In the last 17 days, the value of artificial intelligence (AI) cryptocurrency assets has soared, with a significant addition of .21 billion to their overall market value. This surge aligns with the unveiling of Openai’s latest innovation, a generative AI-powered application capable of converting text into video. AI Cryptocurrency Sector Explodes With 142% Growth Following […]
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Worldcoin (WLD) Just Added 170% To Its Value – What’s Going On?
Worldcoin (WLD), a blockchain-based project fueled by biometric verification, has ignited a firestorm of investor interest, skyrocketing 170% in the past week to reach a record high of .48. This meteoric rise stands out against a backdrop of sluggish performance in many other altcoins, prompting questions about the driving forces behind this surge and its potential for longevity.
Worldcoin: Bullish Metrics And AI Hype Fuel The Flames
Several factors appear to be stoking the flames of Worldcoin’s current momentum. Trading volume has soared an impressive 44% to nearly 0 million, propelling the token into the top 10 by volume despite languishing at 91st place in market capitalization. This hyperactive trading suggests strong investor interest and hints at further growth potential.
Adding to the excitement, Worldcoin boasts over 1 million daily active users on its World App, signifying significant adoption. Moreover, the project basks in the reflected glory of its association with OpenAI, the renowned artificial intelligence (AI) research lab co-founded by Worldcoin’s creator, Sam Altman.
The recent release of OpenAI’s cutting-edge text-to-video generator, dubbed Sora, has generated a wave of positive sentiment towards Worldcoin, potentially spilling over to boost its token price.
Privacy Concerns Cloud The Horizon
However, Worldcoin’s path to success is not paved in gold. Regulatory scrutiny looms large, casting a shadow over its iris-scanning verification method and potential privacy violations. European countries, Argentina, Kenya, and Hong Kong have expressed concerns about this technology, raising the specter of regulatory roadblocks that could hinder future adoption and derail the project’s long-term goals.
Alameda’s Shadow Adds A Layer Of Uncertainty
Another layer of uncertainty comes from Alameda Research, a major cryptocurrency investment firm. Alameda currently holds a significant portion of WLD tokens, valued at a staggering 6 million, representing a whopping 33% of its portfolio.
While this investment signifies potential confidence in Worldcoin, Alameda’s recent history of liquidating holdings in other cryptocurrencies casts doubt on their future plans with WLD. Their intentions remain shrouded in secrecy, adding a layer of speculation to the current price rally.
Can Worldcoin Overcome The Hurdles?
Only time will tell whether Worldcoin can overcome these challenges and navigate the treacherous waters of the crypto market. While the project boasts impressive user numbers and an exciting association with OpenAI, regulatory concerns and questions about Alameda’s motives pose significant risks.
Investors should carefully consider these factors and conduct their own research before placing bets on Worldcoin’s future. The coming months will be crucial for the project, as it navigates regulatory scrutiny, addresses privacy concerns, and clarifies the intentions of its major investors. Whether Worldcoin will emerge as a true innovator or fade into obscurity remains to be seen.
Featured image from iStock, chart from TradingView
Bluechip Gives Synthetix and Beanstalk Stablecoins F Grades; Tokens Added to the ‘Red Flag List’
On Feb. 1, 2024, the independent, nonprofit stablecoin assessment entity Bluechip made a noteworthy declaration. They officially bestowed an F grade upon Synthetix’s fiat tokens SUSD and SEUR, alongside Beanstalk’s dollar-pegged asset BEAN. Bluechip went on to reveal that both of these stablecoins have been included in the organization’s “Red Flag List,” signaling a strong recommendation against utilizing these particular stablecoin tokens.
SUSD, SEUR, and BEAN Graded F by Stablecoin Rating Organization Bluechip
As per a statement shared on the social media platform X, Bluechip has issued an F rating for Synthetix’s and Beanstalk’s fiat-backed cryptocurrency assets, namely, SUSD, SEUR, and BEAN. These stablecoins join Tron’s USDD stablecoin, which also received an F grade in Bluechip’s June 3, 2023, assessment of USDD.
