Javier Milei, the libertarian President of Argentina, has revealed the new policies that will be applied to cement the economic victories he has achieved in Argentina. In an interview, he stated that now, with the recent approval of the omnibus law, the country has reached phase two of its economic plan, which entails having zero […]
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Meme Coin Craze Drives Solana’s Token Issuance to New Heights
According to statistics, 115,773 tokens were issued on the Solana blockchain, and 30-day metrics show that more than half a million tokens, specifically 549,386, were minted. Solana Blockchain Mints Over Half a Million Tokens in 30 Days Solana has recently been a major source of new tokens, surpassing every other blockchain in monthly token issuance. […]
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Nomura, Laser Digital and GMO Internet Partner to Explore the Issuance of Stablecoins in Japan
Nomura, a global financial services group, Laser Digital, a digital asset-based business, and GMO Internet, the parent company of stablecoin issuer GMO-Z, have partnered to explore the issuance of U.S. dollar and yen based stablecoins in Japan. The partnership also contemplates the development of a platform to offer stablecoin issuance services to other companies. Nomura, […]
Bitcoin News
Nomura and GMO Collaborate on Japanese Stablecoin Issuance
Nomura Holdings, a leading global financial services group, has partnered with Laser Digital, its subsidiary focused on digital asset solutions, and GMO Internet Group, a prominent Japanese technology company renowned for its internet infrastructure, online advertising, and fintech services. The collaboration aims to explore the issuance of stablecoins denominated in JPY and USD in Japan. […]
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Ethereum Issuance Reduction Proposal Prompts Fierce Crypto Community Criticism
Discussions about adjusting Ethereum’s issuance curve due to staking concentration and other factors are taking place on social media, with some developers in favor and some against this change. A recent article by Mike Neuder, an Ethereum Foundation researcher, highlights that Ethereum issuance should “preserve the viability and proportion of solo stakers.” Ethereum Issuance Curve […]
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Argentine President Javier Milei Seeks to Penalize Central Bank Money Issuance
Javier Milei, the libertarian president of Argentina, is seeking to stop the issuance of money by the country’s central bank. Milei stated he would send a bill to Congress to penalize issuing money with jail time, explaining that central bank officials approving these movements would be incarcerated. Argentine President Javier Milei Aims to Establish Seigniorage […]
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Paxos Secures In Principle Approvals for Stablecoin Issuance and Crypto Services in Abu Dhabi
Paxos, a provider of blockchain and tokenization infrastructure, has recently received preliminary approvals from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. The company stated that these endorsements are crucial steps for Paxos, enabling it to issue stablecoins pegged to the U.S. dollar and introduce crypto brokerage and custodial services in the Abu Dhabi Global Market (ADGM).
Paxos Expands into Middle East: Receives Key Approvals for Crypto Operations in ADGM
These preliminary approvals mark Paxos’s significant venture into the rapidly evolving digital asset sector in the Middle East, the company explained on Wednesday. Paxos is set to operate under two regulated frameworks within the ADGM, pending final confirmation. In addition, Paxos has expressed its dedication to ensuring its custody and digital asset infrastructure services are fully compliant with FSRA’s stringent regulations.
“Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services,” Walter Hessert Paxos’s head of strategy detailed on Wednesday in the press announcement sent to Bitcoin.com News.
Hessert added:
Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.
A significant number of companies have recently been extending their operations into the United Arab Emirates (UAE), Dubai, and the Abu Dhabi Global Market (ADGM). In mid-September, the FSRA, ADGM’s financial watchdog, introduced six guiding principles to shape its strategy for regulating and supervising virtual assets.
Subsequent to these regulatory developments, Pyypl, a fintech company based in Abu Dhabi, secured million in Series B funding, while the bitcoin mining company Phoenix Group announced its oversubscribed initial public offering (IPO). Paxos has stated that it now adheres to the regulatory standards of New York, Singapore, and ADGM.
