple Inc. updated the rules for non-replaceable tokens (NFTs) in the App Store. Developers can now sell NFTs hosted at the App Store, but only through the internal payment system. That means content creators will be required to pay Apple a 30% fee on sales. Apple is interested in ensuring that users do not bypass the commission for buying NFTs using cryptocurrency. Therefore, the company introduced even more restrictions. Thus, the new rules prohibit the use of cryptocurrency, crypto wallets , and QR codes to unlock functions in the application. In addition, development companies must have a license to work in the country where the application is sold. And despite criticism of the high commissions, the company's management believes that the possibility of buying NFT from the AppStore for fiat will attract people who consider cryptocurrencies difficult to the market. OpenSea New Tools  Marketplace OpenSea has launched a new tool for royalty fees. So far, it can only be applied to new collections of non-fungible tokens. “There’s been a lot of discussion over the past few months about business models for NFT creators & whether creator fees (“royalties”) are viable. Given our role in the ecosystem, we want to take a thoughtful, principled approach to this topic & to lead w/ solutions”. OpenSea (@opensea) The team reserves the right to collect royalties for authors. From November 8, the platform will begin to charge commissions only from those new collections that use the corresponding tool and run additional options and improvements for fees in new collections. The marketplace team said that they are already thinking about alternatives in order to help the authors of existing collections navigate the changes in the NFT market. For the latter, they promised not to introduce any changes until at least December 8.  Also, the largest trading OpenSea marketplace is preparing a stolen token detection and sales block system on the platform. The developers have prepared a system that will automatically track transactions with stolen tokens and block such sales on the platform. Now the system is in the stage of limited testing. To track suspicious NFTs the system is going to use "many sources of transaction data." In addition, the system itself will check the seller's wallet for suspicious activity, for example, many NFT movements. An important innovation is checking links in ads for possible fraud. Scammers often used the OpenSea platform itself for fraud posting phishing links in ads.The new system will check both the NFT description and the URL link in the description. The developers promise to limit the clicks on suspicious links automatically. Starbucks Unveils NFT-Based Loyalty Program Starbucks has officially unveiled a new NFT-based loyalty program in the virtual world. The Starbucks Odyssey project is the coffee chain's first experience of building a virtual community using web3 technology. The new format combines the classic Starbucks Rewards loyalty program and the NFT platform, where guests can earn digital assets, which can then pay for exclusive services. Starbucks Rewards members will be able to use the services of Starbucks Odyssey through existing accounts, there is no need to re-register. Once in the new virtual space, they will be able to participate in various special projects, which Starbucks called "travel": for example, playing interactive games or taking part in surveys aimed at deepening their knowledge of the Starbucks brand or the coffee business as a whole. As these "travels" are completed, participants will be able to purchase some items from NFT collections. True, here Starbucks deliberately leaves the technical slang and calls these collectibles in the NFT format "road stamps." Despite being hosted on the Polygon blockchain, these NFTs will be purchased with a credit or debit card, no crypto wallet is required. The company believes this will make it easier for consumers to interact with web3 by lowering the entry barrier. It will be possible to swap "stamps" for a virtual class for preparing espresso martini, or access to indoor events at Starbucks Reserve Roasteries, or even a trip to Starbucks Hacienda Alsacia coffee farm in Costa Rica. Items in the NFT collection can be earned, exchanged in the community, or simply bought. Square Enix Fans’ Disappointment Square Enix has officially announced the NFT game Symbiogenesis. It will be released in the spring of 2023 along with the free browser service of the same name. The publisher registered the Symbiogenesis trademark in October. Then the players thought that under this brand a continuation of the sensational Parasite Eve which came out in the late 90s or something related to this series would be released. They came to this conclusion because the word symbiogenesis means the process of combining two separate organisms into one. It is this process that underlies the Parasite Eve plot . Symbiogenesis is a brand-new entertainment project that will take place in an autonomous world, where the symbiosis of many characters can be assembled in a digital art format. In Symbiogenesis, all user-generated content can be used as a profile avatar on social media and as a playable character in a story that takes place in the digital world. The authors promise a lot of plot in the NFT game. Something New From The Sims Creators  The creator of the iconic The Sims and the city-planning simulator SimCity Will Wright has announced his new game called VoxVerse. This is a virtual sandbox consisting of huge cubes in which players can extract resources, own land, and build various structures. Unfortunately for many players, VoxVerse is largely built on NFT technology. Players will be able to trade characters from The Walking Dead and DreamWorks' cartoon Trolls. According to Wright, blockchain technology will help players make "secure transactions." At the same time, the cult developer himself expects that three types of users will be formed around the game: some will simply play, the second will be slightly involved in the project economy, and others will enter VoxVerse exclusively for the purchase and sale of items. However, Will Wright is much more interested in "a million ordinary players than in 10 thousand rich whales" that will bring him money. More Life in the Metaverse There is not yet a single metaverse, and its first versions often cause mixed feelings due to the feeling of artificiality. To "revive" the virtual space, startups offer to add virtual animals to them. The general idea is not new, but the new features imply that the pet will not be limited to specific hardware. Now in the early days of Web3, a new wave of start-ups is attracting investment to bring our furry friends to the metaverse. One of the striking projects is Tiny Rebel Games' Petaverse Network creates virtual cats in an NFT drop format that is promised to be used for decades. To do this, they