“Today, we are assigning an ‘F’ grade to the following stablecoins,” Bluechip stated on Thursday. “Synthetix tokens like SUSD and SEUR [and] BEAN by Beanstalk. These tokens are part of Bluechip’s Red Flag List, a list of stablecoins that have triggered a red flag outlined in our framework.” The stablecoin rating agency added:
Synthetix tokens like SUSD and SEUR — Stablecoins like SUSD are minted by staking SNX at a collateral ratio of 500%. SNX is not only the collateral but also the native token issued by Synthetix. SNX is classified as endogenous collateral for SUSD, triggering a red flag. Moreover, these stablecoins cannot be redeemed for the underlying SNX. Holders depend on liquidity pools to exit from Synthetix stablecoins to other assets.
Bluechip also said when the price of BEAN falls below its intended , the protocol borrows tokens from holders and subsequently burns them to diminish the supply. Conversely, when BEAN exceeds the mark, new tokens are generated to augment the supply. “BEAN is not backed by any reserves, triggering a red flag,” Bluechip added.
“Governance rights are earned by depositing whitelisted assets,” the nonprofit continued. “However, voting is done off-chain, with decisions implemented by a multi-sig of anonymous contributors. The multi-sig also has unrestricted control over smart contracts as governance enforcement doesn’t exist.”
In the summer of 2023, Bluechip emerged onto the scene, with its founders including Garett Jones, an associate professor of economics at George Mason University, and two innovators behind the SMIDGE rating framework employed by Bluechip. Within their evaluation spectrum, as of Feb. 2, 2024, three stablecoins have garnered an A rating, while two secured an A-. Additionally, five tokens earned a B+ grade, one received a C, and a total of six fiat or gold-backed coins landed with a D rating.
What do you think about the F grades Bluechip gave to SUSD, SEUR, and BEAN? Share your thoughts and opinions about this subject in the comments section below.
EU Provisional Agreement: Crypto Asset Service Providers Added to Obliged Entities List
As per the provisional agreement struck between the European Union Council and Parliament, crypto asset service providers will be obliged to verify facts and information on users whose transactions exceed ,090. According to the Belgian Finance Minister, the new requirements will “ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.”
New Measures Mitigate Risks Associated with Self-Hosted Wallets
According to a provisional agreement between the European Union (EU) Council and Parliament, crypto asset service providers (CASPs) will now feature in the list of obliged entities that are required to “conduct due diligence on their customers.” This means CASPs need to verify facts and information on users whose transactions exceed ,090 or €1000.
In its Jan. 18 statement, the Council of the EU claimed that the due diligence, which also includes reporting suspicious activity, “adds measures to mitigate risks in relation to transactions with self-hosted wallets.” The statement also explains why the council and parliament agreed to add CASPs to a list which already includes banks, casinos, real estate agencies, and asset management services.
Commenting on the proposed changes to existing regulations, the Belgian Finance Minister Vincent Van Peteghem, said:
“This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organised and work together. This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.”
Under the provisional agreement, traders for items such as luxury cars, airplanes, yachts, and cultural goods also become obliged entities. In addition, professional football clubs also become obliged entities. However, according to the statement, EU members can still remove the football sector if they perceive it to be a low risk.
New Cash Payment Limit
Meanwhile, the statement also revealed that members will be required to impose a cash payment limit of nearly ,000. By restricting the value of cash payments, the EU aims to “make it harder for criminals to launder dirty money.” The statement also revealed new cash payment thresholds for occasional crypto users.
“In addition, according to the provisional agreement, obliged entities will need to identify and verify the identity of a person who carries out an occasional transaction in cash between €3,000 and €10,000,” the Council of the EU said.
The council’s statement also outlined the responsibilities of member states’ respective financial intelligence units (FIU). It said each unit would be given “immediate and direct access to financial, administrative, and law enforcement information.” This information can include crypto transfers, national motor vehicles, and customs data.
Following the agreement between the Council and Parliament, the text of the provisional agreement is now set to be presented to member states’ representatives and the EU for approval.
