Cryptocurrency exchange Okx has decided to withdraw its virtual asset service provider (VASP) license application in Hong Kong. As a result, Okx will stop offering centralized virtual asset trading services to Hong Kong residents by May 31, 2024. The exchange stressed that customer funds remain secure, and withdrawal services will continue unaffected. Okx’s web3 (self-hosted […]
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Crypto Exchange Gate.HK Ceases Operations — Urges Users to Withdraw Assets
Gate.HK, the Hong Kong arm of cryptocurrency exchange Gate.io, is undergoing a significant platform overhaul to enhance security and compliance, withdrawing its applications for licensing under Hong Kong’s Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Effective immediately, new user registrations and asset deposits are suspended. All tokens will […]
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Crypto Exchange Bybit Reaches 30 Million Registered Users Around the Globe
Cryptocurrency exchange Bybit has announced that it has surpassed 30 million registered users globally, marking a significant milestone in its growth. The company’s market share in spot trading has increased from 2% in 2023 to 9.3% in 2024, according to the latest Kaiko Research quarterly report. This growth is attributed to Bybit’s commitment to user […]
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Nigerian Fintech Firm Flutterwave Confirms Hacking Attempt, Says Users’ Funds Safe
The Nigerian fintech firm Flutterwave claimed on May 16 that it had foiled an attempt to breach its payments platform. Flutterwave asserted that the “unauthorized activities inconsistent with usual customer behavior” did not compromise users’ funds or data confidentiality. According to one report, over million was siphoned from Flutterwave following a cyberattack in April. […]
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Despite $250 Billion Worth of Transactions, Digital Yuan Users Prefer Physical Cash
Some participants of China’s Central Bank Digital Currency (CBDC) pilot program, specifically state workers paid in digital yuan (e-CNY), are quickly converting their digital currency to physical cash due to concerns over its utility and lack of incentives like interest on savings. Despite China’s advancement towards becoming a cashless society, the digital yuan faces skepticism […]
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Nigerian Experts Say Past Central Bank Policies Drove Users to P2P Crypto Platforms
Stakeholders in Nigeria’s cryptocurrency sector argue that the Central Bank of Nigeria’s previous decision to exclude cryptocurrency entities from the banking ecosystem has fueled the growth of peer-to-peer crypto trading. Nigerian authorities are reportedly seeking to ban peer-to-peer crypto trading. One stakeholder has urged participants in the Nigerian crypto space to ‘identify the bad actors […]
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EigenLayer Launches Airdrop Season, Allowing Users To Claim 113M EIGEN Tokens
Restaking protocol EigenLayer has unveiled its highly anticipated airdrop season, during which eligible users can claim a portion of the initial EIGEN token supply.
EigenLayer Sets September 2024 Deadline
The protocol’s announcement on Friday revealed that “Season 1” commences with 6.05% of the total supply, which users can claim starting on May 10.
Moreover, “Season 1 phase 2,” set to begin mid-June, will increase the claimable percentage to 6.75%. Season 1 will distribute approximately 113 million EIGEN tokens to participants. EigenLayer has reserved 15% of the initial token supply for the community across all seasons, signaling its commitment to inclusive participation.
EigenLayer has also announced that EIGEN tokens are currently non-transferable. However, the protocol plans to unlock token transfers once new features are launched and “further decentralization” is achieved.
These developments are expected to take place by September 30th, 2024. Until transfer restrictions are removed, core contributors and investors will not receive EIGEN staking rewards, and no inflation will occur.
Record-Breaking Billion In Assets
Since its soft launch in 2023, EigenLayer has reportedly attracted billion in assets, making it a prominent player in the decentralized finance (DeFi) space.
According to Bloomberg, the protocol’s restaking service offers amplified returns by leveraging the process of depositing ETH coins to support the Ethereum blockchain. Eigen Labs, the Seattle-based firm behind EigenLayer, raised approximately 5 million from notable backers, including a16z Crypto.
Investors gain access to EigenDA by staking EIGEN, a performance data availability system supporting Ethereum rollups. The protocol claims this presents an opportunity for users to secure amplified returns.
Additionally, EigenLayer will shortly introduce compatibility with various AVSs (Application-Specific Verification Systems), offering stakers more options.
Nonetheless, virtual private network users and residents of countries such as the US, Canada, and China have been excluded from the airdrop, highlighting the challenges of operating within regulatory frameworks and ensuring compliance. Eigen Foundation’s executive director, Robert Drost, acknowledged the complexities of navigating regulatory guidelines:
It’s not possible to operate in the space without following regulatory guidelines and being responsible, and the challenging part is that there is not a lot of clarity.
Despite these setbacks, EigenLayer’s popularity has positioned it as the second most popular DeFi application, surpassing liquid staking platforms like Lido and Rocket Pool.
While liquid staking provides easier access to staking rewards and leads the DeFi category, it has experienced significant outflows in recent months. DefiLlama data indicates a 27% decline in total value locked in liquid staking protocols since their peak of billion in March. EigenLayer’s restaking service has contributed to the restaking of nearly 4% of all ETH.