are trying to ensure that their metapets can be recreated by different development teams working on different platforms, regardless of how the technology changes. Another project, Digital Dogs, is going to "tag" the metaverse and is developing cross-platform AI puppies for virtual worlds, digital games, and social platforms. According to co-founder and CEO Itay Hasid, these dogs are not intended to replace a furry friend. These are rather companions for users of the metaverse, who may become an occasion to start a conversation, which is not enough, in his opinion. ECO -Friendly NFT If you love nature and are worried about the safety of animal species and ancient traditions, now you have the opportunity to curate your own deer. The deer NFT collection containing eight tokens has appeared on the market. The Digital Reindeer Herder project was developed in Yakutia. Also, the republic began to issue futures of supplying deer antlers in a certain number of kilograms. The money from the sale, in particular, will go to the development of reindeer husbandry in Yakutia. "Futures will increase the number of animals and commercialize the antlers market. A similar contract can be used by people who want to help the ecology of the Arctic and contribute to the development of the North, " said the press service of the republic. The Bottom Line NFTs have been more than just pictures with painted stones from the Internet for a long time, sold for a lot of money. Attractive assets with their philosophy are rapidly becoming an integral part of modern culture, opening up new opportunities for monetization of their resources for artists and enthusiasts of the idea of an attractive Metaverse. Large companies one way or another enter the market, wanting to maintain their significance and relevance. Using technology, opening their own marketplaces, or releasing their own collections, large players not only increase their funds but also popularize NFT for the masses. Booms and busts inextricably accompany the development of the young market, presenting opportunities to make good money for experienced participants, and a nice chance to successfully enter the market for beginners. And we at SwapSpace are preparing something in this space ourselves. Stay tuned!
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What Happened to FTX: A Brief Overview
What Happened to FTX: A Brief Overview

What Happened to FTX: A Brief Overview

John Martin 6 min read
Until recently, it seemed that FTX was doing well: FTX founder, Sam Bankman-Fried, one of the most authoritative persons in the crypto-world, raised $400 million from Softbank and others in January, receiving an estimated $32 billion valuation, and last month spoke about the project’s ambitious acquisition plans. However, now FTX is in distress, customers are massively withdrawing funds, and Binance, which volunteered to help the company, refused to buy it. Let's figure out how the crisis unfolded. A Brief Chronology of the Events That Led to the Collapse of the Crypto Exchange November 2017 - Foundation of Alameda Research Alameda was founded in November 2017 by Sam Bankman-Fried (also known as SBF). Alameda and SBF gained fame through arbitration trade on the so-called "Kimchi Premium," which refers to abnormally high bitcoin prices in some Asian countries. Subsequently, Alameda became one of the most influential venture capital companies, trading firms, and market makers in the field of cryptocurrencies. May 2019 - Foundation of the FTX Crypto Exchange FTX was founded by SBF in May 2019 as a centralized cryptocurrency exchange specializing in derivatives and products with credit leverage. December 2019 - Binance Announcement At the end of 2019, the Binance cryptocurrency exchange announced strategic investments in FTX. The investment was approved by SBF, which said it "will help accelerate FTX growth with support and strategic advice from Binance while maintaining independent FTX operations." 2021 - Binance Sells FTX Stocks in Exchange for FTX Tokens and Dollars In 2021, Binance sold its stake in FTX in exchange for $2.1 billion in FTT and dollars. 2022 - FTX Gets in Trouble On November 8, the FTX exchange suddenly suspended the withdrawal of customer funds (for many crypto projects such actions were a precursor to the approach of the disaster), and CEO Binance Changpeng Zhao, known under the pseudonym CZ, announced on Twitter that FTX had turned to his company "for help" and they managed to come to an agreement that would save the crypto exchange. Bankman-Fried published the thread, saying that the customers' money is now safe and withdrawals will be made on time. "CZ has done and will continue to do incredible work to create a global cryptographic ecosystem and a freer economic world," he wrote. This year many events undermined confidence in crypto companies. After the collapse of the Three Arrows Capital hedge fund, the Celsius platform, and the Terra-Luna stablecoin , another loud failure was the last thing the industry needed. It seemed that the FTX barely managed to evade its crisis. But soon after Binance posted a tweet about canceling the deal, citing the results of corporate due diligence and news that FTX mismanaged customers' funds. The Stock Sold by Binance FTX's problems began in July 2021, when Binance, one of its first investors, sold its stake in a competing business for $2.1 billion in FTT - tokens issued by FTX. At that time, this step seemed logical: Bankman-Fried and Zhao had different views on the approach to regulating cryptocurrencies, which led to a split. FTX's problems surfaced only on November 2, 2022, when a report from CoinDesk showed that billions of dollars worth of FTT tokens were on the balance sheet of Alameda Research (a subsidiary of FTX). This raised questions about how much FTX and Alameda are dependent on FTT, which cannot be easily converted into cash. In addition, the specifics of the relationship between Alameda and FTX remained unclear for a long time. In response, CZ published a sensational message on Twitter: Binance will sell all its assets in FTT. According to him, the intention was to conduct the sale "in a way that minimizes the impact on the market." However, this brought down the FTT rate by almost 90% and provoked massive seizures, since FTX customers were concerned about the security of their crypto assets. On November 7, Bankman-Fried denied rumors of insolvency, writing that "a competitor is trying to attack us with false rumors" and "everything is fine with FTX." Later these tweets were deleted, and then it became clear that the company was trying to get financial help. CZ denied intentionally creating a liquidity crisis. On November 7, he wrote on Twitter: "I spend energy on construction, not wrestling." However, Tim Mangnall, whose Capital Block company advised both Binance and FTX, called it a "cunning" business maneuver that would