“Blockchain technology is revolutionizing the global financial system to be more open, secure, and innovative,” Hessert concluded.
What are your thoughts on this story? Let us know what you think in the comments section below.
Report: Korean Regulator Approves Issuance and Distribution of Security Tokens
South Korea’s Financial Services Commission (FSC) has reportedly said that Korean investors will soon be able to easily invest and trade security tokens or fractionalized assets. According to the FSC’s Lee Su-young, security token investors are expected to get the same protection that is provided to investors in conventional securities.
Protecting Korean Security Token Investors
The South Korean financial markets regulator, the Financial Services Commission (FSC), has okayed the issuance and distribution of security tokens, a report has said. According to the report, Korean investors are expected to begin trading security tokens once the regulator has concluded revising the relevant laws.
As per a report in The Korea Times, regulators are hoping that the changes will not only enable investors to make fractional investments, but will also ensure security token holders get the same protection that is accorded to conventional securities investors.
“We have decided to allow the new form of digitized securities to be issued here. This will enable investors to make fractional investments with more ease via the security token. We will also protect security token investors on par with those investing in conventional securities,” Lee Su-young, an official from the regulator’s capital market division, reportedly said.
Brokerage Firms Preparing for Security Token Trades
Also, according to the report, the FSC’s decision to amend the relevant sections of the relevant laws is because it wants the Korean electronic securities and capital markets to reflect “the global investment paradigm shift.”
Meanwhile, Kim Se-hee, an analyst with Eugene Investment & Securities, is quoted in the same report highlighting the likely benefits of expanding the list of tradable assets. Some of the Korean brokerage firms that are reportedly updating their respective trading apps to enable security token trading include KB Securities, Shinhan Securities, and Kiwoom Securities.
While the FSC has taken steps that now make it possible for investors to acquire and hold fractionalized securities, an unnamed source quoted in the report tells investors to think before buying a security token. However, despite this and other concerns, the unnamed source nonetheless insisted that it is “a good sign that the FSC is showing signs of easing regulations on some trendy investment areas.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Ethereum Issuance Drops Below Bitcoin’s For the First Time, Why This May Lead to a New Rally
Ethereum has been on a rally for the past week, moving from a two-month low at ,700 to its current level at ,223. Several factors have pushed the crypto market into a new rally, but most seem to gravitate around ETH and its ecosystem.
ETH moves sideways into the weekend on the 24-hour chart. Source: ETHUSD Tradingview
After the implementation of EIP-1559, Ethereum’s native token became a deflationary asset due to the change in its fee mechanism. To validate transactions on the network a portion of ETH is “burn”, meaning send to an address that no one can access.
As a consequence, ETH has been gaining traction as a store of value asset, for some experts, even more, efficient than Bitcoin. Researcher Lucas Outumuro has recorded a dropped in ETH’s daily issuance, lower than Bitcoin’s for the first time since its inception.
As the chart below shows, ETH net inflation stands at 3574 ETH (1.11% annualized), and BTC net inflation stands at 900 BTC (1.75% annualized), Outumuro claimed.
Source: IntoTheBlock
The decline in ETH’s daily issuance is attributed to the increase in on-chain activity. The research tracked this down to the surge in the non-fungible token (NFT) related activity.
By 2021, NFTs have become a new mania in the crypto industry with a seemingly high level of adoption from the mainstream.
A couple of days ago, payment giant VISA announced an NFT purchase from the popular collection CryptoPunks. At the same time, EtherRocks, and NFT gaming are contributing to the activity surge in this sector. As a consequence, Outumuro said:
(…) NFT activity has significantly increased Ethereum fees and the amount of ETH being burnt along with them. This has led to several hours where more ETH was burnt than issued, effectively making it deflationary during brief periods of time.
Ethereum, From Digital Oil To “Ultra-Sound Money”
Ethereum has developed a multitude of use cases in different sectors, NFTs, DeFi, blockchain-based gaming, and more. In addition, its recently acquired deflationary nature could lead it to “develop a monetary premium like BTC”, the research claimed.
