Crypto is down bad, but VCs keep pouring money in
After the collapse of FTX, Web3 VCs say they believe in decentralized tech as much as ever. What the hell else can they say? – Ben Munster writes on Decrypt.
Given the contagion and chaos we have witnessed since Sam Bankman-Fried’s crypto exchange FTX had a sudden multibillion-dollar coronary, you may be tempted to conclude…
https://cryptoinsight.ae/crypto-is-down-bad-but-vcs-keep-pouring-money-in/
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After the collapse of FTX, Web3 VCs say they believe in decentralized tech as much as ever. What the hell else can they say? – Ben Munster writes on Decrypt.
Given the contagion and chaos we have witnessed since Sam Bankman-Fried’s crypto exchange FTX had a sudden multibillion-dollar coronary, you may be tempted to conclude…
https://cryptoinsight.ae/crypto-is-down-bad-but-vcs-keep-pouring-money-in/
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Crypto Trends Weekly – Dec. 17–23
Breaking crypto news from the last week (Dec. 17–23, 2022):
Dec. 17: Fireblocks, a crypto custody tech provider, has received the Cryptocurrency Security Standard (CCSS), a first-of-its-kind certification – a security standard for crypto wallets and custody. The CCSS was created in 2014, but no crypto company has met the necessary standards so far.
Dec.…
https://cryptoinsight.ae/crypto-trends-weekly-dec-17-23/
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Breaking crypto news from the last week (Dec. 17–23, 2022):
Dec. 17: Fireblocks, a crypto custody tech provider, has received the Cryptocurrency Security Standard (CCSS), a first-of-its-kind certification – a security standard for crypto wallets and custody. The CCSS was created in 2014, but no crypto company has met the necessary standards so far.
Dec.…
https://cryptoinsight.ae/crypto-trends-weekly-dec-17-23/
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💰 According to Forbes calculations, this year crypto-billionaires have lost $116B. 🧮15 of them lost more than half of their fortune in the last 9 months. Ten of them completely lost their status as billionaires.
🙃 CEO Ripple suffered the least – he retained $2.4B of $2.5B.
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🙃 CEO Ripple suffered the least – he retained $2.4B of $2.5B.
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The DeFi sector will benefit from the current cryptocurrency crisis
Throughout the year 2022, we are witnessing a whole series of bankruptcies of cryptocurrency companies. We are already talking about a systemic crisis of the entire cryptocurrency industry. However, its reasons are largely obvious: first of all, it is the unreliability of centralized trading platforms, managed by people who primarily pursue their own interests. In other words, the centralization factor has really hurt the blockchain industry, whose ideology was based on decentralization from the beginning.
However, any crisis opens up new opportunities. Having lost trust in centralized platforms, users began to withdraw their assets en masse from most cryptocurrency exchanges. (This was especially evident in the first two weeks after FTX went bankrupt.) At the same time, interest in the decentralized financial sector grew. For example, in mid-November, DEX Uniswap was for some time even ranked second in terms of trading volume after Binanse.
The total volume of trading on decentralized exchanges in November increased by 80% compared to October and reached $104.5 billion. The number of users of DeFi-protocols increased by 44% and passed the point of 5 million wallets.
As a result of such attention from ordinary cryptocurrency owners, more and more investors began to pay attention to decentralized trading platforms and other solutions. In 2022, the DeFi sector received $14 billion in investments, which were distributed among 725 cryptocurrency projects, according to data from Naschkei Capital.
All of this means that DeFi could continue to grow at an even faster pace in 2023. To do so, however, the industry needs to start addressing a number of problems. The first one is a large number of fraudulent schemes in the form of scams involving user funds, followed by withdrawal of all liquidity from the project by its creators. The second one is the periodic successful hacker attacks and protocol hacks.
The third problem is that there are not fully decentralized organizations that masquerade as DeFi, but have all the disadvantages of centralized platforms. The fourth problem is the lack of liquidity, and the industry is trying to solve it by using profitable farming and providing rewards to liquidity providers.