What are your thoughts on the European Union’s latest anti-money laundering rules? Let us know what you think in the comments section below.
Binance 2023 Report Reveals: 40 Million New Users Added, Total Registered Users Reach 170 Million
In its recently released 2023 review report, Binance, the world’s leading cryptocurrency exchange, showcased significant growth despite facing legal disputes and regulatory scrutiny.
The report highlighted the evolving crypto market, increasing institutional interest, and the company’s commitment to compliance and user experience.
Binance’s 2023 Review
Despite a volatile year for the market, Binance emphasized that digital asset regulation had taken a direction toward greater clarity and harmonization in some regions.
The exchange acknowledged the challenges but noted that Web3 adoption and institutional interest continued to grow steadily, demonstrating the industry’s resilience and long-term potential.
Regarding growth within the company, Binance Square, formerly known as Binance Feed, was introduced as a social platform designed to be the central hub for Web3 content.
According to the report, the platform experienced substantial growth, expanding from 1,200 to 11,000 creators and attracting over 1.6 million active daily users. Binance Square aimed to facilitate conversations and enable users to generate “compelling content,” fostering engagement within the Web3 community.
In October, Binance Futures launched its Copy Trading feature, allowing users to replicate the trading strategies of expert lead traders. This feature provided a monetization avenue for trading experts and added a social aspect to the trading experience of the platform users.
Furthermore, Binance continued its support of fiat currencies, reaching 69 supported fiat currencies with 30 fiat channels available globally.
Binance P2P, the peer-to-peer trading platform, expanded the number of supported payment methods to 970 and fiat currencies to 112. The report highlights that the platform facilitated 18% more trades with 39% more users than the previous year.
The report further noted Binance’s commitment to compliance, with a significant investment of 3 million in its compliance program, a 35% increase from the previous year.
Binance allocated substantial resources to develop in-house compliance tools, including a case management system and an internal transaction monitoring engine.
Is Binance Leading The Way In Crypto Venture Funding?
Per the report, in 2023, Binance focused on enhancing user experience by partnering with localized KYC (know-your-customer) vendors and implementing various electronic ID (eID) solutions globally.
The exchange added support for 298 new ID and proof-of-address documents across 64 countries, streamlining the onboarding process for users.
To make Web3 “more accessible,” the report notes that Binance launched its Web3 Wallet, which aims to provide a “secure” gateway into the world of decentralized finance (DeFi). The platform aimed to address usability barriers and attract new users by offering improved product and user experience across DeFi, blockchain gaming, and SocialFi.
Ultimately, while the crypto venture funding market faced challenges in 2023, Binance Labs emerged as one of the most active participants in the crypto venture capital (VC) space, particularly in the DeFi and Web3 gaming sectors, according to the exchange.
Overall, Binance’s 2023 Review Report highlights the company’s focus on compliance, user experience, and expanding Web3 offerings as key to continued growth despite ongoing legal issues and regulatory enforcement actions.
As of the current update, Binance Coin (BNB) demonstrates a significant upward trend in price action, surging to 0. This surge represents a 21% increase over the past seven days.
Featured image from Shutterstock, chart from TradingView.com
Ethereum Inflation Rises as Onchain Activity Declines; $35.31M Added in 17 Days
Ethereum’s shift from a deflationary to an inflationary model has witnessed a 0.178% uptick in the last 17 days. During this period, the network added 22,502 ether, valued at .31 million, to its total supply.
Ethereum’s Growing Inflation Fueled by Onchain Downturn
Previously, Ethereum maintained a deflationary stance, primarily due to the London hard fork’s EIP-1559 and the notable shift from proof-of-work (PoW) to proof-of-stake (PoS). Yet, the past few months saw a marked decline in onchain activities.
Consequently, the EIP-1559’s fee-burning mechanism has been torching fewer ethers. Just 17 days back, Ethereum’s issuance rate was slightly inflationary, standing at 0.270% annually. But as of now, it hovers around 0.448%, marking a rise of 0.178%.
