Day: July 17, 2022

Crypto Market Resurgence: Two Altcoins Promising a Better Week Ahead

by Blockchain News

The digital currency ecosystem is trailing a bullish path today as a positive sentiment has been sweeping around the industry with increasing stack up recorded over the weekend.

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As evidence of the current outlook, the combined crypto market cap is up 3.29% to $966.41 billion at the time of writing.

With weekends often characterized by bearish events, the ongoing upsurge could be evidence of a better week ahead. Should these projections be true, here are the two altcoins that are likely to fuel this growth.

 

Ethereum (ETH)

 

Ethereum still retains its stance as the largest smart contract blockchain protocol to date, and it is amongst the most trusted coins to lead a great charge for the future of coins. The digital currency is currently trading at a price of $1,351.81, up 9.27% in the past 24 hours per data from CoinMarketCap.

 

The Ethereum ecosystem is about to be transformed as developers within the community unanimously agreed that September 19 will be the date for The Merge. The Merge described the transitory point when Ethereum as a Proof-of-Work network will switch to a Proof-of-Stake consensus model.

 

Beginning from now till the Merge occurs, investors are likely to continually stack up on the coin seeing Ethereum is bound to take a new lease of life.

 

ApeCoin (APE)

 

ApeCoin is the native token of the Bored Ape Yacht Club (BAYC) ecosystem and has a very strong developmental backing from the iconic Yuga Labs team. 

 

The token is changing hands at $5.04, up 10.49% over the past 24 hours, and while a cooling period is beckoning, the digital token still has a massive propensity for growth. By recently integrating with the Polygon Network, it has been able to resolve one of its most crucial challenges of a high gas fee.

 

In reality, when the crypto winter will be rolling over, and investors are exploring metaverse tokens to bank on, ApeCoin, with its iconic franchises and community, is bound to be amongst the most notable that will be chosen.

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Buying Pressure Builds up on Ethereum Network, Pushing Price Above $1,300 Amid Merge News

by Blockchain News

Ethereum (ETH) experienced notable momentum that drove the price above $1,300 after news of the much-anticipated merge made the airwaves.

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The second-largest cryptocurrency based on market cap was up by 13.35% in the last 24 hours to hit $1,358 during intraday trading, according to CoinMarketCap. 

 

The merge is expected to transition the Ethereum network to a proof-of-stake (PoS) consensus mechanism from the current proof-of-work (PoS) framework, which has been elusive for a few years.

 

Previously, Ethereum researcher Justin Drake revealed that the merge was likely to happen in August because testing was in the final round. 

 

Nevertheless, during a recent developers’ call, September 19 emerged as the most probable date for the transition. It was stipulated:

“Merge two weeks later (Sept 19th).”

An Ethereum Beacon Chain community health consultant, however, hinted that the merge date was not final and said:

“This merge timeline isn’t final, but it’s extremely exciting to see it coming together. Please regard this as a planning timeline and look out for official announcements.”

Therefore, this news made the ETH market rally powerfully. On-chain insight provider Glassnode explained:

“Ethereum markets have rallied strongly off the back of a large short squeeze in futures markets. Over $98M in short futures positions were liquidated in one hour, pushing ETH prices up by 12.5%.”

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Source:Glassnode

 

The merge is estimated to be the biggest software upgrade in the Ethereum ecosystem because the PoS algorithm will allow the confirmation of blocks in a more energy-efficient way. Therefore, validators are required to stake Ether instead of solving a cryptographic puzzle. 

 

A DeFi educator under the pseudonym Korpi recently opined that the merge would be a game-changer because it would shift the selling pressure experienced in the Ethereum network. After all,  structural supply will change to structural buying.

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Blockchain Technology can Radically Revamp Government Structures, Cardano Founder Says

by Blockchain News

Blockchain technology has the capability of revolutionizing government structures from the whelms of archaic processes to modern ones, according to Cardano founder Charles Hoskinson. 

Speaking on Yahoo Finance’s The Crypto Mile, Hoskinson disclosed that blockchain technology promises to generate better governance on a global scale. 