If the situation can be improved in these areas, the DeFi sector will finally be able to take advantage of its competitive advantages over the traditional financial industry. Namely, the ease of access, the ability to have full control over their funds without the need for third party trust, and the ability to run a DeFi product without the permission of banks and regulators.
Decentralized protocols attract users and businesses because they offer a more efficient and transparent way to conduct financial transactions. And to what extent DeFi will be able to become an alternative to the banking sector and replace traditional financial system technologies - we will find out for sure during 2023-2024.
Website | Twitter | LinkedIn | Telegram
Throughout the year 2022, we are witnessing a whole series of bankruptcies of cryptocurrency companies. We are already talking about a systemic crisis of the entire cryptocurrency industry. However, its reasons are largely obvious: first of all, it is the unreliability of centralized trading platforms, managed by people who primarily pursue their own interests. In other words, the centralization factor has really hurt the blockchain industry, whose ideology was based on decentralization from the beginning.
However, any crisis opens up new opportunities. Having lost trust in centralized platforms, users began to withdraw their assets en masse from most cryptocurrency exchanges. (This was especially evident in the first two weeks after FTX went bankrupt.) At the same time, interest in the decentralized financial sector grew. For example, in mid-November, DEX Uniswap was for some time even ranked second in terms of trading volume after Binanse.
The total volume of trading on decentralized exchanges in November increased by 80% compared to October and reached $104.5 billion. The number of users of DeFi-protocols increased by 44% and passed the point of 5 million wallets.
As a result of such attention from ordinary cryptocurrency owners, more and more investors began to pay attention to decentralized trading platforms and other solutions. In 2022, the DeFi sector received $14 billion in investments, which were distributed among 725 cryptocurrency projects, according to data from Naschkei Capital.
All of this means that DeFi could continue to grow at an even faster pace in 2023. To do so, however, the industry needs to start addressing a number of problems. The first one is a large number of fraudulent schemes in the form of scams involving user funds, followed by withdrawal of all liquidity from the project by its creators. The second one is the periodic successful hacker attacks and protocol hacks.
The third problem is that there are not fully decentralized organizations that masquerade as DeFi, but have all the disadvantages of centralized platforms. The fourth problem is the lack of liquidity, and the industry is trying to solve it by using profitable farming and providing rewards to liquidity providers.
If the situation can be improved in these areas, the DeFi sector will finally be able to take advantage of its competitive advantages over the traditional financial industry. Namely, the ease of access, the ability to have full control over their funds without the need for third party trust, and the ability to run a DeFi product without the permission of banks and regulators.
Decentralized protocols attract users and businesses because they offer a more efficient and transparent way to conduct financial transactions. And to what extent DeFi will be able to become an alternative to the banking sector and replace traditional financial system technologies - we will find out for sure during 2023-2024.
Website | Twitter | LinkedIn | Telegram
⚡️ The Bitcoin network's hash rate momentarily fell by more than 38.8%, from 230 EH/s to 155 EH/s.
🔌 The reason was a storm in the U.S. that knocked out power lines. Riot Blockchain, Core Scientific, Compass Mining and other mining companies shut down their equipment.
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🔌 The reason was a storm in the U.S. that knocked out power lines. Riot Blockchain, Core Scientific, Compass Mining and other mining companies shut down their equipment.
Website | Twitter | LinkedIn | Telegram
🇫🇷 15 investors from France sued Binance France and its parent company Binance Holdings, accusing them of causing more than €2.4 million in damages.
🤬 The suit says that the Binance violated French law because it misled people by promoting investments in cryptocurrencies.
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🤬 The suit says that the Binance violated French law because it misled people by promoting investments in cryptocurrencies.
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Summary of the day: December 26
🥇 In the DeFi-industry, blockchain Ethereum is by far the leader in terms of blocked funds (TVL) - TVL 46.1B, 61.5% of the market. In second place is Tron with TVL 9.4B (12.6% of the market), in third place is BNB Chain (TVL 6.9B, 9.2% of the market).
💰 According to Forbes calculations, this year crypto-billionaires have lost $116B. 15 of them lost more than half of their fortune in the last 9 months. Ten of them completely lost their status as billionaires. CEO Ripple suffered the least – he retained $2.4B of $2.5B.
