Ethereum’s Potential Surge: VanEck Predicts ETH Value to Reach $11.8k by 2030 Amid Booming Smart Contract Adoption

In a recent report, investment management firm VanEck predicts that the Ethereum (ETH) token price could surge to $11,800 by 2030. The forecast is grounded on the revised valuation model estimating that Ethereum’s network revenues will significantly rise from the current $2.6 billion annually to $51 billion by the end of this decade, assuming Ethereum retains a 70% market share among smart contract protocols.

This report’s valuation methodology hinges on the projection of future cash flows. These projections factor in estimated Ethereum revenues, a global tax rate, and a share of the revenue for validators. The cash flow yield is set at 7%, with a 4% long-term crypto growth rate. This results in a fully diluted valuation (FDV) of Ethereum, which is then discounted by 12% to provide an estimate of Ethereum’s current value.

Ethereum’s revenues stem from transaction fees and Miner Extractable Value (MEV). Users bear these costs for using services on the Ethereum blockchain, with a part of these transaction costs allocated to validators and the rest being income for Ethereum. Moreover, Ethereum’s “Security as a Service” (SaaS) model is also highlighted as a potential revenue stream, enabling the securing of external applications, protocols, and ecosystems.

The report also analyzes the potential of various economic sectors, such as Finance, Banking, Payments (FBP), Metaverse, Social and Gaming (MSG), and Infrastructure (I), shifting their activities onto smart contract platforms. Current trends suggest that businesses might cover transaction fees to simplify the user experience, a practice that would mirror traditional business models.

VanEck’s report points out the crucial role of MEV in blockchain security due to its high value and considers Layer 2 (L2) solutions as the future of Ethereum transaction execution, despite the potential competition from numerous L2 chains.

However, the report also acknowledges the uncertainties around Ethereum’s future, reflected in the use of a 12% discount rate in its valuation model. 


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Binance Faces Scrutiny Over Switzerland-Based Sigma Chain in Latest SEC Filing

In the latest court filing by the US Securities and Exchange Commission (SEC) against Binance, the Switzerland-registered crypto-asset trading company, Sigma Chain, is under scrutiny. The filing alleges that Changpeng Zhao (CZ), the CEO of Binance, is the actual owner of Sigma Chain, with multiple Binance employees operating the firm.

The filing also claims that Binance’s back office manager holds a dual role, serving as Sigma Chain’s president and having signatory rights over the bank accounts of BAM Trading. Sigma Chain is portrayed as an active trader on two Binance platforms, self-proclaiming itself as a “major market maker for the Binance exchange.”

Following the launch of Binance.US, CZ reportedly instructed Sigma Chain to become one of its initial market makers. Furthermore, since the introduction of over-the-counter (OTC) and One-Click Buy/Sell (OCBS) services on the Binance.US platform, Sigma Chain has been the counterparty for platform customers, sometimes serving as the sole counterparty.

This development adds to the complexity of the ongoing legal scenario between Binance and the SEC, with potential ramifications for the operation of crypto exchanges and the roles played by affiliated entities. It remains to be seen how this case will unfold in court.


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Ethereum Co-founder Jeffrey Wilcke Moves $41.13M Worth of ETH to Kraken

In a significant cryptocurrency transaction noted a few hours ago, Jeffrey Wilcke, the co-founder of Ethereum, moved a substantial amount of 22,000 Ethereum ($41.13 million) to the popular digital currency exchange, Kraken.

According to sources, this is not the first time Wilcke has made such a move. Records indicate that his last major Ethereum transaction was made almost 29 months ago, on January 6, 2021, when he transferred 15,000 Ethereum to Kraken.

Despite these large transactions, Wilcke’s Ethereum address still holds over 150,000 Ethereum, valued at an impressive $280 million at the time of this report.

The reason for this transfer remains unclear. As with similar high-profile cryptocurrency transactions, this move has led to speculation within the crypto community about potential market impacts.

As of now, it remains to be seen what Wilcke plans to do with this significant sum of Ethereum on the Kraken platform.


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Binance US Faces SEC Accusations Over Alleged Securities Trading Violations

The Securities and Exchange Commission (SEC) has leveled a series of accusations against the US operations of cryptocurrency exchange Binance, casting a significant cloud over the future of the platform in the United States.