As NewBTC reported, Ethereum surpassed Bitcoin in other metrics, including daily value settle. The former network has settled up to billion daily, compared to Bitcoin’s ,5 billion.
This change and increase activity occurred despite Ethereum’s high transactions fees, 10 times higher than the number one cryptocurrency by market cap. Outumuro added:
CHARTThis is also the case for the number of transactions in each blockchain, with ETH being valued more closely to its transaction activity. 5x the number of daily transactions, yet still lagging in valuation.
Source: IntoTheBlock
Additional data also suggest that ETH is more adopted with over 20 million addresses holding it. The research highlighted those addresses could be own an undetermined number of users but can be used as a “proxy to observe growth in a crypto-asset community.
Source: IntoTheBlock
The aforementioned factors strengthen Ethereum’s fundamentals and progressively change how investors value the underlying asset, ETH.
In the coming months, as the network transitions towards ETH 2.0, more factors will contribute to the thesis that ETH has become the ultimate store of value. Outumuro said:
As NFTs and other applications continue to grow on Ethereum, this creates deflationary pressure and reinforces Ether’s monetary premium. Ultimately, this aligns users and holders towards $ETH becoming the store of value of the decentralized internet.
Will Decentralized Token Issuance Platforms Legitimize DeFi?
The DeFi industry is bound to undergo some crucial changes over the coming years. After noting initial successes, there are still serious concerns regarding the issuance of new tokens and Ethereum’s ecosystem fracturing. Addressing those issues requires out-of-the-box thinking.
The Current DeFi Token Platform Issues
For anyone who is not a degenerate decentralized finance enthusiast, trusting new DeFi tokens out of the blue is challenging. Most of these tokens and projects do not undergo audits, putting users at severe risk. With no quality assurance in place and a lack of transparency, a very problematic scenario is created.
Even though several token launchpads can help bring legitimacy to projects, they are often controlled by a centralized entity. That creates another problem, as this industry is designed to promote decentralization. Additionally, there is a lack of automation and trust in this industry, which most technological solutions can’t overcome easily.
That doesn’t mean there are no improvements to expect, however. Several teams are building new solutions. Introducing a decentralized token pad solution that also rewards holders of the native token can unlock tremendous potential.
Jigstack has been building Lemonade, a project advertised as a DeFi token launchpad with automation and decentralization at its core. The team indicates their solution will address the issues outlined earlier and provide a smoother whitelisting process for investors and automated funding rounds.
More importantly, the need for a transparent and non-custodial approach is higher than ever. There is no need for anyone who aims to invest in DeFi tokens to give up control of their keys. Lemonade ensures the user controls his funds at all times, with transactions occurring in a peer-to-peer manner without intermediaries.
Embracing The DAO Model
Instead of maintaining a centralized solution, this particular platform embraces the DAO model. Using a Decentralized Autonomous organization is unusual, as this business model doesn’t have the best reputation. However, it can still offer benefits in terms of automation and empowering users. This applies specifically to issuing “rewards’ to Jstak token holders, who receive a share of every transaction happening on the network.
In theory, any code written in smart contracts can execute itself without requiring further oversight or control. It is a big part of the DeFi industry today, which mainly runs on Ethereum smart contracts. Even though these contracts are not always audited, Jigstack wants to promote industry standards to achieve a broader sense of trust and security.
Achieving this goal will be a difficult task, though. Decentralized finance is an industry that is met with plenty of skepticism and greedy traders looking for high short-term profits. The industry can certainly benefit from more legitimacy, but this change will not happen overnight.
Introducing an industry standard for decentralized finance and removing remaining intermediaries from the equation is crucial. Such an approach can only work if enough token issuers are willing to trust solutions where they have to take full responsibility for their projects.
Most teams will likely continue to opt for the “quick money” approach, even if it costs them some credibility. That said, having options that bring a more legit approach to launching DeFi tokens is a step in the right direction