allow Zhao to "buy one of the largest competitors for less than a dollar." CZ, King of the Crypto Binance has now dropped this deal. The crisis in FTX is likely to strengthen its competitor's position as the world's largest crypto exchange. Binance is already bypassing several of the largest venues combined in terms of trading volume - we are talking about companies such as Coinbase, Kraken, OKX, Bitfinex, Huobi, and FTX. Now crypto exchange will probably have more control over common coins. Similarly, Changpeng Zhao, who has already become one of the most prominent figures in the crypto sphere, will strengthen his influence on issues related to politics and regulation. For the part of the community that believes that cryptocurrency should support decentralization, the merger of the two largest world exchanges will also be a cause for concern. Decentralization means evenly allocating power and eliminating individual points of failure, but falling FTX does not contribute to either. After Binance's rescue plan was first announced, Bitcoin and Ether prices fell by more than 10%, causing the market to lose more than $60 billion. The fall may continue. In addition, the collapse of FTX raises questions about how to protect cryptocurrency owners in the future. One of the CZ proposals is to oblige crypto exchanges to provide transparent "evidence of reserves." In other words, they have enough cash to finance the withdrawal of funds by customers. In a tweet, he promised that Binance would "soon" implement this policy. Coinbase CEO Brian Armstrong expressed sympathy for FTX but also pointed to "risky business practices" and "conflicts of interest" that made the company vulnerable. He also hurried to allay concerns that Coinbase could face a similar liquidity crisis. Nevertheless, this situation is another warning about how risky it is to transfer your entire crypto portfolio to an exchange and how important it is to keep the opportunity to manage assets on your own. Can I Get My Money Back From FTX and How? Bitget Exchange created a $5 million Builders Fund to help customers who were affected by theFTX bankruptcy. Those users can apply for financial assistance. However, only FTX-affiliated partners, customers with assets worth more than $50 000, and a monthly turnover of more than $10 million will be able to do this. Later, this fund increased to $300 million, but the requirements for obtaining help are still quite high: it was first created to cover the losses of strong and large traders, to minimize reputation damage, and to drag FTX customers to the Bitget exchange. If you have small deposits, up to $50,000, most likely you have no chance of returning your funds, unfortunately. What Conclusions Can be Drawn From the Bankruptcy of FTX?  The fall of such a large exchange shook the crypto space. FTX and Alameda faced the prospect of bankruptcy with $8 billion in debt, while recipients of FTX Venture investments, such as Solana , are experiencing a huge capital outflow. Never keep large amounts of money on the stock exchange. If you use the investment products of the exchange, distribute the capital so that it is divided into small parts in different exchanges. Keep your assets in cold wallets. Whatever that amount is. Even if you have $100 laying in your account on an exchange, transfer them to a cold wallet . This is not about the amount of money, but about the right capital management skills.
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The Future of Money and the Role of Crypto in It
The Future of Money and the Role of Crypto in It

The Future of Money and the Role of Crypto in It

John Martin 8 min read
Money has changed human society, allowing commercial transactions to take place even between geographical regions at a considerable distance from each other. It makes it possible to move wealth and resources in space and time. For much of human history, however, it has also been the subject of greed and waste. Now money awaits a change that can transform banking, finance, and even the structure of society. Most notably, the era of physical, or cash, money is coming to an end even in low- and middle-income countries; the era of digital currencies is coming. In this text, we’ll discuss different financial future predictions, the role of crypto, and its future. Cryptocurrencies vs Fiat Money Many financiers note that cryptocurrencies can set new financial models — more improved, simplified, and modern. Among the advantages of cryptocurrencies, they note anonymity, speed, lower costs of transactions, cross-border transfers that are not limited by barriers, full ownership of assets, lack of regulation by the state, and payment of taxes. Fiat currency is distinguished by: the mandatory presence of an issue center, which has exclusive rights to issue money (for the dollar it is the Federal Reserve Service); unconditional inflation: the money supply increases and its purchasing power decreases over a long period; the constant increase in operating costs associated with the maintenance of large amounts of cash; increased transaction costs. Cryptocurrencies on blockchain technologies, such as Bitcoin, are fundamentally different: the absence of an emission center: it is programmatically limited when launching cryptocurrency (in particular, there cannot be more than 21 million bitcoins); belonging to a person: cryptocurrency belongs to a specific cryptocurrency account or wallet , while the purchasing properties of the banknote can be changed by the issuer, and the paper money itself is generally withdrawn or prohibited for circulation; reverse inflation model: the more often cryptocurrency is used, the higher its value, as the demand for coins increases while maintaining the volume of currency; lower transaction costs: according to some estimates for Visa, this is $2, and for Bitcoin — $0.35 in medium-term operations.  These differences demonstrate the advantages of cryptocurrencies over fiat money. But for there to be a global transition from centralized to decentralized finance , and for the blockchain to turn from a candidate technology into a new system of work for the world economy, two key conditions must be met. Cryptocurrency should receive the status of a state currency. There are already such precedents: in 2021, in El Salvador , Bitcoin was adopted as a means of payment in the country. Cryptocurrency should begin to conclude interstate trade contracts. The finance industry of the future is at the very beginning of this path. And although the number of transactions over the past few years has noticeably increased, so far cryptocurrency is more of an investment tool with a very weak change function. The real volume of goods and services that are sold and bought for cryptocurrency is still insignificant. We are on the verge of a new era of non-dollar trade. Whether cryptocurrencies can compete for the place of the dollar with other fiat currencies largely depends on large-scale entrepreneurial projects in the field of blockchain. The Problem of Regulating Cryptocurrencies in the World It is very difficult for governments and central banks to regulate digital decentralized systems, which were created to avoid state control and were specifically designed to exclude public authorities and banks from their monetary circulation and confirmation of transactions and rights. It is even more difficult to develop a common approach to cryptocurrencies for countries with different economic and political weights. In the world's largest economies, the assets of traditional banking systems amount to tens of trillions of dollars and significantly exceed the size of the global cryptocurrency market, and in developing countries, the money supply in the national definition is several times or even several tens of times less than the volume of the cryptocurrency market.  