 

For instance, this cutting-edge technology can create a tax revenue system that is open source, enabling everyone to see the origin and destination of the money collected.

 

He pointed out:

“The point of cryptocurrencies and blockchain technology is to take those resources that should be a public good, and if they’re digitizable, get them into a situation where they’re completely open, and basically then build businesses on top of that. But the underlying infrastructure is no longer controlled.” 

As society transitions into a global one, Hoskinson believes blockchain can enhance interconnection by enabling secure and seamless data transfer. He added:

“In a global society, you don’t want one actor to have complete control over critical things and resources.”

Blockchain enhances transparency, which plays an instrumental role in boosting public accessibility. Hoskinson stated:

“The poorest and most vulnerable person in society has equal access as the president of the US, and there has never been a time in human history that that has been the case.”

Additionally, the autonomy presented drives away the worry of having one controlling entity. Hoskinson added:

“Instead, you have a situation where no one entity is in control. It is a better way of doing things with less friction, fraud, waste, and abuse, and more transparency and ultimately less consolidation of power.”

Meanwhile, the value of the global automotive blockchain market is anticipated to hit $2.23 billion by 2027, according to a study by Research and Markets.

 

Therefore, blockchain technology is expected to streamline procedures by rendering immutable storage to curb fraudulent activities like tampering with vehicle mileages. 

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Bitcoin Hodlers are Unwilling to Spend at Lower Prices as Most Coins Remain Untouched

by Blockchain News

Despite the bearish momentum experienced in the Bitcoin (BTC) market, long-term hodlers remain steadfast because they are not selling.

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Market insight provider Glassnode explained:

“Over 80% of the total USD denominated wealth invested in Bitcoin has been hodled for at least 3-months. This signifies that the majority of the Bitcoin  supply is dormant, and hodlers are increasingly unwilling to spend at lower prices.”

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Source:Glassnode

 

This correlates with the fact that Bitcoin’s balance on exchanges recently reached a 4-year low. BTC leaving crypto exchanges symbolizes a hodling culture, given that coins are often transferred to cold storage and digital wallets for future purposes other than speculation. 

 

Therefore, hodling continues to be a favored strategy in the Bitcoin market.

 

On the other hand, signs of a Bitcoin bottom have not yet popped up, despite the leading cryptocurrency continuously consolidating around the psychological price of $20K.

 

Market analyst under the pseudonym Tajo Crypto pointed out:

“No one knows what price Bitcoin will bottom, but after Bitcoin hit $17K on June 18th, Bitcoin hasn’t retested that level. There’s no guarantee that $17K is the bottom, but Bitcoin has dropped massively and could bottom at any point and start reversing. Many will be taken unawares.”

Glassnode recently shared similar sentiments that more time was needed for a resilient bottom to be formed. The market insight provider stated:

“For a bear market to reach an ultimate floor, the share of coins held at a loss should transfer primarily to those who are the least sensitive to price, and with the highest conviction.”

Glassnode believed that most BTC held at a loss had to be transferred to long-term holders for an ultimate floor to be formed.

 

Bitcoin oscillated around $21,395 during intraday trading, according to CoinMarketCap.

 

Meanwhile, the Bitcoin Lightning Network continues scaling heights after hitting a new all-time high (ATH) of 4,208 BTC. 

 

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Source:Glassnode

 

The growth witnessed on the Lightning Network is happening amid Bitcoin’s price being on shaky grounds, suggesting that the development for adoption continues to take shape. 

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Allison Herren Lee Steps Down as US SEC Commissioner

by Blockchain News

Democrat Allison Herren Lee stepped down from her position as a Commissioner of the US Securities and Exchange Commission (SEC) on Friday after serving the regulator for three years.

In a statement, her fellow commissioners said: “Allison has been a stalwart advocate for strong and stable markets, including by emphasizing the need for market participants to maintain the highest ethical standards. She has been a champion for stronger climate disclosures, whistleblower protections, and individual accountability for violations of the securities laws.”

Lee was nominated by President Trump to fill one of the Democratic seats on the commission in the spring of 2019. She was confirmed in July of that year.

