Blockchain Explained

2023-05-21 11:46:02 Demand for Tokenized Treasury Bonds Soars as Crypto Investors Chase TradFi Yield

Demand for tokenized versions of U.S. Treasury bonds is soaring as rising yields in traditional financial markets attract fresh capital from crypto investors. The combined market capitalization of tokenized money market funds nears $500 million, and has quadrupled in size this year, according to data compiled by CoinDesk. Money market funds are traditional investment products that hold short-term government securities.

The high yields of government bonds have also captivated digital asset investors discouraged by low lending rates and last year’s bankruptcies. Hence, a slew of platforms have come up with a way to offer access to them on the blockchain in the form of a token. The first and largest offering, investment giant Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) – which gives a BENJI token on the Stellar blockchain representing one share – grew to $276 million in assets as of the end of April. This is almost triple the deposits in early January represented by the BENJI token supply, blockchain data shows. New challengers are quickly catching up in market share. Ondo Finance’s OUSG and Matrixdock’s SBTB tokenized products.

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2023-05-20 14:17:02 Coinbase Praises Canada’s Crypto Approach as U.S. Regulatory Pressure Intensifies

Crypto exchange giant Coinbase (COIN) says it loves Canada, where the rules have been set out and companies are able to engage with the regulators, compared with the U.S.’s lack of clarity and regulation by enforcement for the industry. Coinbase is currently at loggerheads with the Securities and Exchange Commission (SEC), which has warned the exchange that its going to be targeted with an enforcement action for violating securities laws.

The recent U.S. regulatory crackdown has also spooked many companies and investors, who are already looking to relocate to other jurisdictions. Meanwhile, Canada is also putting pressure on the industry through its Pre-Registration Undertaking (PRU) regime for crypto exchanges, which saw several large players depart from the country, most notably Binance, the largest exchange group by volume. However, when asked about how Canada’s PRU compared with the situation in the U.S., Nana Murugesan VP international and business development at Coinbase, said that he prefers Canada’s approach. Coinbase, which signed Canada’s enhanced PRU in March of this year.

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2023-05-19 04:24:02 Gala Games Burns About 600 Million USD GALA V1 Tokens After Launching New Token

The GameFi Gala Games project said that it had destroyed 21 billion GALA v1 tokens after the “makeover” that involved the release of new tokens. Accordingly, the undertaking has carried out three separate destructions in the year 2023: the first time with a cost of 2 billion GALA, the second time with a cost of 3.96 billion GALA, and the most recent addition at a cost of 15 billion USD. The Gala Games’ token GALA treasury was also “virtually exhausted,” according to the project’s description of the aftermath of the fires.

GALA holders at a ratio of 1:1. GALA v2 was formally released into circulation on May 15. After the v2 instance has been established, this indicates that the v1 instance will no longer be operational. After the upgrading of smart contracts was finished, the CEO of the company, Jason Brink, stated on May 17 that almost 160,000 distinct wallets were given GALA v2 after the project was finished. Otherwise, in order to guarantee the reception of new tokens. Coinbase could not provide a clear explanation for their decision to make this change. GALA in order to allay the concerns of GALA holders. The reason for this decision was given by the GameFi team.

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2023-05-18 04:30:52 Shiba Inu May Continue To correct Sharply As The Death Cross Forms

Shiba Inu (SHIB) specifically developed its first Death Cross in 2023. This pattern also occurred after the 50 daily moving average (MA) recently fell below the 200 MA. The Death Cross is a technical chart pattern that indicates the possibility of a significant sell-off. When the short-term moving average (50-day SMA) crosses below the long-term moving average (200-day SMA), the Death Cross occurs. Since February 2022, the Death Cross has not shown on the SHIB chart.

Shiba Inu had a price surge in 2023, reaching $0.000016 in early February, a year after this pattern emerged. The bull run then established its first golden cross. The opposite polarity of the death cross is unnerving at this time of year. On the daily SHIB chart, this bullish signal occurs when the MA50 crosses above the MA200. Several digital assets were oversold during the most recent market correction. The SHIB suffered the same fate and cleared the stage for the first death cross to develop in 2023. The symbolism of the death cross may change depending on where the price goes from here. It is vital to highlight that the death cross is frequently seen as untrustworthy.

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2023-05-17 04:31:02 Compound III Now Expanded To Layer-2 Arbitrum

Compound Labs announced that Compound III had been deployed to Arbitrum, allowing the use of ARB, GMX, WETH, and WBTC as collateral to lend USDC. This is the third blockchain deployed by Compound III after Ethereum and Polygon. Compound, the veteran lending protocol of Ethereum, announced in August last year the launch of the third version of the EVM-compatible chain, Compound III “Comet” can be used for lending, while other assets are mortgage assets.

Compound III. Kevin Cheng, Senior Software Engineer at Compound Labs, explains that Comet will significantly save gas for users by not changing the parameters of the protocol. Each type of collateral on the platform comes with custom loan and liquidation rates, with WETH and WBTC having slightly lower liquidation fees. The USDC market will target a reserve fund of 5 million USDC and have a minimum loan size of 100 USDC. Compound II uses a risk pool model where users can borrow any asset. In this model, the protocol is as secure as the single weakest asset, and this can also lead to bad assets draining all assets in the protocol. Currently, lending protocols such as Aave also work in this way.