Fast forward to September 24, 2023, the total ether supply was 120,228,449. Fast track to 11:00 a.m. Eastern Time on October 11, 2023, and this figure has surged to 120,250,951. This increase translates to an addition of 22,502 ether, valued at .31 million, reinforcing the amplified inflation rate.
Ethereum’s daily transaction rate has been stagnating, with layer two (L2) platforms chipping away at its activity. Data from bitinfocharts.com on Wednesday reveals that Ethereum’s average transaction fee is 0.0012 ETH or .83, a low not seen since December 2022.
Diving deeper, the network’s median transaction fee stands at 0.00046 ETH or .726, as per bitinfocharts.com. As of October 11, ultrasound.money indicates a burn rate of 0.57 ETH per minute, with 5,783.55 ETH annihilated in the past week alone.
Ultrasound.money underscores that a staggering 3,633,752 ether has been burned since EIP-1559’s inception 797 days ago, averaging a burn rate of 3.17 ETH per minute. In the last week alone, the supply saw an addition of 10,321 ETH.
However, had PoW remained in play, this figure would have surged to 88,724 ETH within a week, as illustrated by the web portal’s simulated PoW data.
What do you think about Ethereum’s inflation rate increasing? Share your thoughts and opinions about this subject in the comments section below.
Over 680,000 Ethereum Added to Liquid Staking Protocols in Just 28 Days
In less than a month, despite a downturn in cryptocurrency markets, over 680,000 ethereum (ETH) has been added to liquid staking derivatives protocols. Lido Finance, the leading liquid staking platform, experienced a supply increase of 5.94%, surging from 7.91 million to 8.38 million ETH since July 29.
Ether Held in Liquid Staking Jumps From 10.65 Million to 11.33 Million in Less Than a Month
Over the previous 28 days, a collection of 25 liquid staking derivatives protocols witnessed more than 680,000 ETH added. On July 29, 2023, liquid staking applications held about 10.65 million ETH; today, this figure has climbed to roughly 11.33 million. Lido maintains a dominant 73.98% market share with its 8.38 million ETH stake following the near-6% increase.
Among the total of over 680,000 ETH contributed during the past 28 days, Lido received an influx of about 470,000 ETH. Back on July 29, Coinbase’s liquid staking derivative product held approximately 1.17 million ether; today, it stands at around 1.22 million. Rocket Pool experienced an increase from holding about 857,967 ETH to now possessing about 901,072 ETH within the same time frame. Lido, Coinbase, and Rocket Pool lead the pack followed by Frax Ether (approximately 254,692 ETH) and Eigenlayer’s liquid staking platform (roughly 100,025 ETH).
Last month witnessed Binance Pool achieving a significant rise of nearly 29.2%, reaching around 92,824 ETH in its stakeholding over a span of thirty days. Currently holding around 93,504 ETH suggests a meager 0.73% rise in its stake in the previous four-week period. Liquid staking tokens have notably gained popularity over the past couple of years — a stark contrast from just two such protocols existing at the beginning of January 2021.
Liquid Staking Accounts for Nearly 10% of All the Ether Circulating Today
Employing liquid staking protocols confers various benefits. Users avoid technical hurdles in setting up and managing validator nodes, while also facing reduced risk from penalties or errors due to mismanagement. Furthermore, liquid staking allows immediate liquidity via staked tokens, making participation accessible to users who don’t want their assets locked. This inclusive feature simplifies the staking process for all.
Nevertheless, it is important to note that liquid staking tokens do carry risks. A primary risk linked with liquid staking is de-pegging — when the locked token and its derivative have differing values. Decentralized exchanges use arbitrage mechanisms to maintain a peg for liquid staking tokens. However, if the total value locked (TVL) in liquidity pools drops steeply, this can disrupt arbitrage incentives and cause the token to lose its peg.
Should the TVL in liquidity pools deplete, the token risks losing its peg, leading to significant slippage during asset swaps. Yet, the allure of liquid staking has remained strong for decentralized finance enthusiasts, who persistently contribute ether to these liquid staking derivatives platforms. Statistics show that the 11.33 million ether locked today makes up 9.42% of the 120.21 million circulating ethereum in existence.