Decentralized forms of finance (DeFi) are gaining popularity in developed countries, while peer-to-peer (P2P) platforms are becoming increasingly common in emerging markets. Some central banks see cryptocurrencies as a threat to the financial sovereignty of their countries and risks to traditional banking systems and citizens, including the risks of fraud, theft , and hacking, so they propose a complete ban on them. Other regulators believe that the crypto market is enough to only monitor so that it does not interfere with innovation now, but subsequently apply existing legislation and regulations to this sector of "digital assets." The problem of regulating the crypto market has become a global one, so the coordination of the efforts of regulators to create rules and procedures is beginning to take on global financial management institutions, such as the International Monetary Fund, the Basel Committee on Banking Supervision, the Financial Action Task Force (FATF), the International Organization of the Securities Commission (IOSCO). It is planned that the zone of control of regulators will include operations to exchange traditional fiat currencies for cryptocurrencies, crypto exchanges, intermediaries that provide access to cryptocurrencies and services, as well as any economic entities that accept payments both in traditional currencies and in cryptocurrency.  Payment systems will be standardized and transaction storage and clearing service providers will be certified. Cryptocurrency mining will fall under separate control in several countries, and in others, it will be placed under a ban. CBDC as Transition Before the complete replacement of fiat currencies with cryptocurrencies, the global financial industry will undergo another intermediate stage related to the release and circulation of CBDC, many experts say. CBDC (Central Bank Digital Currency) is the digital currency of central banks. Those currencies are issued centrally and retain all the advantages of the classic fiat model, but they have cheaper transactions, 24-hour access to liquidity for banks, and the possibility of integrating smart contracts into the country's economy. In addition, with the help of this tool, the state retains control over the monetary sphere and can stimulate payment for goods in the national cryptocurrency, increasing its turnover. Since 2017, many countries have been experimenting with CBDC: such cases (in one stage or another — from the pilot to the working project) have been implemented in Thailand, Hong Kong, China, the UAE, Singapore, Canada, Great Britain, France, Cambodia, Uruguay, Russia, El Salvador, and the Bahamas. NFT for a New Level of Financial Confidence Replacing fiat money with cryptocurrency may have another interesting effect — the financial industry reaching a new level of confidence. We can take, as an example, programs based on NFT technologies. When buying NFT, the investor does not just acquire the right to a discount: he can resell it, thereby gaining liquidity. At the same time, one participant in the transaction transfers funds to the other party, as a rule, without any contracts and intermediaries represented by banks. New principles arise — full responsibility for their transactions and the presence of a certain moral component, trust, in contrast to the traditional financial environment, impersonal and mechanized. As a result, the crypto market will gradually fill the established economic culture with new content. Bitcoin Future According to a Chainalysis study, the volume of bitcoins in investors' wallets has increased significantly in recent years, and more interestingly, it has significantly exceeded the volume of coins in traders' "speculative" wallets. About 77% of the "mined" bitcoins (which are not classified as lost) have not changed their current address for five years or longer. According to a Bitstamp survey, 72% of institutional and 73.1% of individual investors plan to increase their investments in crypto assets in the next five years. About 16% of Americans and 10% of Europeans own cryptocurrencies. Among the well-known institutional investors are Grayscale Investments, Square, Microstrategy, Tesla, Meitu, Massmality, etc. Interest in cryptocurrencies is also shown by banks, in particular, Goldman Sachs and Morgan Stanley. Digital coins received special investor attention precisely during the Covid-19 pandemic. In particular, analysts at JP Morgan believe that investors' rejection of gold in favor of Bitcoin during 2021 was associated with an increase in inflationary trends in the world. In such conditions, some even began to call cryptocurrencies a "haven" for investment.  However, it is quite possible that after the drop in the price of Bitcoin by 75% and a three-fold reduction in the capitalization of the crypto asset market, confidence in the safety of this "harbor" will decrease. Conclusion: Is Crypto the Future of Money? In 2018, the capitalization of the cryptocurrency market decreased by more than eight times — to $102 billion. But this did not prevent it from reaching a record $2.9 trillion in November 2021. Therefore, there is no unambiguous answer to the question "what future do cryptocurrencies have?" It all depends on their ability to gain the confidence of settlement participants and investors, effectively performing the functions of money. It is possible that still lies ahead. The cryptocurrency market and ecosystem are dynamically developing, the interest and awareness of individual and institutional investors are growing, and the transparency of issuers and intermediaries is increasing. All this will continue to contribute to the deepening of the market, and a decrease in the manipulability and sensitivity of cryptocurrencies to situational factors and news. In such conditions, over time, the exchange rate fluctuations of cryptocurrencies will decrease. The development of technologies will help solve problems of scalability, the vulnerability of blockchain networks to hacker attacks, irreversibility, and non-environmental transactions. Therefore, probably, the convenience, speed, and security of calculations with cryptocurrencies will continue to gradually improve. Thanks to the formation of the legislative field, comprehensive regulations, and supervision, cryptocurrencies will receive a clear legal status, and market participants will gain the right to legally conduct business and protect their interests. All this will likely contribute to the spread of transactions made using cryptocurrencies, and their share in public savings and investment portfolios will increase. And accordingly, the associated risks will grow.