👨💻 According to the analysts of The Block, that the number of employees in the cryptocurrency industry in 2022 is 82.2 thousand people. This is 351% higher than the result of 2019, when the corresponding figure was 18.2 thousand.
👨💻 The Bitget exchange's non-custodial BitKeep wallet team reported that some APK package downloads were hacked and installed with code embedded by hackers. So far, scammers have stolen about $8 million in BNB, DAI and ETH mostly on the BNBChain network.
⚡️ The Bitcoin network's hash rate momentarily fell by more than 38.8%, from 230 EH/s to 155 EH/s. The reason was a storm in the U.S. that knocked out power lines. Riot Blockchain, Core Scientific, Compass Mining and other mining companies shut down their equipment.
👛 Hardware cryptocurrency wallet maker Ledger warns of fake Ledger Live apps in the Microsoft Store. They try to steal users' sid-phrases and steal cryptocurrency.
🇫🇷 15 investors from France sued Binance France and its parent company Binance Holdings, accusing them of causing more than €2.4 million in damages. The suit says that the Binance exchange violated French law because it misled people by promoting investments in cryptocurrencies.
👨💻 According to analysts at JPMorgan, institutional investor confidence in digital currencies has weakened dramatically in 2022. The fall of BTC and altcoins has undermined their attractiveness as an innovative tool. They are no longer seen as a tool to hedge inflation risks.
📉 The average size of USDC stablecoin transactions continues to decline. It is now only $658, which is a two-year low. Traders, as well as many ordinary users, prefer Tether to USDC.
Website | Twitter | LinkedIn | Telegram
🥇 In the DeFi-industry, blockchain Ethereum is by far the leader in terms of blocked funds (TVL) - TVL 46.1B, 61.5% of the market. In second place is Tron with TVL 9.4B (12.6% of the market), in third place is BNB Chain (TVL 6.9B, 9.2% of the market).
💰 According to Forbes calculations, this year crypto-billionaires have lost $116B. 15 of them lost more than half of their fortune in the last 9 months. Ten of them completely lost their status as billionaires. CEO Ripple suffered the least – he retained $2.4B of $2.5B.
👨💻 According to the analysts of The Block, that the number of employees in the cryptocurrency industry in 2022 is 82.2 thousand people. This is 351% higher than the result of 2019, when the corresponding figure was 18.2 thousand.
👨💻 The Bitget exchange's non-custodial BitKeep wallet team reported that some APK package downloads were hacked and installed with code embedded by hackers. So far, scammers have stolen about $8 million in BNB, DAI and ETH mostly on the BNBChain network.
⚡️ The Bitcoin network's hash rate momentarily fell by more than 38.8%, from 230 EH/s to 155 EH/s. The reason was a storm in the U.S. that knocked out power lines. Riot Blockchain, Core Scientific, Compass Mining and other mining companies shut down their equipment.
👛 Hardware cryptocurrency wallet maker Ledger warns of fake Ledger Live apps in the Microsoft Store. They try to steal users' sid-phrases and steal cryptocurrency.
🇫🇷 15 investors from France sued Binance France and its parent company Binance Holdings, accusing them of causing more than €2.4 million in damages. The suit says that the Binance exchange violated French law because it misled people by promoting investments in cryptocurrencies.
👨💻 According to analysts at JPMorgan, institutional investor confidence in digital currencies has weakened dramatically in 2022. The fall of BTC and altcoins has undermined their attractiveness as an innovative tool. They are no longer seen as a tool to hedge inflation risks.
📉 The average size of USDC stablecoin transactions continues to decline. It is now only $658, which is a two-year low. Traders, as well as many ordinary users, prefer Tether to USDC.
Website | Twitter | LinkedIn | Telegram
Hello there!