What do you think about the 680,000 ether added to liquid staking derivatives protocols over the last 28 days? Share your thoughts and opinions about this subject in the comments section below.
Over 440,000 Ethereum Added to Liquid Staking Derivatives in Two Weeks
In less than two weeks, the total value locked (TVL) in liquid staking derivatives has increased by 441,110 ether, worth roughly 3 million. While Lido Finance dominates the market with 74.35% of the TVL, competing liquid staking protocols Rocket Pool and Frax Ether have recorded double-digit gains of 34% to 42% in the past 30 days.
Number of Ethereum Locked in Liquid Staking Derivatives Nears 9 Million
Liquid staking protocols continue to grow, with the top decentralized finance (defi) protocols recording an additional 441,110 ethereum (ETH). As of May 12, 2023, the total value locked (TVL) in liquid staking derivatives (LSDs) stands at 8,872,715 ether, equivalent to .101 billion. This marks a significant increase from the 8,431,605 ethereum locked in liquid staking protocols on April 30. In just 12 days, the number of ether deposits surged by an impressive 5.23%.
Despite the recent addition of 441,110 ethereum, the TVL in LSDs is currently worth less than it was on April 30, owing to ethereum’s decline in market value. Back then, the TVL held in LSDs was valued at .139 billion, making today’s numbers a 0.235% loss, standing at .101 billion. Notably, Lido dominates the market with a 74.3596% share, accounting for 6.59 million ETH of the 8,872,715 ether locked in today. The second-largest LSD protocol is Coinbase Wrapped Staked Ether, with 1,145,137 staked ether.
This week, Lido’s TVL jumped by 4.87%, while Coinbase’s staked ETH value dipped by 1.47%. Rocket Pool witnessed an increase, with its TVL jumping by 5.27%. Frax Ether and Stakewise also saw gains, recording a 5.21% and 0.48% increase, respectively, in just seven days. Looking at the 30-day metrics, Lido’s value locked rose by 11.10%, while Coinbase’s staked ETH TVL saw a 3.95% reduction. Frax and Rocket Pool emerged as the 30-day leaders, with Rocket Pool surging by 34.37%, and Frax recording a 42.55% increase.
Rocket Pool is closing in on Coinbase in terms of the number of staked ETH, with 622,633 ETH locked, while Frax Ether only has 187,551 ETH locked. However, Rocket Pool’s deposits would have to grow by 84%, or more than 523,000 ETH, to surpass Coinbase’s number of staked ETH locked into the protocol.
What do you think the future holds for liquid staking protocols? Share your thoughts in the comments section below.
Central Bank’s Gold Purchases Make ‘Record Breaking Start’ in Q1 2023; 228.4 Tonnes Added to World Reserves
Central banks have continued to consistently purchase gold during the first quarter of 2023, according to the latest report of the World Gold Council (WGC), the global gold statistics organization. Central banks added nearly 230 tonnes of gold to their national reserves, representing a 176% rise compared to the purchases made in Q1 2022.
World Gold Council Registers Strong Gold Demand From Central Banks
Central banks have registered a strong demand for gold during the first quarter of the year, according to the latest report of the World Gold Council (WGC), which keeps global statistics on gold production and demand. According to its Gold Demand Trends report, central banks kept buying gold consistently, adding nearly 230 tonnes during Q1 2023. This represents a rise of 176% over what these institutions purchased in Q1 2022, signaling strong demand.
However, when compared to the numbers from the last quarter, central banks and other institutions reduced their demand significantly, with these institutions purchasing 150.2 tonnes of gold less.
Although the WGC states that limited information and delayed reporting make it very difficult to really predict if gold demand will rise or subside this year, it remains positive in its outcome stating that “intentions have consistently been a leading indicator for buying over the last few years and our central bank surveys suggest little change to the positive trend.”