In a formal complaint, the SEC claimed that Binance US facilitated trading in a range of tokens identified as securities without the requisite permissions. The assets in question include Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity Shards (AXS), and Coti (COTI).

The SEC’s allegations also extend to investment schemes run by the platform. Binance’s BNB Vault and Simple Earn programs, as well as a staking investment plan, are accused of having operated outside of US regulatory oversight.

The accusations seem to point to a fundamental charge of intentional evasion of US supervision by Binance, a claim that could carry significant implications for the cryptocurrency exchange’s operations within the country.

However, it is important to clarify the nature of these charges. The allegations brought forth by the SEC, as well as those by the Commodity Futures Trading Commission (CFTC), against Binance are civil, not criminal in nature. This marks a distinction from the money laundering charges faced by other exchanges such as BitMEX in previous cases.

The fallout from the accusations is yet to be fully realized, but this could mark a pivotal moment in the ongoing tug-of-war between cryptocurrency exchanges and regulatory bodies. As Binance contends with these accusations, the crypto industry will no doubt be watching closely, aware that the outcome could have far-reaching implications for the future of digital asset trading in the United States.


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SEC Files Complaint Against Binance: A Step Back for Crypto?

The U.S. Securities and Exchange Commission (SEC) filed a complaint today against Binance, a leading cryptocurrency exchange platform, shocking the crypto community. This action seeks, among other remedies, alleged emergency relief, despite the ongoing cooperative dialogue between the two parties.

Binance expressed disappointment over the SEC’s move, emphasizing that the company had been actively cooperating with the commission’s investigations from the beginning. Efforts were made to reach a negotiated settlement to resolve their investigations. However, the SEC opted to abandon this path and instead decided to litigate.

The company stands firm against the allegations and intends to vigorously defend its platform. It laments the SEC’s choice to utilize enforcement and litigation rather than fostering a nuanced approach to the dynamic and complex crypto technology landscape. The SEC’s actions, as per Binance, indicate a conscious refusal to provide clarity and guidance to the digital asset industry.

Binance’s statement also notes that the SEC’s actions potentially undermine America’s role as a global hub for financial innovation and leadership. As digital asset laws remain largely undeveloped across the globe, Binance suggests that regulation through enforcement might not be the best path forward.

In the face of these allegations, Binance maintains that user assets on its platform, including Binance.US, have always been safe and secure. The company asserts that the SEC’s actions seem more aimed at claiming jurisdictional ground rather than prioritizing investor protection.

Binance, despite being at the center of what it describes as a U.S. regulatory tug-of-war, remains committed to cooperation with regulators and policymakers. Although Binance is not a U.S. exchange and the SEC’s actions are limited in reach, the company pledges to stand with digital asset market participants in the U.S. against what it perceives as the SEC’s overreach.

Despite the looming legal battle, Binance reaffirms its commitment to defend this technology from misguided lawsuits and continue to provide a safe, trusted platform for its users, upholding its core value of furthering the freedom of money.

The SEC’s aggressive move against Binance could have far-reaching implications for the cryptocurrency industry and regulatory approach in the U.S. It remains to be seen how this situation will unfold and what impact it will have on the future of digital assets and blockchain technology.


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JPMorgan Collaborates with Indian Banks to Launch Blockchain-Based Dollar Settlement System, Reported Bloomberg

JPMorgan Chase & Co., the American multinational investment bank, has formed an alliance with six Indian banks to inaugurate a blockchain-based platform that will handle interbank dollar transactions within India’s emerging International Financial Centre. This development, initially reported by Bloomberg, showcases the evolving landscape of financial technology (fintech) in India.

Kaustubh Kulkarni, JPMorgan’s Senior Officer in charge of Indian operations and Vice Chairman for the Asia-Pacific region, indicated that the project would enter a pilot phase in the upcoming months. This period is crucial for gauging the experience and adaptability of the participating banks, which include private sector entities like HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., IndusInd Bank Ltd., and also JPMorgan’s banking division in GIFT City.

Upon obtaining approval from the International Financial Services Centre Authority, the pilot project will commence this coming Monday, utilizing JPMorgan’s proprietary blockchain platform, Onyx.