The second largest cryptocurrency on the market, Ethereum, is trading at ,890, following Bitcoin’s lead with a 3.8% drop in the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
Australian Tax Office Seeks Personal, Transaction Details from 1.2 Million Cryptocurrency Users
The Australian Tax Office reportedly has requested that cryptocurrency exchanges share both personal and transaction details of as many as 1.2 million cryptocurrency users. The revenue collector recognized that some users are fulfilling their tax obligations unknowingly, but maintained that others are intentionally avoiding payment. Australian Tax Office Targets 1.2 Million Cryptocurrency Users The Australian […]
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Study Uncovers Surprising Data: 90% Of Stablecoin Transactions Not Driven By Human Users
In a recent report by Bloomberg, it has been revealed that more than 90% of stablecoin transaction volumes do not originate from genuine users, according to a new metric co-developed by Visa.
Stablecoin Market Faces Data Reality
Visa and Allium Labs have created a dashboard designed to filter out transactions initiated by bots and large-scale traders to isolate those made by real individuals. Out of approximately .2 trillion in total transactions recorded in April, a mere 9 billion was identified as “organic payments activity” by Visa.
The data challenges the optimistic outlook of stablecoin proponents who believe these tokens can transform the 0 trillion payments industry.
Fintech giants such as PayPal Inc. and Stripe Inc. have been exploring stablecoins, with Stripe co-founder John Collison expressing bullishness on the tokens due to “technical improvements.”
Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, commented on the findings: “It says that stablecoins are still in a very nascent moment in their evolution as a payment instrument.”
Sood emphasized the need to focus on increasing existing payment infrastructure in the short and mid-term while acknowledging the long-term potential of stablecoins.
Accurately tracking crypto activity’s “real” value using blockchain data has always been challenging. Glassnode, a data provider, estimates that the record trillion assigned to digital tokens at the bull market’s peak in 2021 was closer to 5 billion.
Analysts Predict Massive Surge Ahead
According to Bloomberg, the nature of stablecoin transactions often leads to double-counting, depending on the platform users employ for fund transfers. For example, converting 0 of Circle’s USDC stablecoin to PayPal’s PYUSD on the decentralized exchange (DEX) Uniswap would result in 0 of total stablecoin volume being recorded on-chain.
Visa, which processed over trillion the previous year, could suffer if stablecoins gain widespread acceptance as payment.
Interestingly, despite this troubling data, analysts at Bernstein predicted that the total value of all stablecoins in circulation could reach .8 trillion by 2028, nearly 18 times their current combined circulation.
While PayPal and Stripe have made strides in adopting stablecoins, Airwallex has observed limited demand for stablecoin-based payment solutions among its customers, primarily due to concerns about “user-friendliness.”
Sood emphasized the significant barrier of overcoming entrenched payment methods, citing the continued use of checks for 40% to 60% of business payments in the United States.
The Bloomberg report sheds light on the dominance of non-genuine user activity in stablecoin transactions. The study underscores the importance of improving existing payment infrastructure and addressing user-friendly concerns to unlock the long-term potential of stablecoins.
Featured image from Shutterstock, chart from TradingView.com
900 Million Telegram Users Send TON Token Soaring 15% – Details
Telegram, the messaging giant, has reached a staggering 900 million users. This surge directly impacts Telegram Open Network (TON), the blockchain designed to work seamlessly within Telegram. TON has seen a remarkable 15% growth in the last week, highlighting its potential to become a mainstream crypto player.
TON price action. Source: Coingecko
TON: Cheap Transactions Draw In Users
The key to TON’s recent success lies in its tight integration with Telegram. Users can ditch the hassle of separate crypto wallets and make transactions directly through Telegram’s native wallet.
This frictionless experience, coupled with TON’s cheap transactions and fee-free USDT transfers, is a major draw for everyday users who might be hesitant to dive into the complexities of traditional crypto exchanges.
Gm
Telegram hits 900M Monthly Active Users, Gm back if you are one of them. pic.twitter.com/B6AlwEK71B
— TON
(@ton_blockchain) May 5, 2024
Farming In Your Chats
While TON facilitates everyday transactions, its goals extend further. The Telegram ecosystem thrives on a network of apps and bots that introduce inventive ways to interact with your wallet. A prime example is “farming,” which allows users to participate in decentralized finance (DeFi) activities using TON or other tokens, all within the familiar Telegram interface.
This functionality to “farm” directly within chat windows showcases how TON fosters a deeper integration with cryptocurrencies. It breaks down the barriers between messaging and finance, potentially leading to a more seamless adoption of crypto in our daily digital interactions.
Security Concerns
However, TON’s path to mainstream adoption isn’t paved with roses. The biggest thorn in its side is security. While the integrated wallet offers undeniable convenience for small transactions, security experts raise concerns about its suitability for storing large amounts of cryptocurrency.
Unlike traditional hardware wallets, which are considered the gold standard for secure crypto storage, Telegram’s software wallet might be more susceptible to hacks or breaches. This could be a significant deterrent for users wary of entrusting their hard-earned crypto to a messaging app.
Regulatory Tightrope
Another looming challenge for TON is the ever-evolving regulatory landscape surrounding cryptocurrencies. Governments worldwide are still grappling with how to handle these digital assets, and regulations can significantly impact how TON operates within different markets.
Navigating this regulatory tightrope will be crucial for TON’s long-term success. The network needs to ensure it complies with evolving regulations while still offering users the functionality and freedom they expect from a decentralized blockchain.
Featured image from Pexels, chart from TradingView