Lee started working at the SEC in 2005, where she served various roles including being a counsel to former Commissioner Kara Stein and a senior counsel in the Division of Enforcement’s Complex Financial Instruments Unit.

Lee also briefly served as acting SEC chairperson under President Biden from January 2021 until Gary Gensler was appointed in April to fill the role on a permanent basis.  

Her departure follows SEC Republican commissioner Elad Roisman, who vacated his seat in January of this year.

In June, Mr. Mark T. Uyeda was appointed by the Biden administration to fill up the Republican seat vacated by former commissioner Elad Roisman. Lee’s departure has given the Biden administration another open seat to fill at the SEC.

The SEC is now left with just four members: Mr. Gensler, Democrat Caroline Crenshaw, Republican Hester Peirce, and Republican Mark T. Uyeda.

The commission normally operates with five members. President Biden will need to nominate another Democrat to fill an open seat vacated by Lee.

Lee has been a vocal proponent of the SEC mandating climate-related disclosures for public companies as well as investment firms, broker-dealers, and investment advisers. She also argued in favor of enhanced disclosures concerning other environmental, social, and governance (ESG) matters and political contributions.

Lee recently supported a proposed rule for enhanced disclosures for private equity and hedge funds. She also recently encouraged the SEC to create a better system to hold securities lawyers accountable for providing bad advice to their public company clients.

In her public remarks, Lee expressed skepticism surrounding the crypto market. In March, she said digital assets mostly defy existing regulations and laws.

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Duma Approves Bill Placing a Ban on the Use of Digital Assets in Russia

by Blockchain News

Russian President Vladimir Putin has signed a bill addressing the ban on the use of digital financial assets (DFA) for payments. 

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The bill which was passed to the Russian Assembly also known as the State Duma was approved on July 8. It is also an amendment to the previous bill passed in 2020 which banned cryptocurrencies from being used in payments. 

 

The new bill had already been considered by the Federation Council and the Upper Chamber of Parliament. Both chambers are meant to approve any bill before it can finally be signed by the President of Russia.

 

Two years ago, a digital assets law was drafted to ban the use of cryptocurrency for payment in Russia. The bill regards any form of digital asset payment as illegal and punishable. 

 

The authorities were also mindful of the financial instability that the use of crypto would cause. Meanwhile, in February 2022, the Russian government announced its schemes to regularize cryptocurrency in the country. The scheme was to put strict rules to safeguard investors against the risk of crypto investments.

 

The Ministry of Finance, Rosfinmonitoring, the Bank of Russia, the Ministry of Internal Affairs, the Federal Security Service, the Federal Tax Service, the Ministry of Economic Development, and the Prosecutor General’s Office all partook in the debate that birthed the plans to regulate digital assets trade. Although the Central Bank of Russia (CBR) was still pushing for the government to ban the digital asset. 

 

Russia is Now Under Global Scrutiny

 

For a while, the country has been under the eyes of authorities due to certain crypto crimes connected to Russia. 

 

International organizations including the European Union issued a ban on Russia and this caused many others to stay away from the estranged country. Binance, the world’s largest cryptocurrency exchange pulled most of its services from Russians. Mastercard, a leading financial service provider disconnected its payment system from Russia as a penalty for remaining resolute in its invasion of Ukraine.

Even though Russia seems not open-handed about crypto as the signed bill connotes, it is suspected that the country is making use of crypto to evade sanctions.

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Ethereum 2.0: The Merge is Scheduled to go Live on Sept 19

by Blockchain News

Against the earlier projected August timeline, developers are in agreement on the much anticipated Ethereum  (ETH) transition, the Merge to be inked on September 19. 

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The date was suggested by Tim Beiko, the lead organizer of core developers at the Ethereum Foundation during a Consensus Layer call held this past Thursday. Although no objection to the date was raised, Beiko opined that it is still a tentative date and is subject to adjustment if the need arises.

 

Ethereum, the world’s second-largest cryptocurrency by market capitalization currently utilizes the proof-of-work (PoW) consensus mechanism. The PoW has a couple of criticism including the quantity of energy harnessed by the system and its effect on the environment. The Merge is a transition of the ETH Proof-of-Work to a Proof-of-Stake (PoS) model. It is currently getting tested on a few public testnet before finally moving to the ETH Mainnet.