Singapore and China Led Purchases
Four institutions concentrated most of the gold purchases during the quarter, according to the WGC report. The Monetary Authority of Singapore reported a rise of 69 tonnes, with its reserves reaching 222 tonnes, registering an increase of 45% quarter over quarter. The second place goes to China, with the People’s Bank of China (PBOC) registering purchases for 120 tonnes. With these additions, China’s gold reserve reached 2,068 tonnes.
China has been consistently buying gold since November, adding 102 tons to its reserves during a period of five months. In March, the PBOC reported purchases of 18 tons. Turkey was another of the countries that purchased the most gold during Q1, adding 45 tonnes but also selling 15 to its internal market after a temporary gold import ban, leaving its reserves at 572 tonnes, representing more than 30% of its central bank reserves. India also purchased 7 tonnes of gold during Q1, registering a national gold reserve of 795 tonnes.
What do you think about the latest report of the World Gold Council on gold demand and how central banks keep purchasing gold for their reserves? Tell us in the comment section below.
Bitcoin’s Ordinal Inscriptions Surpass 500,000 Mark as Miners Earn $2.66 Million in Added Fees
According to statistics, there are now more than 500,000 Ordinal inscriptions on the Bitcoin blockchain as the trend continues to gain significant traction. Onchain data also shows that since inscriptions started gaining popularity last month, Bitcoin miners have obtained 98 bitcoins worth .66 million in added fees.
The Rise of Ordinal Inscriptions on Bitcoin Blockchain
Ordinal inscriptions have surpassed the 500,000 mark, and at the time of writing, there are approximately 522,243 inscriptions on the Bitcoin blockchain. Essentially, the technology behind Ordinal inscriptions allows people to embed all types of arbitrary data into the blockchain. Inscriptions include data such as text, images, audio, video, and applications.
The number of Ordinal inscriptions surpassed the 500,000 range on March 17, 2023, according to data hosted on Dune Analytics. Statistics show that 31.1% of inscriptions are in PNG format, or a total of 162,615 PNG-based inscriptions. Approximately 14% of Ordinal inscriptions are in WEBP format, and roughly 7% are in JPEG format.
A total of 212,827 inscriptions are text-based, accounting for more than 40% of all the Ordinal inscriptions today. Dune Analytics data further shows that at block height 780,895, approximately 1,870 inscriptions were minted in the block with Ordinal inscriptions. The block with the second-largest number of inscriptions is block height 780,037, with approximately 610 Ordinal inscriptions minted in a single block.
Block 780,895, with 1,870 inscriptions, was only 2.83 megabytes (MB) in size, and a total of 3,598 transactions were confirmed in the block mined on March 15. In addition to the number of Ordinal inscriptions rising above the 500K range, a few collections have amassed a great deal of sales. Yuga Labs sold its collection of inscriptions called Twelvefold for .6 million.
The project Bitcoin Punks has seen 454.9 BTC, or roughly .1 million in sales, and Ordinal Punks have raked in 225.5 BTC, or .5 million in sales. An Ordinal inscription collection called Tradfilines has accrued 100.4 BTC, or roughly .4 million in sales. The compilation Unordinals has recorded 95.4 BTC or .3 million.
Other top-selling inscription collections include Inscribed Pepes, Punks on Bitcoin, Pixel Pepes, Bitcoin Rocks, and the art compilation called Xcpinata. The trend of Ordinal inscriptions on Bitcoin continues, and while there are more than 500,000 inscriptions on the blockchain, there are also 213,583 LTC-based Ordinal inscriptions on the Litecoin network today.
The Litecoin blockchain also has a wide variety of onchain collections like Litecoin Punks, Litecoin Bulls, and Ordinal Doges. Many people have high hopes for the Ordinal inscription trend, especially on the Bitcoin blockchain. Galaxy Digital recently published a report that predicts Bitcoin-based non-fungible token (NFT) assets using Ordinal inscription technology could be a .5 billion market by 2025.
What do you think the future holds for Ordinal inscriptions on the Bitcoin blockchain and the NFT market? Share your thoughts in the comments section below.