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Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them
Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

John Martin 10 min read
Crypto assets can utilize all investment strategies in the stock market, from dividends to balancing assets between growth and value stocks and IPO analogs:ryptocurrency trading and trading in stock and financial markets at first glance may seem identical. But there are differences in these industries that cannot be ignored since they make their adjustments and can affect the success of trading. In this text, we will try to understand these differences and compare the cryptocurrency and stock markets. With the advent of Bitcoin in 2009, the world first met with digital currency and blockchain technology. Initially, large investors considered cryptocurrencies just a fad. Since then, a lot of time has passed and cryptocurrency markets have grown like yeast. However, this revolutionary technology was not without drama. While some experts expect the cryptocurrency market to be a useful addition to traditional financial markets, others fear that cryptocurrencies may collapse and pull the rest of the market down. One way or another, the impact of digital currencies on financial markets is undeniable. The main purpose of cryptocurrency trading is similar to the purpose of trading traditional stocks: both are used for earnings. Therefore, more and more investors are adding cryptocurrencies to their portfolios. According to a CNBC study, currently, 1 in 10 Americans invests in cryptocurrency. With digital assets, investing becomes easier than ever. High volatility creates greater income potential. And if you add to this the possibility of round-the-clock trading, a high credit shoulder, low fees , and thresholds for transactions, then it will soon become clear why so many novice investors and experienced exchange traders are starting to switch to cryptocurrency. In this article, we will analyze the similarities and differences, as well as the pros and cons of trading in cryptocurrencies and stocks. Is the Purchase of Cryptocurrency Similar to the Purchase of Shares? Yes. After all, buyers exchange funds with sellers of digital assets, and the price of these assets is determined by demand and supply. Transactions are carried out online, and both types of these investments entail certain risks. Cryptocurrencies and stocks behave similarly. If you traded on the stock market or forex, then you will have absolutely no problems with the interface of any cryptocurrency exchange. But it is worth noting, although the fundamental analysis (fundamental analysis is the approach used by investors to determine the internal value of a cryptocurrency...) of a cryptocurrency or token is slightly different from the analysis of shares, the basic trading mechanism, and general technical analytics are almost identical. For example, similar types of orders are available in both markets. Market orders are either bought or sold at the current market price. Limit orders have a set price at which the trader wants to buy or sell the asset. A stop-loss order works on the same principle as a market order: it is carried out only after reaching a certain value of the price. Moreover, intraday stock trading is very similar to spot cryptocurrency trading. In intra-day trading on the stock market, the trader speculates on the securities exchange rate for one trading day. The same short-term trading strategies apply to cryptocurrencies, with the only difference being that cryptocurrency markets never close. Cryptocurrencies apply such day trading strategies as swing trading, range trading, scalping, and arbitration transactions. The cryptocurrency market is characterized by volatility and deep liquidity, but these are the most important conditions for profitable intraday transactions. Main Differences Between Cryptocurrencies and Stocks The growth of the crypto portfolio by more than 1000% in a matter of weeks is not usual in the crypto market, but still, this happens. The ability to generate significant profits in a short time and a low barrier to entry attract more and more investors. The threshold for entering the cryptocurrency market is quite low because you can trade them in tenths and hundredths. However, the higher the potential for substantial earnings, the higher the risk. Cryptocurrency prices (to put it mildly) are not stable, many experts consider cryptocurrency trading a gamble rather than a real investment. Stock markets, by the way, are also volatile, although not so significant. The main differences between cryptocurrencies and stocks are best noticed when considering the following characteristics. Liquidity Liquidity reflects the ability to quickly and freely buy or sell an asset on the market. Crypto markets are inferior to stock markets in this indicator, since stock markets have higher trading volumes, and, as a result, higher liquidity. In the crypto market, there are significantly fewer active traders, respectively, and liquidity is less. But cryptocurrency is different. Bitcoin, for example, is the most liquid digital currency, it is traded by most traders. The low market capitalization of coins, tokens , and small crypto exchanges often creates liquidity problems and makes these assets unfavorable for investment. But when trading shares, similar problems arise. For example, when investing in OTC small stocks or working with brokerage companies with micro capitalization. Possession Buying stock on the stock market makes the investor a shareholder and awards him a share in the company. The shareholder has the right to various privileges, such as capital gains or losses, dividends on profits, as well as the right to vote in solving various issues of the company. However, if the purchase passes through a brokerage company, then technically this means that the broker owns the shares and not the real buyer. Very few investors own shares on their behalf. If you buy cryptocurrency, then you become the sole owner of the purchased coin or token. Usually, cryptocurrencies are traded and stored on exchanges. However, cryptocurrency can also be transferred to a separate electronic