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2023-05-16 09:06:51 Bitcoin Miner Bitfarms Accelerates 6 EH/s Hashrate Target As Quarterly Loss Per Share Narrows

Bitcoin miner Bitfarms (BITF) accelerated its stated timeframe for reaching 6 exahash/second (EH/s) of computing power, as its per-share loss narrowed significantly quarter-on-quarter, according to a press release on Monday. The miner said that it expects to hit the 6 EH/s goal by the end of the third quarter, as opposed to its previous goal of 2023-end. Its hashrate stood at 5 EH/s at the end of Q1.

Bitfarms saw its net loss per share narrowed significantly to 1 cent, from 8 cents the quarter before, while its gross mining margin improved to 42%, from 33% the previous quarter. Its mining margin was 76% in Q1 2022. The miner reported revenue of $30 million in the first quarter in 2023, compared with $27 million the quarter before and $40 million the year prior. The Canadian firm has been working to deleverage its balance sheet for several months, along with other miners, by selling bitcoin and paying down its loans. In January, it warned it might default on some of its debt. Up to April 2023, Bitfarms has sold 1,646 bitcoins (BTC) for $38 million.

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2023-05-15 04:29:02 ApeCoin Proposal Intends To Create New DEX But Faces Strong Opposition

A new proposal from the ApeCoin community intends to create APE DEX, which plans to realize the decentralized exchange of ERC-20 tokens supported by multi-asset pools. As suggested, ApeCoin is traded on the majority of major CEXs and DEXs (centralized exchanges and decentralized exchanges). These exchanges charge a variety of fees for opening and closing positions as well as executing swaps.

As well as an ApeCoin DAO DEX for ApeCoin holders, the ApeCoin DAO DEX will allow for the decentralized exchange of ERC-20 tokens, which will be backed by multi-asset pools that will pay liquidity providers fees from market making and swap fees. It expects to contribute to the creation of the lowest feasible trading costs in all of DeFI for APE holders, stakers, and purchasers. These asset pools will earn from market-making and swap fees LP fees, core functionality will include using APE to reward LP providers. The deadline for voting on the proposal is May 18, and the current proportion of negative votes has reached 86.81%, while the proportion of support is 13.19%.

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2023-05-14 04:15:02 Lido Community Weighing On-Chain Vote to Deploy Version 2 on Ethereum

Lido, the dominant liquid staking platform, is voting to execute its second iteration on the Ethereum blockchain, a pivotal moment for users in the decentralized finance (DeFi) community that want further decentralization and better on and off ramps into Ethereum’s staking ecosystem. Lido’s Twitter account is calling v2 the “most important upgrade to date”.

ETH staking withdrawals and the introduction of a “Staking Router” said to increase participation from a more diverse set of node operators, v2 on Ethereum comes as Lido commands the lead as the largest liquid staking platform in the DeFi space, with $11.77 billion in total value locked across the Ethereum ecosystem, per DefiLlama. According to a blog post, “The implementation of withdrawals coupled with the Staking Router proposal will contribute to an increase in the decentralization of the network, a more healthy Lido protocol, and enable the long-awaited ability to stake and unstake (withdraw) at will, reinforcing stETH as the most composable and useful asset on Ethereum.”

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2023-05-13 04:24:02 Leaked documents show Celsius was plotting a bold business pivot weeks before bankruptcy

Celsius Network, the failed crypto lender, pitched deep-pocketed investors on an ambitious plan to white-label some of its services last year — just as its core business imploded. Pitch documents obtained by The Block show that Celsius approached both Wall Street bank Goldman Sachs and Abu Dhabi-backed fund ADQ about a project branded Celsius Web Services in May and June, respectively. The initiative would see Celsius offer generic versions of its products.

Alex Mashinsky, the former CEO of Celsius who resigned in September, spearheaded the CWS plan and wanted to raise $1 billion to get it off the ground, according to a person with direct knowledge of the matter. As well as Goldman and ADQ, Mashinsky pitched his own board, which until June last year included Laurence Tosi, managing partner of WestCap Group, and a representative of Canadian pension fund Caisse de Depot et Placement du Quebec. Those investors jointly invested $750 million in Celsius in late 2021, but wanted no part of CWS. Mahinsky’s attempt to launch a raft of new products and pivot Celsius away from its core business of lending out crypto assets couldn’t.

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2023-05-12 04:22:03 Coinbase Says it 'Screwed Up' Pepecoin Coverage in Its Newsletter

Coinbase (COIN) chief legal officer, Paul Grewal apologized for a company newsletter on the memecoin frenzy suggesting that the Pepe the Frog meme, on which red-hot PEPE token is based, has been used in racist ways on the internet. "We screwed up and we are sorry," tweeted Grewal late Thursday morning. "Yesterday we shared an overview of the PEPE meme coin to provide a fact-based picture of a trending topic,".

Published Wednesday (and since edited out), that part of the newsletter set off a firestorm of criticism on Twitter, with the #deletecoinbase hashtag trending on the social media site early Thursday morning. The crypto exchange set off a kerfuffle by describing the Pepe the Frog meme as having been co-opted as a hate symbol by alt-right groups. PEPE remains lower by 15% over the past 24 hours, according to CoinMarketCap. COIN is lower by 2% on Thursday alongside a broad selloff in the cryptocurrency markets. he continued. "This did not provide the whole picture of the history of the meme and we apologize to the community."

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