The present settlement system poses certain challenges, including potential delays that could stretch to several hours for settlement completion. Moreover, transactions are currently not processed on Saturdays, Sundays, or public holidays. The introduction of a real-time, blockchain-supported system has the potential to eliminate these constraints, offering round-the-clock transactional availability – a significant improvement in efficiency and convenience for the banking sector.

This pioneering initiative further propels the Indian government’s efforts to establish Gujarat International Finance tech -City (GIFT City) as an influential trading center. It echoes the ambition to compete with well-known international hubs like Singapore and Dubai, underlining India’s commitment to becoming a significant player in the global fintech arena.


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All Nippon Airways Jumps into the NFT Space

According to simpleflyingJapan’s largest airline group, All Nippon Airways (ANA) Group, has announced its venture into the Non-Fungible Token (NFT) market, following other airlines including airBaltic, Qantas, and Etihad Airways. ANA’s bold move, launched via its subsidiary, ANA NEO, signals the latest phase of the ongoing trend of airlines utilizing blockchain technologies.

NFTs, unique digital tokens stored on blockchain, have exploded in popularity over the past year, gaining traction primarily in the arts and music sectors. Now, the aviation industry is jumping on board, exploring how these digital assets can provide additional value and engagement opportunities to their customer base.

Following the trend initiated by Etihad Airways with their “EY-ZERO1” collection, featuring 3D models of their Boeing 787 Dreamliner liveries, ANA is set to release a range of aviation-themed NFT products. The key platform for these initiatives will be the “ANA GranWhale NFT MarketPlace”, a part of ANA NEO’s virtual travel platform.

The move towards a more immersive, digital travel experience is reflected in the emergence of the ‘metaverse’, a virtual reality space where users can interact in a simulated environment. ANA’s decision to leverage its virtual travel platform, ANA GranWhale, to launch their NFT business showcases the company’s innovative approach towards providing unique customer experiences in this emerging digital space.

At launch, ANA offered 267 NFTs for sale, including works by aviation photographer Luke Ozawa, each costing $717 USD. The company plans to expand its offerings, with over 1,500 additional NFTs set to go on sale, including two digital 3D renderings of ANA’s Boeing 787s.

While ANA is the latest airline to move into the digital asset market, it certainly isn’t the first. airBaltic, for instance, has been at the forefront of embracing blockchain technology, accepting Bitcoin as a payment method since 2014, and launching its own NFT collection in 2021. Etihad Airways and Qantas have also entered the space, offering their own unique collections of digital assets.


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Uniswap Founder Reveals Sophisticated Scam Targeting the Chinese Community

Uniswap’s founder, Hayden Adams, recently took to Twitter to expose an elaborate scam targeting the Chinese cryptocurrency community. The scam involves a fake fork of the Uniswap website and purportedly features a one-hour Zoom recording with individuals impersonating Uniswap executives.

Adams clarified that neither he nor any official representatives from Uniswap or the Uniswap Foundation had any connection to the suspicious activities unfolding on the platform. “Video is nuts. No idea who any of those people are. Def not associated with @Uniswap or @UniswapFND. Assuming it’s some sort of scam,” he tweeted.

In a subsequent tweet, the Uniswap founder outlined the extent of the effort put into the scam. “Some next level effort went into this scam. They built a fork of our website (domain takedown pending) that adds Chinese community content and links to the real Uniswap app. And did an hour long zoom recording with real fake Uniswap execs,” Adams noted.

While details about the full extent of the scam are still coming to light, it appears that the perpetrators went to great lengths to lend credibility to their actions. They not only created a replica of the Uniswap website but also added Chinese-specific content, targeting one of the world’s most significant cryptocurrency markets.

Furthermore, by linking to the actual Uniswap app, the scammers likely intended to give the appearance of legitimacy to unsuspecting users. This kind of scam, often referred to as phishing, aims to trick individuals into providing sensitive information or transferring assets under false pretenses.

Uniswap and its founder have now alerted the community and are reportedly taking necessary actions to tackle the scam, including domain takedown proceedings. Cryptocurrency users are urged to be cautious when interacting with unverified platforms or persons claiming to represent established entities.


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