device (cold storage), which, as a rule, is safer than an online wallet . And if the secret keys to your wallet are kept safe, then you can not worry about theft . Stock Markets Fluctuate Only During the Trading Day Cryptocurrency markets, in turn, never close and are influenced by other digital assets, events in the crypto space, and changes in world stock markets. Because of this wide range of variables that affect the market around the clock, cryptocurrencies are more volatile compared to stocks. High volatility means less price stability, which can stop corporate investors from investing in cryptocurrencies. It also means that traders have more opportunities to enter and exit trades and make high profits. Non-Stop Trading The work of cryptocurrency exchanges without breaks and weekends gives wide freedom to the trader. If a trader is profiting from short-term speculation, he can plan his time regardless of location, time zone, and schedule, and at any time connect to the market to find interesting transactions. At the same time, it is important to understand what time the bulk of crypto traders of a particular region wakes up and take into account that with the arrival of a large number of new players from a certain region, the price can sharply move in one direction or another. At the same time, the availability of the market 24 hours a day does not indicate that it is necessary to monitor cryptocurrency quotes around the clock High Volatility With the appearance of cryptocurrencies, for the first time in human history, private investors had the opportunity earlier than institutional investors to gain access to a new promising class of assets. Cryptocurrencies are the first market where there is practically no institutional capital, and this, in turn, generates volatility. Volatility creates several factors: private investors have a higher rate of return on capital, the timing of capital placement is shorter, and the competence of participants is lower. Free Cryptocurrency Market Stock markets are regulated by law, and margin requirements are quite strict. Trading derivatives in the cryptocurrency market is much more affordable than margin trading in the stock market. On the leading derivatives exchange, the minimum deposit is only one US dollar. In the stock markets and the memory, they would not hear about such figures. The size of the credit shoulder on leading exchanges of digital assets varies from 2 × up to 100 × (or even more). Pricing In digital assets, the price is formed according to the classic model of the balance of supply and demand, since the amount of a particular currency is limited and, by regulating the number of those coins in circulation, it is possible to form a price. The price in traditional markets consists of many factors: forecasts of analytical agencies, financial indicators of companies, ratings, government regulation, news background, and other dependencies. Crypto exchanges are often accused of inflating volumes to get a higher rating and attract more traders. So far, there are parallel ratings of exchanges and trade volumes showing very different results, but soon indexes will begin to form the current leaders of the traditional market, and they can be more trusted. Protection and Insurance Due to low volatility, investment portfolio insurance is practiced in traditional markets. This financial instrument benefits both insurers and investors, as it helps protect investments in force majeure. This is not practiced in cryptocurrency markets, since movements can be so strong that insurers simply do not have enough funds to cover losses if chaos begins in the market. The insurance market in the field of digital currencies is just beginning to form, and derivatives are already appearing, such as options for Bitcoin and Ethereum . If we talk about the DeFi strategy, then insurance projects appear that take on the function of an insurance agent, that is, they will reimburse funds in the event of unplanned losses, such as protocol hacks, and loss of assets by a smart contract that invests them in the interests of the user. Diversification The goal of diversification is to hold assets that manifest themselves differently in different markets. Stocks have fewer options for diversification, because all stock markets, as a rule, are influenced by the global economy. Stocks and bonds are affected by inflation and monetary and economic policies. The low dependence of Bitcoin and Ethereum on securities and stock market assets makes investing in cryptocurrency an attractive portfolio diversification strategy. Cryptocurrency prices largely depend on the prices of the largest coins, for example, BTC and ETH . Stocks and bonds depend on a variety of economic factors, individual indicators of companies and sectors, as well as on demand and supply within the corresponding indices, industries, and services. Cryptocurrencies or Stocks: What is Better for Short-Term Investments? Cryptocurrency is a promising short-term investment with the potential for both rapid high profits and equally rapid losses. The average yield on the stock market is about 10% per year, but the yield on Bitcoin, which became the most profitable asset of the decade, is 230%. Keep in mind that digital assets can grow greatly in a few hours or collapse in a matter of minutes, as happens when executing the "pump and reset" scheme. Not all transactions bring stable and guaranteed profit. However, the volatile state of cryptocurrency markets makes them an ideal tool for traders who want to make quick money. Cryptocurrencies or Stocks: What is Best for Long-Term Investments? The stability of stock markets attracts many long-term investors. To illustrate traditional market timeframes, the S&P 500 has been watching the performance of the five hundred largest US companies for 46 years, 10 of which were unprofitable according to the index . However, in the long run, portfolios still grew. In addition to the constant risk associated with high volatility, crypto markets also face the influence of authorities, slow implementation in the rest of the world, and cybersecurity threats. Despite these risks, the cryptocurrency market can become a useful tool if you study how it works and act carefully. Regardless of whether you invest in cryptocurrency or stocks, the right way is to play for the long term. If you are not an intraday trader, then it is better to avoid speculation on short-term volatility. In Conclusion When choosing an asset for trading, it is worth building on your experience, trading strategy, and the amount you are going to invest. Stocks are better suited for those looking for predictable, limited investment growth in the long run in the face of low volatility. Cryptocurrencies are better suited for those who want to diversify their portfolio and insure it against inflation and factors that negatively affect financial markets.