 

Twitter user, Superphiz.eth, one of the developers attested to the fact that Beiko’s suggestion is not concluding but only a roadmap. He took to his Twitter page to encourage observers to look out for the official announcement. 

Per his tweet;

“This merge timeline isn’t final, but it’s extremely exciting to see it coming together. Please regard this as a planning timeline and look out for official announcements!”

In the few weeks left before the Merge, large amounts of carbon will still be emitted into the atmosphere and will cause consequential damage to the environment. 

According to another developer Ben Edgington, “There are very real costs associated with not doing the merge: 130,000 tons of carbon dioxide every day, It’s nearly a million tons a week. Every week we twiddle our thumbs, that’s a megaton of carbon dioxide we´re emitting.”

What Happens After The Merge?

After the transition is finalized, the newly installed PoS consensus mechanism will reduce the number of carbon emissions up to 99% by slashing the blockchain energy consumption during mining. 

Also, the ETH scaling solution will experience an upgrade that will likely involve Sharding, a type of database partitioning into smaller and faster pieces. With the PoS, the Ethereum blockchain will hit a pass on security, sustainability, and scalability.

It is worthy of note that the upscaling to the PoS consensus will not immediately mean a reduction in the transaction gas fee. It is not an increase in network capacity but only a transition in the consensus mechanism. Also, staked withdrawal is yet to be enabled with the Merge. Therefore, withdrawals might not be possible immediately after the Merge until the Shanghai upgrade which comes after the Merge.

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Use of Crypto Mixers Reaches ATH in 2022: Chainalysis Report

by Blockchain News

Blockchain analysis firm, Chainalysis has released a report on the doubled use of crypto mixers this year with illicit addresses responsible for about 10% of the total usage.

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Based on the report, even with the daily value fluctuations encountered by the mixers, the 30-day moving average attained an all-time high (ATH) of $51.8 million worth of cryptocurrency. 

This was already the case in April this year. The incoming volume of crypto doubled when compared to the value in 2021. While mixers are not illegal, their skyrocketing use may make the strategy obsolete soon as Chainalysis said it is developing a tool to track funds entering into mixers.

 

Crypto mixers are powerful cryptocurrency tools used to provide privacy for crypto operations. They redirect the source of funds in a bid to confuse those tracking the flow. The primary design of crypto mixers is not necessarily for criminal reasons but for investors’ protection. Misuse has made it a tool for scammers and other cyber criminals to trick investigators.

 

Mixers create a disconnection between the funds deposited by investors and the fund withdrawn at the end of the day. 

 

This makes it difficult to follow the flow and the source of the funds. Funds from several users are gathered together in a pool and mixed in a way that the users receive a jumbled set of funds. Meanwhile, the purpose of making use of a mixer could be defeated if a single user put huge funds into the mix. It works better when several users put a considerable amount of funds as a single large transaction would render the tool ineffective.

 

Cyber Criminals Utilize Crypto Mixers

 

Criminal use of the mixers is partly because the tool hardly requests for know-your-customers (KYC) data. 

 

Hence, Chainalysis’ quest to demix many of these transactions and locate the direct source of funds is often complicated and somewhat unsuccessful. Regulators and security agencies are also looking into the use of crypto mixers and how to regulate its operations to comply with anti-money laundering schemes. 

 

The United States Treasury Department sanctioned Blender.io, a North Korean mixer confirmed to be part of several hacking crimes. Recall the Lazarus Group attack on Axie Infinity Ronin Bridge that led to a loss of about $625 million worth of crypto, Blender.io was discovered to be the platform through which about $20.5 million of the stolen funds was laundered through.

 

Blender.io over the years has been responsible for the transfer of over $500 million of Bitcoin 

(BTC) and is actively under the radar of the US watchdog.

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Bitcoin (BTC) $ 26,562.12 0.41%
Ethereum (ETH) $ 1,632.85 0.86%
Litecoin (LTC) $ 64.21 0.84%
Bitcoin Cash (BCH) $ 235.53 2.99%