Day started from:
The global cryptocurrency market cap today is $847 Billion, a 0.2% change in the last 24 hours
Bitcoin ~ $16,877.74 (0.1%)
Ethereum ~ $1,223.17 (0.2%)
Solana ~ $11.22 (-0.9%)
Polkadot ~ $4.52 (0.6%)
Flow ~ $0.752473 (-2.0%)
Follow and subscribe - @GulfCryptoInsight
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Day started from:
The global cryptocurrency market cap today is $847 Billion, a 0.2% change in the last 24 hours
Bitcoin ~ $16,877.74 (0.1%)
Ethereum ~ $1,223.17 (0.2%)
Solana ~ $11.22 (-0.9%)
Polkadot ~ $4.52 (0.6%)
Flow ~ $0.752473 (-2.0%)
Follow and subscribe - @GulfCryptoInsight
Website | Twitter | LinkedIn | Telegram
Nexo and Vauld end talks of a potential acquisition
Crypto lender Nexo, which was in talks with troubled crypto lender Vauld to acquire it, has terminated the discussions of a potential deal. The two parties had talks since July.
The potential deal has been terminated after six long months of dialogue, according to The Block. The email, sent by Vauld founder and CEO Darshan…
https://cryptoinsight.ae/nexo-and-vauld-end-talks-of-a-potential-acquisition/
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Crypto lender Nexo, which was in talks with troubled crypto lender Vauld to acquire it, has terminated the discussions of a potential deal. The two parties had talks since July.
The potential deal has been terminated after six long months of dialogue, according to The Block. The email, sent by Vauld founder and CEO Darshan…
https://cryptoinsight.ae/nexo-and-vauld-end-talks-of-a-potential-acquisition/
Website | Twitter | LinkedIn | Telegram
Prominent NFT projects DeGods and y00ts migrate from Solana to Ethereum and Polygon
DeGods and y00ts, two of the most significant NFT projects on Solana, announced a migration to other blockchains. DeGods plans to migrate to Ethereum, while y00ts will be bridged to Polygon.
DeGods and y00ts, two of the leading NFT collections on Solana, have announced plans to migrate to Ethereum and Polygon next year, the teams…
https://cryptoinsight.ae/prominent-nft-projects-degods-and-y00ts-migrate-from-solana-to-ethereum-and-polygon/
Website | Twitter | LinkedIn | Telegram
DeGods and y00ts, two of the most significant NFT projects on Solana, announced a migration to other blockchains. DeGods plans to migrate to Ethereum, while y00ts will be bridged to Polygon.
DeGods and y00ts, two of the leading NFT collections on Solana, have announced plans to migrate to Ethereum and Polygon next year, the teams…
https://cryptoinsight.ae/prominent-nft-projects-degods-and-y00ts-migrate-from-solana-to-ethereum-and-polygon/
Website | Twitter | LinkedIn | Telegram
Fidelity files for metaverse trademarks, increasing push to the digital assets sector
Fidelity has filed three trademark applications to provide services in the metaverse and other virtual worlds in its latest move in the digital asset space. The trademarks filing is just the firm’s latest move in the field of digital assets.
According to the filings, the global asset management giant wants to provide its traditional services…
https://cryptoinsight.ae/fidelity-files-for-metaverse-trademarks-increasing-push-to-the-digital-assets-sector/
Website | Twitter | LinkedIn | Telegram
Fidelity has filed three trademark applications to provide services in the metaverse and other virtual worlds in its latest move in the digital asset space. The trademarks filing is just the firm’s latest move in the field of digital assets.
According to the filings, the global asset management giant wants to provide its traditional services…
https://cryptoinsight.ae/fidelity-files-for-metaverse-trademarks-increasing-push-to-the-digital-assets-sector/
Website | Twitter | LinkedIn | Telegram
🇵🇼 President of the Republic of Palau Suranhel C. Whipps Jr. shared his plans to create a national stаblecoin. A company called Ripple Labs has taken on the project.
🌴 Palau is a state with a population of 19,000 people that does not have a central bank or even a national currency.
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🌴 Palau is a state with a population of 19,000 people that does not have a central bank or even a national currency.
Website | Twitter | LinkedIn | Telegram
Lessons of 2022 for the crypto industry
The end of the year is the right time to not only summarize its results, but also to identify the main mistakes made by the cryptocurrency community. Judging by the sad results of the year, there were many such mistakes, and they also accumulated for a number of years. But now we can draw the right conclusions in order not to repeat these mistakes in the future.