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Web3 Trends and Top Projects
Web3 Trends and Top Projects

Web3 Trends and Top Projects

John Martin 10 min read
The Web3 industry is only emerging, but developers are actively working on its mass implementation. Web3 is the next stage in the development of the Internet, which will be controlled by ordinary users and creators. Web3 vs Web2 Unlike Web 2.0, the third version of the Web is focused on improving scalability, security, and decentralization. Interaction between Web 3.0 and metaverse occurs using NFT. Web 3.0 is a group of decentralized applications that can "collaborate" with virtual worlds. Examples include Decentraland Mana and the Land token. Web 3.0 is not hosted on the servers of private users or even Web3 companies, but in separate places. Storage cells are computers, laptops, and other user equipment. Each time information is entered, it is copied to all nodes. As a result, data manipulation is eliminated. Benefits of Web 3.0: lack of central regulation; less censorship ; the ability to express one's thoughts; monetization for presence on the Internet, etc. To switch to Web 3, you need to understand cryptocurrency services, start crypto keys, deliver DApps applications, etc. Web 3.0 is a new concept of the Internet, which is based on decentralization and the absence of a single supervisory authority. It is the next stage after versions 1.0 and 2.0, which opens up more opportunities from the data control position. Web 3.0 crypto meets the declared criteria and is the next step in the hierarchy of digital assets. In this text, we will talk about the current trends in this industry and consider some interesting projects. Web 3.0 Trends Creative DAO The Internet and the simplicity of global communication have provided creative actors with development opportunities. Web3 technologies are also in their interest. In particular, the blockchain provides security, peer-to-peer (P2P) payments, and confirmed ownership. DAO (Decentralized Autonomous Organization) is a type of organizational structure built based on a blockchain. Such an organization unites like-minded people who are working on the long-term success of a project or creator. Within the DAO, participants who own tokens usually have the right to vote. In 2022, creative projects and creative personalities will be surrounded by more and more DAO, which will offer them support and feedback from community members. Stabilizing the NFT Industry Over the past two years, the NFT world has experienced ups and downs. Last year, non-fungible tokens faced an incredible level of growth and caused a great stir around themselves. In 2021, the NFT marketplace OpenSea grew to an incredible level, and the tokens themselves began to appear in pop culture and social networks. However, this year sales have fallen, and some are wondering if the NFT bubble will burst. The downtrend is largely worrying for those industry participants who are looking to make a quick profit. Loyal fans still see value in these tokens. As speculation around technology begins to fade, the industry will enter a new stage in which NFTs will be applied in many areas of our lives. The mechanism of tokens (for example, in the format of patents, loyalty rewards, and in-game assets) will encourage users to own them, and not trade them. Cooperation Between DeFi Protocols Hacker attacks, destabilization, and other incidents in the Web3 sphere will continue to occur both in 2022 and, probably, in 2023. For example, in March there was a loud fall in UST and Luna tokens, due to which investors lost $60 billion. Cryptosphere leaders will unite to find solutions to such incidents and ways to prevent them in the future. In 2022, even "competitors" are likely to cooperate within the framework of a single goal - to build a better future for the internet and a better version of Web3. And as these incidents continue to occur, more DeFi protocols will unite in unstable situations. TOP-5 Web3 Cryptocurrencies by Capitalization Polkadot ( DOT ) Open source multi-purpose protocol. Simplifies the transfer of data and different types of assets. Designed to connect public and private chains, accelerates the exchange of information and transactions.  Created by the Web3 Foundation. The founders are Gavin Wood, Robert Habermeier, and P. Chaban. The network is flexible and adaptive and has a convenient management system and high security. You can customize and adapt the monitoring process to your needs and conditions. The total number of tokens is 1 billion, and initially, this number was 10 million. The network used NPoS mechanisms focused on the selection of validators/nominators for security. The purchase of a token is available on many exchanges, including OKEx, Huobi, and others. The DOT token has a rate of $7.75 and is in 11th place by capitalization among all cryptocurrencies. At the time of writing, the coin is falling in price due to the characteristic bearish trend, which makes the offer attractive to investors. The project is developing and raising the course is a matter of time. Chainlink ( LINK ) A decentralized network designed to link smart contracts to real-world information. Created by S. Nazarov and S. Ellis. The ICO was held in the fall of 2017, during which it was possible to raise $32 million. At the same time, LINK is a cryptocurrency native to Chainlink, used to pay operators. The goal of creating the platform is to link blockchain smart contracts with the rest of the universe. Chainlink oracles (LINK) connect to the Ethereum