1. Algorithmic stablecoins are a kind of pyramid scheme
As often happens, a good idea was used either unskilled or in bad faith. The result:
- UST zeroed out.
- BEAN was hacked
- USDN/USDD lost their peg
- FEI/USN closed.
It is rightly said, "If you don't know the source of returns, you probably are that source." The promise of high returns in stablecoins is nonsense by definition.
2. A bright, charismatic businessman at the head of a project is trouble
Decentralized money must also be managed in a decentralized way. But at some point the cryptocurrency industry has seen too many projects with bright personalities at the helm. Do Kwon, Soo Joo, Sam Bankman-Fried - all were once in the limelight, many invested, in fact, not in the technology, not in the project, but in the image of the person behind it. The consequences are known and unfortunate.
3. "Smart Money" actually turned out to be "Stupid Money."
Unfortunately, the best digital money technology has been exploited by greed and stupidity.
4. The most vulnerable technology is bridges
The biggest hacks and hacks were exactly on bridges: Ronin ($624 million), Binance Token Hub ($500 million), Poly Network ($600 million), Wormhole ($326 million).
5. Big size of the project is not a guarantee from bankruptcy
LUNA, FTX, 3AC were all big projects. And look how much trouble Binance is in now...
6. Invest in something that is actually used
The technology can be as cool and innovative as you want, but invest in it only if it already has a well-established practical application. Polkadot, Flow, Near, Solana, back in 2021 were on everyone's lips as "breakthroughs", and now they have lost 95% of their value. On the other hand, crypto exchanges, ETH and LTC tokens, as well as tokens of wallet developers, mixers and other infrastructure solutions have suffered much less.
Website | Twitter | LinkedIn | Telegram
The end of the year is the right time to not only summarize its results, but also to identify the main mistakes made by the cryptocurrency community. Judging by the sad results of the year, there were many such mistakes, and they also accumulated for a number of years. But now we can draw the right conclusions in order not to repeat these mistakes in the future.
1. Algorithmic stablecoins are a kind of pyramid scheme
As often happens, a good idea was used either unskilled or in bad faith. The result:
- UST zeroed out.
- BEAN was hacked
- USDN/USDD lost their peg
- FEI/USN closed.
It is rightly said, "If you don't know the source of returns, you probably are that source." The promise of high returns in stablecoins is nonsense by definition.
2. A bright, charismatic businessman at the head of a project is trouble
Decentralized money must also be managed in a decentralized way. But at some point the cryptocurrency industry has seen too many projects with bright personalities at the helm. Do Kwon, Soo Joo, Sam Bankman-Fried - all were once in the limelight, many invested, in fact, not in the technology, not in the project, but in the image of the person behind it. The consequences are known and unfortunate.
3. "Smart Money" actually turned out to be "Stupid Money."
Unfortunately, the best digital money technology has been exploited by greed and stupidity.
4. The most vulnerable technology is bridges
The biggest hacks and hacks were exactly on bridges: Ronin ($624 million), Binance Token Hub ($500 million), Poly Network ($600 million), Wormhole ($326 million).
5. Big size of the project is not a guarantee from bankruptcy
LUNA, FTX, 3AC were all big projects. And look how much trouble Binance is in now...
6. Invest in something that is actually used
The technology can be as cool and innovative as you want, but invest in it only if it already has a well-established practical application. Polkadot, Flow, Near, Solana, back in 2021 were on everyone's lips as "breakthroughs", and now they have lost 95% of their value. On the other hand, crypto exchanges, ETH and LTC tokens, as well as tokens of wallet developers, mixers and other infrastructure solutions have suffered much less.
Website | Twitter | LinkedIn | Telegram
🇵🇭 The Central bank of the Philippines began working with the IMF on a wholesale CBDC project.
🏛 The Central bank of the Philippines supports wholesale CBDCs, arguing that retail CBDCs are unattractive because of the variety of digital payments available in the country.
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🏛 The Central bank of the Philippines supports wholesale CBDCs, arguing that retail CBDCs are unattractive because of the variety of digital payments available in the country.
Website | Twitter | LinkedIn | Telegram