network, provide external information and start the execution of smart contracts. Network members are rewarded for providing access to API information or other external data. Cryptocurrency rate of Web 3.0 LINK 6.81 $. On January 10, 2022, the price was $27.57, after which there was a gradual decrease. But this does not prevent the token from being in the lead and taking 22nd place in the general list by capitalization. Filecoin ( FIL ) A decentralized Web 3 system designed to store the most important information. The history of the project began in 2017, when already at the first ICO managed to raise $205 million. Initially, the launch was planned for 2019, but it had to be postponed to October 2020. Filecoin (FIL) is created by experienced computer scientist H. Benet, known for the InterPlanetary File System. The essence of the project is decentralized data storage and the application of its security system. It simplifies access to information and complicates censorship. In the Filecoin (FIL) system, users themselves store data and receive a reward for this. The network is based on PoR and PoS. System nodes compete for the transmission of information to customers. Subsequently, a reward is issued from the FIL commission. At the time of the review, the value of Filecoin (FIL) is $5.88, the coin is on the 38th capitalization place regarding all digital assets and in third place among cryptocurrencies on Web 3.0. It has great prospects for development. Theta Network ( THETA ) The blockchain-based network was created for video streaming. Launched in March 2019, it works in the form of a decentralized network. The creators are the co-founder of Twitch — J. Kan, and YouTube — S. Chen. Web 3.0 platform has its own digital asset Theta, performing management tasks. The uniqueness of the project is the decentralization of streaming video. This is a streaming platform that rewards users and gives additional bandwidth. With the help of the program, it is possible to solve problems by showing videos in different parts of the planet and reducing costs. At the same time, quality is at a high level. The Theta token is used to manage the platform. At the moment, its price is $1.16, and the total number of coins in circulation is 1 billion. With a capitalization of $1.15 billion, the token is in the 4th place among Web 3 projects and in the 42nd position among all cryptocurrencies. An additional advantage is the openness of the source code, which allows you to introduce modern innovations and make edits. Helium ( HNT ) Decentralized blockchain network for IoT devices, launched in the summer of 2019. It allows low-consumption wireless devices to share information and send data over the Internet. The role of nodes is performed by an access point providing a combination of a gateway and a mining device. The goal of creating Helium is to improve the communication capabilities of the Internet of Things. And if in 2013, when the company was created, this direction was in its infancy, today the situation has changed. The system is interesting to device owners and users who work with IoT. At the same time, the basis is PoC and a new consensus algorithm. HNT is a system token that is available without restrictions. But there is a monthly limit - no more than 5 million coins can be issued monthly. At the same time, the mining time is from 30 to 60 minutes necessary to unlock the award. The essence of the project is simple: first, the owners of the nodes accumulate NHT to create networks of network infrastructure and then resell the asset. As of June 2022, there are 119.5 million such coins, the exchange rate is $9.07. Taking into account the capitalization of 1.076 billion tokens, HNT ranks fifth in Web 3.0 projects and 44th among all cryptocurrencies. Lesser Known Web3 Projects In addition to the projects discussed above, the following representatives of Web 3 deserve attention: Siacoin ( SC ) is a unique coin on Web 3. Provides information storage in the Dapp cloud. Sia cloud storage costs less than competitors. The token price is 0.004 dollars, the capitalization is 215 million dollars, and the number of coins is 51 billion. Flux (Flux) is a decentralized platform on Web 3.0, offering unique products at the Amazon Web Service level. The use of Flux allows one to operate, place and maintain servers and also to start Web3 applications. Ocean Protocol . A convenient tool for creating Web 3.0 applications. It is aimed at decentralizing the exchange of information and gaining access to the network. It helps you buy/sell data, and manage the community financing process. The value of the token is $0.22, and the capitalization is 44 million. Audius ( AUDIO ) . An interesting project that will appeal to music lovers. This is a streaming platform whose goal is to reduce contact with the record company. For staking cryptocurrency, tokens and fan votes are issued. The presence of coins provides access to control, additional functions, increased security, etc. Radicle ( RAD ) . Decentralized project on Web 3.0, designed to sponsor different projects and participate in management. The token exchange rate is $1.81, and the capitalization - is $55.6 million. In addition to the above, other tokens can be named, including Casper ( CSPR ), NuCypher ( NU ), Chromia ( CHR ), and others. Web 3.0 tokens can be bought through large exchanges. To do this, you need to register, replenish your (for example) USDT account, choose a suitable pair and go to the cryptocurrency purchase section.
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